MIRA
INFORM REPORT
|
Report Date : |
24th February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
R.D.
DIAMONDS CO., LTD. |
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|
|
|
Registered Office : |
Room A,
40th Floor,
Jewelry Trade Center Building,
919/474 Silom Road,
Silom, Bangrak, Bangkok
10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.08.2002 |
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Com. Reg. No.: |
0105545090168 [Former :
10454501566] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Engaged in importing and
distributing of diamonds and gemstones. |
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 |
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|
|
|
Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company name
R.D. DIAMONDS
CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM A, 40th FLOOR, JEWELRY
TRADE
CENTER BUILDING,
919/474 SILOM ROAD,
SILOM,
BANGRAK, BANGKOK 10500
TELEPHONE : [66]
2630-3155-6, 2235-8021
FAX :
[66] 2630-3157
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2002
REGISTRATION NO.
:
0105545090168 [Former : 10454501566]
CAPITAL
REGISTERED : BHT. 2,000,000
CAPITAL
PAID-UP : BHT. 2,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER
31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MUKESH DHADHIA,
INDIAN
MANAGING
DIRECTOR
NO. OF
STAFF : 2
LINES OF
BUSINESS : DIAMOND, GEMSTONE
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 August 29,
2002 as a
private limited company under the name style
R.D. DIAMONDS CO.,
LTD., by Thai and
Indian groups, in
order to trade of
diamond, gemstone and jewelry
products. It currently
employs 2 staff.
The
subject’s registered address
is 919/474 Silom
Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
Mr. Mukesh Dhadhia
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Mukesh
Dhadhia 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 of
diamonds and gemstones.
It also exports
jewelry products to
overseas markets.
PURCHASE
The products are purchased from suppliers
both domestic and
overseas in India
and South Africa.
DOMESTIC SALES
[95%]
Diamonds and gemstones
are sold locally
by wholesale to
traders and manufacturers.
EXPORT [5%]
Jewelry
products is exported
to India, Hong
Kong and Singapore.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor 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
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
L/C at sight or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public Co., Ltd.
[Surawong
Branch, 23 Surawong
Rd., Suriyawong, Bangrak,
Bangkok]
EMPLOYMENT
The
subject 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 Thai gems and jewelry industry is really vibrant. Thai design is more diversified and
international as well as craftsmanship
is excellent. Many Indian jewelry
traders likely to buy jewelry made in Thailand to sell in international
markets, while selling the loose gem stone and diamond to Thai producers.
However, the subject
obtained net loss
in 2005 mainly
due to higher cost of goods
sold. Nevertheless, the
subject is still
doing active business
and the business
outlook is still
promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht. 100 each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as
at April 30,
2006]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Mukesh Dhadhia Nationality: Indian Address : 297
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
9,800 |
49.00 |
|
Mr. Sorasak Boonmalert Nationality: Thai Address : 411/29
Krungthep Kreetha Rd.,
Huamark,
Bangkapi, Bangkok |
2,000 |
10.00 |
|
Mrs. Suwan Hadsen Nationality: Thai Address : 436/28
Moo 3, Aranyik, Muang,
Phisanuloke |
2,000 |
10.00 |
|
Mr. Prayoon Lahrao Nationality: Thai Address : 10/23
Onnuch Rd., Pravet,
Bangkok |
2,000 |
10.00 |
|
Mr. Piya Leechalad Nationality: Thai Address : 14/1
Krungkasem Rd., Klongmahanak,
Pomprab, Bangkok |
2,000 |
10.00 |
|
Mr.
Boonyiam Traiprom Nationality: Thai Address : 24
Moo 6, Srisook, Samronghab, Surin |
2,000 |
10.00 |
|
Mr. Pichet Piyaphan Nationality: Thai Address : 25
Moo 5, Thaphraya, Nakornchaisri, Nakornpathom
|
200 |
1.00 |
Total Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Wasana Tanmongkol No.
