MIRA INFORM
REPORT
|
Report Date : |
14.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
GEM CREATIONS LTD. |
|
|
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Registered Office : |
299 Moo 4, Ladkrabang Industrial Estate, Chalongkrung Road, Lamplatiw, Ladkrabang, Bangkok 10520 |
|
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|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.01.1984 |
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|
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Com. Reg. No.: |
0105527002732 |
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|
Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Manufacturer and Exporter of Gold and Platium Jewelry Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No Complaints |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
GEM
CREATIONS LTD.
SUMMARY
BUSINESS ADDRESS : 299
MOO 4, LADKRABANG
INDUSTRIAL ESTATE,
CHALONGKRUNG ROAD,
LAMPLATIW,
LADKRABANG, BANGKOK
10520
TELEPHONE : [66] 2739-7000
FAX :
[66] 2739-7023
E-MAIL
ADDRESS : info@gemcreations.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1984
REGISTRATION
NO. : 0105527002732
CAPITAL REGISTERED : BHT. 105,000,000
CAPITAL PAID-UP : BHT.
105,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SURIN LATTHAPANICH,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : GOLD
AND PLATIUM JEWELRY
PRODUCTS
MANUFACTURER 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 January 18, 1984
as a private
limited company under the
registered name GEM CREATIONS LTD. by
Thai groups. Its business
objective is to manufacture
various styles of gold & platinum jewelry
products for exports. It
currently employs approximate 300 staff.
The
subject’s registered address
is 299 Ladkrabang
Industrial Estate, Chalongkrung
Rd., Lamplatiw, Ladkrabang,
Bangkok 10520, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Surin Latthapanich |
[x] |
Thai |
63 |
|
Mrs. Kannika Latthapanich |
[x] |
Thai |
59 |
|
Mr. Chotiwat Latthapanich |
[-] |
Thai |
35 |
|
Mr. Veeradorn Latthapanich |
[-] |
Thai |
31 |
|
Mrs. Somsuk Vimalapirat |
|
Thai |
55 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or
both of the
mentioned directors [-]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Surin Latthapanich is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Mrs. Kannika Latthapanich is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 59
years old.
Mr. Chotiwat Latthapanich is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 35
years old.
Mr. Veeradorn Latthapanich is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject
is engaged in
design, manufacturing and
exporting various kinds
of gold and platinum
jewelry, including bracelet,
earring, necklace, ring and
etc.
PURCHASE
Raw
materials and components
are purchased from
suppliers both domestic
and overseas, mainly
India, U.S.A., and
European countries.
EXPORT
100% of the
products is exported
to U.S.A., Hong
Kong, Japan, Europe
and Middle East
countries.
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
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
The
subject was not
disclosed its banker’s
name.
EMPLOYMENT
The
subject employs approximately 300 staff.
LOCATION DETAILS
The
premise is owned
for administrative office and
factory on 6,000 square
meters of land,
at the heading
address. Premise is
located in industrial
area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
300,000.
COMMENT
The
subject was formed as
a manufacturer, distributor
and exporter of gold
and platinum jewelry products.
Since 2010 the
market of jewelry products has
gradually improved and
continue growing strong
from resume consumption
in world market.
