|
|
|
MIRA INFORM REPORT
|
Report No. : |
508792 |
|
Report Date : |
11.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
SHUBHAM INTERNATIONAL CO.,LTD. |
|
|
|
|
Registered Office : |
21st Floor, Jewelry Trade Center, 919/270 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
20.08.1998 |
|
|
|
|
Com. Reg. No.: |
0105541051958 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor and Exporter of Diamonds
and
Gemstones. |
|
|
|
|
No. of Employees : |
3 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.
|
Source
: CIA |
Company name
SHUBHAM
INTERNATIONAL CO.,LTD.
SUMMARY
BUSINESS
ADDRESS : 21st FLOOR, JEWELRY
TRADE CENTER,
919/270 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2268-1512-3,
2266-5008, 089 791-9878
FAX :
[66] 2630-3354
E-MAIL
ADDRESS : shubham_bkk@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541051958 [Former : 772/2541]
TAX
ID NO. : 3011952832
CAPITAL REGISTERED : BHT. 16,000,000
CAPITAL PAID-UP : BHT.
16,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
BHUPENDRA KUMAR, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS
AND
GEMSTONES
IMPORTER,
DISTRIBUTOR 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 August 20,
1998 as a
private limited company
under the name
style SHUBHAM INTERNATIONAL
CO., LTD., by Indian
groups, in order
to distribute diamonds and gemstones to
jewelry industry. It
currently employs 3 staff.
The subject’s registered address was initially
at Room 406, 4th Flr., 297
Wanglee Building, Surawongse
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
In October 2006, it was
relocated to 21st Flr.,
Jewelry Trade Center, 919/270 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Abhishek Lalwani |
|
Indian |
38 |
|
Mr. Bhupendra Kumar |
|
Indian |
51 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Bhupendra Kumar
is the Managing
Director.
He is Indian
nationality with the
age of 51
years old.
Mr. Abhishek Lalwani is the
Assistant Managing Director.
He is Indian
nationality with the
age of 38 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and
re-exporting various kinds
of diamond, pearl,
gemstones and jewelry products,
as well as exporting
of the local
jewelry products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India, Pakistan
and South Africa.
SALES
100%
of diamond, pearl and gemstones
are sold locally
to traders and
manufacturers.
EXPORT
The
products are exported and re-exported
to traders in
India, Republic of
China, Hong Kong and
the countries in
Europe.
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 for the
past two years.
CREDIT
Sales
are by cash
or on the
credit term of
30-60 days.
Local
bills are paid
by cash or
on the credit
term of 30-60
days.
Imports
are by L/C
at sight or
T/T.
Exports
are against T/T.
BANKING
Kasikornbank
Public Company Limited
[Silom Branch : Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject
employs 3 staff
[office and sales 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’s operating performance
in 2016 was
depressive with a
drastic decrease in
sales or service
income and net
profit comparing to the previous
year. Sluggish economy
had an impact
to consumers by
slow spending, while market
of luxury goods
had grown at
slow pace in
the previous year.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100
each.
On December 16, 2002, the capital was increased
to Bht. 16,000,000 divided into
160,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at July 31,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Jeerawat Luanwanich Nationality: Thai Address : 76/67
Limklongbangkor Rd., Bangkor,
Jomthong, Bangkok |
40,800 |
25.50 |
|
Mr. Veeraphan Saelam Nationality: Thai Address : 381
Soi Somdejphachaotaksin 23, Samreh, Thonburi,
Bangkok |
40,800 |
25.50 |
|
Mr. Bhupendra Kumar Nationality: Indian Address : 919/270
Silom Rd., Silom,
Bangrak, Bangkok |
38,000 |
23.75 |
|
Mr. Abhishek Lalwani Nationality: Indian Address : 919/270
Silom Rd., Silom,
Bangrak, Bangkok |
30,000 |
18.75 |
|
Mrs. Zema Nationality: Indian Address : 919/270
Silom Rd., Silom,
Bangrak, Bangkok |
10,400 |
6.50 |
Total Shareholders : 5
Share Structure
[as at July
31, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
81,600 |
51.00 |
|
Foreign - Indian |
3 |
78,400 |
49.00 |
|
Total |
5 |
160,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Piyapong Udom No.
