MIRA
INFORM REPORT
|
Report Date : |
07.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.R.B.
GEMS [ |
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Registered Office : |
Room 202, 2nd Floor,
T.D. Building, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
05.02.1992 |
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Com. Reg. No.: |
0105535020345 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
importer and distributor of diamonds sand precious stones |
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No. of Employees : |
02 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – 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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
P.R.B. GEMS [THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
202, 2nd FLOOR,
T.D. BUILDING,
14-16 MAHESAK ROAD,
SURIYAWONGSE,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2235-4403,
2236-9427, 081 810-2879
FAX :
[66] 2236-9426
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535020345
TAX
ID NO. : 3011086544
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SANJEEV BILALA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND PRECIOUS STONES
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 February 5,
1992 as a
private limited company
under the registered
name P.R.B. GEMS
[THAILAND] CO., LTD.
by Thai and Indian
groups, with the
business objective to
import and distribute
diamonds and precious stones
for jewelry industry.
It currently employs
2 staff.
The
subject’s registered address
is Room 202, 2nd Flr.,
T.D. Building, 14-16 Mahesak Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
Mr. Sanjeev Bilala
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sanjeev Bilala is
the Managing Director.
He is Indian
nationality with the
age of 45
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
of diamonds and
precious stones for
jewelry business.
IMPORT
100%
of the products
is imported from
India and Hong
Kong.
SALES
100% of the products is
sold locally to
wholesalers, 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.
Imports are by
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
2 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
Decline
consumption in domestic
market has caused
to decrease subject’s
sales, though, the
impact from massive
floods in the
last quarter of 2011 had
pressured subject’s performance.
Sales
in 2012 has
been improved at
slow pace.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 2,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2002]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sanjeev Bilala Nationality: Indian Address : India
|
6,000 |
30.00 |
|
Mr. Raj Kumar Bilala Nationality: Indian Address : India |
3,800 |
19.00 |
|
Mr. Kijja Suwannont Nationality: Thai Address : 11/124
Moo 1, Wangthonglang,
Bangkapi, Bangkok |
2,040 |
10.20 |
|
Mr. Bancha Urai Nationality: Thai Address :
998/3 Moo 6, T. Samphraya, A.
Muang
Cha-um, Petchburi |
2,040 |
10.20 |
|
Mr. Muza Panya Nationality: Thai Address : 47/5
Moo 5, Thungkru,
Ratburana, Bangkok |
2,040 |
10.20 |
|
Mr. Pachara Saisaengthong Nationality: Thai Address : 39/4
Moo 5, Bangwa,
Pasicharoen, Bangkok |
2,040 |
10.20 |
|
Mr. Thosapol Im-ampai Nationality: Thai Address : 359/20
Moo 5, T. Pakthongchai, A.
Pakthongchai,
Nakornratchasima |
2,040 |
10.20 |
Total Shareholders : 7
Share
Structure [as at
April 30, 2002]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
10,200 |
51.00 |
|
Foreign-Indian |
2 |
9,800 |
49.00 |
|
Total |
7 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Saengchai
U-larnpanichkul No. 4649
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
28,366.15 |
41,095.79 |
|
Trade Accounts & Other Receivable |
4,916,490.11 |
7,774,593.60 |
|
Revenue Department Receivable |
73,074.60 |
21,086.95 |
|
Inventories |
2,461,957.62 |
1,936,338.27 |
|
|
|
|
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Total Current Assets
|
7,479,888.48 |
9,773,114.61 |
|
|
|
|
|
Fixed Assets |
4.00 |
4.00 |
|
Other Non-current Assets |
69,533.68 |
69,533.68 |
|
Total Assets |
7,549,426.16 |
9,842,652.29 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other Payable |
1,421,689.72 |
3,942,483.99 |
|
Accrued Income Tax |
8,513.85 |
17,727.95 |
|
|
|
|
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Total Current Liabilities |
1,430,203.57 |
3,960,211.94 |
|
Total Liabilities |
1,430,203.57 |
3,960,211.94 |
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|
