MIRA INFORM REPORT
|
Report No. : |
354114 |
|
Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
ROYAL GEMS STONE
CO., LTD. |
|
|
|
|
Registered Office : |
3rd Floor,
Room 302, Sitthikorn
Building, Mahaesak Road, Suriyawongse, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
28.04.1992 |
|
|
|
|
Com. Reg. No.: |
0105535071497 |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
LINE OF BUSINESS : |
THE SUBJECT
IS ENGAGED IN
IMPORTING, DISTRIBUTING AND
RE-EXPORTING VARIOUS KINDS
OF DIAMONDS AND
GEMSTONES, AS WELL
AS EXPORTING THE
LOCAL PRODUCTS FOR
JEWELRY PRODUCTION INDUSTRY. |
|
|
|
|
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 : |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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, and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. The economy experienced slow growth and declining exports in 2014, in
part due to domestic political turmoil and sluggish global demand. With full
employment, Thailand attracts an estimated 2-4 million migrant workers from
neighboring countries, and faces labor shortages. Following the May 2014 coup
d'etat, tourism decreased 6-7% but is beginning to recover. The household debt
to GDP ratio is over 80%. 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 baht has remained
stable.
|
Source
: CIA |
company name
ROYAL GEMS STONE CO., LTD.
[FORMER :
METRO GEMS CO.,
LTD.]
SUMMARY
BUSINESS ADDRESS : 3rd FLOOR,
ROOM 302, SITTHIKORN
BUILDING,
MAHAESAK ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2237-3516,
2233-4950
FAX : [66]
2237-3516
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1992
REGISTRATION NO.
: 0105535071497
TAX ID NO. : 3011123713
CAPITAL REGISTERED : BHT. 11,000,000
CAPITAL PAID-UP
: BHT.
11,000,000
SHAREHOLDER’S PROPORTION : THAI : 51.00%
INDIAN :
49.00%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. LALIT KOTHARI,
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
April 28, 1992
as a private
limited company under
the originally registered
name “Metro
Gems Co., Ltd.” by Thai
and Indian groups.
On September 5,
2007, the subject’s
registered name was
changed to ROYAL
GEMS STONE CO.,
LTD. Its objective is
to engage in
trading jewelry business.
It currently employs
3 staff.
The subject’s
registered address is 3rd Floor,
Room 302, Sitthikorn
Building, 206 Mahaesak
Road, Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Lalit Kothari |
|
Indian |
39 |
|
Mrs. Nidhi Kothari |
|
Indian |
37 |
|
Mr. Gowind Grisan
Kothari |
|
Indian |
61 |
|
Mr. Syed Salim
Javidh Syed Idhris
Basha |
|
Indian |
24 |
AUTHORIZED
PERSON
Anyone of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Lalit Kothari
is the Managing
Director.
He is
Indian nationality with
the age of
39 years old.
BUSINESS
OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting various kinds
of diamonds and
gemstones, as well
as exporting the
local products for
jewelry production industry.
PURCHASE
The products
are purchased from
suppliers both domestic
and overseas in
India.
SALES
[LOCAL]
The products
are sold locally
by wholesale to
manufacturers and end-users.
EXPORT
The products
are exported and
re-exported to Hong
Kong, India, Republic
of China and
Japan.
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 T/T.
Exports are
against T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
currently 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 reported
moderate sales in the year
2014. In effect
of economy sluggish
and shrinking purchasing
power in 2015,
its business is
expected to grow
at slow pace.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 3,000,000 divided
into 30,000 shares
of Bht. 100
each with fully
paid.
The capital
was increased later
as follows:
Bht. 4,000,000
on May 13,
1997
Bht. 6,000,000
on May 20,
1999
Bht. 8,000,000
on December 21,
1999
Bht.
11,000,000 on November
28, 2000
The latest
registered capital was
increased to Bht.
