MIRA
INFORM REPORT
|
Report Date : |
14.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
MILLENNIUM DIAMOND
CO., LTD. |
|
|
|
|
Registered Office : |
Room 401-A,
4th Floor, Rasamee Thavorn,
Building, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Year of Establishment : |
1999 |
|
|
|
|
Com. Reg. No.: |
0105542022021 [Former :
344/2542] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor And Exporter of Diamonds, Gemstones
and Jewelry Products |
|
|
|
|
No. of Employees : |
5 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
US$ 500,000. |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 30, 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
MILLENNIUM DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
401-A, 4th FLOOR,
RASAMEE THAVORN
BUILDING, 273
SILOM ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-3967-9
FAX :
[66] 2238-3966
MOBILE
PHONE : [66]
081 810-4161 [MR. RITESH JITENDRA
DAVE]
E-MAIL
ADDRESS : millenniumdiamond@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542022021 [Former : 344/2542]
CAPITAL REGISTERED : BHT.
15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RITESH JITENDRA DAVE,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS
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 March
26, 1999 as
a private limited
company under the name style
MILLENNIUM DAIMOND CO., LTD.
by Thai and
Indian groups, with
the business objective
to trade of
diamonds, gemstones and jewelry
products to both
local and overseas
markets. It currently
employs 5 staff.
The subject’s registered address
was initially located at
30-38 Mahesak Rd., Soi 3, Silom, Bangrak, Bangkok 10500.
On November 24,
2010, its registered address
was relocated to
Room 401-A, 4th Floor,
Rasamee
Thavorn
Building, 273 Silom Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ritesh Jitendra Dave |
|
Indian |
39 |
|
Mr. Ashish Jitendra Dave |
|
Indian |
31 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ritesh Jitendra Dave
is the Managing
Director.
He is Indian
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject’s activities
are trader and
exporter of diamonds,
specialized in tapers,
baguettes, round brilliant
and princess cut at all shapes,
sizes and colors,
as well as
gemstones and jewelry
products.
IMPORT
Its products are
imported from supplier
in India, Hong
Kong and Africa
country, and the
rest is purchased
locally.
MAJOR SUPPLIER
Sheetal
Manufacturing Co. Pvt. Ltd. : India
SALES
The products are sold by
wholesale to customers
both in domestic and
overseas such as
Hong Kong, Japan,
India and the
countries in European
region.
MAJOR CUSTOMER
Jewelry Princess Co.,
Ltd. : Thailand
Thai Jewelry Manufacturing
Co., Ltd. : Thailand
Choon
Jewelry Co., Ltd. : 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
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
CREDIT
Sales are cash
or on the
credits term of
30-60 days.
Local bills are
paid on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
[Suriyawongse
Branch: 297 Surawong Rd., Bangrak,
Bangkok 10500]
EMPLOYMENT
The subject employs
5 staff.
LOCATION DETAILS
The premise is rented for administrative office at the heading
address. Premise is located
in commercial area.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 500,000.
COMMENT
The subject’s operating performance in
2010 was sluggish
from slow market consumption. However, current economic
improvement has spurred demand of diamond,
precious stone and
jewelry products especially in overseas
markets. For the first
quarter of 2012, the
subject reports an
increase number of
orders from existing and
new customers of
both local and abroad.
Further investigation has
been made with
the Secretary of
Mr. Ritesh Jitendra Dave,
she informed us
that most of
the products are
imported from India.
The subject’s one
of various suppliers
is Sheetal Manufacturing
Co. Pvt. Ltd., from India.
However, the other
suppliers cannot be
revealed because Mr. Ritesh Jitendra Dave did
not allow to.
At the moment,
the subject is
dealing with new
suppliers from Hong
Kong and India.
On the other hand, the
subject has customers
from both local
and overseas. The
subject’s local customers
are Jewelry Princess
Co., Ltd., Thai Jewelry
Manufacturing Co., Ltd.
and Choon Jewelry
Co., Ltd. and
etc. The subject
did not reveal
any other overseas
customers. At the
moment, the subject
is dealing with
the new customers
from Hong Kong.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000
divided into 40,000 shares
of Bht. 100
each.
