MIRA INFORM REPORT
|
Report Date : |
04.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
CHAYA
GEMS CO., LTD. |
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|
|
|
Registered Office : |
10th Floor,
Itf Silom Palace
Building, 160/68-69 Silom Road,
Suriyawongse, Bangrak,
Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.07.1997 |
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Com. Reg. No.: |
0105540069268 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer,
Distributor and Exporter of Gems and
Diamonds |
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 : |
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 – 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
CHAYA GEMS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 10th FLOOR,
ITF SILOM PALACE
BUILDING,
160/68-69 SILOM
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2237-2419,
081 624-3088, 081
318-9159
FAX :
[66] 2237-2418
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1997
REGISTRATION
NO. : 0105540069268
CAPITAL REGISTERED : BHT. 3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SUJIT RAMESH
MEHTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : GEMS
AND DIAMONDS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 29,
1997 as a
private limited company under
the registered name
CHAYA GEMS CO., LTD., by
Thai and Indian
groups, with the objective
to be engaged in
gems and diamonds trading
business. It currently
employs 3 staff.
The
subject’s registered address
is 10th Floor,
ITF Silom Palace
Building, 160/68-69 Silom Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
Mr. Sujit Ramesh Mehta
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Sujit Ramesh Mehta
is the Managing
Director.
He is Indian
nationality with the
age of 41 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and exporting
various kinds of
gems and diamonds.
IMPORT
100% of the
products is imported
from India and
Belgium.
SALES
Most of the
products are sold
locally by wholesale
to traders and
manufacturers, the remaining
is re-exported to
Hong Kong and
U.S.A.
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 15-30 days.
Imports are by
L/C.
Exports are against
L/C.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject employs 3
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$
50,000.
COMMENT
In
2010 the market
performance was considered
satisfactory comparing to the
previous year. With
the improvement of jewelry
industry has enabled
the subject to maintain
its sales at
moderate level.
FINANCIAL INFORMATION
The
capital was registered at Bht. 2,000,000 divided
into 20,000 shares of Bht. 100 each
with fully paid.
On
November 20, 2000,
the capital was
increased to Bht.
11,000,000 divided into
110,000 shares of
Bht. 100 each.
On
June 25, 2003,
the capital was
decreased to 3,000,000
divided into 30,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at June
22, 2003]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sujit Ramesh Metha Nationality: Indian Address : 160/68-69
Silom Rd., Suriyawongse,
Bangrak, Bangkok |
14,700 |
49.00 |
|
Mr. Anucha Aowampornphan Nationality: Thai Address : 73/40
Isaraphap Rd., Hiranrujee,
Thonburi, Bangkok |
3,500 |
11.66 |
|
Ms. Raenoo Petchniyom Nationality: Thai Address : 191/1
Moo 6, Lakchang,
Chawang,
Nakornsrithammarat |
3,000 |
10.00 |
|
Mrs. Payao Puengpradit Nationality: Thai Address : 194
Moo 6, Bangpoon,
Muang, Pathumthani |
3,000 |
10.00 |
|
Mr. Somyos Tamoputhasiri Nationality: Thai Address : 8-9 Moo
2, Bangtone, Nongmuang,
Lopburi |
3,000 |
10.00 |
|
Mr. Wanchai Paichitranont Nationality: Thai Address : 2172/148
Phaholyothin 36 Rd.,
Ladyao,
Jatujak, Bangkok |
1,400 |
4.67 |
|
Mrs. Samran Klinhuan Nationality: Thai Address : 82
Teekhli Rd., Takhli,
Nakornsawan |
1,400 |
4.67 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Thanachai
Vithitcharnchai No. 6135
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
85,511.15 |
164,577.42 |
|
Trade Accounts Receivable |
4,676,271.15 |
2,678,455.65 |
|
Sale Department Receivable - Value Added Tax |
188.87 |
19,145.30 |
|
Inventories |
3,778,625.80 |
5,511,733.50 |
|
|
|
|
|
Total Current Assets
|
8,540,596.97 |
8,373,911.87 |
|
|
|
|
|
Fixed Assets |
375.87 |
3,160.92 |
|
Total Assets |
8,540,972.84 |
8,377,072.79 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
2,333,244.14 |
1,797,125.99 |
|
Accrued Withholding Income
Tax |
2,090.00 |
2,110.00 |
|
Sale Department Payable-Value Added Tax |
4,012.93 |
- |
|
Accrued Social Securities |
700.00 |
390.00 |
|
Accrued Income Tax |
12,958.72 |
7,742.45 |
|
