MIRA INFORM REPORT
|
Report No. : |
352221 |
|
Report Date : |
30.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
PACIFIC LUXURY [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
Unit 701, 7th Floor, Gemopolis Industrial Estate, 64/46 Soi Sukhapiban 2 [Soi 31],Dokmai, Praves, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
11.06.2010 |
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|
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Com. Reg. No.: |
0105553070308 |
|
|
|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Subject is engaged in manufacturing and exporting various
designs of jewelry
products such as
rings, earrings, bracelet,
necklace, pendant. |
|
|
|
|
No. of Employee : |
35 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
A2 |
|
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, and generally pro-investment policies Thailand has historically had a strong economy due in part to competitive industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The economy experienced slow growth and declining exports in 2014, in part due to domestic political turmoil and sluggish global demand. With full employment, Thailand attracts an estimated 2-4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
Source
: CIA |
Company
name
PACIFIC LUXURY
[THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : UNIT 701, 7th FLOOR, GEMOPOLIS INDUSTRIAL ESTATE,
64/46 SOI
SUKHAPIBAN 2 [SOI
31],
DOKMAI, PRAVES,
BANGKOK 10250, THAILAND
TELEPHONE : [66] 2727-0640-1
FAX :
[66] 2727-0642
E-MAIL
ADDRESS : nilesh@pacificluxury.cn
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553070308
TAX
ID NO. : 3033960082
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
52.00%
INDIAN : 48.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KUNAL HARISH MEHTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 35
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, IMPORTER
AND EXPORTER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on June 11,
2010 as a
private limited company
under the registered
name PACIFIC LUXURY
[THAILAND] LIMITED by
Indian groups, with the
business objective to
manufacture various kinds
of jewelry products
for exports.
In
December 2013, the subject has
become a joint
venture between Thai
and Indian groups. It
currently employs 35
staff.
The
subject’s registered address
is Unit 701, 7th
Flr., Gemopolis Industrial
Estate, 64/46 Soi Sukhapiban 2 [Soi 31], Dokmai, Praves,
Bangkok 10250, and this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kunal Harish Mehta |
|
Indian |
34 |
|
Mr. Hiren Suryakantbhai Joshi |
|
Indian |
29 |
|
Ms. Yaowaluk Aisim |
|
Thai |
37 |
AUTHORIZED
PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kunal Harish Mehta is
the Managing Director.
He is Indian
nationality with the
age of 34
years old.
Mr. Hiren Suryakantbhai
Joshi is the
General Manager.
He is Indian
nationality with the
age of 29
years old.
Ms. Anita Abrol is
the Chief Operation
Officer.
She is Indian
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
and exporting various designs
of jewelry products
such as rings,
earrings, bracelet, necklace,
pendant and etc.
PURCHASE
Most
of diamonds and
gemstones for production
are imported from
India, Pakistan, Hong
Kong and Republic
of China, the
remaining is purchased
from local suppliers.
EXPORT
100% of the
products is exported
to India, Hong Kong,
Japan, U.S.A., and
European countries.
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 to the
past two years.
CREDIT
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.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs 35 staff.
LOCATION
DETAILS
The premise is rented for
administrative office, factory and warehouse at the
heading address. Premise
is located in
jewelry industrial area.
Branches:
- 11th Floor,
Room No. E1, Surawong
Watthanakarn Building, 322/16
Surawong Road,
Sipraya, Bangrak, Bangkok
10500
-
Surawong Watthanakarn Building,
322/20-21 Surawong Road,
Sipraya, Bangrak,
Bangkok 10500
COMMENT
Subject
is a manufacturer
and exporter of
jewelry products. The
products are produced
with diamond, gemstone, semi-precious stone, 18K gold and
platinum. Sales have been
increased accordingly to
new markets expansion
in both local
and overseas countries
in the previous
years.
