MIRA INFORM REPORT
|
Report No. : |
354594 |
|
Report Date : |
17.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
N.B. GEMS LIMITED |
|
|
|
|
Registered Office : |
Suite 2-3, 5th Floor,
Biya & Sons Building,
314/2-3 Silom Road,
Suriyawongse, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
13.05.1987 |
|
|
|
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Com. Reg. No.: |
0105530022544 |
|
|
|
|
Legal Form : |
Private Limited Company
|
|
|
|
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LINE OF BUSINESS : |
IMPORT, DISTRIBUTE
AND EXPORT VARIOUS KINDS
OF DIAMONDS, GEMS
AND JEWELRY PRODUCTS.
|
|
|
|
|
Employees: |
Not Available |
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 – 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
N.B. GEMS LIMITED
SUMMARY
BUSINESS ADDRESS : SUITE 2-3, 5th FLOOR,
BIYA & SONS BUILDING,
314/2-3 SILOM
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2233-3454
FAX : [66] 2236-5043
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1987
REGISTRATION NO. : 0105530022544
TAX ID NO. : 3101443721
CAPITAL REGISTERED : BHT.
12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
NO. OF STAFF : N/A
LINES OF BUSINESS : DIAMONDS, GEMS
AND JEWELRY PRODUCTS
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 May 13,
1987 as a
private limited company
under the registered
name N.B. GEMS LIMITED,
by Thai and
Indian groups, with the
business objective to
import, distribute and export
various kinds of diamonds, gems
and jewelry products.
The subject’s registered
address is Suite
2-3, 5th Floor,
Biya & Sons Building, 314/2-3
Silom Road, Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Milharudeen Mohamed |
|
Indian |
37 |
|
Mr. Abdul Majeed Hamayan |
|
Indian |
68 |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in prime
commercial area.
Note:
The subject refused
to release company’s
information.
COMMENT
The subject was
established in 1987.
Since commencement, its
business has grown
slowly. However, market
situation is not
bright for its
business, the subject
would grow at
slow pace.
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 May 27,
1992
Bht. 6,000,000
on July 21,
1992
Bht. 11,000,000
on March 29,
1996
Bht. 12,000,000
on May 22,
2006
The latest registered
capital was increased
to Bht. 12,000,000 divided
into 120,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at May
26, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Milharudeen Mohamed Nationality: Indian Address : 314/2-3
Silom Road, Suriyawongse,
Bangrak, Bangkok |
29,400 |
24.50 |
|
Mr. Abdul Majeed Hamayan Nationality: Indian Address : 919/429
Silom Road, Silom,
Bangrak, Bangkok |
29,400 |
24.50 |
|
Ms. Siriporn Jantarad Nationality: Thai Address : 960/1
Therdthai Road, Bukkalo,
Thonburi, Bangkok |
15,300 |
12.75 |
|
Mr. Wiwat Wangsermwong Nationality: Thai Address : 270/69
Charansanitwong Road, Bangyikan, |
15,300 |
12.75 |
|
Mr. Bandit Rojanapoomkul Nationality: Thai Address : 234/6
Sukhumvit Road, Prakanong,
Bangkok |
15,300 |
12.75 |
|
Mr. Korkiat Janbankode Nationality: Thai Address : 27
Rajadamnoen Klang Road,
Wadbowornniwes,
Phranakorn, Bangkok |
15,300 |
12.75 |
Total Shareholders : 6
Share Structure
[as at May
26, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
61,200 |
51.00 |
|
Foreign - Indian |
2 |
58,800 |
49.00 |
|
Total |
6 |
120,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Suchart Srimanjuntha No. 3549
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 |
92,822.54 |
511,100.61 |
432,879.51 |
|
Trade Accounts Receivable
|
4,340,131.49 |
3,955,838.55 |
4,375,315.42 |
|
Inventories |
2,019,819.89 |
2,019,819.89 |
1,820,023.60 |
|
Other Current Assets
|
216,756.94 |
207,018.48 |
182,433.15 |
|
|
|
|
|
|
Total Current Assets
|
6,669,530.86 |
6,693,777.53 |
6,810,651.68 |
|
|
|
|
|
|
Fixed Assets |
4,336,969.90 |
4,480,915.40 |
4,746,790.78 |
|
Total Assets |
11,006,500.76 |
11,174,692.93 |
11,557,442.46 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable
|
221,999.53 |
220,901.37 |
- |
|
Accrued Income Tax |
76,586.25 |
51,258.11 |
35,398.67 |
|
Accrued Expenses |
56,505.46 |
50,801.79 |
53,524.33 |
|
|
|
|
|
|
Total Current Liabilities |
355,091.24 |
322,961.27 |
88,923.00 |
|
Long-term Loan from Bank |
- |
576,142.14 |
1,268,054.21 |
|
Total Liabilities |
355,091.24 |
899,103.41 |
1,356,977.21 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value authorized and
issued share capital
120,000 shares |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
|
|
|
|
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[1,348,590.48] |
[1,724,410.48] |
[1,799,534.75] |
|
Total Shareholders' Equity |
10,651,409.52 |
10,275,589.52 |
10,200,465.25 |
|
Total Liabilities &
Shareholders' Equity |
11,006,500.76 |
11,174,692.93 |
11,557,442.46 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