Subject posted strong sales
in 2010 and
expected continue expanding
in this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 6,000,000 divided into 60,000
shares of Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 8,000,000
on November
1, 1985
Bht. 30,000,000
on June
14, 1989
Bht. 80,000,000
on December
8, 2003
Bht. 105,000,000
on October
17, 2006
The
latest registered capital
was increased to Bht. 105 million, divided
into 1,050,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Surin Latthapanich Nationality: Thai Address : 24
Soi Navathani 9,
Serithai Rd.,
Kannayao, Bangkok |
272,450 |
25.95 |
|
Mrs. Kannika Latthapanich Nationality: Thai Address : 24
Soi Navathani 9,
Serithai Rd.,
Kannayao, Bangkok |
272,386 |
25.94 |
|
Mr. Veeradorn Latthapanich Nationality: Thai Address : 24
Soi Navathani 9,
Serithai Rd.,
Kannayao, Bangkok |
252,500 |
24.05 |
|
Mr. Chotiwat Latthapanich Nationality: Thai Address : 24
Soi Navathani 9,
Serithai Rd.,
Kannayao, Bangkok |
252,500 |
24.05 |
|
Mrs. Somsuk Vimalapirat Nationality: Thai Address : 158
Pattanakarn 53 Rd.,
Suanluang, Bangkok |
100 |
|
|
Mr. Virach Pongchababnapa Nationality: Thai Address : 124/24
Moo 3, Mared,
Koh Samui, Suratthani |
32 |
=0.01 |
|
Ms. Benjamas Pongchababnapa Nationality: Thai Address : 158
Pattanakarn 53 Rd.,
Suanluang, Bangkok |
32 |
|
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Navee Patisampitawong
No. 2552
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
1,836,959.87 |
3,314,886.26 |
|
Short-term Investment |
661,872.75 |
1,193,417.75 |
|
Trade Accounts Receivable |
94,032,320.83 |
101,114,877.76 |
|
Inventories |
167,909,687.91 |
115,786,296.75 |
|
Refundable Value Added Tax |
206,472.70 |
77,466.63 |
|
Other Current Assets |
3,744,688.38 |
1,436,348.38 |
|
|
|
|
|
Total Current Assets
|
268,392,002.44 |
222,923,293.53 |
|
Investment in Associated |
5,605,376.16 |
- |
|
Other Long-term Investment |
1,036,630.00 |
702,100.00 |
|
Fixed Assets |
174,381,118.99 |
181,684,712.27 |
|
Land Non-operation |
25,511,050.00 |
25,511,050.00 |
|
Intangible Assets |
2,232,139.09 |
1,518,477.09 |
|
Other Assets |
6,554,264.57 |
6,531,437.19 |
|
Total Assets |
483,712,581.25 |
438,871,070.08 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institute |
160,397,416.73 |
136,515,588.23 |
|
Trade Accounts Payable |
26,254,179.65 |
22,266,441.38 |
|
Current Portion of Long-term Liabilities: |
|
|
|
Financial Lease Contract
Liabilities |
1,748,342.17 |
1,423,877.13 |
|
Other Long-term Loans |
22,932,000.00 |
7,812,000.00 |
|
Short-term Loan from Person
Related |
46,683,142.31 |
8,689,098.30 |
|
Accrued Expenses |
5,491,931.81 |
6,878,023.50 |
|
Guarantee Payable |
26,516,404.91 |
44,334,920.65 |
|
Other Current Liabilities |
8,561,378.86 |
5,644,028.21 |
|
|
|
|
|
Total Current Liabilities |
298,584,796.44 |
233,563,977.40 |
|
Financial Lease Contract Liabilities,
net |
4,388,258.05 |
2,441,505.12 |
|
Other Long-term Loan |
69,696,569.15 |
91,900,975.62 |
|
Total Liabilities |
372,669,623.64 |
327,906,458.14 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,050,000 shares |
105,000,000.00 |
105,000,000.00 |
|
|
|
|
|
Capital Paid |
105,000,000.00 |
105,000,000.00 |
|
Unrealized Gain on Investment
in Marketable Securities |
880,730.00 |
546,200.00 |
|
Statutory Reserve |
1,209,000.00 |
1,209,000.00 |
|
Retained Earning-
Unappropriated |
3,953,227.61 |
4,209,411.94 |
|
Total Shareholders' Equity |
111,042,957.61 |
110,964,611.94 |
|
Total Liabilities & Shareholders' Equity |
483,712,581.25 |
438,871,070.08 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
273,411,213.14 |
207,581,232.36 |
|
Other Income |
16,740,774.16 |
20,749,454.14 |
|
Total Revenues |
290,151,987.30 |
228,330,686.50 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
220,383,258.70 |
163,568,546.26 |
|
Selling Expenses |
10,963,722.36 |
14,792,402.35 |
|
Administrative Expenses |
44,076,456.29 |
41,980,271.45 |
|
Total Expenses |
275,423,437.35 |
