MIRA INFORM REPORT
|
Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
|
Correct Name : |
KENDIAM
CO., LTD. |
|
|
|
|
Registered Office : |
Suite 16e-2,
11th Floor, Bangkok
Gems & Jewellery
Tower, 322/16 Surawong
Road, Sipraya, 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 : |
06.05.2004 |
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Com. Reg. No.: |
0105547062111 |
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Legal Form : |
Private
Limited Company |
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|
|
|
Line of Business : |
Importer,
exporter and distributor of diamonds and
gemstones |
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|
|
|
No. of Employees
: |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Company |
|
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 30th, 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
KENDIAM CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : SUITE
16E-2, 11th FLOOR,
BANGKOK GEMS &
JEWELLERY TOWER,
322/16 SURAWONG ROAD,
SIPRAYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2631-4487,
081 208-3123
FAX : [66] 2631-4487
E-MAIL
ADDRESS : sukenrock@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547062111
CAPITAL REGISTERED : BHT.
5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SUKEN PRAKASH
SHAH, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER, EXPORTER
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 May 6,
2004 as a
private limited company under
the registered name
KENDIAM CO., LTD.,
by Thai and
Indian groups, with the
business objective to
import and distribute
diamonds, gemstones and
export Thai jewelry
products. It currently
employs 2 staff.
The
subject’s registered address
is Suite 16E-2,
11th Flr., Bangkok
Gems & Jewellery Tower,
322/16 Surawong Rd.,
Sipraya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
Mr. Suken Prakash Shah
AUTHORIZED PERSON
The above director
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Suken Prakash Shah is the
Managing Director.
He is Indian
nationality with the
age of 30
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing and distributing various
kinds of diamonds and gemstones
for jewelry production,
as well as
exporting of Thai
jewelry products.
PURCHASE
Its
products are purchased
from suppliers both
domestic and overseas,
mainly in India.
SALES
100% of the
diamonds and gemstones is
sold locally by
wholesale to manufacturers
and end-users.
EXPORT
Jewelry products are
exported to India
and 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
D/A or T/T
on negotiated terms.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
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. Its sales
were moderately increased
in the year
2010 and 2011,
as well as
current business outlook
is brisk.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each
with fully paid.
On
December 1, 2011, the
capital was increased
to Bht. 5,000,000 divided
into 50,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as at November
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suken Prakash Shah Nationality: Indian Address : 62/3
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
10,000 |
20.00 |
|
Mr. Prakash Kakaltus Shah Nationality: Indian Address : 62/3
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
7,250 |
14.50 |
|
Mr. Keyur Prakash Shah Nationality: Indian Address : 62/3
Surawong Rd., Suriyawongse, Bangrak, Bangkok
|
7,250 |
14.50 |
|
Mr. Chatree Phu-eiam Nationality: Thai Address : 46
Moo 12, Yothaka,
Bangnampriew,
Chachoengsao |
6,375 |
12.75 |
|
Mr. Prasert Boonmalert Nationality: Thai Address : 30/1 Moo
12, Yothaka, Bangnampriew,
Chachoengsao |
6,375 |
12.75 |
|
Mr. Tan Saipan Nationality: Thai Address : 63
Moo 1, Huamuang,
Song, Phrae |
6,375 |
12.75 |
|
Ms. Aoonruan Chanthuk Nationality: Thai Address : 70
Moo 5, Inburi,
Singburi |
6,375 |
12.75 |
Total Shareholders : 7
Share Structure [as
at November 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
25,500 |
51.00 |
|
Foreign - Indian |
3 |
24,500 |
49.00 |
|
Total |
7 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No.
