MIRA
INFORM REPORT
|
Report Date : |
27.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
OM DIAMOND CO., LTD. |
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Registered Office : |
28th
Floor, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.09.1993 |
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Com. Reg. No.: |
0105536103864 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Distributor & Exporter of Diamonds |
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No. of Employees : |
4 |
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 |
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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) |
|
|
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 and address
OM DIAMOND CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 28th FLOOR,
TELEPHONE : [66] 2630-2700-2
FAX : [66] 2630-2700
E-MAIL
ADDRESS : omdiam@asianet.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536103864 [Former : 6960/2536]
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
11,000,000
SHAREHOLDER’S PROPORTION : THAI :
85%
INDIAN
: 15%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DIPAK SHAH THANAWUTH,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS
IMPORTER, DISTRIBUTOR
& 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 September
10, 1993 as
a private limited
company under the name
style OM DIAMOND
CO., LTD., by Thai
and Indian groups, in order to import and
distribute diamonds to
both local and
overseas markets. It
currently employs 4
staff.
The subject’s registered
address is 28th Flr., Jewellery Trade
Center, 919/352-353 Silom Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kawan Prakash Shah
|
|
Indian |
23 |
|
Mr. Dipak Shah Thanawuth |
|
Thai |
40 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Dipak Shah
Thanawuth is the
Managing Director.
He is Thai nationality with
the age of 40 years
old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and exporting various
types and sizes
of diamonds, mainly
natural white diamonds
and natural color
diamonds.
PURCHASE
The
products are purchased
from both local
and overseas suppliers
mainly in India,
Pakistan and Africa.
DISTRIBUTION
The products are sold
by wholesale to traders
and jewelry manufacturers
in both domestic [80%] and
overseas countries [20%], such as Belgium, Australia, Japan, Hong Kong, Republic
of China, India,
United Kingdom, Italy,
U.S.A, France and
Asian countries.
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.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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
L/C at sight
or T/T.
BUSINESS TRANSACTION
The products are
sold to wholesalers and end-users
by credit, with the maximum credit given at 30-60 days.
The subject is not found to have
problem on its
account receivable.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The
subject employs 4
staff [office and
sales 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 reported its
sales revenue in
2011 similarly to
the year 2010.
In the first
quarter of 2012,
the subject’s sales
is growing steadily
from the orders
of the regular
customers. With an
expansion of its
customer base in
both local and
overseas, the subject
is optimistic for
a good business
prospect this year.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each.
The
capital was increased
later as follows:
Bht. 5,000,000
on April 4, 1995
Bht. 11,000,000
on July 14, 1998
Bht. 20,000,000
on March 31,
2011
The
latest registered capital
was increased to
Bht. 20,000,000 divided into
200,000 shares of Bht.
100 each.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2011]
at Bht. 11 million
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dipak Shah
Thanawuth Nationality: Thai Address : 101/8 Trok
Saphanyao, Siphaya, Bangrak,
Bangkok |
93,500 |
85.00 |
|
Mr. Shah Pankash Mansuklal
Nationality: Indian Address : Mumbai, India |
5,500 |
5.00 |
|
Mr. Pallavi Grakash Shah Nationality: Indian Address : Mumbai, India |
5,500 |
5.00 |
|
Mr. Kawan Prakash Shah Nationality: Indian Address : Mumbai, India |
5,500 |
5.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
93,500 |
85.00 |
|
Foreign - Indian |
3 |
16,500 |
15.00 |
|
Total |
4 |
110,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Vasana Tanmongkol
No. 1888
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash
Equivalents |
249,976.82 |
248,435.14 |
|
Trade Accounts Receivable |
24,197,476.82 |
28,617,235.77 |
|
Inventories |
58,470,744.90 |
137,949,001.05 |
|
Other Current Assets
|
409,277.63 |
302,403.92 |
|
Total Current Assets
|
83,327,476.17 |
167,117,075.88 |
|
|
|
|
|
Fixed Assets |
3,162,494.05 |
3,473,004.31 |
|
Non-current Assets |
|
|
|
Cash at Bank Pledged as
a Collateral |
6,000,000.00 |
- |
|
Other Assets |
14,434.58 |
13,500.00 |
|
Total Assets |