10629
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2016, 2015 and
2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
742,461.61 |
81,665.70 |
59,988.31 |
|
Trade Accounts and
Other Receivable |
85,537,558.35 |
86,510,051.45 |
85,223,086.12 |
|
Inventories |
106,667,980.87 |
115,279,617.16 |
138,194,178.19 |
|
Other Current Assets |
27,774.32 |
259,938.84 |
123,417.71 |
|
Total Current Assets |
192,975,775.15 |
202,131,273.15 |
223,600,670.33 |
|
|
|
|
|
|
Property, Plant and
Equipment |
3,486,426.96 |
4,262,814.71 |
5,041,763.95 |
|
Other Non-current Assets |
192,252.91 |
192,251.90 |
308,385.42 |
|
Total Assets |
196,654,455.02 |
206,586,339.76 |
228,950,819.70 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan From Financial Institutions |
994,686.12 |
920,725.18 |
851,514.78 |
|
Trade Accounts and Other
Payable |
179,260,163.91 |
182,851,014.82 |
188,185,131.54 |
|
Accrued Income Tax |
57,319.64 |
- |
34,975.00 |
|
Other Current Liabilities |
38,964.62 |
31,092.73 |
40,375.45 |
|
Total Current Liabilities |
180,351,134.29 |
183,802,832.73 |
189,111,996.77 |
|
|
|
|
|
|
Long-term Loan |
8,727,143.77 |
15,457,994.76 |
19,247,000.00 |
|
Financial Institutions Creditors |
- |
- |
5,548,910.05 |
|
Total Liabilities |
189,078,278.06 |
199,260,827.49 |
213,907,906.82 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
and issued share
capital 160,000 shares
|
16,000,000.00 |
16,000,000.00 |
16,000,000.00 |
|
Capital Paid |
16,000,000.00 |
16,000,000.00 |
16,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
[8,423,823.04] |
[8,674,487.73] |
[957,087.12] |
|
Total Shareholders’ Equity |
7,576,176.96 |
7,325,512.27 |
15,042,912.88 |
|
Total Liabilities and
Shareholders’ Equity |
196,654,455.02 |
206,586,339.76 |
228,950,819.70 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
27,352,573.52 |
41,391,330.83 |
43,383,212.23 |
|
Other Income |
876,282.12 |
5,008.18 |
238,929.31 |
|
Total Revenues |
28,228,855.64 |
41,396,339.01 |
43,622,141.54 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
23,559,663.00 |
36,946,020.54 |
39,487,169.63 |
|
Selling Expenses |
742,264.55 |
740,711.48 |
679,366.76 |
|
Administrative Expenses |
3,245,502.28 |
3,430,635.84 |
2,772,512.67 |
|
Other Expenses |
- |
7,652,045.80 |
600,502.53 |
|
Total Expenses |
27,547,429.83 |
48,769,413.66 |
43,539,551.59 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
681,425.81 |
[7,373,074.65] |
82,589.95 |
|
Financial Cost |
[311,840.55] |
[344,325.96] |
[311,378.81] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
369,585.26 |
[7,717,400.61] |
[228,788.86] |
|
Income Tax |
[118,920.57] |
- |
[134,976.42] |
|
Net Profit / [Loss] |
250,664.69 |
[7,717,400.61] |
[363,765.28] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
1.10 |
1.18 |
|
QUICK RATIO |
TIMES |
0.48 |
0.47 |
0.45 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.85 |
9.71 |
8.60 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.14 |
0.20 |
0.19 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
1,652.56 |
1,138.88 |
1,277.40 |
|
INVENTORY TURNOVER |
TIMES |
0.22 |
0.32 |
0.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
1,141.44 |
762.87 |
717.02 |
|
RECEIVABLES TURNOVER |
TIMES |
0.32 |
0.48 |
0.51 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
2,777.20 |
1,806.44 |
1,739.49 |
|
CASH CONVERSION CYCLE |
DAYS |
16.80 |
95.31 |
254.92 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.13 |
89.26 |
91.02 |
|
SELLING & ADMINISTRATION |
% |
14.58 |
10.08 |
7.96 |
|
INTEREST |
% |
1.14 |
0.83 |
0.72 |
|
GROSS PROFIT MARGIN |
% |
17.07 |
10.75 |
9.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.49 |
(17.81) |
0.19 |
|
NET PROFIT MARGIN |
% |
0.92 |
(18.64) |
(0.84) |
|
RETURN ON EQUITY |
% |
3.31 |
(105.35) |
(2.42) |
|
RETURN ON ASSET |
% |
0.13 |
(3.74) |
(0.16) |
|
EARNING PER SHARE |
BAHT |
1.57 |
(48.23) |
(2.27) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.96 |
0.96 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
24.96 |
27.20 |
14.22 |
|
TIME INTEREST EARNED |
TIMES |
2.19 |
(21.41) |
0.27 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(33.92) |
(4.59) |
|
|
OPERATING PROFIT |
% |
(109.24) |
(9,027.33) |
|
|
NET PROFIT |
% |
103.25 |
(2,021.53) |
|
|
FIXED ASSETS |
% |
(18.21) |
(15.45) |
|
|
TOTAL ASSETS |
% |
(4.81) |
(9.77) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -33.92%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.07 |
Impressive |
Industrial
Average |
0.62 |
|
Net Profit Margin |
0.92 |
Impressive |
Industrial
Average |
0.09 |
|
Return on Assets |
0.13 |
Deteriorated |
Industrial
Average |
2.05 |
|
Return on Equity |
3.31 |
Acceptable |
Industrial
Average |
7.33 |
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 17.07%. 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 0.92% 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 0.13%.
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 3.31%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.07 |
Satisfactory |
Industrial
Average |
1.45 |
|
Quick Ratio |
0.48 |
|
|
|
|
Cash Conversion Cycle |
16.80 |
|
|
|
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 1.07 times in 2016, decrease from 1.1 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 0.48 times in 2016,
increase from 0.47 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 17 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.96 |
Acceptable |
Industrial
Average |
0.72 |
|
Debt to Equity Ratio |
24.96 |
Risky |
Industrial
Average |
2.57 |
|
Times Interest Earned |
2.19 |
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 2.19 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 0.96 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 |
7.85 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.14 |
Deteriorated |
Industrial
Average |
23.92 |
|
Inventory Conversion Period |
1,652.56 |
|
|
|
|
Inventory Turnover |
0.22 |
Deteriorated |
Industrial
Average |
51.25 |
|
Receivables Conversion Period |
1,141.44 |
|
|
|
|
Receivables Turnover |
0.32 |
Deteriorated |
Industrial
Average |
59.29 |
|
Payables Conversion Period |
2,777.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.32 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 1139 days at the
end of 2015 to 1653 days at the end of 2016. This represents a negative trend.
And Inventory turnover has decreased from 0.32 times in year 2015 to 0.22 times
in year 2016.
The company's Total Asset Turnover is calculated as 0.14 times and 0.2
times in 2016 and 2015 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 |
INR 67.38 |
|
|
1 |
INR 91.39 |
|
Euro |
1 |
INR 79.89 |
|
Thai Baht |
1 |
INR 2.10 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIY |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.