MIRA
INFORM REPORT
|
Report Date : |
06.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
DEEP
IMPEX CO., LTD. |
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|
|
Registered Office : |
Suite No. 110, 10th Floor,
Executive House, 410/110 Surawongse
Road, Suriyawongse,
Bangrak, Bangkok 10500 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.02.1999 |
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Com. Reg. No.: |
0105542012891 [Former : 199/2542] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer,
distributor and exporter of Fine cut
diamonds |
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No. of Employees : |
06 employees |
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 : |
Small Company |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
nsignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries,
|
Source : CIA |
Company name
DEEP IMPEX CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : SUITE
NO. 110, 10th
FLOOR, EXECUTIVE HOUSE,
BANGRAK,
TELEPHONE : [66] 2631-4663,
2267-4294, 081 441-1731
FAX :
[66] 2631-6639
E-MAIL
ADDRESS : deepimpex@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542012891 [Former : 199/2542]
TAX
ID NO. : 3011991862
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SANDEIP JAIN,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : FINE
CUT DIAMONDS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on February 19,
1999 as a
private limited company
under the name
style DEEP IMPEX CO.,
LTD., by Thai
and Indian groups,
to be engaged
in diamond trading
business. It currently
employs 6 staff.
The
subject’s registered address is Suite No. 110, 10th
Flr., Executive House, 410/110 Surawongse Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sandeip Jain |
|
Indian |
44 |
|
Mr. Ashish Jain |
|
Indian |
29 |
|
Mr. Ajmera Aashish |
|
Indian |
29 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sandeip Jain is
the Managing Director.
He is Indian
nationality with the
age of 44
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and exporting
various kinds of fine
cut diamonds, specialized
in rose cut, old cut [European cut], fancy shapes, fancy color diamonds, briolette,
and brilliant diamonds.
IMPORT
Most
of the products
are imported from
India and South
Africa.
SALES
Its import products
are sold locally
by wholesale to
traders, manufacturers and
end-users.
EXPORT
The products are
also exported to Hong Kong,
United States of
America, Japan, Taiwan,
Middle East and
European countries.
MAJOR CUSTOMER
Deep Impex [HK]
Co., Ltd. : 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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The banker’s name
was not disclosed.
EMPLOYMENT
The
subject employs 6
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The
subject was formed
in 1999 as
an importer, distributor
and exporter of
fine cut diamonds.
Jewelry industry improvement
has resulted to strong
demand of diamonds. Consumption of the jewelry products has dramatically increased
in line with
rising consumers’ spending.
The subject reported an
increase in number
of orders in the third
quarter of 2012
from both local
and overseas customers.
Subject’ s business outlook
is promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht.
100 each.
The
capital was increased
later as followings:
Bht. 4,000,000
on December 19,
2001
Bht. 20,000,000
on August 19,
2003
On April 7,
2006, the capital
was decreased to
Bht. 8,000,000 divided into
80,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE : [as at
June 28, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sandeip Jain Nationality: Indian Address : 410/110
Surawongse Rd., Suriyawongse,
Bangrak, Bangkok |
19,600 |
24.50 |
|
Mrs. Araya Mohammad Nationality: Thai Address : 128
Trok Rongpasee, Charoenkrung 36 Rd.,
Siphya, Bangrak, Bangkok |
10,200 |
12.75 |
|
Ms. Kusuma Dawud Nationality: Thai Address : 128/2
Trok Rongpasee, Charoenkrung 36
Rd., Siphya, Bangrak,
Bangkok |
10,200 |
12.75 |
|
Mrs. Molrudee Wongsiri Nationality: Thai Address : 128
Trok Rongpasee, Charoenkrung 36 Rd.,
Siphya, Bangrak, Bangkok |
10,200 |
12.75 |
|
Mr. Kritsarayuth Wongsiri Nationality: Thai Address : 128
Trok Rongpasee, Charoenkrung 36 Rd.,
Siphya, Bangrak, Bangkok |
10,200 |
12.75 |
|
|
|
|
|
Mr. Ajmera Aashish Nationality: Indian Address : 410/110 Surawongse Rd.,
Suriyawongse,
Bangrak, Bangkok |
9,800 |
12.25 |
|
Mr. Ashish Jain Nationality: Indian Address : 410/110 Surawongse Rd.,
Suriyawongse,
Bangrak, Bangkok |
9,800 |
12.25 |
Total Shareholders : 7
Share Structure [as
at June 28,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
40,800 |
51.00 |
|
Foreign - Indian |
3 |
39,200 |
49.00 |
|
Total |
7 |
80,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Monchaya Tantikulpong
No. 6866
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in hand
