MIRA INFORM REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
MODIAM
CO., LTD. |
|
|
|
|
Registered Office : |
Room 303, 3rd Floor, Kbs Building, 30-38 Mahesak 3 Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
14.05.1990 |
|
|
|
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Com. Reg. No.: |
0105533053815 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer,
distributor and exporter
of diamonds and gemstones |
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 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
MODIAM CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
303, 3rd FLOOR,
KBS BUILDING,
30-38
MAHESAK
3 ROAD, SURIYAWONGSE,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2238-3971,
2234-3124
FAX :
[66] 2266-4011
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533053815
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KAUSHIK DINKARAI
JOGI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 10
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 May 14,
1990 as a
private limited company under
the name style MODIAM
CO., LTD., by Thai and
Indian groups, with
the objective to
be engaged in
trading business of jewelry
and related products. It
currently employs 10
staff.
The
subject’s registered address
is Room 303, 3rd Flr.,
30-38 KBS Building,
Mahesak 3 Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kaushik Dinkarai Jogi |
|
Indian |
44 |
|
Mr. Jogi Rajiv Pravin
Chandra |
|
Indian |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kaushik Dinkarai Jogi
is the Managing
Director.
He is Indian
nationality with the
age of 44
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
importing and distributing
diamonds and gemstones,
as well as
exporting various kinds
of Thai jewelries,
which have been
supplied by local
jewelry manufacture contractor.
PURCHASE
Raw
materials are purchased
from suppliers both
domestic and overseas,
mainly in India
and Hong Kong.
SALES
Diamonds and gemstones are
sold and supplied locally
to jewelry manufacturers and
end-users.
EXPORT
Jewelry products are
exported to Hong
Kong.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
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
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 on negotiated
terms.
Exports are against
T/T.
BANKING
The
Siam Commercial 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.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
300,000.
COMMENT
The
subject is engaged in trading
business of diamonds
and gemstones, as well
as exporting of jewelry
products. Its serves
mainly to consumer market,
which it closely links to the
condition of market
consumption both domestic
and overseas. Unfortunately, overseas
consumption has been
slowing down especially in EU market, while
floods in Thailand also
sways domestic consumption.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000 divided into 50,000 shares of Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 7,000,000
on September 18,
1995
Bht. 11,000,000
on December 2,
1999
Bht. 15,000,000
on November 1,
2000
The
latest registered capital
was increased to
Bht. 15 million divided into
150,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kaushik Dinkarai Jogi Nationality: Indian Address :
Bombay, India |
70,500 |
47.00 |
|
Ms. Wanphen Kasuwong Nationality: Thai Address : 27
Moo 8, Monthong,
Bangnampriew,
Chachoengsao |
31,500 |
21.00 |
|
Mr. Pongsak Muangmongkol Nationality: Thai Address : 165/54
Therdthai Rd., Bukkalo,
Thonburi, Bangkok |
15,000 |
10.00 |
|
Mr. Amnuay Khempraphan Nationality: Thai Address : 108
Moo 5, Bortakai,
Wangnoi,
Phranakornsriayuthaya |
15,000 |
10.00 |
|
Ms. Areewal Khempraphan Nationality: Thai Address : 108
Moo 5, Bortakai,
Wangnoi,
Phranakornsriayuthaya |
15,000 |
10.00 |
|
Mr. Jogi Rajiv Pravin
Chandra Nationality: Indian Address : Bombay,
India |
1,500 |
1.00 |
|
Mr. Taika Abdulhabi Saiyid Nationality: Indian Address : India |
1,500 |
1.00 |
Total Shareholders : 7
Share Structure
[as at April
30, 2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
76,500 |
51.00 |
|
Foreign - Indian |
3 |
73,500 |
49.00 |
|
Total |
7 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Surin Ruengpetch No.
