MIRA
INFORM REPORT
|
Report Date : |
18.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
EXOTICAGEMS
CO., LTD. |
|
|
|
|
Registered Office : |
18th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
27.04.2006 |
|
|
|
|
Com. Reg. No.: |
0105549053470 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer
and distributor of gemstone
products |
|
|
|
|
No. of Employees : |
09 |
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 : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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
EXOTICAGEMS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 18th FLOOR,
JEWELRY TRADE CENTER
BUILDING,
919/234 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-1291
FAX :
[66] 2630-1294
E-MAIL
ADDRESS : info@exoticagems.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549053470
TAX
ID NO. : 3032186346
CAPITAL REGISTERED : BHT. 4,900,000
CAPITAL PAID-UP : BHT. 4,900,000
SHAREHOLDER’S PROPORTION : THAI :
51.22%
BRAZILIAN :
48.78%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. TONY MARLE
DINIZ BICALHO, BRAZILIAN
MANAGING DIRECTOR
NO.
OF STAFF : 9
LINES
OF BUSINESS : GEMSTONE PRODUCTS
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 April 27,
2006 as a
private limited company under
the registered name
EXOTICAGEMS CO., LTD.,
by Thai and
Brazilian, with the business objective to import
and distribute various
kinds of gemstones for
jewelry industry. It
currently employs 9
staff.
The
subject’s registered address
is 18th Floor,
Jewelry Trade Center
Building, 919/234
Silom
Road, Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tony Marle Diniz
Bicalho |
|
Brazilian |
40 |
|
Ms. Thipwan Piriyawat |
|
Thai |
42 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Tony Marle Diniz
Bicalho is the
Managing Director.
He is Brazilian
nationality with the
age of 40
years old.
Ms. Thipwan Piriyawat is
the Assistant Managing
Director.
She is Thai
nationality with the
age of 42
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
gemstones such as Amethyst,
Ameterine, Andalusite, Apatite, Aquamarine, Chalcedony, Citrine, Fluorite,
Garnet, Goshenite, Iolite, Kunzite,
Imperial Topaz, Labradorite,
Morganite, Peridot, Quarz, Rubellite, Ruby, Scapolite, Sphene,
Tourmaline, Zircon Stone and etc., supply to jewelry production
industry.
PURCHASE
90%
of the products
is imported from
Brazil and Hong
Kong, the remaining
10% is purchased
from local supplier.
SALES
100% of the
products is sold
locally by wholesale
and retail to
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.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
BANKING
Thanachart
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 9 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Branch:
Ground
Floor, Jewelry Trade
Center Building, 919/237
Silom Rd., Silom,
Bangrak, Bangkok 10500.
COMMENT
The
subject had slow business
in the year
2011 according to
various factors that diluted
consumer purchasing power.
Through the difficult time
during the floods
in the last
quarter and after flood
relief had declined
domestic spending for
luxury goods. General
consumer goods have also
continued increasing that consumers
have to be
carefully on their
spending.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100
each.
On
April 8, 2011,
the registered capital
was decreased to Bht.
4,900,000 divided into
49,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Thipwan Piriyawat Nationality: Thai Address : 420
Charansanitwong Rd., Bangyikhan,
Bangplad, Bangkok |
25,099 |
51.20 |
|
Mr. Tony Marle Diniz
Bicalho Nationality: Brazilian Address : 919/234
Silom Rd., Silom,
Bangrak, Bangkok |
23,900 |
48.78 |
|
Mrs. Lar Piriyawat Nationality: Thai Address : 32/136
T. Samrong, A. Muang, Samutprakarn |
1 |
0.02 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
25,100 |
51.22 |
|
Foreign - Brazilian |
1 |
23,900 |
48.78 |
|
Total |
3 |
49,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Suvimol Manachitprasert No.