Despite
slow domestic consumption
and shrinking of
export markets, the
subject is able
to maintain a
modest business.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 6,000,000
on May 28,
2013
Bht. 8,000,000
on December 13,
2013
Bht. 10,000,000
on November 6,
2014
The
latest registered capital
was increased to
Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Songchai Chuaysatit Nationality: Thai Address : 92/438
Moo 2, Klongkum, Buengkum, Bangkok |
52,000 |
52.00 |
|
Mr. Kunal Harish Mehta Nationality: Indian Address : 64/46
Soi Sukhapibal 2 [Soi 31],
Dokmai, Praves, Bangkok |
38,000 |
38.00 |
|
Mr. Hiren Suryakantbhai Joshi Nationality: Indian Address : 64/46
Soi Sukhapibal 2
[Soi 31], Dokmai,
Praves, Bangkok |
10,000 |
10.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
52,000 |
52.00 |
|
Foreign - Indian |
2 |
48,000 |
48.00 |
|
Total |
3 |
100,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Manus Wangthamnoon No.
3134
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
582,303.46 |
494,444.79 |
274,899.71 |
|
Trade Accounts & Other Receivable |
250,943,060.05 |
149,765,616.60 |
45,463,111.15 |
|
Short-term Loans |
6,964,250.00 |
4,731,000.00 |
675,000.00 |
|
Inventories |
50,730,567.42 |
84,182,588.32 |
39,477,600.62 |
|
Other Current Assets
|
273,143.39 |
304,578.95 |
231,741.05 |
|
|
|
|
|
|
Total Current Assets
|
309,493,324.32 |
239,478,228.66 |
86,122,352.53 |
|
Fixed Assets |
7,448,464.75 |
8,482,951.76 |
9,332,058.63 |
|
Other Non-current Assets |
168,317.00 |
168,317.00 |
108,317.00 |
|
Total Assets |
317,110,106.07 |
248,129,497.42 |
95,562,728.16 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts &
Other Payable |
308,907,432.54 |
246,578,486.44 |
95,000,372.49 |
|
Short-term Loans |
4,157,680.96 |
4,200,191.89 |
619,553.00 |
|
Other Current Liabilities |
775,400.81 |
589,824.59 |
673,394.10 |
|
|
|
|
|
|
Total Current Liabilities |
313,840,514.31 |
251,368,502.92 |
96,293,319.59 |
|
Total Liabilities |
313,840,514.31 |
251,368,502.92 |
96,293,319.59 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share capital
100,000 shares in
2014 80,000 shares in
2013 & 2012 |
10,000,000.00 |
8,000,000.00 |
8,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
8,000,000.00 |
8,000,000.00 |
|
Retained Earning -
Unappropriated |
[6,730,408.24] |
[11,239,005.50] |
[4,730,591.43] |
|
Total Shareholders' Equity
|
3,269,591.76 |
[3,239,005.50] |
[730,591.43] |
|
Total Liabilities &
Shareholders' Equity |
317,110,106.07 |
248,129,497.42 |
95,562,728.16 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales |
192,699,917.39 |
171,478,158.78 |
72,587,713.98 |
|
Other Income |
1,567,815.33 |
382.16 |
1,476,428.91 |
|
Total Revenues |
194,267,732.72 |
171,478,540.94 |
74,064,142.89 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
180,893,979.01 |
162,768,160.22 |
72,307,677.48 |
|
Selling Expenses |
245,401.65 |
272,620.09 |
203,305.61 |
|
Administrative Expenses |
8,366,119.36 |
7,306,509.52 |
2,831,624.13 |
|
Other Expenses |
- |
7,430,802.26 |
- |
|
Total Expenses |
189,505,500.02 |
177,778,092.09 |
75,342,607.22 |
|
|
|
|
|
|
Profit/Loss] before Financial Cost |
4,762,232.70 |
[6,299,551.15] |
[1,278,464.33] |
|
Financial Cost |
[253,635.44] |
[208,862.92] |
[167,930.50] |
|
Net Profit / [Loss] |
4,508,597.26 |
[6,508,414.07] |
[1,446,394.83] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.99 |
0.95 |
0.89 |
|
QUICK RATIO |
TIMES |
0.82 |
0.62 |
0.48 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
25.87 |
20.21 |
7.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.61 |
0.69 |
0.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
102.36 |
188.78 |
199.28 |
|
INVENTORY TURNOVER |
TIMES |
3.57 |
1.93 |
1.83 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
475.32 |
318.78 |
228.61 |
|
RECEIVABLES TURNOVER |
TIMES |
0.77 |
1.14 |
1.60 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
623.30 |
552.94 |
479.55 |
|
CASH CONVERSION CYCLE |
DAYS |
(45.62) |
(45.38) |
(51.67) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.87 |
94.92 |
99.61 |
|
SELLING & ADMINISTRATION |
