MIRA INFORM REPORT
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Report No. : |
354429 |
|
Report Date : |
16.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
B.M.G. CORPORATION LIMITED |
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Registered Office : |
29th Floor, Rck Tower,1055/563 Silom Road, Silom, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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|
Financials (as on) : |
31.08.2013 |
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Date of Incorporation : |
13.09.1994 |
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Com. Reg. No.: |
0105537108151 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject is engaged in
importing, distributing and exporting various kinds of precious & semi-precious stones such
as Tanzanite, Tourmaline, Aquamarine |
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|
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No. of Employee : |
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 |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
B.M.G.
CORPORATION LIMITED
SUMMARY
BUSINESS
ADDRESS : 29th FLOOR,
RCK TOWER,
1055/563 SILOM
ROAD, SILOM,
BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE : [66] 2235-9560,
2266-8824
FAX :
[66] 2266-8825
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1994
REGISTRATION
NO. : 0105537108151
TAX
ID NO. : 2000249007
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : AUGUST 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ASHOK SWAMI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : GEMSTONES
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 September 13, 1994 as
a private limited
company under the registered
name B.M.G. CORPORATION LIMITED, by
Thai and Indian groups,
with the objective to
import and export
various kinds of
gemstones. It currently employs 3
staff.
The
subject’s registered address
is 29th Flr.,
RCK Tower, 1055/563
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ashok Swami |
|
Indian |
59 |
|
Mr. Madan Lal Yadan |
|
Indian |
47 |
|
Mr. Manmath Sharma |
|
Indian |
37 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ashok Swami
is the Managing
Director.
He is Indian
nationality with the
age of 59
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and exporting
various kinds of
precious & semi-precious stones such as Tanzanite, Tourmaline,
Aquamarine and etc.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India
and Hong Kong.
SALES
Most of the products
are sold locally
by wholesale to
traders, manufacturers and
end-users, the rest
is exported to
India, U.S.A., Hong
Kong and Japan.
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 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 3 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject’s
sales were slowdown in
2013 resulting by
economic sluggish in
U.S.A. and European markets, while domestic
consumption was also slow. Slow
market growth in
both domestic and
exports had resulted
to shrinking demand
of precious stones
and gemstones including
jewelry products. Most
jewelry business have
been affected from
sluggish economy since
2013.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000 shares
of Bht. 100 each.
The
capital was increased
later as follows:
Bht. 4,000,000
on January 30,
1996
Bht. 6,000,000
on September 18,
2000
The
latest registered capital
was increased to
Bht. 6 million, divided into
60,000 shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at January 31,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Anusorn Ujjin Nationality: Thai Address : 509
South Sathorn Road,
Yannawa,
Sathorn, Bangkok |
28,000 |
46.67 |
|
Mr. Ashok Swami Nationality: Indian Address : 1055/563 Silom Road,
Silom, Bangrak, Bangkok |
23,000 |
38.33 |
|
Mr. Abhishek Swami Nationality: Indian Address : 1055/563
Silom Road, Silom,
Bangrak, Bangkok |
4,000 |
6.67 |
|
Mrs. Prakas Swami Nationality: Indian Address : 1055/563
Silom Road, Silom,
Bangrak, Bangkok |
2,000 |
3.33 |
|
Mr. Surapong Ujjin Nationality: Thai Address : 509
South Sathorn Road,
Yannawa, Sathorn,
Bangkok |
1,300 |
2.17 |
|
Ms. Somwang Charnkla Nationality: Thai Address : 49/9
Somdej Road, Naimuang,
Muang,
Ubonratchathani |
1,300 |
2.17 |
|
Mr. Manmath Sharma Nationality: Indian Address : 1055/563 Silom Road,
Silom, Bangrak, Bangkok |
400 |
0.66 |
Total Shareholders : 7
Share Structure [as
at January 31,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
30,600 |
51.00 |
|
Foreign - Indian |
4 |
29,400 |
49.00 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Benjawan Petmuang No. 10311
Note:
The 2014 financial
statement has not
been submitted to
the Commercial Registration
Department during investigation.
