MIRA
INFORM REPORT
|
Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
SIGNATURE IMPEX
CO., LTD. |
|
|
|
|
Formerly Known As : |
BHARGAV
GEMS CO., LTD |
|
|
|
|
Registered Office : |
3rd
Floor, 40/2 Soi
31, Sukhapibal 2 Road,
Dokmai, Pravet, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
08.07.1996 |
|
|
|
|
Com. Reg. No.: |
0105539075349 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing
and distributing diamonds
and gemstones for jewelry
production |
|
|
|
|
No. of Employees : |
22 |
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 : |
Slow but correct |
|
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
SIGNATURE IMPEX
CO., LTD.
[FORMER :
BHARGAV GEMS CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : GEMOPOLIS INDUSTRIAL
ESTATE,
3rd FLOOR,
40/2 SOI 31,
SUKHAPIBAL 2 ROAD,
DOKMAI, PRAVET,
BANGKOK 10250
TELEPHONE : [66] 2727-0297 ,
2727-0519-21
FAX :
[66] 2727-0522
E-MAIL
ADDRESS : srihiangjewelry@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539075349
TAX
ID NO. : 3011743157
CAPITAL REGISTERED : BHT. 32,000,000
CAPITAL PAID-UP : BHT.
32,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NILESH KUMAR BHOLABHAI
PATEL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 22
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
TRADER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 8,
1996 as a
private limited company
under the registered
name BHARGAV GEMS
CO., LTD., by Indian
groups, in order
to operate as a
jewelry trader.
On
May 27, 2005,
subject’s name was changed to
SIGNATURE IMPEX CO.,
LTD. It currently
employs 22 staff.
The subject’s registered
address was initially
located at 7/6 Soi
Suwansawat, Rama 4 Rd., Thungmahamek,
Sathorn, Bangkok 10120.
On
May 9, 2004,
subject’s registered address
was changed to
1535/108 Chan Rd.,
Thungwatdon, Sathorn, Bangkok
10120.
On June 6, 2007, the
subject’s registered address
was relocated to 40/2
Soi 31, Sukhapibal
2 Rd., Dokmai, Pravet, Bangkok
10250, and this is
the subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Kumar
Bholabhai Patel |
|
Indian |
33 |
|
Mrs. Vaishali Nilesh
Patel |
|
Indian |
32 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Kumar
Bholabhai Patel is
the Managing Director.
He is Indian
nationality with the
age of 33 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing diamonds
and gemstones for jewelry
production. The subject is also
exporting precious, semi-precious
stones, fashion accessories,
diamond & gemstones,
jewelry and silverware
products to worldwide
market.
The subject hires
local manufacturers for the
production of silverware
and jewelry products.
IMPORT
Diamonds and gemstones are
imported from India,
Sri Lanka, Pakistan,
Belgium, Russia South
Africa and Hong
Kong.
EXPORT
80%
of the products
is exported to Germany,
France, Belgium, Canada, Switzerland, Japan, United
Kingdom, Italy, Hong Kong,
Singapore, Taiwan, Republic of China,
Australia and United
States of America.
SALES
20%
of the products
is also sold
by wholesale to
domestic market.
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 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 L/C
at sight or
T/T on negotiated
term.
Exports
are against T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333
Silom Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The
subject employs 22
staff [office and
sales staff].
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Branch
office is located
at 64/31 Soi
31, Sukhapibal 2
Rd, Dokmai, Prawet,
Bangkok 10250.
COMMENT
The subject’s
business in the
previous year was
brisk due to consumption improvement
from export markets in Asian region. However,
floods in late
last year had
slowed down local
jewelry consumption in the
first quarter of
this year, while
consumption for the
rest of the
year is expected
to be as strong
as the previous
year’s level.
FINANCIAL
INFORMATION
The
capital was initially
registered at Bht. 4,000,000 divided
into 40,000 shares of Bht.
100 each.
The
capital was increased
later as follows:
Bht.
6,000,000 on December
13, 2001
Bht.
20,000,000 on December
19, 2002
Bht.
