MIRA INFORM REPORT
|
Report No. : |
341989 |
|
Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
A.R.K. GEMS INTERNATIONAL CO.,
LTD. |
|
|
|
|
Registered Office : |
209/11 Trok Sapanyao, Charoenkrung Road, Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
11.06.2002 |
|
|
|
|
Com. Reg. No.: |
0105545059791 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
THE SUBJECT
IS ENGAGED IN
IMPORTING AND DISTRIBUTING VARIOUS
KINDS AND COLORS
OF GEMSTONES FOR
JEWELRY PRODUCTION INDUSTRY. |
|
|
|
|
No. of Employees : |
02 |
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’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
A.R.K. GEMS INTERNATIONAL CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 209/11 TROK SAPANYAO, CHAROENKRUNG ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2235-4786,
081 618-4752
FAX : [66] 2235-4786
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2002
REGISTRATION NO. : 0105545059791
TAX ID NO. : 3030580931
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
ABDUL RASHID KHAN,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 2
LINES OF BUSINESS : GEMSTONES
IMPORTER AND
DISTRIBUTOR
|
|
|
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 June
11, 2002 as
a private limited
company under the
registered name A.R.K.
GEMS INTERNATIONAL CO.,
LTD. by Thai
and Indian groups, with
the business objective
to import and
distribute various kinds
of gemstones to
domestic market. It
currently employs 2
staff.
The subject’s registered address is 209/11
Trok Sapanyao, Charoenkrung
Road, Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Abdul Rashid Khan |
|
Indian |
44 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Abdul Rashid Khan
is the Managing
Director.
He is Indian
nationality with the
age of 44 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds and colors
of gemstones for
jewelry production industry.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas in India
and Hong Kong.
SALES
100% of the
products is sold
locally by wholesale
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 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.
BANKING
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject currently
employs 2 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 operates as an
importer and distributor
of gemstones. Its
total revenue in
the year 2014
was reported at
slow level compared to
the previous years.
Moreover, slow recovery of
domestic consumption has
been affected subject’s
business performance this
year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each
with fully paid.
On May 19, 2015, the
capital was increased
to Bht. 6,000,000 divided
into 60,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at September
14, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Wanwisa Saelee Nationality: Thai Address : 209/11
Trok Sapanyao, Charoenkrung Rd.,
Siphaya, Bangrak, Bangkok
|
30,600 |
51.00 |
|
Mr. Abdul Rashid Khan Nationality: Indian Address : 209/11
Trok Sapanyao,
Charoenkrung Rd.,
Siphaya, Bangrak, Bangkok
|
20,000 |
33.33 |
|
Mr. Mohammad Arif Khan Nationality: Indian Address : 209/11
Trok Sapanyao, Charoenkrung Rd.,
Siphaya, Bangrak, Bangkok
|
5,400 |
9.00 |
|
Mr. Mohammad Arshad Nationality: Indian Address : 209/11
Trok Sapanyao, Charoenkrung Rd.,
Siphaya, Bangrak, Bangkok
|
4,000 |
6.67 |
Total Shareholders : 4
Share Structure [as
at September 14,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
30,600 |
51.00 |
|
Foreign - Indian |
3 |
29,400 |
49.00 |
|
Total |
4 |
60,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No. 1888
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 |
265,077.37 |
31,143.53 |
39,305.44 |
|
Trade Accounts Receivable
|
5,707,786.56 |
9,402,534.93 |
9,477,883.97 |
|
Inventories |
396,207.14 |
459,550.00 |
252,926.98 |
|
Other Current Assets
|
237.30 |
643.67 |
192.20 |
|
|
|
|
|
|
Total Current Assets
|
6,369,308.37 |
9,893,872.13 |
9,770,308.59 |
|
Equipment |
17,601.64 |
25,713.38 |
33,825.12 |
|
Total Assets |
6,386,910.01 |
9,919,585.51 |
9,804,133.71 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable
|
- |
400,499.96 |
174,868.52 |
|
Accrued Income Tax |
2,888.99 |
7,422.57 |
- |
|
Other Current Liabilities |
79,662.39 |
84,924.35 |
33,664.12 |
|
|
|
|
|
|
Total Current Liabilities |
82,551.38 |
492,846.88 |
208,532.64 |
|
Loan Payable - Director |
1,265,000.00 |
4,715,000.00 |
5,195,000.00 |
|
Total Liabilities |
1,347,551.38 |
5,207,846.88 |
5,403,532.64 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated |
