MIRA INFORM REPORT
|
Report Date : |
22.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
A M G
CO., LTD. |
|
|
|
|
Registered Office : |
9th A/1
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
15.06.2011 |
|
|
|
|
Date of Incorporation : |
23.06.2006 |
|
|
|
|
Com. Reg. No.: |
0105549075830 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of business : |
Importer,
distributor and exporter of diamonds and
jewelry products |
|
|
|
|
No. of Employees
: |
5 |
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) |
|
|
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
A M G CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 9th A/1 FLOOR,
139
TELEPHONE : [66] 2635-3155-7
FAX :
[66] 2635-3158
E-MAIL
ADDRESS : arung8@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549075830
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI : 51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : JUNE
15
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ARUN GUPTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : EARLY
STAGE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on June 23,
2006 as a
private limited company under
the name style
A M G CO., LTD.,
by Thai and Indian groups,
with the business
objective to be engaged
in diamond and jewelry
trading business. It
currently employs 5
staff.
The
subject’s registered address is 9th A/1 Flr., Sethiwan
Tower, 139 Pan Rd., Silom,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
Mr. Arun Gupta
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Arun Gupta 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
various types of
diamonds, gemstones and
jewelry products.
PURCHASE
100% of Thai’s
jewelry products is
purchased from local
manufacturers.
IMPORT
The
products are imported
from India and
Hong Kong.
SALES
The imported products
are supplied to
local jewelry manufacturers
and traders.
EXPORT
The
local products are
exported to Hong Kong,
Singapore, Australia, India, U.S.A.
and the countries
in Europe.
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 credit term
of 30 days.
Local bills are
paid by cash
or on the
credit term of 30
days.
Imports are by L/C
at
sight or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office,
333 Silom Rd.,
Silom, Bangrak, Bangkok]
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.
REMARK
CREDIT
OF US$ 1,500,000 SHOULD
BE IN ORDER
COMMENT
Economic slowdown
has resulted with
decline consumption of
jewelry products including
diamond and gemstones both in domestic and export markets. Subject reported significantly dropped of
sales sale during
2008-2009.
Since the year 2010
market demand of diamonds and precious
stones has continued
risen, as well
as expanding into
the first six month
of 2011. Unfortunately
sales sluggish has
been occurred since
the prolong of
financial crisis in European market
and massive floods in Thailand
during August to November.
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
October 14, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Arun Gupta Nationality: Indian Address : 126/57
North Sathorn Rd.,
Silom, Bangrak, Bangkok |
11,600 |
29.00 |
|
Mrs. Monika Gupta Nationality: Indian Address : 126/57
North Sathorn Rd.,
Silom, Bangrak, Bangkok |
8,000 |
20.00 |
|
Mr. Apinop Munchanda Nationality: Thai Address : 550/146
Asoke-Dindaeng Rd., Dindaeng,
Bangkok |
5,080 |
12.70 |
|
Ms. Jiraporn Chanloy Nationality: Thai Address : 244/12
Prannok Rd., Siriraj,
Bangkoknoi, Bangkok |
3,830 |
9.575 |
|
Ms. Namfon Khamkwao Nationality: Thai Address : 265/2
Moo 2, Suksawas
Rd., Bangpakok,
Rajburana, Bangkok |
3,830 |
9.575 |
|
Ms. Supansa Sararat Nationality: Thai Address : 114/2
Moo 6, Dontako,
Thasala,
Nakornsrithammarat |
3,830 |
9.575 |
|
Ms. Kornchaya Munchanda Nationality: Thai Address : 550/146
Asoke-Dindaeng Rd., Dindaeng,
Bangkok |
3,830 |
9.575 |
Total Shareholders : 7
Share Structure [as
at October 14,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
20,400 |
51.00 |
|
Foreign |
2 |
19,600 |
49.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Chittinan
Ariyapongpaisal No. 10212
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
15, 2011 & 2010
were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
11,024,468.89 |
3,056,801.88 |
|
Trade Accounts & Notes
Receivable |
41,428,825.17 |
37,343,613.21 |
|
Inventories |
20,035,609.76 |
20,919,895.88 |
|
Other Current Assets |
99,337.89 |
78,158.06 |
|
|
|
|
|
Total Current Assets
|
72,588,241.71 |
61,398,469.03 |
|
Fixed Account |
2,121,210.45 |
2,110,762.18 |
|
Fixed Assets |
650,359.73 |
995,026.74 |
|
Other Assets |
105,700.00 |
105,700.00 |
|
Total Assets |
