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MIRA INFORM REPORT
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Report No. : |
491123 |
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Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
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Name : |
ARI BEADS CO., LTD. |
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Registered Office : |
Room No. B1-286, B1 Floor, The
Palladium World Shopping Building, 555/6286
Ratchaprarop Road, Makkasan,
Ratchathewi, Bangkok 10400 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
17.12.2015 |
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Com. Reg. No.: |
0105558194978 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject is
engaged in importing
and distributing diamonds
and gemstones for
jewelry industry. |
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No. of Employees : |
2 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Thailand |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy,
and generally pro-investment policies, Thailand is highly dependent on
international trade, with exports accounting for about two-thirds of GDP.
Thailand’s exports include electronics, agricultural commodities, automobiles
and parts, and processed foods. The industry and service sectors produce about
90% of GDP. The agricultural sector, comprised mostly of small-scale farms,
contributes only 10% of GDP but employs about one-third of the labor force.
Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly
from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially.
In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10)
per day minimum wage policy and deployed new tax reforms designed to lower
rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since
the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation,
low unemployment, and reasonable public and external debt levels. Tourism and
government spending - mostly on infrastructure and short-term stimulus measures
– have helped to boost the economy, and The Bank of Thailand has been
supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and
an aging population pose risks to growth.
|
Source
: CIA |
Company
name
ARI BEADS CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
NO. B1-286, B1 FLOOR, THE
PALLADIUM WORLD
SHOPPING BUILDING, 555/6286 RATCHAPRAROP ROAD, MAKKASAN, RATCHATHEWI,
BANGKOK 10400, THAILAND
TELEPHONE : [66] 2635-6447
FAX : [66] 2635-6447
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2015
REGISTRATION NO. : 0105558194978
TAX ID NO. : 3037387038
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 : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. MOHAMMED RIZWAN,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 2
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 December
17, 2015 as
a private limited
company under the
registered name ARI
BEADS CO., LTD., by
Thai and Indian groups,
with the business objective
to import and distribute diamonds
and gemstones. It currently
employs 2 staff.
The subject’s registered
address is Room
No. B1-286, B1 Floor,
The Palladium World
Shopping Building, 555/6286
Ratchaprarop Road, Makkasan, Ratchathewi, Bangkok 10400, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
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Mr. Mohammed Rizwan |
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Indian |
35 |
|
Mr. Asifaslam Mohammed |
|
Indian |
35 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Mohammed Rizwan is
the Managing Director.
He is Indian
nationality with the
age of 35
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing diamonds
and gemstones for
jewelry industry.
PURCHASE
90% of the
products is imported
from India, the
remaining 10% is
purchased from local
supplier.
SALES
100% of the products is
sold locally to
wholesalers, 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
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject currently
employs 2 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in prime
commercial area.
COMMENT
The subject’s sales
figures for the fist
year of its
commercial activities is
still small with
a small amount of
net profit. However,
it expects the
sales figures would
be improved and
increased relatively from an
increase in number
of customers in
the future.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into 40,000
shares of Bht.
100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30 ,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Kannika Maliwan Nationality: Thai Address : 11
Soi Prachauthit 52,
Bangmod,
Thungkru, Bangkok |
10,200 |
25.50 |
|
Ms. Athitiyaporn Traiyasut Nationality: Thai Address : 10
Moo 12, T. Tonngam,
A. Buntarik,
Ubonratchathani |
10,200 |
25.50 |
|
Mr. Mohammed Rizwan Nationality: Indian Address : 555/6206
Ratchaprarop Road, Makkasan,
Ratchathewi, Bangkok |
9,800 |
24.50 |
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Mr. Asifaslam Mohammed Nationality: Thai Address : 555/6206
Ratchaprarop Road, Makkasan,
Ratchathewi, Bangkok |
9,800 |
24.50 |
Total Shareholders : 4
Share Structure [as
at April 30,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
20,400 |
51.00 |
|
Foreign-Indian |
2 |
19,600 |
49.00 |
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Total |
4 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Thitirat Orapinpong No.
