MIRA
INFORM REPORT
|
Report Date : |
17.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
H.M.V. GEMS
CO., LTD. |
|
|
|
|
Registered Office : |
Room A-8, 3rd Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
11.04.2000 |
|
|
|
|
Com. Reg. No.: |
0105543035950 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
LINE OF BUSINESS : |
ENGAGED IN
IMPORTING AND DISTRIBUTING OF
VARIOUS COLOR GEMSTONES AND SEMI-PRECIOUS STONES
SUCH AS WHITE & BLUE-TOPAZ, AMETHYST,
CITRINE, PERIDOT GEMS,
GARNET, AQUAMARINE AND ETC.,
FOR JEWELRY PRODUCTION. |
|
|
|
|
No. of Employees : |
3 |
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 : |
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 – 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
H.M.V.
GEMS CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
A-8, 3rd FLOOR, BAAN
KHUN PHRA BUILDING,
24
SOI
SILOM 13, SILOM
ROAD, SILOM,
BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2235-3900,
2635-0709, 081 656-6009
FAX :
[66] 2235-3904
E-MAIL
ADDRESS : hari@hmvgems.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0105543035950
TAX
ID NO. : 3030076540
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HARI NATH
GUPTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : GEMSTONES AND
SEMI-PRECIOUS STONES
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFLE
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 11,
2000 as a
private limited company
by Thai and Indian groups,
under the registered
name H.M.V. GEMS
CO., LTD., with
the business objective
is to import
and distribute gemstones
and semi-precious stones
for jewelry industry.
It currently employs
3 staff.
The
subject’s registered address
is Room A-8, 3rd Floor,
Baan Khun Phra
Building, 24 Soi
Silom 13, Silom Rd., Silom,
Bangrak, Bangkok 10500, and this
is the subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hari Nath Gupta |
|
Indian |
48 |
|
Mr. Ashok Kumar Vijaywargia |
|
Indian |
32 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hari Nath Gupta
is the Managing
Director.
He is Indian
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
of various color
gemstones and semi-precious stones
such as white & blue-topaz, amethyst,
citrine, peridot gems,
garnet, aquamarine and etc.,
for jewelry production.
PURCHASE
80%
of the products
is imported from
India, and the
remaining 20% is
purchased from local
suppliers.
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
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.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
3 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 and 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 20,000 shares
of Bht. 100
each with fully
paid.
On
July 10, 2003,
the registered capital
was increased to
Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hari Nath Gupta Nationality: Indian Address : 24
Soi Silom 13,
Silom Rd., Bangrak, Bangkok |
20,000 |
40.00 |
|
Mrs. Temduan Kesakomol Nationality: Thai Address : 24
Trok Vaidee, Silom,
Bangrak, Bangkok |
12,500 |
25.00 |
|
Mrs. Busarakorn Veerawanwarn Nationality: Thai Address : 45
Moo 7, Bangpakok, Rajburana, Bangkok |
6,500 |
13.00 |
|
Mr. Montree Veerawanwarn Nationality: Thai Address : 155
Soi Rajburana 10,
Bangpakok,
Rajburana, Bangkok |
6,500 |
13.00 |
|
Mr. Win Darun Nationality: Indian Address : 24
Soi Silom 13,
Silom Rd., Bangrak, Bangkok |
4,500 |
9.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
25,500 |
51.00 |
|
Foreign-Indian |
2 |
24,500 |
49.00 |
|
Total |
5 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Suthep Trakulviriya No.
