MIRA
INFORM REPORT
|
Report Date : |
27.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
SUPARTH DIAMOND CO., LTD. |
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Registered Office : |
Room 202, 2nd Floor, Kbs Building, 30, 32, 34, 36, 38 Mahaesak 3 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 : |
23.08.2002 |
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Com. Reg. No.: |
0105545087621 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, distributor and exporter of diamond 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 |
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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 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
SUPARTH
DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
202, 2nd FLOOR,
KBS BUILDING,
30,
32, 34, 36, 38 MAHAESAK 3
ROAD,
SURIYAWONGSE,
BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2234-3612,
081 720-0521
FAX :
[66] 2234-3612
E-MAIL
ADDRESS : chiragshah@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2002
REGISTRATION
NO. : 0105545087621
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. CHIRAG PRAKASHCHANDRA SHAH,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMOND AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on August 23, 2002
as a private
limited company under
the name style
SUPARTH DIAMOND CO.,
LTD., by Thai
and Indian groups, in order
to engage in
jewelry trading business. It
currently employs 4
staff.
The subject’s registered address was
initially located at 160/490-491 Silom
Rd., Surawongse, Bangrak, Bangkok
10500.
On February 18, 2009, it was relocated to
Room 202, 2nd Flr., KBS Building, 30,32,34,36,38
Mahaesak 3 Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chirag Prakashchandra Shah |
|
Indian |
31 |
|
Mr. Rahul Ramesh Kumar
Shah |
|
Indian |
26 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chirag Prakashchandra Shah
is the Managing
Director.
He is Indian
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject is
engaged in trading
business, comprising import
and distribute of
diamonds & precious
stones, as well
as export of
local jewelry products.
PURCHASE
Jewelry products are
purchased from local
suppliers.
IMPORT
Diamonds and precious stones
are imported from
India, Hong Kong, Pakistan,
Japan and Belgium.
SALES [LOCAL]
Diamonds and gemstones
are sold locally
by wholesale to
traders and manufacturers.
EXPORT
Jewelry products are
exported to Hong Kong,
Japan, Canada, U.S.A. and
the countries in
Europe and Middle
East.
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
ABASE 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 4
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
Subject is able to maintain a moderate
business in the past year,
while current business outlook
is underpinned by
strong sales from
promising market.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000 divided
into 30,000 shares of Bht.
100 each.
On
January 25, 2006,
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. Chirag Prakashchandra Shah Nationality: Indian Address : 160/316 Silom
Rd., Suriyawongse, Bangrak, Bangkok |
19,600 |
49.00 |
|
Ms. Kanokwan Kongpaisalthavorn Nationality: Thai Address : 61
Lamphu Rd., Wadsamphrayakrai, Phranakorn, Bangkok |
4,000 |
10.00 |
|
Ms. Rapeephan Kanakornwattana Nationality: Thai Address : 120/2
Charoenkrung Rd., Wadphrayakrai,
Bangkorlaem, Bangkok |
4,000 |
10.00 |
|
Ms. Boonyanuch Krasiri Nationality: Thai Address : 913
Charoenkrung, Bangklo, Bangkorlaem, Bangkok |
4,000 |
10.00 |
|
Ms. Ajchara Sereewat Nationality: Thai Address : 150
Moo 4, Rajburana
Rd., Bangmod,
Rajburana, Bangkok |
4,000 |
10.00 |
|
Ms. Prapisaphan Kruewal Nationality: Thai Address : 549/179
Charansanitwong Rd., Bangkhunsri,
Bangkoknoi, Bangkok |
4,000 |
10.00 |
|
Mr. Supakorn Nam-an Nationality: Thai Address : 28
Moo 7, Buengsamphan, Petchabun |
400 |
1.00 |
Total Shareholders : 7
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 and Cash Equivalents
|
859,038.43 |
1,227,820.07 |
|
Trade Accounts Receivable |
39,016,788.10 |
20,848,701.79 |
|
Inventories |
50,266,737.10 |
17,263,751.12 |
|
Total Current Assets
|
90,142,563.63 |
39,340,272.98 |
|
Deposit |
12,000.00 |
12,000.00 |
