MIRA INFORM REPORT
|
Report Date : |
18.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
SMART ARTS JEWELLERY
LIMITED |
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|
|
Formerly Known As : |
J . P . S . CREATION LTD. |
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Registered Office : |
22nd Floor, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
26.07.2000 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Manufacturer, Importer
and Exporter of Diamond and
Jewelry |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company
name
SMART ARTS
JEWELLERY LIMITED
[FORMER : J .
P . S . CREATION LTD.]
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR, BANGKOK
GEMS & JEWELLERY TOWER, 322/58 SURAWONG
ROAD, SURIYAWONGSE,
BANGRAK,
TELEPHONE : [66] 2238-1286-8
FAX :
[66] 2238-1289-90
E-MAIL
ADDRESS : info@smartartsjewellery.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0105543069838
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRADEEP RAGHUNATH
LODHA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 18
LINES
OF BUSINESS : DIAMOND AND JEWELRY
MANUFACTURER, IMPORTER
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 26,
2000 as a
private limited company under
the name style “J. P. S. CREATION LTD.”,
by Thai and Indian
groups, in order
to distribute diamond
and jewelry products to domestic
and international market.
It currently employs
18 staff.
On
May 15, 2007
the subject’s name was
changed to SMART
ARTS JEWELLERY LIMITED.
The subject’s registered address is 22nd Flr.,
Bangkok Gems & Jewellery Tower, 322/58 Surawong Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
Mr. Pradeep
Raghunath Lodha
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Pradeep Raghunath Lodha
is the Managing
Director.
He is Indian
nationality with the
age of 47
years old.
Mr. Manish Saihaal is
the Marketing Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject’s main
business is engaged
in manufacturing service
of diamonds and
jewelry products for
exports, as well
as importing and
distributing of fine diamond
and jewelry, gold jewelry,
silver jewelry and
gemstones. Its products
include, ring, ear
ring, bracelet, pendent and
etc.
PURCHASE
Raw material for
the production and
the jewelry products are
purchased from both
local and overseas
suppliers in India,
Belgium, Hong Kong
and Russia.
SALES
The products are
sold locally by
wholesale to local
traders and manufacturers.
EXPORT
The jewelry products are
also exported to
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 &
D/A.
Exports are against
T/T.
BANKING
The banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 18
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.
Factory
is located at
79/341 Sathupradit Rd.,
Chongnonsi, Yannawa, Bangkok
10120.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
500,000.
COMMENT
Consumption of diamond and gemstone for
jewelry industry has grown steadily
in relation to
the local economy,
as well as export
markets are performing
better than the previous year.
Gem and jewelry exports has been
improved due to demand
from international markets is
growing. The subject’s
business is in
progress.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht.
100 each.
The
capital were increased
and decreased later
as following:
Increased was :
Bht. 17,000,000 on
June 22, 2001
Decreased was :
Bht. 6,000,000 on
March 6, 2002
Increased was :
Bht. 10,000,000 on
February 22, 2005
Increased was :
Bht. 15,000,000 on
December 7, 2005
Increased was
: Bht. 20,000,000
on September 27,
2006
The
latest registered capital
was increased to Bht. 20,000,000 divided
into 200,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa Narular Nationality: Thai Address : 32/31-32
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, |
98,980 |
49.49 |
|
Mr. Pradeep Raghunath
Lodha Nationality: Indian Address :
Bangrak, |
60,000 |
30.00 |
|
Ms. Niramala Zashiti Nationality: Indian Address :
Banglampulang, Klongsan, |
24,000 |
12.00 |
|
Mr. Punit Kantadia Nationality: Indian Address : |
13,500 |
6.75 |
|
Mr. Nikorn Kijvanich Nationality: Thai Address : 69-71
Rama 4 Rd.,
Pomprab, |
3,000 |
1.50 |
|
Mrs. Sukaesi Loda Nationality: Indian Address :
Banglampulang, Klongsan, |
499 |
0.24 |
|
Ms. Araya Thirachavalit Nationality: Thai Address : 510
Charansanitwong 66/1 Rd.,
Bangplad, |
20 |
0.02 |
|
Ms. Mahee Loda Nationality: Thai Address :
Banglampulang, Klongsan, |
1 |
|
Total Shareholders : 8
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Nongnuch Ouitrakul No.
2241
Note
The
2010 financial statement
was not available
during investigation.