7183
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
1,649,624.33 |
168,968.69 |
|
Trade Accounts Receivable
|
31,589,713.57 |
30,634,210.83 |
|
Inventories |
62,744,697.75 |
53,013,635.27 |
|
Other Current Assets
|
110,000.00 |
135,000.00 |
|
|
|
|
|
Total Current Assets
|
96,094,035.65 |
83,951,814.79 |
|
|
|
|
|
Fixed Assets |
676,413.84 |
420,277.33 |
|
Long-term Lending to
Related Person |
5,500,000.00 |
4,500,000.00 |
|
Total Assets |
102,270,449.49 |
88,872,092.12 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
95,576,436.38 |
82,862,297.78 |
|
Accrued Expenses |
84,166.35 |
35,667.43 |
|
Other Current Liabilities |
88,358.33 |
95,227.62 |
|
|
|
|
|
Total Current Liabilities |
95,748,961.06 |
82,993,192.83 |
|
Total Liabilities |
95,748,961.06 |
82,993,192.83 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning - Unappropriated |
1,521,488.43 |
878,899.29 |
|
Total Shareholders' Equity |
6,521,488.43 |
5,878,899.29 |
|
Total Liabilities & Shareholders' Equity |
102,270,449.49 |
88,872,092.12 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
18,917,191.68 |
21,395,868.91 |
|
Gain on Exchange Rate |
- |
1,151,446.52 |
|
Other Income |
171,311.77 |
135,000.00 |
|
Total Revenues |
19,088,503.45 |
22,682,315.43 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
11,228,983.97 |
19,407,943.90 |
|
Selling and Administrative
Expenses |
3,292,895.44 |
2,574,104.95 |
|
Loss on Exchange Rate |
3,827,352.42 |
- |
|
Total Expenses |
18,349,231.83 |
21,982,048.85 |
|
|
|
|
|
Profit before Income Tax |
739,271.62 |
700,266.58 |
|
Income Tax |
[96,682.48] |
[90,510.55] |
|
Net Profit / [Loss] |
642,589.14 |
609,756.03 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.00 |
1.01 |
|
QUICK RATIO |
TIMES |
0.35 |
0.37 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
27.97 |
50.91 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.18 |
0.24 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
2,039.53 |
997.01 |
|
INVENTORY TURNOVER |
TIMES |
0.18 |
0.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
609.51 |
522.60 |
|
RECEIVABLES TURNOVER |
TIMES |
0.60 |
0.70 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
3,106.73 |
1,558.37 |
|
CASH CONVERSION CYCLE |
DAYS |
(457.69) |
(38.76) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
59.36 |
90.71 |
|
SELLING & ADMINISTRATION |
% |
17.41 |
12.03 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
41.55 |
15.30 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.91 |
3.27 |
|
NET PROFIT MARGIN |
% |
3.40 |
2.85 |
|
RETURN ON EQUITY |
% |
9.85 |
10.37 |
|
RETURN ON ASSET |
% |
0.63 |
0.69 |
|
EARNING PER SHARE |
BAHT |
12.85 |
12.20 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.94 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
14.68 |
14.12 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(11.58) |
|
|
OPERATING PROFIT |
% |
5.57 |
|
|
NET PROFIT |
% |
5.38 |
|
|
FIXED ASSETS |
% |
60.94 |
|
|
TOTAL ASSETS |
% |
15.08 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
41.55 |
Impressive |
Industrial
Average |
9.66 |
|
Net Profit Margin |
3.40 |
Impressive |
Industrial
Average |
(0.20) |
|
Return on Assets |
0.63 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
9.85 |
Impressive |
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 41.55%. 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 3.4%, 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
0.63%, 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 9.85%, 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 Uptrend
Return on Equity Stable
LIQUIDITY RATIO
|
Current Ratio |
1.00 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.35 |
|
|
|
|
Cash Conversion Cycle |
(457.69) |
|
|
|
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 time in 2011, decreased from 1.01 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 0.35 times in 2011,
decreased from 0.37 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 -458 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.94 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
14.68 |
Risky |
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 0.94 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 RATIO
|
Fixed Assets Turnover |
27.97 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
0.18 |
Deteriorated |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
2,039.53 |
|
|
|
|
Inventory Turnover |
0.18 |
Deteriorated |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
609.51 |
|
|
|
|
Receivables Turnover |
0.60 |
Deteriorated |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
3,106.73 |
|
|
|
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.54.99 |
|
|
1 |
Rs.87.21 |
|
Euro |
1 |
Rs.70.22 |
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.