BALANCE
SHEET [BAHT]
The latest financial figures published
as at August 31,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
255,469.04 |
1,973,204.12 |
255,492.10 |
|
Trade Accounts &
Other Receivable |
19,513,157.94 |
16,076,637.39 |
12,841,630.86 |
|
Inventories |
500,000.00 |
- |
15,766,783.04 |
|
Revenue Department Receivable |
- |
- |
682,219.51 |
|
Other Current Assets
|
8,484,453.91 |
11,955,476.50 |
- |
|
|
|
|
|
|
Total Current Assets
|
28,753,080.89 |
30,005,318.01 |
29,546,125.51 |
|
|
|
|
|
|
Fixed Assets |
13.00 |
32,973.95 |
41,382.17 |
|
Deferred Revenue Department Receivable |
- |
- |
3,697,772.55 |
|
Other Non-current Assets |
67,864.02 |
62,889.98 |
12,000.00 |
|
Total Assets |
28,820,957.91 |
30,101,181.94 |
33,297,280.23 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
10,100,624.70 |
11,984,694.91 |
14,379,436.83 |
|
Accrued Income Tax |
156,686.68 |
144,461.87 |
1,421,193.09 |
|
|
|
|
|
|
Total Current Liabilities |
10,257,311.38 |
12,129,156.78 |
15,800,629.92 |
|
Total Liabilities |
10,257,311.38 |
12,129,156.78 |
15,800,629.92 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued 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] |
12,563,646.53 |
11,972,025.16 |
11,496,650.31 |
|
Total Shareholders' Equity |
18,563,646.53 |
17,972,025.16 |
17,496,650.31 |
|
Total Liabilities & Shareholders' Equity |
28,820,957.91 |
30,101,181.94 |
33,297,280.23 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
20,963,137.08 |
23,990,959.13 |
25,269,943.39 |
|
Other Income |
183,652.95 |
645,611.83 |
1,080,256.92 |
|
Total Revenues |
21,146,790.03 |
24,636,570.96 |
26,350,200.31 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,220,582.79 |
21,755,510.53 |
22,265,196.80 |
|
Selling & Administrative Expenses |
1,148,101.47 |
2,261,223.71 |
3,334,436.71 |
|
Total Expenses |
20,368,684.26 |
24,016,734.24 |
25,599,633.51 |
|
Profit / [Loss] before Income
Tax |
778,105.77 |
619,836.72 |
750,566.80 |
|
Income Tax |
[156,686.68] |
[144,461.87] |
[241,734.48] |
|
|
|
|
|
|
Net Profit / [Loss] |
621,419.09 |
475,374.85 |
508,832.32 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.80 |
2.47 |
1.87 |
|
QUICK RATIO |
TIMES |
1.93 |
1.49 |
0.83 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,612,549.01 |
727.57 |
610.65 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.73 |
0.80 |
0.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.50 |
- |
258.47 |
|
INVENTORY TURNOVER |
TIMES |
38.44 |
- |
1.41 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
339.75 |
244.59 |
185.48 |
|
RECEIVABLES TURNOVER |
TIMES |
1.07 |
1.49 |
1.97 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
191.81 |
201.07 |
235.73 |
|
CASH CONVERSION CYCLE |
DAYS |
157.44 |
43.52 |
208.23 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.69 |
90.68 |
88.11 |
|
SELLING & ADMINISTRATION |
% |
5.48 |
9.43 |
13.20 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
9.19 |
12.01 |
16.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.71 |
2.58 |
2.97 |
|
NET PROFIT MARGIN |
% |
2.96 |
1.98 |
2.01 |
|
RETURN ON EQUITY |
% |
3.35 |
2.65 |
2.91 |
|
RETURN ON ASSET |
% |
2.16 |
1.58 |
1.53 |
|
EARNING PER SHARE |
BAHT |
10.36 |
7.92 |
8.48 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.40 |
0.47 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.55 |
0.67 |
0.90 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(12.62) |
(5.06) |
|
|
OPERATING PROFIT |
% |
25.53 |
(17.42) |
|
|
NET PROFIT |
% |
30.72 |
(6.58) |
|
|
FIXED ASSETS |
% |
(99.96) |
(20.32) |
|
|
TOTAL ASSETS |
% |
(4.25) |
(9.60) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -12.62%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.19 |
Impressive |
Industrial
Average |
2.28 |
|
Net Profit Margin |
2.96 |
Impressive |
Industrial
Average |
0.08 |
|
Return on Assets |
2.16 |
Impressive |
Industrial
Average |
2.04 |
|
Return on Equity |
3.35 |
Deteriorated |
Industrial
Average |
6.86 |
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 9.19%. 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 2.96%,
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 ratio is
2.16%, 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. When compared with the
industry average, it was lower, the company's figure is 3.35%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.80 |
Impressive |
Industrial
Average |
1.56 |
|
Quick Ratio |
1.93 |
|
|
|
|
Cash Conversion Cycle |
157.44 |
|
|
|
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 2.8 times in 2013, increase from 2.47 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 1.93 times in 2013,
increase from 1.49 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 158 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Impressive |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
0.55 |
Impressive |
Industrial
Average |
1.95 |
|
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 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 0.36 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,612,549.01 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.73 |
Deteriorated |
Industrial
Average |
24.82 |
|
Inventory Conversion Period |
9.50 |
|
|
|
|
Inventory Turnover |
38.44 |
Acceptable |
Industrial
Average |
53.91 |
|
Receivables Conversion Period |
339.75 |
|
|
|
|
Receivables Turnover |
1.07 |
Deteriorated |
Industrial
Average |
47.59 |
|
Payables Conversion Period |
191.81 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.07 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 increased from 0 day at the end of 2012 to 9 days at the end of
2013. This represents a negative trend. And Inventory turnover has increased
from 0 time in year 2012 to 38.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.73 times and 0.8
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.67.04 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.73.93 |
|
THB |
1 |
Rs.1.85 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TRU |
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.