MIRA
INFORM REPORT
|
Report Date : |
28.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
ROUGH MASTER CO., LTD. |
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Registered Office : |
22nd Floor, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.06.2001 |
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Reg. No.: |
0105544053803 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
THE SUBJECT
IS ENGAGED IN
IMPORTING, DISTRIBUTING AND
RE-EXPORTING VARIOUS KINDS
OF ROUGH STONES,
SUCH AS AMETHYST/GREEN AMETHYST,
CITRINE, SWISS BLUE
TOPAZ, SKY BLUE
TOPAZ, GARNET, GREEN
GOLD, QUARTZ AND ETC.,
FOR JEWELRY PRODUCTION. |
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No. of Employees : |
7 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
|
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 |
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
|
Source : CIA |
COMPANY NAME
ROUGH MASTER CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 22nd
FLOOR,
SURIYAWOGSE, BANGRAK,
TELEPHONE : [66] 2267-3851-2,
2267-3899
FAX : [66] 2267-3853
E-MAIL ADDRESS : semirough@hotmail.com
atulkandelwal@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2001
REGISTRATION NO. : 0105544053803
TAX ID NO. : 3030290557
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI
: 59.17%
INDIAN
: 40.83%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VINAY KUMAR
KEDIA, THAI
MANAGING DIRECTOR
NO. OF STAFF : 7
LINES OF BUSINESS : ROUGH
STONES
IMPORTER,
DISTRIBUTOR AND
RE-EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on June
11, 2001 as
a private limited
company under the registered
name ROUGH MASTER CO., LTD., by Indian-Thai group, with
the business objective
to import and
distribute various kinds of rough
stones to both
domestic and international
markets. It currently
employs 7 staff.
The subject’s registered
address is 22nd Floor,
Gems Tower, 1249/171
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vinay Kumar Kedia |
|
Thai |
64 |
|
Mr. Atul Surendra Khandelwal |
|
Indian |
45 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vinay Kumar Kedia
is the Managing
Director.
He is Thai
nationality with the
age of 64
years old.
Mr. Atul Surendra
Khandelwal is the
General Manager.
He is Indian
nationality with the
age of 45 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
various kinds of
rough stones, such
as Amethyst/Green Amethyst,
Citrine, Swiss Blue
Topaz, Sky Blue
Topaz, Garnet, Green
Gold, Quartz and etc.,
for jewelry production.
PURCHASE
Most of the
products are imported
from India, Pakistan
and South Africa,
the remaining is
purchased from local
supplier.
SALES
Its products are
sold to customers
both local and
overseas, mainly in
Hong Kong, Republic
of China and
Japan.
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.
Exports are against
T/T.
BANKING
Bangkok Bank Public Co., Ltd.
EMPLOYMENT
The subject currently
employs 7 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Branch office is
located at 34/7
Trok Trokadero, Surawong
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
COMMENT
The subject is an
importer and distributor of
semi-precious rough stones.
The products are
for jewelry production. Semi-precious stones
are also popular
for fancy jewelry especially
for exported market.
Subject has moderate
business and continued
expanding.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 5,000,000 on
April 11, 2002
Bht. 6,000,000 on
April 18, 2005
The latest registered
capital was increased
to Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vinay Kumar Kedia
Nationality: Thai Address : 25/12
Sukhumvit 20 Rd.,
Klongtoey,
Klongtoey, |
29,500 |
49.17 |
|
Mr. Atul Surendra Khandelwal Nationality: Indian Address :
Bangrak, |
24,500 |
40.83 |
|
Mr. Vishal Kedia Nationality: Thai Address : 25/12
Sukhumvit 20 Rd.,
Klongtoey, |
6,000 |
10.00 |
Total Shareholders : 3
Share Structure
[as at April
30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
35,500 |
59.17 |
|
Foreign-Indian |
1 |
24,500 |
40.83 |
|
Total |
3 |
60,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mrs. Voranuch Thicharoen No.
