MIRA
INFORM REPORT
|
Report Date : |
06.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
R. A. GEMS INTERNATIONAL CO.
LTD. |
|
|
|
|
Registered Office : |
Room C, 9TH Floor, Gems
Tower, 1249/89 Charoenkrung Road,
Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
21.03.2005 |
|
|
|
|
Com. Reg. No.: |
0105548040111 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and
Exporter of Diamonds and Gemstones |
|
|
|
|
No. of Employees : |
3 |
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 |
|
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
R. A. GEMS INTERNATIONAL CO. LTD.
SUMMARY
BUSINESS ADDRESS : ROOM C, 9th FLOOR, GEMS
TOWER,
1249/89 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-0701-2,
084 022-2565, 080
451-6467
FAX : [66] 2267-7578
E-MAIL ADDRESS : abhishek107@yahoo.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548040111
TAX ID NO. : 3031749313
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI
: 55%
INDIAN
: 45%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ABHISHEK RAJKUMAR
JAIN, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
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
March 21, 2005
as a private
limited company under the
name style R.A. GEMS
INTERNATIONAL CO., LTD.,
by Thai and
Indian groups, in order
to engage in
diamond and gemstones
trading business. It currently
employs 3 staff.
The subject’s registered
address is Room
C, 9th Flr.,
Gems Tower, 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Abhishek Rajkumar Jain |
|
Indian |
32 |
|
Mr. Mukul Daga |
|
Indian |
32 |
|
Mr. Divyedh Hasmukhlal
Morkhia |
|
Indian |
32 |
|
Mr. Vishal Nahar |
|
Indian |
25 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Abhishek Rajkumar Jain
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
diamonds and gemstones,
as well as
exporting of diamonds,
gemstones and jewelry
products.
PURCHASE
Most of gemstones
are purchased from
local suppliers, the
remaining and diamonds
are imported from
India and South
Africa.
SALES
The products are
sold locally by
wholesale to traders,
manufacturers and end-users.
EXPORT
Gemstones, diamonds and
jewelry products are
exported to United
States of America,
Hong Kong, Japan, Republic
of China and
European countries.
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 credit term
of 30 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
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject 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’s business in the
past year was
brisk due to demand of diamond and gemstones from jewelry industry had
grown well, also local consumption and exports of jewelry
products are improving.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 4,000,000 divided into 40,000 shares of Bht. 100
each.
On June 22, 2005,
the 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. Abhishek Rajkumar Jain Nationality: Indian Address : 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
13,500 |
22.50 |
|
Mr. Mukul Daga Nationality: Indian Address : 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
13,500 |
22.50 |
|
Mrs. Debi Tripatee Nationality: Thai Address : 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
6,600 |
11.00 |
|
Mr. Sayan Butraraj Nationality: Thai Address :
1249/89 Charoenkrung Rd.,
Suriyawongse,
Bangrak, Bangkok |
6,600 |
11.00 |
|
Ms. Sa-ard Dee-udom Nationality: Thai Address : 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
6,600 |
11.00 |
|
Ms. Kit Prompila Nationality: Thai Address : 1249/89
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
6,600 |
11.00 |
|
Ms. Metta Khantiwong Nationality: Thai Address : 1249/89
Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok |
6,600 |
11.00 |
Total Shareholders : 7
Share Structure
[as at April
30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
33,000 |
55.00 |
|
Foreign-Indian |
2 |
27,000 |
45.00 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Anchalee Khaola-or No.
10363
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents
|
118,080.13 |
2,492,423.08 |
|
Trade Accounts Receivable |
1,223,373.87 |
22,185,496.87 |
|
Inventories |
35,859,125.51 |
3,911,158.95 |
|
Other Current Assets
|
25,122.27 |
4,000.00 |
|
Total Current Assets
|
37,225,701.78 |
28,593,078.90 |
|
Total Assets |
37,225,701.78 |
28,593,078.90 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
32,968,829.23 |
24,487,548.60 |
|
Other Current Liabilities |
270,274.70 |
123,047.46 |
|
Total Current Liabilities |
33,239,103.93 |
24,610,596.06 |
|
Total Liabilities |
33,239,103.93 |
24,610,596.06 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par 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 |
[2,013,402.15] |
[2,017,517.16] |
|
Total Shareholders' Equity |
3,986,597.85 |
3,982,482.84 |
|
Total Liabilities & Shareholders' Equity |
37,225,701.78 |
28,593,078.90 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
97,015,503.23 |
37,908,038.04 |
|
Other Income |
3,540.18 |
679.99 |
|
Gain on Exchange Rate |
538,859.99 |
- |
|
Total Revenues |
97,557,903.40 |
37,908,718.03 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
94,785,193.06 |
35,765,256.71 |
|
Selling Expenses |
714,528.82 |
182,086.97 |
|
Administrative Expenses |
1,726,125.08 |
1,567,148.12 |
|
Loss on Exchange Rate |
- |
43,509.90 |
|
Total Expenses |
97,225,846.96 |
37,558,001.70 |
|
Profit / [Loss] Before Income
Tax |
332,056.44 |
350,716.33 |
|
Income Tax |
[327,941.43] |
[110,087.46] |
|
Net Profit / [Loss] |
4,115.01 |
240,628.87 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
1.16 |
|
QUICK RATIO |
TIMES |
0.04 |
1.00 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.61 |
1.33 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
138.09 |
39.92 |
|
INVENTORY TURNOVER |
TIMES |
2.64 |
9.14 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
4.60 |
213.61 |
|
RECEIVABLES TURNOVER |
TIMES |
79.30 |
1.71 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
126.96 |
249.91 |
|
CASH CONVERSION CYCLE |
DAYS |
15.73 |
3.62 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
97.70 |
94.35 |
|
SELLING & ADMINISTRATION |
% |
2.52 |
4.61 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
2.86 |
5.65 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.34 |
0.93 |
|
NET PROFIT MARGIN |
% |
0.00 |
0.63 |
|
RETURN ON EQUITY |
% |
0.10 |
6.04 |
|
RETURN ON ASSET |
% |
0.01 |
0.84 |
|
EARNING PER SHARE |
BAHT |
0.07 |
4.01 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.86 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.34 |
6.18 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
155.92 |
|
|
OPERATING PROFIT |
% |
(5.32) |
|
|
NET PROFIT |
% |
(98.29) |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
30.19 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.86 |
Deteriorated |
Industrial Average |
9.17 |
|
Net Profit Margin |
0.00 |
Impressive |
Industrial Average |
(0.11) |
|
Return on Assets |
0.01 |
Impressive |
Industrial Average |
(0.16) |
|
Return on Equity |
0.10 |
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 2.86%. 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%,
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 is 0.01%, 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 0.1%, 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 |
1.12 |
Deteriorated |
Industrial Average |
2.38 |
|
Quick Ratio |
0.04 |
|
|
|
|
Cash Conversion Cycle |
15.73 |
|
|
|
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 1.12 times in 2011, decreased from 1.16 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 0.04 times in 2011,
decreased from 1.0 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 16 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 |
0.58 |
|
Debt to Equity Ratio |
8.34 |
Risky |
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 0.89 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 |
- |
|
Industrial Average |
6.08 |
|
Total Assets Turnover |
2.61 |
Impressive |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
138.09 |
|
|
|
|
Inventory Turnover |
2.64 |
Impressive |
Industrial Average |
1.38 |
|
Receivables Conversion Period |
4.60 |
|
|
|
|
Receivables Turnover |
79.30 |
Impressive |
Industrial Average |
3.38 |
|
Payables Conversion Period |
126.96 |
|
|
|
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.54.88 |
|
UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.