MIRA
INFORM REPORT
|
Report Date : |
03.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
S.M. DIAM CO., LTD. |
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Registered Office : |
8th Floor, D. Room, Gems Tower, 1249/62 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 : |
30.10.2006 |
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Com. Reg. No.: |
0105549128861 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor of Diamonds and Gemstones |
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No. of Employees : |
2 |
RATING & COMMENTS
|
MIRAs Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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
S.M.
DIAM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 8th FLOOR,
D. ROOM, GEMS TOWER,
1249/62 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-3883,
2235-3240
FAX :
[66] 2267-3883
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549128861
CAPITAL REGISTERED : BHT.
5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDERS PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MANISH JAIN,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on October 30,
2006 as a
private limited company under
the registered name
S.M. DIAM CO.,
LTD. by Thai
and Indian groups.
Its business objective
is to import
and distribute diamonds
and gemstones to
jewelry business operators
in Thailand. It
currently employs 2
staff.
The subjects registered address is 8th Floor, D. Room, 1249/62 Gems Tower, Charoenkrung Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subjects current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Manish Jain |
|
Indian |
38 |
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with companys
affixed.
MANAGEMENT
Mr. Manish Jain is
the Managing Director.
He is Indian
nationality with the
age of 38
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
diamonds and gemstones for
jewelry production industry.
PURCHASE
100%
of the products
is imported from
India, Pakistan, Hong
Kong and Africa.
SALES
100% of the
products is sold
locally by wholesale
to traders, manufacturers
and end-users.
RELATED AND
AFFILIATED COMPANY
P.M.R. Gems Co.,
Ltd.
Business Type :
Importer and distributor
of diamonds and
gemstones.
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 T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 2
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$ 50,000.
COMMENT
The
subject is engaged in
diamonds and gemstones trading business.
It serves mainly to consumer
market, which is closely
links to
the condition of
market consumption. Unfortunately, consumption
was slow, while recent floods in Thailand
also sways domestic
consumption.
The subjects market is
still small and most
customers are the small size jewelry
stores.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 2,000,000 divided into
20,000 shares of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 4,000,000
on October 10,
2007
Bht. 6,000,000 on October 12,
2009
On
August 31, 2010,
capital was decreased
to Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Manish Jain Nationality: Indian Address : 1249/62
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
20,000 |
40.00 |
|
Mr. Thawatchai Langsanti Nationality: Thai Address : 5/78
Moo 1, Kokfaed,
Nongjok, Bangkok |
8,500 |
17.00 |
|
Mrs. Busaba Ruenpitak Nationality: Thai Address : 521
Somdejchaopraya Rd., Bangyikhan,
Bangplad, Bangkok |
8,500 |
17.00 |
|
Mr. Chatree Phu-eiam Nationality: Thai Address : 46
Moo 13, Yotaka,
Bangnampriew, Chachoengsao |
8,500 |
17.00 |
|
Mrs. Sharika Jain Nationality: Indian Address : 1249/62
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
4,500 |
9.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
25,500 |
51.00 |
|
Foreign - Indian |
2 |
24,500 |
49.00 |
|
Total |
5 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Dara Parksuchon
No. 1312
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
3,634.41 |
73,948.85 |
|
Trade Accounts Receivable |
10,054,571.02 |
1,833,588.96 |
|
Inventories |
15,323,685.77 |
7,428,448.17 |
|
Other Current Assets |
3,256.08 |
3,388.83 |
|
|
|
|
|
Total Current Assets
|
25,385,147.28 |
9,339,374.81 |
|
|
|
|
|
Fixed Assets |
52,290.62 |
77,706.88 |
|
Total Assets |
25,437,437.90 |
9,417,081.69 |
LIABILITIES &
SHAREHOLDERS EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
17,898,727.14 |
3,037,024.63 |
|
Other Current Liabilities |
78,201.96 |
51,585.16 |
|
|
|
|
|
Total Current Liabilities |
17,976,929.10 |
3,088,609.79 |
|
|
|
|
|
Long-term Loan from
Related Person |
4,950,000.00 |
1,320,000.00 |
|
Total Liabilities |