1566
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
475,550.82 |
309,881.94 |
|
Trade Accounts Receivable |
16,804,550.97 |
12,497,126.78 |
|
Inventories |
13,450,442.53 |
16,604,156.03 |
|
Other Current Assets
|
472,764.05 |
155,971.51 |
|
|
|
|
|
Total Current Assets
|
31,203,308.37 |
29,567,136.26 |
|
|
|
|
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Fixed Assets |
61,685.49 |
42,874.51 |
|
Other Non-current Assets |
40,727.27 |
40,727.27 |
|
Total Assets |
31,305,721.13 |
29,650,738.04 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft from Financial Institution |
3,634,377.75 |
- |
|
Trade Accounts Payable |
4,828,160.89 |
6,392,262.04 |
|
Accrued Income Tax |
135,001.10 |
336,233.25 |
|
Other Current Liabilities |
497,724.61 |
1,100,735.10 |
|
|
|
|
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Total Current Liabilities |
9,095,264.35 |
7,829,230.39 |
|
Long-term Loan from Person or Related Company |
10,911,900.00 |
11,211,900.00 |
|
Long-term Loan from Financial Institution |
95,337.77 |
128,740.52 |
|
Other Non-current Liabilities |
19,520.38 |
- |
|
Total Liabilities |
20,122,022.50 |
19,169,870.91 |
|
|
|
|
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Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 60,000 shares |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated |
5,183,698.63 |
4,480,867.13 |
|
Total Shareholders' Equity |
11,183,698.63 |
10,480,867.13 |
|
Total Liabilities & Shareholders' Equity |
31,305,721.13 |
29,650,738.04 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
33,720,842.60 |
37,648,518.17 |
|
Other Income |
347,492.48 |
201,755.89 |
|
Total Revenues |
34,068,335.08 |
37,850,274.06 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
29,131,418.25 |
32,384,852.44 |
|
Employee Expenses |
2,482,535.00 |
2,452,352.00 |
|
Depreciation and Amortization |
22,204.90 |
62,423.77 |
|
Other Expenses |
778,261.08 |
918,988.55 |
|
Total Expenses |
32,414,419.23 |
35,818,616.76 |
|
|
|
|
|
Profit before Financial Costs & Income Tax |
1,653,915.85 |
2,031,657.30 |
|
Financial Costs |
[624,710.00] |
[391,193.35] |
|
|
|
|
|
Profit before Income Tax |
1,029,205.85 |
1,640,463.95 |
|
Income Tax |
[310,051.10] |
[492,758.25] |
|
Net Profit / [Loss] |
719,154.75 |
1,147,705.70 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.43 |
3.78 |
|
QUICK RATIO |
TIMES |
1.90 |
1.64 |
|
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|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
546.66 |
878.11 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.08 |
1.27 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
168.53 |
187.14 |
|
INVENTORY TURNOVER |
TIMES |
2.17 |
1.95 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
181.90 |
121.16 |
|
RECEIVABLES TURNOVER |
TIMES |
2.01 |
3.01 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
60.49 |
72.05 |
|
CASH CONVERSION CYCLE |
DAYS |
289.93 |
236.25 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
86.39 |
86.02 |
|
SELLING & ADMINISTRATION |
% |
0.07 |
0.17 |
|
INTEREST |
% |
1.85 |
1.04 |
|
GROSS PROFIT MARGIN |
% |
14.64 |
14.52 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.90 |
5.40 |
|
NET PROFIT MARGIN |
% |
2.13 |
3.05 |
|
RETURN ON EQUITY |
% |
6.43 |
10.95 |
|
RETURN ON ASSET |
% |
2.30 |
3.87 |
|
EARNING PER SHARE |
BAHT |
11.99 |
19.13 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.64 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.80 |
1.83 |
|
TIME INTEREST EARNED |
TIMES |
2.65 |
5.19 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(10.43) |
|
|
OPERATING PROFIT |
% |
(18.59) |
|
|
NET PROFIT |
% |
(37.34) |
|
|
FIXED ASSETS |
% |
43.87 |
|
|
TOTAL ASSETS |
% |
5.58 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
14.64 |
Impressive |
Industrial Average |
9.66 |
|
Net Profit Margin |
2.13 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
2.30 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
6.43 |
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 14.64%. 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
2.13%, 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
2.3%, 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 6.43%, 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 |
3.43 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
1.90 |
|
|
|
|
Cash Conversion Cycle |
289.93 |
|
|
|
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 3.43 times in 2011, decreased from 3.78 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 1.9 times in 2011,
increased from 1.64 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 290 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.64 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
1.80 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
2.65 |
Impressive |
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 2.65 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 0.64 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 |
546.66 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
1.08 |
Acceptable |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
168.53 |
|
|
|
|
Inventory Turnover |
2.17 |
Satisfactory |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
181.90 |
|
|
|
|
Receivables Turnover |
2.01 |
Acceptable |
Industrial Average |
3.31 |
|
Payables Conversion Period |
60.49 |
|
|
|
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.55.70 |
|
|
1 |
Rs.89.34 |
|
Euro |
1 |
Rs.72.35 |
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.