MIRA
INFORM REPORT
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Report Date : |
17.07.2012 |
IDENTIFICATION DETAILS
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Name : |
JEWEL CREATION IMPEX CO., LTD. |
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Registered Office : |
Unit 46-C, 20th Floor, Bangkok Gem & Jewellery Tower, 322/46 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
25.05.2011 |
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Com. Reg. No.: |
0105554068005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor of Diamonds and Gemstones |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
JEWEL
CREATION IMPEX CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : UNIT
46-C, 20th FLOOR,
BANGKOK GEM
& JEWELLERY TOWER,
322/46 SURAWONG
ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2237-2148-9,
087 974-0904,
FAX :
[66] 2237-9589
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2011
REGISTRATION
NO. : 0105554068005
TAX
ID NO. : 3034515847
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MANOJ KUMAR
KOTHARI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND
DISTRIBUTOR
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 May 25,
2011 as a
private limited company under
the registered name
style JEWEL CREATION IMPEX
CO., LTD., by
Thai and Indian
groups, with the
business objective to
import and distribute
various kinds of
diamonds and semi-precious
gemstones for jewelry
production industry in
Thailand. It currently
employs 2 staff.
The subject’s registered
address is Unit 46-C, 20th Floor,
Bangkok Gems &
Jewellery Tower, 322/46 Surawong Rd.,
Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
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|
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Mr. Manoj Kumar Kothari |
|
Indian |
39 |
|
Mr. Parth Vinodkumar Anavadia |
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Indian |
30 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Manoj Kumar Kothari
is the Managing
Director.
He is Indian
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
diamonds and semi-precious
gemstones for jewelry
production industry.
PURCHASE
100% of the
products is imported
from India
MAJOR
SUPPLIER
M.S.
Diamond Point Pvt.
Ltd. : India
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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
D/A or T/T
on negotiated terms.
BANKING
The subject was
not disclosed its
banker’s name.
EMPLOYMENT
The
subject employs 2
staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime commercial
area.
COMMENT
The
subject is a
newly established company
engaging in diamonds
and gemstones business. Its
first year operation
was moderate, while
its business in
2012 has gradually
improved with bright
business prospect.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 4,000,000 divided into
40,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
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Mr. Manoj Kumar Kothari Nationality: Indian Address : 322/46
Surawong Rd., Siphaya,
Bangrak, Bangkok |
9,800 |
24.50 |
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Mr. Parth Vinodkumar Anavadia Nationality: Indian Address : 322/46
Surawong Rd., Siphaya,
Bangrak, Bangkok |
9,800 |
24.50 |
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Mrs. Busaba Ruenpitak Nationality: Thai Address : 521
Somdejprapinklao Rd., Bangyikhan,
Bangplad, Bangkok |
6,800 |
17.00 |
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Mr. Sommai Saetia Nationality: Thai Address : 304/679
Soi Puengmee 50,
Bangchak,
Prakanong, Bangkok |
6,800 |
17.00 |
|
Mrs. Maechan Phu-eiam Nationality: Thai Address : 46
Moo 13, T. Yothaka, A. Bangnampriew,
Chachoengsao |
6,800 |
17.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
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Thai |
3 |
20,400 |
51.00 |
|
Foreign-Indian |
2 |
19,600 |
49.00 |
|
Total |
5 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No. 1888
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 was :
ASSETS
|
Current Assets |
2011 |
|
|
|
|
Cash and Cash Equivalents |
20,523.58 |
|
Trade Accounts & Other Receivable |
8,080,960.77 |
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Short-term Loan |
3,150,000.00 |
|
Inventories |
6,046,345.16 |
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Other Current Assets
|
3,662.64 |
|
|
|
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Total Current Assets
|
17,301,492.15 |
|
|
|
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Office Equipment |
45,383.05 |
|
Total Assets |
17,346,875.20 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
|
|
|
|
Trade Accounts & Other
Payable |
13,927,734.98 |
|
|
|
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Total Current Liabilities |
13,927,734.98 |
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Total Liabilities |
13,927,734.98 |
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Shareholders' Equity |
|
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Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
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Capital Paid |
4,000,000.00 |
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Retained Earning - Unappropriated |
[580,859.78] |
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Total Shareholders' Equity |
3,419,140.22 |
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Total Liabilities & Shareholders' Equity |
17,346,875.20 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
|
|
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Sales |
8,073,373.53 |
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Other Income |
10,530.72 |
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Total Revenues |
8,083,904.25 |
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Expenses |
|
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Cost of Goods
Sold |
7,606,201.85 |
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Selling Expenses |
32,474.40 |
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Administrative Expenses |
858,741.10 |
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Other Expenses |
167,346.68 |
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Total Expenses |
8,664,764.03 |
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|
|
|
Profit / Loss] before Financial
Costs |
[580,859.78] |
|
Financial Costs |
- |
|
Net Profit / [Loss] |
[580,859.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
|
|
|
|
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LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
|
QUICK RATIO |
TIMES |
0.81 |
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ACTIVITY RATIO |
|
|
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FIXED ASSETS TURNOVER |
TIMES |
177.89 |
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TOTAL ASSETS TURNOVER |
TIMES |
0.47 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
290.15 |
|
INVENTORY TURNOVER |
TIMES |
1.26 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
365.34 |
|
RECEIVABLES TURNOVER |
TIMES |
1.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
668.35 |
|
CASH CONVERSION CYCLE |
DAYS |
(12.86) |
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PROFITABILITY
RATIO |
|
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COST OF GOODS SOLD |
% |
94.21 |
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SELLING & ADMINISTRATION |
% |
11.04 |
|
INTEREST |
% |
- |
|
GROSS PROFIT MARGIN |
% |
5.92 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(7.19) |
|
NET PROFIT MARGIN |
% |
(7.19) |
|
RETURN ON EQUITY |
% |
(16.99) |
|
RETURN ON ASSET |
% |
(3.35) |
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EARNING PER SHARE |
BAHT |
(14.52) |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.80 |
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DEBT TO EQUITY RATIO |
TIMES |
4.07 |
|
TIME INTEREST EARNED |
TIMES |
- |
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.92 |
Acceptable |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(7.19) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(3.35) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(16.99) |
Deteriorated |
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. The company's figure is 5.92%. 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 -7.19%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is -3.35%.
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. When compared with the
industry average, it was lower, the company's figure is -16.99%.
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 |
1.24 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.81 |
|
|
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|
Cash Conversion Cycle |
(12.86) |
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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 1.24 times in 2011, increased from 0 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 0.81 times in 2011,
increased from 0 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 -13 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
4.07 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.8 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 |
177.89 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
0.47 |
Deteriorated |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
290.15 |
|
|
|
|
Inventory Turnover |
1.26 |
Acceptable |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
365.34 |
|
|
|
|
Receivables Turnover |
1.00 |
Deteriorated |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
668.35 |
|
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|
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 –
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.
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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.
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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.
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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.
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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.
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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.
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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.54.92 |
|
|
1 |
Rs.85.47 |
|
Euro |
1 |
Rs.67.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.