22,926,929.10 |
4,408,609.79 |
|
|
|
|
|
Shareholders Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 &
60,000 shares in 2010 & 2009 respectively |
5,000,000.00 |
6,000,000.00 |
|
|
|
|
|
Capital Paid |
5,000,000.00 |
6,000,000.00 |
|
Retained Earning Unappropriated |
[2,489,491.20] |
[991,528.10] |
|
Total Shareholders' Equity |
2,510,508.80 |
5,008,471.90 |
|
Total Liabilities & Shareholders' Equity |
25,437,437.90 |
9,417,081.69 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
10,927,935.87 |
13,252,077.26 |
|
Other Income |
154,137.28 |
167,545.06 |
|
Total Revenues |
11,082,073.15 |
13,419,622.32 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
10,776,878.91 |
12,254,073.87 |
|
Selling Expenses |
3,200.00 |
12,304.75 |
|
Administrative Expenses |
1,913,012.02 |
1,588,504.17 |
|
Total Expenses |
12,693,090.93 |
13,854,882.79 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
[1,611,017.78] |
[435,260.47] |
|
Financial Cost |
[52,200.00] |
[53,673.26] |
|
Profit / [Loss] before Income
Tax |
[1,663,217.78] |
[488,933.73] |
|
Income Tax |
- |
[20,993.44] |
|
|
|
|
|
Net Profit / [Loss] |
[1,663,217.78] |
[509,927.17] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.41 |
3.02 |
|
QUICK RATIO |
TIMES |
0.56 |
0.62 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
208.98 |
170.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.43 |
1.41 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
518.99 |
221.26 |
|
INVENTORY TURNOVER |
TIMES |
0.70 |
1.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
335.83 |
50.50 |
|
RECEIVABLES TURNOVER |
TIMES |
1.09 |
7.23 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
606.21 |
90.46 |
|
CASH CONVERSION CYCLE |
DAYS |
248.62 |
181.31 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
98.62 |
92.47 |
|
SELLING & ADMINISTRATION |
% |
17.53 |
12.08 |
|
INTEREST |
% |
0.48 |
0.41 |
|
GROSS PROFIT MARGIN |
% |
2.79 |
8.80 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(14.74) |
(3.28) |
|
NET PROFIT MARGIN |
% |
(15.22) |
(3.85) |
|
RETURN ON EQUITY |
% |
(66.25) |
(10.18) |
|
RETURN ON ASSET |
% |
(6.54) |
(5.41) |
|
EARNING PER SHARE |
BAHT |
(33.26) |
(8.50) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.90 |
0.47 |
|
DEBT TO EQUITY RATIO |
TIMES |
9.13 |
0.88 |
|
TIME INTEREST EARNED |
TIMES |
(30.86) |
(8.11) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(17.54) |
|
|
OPERATING PROFIT |
% |
270.13 |
|
|
NET PROFIT |
% |
(226.17) |
|
|
FIXED ASSETS |
% |
(32.71) |
|
|
TOTAL ASSETS |
% |
170.12 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.79 |
Deteriorated |
Industrial
Average |
29.20 |
|
Net Profit Margin |
(15.22) |
Deteriorated |
Industrial
Average |
(51.65) |
|
Return on Assets |
(6.54) |
Deteriorated |
Industrial
Average |
(13.01) |
|
Return on Equity |
(66.25) |
Deteriorated |
Industrial
Average |
(3.83) |
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 2.79%. 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 -15.22%,
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
-6.54%, 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 -66.25%.
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 |
1.41 |
Deteriorated |
Industrial
Average |
83.84 |
|
Quick Ratio |
0.56 |
|
|
|
|
Cash Conversion Cycle |
248.62 |
|
|
|
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 1.41 times in 2010, decreased from 3.02 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 0.56 times in 2010,
decreased from 0.62 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 249 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.90 |
Impressive |
Industrial
Average |
1.91 |
|
Debt to Equity Ratio |
9.13 |
Risky |
Industrial
Average |
1.49 |
|
Times Interest Earned |
(30.86) |
Risky |
Industrial
Average |
343.72 |
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 -30.87 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 0.9 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 |
208.98 |
Deteriorated |
Industrial
Average |
167,038.45 |
|
Total Assets Turnover |
0.43 |
Deteriorated |
Industrial
Average |
1.18 |
|
Inventory Conversion Period |
518.99 |
|
|
|
|
Inventory Turnover |
0.70 |
Deteriorated |
Industrial
Average |
4.27 |
|
Receivables Conversion Period |
335.83 |
|
|
|
|
Receivables Turnover |
1.09 |
Deteriorated |
Industrial
Average |
34.28 |
|
Payables Conversion Period |
606.21 |
|
|
|
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.49.13 |
|
|
1 |
Rs.77.85 |
|
Euro |
1 |
Rs.64.75 |
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 SCs 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.