3741
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
170,062.60 |
192,671.05 |
|
Trade Accounts Receivable |
46,792,265.30 |
42,933,058.99 |
|
Inventories |
13,682,997.00 |
13,822,268.00 |
|
Deferred Income |
19,470.14 |
19,470.14 |
|
Prepaid Expenses |
4,700.00 |
4,700.00 |
|
|
|
|
|
Total Current Assets
|
60,669,495.04 |
56,972,168.18 |
|
Equipment |
30,897.79 |
45,645.46 |
|
Deposit & Guarantee |
23,400.00 |
23,400.00 |
|
Total Assets |
60,723,792.83 |
57,041,213.64 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
45,065,987.92 |
7,369,838.68 |
|
Trade Accounts Payable |
6,706,426.88 |
40,964,963.14 |
|
Other Current Liabilities |
124,325.40 |
178,312.01 |
|
|
|
|
|
Total Current Liabilities |
51,896,740.20 |
48,513,113.83 |
|
Total Liabilities |
51,896,740.20 |
48,513,113.83 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning -
Unappropriated |
[6,172,947.37] |
[6,471,900.19] |
|
Total Shareholders' Equity |
8,827,052.63 |
8,528,099.81 |
|
Total Liabilities & Shareholders' Equity |
60,723,792.83 |
57,041,213.64 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
34,434,623.27 |
22,202,904.00 |
|
Other Income |
117,315.36 |
433,325.21 |
|
Total Sales |
34,551,938.63 |
22,636,229.21 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
31,259,914.54 |
20,398,745.34 |
|
Selling & Administrative Expenses |
2,350,280.65 |
2,190,482.93 |
|
Total Expenses |
33,610,195.19 |
22,589,228.27 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
941,743.44 |
47,000.94 |
|
Financial Cost |
[507,352.75] |
[566,815.15] |
|
Income Tax |
[135,437.87] |
[132,413.72] |
|
|
|
|
|
Net Profit / [Loss] |
298,952.82 |
[652,227.93] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.17 |
|
QUICK RATIO |
TIMES |
0.90 |
0.89 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,114.47 |
486.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.57 |
0.39 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
159.77 |
247.33 |
|
INVENTORY TURNOVER |
TIMES |
2.28 |
1.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
495.99 |
705.79 |
|
RECEIVABLES TURNOVER |
TIMES |
0.74 |
0.52 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
78.31 |
733.00 |
|
CASH CONVERSION CYCLE |
DAYS |
577.45 |
220.12 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
90.78 |
91.87 |
|
SELLING & ADMINISTRATION |
% |
6.83 |
9.87 |
|
INTEREST |
% |
1.47 |
2.55 |
|
GROSS PROFIT MARGIN |
% |
9.56 |
10.08 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.73 |
0.21 |
|
NET PROFIT MARGIN |
% |
0.87 |
(2.94) |
|
RETURN ON EQUITY |
% |
3.39 |
(7.65) |
|
RETURN ON ASSET |
% |
0.49 |
(1.14) |
|
EARNING PER SHARE |
BAHT |
1.99 |
(4.35) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.88 |
5.69 |
|
TIME INTEREST EARNED |
TIMES |
1.86 |
0.08 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
55.09 |
|
|
OPERATING PROFIT |
% |
1,903.67 |
|
|
NET PROFIT |
% |
145.84 |
|
|
FIXED ASSETS |
% |
(32.31) |
|
|
TOTAL ASSETS |
% |
6.46 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
9.56 |
Acceptable |
Industrial Average |
18.67 |
|
Net Profit Margin |
0.87 |
Impressive |
Industrial Average |
0.11 |
|
Return on Assets |
0.49 |
Impressive |
Industrial Average |
0.11 |
|
Return on Equity |
3.39 |
Impressive |
Industrial Average |
0.24 |
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 9.56%. When
compared with the industry average, the ratio of the company was lower.
This indicated that company was
originated from 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 0.87%, higher figure when 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 0.49%, 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 3.39%, 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 |
1.17 |
Deteriorated |
Industrial
Average |
3.66 |
|
Quick Ratio |
0.90 |
|
|
|
|
Cash Conversion Cycle |
577.45 |
|
|
|
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 1.17 times in 2010, same figure as in 2009, 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 0.9 times in 2010,
increase from 0.89 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 578 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial
Average |
0.78 |
|
Debt to Equity Ratio |
5.88 |
Risky |
Industrial
Average |
1.85 |
|
Times Interest Earned |
1.86 |
Impressive |
Industrial
Average |
0.63 |
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 1.86 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 0.85 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,114.47 |
Impressive |
Industrial
Average |
8.30 |
|
Total Assets Turnover |
0.57 |
Deteriorated |
Industrial
Average |
1.68 |
|
Inventory Conversion Period |
159.77 |
|
|
|
|
Inventory Turnover |
2.28 |
Impressive |
Industrial
Average |
1.85 |
|
Receivables Conversion Period |
495.99 |
|
|
|
|
Receivables Turnover |
0.74 |
Deteriorated |
Industrial
Average |
5.08 |
|
Payables Conversion Period |
78.31 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.08 |
|
UK Pound |
1 |
Rs.78.65 |
|
Euro |
1 |
Rs.67.79 |
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.