MIRA
INFORM REPORT
|
Report No. : |
307705 |
|
Report Date : |
13.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
DERS INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
Room No. 301, 3rd Floor,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.04.2014 |
|
|
|
|
Date of Incorporation : |
15.05.1990 |
|
|
|
|
Com. Reg. No.: |
0105533054994 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Gems, Precious and Semi-Precious Stones |
|
|
|
|
No. of Employees : |
6 |
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 |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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
DERS INTERNATIONAL
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
NO. 301, 3rd FLOOR,
RAMA
JEWELLERY BUILDING, 987
SILOM ROAD,
SILOM,
BANGRAK, BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2234-5813,
2234-0848, 2635-2144-5,
081
823-3425, 081 804-1536
FAX :
[66] 2236-2777
E-MAIL
ADDRESS : dersint@samrts.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533054994
TAX
ID NO. : 3101835410
CAPITAL REGISTERED : BHT.
19,000,000
CAPITAL PAID-UP : BHT.
19,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : APRIL
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NAHETA ROHIT
SUSHIL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : GEMS,
PRECIOUS AND SEMI-PRECIOUS
STONES
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 May 15,
1990 as a
private limited company
under the registered name DERS INTERNATIONAL CO., LTD., by
Thai and Indian
groups, with the objective
to engage in
jewelry trading business.
It currently employs
6 staff.
The
subject’s registered address
is Room No.
301, 3rd Floor,
Rama Jewellery Building, 987 Silom Road, Silom, Bangrak,
Bangkok 10500, and this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sushil Milapchand Naheta |
|
Indian |
65 |
|
Mr. Pipat Ruangrongpanya |
|
Thai |
66 |
|
Mr. Naheta Rohit Sushil |
|
Indian |
42 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Naheta Rohit Sushil
is the Managing
Director.
He is Indian
nationality with the
age of 42
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing various
kinds of precious
and semi-precious stones,
as well as
exporting of gemstones
for jewelry production
industry.
PURCHASE
The products are
purchased from both
domestic and overseas
suppliers in India
and Hong Kong.
SALES [LOCAL]
The products are
sold locally by
wholesale to manufacturers
and end-users.
EXPORT
Gemstones are exported
to Hong Kong,
Republic of China,
Japan, Taiwan, Japan
and Korea.
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 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
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
6 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in prime commercial
area.
COMMENT
The
subject operates as
an importer and
distributor of precious
and semi-precious stones
as well as
an exporter of
gemstones. The subject has
a moderate business
with a steady
growth.
FINANCIAL INFORMATION
The
capital was registered at Bht. 5,000,000 divided
into 5,000 shares of
Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 9,000,000
on December 12, 1995
Bht. 19,000,000
on December 11, 2001
The
latest registered capital
was increased to
Bht. 19,000,000 divided
into 19,000 shares
of Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at August
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Naheta Rohit Sushil Nationality: Indian Address : Bombay,
India |
9,309 |
48.99 |
|
Mr. Pipat Ruangrongpanya Nationality: Thai Address : 281/31
Surawong Road, Suriyawongse,
Bangrak, Bangkok |
4,370 |
23.00 |
|
Mr. Suthichai Chuenchomlada Nationality: Thai Address : 281/16
Surawong Road, Suriyawongse,
Bangrak, Bangkok |
4,140 |
21.79 |
|
Ms. Kritchaya Yuktirat Nationality: Thai Address : 71
Soi Phaholyothin 33,
Ladyao,
Jatujak, Bangkok |
1,000 |
5.26 |
|
Ms. Kalaya Nakpong Nationality: Thai Address : 295/4
Moo 4, T. Pakmool,
A. Muang,
Nakornsrithammarat |
90 |
0.47 |
|
Ms. Pornthira Meekham Nationality: Thai Address : 406/2
Moo 8, T. Sungmen,
A. Sungmen, Prae |
90 |
0.47 |
|
Mr. Sushil Milapchand Naheta Nationality: Indian Address : Bombay,
India |
1 |
0.02 |
Total Shareholders : 7
Share Structure [as
at August 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
9,690 |
51.00 |
|
Foreign - Indian |
2 |
9,310 |
49.00 |
|
Total |
7 |
19,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Chayasri
Chaijirachayakul No. 4546
BALANCE SHEET [BAHT]
The latest financial figures published
as at April 30,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,434,336.77 |
2,819,371.36 |
1,316,864.21 |
|
Short-term Investment |
14,270,495.30 |
14,228,736.73 |
11,125,289.36 |
|
Short-term Lending |
135,000.00 |
249,000.00 |
288,000.00 |
|
Trade Accounts &
Other Receivable |
12,826,379.44 |
22,705,557.52 |
23,114,875.58 |
|
Inventories |
94,054,455.23 |
87,049,205.08 |
82,407,002.02 |
|
|
|
|
|
|
Total Current Assets
|
125,720,666.74 |
127,051,870.69 |
118,252,031.17 |
|
|
|
|
|
|
Fixed Assets |
737,195.02 |
895,869.67 |
1,109,672.35 |
|
Total Assets |
126,457,861.76 |
127,947,740.36 |
119,361,703.52 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
54,283,121.02 |
30,511,932.36 |
38,318,816.73 |
|
Current Portion of
Hire-purchase Payable |
- |
- |
217,031.78 |
|
Short-term Loan from Financial Institutions |
31,814,391.64 |
59,383,321.90 |
46,887,573.66 |
|
Accrued Income Tax |
217,978.56 |
746,825.56 |
451,615.29 |
|
|
|
|
|
|
Total Current Liabilities |
86,315,491.22 |
90,642,079.82 |
