MIRA INFORM REPORT
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Report No. : |
342653 |
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Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
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Name : |
JOGANI BROTHERS CO., LTD. |
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Formerly Known As : |
PURITY DIAMONDS CO., LTD. |
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Registered Office : |
11th Floor, Room No. 3, Surawong
Wattanakarn Building, 322/17 Surawong
Road, Siphaya, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.11.2014 |
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Date of Incorporation : |
19.11.2013 |
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Com. Reg. No.: |
0105556184932 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is
engaged in importing and distributing various kinds of diamonds and gemstones
for jewelry business. |
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No. of Employees : |
1 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 |
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Insignificant |
A1 |
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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’�tat, 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
JOGANI BROTHERS
CO., LTD.
[FORMER :
PURITY DIAMONDS CO.,
LTD.]
SUMMARY
BUSINESS ADDRESS : 11th FLOOR,
ROOM NO. 3,
SURAWONG WATTANAKARN
BUILDING, 322/17
SURAWONG ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2635-6675,
081 832-8735
FAX : [66]
2635-6675
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2013
REGISTRATION NO.
: 0105556184932
TAX ID NO. : 3036201793
CAPITAL
REGISTERED : BHT.
4,000,000
CAPITAL
PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL
YEAR CLOSING DATE : OCTOBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VAIBHAV MUKESHKUMAR SHAH,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 1
LINES OF
BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND DISTRIBUTOR
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 November
19, 2013 as a
private limited company
under the originally registered
name “Purity Diamonds Co.,
Ltd.”, by Thai
and Indian groups.
On June 24,
2015, its registered
name was changed
to JOGANI BROTHERS
CO., LTD. Its
business objective is
to import and
distribute various kinds
of diamonds and
gemstones. It currently
employs 1 staff.
The subject’s
registered address was
initially at 2nd Floor,
Room No. 203,
T.D. Building, 14 - 16
Mahesak Road, Suriyawongse,
Bangrak, Bangkok 10500.
On
June 24,
2015, the registered address was
relocated to 11th Floor,
Room No. 3, Surawong Wattanakarn Building, 322/17 Surawong Road, Siphaya, Bangrak,
Bangkok 10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vaibhav
Mukeshkumar Shah |
|
Indian |
33 |
AUTHORIZED PERSON
The above
director signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr.
Vaibhav Mukeshkumar Shah
is the Managing
Director.
He is
Indian nationality with
the age of
33 years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
diamonds and gemstones
for jewelry business.
PURCHASE
The products
are purchased from
suppliers both domestic
and overseas in
India.
SALES
100% of
the products is
sold locally to
manufacturers and end-users.
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 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.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
employ 1 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
was established in
November 2013. Since
its establishment, the
subject has slowed
business growth. Sales
in 2014 were
reported at low
level. Its business
growth is expected
at slow pace 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.
On August
4, 2015, the
registered capital was
increased to Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS
LISTED WERE
[as at
July 29, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vaibhav
Mukeshkumar Shah Nationality:
Indian Address
: 322/17 Surawong
Road, Siphaya,
Bangrak, Bangkok |
19,600 |
49.00 |
|
Ms. Saijai
Funnang Nationality:
Thai Address
: 56/9 Moo
9, T. Thachawang, A. Manorom,
Chainat |
6,800 |
17.00 |
|
Mr. Chakrit
Boonmalert Nationality:
Thai Address
: 120 Soi
Krungthep-Kreetha 7, Huamark, Bangkapi, Bangkok |
6,800 |
17.00 |
|
Mr. Adul Khuadma Nationality:
Thai Address
: 92 Soi
Krungthep-Kreetha 7, Huamark,
Bangkapi, Bangkok |
6,800 |
17.00 |
Total Shareholders
: 4
Share Structure
[as at July
29, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,400 |
51.00 |
|
Foreign - Indian |
1 |
19,600 |
49.00 |
|
Total |
4 |
40,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms.
Apinya Jaroennithi No.
10860
BALANCE
SHEET [BAHT]
The latest
financial figures published
for October 31,
2014 was:
ASSETS
|
Current Assets |
2014 |
|
|
|
|
Cash in Hand
and Cash Equivalents |
165,143.75 |
|
Trade
Accounts & Other
Receivable |
786,818.13 |
|
Short-term Loan |
1,900,000.00 |
|
|
|
|
Total Current
Assets |
2,851,961.88 |
|
Total Assets |
2,851,961.88 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
|
|
|
|
Trade
Accounts & Other
Payable |
593,580.30 |
|
|
|
|
Total
Current Liabilities |
593,580.30 |
|
Total Liabilities |
593,580.30 |
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Share capital :
Baht 100 par
value
authorized, issued and
fully paid share
capital 20,000 shares |
2,000,000.00 |
|
|
|
|
Capital
Paid |
2,000,000.00 |
|
Retained Earning -
Unappropriated |
258,381.58 |
|
Total
Shareholders' Equity |
2,258,381.58 |
|
Total
Liabilities & Shareholders' Equity |
2,851,961.88 |
PROFIT &
LOSS ACCOUNT
For
the financial year
ended November 19,
2013 to October
31, 2014:
|
Revenue |
Nov. 19,
2013 - Dec.
