MIRA
INFORM REPORT
|
Report Date : |
13.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
RCAN JEWELLERY
CO., LTD. |
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Registered Office : |
2210/30 |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
31.01.2008 |
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Com. Reg. No.: |
0105551013111 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importer and Distributor of Diamonds and
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 |
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Payment Behaviour : |
Unknown |
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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) |
|
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
RCAN
JEWELLERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS :
CHONGNONSI, YANNAWA,
TELEPHONE : [66] 2678-0050-1
FAX :
[66] 2678-0052
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0105551013111
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIT RASIKLAL
GANDHI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on January 31,
2008 as a
private limited company under
the name style
RCAN JEWELLERY CO.,
LTD., by Thai and
Indian groups, in order
to operate a
jewelry trading business.
It currently employs
5 staff.
The
subject’s registered address
was initially located
at Bangkok Gems
and Jewelry Building,
322/15 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
On
February 25, 2009, the subject’s registered
address was relocated
to 2210/30 Narathiwas
Ratchanakarin Rd., Chongnonsi,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nirav Rasiklal Gandhi |
[x] |
Indian |
33 |
|
Mr. Amit Rasiklal Gandhi |
[x] |
Indian |
36 |
|
Mr. Jayesh Gunwant Mehta |
|
Indian |
37 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Amit Rasiklal Gandhi
is the Managing
Director.
He is Indian
nationality with the
age of 36
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and
exporting of diamonds,
precious stones and jewelry
products.
PURCHASE
The
products are purchased
from suppliers and
agents in both
domestic and overseas,
mainly India, Belgium
and Hong Kong.
SALES
The products are sold
to customers both local
and overseas, mainly
in India, Japan,
Hong Kong and
Singapore.
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
T/T.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The subject employs
5 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
200,000.
COMMENT
The
subject was formed in 2008 is
an importer and
distributor of diamond and
jewelry products. Subject
reported moderate sales
in its first year operation, as
well as disclose
rising sales in
2009. Market outlook
and its business
trend are promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 40,000 shares
of Bht. 100
each with fully
paid.
On
June 10, 2009,
the capital was
increased to Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yannawa, |
30,000 |
30.00 |
|
Ms. Bang-orn Nuathong Nationality: Thai Address : 9
Moo 13, Saklek,
Pichit |
12,750 |
12.75 |
|
Mr. Kriengsak Thabthim Nationality: Thai Address : 20
Moo 13, Saklek,
Pichit |
12,750 |
12.75 |
|
Mr. Suthas Ard-udom Nationality: Thai Address : 24
Moo 13, Saklek,
Pichit |
12,750 |
12.75 |
|
Ms. Somporng Promvichai Nationality: Thai Address : 189/6
Moo 3, Jor Por Ror, Kraburi,
Ranong |
12,750 |
12.75 |
|
Mr. Nirav Rasiklal Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yannawa, |
11,000 |
11.00 |
|
Mr. Jayesh Gunwant Mehta Nationality: Indian Address :
Yannawa, |
8,000 |
8.00 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Premwadee Forngsiri No.