85,875,037.46 |
|
Total Liabilities |
86,315,491.22 |
90,642,079.82 |
85,875,037.46 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 19,000 shares |
19,000,000.00 |
19,000,000.00 |
19,000,000.00 |
|
|
|
|
|
|
Capital Paid |
19,000,000.00 |
19,000,000.00 |
19,000,000.00 |
|
Retained Earning Unappropriated |
21,142,370.54 |
18,305,660.54 |
14,486,666.06 |
|
Total Shareholders' Equity |
40,142,370.54 |
37,305,660.54 |
33,486,666.06 |
|
Total Liabilities & Shareholders' Equity |
126,457,861.76 |
127,947,740.36 |
119,361,703.52 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
526,754,442.53 |
356,859,496.22 |
393,058,729.47 |
|
Less: Refundable |
[350,154,482.84] |
[193,969,878.40] |
[254,341,412.06] |
|
Discount paid |
[28,385.98] |
[117,724.63] |
[94,479.20] |
|
|
176,571,573.71 |
162,771,893.19 |
138,622,838.21 |
|
Other Income |
390,578.40 |
5,766,217.12 |
1,913,543.82 |
|
Total Revenues |
176,962,152.11 |
168,538,110.31 |
140,536,382.03 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
157,943,684.97 |
155,374,581.76 |
128,704,351.27 |
|
Selling Expenses |
2,955,407.04 |
2,848,718.13 |
3,344,240.95 |
|
Administrative Expenses |
3,569,309.74 |
3,672,933.03 |
3,764,041.10 |
|
Other Expenses |
7,183,649.09 |
- |
- |
|
Total Expenses |
171,652,050.84 |
161,896,232.92 |
135,812,633.32 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
5,310,101.27 |
6,641,877.39 |
4,723,748.71 |
|
Financial Cost |
[1,745,412.71] |
[1,574,457.35] |
[2,098,533.81] |
|
Profit / [Loss] before Income
Tax |
3,564,688.56 |
5,067,420.04 |
2,625,214.90 |
|
Income Tax |
[727,978.56] |
[1,248,425.56] |
[942,865.29] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,836,710.00 |
3,818,994.48 |
1,682,349.61 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.46 |
1.40 |
1.38 |
|
QUICK RATIO |
TIMES |
0.37 |
0.44 |
0.42 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
239.52 |
181.69 |
124.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.40 |
1.27 |
1.16 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
217.36 |
204.49 |
233.70 |
|
INVENTORY TURNOVER |
TIMES |
1.68 |
1.78 |
1.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.51 |
50.91 |
60.86 |
|
RECEIVABLES TURNOVER |
TIMES |
13.77 |
7.17 |
6.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
125.45 |
71.68 |
108.67 |
|
CASH CONVERSION CYCLE |
DAYS |
118.42 |
183.73 |
185.89 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.45 |
95.46 |
92.84 |
|
SELLING & ADMINISTRATION |
% |
3.70 |
4.01 |
5.13 |
|
INTEREST |
% |
0.99 |
0.97 |
1.51 |
|
GROSS PROFIT MARGIN |
% |
10.77 |
8.09 |
8.54 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.01 |
4.08 |
3.41 |
|
NET PROFIT MARGIN |
% |
1.61 |
2.35 |
1.21 |
|
RETURN ON EQUITY |
% |
7.07 |
10.24 |
5.02 |
|
RETURN ON ASSET |
% |
2.24 |
2.98 |
1.41 |
|
EARNING PER SHARE |
BAHT |
149.30 |
201.00 |
88.54 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.71 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.15 |
2.43 |
2.56 |
|
TIME INTEREST EARNED |
TIMES |
3.04 |
4.22 |
2.25 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.48 |
17.42 |
|
|
OPERATING PROFIT |
% |
(20.05) |
40.61 |
|
|
NET PROFIT |
% |
(25.72) |
127.00 |
|
|
FIXED ASSETS |
% |
(17.71) |
(19.27) |
|
|
TOTAL ASSETS |
% |
(1.16) |
7.19 |
|
ANNUAL GROWTH: RISKY
An annual sales growth is 8.48%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.77 |
Impressive |
Industrial
Average |
4.74 |
|
Net Profit Margin |
1.61 |
Deteriorated |
Industrial
Average |
4.06 |
|
Return on Assets |
2.24 |
Deteriorated |
Industrial
Average |
4.95 |
|
Return on Equity |
7.07 |
Acceptable |
Industrial
Average |
12.58 |
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 10.77%. 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 1.61%.
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 2.24%.
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 7.07%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.46 |
Impressive |
Industrial
Average |
1.44 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
118.42 |
|
|
|
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 1.46 times in 2014, increase from 1.4 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 0.37 times in 2014,
decrease from 0.44 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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Impressive |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
2.15 |
Satisfactory |
Industrial
Average |
3.32 |
|
Times Interest Earned |
3.04 |
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 3.05 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 0.68 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
239.52 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.40 |
Impressive |
Industrial
Average |
1.22 |
|
Inventory Conversion Period |
217.36 |
|
|
|
|
Inventory Turnover |
1.68 |
Acceptable |
Industrial
Average |
3.23 |
|
Receivables Conversion Period |
26.51 |
|
|
|
|
Receivables Turnover |
13.77 |
Impressive |
Industrial
Average |
1.50 |
|
Payables Conversion Period |
125.45 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.77 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 204 days at the
end of 2013 to 217 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 1.78 times in year 2013 to 1.68 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.4 times and 1.27
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.62.43 |
|
|
1 |
Rs.95.02 |
|
Euro |
1 |
Rs.70.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.