92,504,404.80 |
170,603,580.19 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft |
29,253,711.26 |
9,424,684.36 |
|
Trade Accounts Payable |
27,853,221.53 |
90,350,024.44 |
|
Short-term Loan from
Related Person |
13,520,000.00 |
57,080,000.00 |
|
Other Current Liabilities |
10,440,887.46 |
4,228,933.16 |
|
Total Current Liabilities |
81,067,820.25 |
161,083,641.96 |
|
Total Liabilities |
81,067,820.25 |
161,083,641.96 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 110,000 shares |
11,000,000.00 |
11,000,000.00 |
|
Capital Paid |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning -
Unappropriated |
436,584.55 |
[1,480,061.77] |
|
Total Shareholders' Equity |
11,436,584.55 |
9,509,938.23 |
|
Total Liabilities & Shareholders' Equity |
92,504,404.80 |
170,603,580.19 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
162,357,728.45 |
101,472,686.61 |
|
Other Income |
3,328,226.47 |
3,495,732.85 |
|
Total Revenues |
165,685,954.92 |
104,968,419.46 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
147,741,416.80 |
92,073,945.52 |
|
Selling Expenses |
8,002,622.10 |
5,363,187.77 |
|
Administrative Expenses |
6,173,030.03 |
5,615,251.40 |
|
Total Expenses |
161,917,068.93 |
103,052,384.69 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
3,768,885.99 |
1,916,034.77 |
|
Financial Cost |
[869,855.71] |
[669,725.91] |
|
Income Tax 30% |
[982,383.96] |
[582,518.57] |
|
Net Profit / [Loss] |
1,916,646.32 |
663,790.29 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.03 |
1.04 |
|
QUICK RATIO |
TIMES |
0.30 |
0.18 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
51.34 |
29.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.76 |
0.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
144.45 |
546.86 |
|
INVENTORY TURNOVER |
TIMES |
2.53 |
0.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.40 |
102.94 |
|
RECEIVABLES TURNOVER |
TIMES |
6.71 |
3.55 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
68.81 |
358.17 |
|
CASH CONVERSION CYCLE |
DAYS |
130.04 |
291.63 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.00 |
90.74 |
|
SELLING & ADMINISTRATION |
% |
8.73 |
10.82 |
|
INTEREST |
% |
0.54 |
0.66 |
|
GROSS PROFIT MARGIN |
% |
11.05 |
12.71 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.32 |
1.89 |
|
NET PROFIT MARGIN |
% |
1.18 |
0.65 |
|
RETURN ON EQUITY |
% |
16.76 |
6.98 |
|
RETURN ON ASSET |
% |
2.07 |
0.39 |
|
EARNING PER SHARE |
BAHT |
17.42 |
6.03 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.94 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.09 |
16.94 |
|
TIME INTEREST EARNED |
TIMES |
4.33 |
2.86 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
60.00 |
|
|
OPERATING PROFIT |
% |
96.70 |
|
|
NET PROFIT |
% |
188.74 |
|
|
FIXED ASSETS |
% |
(8.94) |
|
|
TOTAL ASSETS |
% |
(45.78) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.05 |
Impressive |
Industrial Average |
9.15 |
|
Net Profit Margin |
1.18 |
Impressive |
Industrial
Average |
0.09 |
|
Return on Assets |
2.07 |
Impressive |
Industrial
Average |
0.15 |
|
Return on Equity |
16.76 |
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 revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. Gross Profit Margin is 11.05%. 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. Net Profit Margin ratio is 1.18%,
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
2.07%, 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 16.76%, 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 |
1.03 |
Acceptable |
Industrial
Average |
1.80 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
130.04 |
|
|
|
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 1.03 times in 2010, decrease from 1.04 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 0.3 times in 2010,
increase from 0.18 times, then the company has not enough current assets that presumably
can be quickly converted to cash for pay financial obligations.
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 131 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
7.09 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
4.33 |
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 4.34 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 0.88 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 |
51.34 |
Impressive |
Industrial
Average |
10.60 |
|
Total Assets Turnover |
1.76 |
Impressive |
Industrial
Average |
1.57 |
|
Inventory Conversion Period |
144.45 |
|
|
|
|
Inventory Turnover |
2.53 |
Impressive |
Industrial
Average |
2.35 |
|
Receivables Conversion Period |
54.40 |
|
|
|
|
Receivables Turnover |
6.71 |
Impressive |
Industrial
Average |
3.50 |
|
Payables Conversion Period |
68.81 |
|
|
|
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.53.58 |
|
|
1 |
Rs.86.60 |
|
Euro |
1 |
Rs.68.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.