MIRA INFORM REPORT
|
Report Date : |
08.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
ARISHA
DIAMONDS CO., LTD. |
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Registered Office : |
Suite 2810,
28th Floor, Jewelry
Trade Center, 919/359 Silom
Road, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
11.04.2007 |
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Com. Reg. No.: |
0105550040891 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
International Trading
Company of diamonds and jewelry
products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
ARISHA DIAMONDS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : SUITE
2810, 28th FLOOR,
JEWELRY TRADE CENTER,
919/359 SILOM
ROAD, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2235-8778,
2630-0810-3
FAX :
[66] 2630-3904
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2007
REGISTRATION
NO. : 0105550040891
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SANCHAI HARPAWAT,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
INTERNATIONAL TRADING
COMPANY
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 11, 2007
as a private
limited company under the registered
name ARISHA DIAMONDS
CO., LTD., by
Thai groups, with the objective
to be engaged in diamonds and
jewelry products trading business. It
currently employs 5
staff.
The
subject’s registered address
is Suite 2810,
28th Flr., Jewelry
Trade Center, 919/359
Silom Rd., Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address. [The given address
913/353 was incorrect].
THE BOARD OF DIRECTOR
Mr. Sanchai Harpawat
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Sanchai Harpawat is
the Managing Director.
He is Thai
nationality with the
age of 41 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing various
kinds of diamonds,
gemstones and jewelry
products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India, South
Africa and Pakistan.
SALES
The products are
sold locally to
wholesalers, manufacturers and
end-users.
EXPORT
The products are
exported to Hong
Kong, Japan and
the countries in
Europe.
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 5
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
250,000.
COMMENT
In
2010 the business
performance was considered
satisfactory comparing to the
previous year. With
the improvement of jewelry
industry has prompted
the subject to increase
its sales volume
to meet with rising
demand from both local
and export markets.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000 divided into 50,000
shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sanchai Harpawat Nationality: Thai Address : 410/165
Surawong Rd., Siphya,
Bangrak, Bangkok |
25,500 |
51.00 |
|
Mr. Chamnien Choopirom Nationality: Thai Address : 10/29
Moo 3, Bangpleeyai, Bangplaee,
Samutprakarn
|
5,000 |
10.00 |
|
Mrs. Nartsumita Dhatti Nationality: Thai Address : 40/21
Sutthisarn Rd., Samsennai,
Phyathai, Bangkok |
3,500 |
7.00 |
|
Pol. Lt. Col. Prachaya
Prasarnsuk Nationality: Thai Address : 26/12
Tesabannimitnua Rd., Ladyao,
Jatujak, Bangkok |
3,500 |
7.00 |
|
Mr. Apisit Thongthamsiri Nationality: Thai Address : 4
Yaowaraj Rd., Wangburapapirm,
Phranakorn, Bangkok |
2,500 |
5.00 |
|
Mr. Jesada Panichakul Nationality: Thai Address : 15/9
Moo 1, Jombueng,
Jomnueng, Ratchaburi |
2,500 |
5.00 |
|
Mr. Somporn Chat-ariyamongkol Nationality: Thai Address : 56/109
Moo 7, Bangkruay,
Bangkruay, Nonthaburi |
2,500 |
5.00 |
|
Mr. Suthep Santiparp Nationality: Thai Address : 161/304
Charansanitwong Rd.,
Bangkhunsri, Bangkoknoi,
Bangkok |
2,500 |
5.00 |
|
Pol. Lt. Col. Jaruwat Chanphen Nationality: Thai Address : 166/983
Moo 1, Seekan,
Donmuang, Bangkok |
2,500 |
5.00 |
Total Shareholders : 9
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chote Ekabusaya
No. 1559
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
85,243.32 |
1,573,773.98 |
|
Trade Accounts Receivable |
13,067,787.59 |
10,327,995.75 |
|
Short-term Loan to Person Related |
119,000.00 |
219,000.00 |
|
Inventories |
35,408,037.50 |
32,192,881.24 |
|
Other Current Assets
|
1,623,023.55 |
2,123,638.35 |
|
|
|
|
|
Total Current Assets
|
50,303,091.96 |
46,437,289.32 |
|
|
|
|
|
Fixed Assets |
1,070,458.72 |
1,279,190.19 |
|
Total Assets |
51,373,550.68 |
47,716,479.51 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