32,000,000 on April
11, 2006
The
latest registered capital
was increased to
Bht. 32,000,000 divided into
320,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nilesh Kumar
Bholabhai Patel Nationality: Indian Address : 12 Nanee
Nakar, A.K. Rd., Suraj,
India |
195,200 |
61.00 |
|
Mrs. Jayaben Bholabhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mrs. Vaishali Nilesh
Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mr. Bholabhai Bagerbhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
Total Shareholder : 4
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Indian |
4 |
320,000 |
100.00 |
|
Total |
4 |
320,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO
Ms. Amornrat Boontanakorn
No. 4769
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
345,610.93 |
227,941.29 |
|
Trade Accounts & Other
Receivable |
227,242,609.18 |
19,295,542.11 |
|
Inventories |
80,234,293.09 |
150,519,273.92 |
|
Other Current Assets |
78,011.70 |
481,090.53 |
|
Total Current Assets
|
307,900,524.90 |
170,523,847.85 |
|
|
|
|
|
Real Estate for Investment |
14,462,037.63 |
15,063,562.63 |
|
Fixed Assets |
13,861,857.28 |
7,499,048.68 |
|
Intangible Assets |
254,850.75 |
362,463.15 |
|
Other Non-current Assets |
27,000.00 |
- |
|
Total Assets |
336,506,270.56 |
193,448,922.31 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other
Payable |
292,163,731.94 |
147,978,041.21 |
|
Current Portion of Long-term Loans |
2,509,373.43 |
2,502,754.02 |
|
Short-term Loan |
- |
6,344.00 |
|
Accrued Income Tax |
251,245.79 |
330,639.22 |
|
Other Current Liabilities |
39,800.00 |
64,800.00 |
|
Total Current Liabilities |
294,964,151.16 |
150,882,578.45 |
|
|
|
|
|
Long-term Loan, Net of
Current Portion |
4,377,490.05 |
6,881,813.66 |
|
Other Non-current Liabilities |
52,500.00 |
52,500.00 |
|
Total Liabilities |
299,394,141.21 |
157,816,892.11 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 320,000 shares
|
32,000,000.00 |
32,000,000.00 |
|
Capital Paid |
32,000,000.00 |
32,000,000.00 |
|
Retained Earning - Unappropriated |
5,112,129.35 |
3,632,030.20 |
|
Total Shareholders' Equity |
37,112,129.35 |
35,632,030.20 |
|
Total Liabilities & Shareholders' Equity |
336,506,270.56 |
193,448,922.31 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
609,185,447.74 |
483,619,407.40 |
|
Other Income |
7,303,170.11 |
10,399,521.50 |
|
Total Revenues |
616,488,617.85 |
494,018,928.90 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
599,857,389.29 |
474,523,467.04 |
|
Selling Expenses |
3,137,517.41 |
9,191,869.94 |
|
Administrative Expenses |
10,718,331.49 |
7,642,315.09 |
|
Total Expenses |
613,713,238.19 |
491,357,652.07 |
|
Profit / [Loss] before
Financial Cost & Income Tax |
2,7755,379.66 |
2,661,276.83 |
|
Financial Cost |
[648,409.72] |
[742,157.04] |
|
Profit / [Loss] before Income
Tax |
2,126,969.94 |
1,919,119.79 |
|
Income Tax |
[646,870.79] |
[591,264.22] |
|
Net Profit / [Loss] |
1,480,099.15 |
1,327,855.57 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
1.13 |
|
QUICK RATIO |
TIMES |
0.77 |
0.13 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
43.95 |
64.49 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.81 |
2.50 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
48.82 |
115.78 |
|
INVENTORY TURNOVER |
TIMES |
7.48 |
3.15 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
136.15 |
14.56 |
|
RECEIVABLES TURNOVER |
TIMES |
2.68 |
25.06 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
177.78 |
113.82 |
|
CASH CONVERSION CYCLE |
DAYS |
7.20 |
16.52 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
98.47 |
98.12 |
|
SELLING & ADMINISTRATION |
% |
2.27 |
3.48 |
|
INTEREST |
% |
0.11 |
0.15 |
|
GROSS PROFIT MARGIN |
% |
2.73 |
4.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.46 |
0.55 |
|
NET PROFIT MARGIN |
% |
0.24 |
0.27 |
|
RETURN ON EQUITY |
% |
3.99 |
3.73 |
|
RETURN ON ASSET |
% |
0.44 |
0.69 |
|
EARNING PER SHARE |
BAHT |
4.63 |
4.15 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.07 |
4.43 |
|
TIME INTEREST EARNED |
TIMES |
4.28 |
3.59 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
25.96 |
|
|
OPERATING PROFIT |
% |
4.29 |
|
|
NET PROFIT |
% |
11.47 |
|
|
FIXED ASSETS |
% |
84.85 |
|
|
TOTAL ASSETS |
% |
73.95 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.73 |
Deteriorated |
Industrial
Average |
9.66 |
|
Net Profit Margin |
0.24 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.44 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
3.99 |
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 2.73%. When compared with
the industry average, the ratio of the company was lower, indicated that
company was originated from the 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 0.24%,
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
0.44%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profits 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 3.99%, 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 |
1.04 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.77 |
|
|
|
|
Cash Conversion Cycle |
7.20 |
|
|
|
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 1.04 times in 2011, decreased from 1.13 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 0.77 times in 2011,
increased from 0.13 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 8 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
8.07 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
4.28 |
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 4.29 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 0.89 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 |
43.95 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.81 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
48.82 |
|
|
|
|
Inventory Turnover |
7.48 |
Impressive |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
136.15 |
|
|
|
|
Receivables Turnover |
2.68 |
Satisfactory |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
177.78 |
|
|
|
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.55.20 |
|
UK Pound |
1 |
Rs.88.37 |
|
Euro |
1 |
Rs.71.47 |
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.