MIRA INFORM REPORT
|
Report No. : |
344177 |
|
Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SIAM SHINE STAR CO., LTD. |
|
|
|
|
Registered Office : |
Suite 206, 32nd Floor,
Gems Tower, 1249/206
Charoenkrung Road, Suriyawongse, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
03.08.1982 |
|
|
|
|
Com. Reg. No.: |
0105525027991 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged
in importing, distributing and exporting diamonds,
semi-precious stones and
jewelry products. |
|
|
|
|
No. of Employees : |
5 |
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 : |
Slow but correct |
|
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 |
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, 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’tat, 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
SIAM SHINE STAR CO., LTD.
SUMMARY
BUSINESS ADDRESS : SUITE 206, 32nd FLOOR,
GEMS TOWER,
1249/206 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-1584-7,
2267-3878, 081 829-5358
FAX : [66]
2267-3879
E-MAIL ADDRESS : office@siamshinestar.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1982
REGISTRATION NO. : 0105525027991
TAX ID NO. : 3101195903
CAPITAL REGISTERED : BHT.
25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN : 49.00%
FISCAL YEAR CLOSING DATE : JUNE 30
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
KAILASH CHAND AGARWAL,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 5
LINES OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
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 August
3, 1982 as
a private limited
company under the registered
name SIAM SHINE
STAR CO., LTD.
by Thai and
Indian groups. Its
objective is engaged in
jewelry trading business.
It currently employs
5 staff.
The subject’s registered
address is Suite
206, 32nd Floor,
Gems Tower, 1249/206
Charoenkrung Road, Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kailash Chand Agarwal |
|
Indian |
63 |
|
Mr. Kartik Samrat Agarwal |
|
Indian |
37 |
|
Mr. Dinesh Michael Agarwal |
|
Indian |
35 |
|
Mr. Deep Shikha Agarwal |
|
Indian |
59 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kailash Chand Agarwal
is the Managing
Director.
He is Indian
nationality with the
age of 63
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and exporting diamonds, semi-precious
stones and jewelry
products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly India
and Hong Kong.
SALES
The products are
sold to customers
both domestic and overseas,
mainly India, Japan
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 to the
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The banker’s name
was not disclosed.
EMPLOYMENT
The subject employs
5 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 was formed
in 1982 as an
importer, distributor and
exporter of diamond and jewelry products. Many factors have
affected overall consumption like
economic slowdown, shrinking consumer spending and
have an impact on
overall business.
Slow growth of
jewelry business has
seen largely in
domestic market including
the subject.
FINANCIAL INFORMATION
The capital was registered
at Bht. 500,000 divided into 500
shares of Bht. 1,000
each with fully
paid.
The capital was
increased later as
follows:
Bht. 5,000,000
on February 7,
1995
Bht. 6,000,000
on January 14,
2005
Bht. 25,000,000
on May 12,
2009
The latest registered
capital was increased
to Bht. 25 million, divided into
25,000 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
October 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kailash Chand Agarwal Nationality: Indian Address : 170/37
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
7,250 |
29.00 |
|
Mr. Sandeep Singhal Nationality: Thai Address : 24/3
Soi Sukhumvit 35,
Klongtoeynua,
Wattana, Bangkok |
6,750 |
27.00 |
|
Mr. Kartik Samrat Agarwal Nationality: Indian Address : 170/37
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
5,000 |
20.00 |
|
Ms. Pornthip Kanchanachaiyanant Nationality: Thai Address : 266/355
Rama 2 Rd.,
Samaedam Bangkhunthien, Bangkok |
3,000 |
12.00 |
|
Ms. Reena Panday Nationality: Thai Address : 432/968
Moo 1, Thungkru,
Bangkok |
3,000 |
12.00 |
Total Shareholders : 5
Share Structure [as
at October 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
12,750 |
51.00 |
|
Foreign - Indian |
2 |
12,250 |
49.00 |
|
Total |
5 |
25,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Ussanee Soontornchuen No.
