MIRA INFORM REPORT
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Report Date : |
26.03.2011 |
IDENTIFICATION DETAILS
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Name : |
REAL
THAI GEMS LIMITED |
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Registered Office : |
31/3 Trok Vaiti,
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
11.06.1986 |
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Com. Reg. No.: |
0105529019748 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importer, Distributor and
Exporter of diamond and gemstones |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
b1 |
b1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
REAL
THAI GEMS LIMITED
SUMMARY
BUSINESS
ADDRESS : 31/3
TROK VAITI,
BANGRAK,
TELEPHONE : [66]
2234-2468, 2238-3188, 2238-3351,
2235-2861
FAX :
[66] 2236-2650,
2235-3675
E-MAIL
ADDRESS : realthai@ksc.th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1986
REGISTRATION
NO. : 0105529019748 [Former: 1974/2529]
CAPITAL
REGISTERED : BHT.
11,000,000
CAPITAL
PAID-UP : BHT.
11,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
ASHOK GUPTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 10
LINES
OF BUSINESS : DIAMOND
AND GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : FAIR
FOR
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on June 11, 1986
as a private
limited company under
the name style REAL THAI
GEMS LIMITED by Thai and Indian groups, in
order to distribute
precious stones to
both domestic and overseas markets. It currently
employs approximately 10
staff.
The
subject’s registered address
is 31/3 Trok
Vaiti, Silom Road,
Silom, Bangrak, Bangkok
10500, and this
is the company’s
current operation address.
THE BOARD OF DIRECTORS
Mr. Ashok Kumar
Gupta
AUTHORIZED PERSON
The above director
signs on behalf of the subject
with the company’s
affixed.
MANAGEMENT
Mr. Ashok Kumar
Gupta is the
Managing Director.
He is
Indian nationality with
the age of
44 years old.
BUSINESS OPERATIONS
The subject is engaged in
importing, distributing and exporting of diamonds and precious stone,
such as emerald, ruby,
sapphire and others,
for jewelry productions,
as well as
jewelry products.
PURCHASE
The products are purchased
from both local
and overseas suppliers in India,
Hong Kong, Japan
and Republic of
China.
MAJOR SUPPLIERS
-
Gupta Jewel Corporation
:
- Thai Fine Gems
& Jewelry Ltd. :
SALES
[LOCAL]
The products are
sold locally to
jewelry manufacturers.
EXPORT
[COUNTRIES]
The subject also exports
Thai gemstones to
MAJOR CUSTOMER
GRK Gems Inc. :
SUBSIDIARIES & AFFILIATED COMPANY
The subject is
not found to
have subsidiaries 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
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
T/T.
Exports are against
T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Silom Branch :
EMPLOYMENT
The subject employs
approximately 10 office and
sales staff.
LOCATION DETAILS
The premise is owned
for administrative office at
the heading address. Premise is
located in a
prime commercial area.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 100,000.
COMMENT
The subject’s sales in
2009 were slow down
comparing to the
same period of
the previous year,
caused by slow
demand of the
products from both
local and overseas
markets. However, the
subject reported a
slightly improvement in
sales sale in
2010. In the first
quarter of 2011,
the subject reports
an expansion in
sales with more
orders from both local
and overseas customers.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each.
The capital was
increased later as
followings:
Bht.
5,000,000 on August
19, 1995
Bht.
10,000,000 on February
10, 1998
Bht.
11,000,000 on August
27, 1998
The latest
registered capital was
increased to Bht. 11,000,000 divided
into 110,000 shares of
Bht. 100 each
with fully paid.
MAIN SHAREHOLDERS : [as at April
30, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
Mr. Ashok
Kumar Gupta
Nationality: Indian Address : 31/3
Trok Vaiti, |
50,000 |
45.46 |
Ms. Atchong
Gupta
Nationality: Thai Address : 31/3
Trok Vaiti, |
20,000 |
18.18 |
Mr. Anurak
Gupta
Nationality: Thai Address : 31/3
Trok Vaiti, |
20,000 |
18.18 |
Ms. Anicha
Gupta
Nationality: Thai Address : 31/3
Trok Vaiti, |
20,000 |
18.18 |
Total Shareholders : 4
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Suchart Srimunjantha
No. 3549
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2009 & 2008
were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash in Hand
& at Bank |
1,686,155.92 |
6,709,333.08 |
|
Trade Accounts Receivable |
28,774,742.26 |
31,846,164.70 |
|
Inventories |
27,173,410.63 |
30,343,427.06 |
|
|
|
|
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Total Current Assets
|
57,634,308.81 |
68,898,924.84 |
|
Fixed Assets |
23,242,770.00 |
23,242,770.00 |
|
Other Assets |
274,855.73 |
2,381,912.45 |
|
Total Assets |
81,151,934.54 |
94,523,607.29 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Trade Accounts Payable |
15,010,279.44 |
30,026,595.61 |
|
Accrued Expenses |
371,960.09 |
341,188.76 |
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|
|
|
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Total Current Liabilities |
15,382,239.53 |
30,367,784.37 |
|
Loan from Bank |
17,632,952.21 |
15,418,232.99 |
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Total Liabilities |
33,015,191.74 |
45,786,017.36 |
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Shareholders' Equity |
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Share capital : Baht 100
par value authorized, issued
and fully paid
share capital 110,000
shares |
11,000,000.00 |
