MIRA
INFORM REPORT
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Report Date : |
09.11.2012 |
IDENTIFICATION DETAILS
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Name : |
T.N.K. DIAM CO., LTD. |
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Registered Office : |
39th Floor, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
1997 |
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Com. Reg. No.: |
0105540026763 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Distributor and
Exporter of Diamonds and Jewelry
Products |
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No. of Employees : |
8 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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Thailand |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per
year - as it recovered from the Asian financial crisis of 1997-98. Thai exports
- mostly machinery and electronic components, agricultural commodities, and
jewelry - continue to drive the economy, accounting for more than half of GDP.
The global financial crisis of 2008-09 severely cut Thailand's exports, with
most sectors experiencing double-digit drops. In 2009, the economy contracted
2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995,
as exports rebounded from their depressed 2009 level. Steady economic growth at
just below 4% during the first three quarters of 2011 was interrupted by
historic flooding in October and November in the industrial areas north of
Bangkok, crippling the manufacturing sector and leading to a revised growth
rate of only 0.1% for the year. The industrial sector is poised to recover from
the second quarter of 2012 onward, however, and the government anticipates the
economy will probably grow between 5.5 and 6.5% for 2012, while private sector
forecasts range between 3.8% and 5.7%.
Source
: CIA
COMPANY NAME
T.N.K. DIAM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 39th FLOOR,
JEWELLERY TRADE CENTER,
919/470
SILOM ROAD, SILOM,
BANGRAK, BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-0060-1
FAX : [66] 2630-0062
E-MAIL
ADDRESS : tnkdiam@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1997
REGISTRATION
NO. : 0105540026763
TAX
ID NO. : 3011826454
CAPITAL REGISTERED : BHT.
23,000,000
CAPITAL PAID-UP : BHT
23,000,000
SHAREHOLDER’S
PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL
YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JIGESH SATISH SHAH,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : DIAMONDS
AND 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 March
14, 1997 as a
private limited company
under the name style
T.N.K. DIAM CO., LTD. by
Thai and Indian
groups, in order
to import and
distribute diamonds and
jewelry products to
both local and
overseas markets. It
currently employs 8
staff.
The subject’s registered
address is 39th Floor,
Jewellery Trade Center,
919/470 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the company’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
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Nationality |
Age |
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Mr. Jigesh Satish
Shah |
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Indian |
34 |
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Mr. Hiral Hetendra Shah |
|
Indian |
30 |
|
Mr. Ritesh Mukesh
Shah |
|
Indian |
30 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Jigesh Satish
Shah is the
Managing Director.
He is Indian
nationality with the
age of 34
years old.
Mr. Hiral Hetendra Shah is
the Assistant Managing
Director.
He is Indian
nationality with the
age of 30 years old.
BUSINESS
OPERATIONS
The subject is
engaged in importing
and distributing diamonds,
gemstones and jewelry
products, as well
as exporting of
diamond jewelry, diamonds,
pearl and gemstones.
PURCHASE
Most of the products
are imported from
India, Hong Kong,
Japan, Pakistan and Africa.
SALES [LOCAL]
The products are
sold by wholesale
to traders and
manufacturers.
EXPORT
Jewelry products, diamond
and gemstones are
exported to United States
of America, Hong
Kong, Japan, Middle
East and European
countries.
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
according to IRICO’S
DATABASE 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
credit terms of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold to customers
by cash and
credit, with the
maximum credit given at
30-60 days. The
subject is not found
to have problem on
its accounts receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
8 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 has been in
jewelry business for
over fifteen years with the
numbers of customers. Subject
reported an excellent
business in 2011, while
growth has also
improved significantly from
Asian and Middle
East markets. Its
business outlook is promising.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 15,000,000 on
November 21, 2002
Bht. 23,000,000 on
March 16, 2012
The latest registered
capital was increased
to Bht. 23,000,000 divided
into 230,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
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Mr. Patipan Choochomchuen Nationality: Thai Address : 15/2
Sukhumvit 101/1 Rd.,
Bangchak,
Prakanong, Bangkok |
117,300 |
51.00 |
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Mr. Jigesh Satish
Shah Nationality: Indian Address : 919/470
Silom Rd., Silom,
Bangrak, Bangkok |
103,500 |
45.00 |
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Mr. Hiral Hetendra
Shah Nationality: Indian Address : 919/470
Silom Rd., Silom,
Bangrak, Bangkok |
4,600 |
2.00 |
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Mr. Ritesh Mukesh
Shah Nationality: Indian Address : 919/470
Silom Rd., Silom,
Bangrak, Bangkok |
4,600 |
2.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
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Thai |
1 |
117,300 |
51.00 |
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Foreign - Indian |
3 |
112,700 |
49.00 |
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Total |
4 |
230,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Surin Ruangpachara
No. 3741
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2011 & 2010
were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
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Cash in Hand
& at Bank |
127,074.38 |
34,768.86 |
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Trade Accounts Receivable |
301,202,699.94 |
185,568,092.47 |
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Inventories |
91,178,195.86 |
70,258,095.90 |
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Total Current Assets
|
392,507,970.18 |
255,860,957.23 |
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Long-term Investment |
11,295,539.35 |
20,922,782.36 |
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Fixed Assets |
5,116,807.23 |
4,136,534.30 |
|
Guarantee & Deposits |
8,181.81 |
8,181.81 |
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Other Non-current Assets |
