MIRA INFORM REPORT
|
Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
MANEE
DIAM CO., LTD. |
|
|
|
|
Registered Office : |
22nd Floor, Bangkok Gems & Jewellery Building, 322/54 Surawong Road, Siphya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
24.03.2003 |
|
|
|
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Com. Reg. No.: |
0105546037112 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
exporter and distributor of gems 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 |
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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 – 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
MANEE
DIAM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR, BANGKOK GEMS &
JEWELLERY BUILDING,
322/54 SURAWONG
ROAD, SIPHYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2631-8990-2
FAX : [66]
2631-8996
E-MAIL
ADDRESS : maneediam@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546037112
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.
NILESH SAMBHUBHAI ITALIYA,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 20
LINES
OF BUSINESS : GEMS
AND JEWELRY PRODUCTS
IMPORTER, EXPORTER
AND DISTRIBUTOR
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 24,
2003 as a
private limited company
under the name
style MANEE DIAM
CO., LTD. by
Indian and Thai
groups, in order
to import and
export of jewelry
products. It currently
employs 20 staff.
The subject’s registered address
was initially located
at 297 Surawong
Rd., Suriyawongse, Bangrak, Bangkok
10500.
In 2005, it was relocated to 22nd Floor, Bangkok Gems &
Jewellery Building, 322/54 Surawong Rd.,
Siphya, Bangrak, Bangkok 10500, and this
is the company’s current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Sambhubhai
Italiya |
|
Indian |
36 |
|
Mr. Prakash Sambhubhai
Italia |
|
Indian |
33 |
|
Mrs. Shada Nilesh
Italiya |
|
Indian |
35 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Sambhubhai
Italiya is the
Managing Director.
He is Indian
nationality with the
age of 36
years old
Mr. Prakash Sambhubhai
Italia is the
General Manager.
He is Indian
nationality with the
age of 33
years old.
Mr. Shashi Bhushan
is the Marketing
Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject is engaged in
importing, distributing and exporting
various kinds of
diamond, gemstone and jewelry products.
PURCHASE
The products are
purchased from both
domestic and overseas
suppliers mainly in
India Hong Kong,
Africa, Belgium and
Japan.
SALES
The products are sold
locally, as well as exporting by wholesale to traders and manufacturers in
India, United States
of America, Japan,
Korea, Taiwan, Singapore,
Turkey, Vietnam, Hong
Kong, Malaysia, Philippines,
Russia, Middle East
and EU countries.
MAJOR CUSTOMER
Nancy Diam Ltd. : Hong
Kong
RELATED AND AFFILIATED COMPANY
Zaver Diam Co.,
Ltd.
Business Type :
Importer and distributor
of diamonds.
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.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 20 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$
500,000.
COMMENT
The subject had been enjoying an outstanding performance in the previous
years. The jewelry
industry has been revised upward
in view of an improving economic outlook.
Subject reported good
business in 2010,
as well as
current business performance
is promising.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each.
The capital was
increased later as
follows:
Bht. 4,000,000
on April 29,
2003
Bht. 10,000,000
on January 17,
2005
Bht. 15,000,000
on May 23,
2008
The latest registered capital was
increased to Bht. 15,000,000 divided
into 150,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE :
[as at April
19, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nilesh Sambhubhai
Italiya Nationality: Indian Address : 322/54
Surawongse Rd., Siphya,
Bangrak, Bangkok 10500 |
25,000 |
16.66 |
|
Mr. Prakash Sambhubhai Italia Nationality: Indian Address : 322/54
Surawongse Rd., Siphya,
Bangrak, Bangkok 10500 |
24,250 |
16.17 |
|
Mrs. Shada Nilesh
Italiya Nationality: Indian Address : 322/54
Surawongse Rd., Siphya,
Bangrak, Bangkok 10500 |
24,250 |
16.17 |
|
Mr. Suparp Chansri Nationality: Thai Address : 41
Moo 14, Nongjaeng,
Buengsamphan,
Petchaboon Province |
19,125 |
12.75 |
|
Ms. Jamriang Narkjai Nationality: Thai Address : 443
Moo 8, Laemrangking, Buengnarang,
Pichitr Province |
19,125 |
12.75 |
|
Mr. Charnnarong Poolsuk Nationality: Thai Address : 9
Moo 6, Saensuk,
Varinchamrab,
Ubonratchathani Province |
19,125 |
12.75 |
|
Ms. Nujaree Chuenjai Nationality: Thai Address : 6
Moo 5, Suksamran,
Takfah, Nakornsawan Province
|
19,125 |
12.75 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wuthichai Kraianant
No. 7573
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand & at Bank |
1,098,456.59 |
972,755.97 |
|
Trade Accts. & Notes Receivable
|
502,330,535.90 |
267,698,846.22 |
|
Inventories |
558,221,779.07 |
546,620,056.94 |
|
Other Current Assets
|
150,844.07 |
7,501,116.22 |