|
Total Assets |
90,154,563.63 |
39,352,272.98 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Account Payable |
81,186,377.31 |
32,285,573.19 |
|
Other Current Liabilities |
586,603.84 |
103,879.41 |
|
Total Current Liabilities |
81,772,981.15 |
32,389,452.60 |
|
Total Liabilities |
81,772,981.15 |
32,389,452.60 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated |
4,381,582.48 |
2,962,820.38 |
|
Total Shareholders' Equity |
8,381,582.48 |
6,962,820.38 |
|
Total Liabilities & Shareholders' Equity |
90,154,563.63 |
39,352,272.98 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
94,603,246.79 |
74,252,543.22 |
|
Other Income |
997,893.34 |
- |
|
Total Revenues |
95,601,140.13 |
74,252,543.22 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
91,868,429.49 |
71,039,847.22 |
|
Selling &
Administrative Expenses |
1,995,556.88 |
2,104,116.97 |
|
Total Expenses |
93,863,986.37 |
73,143,964.19 |
|
Profit / [Loss] before Interest Expenses & Income Tax |
1,737,153.76 |
1,108,579.59 |
|
Interest Expenses |
- |
[22,773.61] |
|
Profit Before Income Tax |
1,737,153.76 |
1,085,805.98 |
|
Income Tax |
[318,391.66] |
[151,250.22] |
|
Net Profit / [Loss] |
1,418,762.10 |
934,555.76 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.10 |
1.21 |
|
QUICK RATIO |
TIMES |
0.49 |
0.68 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.05 |
1.89 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
199.71 |
88.70 |
|
INVENTORY TURNOVER |
TIMES |
1.83 |
4.11 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
150.54 |
102.49 |
|
RECEIVABLES TURNOVER |
TIMES |
2.42 |
3.56 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
322.56 |
165.88 |
|
CASH CONVERSION CYCLE |
DAYS |
27.69 |
25.30 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
97.11 |
95.67 |
|
SELLING & ADMINISTRATION |
% |
2.11 |
2.83 |
|
INTEREST |
% |
- |
0.03 |
|
GROSS PROFIT MARGIN |
% |
3.95 |
4.33 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.84 |
1.49 |
|
NET PROFIT MARGIN |
% |
1.50 |
1.26 |
|
RETURN ON EQUITY |
% |
16.93 |
13.42 |
|
RETURN ON ASSET |
% |
1.57 |
2.37 |
|
EARNING PER SHARE |
BAHT |
35.47 |
23.36 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
9.76 |
4.65 |
|
TIME INTEREST EARNED |
TIMES |
- |
48.68 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
27.41 |
|
|
OPERATING PROFIT |
% |
56.70 |
|
|
NET PROFIT |
% |
51.81 |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
129.10 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.95 |
Deteriorated |
Industrial
Average |
26.57 |
|
Net Profit Margin |
1.50 |
Impressive |
Industrial
Average |
(37.90) |
|
Return on Assets |
1.57 |
Impressive |
Industrial
Average |
(6.13) |
|
Return on Equity |
16.93 |
Impressive |
Industrial
Average |
(6.26) |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues 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 3.95%. 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 1.5%, 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
1.57%, 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 16.93%, 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 |
1.10 |
Deteriorated |
Industrial
Average |
60.43 |
|
Quick Ratio |
0.49 |
|
|
|
|
Cash Conversion Cycle |
27.69 |
|
|
|
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 1.1 times in 2010, decrease from 1.21 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 0.49 times in 2010, decrease
from 0.68 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 28 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial
Average |
0.86 |
|
Debt to Equity Ratio |
9.76 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.91 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 |
- |
|
Industrial
Average |
75,551.94 |
|
Total Assets Turnover |
1.05 |
Acceptable |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
199.71 |
|
|
|
|
Inventory Turnover |
1.83 |
Deteriorated |
Industrial
Average |
5.98 |
|
Receivables Conversion Period |
150.54 |
|
|
|
|
Receivables Turnover |
2.42 |
Deteriorated |
Industrial
Average |
12.83 |
|
Payables Conversion Period |
322.56 |
|
|
|
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.49.62 |
|
|
1 |
Rs.76.68 |
|
Euro |
1 |
Rs.66.47 |
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.