MIRA
INFORM REPORT
|
Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
STAR DIAMONDS CO., LTD. |
|
|
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|
Registered Office : |
2nd Floor, Room 203, Poonmanee Building, 30-36 Mahaesak Road, Suriyawongse Bangrak, Bangkok 10500 |
|
|
|
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Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
21.04.1986 |
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|
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Com. Reg. No.: |
0105529013405 |
|
|
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|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamond, Gemstones & Jewelry Products |
|
|
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|
No. of Employees : |
4 |
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
STAR
DIAMONDS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2nd FLOOR, ROOM
203, POONMANEE BUILDING,
30-36
MAHAESAK
ROAD, SURIYAWONGSE,
BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2235-5185,
081 684-1013, 2235-3391
FAX :
[66] 2267-1567
E-MAIL
ADDRESS : star_diamonds@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529013405 [Former : 1341/2529]
CAPITAL REGISTERED : BHT.
15,000,000
CAPITAL PAID-UP : BHT. 15,000,000
SHAREHOLDERS PROPORTION : THAI :
51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SHAH BHARAT
LALUBHAI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMOND, GEMSTONES
& 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 April 21,
1986 as a
private limited company
under the name
style STAR DIAMONDS CO., LTD.,
by Thai
and Indian groups, with
the objective to be
engaged in jewelry
trading business. It
currently employs 4
staff.
The subjects registered address is 2nd
Flr., Room 23, Poonmanee Building, 30-36 Mahaesak Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subjects current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Shah Bharat Lalubhai |
|
Indian |
57 |
|
Mr. Gitane Bharatbai Shah |
|
Indian |
29 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with companys affixed.
MANAGEMENT
Mr. Shah Bharat Lalubhai
is the Managing
Director.
He is Indian
nationality with the
age of 57
years old.
BUSINESS OPERATIONS
The subject is engaged in importing
and distributing of
diamonds and gemstones,
as well as
exporting of gemstones
and jewelry products.
IMPORT
Its products are
imported from India,
Pakistan, Belgium, Hong
Kong and South
Africa, and the
rest is purchased
locally.
SALES
The products are
sold to customers
both domestic and
overseas, mainly Malaysia,
Hong Kong, Singapore,
India and Indonesia.
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
Local bills are paid by
cash or on
the credits term
of 30-60 days.
Sales are by
cash or on
the credits term
of 30-60 days.
Imports are by
L/C at sight.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold by cash
and credit, with maximum credit given at 30-60
days.
The subject is
not found to
have problem on
its account receivable.
BANKING
Kasikornbank 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$ 600,000.
COMMENT
The
subject was formed
in 1986 engaged in diamond
and gemstones trading and export of
fine jewelry products.
Its serves mainly
to consumer market, which is
closely linked to the
conditions of consumption market both
domestic and overseas.
Unfortunately, overseas consumption
has been slowing
down especially in EU market, while
floods in Thailand also
sways overall domestic
consumption in 2011.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 1,000,000 divided
into 1,000 shares
of Bht. 1,000
each.
The
capital was increased
later as following:
Bht. 2,000,000
on January 26,
1987
Bht.
15,000,000 on February
5, 1991
The
latest registered capital
was increased to
Bht. 15,000,000 divided into
15,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Gitane Bharatbai Shah Nationality: Indian Address : 30-36
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok 10500
|
6,150 |
41.00 |
|
Ms. Santana Panya-ey Nationality: Thai Address : 717/178
Trok Watchannai, Bangklo,
Bangkorlaem, Bangkok |
2,850 |
19.00 |
|
Mr. Shah Bharat Lalubhai Nationality: Indian Address : 30-36
Mahaesak Rd.,
Suriyawongse,
Bangrak, Bangkok 10500
|
1,200 |
8.00 |
|
Mr. Opas Duangkaew Nationality: Thai Address : 132
Moo 11, Rainoy,
Muang, Ubolratchathanee |
1,200 |
8.00 |
|
Mr. Adisak Wuthi-uthai Nationality: Thai Address : 138
Phaholyothin Rd., Samsennai,
Phyathai,
Bangkok 10400 |
1,200 |
8.00 |
|
Mrs. Sakorn Porakonthan Nationality: Thai Address : 844/3
Ramkamhaeng Rd., Huamark,
Bangkapi, Bangkok |
1,200 |
8.00 |
|
Mr. Bandit Sornpaisal Nationality: Thai Address : 342/30
Charoenmuang Rd., Wangmai,
Pathumwan, Bangkok 10330 |
1,200 |
8.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
7,650 |
51.00 |
|
Foreign - Indian |
2 |
7,350 |
49.00 |
|
Total |
7 |
15,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Kochaphan Supapatranam
No. 8511