11,000,000 divided into
110,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Lalit Kothari Nationality: Indian Address :
206 Mahaesak Road,
Suriyawongse, Bangrak, Bangkok |
52,500 |
47.73 |
|
Mrs. Ratri Manavanich Nationality: Thai Address :
48 Phahyathai Road,
Thung Phayathai, Rajthewi, Bangkok |
18,700 |
17.00 |
|
Mr. Jamnong Pleesudjai Nationality: Thai Address : 234/17
Krungthekreetha Road, Huamark,
Bangkapi, Bangkok |
18,700 |
17.00 |
|
Mrs. Sumalee Langsanti Nationality: Thai Address :
283 Dindaeng Road,
Samsennai, Phayathai, Bangkok |
18,700 |
17.00 |
|
Mr. Kiriraj Prasad
Kater Nationality: Indian Address :
206 Mahaesak Road,
Suriyawongse, Bangrak, Bangkok |
500 |
0.45 |
|
Mr. Syed Salim
Javidh Syed Idhris
Basha Nationality: Indian Address :
206 Mahaesak Road,
Suriyawongse, Bangrak, Bangkok |
500 |
0.45 |
|
Mr. Gowind Grisan
Kothari Nationality: Indian Address :
206 Mahaesak Road,
Suriyawongse, Bangrak, Bangkok |
400 |
0.37 |
Total Shareholders
: 7
Share Structure [as
at April 30, 2015]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
56,100 |
51.00 |
|
Foreign-Indian |
4 |
53,900 |
49.00 |
|
Total |
7 |
110,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Sirirat Adam
No. 8820
BALANCE
SHEET [BAHT]
The
latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
102,750.55 |
132,587.31 |
233,078.91 |
|
Trade Accounts
& Other Receivable
|
11,611,147.38 |
20,709,768.08 |
12,733,871.79 |
|
Inventories |
7,496,066.99 |
10,377,094.97 |
7,909,984.14 |
|
|
|
|
|
|
Total Current
Assets |
19,209,964.92 |
31,219,450.36 |
20,876,934.84 |
|
|
|
|
|
|
Long-term Loans |
5,900,000.00 |
6,700,000.00 |
8,100,000.00 |
|
Fixed Assets |
65,381.77 |
75,155.58 |
98,008.30 |
|
Other Non - current Assets |
42,600.00 |
42,600.00 |
42,600.00 |
|
Total Assets |
25,217,946.69 |
38,037,205.94 |
29,117,543.14 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
14,940,967.18 |
28,168,887.97 |
19,366,755.65 |
|
Accrued Income
Tax |
170,247.75 |
111,824.25 |
101,510.44 |
|
|
|
|
|
|
Total Current Liabilities
|
15,111,214.93 |
28,280,712.22 |
19,468,266.09 |
|
Total Liabilities |
15,111,214.93 |
28,280,712.22 |
19,468,266.09 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized
and issued share
capital 110,000 shares |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
|
|
|
|
|
Capital Paid |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Retained
Earning Unappropriated [Deficit] |
[893,268.24] |
[1,243,506.28] |
[1,350,722.95] |
|
Total
Shareholders' Equity |
10,106,731.76 |
9,756,493.72 |
9,649,277.05 |
|
Total Liabilities
& Shareholders' Equity |
25,217,946.69 |
38,037,205.94 |
29,117,543.14 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
58,515,310.85 |
34,340,969.12 |
24,935,763.80 |
|
Other Income |
480,346.73 |
134,000.00 |
246,965.81 |
|
Total Revenues |
58,995,657.58 |
34,474,969.12 |
25,182,729.61 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
54,249,883.26 |
29,407,212.59 |
21,061,230.99 |
|
Selling Expenses |
319,916.90 |
323,209.63 |
398,177.01 |
|
Administrative Expenses |
3,861,112.13 |
3,829,756.61 |
3,684,135.54 |
|
Other Expenses |
- |
654,519.29 |
- |
|
Total
Expenses |
58,430,912.29 |
34,214,698.12 |
25,143,543.54 |
|
|
|
|
|
|
Profit /
[Loss] before Financial Cost &
Income Tax |
564,745.29 |
260,271.00 |
39,186.07 |
|
Financial Cost |
[44,259.50] |
[43,280.85] |
[29,126.62] |
|
Profit /
[Loss] before Income
Tax |
520,485.79 |
216,990.15 |
10,059.45 |
|
Income Tax |
[170,247.75] |
[109,773.48] |
[95,030.73] |
|
|
|
|
|
|
Net Profit / [Loss] |
350,238.04 |
107,216.67 |
[84,971.28] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.27 |
1.10 |
1.07 |
|
QUICK RATIO |
TIMES |
0.78 |
0.74 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
894.98 |
456.93 |
254.43 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
2.32 |
0.90 |
0.86 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
50.43 |
128.80 |
137.08 |
|
INVENTORY
TURNOVER |
TIMES |
7.24 |
2.83 |
2.66 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
72.43 |
220.12 |
186.39 |
|
RECEIVABLES
TURNOVER |
TIMES |
5.04 |
1.66 |
1.96 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
100.52 |
349.63 |
335.63 |
|
CASH CONVERSION
CYCLE |
DAYS |
22.34 |
(0.71) |
(12.16) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
