MIRA
INFORM REPORT
|
Report Date : |
13.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
EMSON
CO., LTD. |
|
|
|
|
Registered Office : |
28/6 Soi Sukhumvit 23 [Prasarnmitr], Sukhumvit Road, Klongtoeynua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.08.1996 |
|
|
|
|
Com. Reg. No.: |
0105539087061 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
subject is
an commission agent
wide range of
products such as
garment, fabric, agriculture
products, diamonds &
gemstones according to
customer’s requirement. |
|
|
|
|
No. of Employees : |
01 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. 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 is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying 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 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has 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 next seven years with a plan to start in 2013.
Source
: CIA
Company name
EMSON CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 28/6
SOI SUKHUMVIT 23
[PRASARNMITR],
SUKHUMVIT ROAD,
KLONGTOEYNUA,
WATTANA, BANGKOK
10110, THAILAND
TELEPHONE : [66] 2259-1338,
2259-7715
FAX :
[66] 2259-1338
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539087061
TAX
ID NO. : 3011757765
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MURLI NARAINDAS
CHUGANI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 1
LINES
OF BUSINESS : COMMISSION AGENT
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 August 6, 1996
as a private
limited company under the
registered name EMSON
CO., LTD., by
Thai and Indian
groups, with the
business objective to
engage in commission
agent of general
products for import
and export. It
currently employs 1
staff.
The subject’s registered address is 28/6
Soi Sukhumvit 23 [Prasarnmitr], Sukhumvit Road, Klongtoeynua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Murli Naraindas Chugani |
|
Indian |
68 |
|
Mr. Chhabria Deepak Motiram |
|
Indian |
42 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Murli Naraindas Chugani
is the Managing
Director.
He is Indian
nationality with the
age of 68
years old.
BUSINESS OPERATIONS
The subject
is an commission
agent wide range
of products such
as garment, fabric,
agriculture products, diamonds & gemstones according
to customer’s requirement.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India
and Republic of
China.
SERVICES
The products are served to
clients both local
and overseas, mainly
in India.
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
Services are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
15-30 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
1 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The
subject was established
in 1996. Since
its commencement, the
subject has a
slow and unstable
business with high
accumulated loss for many
years. Any credit
requested is not
recommended.
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 October 17,
1996
Bht. 6,000,000
on May 4,
1998
The
latest registered 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, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Murli Naraindas Chugani Nationality: Indian Address : 453
Sukhumvit 101/1 Road,
Bangchak,
Prakanong, Bangkok |
10,000 |
16.68 |
|
Mr. Moham Naraindas Chugani Nationality: Indian Address : 453
Sukhumvit 101/1 Road,
Bangchak,
Prakanong, Bangkok |
9,700 |
16.16 |
|
Mr. Chhabria Deepak Motiram Nationality: Indian Address : 28/6
Sukhumvit 23 Road,
Klongtoeynua,
Wattana, Bangkok |
9,700 |
16.16 |
|
Ms. Nutjanee Boonsiri Nationality: Thai Address : 145
Pracharaj Sai 1
Road, Bangsue, Bangkok |
9,000 |
15.00 |
|
Mrs. La-or Sornsrichon Nationality: Thai Address : 782
Somdejprachaotaksin Road, Bukkalo,
Thonburi, Bangkok |
7,200 |
12.00 |
|
Mrs. Monthien Eiamkham Nationality: Thai Address :
280/6 Charansanitwong Road,
Bang-or,
Bangkoknoi, Bangkok |
7,200 |
12.00 |
|
Ms. Laddawan Paengmee Nationality: Thai Address : 822
Charansanitwong Road, Bangplad, Bangkok |
7,200 |
12.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
30,600 |
51.00 |
|
Foreign-Indian |
3 |
29,400 |
49.00 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Sawitree Sroyjak No.