9758
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 & 2008
were
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
505,201.06 |
1,253,747.83 |
|
Trade Accounts Receivable |
25,349,125.89 |
15,537,258.35 |
|
Short-term Loan to
Related Person |
- |
7,000,000.00 |
|
Inventories |
27,654,821.43 |
8,217,038.69 |
|
Other Current Assets
|
1,151,134.55 |
500,625.84 |
|
|
|
|
|
Total Current Assets
|
54,660,282.93 |
32,508,670.71 |
|
Fixed Assets |
1,584,362.56 |
561,787.04 |
|
Other Assets |
210,000.00 |
65,302.73 |
|
Total Assets |
56,454,645.49 |
33,135,760.48 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Trade Accounts Payable |
9,630,184.18 |
13,730,113.24 |
|
Other Current Liabilities |
34,619,484.34 |
17,359,250.93 |
|
|
|
|
|
Total Current Liabilities |
44,249,668.52 |
31,089,364.17 |
|
Total Liabilities |
44,249,668.52 |
31,089,364.17 |
|
|
|
|
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Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
100,000 & 40,000 shares
in 2009 & 2008 respectively |
10,000,000.00 |
4,000,000.00 |
|
|
|
|
|
Capital Paid |
10,000,000.00 |
1,000,000.00 |
|
Retained Earning -
Unappropriated |
2,204,976.97 |
1,046,396.31 |
|
Total Shareholders' Equity |
12,204,976.97 |
2,046,396.31 |
|
Total Liabilities & Shareholders' Equity |
56,454,645.49 |
33,135,760.48 |
PROFIT & LOSS ACCOUNT
|
Sale |
2009 |
2008 |
|
|
|
|
|
Sales |
73,134,690.60 |
33,454,094.61 |
|
Other Income |
1,672,774.01 |
473,683.43 |
|
Total Sales |
74,807,464.61 |
33,927,778.04 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
66,155,539.52 |
28,476,049.28 |
|
Selling Expenses |
604,927.87 |
574,700.00 |
|
Administrative Expenses |
6,169,104.42 |
3,638,879.38 |
|
Total Expenses |
72,929,571.81 |
32,689,628.66 |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
1,877,892.80 |
1,238,149.38 |
|
Income Tax |
[719,312.14] |
[191,753.07] |
|
|
|
|
|
Net Profit / [Loss] |
1,158,580.66 |
1,046,396.31 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.05 |
|
QUICK RATIO |
TIMES |
0.58 |
0.77 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
46.16 |
59.55 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.30 |
1.01 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
152.58 |
105.32 |
|
INVENTORY TURNOVER |
TIMES |
2.39 |
3.47 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
126.51 |
169.52 |
|
RECEIVABLES TURNOVER |
TIMES |
2.89 |
2.15 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
53.13 |
175.99 |
|
CASH CONVERSION CYCLE |
DAYS |
225.96 |
98.85 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
90.46 |
85.12 |
|
SELLING & ADMINISTRATION |
% |
9.26 |
12.60 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.83 |
16.30 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.57 |
3.70 |
|
NET PROFIT MARGIN |
% |
1.58 |
3.13 |
|
RETURN ON EQUITY |
% |
9.49 |
51.13 |
|
RETURN ON ASSET |
% |
2.05 |
3.16 |
|
EARNING PER SHARE |
BAHT |
11.59 |
104.64 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.94 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.63 |
15.19 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
118.61 |
|
|
OPERATING PROFIT |
% |
51.67 |
|
|
NET PROFIT |
% |
10.72 |
|
|
FIXED ASSETS |
% |
182.02 |
|
|
TOTAL ASSETS |
% |
70.37 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.83 |
Satisfactory |
Industrial Average |
13.43 |
|
Net Profit Margin |
1.58 |
Impressive |
Industrial Average |
0.49 |
|
Return on Assets |
2.05 |
Impressive |
Industrial Average |
0.80 |
|
Return on Equity |
9.49 |
Impressive |
Industrial Average |
2.09 |
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. The company's figure is 11.83%. When
compared with the industry average, the ratio of the company was lower.
This indicated that company was
originated from the problems with control over its costs.
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 1.58% 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 2.05%, 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
9.49%, 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 |
1.24 |
Acceptable |
Industrial Average |
1.66 |
|
Quick Ratio |
0.58 |
|
|
|
|
Cash Conversion Cycle |
225.96 |
|
|
|
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 1.24 times in 2009, increase from 1.05 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 0.58 times in 2009,
decrease from 0.77 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 226 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Impressive |
Industrial Average |
0.52 |
|
Debt to Equity Ratio |
3.63 |
Risky |
Industrial Average |
1.30 |
|
Times Interest Earned |
- |
|
Industrial Average |
1.01 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.78 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 |
46.16 |
Impressive |
Industrial Average |
5.82 |
|
Total Assets Turnover |
1.30 |
Satisfactory |
Industrial Average |
1.61 |
|
Inventory Conversion Period |
152.58 |
|
|
|
|
Inventory Turnover |
2.39 |
Satisfactory |
Industrial Average |
2.78 |
|
Receivables Conversion Period |
126.51 |
|
|
|
|
Receivables Turnover |
2.89 |
Acceptable |
Industrial Average |
4.16 |
|
Payables Conversion Period |
53.13 |
|
|
|
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.44.79 |
|
|
1 |
Rs.73.19 |
|
Euro |
1 |
Rs.63.59 |
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.