MIRA
INFORM REPORT
|
Report Date : |
29.05.2012. |
IDENTIFICATION DETAILS
|
Name : |
SWASDEE
DIAMONDS CO., LTD. |
|
|
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|
Registered Office : |
11/130 Moo 6, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date Of Incorporation : |
10.10.1989 |
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Com. Reg. No.: |
0105532096227 |
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Legal Form : |
Private
Limited Company |
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Line Of Business : |
Jewelry Trading Business |
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No. Of Employees : |
04 |
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 : |
Moderate |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
SWASDEE DIAMONDS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
BANGRAK,
TELEPHONE : [66] 2234-8401,
2237-5925
FAX :
[66] 2237-1665
E-MAIL
ADDRESS : swasdee-sodsri@hotmail.com
REGISTRATION
ADDRESS : 11/130 MOO
6,
BANGKHUNTHIEN, JOMTHONG,
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532096227
TAX
ID NO. : 3101749595
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI : 53.33%
: INDIAN :
46.67%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RIKABRAJ KOTHARI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : JEWELRY TRADING
BUSINESS
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on October 10,
1989 as a
private limited company under the name style SWASDEE DIAMONDS CO., LTD., by Thai
and Indian groups,
in order to
be engaged in
jewelry trading business. It
currently employs 4
staff.
The
subject’s registered address
was initially located
at 6 Soi
Prachum, Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
On
August 19, 2008, its
registration address was relocated
to 11/130 Moo 6,
Kalapapruek Rd.,
Bangkhunthien, Jomthong, Bangkok
10150, while the
current business address is at
9th Floor, Gems Tower,
1249/84 Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rikabraj Kothari |
|
Indian |
56 |
|
Mr. Manan Kothari |
|
Indian |
25 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rikabraj Kothari is
the Managing Director.
He is Indian
nationality with the
age of 56
years old.
BUSINESS OPERATIONS
The subject is engaged in jewelry trading business, to import,
distribute and export
various kinds of
gemstone, diamond and
jewelry products.
PURCHASE
Most of raw
materials and components are purchased
from local suppliers,
and the remaining
is imported from
India.
SALES
80% of the
products is sold
and serviced to
local customers, and
the remaining 20%
is 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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank 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.
COMMENT
The
subject is currently
expanding its sale
from rising demand
in the Thai
market and in
anticipation of new demand
from the Asian
countries. With higher spending
power, consumers will have
more demand of
precious stone, diamond
and jewelry products.
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 following:
Bht. 4,000,000
on March 13,
1990
Bht. 12,000,000
on November 12,
1996
Bht. 15,000,000
on October 4,
2004
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
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Sodsri Chaiyakhan Nationality: Thai Address : 11/612
Moo 7, Bangkae,
Bangkok |
50,000 |
33.33 |
|
Mr. Rikabraj Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd.,
Bangkhunthien, Jomthong, Bangkok |
40,000 |
26.66 |
|
Mrs. Shankeeta Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd.,
Bangkhunthien, Jomthong, Bangkok |
20,000 |
13.33 |
|
Mr. Manan Kothari Nationality: Indian Address : 11/130
Moo 6, Kalapapruek
Rd., Bangkhunthien, Jomthong,
Bangkok |
10,000 |
6.67 |
|
Ms. Rattana Sawliew Nationality: Thai Address : 128/60
Sathupradit Rd., Tungwatdon,
Sathorn, Bangkok |
10,000 |
6.67 |
|
Ms. Naree Luengchanakul Nationality: Thai Address : 4
Moo 5, Bansuan,
Muang, Chonburi |
10,000 |
6.67 |
|
Mr. Charan Chiewkul Nationality: Thai Address : 19/21
Bukkalo Rd., Thonburi,
Bangkok |
10,000 |
6.67 |
Total Shareholders : 7
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
80,000 |
53.33 |
|
Foreign - Indian |
3 |
70,000 |
46.67 |
|
Total |
7 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chote Ekabusaya
No. 1559
Note:
The 2011 financial
statement has yet
been submitted to
the Commercial Registration
Department during investigation.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
266,423.25 |
664,493.96 |
|
Trade Accounts Receivable |
6,556,317.40 |
8,655,447.94 |
|
Inventories |
36,755,649.00 |
37,962,127.20 |
|
Other Current Assets |
562.62 |
562.62 |
|
Total Current Assets
|
43,578,952.27 |
