MIRA
INFORM REPORT
|
Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
D. N. GEMS CO., LTD. |
|
|
|
|
Registered Office : |
Room
603, 6th Floor,
K. B. S. Building, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
1992 |
|
|
|
|
Com. Reg. No.: |
0105535119881 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in diamonds
trading business, including
importing, distributing and
exporting for jewelry
products. |
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 |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
name
D. N. GEMS CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
603, 6th FLOOR,
K. B. S. BUILDING,
30-38
BANGRAK,
TELEPHONE : [66] 2237-3919
FAX : [66] 2237-3921
E-MAIL ADDRESS : dngems@samart.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1992
REGISTRATION NO. : 0105535119881 [Former : 11657/2535]
CAPITAL
REGISTERED : BHT.
12,000,000
CAPITAL
PAID-UP : BHT.
12,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SHACHIN SURESH
MEHTA, INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 12
LINES OF
BUSINESS : DIAMONDS
TRADING COMPANY
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on August 26,
1992 as a
private limited company under
the name style
D. N. GEMS CO.,
LTD., by Thai
and Singaporean groups, with
the business objective
to operate in
diamonds trading business.
It currently employs
12 staff.
The
subject’s registered address
is 30-38 Mahaesak
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ketan Suresh Mehta |
|
Indian |
37 |
|
Mr. Shachin Suresh Mehta |
|
Indian |
41 |
|
Mr. Samir Mehta |
|
Indian |
44 |
|
Mr. Dilip Mehta |
|
Indian |
60 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Shachin Suresh
Mehta is the
Managing Director.
He is Indian
nationality with the
age of 41 years
old.
Mr. Ketan Suresh
Mehta is the Assistant Managing
Director.
He is Indian
nationality with the
age of 37
years old.
BUSINESS OPERATIONS
The subject is
engaged in diamonds
trading business, including
importing, distributing and
exporting for jewelry
products.
PURCHASE
The products are
purchased from suppliers
both in domestic
and overseas mainly
India.
SALES
80% of the
products is sold
locally to wholesalers
and manufacturers, and
the remaining 20%
is exported to Hong
Kong and Dubai.
REVENUE
In
2006, the subject’s
revenue was increased
around 5-10% from
the previous year.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor 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 for
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
Kasikornbank Public Co.,
Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs 12
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
has a good
business both importing
and exporting of
diamond and jewelry
products. Last year
demand of diamond
was spurred in
local market from
strong consumption by manufacturer and
end-user, as well
as exporting of
jewelry products to main
market like USA
were also strong.
However, the current
economic slowdown has
resulted to decline
consumption of diamond
and jewelry products.
Moreover, starting July
2007 the main
Thai jewelry export
market like USA
has sharply declined due
to Thai jewelry
was cut GSP privilege, this
would affect to
Thai products from losing
its market share
to other rivals.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 100,000
shares of Bht.
100 each.
On
October 17, 1995,
the capital was
increased to Bht. 12,000,000 divided
into 120,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 28,
2006]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Dianco International Pte.
Ltd. Nationality: Singaporean Address : |
58,800 |
49.00 |
|
Ms.
Rungrueng Polsinghayothin Nationality: Thai Address :
Bangplad, |
11,200 |
9.35 |
|
Mrs.
Anchalee Mahabanphot Nationality: Thai Address : 49/22
Soi Suparuam, Bangsue,
|
10,000 |
8.33 |
|
Ms. Pornrat Rerkngam Nationality: Thai Address : 48
Moo 2, Pakthor,
Ratchaburi |
10,000 |
8.33 |
|
Mrs.
Chaveewan Peamsa-ard Nationality: Thai Address : 31/1
Moo 7, Samrong,
Klongkuen, Chachoengsao |
10,000 |
8.33 |
|
Ms. Somsri Kamkliang Nationality: Thai Address : 34/101
Moo 5, Prachatipat, Thanyaburi,
Pathumthani |
10,000 |
8.33 |
|
Ms. Mayuree Choosuebsai Nationality: Thai Address : 603/111
Moo 10, Bangkae,
|
10,000 |
8.33 |
Total Shareholders
7
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Surapol Prathaksitorn No.