% |
4.47 |
4.42 |
4.18 |
|
INTEREST |
% |
0.13 |
0.12 |
0.23 |
|
GROSS PROFIT MARGIN |
% |
6.94 |
5.08 |
2.42 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.47 |
(3.67) |
(1.76) |
|
NET PROFIT MARGIN |
% |
2.34 |
(3.80) |
(1.99) |
|
RETURN ON EQUITY |
% |
137.89 |
- |
- |
|
RETURN ON ASSET |
% |
1.42 |
(2.62) |
(1.51) |
|
EARNING PER SHARE |
BAHT |
45.09 |
(81.36) |
(18.08) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.99 |
1.01 |
1.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
95.99 |
(77.61) |
(131.80) |
|
TIME INTEREST EARNED |
TIMES |
18.78 |
(30.16) |
(7.61) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.38 |
136.24 |
|
|
OPERATING PROFIT |
% |
(175.60) |
392.74 |
|
|
NET PROFIT |
% |
169.27 |
(349.97) |
|
|
FIXED ASSETS |
% |
(12.19) |
(9.10) |
|
|
TOTAL ASSETS |
% |
27.80 |
159.65 |
|
ANNUAL
GROWTH : SATISFACTORY
An annual sales growth is 12.38%. Turnover has increased from THB
171,478,158.78 in 2013 to THB 192,699,917.39 in 2014. While net profit has increased
from THB -6,508,414.07 in 2013 to THB 4,508,597.26 in 2014. And total assets
has increased from THB 248,129,497.42 in 2013 to THB 317,110,106.07 in 2014.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.94 |
Impressive |
Industrial
Average |
4.74 |
|
Net Profit Margin |
2.34 |
Acceptable |
Industrial
Average |
4.06 |
|
Return on Assets |
1.42 |
Deteriorated |
Industrial
Average |
4.95 |
|
Return on Equity |
137.89 |
Impressive |
Industrial
Average |
12.58 |
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 6.94%. 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 2.34%.
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 1.42%.
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. Return on Equity ratio
is 137.89%, higher figure when compared with those of its average competitors
in the same industry, indicated that business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.99 |
Risky |
Industrial
Average |
1.44 |
|
Quick Ratio |
0.82 |
|
|
|
|
Cash Conversion Cycle |
(45.62) |
|
|
|
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 0.99 times in 2014, increased from 0.95 times, then the company may have
problems meeting its short-term obligations. 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 0.82 times in 2014,
increased from 0.62 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 -46 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.99 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
95.99 |
Risky |
Industrial Average |
3.32 |
|
Times Interest Earned |
18.78 |
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 18.78 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 0.99 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
25.87 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.61 |
Deteriorated |
Industrial
Average |
1.22 |
|
Inventory Conversion Period |
102.36 |
|
|
|
|
Inventory Turnover |
3.57 |
Impressive |
Industrial
Average |
3.23 |
|
Receivables Conversion Period |
475.32 |
|
|
|
|
Receivables Turnover |
0.77 |
Acceptable |
Industrial
Average |
1.50 |
|
Payables Conversion Period |
623.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.77 and 1.14 in
2014 and 2013 respectively. This ratio measures the efficiency of the company in
managing its trade debtors to generate revenue. A lower ratio may indicate over
extension and collection problems. Conversely, a higher ratio may indicate an
overtly stringent policy. In this case, the company's A/R ratio in 2014
decreased from 2013. This would suggest the company had deteriorated in the
management of its debt collections.
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 189 days at the
end of 2013 to 102 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 1.93 times in year 2013 to 3.57 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.61 times and 0.69
times in 2014 and 2013 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.66.75 |
|
|
1 |
Rs.100.68 |
|
Euro |
1 |
Rs.70.88 |
|
BHT |
1 |
Rs.1.87 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
ANK |
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.