MIRA INFORM
REPORT
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Report Date : |
04.01.2011 |
IDENTIFICATION DETAILS
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Name : |
STAR
DIAMONDS CO., LTD. |
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Registered Office : |
2nd Floor, Room 203,
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
21.04.1986 |
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Com. Reg. No.: |
0105529013405 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importer, Distributor and Exporter of diamond and gemstones |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
STAR
DIAMONDS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2nd FLOOR, ROOM
203,
30-36
BANGRAK,
TELEPHONE : [66] 2235-5185,
081 684-1013, 2235-3391
FAX :
[66] 2267-1567
E-MAIL
ADDRESS : star_diamonds@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529013405 [Former : 1341/2529]
CAPITAL REGISTERED : BHT.
15,000,000
CAPITAL PAID-UP : BHT. 15,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SHAH BHARAT
LALUBHAI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMOND AND
GEMSTONES IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on April 21,
1986 as a
private limited company under
the name style
STAR DIAMONDS CO., LTD.,
by Thai and
Indian groups. It
is engaged in
diamonds and gems
trading business. It
currently employs 4
staff.
The
subject’s registered address
is 30-36 Poonmanee
Building, Mahaesak 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. Shah |
|
Indian |
55 |
|
Mr. Gitane |
|
Indian |
27 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Shah
He is Indian
nationality with the
age of 55
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
of diamonds and
gemstones.
IMPORT
100% of
the products is
imported from India,
Pakistan, Belgium, Hong
Kong and South Africa.
SALES
The products are
sold to customers
both domestic and
overseas, mainly Malaysia,
Hong Kong, Singapore,
India and Indonesia.
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.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold by cash
and credit, with maximum credit given at
30-60 days. The
subject is not
found to have
problem on its
account receivable.
BANKING
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 4
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in prime
commercial area.
REMARK
CREDIT
OF US$ 500,000 AGAINST
D/A TERMS SHOULD
BE IN ORDER.
COMMENT
The
subject was formed in
1986 engaged in diamond
and gemstones trading and export
of fine jewelry
products. Subject’s sales
were steadily grown
and had a good
business in the
past year. The
prospect remains positive
in parallel with the improving economy.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
1,000,000 divided into
1,000 shares of
Bht. 1,000 each.
The
capital was increased
later as following:
Bht. 2,000,000
on January 26,
1987
Bht.
15,000,000 on February
5, 1991
The
latest registered capital
was increased to
Bht. 15,000,000 divided into
15,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at January
30, 2009]
|
NAME |
HOLDING |
% |
|
|
|
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Mr. Gitane Nationality: Indian Address :
Bangrak, |
6,150 |
41.00 |
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Ms. Santana Panya-ey Nationality: Thai Address : 717/178
Trok Watchannai, Bangklo,
Bangkorlaem, |
2,850 |
19.00 |
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Mr. Shah Nationality: Indian Address :
Bangrak, |
1,200 |
8.00 |
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Mr. Opas Duangkaew Nationality: Thai Address : 132
Moo 11, Rainoy,
Muang,
Ubolratchathanee |
1,200 |
8.00 |
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Mr. Adisak Wuthi-uthai Nationality: Thai Address : |
1,200 |
8.00 |
|
Mrs. Sakorn Porakonthan Nationality: Thai Address :
Bangkapi, |
1,200 |
8.00 |
|
Mr. Bandit Sornpaisal Nationality: Thai Address :
Pathumwan, |
1,200 |
8.00 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Surin Ruangpetch No.
