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|
MIRA
INFORM REPORT
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Report No. : |
507145 |
|
Report Date : |
15.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
REAL THAI GEMS LIMITED |
|
|
|
|
Registered Office : |
31/3 Trok Vaitee, Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
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Date of Incorporation : |
11.06.1986 |
|
|
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Com. Reg. No.: |
0105529019748 |
|
|
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|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing, distributing and
re-exporting diamonds and
gemstones, such as Emerald,
Ruby, Sapphire, Blue
Topaz, Amethyst, Green
Amethyst, garnet, Citrine,
Aquamarine, Peridot, Smoky
Quartz and others
for jewelry productions, including
jewelry products. |
|
|
|
|
No. of Employees : |
5 |
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 (30.09.2017) |
Current Rating (31.12.2017) |
|
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 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
REAL THAI
GEMS LIMITED
SUMMARY
BUSINESS ADDRESS : 31/3 TROK
VAITEE, SILOM ROAD,
SILOM,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE
: [66]
2234-2468, 2238-3188, 2238-3351,
2635-0321,
081
806-5270
FAX :
[66] 2236-2650,
2235-3675
E-MAIL ADDRESS : realthai@ksc.th.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1986
REGISTRATION NO. : 0105529019748 [Former: 1974/2529]
TAX ID NO. : 3101393132
CAPITAL REGISTERED : BHT.
11,000,000
CAPITAL PAID-UP : BHT.
11,000,000
SHAREHOLDER’S PROPORTION : THAI :
54.54%
INDIAN : 45.46%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR.
ASHOK KUMAR GUPTA,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 5
LINES OF
BUSINESS : DIAMOND AND
GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD FOR NORMAL
BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on June 11, 1986
as a private
limited company under
the registered name
REAL THAI GEMS LIMITED by Thai and Indian groups, in
order to import,
distribute and export
diamond and gemstones. It
currently employs 5
staff.
The subject’s
registered address is
31/3 Trok Vaitee,
Silom Road, Silom, Bangrak,
Bangkok 10500, and
this is the
company’s current operation
address.
THE BOARD OF
DIRECTORS
Mr. Ashok Kumar
Gupta
AUTHORIZED PERSON
The above
director signs on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr. Ashok Kumar
Gupta is the
Managing Director.
He is
Indian nationality with
the age of
51 years old.
BUSINESS OPERATIONS
The subject is
engaged in importing, distributing and
re-exporting diamonds and
gemstones, such as Emerald,
Ruby, Sapphire, Blue
Topaz, Amethyst, Green
Amethyst, garnet, Citrine,
Aquamarine, Peridot, Smoky
Quartz and others
for jewelry productions,
including jewelry products.
PURCHASE
The products are purchased
from both local
and overseas suppliers in India,
Pakistan, Japan and
Republic of China.
MAJOR SUPPLIERS
Gupta Jewel Corporation
: India
Thai Fine Gems
& Jewelry Ltd. : Thailand
SALES [LOCAL]
The products are
sold locally to jewelry manufacturers.
EXPORT [COUNTRIES]
Its products
are exported and
re-exported to United States of America, Republic of
China, India, Hong Kong, Japan,
and countries in
Europe.
MAJOR CUSTOMER
GRK Gems Inc. : United
States of America
SUBSIDIARIES
& AFFILIATED COMPANY
The subject is
not found to
have subsidiaries 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 IRICO’S
DATABASE 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.
Exports are against
T/T.
BANKING
Kasikornbank
Public Company Limited
[Silom Branch
: Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject employs
5 office and
sales 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’s
performance in 2016
were slow, due
to shrinking consumer
spending and low
purchasing power from
domestic market resulted
to a decrease in
the subject’s sales
or service income.
