MIRA
INFORM REPORT
|
Report Date : |
03.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRISHA JEWELS
CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
2010 |
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Date of Incorporation : |
2007 |
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Com. Reg. No.: |
0105550010703 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Diamonds, Gems And Jewelry Products, Importer, Distributor And Exporter |
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No. of Employees : |
2 |
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 |
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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 – 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
PRISHA JEWELS
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 194
PETCHKASEM ROAD, BANGKAENUA,
BANGKAE, BANGKOK
10160
TELEPHONE
: [66] 2454-0853
FAX :
[66] 2454-0852
E-MAIL ADDRESS : prishajewels@yahoo.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2007
REGISTRATION NO. : 0105550010703
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP
: BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
61%
INDIAN
: 39%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR. KRUNAL DINESHKUMAR
BARVALIYA,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 2
LINES OF BUSINESS : DIAMONDS, GEMS
AND JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
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
January 29, 2007 as
a private limited
company under the registered
name PRISHA JEWELS
CO., LTD., by
Thai and Indian groups, with the
business objective to be engaged
in diamonds and jewelry
trading business. It currently
employs 2 staff.
The subject’s
registered address was
initially located at
194/732 Bangkae Condotown, Petchkasem Rd.,
Near Soi 62/4, Opp. Talat Bangkae, Bangkaenua, Bangkae, Bangkok
10160.
In 2011,
its registered address
had been changed
to 194 Petchkasem Rd., Bangkaenua, Bangkae, Bangkok 10160, by
the Bangkae Distric
Office, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sandeep Ramniklal Shekhada |
|
Indian |
32 |
|
Mr. Krunal Dineshkumar Barvaliya |
|
Indian |
32 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Krunal Dineshkumar Barvaliya is
the Managing Director.
He is Indian
nationality with the
age of 32
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
of diamonds and
gemstones, as well
as exporting diamonds
and gemstones jewelry
products, such as
necklace, ring, earrings,
pendant, color stone
brooch and bracelet.
PURCHASE
Diamonds and
gemstones are purchased
from suppliers in
both domestic and overseas, mainly
India.
SALES
Diamonds and gemstones
are sold locally
to traders and
manufacturers, whereas diamonds
and gemstones jewelry
products are exported to
U.K., India 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 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 T/T
Exports are against
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
employs 2 staff.
LOCATION DETAILS
The premise
is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The subject
is a small operator of diamond
and jewelry trader.
The products are
imported from overseas
for domestic jewelry
productions as well
as exporting local jewelry
products to overseas
traders. Its business
remains small and
growth is at
slow pace.
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, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sandeep Ramniklal Shekhada Nationality: Indian Address : 62/3
Surawong
Rd., Suriyawongse,
Bangrak,
Bangkok |
15,600 |
39.00 |
|
Ms. Sunantha Kasurong Nationality: Thai Address : 411/30
Krungthep-Kreetha Rd.,
Huamark,
Bangkapi,
Bangkok |
4,400 |
11.00 |
|
Mrs. Thabthim Sukcharoen Nationality: Thai Address : 65 Somdejprachaotaksin
Rd.,
Bukkalo,
Thonburi,
Bangkok |
4,000 |
10.00 |
|
Mr. Veerayuth Or-ake Nationality: Thai Address : 1158
Charansanitwong Rd.,
Wadthaphra,
Bangkokyai,
Bangkok |
4,000 |
10.00 |
|
Ms. Patcharin Chantarima Nationality: Thai Address : 2497/1
Suebsiri
Rd., Naimuang,
Muang,
Nakornratchasima |
4,000 |
10.00 |
|
Mr. Anont Srisanit Nationality: Thai Address : 139/1
Moo 1, Donsalaeb, Huaykrachao,
Kanchanaburi |
4,000 |
10.00 |
|
Ms. Chindaporn Juthapakdeeprasert Nationality: Thai Address : 518 Phaholyothin
Rd., Ladprao,
Jatujak,
Bangkok |
4,000 |
10.00 |
Total
Shareholders : 7
Share Structure
[as at April
30, 2011]
|
Nationality |
Shareholders |
No.
of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
24,400 |
61.00 |
|
Foreign - Indian |
1 |
15,600 |
39.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Duangkamol Chaichanakajorn No.