Other Current Liabilities |
15,000.00 |
15,000.00 |
|
|
|
|
|
Total Current Liabilities |
2,368,005.79 |
1,822,368.44 |
|
|
|
|
|
Long-term Loan from Related Person |
4,000,000.00 |
4,600,000.00 |
|
Total Liabilities |
6,368,005.79 |
6,422,368.44 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 30,000 shares |
3,000,000.00 |
3,000,000.00 |
|
|
|
|
|
Capital Paid |
3,000,000.00 |
3,000,000.00 |
|
Retained Earning-
Unappropriated |
[827,032.95] |
[1,045,295.65] |
|
Total Shareholders' Equity |
2,172,967.05 |
1,954,704.35 |
|
Total Liabilities & Shareholders' Equity |
8,540,972.84 |
8,377,072.79 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
7,428,211.85 |
7,578,427.67 |
|
Other Income |
2,936.42 |
- |
|
Total Sales |
7,431,148.27 |
7,578,427.67 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods Sold
|
6,456,187.90 |
6,723,886.70 |
|
Selling Expenses |
694,553.27 |
649,738.40 |
|
Administrative Expenses |
43,185.68 |
- |
|
Total Expenses |
7,193,926.85 |
7,373,625.10 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
237,221.42 |
204,802.57 |
|
Financial Cost |
[18,958.72] |
[8,267.45] |
|
|
|
|
|
Net Profit / [Loss] |
218,262.70 |
196,535.12 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.61 |
4.60 |
|
QUICK RATIO |
TIMES |
2.01 |
1.57 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
19,762.72 |
2,397.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
0.90 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
213.62 |
299.20 |
|
INVENTORY TURNOVER |
TIMES |
1.71 |
1.22 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
229.78 |
129.00 |
|
RECEIVABLES TURNOVER |
TIMES |
1.59 |
2.83 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
131.91 |
97.56 |
|
CASH CONVERSION CYCLE |
DAYS |
311.49 |
330.65 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
86.91 |
88.72 |
|
SELLING & ADMINISTRATION |
% |
9.93 |
8.57 |
|
INTEREST |
% |
0.26 |
0.11 |
|
GROSS PROFIT MARGIN |
% |
13.13 |
11.28 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.19 |
2.70 |
|
NET PROFIT MARGIN |
% |
2.94 |
2.59 |
|
RETURN ON EQUITY |
% |
10.04 |
10.05 |
|
RETURN ON ASSET |
% |
2.56 |
2.35 |
|
EARNING PER SHARE |
BAHT |
7.28 |
6.55 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.93 |
3.29 |
|
TIME INTEREST EARNED |
TIMES |
12.51 |
24.77 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(1.98) |
|
|
OPERATING PROFIT |
% |
15.83 |
|
|
NET PROFIT |
% |
11.06 |
|
|
FIXED ASSETS |
% |
(88.11) |
|
|
TOTAL ASSETS |
% |
1.96 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
13.13 |
Deteriorated |
Industrial Average |
28.85 |
|
Net Profit Margin |
2.94 |
Impressive |
Industrial Average |
(63.18) |
|
Return on Assets |
2.56 |
Impressive |
Industrial Average |
(14.10) |
|
Return on Equity |
10.04 |
Impressive |
Industrial Average |
(0.61) |
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 13.13%. 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
2.94%, higher figure
when 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 2.56%, 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 10.04%, 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 Uptrend
LIQUIDITY RATIO
|
Current Ratio |
3.61 |
Deteriorated |
Industrial
Average |
85.50 |
|
Quick Ratio |
2.01 |
|
|
|
|
Cash Conversion Cycle |
311.49 |
|
|
|
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 3.61 times in 2010, decrease from 4.6 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 2.01 times in 2010,
increase from 1.57 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 312 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.75 |
Impressive |
Industrial
Average |
1.75 |
|
Debt to Equity Ratio |
2.93 |
Risky |
Industrial
Average |
1.23 |
|
Times Interest Earned |
12.51 |
Impressive |
Industrial
Average |
(0.80) |
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 12.52 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 0.75 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
19,762.72 |
Deteriorated |
Industrial Average |
256,498.77 |
|
Total Assets Turnover |
0.87 |
Satisfactory |
Industrial Average |
1.05 |
|
Inventory Conversion Period |
213.62 |
|
|
|
|
Inventory Turnover |
1.71 |
Deteriorated |
Industrial Average |
3.96 |
|
Receivables Conversion Period |
229.78 |
|
|
|
|
Receivables Turnover |
1.59 |
Deteriorated |
Industrial Average |
64.17 |
|
Payables Conversion Period |
131.91 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
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.49.42 |
|
UK Pound |
1 |
Rs.76.72 |
|
Euro |
1 |
Rs.65.85 |
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.