MIRA
INFORM REPORT
|
Report Date : |
18.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
RCAN JEWELLERY
CO., LTD |
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|
Formerly Known As : |
STYLE RCAN JEWELLERY
CO., LTD., |
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|
Registered Office : |
2210/30 Narathiwas Ratchanakarin Road, Chongnonsi, Yannawa, Bangkok 10120 |
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Country : |
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Financials (as on) : |
31.12.2010 |
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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,
Exporter and Distributor
of Diamonds and Jewelry
Products |
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|
No. of Employees : |
09 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 : 2210/30 NARATHIWAS
RATCHANAKARIN ROAD,
CHONGNONSI, YANNAWA,
BANGKOK 10120
TELEPHONE : [66] 2678-0050-1
FAX :
[66] 2678-0052
E-MAIL
ADDRESS : sneeja@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0105551013111
CAPITAL REGISTERED : BHT. 35,000,000
CAPITAL PAID-UP : BHT.
35,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIT RASIKLAL
GANDHI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 9
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, EXPORTER
AND DISTRIBUTOR
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 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 9 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 |
|
Indian |
35 |
|
Mr. Amit Rasiklal Gandhi |
|
Indian |
38 |
|
Mr. Jayesh Gunwant Mehta |
|
Indian |
39 |
AUTHORIZED PERSON
Any of the
mentioned directors 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 38
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 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
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 9
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$
500,000.
COMMENT
The
subject was formed in 2008 is
an importer, distributor
and exporter of
diamond and jewelry products. Subject reported
moderate sales in its
first year operation. Market
of diamonds gemstones and
jewelry products have
dramatically improved after
sluggish market in
the past years.
Consumption of jewelry
products has increased
resulted by economic
upturn. Subject’s business
outlook is impressive.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 divided
into 40,000 shares of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 10,000,000
on June 10,
2009
Bht. 16,000,000
on May 9,
2011
Bht. 35,000,000
on November 2, 2011
The
latest registered capital
was increased to
Bht. 35,000,000 divided into
350,000 shares of
Bht. 100 each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as
at October 31,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yannawa, Bangkok |
75,000 |
21.43 |
|
Mr. Nirav Rasiklal Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yannawa, Bangkok |
60,000 |
17.14 |
|
Mr. Kriengsak Thabthim Nationality: Thai Address : 20
Moo 13, T. Sarklek,
A. Sarklek, Pichit |
44,625 |
12.75 |
|
Ms. Bang-on Nuathong Nationality: Thai Address : 9
Moo 13, T. Sarklek,
A. Sarklex, Pichit |
44,625 |
12.75 |
|
Ms. Somporng Promvichai Nationality: Thai Address : 189/6
Moo 3, T. Jor Por Ror, A. Kraburi,
Ranong |
44,625 |
12.75 |
|
Mr. Narong Rongjong Nationality: Thai Address : 172
Moo 1, T. Banmuang, A. Nernmaprang, Phisanuloke |
44,625 |
12.75 |
|
Mr. Jayesh Gunwant Mehta Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yannawa, Bangkok |
36,500 |
10.43 |
Total Shareholders : 7
Share Structure [as
at October 31,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
178,500 |
51.00 |
|
Foreign - Indian |
3 |
171,500 |
49.00 |
|
Total |
7 |
350,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sanit Pumaree No.
