MIRA
INFORM REPORT
|
Report Date : |
19.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
SURBHI IMPEX CO., LTD. |
|
|
|
|
Registered Office : |
24th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
25.01.1996 |
|
|
|
|
Com. Reg. No.: |
0105539010531 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamonds and Jewelry Products |
|
|
|
|
No. of Employees : |
6 |
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 – 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
SURBHI
IMPEX CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 24th FLOOR,
JEWELRY TRADE CENTER,
919/307 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-4610-3,
081 692-0030
FAX :
[66] 2267-4601
E-MAIL
ADDRESS : surbhibkk@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539010531
TAX
ID NO. : 3011679760
CAPITAL REGISTERED : BHT. 55,000,000
CAPITAL PAID-UP : BHT.
55,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRAVINKUMAR CHHAGANBHAI
PATEL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 25,
1996 as a
private limited company
under the name
style SURBHI IMPEX CO., LTD., by Thai and Indian groups, in order
to be engaged in
jewelry business. It
currently employs 6
staff.
The
subject’s registered address
is 24th Floor,
Jewelry Trade Center,
919/307 Silom Rd., Silom,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pravinkumar
Chhaganbhai Patel |
|
Indian |
34 |
|
Mr. Sanjay Kumar Chhaganbhai
Patel |
|
Indian |
31 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pravinkumar Chhaganbhai Patel
is the Managing
Director.
He is Indian
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing of diamonds
and gemstones to
local market, as well
as exporting of
local fine jewelry
products to international
markets.
PURCHASE
100% of jewelry
products is purchased
from local manufacturers.
IMPORT
Diamonds
and gemstones are
imported from India,
South Africa and
Hong Kong.
MAJOR SUPPLIERS
Oriana Diamond Pty.
Ltd. : South
Africa
Oriana Diamond Pvt.
Ltd. : India
SALES
Diamonds and gemstones
are sold locally
to traders and
manufacturers.
EXPORT
Jewelry products, diamonds
and gemstones are
exported to India,
Hong Kong 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.
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.
EMPLOYMENT
The
subject employs 6
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
COMMENT
Generally, the Thai
gems and jewelry
industry has a
bright prospect. However,
there is a
high and aggressive
competition in the
local market from
many players.
Many Indian jewelry traders likely to buy jewelry made in Thailand to
sell in international markets, while selling the loose gem stone and diamond
to Thai producers.
Subject reported
outstanding increased its
sales revenue in 2010 compared to the
previous year. Strong
local consumption has
seen since 2010
and continue growing
steadily, as well
as sale in
export markets also
improved distinctively.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 40,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 6,000,000
on July 30,
2001
Bht. 13,000,000
on December 22,
2004
Bht. 20,000,000
on August 13,
2009
Bht. 35,000,000
on December 9,
2010
Bht. 55,000,000
on April 24,
2012
The
latest registered capital
was increased to
Bht. 55,000,000 divided into 550,000 shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pravinkumar
Chhaganbhai Patel Nationality: Indian Address : 919/307
Silom Rd., Silom,
Bangrak,
Bangkok |
220,000 |
40.00 |
|
Ms. Sutharat Uthainit Nationality: Thai Address : 293/92
Prachauthit 69 Rd.,
Bangmod,
Thungkru, Bangkok |
137,500 |
25.00 |
|
Ms. Sunthara Uthainit Nationality: Thai Address : 293/92
Prachauthit 69 Rd.,
Bangmod,
Thungkru, Bangkok |
82,500 |
15.00 |
|
Ms. Kamta Sirisat Nationality: Thai Address : 293/92
Prachauthit 69 Rd.,
Bangmod,
Thungkru, Bangkok |
60,500 |
11.00 |
|
Mr. Manishkumar
Chhaganbhai Prajapati Nationality: Indian Address : 919/307
Silom Rd., Silom,
Bangrak,
Bangkok |
38,500 |
7.00 |
|
Mr. Sanjay Kumar Chhaganbhai
Patel Nationality: Indian Address :
919/307 Silom Rd.,
Silom, Bangrak, Bangkok |
11,000 |
2.00 |
Total Shareholders : 6
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
280,500 |
51.00 |
|
Foreign - Indian |
3 |
269,500 |
49.00 |
|
Total |
6 |
550,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Saenee Sopitlarpthana No.