6358
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2011 & 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
430,806.81 |
183,377.64 |
|
Trade Accounts Receivable |
2,918,786.29 |
5,935,319.04 |
|
Inventories |
175,252.34 |
696,009.49 |
|
Other Current Assets
|
483,410.94 |
98,164.64 |
|
|
|
|
|
Total Current Assets
|
4,008,256.38 |
6,912,870.81 |
|
Long-term Loan to Related Person
|
257,449.44 |
932,629.44 |
|
Fixed Assets |
206,898.62 |
148,948.97 |
|
Total Assets |
4,472,604.44 |
7,994,449.22 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
670,811.85 |
704,262.12 |
|
Short-term Loan from Person
Related |
400,000.00 |
- |
|
Other Current Liabilities |
207,141.61 |
2,021,649.41 |
|
|
|
|
|
Total Current Liabilities |
1,277,953.46 |
2,725,911.53 |
|
Total Liabilities |
1,277,953.46 |
2,725,911.53 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 49,000 shares |
4,900,000.00 |
4,900,000.00 |
|
|
|
|
|
Capital Paid |
4,900,000.00 |
4,900,000.00 |
|
Retained Earning Unappropriated |
[1,705,349.02] |
[731,462.31] |
|
Total Shareholders' Equity |
3,194,650.98 |
5,268,537.69 |
|
Total Liabilities & Shareholders' Equity |
4,472,604.44 |
7,994,449.22 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales Income |
6,733,364.90 |
7,356,713.43 |
|
Other Income |
99,649.25 |
20,163.29 |
|
Total Sales |
6,833,014.15 |
7,376,876.72 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,030,869.49 |
3,483,607.78 |
|
Administrative Expenses |
4,764,061.61 |
3,611,189.92 |
|
Total Expenses |
7,794,931.10 |
7,094,797.70 |
|
Profit / [Loss] before Income
Tax |
[961,916.95] |
282,079.02 |
|
Income Tax |
[11,969.76] |
[113,183.14] |
|
|
|
|
|
Net Profit / [Loss] |
[973,886.71] |
168,895.88 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.14 |
2.54 |
|
QUICK RATIO |
TIMES |
2.62 |
2.24 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
32.54 |
49.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.51 |
0.92 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
21.11 |
72.93 |
|
INVENTORY TURNOVER |
TIMES |
17.29 |
5.01 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
158.22 |
294.48 |
|
RECEIVABLES TURNOVER |
TIMES |
2.31 |
1.24 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
80.78 |
73.79 |
|
CASH CONVERSION CYCLE |
DAYS |
98.54 |
293.61 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
45.01 |
47.35 |
|
SELLING & ADMINISTRATION |
% |
70.75 |
49.09 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
56.47 |
52.92 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(14.29) |
3.83 |
|
NET PROFIT MARGIN |
% |
(14.46) |
2.30 |
|
RETURN ON EQUITY |
% |
(30.48) |
3.21 |
|
RETURN ON ASSET |
% |
(21.77) |
2.11 |
|
EARNING PER SHARE |
BAHT |
(19.88) |
3.45 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.34 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.40 |
0.52 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(8.47) |
|
|
OPERATING PROFIT |
% |
(441.01) |
|
|
NET PROFIT |
% |
(676.62) |
|
|
FIXED ASSETS |
% |
38.91 |
|
|
TOTAL ASSETS |
% |
(44.05) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
56.47 |
Impressive |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(14.46) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(21.77) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(30.48) |
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 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 56.47%. 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 -14.46%.
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 -21.77%.
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 -30.48%.
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 |
3.14 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
2.62 |
|
|
|
|
Cash Conversion Cycle |
98.54 |
|
|
|
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 3.14 times in 2011, increased from 2.54 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 2.62 times in 2011,
increased from 2.24 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 99 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.29 |
Impressive |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
0.40 |
Impressive |
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 0.29 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 |
32.54 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.51 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
21.11 |
|
|
|
|
Inventory Turnover |
17.29 |
Impressive |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
158.22 |
|
|
|
|
Receivables Turnover |
2.31 |
Acceptable |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
80.78 |
|
|
|
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.54.29 |
|
UK Pound |
1 |
Rs.86.61 |
|
Euro |
1 |
Rs.68.87 |
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.