3decades

MIRA INFORM REPORT

Report No. :	485429
Report Date :	11.01.2018

IDENTIFICATION DETAILS

Name :	VIJAY LAXMI GEM LTD.

Registered Office :	5^th Floor, Room 511b, K.B.S. Building, 30, 32, 34, 36, 38 Mahesak 3 Road, Suriyawong, Bangrak, Bangkok 10500

Country :	Thailand

Financials (as on) :	31.12.2016

Date of Incorporation :	04.04.1997

Com. Reg. No.:	0105540034464

Legal Form :	Private Limited Company

Line of Business :	The subject is engaged in importing and distributing various kinds of gemstones such as ruby, amethyst, emerald, sapphire, tanzanite and etc., for jewelry trading and manufacturing industry.

No. of Employees :	1

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Slow but correct

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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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 sustained strong growth and 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.

Growth has slowed in the last few years, however, due to domestic political turmoil and sluggish global demand. Nevertheless, 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, Thailand faces labor shortages, and domestic debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

Company name

VIJAY LAXMI GEM LTD.

SUMMARY

BUSINESS ADDRESS : 5^TH FLOOR, ROOM 511B, K.B.S. BUILDING,

30, 32, 34, 36, 38 MAHESAK 3 ROAD,

SURIYAWONG, BANGRAK, BANGKOK 10500, THAILAND

TELEPHONE : [66] 081 615-1925

FAX : -

E-MAIL ADDRESS : vlgem@yahoo.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1997

REGISTRATION NO. : 0105540034464

TAX ID NO. : 3011833377

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. MANISH MITTAL, INDIAN

MANAGING DIRECTOR

NO. OF STAFF : 1

LINES OF BUSINESS : 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 April 4, 1997 as a private limited company under the registered name VIJAY LAXMI GEM LTD., by Thai and Indian groups, with the business objective to import and distribute various kinds of gemstones for jewelry industry. It currently employs 1 staff.

The subject’s registered address was initially located at 25^th Floor, Suite B1, Gems Tower, 1249/180 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500.

On October 19, 2016, its registered address was relocated to 92/16 Trok Phuttaosot, Charoenkrung Road, Siphaya, Bangrak, Bangkok 10500.

On November 24, 2017, its registered address was finally relocated to 5^th Floor, Room 511B, K.B.S. Building, 30, 32, 34, 36, 38 Mahesak 3 Road, Suriyawong, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age

Mr. Manish Mittal	Indian	47

AUTHORIZED PERSON

The above director signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Manish Mittal is the Managing Director.

He is Indian nationality with the age of 47 years old.

BUSINESS OPERATIONS

The subject is engaged in importing and distributing various kinds of gemstones such as ruby, amethyst, emerald, sapphire, tanzanite and etc., for jewelry trading and manufacturing industry.

PURCHASE

The products are purchased from both domestic and overseas suppliers in India, Pakistan and Republic of China.

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 1 staff.

LOCATION DETAILS

The premise is rented for administrative office at the heading address. Premise is located in prime commercial area.

COMMENT

The subject is an importer and distributor of gemstones for local market. Its operating performance in 2016 was slowdown from a decrease in both sales income and net profit comparing to the previous year, caused by sluggish economy, low consumers’ purchasing power, slow growth and less expansion of jewelry industry. Nevertheless, it maintains a net profit constantly.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100

each with fully paid.

On June 23, 2004, 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 April 30, 2017]

NAME	HOLDING	%

Ms. Duangklom Pavanaubol Nationality: Thai Address : 689 Krunthonburi Road, Banglampulang, Klongsan, Bangkok	20,400	51.00
Mr. Manish Mittal Nationality: Indian Address : 92/16 Charoenkrung Road, Siphaya, Bangrak, Bangkok	18,000	45.00
Mr. Chanchal Jain Nationality: Indian Address : 92/16 Charoenkrung Road, Siphaya, Bangrak, Bangkok	1,600	4.00

Total Shareholders : 3

Share Structure [as at April 30, 2017]

Nationality	Shareholders	No. of Share	% Shares

Thai	1	20,400	51.00
Foreign - Indian	2	19,600	49.00
Total	3	40,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Marut Makarasen No. 6532

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015	2014

Cash and Cash Equivalents	89,460.45	54,495.22	78,067.04
Trade Accounts and Other Receivable	4,486,902.09	4,355,979.70	2,294,987.15
Inventories	-	28,520.73	34,911.39
Other Current Assets	366,307.66	266,307.66	1,061,666.66
Total Current Assets	4,942,670.20	4,705,303.31	3,469,632.24
Loans to Directors		-	1,000,000.00
Property, Plant and Equipment	18,388.69	27,229.81	36,070.93
Other Non-current Assets	-	6,900.00	6,900.00
Total Assets	4,961,058.89	4,739,433.12	4,512,603.17

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014

Trade Accounts and Other Payable	-	-	92,848.69
Other Current Liabilities	15,122.02	16,451.56	17,923.84
Total Current Liabilities	15,122.02	16,451.56	110,772.53
Total Liabilities	15,122.02	16,451.56	110,772.53