4043
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent
|
498,084.44 |
77,628.62 |
|
Short-term Investment |
29,000,000.00 |
- |
|
Trade Accounts Receivable |
152,008,437.55 |
104,316,654.72 |
|
Deferred Interest |
19,024.66 |
19,024.66 |
|
Short-term Loan to Related Person |
- |
2,800,000.00 |
|
Inventories |
14,511,003.97 |
10,909,856.87 |
|
|
|
|
|
Total Current Assets
|
196,036,550.62 |
118,123,164.87 |
|
Other Long-term Investment |
1,415,362.50 |
1,345,869.00 |
|
Fixed Assets |
4,182,534.55 |
1,851,508.31 |
|
Total Assets |
201,634,447.67 |
121,320,542.18 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft and
Short-term Loan from Financial Institution |
111,021,150.37 |
31,042,718.79 |
|
Trade Accounts Payable |
33,983,189.57 |
37,633,593.67 |
|
Other Payable |
974,996.00 |
701,061.41 |
|
Current Portion of Long-term
Loans |
- |
1,064,993.79 |
|
Current Portion of Installment
Contract Liabilities |
407,052.00 |
- |
|
Accrued Income Tax |
1,565,924.83 |
737,195.78 |
|
Other Current Liabilities |
137,722.66 |
67,707.46 |
|
|
|
|
|
Total Current Liabilities |
148,090,035.43 |
71,247,270.90 |
|
|
|
|
|
Installment Contract Liabilities |
1,335,606.00 |
- |
|
Long-term Loans |
- |
2,841,268.84 |
|
Total Liabilities |
149,425,641.43 |
74,088,539.74 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 350,000 shares
|
35,000,000.00 |
35,000,000.00 |
|
|
|
|
|
Capital Paid |
35,000,000.00 |
35,000,000.00 |
|
Retained Earning -
Unappropriated |
17,208,806.24 |
12,232,002.44 |
|
Total Shareholders' Equity |
52,208,806.24 |
47,232,002.44 |
|
Total Liabilities & Shareholders' Equity |
201,634,447.67 |
121,320,542.18 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
439,803,086.56 |
263,919,756.86 |
|
Interest Income |
38,739.19 |
63,210.96 |
|
Other Income |
5,832,879.38 |
953,902.50 |
|
Total Revenues |
445,674,705.13 |
264,936,870.32 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
425,640,881.44 |
252,047,929.01 |
|
Selling Expenses |
4,608,593.47 |
2,617,442.19 |
|
Administrative Expenses |
5,482,336.43 |
4,892,430.51 |
|
Total Expenses |
435,731,811.34 |
259,557,801.71 |
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income Tax |
9,942,893.79 |
5,379,068.61 |
|
Financial Cost |
[2,830,165.16] |
[1,638,244.98] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
7,112,728.63 |
3,740,823.63 |
|
Income Tax |
[2,135,924.83] |
[1,242,620.78] |
|
Net Profit / [Loss] |
4,976,803.80 |
2,498,202.85 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.32 |
1.66 |
|
QUICK RATIO |
TIMES |
1.23 |
1.50 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
105.15 |
142.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.18 |
2.18 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
12.44 |
15.80 |
|
INVENTORY TURNOVER |
TIMES |
29.33 |
23.10 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
126.15 |
144.27 |
|
RECEIVABLES TURNOVER |
TIMES |
2.89 |
2.53 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
29.14 |
54.50 |
|
CASH CONVERSION CYCLE |
DAYS |
109.46 |
105.57 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.78 |
95.50 |
|
SELLING & ADMINISTRATION |
% |
2.29 |
2.85 |
|
INTEREST |
% |
0.64 |
0.62 |
|
GROSS PROFIT MARGIN |
% |
4.56 |
4.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.26 |
2.04 |
|
NET PROFIT MARGIN |
% |
1.13 |
0.95 |
|
RETURN ON EQUITY |
% |
9.53 |
5.29 |
|
RETURN ON ASSET |
% |
2.47 |
2.06 |
|
EARNING PER SHARE |
BAHT |
14.22 |
7.14 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.86 |
1.57 |
|
TIME INTEREST EARNED |
TIMES |
3.51 |
3.28 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
66.64 |
|
|
OPERATING PROFIT |
% |
84.84 |
|
|
NET PROFIT |
% |
99.22 |
|
|
FIXED ASSETS |
% |
125.90 |
|
|
TOTAL ASSETS |
% |
66.20 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.56 |
Deteriorated |
Industrial Average |
9.66 |
|
Net Profit Margin |
1.13 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
2.47 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
9.53 |
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. The company's figure is 4.56%. 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. Net Profit Margin ratio is 1.13%,
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
2.47%, 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 9.53%, 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 |
1.32 |
Satisfactory |
Industrial Average |
1.72 |
|
Quick Ratio |
1.23 |
|
|
|
|
Cash Conversion Cycle |
109.46 |
|
|
|
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 1.32 times in 2011, decrease from 1.66 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 1.23 times in 2011,
decrease from 1.5 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 110 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
2.86 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
3.51 |
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 3.52 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 0.74 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 |
105.15 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
2.18 |
Impressive |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
12.44 |
|
|
|
|
Inventory Turnover |
29.33 |
Impressive |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
126.15 |
|
|
|
|
Receivables Turnover |
2.89 |
Satisfactory |
Industrial Average |
3.31 |
|
Payables Conversion Period |
29.14 |
|
|
|
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.
-
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.55.33 |
|
|
1 |
Rs.86.55 |
|
Euro |
1 |
Rs.67.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.