MIRA INFORM REPORT
|
Report No. : |
348535 |
|
Report Date : |
10.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
GEORGE DIAMONDS CO., LTD. |
|
|
|
|
Formerly Known As : |
MILESTONE GLOBAL CO., LTD. |
|
|
|
|
Registered Office : |
Suite 211, 2nd Floor, K.B.S.
Building, Soi Mahesak 3,
Mahesak Road,
Suriyawongse, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
27.09.2010 |
|
|
|
|
Com. Reg. No.: |
0105553118742 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
THE SUBJECT
IS ENGAGED IN IMPORTING, DISTRIBUTING AND
RE-EXPORTING VARIOUS KINDS
OF DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS,
AS WELL AS
EXPORTING THE LOCAL
PRODUCTS. |
|
|
|
|
No. of Employees : |
03 |
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 |
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, 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
GEORGE DIAMONDS CO., LTD.
[FORMER : MILESTONE
GLOBAL CO., LTD.]
SUMMARY
BUSINESS ADDRESS : SUITE 211, 2nd FLOOR,
K.B.S. BUILDING,
SOI
MAHESAK 3, MAHESAK
ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2266-4012-4
FAX : [66] 2635-6992
E-MAIL ADDRESS : info@georgediamonds.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2010
REGISTRATION NO. : 0105553118742
TAX ID NO. : 3034118123
CAPITAL REGISTERED : BHT.
5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI
: 61.00%
INDIAN
: 39.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
JOGE CHERIAN GEORGE, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY
PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on September 27,
2010 as a
private limited company
under the originally
registered name “Milestone
Global Co., Ltd.”
by Thai and
Indian groups. On January 14,
2015, its registered
name was changed
to GEORGE DIAMONDS
CO., LTD. Its
business objective is
to import, distribute
and export various
kinds of diamonds,
gemstones and jewelry
products. It currently
employs 3 staff.
The subject’s registered
address is Suite
211, 2nd Floor,
K.B.S. Building, 30-38
Soi Mahesak 3,
Mahesak Road, Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Joge Cherian George |
|
Indian |
42 |
|
Mrs. Atchara George |
|
Thai |
34 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Joge Cherian George
is the Managing
Director.
He is Indian
nationality with the
age of 42
years old.
Mrs. Atchara George is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
various kinds of
diamonds, gemstones and
jewelry products, as
well as exporting
the local products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas in India.
SALES
The products are
sold to both
local and overseas
customers in Hong Kong,
Republic of China,
Singapore and countries
in Europe.
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
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
Unfavorable market sentiment
had led to
weak demand of
luxury goods, and
this had caused
to slow sales
of jewelry in
domestic market.
However, subject has
shown the moderate
sales in the
year 2014 from export
markets, and also
has a promising
business this year.
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 July 6,
2011
Bht. 5,000,000
on December 12,
2014
The latest registered
capital was increased
to Bht. 5,000,000
divided into 50,000
shares of Bht. 100
each with fully
paid-up.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2015] at Bht.
5,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Atchara George Nationality: Thai Address : 211/5
Charoennakorn Road, Samrae,
Thonburi, Bangkok |
28,000 |
56.00 |
|
Mr. Joge Cherian George
Nationality: Indian Address : 211/5
Charoennakorn Road, Samrae,
Thonburi, Bangkok |
19,500 |
39.00 |
|
Mr. Krisana Buaput Nationality: Thai Address : 447/158
Moo 10, T. Naiklongbangplagod, A.
