MIRA
INFORM REPORT
|
Report Date : |
25.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
INTERJEWEL [THAILAND] CO., LTD. |
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|
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|
Formerly Known As : |
D. N. GEMS CO., LTD |
|
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|
Registered Office : |
Room 603, 6th Floor, K. B. S. Building, Mahaesak 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 : |
1992 |
|
|
|
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Com. Reg. No.: |
0105535119881 [Former : 11657/2535] |
|
|
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|
Legal Form : |
Private
Limited Company |
|
|
|
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LINE OF BUSINESS : |
DIAMONDS TRADING COMPANY
(PROVIDE SERVICES OF
DIAMOND CUTTING AND
DIAMOND POLISHING TO
JEWELRY BUSINESS ) |
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|
|
|
No. of Employees : |
12 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 30, 2011
|
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
INTERJEWEL [THAILAND]
CO., LTD.
[FORMER : D.
N. GEMS
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : ROOM
603, 6th FLOOR,
K. B. S. BUILDING,
30-38
MAHAESAK
ROAD, SURIYAWONGSE,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2237-3919-20
FAX :
[66] 2237-3921
E-MAIL
ADDRESS : dngems@samart.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535119881 [Former : 11657/2535]
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
FOREIGN :
49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SHACHIN SURESH
MEHTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 12
LINES
OF BUSINESS : DIAMONDS
TRADING COMPANY
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 August 26,
1992 as a
private limited company under
the originally registered name “D. N. Gems
Co., Ltd.”, by
Thai and Singaporean
groups, with the business
objective to trade
and provide services
of diamond cutting and diamond
polishing to jewelry
business of both
domestic and international.
On April 20, 2008, subject’s name was
changed to INTERJEWEL
[THAILAND] CO., LTD.
It currently employs
approximately 12 staff.
It
has been certified
the standard by
RJC Certification, with
the member
number
00000106, on December
22, 2011.
The
subject’s registered address
is Room 603, 6th Flr.,
K.B.S. Building, 30-38 Mahaesak
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ketan Suresh Mehta |
|
Indian |
42 |
|
Mr. Shachin Suresh Mehta |
|
Indian |
46 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Shachin Suresh Mehta
is the Managing
Director.
He is Indian
nationality with the
age of 46
years old.
Mr. Ketan Suresh Mehta
is the Assistant
Managing Director.
He is Indian
nationality with the
age of 42
years old.
BUSINESS OPERATIONS
The subject is
engaged in trading
company and supplying
of cut-diamonds and
polished diamonds for
jewelry business both
domestic and international
markets.
PURCHASE
100% of diamonds
and jewelry products
are imported from
India and Hong
Kong.
MAJOR SUPPLIER
Interjewel Pvt. Ltd. : India
SALES
80% of the
products is sold
locally to wholesalers
and manufacturers, and
the remaining 20%
is exported to
Hong Kong, Singapore,
Dubai, Japan, U.S.A.
and European countries.
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.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs 12
staff.
LOCATION DETAILS
The premise
is rented for administrative office and
diamond cutting factory
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The subject
had a good
business both importing
and exporting of
diamond and jewelry
products. Last few years
demand of diamond
had spurred in
local market from
strong consumption by manufacturer and
end-user, as well
as exporting of
jewelry products to main
market like USA was
also strong.
Consumption improvement in both local
and international markets
has pushed up
demand of diamond from
a vast number of
jewelry businesses.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100
each.
On
October 17, 1995,
the capital was
increased to Bht. 12,000,000 divided
into 120,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Dianco International Pte.
Ltd. Nationality: Singaporean Address : 80
Raffles Place, 25-01,
UOB Plaza, Singapore |
58,800 |
49.00 |
|
Ms. Rungrueng Polsinghayothin Nationality: Thai Address : 844/196
Charansanitwong Rd., Bangbamru,
Bangplad, Bangkok |
11,200 |
9.35 |
|
Mrs. Anchalee Mahabanphot Nationality: Thai Address : 49/22
Soi Suparuam, Bangsue,
Bangkok |
10,000 |
8.33 |
|
Ms. Pornrat Rerkngam Nationality: Thai Address : 48
Moo 2, Pakthor,
Ratchaburi |
10,000 |
8.33 |
|
Mrs. Chaveewan Peamsa-ard Nationality: Thai Address : 31/1
Moo 7, Samrong,
Klongkuen,
Chachoengsao |
10,000 |
8.33 |
|
Mrs. Somsri Kamkliang Nationality: Thai Address : 34/101
Moo 5, Prachatipat, Thanyaburi,
Pathumthani |
10,000 |
8.33 |
|
Ms. Mayuree Choosuebsai Nationality: Thai Address : 603/111
Moo 10, Bangkae,
Bangkok |
10,000 |
8.33 |
Total Shareholders : 7
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
61,200 |
51.00 |
|
Foreign - Singaporean |
1 |
58,800 |
49.00 |
|
Total |
7 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Surapol Phantanesuan No.
2590
Note.