92.71 |
85.63 |
84.46 |
|
SELLING &
ADMINISTRATION |
% |
7.15 |
12.09 |
16.37 |
|
INTEREST |
% |
0.08 |
0.13 |
0.12 |
|
GROSS PROFIT
MARGIN |
% |
8.11 |
14.76 |
16.53 |
|
NET PROFIT
MARGIN BEFORE EX. ITEM |
% |
0.97 |
0.76 |
0.16 |
|
NET PROFIT
MARGIN |
% |
0.60 |
0.31 |
(0.34) |
|
RETURN ON
EQUITY |
% |
3.47 |
1.10 |
(0.88) |
|
RETURN ON ASSET |
% |
1.39 |
0.28 |
(0.29) |
|
EARNING PER
SHARE |
BAHT |
3.18 |
0.97 |
(0.77) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.74 |
0.67 |
|
DEBT TO EQUITY
RATIO |
TIMES |
1.50 |
2.90 |
2.02 |
|
TIME INTEREST
EARNED |
TIMES |
12.76 |
6.01 |
1.35 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
70.40 |
37.72 |
|
|
OPERATING
PROFIT |
% |
116.98 |
564.19 |
|
|
NET PROFIT |
% |
226.66 |
226.18 |
|
|
FIXED ASSETS |
% |
(13.00) |
(23.32) |
|
|
TOTAL ASSETS |
% |
(33.70) |
30.63 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales
growth is 70.4%. Turnover has increased
from THB 34,340,969.12 in 2013 to THB 58,515,310.85 in 2014. While net profit has
increased from THB 107,216.67 in 2013 to THB 350,238.04 in 2014. And total
assets has decreased from THB 38,037,205.94 in 2013 to THB 25,217,946.69 in
2014.
PROFITABILITY :
RISKY
PROFITABILITY RATIO
|
Gross Profit
Margin |
8.11 |
Acceptable |
Industrial
Average |
14.45 |
|
Net Profit
Margin |
0.60 |
Deteriorated |
Industrial
Average |
2.32 |
|
Return on
Assets |
1.39 |
Deteriorated |
Industrial
Average |
4.94 |
|
Return on
Equity |
3.47 |
Deteriorated |
Industrial
Average |
13.14 |
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. The company's figure is 8.11%. When compared with the industry
average, the ratio of the company was lower. This indicated that company may
have 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 0.6%. 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 1.39%.
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 3.47%.
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 |
1.27 |
Acceptable |
Industrial
Average |
1.77 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion
Cycle |
22.34 |
|
|
|
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 1.27 times in 2014,
increase from 1.1 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 0.78 times in 2014, increase from 0.74 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 23 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial
Average |
0.60 |
|
Debt to Equity
Ratio |
1.50 |
Risky |
Industrial
Average |
1.46 |
|
Times Interest
Earned |
12.76 |
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 12.76
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 0.6 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 Downtrend
Times Interest
Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets
Turnover |
894.98 |
Impressive |
Industrial
Average |
- |
|
Total Assets
Turnover |
2.32 |
Impressive |
Industrial
Average |
2.13 |
|
Inventory
Conversion Period |
50.43 |
|
|
|
|
Inventory
Turnover |
7.24 |
Impressive |
Industrial
Average |
3.38 |
|
Receivables
Conversion Period |
72.43 |
|
|
|
|
Receivables
Turnover |
5.04 |
Impressive |
Industrial
Average |
4.06 |
|
Payables
Conversion Period |
100.52 |
|
|
|
The company's
Account Receivable Ratio is calculated as 5.04 and 1.66 in 2014 and 2013
respectively. This ratio measures the efficiency of the company in managing its
trade debtors to generate revenue. A lower ratio may indicate over extension
and collection problems. Conversely, a higher ratio may indicate an overtly
stringent policy. In this case, the company's A/R ratio in 2014 increased from
2013. This would suggest the company had good performance in the management of
its debt collections.
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 129 days at the end of 2013 to 50 days at the end of 2014. This
represents a positive trend. And Inventory turnover has increased from 2.83
times in year 2013 to 7.24 times in year 2014.
The company's Total
Asset Turnover is calculated as 2.32 times and 0.9 times in 2014 and 2013
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.66.99 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.73.47 |
|
Thai Baht |
1 |
Rs.1.86 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
AMR |
|
|
|
|
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.