Shareholders’ Equity

Share capital : Baht 100 par value authorized, and issued 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 [Deficit]	945,936.87	722,981.56	401,830.64
Total Shareholders’ Equity	4,945,936.87	4,722,981.56	4,401,830.64
Total Liabilities and Shareholders’ Equity	4,961,058.89	4,739,433.12	4,512,603.17

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014

Sales or Services Income	6,212,546.82	6,819,234.35	6,659,381.04
Gain on Exchange Rate	-	-	59,536.72
Other Income	8,225.28	56,543.53	10,000.00
Total Revenues	6,220,772.10	6,875,777.88	6,728,917.76
Expenses

Raw Material and Material Supplies	4,933,399.02	5,371,064.71	-
Employee Benefits Expenses	1,064,417.77	1,180,935.69	-
Cost of Goods Sold	-	-	5,332,917.88
Administrative Expenses	-	-	1,042,745.38
Total Expenses	5,997,816.79	6,552,000.40	6,375,663.26

Profit before Income Tax	222,955.31	323,777.48	353,254.50
Income Tax	-	[2,626.56]	[10,098.84]
Net Profit / [Loss]	222,955.31	321,150.92	343,155.66

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014

LIQUIDITY RATIO
CURRENT RATIO	TIMES	326.85	286.01	31.32
QUICK RATIO	TIMES	302.63	268.09	21.42

ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	337.85	250.43	184.62
TOTAL ASSETS TURNOVER	TIMES	1.25	1.44	1.48
INVENTORY CONVERSION PERIOD	DAYS	-	1.94	2.39
INVENTORY TURNOVER	TIMES	-	188.32	152.76
RECEIVABLES CONVERSION PERIOD	DAYS	263.61	233.15	125.79
RECEIVABLES TURNOVER	TIMES	1.38	1.57	2.90
PAYABLES CONVERSION PERIOD	DAYS	-	-	6.35
CASH CONVERSION CYCLE	DAYS	263.61	235.09	121.82

PROFITABILITY RATIO
COST OF GOODS SOLD	%	79.41	78.76	80.08
SELLING & ADMINISTRATION	%	17.13	17.32	15.66
INTEREST	%	-	-	-
GROSS PROFIT MARGIN	%	(79.41)	22.07	20.96
NET PROFIT MARGIN BEFORE EX. ITEM	%	(96.54)	4.75	5.30
NET PROFIT MARGIN	%	3.59	4.71	5.15
RETURN ON EQUITY	%	4.51	6.80	7.80
RETURN ON ASSET	%	4.49	6.78	7.60
EARNING PER SHARE	BAHT	5.57	8.03	8.58

LEVERAGE RATIO
DEBT RATIO	TIMES	0.00	0.00	0.02
DEBT TO EQUITY RATIO	TIMES	0.00	0.00	0.03
TIME INTEREST EARNED	TIMES	-	-	-

ANNUAL GROWTH
SALES GROWTH	%	(8.90)	2.40
OPERATING PROFIT	%	(1,952.45)	(8.34)
NET PROFIT	%	(30.58)	(6.41)
FIXED ASSETS	%	(32.47)	(24.51)
TOTAL ASSETS	%	4.68	5.03

ANNUAL GROWTH : RISKY

An annual sales growth is -8.9%. Turnover has decreased from THB 6,819,234.35 in 2015 to THB 6,212,546.82 in 2016. While net profit has decreased from THB 321,150.92 in 2015 to THB 222,955.31 in 2016. And total assets has increased from THB 4,739,433.12 in 2015 to THB 4,961,058.89 in 2016.

PROFITABILITY : SATISFACTORY

PROFITABILITY RATIO

Gross Profit Margin	(79.41)	Deteriorated	Industrial Average	12.73
Net Profit Margin	3.59	Impressive	Industrial Average	2.45
Return on Assets	4.49	Impressive	Industrial Average	3.03
Return on Equity	4.51	Satisfactory	Industrial Average	7.53

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 -79.41%. When compared with the industry average, the ratio of the company was lower. This indicated that company may have problems with control over its costs.

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 3.59%, 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 4.49%, 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 4.51%.

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	326.85	Impressive	Industrial Average	2.20
Quick Ratio	302.63
Cash Conversion Cycle	263.61

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 326.85 times in 2016, increase from 286.01 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 302.63 times in 2016, increase from 268.09 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 264 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.00	Impressive	Industrial Average	0.50
Debt to Equity Ratio	0.00	Impressive	Industrial Average	0.98
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 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 : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	337.85	Impressive	Industrial Average	-
Total Assets Turnover	1.25	Impressive	Industrial Average	1.24
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	1.58
Receivables Conversion Period	263.61
Receivables Turnover	1.38	Acceptable	Industrial Average	3.00
Payables Conversion Period	-

The company's Account Receivable Ratio is calculated as 1.38 and 1.57 in 2016 and 2015 respectively. 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 2016 decreased from 2015. This would suggest the company had deteriorated in the management of its debt collections.

The company's Total Asset Turnover is calculated as 1.25 times and 1.44 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 Downtrend

Inventory Turnover Downtrend

Receivables Turnover Downtrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.83
UK Pound	1	INR 86.28
Euro	1	INR 76.14
Thai Baht	1	INR 1.99

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)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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