10225
BALANCE SHEET
[BAHT]
The latest financial figures published
as at June
30, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
3,489,684.58 |
1,482,841.65 |
37,642.27 |
|
Trade Accounts &
Other Receivable |
9,697,034.35 |
9,311,262.36 |
- |
|
Inventories |
93,612,651.69 |
108,087,954.14 |
98,079,489.19 |
|
Other Current Assets
|
533,207.93 |
337,602.43 |
1,236,661.86 |
|
|
|
|
|
|
Total Current Assets
|
107,332,578.55 |
119,219,660.58 |
99,353,793.32 |
|
|
|
|
|
|
Fixed Assets |
3,097,758.17 |
3,831,622.50 |
193,222.98 |
|
Total Assets |
110,430,336.72 |
123,051,283.08 |
99,547,016.30 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
52,258,239.93 |
38,242,906.81 |
26,238,116.68 |
|
Trade Accounts & Other
Payable |
23,750,048.22 |
39,790,118.44 |
29,295,536.46 |
|
Current Portion of
Hire-purchase Payable |
940,514.33 |
1,192,160.76 |
- |
|
Accrued Income Tax |
177,773.57 |
360,677.20 |
- |
|
Other Current Liabilities |
136,939.94 |
138,561.69 |
956,198.77 |
|
|
|
|
|
|
Total Current Liabilities |
77,263,515.99 |
79,724,424.90 |
56,489,851.91 |
|
Long-term Loan from Person or Other |
- |
1,470,000.00 |
320,000.00 |
|
Long-term Loan from Financial Institutions |
- |
8,759,921.92 |
12,752,209.57 |
|
Hire-purchase Payable, Net |
- |
1,054,025.15 |
- |
|
Total Liabilities |
77,263,515.99 |
91,008,371.97 |
69,562,061.48 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized and
issued share capital
25,000 shares |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
|
|
|
|
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning Unappropriated |
8,166,820.73 |
7,042,911.11 |
4,984,954.82 |
|
Total Shareholders' Equity |
33,166,820.73 |
32,042,911.11 |
29,984,954.82 |
|
Total Liabilities &
Shareholders' Equity |
110,430,336.72 |
123,051,283.08 |
99,547,016.30 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
137,549,712.65 |
126,129,418.16 |
160,126,176.99 |
|
Gain on Exchange Rate |
- |
518,534.51 |
- |
|
Other Income |
1,242.91 |
55,324.48 |
1,600.92 |
|
Total Revenues |
137,550,955.56 |
126,703,277.15 |
160,127,777.91 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
126,412,870.40 |
116,424,647.22 |
147,342,408.25 |
|
Selling Expenses |
1,309,667.14 |
1,848,681.74 |
2,215,394.22 |
|
Administrative Expenses |
5,513,567.79 |
3,954,862.06 |
5,335,888.22 |
|
Loss on Exchange Rate |
965,790.97 |
- |
823,906.87 |
|
Total Expenses |
134,201,896.30 |
122,228,191.02 |
155,717,597.56 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
3,349,059.26 |
4,475,086.13 |
4,410,180.35 |
|
Financial Cost |
[1,797,376.07] |
[1,768,952.64] |
[1,870,197.37] |
|
Profit / [Loss] before Income
Tax |
1,551,683.19 |
2,706,133.49 |
2,539,982.98 |
|
Income Tax |
[427,773.57] |
[648,177.20] |
[1,141,578.49] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,123,909.62 |
2,057,956.29 |
1,398,404.49 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.39 |
1.50 |
1.76 |
|
QUICK RATIO |
TIMES |
0.17 |
0.14 |
0.00 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
44.40 |
32.92 |
828.71 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.25 |
1.03 |
1.61 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
270.29 |
338.86 |
242.96 |
|
INVENTORY TURNOVER |
TIMES |
1.35 |
1.08 |
1.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
25.73 |
26.95 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
14.18 |
13.55 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
68.58 |
124.75 |
72.57 |
|
CASH CONVERSION CYCLE |
DAYS |
227.45 |
241.06 |
170.39 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.90 |
92.31 |
92.02 |
|
SELLING & ADMINISTRATION |
% |
4.96 |
4.60 |
4.72 |
|
INTEREST |
% |
1.31 |
1.40 |
1.17 |
|
GROSS PROFIT MARGIN |
% |
8.10 |
8.15 |
7.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.43 |
3.55 |
2.75 |
|
NET PROFIT MARGIN |
% |
0.82 |
1.63 |
0.87 |
|
RETURN ON EQUITY |
% |
3.39 |
6.42 |
4.66 |
|
RETURN ON ASSET |
% |
1.02 |
1.67 |
1.40 |
|
EARNING PER SHARE |
BAHT |
44.96 |
82.32 |
55.94 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.74 |
0.70 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.33 |
2.84 |
2.32 |
|
TIME INTEREST EARNED |
TIMES |
1.86 |
2.53 |
2.36 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.05 |
(21.23) |
|
|
OPERATING PROFIT |
% |
(25.16) |
1.47 |
|
|
NET PROFIT |
% |
(45.39) |
47.16 |
|
|
FIXED ASSETS |
% |
(19.15) |
1,883.01 |
|
|
TOTAL ASSETS |
% |
(10.26) |
23.61 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 9.05%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.10 |
Satisfactory |
Industrial Average |
8.39 |
|
Net Profit Margin |
0.82 |
Impressive |
Industrial Average |
0.15 |
|
Return on Assets |
1.02 |
Impressive |
Industrial Average |
0.90 |
|
Return on Equity |
3.39 |
Impressive |
Industrial Average |
2.51 |
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 8.1%. 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 0.82%,
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. Return on Assets ratio is 1.02%, 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.
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 3.39%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.39 |
Acceptable |
Industrial Average |
2.18 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
227.45 |
|
|
|
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 1.39 times in 2014, decreased from 1.5 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 0.17 times in 2014,
increased from 0.14 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 228 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Acceptable |
Industrial Average |
0.62 |
|
Debt to Equity Ratio |
2.33 |
Risky |
Industrial Average |
1.63 |
|
Times Interest Earned |
1.86 |
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 1.87 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 0.7 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 |
44.40 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.25 |
Deteriorated |
Industrial Average |
6.09 |
|
Inventory Conversion Period |
270.29 |
|
|
|
|
Inventory Turnover |
1.35 |
Deteriorated |
Industrial Average |
9.22 |
|
Receivables Conversion Period |
25.73 |
|
|
|
|
Receivables Turnover |
14.18 |
Satisfactory |
Industrial Average |
16.77 |
|
Payables Conversion Period |
68.58 |
|
|
|
The company's Account Receivable Ratio is calculated as 14.18 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 339 days at the end of 2013 to
270 days at the end of 2014. This represents a positive trend. And Inventory
turnover has increased from 1.08 times in year 2013 to 1.35 times in year 2014.
The company's Total Asset Turnover is calculated as 1.25 times and 1.03
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.16 |
|
|
1 |
Rs.99.78 |
|
Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.