47,282,631.72 |
|
|
|
|
|
Fixed Assets |
14,780,644.32 |
14,800,805.40 |
|
Other Assets |
20,552.50 |
20,552.50 |
|
Total Assets |
58,380,149.09 |
62,103,989.62 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
2,929,263.21 |
12,188,583.74 |
|
Current Portion of Long-term
Loans |
997,200.00 |
997,200.00 |
|
Other Current Liabilities |
127,149.28 |
114,309.06 |
|
Total Current Liabilities |
4,053,612.49 |
13,300,092.80 |
|
Long-term Loan from Related Person |
32,500,000.00 |
26,610,000.00 |
|
Other Long-term Loan |
6,042,570.52 |
6,558,973.75 |
|
Total Liabilities |
42,596,183.01 |
46,469,066.55 |
|
|
|
|
|
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 |
783,966.08 |
634,923.07 |
|
Total Shareholders' Equity |
15,783,966.08 |
15,634,923.07 |
|
Total Liabilities & Shareholders' Equity |
58,380,149.09 |
62,103,989.62 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
24,209,699.74 |
24,633,115.02 |
|
Other Income |
677,738.36 |
627,872.48 |
|
Total Sales |
24,887,438.10 |
25,260,987.50 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
21,525,456.65 |
21,735,823.84 |
|
Selling Expenses |
747,885.25 |
800,794.86 |
|
Administrative Expenses |
2,001,823.37 |
2,070,502.09 |
|
Total Expenses |
24,275,165.27 |
24,607,120.78 |
|
Profit / [Loss] before Financial Costs & Income Tax |
612,272.83 |
653,866.72 |
|
Financial Costs |
[397,696.77] |
[472,349.44] |
|
Income Tax |
[65,533.05] |
[55,877.10] |
|
Net Profit / [Loss] |
149,043.01 |
125,640.18 |
fINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
10.75 |
3.56 |
|
QUICK RATIO |
TIMES |
1.68 |
0.70 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.64 |
1.66 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.41 |
0.40 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
623.25 |
637.48 |
|
INVENTORY TURNOVER |
TIMES |
0.59 |
0.57 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
98.85 |
128.25 |
|
RECEIVABLES TURNOVER |
TIMES |
3.69 |
2.85 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
49.67 |
204.68 |
|
CASH CONVERSION CYCLE |
DAYS |
672.43 |
561.06 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
88.91 |
88.24 |
|
SELLING & ADMINISTRATION |
% |
11.36 |
11.66 |
|
INTEREST |
% |
1.64 |
1.92 |
|
GROSS PROFIT MARGIN |
% |
13.89 |
14.31 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.53 |
2.65 |
|
NET PROFIT MARGIN |
% |
0.62 |
0.51 |
|
RETURN ON EQUITY |
% |
0.94 |
0.80 |
|
RETURN ON ASSET |
% |
0.26 |
0.20 |
|
EARNING PER SHARE |
BAHT |
0.99 |
0.84 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.70 |
2.97 |
|
TIME INTEREST EARNED |
TIMES |
1.54 |
1.38 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(1.72) |
|
|
OPERATING PROFIT |
% |
(6.36) |
|
|
NET PROFIT |
% |
18.63 |
|
|
FIXED ASSETS |
% |
(0.14) |
|
|
TOTAL ASSETS |
% |
(6.00) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.89 |
Impressive |
Industrial Average |
9.15 |
|
Net Profit Margin |
0.62 |
Impressive |
Industrial Average |
0.09 |
|
Return on Assets |
0.26 |
Impressive |
Industrial Average |
0.15 |
|
Return on Equity |
0.94 |
Impressive |
Industrial Average |
0.40 |
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 13.89%. 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. The company’s figure is 0.62%, 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
0.26%, 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 0.94%, 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 Uptrend
LIQUIDITY RATIO
|
Current Ratio |
10.75 |
Impressive |
Industrial
Average |
1.80 |
|
Quick Ratio |
1.68 |
|
|
|
|
Cash Conversion Cycle |
672.43 |
|
|
|
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 10.75 times in 2010, increased from 3.56 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 1.68 times in 2010,
increased from 0.7 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 673 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
2.70 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
1.54 |
Impressive |
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 1.54 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 0.73 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 |
1.64 |
Deteriorated |
Industrial
Average |
10.60 |
|
Total Assets Turnover |
0.41 |
Deteriorated |
Industrial
Average |
1.57 |
|
Inventory Conversion Period |
623.25 |
|
|
|
|
Inventory Turnover |
0.59 |
Deteriorated |
Industrial
Average |
2.35 |
|
Receivables Conversion Period |
98.85 |
|
|
|
|
Receivables Turnover |
3.69 |
Impressive |
Industrial
Average |
3.50 |
|
Payables Conversion Period |
49.67 |
|
|
|
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.55.26 |
|
UK Pound |
1 |
Rs.86.80 |
|
Euro |
1 |
Rs.69.63 |
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.