1,039,358.63 |
711,738.63 |
400,601.07 |
|
Total Shareholders' Equity |
5,039,358.63 |
4,711,738.63 |
4,400,601.07 |
|
Total Liabilities & Shareholders' Equity |
6,386,910.01 |
9,919,585.51 |
9,804,133.71 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
8,137,667.26 |
7,758,717.95 |
10,761,857.97 |
|
Other Income |
251,170.54 |
838,056.82 |
324,393.62 |
|
Total Revenues |
8,388,837.80 |
8,596,774.77 |
11,086,251.59 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,698,873.06 |
5,657,759.86 |
7,948,479.00 |
|
Selling Expenses |
353,123.55 |
643,417.64 |
922,165.04 |
|
Administrative Expenses |
2,002,282.20 |
1,977,037.14 |
1,660,343.92 |
|
Other Expenses |
- |
- |
218,648.11 |
|
Total Expenses |
8,054,278.81 |
8,278,214.64 |
10,749,636.07 |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
334,558.99 |
318,560.13 |
336,615.52 |
|
Income Tax |
[6,938.99] |
[7,422.57] |
[30,597.01] |
|
|
|
|
|
|
Net Profit / [Loss] |
327,620.00 |
311,137.56 |
306,018.51 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
77.16 |
20.07 |
46.85 |
|
QUICK RATIO |
TIMES |
72.35 |
19.14 |
45.64 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
462.32 |
301.74 |
318.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.27 |
0.78 |
1.10 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
25.38 |
29.65 |
11.61 |
|
INVENTORY TURNOVER |
TIMES |
14.38 |
12.31 |
31.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
256.01 |
442.33 |
321.45 |
|
RECEIVABLES TURNOVER |
TIMES |
1.43 |
0.83 |
1.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
25.84 |
8.03 |
|
CASH CONVERSION CYCLE |
DAYS |
281.39 |
446.14 |
325.04 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
70.03 |
72.92 |
73.86 |
|
SELLING & ADMINISTRATION |
% |
28.94 |
33.77 |
24.00 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
33.06 |
37.88 |
29.16 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.11 |
4.11 |
3.13 |
|
NET PROFIT MARGIN |
% |
4.03 |
4.01 |
2.84 |
|
RETURN ON EQUITY |
% |
6.50 |
6.60 |
6.95 |
|
RETURN ON ASSET |
% |
5.13 |
3.14 |
3.12 |
|
EARNING PER SHARE |
BAHT |
8.19 |
7.78 |
7.65 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.21 |
0.53 |
0.55 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.27 |
1.11 |
1.23 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.88 |
(27.91) |
|
|
OPERATING PROFIT |
% |
5.02 |
(5.36) |
|
|
NET PROFIT |
% |
5.30 |
1.67 |
|
|
FIXED ASSETS |
% |
(31.55) |
(23.98) |
|
|
TOTAL ASSETS |
% |
(35.61) |
1.18 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 4.88%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
33.06 |
Impressive |
Industrial Average |
16.41 |
|
Net Profit Margin |
4.03 |
Impressive |
Industrial Average |
1.41 |
|
Return on Assets |
5.13 |
Impressive |
Industrial Average |
3.02 |
|
Return on Equity |
6.50 |
Satisfactory |
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 33.06%. 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 4.03%, 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
5.13%, 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 6.5%.
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 |
77.16 |
Impressive |
Industrial Average |
1.66 |
|
Quick Ratio |
72.35 |
|
|
|
|
Cash Conversion Cycle |
281.39 |
|
|
|
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 77.16 times in 2014, increased from 20.07 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 72.35 times in 2014,
increased from 19.14 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 282 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 |
0.60 |
|
Debt to Equity Ratio |
0.27 |
Impressive |
Industrial Average |
1.49 |
|
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 0.21 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
462.32 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.27 |
Acceptable |
Industrial Average |
2.14 |
|
Inventory Conversion Period |
25.38 |
|
|
|
|
Inventory Turnover |
14.38 |
Impressive |
Industrial Average |
3.44 |
|
Receivables Conversion Period |
256.01 |
|
|
|
|
Receivables Turnover |
1.43 |
Deteriorated |
Industrial Average |
4.11 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 1.43 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 30 days at the
end of 2013 to 25 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 12.31 times in year 2013 to 14.38
times in year 2014.
The company's Total Asset Turnover is calculated as 1.27 times and 0.78
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.65.97 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.