The 2011 financial
statement was not
submitted to the
Commercial Registration Department
during investigation.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
236,712.47 |
247,629.18 |
|
Short-term Investment |
40,000,000.00 |
45,000,000.00 |
|
Trade Accounts Receivable |
149,472,189.24 |
77,661,899.04 |
|
Inventories |
52,637,755.64 |
19,736,397.09 |
|
Other Current Assets
|
865,728.78 |
576,058.66 |
|
|
|
|
|
Total Current Assets
|
243,212,386.13 |
143,221,983.97 |
|
Fixed Assets |
12,497,669.17 |
467,226.83 |
|
Deposit |
140,600.00 |
140,600.00 |
|
Total Assets |
255,850,655.30 |
143,829,810.80 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Bank |
79,072,196.63 |
66,968,392.13 |
|
Trade Accounts Payable |
131,781,204.71 |
47,925,773.19 |
|
Current Portion of Long-term Loans |
1,560,000.00 |
- |
|
Other Current Liabilities |
3,537,255.07 |
947,291.28 |
|
|
|
|
|
Total Current Liabilities |
215,950,656.41 |
115,841,456.60 |
|
Other Long-term Loans |
6,598,959.16 |
- |
|
Total Liabilities |
222,549,615.57 |
115,841,456.60 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
|
|
|
|
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
1,200,000.00 |
1,200,000.00 |
|
Unappropriated |
20,101,039.73 |
14,788,354.20 |
|
Total Shareholders' Equity |
33,301,039.73 |
27,988,354.20 |
|
Total Liabilities & Shareholders' Equity |
255,850,655.30 |
143,829,810.80 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
396,819,420.66 |
216,922,364.83 |
|
Other Income |
4,925,405.22 |
913,184.91 |
|
Total Revenues |
401,744,825.88 |
217,835,549.74 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
381,287,482.77 |
207,455,959.51 |
|
Selling Expenses |
1,659,383.28 |
1,147,448.11 |
|
Administrative Expenses |
8,427,380.48 |
6,992,741.93 |
|
Total Expenses |
391,374,246.53 |
215,596,149.55 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
10,370,579.35 |
2,239,400.19 |
|
Financial Cost |
[2,294,604.61] |
[4,289,397.52] |
|
Profit / [Loss] before Income
Tax |
8,075,974.74 |
[2,049,997.33] |
|
Income Tax |
[2,763,289.21] |
[540,085.24] |
|
|
|
|
|
Net Profit / [Loss] |
5,312,685.53 |
[2,590,082.57] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.13 |
1.24 |
|
QUICK RATIO |
TIMES |
0.88 |
1.06 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
31.75 |
464.28 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.55 |
1.51 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
50.39 |
34.72 |
|
INVENTORY TURNOVER |
TIMES |
7.24 |
10.51 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
137.49 |
130.68 |
|
RECEIVABLES TURNOVER |
TIMES |
2.65 |
2.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
126.15 |
84.32 |
|
CASH CONVERSION CYCLE |
DAYS |
61.72 |
81.08 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.09 |
95.64 |
|
SELLING & ADMINISTRATION |
% |
2.54 |
3.75 |
|
INTEREST |
% |
0.58 |
1.98 |
|
GROSS PROFIT MARGIN |
% |
5.16 |
4.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.61 |
1.03 |
|
NET PROFIT MARGIN |
% |
1.34 |
(1.19) |
|
RETURN ON EQUITY |
% |
15.95 |
(9.25) |
|
RETURN ON ASSET |
% |
2.08 |
(1.80) |
|
EARNING PER SHARE |
BAHT |
44.27 |
(21.58) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.87 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.68 |
4.14 |
|
TIME INTEREST EARNED |
TIMES |
4.52 |
0.52 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
82.93 |
|
|
OPERATING PROFIT |
% |
363.10 |
|
|
NET PROFIT |
% |
305.12 |
|
|
FIXED ASSETS |
% |
2,574.86 |
|
|
TOTAL ASSETS |
% |
77.88 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.16 |
Deteriorated |
Industrial Average |
10.59 |
|
Net Profit Margin |
1.34 |
Impressive |
Industrial
Average |
0.13 |
|
Return on Assets |
2.08 |
Impressive |
Industrial
Average |
0.16 |
|
Return on Equity |
15.95 |
Impressive |
Industrial
Average |
0.39 |
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 5.16%. When
compared with the industry average, the ratio of the company was lower,
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 1.34%, 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
2.08%, 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 15.95%, 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 |
1.13 |
Deteriorated |
Industrial Average |
2.67 |
|
Quick Ratio |
0.88 |
|
|
|
|
Cash Conversion Cycle |
61.72 |
|
|
|
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, decreased from 1.24 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 0.88 times in 2010,
decreased from 1.06 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 62 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.87 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
6.68 |
Risky |
Industrial
Average |
1.35 |
|
Times Interest Earned |
4.52 |
Impressive |
Industrial
Average |
0.65 |
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 4.52 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 0.87 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 |
31.75 |
Impressive |
Industrial
Average |
6.18 |
|
Total Assets Turnover |
1.55 |
Impressive |
Industrial
Average |
1.29 |
|
Inventory Conversion Period |
50.39 |
|
|
|
|
Inventory Turnover |
7.24 |
Impressive |
Industrial
Average |
1.44 |
|
Receivables Conversion Period |
137.49 |
|
|
|
|
Receivables Turnover |
2.65 |
Acceptable |
Industrial
Average |
3.64 |
|
Payables Conversion Period |
126.15 |
|
|
|
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 Downtrend
-
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.52.79 |
|
|
1 |
Rs.85.17 |
|
Euro |
1 |
Rs.69.53 |
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.