MIRA
INFORM REPORT
|
Report Date : |
05.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
PETCHSEEG
THAI CO., LTD. |
|
|
|
|
Registered Office : |
Suite 205e,
31st Floor, Gems
Tower, 1249/205
Charoenkrung Road, Suriyawongse, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
10.07.1996 |
|
|
|
|
Com. Reg. No.: |
0105539076680 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
distributor and exporter of diamonds and
jewelry products |
|
|
|
|
No. of Employees : |
05 employees |
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 : |
Small Company |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries,
|
Source : CIA |
Company name
PETCHSEEG THAI CO., LTD.
SUMMARY
BUSINESS
ADDRESS :
BANGRAK,
TELEPHONE : [66] 2267-4604,
89 891-5674, 081
808-5531
FAX :
[66] 2267-4605
E-MAIL
ADDRESS : petchseeg@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1996
REGISTRATION
NO. : 0105539076680
TAX
ID NO. : 3011740262
CAPITAL REGISTERED : BHT. 9,000,000
CAPITAL PAID-UP : BHT.
9,000,000
SHAREHOLDER’S PROPORTION : THAI :
52.00%
INDIAN
: 48.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MS. MANEERAT SONGLERTMETHA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER,
DISTRIBUTOR AND
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 10,
1996 as a
private limited company
under the name style
PETCHSEEG THAI CO., LTD., by
Thai and Indian
groups, with the
objective to engage
in diamonds and
jewelry trading business.
It currently employs approximately
5 staff.
The subject’s registered address is Suit 205E,
31st Flr., Gems Tower, 1249/205 Charoenkrung
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hemu Singh Jain |
|
Indian |
42 |
|
Mr. Khan Sarasuwan |
|
Thai |
49 |
|
Ms. Maneerat Songlertmetha |
|
Thai |
44 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Ms. Maneerat Songlertmetha is
the Managing Director.
She is Thai
nationality with the
age of 44 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing diamonds, precious
stones and jewelry
products, as well as
exporting of local
jewelry products.
PURCHASE
The products are
purchased from suppliers
and manufacturers in
both domestic and
overseas, mainly in
India and Hong
Kong.
SALES
Imported products are
sold locally to
traders, manufacturers and
end-users.
EXPORT
Thai jewelry products
are exported to
India, Japan, Republic
of China, U.S.A.,
Russia, Singapore and
Hong Kong.
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
according to IRICO’S
DATABASE 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.
Exports are against
T/T.
BANKING
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.
COMMENT
Diamond
and jewelry consumption
in 2011 was
slightly dropped comparing
to the same period
of the previous
year’s level due
to a slowdown
of jewelry industry
of both local
and overseas markets.
In
2012, there is
a sign of
improvement of jewelry
industry, which results
in an increase
in number of
orders of jewelry products from
both local and
overseas markets. The
subject expects a good
business this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000 divided
into 30,000 shares
of Bht. 100
each.
The
capital was increased
later as following:
Bht. 5,000,000
on May 23,
2001
Bht. 7,000,000
on December 4,
2002
Bht. 9,000,000
on April 1, 2004
The
latest registered capital
was increased to
Bht. 9 million, divided
into 90,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hemu Singh Jain Nationality: Indian Address :
Klongsan, |
43,200 |
48.00 |
|
Ms. Maneerat Songlertmetha Nationality: Thai Address : |
27,300 |
30.33 |
|
Mrs. Buarian Narongchai Nationality: Thai Address :
Bangkorlaem, |
5,500 |
6.11 |
|
Mr. Khan Sarasuwan Nationality: Thai Address : 72/15
Moo 11,
Pasicharoen, |
4,500 |
5.00 |
|
Mrs. Thanyaporn Songlertmetha Nationality: Thai Address : |
4,500 |
5.00 |
|
Mr. Rasalam Salaemae Nationality: Thai Address : Pattani |
2,500 |
2.78 |
|
Mr. Isma-ae Salae Nationality: Thai Address : 56
Moo 2, Thanam,
Panare, Pattani |
2,500 |
2.78 |
Total Shareholders : 7
Shareholders Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
46,800 |
52.00 |
|
Foreign - Indian |
1 |
43,200 |
48.00 |
|
Total |
7 |
90,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Manit Nilprapha No.