75,465,511.89 |
64,609,957.95 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Notes Payable |
44,977,563.13 |
39,935,850.48 |
|
Accrued Income Tax |
935,719.51 |
532,687.37 |
|
Short-term Loan from Related
Person |
510,898.52 |
293,970.36 |
|
Accrued Expenses |
2,275,096.41 |
2,204,688.29 |
|
Other Current Liabilities |
52,975.33 |
12,436.31 |
|
|
|
|
|
Total Current Liabilities |
48,752,252.90 |
42,979,632.81 |
|
Total Liabilities |
48,752,252.90 |
42,979,632.81 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning –
Unappropriated |
22,713,258.99 |
17,630,325.14 |
|
Total Shareholders' Equity |
26,713,258.99 |
21,630,325.14 |
|
Total Liabilities & Shareholders' Equity |
75,465,511.89 |
64,609,957.95 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
162,180,636.44 |
94,346,188.34 |
|
Gain on Exchange
Rate |
936,839.71 |
90,096.01 |
|
Other Income |
224,957.90 |
217,148.12 |
|
Total Sales |
163,342,434.05 |
94,653,432.47 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
151,945,655.35 |
86,284,704.39 |
|
Administrative Expenses |
4,578,019.80 |
4,388,515.53 |
|
Total Expenses |
156,523,675.15 |
90,673,219.92 |
|
Profit / [Loss] before Income
Tax |
6,818,758.90 |
3,980,212.55 |
|
Income Tax |
[1,735,825.05] |
[932,792.39] |
|
|
|
|
|
Net Profit / [Loss] |
5,082,933.85 |
3,047,420.16 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.49 |
1.43 |
|
QUICK RATIO |
TIMES |
1.08 |
0.94 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
249.37 |
94.82 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.15 |
1.46 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
48.13 |
88.49 |
|
INVENTORY TURNOVER |
TIMES |
7.58 |
4.12 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
93.24 |
144.47 |
|
RECEIVABLES TURNOVER |
TIMES |
3.91 |
2.53 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
108.04 |
168.94 |
|
CASH CONVERSION CYCLE |
DAYS |
33.32 |
64.03 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.69 |
91.46 |
|
SELLING & ADMINISTRATION |
% |
2.82 |
4.65 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
7.03 |
8.87 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.20 |
4.22 |
|
NET PROFIT MARGIN |
% |
3.13 |
3.23 |
|
RETURN ON EQUITY |
% |
19.03 |
14.09 |
|
RETURN ON ASSET |
% |
6.74 |
4.72 |
|
EARNING PER SHARE |
BAHT |
127.07 |
76.19 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.65 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.83 |
1.99 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
71.90 |
|
|
OPERATING PROFIT |
% |
71.32 |
|
|
NET PROFIT |
% |
66.79 |
|
|
FIXED ASSETS |
% |
(34.64) |
|
|
TOTAL ASSETS |
% |
16.80 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
7.03 |
Deteriorated |
Industrial
Average |
22.98 |
|
Net Profit Margin |
3.13 |
Impressive |
Industrial
Average |
(32.51) |
|
Return on Assets |
6.74 |
Impressive |
Industrial
Average |
(6.68) |
|
Return on Equity |
19.03 |
Impressive |
Industrial
Average |
(7.92) |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 7.03%. 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
3.13%, 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
6.74%, 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.
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 19.03%, 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 |
1.49 |
Deteriorated |
Industrial
Average |
45.32 |
|
Quick Ratio |
1.08 |
|
|
|
|
Cash Conversion Cycle |
33.32 |
|
|
|
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 1.49 times in 2011, increased from 1.43 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 1.08 times in 2011,
increased from 0.94 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 34 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.65 |
Impressive |
Industrial
Average |
0.91 |
|
Debt to Equity Ratio |
1.83 |
Acceptable |
Industrial
Average |
1.88 |
|
Times Interest Earned |
- |
|
Industrial
Average |
(10.24) |
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 0.65 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 |
249.37 |
Deteriorated |
Industrial
Average |
48,212.31 |
|
Total Assets Turnover |
2.15 |
Impressive |
Industrial
Average |
1.32 |
|
Inventory Conversion Period |
48.13 |
|
|
|
|
Inventory Turnover |
7.58 |
Impressive |
Industrial
Average |
6.86 |
|
Receivables Conversion Period |
93.24 |
|
|
|
|
Receivables Turnover |
3.91 |
Deteriorated |
Industrial
Average |
13.34 |
|
Payables Conversion Period |
108.04 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
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.55.86 |
|
UK Pound |
1 |
Rs.87.93 |
|
Euro |
1 |
Rs.70.88 |
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.