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MIRA INFORM REPORT
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Report No. : |
512262 |
|
Report Date : |
31.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
PRECITONE CO. LTD. |
|
|
|
|
Registered Office : |
Room No. 404, 4th Floor,
Sithikorn Building, 202 Mahesak
Soi 2, Mahesak Road, Suriyawongse, Bangrak, Bangkok
10500, |
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|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
12.12.2003 |
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Com. Reg. No.: |
0105546148828 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is
engaged in importing,
distributing and re-exporting various
kinds of gems,
precious and semi-precious stones,
as well as
exporting of the
local products for
jewelry and watch
production industry. |
|
|
|
|
No. of Employees : |
1 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
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|
Payment Behaviour : |
No Complaints |
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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
|
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
PRECITONE CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
NO. 404, 4th FLOOR,
SITHIKORN BUILDING,
202 MAHESAK
SOI 2, MAHESAK
ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2237-9173
FAX :
[66] 2237-9174
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546148828
TAX
ID NO. : 3031169487
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ANURAG SHAH,
GERMAN
MANAGING DIRECTOR
NO.
OF STAFF : 1
LINES
OF BUSINESS : GEMS,
PRECIOUS AND SEMI-PRECIOUS
STONES
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 December 12, 2003
as a private
limited company under
the registered name
PRECITONE CO., LTD., by
Thai and Foreign
groups, with the
business objective to
import, distribute and export
various kinds of
gems, precious and
semi-precious stones. It
currently employs 1
staff.
The
subject’s registered address
is Room No.
404, 4th Floor,
Sithikorn Building,
202
Mahesak Soi 2,
Mahesak Road, Suriyawongse, Bangrak,
Bangkok 10500, and
this
is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anurag Shah |
|
German |
45 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Anurag Shah
is the Managing
Director.
He is German
nationality with the
age of 45
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting various kinds
of gems, precious
and semi-precious stones,
as well as
exporting of the
local products for jewelry and
watch production industry.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas mainly in
India.
SALES [LOCAL]
The products are
sold locally to
manufacturers and end-users.
EXPORT
The products are
exported and re-exported
to 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
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
Kasikornbank
Public Company Limited
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime commercial area.
Note:
Refer
to your given
the subject’s address
at “Room No.
404, 4th Floor,
Sithikorn Building, 202, 208 Mahesak
Soi 2, Mahesak Road,
Suriyawongse, Bangrak, Bangkok
10500”, please be
informed that the
correct registered and
operation address is “Room No.
404, 4th Floor,
Sithikorn Building, 202
Mahesak Soi 2,
Mahesak Road, Suriyawongse,
Bangrak, Bangkok 10500”.
COMMENT
The
subject’s operating performance
in 2017 has seen
an improvement with
an increase in
both sales or
service income and
net profit comparing
to the previous year,
caused by improvement
and recovery in some jewelry
manufacturers which generated
more consumption of
the products. Generally, the subject
operates a moderate
business and remains
profitable.
FINANCIAL INFORMATION
The
capital was registered at Bht. 2,000,000 divided into
20,000 shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2018]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Anurag Shah Nationality: German Address : Idar-Oberstein, Germany
|
7,800 |
39.00 |
|
Ms. Kwannapa Banjerd Nationality: Thai Address : 285
Moo 4, T. Srimahaphote, A. Srimahaphote, Prachinburi |
5,200 |
26.00 |
|
Mr. Veerachai Kaenseela Nationality: Thai Address : 11
Moo 3, T. Gudpladuk, A.
Muang,
Amnartcharoen, |
5,000 |
25.00 |
|
Mrs. Deepa Shah Nationality: Indian Address : Idar-Oberstein, Germany
|
2,000 |
10.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2018]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
10,200 |
51.00 |
|
Foreign |
2 |
9,800 |
49.00 |
|
Total |
4 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Pol. Maj. Sommai Limwattanaporn No.