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 &
2008 were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
752,475.31 |
351,372.69 |
|
Trade Accounts Receivable |
35,645,284.79 |
31,515,010.20 |
|
Inventories |
46,935,829.90 |
29,578,533.36 |
|
Other Current Assets
|
2,774,457.68 |
204,479.71 |
|
Total Current
Assets |
86,108,047.68 |
61,649,395.96 |
|
|
|
|
|
Fixed Assets |
6,277,700.62 |
7,625,685.59 |
|
Intangible Assets |
340,976.78 |
320,776.70 |
|
Other Assets |
14,200.00 |
14,200.00 |
|
Total Assets
|
92,740,925.08 |
69,610,058.25 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2009 |
2008 |
|
|
|
|
|
Short Term Loan
from Financial Institution |
56,429,386.63 |
19,605,036.16 |
|
Trade Accounts Payable |
9,711,274.13 |
24,650,241.89 |
|
Other Current Liabilities |
1,632,075.99 |
1,500,419.71 |
|
Total Current
Liabilities |
67,772,736.75 |
45,755,697.76 |
|
Total Liabilities |
67,772,736.75 |
45,755,697.76 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized &
issued share capital 200,000
shares |
20,000,000.00 |
20,000,000.00 |
|
Capital Paid |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning -
Unappropriated |
4,968,188.33 |
3,854,360.49 |
|
Total
Shareholders' Equity |
24,968,188.33 |
23,854,360.49 |
|
Total
Liabilities & Shareholders' Equity |
92,740,925.08 |
69,610,058.25 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2009 |
2008 |
|
|
|
|
|
Sales Income |
66,575,770.53 |
59,772,605.82 |
|
Other Income |
185,241.50 |
172,938.46 |
|
Total Revenues
|
66,761,012.03 |
59,945,544.28 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
59,351,976.95 |
52,267,607.37 |
|
Selling Expenses |
2,068,338.20 |
2,175,747.30 |
|
Administrative Expenses |
2,333,392.83 |
2,605,088.54 |
|
Loss on Exchange Rate |
30,219.17 |
713,123.93 |
|
Total Expenses |
63,783,927.15 |
57,761,567.14 |
|
Profit Before Financial Costs & Income Tax |
2,977,084.88 |
2,183,977.14 |
|
Financial Costs |
[1,383,186.46] |
[1,128,452.73] |
|
Profit Before Income Tax |
1,593,898.42 |
1,055,524.41 |
|
Income Tax |
[480,070.58] |
[380,921.90] |
|
Net Profit / [Loss] |
1,113,827.84 |
674,602.51 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.27 |
1.35 |
|
QUICK RATIO |
TIMES |
0.54 |
0.70 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
10.61 |
7.84 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.72 |
0.86 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
288.64 |
206.56 |
|
INVENTORY TURNOVER |
TIMES |
1.26 |
1.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
195.42 |
192.45 |
|
RECEIVABLES TURNOVER |
TIMES |
1.87 |
1.90 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
59.72 |
172.14 |
|
CASH CONVERSION CYCLE |
DAYS |
424.35 |
226.86 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.15 |
87.44 |
|
SELLING & ADMINISTRATION |
% |
6.61 |
8.00 |
|
INTEREST |
% |
2.08 |
1.89 |
|
GROSS PROFIT MARGIN |
% |
11.13 |
12.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.47 |
3.65 |
|
NET PROFIT MARGIN |
% |
1.67 |
1.13 |
|
RETURN ON EQUITY |
% |
4.46 |
2.83 |
|
RETURN ON ASSET |
% |
1.20 |
0.97 |
|
EARNING PER SHARE |
BAHT |
5.57 |
3.37 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.66 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.71 |
1.92 |
|
TIME INTEREST EARNED |
TIMES |
2.15 |
1.94 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
11.38 |
|
|
OPERATING PROFIT |
% |
36.31 |
|
|
NET PROFIT |
% |
65.11 |
|
|
FIXED ASSETS |
% |
(17.68) |
|
|
TOTAL ASSETS |
% |
33.23 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.13 |
Impressive |
Industrial Average |
10.61 |
|
Net Profit Margin |
1.67 |
Impressive |
Industrial Average |
0.44 |
|
Return on Assets |
1.20 |
Impressive |
Industrial Average |
0.62 |
|
Return on Equity |
4.46 |
Impressive |
Industrial Average |
1.61 |
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 11.13%. 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 1.67% 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 is 1.2%,
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 is 4.46%, 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 RATIO
|
Current Ratio |
1.27 |
Satisfactory |
Industrial Average |
1.53 |
|
Quick Ratio |
0.54 |
|
|
|
|
Cash Conversion Cycle |
424.35 |
|
|
|
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 1.27 times in 2009, decrease from 1.35 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 0.54 times in 2009,
decrease from 0.7 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 get from payment terms from its creditors. It
meant the company could survive when no cash inflow was received from sale for
425 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Impressive |
Industrial Average |
0.55 |
|
Debt to Equity Ratio |
2.71 |
Risky |
Industrial Average |
1.51 |
|
Times Interest Earned |
2.15 |
Impressive |
Industrial Average |
0.53 |
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 lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.16 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 0.73 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
10.61 |
Impressive |
Industrial Average |
6.54 |
|
Total Assets Turnover |
0.72 |
Deteriorated |
Industrial Average |
1.58 |
|
Inventory Conversion Period |
288.64 |
|
|
|
|
Inventory Turnover |
1.26 |
Deteriorated |
Industrial Average |
3.01 |
|
Receivables Conversion Period |
195.42 |
|
|
|
|
Receivables Turnover |
1.87 |
Acceptable |
Industrial Average |
3.43 |
|
Payables Conversion Period |
59.72 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.52 |
|
|
1 |
Rs.72.72 |
|
Euro |
1 |
Rs.64.41 |
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.