MIRA
INFORM REPORT
|
Report Date : |
06.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
TWENTY
TWO GEMS CO.,
LTD. |
|
|
|
|
Registered Office : |
4th
Floor, Building C,
Gemopolis Industrial Estate,
40/2 Soi Sukhapiban
2 [Soi 31], Sukhapiban 2 Road, Dokmai,
Prawet, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
29.09.2010 |
|
|
|
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Com. Reg. No.: |
0105553120313 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, distributor and exporter of gemstones and jewelry products |
|
|
|
|
No. of Employees : |
03 employees |
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 : |
Small Company |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
thailand - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as
it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range
between 3.8% and 5.7%.
|
Source : CIA |
Company name
TWENTY TWO GEMS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 4th FLOOR,
BUILDING C,
GEMOPOLIS
INDUSTRIAL ESTATE,
40/2
SOI SUKHAPIBAN 2
[SOI 31],
SUKHAPIBAN 2 ROAD, DOKMAI,
PRAWET,
BANGKOK
10250, THAILAND
TELEPHONE : [66] 2727-0297,
2727-0521
FAX :
[66] 2727-0522
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553120313
TAX
ID NO. : 3034122885
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
MON-ANONG PONGKERATIKARN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : GEMSTONES 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 September 29,
2010 as a
private limited company under
the registered name
TWENTY TWO GEMS
CO., LTD., by Thai
groups, with the
business objective to import
and export gemstones
and jewelry products.
It currently employs
3 staff.
The
subject’s registered address
is 4th Flr.,
Building C, Gemopolis
Industrial Estate, 40/2
Soi Sukhapiban 2 [Soi
31], Sukhapiban 2 Rd., Dokmai,
Prawet, Bangkok 10250,
and this is
the subject’s current
operation address.
THE
BOARD OF
DIRECTOR
Mrs. Mon-anong Pongkeratikarn
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Mon-anong Pongkeratikarn is
the Managing Director.
She is Thai
nationality with the
age of 47 years
old.
BUSINESS
OPERATIONS
The subject
is engaged in trading business,
to import and supply various
types of diamonds,
gemstones, and jewelry
with gold and
diamond products, as
well as export
Thai gold and
diamond jewelry products.
PURCHASE
The products
are purchased from
suppliers and manufacturers
both domestic and
overseas, mainly in India
and Hong Kong.
SALES [LOCAL]
The products are
sold locally by
wholesale to manufacturers.
EXPORT
Thai jewelry products
are exported to
Hong Kong, Republic
of China and
Singapore.
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.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 3
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in jewelry
industrial area.
COMMENT
The subject
was formed in September 2010 as an
importer and exporter
of gemstones and
jewelry products. Subject reported
slow sales in 2011
due to it
was the first
year operation, while
in the year
2012 its sales
have slightly improved
from the previous year’s level.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Mon-anong Pongkeratikarn Nationality: Thai Address : 11
Soi Sutthiporn, Dindaeng,
Dindaeng, Bangkok |
6,000 |
60.00 |
|
Mr. Viwat Pongkeratikarn Nationality: Thai Address : 550/217
Asoke-Dindaeng Rd., Dindaeng, Bangkok |
2,000 |
20.00 |
|
Mr. Chatchanont Pongkeratikarn Nationality: Thai Address : 550/217
Asoke-Dindaeng Rd., Dindaeng,
Bangkok |
2,000 |
20.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Pimvalanch Kaewnate No.