1888
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
2,023,230.96 |
99,858.82 |
|
Trade Accounts Receivable |
4,832,581.04 |
3,140,866.64 |
|
Inventories |
4,444,911.99 |
2,360,957.48 |
|
Other Current Assets |
144,466.39 |
- |
|
|
|
|
|
Total Current Assets
|
11,445,190.38 |
5,601,682.94 |
|
|
|
|
|
Fixed Assets |
3,586.54 |
4,483.17 |
|
Total Assets |
11,448,776.92 |
5,606,166.11 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
5,707,871.32 |
309,051.31 |
|
Loan from Directors |
3,420,000.00 |
3,420,000.00 |
|
Other Current Liabilities |
58,843.29 |
17,965.77 |
|
|
|
|
|
Total Current Liabilities |
9,186,714.61 |
3,747,017.08 |
|
Total Liabilities |
9,186,714.61 |
3,747,017.08 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated |
262,062.31 |
[140,850.97] |
|
Total Shareholders' Equity |
2,262,062.31 |
1,859,149.03 |
|
Total Liabilities & Shareholders' Equity |
11,448,776.92 |
5,606,166.11 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
9,739,051.73 |
5,637,595.59 |
|
Other Income |
81,609.26 |
11,529.11 |
|
Total Sales |
9,820,660.99 |
5,649,124.70 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
8,562,329.03 |
4,910,292.77 |
|
Selling Expenses |
45,787.75 |
- |
|
Administrative Expenses |
763,047.64 |
760,121.15 |
|
Total Expenses |
9,371,164.42 |
5,670,413.92 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
449,496.57 |
[21,289.22] |
|
Financial Cost |
[1,100.00] |
[3,450.00] |
|
Profit / [Loss] before Income
Tax |
448,396.57 |
[24,739.22] |
|
Income Tax |
[45,483.29] |
- |
|
|
|
|
|
Net Profit / [Loss] |
402,913.28 |
[24,739.22] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.25 |
1.49 |
|
QUICK RATIO |
TIMES |
0.75 |
0.86 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,715.44 |
1,257.50 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.85 |
1.01 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
189.48 |
175.50 |
|
INVENTORY TURNOVER |
TIMES |
1.93 |
2.08 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
181.12 |
203.35 |
|
RECEIVABLES TURNOVER |
TIMES |
2.02 |
1.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
243.32 |
22.97 |
|
CASH CONVERSION CYCLE |
DAYS |
127.28 |
355.88 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
87.92 |
87.10 |
|
SELLING & ADMINISTRATION |
% |
8.31 |
13.48 |
|
INTEREST |
% |
0.01 |
0.06 |
|
GROSS PROFIT MARGIN |
% |
12.92 |
13.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.62 |
(0.38) |
|
NET PROFIT MARGIN |
% |
4.14 |
(0.44) |
|
RETURN ON EQUITY |
% |
17.81 |
(1.33) |
|
RETURN ON ASSET |
% |
3.52 |
(0.44) |
|
EARNING PER SHARE |
BAHT |
20.15 |
(1.24) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.06 |
2.02 |
|
TIME INTEREST EARNED |
TIMES |
408.63 |
(6.17) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
72.75 |
|
|
OPERATING PROFIT |
% |
(2,211.38) |
|
|
NET PROFIT |
% |
1,728.64 |
|
|
FIXED ASSETS |
% |
(20.00) |
|
|
TOTAL ASSETS |
% |
104.22 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
12.92 |
Acceptable |
Industrial
Average |
25.80 |
|
Net Profit Margin |
4.14 |
Impressive |
Industrial
Average |
(40.29) |
|
Return on Assets |
3.52 |
Impressive |
Industrial
Average |
(7.86) |
|
Return on Equity |
17.81 |
Impressive |
Industrial
Average |
(8.60) |
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 12.92%. 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 4.14%,
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
3.52%, 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 17.81%, 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 |
1.25 |
Deteriorated |
Industrial
Average |
56.30 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
127.28 |
|
|
|
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 1.25 times in 2010, decreased from 1.49 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 0.75 times in 2010,
decreased from 0.86 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 128 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Impressive |
Industrial
Average |
0.97 |
|
Debt to Equity Ratio |
4.06 |
Risky |
Industrial
Average |
1.81 |
|
Times Interest Earned |
408.63 |
Impressive |
Industrial
Average |
(12.71) |
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 408.64 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.8 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2,715.44 |
Deteriorated |
Industrial
Average |
60,262.57 |
|
Total Assets Turnover |
0.85 |
Acceptable |
Industrial
Average |
1.38 |
|
Inventory Conversion Period |
189.48 |
|
|
|
|
Inventory Turnover |
1.93 |
Deteriorated |
Industrial
Average |
8.21 |
|
Receivables Conversion Period |
181.12 |
|
|
|
|
Receivables Turnover |
2.02 |
Deteriorated |
Industrial
Average |
16.03 |
|
Payables Conversion Period |
243.32 |
|
|
|
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.48.68 |
|
UK Pound |
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.63.57 |
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.