Nevertheless, the subject’s
business remains moderately
fair and profitable.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2,000,000 divided
into 20,000 shares
of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 5,000,000 on
August 19, 1995
Bht. 10,000,000 on
February 10, 1998
Bht. 11,000,000 on
August 27, 1998
The latest
registered capital was
increased to Bht. 11,000,000 divided
into 110,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 30, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
Mr. Ashok
Kumar Gupta
Nationality: Indian Address : 31/3 Trok Vaitee, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
50,000 |
45.46 |
Mr. Anurak
Gupta
Nationality: Thai Address : 31/3 Trok
Vaitee, Silom Rd., Silom,
Bangrak,
Bangkok 10500 |
40,000 |
36.36 |
Ms. Annika Gupta
Nationality: Thai Address : 31/3
Trok Vaitee, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
20,000 |
18.18 |
Total
Shareholders : 3
Share Structure [as at
April 30, 2017]
|
Nationality |
Shareholders |
No.
of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
60,000 |
54.54 |
|
Foreign - Indian |
1 |
50,000 |
45.46 |
|
Total |
3 |
110,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Suchart Srimanchantha
No. 3549
Financials
REAL THAI GEMS
LIMITED
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 |
514,193.01 |
1,137,119.89 |
802,306.31 |
|
Trade Accounts and
Other Receivable |
46,536,062.14 |
45,913,708.81 |
43,830,117.96 |
|
Short-term Loans |
3,058,230.00 |
- |
- |
|
Inventories
|
20,928,167.93 |
28,891,623.25 |
23,605,584.78 |
|
Total Current Assets |
71,036,653.08
|
75,942,451.95 |
68,238,009.05 |
|
|
|
|
|
|
Property, Plant and
Equipment |
23,242,770.00 |
23,247,770.00 |
23,242,770.00 |
|
Total Assets |
94,279,423.08 |
99,185,221.95 |
91,480,779.05 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
24,627,270.11 |
30,174,840.88 |
19,907,851.41 |
|
Accrued Income Tax |
347,368.04 |
365,963.70 |
399,430.09 |
|
Other Current Liabilities |
54,607.04 |
69,482.81 |
- |
|
Total Current Liabilities |
25,029,245.19 |
30,610,287.39 |
20,307,281.50 |
|
Long-term Loans |
12,490,165.76 |
13,611,786.50 |
18,216,311.91 |
|
Total Liabilities |
37,519,410.95 |
44,222,073.89 |
38,523,593.41 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital :
Baht 100 par
value authorized, and
issued share capital
110,000 shares |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Capital Paid |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
45,760,012.13 |
43,963,148.06 |
41,957,185.64 |
|
Total Shareholders’
Equity |
56,760,012.13 |
54,963,148.06 |
52,957,185.64 |
|
Total
Liabilities and Shareholders’ Equity |
94,279,423.08 |
99,185,221.95 |
91,480,779.05 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services
Income |
73,158,667.76 |
84,487,770.23 |
87,145,605.45 |
|
Other Income |
469,302.16 |
638,471.82 |
896,992.99 |
|
Total Revenues |
73,627,969.92 |
85,126,242.05 |
88,042,598.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
64,416,523.64 |
75,459,616.91 |
77,545,954.73 |
|
Selling Expenses |
1,289,643.73 |
1,878,885.24 |
2,036,285.27 |
|
Administrative Expenses |
4,109,816.46 |
3,516,476.12 |
4,079,737.77 |
|
Total Expenses |
69,815,983.83 |
80,854,978.27 |
83,661,977.77 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost & Income Tax |
3,811,986.09 |
4,271,263.78 |
4,380,620.67 |
|
Financial Cost |
[1,456,253.98] |
[1,614,337.66] |
[1,630,496.00] |
|
|
|
|
|
|
Profit /[Loss]
before Income Tax |
2,355,732.11 |
2,656,926.12 |
2,750,124.67 |
|
Income Tax |
[558,868.04] |
[650,963.70] |
[709,630.09] |
|
Net Profit / [Loss] |
1,796,864.07 |
2,005,962.42 |
2,040,494.58 |
REAL THAI GEMS
LIMITED
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.84 |
2.48 |
3.36 |
|
QUICK RATIO |
TIMES |
2.00 |
1.54 |
2.20 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.15 |
3.63 |
3.75 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.78 |
