MIRA
INFORM REPORT
|
Report No. : |
306698 |
|
Report Date : |
07.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
SWASDEE DIAMONDS CO., LTD. |
|
|
|
|
Registered Office : |
9th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.10.19089 |
|
|
|
|
Com. Reg. No.: |
0105532096227 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trading of Jewelry |
|
|
|
|
No. of Employees : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries, Thailand achieved steady growth due largely to
industrial and agriculture exports - mostly electronics, agricultural
commodities, automobiles and parts, and processed foods. Unemployment, at less
than 1% of the labor force, stands as one of the lowest levels in the world,
which puts upward pressure on wages in some industries. Thailand also attracts
nearly 2.5 million migrant workers from neighboring countries. The Thai
government in 2013 implemented a nation-wide 300 baht ($10) per day minimum
wage policy and deployed new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic recession severely cut
Thailand's exports, with most sectors experiencing double-digit drops. In late
2011 Thailand's recovery was interrupted by historic flooding in the industrial
areas in Bangkok and its five surrounding provinces, crippling the
manufacturing sector. The government approved flood mitigation projects worth
$11.7 billion, which were started in 2012, to prevent similar economic damage,
and an additional $75 billion for infrastructure over the following seven
years. This was expected to lead to an economic upsurge but growth has remained
slow, in part due to ongoing political unrest and resulting uncertainties.
Spending on infrastructure will require re-approval once a new government is
seated.
|
Source
: CIA |
Company Name
SWASDEE DIAMONDS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
GEMS TOWER,
1249/84
CHAROENKRUNG ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2234-8401,
2237-5925, 2235-9346, 2235-9338
FAX :
[66] 2237-1665
E-MAIL
ADDRESS : swasdee-sodsri@hotmail.com
REGISTRATION
ADDRESS : 11/130 MOO
6, KALAPAPRUEK ROAD,
BANGKHUNTHIEN, JOMTHONG,
BANGKOK 10150,
THAILAND
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532096227
TAX
ID NO. : 3101749595
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
53.33%
: INDIAN
: 46.67%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RIKABRAJ KOTHARI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : JEWELRY TRADING
BUSINESS
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on October 10,
1989 as a
private limited company under
the name style SWASDEE DIAMONDS
CO., LTD., by Thai and
Indian groups, in
order to be
engaged in jewelry
trading business. It currently
employs 4 staff.
The
subject’s registered address
was initially at 6
Soi Prachum, Surawong
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
On
August 19, 2008, its
registration address was
relocated to 11/130 Moo
6,
Kalapapruek Rd., Bangkhunthien, Jomthong,
Bangkok 10150, while
the current business
address is at 9th Floor, Gems
Tower, 1249/84 Charoenkrung
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rikabraj Kothari |
|
Indian |
59 |
|
Mr. Manan Kothari |
|
Indian |
28 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rikabraj Kothari is
the Managing Director.
He is Indian
nationality with the
age of 59
years old.
BUSINESS OPERATIONS
The subject is engaged in jewelry trading business in
order to import,
distribute and export
various kinds of
gemstone, diamond and
jewelry products.
PURCHASE
Most of the
products are purchased
from local suppliers,
and the remaining
is imported from
India.
SALES
80% of the
products is sold
and serviced to
local customers, and
the remaining 20%
is exported to
India and Hong Kong.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
according past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 4
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The subject
reported slowdown of its
business compared to the previous
year. Since domestic
consumption declined from
shrinking purchasing power
and overall economy
sluggish, its business
has slowly grown
as well as expecting the
whole year sales
in 2014 would
be lower than
the previous year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 4,000,000
on March 13,
1990
Bht. 12,000,000
on November 12,
1996
Bht. 15,000,000
on October 4,
2004
The
latest registered capital
was increased to Bht. 15,000,000 divided
into 150,000 shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[As at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Sodsri Chaiyakhan Nationality: Thai Address : 11/612
Moo 7, Bangkae,
Bangkok |
50,000 |
33.33 |
|
Mr. Rikabraj Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd.,
Bangkhunthien, Jomthong, Bangkok |
40,000 |
26.66 |
|
Mrs. Shankeeta Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd.,
Bangkhunthien, Jomthong, Bangkok |
20,000 |
13.33 |
|
Mr. Manan Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd.,
Bangkhunthien, Jomthong, Bangkok |
10,000 |
6.67 |
|
Ms. Rattana Sawliew Nationality: Thai Address : 128/60
Sathupradit Rd., Tungwatdon,
Sathorn, Bangkok |
10,000 |
6.67 |
|
Ms. Naree Luengchanakul Nationality: Thai Address : 4
Moo 5, Bansuan,
Muang, Chonburi |
10,000 |
6.67 |
|
Mr. Charan Chiewkul Nationality: Thai Address : 19/21
Bukkalo Rd., Thonburi,
Bangkok |
10,000 |
6.67 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
80,000 |
53.33 |
|
Foreign-Indian |
3 |
70,000 |
46.67 |
|
Total |
7 |
150,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Piyalak Suntawong No. 10794
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
387,390.80 |
1,742,698.51 |
641,111.82 |
|
Trade Accounts &
Other Receivable |
10,602,148.19 |
12,718,302.94 |
22,075,269.49 |
|
Inventories |
35,519,888.57 |
42,990,355.23 |
31,759,900.55 |
|
Other Current Assets
|
57,966.66 |
150,650.00 |
10,562.62 |
|
|
|
|
|
|
Total Current Assets
|
46,567,394.22 |
57,602,006.68 |