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
246,882.81 |
137,126.35 |
|
Trade Accounts Receivable |
32,023,848.52 |
23,022,610.69 |
|
Inventories |
25,173,305.78 |
29,257,528.36 |
|
Deferred Income
|
- |
100,826.00 |
|
|
|
|
|
Total Current Assets
|
57,444,037.11 |
52,518,091.40 |
|
Loan from Director
|
- |
400,000.00 |
|
Fixed Assets |
1.00 |
1.00 |
|
Other Assets - Guarantee |
5,607.48 |
5,607.48 |
|
Total Assets |
57,449,645.59 |
52,923,699.88 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
36,538,428.34 |
33,687,664.39 |
|
Loan Payable -
Financial Institution |
1,036,541.39 |
1,573,688.28 |
|
Other Current Liabilities |
1,877,536.15 |
331,356.60 |
|
|
|
|
|
Total Current Liabilities |
39,452,505.88 |
35,592,709.27 |
|
|
|
|
|
Total Liabilities |
39,452,505.88 |
35,592,709.27 |
|
|
|
|
|
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 |
2,997,139.71 |
2,330,990.61 |
|
Total Shareholders' Equity |
17,997,139.71 |
17,330,990.61 |
|
Total Liabilities & Shareholders' Equity |
57,449,645.59 |
52,923,699.88 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
53,391,655.71 |
37,279,573.22 |
|
Other Income |
5,025,648.23 |
3,923,679.99 |
|
Total Revenues |
58,147,303.94 |
41,203,253.21 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
55,686,867.41 |
38,865,900.05 |
|
Selling and Administrative Expenses |
1,518,924.68 |
1,493,355.71 |
|
Total Expenses |
57,205,792.09 |
40,359,255.76 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
1,211,511.85 |
843,997.45 |
|
Interest Expenses |
[254,961.34] |
[109,247.44] |
|
Profit / [Loss] before Income
Tax |
956,550.51 |
734,750.01 |
|
Income Tax |
[290,401.41] |
[223,677.44] |
|
|
|
|
|
Net Profit / [Loss] |
666,149.10 |
511,072.57 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.46 |
1.48 |
|
QUICK RATIO |
TIMES |
0.82 |
0.65 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
53,391,655.71 |
37,279,573.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.93 |
0.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
165.00 |
274.77 |
|
INVENTORY TURNOVER |
TIMES |
2.21 |
1.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
218.92 |
225.41 |
|
RECEIVABLES TURNOVER |
TIMES |
1.67 |
1.62 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
239.49 |
316.37 |
|
CASH CONVERSION CYCLE |
DAYS |
144.43 |
183.81 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
104.30 |
104.26 |
|
SELLING & ADMINISTRATION |
% |
2.84 |
4.01 |
|
INTEREST |
% |
0.48 |
0.29 |
|
GROSS PROFIT MARGIN |
% |
4.61 |
6.27 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.76 |
2.26 |
|
NET PROFIT MARGIN |
% |
1.25 |
1.37 |
|
RETURN ON EQUITY |
% |
3.70 |
2.95 |
|
RETURN ON ASSET |
% |
1.16 |
0.97 |
|
EARNING PER SHARE |
BAHT |
4.44 |
3.41 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.19 |
2.05 |
|
TIME INTEREST EARNED |
TIMES |
3.69 |
7.73 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
43.22 |
|
|
OPERATING PROFIT |
% |
11.55 |
|
|
NET PROFIT |
% |
30.34 |
|
|
FIXED ASSETS |
% |
- |
|
|
TOTAL ASSETS |
% |
8.55 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.61 |
Deteriorated |
Industrial
Average |
25.80 |
|
Net Profit Margin |
1.25 |
Impressive |
Industrial
Average |
(40.29) |
|
Return on Assets |
1.16 |
Impressive |
Industrial
Average |
(7.86) |
|
Return on Equity |
3.70 |
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 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 4.61%. 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 1.25%, 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 1.16%, 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 3.7%, 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 |
1.46 |
Deteriorated |
Industrial
Average |
56.30 |
|
Quick Ratio |
0.82 |
|
|
|
|
Cash Conversion Cycle |
144.43 |
|
|
|
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 1.46 times in 2010, decreased from 1.48 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 0.82 times in 2010,
increased from 0.65 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 145 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Impressive |
Industrial
Average |
0.97 |
|
Debt to Equity Ratio |
2.19 |
Risky |
Industrial
Average |
1.81 |
|
Times Interest Earned |
3.69 |
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 3.7 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 0.69 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 |
53,391,655.71 |
Impressive |
Industrial
Average |
60,262.57 |
|
Total Assets Turnover |
0.93 |
Acceptable |
Industrial
Average |
1.38 |
|
Inventory Conversion Period |
165.00 |
|
|
|
|
Inventory Turnover |
2.21 |
Deteriorated |
Industrial
Average |
8.21 |
|
Receivables Conversion Period |
218.92 |
|
|
|
|
Receivables Turnover |
1.67 |
Deteriorated |
Industrial
Average |
16.03 |
|
Payables Conversion Period |
239.49 |
|
|
|
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.48.67 |
|
|
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 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.