MIRA INFORM REPORT
|
Report No. : |
309537 |
|
Report Date : |
02.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
LITHOS CO., LTD. |
|
|
|
|
Registered Office : |
123/15-16 Nonsee Road, Chongnonsi, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.05.200 |
|
|
|
|
Com. Reg. No.: |
0105543045017 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Jewelry Products. |
|
|
|
|
No. of Employees : |
51 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 And address
LITHOS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 123/15-16 NONSEE
ROAD, CHONGNONSI,
YANNAWA, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2681-2189-91
FAX :
[66] 2681-2187
E-MAIL
ADDRESS : lithos@lithosbkk.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0105543045017 [Former : 679/2543]
TAX
ID NO. : 3030111456
CAPITAL REGISTERED : BHT. 168,700,000
CAPITAL PAID-UP : BHT.
168,700,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PIERRE NAOUM
NASSIF, LEBANESE
MANAGING DIRECTOR
NO.
OF STAFF : 51
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER AND
EXPORTER
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 May 11,
2000 as a
private limited company
under the name style LITHOS CO., LTD., by a
multi-national groups, and
initially was a
subsidiary of Shine
Enterprises Ltd., in
Cyprus. Its business
objective is to
manufacture and market
jewelry products to
international markets. On December 15,
2010, the subject
became a subsidiary
of Greenson Holding
Pte. Ltd., in
Singapore. It currently
employs 51 staff.
The
subject’s registered and
business address were initially
at 99/470-471 Narathiwas Ratchanakarin Rd.,
Chongnonsi, Yannawa, Bangkok
10120.
In
2008, subject’s registered
address was relocated
to 123/15-16 Nonsee Rd., Chongnonsi,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
Mr.Pierre Naoum Nassif
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pierre Naoum Nassif
is the Managing
Director.
He is Lebanese
nationality with the
age of 55 years old.
Mr. Elic Naoum Nassif
is the Production
Manager.
He is Lebanese
nationality.
Ms. Kulwadee Kornkasem is
the Office Manager.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in design
and manufacturing various
kinds of diamond with gold
and platinum jewelry
products, including chain,
necklace, bracelet, pin,
ring, pendant, earrings
and etc.
PURCHASE
Raw materials such as
diamond and gemstones
as well as
accessories are purchased
from suppliers both local
and overseas, such
as India, Hong Kong,
Belgium and Russia.
EXPORT
100% of the
products is exported
to customers in
Japan, Hong Kong, India,
Republic of China,
and other countries
in Asia, Middle
East and Europe.
PARENT
COMPANY
Greenson Holding Pte.
Ltd.
Business Address : 230
Orchard Rd., 10-23
Faber House, Singapore
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 the past
two years.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 51
staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
In 2014, Thailand has been
adversely affected by
ongoing political turmoil
and at the same
time its economy
also experienced some
downturns growth, which is
reflected in lower annual
growth targets forecasted
by the subject.
Despite some economic recovery
signs from the US
and Europe, as a
result of a series
of quantitative easing monetary
policy, the Europe’s
growth is still
fragile with a
risk of high volatility. These
factors have an
unavoidable effect on
its company’s performance.
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. 10,000,000
on February 21,
2002
Bht. 20,000,000
on July 26,
2002
Bht. 30,000,000
on February 4,
2003
Bht. 34,000,000
on December 1,
2004
Bht. 54,000,000
on September 23,
2008
Bht. 168,700,000
on December 28,
2010
The latest
registered capital was
increased to Bht. 168,700,000 divided
into 1,687,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[As at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Greenson Holding Pte.
Ltd. Nationality: Singaporean Address : 230
Orchard Rd., 10-23
Faber House, Singapore |
1,147,000 |
67.99 |
|
Shine Enterprises Ltd. Nationality: Cyprus Address : Marian,
Lazana, Cyprus |
353,500 |
20.95 |
|
Mr. Pierre Naoum Nassif Nationality: Lebanese Address : 123/15
Nonsee Rd., Chongnonsi,
Yannawa, Bangkok |
184,000 |
10.91 |
|
Mr. Karim Kuri Nationality: American Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Mrs. Mona Hillani Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Mr. Eily Naoum Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
= 0.15 |
|
Ms. Tracy Pierre Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Ms. Tiffany Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
Total Shareholders : 8
Share
Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
8 |
1,687,000 |
100.00 |
|
Total |
8 |
1,687,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Jarin Limpachote No. 1983
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 |
7,428,905.29 |
3,653,053.12 |
1,003,883.85 |
|
Trade Accounts &
Other Receivable |
194,889,594.88 |
184,361,499.55 |
116,917,458.99 |
|
Inventories |
203,713,386.15 |
192,281,896.83 |
250,512,844.10 |
|
Other Current Assets
|
2,045,306.97 |
2,279,524.62 |
1,504,059.72 |
|
Total Current Assets
|
408,077,193.30 |
382,575,974.12 |
369,938,246.66 |
|
|
|
|
|
|
Fixed Assets |
15,669,472.20 |
14,326,522.32 |
15,393,442.92 |
|
Total Assets |
423,746,665.50 |
396,902,496.44 |
385,331,689.58 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Notes Payable |
233,670,829.94 |
197,104,718.48 |
184,275,879.89 |
|
Accrued Income Tax |
672,411.78 |