The capital was
increased later as
follows:
Bht. 6,000,000
on February 26,
2001
Bht. 15,000,000
on February 21,
2005
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
December 13, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
Ms. Jaranrat
Chachai
Nationality: Thai Address : 23
Moo 4, T. Banphai, A. Raseesalai, Seesaket |
48,000 |
32.00 |
|
Mr. Ritesh Jitendra Dave Nationality: Indian Address : 278 Silom Rd., Suriyawongs, Bangrak, Bangkok |
42,000 |
28.00 |
|
Mr. Ashish
Jitendra
Dave Nationality: Indian Address : 278 Silom Rd., Suriyawongs, Bangrak, Bangkok |
31,500 |
21.00 |
|
Ms. Lamyai
Kongnoon Nationality: Thai Address : 27
Moo 4, T. Thongnean, A. Khanom, Nakornsrithammarat |
28,500 |
19.00 |
Total Shareholders : 4
Share Structure
[as at
December 13, 2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
76,500 |
51.00 |
|
Foreign - Indian |
2 |
73,500 |
49.00 |
|
Total |
4 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT
NO. :
Ms. Pinpinath
Parichartsombat No. 5841
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
379,330.25 |
426,661.79 |
|
Trade Accounts & Notes
Receivable |
54,526,914.14 |
64,004,985.71 |
|
Inventories |
30,345,115.47 |
16,738,440.14 |
|
Other Current Assets |
- |
6,879.04 |
|
|
|
|
|
Total Current Assets
|
85,251,359.86 |
81,176,966.68 |
|
Fixed Assets |
649,861.70 |
808,466.51 |
|
Other Non-current Assets |
111,024.00 |
- |
|
Total Assets |
86,012,245.56 |
81,985,433.19 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts & Notes Payable |
34,237,271.49 |
42,134,648.77 |
|
Current Portion of Long-term Loan from Financial Institution |
938,100.00 |
- |
|
Current Portion of
Hire-purchase Payable |
7,485.50 |
204,375.00 |
|
Other Current Liabilities |
457,575.08 |
258,710.18 |
|
|
|
|
|
Total Current Liabilities |
35,640,432.07 |
42,597,733.95 |
|
Hire-purchase Payable -
Net of
Current Portion |
- |
34,062.50 |
|
Long-term Loan from Financial Institution, Net of
Current Portion |
5,833,243.68 |
- |
|
Long-term Loan from
Related Person |
39,100,000.00 |
32,100,000.00 |
|
Total Liabilities |
80,573,675.75 |
74,731,796.45 |
|
|
|
|
|
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
|
[9,561,430.19] |
[7,746,363.26] |
|
Total Shareholders' Equity |
5,438,569.81 |
7,253,636.74 |
|
Total Liabilities & Shareholders' Equity |
86,012,245.56 |
81,985,433.19 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
70,931,798.04 |
81,557,382.88 |
|
Gain on Exchange Rate |
943,637.53 |
838,135.04 |
|
Other Income |
- |
370.52 |
|
Total Revenues |
71,875,435.57 |
82,395,888.44 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
67,750,294.21 |
79,565,840.94 |
|
Selling Expenses |
183,446.48 |
248,173.24 |
|
Administrative Expenses |
5,011,970.45 |
6,922,877.38 |
|
Total Expenses |
72,945,711.14 |
86,736,891.56 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
[1,070,275.57] |
[4,341,003.12] |
|
Financial Cost |
[256,589.15] |
[26,577.00] |
|
Profit / [Loss] before Income Tax |
[1,326,864.72] |
[4,367,580.12] |
|
Income Tax |
[488,202.21] |
[360,610.66] |
|
|
|
|
|
Net Profit / [Loss] |
[1,815,066.93] |
[4,728,190.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.39 |
1.91 |
|
QUICK RATIO |
TIMES |
1.54 |
1.51 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
109.15 |
100.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.82 |
0.99 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
163.48 |
76.79 |
|
INVENTORY TURNOVER |
TIMES |
2.23 |
4.75 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
280.58 |
286.45 |
|
RECEIVABLES TURNOVER |
TIMES |
1.30 |
1.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
184.45 |
193.29 |
|
CASH CONVERSION CYCLE |
DAYS |
259.62 |
169.94 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
95.51 |
97.56 |
|
SELLING & ADMINISTRATION |
% |
7.32 |
8.79 |
|
INTEREST |
% |
0.36 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
5.82 |
3.47 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.51) |
(5.32) |
|
NET PROFIT MARGIN |
% |
(2.56) |
(5.80) |
|
RETURN ON EQUITY |
% |
(33.37) |
(65.18) |
|
RETURN ON ASSET |
% |
(2.11) |
(5.77) |
|
EARNING PER SHARE |
BAHT |
(12.10) |
(31.52) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.94 |
0.91 |
|
DEBT TO EQUITY RATIO |
TIMES |
14.82 |
10.30 |
|
TIME INTEREST EARNED |
TIMES |
(4.17) |
(163.34) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(13.03) |
|
|
OPERATING PROFIT |
% |
(75.34) |
|
|
NET PROFIT |
% |
61.61 |
|
|
FIXED ASSETS |
% |
(19.62) |
|
|
TOTAL ASSETS |
% |
4.91 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
5.82 |
Acceptable |
Industrial
Average |
9.15 |
|
Net Profit Margin |
(2.56) |
Deteriorated |
Industrial
Average |
0.09 |
|
Return on Assets |
(2.11) |
Deteriorated |
Industrial
Average |
0.15 |
|
Return on Equity |
(33.37) |
Deteriorated |
Industrial
Average |
0.40 |
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 5.82%. 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 -2.56%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is -2.11%.
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 -33.37%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
2.39 |
Impressive |
Industrial
Average |
1.80 |
|
Quick Ratio |
1.54 |
|
|
|
|
Cash Conversion Cycle |
259.62 |
|
|
|
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 2.39 times in 2010, increase from 1.91 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 1.54 times in 2010,
increase from 1.51 times, although excluding inventory so the company still
have good short-term financial strength.
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 260 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.94 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
14.82 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
(4.17) |
Risky |
Industrial
Average |
0.87 |
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 -4.18 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 0.94 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
109.15 |
Impressive |
Industrial
Average |
10.60 |
|
Total Assets Turnover |
0.82 |
Acceptable |
Industrial
Average |
1.57 |
|
Inventory Conversion Period |
163.48 |
|
|
|
|
Inventory Turnover |
2.23 |
Satisfactory |
Industrial
Average |
2.35 |
|
Receivables Conversion Period |
280.58 |
|
|
|
|
Receivables Turnover |
1.30 |
Deteriorated |
Industrial
Average |
3.50 |
|
Payables Conversion Period |
184.45 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
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.51.42 |
|
|
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.67.67 |
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 |
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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.