370,402.15 |
370,402.15 |
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Total Assets |
409,298,900.72 |
281,298,857.85 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
|
|
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Bank Overdraft |
56,431,103.11 |
6,418,618.17 |
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Trade Accounts Payable |
313,033,653.23 |
182,520,670.46 |
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Installment Payable |
319,006.00 |
- |
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Other Current Liabilities |
1,058,682.09 |
1,295,798.50 |
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Total Current Liabilities |
370,842,444.43 |
190,235,087.13 |
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Loan Payable - Financial
Institution |
- |
54,747,934.39 |
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Total Liabilities |
370,842,444.43 |
244,983,021.52 |
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Shareholders' Equity |
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Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
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Capital Paid |
15,000,000.00 |
15,000,000.00 |
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Retained Earning -
Unappropriated |
23,456,456.29 |
21,315,836.33 |
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Total Shareholders' Equity |
38,456,456.29 |
36,315,836.33 |
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Total Liabilities & Shareholders' Equity |
409,298,900.72 |
281,298,857.85 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
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Sales |
395,759,746.13 |
294,504,529.64 |
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Other Income |
2,048,400.67 |
2,893,371.01 |
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Total Revenues |
397,808,146.80 |
297,397,900.65 |
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Expenses |
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Cost of Goods
Sold |
387,373,171.63 |
284,953,618.48 |
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Selling and Administrative Expenses |
4,146,376.12 |
5,132,499.77 |
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Total Expenses |
391,519,547.75 |
290,086,118.25 |
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Profit / [Loss] before Financial Cost & Income Tax |
6,288,599.05 |
7,311,782.40 |
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Financial Cost |
[3,199,132.64] |
[2,717,322.61] |
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Profit/[Loss] before Income Tax |
3,089,466.41 |
4,594,459.79 |
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Income Tax |
[948,846.45] |
[1,400,206.86] |
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Net Profit / [Loss] |
2,140,619.96 |
3,194,252.93 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
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LIQUIDITY RATIO |
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CURRENT RATIO |
TIMES |
1.06 |
1.34 |
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QUICK RATIO |
TIMES |
0.81 |
0.98 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
77.35 |
71.20 |
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TOTAL ASSETS TURNOVER |
TIMES |
0.97 |
1.05 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
85.91 |
89.99 |
|
INVENTORY TURNOVER |
TIMES |
4.25 |
4.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
277.79 |
229.99 |
|
RECEIVABLES TURNOVER |
TIMES |
1.31 |
1.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
294.95 |
233.79 |
|
CASH CONVERSION CYCLE |
DAYS |
68.75 |
86.19 |
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PROFITABILITY
RATIO |
|
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COST OF GOODS SOLD |
% |
97.88 |
96.76 |
|
SELLING & ADMINISTRATION |
% |
1.05 |
1.74 |
|
INTEREST |
% |
0.81 |
0.92 |
|
GROSS PROFIT MARGIN |
% |
2.64 |
4.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.59 |
2.48 |
|
NET PROFIT MARGIN |
% |
0.54 |
1.08 |
|
RETURN ON EQUITY |
% |
5.57 |
8.80 |
|
RETURN ON ASSET |
% |
0.52 |
1.14 |
|
EARNING PER SHARE |
BAHT |
14.27 |
21.30 |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.91 |
0.87 |
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DEBT TO EQUITY RATIO |
TIMES |
9.64 |
6.75 |
|
TIME INTEREST EARNED |
TIMES |
1.97 |
2.69 |
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ANNUAL GROWTH |
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SALES GROWTH |
% |
34.38 |
|
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OPERATING PROFIT |
% |
(13.99) |
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NET PROFIT |
% |
(32.99) |
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FIXED ASSETS |
% |
23.70 |
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TOTAL ASSETS |
% |
45.50 |
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PROFITABILITY RATIO
|
Gross Profit Margin |
2.64 |
Deteriorated |
Industrial Average |
9.66 |
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Net Profit Margin |
0.54 |
Impressive |
Industrial Average |
(0.20) |
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Return on Assets |
0.52 |
Impressive |
Industrial Average |
(0.27) |
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Return on Equity |
5.57 |
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. The company's figure is 2.64%. 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 0.54%,
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
0.52%, 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 5.57%, 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 |
1.06 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.81 |
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Cash Conversion Cycle |
68.75 |
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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 1.06 times in 2011, decreased from 1.34 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 0.81 times in 2011,
decreased from 0.98 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 69 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
9.64 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
1.97 |
Impressive |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.97 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 0.91 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 |
77.35 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
0.97 |
Acceptable |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
85.91 |
|
|
|
|
Inventory Turnover |
4.25 |
Impressive |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
277.79 |
|
|
|
|
Receivables Turnover |
1.31 |
Deteriorated |
Industrial Average |
3.31 |
|
Payables Conversion Period |
294.95 |
|
|
|
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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.87.00 |
|
Euro |
1 |
Rs.69.47 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.