MIRA INFORM REPORT

 

 

Report Date :           

15.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SUPARTH  DIAMOND  CO.,  LTD.

 

 

Registered Office :

Room  202,  2nd  Floor,  Kbs  Building, 30, 32, 34, 36, 38  Mahaesak  3  Road,

Suriyawongse, Bangrak, Bangkok  10500

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

23.08.2002

 

 

Com. Reg. No.:

0105545087621

 

 

Legal Form :

Private  Limited  Company

 

 

Line of Business :

Importer,  distributor  and  exporter of diamond  and  jewelry  products

 

 

No. of Employees :

01

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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

 

SUPARTH  DIAMOND  CO.,  LTD.

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           ROOM  202,  2nd  FLOOR,  KBS  BUILDING,

                                                                        30, 32, 34, 36, 38  MAHAESAK  3  ROAD, 

                                                                        SURIYAWONGSE, BANGRAK, 

BANGKOK  10500,  THAILAND

TELEPHONE                                         :           [66]   2635-9080,  081  720-0521

FAX                                                      :           [66]   2635-9081

E-MAIL  ADDRESS                                :           palchiragpal@yahoo.com

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS

ESTABLISHED                                      :           2002

REGISTRATION  NO.                           :           0105545087621

CAPITAL REGISTERED                                     :           BHT.   4,000,000

CAPITAL PAID-UP                               :           BHT.   4,000,000

SHAREHOLDER’S  PROPORTION         :           THAI          :    51%

                                                                        INDIAN       :    49%

FISCAL YEAR CLOSING DATE              :           DECEMBER   31            

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                          :           MR. CHIRAG  PRAKASHCHANDRA  SHAH,  INDIAN

                                                                        MANAGING  DIRECTOR           

NO.  OF  STAFF                                   :           1

LINES  OF  BUSINESS                          :           DIAMOND  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 August  23,  2002  as  a  private  limited  company  under  the  name  style  SUPARTH  DIAMOND  CO.,  LTD.,  by  Thai  and Indian  groups,  in order  to  be  engaged  in   jewelry  trading  business. It  currently  employs  1  staff.  

 

The subject’s registered address was initially located at 160/490-491  Silom Rd., Surawongse,  Bangrak,  Bangkok  10500.

 

On  February 18, 2009, subject’s registered address was relocated to Room 202,  2nd  Flr., KBS Building, 30, 32, 34, 36, 38 Mahaesak 3 Rd., Suriyawongse,  Bangrak, Bangkok 10500,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE BOARD OF DIRECTORS

 

     Name

 

Nationality

Age

 

 

 

 

Mr. Chirag  Prakashchandra  Shah

 

Indian

32

Mr. Rahul  Ramesh  Kumar  Shah

 

Indian

27

 

 

AUTHORIZED PERSON

 

One  of  the  above  directors  can  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Mr. Chirag  Prakashchandra  Shah   is  the  Managing  Director.

He  is  Indian  nationality  with  the  age  of  32  years  old. 

 

 

BUSINESS OPERATIONS

 

The  subject is  engaged  in   importing  and  distributing  of  diamonds  &  precious  stones,  as  well  as  exporting   of  local  diamonds,   gemstones  and jewelry  products.

 

PURCHASE

Jewelry  products  are  purchased  from  local  suppliers.

 

IMPORT  

Diamonds  and  precious  stones  are  imported  from  India,  Hong Kong and  Belgium.

 


SALES  [LOCAL]

Diamonds  and  gemstones  are  sold  locally  by  wholesale  to  traders  and  manufacturers. 

 

EXPORT

Jewelry  products,  diamonds  &  gemstones  are  exported  to  Hong Kong,  India,  U.S.A. and  the  countries  in  Europe.

 

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  1  staff.  

 

LOCATION  DETAILS

The  premise  is  rented  for  administrative  office  at  the  heading  address.  Premise  is  located  in a  prime  commercial  area.

 

COMMENT

Domestic  jewelry  business  outlook  is  underpinned  by  strong  sales  from  promising  market.     Its  business  remains  strong  with  increasing  demand   from  jewelry  industry.

 

 

FINANCIAL INFORMATION

 

The  capital  was  registered  at  Bht. 3,000,000  divided  into  30,000 shares of  Bht.  100  each.

           

On  January  25,  2006,  the  capital  was  increased  to Bht. 4,000,000  divided  into  40,000   shares  of  Bht.  100   each   with  fully  paid.