& at Bank
|
800,942.28 |
518,683.11 |
|
Trade Account & Other Receivable |
7,704,356.26 |
14,419,487.63 |
|
Inventories |
32,573,299.15 |
37,266,800.11 |
|
Other Current Assets |
- |
71,752.81 |
|
Total Current Assets
|
41,078,597.69 |
52,276,723.66 |
|
Fixed Assets |
2,798,671.52 |
3,064,521.98 |
|
Total Assets |
43,877,269.21 |
55,341,245.64 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Account & Other Payable |
35,533,637.36 |
44,096,255.29 |
|
Loan to Director |
- |
3,190,000.00 |
|
Accrued Income Tax |
87,953.20 |
- |
|
Total Current Liabilities |
35,621,590.56 |
47,286,255.29 |
|
Total Liabilities |
35,621,590.56 |
47,286,255.29 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully
paid share
capital 80,000 shares |
8,000,000.00 |
8,000,000.00 |
|
Capital Paid |
8,000,000.00 |
8,000,000.00 |
|
Retained Earning -
Unappropriated |
255,678.65 |
54,990.35 |
|
Total Shareholders' Equity |
8,255,678.65 |
8,054,990.35 |
|
Total Liabilities & Shareholders'
Equity |
43,877,269.21 |
55,341,245.64 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
31,978,088.89 |
27,561,208.41 |
|
Other Income |
1,303,364.86 |
2,216,430.31 |
|
Total Revenues |
33,281,453.75 |
29,777,638.72 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
29,655,447.42 |
25,864,142.74 |
|
Selling and Administrative Expenses |
3,213,339.39 |
4,128,636.56 |
|
Total Expenses |
32,868,786.81 |
29,992,779.30 |
|
Profit / [Loss] before Income
Tax |
412,666.94 |
[215,140.58] |
|
Income Tax |
[211,978.64] |
- |
|
Net Profit / [Loss] |
200,688.30 |
[215,140.58] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.11 |
|
QUICK RATIO |
TIMES |
0.24 |
0.32 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.43 |
8.99 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.73 |
0.50 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
400.91 |
525.92 |
|
INVENTORY TURNOVER |
TIMES |
0.91 |
0.69 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.94 |
190.96 |
|
RECEIVABLES TURNOVER |
TIMES |
4.15 |
1.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
437.35 |
622.30 |
|
CASH CONVERSION CYCLE |
DAYS |
51.50 |
94.58 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.74 |
93.84 |
|
SELLING & ADMINISTRATION |
% |
10.05 |
14.98 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.34 |
14.20 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.29 |
(0.78) |
|
NET PROFIT MARGIN |
% |
0.63 |
(0.78) |
|
RETURN ON EQUITY |
% |
2.43 |
(2.67) |
|
RETURN ON ASSET |
% |
0.46 |
(0.39) |
|
EARNING PER SHARE |
BAHT |
2.51 |
(2.69) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.81 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.31 |
5.87 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
16.03 |
|
|
OPERATING PROFIT |
% |
(291.81) |
|
|
NET PROFIT |
% |
193.28 |
|
|
FIXED ASSETS |
% |
(8.68) |
|
|
TOTAL ASSETS |
% |
(20.72) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.34 |
Impressive |
Industrial Average |
9.66 |
|
Net Profit Margin |
0.63 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.46 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
2.43 |
Impressive |
Industrial Average |
(0.72) |
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. Gross Profit Margin is 11.34%. When compared with
the industry average, the ratio of the company was higher. This indicated that company was more
profitable than the same industry.
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. Net Profit Margin ratio is 0.63%,
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
0.46%, 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 2.43%, 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 Uptrend
Return on Equity Stable
LIQUIDITY RATIO
|
Current Ratio |
1.15 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
51.50 |
|
|
|
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 1.15 times in 2011, increase from 1.11 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 0.24 times in 2011,
decrease from 0.32 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 52 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.81 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
4.31 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.81 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 |
11.43 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
0.73 |
Deteriorated |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
400.91 |
|
|
|
|
Inventory Turnover |
0.91 |
Deteriorated |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
87.94 |
|
|
|
|
Receivables Turnover |
4.15 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
437.35 |
|
|
|
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 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.54.57 |
|
UK Pound |
1 |
Rs.87.90 |
|
Euro |
1 |
Rs.71.53 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.