5952
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were :
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
5,491.77 |
961,781.00 |
|
Trade Accounts Receivable |
754,470.00 |
- |
|
Inventories |
2,358,282.49 |
- |
|
Other Current Assets |
7,580.37 |
3,771.36 |
|
|
|
|
|
Total Current Assets
|
3,125,824.63 |
965,552.36 |
|
Fixed Assets |
99,360.70 |
- |
|
Total Assets |
3,225,185.33 |
965,552.36 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
2,455,273.05 |
- |
|
Accrued Expenses |
15,712.00 |
4,714.00 |
|
Advance from Director |
185,842.80 |
- |
|
Other Current Liabilities |
660.00 |
300.00 |
|
|
|
|
|
Total Current Liabilities |
2,657,487.85 |
5,014.00 |
|
Total Liabilities |
2,657,487.85 |
5,014.00 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully
paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning-
Unappropriated |
[432,302.52] |
[39,461.64] |
|
Total Shareholders' Equity |
567,697.48 |
960,538.36 |
|
Total Liabilities & Shareholders' Equity |
3,225,185.33 |
965,552.36 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
5,219,629.39 |
- |
|
Other Income |
368.90 |
2,238.36 |
|
Total Revenues |
5,219,998.29 |
2,238.36 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Services |
5,380,820.93 |
- |
|
Administrative Expenses |
226,657.74 |
41,700.00 |
|
Other Expenses |
3,860.50 |
- |
|
Total Expenses |
5,611,339.17 |
41,700.00 |
|
|
|
|
|
Profit / [loss] before Financial
Cost |
[391,340.88] |
[39,461.64] |
|
Financial Cost |
[1,500.00] |
- |
|
|
|
|
|
Net Profit / [Loss] |
[392,840.88] |
[39,461.64] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.18 |
192.57 |
|
QUICK RATIO |
TIMES |
0.29 |
191.82 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
52.53 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.62 |
- |
|
INVENTORY CONVERSION PERIOD |
DAYS |
159.97 |
- |
|
INVENTORY TURNOVER |
TIMES |
2.28 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
52.76 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
6.92 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
166.55 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
46.18 |
- |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
103.09 |
- |
|
SELLING & ADMINISTRATION |
% |
4.34 |
- |
|
INTEREST |
% |
0.03 |
- |
|
GROSS PROFIT MARGIN |
% |
(3.08) |
- |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(7.50) |
- |
|
NET PROFIT MARGIN |
% |
(7.53) |
- |
|
RETURN ON EQUITY |
% |
(69.20) |
(4.11) |
|
RETURN ON ASSET |
% |
(12.18) |
(4.09) |
|
EARNING PER SHARE |
BAHT |
(39.28) |
(3.95) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.68 |
0.01 |
|
TIME INTEREST EARNED |
TIMES |
(260.89) |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
- |
- |
|
OPERATING PROFIT |
% |
891.70 |
- |
|
NET PROFIT |
% |
(895.50) |
- |
|
FIXED ASSETS |
% |
- |
- |
|
TOTAL ASSETS |
% |
234.02 |
- |
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(3.08) |
Deteriorated |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(7.53) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(12.18) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(69.20) |
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 -3.08%. When compared with
the industry average, the ratio of the company was lower, this indicated that
company may have 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 -7.53%.
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 -12.18%.
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 -69.2%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Stable
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.18 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.29 |
|
|
|
|
Cash Conversion Cycle |
46.18 |
|
|
|
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 1.18 times in 2011, decreased from 192.57 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 0.29 times in 2011,
decreased from 191.82 times, then the company has not enough current assets
that presumably can be quickly converted to cash for pay financial obligations.
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 47 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
4.68 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
(260.89) |
Risky |
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 -260.9 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.82 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
52.53 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.62 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
159.97 |
|
|
|
|
Inventory Turnover |
2.28 |
Impressive |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
52.76 |
|
|
|
|
Receivables Turnover |
6.92 |
Impressive |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
166.55 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.92 and 0.00 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
increased from 2010. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 0 days at the end
of 2010 to 160 days at the end of 2011. This represents a negative trend. And
Inventory turnover has increased from 0 times in year 2010 to 2.28 times in
year 2011.
The company's Total Asset Turnover is calculated as 1.62 times and 0 times
in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
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.54.08 |
|
UK Pound |
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.69.37 |
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.