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Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning - Unappropriated |
4,119,222.59 |
3,882,440.35 |
|
Total Shareholders' Equity |
6,119,222.59 |
5,882,440.35 |
|
Total Liabilities & Shareholders' Equity |
7,549,426.16 |
9,842,652.29 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
5,289,050.59 |
6,260,659.73 |
|
Gain on Exchange Rate |
195,509.69 |
- |
|
Other Income |
89,872.44 |
89,484.76 |
|
Total Revenues |
5,574,432.72 |
6,350,144.49 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
4,235,812.99 |
4,794,957.48 |
|
Selling Expenses |
352,394.36 |
218,199.29 |
|
Administrative Expenses |
727,429.28 |
1,074,613.95 |
|
Total Expenses |
5,315,636.63 |
6,087,770.72 |
|
|
|
|
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Profit / [Loss] before Income Tax |
258,796.09 |
262,373.77 |
|
Income Tax |
[22,013.85] |
[25,227.95] |
|
Net Profit / [Loss] |
236,782.24 |
237,145.82 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
5.23 |
2.47 |
|
QUICK RATIO |
TIMES |
3.51 |
1.98 |
|
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|
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ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,322,262.65 |
1,565,164.93 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.70 |
0.64 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
212.15 |
147.40 |
|
INVENTORY TURNOVER |
TIMES |
1.72 |
2.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
339.29 |
453.26 |
|
RECEIVABLES TURNOVER |
TIMES |
1.08 |
0.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
122.51 |
300.11 |
|
CASH CONVERSION CYCLE |
DAYS |
428.93 |
300.55 |
|
|
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PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
80.09 |
76.59 |
|
SELLING & ADMINISTRATION |
% |
20.42 |
20.65 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
25.31 |
24.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.89 |
4.19 |
|
NET PROFIT MARGIN |
% |
4.48 |
3.79 |
|
RETURN ON EQUITY |
% |
3.87 |
4.03 |
|
RETURN ON ASSET |
% |
3.14 |
2.41 |
|
EARNING PER SHARE |
BAHT |
11.84 |
11.86 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.19 |
0.40 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.23 |
0.67 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(15.52) |
|
|
OPERATING PROFIT |
% |
(1.36) |
|
|
NET PROFIT |
% |
(0.15) |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
(23.30) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.31 |
Impressive |
Industrial
Average |
9.17 |
|
Net Profit Margin |
4.48 |
Impressive |
Industrial
Average |
(0.11) |
|
Return on Assets |
3.14 |
Impressive |
Industrial
Average |
(0.16) |
|
Return on Equity |
3.87 |
Impressive |
Industrial
Average |
(0.32) |
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 25.31%. 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 4.48%, 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 3.14%, 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 3.87%, 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 |
5.23 |
Impressive |
Industrial
Average |
2.38 |
|
Quick Ratio |
3.51 |
|
|
|
|
Cash Conversion Cycle |
428.93 |
|
|
|
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 5.23 times in 2011, increased from 2.47 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 3.51 times in 2011,
increased from 1.98 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 429 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.19 |
Impressive |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
0.23 |
Impressive |
Industrial
Average |
1.47 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.59 |
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 0.19 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 |
1,322,262.65 |
Impressive |
Industrial
Average |
6.08 |
|
Total Assets Turnover |
0.70 |
Acceptable |
Industrial
Average |
1.23 |
|
Inventory Conversion Period |
212.15 |
|
|
|
|
Inventory Turnover |
1.72 |
Impressive |
Industrial
Average |
1.38 |
|
Receivables Conversion Period |
339.29 |
|
|
|
|
Receivables Turnover |
1.08 |
Deteriorated |
Industrial
Average |
3.38 |
|
Payables Conversion Period |
122.51 |
|
|
|
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 Downtrend
DIAMOND INDUSTRY –
-
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.54.60 |
|
UK Pound |
1 |
Rs.87.31 |
|
Euro |
1 |
Rs.69.86 |
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.