9461
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
70,837.34 |
50,027.26 |
16,488.50 |
|
Other Receivable |
- |
- |
459,034.25 |
|
|
|
|
|
|
Total Current Assets
|
70,837.34 |
50,027.26 |
475,522.75 |
|
Long-term Loan |
- |
- |
700,000.00 |
|
Fixed Assets |
1.00 |
1.00 |
1.00 |
|
Other Non-current Assets |
3,359,649.25 |
3,359,649.25 |
2,900,615.00 |
|
Total Assets |
3,430,487.59 |
3,409,677.51 |
4,076,138.75 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft from Financial Institutions |
- |
- |
6,034,629.36 |
|
Other Payable |
36,873.72 |
31,049.14 |
36,759.80 |
|
Short-term Loan |
8,500,000.00 |
6,500,000.00 |
- |
|
Accrued Income Tax |
6,823.99 |
6,196.71 |
6,485.08 |
|
|
|
|
|
|
Total Current Liabilities |
8,543,697.71 |
6,537,245.85 |
6,077,874.24 |
|
Total Liabilities |
8,543,697.71 |
6,537,245.85 |
6,077,874.24 |
|
|
|
|
|
|
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 |
6,000,000.00 |
|
|
|
|
|
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[11,113,210.12] |
[9,127,568.34] |
[8,001,735.49] |
|
Total Shareholders' Equity |
[5,113,210.12] |
[3,127,568.34] |
[2,001,735.49] |
|
Total Liabilities & Shareholders' Equity |
3,430,487.59 |
3,409,677.51 |
4,076,138.75 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Service Income |
964,703.95 |
1,859,511.81 |
1,126,439.59 |
|
Interest Income |
- |
- |
70,000.00 |
|
Total Revenues |
964,703.95 |
1,859,511.81 |
1,196,439.59 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Service |
337,752.35 |
979,918.98 |
1,018,964.93 |
|
Administrative Expenses |
2,598,869.39 |
1,934,747.56 |
2,181,296.55 |
|
Total Expenses |
2,936,621.74 |
2,914,667.54 |
3,200,261.48 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[1,971,917.79] |
[1,055,155.73] |
[2,003,821.89] |
|
Financial Cost |
- |
[57,790.41] |
[441,069.05] |
|
Profit / [Loss] before Income Tax |
[1,971,917.79] |
[1,112,946.14] |
[2,444,890.94] |
|
Income Tax |
[13,723.99] |
[12,886.71] |
[13,235.08] |
|
|
|
|
|
|
Net Profit / [Loss] |
[1,985,641.78] |
[1,125,832.85] |
[2,458,126.02] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.01 |
0.01 |
0.08 |
|
QUICK RATIO |
TIMES |
0.01 |
0.01 |
0.08 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
964,703.95 |
1,859,511.81 |
1,126,439.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.28 |
0.55 |
0.28 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
- |
- |
- |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
35.01 |
52.70 |
90.46 |
|
SELLING & ADMINISTRATION |
% |
269.40 |
104.05 |
193.65 |
|
INTEREST |
% |
- |
3.11 |
39.16 |
|
GROSS PROFIT MARGIN |
% |
64.99 |
47.30 |
15.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(204.41) |
(56.74) |
(177.89) |
|
NET PROFIT MARGIN |
% |
(205.83) |
(60.54) |
(218.22) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(57.88) |
(33.02) |
(60.31) |
|
EARNING PER SHARE |
BAHT |
(33.09) |
(18.76) |
(40.97) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
2.49 |
1.92 |
1.49 |
|
DEBT TO EQUITY RATIO |
TIMES |
(1.67) |
(2.09) |
(3.04) |
|
TIME INTEREST EARNED |
TIMES |
- |
(18.26) |
(4.54) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(48.12) |
65.08 |
|
|
OPERATING PROFIT |
% |
86.88 |
(47.34) |
|
|
NET PROFIT |
% |
(76.37) |
54.20 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
0.61 |
(16.35) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -48.12%. Turnover has decreased from THB
1,859,511.81 in 2011 to THB 964,703.95 in 2012. While net profit has decreased
from THB -1,125,832.85 in 2011 to THB -1,985,641.78 in 2012. And total assets
has increased from THB 3,409,677.51 in 2011 to THB 3,430,487.59 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
64.99 |
Impressive |
Industrial Average |
47.83 |
|
Net Profit Margin |
(205.83) |
Deteriorated |
Industrial Average |
4.74 |
|
Return on Assets |
(57.88) |
Deteriorated |
Industrial Average |
6.78 |
|
Return on Equity |
- |
|
Industrial Average |
15.28 |
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 64.99%. 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. The company's figure is -205.83%.
When compared with the industry average, the ratio of the company was lower.
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 -57.88%.
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 |
0.01 |
Risky |
Industrial Average |
1.58 |
|
Quick Ratio |
0.01 |
|
|
|
|
Cash Conversion Cycle |
- |
|
|
|
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 0.01 times in 2012, same
figure as 0.01 times in 2011, then the company may not be efficiently
using its current assets. 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 0.01 times in 2012,
same figure as 0.01 times
in 2011, then the company has not
enough current assets that presumably can be quickly converted to cash for pay
financial obligations.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
2.49 |
Risky |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
(1.67) |
Risky |
Industrial Average |
1.29 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 2.49 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
964,703.95 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.28 |
Deteriorated |
Industrial Average |
1.43 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
6.35 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
2.30 |
|
Payables Conversion Period |
- |
|
|
|
The company's Total Asset Turnover is calculated as 0.28 times and 0.55
times in 2012 and 2011 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
UK Pound |
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.31 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.