54,486,844.48 |
|
Fixed Assets |
15,905,426.64 |
16,190,399.56 |
14,768,499.46 |
|
Other Non-current Assets |
10,526.62 |
10,562.62 |
- |
|
Total Assets |
62,483,347.48 |
73,802,968.86 |
69,255,343.94 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
7,379,211.02 |
18,277,096.47 |
14,077,118.80 |
|
Current Portion
of Long-term Liabilities |
1,557,083.34 |
1,450,992.00 |
997,200.00 |
|
Accrued Income
Tax |
40,737.94 |
- |
57,962.76 |
|
Other Current
Liabilities |
39,809.11 |
13,862.37 |
151,599.45 |
|
|
|
|
|
|
Total Current
Liabilities |
9,016,841.41 |
19,741,950.84 |
15,283,881.01 |
|
Long-term Loan
from Related Person |
33,650,000.00 |
33,450,000.00 |
32,500,000.00 |
|
Long-term Loan |
3,717,056.87 |
5,078,113.16 |
5,497,188.67 |
|
Total Liabilities |
46,383,898.28 |
58,270,064.00 |
53,281,069.68 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value Authorized &
issued share capital
150,000 shares
|
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
1,099,449.20 |
532,904.86 |
974,274.26 |
|
|
|
|
|
|
Total Shareholders' Equity |
16,099,449.20 |
15,532,904.86 |
15,974,274.26 |
|
Total Liabilities & Shareholders' Equity |
62,483,347.48 |
73,802,968.86 |
69,255,343.94 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
22,589,072.53 |
14,101,692.04 |
29,728,939.25 |
|
Other Income |
573,391.52 |
5,247.31 |
379,200.20 |
|
Total Revenues |
23,162,464.05 |
14,106,939.35 |
30,108,139.45 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
16,539,754.65 |
9,413,284.46 |
24,992,879.63 |
|
Selling Expenses |
985,340.00 |
998,225.23 |
1,742,260.00 |
|
Administrative Expenses |
4,569,139.47 |
3,700,197.56 |
2,639,910.73 |
|
Total Expenses |
22,094,234.12 |
14,111,707.25 |
29,375,050.36 |
|
|
|
|
|
|
Profit / [Loss] before Financial Expenses &
Income Tax |
1,068,229.93 |
[4,767.90] |
733,089.09 |
|
Financial Expenses |
[398,827.05] |
[436,601.50] |
[451,818.15] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
669,402.88 |
[441,369.40] |
281,270.94 |
|
Income Tax |
[102,858.54] |
- |
[90,962.76] |
|
Net Profit / [Loss] |
566,544.34 |
[441,369.40] |
190,308.18 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.16 |
2.92 |
3.56 |
|
QUICK RATIO |
TIMES |
1.22 |
0.73 |
1.49 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.42 |
0.87 |
2.01 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.36 |
0.19 |
0.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
783.85 |
1,666.95 |
463.83 |
|
INVENTORY TURNOVER |
TIMES |
0.47 |
0.22 |
0.79 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
171.31 |
329.19 |
271.03 |
|
RECEIVABLES TURNOVER |
TIMES |
2.13 |
1.11 |
1.35 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
162.84 |
708.69 |
205.58 |
|
CASH CONVERSION CYCLE |
DAYS |
792.32 |
1,287.45 |
529.27 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
73.22 |
66.75 |
84.07 |
|
SELLING & ADMINISTRATION |
% |
24.59 |
33.32 |
14.74 |
|
INTEREST |
% |
1.77 |
3.10 |
1.52 |
|
GROSS PROFIT MARGIN |
% |
29.32 |
33.28 |
17.21 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.73 |
(0.03) |
2.47 |
|
NET PROFIT MARGIN |
% |
2.51 |
(3.13) |
0.64 |
|
RETURN ON EQUITY |
% |
3.52 |
(2.84) |
1.19 |
|
RETURN ON ASSET |
% |
0.91 |
(0.60) |
0.27 |
|
EARNING PER SHARE |
BAHT |
3.78 |
(2.94) |
1.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.79 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.88 |
3.75 |
3.34 |
|
TIME INTEREST EARNED |
TIMES |
2.68 |
(0.01) |
1.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
60.19 |
(52.57) |
|
|
OPERATING PROFIT |
% |
(22,504.62) |
(100.65) |
|
|
NET PROFIT |
% |
228.36 |
(331.92) |
|
|
FIXED ASSETS |
% |
(1.76) |
9.63 |
|
|
TOTAL ASSETS |
% |
(15.34) |
6.57 |
|
ANNUAL GROWTH: ACCEPTABLE
An annual sales growth is 60.19%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.32 |
Impressive |
Industrial
Average |
3.01 |
|
Net Profit Margin |
2.51 |
Impressive |
Industrial
Average |
0.58 |
|
Return on Assets |
0.91 |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
3.52 |
Deteriorated |
Industrial
Average |
14.14 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The
company’s figure is 29.32%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that net
profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 2.51%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 0.91%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is 3.52%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
5.16 |
Impressive |
Industrial
Average |
1.60 |
|
Quick Ratio |
1.22 |
|
|
|
|
Cash Conversion Cycle |
792.32 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's figure
is 5.16 times in 2013, increased from 2.92 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.22 times in 2013,
increased from 0.73 times, although excluding inventory so the company still
have good short-term financial strength.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 793 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
2.88 |
Risky |
Industrial
Average |
2.73 |
|
Times Interest Earned |
2.68 |
Impressive |
Industrial
Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.68 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.74 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.42 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.36 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
783.85 |
|
|
|
|
Inventory Turnover |
0.47 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
171.31 |
|
|
|
|
Receivables Turnover |
2.13 |
Deteriorated |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
162.84 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.13 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 1667 days at the
end of 2012 to 784 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.22 times in year 2012 to 0.47 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.36 times and 0.19
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
|
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.