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MIRA INFORM REPORT
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Report No. : |
486256 |
|
Report Date : |
16.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
A M G CO., LTD. |
|
|
|
|
Registered Office : |
35th Floor, Jewelry Trade Center, 919/428 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
15.06.2017 |
|
|
|
|
Date of Incorporation : |
23.06.2006 |
|
|
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Com. Reg. No.: |
0105549075830 |
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|
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|
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 of
the local products. |
|
|
|
|
No. of Employees : |
3 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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 |
|
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
A M G CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 35th FLOOR,
JEWELRY TRADE
CENTER,
919/428 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE
: [66] 2630-1683-5
FAX :
[66] 2630-2220
E-MAIL ADDRESS : arung8@gmail.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2006
REGISTRATION NO. : 0105549075830
TAX ID NO. : 3032243063
CAPITAL REGISTERED : BHT.
12,000,000
CAPITAL PAID-UP
: BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
57.00%
INDIAN : 43.00%
FISCAL YEAR CLOSING DATE : JUNE
15
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR.
ARUN GUPTA, INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 3
LINES OF
BUSINESS : DIAMONDS 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
FAIR PERFORMANCE
HISTORY
The subject
was established on
June 23, 2006
as a private
limited company under
the registered name A
M G CO.,
LTD., by Thai
and Indian groups,
with the business
objective to be
engaged in diamond
and jewelry trading
business. It currently
employs 3 staff.
The subject’s registered address
was initially at 9th Floor, A/1, Sethiwan Tower,
139 Pan Rd., Silom, Bangrak,
Bangkok 10500.
On April
22, 2015, its
registered address was
relocated to 35th Floor,
Jewelry Trade Center,
919/428 Silom Road,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
Mr. Arun Gupta
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Arun Gupta is
the Managing Director.
He is Indian
nationality with the
age of 45
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
of the local
products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas in India,
Hong Kong and
South Africa.
SALES [LOCAL]
The imported products
are supplied to
local jewelry manufacturers
and traders.
EXPORT
The products
are exported and
re-exported to Hong Kong,
Singapore, India, Japan,
Republic of China
and 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 credit term
of 30 days.
Local bills are
paid by cash
or on the
credit term of 30
days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Company Limited
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject
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
The subject
reported a decrease
in both sales
income and net
profit as of
June 15, 2017
comparing to the previous
year’s level resulted
from shrinking consumption of
both local and
export markets. Without
any distinctive sign
of improvement and
recovery of jewelry
industry, the subject
would inevitably encounter
a slow growth.
FINANCIAL INFORMATION
The capital
was registered at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each
with fully paid.
On January
31, 2017, the
registered capital was
increased to 12,000,000
divided into 120,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
October 13, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Arun Gupta Nationality: Indian Address : 126/57
North Sathorn Rd.,
Silom, Bangrak,
Bangkok |
27,600 |
23.00 |
|
Mrs. Monika Gupta Nationality: Indian Address : 126/57
North Sathorn Rd.,
Silom, Bangrak,
Bangkok |
24,000 |
20.00 |
|
Mrs. Nopparat
Suppolchai Nationality: Thai Address : 1946
Soi Ekachai 109,
Bangbon,
Bangkok |
22,800 |
19.00 |
|
Mr. Monthien Methi Nationality: Thai Address : 1946
Soi Ekachai 109,
Bangbon,
Bangkok |
22,800 |
19.00 |
|
Mrs. Kwanta Saetae Nationality: Thai Address : 128/70
Moo 6, T. Bangchak,
A. Phrapradaeng, Samutprakarn |
22,800 |
19.00 |
Total
Shareholders : 5
Share Structure [as at
October 13, 2017]
|
Nationality |
Shareholders |
No.
of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
68,400 |
57.00 |
|
Foreign - Indian |
2 |
51,600 |
43.00 |
|
Total |
5 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wiboon
Chattanapornyothin No. 5620
financial
BALANCE SHEET [BAHT]
The latest
financial figures published
for June 15, 2017,
2016 and 2015
were:
ASSETS
|
Current
Assets |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Cash and Cash
Equivalent |
1,187,203.96 |
3,365,936.52 |
6,029,099.81 |
|
Trade Accounts and Other
Receivable |
35,946,198.98 |
44,657,122.61 |
28,456,119.22 |
|
Inventories |
33,734,428.78 |
40,490,661.09 |
37,989,280.75 |
|
Other Current Assets |
103,762.54 |
120,469.90 |
33,194.23 |
|
|
|
|
|
|
Total Current Assets |
70,971,594.26 |
88,634,190.12 |
72,507,694.01 |
|
Cash at Bank pledged as a Collateral |
- |
- |
2,279,887.48 |
|
Property, Plant and Equipment |
107,529.60 |
148,616.57 |
75,379.31 |
|
Other Assets-Deposit |
2,337,519.10 |
2,315,983.48 |
11,200.00 |
|
Total Assets |
73,416,642.96 |
91,098,790.17 |
74,874,160.80 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
19,855,562.95 |
47,802,527.25 |
36,752,147.82 |
|
Short-term Loan |
3,575,350.40 |
2,872,645.46 |
