MIRA
INFORM REPORT
|
Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
GEM WALL [ |
|
|
|
|
Registered Office : |
Room 18d,
12TH Floor, Bangkok
Gems & Jewellery
Tower, 322/18 Surawong
Road, Siphaya, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.05.2013 |
|
|
|
|
Date of Incorporation : |
13.06.1995 |
|
|
|
|
Com. Reg. No.: |
0105538069639 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in importing, distributing and
re-exporting of diamonds, precious
stones and jewelry
products, as well
as exporting of
the local products. |
|
|
|
|
No. of Employees : |
4 |
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries, Thailand achieved steady growth due largely to
industrial and agriculture exports - mostly electronics, agricultural
commodities, automobiles and parts, and processed foods. Unemployment, at less
than 1% of the labor force, stands as one of the lowest levels in the world,
which puts upward pressure on wages in some industries. Thailand also attracts
nearly 2.5 million migrant workers from neighboring countries. The Thai
government in 2013 implemented a nation-wide 300 baht ($10) per day minimum
wage policy and deployed new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic recession severely cut
Thailand's exports, with most sectors experiencing double-digit drops. In late
2011 Thailand's recovery was interrupted by historic flooding in the industrial
areas in Bangkok and its five surrounding provinces, crippling the
manufacturing sector. The government approved flood mitigation projects worth
$11.7 billion, which were started in 2012, to prevent similar economic damage,
and an additional $75 billion for infrastructure over the following seven
years. This was expected to lead to an economic upsurge but growth has remained
slow, in part due to ongoing political unrest and resulting uncertainties.
Spending on infrastructure will require re-approval once a new government is
seated
|
Source
: CIA |
Company name and address
GEM
WALL [THAILAND] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
18D, 12th FLOOR,
BANGKOK GEMS &
JEWELLERY TOWER,
322/18 SURAWONG ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2233-9623,
2631-4255, 081 552-1804
FAX :
[66] 2631-4256
E-MAIL
ADDRESS : kapil@gemwall.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538069639
TAX
ID NO. : 3011588628
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : MAY
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RADHA KISHAN AGGARWAL,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS, JEWELRY
AND PRECIOUS STONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 June 13,
1995 as a
private limited company under
the name style GEM
WALL [THAILAND] CO.,
LTD. by Thai
and Indian groups. Its
business objective is to
import and export various diamonds, jewelry
and precious stones. It
currently employs 4
staff.
The
subject’s registered address
is Room 18D,
12th Flr., Bangkok
Gems & Jewellery Tower,
322/18 Surawong Rd., Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Radha Kishan Aggarwal |
|
Indian |
64 |
|
Mr. Kapil Radha Kishan
Aggarwal |
|
Indian |
43 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Radha Kishan Aggarwal is
the Managing Director.
He is Indian
nationality with the
age of 64 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing,
distributing and re-exporting of diamonds,
precious stones and
jewelry products, as
well as exporting
of the local
products.
PURCHASE
The
products are purchased
from suppliers both domestic
and overseas, mainly
in India and
Belgium.
SALES
The
products are sold
to customers both
local and overseas, mainly
in India, Hong
Kong, Japan and
Singapore.
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 4
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 was formed in 1995
as an importer,
distributor and exporter of
jewelry products. Subject
reported moderate sales
in the year
2013. However decline
consumption in domestic
market caused by
economic slow down and
shrinking purchasing power
has resulted to
negative outcome.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into
20,000 shares of Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 4,000,000
on February 8,
1996
Bht. 11,000,000
on November 25,
1999
Bht. 15,000,000
on December 14,
2000
Bht. 20,000,000
on June 13,
2007
The
latest registered capital
was increased to
Bht. 20,000,000 divided into 200,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at September 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Radha Kishan Aggarwal Nationality: Indian Address : Room
18D, 12th Floor,
Bangkok Gems &
Jewellery Tower, 322/18
Siphaya, Bangrak, Bangkok |
88,000 |
44.00 |
|
Mr. Preecha Puengposod Nationality: Thai Address : 1/23 Moo 7,
Tharaeng, Bangkhen, Bangkok |
20,000 |
10.00 |
|
Ms. Thongpoon Yooraksa Nationality: Thai Address : 53
Moo 8, T. Khaoyoi,
A. Panomsarakham, Chachoengsao |
20,000 |
10.00 |
|
Mrs. Pranee Wongsanoh Nationality: Thai Address : 62/293 Moo 5, Jarakaebua,
Bangkapi, Bangkok |
20,000 |
10.00 |
|
Ms. Jiralak Lekthip Nationality: Thai Address : 132 Moo 7,
T. Talingchan, A. Thasala,
Nakornsrithammarat |
20,000 |
10.00 |
|
Ms. Thongsuk Pinming Nationality: Thai Address : 322/18
Siphaya, Bangrak, Bangkok |
20,000 |
10.00 |
|
Mr. Kapil Radha Kishan
Aggarwal Nationality: Indian Address : Room
18D, 12th Floor,
Bangkok Gems &
Jewellery Tower, 322/18
Siphaya, Bangrak, Bangkok |
10,000 |
5.00 |
|
|
|
|
|
Ms. Supaporn Rithmontree Nationality: Thai Address : 125/59
Moo 13, T. Sila, A. Muang,
Khon Kaen |
2,000 |
1.00 |
Total Shareholders : 8
Share
Structure [as at
September 30, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
102,000 |
51.00 |
|
Foreign - Indian |
2 |
98,000 |
49.00 |
|
Total |
8 |
200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Surin Ruengpetch No.
