MIRA
INFORM REPORT
|
Report Date : |
26.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
HARMONY GEMS CO., LTD. |
|
|
|
|
Registered Office : |
Room 303, 3RD Floor,
Sirikorn Building, 114,
116 Mahaset Road,
Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
11.05.2001 |
|
|
|
|
Reg. No.: |
0105544043875 |
|
|
|
|
Legal Form : |
PRIVATE LIMITED COMPANY |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER AND DISTRIBUTOR
OF PRECIOUS STONES AND
SILVER JEWELRY PRODUCTS |
|
|
|
|
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 : |
Moderate |
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
|
Source : CIA |
Company name
HARMONY GEMS CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : ROOM 303, 3rd FLOOR,
114,
BANGRAK,
TELEPHONE : [66] 2631-4142-3,
2266-7660-1, 091 442-4335
FAX : [66] 2631-4144
E-MAIL ADDRESS : harmonygems@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2001
REGISTRATION NO. : 0105544043875
TAX ID NO. : 3030268723
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAWINDRA AGARWAL,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : PRECIOUS STONES
AND SILVER JEWELRY
PRODUCTS
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on May
11, 2001 as
a private limited
company under the
registered name HARMONY
GEMS CO., LTD.,
by Thai and Indian groups,
with the objective
to be engaged
in jewelry trading
business. It currently
employs 3 staff.
The subject’s registered
address is Room
303, 3rd Floor,
Sirikorn Building, 114, 116, Mahaset
Road, Siphaya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Umang Agarwal |
|
Indian |
38 |
|
Mr. Rawindra Agarwal |
|
Indian |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rawindra Agarwal is
the Managing Director.
He is Indian
nationality with the
age of 41 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing of
precious stones, including
ruby, emerald, sapphire
and etc., as well
as silver jewelry
with precious stones.
PURCHASE
Most of the
products are imported
from India and
South Africa, the
remaining 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 to IRICO’S
DATABASE 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
The subject is an
importer and distributor of
precious stones. The products
are also popular in the market. However,
the good quality product is relatively expensive, therefore demand
is not much when
compared to the diamond.
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, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Umang Agarwal Nationality: Indian Address : Galgata,
India |
10,000 |
25.00 |
|
Mr. Rawindra Agrawal Nationality: Indian Address : 314/2-3
Silom Rd., Silom,
Bangrak, Bangkok |
9,600 |
24.00 |
|
Mr. Sommek Phaphol Nationality: Thai Address :
79 Moo 7,
Gudnamsai, Khowang, Yasothorn |
4,400 |
11.00 |
|
Ms. Dusadee Chaengsanit Nationality: Thai Address : 32/5
Jomthong Rd., Bangkor,
Jomthong, Bangkok |
4,000 |
10.00 |
|
Mrs. Noojorn Abdul Nationality: Thai Address : 17
Moo 1, Nongsaengyai, Khongjeam, Ubon Ratchathani
|
4,000 |
10.00 |
|
Ms. Pingporn Luangthong Nationality: Thai Address : 37
Moo 1, Nongsaengyai, Khongjeam, Ubon
Ratchathani |
4,000 |
10.00 |
|
Mrs. Sorn Luangthong Nationality: Thai Address : 37
Moo 1, Nongsaengyai, Khongjeam, Ubon Ratchathani
|
4,000 |
10.00 |
Total Shareholders : 7
Share Structure
[as at April
30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
20,400 |
51.00 |
|
Foreign-Indian |
2 |
19,600 |
49.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Sirirat Adam No.