3581
Note
The 2011 financial
statement has yet
been 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 and Cash
Equivalent |
679,730.38 |
20,450.10 |
|
Inventories |
241,111.52 |
296,849.79 |
|
Other Current Assets |
65,750.00 |
65,750.00 |
|
|
|
|
|
Total Current Assets |
986,591.90 |
383,049.89 |
|
|
|
|
|
Long-term Loan to
Related Company |
- |
400,000.00 |
|
Fixed Assets
|
128,999.77 |
158,424.63 |
|
Total Assets |
1,115,591.67 |
941,474.52 |
LIABILITIES
& SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
248,106.25 |
- |
|
Other Current Liabilities |
17,112.98 |
33,474.98 |
|
|
|
|
|
Total Current Liabilities |
265,219.23 |
33,474.98 |
|
Total Liabilities |
265,219.23 |
33,474.98 |
|
|
|
|
|
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 |
[3,149,627.56] |
[3,092,000.46] |
|
Total Shareholders' Equity |
850,372.44 |
907,999.54 |
|
Total Liabilities
& Shareholders' Equity |
1,115,591.67 |
941,474.52 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
1,607,034.93 |
1,764,473.00 |
|
Other Income |
- |
12,006.12 |
|
Total Revenues |
1,607,034.93 |
1,776,479.12 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
703,550.62 |
1,438,981.21 |
|
Selling Expenses |
3,339.92 |
- |
|
Administrative
Expenses |
957,771.49 |
1,536,095.69 |
|
Total Expenses |
1,664,662.03 |
2,975,076.90 |
|
|
|
|
|
Profit / [Loss]
before Financial Cost |
[57,627.10] |
[1,198,597.78] |
|
Financial Cost |
- |
[2,621.12] |
|
|
|
|
|
Net Profit / [Loss]
|
[57,627.10] |
[1,201,218.90] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.72 |
11.44 |
|
QUICK RATIO |
TIMES |
2.56 |
0.61 |
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
12.46 |
11.14 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.44 |
1.87 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
125.09 |
75.30 |
|
INVENTORY TURNOVER |
TIMES |
2.92 |
4.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
128.72 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
(3.63) |
75.30 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
43.78 |
81.55 |
|
SELLING & ADMINISTRATION |
% |
59.81 |
87.06 |
|
INTEREST |
% |
- |
0.15 |
|
GROSS PROFIT MARGIN |
% |
56.22 |
19.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.59) |
(67.93) |
|
NET PROFIT MARGIN |
% |
(3.59) |
(68.08) |
|
RETURN ON EQUITY |
% |
(6.78) |
(132.29) |
|
RETURN ON ASSET |
% |
(5.17) |
(127.59) |
|
EARNING PER SHARE |
BAHT |
(1.44) |
(30.03) |
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.24 |
0.04 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.31 |
0.04 |
|
TIME INTEREST EARNED |
TIMES |
- |
(457.28) |
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
SALES GROWTH |
% |
(8.92) |
|
|
OPERATING PROFIT |
% |
(95.19) |
|
|
NET PROFIT |
% |
95.20 |
|
|
FIXED ASSETS |
% |
(18.57) |
|
|
TOTAL ASSETS |
% |
18.49 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
56.22 |
Impressive |
Industrial
Average |
9.15 |
|
Net Profit Margin |
(3.59) |
Deteriorated |
Industrial
Average |
0.09 |
|
Return on Assets |
(5.17) |
Deteriorated |
Industrial
Average |
0.15 |
|
Return on Equity |
(6.78) |
Deteriorated |
Industrial
Average |
0.40 |
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 56.22%. 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. The company's
figure is -3.59%. 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 -5.17%.
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 -6.78%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
RATIO
|
Current Ratio |
3.72 |
Impressive |
Industrial
Average |
1.80 |
|
Quick Ratio |
2.56 |
|
|
|
|
Cash Conversion Cycle |
(3.63) |
|
|
|
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 3.72 times in 2010, decreased from 11.44 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 2.56
times in 2010, increased from 0.61 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 -4 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
RATIO
|
Debt Ratio |
0.24 |
Impressive |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
0.31 |
Impressive |
Industrial
Average |
1.54 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.87 |
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 0.24 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY
RATIO
|
Fixed Assets Turnover |
12.46 |
Impressive |
Industrial
Average |
10.60 |
|
Total Assets Turnover |
1.44 |
Satisfactory |
Industrial
Average |
1.57 |
|
Inventory Conversion Period |
125.09 |
|
|
|
|
Inventory Turnover |
2.92 |
Impressive |
Industrial
Average |
2.35 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial
Average |
3.50 |
|
Payables Conversion Period |
128.72 |
|
|
|
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 Uptrend
-
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.52.93 |
|
|
1 |
Rs.85.85 |
|
Euro |
1 |
Rs.69.94 |
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.