3741
BALANCE SHEET [BAHT]
The
latest financial figures
published for May
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
116,915.50 |
23,471.75 |
10,743.75 |
|
Trade Accounts Receivable |
7,295,414.00 |
9,579,628.70 |
4,775,531.83 |
|
Inventories |
39,562,173.81 |
36,980,017.26 |
31,673,613.24 |
|
|
|
|
|
|
Total Current Assets
|
46,974,503.31 |
46,583,117.71 |
36,459,888.82 |
|
|
|
|
|
|
Equipment Vehicle |
680.77 |
1,179.58 |
2,859.95 |
|
Building |
6,159,702.17 |
6,454,232.67 |
6,748,761.17 |
|
Total Assets |
53,134,886.25 |
53,038,529.96 |
43,211,509.94 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
3,987,830.08 |
3,972,496.83 |
3,431,905.00 |
|
Trade Accounts & Other Payable |
25,283,767.22 |
24,109,199.95 |
25,420,369.08 |
|
|
|
|
|
|
Total Current Liabilities |
29,271,597.30 |
28,081,696.78 |
28,852,274.08 |
|
|
|
|
|
|
Loan Payable from Related Person |
11,650,000.00 |
11,650,000.00 |
- |
|
Loan Payable from Financial Institutions |
1,439,783.34 |
2,756,432.87 |
4,004,849.34 |
|
Total Liabilities |
42,361,380.64 |
42,488,125.65 |
32,857,123.42 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 200,000 shares |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
|
Capital Paid |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[9,226,494.39] |
[9,449,599.69] |
[9,645,613.48] |
|
Total Shareholders' Equity |
10,773,505.61 |
10,550,400.31 |
10,354,386.52 |
|
Total Liabilities &
Shareholders' Equity |
53,134,886.25 |
53,038,529.96 |
43,211,509.94 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
20,578,260.39 |
20,266,389.58 |
20,929,130.04 |
|
Other Income |
1,254,931.44 |
440,000.00 |
1,082,474.13 |
|
Total Revenues |
21,833,191.83 |
20,706,389.58 |
22,011,604.17 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
17,387,522.03 |
15,696,007.88 |
17,689,400.48 |
|
Selling and Administrative Expenses |
3,447,712.54 |
3,959,931.10 |
3,376,107.59 |
|
Total Expenses |
20,835,234.57 |
19,655,938.98 |
21,065,508.07 |
|
Profit before Financial Cost & Income Tax |
997,957.26 |
1,050,450.60 |
946,096.10 |
|
Financial Cost |
[698,279.20] |
[702,438.87] |
[651,486.53] |
|
Profit before Income Tax |
299,678.06 |
346,011.73 |
294,609.57 |
|
Income Tax |
[76,572.76] |
[151,997.94] |
[94,181.06] |
|
Net Profit / [Loss] |
223,105.30 |
196,013.79 |
200,428.51 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.60 |
1.66 |
1.26 |
|
QUICK RATIO |
TIMES |
0.25 |
0.34 |
0.17 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.34 |
3.14 |
3.10 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.39 |
0.38 |
0.48 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
830.49 |
859.95 |
653.55 |
|
INVENTORY TURNOVER |
TIMES |
0.44 |
0.42 |
0.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
129.40 |
172.53 |
83.28 |
|
RECEIVABLES TURNOVER |
TIMES |
2.82 |
2.12 |
4.38 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
530.76 |
560.64 |
524.52 |
|
CASH CONVERSION CYCLE |
DAYS |
429.13 |
471.83 |
212.31 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.49 |
77.45 |
84.52 |
|
SELLING & ADMINISTRATION |
% |
16.75 |
19.54 |
16.13 |
|
INTEREST |
% |
3.39 |
3.47 |
3.11 |
|
GROSS PROFIT MARGIN |
% |
21.60 |
24.72 |
20.65 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.85 |
5.18 |
4.52 |
|
NET PROFIT MARGIN |
% |
1.08 |
0.97 |
0.96 |
|
RETURN ON EQUITY |
% |
2.07 |
1.86 |
1.94 |
|
RETURN ON ASSET |
% |
0.42 |
0.37 |
0.46 |
|
EARNING PER SHARE |
BAHT |
1.12 |
0.98 |
1.00 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.80 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.93 |
4.03 |
3.17 |
|
TIME INTEREST EARNED |
TIMES |
1.43 |
1.50 |
1.45 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.54 |
(3.17) |
|
|
OPERATING PROFIT |
% |
(5.00) |
11.03 |
|
|
NET PROFIT |
% |
13.82 |
(2.20) |
|
|
FIXED ASSETS |
% |
(4.57) |
(4.39) |
|
|
TOTAL ASSETS |
% |
0.18 |
22.74 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 1.54%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.60 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
1.08 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
0.42 |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
2.07 |
Deteriorated |
Industrial Average |
14.14 |
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. Gross Profit Margin is 21.6%. When
compared with the industry average, the ratio of the company was higher,
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. Net Profit Margin ratio is 1.08%,
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. When compared with the
industry average, it was lower, the company's figure is 0.42%.
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. When compared with the
industry average, it was lower, the company's figure is 2.07%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.60 |
Impressive |
Industrial Average |
1.60 |
|
Quick Ratio |
0.25 |
|
|
|
|
Cash Conversion Cycle |
429.13 |
|
|
|
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 1.60 times in 2013, decrease from 1.66 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 0.25 times in 2013,
decrease from 0.34 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 430 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.93 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
1.43 |
Impressive |
Industrial Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.43 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 0.8 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 Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.34 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.39 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
830.49 |
|
|
|
|
Inventory Turnover |
0.44 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
129.40 |
|
|
|
|
Receivables Turnover |
2.82 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
530.76 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.82 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 860 days at the
end of 2012 to 830 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.42 times in year 2012 to 0.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.39 times and 0.38
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.86 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.