Phrasamutjaedi, Samutprakarn |
2,500 |
5.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
30,500 |
61.00 |
|
Foreign - Indian |
1 |
19,500 |
39.00 |
|
Total |
3 |
50,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Siriporn Yomma No. 10292
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 |
597,354.22 |
1,109,493.08 |
3,114,602.83 |
|
Trade Accounts &
Other Receivable |
35,707,568.90 |
13,917,895.99 |
23,485,234.31 |
|
Inventories |
27,907,611.79 |
25,241,548.52 |
22,556,741.46 |
|
Other Current Assets
|
118,854.91 |
- |
- |
|
|
|
|
|
|
Total Current Assets
|
64,331,389.82 |
40,268,937.59 |
49,156,578.60 |
|
|
|
|
|
|
Loan to Directors and Related
Person |
550,000.00 |
5,450,000.00 |
2,700,000.00 |
|
Fixed Assets |
1,637,968.31 |
201,736.45 |
311,693.99 |
|
Total Assets |
66,519,358.13 |
45,920,674.04 |
52,168,272.59 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
56,194,888.35 |
39,287,131.98 |
46,403,391.38 |
|
Current Portion of
Liabilities |
289,812.00 |
- |
- |
|
Accrued Income Tax |
270,359.72 |
81,286.68 |
131,050.44 |
|
Other Current Liabilities |
4,979.79 |
11,403.45 |
12,518.84 |
|
|
|
|
|
|
Total Current Liabilities |
56,760,039.86 |
39,379,822.11 |
46,546,960.66 |
|
Hire-purchase Payable |
750,380.23 |
- |
- |
|
Total Liabilities |
57,510,420.09 |
39,379,822.11 |
46,546,960.66 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital 50,000 shares in
2014; 40,000 shares in
2013 & 2012 |
5,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
4,008,938.04 |
2,540,851.93 |
1,621,311.93 |
|
Total Shareholders' Equity |
9,008,938.04 |
6,540,851.93 |
5,621,311.93 |
|
Total Liabilities &
Shareholders' Equity |
66,519,358.13 |
45,920,674.04 |
52,168,272.59 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
73,637,602.11 |
40,885,898.28 |
37,502,209.78 |
|
Gain on Exchange Rate |
- |
260,164.22 |
1,599,144.49 |
|
Other Income |
34,956.02 |
61,156.93 |
17,456.16 |
|
Total Revenues |
73,672,558.13 |
41,207,219.43 |
39,118,810.43 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
65,975,231.06 |
37,295,906.23 |
35,564,477.92 |
|
Selling Expenses |
948,471.37 |
580,791.06 |
618,119.81 |
|
Administrative Expenses |
4,898,829.06 |
2,176,220.12 |
1,940,611.13 |
|
Total Expenses |
71,822,531.49 |
40,052,917.41 |
38,123,208.86 |
|
Profit / [Loss] before Income
Tax |
1,850,026.64 |
1,154,302.02 |
995,601.57 |
|
Income Tax |
[370,359.72] |
[231,286.68] |
[229,300.44] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,479,666.92 |
923,015.34 |
766,301.13 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.13 |
1.02 |
1.06 |
|
QUICK RATIO |
TIMES |
0.64 |
0.38 |
0.57 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
44.96 |
202.67 |
120.32 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.11 |
0.89 |
0.72 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
154.40 |
247.03 |
231.50 |
|
INVENTORY TURNOVER |
TIMES |
2.36 |
1.48 |
1.58 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
176.99 |
124.25 |
228.58 |
|
RECEIVABLES TURNOVER |
TIMES |
2.06 |
2.94 |
1.60 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
310.89 |
384.49 |
476.24 |
|
CASH CONVERSION CYCLE |
DAYS |
20.50 |
(13.21) |
(16.16) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.59 |
91.22 |
94.83 |
|
SELLING & ADMINISTRATION |
% |
7.94 |
6.74 |
6.82 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.45 |
9.57 |
9.48 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.51 |
2.82 |
2.65 |
|
NET PROFIT MARGIN |
% |
2.01 |
2.26 |
2.04 |
|
RETURN ON EQUITY |
% |
16.42 |
14.11 |
13.63 |
|
RETURN ON ASSET |
% |
2.22 |
2.01 |
1.47 |
|
EARNING PER SHARE |
BAHT |
29.59 |
23.08 |
19.16 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.86 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.38 |
6.02 |
8.28 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
80.11 |
9.02 |
|
|
OPERATING PROFIT |
% |
60.27 |
15.94 |
|
|
NET PROFIT |
% |
60.31 |
20.45 |
|
|
FIXED ASSETS |
% |
711.93 |
(35.28) |
|
|
TOTAL ASSETS |
% |
44.86 |
(11.98) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 80.11%.
Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.45 |
Impressive |
Industrial Average |
8.39 |
|
Net Profit Margin |
2.01 |
Impressive |
Industrial Average |
0.15 |
|
Return on Assets |
2.22 |
Impressive |
Industrial Average |
0.90 |
|
Return on Equity |
16.42 |
Impressive |
Industrial Average |
2.51 |
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 10.45%. 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 2.01%, 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 2.22%, 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. Return on Equity ratio
is 16.42%, 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.
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 |
1.13 |
Acceptable |
Industrial Average |
2.18 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
20.50 |
|
|
|
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 1.13 times in 2014, increased from 1.02 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 0.64 times in 2014,
increased from 0.38 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 21 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial Average |
0.62 |
|
Debt to Equity Ratio |
6.38 |
Risky |
Industrial Average |
1.63 |
|
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 0.86 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
44.96 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.11 |
Deteriorated |
Industrial Average |
6.09 |
|
Inventory Conversion Period |
154.40 |
|
|
|
|
Inventory Turnover |
2.36 |
Deteriorated |
Industrial Average |
9.22 |
|
Receivables Conversion Period |
176.99 |
|
|
|
|
Receivables Turnover |
2.06 |
Deteriorated |
Industrial Average |
16.77 |
|
Payables Conversion Period |
310.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.06 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 247 days at the end of 2013 to
154 days at the end of 2014. This represents a positive trend. And Inventory
turnover has increased from 1.48 times in year 2013 to 2.36 times in year 2014.
The company's Total Asset Turnover is calculated as 1.11 times and 0.89
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.34 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
TPT |
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.