2590
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2005 & 2004
were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in hand
& at Bank
[note 1] |
31,177,124.65 |
1,835,794.03 |
|
Short-term Investment |
80,000,000.00 |
60,236,162.47 |
|
Trade Accts. Receivable |
198,400,856.90 |
202,496,287.58 |
|
Inventories |
63,586,348.20 |
97,263,141.03 |
|
Other Current Assets
[note 2]
|
2,408,566.38 |
2,214,136.56 |
|
|
|
|
|
Total Current
Assets |
375,572,896.13 |
364,045,521.67 |
|
Fixed Assets [note 3] |
1,342,394.14 |
1,645,956.18 |
|
Deposit |
140,600.00 |
140,600.00 |
|
Total Assets
|
377,055,890.27 |
365,832,077.85 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Bank |
75,000,000.00 |
94,794,622.21 |
|
Trade Accts. Payable |
282,785,149.66 |
229,739,554.28 |
|
Other Current Liabilities [note 4] |
2,473,847.96 |
5,965,941.90 |
|
|
|
|
|
Total Current
Liabilities |
360,258,997.62 |
330,500,118.39 |
|
Total Liabilities |
360,258,997.62 |
330,500,118.39 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
|
|
|
|
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning Appropriated for Statutory
Reserve |
1,200,000.00 |
- |
|
Unappropriated |
3,596,892.65 |
23,331,959.46 |
|
Total
Shareholders' Equity |
16,796,892.65 |
35,331,959.46 |
|
Total
Liabilities & Shareholders' Equity |
377,055,890.27 |
365,832,077.85 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
543,382,350.60 |
531,371,850.87 |
|
Gain on Exchange
Rate |
- |
3,232,342.37 |
|
Interest Income |
619,806.14 |
288,325.51 |
|
Other Income |
57,665.06 |
- |
|
Total Revenues
|
544,059,821.80 |
534,892,518.75 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
516,654,473.31 |
514,445,209.58 |
|
Selling & Administrative Expenses |
21,297,416.46 |
8,140,429.28 |
|
Total Expenses |
537,951,889.77 |
522,585,638.86 |
|
|
|
|
|
Profit / [Loss] before
Interest Expenses &
Income Tax |
6,107,932.03 |
12,306,879.89 |
|
Interest Expenses |
[2,422,512.23] |
[1,435,465.46] |
|
Income Tax |
[1,220,486.61] |
[3,345,645.94] |
|
|
|
|
|
Net Profit / [Loss] |
2,464,933.19 |
7,525,768.49 |
FINANCIAL NOTE
NOTE 1
Cash in Hand & at
Bank
|
|
2005 |
2004 |
|
|
|
|
|
Cash in hand |
168,313.15 |
224,945.46 |
|
Cash at bank-Current account |
31,008,811.50 |
1,610,848.57 |
|
Total
|
31,177,124.65 |
1,835,794.03 |
NOTE 2
Other Current Assets
|
|
2005 |
2004 |
|
|
|
|
|
Deposit |
170,130.00 |
- |
|
Prepaid Expenses |
18,280.69 |
369,623.28 |
|
Prepaid Withholding Income
Tax |
2,105,087.20 |
1,803,051.87 |
|
Deferred Interest |
115,068.49 |
41,461.41 |
|
Total
|
2,408,566.38 |
2,214,136.56 |
NOTE 3
Fixed Assets
|
|
2005 |
|
|
|
|
Office Automation |
1,963,083.02 |
|
Office Furniture |
99,781.98 |
|
Equipment |
233,069.33 |
|
Vehicle |
2,197,571.00 |
|
Total |
4,493,505.33 |
|
Less: Depreciation |
[3,151,111.19] |
|
Total
|
1,342,394.14 |
NOTE 4
Other Current Liabilities
|
|
2005 |
2004 |
|
|
|
|
|
Accrued Expenses |
759,950.17 |
2,478,830.75 |
|
Accrued Income Tax |
1,220,486.61 |
3,345,645.94 |
|
Revenue Department Payable |
492,555.18 |
140,609.21 |
|
Other Payable |
856.00 |
856.00 |
|
Total
|
2,473,847.96 |
5,965,941.90 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Net Sales |
2.26 |
|
|
Operating Profit |
[51.47] |
|
|
Net Profit |
[67.25] |
|
|
Fixed Assets |
[18.44] |
|
|
Total Assets |
3.07 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
95.08 |
96.81 |
|
Operating Profit Margin |
1.12 |
2.32 |
|
S & A
Expenses |
3.92 |
1.53 |
|
Interest Paid |
0.45 |
0.27 |
|
Other Revenues |
0.12 |
0.66 |
|
Net Profit Margin |
0.45 |
1.42 |
|
Earning Per Shares |
20.54 |
62.71 |
|
No. of Shares |
120,000 |
120,000 |
Net Sales was
increased by 2.26%,
Operating Profit was
decreased by 51.47%,
Net Profit was
decreased by 67.25%,
Fixed Assets was
decreased by 18.44%,
Total Assets was
increased by 3.07%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 96.81%
to 95.08%, Operating
Profit Margin was
decreased from 2.32%
to 1.12%, S
& A Expenses
was increased from
1.53% to 3.92%,
Interest Paid was increased
from 0.27% to
0.45%, Other Revenues
was decreased from
0.66% to 0.12%,
Net Profit Margin
was decreased from
1.42% to 0.45%.
Earning Per Shares
was decreased from
62.71 baht per
share to 20.54
baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.04 |
1.10 |
|
Quick-Assets Ratio |
0.86 |
0.80 |
Current Ratio was
decreased from 1.10
to 1.04, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was increased from
0.80 to 0.86,
capacity to pay Short Term
Loan was not
good, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
21.45 |
9.35 |
|
Times Interest Earned |
2.52 |
8.57 |
D/E Ratio was
increased from 9.35
to 21.45, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high,
Times Interest Earned
was decreased from
8.57 to 2.52,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
404.79 |
322.83 |
|
Total Assets Turnover |
1.44 |
1.45 |
|
Return on Assets |
0.65 |
2.06 |
|
Return on Equity |
14.67 |
21.30 |
|
Day's Payable |
187.35 |
155.65 |
|
Day’s Inventories |
42.13 |
65.89 |
|
Day’s Receivables |
131.44 |
137.19 |
Fixed Assets Turnover
was increased from
322.83 times to
404.79 times, Total
Assets Turnover was decreased from
1.45 times to
1.44 times, show
the company could
use Fixed Assets
so efficiently, Return
on Assets was
decreased from 2.06
to 0.65, Return
on Equity was
decreased from 21.30
to 14.67, capacity
to use Assets
to make profit
was good.
Day's Payable was
increased from 156
days to 188
days, while Day’s
Inventories was decreased
from 66 days
to 43 days,
and Day’s Receivables
was decreased from
138 days to
132 days.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)