776,807.51 |
575,139.93 |
|
Other Current Liabilities |
3,858,527.81 |
3,837,221.58 |
697,537.36 |
|
Total Current Liabilities |
238,201,769.53 |
201,718,747.57 |
185,548,557.18 |
|
Long-term Loan |
4,231,645.66 |
16,560,145.66 |
23,760,145.66 |
|
Total Liabilities |
242,433,415.19 |
218,278,893.23 |
209,308,702.84 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,687,000 shares
|
168,700,000.00 |
168,700,000.00 |
168,700,000.00 |
|
Capital Paid |
168,700,000.00 |
168,700,000.00 |
168,700,000.00 |
|
Retained Earning -
Unappropriated |
12,613,250.31 |
9,923,603.21 |
7,322,986.74 |
|
Total Shareholders' Equity |
181,313,250.31 |
178,623,603.21 |
176,022,986.74 |
|
Total Liabilities &
Shareholders' Equity |
423,746,665.50 |
396,902,496.44 |
385,331,689.58 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
189,395,758.81 |
218,412,856.77 |
136,690,423.95 |
|
Gain on Exchange Rate |
- |
5,542,193.11 |
- |
|
Other Income |
- |
1,257,830.04 |
985,044.21 |
|
Total Revenues |
190,644,540.91 |
225,212,879.92 |
137,675,468.16 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
170,669,639.79 |
212,531,454.09 |
125,640,514.44 |
|
Selling Expenses |
6,005,255.89 |
2,940,092.04 |
1,887,007.39 |
|
Administrative Expenses |
2,805,982.00 |
2,791,396.24 |
2,924,599.20 |
|
Other Expenses |
4,249,203.84 |
3,572,513.57 |
3,309,038.84 |
|
Loss on Exchange Rate |
3,552,400.51 |
- |
1,997,175.19 |
|
Total Expenses |
187,282,482.03 |
221,835,455.94 |
135,758,335.06 |
|
Profit / [Loss] before Income
Tax |
3,362,058.88 |
3,377,423.98 |
1,917,133.10 |
|
Income Tax |
[672,411.78] |
[776,807.51] |
[575,139.93] |
|
Net Profit / [Loss] |
2,689,647.10 |
2,600,616.47 |
1,341,993.17 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.71 |
1.90 |
1.99 |
|
QUICK RATIO |
TIMES |
0.85 |
0.93 |
0.64 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
12.09 |
15.25 |
8.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.45 |
0.55 |
0.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
435.67 |
330.22 |
727.77 |
|
INVENTORY TURNOVER |
TIMES |
0.84 |
1.11 |
0.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
375.59 |
308.10 |
312.20 |
|
RECEIVABLES TURNOVER |
TIMES |
0.97 |
1.18 |
1.17 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
499.74 |
338.51 |
535.34 |
|
CASH CONVERSION CYCLE |
DAYS |
311.52 |
299.81 |
504.63 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.11 |
97.31 |
91.92 |
|
SELLING & ADMINISTRATION |
% |
4.65 |
2.62 |
3.52 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.55 |
5.81 |
8.80 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.78 |
1.55 |
1.40 |
|
NET PROFIT MARGIN |
% |
1.42 |
1.19 |
0.98 |
|
RETURN ON EQUITY |
% |
1.48 |
1.46 |
0.76 |
|
RETURN ON ASSET |
% |
0.63 |
0.66 |
0.35 |
|
EARNING PER SHARE |
BAHT |
1.59 |
1.54 |
0.80 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.55 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.34 |
1.22 |
1.19 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(13.29) |
59.79 |
|
|
OPERATING PROFIT |
% |
(0.45) |
76.17 |
|
|
NET PROFIT |
% |
3.42 |
93.79 |
|
|
FIXED ASSETS |
% |
9.37 |
(6.93) |
|
|
TOTAL ASSETS |
% |
6.76 |
3.00 |
|
ANNUAL
GROWTH: SATISFACTORY
An annual sales growth is -13.29%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.55 |
Deteriorated |
Industrial
Average |
25.13 |
|
Net Profit Margin |
1.42 |
Deteriorated |
Industrial
Average |
10.16 |
|
Return on Assets |
0.63 |
Deteriorated |
Industrial
Average |
14.30 |
|
Return on Equity |
1.48 |
Deteriorated |
Industrial
Average |
26.01 |
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 10.55%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
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 1.42%.
When compared with the industry average, the ratio of the company was lower.
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 0.63%.
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 1.48%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.71 |
Satisfactory |
Industrial
Average |
2.20 |
|
Quick Ratio |
0.85 |
|
|
|
|
Cash Conversion Cycle |
311.52 |
|
|
|
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 1.71 times in 2013, decreased from 1.9 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 lower.
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 0.85 times in 2013,
decreased from 0.93 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 312 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Acceptable |
Industrial
Average |
0.43 |
|
Debt to Equity Ratio |
1.34 |
Risky |
Industrial
Average |
0.75 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.57 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
12.09 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.45 |
Deteriorated |
Industrial Average |
1.41 |
|
Inventory Conversion Period |
435.67 |
|
|
|
|
Inventory Turnover |
0.84 |
Deteriorated |
Industrial
Average |
2.90 |
|
Receivables Conversion Period |
375.59 |
|
|
|
|
Receivables Turnover |
0.97 |
Deteriorated |
Industrial Average |
2.32 |
|
Payables Conversion Period |
499.74 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.97 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 increased from 330 days at the
end of 2012 to 436 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 1.11 times in year 2012 to 0.84 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.45 times and 0.55
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.61.79 |
|
|
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.69.29 |
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.