1888
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2005 & 2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in hand
& at Bank
[note 1] |
676,969.23 |
2,204,362.95 |
|
Trade Accts. Receivable |
15,921,987.51 |
14,245,971.71 |
|
Inventories |
32,422,048.40 |
8,938,147.49 |
|
Other Current Assets
[note 2] |
76,380.20 |
500,509.53 |
|
Total Current
Assets |
49,097,385.34 |
25,888,991.68 |
|
|
|
|
|
Fixed Assets |
103,287.57 |
55,834.47 |
|
Total Assets |
49,200,672.91 |
25,944,826.15 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Trade Accts. & Notes Payable |
42,590,010.65 |
15,023,626.79 |
|
Other Current Liabilities |
109,150.71 |
114,216.33 |
|
Total Current
Liabilities |
42,699,161.36 |
15,137,843.12 |
|
Loan to Directors |
5,500,000.00 |
8,000,000.00 |
|
Total Liabilities |
48,199,161.36 |
23,137,843.12 |
|
|
|
|
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Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning -
Unappropriated |
[998,488.45] |
806,983.03 |
|
Total
Shareholders' Equity |
1,001,511.55 |
2,806,983.03 |
|
Total
Liabilities & Shareholders' Equity |
49,200,672.91 |
25,944,826.15 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales-Local |
38,912,540.66 |
38,921,220.54 |
|
Sales-Foreign |
5,131,594.62 |
- |
|
Other Income |
|
|
|
Gain on
Exchange Rate |
- |
125,347.07 |
|
Other |
- |
0.07 |
|
Total Revenues
|
44,044,135.28 |
39,046,567.68 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
42,840,843.21 |
36,778,441.01 |
|
Selling & Administrative Expenses |
1,862,858.38 |
1,849,158.69 |
|
Loss on Exchange
Rate |
1,145,905.17 |
- |
|
Total Expenses |
45,849,606.76 |
38,627,599.70 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
[1,805,471.48] |
418,967.98 |
|
Interest Expenses |
- |
[22,083.33] |
|
Income Tax |
- |
[118,308.79] |
|
Net Profit / [Loss] |
[1,805,471.48] |
278,575.86 |
FINANCIAL NOTE
NOTE 1
Cash in Hand & at Bank
|
|
2005 |
2004 |
|
|
|
|
|
Cash in hand |
543,675.90 |
499,228.71 |
|
Cash at bank |
133,293.33 |
1,705,134.24 |
|
Total
|
676,969.23 |
2,204,362.95 |
NOTE 2
Other Current Liabilities
|
|
2005 |
2004 |
|
|
|
|
|
Accrued Expenses |
- |
1,056.00 |
|
Accrued Audit Fee |
10,000.00 |
10,000.00 |
|
Accrued Services |
5,000.00 |
5,000.00 |
|
Loan Interest |
22,083.33 |
22,083.33 |
|
Accrued Income Tax |
- |
68,308.79 |
|
Accrued Withholding Income
Tax |
4,690.29 |
5,083.21 |
|
Accrued Social Securities |
2,330.00 |
2,685.00 |
|
Payable-Revenue Department |
65,047.09 |
- |
|
Total
|
109,150.71 |
114,216.33 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
|
Annual Growth |
2005 |
2004 |
|
Sales |
13.16 |
|
|
Operating |
[239.12] |
|
|
Net Profit |
[748.11] |
|
|
Fixed Assets |
84.99 |
|
|
Total Assets |
89.64 |
|
|
Profitability |
|
|
|
Cost of Goods
Sold |
97.27 |
94.49 |
|
Operating Profit Margin |
[1.50] |
1.08 |
|
S&A expenses |
4.23 |
4.75 |
|
Interest |
0.00 |
0.06 |
|
Other Revenues |
0.00 |
0.32 |
|
Net Profit Margin |
[4.10] |
0.72 |
|
Earning Per Shares |
[90.27] |
13.93 |
|
No. of Shares |
20,000 |
20,000 |
Net Sales was
increased by 13.16%,
Operating Profit was
decreased by 239.12%,
Net Profit was
decreased by 748.11%,
Fixed Assets was
increased by 84.99%,
Total Assets was
increased by 89.64%.
Compare each cost with sales, Cost of Goods Sold was increased from 94.49% to 97.27%, Operating Profit Margin was decreased from 1.08% to -1.50%, S & A Expenses were decreased from 4.75% to 4.23%, Interest Paid was decreased from 0.06% to 0.00%, Other Revenues was decreased from 0.32% to 0.00%, Net Profit Margin was decreased from 0.72% to -4.10%.
Earning Per Shares was decreased from 13.93 baht per share to-90.27 baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.15 |
1.71 |
|
Quick - assets ratio |
0.39 |
1.09 |
Current Ratio was
decreased from 1.71
to 1.15, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, and Quick-assets Ratio was decreased
from 1.09 to
0.39, capacity to
pay Short Term
Loan was not
good, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
48.13 |
8.24 |
|
Times Interest Earned |
- |
18.97 |
D/E Ratio was
increased from 8.24
to 48.13, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high
and Times Interest
Earned was 18.97,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
426.42 |
697.08 |
|
Total Assets Turnover |
0.90 |
1.50 |
|
Return on Assets |
[3.67] |
1.07 |
|
Return on Equity |
[180.27] |
9.92 |
|
Day’s Payable |
348.11 |
138.96 |
|
Day’s Inventories |
265.01 |
82.67 |
|
Days’ Receivables |
130.14 |
131.77 |
Fixed Assets Turnover
was decreased from
697.08 times to
426.42 times, Total
Assets Turnover was
decreased from 1.50
times to 0.90
times, show the
company could not
use Assets so efficiently, and
Return on Assets
was decreased from
1.07 to -3.67,
Return on Equity
was decreased from
9.92 to -180.27,
capacity to use
Assets to make
profit was not
good.
Day’s Payable was
increased from 139
days to 349
days, and Day’s
Inventories was increased
from 83 days
to 266 days, while Day’s
Receivables was decreased
from 132 days
to 131 days.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)
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
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