10665
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2016
and 2015 were:
ASSETS
|
Current Assets |
2016 |
2015 |
|
|
|
|
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Cash and Cash Equivalents
|
87,940.00 |
10,000.00 |
|
Trade Account and
Other Receivable |
113,700.00 |
9,975.00 |
|
Inventories |
56,170.17 |
- |
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Other Current Assets
|
4,748.00 |
- |
|
|
|
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Total Current Assets
|
262,558.17 |
19,975.00 |
|
|
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Long-term Loan |
3,790,000.00 |
3,990,000.00 |
|
Total Assets |
4,052,558.17 |
4,009,975.00 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
|
|
|
|
|
Trade Account and
Other Payable |
20,175.00 |
8,000.00 |
|
Other Current Liabilities |
9,700.00 |
- |
|
|
|
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Total Current Liabilities |
29,875.00 |
8,000.00 |
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Total Liabilities |
29,875.00 |
8,000.00 |
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Shareholders' Equity |
|
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|
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|
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Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated [Deficit] |
22,683.17 |
1,975.00 |
|
Total Shareholders' Equity |
4,022,683.17 |
4,001,975.00 |
|
Total Liabilities and Shareholders' Equity |
4,052,558.17 |
4,009,975.00 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
|
|
|
|
|
Sales or Services Income |
722,634.87 |
- |
|
Other Income |
774,238.91 |
9,975.00 |
|
Total Revenues |
1,496,873.78 |
9,975.00 |
|
Expenses |
|
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|
|
|
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Change in Finished Goods and Work in
Progress |
458,240.50 |
- |
|
Employee Benefits Expenses |
1,017,925.11 |
8,000.00 |
|
Total Expenses |
1,476,165.61 |
8,000.00 |
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|
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Profit / [Loss] before Income Tax
|
20,708.17 |
1,975.00 |
|
Income Tax |
- |
- |
|
Net Profit / [Loss] |
20,708.17 |
1,975.00 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
|
|
|
|
|
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LIQUIDITY RATIO |
|
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CURRENT RATIO |
TIMES |
8.79 |
2.50 |
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QUICK RATIO |
TIMES |
6.75 |
2.50 |
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ACTIVITY RATIO |
|
|
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|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
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TOTAL ASSETS TURNOVER |
TIMES |
0.18 |
- |
|
INVENTORY CONVERSION PERIOD |
DAYS |
44.74 |
- |
|
INVENTORY TURNOVER |
TIMES |
8.16 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
57.43 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
6.36 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
16.07 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
86.10 |
- |
|
|
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PROFITABILITY
RATIO |
|
|
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COST OF GOODS SOLD |
% |
63.41 |
- |
|
SELLING & ADMINISTRATION |
% |
140.86 |
- |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
143.73 |
- |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.87 |
- |
|
NET PROFIT MARGIN |
% |
2.87 |
- |
|
RETURN ON EQUITY |
% |
0.51 |
0.05 |
|
RETURN ON ASSET |
% |
0.51 |
0.05 |
|
EARNING PER SHARE |
BAHT |
0.52 |
0.05 |
|
|
|
|
|
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LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.01 |
0.00 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.01 |
0.00 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
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|
SALES GROWTH |
% |
- |
- |
|
OPERATING PROFIT |
% |
948.51 |
- |
|
NET PROFIT |
% |
948.51 |
- |
|
FIXED ASSETS |
% |
- |
- |
|
TOTAL ASSETS |
% |
1.06 |
- |
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
143.73 |
Impressive |
Industrial Average |
1.78 |
|
Net Profit Margin |
2.87 |
Impressive |
Industrial Average |
0.21 |
|
Return on Assets |
0.51 |
Acceptable |
Industrial Average |
1.07 |
|
Return on Equity |
0.51 |
Acceptable |
Industrial Average |
1.91 |
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 143.73%. 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 2.87%,
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. When compared with the
industry average, it was lower, the company's figure is 0.51%.
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 0.51%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
8.79 |
Impressive |
Industrial Average |
2.06 |
|
Quick Ratio |
6.75 |
|
|
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|
Cash Conversion Cycle |
86.10 |
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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 8.79 times in 2016, increase from 2.5 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 6.75 times in 2016,
increase from 2.5 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 87 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.01 |
Impressive |
Industrial Average |
0.46 |
|
Debt to Equity Ratio |
0.01 |
Impressive |
Industrial Average |
0.85 |
|
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 0.01 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
0.18 |
Deteriorated |
Industrial Average |
5.09 |
|
Inventory Conversion Period |
44.74 |
|
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|
Inventory Turnover |
8.16 |
Satisfactory |
Industrial Average |
15.08 |
|
Receivables Conversion Period |
57.43 |
|
|
|
|
Receivables Turnover |
6.36 |
Acceptable |
Industrial Average |
21.93 |
|
Payables Conversion Period |
16.07 |
|
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|
The company's Account Receivable Ratio is calculated as 6.36 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 0 days at the end
of 2015 to 45 days at the end of 2016. This represents a negative trend. And
Inventory turnover has increased from 0 times in year 2015 to 8.16 times in
year 2016.
The company's Total Asset Turnover is calculated as 0.18 times and 0
times in 2016 and 2015 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.28 |
|
|
1 |
INR 89.02 |
|
Euro |
1 |
INR 78.93 |
|
Thai Baht |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.