9392
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2017, 2016 and
2015 were:
ASSETS
|
Current Assets |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Cash and Cash Equivalents |
8,604,431.81 |
12,439,930.24 |
1,845,638.50 |
|
Trade Accounts and
Other Receivable |
5,535,307.97 |
5,417,237.61 |
19,321,847.66 |
|
Inventories |
22,057,308.32 |
12,644,570.10 |
10,644,589.71 |
|
Total Current Assets
|
36,197,048.10 |
30,501,737.95 |
31,812,075.87 |
|
|
|
|
|
|
Property, Plant and
Equipment |
790,717.95 |
1,085,489.82 |
1,381,351.69 |
|
Total Assets |
36,987,766.05 |
31,587,227.77 |
33,193,427.56 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Trade Accounts and Other
Payable |
3,414,251.54 |
1,414,667.97 |
3,524,283.96 |
|
Current Portion of Long-term Liabilities |
- |
126,116.00 |
126,116.00 |
|
Short-term Loans |
21,980,000.00 |
18,630,000.00 |
19,190,000.00 |
|
Other Current Liabilities |
1,991,841.06 |
1,929,992.12 |
663,930.00 |
|
Total Current Liabilities |
27,386,092.60 |
22,100,776.09 |
23,504,329.96 |
|
|
|
|
|
|
Other Non-current Liabilities |
- |
433,486.74 |
816,372.88 |
|
Total Liabilities |
27,386,092.60 |
22,534,262.83 |
24,320,702.84 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital
20,000 shares
|
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning-Unappropriated [Deficit] |
7,601,673.45 |
7,052,964.94 |
6,872,724.72 |
|
Total Shareholders’ Equity |
9,601,673.45 |
9,052,964.94 |
8,872,724.72 |
|
Total Liabilities and Shareholders’ Equity |
36,987,766.05 |
31,587,227.77 |
33,193,427.56 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Sales or Services Income |
15,048,131.31 |
10,330,678.58 |
18,915,910.72 |
|
Other Income |
352,180.15 |
745,443.48 |
1,398,754.45 |
|
Total Revenues |
15,400,311.46 |
11,076,122.06 |
20,314,665.17 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
11,938,516.90 |
8,453,105.08 |
16,781,137.16 |
|
Selling Expenses |
1,271,575.51 |
1,126,937.49 |
724,683.30 |
|
Administrative Expenses |
1,595,858.00 |
1,315,839.27 |
1,118,780.04 |
|
Total Expenses |
14,805,950.41 |
10,895,881.84 |
18,624,600.50 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
594,361.05 |
180,240.22 |
1,690,064.67 |
|
Financial Cost |
- |
- |
- |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
594,361.05 |
180,240.00 |
1,690,064.67 |
|
Income Tax |
[45,652.54] |
- |
[139,652.27] |
|
Net Profit / [Loss] |
548,708.51 |
180,240.22 |
1,550,412.40 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.32 |
1.38 |
1.35 |
|
QUICK RATIO |
TIMES |
0.52 |
0.81 |
0.90 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
19.03 |
9.52 |
13.69 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.41 |
0.33 |
0.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
674.36 |
545.98 |
231.53 |
|
INVENTORY TURNOVER |
TIMES |
0.54 |
0.67 |
1.58 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
134.26 |
191.40 |
372.83 |
|
RECEIVABLES TURNOVER |
TIMES |
2.72 |
1.91 |
0.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
104.38 |
61.08 |
76.66 |
|
CASH CONVERSION CYCLE |
DAYS |
704.24 |
676.30 |
527.70 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.34 |
81.83 |
88.71 |
|
SELLING & ADMINISTRATION |
% |
19.06 |
23.65 |
9.75 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
23.00 |
25.39 |
18.68 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.95 |
1.74 |
8.93 |
|
NET PROFIT MARGIN |
% |
3.65 |
1.74 |
8.20 |
|
RETURN ON EQUITY |
% |
5.71 |
1.99 |
17.47 |
|
RETURN ON ASSET |
% |
1.48 |
0.57 |
4.67 |
|
EARNING PER SHARE |
BAHT |
27.44 |
9.01 |
77.52 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.71 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.85 |
2.49 |
2.74 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
45.66 |
(45.39) |
|
|
OPERATING PROFIT |
% |
229.76 |
(89.34) |
|
|
NET PROFIT |
% |
204.43 |
(88.37) |
|
|
FIXED ASSETS |
% |
(27.16) |
(21.42) |
|
|
TOTAL ASSETS |
% |
17.10 |
(4.84) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 45.66%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.00 |
Impressive |
Industrial
Average |
0.62 |
|
Net Profit Margin |
3.65 |
Impressive |
Industrial
Average |
0.06 |
|
Return on Assets |
1.48 |
Satisfactory |
Industrial
Average |
1.54 |
|
Return on Equity |
5.71 |
Impressive |
Industrial
Average |
4.84 |
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. Gross Profit Margin is 23%. 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. Net Profit Margin ratio is 3.65%,
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. When compared with the
industry average, it was lower, the company's figure is 1.48%.
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 5.71%, 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 |
1.32 |
Satisfactory |
Industrial
Average |
1.79 |
|
Quick Ratio |
0.52 |
|
|
|
|
Cash Conversion Cycle |
704.24 |
|
|
|
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 1.32 times in 2017, decrease from 1.38 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 0.52 times in 2017,
decrease from 0.81 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 705 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
2.85 |
Risky |
Industrial
Average |
1.79 |
|
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 0.74 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 |
19.03 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.41 |
Deteriorated |
Industrial
Average |
23.79 |
|
Inventory Conversion Period |
674.36 |
|
|
|
|
Inventory Turnover |
0.54 |
Deteriorated |
Industrial
Average |
54.65 |
|
Receivables Conversion Period |
134.26 |
|
|
|
|
Receivables Turnover |
2.72 |
Deteriorated |
Industrial
Average |
58.96 |
|
Payables Conversion Period |
104.38 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.72 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 546 days at the
end of 2016 to 674 days at the end of 2017. This represents a negative trend.
And Inventory turnover has decreased from 0.67 times in year 2016 to 0.54 times
in year 2017.
The company's Total Asset Turnover is calculated as 0.41 times and 0.33
times in 2017 and 2016 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.63 |
|
|
1 |
INR 89.70 |
|
Euro |
1 |
INR 78.20 |
|
THB |
1 |
INR 2.11 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
POJ |
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.