3741
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 &
2008 were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash in Hand
& at Bank |
137,126.35 |
125,248.07 |
|
Trade Accts. Receivable |
23,022,610.69 |
22,485,867.28 |
|
Inventories |
29,257,528.36 |
24,403,189.40 |
|
Deferred Income
|
100,826.00 |
20,384.00 |
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|
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Total Current Assets
|
52,518,091.40 |
47,034,688.75 |
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Loan from Director
|
400,000.00 |
7,600,000.00 |
|
Fixed Assets |
1.00 |
1.00 |
|
Other Assets - Guarantee |
5,607.48 |
5,607.48 |
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Total Assets |
52,923,699.88 |
54,640,297.23 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
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Trade Accts. Payable |
33,687,664.39 |
37,017,478.20 |
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Loan Payable from Financial Institution |
1,573,688.28 |
730,116.60 |
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Other Current Liabilities |
331,356.60 |
72,784.39 |
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Total Current Liabilities |
35,592,709.27 |
37,820,379.19 |
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Shareholders' Equity |
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Share capital : Baht 100 par
value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
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Capital Paid |
15,000,000.00 |
15,000,000.00 |
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Retained Earning - Unappropriated |
2,330,990.61 |
1,819,918.04 |
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Total Shareholders' Equity |
17,330,990.61 |
16,819,918.04 |
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Total Liabilities & Shareholders' Equity |
52,923,699.88 |
54,640,297.23 |
PROFIT & LOSS ACCOUNT
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|
2009 |
2008 |
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Sales |
37,279,573.22 |
36,102,844.91 |
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Gain on Exchange
Rate |
- |
814,162.06 |
|
Other Income |
3,923,679.99 |
20,384.00 |
|
Total Sales |
41,203,253.21 |
36,937,390.97 |
|
Expenses |
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Cost of Goods
Sold |
38,865,900.05 |
34,884,042.50 |
|
Selling & Administrative Expenses |
1,493,355.71 |
1,662,095.09 |
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Total Expenses |
40,359,255.76 |
36,546,137.59 |
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Profit / [Loss] before Interest
Expenses & Income Tax |
843,997.45 |
391,253.38 |
|
Interest Expenses |
[109,247.44] |
[186,453.12] |
|
Profit / [Loss] before Income
Tax |
734,750.01 |
204,800.26 |
|
Income Tax |
[223,677.44] |
[65,549.57] |
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|
|
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Net Profit / [Loss] |
511,072.57 |
139,250.69 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
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LIQUIDITY RATIO |
|
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CURRENT RATIO |
TIMES |
1.48 |
1.24 |
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QUICK RATIO |
TIMES |
0.65 |
0.60 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
37,279,573.22 |
36,102,844.91 |
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TOTAL ASSETS TURNOVER |
TIMES |
0.70 |
0.66 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
274.77 |
255.34 |
|
INVENTORY TURNOVER |
TIMES |
1.33 |
1.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
225.41 |
227.33 |
|
RECEIVABLES TURNOVER |
TIMES |
1.62 |
1.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
316.37 |
387.32 |
|
CASH CONVERSION CYCLE |
DAYS |
183.81 |
95.35 |
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PROFITABILITY
RATIO |
|
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COST OF GOODS SOLD |
% |
104.26 |
96.62 |
|
SELLING & ADMINISTRATION |
% |
4.01 |
4.60 |
|
INTEREST |
% |
0.29 |
0.52 |
|
GROSS PROFIT MARGIN |
% |
6.27 |
5.69 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.26 |
1.08 |
|
NET PROFIT MARGIN |
% |
1.37 |
0.39 |
|
RETURN ON EQUITY |
% |
2.95 |
0.83 |
|
RETURN ON ASSET |
% |
0.97 |
0.25 |
|
EARNING PER SHARE |
BAHT |
3.41 |
0.93 |
|
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.67 |
0.69 |
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DEBT TO EQUITY RATIO |
TIMES |
2.05 |
2.25 |
|
TIME INTEREST EARNED |
TIMES |
7.73 |
2.10 |
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ANNUAL GROWTH |
|
|
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SALES GROWTH |
% |
3.26 |
|
|
OPERATING PROFIT |
% |
115.72 |
|
|
NET PROFIT |
% |
267.02 |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
(3.14) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
6.27 |
Acceptable |
Industrial Average |
10.62 |
|
Net Profit Margin |
1.37 |
Impressive |
Industrial Average |
(0.91) |
|
Return on Assets |
0.97 |
Impressive |
Industrial Average |
(1.16) |
|
Return on Equity |
2.95 |
Impressive |
Industrial Average |
(2.99) |
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 6.27%. When compared with
the industry average, the ratio of the company was lower. This indicated that company may have the problems with control over its
costs.
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 1.37% 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 is 0.97%, 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 is
2.95%, 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 |
1.48 |
Satisfactory |
Industrial Average |
1.85 |
|
Quick Ratio |
0.65 |
|
|
|
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Cash Conversion Cycle |
183.81 |
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|
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 1.48 times in 2009, increase from 1.24 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 lower.
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 0.65 times in 2009,
increase from 0.6 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 184 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.67 |
Impressive |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
2.05 |
Risky |
Industrial Average |
1.52 |
|
Times Interest Earned |
7.73 |
Impressive |
Industrial Average |
(0.13) |
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 stronger equity
position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 7.73 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 0.67 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 |
37,279,573.22 |
Impressive |
Industrial Average |
7.78 |
|
Total Assets Turnover |
0.70 |
Acceptable |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
274.77 |
|
|
|
|
Inventory Turnover |
1.33 |
Acceptable |
Industrial Average |
1.91 |
|
Receivables Conversion Period |
225.41 |
|
|
|
|
Receivables Turnover |
1.62 |
Acceptable |
Industrial Average |
2.78 |
|
Payables Conversion Period |
316.37 |
|
|
|
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.44.67 |
|
|
1 |
Rs.69.45 |
|
Euro |
1 |
Rs.59.37 |
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.