MIRA
INFORM REPORT
|
Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
AWARD GEMS
COMPANY LIMITED |
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|
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Registered Office : |
5/19 Soi
Silom 11, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
1991 |
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Com. Reg. No.: |
0105534100574 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER AND DISTRIBUTOR OF PRECIOUS AND
SEMI-PRECIOUS STONES |
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No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 (31.03.2012) |
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
AWARD
GEMS COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 5/19
SOI SILOM 11,
SILOM ROAD, SILOM,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2235-2583,
081 620-8147
FAX : [66] 2266-7774
E-MAIL
ADDRESS : awardgems@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534100574
TAX
ID NO. : 3011023532
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. SALIM UDDIN,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : PRECIOUS AND
SEMI-PRECIOUS STONES
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 October
24, 1991 as
a private limited
company by Thai and
Indian groups, under the
registered name AWARD
GEMS COMPANY LIMITED,
with the business
objective to import
and distribute precious
and semi-precious stones
for jewelry industry.
It currently employs
2 staff.
The
subject’s registered address
is 5/19 Soi
Silom 11, Silom
Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Salim Uddin |
|
Indian |
47 |
|
Mr. Hasin Uddin |
|
Indian |
23 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Salim Uddin is
the Managing Director.
He is Indian
nationality with the
age of 47 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing and distributing
of precious and
semi-precious stones for
jewelry production.
PURCHASE
Most
of the products
are imported from
India, 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
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
The
subject was not
disclosed its banker’s
name.
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’s sales was reported
at slow level in 2011.
Small operator is
disadvantage to compete with the
others in tough
market conditions. Growth
is expected at slow
pace.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 2,000 shares of
Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 4,000,000
on October 30,
2003
Bht. 6,000,000
on October 28,
2004
On
December 29, 2011,
the registered capital
was decreased to
Bht. 5,000,000 divided
into 5,000 shares
of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Boonta Khanobdee Nationality: Thai Address : 5/19
Soi Silom 11,
Silom Rd., Silom,
Bangrak, Bangkok |
2,550 |
51.00 |
|
Mr. Salim Uddin Nationality: Indian Address : 5/19 Soi
Silom 11, Silom
Rd., Silom,
Bangrak, Bangkok |
2,000 |
40.00 |
|
Mr. Hasin Uddin Nationality: Indian Address : 5/19
Soi Silom 11,
Silom Rd., Silom,
Bangrak, Bangkok |
450 |
9.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
2,550 |
51.00 |
|
Foreign-Indian |
2 |
2,450 |
49.00 |
|
Total |
3 |
5,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Chitchong Srivacharakul No.
0552
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
80,869.92 |
31,464.25 |
|
Trade Accounts Receivable
|
4,183,843.73 |
2,358,485.70 |
|
Inventories |
4,800,692.56 |
5,265,032.13 |
|
Revenue Department Receivable |
341,535.57 |
341,765.01 |
|
|
|
|
|
Total Current Assets
|
9,406,941.78 |
7,996,747.09 |
|
Total Assets |
9,406,941.78 |
7,996,747.09 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other
Payable |
298,858.90 |
290,197.96 |
|
Short-term Loan from Person
or Related Company |
3,300,000.00 |
1,500,000.00 |
|
Other Current Liabilities |
175,572.13 |
38,600.64 |
|
|
|
|
|
Total Current Liabilities |
3,774,431.03 |
1,828,798.59 |
|
Total Liabilities |
3,774,431.03 |
1,828,798.59 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
value authorized, issued
and fully paid share
capital 5,000 &
6,000 shares in 2011
& 2010 respectively |
5,000,000.00 |
6,000,000.00 |
|
|
|
|
|
Capital Paid |
5,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated |
632,510.75 |
167,948.50 |
|
Total Shareholders' Equity |
5,632,510.75 |
6,197,948.50 |
|
Total Liabilities & Shareholders' Equity |
9,406,941.78 |
7,996,747.09 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
6,815,923.53 |
5,380,714.96 |
|
Other Income |
198,420.43 |
- |
|
Total Revenues |
7,014,343.96 |
5,380,714.96 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,265,784.84 |
3,779,087.09 |
|
Selling and Administrative Expenses |
1,226,777.74 |
1,308,710.54 |
|
Loss on Exchange
Rate |
- |
144,067.28 |
|
Total Expenses |
6,492,562.58 |
5,231,864.91 |
|
|
|
|
|
Profit / [Loss] before Income Tax |
521,781.38 |
148,850.05 |
|
Income Tax |
[57,219.13] |
[45,060.64] |
|
Net Profit / [Loss] |
464,562.25 |
103,789.41 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.49 |
4.37 |
|
QUICK RATIO |
TIMES |
1.13 |
1.31 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.72 |
0.67 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
332.76 |
508.52 |
|
INVENTORY TURNOVER |
TIMES |
1.10 |
0.72 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
224.05 |
159.99 |
|
RECEIVABLES TURNOVER |
TIMES |
1.63 |
2.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
20.72 |
28.03 |
|
CASH CONVERSION CYCLE |
DAYS |
536.10 |
640.48 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
77.26 |
70.23 |
|
SELLING & ADMINISTRATION |
% |
18.00 |
24.32 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
25.65 |
29.77 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.66 |
2.77 |
|
NET PROFIT MARGIN |
% |
6.82 |
1.93 |
|
RETURN ON EQUITY |
% |
8.25 |
1.67 |
|
RETURN ON ASSET |
% |
4.94 |
1.30 |
|
EARNING PER SHARE |
BAHT |
92.91 |
17.30 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.23 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.67 |
0.30 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
26.67 |
|
|
OPERATING PROFIT |
% |
250.54 |
|
|
NET PROFIT |
% |
347.60 |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
17.63 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.65 |
Impressive |
Industrial Average |
9.17 |
|
Net Profit Margin |
6.82 |
Impressive |
Industrial
Average |
(0.11) |
|
Return on Assets |
4.94 |
Impressive |
Industrial
Average |
(0.16) |
|
Return on Equity |
8.25 |
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 25.65%. 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 6.82% 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
4.94%, 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 8.25%, 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 |
2.49 |
Impressive |
Industrial
Average |
2.38 |
|
Quick Ratio |
1.13 |
|
|
|
|
Cash Conversion Cycle |
536.10 |
|
|
|
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 2.49 times in 2011, decreased from 4.37 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 1.13 times in 2011,
decreased from 1.31 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 537 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Impressive |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
0.67 |
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 0.4 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 |
- |
|
Industrial
Average |
6.08 |
|
Total Assets Turnover |
0.72 |
Acceptable |
Industrial
Average |
1.23 |
|
Inventory Conversion Period |
332.76 |
|
|
|
|
Inventory Turnover |
1.10 |
Satisfactory |
Industrial
Average |
1.38 |
|
Receivables Conversion Period |
224.05 |
|
|
|
|
Receivables Turnover |
1.63 |
Deteriorated |
Industrial
Average |
3.38 |
|
Payables Conversion Period |
20.72 |
|
|
|
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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.63 |
|
|
1 |
Rs.86.17 |
|
Euro |
1 |
Rs.69.74 |
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.