108,171.32 |
|
Accrued Income Tax |
75,736.06 |
286,719.67 |
162,125.59 |
|
Accrued Expenses |
- |
- |
158,264.07 |
|
Other Current Liabilities |
11,412.53 |
9,359.93 |
19,941.28 |
|
Total Current Liabilities |
23,518,061.94 |
50,971,252.31 |
37,200,650.08 |
|
Total Liabilities |
23,518,061.94 |
50,971,252.31 |
37,200,650.08 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital :
Baht 100 par
value authorized, and
issued share capital
120,000 shares
in 2017 |
12,000,000.00 |
|
|
|
40,000 shares
in 2016 &
2015 |
|
4,000,000.00 |
4,000,000.00 |
|
Capital Paid |
12,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
37,898,581.02 |
36,127,537.86 |
33,673,510.72 |
|
Total Shareholders’
Equity |
49,898,581.02 |
40,127,537.86 |
37,673,510.72 |
|
Total
Liabilities and Shareholders’ Equity |
73,416,642.96 |
91,098,790.17 |
74,874,160.80 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Sales or Services
Income |
66,220,134.82 |
78,807,191.57 |
78,963,267.99 |
|
Other Income |
459,477.29 |
189,894.99 |
203,075.84 |
|
Total Revenues |
66,679,612.11 |
78,997,086.56 |
79,166,343.83 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
59,449,189.23 |
71,239,029.74 |
71,771,010.26 |
|
Administrative
Expenses |
4,903,436.23 |
4,417,058.54 |
4,244,571.53 |
|
Loss on Exchange
Rate |
- |
- |
809,688.61 |
|
Total Expenses |
64,352,625.46 |
75,656,088.28 |
76,825,270.40 |
|
Profit / [Loss]
before Income Tax |
2,326,986.65 |
3,340,998.28 |
2,341,073.43 |
|
Income Tax |
[555,943.49] |
[886,971.14] |
[662,125.59] |
|
|
|
|
|
|
Net Profit / [Loss]
|
1,771,043.16 |
2,454,027.14 |
1,678,947.84 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.02 |
1.74 |
1.95 |
|
QUICK RATIO |
TIMES |
1.58 |
0.94 |
0.93 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
615.83 |
530.27 |
1,047.55 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.90 |
0.87 |
1.05 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
207.12 |
207.46 |
193.20 |
|
INVENTORY TURNOVER |
TIMES |
1.76 |
1.76 |
1.89 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
198.13 |
206.83 |
131.54 |
|
RECEIVABLES TURNOVER |
TIMES |
1.84 |
1.76 |
2.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
121.91 |
244.92 |
186.91 |
|
CASH CONVERSION CYCLE |
DAYS |
283.34 |
169.37 |
137.83 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.78 |
90.40 |
90.89 |
|
SELLING & ADMINISTRATION |
% |
7.40 |
5.60 |
5.38 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.92 |
9.84 |
9.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.51 |
4.24 |
2.96 |
|
NET PROFIT MARGIN |
% |
2.67 |
3.11 |
2.13 |
|
RETURN ON EQUITY |
% |
3.55 |
6.12 |
4.46 |
|
RETURN ON ASSET |
% |
2.41 |
2.69 |
2.24 |
|
EARNING PER SHARE |
BAHT |
14.76 |
61.35 |
41.97 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.32 |
0.56 |
0.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.47 |
1.27 |
0.99 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(15.97) |
(0.20) |
|
|
OPERATING PROFIT |
% |
(30.35) |
42.71 |
|
|
NET PROFIT |
% |
(27.83) |
46.16 |
|
|
FIXED ASSETS |
% |
(27.65) |
97.16 |
|
|
TOTAL ASSETS |
% |
(19.41) |
21.67 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -15.97%. Turnover has decreased
from THB
PROFITABILITY
: SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.92 |
Impressive |
Industrial
Average |
2.79 |
|
Net Profit Margin |
2.67 |
Satisfactory |
Industrial
Average |
3.27 |
|
Return on Assets |
2.41 |
Satisfactory |
Industrial
Average |
3.41 |
|
Return on Equity |
3.55 |
Acceptable |
Industrial
Average |
8.73 |
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 10.92%. 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 2.67%. When compared with the industry average, the ratio of the
company was lower.
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 2.41%.
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 3.55%.
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 |
3.02 |
Impressive |
Industrial
Average |
2.30 |
|
Quick Ratio |
1.58 |
|
|
|
|
Cash Conversion Cycle |
283.34 |
|
|
|
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 3.02 times in 2017, increase from 1.74 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 1.58
times in 2017, increase from 0.94 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 284 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.32 |
Impressive |
Industrial
Average |
0.48 |
|
Debt to Equity Ratio |
0.47 |
Impressive |
Industrial
Average |
0.93 |
|
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 0.32 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 |
615.83 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.90 |
Satisfactory |
Industrial
Average |
1.04 |
|
Inventory Conversion Period |
207.12 |
|
|
|
|
Inventory Turnover |
1.76 |
Satisfactory |
Industrial
Average |
1.85 |
|
Receivables Conversion Period |
198.13 |
|
|
|
|
Receivables Turnover |
1.84 |
Satisfactory |
Industrial
Average |
2.62 |
|
Payables Conversion Period |
121.91 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.84
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 is
207 days at the end of 2016,
same number of days
as in 2017.
And Inventory turnover is 1.76 times in year 2016, same
figure as in
2017.
The company's Total Asset Turnover is calculated as 0.9
times and 0.87 times in 2017 and 2016 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 63.41 |
|
|
1 |
INR 87.18 |
|
Euro |
1 |
INR 77.45 |
|
THB |
1 |
INR 2.00 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIY |
|
|
|
|
Report Prepared
by : |
TRU |
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.