|
|
|
MIRA INFORM REPORT
|
Report No. : |
510020 |
|
Report Date : |
22.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
KINJAL STAR CO., LTD. |
|
|
|
|
Registered Office : |
36th Floor,
Jewelry Trade Center, 919/435 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
18.05.1994 |
|
|
|
|
Com. Reg. No.: |
0105537057530
[Former: 1299/2537] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing,
distributing and re-exporting various
kinds of diamonds
and gemstones for
jewelry trading and
productions, as well
as exporting of
diamonds, gems and local
jewelry products. |
|
|
|
|
No. of Employees : |
2 |
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 & 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
KINJAL STAR CO., LTD.
SUMMARY
BUSINESS ADDRESS : 36TH FLOOR, JEWELRY TRADE
CENTER,
919/435
SILOM ROAD, SILOM, BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE : [66] 2630-2208,
081 638-8107, 081
922-2849, 2233-6021
FAX : [66] 2630-2300
E-MAIL ADDRESS : pravinpatel70@yahoo.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1994
REGISTRATION NO. : 0105537057530 [Former: 1299/2537]
TAX ID NO. : 3011420805
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
PATEL PRAVINBHAI BALUBHAI,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 2
LINES OF BUSINESS : DIAMONDS AND
GEMSTONES
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 May
18, 1994 as
a private limited
company under the registered name
KINJAL STAR CO., LTD.,
by Thai and Indian
groups, with the
objective to be
engaged in jewelry
trading. It currently
employs 2 staff.
The subject’s registered address
was initially located
at Room 2812,
28th Floor, Jewelry
Trade Center, 919/361
Silom Rd., Silom, Bangrak,
Bangkok 10500.
In 2017, its
registered address was
relocated to 36th Floor,
Jewelry Trade Center,
919/435 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Patel Pravinbhai Balubhai |
|
Indian |
48 |
|
Mr. Bipinkumar Gopalbhai Borad |
|
Indian |
36 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Patel Pravinbhai
Balubhai is the
Managing Director.
He is Indian
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
various kinds of
diamonds and gemstones
for jewelry trading
and productions, as
well as exporting
of diamonds, gems
and local jewelry products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India, Republic of
China and Hong Kong.
SALES
Diamonds and gemstones
are sold locally
by wholesale to
traders and manufacturers.
EXPORT
The products are
exported and re-exported
to India, Hong Kong,
Japan, Singapore and
Republic of China.
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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject employs
2 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject was formed in 1994
as an importer and
distributor of diamonds and gemstones,
as well as
exporter of Thai
jewelry. Subject reported a
slow business in
2016 with a
decrease in sales
revenues, but an increase
in net profit
comparing to the
previous year.
Generally, the subject is
doing a moderate
business.
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
follows:
Bht. 4,000,000
on December 8,
1995
Bht. 6,000,000
on June 11,
2015
The latest capital
was increased to
Bht. 6,000,000 divided
into 60,000 shares
of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2016]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Patel Pravinbhai Balubhai Nationality: Indian Address : India |
29,400 |
49.00 |
|
Mr. Sombat Jaiharn Nationality: Thai Address : 80/149
Serithai Rd., Klongkum,
Buengkum, Bangkok |
7,650 |
12.75 |
|
Mr. Manus Liabsaeng Nationality: Thai Address : 7
Moo 6, T. Donyor,
A. Muang, Nakornnayok |
7,650 |
12.75 |
|
Ms. Zorba Boonmalert Nationality: Thai Address : 45
Moo 5, T. Yothaka,
A. Bangnampriew, Chachoengsao |
7,650 |
12.75 |
|
Ms. Suree Thuanjeen Nationality: Thai Address : 33
Moo 2, T. Klongdarn, A. Bangbor,
Samutprakarn |
7,650 |
12.75 |
Total Shareholders : 5
Share Structure [as
at April 30,
2016]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
30,600 |
51.00 |
|
Foreign - Indian |
1 |
29,400 |
49.00 |
|
Total |
5 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sirirat Ardam No. 8820
BALANCE SHEET
[BAHT]
The 2017 financial
statement has not
been submitted to
the Commercial Registration
Department, during investigation.
