MIRA
INFORM REPORT
|
Report Date : |
16.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
KARMANYA THAI GEMS CO., LTD. |
|
|
|
|
Registered Office : |
Unit 204, 2nd Floor, Sirikorn Building, Mahaset Road, Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
27.05.2005 |
|
|
|
|
Com. Reg. No.: |
0105548069925 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER
AND DISTRIBUTOR OF GEMS AND JEWELRY PRODUCTS |
|
|
|
|
No. of Employees : |
2 |
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 : |
Slow |
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
KARMANYA THAI GEMS CO., LTD.
SUMMARY
BUSINESS ADDRESS : UNIT 204, 2nd FLOOR,
SIRIKORN BUILDING,
MAHASET ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-6618,
089 686-1615
FAX : [66] 2267-6618
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548069925
TAX ID NO. : 3031814721
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. PANKAI TAK, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 2
LINES OF BUSINESS : GEMS
AND JEWELRY PRODUCTS
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 May
27, 2005 as
a private limited
company under the registered
name KARMANYA THAI
GEMS CO., LTD.,
by Thai and Indian
groups, with the business
objective to import
and distribute gems
and jewelry products
to domestic market.
It currently employs
2 staff.
The subject’s registered address
is Unit 204, 2nd
Flr., Sirikorn Building,
114 Mahaset Rd., Siphaya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pankai Tak |
|
Indian |
32 |
|
Mrs. Priyaka Tak |
|
Indian |
26 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pankai Tak is
the Managing Director.
He is Indian
nationality with the
age of 32
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing of
gems and jewelry
products.
PURCHASE
Most of the
products are imported
from India, the
remaining is purchased
from local supplier.
SALES
100% of the
products is sold
locally by wholesale
to traders and
manufacturers.
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 15-30 days.
Local bills are
paid by cash
or on the
credits term of 30-60
days.
Imports are by
L/C.
BANKING
The banker’s name was not disclosed.
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
The subject is an importer
and distributor of gems
and jewelry products. Its
performance was related
with the condition
of local jewelry
consumption, which is
likely to expand
slowly this year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 2,000,000 divided into 20,000 shares of
Bht. 100 each with
fully paid.
On August 8,
2007, the registered
capital was increased
to 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. Pankai Tak Nationality: Indian Address : 114
Mahaset Rd., Siphaya,
Bangrak,
Bangkok |
16,000 |
40.00 |
|
Mr. Anucha Jaidee Nationality: Thai Address : 57
Isaraphap 12 Rd.,
Somdejchaopraya,
Klongsan, Bangkok |
4,080 |
10.20 |
|
Mr. Supachai Singsaha Nationality: Thai Address : 64
Moo 8, Sarika,
Muang, Nakornnayok |
4,080 |
10.20 |
|
Mrs. Aree Sribuathong Nationality: Thai Address : 88
Rimtangrodfai Saitai Rd.,
Bangsue, Bangkok |
4,080 |
10.20 |
|
Ms. Angsana Thabthimthong Nationality: Thai Address : 88
Rimtangrodfai Saitai Rd.,
Bangsue, Bangkok |
4,080 |
10.20 |
|
Mrs. Sukanya Surasieng Nationality: Thai Address : 14/1
Moo 6, Salathammasop, Taweewattana, Bangkok |
4,080 |
10.20 |
|
Mrs. Priyaka Tak Nationality: Indian Address : 115
Mahaset Rd., Siphaya,
Bangrak,
Bangkok |
3,600 |
9.00 |
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.
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 |
25,238.17 |
100,546.38 |
|
Trade Accounts Receivable
|
4,214,181.49 |
1,184,275.89 |
|
Other Current Assets
|
181,934.11 |
181,444.44 |
|
|
|
|
|
Total Current Assets
|
4,421,353.77 |
1,466,266.71 |
|
|
|
|
|
Long-term Lending to Related Person |
- |
1,150,000.00 |
|
Equipment |
1.00 |
1.00 |
|
Total Assets |
4,421,354.77 |
2,616,267.71 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
|
|
|
|
Short-term Loan from Related
Person |
1,650,000.00 |
- |
|
Other Current Liabilities |
50,080.63 |
38,341.44 |
|
|
|
|
|
Total Current Liabilities |
1,700,080.63 |
38,341.44 |
|
Total Liabilities |
1,700,080.63 |
38,341.44 |
|
|
|
|
|
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 |
[1,278,725.86] |
[1,422,073.73] |
|
Total Shareholders' Equity |
2,721,274.14 |
2,577,926.27 |
|
Total Liabilities & Shareholders' Equity |
4,421,354.77 |
2,616,267.71 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
4,390,784.48 |
727,562.59 |
|
Other Income |
115,954.60 |
27,389.60 |
|
Total Revenues |
4,506,739.08 |
754,952.19 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,758,441.12 |
365,735.00 |
|
Selling and Administrative Expenses |
604,950.09 |
496,456.81 |
|
Total Expenses |
4,363,391.21 |
862,191.81 |
|
Net Profit / [Loss] |
143,347.87 |
[107,239.62] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.60 |
38.24 |
|
QUICK RATIO |
TIMES |
2.49 |
33.51 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4,390,784.48 |
727,562.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.99 |
0.28 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
350.32 |
594.12 |
|
RECEIVABLES TURNOVER |
TIMES |
1.04 |
0.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
350.32 |
594.12 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
85.60 |
50.27 |
|
SELLING & ADMINISTRATION |
% |
13.78 |
68.24 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
17.04 |
53.50 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.26 |
(14.74) |
|
NET PROFIT MARGIN |
% |
3.26 |
(14.74) |
|
RETURN ON EQUITY |
% |
5.27 |
(4.16) |
|
RETURN ON ASSET |
% |
3.24 |
(4.10) |
|
EARNING PER SHARE |
BAHT |
3.58 |
(2.68) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.38 |
0.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.62 |
0.01 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
503.49 |
|
|
OPERATING PROFIT |
% |
(233.67) |
|
|
NET PROFIT |
% |
233.67 |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
68.99 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.04 |
Impressive |
Industrial Average |
9.17 |
|
Net Profit Margin |
3.26 |
Impressive |
Industrial Average |
(0.11) |
|
Return on Assets |
3.24 |
Impressive |
Industrial Average |
(0.16) |
|
Return on Equity |
5.27 |
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 17.04%. 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
3.26%, 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
3.24%, 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 5.27%, 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 |
2.60 |
Impressive |
Industrial Average |
2.38 |
|
Quick Ratio |
2.49 |
|
|
|
|
Cash Conversion Cycle |
350.32 |
|
|
|
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 2.6 times in 2011, decreased from 38.24 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 2.49 times in 2011,
decreased from 33.51 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 351 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.38 |
Impressive |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
0.62 |
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 0.38 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 |
4,390,784.48 |
Impressive |
Industrial Average |
6.08 |
|
Total Assets Turnover |
0.99 |
Satisfactory |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
1.38 |
|
Receivables Conversion Period |
350.32 |
|
|
|
|
Receivables Turnover |
1.04 |
Deteriorated |
Industrial Average |
3.38 |
|
Payables Conversion Period |
- |
|
|
|
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.53.12 |
|
UK Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.68.60 |
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.