MIRA
INFORM REPORT
|
Report Date : |
23.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
INDIAMCO
LTD. |
|
|
|
|
Registered Office : |
24th
Floor, |
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|
|
Country : |
|
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|
|
|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
13.12.1996 |
|
|
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Com. Reg. No.: |
0105539135210 [Former : 2479/2539] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, distributor and exporter of diamond and precious stones |
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No. of Employees : |
05 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but Correct |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries,
|
Source : CIA |
Company name
INDIAMCO LTD.
SUMMARY
BUSINESS
ADDRESS : 24th FLOOR,
TELEPHONE : [66] 2630-0120-2,
081 821-3912
FAX :
[66] 2630-0122
E-MAIL
ADDRESS : indiamco@asiaaccess.net.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539135210 [Former : 2479/2539]
TAX
ID NO. : 3011798027
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. NITIN RAJENDRA
PRASAD JIAN, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMOND AND
PRECIOUS STONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on December 13,
1996 as a
private limited company
under the name style INDIAMCO
LTD., by Thai and
Indian groups, with
the business objective
to import and
distribute diamonds and
precious stones to
domestic and oversea
markets. It currently
employs 5 staff.
The
subject’s registered address
was initially located
at 297 Wanglee
Bldg., Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
On
November 13, 2006,
it was relocated
to 24th Flr.,
Jewelry Trade Center
Bldg., 919/312 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
Mr. Nitin Rajendra
Prasad Jian
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nitin Rajendra Prasad
Jian is the
Managing Director.
He is Indian
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and exporting wide
range of diamonds
and precious stones
for jewelry industry.
PURCHASE
90% of the
products is imported
from India, South
Africa and Belgium,
the remaining 10%
is purchased from
local supplier.
MAJOR SUPPLIER
Living Stone Diamond
Co., Ltd. :
SALES
85% of the
products is sold
locally by wholesale
to dealers and
manufacturers, the remaining
15% is exported
to Hong Kong,
Japan Republic of
China 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
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 5 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject’s
business performance remains
upbeat as its
products have been
widely used in
jewelry industry. Sales
in domestic and
exports also maintain
a good level.
Its business trend
is expanding steadily.
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 August 4,
1997
Bht. 11,000,000
on December 6,
2000
Bht. 23,000,000
on December 18,
2001
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, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nitin Rajendra Prasad
Jian Nationality: Indian Address : |
112,000 |
48.70 |
|
Mr. Sommai Saetia Nationality: Thai Address : 8/679
Moo 2, Bangchak,
Prakanong, |
30,300 |
13.17 |
|
Mr. Pratuan Pakdeesuk Nationality: Thai Address : 8
Moo 3, Harhae,
Karnvoralakburi,
Kampaengpetch |
29,000 |
12.61 |
|
Mr. Prasert Langsanti Nationality: Thai Address :
Phyathai, |
29,000 |
12.61 |
|
Mrs. Sumalee Langsanti Nationality: Thai Address : Phyathai, |
29,000 |
12.61 |
|
Mrs. Vinida Kotharee Nationality: Indian Address : |
400 |
0.17 |
|
Mr. Alok Rajendra Prasad
Jian Nationality: Indian Address : |
300 |
0.13 |
Total Shareholders :
7
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
117,300 |
51.00 |
|
Foreign - Indian |
3 |
112,700 |
49.00 |
|
Total |
7 |
230,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Manit Nilprapa No.
