MIRA INFORM REPORT
|
Report Date : |
05.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
BROWN
DIAM CO., LTD. |
|
|
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Registered Office : |
Room D, 9th Floor, Gem Tower, 1249/87 Charoenkrung Road, Suriyawongse, 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 : |
25.01.2010 |
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Com. Reg. No.: |
0105553011239 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importer
and distributor of diamonds |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
Unknown |
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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
BROWN DIAM
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
D, 9th FLOOR,
GEM TOWER,
1249/87 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-4881,
2266-6212
FAX :
[66] 2266-6212
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553011239
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ASHWIN KUMAR
RAMJIBHAI KAKADIA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS
IMPORTER AND
DISTRIBUTOR
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 January 25, 2010 as
a private limited
company under the registered
name BROWN DIAM
CO., LTD. by
Thai and Indian
groups. Its business
objective is to import
and distribute various kinds
of diamonds to
domestic market. It
currently employs 3
staff.
The
subject’s registered address
is Room D, 9th Floor,
Gem Tower, 1249/87
Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ashwin Kumar Ramjibhai
Kakadia |
|
Indian |
32 |
|
Mr. Hardik Vallabhbhai Kakadiya |
|
Indian |
24 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ashwin Kumar Ramjibhai Kakadia is the Managing Director.
He is Indian
nationality with the
age of 32
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of diamonds for
jewelry industry.
PURCHASE
The
products are imported
from India and
Belgium.
SALES
100% of the
products is sold
locally by wholesale
to manufacturers and
traders.
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.
Imports are by
D/A or T/T
on negotiated terms.
BANKING
The
banker’s name was not
disclosed.
EMPLOYMENT
The
subject employs 3
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 50,000.
COMMENT
The subject
was formed in
2010 as an
importer and distributor
of diamonds. Its
first year activity was
moderate with promising
market. However, the
operating result for
the
year 2011 may fluctuate
due to market
has started slowing
down in the
second half of
the year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into 20,000 shares of
Bht. 100 each with
fully paid.
On
April 1, 2010,
the capital was
increased to Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April 30,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ashwin Kumar Ramjibhai
Kakadia Nationality: Indian Address : 1249/87
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
11,600 |
29.00 |
|
Mr. Hardik Vallabhbhai Kakadiya Nationality: Indian Address : 1249/87
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
8,000 |
20.00 |
|
Mrs. Wanphen Boonmalert Nationality: Thai Address : 110
Krungthep-Kreetha Rd., Huamark,
Bangkapi, Bangkok |
7,000 |
17.50 |
|
Mrs. Kannikar Doksaiyood Nationality: Thai Address : 43
Moo 2, Samkok,
Pathumthani |
7,000 |
17.50 |
|
Ms. Nitaya Tassorn Nationality: Thai Address : 387
Dindaeng Rd., Dindaeng,
Bangkok |
6,400 |
16.00 |
Total Shareholders : 5
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Veeraphan Prayoonwong No.
1073
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 was :
ASSETS
|
Current Assets |
2010 |
|
|
|
|
Cash and Cash Equivalent |
120,044.37 |
|
Trade Accounts Receivable |
6,324,079.56 |
|
Inventories |
3,424,779.15 |
|
Other Current Assets |
12,000.00 |
|
|
|
|
Total Current Assets
|
9,880,903.08 |
|
Long-term Loan to Related
Person |
2,400,000.00 |
|
Fixed Assets |
31,021.90 |
|
Total Assets |
12,311,924.98 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
|
|
|
|
Trade Accounts Payable |
8,752,483.71 |
|
Other Current Liabilities |
33,749.94 |
|
|
|
|
Total Current Liabilities |
8,786,233.65 |
|
Total Liabilities |
8,786,233.65 |
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
|
|
|
|
Capital Paid |
4,000,000.00 |
|
Retained Earning-
Unappropriated |
[474,308.67] |
|
Total Shareholders' Equity |
3,525,691.33 |
|
Total Liabilities & Shareholders' Equity |
12,311,924.98 |
PROFIT & LOSS ACCOUNT
|
Sale |
Jan. 25,
2010 – Dec. 31,
2010 |
|
|
|
|
Sales Income |
10,525,176.68 |
|
Other Income |
157,738.26 |
|
Total Sales |
10,682,914.94 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
9,762,922.23 |
|
Administrative Expenses |
1,391,621.38 |
|
Total Expenses |
11,154,543.61 |
|
|
|
|
Profit / [Loss] before Financial Cost |
[471,628.67] |
|
Financial Cost |
[2,680.00] |
|
|
|
|
Net Profit / [Loss] |
[474,308.67] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
|
QUICK RATIO |
TIMES |
0.73 |
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
339.28 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.85 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
128.04 |
|
INVENTORY TURNOVER |
TIMES |
2.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
219.31 |
|
RECEIVABLES TURNOVER |
TIMES |
1.66 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
327.22 |
|
CASH CONVERSION CYCLE |
DAYS |
20.13 |
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
COST OF GOODS SOLD |
% |
92.76 |
|
SELLING & ADMINISTRATION |
% |
13.22 |
|
INTEREST |
% |
0.03 |
|
GROSS PROFIT MARGIN |
% |
8.74 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(4.48) |
|
NET PROFIT MARGIN |
% |
(4.51) |
|
RETURN ON EQUITY |
% |
(13.45) |
|
RETURN ON ASSET |
% |
(3.85) |
|
EARNING PER SHARE |
BAHT |
(11.86) |
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
DEBT RATIO |
TIMES |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.49 |
|
TIME INTEREST EARNED |
TIMES |
(175.98) |
PROFITABILITY RATIO
|
Gross Profit Margin |
8.74 |
Deteriorated |
Industrial Average |
26.57 |
|
Net Profit Margin |
(4.51) |
Deteriorated |
Industrial Average |
(37.90) |
|
Return on Assets |
(3.85) |
Deteriorated |
Industrial Average |
(6.13) |
|
Return on Equity |
(13.45) |
Deteriorated |
Industrial Average |
(6.26) |
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 8.74%. When
compared with the industry average, the ratio of the company was lower,
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 -4.51% 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
-3.85%, 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. When compared with the
industry average, it was lower, the company's figure is -13.45%.
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 |
1.12 |
Deteriorated |
Industrial Average |
60.43 |
|
Quick Ratio |
0.73 |
|
|
|
|
Cash Conversion Cycle |
20.13 |
|
|
|
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 1.12 times in 2010, increase from 0 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 0.73 times in 2010,
increase from 0 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 21 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.71 |
Impressive |
Industrial Average |
0.86 |
|
Debt to Equity Ratio |
2.49 |
Risky |
Industrial Average |
1.54 |
|
Times Interest Earned |
(175.98) |
Risky |
Industrial Average |
105.90 |
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 -175.99 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.71 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 |
339.28 |
Deteriorated |
Industrial Average |
75,551.94 |
|
Total Assets Turnover |
0.85 |
Acceptable |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
128.04 |
|
|
|
|
Inventory Turnover |
2.85 |
Deteriorated |
Industrial Average |
5.98 |
|
Receivables Conversion Period |
219.31 |
|
|
|
|
Receivables Turnover |
1.66 |
Deteriorated |
Industrial Average |
12.83 |
|
Payables Conversion Period |
327.22 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
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.49.23 |
|
UK Pound |
1 |
Rs.76.07 |
|
Euro |
1 |
Rs.65.06 |
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.