0.85 |
0.95 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
118.58 |
139.75 |
111.11 |
|
INVENTORY TURNOVER |
TIMES |
3.08 |
2.61 |
3.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
232.18 |
198.35 |
183.58 |
|
RECEIVABLES TURNOVER |
TIMES |
1.57 |
1.84 |
1.99 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
139.54 |
145.96 |
93.70 |
|
CASH CONVERSION CYCLE |
DAYS |
211.22 |
192.15 |
200.98 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.05 |
89.31 |
88.98 |
|
SELLING & ADMINISTRATION |
% |
7.38 |
6.39 |
7.02 |
|
INTEREST |
% |
1.99 |
1.91 |
1.87 |
|
GROSS PROFIT MARGIN |
% |
12.59 |
11.44 |
12.04 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.21 |
5.06 |
5.03 |
|
NET PROFIT MARGIN |
% |
2.46 |
2.37 |
2.34 |
|
RETURN ON EQUITY |
% |
3.17 |
3.65 |
3.85 |
|
RETURN ON ASSET |
% |
1.91 |
2.02 |
2.23 |
|
EARNING PER SHARE |
BAHT |
16.34 |
18.24 |
18.55 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.45 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.66 |
0.80 |
0.73 |
|
TIME INTEREST EARNED |
TIMES |
2.62 |
2.65 |
2.69 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(13.41) |
(3.05) |
|
|
OPERATING PROFIT |
% |
(10.75) |
(2.50) |
|
|
NET PROFIT |
% |
(10.42) |
(1.69) |
|
|
FIXED ASSETS |
% |
(0.02) |
0.02 |
|
|
TOTAL ASSETS |
% |
(4.95) |
8.42 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -13.41%. Turnover has decreased
from THB
PROFITABILITY
: EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.59 |
Impressive |
Industrial
Average |
1.57 |
|
Net Profit Margin |
2.46 |
Impressive |
Industrial
Average |
0.20 |
|
Return on Assets |
1.91 |
Impressive |
Industrial
Average |
1.07 |
|
Return on Equity |
3.17 |
Impressive |
Industrial
Average |
1.95 |
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
12.59%. 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 2.46% 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 1.91%, 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 3.17%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY
: SATISFACTORY
LIQUIDITY
RATIO
|
Current Ratio |
2.84 |
Impressive |
Industrial
Average |
2.05 |
|
Quick Ratio |
2.00 |
|
|
|
|
Cash Conversion Cycle |
211.22 |
|
|
|
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 2.84 times in 2016, increase from 2.48 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 2 times
in 2016, increase from 1.54 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 212 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.40 |
Impressive |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
0.66 |
Impressive |
Industrial
Average |
0.89 |
|
Times Interest Earned |
2.62 |
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 2.62 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 0.4 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 Uptrend
Times Interest Earned Stable
ACTIVITY
: ACCEPTABLE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
3.15 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.78 |
Deteriorated |
Industrial
Average |
5.40 |
|
Inventory Conversion Period |
118.58 |
|
|
|
|
Inventory Turnover |
3.08 |
Deteriorated |
Industrial
Average |
15.53 |
|
Receivables Conversion Period |
232.18 |
|
|
|
|
Receivables Turnover |
1.57 |
Deteriorated |
Industrial
Average |
23.64 |
|
Payables Conversion Period |
139.54 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.57
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 140 days at the
end of 2015 to 119 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 2.61 times in year 2015 to 3.08 times
in year 2016.
The company's Total Asset Turnover is calculated as 0.78
times and 0.85 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 67.32 |
|
|
1 |
INR 91.25 |
|
Euro |
1 |
INR 80.51 |
|
THB |
1 |
INR 2.12 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
KET |
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.