MIRA
INFORM REPORT
|
Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
K. G. K. DIAMONDS CO
LTD. |
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Registered Office : |
29th Floor, Gems Tower,
1249/196 Charoenkrung Road,
Suriyawongse, Bangrak, Bangkok
10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
22.03.2001 |
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Com. Reg. No.: |
0105544028744 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importer,
Distributor and Exporter of Diamonds |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name
K. G. K.
DIAMONDS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 29th FLOOR,
GEMS TOWER,
1249/196
CHAROENKRUNG ROAD, SURIYAWONGSE, BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-4528-9
FAX : [66] 2267-4530
E-MAIL
ADDRESS : kgkdiabkk@kgkgroup.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION NO. : 0105544028744
CAPITAL REGISTERED : BHT. 24,000,000
CAPITAL PAID-UP : BHT.
24,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. HENCHAND SURANA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 10
LINES
OF BUSINESS : DIAMONDS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH GOOD PERFORMANCE
HISTORY
The
subject was established
on March 22,
2001 as a
private limited company under the name style
K. G. K. DIAMONDS CO.,
LTD., by a joint
venture among Thai,
Indian and United
Arab Emirate groups, with the
objective to engage
in diamond trading
business. It currently
employs approximately 10
staff.
The
subject’s registered address is 1249/196 Gems Tower, Charoenkrung
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
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Mr. Hemchand Surana |
|
Indian |
46 |
|
Mr. Sanjay Navrattan Kothari |
|
Indian |
44 |
AUTHORIZED PERSON
One of the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Hemchand Surana is
the Managing Director.
He is Indian nationality with
the age of
46 years old.
BUSINESS OPERATIONS
The subject is
engaged in trading
business, including import,
supply and export
wide range of
diamonds.
PURCHASE
The exported products
are purchased from
local suppliers.
IMPORT
80%
of the products is imported
from India, Belgium,
Hong Kong, U.A.E,
Israel, South Africa,
and the remaining
20% is purchased from local
supplier.
SALES
90% of the products are
sold locally to traders
and manufacturers, the
remaining 10% is
exported to Hong
Kong, United States
of America, Japan
and European countries.
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
L/C at sight or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately 10 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 is a leading
diamond trader. Most
of the products are re-exported
to overseas dealers,
while some of
the products are
supplied to leading
and famous jewelry
shop in domestic
market.
However,
current demand has
significantly dropped due
to economic meltdown
in world market
as well as consumption
slowdown and consumers’
spending limits in
local market, this
has also affected
subject’s business performance
throughout the year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each.
The
capital was increased
later as following:
Bht. 10,000,000
on October 6,
2003
Bht. 14,000,000
on November 10,
2004
Bht. 16,000,000
on December 15,
2004
Bht. 24,000,000
on January 21,
2006
The
latest registered capital
was increased to
Bht. 24,000,000 divided into
240,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
: [as at April 2,
2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Prime International FZCO Nationality: U.A.E Address : United
Arab Emirate |
117,400 |
48.92 |
|
Mr. Narong Promsin Nationality: Thai Address : 84
Krungkasem Rd., Klongmahanark, Pomprab, Bangkok |
30,600 |
12.75 |
|
Mr. Manus Oreephap Nationality: Thai Address : 84
Krungkasem Rd., Klongmahanark,
Pomprab, Bangkok |
30,600 |
12.75 |
|
Mr. Sorasak Boonmalert Nationality: Thai Address : 411/29
Krungthep-Kreetha Rd., Huamark,
Bangkapi, Bangkok |
30,600 |
12.75 |
|
Ms. Wanphen Kasurong Nationality: Thai Address : 411/29
Krungthep-Kreetha Rd., Huamark,
Bangkapi, Bangkok |
30,600 |
12.75 |
|
Mr. Hemchand Surana Nationality: Indian Address : India |
100 |
0.04 |
|
Mrs. Manjoo Kothari Nationality: Indian Address : Bombay,
India |
100 |
0.04 |
Total Shareholders :
7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Ratree Jeerangsappasuk No.