18,493,852.31 |
15,463,066.76 |
|
Other Current Liabilities |
158,260.77 |
101,160.37 |
|
|
|
|
|
Total Current Liabilities |
18,652,113.08 |
15,564,227.13 |
|
|
|
|
|
Long-term Loan from Related Person |
28,560,000.00 |
28,540,000.00 |
|
Total Liabilities |
47,212,113.08 |
44,104,227.13 |
|
|
|
|
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Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning-
Unappropriated |
[838,562.40] |
[1,387,747.62] |
|
Total Shareholders' Equity |
4,161,437.60 |
3,612,252.38 |
|
Total Liabilities & Shareholders' Equity |
51,373,550.68 |
47,716,479.51 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
27,185,552.11 |
14,931,619.72 |
|
Other Income |
1,252,035.93 |
1,336,517.44 |
|
Total Sales |
28,437,588.04 |
16,268,137.16 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
24,366,641.68 |
13,418,596.83 |
|
Selling Expenses |
547,837.03 |
463,126.47 |
|
Administrative Expenses |
2,973,924.11 |
2,470,608.69 |
|
Total Expenses |
27,888,402.82 |
16,352,331.99 |
|
|
|
|
|
Net Profit / [Loss] |
549,185.22 |
[84,194.83] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.70 |
2.98 |
|
QUICK RATIO |
TIMES |
0.71 |
0.78 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
25.40 |
11.67 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.53 |
0.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
530.39 |
875.68 |
|
INVENTORY TURNOVER |
TIMES |
0.69 |
0.42 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
175.45 |
252.47 |
|
RECEIVABLES TURNOVER |
TIMES |
2.08 |
1.45 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
277.03 |
420.61 |
|
CASH CONVERSION CYCLE |
DAYS |
428.82 |
707.53 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.63 |
89.87 |
|
SELLING & ADMINISTRATION |
% |
12.95 |
19.65 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
14.97 |
19.08 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.02 |
(0.56) |
|
NET PROFIT MARGIN |
% |
2.02 |
(0.56) |
|
RETURN ON EQUITY |
% |
13.20 |
(2.33) |
|
RETURN ON ASSET |
% |
1.07 |
(0.18) |
|
EARNING PER SHARE |
BAHT |
10.98 |
(1.68) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.92 |
|
DEBT TO EQUITY RATIO |
TIMES |
11.35 |
12.21 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
82.07 |
|
|
OPERATING PROFIT |
% |
(752.28) |
|
|
NET PROFIT |
% |
752.28 |
|
|
FIXED ASSETS |
% |
(16.32) |
|
|
TOTAL ASSETS |
% |
7.66 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
14.97 |
Impressive |
Industrial
Average |
10.37 |
|
Net Profit Margin |
2.02 |
Impressive |
Industrial
Average |
(0.89) |
|
Return on Assets |
1.07 |
Impressive |
Industrial
Average |
(1.19) |
|
Return on Equity |
13.20 |
Impressive |
Industrial
Average |
(3.06) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 14.97%. When compared with
the industry average, the ratio of the company was higher. This 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 2.02% 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 1.07%, 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 13.2%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
2.70 |
Impressive |
Industrial
Average |
1.81 |
|
Quick Ratio |
0.71 |
|
|
|
|
Cash Conversion Cycle |
428.82 |
|
|
|
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 2.7 times in 2010, decrease from 2.98 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 0.71 times in 2010,
decrease from 0.78 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 429 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Risky |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
11.35 |
Risky |
Industrial
Average |
1.53 |
|
Times Interest Earned |
- |
|
Industrial
Average |
(0.19) |
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 0.92 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
25.40 |
Impressive |
Industrial
Average |
8.05 |
|
Total Assets Turnover |
0.53 |
Deteriorated |
Industrial
Average |
1.30 |
|
Inventory Conversion Period |
530.39 |
|
|
|
|
Inventory Turnover |
0.69 |
Deteriorated |
Industrial
Average |
2.00 |
|
Receivables Conversion Period |
175.45 |
|
|
|
|
Receivables Turnover |
2.08 |
Acceptable |
Industrial
Average |
3.00 |
|
Payables Conversion Period |
277.03 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.80 |
|
UK Pound |
1 |
Rs.72.86 |
|
Euro |
1 |
Rs.63.11 |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.