 

THE  SHAREHOLDERS  LISTED  WERE  :  [as  at  February  25,  2012]

       NAME

HOLDING

%

 

 

 

Mr. Chirag  Prakashchandra  Shah

Nationality:  Indian

Address     : 160/316  Silom  Rd.,  Suriyawongse,  Bangrak,

                     Bangkok

19,600

49.00

Ms. Kanokwan  Kongpaisalthavorn

Nationality: Thai

Address     : 61  Lamphu  Rd.,  Wadsamphrayakrai, 

                    Phranakorn,  Bangkok

  4,000

10.00

Ms. Rapeephan  Kanakornwattana

Nationality: Thai

Address     : 120/2  Charoenkrung  Rd.,  Wadphrayakrai, 

                    Bangkorlaem,  Bangkok

  4,000

10.00

Ms. Boonyanuch  Krasiri

Nationality: Thai

Address     : 913  Charoenkrung,  Bangklo,  Bangkorlaem, 

                    Bangkok

  4,000

10.00

Ms. Ajchara  Sereewat

Nationality: Thai

Address     : 150  Moo  4,  Rajburana  Rd.,  Bangmod, 

                    Rajburana,  Bangkok

  4,000

10.00

Ms. Prapisaphan  Kruewal

Nationality: Thai

Address     : 549/179  Charansanitwong  Rd.,  Bangkhunsri, 

                    Bangkoknoi,  Bangkok

  4,000

10.00

Mr. Supakorn  Nam-on

Nationality: Thai

Address     : 28  Moo  7,  Buengsamphan,  Petchabun

     400

1.00

 

Total  Shareholders  :  7

 

Share  Structure  [as  at  February  25,  2012]

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

6

20,400

51.00

Foreign - Indian

1

19,600

49.00

 

Total

 

7

 

40,000

 

100.00

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO. :

Mr. Surin  Ruengpetch  No.  3741

 


BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published  for  December  31,  2011  &  2010  were:

          

ASSETS

                                                                                                

Current Assets

2011

2010

 

 

 

Cash  and Cash Equivalents            

1,784,289.02

859,038.43

Trade  Accounts  Receivable

72,861,528.36

39,016,788.10

Inventories                      

34,890,677.14

50,266,737.10

 

Total  Current  Assets                

 

109,536,494.52

 

90,142,563.63

 

Deposit

 

12,000.00

 

12,000.00

 

Total  Assets                 

 

109,548,494.52

 

90,154,563.63

 

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2011

2010

 

 

 

Trade  Account  Payable

158,625.09

81,186,377.31

Other  Current  Liabilities             

56,595.42

586,603.84

 

Total Current Liabilities

 

215,220.51

 

81,772,981.15

 

Total  Liabilities            

 

215,220.51

 

81,772,981.15

 

 

 

Shareholders' Equity

 

 

 

 

 

Share  capital : Baht  100  par  value 

  authorized,  issued  and  fully 

  paid  share  capital  40,000  shares

 

 

4,000,000.00

 

 

4,000,000.00

 

Capital  Paid                      

 

4,000,000.00

 

4,000,000.00

Retained  Earning - Unappropriated                

5,293,233.97

4,381,582.48

 

Total Shareholders' Equity

 

9,293,233.97

 

8,381,582.48

 

Total Liabilities  &  Shareholders'  Equity

 

109,548,494.52

 

90,154,563.63

                                                


PROFIT & LOSS ACCOUNT

 

 

Revenue

2011

2010

 

 

 

Sales                                         

119,487,055.47

94,603,246.79

Other Income

-

997,893.34

 

Total  Revenues           

 

119,487,055.47

 

95,601,140.13

 

Expenses

 

 

 

 

 

Cost  of  Goods  Sold                  

116,667,466.58

91,868,429.49

Selling  & Administrative  Expenses

1,761,341.98

1,995,556.88

 

Total Expenses             

 

118,428,808.56

 

93,863,986.37

 

Profit / [Loss]  before  Financial Cost &

  Income  Tax

 

 

1,058,246.91

 

 

1,737,153.76

Financial Cost

-

-

 

Profit  before Income Tax

 

1,058,246.91

 

1,737,153.76

Income  Tax

[146,595.42]

[318,391.66]

 

Net  Profit / [Loss]

 

911,651.49

 

1,418,762.10

 

Note:

Please  be  informed  that  the  financial  statements  as  of  December  31,  2011 &  2010  were  obtained  from the  original  copy  at  the Commercial  Registration  Department  which  we  found  the  mistake  in  the Liabilities  &  Shareholders’  Equity  for  the  year  2011.   

 

We  had  therefore  contacted  the  company  for  the  clarification  but  the  company’s  officer  informed  us  that  the  company  hired  the  account  firm  to  proceed  the  financial  statements,  and  Mr.  Chirag  Prakashchandra  Shah, the  Managing  Director  is  in  abroad  during  investigation.  As  a  result,  we  could  not  contact  him  for  clarification.


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.52.70

UK Pound

1

Rs.84.51

Euro

1

Rs.68.16

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.