4055
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2011 and 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
7,170,033.55 |
2,566,513.58 |
|
Trade Account and
Other Receivable |
49,492,136.32 |
39,399,041.80 |
|
Inventories |
16,636,982.00 |
12,544,002.82 |
|
Other Current Assets
|
- |
330,186.96 |
|
|
|
|
|
Total Current Assets |
73,299,151.87 |
54,839,745.16 |
|
Fixed Assets |
454,552.57 |
522,694.26 |
|
Other Non-current Assets |
34,500.00 |
34,500.00 |
|
Total Assets |
73,788,204.44 |
55,396,939.42 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Account Payable |
26,568,550.11 |
2,170,729.46 |
|
Bank Overdraft & Short-term Loan from Financial Institutions |
- |
3,167,225.49 |
|
Short-term Loan from Person
or Related Company |
16,000,000.00 |
18,000,000.00 |
|
Accrued Income Tax |
385,366.34 |
600,949.89 |
|
Other Current Liabilities |
369,197.80 |
463,383.60 |
|
|
|
|
|
Total Current Liabilities |
43,323,114.25 |
24,402,288.44 |
|
|
|
|
|
Total Liabilities |
43,323,114.25 |
24,402,288.44 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 230,000 shares |
23,000,000.00 |
23,000,000.00 |
|
|
|
|
|
Capital Paid |
23,000,000.00 |
23,000,000.00 |
|
Retained Earnings - Unappropriated
|
7,465,090.19 |
7,994,650.98 |
|
Total Shareholders' Equity |
30,465,090.19 |
30,994,650.98 |
|
Total Liabilities & Shareholders'
Equity |
73,788,204.44 |
55,396,939.42 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales - Domestic |
83,670,065.02 |
79,682,167.08 |
|
Sales - Export |
48,253,691.52 |
34,506,649.74 |
|
Other Income |
2,304,457.27 |
4,732,412.59 |
|
Total Revenues |
134,228,213.81 |
118,921,229.41 |
|
Expenses |
|
|
|
|
|
|
|
Change in Finished Goods |
[4,092,979.18] |
[915,630.12] |
|
Purchase of Goods |
132,738,878.84 |
112,951,744.72 |
|
Employees Benefit Expenses |
1,705,440.00 |
1,989,500.00 |
|
Vehicle & Transportation Expenses |
379,500.00 |
503,400.00 |
|
Depreciation and Amortization |
108,795.90 |
130,648.55 |
|
Other Expenses |
2,970,136.55 |
2,263,361.39 |
|
Total Expenses |
133,809,772.11 |
116,923,024.54 |
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income
Tax |
418,441.70 |
1,998,204.87 |
|
Financial Cost |
[149,906.10] |
[103,602.85] |
|
Profit / [Loss] before Income
Tax |
268,535.60 |
1,894,602.02 |
|
Income Tax |
[798,096.39] |
[600,949.89] |
|
Net Profit / [Loss] |
[529,560.79] |
1,293,652.13 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.69 |
2.25 |
|
QUICK RATIO |
TIMES |
1.31 |
1.72 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
290.23 |
218.46 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.79 |
2.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
45.75 |
40.54 |
|
INVENTORY TURNOVER |
TIMES |
7.98 |
9.00 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
136.93 |
125.94 |
|
RECEIVABLES TURNOVER |
TIMES |
2.67 |
2.90 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
73.06 |
7.01 |
|
CASH CONVERSION CYCLE |
DAYS |
109.62 |
159.46 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
100.62 |
98.92 |
|
SELLING & ADMINISTRATION |
% |
(1.44) |
1.50 |
|
INTEREST |
% |
0.11 |
0.09 |
|
GROSS PROFIT MARGIN |
% |
1.13 |
5.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.32 |
1.75 |
|
NET PROFIT MARGIN |
% |
(0.40) |
1.13 |
|
RETURN ON EQUITY |
% |
(1.74) |
4.17 |
|
RETURN ON ASSET |
% |
(0.72) |
2.34 |
|
EARNING PER SHARE |
BAHT |
(2.30) |
5.62 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.59 |
0.44 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.42 |
0.79 |
|
TIME INTEREST EARNED |
TIMES |
2.79 |
19.29 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
15.53 |
|
|
OPERATING PROFIT |
% |
(79.06) |
|
|
NET PROFIT |
% |
(140.94) |
|
|
FIXED ASSETS |
% |
(13.04) |
|
|
TOTAL ASSETS |
% |
33.20 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
1.13 |
Deteriorated |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(0.40) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(0.72) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(1.74) |
Deteriorated |
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 1.13%. 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 -0.4%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is -0.72%.
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 -1.74%.
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 |
1.69 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
1.31 |
|
|
|
|
Cash Conversion Cycle |
109.62 |
|
|
|
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 1.69 times in 2011, decreased from 2.25 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 1.31 times in 2011,
decreased from 1.72 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 110 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.59 |
Impressive |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
1.42 |
Acceptable |
Industrial
Average |
1.67 |
|
Times Interest Earned |
2.79 |
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 2.8 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 0.59 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 |
290.23 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.79 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
45.75 |
|
|
|
|
Inventory Turnover |
7.98 |
Impressive |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
136.93 |
|
|
|
|
Receivables Turnover |
2.67 |
Satisfactory |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
73.06 |
|
|
|
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
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.55.16 |
|
UK Pound |
1 |
Rs.88.03 |
|
Euro |
1 |
Rs.70.86 |
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.