23,160,265.66 |
16,443,236.44 |
16,673,720.02 |
|
Other Income |
98,796.52 |
538,660.30 |
- |
|
Total Revenues |
23,259,062.18 |
16,981,896.74 |
16,673,720.02 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,757,404.00 |
13,642,663.25 |
12,842,594.96 |
|
Selling Expenses |
- |
- |
92,639.72 |
|
Administrative Expenses |
2,950,625.72 |
3,045,346.18 |
3,497,879.80 |
|
Total Expenses |
22,708,029.72 |
16,688,009.43 |
16,433,114.48 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
551,032.46 |
293,887.31 |
240,605.54 |
|
Financial Cost |
[38,626.21] |
[110,004.93] |
[181,924.24] |
|
Profit / [Loss] before Income
Tax |
512,406.25 |
183,882.38 |
58,681.30 |
|
Income Tax |
[136,586.25] |
[108,758.11] |
[115,048.67] |
|
|
|
|
|
|
Net Profit / [Loss] |
375,820.00 |
75,124.27 |
[56,367.37] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
18.78 |
20.73 |
76.59 |
|
QUICK RATIO |
TIMES |
12.48 |
13.83 |
54.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.34 |
3.67 |
3.51 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.10 |
1.47 |
1.44 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
37.31 |
54.04 |
51.73 |
|
INVENTORY TURNOVER |
TIMES |
9.78 |
6.75 |
7.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
68.40 |
87.81 |
95.78 |
|
RECEIVABLES TURNOVER |
TIMES |
5.34 |
4.16 |
3.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.10 |
5.91 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
101.61 |
135.94 |
147.51 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.31 |
82.97 |
77.02 |
|
SELLING & ADMINISTRATION |
% |
12.74 |
18.52 |
21.53 |
|
INTEREST |
% |
0.17 |
0.67 |
1.09 |
|
GROSS PROFIT MARGIN |
% |
15.12 |
20.31 |
22.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.38 |
1.79 |
1.44 |
|
NET PROFIT MARGIN |
% |
1.62 |
0.46 |
(0.34) |
|
RETURN ON EQUITY |
% |
3.53 |
0.73 |
(0.55) |
|
RETURN ON ASSET |
% |
3.41 |
0.67 |
(0.49) |
|
EARNING PER SHARE |
BAHT |
3.13 |
0.63 |
(0.47) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.03 |
0.08 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.03 |
0.09 |
0.13 |
|
TIME INTEREST EARNED |
TIMES |
14.27 |
2.67 |
1.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
40.85 |
(1.38) |
|
|
OPERATING PROFIT |
% |
87.50 |
22.14 |
|
|
NET PROFIT |
% |
400.26 |
233.28 |
|
|
FIXED ASSETS |
% |
(3.21) |
(5.60) |
|
|
TOTAL ASSETS |
% |
(1.51) |
(3.31) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 40.85%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
15.12 |
Satisfactory |
Industrial Average |
16.41 |
|
Net Profit Margin |
1.62 |
Impressive |
Industrial Average |
1.41 |
|
Return on Assets |
3.41 |
Impressive |
Industrial Average |
3.02 |
|
Return on Equity |
3.53 |
Deteriorated |
Industrial Average |
8.20 |
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 15.12%. 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 1.62%, 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
3.41%, 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 3.53%.
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 |
18.78 |
Impressive |
Industrial Average |
1.66 |
|
Quick Ratio |
12.48 |
|
|
|
|
Cash Conversion Cycle |
101.61 |
|
|
|
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 18.78 times in 2014, decreased from 20.73 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 12.48 times in 2014,
decreased from 13.83 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 102 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.03 |
Impressive |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
0.03 |
Impressive |
Industrial Average |
1.49 |
|
Times Interest Earned |
14.27 |
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 lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 14.27 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 0.03 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 : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.34 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.10 |
Satisfactory |
Industrial Average |
2.14 |
|
Inventory Conversion Period |
37.31 |
|
|
|
|
Inventory Turnover |
9.78 |
Impressive |
Industrial Average |
3.44 |
|
Receivables Conversion Period |
68.40 |
|
|
|
|
Receivables Turnover |
5.34 |
Impressive |
Industrial Average |
4.11 |
|
Payables Conversion Period |
4.10 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.34 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 54 days at the
end of 2013 to 37 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 6.75 times in year 2013 to 9.78 times
in year 2014.
The company's Total Asset Turnover is calculated as 2.1 times and 1.47
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.66.85 |
|
|
1 |
Rs.100.58 |
|
Euro |
1 |
Rs.73.16 |
Thai Baht
|
1 |
Rs.1.84 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.