1916
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in Hand
& at Bank |
557,923.70 |
1,429,703.34 |
|
Trade Accts. Receivable |
148,851,407.30 |
113,770,391.59 |
|
Director’s Advance Receivable |
1,400,000.00 |
- |
|
Inventories |
138,814,171.60 |
86,829,898.79 |
|
Income Tax |
27,007.56 |
27,007.56 |
|
|
|
|
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Total Current Assets
|
289,650,510.16 |
202,057,001.28 |
|
Fixed Assets |
287,665.05 |
287,037.42 |
|
Total Assets |
289,938,175.21 |
202,344,038.70 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
|
|
|
|
|
Bank Overdraft |
11,282,010.08 |
- |
|
Accrued Tax |
1,802,348.16 |
920,445.38 |
|
Trade Accts. Payable |
162,606,375.93 |
137,212,827.88 |
|
Accrued Expenses |
941,515.68 |
234,462.07 |
|
Short-term Loan |
64,000,000.00 |
13,000,000.00 |
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|
|
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Total Current Liabilities |
240,632,249.85 |
151,367,735.33 |
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Long-term Loan |
15,248,250.00 |
19,979,863.92 |
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Total Liabilities |
255,880,499.85 |
171,347,599.25 |
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Shareholders' Equity |
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Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 240,000 shares |
24,000,000.00 |
24,000,000.00 |
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|
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Capital Paid |
24,000,000.00 |
24,000,000.00 |
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Retained Earning -
Unappropriated |
10,057,675.36 |
6,996,439.45 |
|
Total Shareholders' Equity |
34,057,675.36 |
30,996,439.45 |
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Total Liabilities & Shareholders' Equity |
289,938,172.21 |
202,344,038.70 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
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Sales |
424,865,454.67 |
301,992,813.17 |
|
Interest Income |
3,389.20 |
5,913.48 |
|
Gain on Exchange Rate |
9,145,869.70 |
12,317,345.98 |
|
Gain on Disposal of
Assets |
- |
3,623.25 |
|
Total Revenues |
434,014,713.57 |
314,319,695.88 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
417,586,117.64 |
300,551,264.87 |
|
Selling & Administrative Expenses |
9,139,441.51 |
9,007,317.85 |
|
Total Expenses |
426,725,559.15 |
309,558,582.72 |
|
|
|
|
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Profit / [Loss] before Interest
Expenses & Income Tax |
7,289,154.42 |
4,761,113.16 |
|
Interest Expenses |
[2,913,047.38] |
[539,257.97] |
|
Income Tax |
[1,314,413.19] |
[1,266,797.80] |
|
|
|
|
|
Net Profit / [Loss] |
3,061,693.85 |
2,955,057.39 |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
40.69 |
|
|
Operating Profit |
8.82 |
|
|
Net Profit |
3.61 |
|
|
Fixed Assets |
0.22 |
|
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Total Assets |
43.29 |
|
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Profitability |
|
|
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Cost of Good
Sold |
98.29 |
99.52 |
|
Operating Profit Margin |
1.72 |
1.58 |
|
S & A
Expenses |
2.15 |
2.98 |
|
Interest Paid |
0.69 |
0.18 |
|
Other Revenues |
2.15 |
4.08 |
|
Net Profit Margin |
0.72 |
0.98 |
|
Earning Per Shares |
12.76 |
12.31 |
|
No. of Shares |
240,000 |
240,000 |
Net Sales was
increased by 40.69%,
Operating Profit was
increased by 8.82%,
Net Profit was
increased by 3.61%,
Fixed Assets was
increased by 0.22%,
Total Assets was
increased by 43.29%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 99.52%
to 98.29%, Operating
Profit Margin was
increased from 1.58% to 1.72%, S
& A Expenses
was decreased from
2.98% to 2.15%,
Interest Paid was increased
from 0.18% to
0.69%, Other Revenues
was decreased from
4.08% to 2.15%,
Net Profit Margin
was decreased from
0.98% to 0.72%.
Earning Per Shares
was increased from
12.31 baht per
share to 12.76
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
1.20 |
1.33 |
|
Quick-Assets Ratio |
0.63 |
0.76 |
Current Ratio was decreased from
1.33 to 1.20,
show Current Assets
can cover Current
Liabilities, Liquidity Ratio
of the company was so
good, Quick-Assets Ratio
was decreased from
0.76 to 0.63,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
7.51 |
5.53 |
|
Times Interest Earned |
2.50 |
8.83 |
D/E Ratio was
increased from 5.53
to 7.51, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high, Times
Interest Earned was
decreased from 8.83
to 2.50, capacity
to pay interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1,476.94 |
1,052.10 |
|
Total Assets Turnover |
1.47 |
1.49 |
|
Return on Assets |
1.06 |
1.46 |
|
Return on Equity |
8.99 |
9.53 |
|
Day's Payable |
137.78 |
163.57 |
|
Day’s Inventories |
117.62 |
103.51 |
|
Day’s Receivables |
126.13 |
135.62 |
Fixed Assets Turnover
was increased from
1,052.10 times to
1,476.95 times, Total
Assets Turnover was
decreased from 1.49
times to 1.47
times, show the
company could use
Fixed Assets so
efficiently, Return on
Assets was decreased
from 1.46 to
1.06, Return on
Equity was decreased
from 9.53 to
8.99, capacity to
use Assets to
make profit was
good.
Day's Payable was
decreased from 164
days to 138
days, while Day’s
Inventories was increased
from 104 days
to 118 days, but Day’s
Receivables was decreased
from 136 days
to 127 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.90 |
|
UK Pound |
1 |
Rs.74.30 |
|
Euro |
1 |
Rs.63.42 |
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. |
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%)