220,341,220.06 |
|
|
|
|
|
Profit of Loss
from Investment in
Associated |
14,728,549.95 |
7,989,466.44 |
|
Share of Loss
from Investment |
[274,523.84] |
- |
|
Profit / [Loss] before Financial Cost & Income Tax |
14,454,026.11 |
7,989,466.44 |
|
Financial Cost |
[13,767,599.47] |
[12,559,934.98] |
|
Profit / [Loss] before Income
Tax |
686,426.64 |
[4,570,468.54] |
|
Income Tax |
[942,610.97] |
[690,125.13] |
|
|
|
|
|
Net Profit / [Loss] |
[256,184.33] |
[5,260,593.67] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.90 |
0.95 |
|
QUICK RATIO |
TIMES |
0.32 |
0.45 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.57 |
1.14 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.57 |
0.47 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
278.09 |
258.37 |
|
INVENTORY TURNOVER |
TIMES |
1.31 |
1.41 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
125.53 |
177.80 |
|
RECEIVABLES TURNOVER |
TIMES |
2.91 |
2.05 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
43.48 |
49.69 |
|
CASH CONVERSION CYCLE |
DAYS |
360.14 |
386.48 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
80.61 |
78.80 |
|
SELLING & ADMINISTRATION |
% |
20.13 |
27.35 |
|
INTEREST |
% |
5.04 |
6.05 |
|
GROSS PROFIT MARGIN |
% |
25.52 |
31.20 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.39 |
3.85 |
|
NET PROFIT MARGIN |
% |
(0.09) |
(2.53) |
|
RETURN ON EQUITY |
% |
(0.23) |
(4.74) |
|
RETURN ON ASSET |
% |
(0.05) |
(1.20) |
|
EARNING PER SHARE |
BAHT |
(0.24) |
(5.01) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.77 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.36 |
2.96 |
|
TIME INTEREST EARNED |
TIMES |
1.07 |
0.64 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
31.71 |
|
|
OPERATING PROFIT |
% |
84.35 |
|
|
NET PROFIT |
% |
95.13 |
|
|
FIXED ASSETS |
% |
(4.02) |
|
|
TOTAL ASSETS |
% |
10.22 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.52 |
Impressive |
Industrial Average |
13.23 |
|
Net Profit Margin |
(0.09) |
Deteriorated |
Industrial Average |
0.24 |
|
Return on Assets |
(0.05) |
Deteriorated |
Industrial Average |
0.32 |
|
Return on Equity |
(0.23) |
Deteriorated |
Industrial Average |
0.71 |
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 25.52%. When compared with the industry
average, the ratio of the company was higher. This 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 -0.09%.
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 -0.05%.
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 -0.23%.
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 |
0.90 |
Risky |
Industrial Average |
1.61 |
|
Quick Ratio |
0.32 |
|
|
|
|
Cash Conversion Cycle |
360.14 |
|
|
|
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 0.9 times in 2010, decrease from 0.95 times, then the company may have
problems meeting its short-term obligations. 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 0.32 times in 2010,
decrease from 0.45 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 361 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.77 |
Risky |
Industrial Average |
0.53 |
|
Debt to Equity Ratio |
3.36 |
Risky |
Industrial Average |
1.32 |
|
Times Interest Earned |
1.07 |
Impressive |
Industrial Average |
0.59 |
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 1.07 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 0.77 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 |
1.57 |
Deteriorated |
Industrial Average |
5.41 |
|
Total Assets Turnover |
0.57 |
Deteriorated |
Industrial Average |
1.52 |
|
Inventory Conversion Period |
278.09 |
|
|
|
|
Inventory Turnover |
1.31 |
Deteriorated |
Industrial Average |
2.65 |
|
Receivables Conversion Period |
125.53 |
|
|
|
|
Receivables Turnover |
2.91 |
Acceptable |
Industrial Average |
3.92 |
|
Payables Conversion Period |
43.48 |
|
|
|
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.53 |
|
|
1 |
Rs.71.80 |
|
Euro |
1 |
Rs.63.15 |
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.