MIRA INFORM REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
SIGNATURE
IMPEX CO., LTD. |
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Formerly Known As : |
BHARGAV GEMS CO., LTD. |
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Registered Office : |
Gemopolis Industrial Estate, 3rd Floor, 40/2 Soi 31, Sukhapibal 2 Road, Dokmai, Pravet, Bangkok 10250 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
08.07.1996 |
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Com. Reg. No.: |
0105539075349 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader 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 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
SIGNATURE IMPEX
CO., LTD.
[FORMER :
BHARGAV GEMS CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : GEMOPOLIS INDUSTRIAL
ESTATE,
3rd FLOOR,
40/2 SOI 31,
SUKHAPIBAL 2 ROAD,
DOKMAI, PRAVET,
BANGKOK 10250
TELEPHONE : [66] 2727-0297
FAX :
[66] 2727-0298
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539075349
CAPITAL REGISTERED : BHT.
32,000,000
CAPITAL PAID-UP : BHT.
32,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NILESH KUMAR BHOLABHAI
PATEL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 18
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
TRADER
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 July 8,
1996 as a
private limited company
under the registered
name BHARGAV GEMS
CO., LTD., by Indian
groups, in order
to operate as a
jewelry trader.
On
May 27, 2005,
subject’s name was changed to
SIGNATURE IMPEX CO.,
LTD. It currently
employs 18 staff.
The subject’s registered
address was initially
located at 7/6 Soi
Suwansawat, Rama 4 Rd., Thungmahamek,
Sathorn, Bangkok 10120.
On
May 9, 2004,
subject’s registered address
was changed to
1535/108 Chan Rd.,
Thungwatdon, Sathorn, Bangkok
10120.
On
June 6, 2007,
the subject’s registered
address was relocated to 40/2
Soi 31, Sukhapibal
2 Rd., Dokmai,
Pravet, Bangkok 10250,
and this is the
subject’s current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Kumar
Bholabhai Patel |
|
Indian |
32 |
|
Mrs. Vaishali Nilesh
Patel |
|
Indian |
31 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Kumar
Bholabhai Patel is
the Managing Director.
He is Indian
nationality with the
age of 32 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing diamonds
and gemstones for jewelry
production. The subject is also
exporting precious, semi-precious
stones, fashion accessories,
diamond & gemstones,
jewelry and silverware
products to worldwide
market.
The subject hires
local manufacturers for
the production of
silverware and jewelry
products.
IMPORT
Diamonds and gemstones are
imported from India,
Sri Lanka, Pakistan,
Belgium, Russia South
Africa and Hong
Kong.
EXPORT
80% of
the products is
exported to Germany, France,
Belgium, Canada, Switzerland, Japan, United Kingdom, Italy, Hong Kong, Singapore, Taiwan, Republic of
China, Australia and
United States of
America.
SALES
20%
of the products
is also sold
by wholesale to
domestic market.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is not
found to have any
subsidiary 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 L/C
at sight or
T/T on negotiated
term.
Exports
are against T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333
Silom Rd., Silom, Bangrak,
Bangkok 10500]
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
commercial/residential area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$ 500,000.
COMMENT
The subject’s
business in the previous
year was brisk due to
consumption improvement of diamond and gemstones from jewelry
industry had grown in
line with positive
local consumption and
exports. However, in
the second half
of 2011 the
industry has been revised downward
trend in view of slowdown in
European market and flood
impact in domestic.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 4,000,000 divided
into 40,000 shares of Bht.
100 each.
The
capital was increased
later as follows:
Bht. 6,000,000
on December 13,
2001
Bht. 20,000,000
on December 19,
2002
Bht. 32,000,000
on April 11,
2006
The
latest registered capital
was increased to
Bht. 32,000,000 divided into
320,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nilesh Kumar
Bholabhai Patel Nationality: Indian Address : 12 Nanee
Nakar, A.K. Rd., Suraj,
India |
195,200 |
61.00 |
|
Mrs. Jayaben Bholabhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mrs. Vaishali Nilesh
Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mr. Bholabhai Bagerbhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
Total Shareholder : 4
Share
Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign [Indian] |
4 |
320,000 |
100.00 |
|
Total |
4 |
320,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Sivachai Komethongstit No.