31, 2014 |
|
|
|
|
Sales
|
4,970,267.94 |
|
Other
Income |
16,231.33 |
|
Total Revenues |
4,986,499.27 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
3,923,998.51 |
|
Selling
& Administrative Expenses |
797,426.05 |
|
Total
Expenses |
4,721,424.56 |
|
|
|
|
Profit / [Loss]
before Financial Cost
& Income Tax |
265,074.71 |
|
Financial Cost |
[6,693.13] |
|
Income Tax |
- |
|
|
|
|
Net Profit / [Loss] |
258,381.58 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
4.80 |
|
QUICK RATIO |
TIMES |
4.80 |
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.74 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
57.78 |
|
RECEIVABLES TURNOVER |
TIMES |
6.32 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
55.21 |
|
CASH CONVERSION CYCLE |
DAYS |
2.57 |
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
COST OF GOODS SOLD |
% |
78.95 |
|
SELLING & ADMINISTRATION |
% |
16.04 |
|
INTEREST |
% |
0.13 |
|
GROSS PROFIT MARGIN |
% |
21.38 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.33 |
|
NET PROFIT MARGIN |
% |
5.20 |
|
RETURN ON EQUITY |
% |
11.44 |
|
RETURN ON ASSET |
% |
9.06 |
|
EARNING PER SHARE |
BAHT |
12.92 |
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
DEBT RATIO |
TIMES |
0.21 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.26 |
|
TIME INTEREST EARNED |
TIMES |
39.60 |
PROFITABILITY
: EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.38 |
Impressive |
Industrial Average |
8.39 |
|
Net Profit Margin |
5.20 |
Impressive |
Industrial Average |
0.15 |
|
Return on Assets |
9.06 |
Impressive |
Industrial Average |
0.90 |
|
Return on Equity |
11.44 |
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. Gross Profit Margin
is 21.38%. 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 5.2%, 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 9.06%, 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 11.44%, 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 :
EXCELLENT
LIQUIDITY
RATIO
|
Current Ratio |
4.80 |
Impressive |
Industrial Average |
2.18 |
|
Quick Ratio |
4.80 |
|
|
|
|
Cash Conversion Cycle |
2.57 |
|
|
|
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 4.8 times
in 2014, 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 4.8 times in 2014, 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
3 days.
Trend
of the average competitors in the same industry for last 5 years
Current
Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.21 |
Impressive |
Industrial Average |
0.62 |
|
Debt to Equity Ratio |
0.26 |
Impressive |
Industrial Average |
1.63 |
|
Times Interest Earned |
39.60 |
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 39.61 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 0.21 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 :
RISKY
ACTIVITY
RATIO
|
Fixed Assets Turnover |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
1.74 |
Deteriorated |
Industrial Average |
6.09 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
9.22 |
|
Receivables Conversion Period |
57.78 |
|
|
|
|
Receivables Turnover |
6.32 |
Deteriorated |
Industrial Average |
16.77 |
|
Payables Conversion Period |
55.21 |
|
|
|
The
company's Account Receivable Ratio is calculated as 6.32 in 2014. 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 0. This would suggest the
company had good performance in the management of its debt collections.
The
company's Total Asset Turnover is calculated as 1.74 times in 2014. 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
DIAMOND
INDUSTRY – INDIA
-
From time immemorial, India is well known in
the world as the birthplace for diamonds. It is difficult to trace the
origin of diamonds but history says that in the remote past, diamonds were
mined only in India. Diamond production in India can be traced back to almost
8th Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond
industry was possible only due to combination of the manufacturing skills of
the Indian workforce and the untiring and unflagging efforts of the Indian
diamantaires, supported by progressive Government policies.
-
The area of study of family owned diamond
businesses derives its importance from the huge conglomerate of family run
organizations which operate in the diamond industry since many generations.
-
Some of the basic traits of family run
business enterprises include spirit of entrepreneurship, mutual trust lowers
transaction costs, small, nimble and quick to react, information as a source of
advantage and philanthropy.
-
Family owned diamond businesses need to improve
on many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while
dealing with some medium and large diamond traders which are usually engaged in
fictitious import – export, inter-company transactions, financially assisted by
banks. In the process, several public sector banks lost several hundred million
rupees. They mostly diverted borrowed money for diamond business into real
estate and capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council
in its statistical data has shown the export of polished diamonds to have
increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished
diamond export in February, 2012, India exported $ 1.84 billion worth of
polished diamonds in February 2013. A senior executive of GJEPC said, “Export
of cut and polished diamonds started falling month-wise after the imposition of
2 % of import duty on the polished diamonds. But February, 2013 has given a new
ray of hope to the industry as the export of polished diamonds has actually
increased by 28 %. It means the industry is on the track of recovery and
round tripping of diamonds has stopped completely.” Demand has started coming
from the US, the UK, Japan and China. India’s polished diamond export is
expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising
restraint while following prudent risk management norms when lending money to
gems and jewellery sector. This follows the implementation of Basel III accord
– a global voluntary regulatory standard on bank capital adequacy, stress
testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.74 |
|
UK Pound |
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.