4055
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 & 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand
& at Bank |
865,345.99 |
806,031.86 |
|
Trade Accounts & Other
Receivable |
2,382,061.11 |
6,896,425.50 |
|
Inventories |
13,116,603.22 |
13,722,168.93 |
|
Other Current Assets
|
1,283.25 |
147,994.22 |
|
|
|
|
|
Total Current Assets
|
16,365,293.57 |
21,572,620.51 |
|
Fixed Assets |
1,692,263.68 |
1,767,099.24 |
|
Other Non-current Assets |
336,640.00 |
336,640.00 |
|
Total Assets |
18,394,197.25 |
23,676,359.75 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
1,139,862.78 |
1,472,382.76 |
|
Trade Accounts & Other
Payable |
5,789,964.62 |
10,547,814.52 |
|
Accrued Income Tax |
130,943.66 |
327,957.98 |
|
Other Current Liabilities |
17,939.88 |
323,325.37 |
|
|
|
|
|
Total Current Liabilities |
7,078,710.94 |
12,671,480.63 |
|
Total Liabilities |
7,078,710.94 |
12,671,480.63 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 90,000 shares |
9,000,000.00 |
9,000,000.00 |
|
|
|
|
|
Capital Paid |
9,000,000.00 |
9,000,000.00 |
|
Retained Earning - Unappropriated |
2,315,486.31 |
2,004,879.12 |
|
Total Shareholders' Equity |
11,315,486.31 |
11,004,879.12 |
|
Total Liabilities &
Shareholders' Equity |
18,394,197.25 |
23,676,359.75 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Export Income |
17,973,931.96 |
20,443,808.20 |
|
Sales Income |
6,248,304.58 |
4,699,989.49 |
|
Other Income |
348,869.55 |
666,547.96 |
|
Total Revenues |
24,571,106.09 |
25,810,345.65 |
|
Expenses |
|
|
|
|
|
|
|
Change in Finished Goods and Work in Process |
605,565.71 |
[2,830,134.67] |
|
Purchase of Goods |
19,458,659.34 |
23,853,569.74 |
|
Employees Benefit Expenses |
2,418,000.00 |
2,026,400.00 |
|
Vehicle Expenses |
62,832.56 |
108,370.00 |
|
Depreciation and Amortization |
74,835.56 |
72,816.28 |
|
Other Expenses |
1,216,072.60 |
1,369,041.34 |
|
Total Expenses |
23,835,965.77 |
24,600,062.69 |
|
|
|
|
|
Profit / [Loss] before Financial Cost and Income Tax |
735,140.32 |
1,210,282.96 |
|
Financial Cost |
[127,080.02] |
[117,383.67] |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
608,060.30 |
1,092,899.29 |
|
Income Tax |
[297,453.11] |
[327,957.98] |
|
Net Profit / [Loss] |
310,607.19 |
764,941.31 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.31 |
1.70 |
|
QUICK RATIO |
TIMES |
0.46 |
0.61 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
14.31 |
14.23 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.32 |
1.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
246.04 |
209.97 |
|
INVENTORY TURNOVER |
TIMES |
1.48 |
1.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
35.89 |
100.11 |
|
RECEIVABLES TURNOVER |
TIMES |
10.17 |
3.65 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
108.61 |
161.40 |
|
CASH CONVERSION CYCLE |
DAYS |
173.33 |
148.68 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
80.33 |
94.87 |
|
SELLING & ADMINISTRATION |
% |
13.05 |
(2.48) |
|
INTEREST |
% |
0.52 |
0.47 |
|
GROSS PROFIT MARGIN |
% |
21.11 |
7.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.03 |
4.81 |
|
NET PROFIT MARGIN |
% |
1.28 |
3.04 |
|
RETURN ON EQUITY |
% |
2.74 |
6.95 |
|
RETURN ON ASSET |
% |
1.69 |
3.23 |
|
EARNING PER SHARE |
BAHT |
3.45 |
8.50 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.38 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.63 |
1.15 |
|
TIME INTEREST EARNED |
TIMES |
5.78 |
10.31 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(3.67) |
|
|
OPERATING PROFIT |
% |
(39.26) |
|
|
NET PROFIT |
% |
(59.39) |
|
|
FIXED ASSETS |
% |
(4.23) |
|
|
TOTAL ASSETS |
% |
(22.31) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.11 |
Impressive |
Industrial Average |
9.66 |
|
Net Profit Margin |
1.28 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
1.69 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
2.74 |
Impressive |
Industrial Average |
(0.72) |
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. Gross Profit Margin is 21.11%. When compared with
the industry average, the ratio of the company was higher. This indicated that company was more
profitable than the same industry.
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 1.28%,
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
1.69%, 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 2.74%, 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 Uptrend
Return on Equity Stable
LIQUIDITY RATIO
|
Current Ratio |
2.31 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
0.46 |
|
|
|
|
Cash Conversion Cycle |
173.33 |
|
|
|
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 2.31 times in 2011, increase from 1.7 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 higher, indicated that company was an
efficient operator in a dominant position within its industry.
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 0.46 times in 2011,
decrease from 0.61 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 174 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.38 |
Impressive |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
0.63 |
Impressive |
Industrial Average |
1.67 |
|
Times Interest Earned |
5.78 |
Impressive |
Industrial Average |
0.63 |
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 5.79 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 0.38 less than 0.5, most of the company's
assets are financed through equity.
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 |
14.31 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
1.32 |
Satisfactory |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
246.04 |
|
|
|
|
Inventory Turnover |
1.48 |
Acceptable |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
35.89 |
|
|
|
|
Receivables Turnover |
10.17 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
108.61 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
DIAMOND INDUSTRY –
-
From time immemorial,
-
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
-
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
-
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.54.95 |
|
|
1 |
Rs.88.42 |
|
Euro |
1 |
Rs.71.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.