8820
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
226,384.42 |
22,974.53 |
|
Trade Accounts Receivable
|
2,109,674.13 |
2,604,546.84 |
|
Inventories |
892,441.56 |
816,067.63 |
|
Other Current Assets
|
52,542.09 |
73,305.87 |
|
|
|
|
|
Total Current Assets
|
3,281,042.20 |
3,516,894.87 |
|
|
|
|
|
Office Equipment |
3,827.76 |
5,123.83 |
|
Total Assets |
3,284,869.96 |
3,522,018.70 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
1,963,412.72 |
2,232,985.82 |
|
Accrued Income Tax |
2,540.67 |
11,425.51 |
|
Other Current Liabilities |
67,081.49 |
65,773.33 |
|
|
|
|
|
Total Current Liabilities |
2,033,034.88 |
2,310,184.66 |
|
Total Liabilities |
2,033,034.88 |
2,310,184.66 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
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 |
[2,748,164.92] |
[2,788,165.96] |
|
Total Shareholders' Equity |
1,251,835.08 |
1,211,834.04 |
|
Total Liabilities & Shareholders' Equity |
3,284,869.96 |
3,522,018.70 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Operation Income |
3,803,279.56 |
5,357,794.11 |
|
Other Income |
41,622.85 |
- |
|
Total Revenues |
3,844,902.41 |
5,357,794.11 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,860,980.74 |
3,752,682.19 |
|
Selling Expenses |
14,330.00 |
77,925.00 |
|
Administrative Expenses |
916,032.71 |
1,179,699.46 |
|
Other Expenses |
- |
283,468.54 |
|
Total Expenses |
3,791,343.45 |
5,293,775.19 |
|
|
|
|
|
Profit / Loss] before Financial Costs & Income Tax |
53,558.96 |
64,018.92 |
|
Financial Costs |
[11,017.25] |
[21,369.90] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
42,541.71 |
42,649.02 |
|
Income Tax |
[2,540.67] |
[11,425.51] |
|
Net Profit / [Loss] |
40,001.04 |
31,223.51 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.61 |
1.52 |
|
QUICK RATIO |
TIMES |
1.15 |
1.14 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
993.60 |
1,045.66 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.16 |
1.52 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
113.86 |
79.37 |
|
INVENTORY TURNOVER |
TIMES |
3.21 |
4.60 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
202.47 |
177.43 |
|
RECEIVABLES TURNOVER |
TIMES |
1.80 |
2.06 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
250.49 |
217.19 |
|
CASH CONVERSION CYCLE |
DAYS |
65.83 |
39.62 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
75.22 |
70.04 |
|
SELLING & ADMINISTRATION |
% |
24.46 |
23.47 |
|
INTEREST |
% |
0.29 |
0.40 |
|
GROSS PROFIT MARGIN |
% |
25.87 |
29.96 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.41 |
1.19 |
|
NET PROFIT MARGIN |
% |
1.05 |
0.58 |
|
RETURN ON EQUITY |
% |
3.20 |
2.58 |
|
RETURN ON ASSET |
% |
1.22 |
0.89 |
|
EARNING PER SHARE |
BAHT |
1.00 |
0.78 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.66 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.62 |
1.91 |
|
TIME INTEREST EARNED |
TIMES |
4.86 |
3.00 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(29.01) |
|
|
OPERATING PROFIT |
% |
(16.34) |
|
|
NET PROFIT |
% |
28.11 |
|
|
FIXED ASSETS |
% |
(25.29) |
|
|
TOTAL ASSETS |
% |
(6.73) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
25.87 |
Impressive |
Industrial Average |
9.17 |
|
Net Profit Margin |
1.05 |
Impressive |
Industrial Average |
(0.11) |
|
Return on Assets |
1.22 |
Impressive |
Industrial Average |
(0.16) |
|
Return on Equity |
3.20 |
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. Gross Profit Margin is 25.87%. 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. Net Profit Margin ratio is 1.05%,
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
1.22%, 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 3.2%, 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 |
1.61 |
Acceptable |
Industrial Average |
2.38 |
|
Quick Ratio |
1.15 |
|
|
|
|
Cash Conversion Cycle |
65.83 |
|
|
|
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 1.61 times in 2011, increase from 1.52 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 1.15 times in 2011,
increase from 1.14 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 66 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
1.62 |
Risky |
Industrial Average |
1.47 |
|
Times Interest Earned |
4.86 |
Impressive |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 4.87 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.62 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 |
993.60 |
Impressive |
Industrial Average |
6.08 |
|
Total Assets Turnover |
1.16 |
Satisfactory |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
113.86 |
|
|
|
|
Inventory Turnover |
3.21 |
Impressive |
Industrial Average |
1.38 |
|
Receivables Conversion Period |
202.47 |
|
|
|
|
Receivables Turnover |
1.80 |
Acceptable |
Industrial Average |
3.38 |
|
Payables Conversion Period |
250.49 |
|
|
|
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 –
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.55.34 |
|
|
1 |
Rs.88.30 |
|
Euro |
1 |
Rs.71.37 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.