0795
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
1,053,975.99 |
505,201.06 |
|
Trade Accounts Receivable |
56,028,112.27 |
25,349,125.89 |
|
Inventories |
67,664,621.02 |
27,654,821.43 |
|
Other Current Assets
|
4,164,106.94 |
1,151,134.55 |
|
|
|
|
|
Total Current Assets
|
128,910,816.22 |
54,660,282.93 |
|
Fixed Assets |
16,300,141.06 |
1,584,362.56 |
|
Other Assets |
234,600.00 |
210,000.00 |
|
Total Assets |
145,445,557.28 |
56,454,645.49 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
35,921,360.29 |
- |
|
Trade Accounts Payable |
19,331,927.22 |
9,630,184.18 |
|
Short-term Loan from
Person or Related Company |
76,830,017.86 |
- |
|
Other Current Liabilities |
779,403.29 |
34,619,484.34 |
|
|
|
|
|
Total Current Liabilities |
132,862,708.66 |
44,249,668.52 |
|
Total Liabilities |
132,862,708.66 |
44,249,668.52 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
100,000 shares
|
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning -
Unappropriated |
2,582,848.62 |
2,204,976.97 |
|
Total Shareholders' Equity |
12,582,848.62 |
12,204,976.97 |
|
Total Liabilities & Shareholders' Equity |
145,445,557.28 |
56,454,645.49 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
157,629,413.71 |
73,134,690.60 |
|
Less: Refundable Goods |
[35,898,417.83] |
- |
|
Sales - Net |
121,730,995.88 |
73,134,690.60 |
|
Other Income |
|
|
|
Interest Income |
12.14 |
- |
|
Profit / [Loss] on
Exchange Rate |
125,188.50 |
- |
|
Others |
2,180,517.06 |
1,672,774.01 |
|
Total Revenues |
124,036,713.58 |
74,807,464.61 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
114,262,102.77 |
66,155,539.52 |
|
Selling Expenses |
759,450.53 |
604,927.87 |
|
Administrative Expenses |
7,971,078.73 |
6,169,104.42 |
|
Total Expenses |
122,992,632.03 |
72,929,571.81 |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
1,044,081.55 |
1,877,892.80 |
|
Income Tax |
[666,209.90] |
[719,312.14] |
|
|
|
|
|
Net Profit / [Loss] |
377,871.65 |
1,158,580.66 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.97 |
1.24 |
|
QUICK RATIO |
TIMES |
0.43 |
0.58 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.47 |
46.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.84 |
1.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
216.15 |
152.58 |
|
INVENTORY TURNOVER |
TIMES |
1.69 |
2.39 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
168.00 |
126.51 |
|
RECEIVABLES TURNOVER |
TIMES |
2.17 |
2.89 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
61.75 |
53.13 |
|
CASH CONVERSION CYCLE |
DAYS |
322.39 |
225.96 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.86 |
90.46 |
|
SELLING & ADMINISTRATION |
% |
7.17 |
9.26 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
8.03 |
11.83 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.86 |
2.57 |
|
NET PROFIT MARGIN |
% |
0.31 |
1.58 |
|
RETURN ON EQUITY |
% |
3.00 |
9.49 |
|
RETURN ON ASSET |
% |
0.26 |
2.05 |
|
EARNING PER SHARE |
BAHT |
3.78 |
11.59 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.56 |
3.63 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
66.45 |
|
|
OPERATING PROFIT |
% |
(44.40) |
|
|
NET PROFIT |
% |
(67.38) |
|
|
FIXED ASSETS |
% |
928.81 |
|
|
TOTAL ASSETS |
% |
157.63 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.03 |
Deteriorated |
Industrial
Average |
25.73 |
|
Net Profit Margin |
0.31 |
Impressive |
Industrial
Average |
(10.84) |
|
Return on Assets |
0.26 |
Impressive |
Industrial
Average |
(5.79) |
|
Return on Equity |
3.00 |
Impressive |
Industrial
Average |
(3.79) |
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 8.03%. 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. The company's figure is 0.31%, 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 0.26%, 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 3%, 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 |
0.97 |
Risky |
Industrial
Average |
30.86 |
|
Quick Ratio |
0.43 |
|
|
|
|
Cash Conversion Cycle |
322.39 |
|
|
|
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 0.97 times in 2010, decreased from 1.24 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 0.43 times in 2010,
decreased from 0.58 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 323 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Impressive |
Industrial
Average |
1.40 |
|
Debt to Equity Ratio |
10.56 |
Risky |
Industrial
Average |
2.01 |
|
Times Interest Earned |
- |
|
Industrial Average |
(237.95) |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.91 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 |
7.47 |
Deteriorated |
Industrial Average |
727.27 |
|
Total Assets Turnover |
0.84 |
Deteriorated |
Industrial Average |
1.75 |
|
Inventory Conversion Period |
216.15 |
|
|
|
|
Inventory Turnover |
1.69 |
Deteriorated |
Industrial Average |
14.24 |
|
Receivables Conversion Period |
168.00 |
|
|
|
|
Receivables Turnover |
2.17 |
Deteriorated |
Industrial Average |
26.87 |
|
Payables Conversion Period |
61.75 |
|
|
|
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.51.66 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.67.18 |
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.