6314
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
227,941.29 |
37,165.41 |
|
Trade Accounts Receivable |
18,551,716.34 |
17,349,502.37 |
|
Inventories |
150,519,273.92 |
91,673,951.86 |
|
Other Current Assets |
1,224,916.30 |
1,341,420.34 |
|
Total Current Assets
|
170,523,847.85 |
110,402,039.98 |
|
|
|
|
|
Fixed Assets |
22,562,611.31 |
24,175,293.06 |
|
Intangible Assets |
362,463.15 |
326,974.32 |
|
Total Assets |
193,448,922.31 |
134,904,307.36 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft |
- |
354,309.33 |
|
Trade Accounts Payable
& Postdated Cheque |
144,999,007.32 |
86,133,268.74 |
|
Current Portion of Long-term
Liabilities |
2,502,754.02 |
2,589,212.49 |
|
Short-term Loan from Related Person |
6,344.00 |
- |
|
Accrued Expenses |
3,309,673.11 |
383,311.33 |
|
Other Current Liabilities |
64,800.00 |
34,300.00 |
|
Total Current Liabilities |
150,882,578.45 |
89,494,401.89 |
|
|
|
|
|
Long-term Loan from
Related Person |
- |
1,720,000.00 |
|
Long-term Loan from Financial
Institution |
6,881,813.66 |
9,333,230.84 |
|
Other Liabilities |
52,500.00 |
52,500.00 |
|
Total Liabilities |
157,816,892.11 |
100,600,132.73 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 320,000 shares
|
32,000,000.00 |
32,000,000.00 |
|
Capital Paid |
32,000,000.00 |
32,000,000.00 |
|
Retained Earning -
Unappropriated |
3,632,030.20 |
2,304,174.63 |
|
Total Shareholders' Equity |
35,632,030.20 |
34,304,174.63 |
|
Total Liabilities & Shareholders' Equity |
193,448,922.31 |
134,904,307.36 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
483,619,407.40 |
300,975,247.13 |
|
Other Income |
10,399,521.50 |
1,072,909.70 |
|
Total Sales |
494,018,928.90 |
302,048,156.83 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
474,523,467.04 |
291,913,572.63 |
|
Selling Expenses |
9,191,869.94 |
1,650,962.38 |
|
Administrative Expenses |
7,642,315.09 |
5,972,000.98 |
|
Total Expenses |
491,357,652.07 |
299,536,535.99 |
|
Profit Before Finance Expenses
& Income Tax |
2,661,276.83 |
2,511,620.84 |
|
Finance Expenses |
[742,157.04] |
[1,451,813.17] |
|
Profit Before Income Tax |
1,919,119.79 |
1,059,807.67 |
|
Income Tax |
[591,264.22] |
[320,667.40] |
|
Net Profit / [Loss] |
1,327,855.57 |
739,140.27 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.13 |
1.23 |
|
QUICK RATIO |
TIMES |
0.12 |
0.19 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
21.43 |
12.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.50 |
2.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
115.78 |
114.63 |
|
INVENTORY TURNOVER |
TIMES |
3.15 |
3.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
14.00 |
21.04 |
|
RECEIVABLES TURNOVER |
TIMES |
26.07 |
17.35 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
111.53 |
107.70 |
|
CASH CONVERSION CYCLE |
DAYS |
18.25 |
27.97 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
98.12 |
96.99 |
|
SELLING & ADMINISTRATION |
% |
3.48 |
2.53 |
|
INTEREST |
% |
0.15 |
0.48 |
|
GROSS PROFIT MARGIN |
% |
4.03 |
3.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.55 |
0.83 |
|
NET PROFIT MARGIN |
% |
0.27 |
0.25 |
|
RETURN ON EQUITY |
% |
3.73 |
2.15 |
|
RETURN ON ASSET |
% |
0.69 |
0.55 |
|
EARNING PER SHARE |
BAHT |
4.15 |
2.31 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.43 |
2.93 |
|
TIME INTEREST EARNED |
TIMES |
3.59 |
1.73 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
60.68 |
|
|
OPERATING PROFIT |
% |
5.96 |
|
|
NET PROFIT |
% |
79.65 |
|
|
FIXED ASSETS |
% |
(6.67) |
|
|
TOTAL ASSETS |
% |
43.40 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
4.03 |
Deteriorated |
Industrial
Average |
14.06 |
|
Net Profit Margin |
0.27 |
Impressive |
Industrial
Average |
(0.58) |
|
Return on Assets |
0.69 |
Impressive |
Industrial
Average |
(0.85) |
|
Return on Equity |
3.73 |
Impressive |
Industrial
Average |
(2.25) |
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 4.03%. 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. Net Profit Margin ratio is 0.27%
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 ratio is
0.69%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profits 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 3.73%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 |
1.13 |
Deteriorated |
Industrial
Average |
2.53 |
|
Quick Ratio |
0.12 |
|
|
|
|
Cash Conversion Cycle |
18.25 |
|
|
|
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 1.13 times in 2010, decrease from 1.23 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 0.12 times in 2010,
decrease from 0.19 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 19 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Impressive |
Industrial
Average |
0.84 |
|
Debt to Equity Ratio |
4.43 |
Risky |
Industrial
Average |
2.26 |
|
Times Interest Earned |
3.59 |
Impressive |
Industrial
Average |
0.36 |
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 3.59 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 0.82 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
21.43 |
Impressive |
Industrial
Average |
13.38 |
|
Total Assets Turnover |
2.50 |
Impressive |
Industrial
Average |
2.13 |
|
Inventory Conversion Period |
115.78 |
|
|
|
|
Inventory Turnover |
3.15 |
Satisfactory |
Industrial
Average |
3.34 |
|
Receivables Conversion Period |
14.00 |
|
|
|
|
Receivables Turnover |
26.07 |
Impressive |
Industrial
Average |
4.67 |
|
Payables Conversion Period |
111.53 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.08 |
|
UK Pound |
1 |
Rs.78.65 |
|
Euro |
1 |
Rs.67.79 |
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.