The latest financial
figures published for December
31, 2016, 2015
and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
30,249.48 |
147,763.81 |
479,339.09 |
|
Trade Accounts and
Other Receivable |
41,225,048.95 |
80,129,438.52 |
54,755,586.17 |
|
Inventories |
44,746,833.16 |
16,249,181.05 |
9,255,611.35 |
|
Total Current
Assets |
86,002,131.59 |
96,526,383.38 |
64,490,536.61 |
|
|
|
|
|
|
Property, Plant and Equipment |
82,258.98 |
8,566.45 |
40,074.73 |
|
Other Non-current Assets |
6,000.00 |
6,000.00 |
6,000.00 |
|
Total Assets
|
86,090,390.57 |
96,540,949.83 |
64,536,611.34 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial
Institution |
22,251,664.90 |
7,339,684.91 |
7,955,799.55 |
|
Trade Accounts and Other Payables |
52,973,692.93 |
82,056,030.03 |
49,201,544.35 |
|
Short-term Loans |
2,730,000.00 |
- |
- |
|
Accrued Income Tax |
- |
- |
34,474.55 |
|
Total Current
Liabilities |
77,955,357.83 |
89,395,714.94 |
57,191,818.45 |
|
Total Liabilities |
77,955,357.83 |
89,395,714.94 |
57,191,818.45 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized and
issued share capital 60,000 shares
in 2016 and
2015 |
6,000,000.00 |
6,000,000.00 |
|
|
40,000 shares
in 2014 |
|
|
4,000,000.00 |
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated [Deficit] |
2,135,032.74 |
1,145,234.89 |
3,344,792.89 |
|
Total
Shareholders' Equity |
8,135,032.74 |
7,145,234.89 |
7,344,792.89 |
|
Total Liabilities
and Shareholders' Equity |
86,090,390.57 |
96,540,949.83 |
64,536,611.34 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
96,696,806.94 |
134,084,357.74 |
102,715,377.12 |
|
Other Income |
30.36 |
- |
987,585.66 |
|
Total Revenues
|
96,696,837.30 |
134,084,357.74 |
103,702,962.78 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
90,132,112.97 |
128,466,763.10 |
99,701,849.66 |
|
Selling Expenses |
453,815.70 |
426,988.08 |
548,966.84 |
|
Administrative Expenses |
4,215,825.03 |
3,114,503.82 |
2,053,033.00 |
|
Other Expenses |
4,747.72 |
3,720,641.79 |
- |
|
Total Expenses |
94,806,501.42 |
135,728,896.79 |
102,303,849.50 |
|
Profit / [Loss] before Financial
Costs and Income
Tax |
1,890,335.88 |
[1,644,539.05] |
1,399,113.28 |
|
Financial Costs |
[900,538.03] |
[555,018.95] |
[549,852.95] |
|
Profit /[Loss] before Income
Tax |
989,797.85 |
[2,199,558.00] |
849,260.33 |
|
Income Tax |
- |
- |
[259,474.55] |
|
Net Profit /[Loss] |
989,797.85 |
[2,199,558.00] |
589,785.78 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.10 |
1.08 |
1.13 |
|
QUICK RATIO |
TIMES |
0.53 |
0.90 |
0.97 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,175.52 |
15,652.27 |
2,563.10 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.12 |
1.39 |
1.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
181.21 |
46.17 |
33.88 |
|
INVENTORY TURNOVER |
TIMES |
2.01 |
7.91 |
10.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
155.61 |
218.13 |
194.57 |
|
RECEIVABLES TURNOVER |
TIMES |
2.35 |
1.67 |
1.88 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
214.52 |
233.14 |
180.12 |
|
CASH CONVERSION CYCLE |
DAYS |
122.30 |
31.16 |
48.34 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.21 |
95.81 |
97.07 |
|
SELLING & ADMINISTRATION |
% |
4.83 |
2.64 |
2.53 |
|
INTEREST |
% |
0.93 |
0.41 |
0.54 |
|
GROSS PROFIT MARGIN |
% |
6.79 |
4.19 |
3.90 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.95 |
(1.23) |
1.36 |
|
NET PROFIT MARGIN |
% |
1.02 |
(1.64) |
0.57 |
|
RETURN ON EQUITY |
% |
12.17 |
(30.78) |
8.03 |
|
RETURN ON ASSET |
% |
1.15 |
(2.28) |
0.91 |
|
EARNING PER SHARE |
BAHT |
16.50 |
(36.66) |
14.74 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.93 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
9.58 |
12.51 |
7.79 |
|
TIME INTEREST EARNED |
TIMES |
2.10 |
(2.96) |
2.54 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(27.88) |
30.54 |
|
|
OPERATING PROFIT |
% |
(214.95) |
(217.54) |
|
|
NET PROFIT |
% |
145.00 |
(472.94) |
|
|
FIXED ASSETS |
% |
860.25 |
(78.62) |
|
|
TOTAL ASSETS |
% |
(10.83) |
49.59 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -27.88%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.79 |
Satisfactory |
Industrial Average |
12.73 |
|
Net Profit Margin |
1.02 |
Acceptable |
Industrial Average |
2.45 |
|
Return on Assets |
1.15 |
Acceptable |
Industrial Average |
3.03 |
|
Return on Equity |
12.17 |
Impressive |
Industrial Average |
7.53 |
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 6.79%. 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 1.02%.
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 1.15%.
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 12.17%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.10 |
Satisfactory |
Industrial Average |
2.20 |
|
Quick Ratio |
0.53 |
|
|
|
|
Cash Conversion Cycle |
122.30 |
|
|
|
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 1.1 times in 2016, increase from 1.08 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 0.53 times in 2016,
decrease from 0.9 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 123 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
9.58 |
Risky |
Industrial Average |
0.98 |
|
Times Interest Earned |
2.10 |
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 2.1 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 0.91 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,175.52 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.12 |
Satisfactory |
Industrial Average |
1.24 |
|
Inventory Conversion Period |
181.21 |
|
|
|
|
Inventory Turnover |
2.01 |
Impressive |
Industrial Average |
1.58 |
|
Receivables Conversion Period |
155.61 |
|
|
|
|
Receivables Turnover |
2.35 |
Satisfactory |
Industrial Average |
3.00 |
|
Payables Conversion Period |
214.52 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.35 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 46 days at the
end of 2015 to 181 days at the end of 2016. This represents a negative trend.
And Inventory turnover has decreased from 7.91 times in year 2015 to 2.01 times
in year 2016.
The company's Total Asset Turnover is calculated as 1.12 times and 1.39
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 68.09 |
|
|
1 |
INR 91.41 |
|
Euro |
1 |
INR 79.93 |
|
Thai Baht |
1 |
INR 2.11 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
TPT |
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.