|
|
|
|
|
Total Current Assets
|
1,061,801,615.63 |
822,792,775.35 |
|
Fixed Assets |
9,158,504.98 |
9,584,010.15 |
|
Fixed Deposit Financial-Loan Guarantee |
15,235,516.91 |
7,164,587.50 |
|
Total Assets |
1,086,195,637.52 |
839,541,373.00 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short Term
Loan from Financial
Institution |
60,029,288.68 |
55,058,521.17 |
|
Trade Accts. & Notes
Payable |
728,146,930.27 |
493,434,730.78 |
|
Other Current Liabilities |
2,602,491.46 |
1,739,702.51 |
|
Total Current Liabilities |
790,778,710.41 |
550,232,954.46 |
|
|
|
|
|
Loan from Related
Person |
247,000,000.00 |
247,000,000.00 |
|
Total Liabilities |
1,037,778,710.41 |
797,232,954.46 |
|
|
|
|
|
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 |
33,416,927.11 |
27,308,418.54 |
|
Total Shareholders' Equity |
48,416,927.11 |
42,308,418.54 |
|
Total Liabilities & Shareholders' Equity |
1,086,195,637.52 |
839,541,373.00 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
1,255,348,632.05 |
1,114,306,538.47 |
|
Other Income |
16,618,881.31 |
13,220,377.42 |
|
Total Sales |
1,271,967,513.36 |
1,127,526,915.89 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,246,599,503.60 |
1,103,216,556.95 |
|
Selling Expenses |
2,566,651.33 |
1,342,192.04 |
|
Administrative Expenses |
10,593,423.37 |
10,678,529.91 |
|
Total Expenses |
1,259,759,578.30 |
1,115,237,278.90 |
|
|
|
|
|
Profit Before Interest Expenses
& Income Tax |
12,207,935.06 |
12,289,636.99 |
|
Interest Expenses |
[3,196,957.06] |
[2,787,993.15] |
|
Profit Before Income Tax |
9,010,978.00 |
9,501,643.84 |
|
Income Tax |
[2,902,469.43] |
[2,851,888.11] |
|
Net Profit / [Loss] |
6,108,508.57 |
6,649,755.73 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.34 |
1.50 |
|
QUICK RATIO |
TIMES |
0.64 |
0.49 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
137.07 |
116.27 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.16 |
1.33 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
163.45 |
180.85 |
|
INVENTORY TURNOVER |
TIMES |
2.23 |
2.02 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
146.06 |
87.69 |
|
RECEIVABLES TURNOVER |
TIMES |
2.50 |
4.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
213.20 |
163.25 |
|
CASH CONVERSION CYCLE |
DAYS |
96.30 |
105.28 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
99.30 |
99.00 |
|
SELLING & ADMINISTRATION |
% |
1.05 |
1.08 |
|
INTEREST |
% |
0.25 |
0.25 |
|
GROSS PROFIT MARGIN |
% |
2.02 |
2.18 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.97 |
1.10 |
|
NET PROFIT MARGIN |
% |
0.49 |
0.60 |
|
RETURN ON EQUITY |
% |
12.62 |
15.72 |
|
RETURN ON ASSET |
% |
0.56 |
0.79 |
|
EARNING PER SHARE |
BAHT |
40.72 |
44.33 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.96 |
0.95 |
|
DEBT TO EQUITY RATIO |
TIMES |
21.43 |
18.84 |
|
TIME INTEREST EARNED |
TIMES |
3.82 |
4.41 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
12.66 |
|
|
OPERATING PROFIT |
% |
(0.66) |
|
|
NET PROFIT |
% |
(8.14) |
|
|
FIXED ASSETS |
% |
(4.44) |
|
|
TOTAL ASSETS |
% |
29.38 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
2.02 |
Deteriorated |
Industrial Average |
10.38 |
|
Net Profit Margin |
0.49 |
Impressive |
Industrial Average |
(0.89) |
|
Return on Assets |
0.56 |
Impressive |
Industrial Average |
(1.19) |
|
Return on Equity |
12.62 |
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 2.02%. 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 0.49%
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 0.56%, 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 12.62%, 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 |
1.34 |
Acceptable |
Industrial Average |
1.81 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
96.30 |
|
|
|
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 1.34 times in 2010, decrease from 1.5 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 0.64 times in 2010,
increase from 0.49 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 97 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.96 |
Risky |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
21.43 |
Risky |
Industrial Average |
1.53 |
|
Times Interest Earned |
3.82 |
Impressive |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 3.82 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 0.96 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 |
137.07 |
Impressive |
Industrial Average |
8.05 |
|
Total Assets Turnover |
1.16 |
Satisfactory |
Industrial Average |
1.30 |
|
Inventory Conversion Period |
163.45 |
|
|
|
|
Inventory Turnover |
2.23 |
Impressive |
Industrial Average |
2.00 |
|
Receivables Conversion Period |
146.06 |
|
|
|
|
Receivables Turnover |
2.50 |
Satisfactory |
Industrial Average |
3.00 |
|
Payables Conversion Period |
213.20 |
|
|
|
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
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.48.93 |
|
UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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.