11,000,000.00 |
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|
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Capital Paid |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning -
Unappropriated |
37,136,742.80 |
37,737,589.93 |
|
Total Shareholders' Equity |
48,136,742.80 |
48,737,589.93 |
|
Total Liabilities & Shareholders' Equity |
81,151,934.54 |
94,523,607.29 |
PROFIT & LOSS ACCOUNT
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|
2009 |
2008 |
|
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|
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Sales |
61,456,333.12 |
113,985,357.01 |
|
Other Income |
431,316.94 |
1,227,340.74 |
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Total Sales |
61,887,650.06 |
115,212,697.75 |
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Expenses |
|
|
|
|
|
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Cost of Goods
Sold |
54,203,253.89 |
103,178,750.92 |
|
Selling Expenses |
1,368,762.84 |
2,650,628.62 |
|
Administrative Expenses |
5,247,110.42 |
5,814,634.49 |
|
Total Expenses |
60,819,127.15 |
111,644,014.03 |
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|
|
|
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Profit / [Loss] before Interest
Expenses & Income Tax |
1,068,522.91 |
3,568,683.72 |
|
Interest Expenses |
[1,026,719.22] |
[705,165.64] |
|
Profit / [Loss] before Income
Tax |
41,803.69 |
2,863,518.08 |
|
Income Tax |
[642,650.82] |
[859,055.42] |
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|
|
|
|
Net Profit / [Loss] |
[600,847.13] |
2,004,462.66 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.75 |
2.27 |
|
QUICK RATIO |
TIMES |
1.98 |
1.27 |
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ACTIVITY RATIO |
|
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FIXED ASSETS TURNOVER |
TIMES |
2.64 |
4.90 |
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TOTAL ASSETS TURNOVER |
TIMES |
0.76 |
1.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
182.98 |
107.34 |
|
INVENTORY TURNOVER |
TIMES |
1.99 |
3.40 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
170.90 |
101.98 |
|
RECEIVABLES TURNOVER |
TIMES |
2.14 |
3.58 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
101.08 |
106.22 |
|
CASH CONVERSION CYCLE |
DAYS |
252.80 |
103.10 |
|
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PROFITABILITY
RATIO |
|
|
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COST OF GOODS SOLD |
% |
88.20 |
90.52 |
|
SELLING & ADMINISTRATION |
% |
10.77 |
7.43 |
|
INTEREST |
% |
1.67 |
0.62 |
|
GROSS PROFIT MARGIN |
% |
12.50 |
10.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.74 |
3.13 |
|
NET PROFIT MARGIN |
% |
(0.98) |
1.76 |
|
RETURN ON EQUITY |
% |
(1.25) |
4.11 |
|
RETURN ON ASSET |
% |
(0.74) |
2.12 |
|
EARNING PER SHARE |
BAHT |
(5.46) |
18.22 |
|
|
|
|
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LEVERAGE RATIO |
|
|
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DEBT RATIO |
TIMES |
0.41 |
0.48 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.69 |
0.94 |
|
TIME INTEREST EARNED |
TIMES |
1.04 |
5.06 |
|
|
|
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|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(46.08) |
|
|
OPERATING PROFIT |
% |
(70.06) |
|
|
NET PROFIT |
% |
(129.98) |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
(14.15) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
12.50 |
Impressive |
Industrial Average |
10.62 |
|
Net Profit Margin |
(0.98) |
Deteriorated |
Industrial Average |
(0.91) |
|
Return on Assets |
(0.74) |
Deteriorated |
Industrial Average |
(1.16) |
|
Return on Equity |
(1.25) |
Deteriorated |
Industrial Average |
(2.99) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 12.5%. 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 -0.98%.
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. Return on Assets ratio is
-0.74%, 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 ratio
is -1.25%, 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 |
3.75 |
Impressive |
Industrial Average |
1.85 |
|
Quick Ratio |
1.98 |
|
|
|
|
Cash Conversion Cycle |
252.80 |
|
|
|
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 3.75 times in 2009, increase from 2.27 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 1.98 times in 2009,
increase from 1.27 times, although excluding inventory so the company still
have good short-term financial strength.
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 253 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.41 |
Impressive |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
0.69 |
Impressive |
Industrial Average |
1.52 |
|
Times Interest Earned |
1.04 |
Impressive |
Industrial Average |
(0.13) |
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 stronger equity
position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.05 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 0.41 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.64 |
Deteriorated |
Industrial Average |
7.78 |
|
Total Assets Turnover |
0.76 |
Acceptable |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
182.98 |
|
|
|
|
Inventory Turnover |
1.99 |
Impressive |
Industrial Average |
1.91 |
|
Receivables Conversion Period |
170.90 |
|
|
|
|
Receivables Turnover |
2.14 |
Satisfactory |
Industrial Average |
2.78 |
|
Payables Conversion Period |
101.08 |
|
|
|
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.44.65 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
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 |
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.