MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
V
SONS DIAMOND CO.,
LTD. |
|
|
|
|
Registered Office : |
Room A3, 6th Floor, Jewellery Trade Center, Building, 919/8 Silom Road, Silom, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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|
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.01.2011 |
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Com. Reg. No.: |
0105554002489 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importing and
distributing of diamonds
and gemstones for
jewelry production |
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No. of Employees : |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 (31.03.2012) |
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 |
Thailand ECONOMIC OVERVIEW
With a
well-developed infrastructure, a free-enterprise economy, generally
pro-investment policies, and strong export industries, Thailand achieved steady
growth due largely to industrial and agriculture exports - mostly electronics,
agricultural commodities, automobiles and parts, and processed foods. Thailand
is trying to maintain growth by encouraging domestic consumption and public
investment to offset weak exports in 2012. Unemployment, at less than 1% of the
labor force, stands as one of the lowest levels in the world, which puts upward
pressure on wages in some industries. Thailand also attracts nearly 2.5 million
migrant workers from neighboring countries. The Thai government is implementing
a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax
reforms designed to lower rates on middle-income earners. The Thai economy has
weathered internal and external economic shocks in recent years. The global
economic severely cut Thailand's exports, with most sectors experiencing
double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded. In late 2011 growth was interrupted by historic flooding in the
industrial areas in Bangkok and its five surrounding provinces, crippling the
manufacturing sector. Industry recovered from the second quarter of 2012 onward
with GDP growth at 5.5% in 2012. The government has approved flood mitigation
projects worth $11.7 billion, which were started in 2012, to prevent similar
economic damage, and an additional $75 billion for infrastructure over the next
seven years with a plan to start in 2013.
|
Source : CIA |
Company name
V SONS DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
A3, 6th FLOOR,
JEWELLERY TRADE CENTER
BUILDING, 919/8
SILOM ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2630-1430
FAX :
[66] 2630-1420
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2011
REGISTRATION
NO. : 0105554002489
TAX
ID NO. : 3034318899
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. KISHORKUMAR VALLABHBHAI
VAGHASIYA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on January 7,
2011 as a
private limited company
by Thai and Indian
groups, under the
registered name V SONS
DIAMOND CO., LTD.,
with the business
objective to import
and distribute diamonds
and gemstones for
jewelry production. It
currently employs 2
staff.
The
subject’s registered address
is Room A3, 6th Floor,
Jewellery Trade Center Building, 919/8
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jentikumar Thakorbhai Vaghasiya |
|
Indian |
29 |
|
Mr. Kishorkumar
Vallabhbhai Vaghasiya |
|
Indian |
30 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kishorkumar Vallabhbhai Vaghasiya
is the Managing
Director.
He is Indian
nationality with the
age of 30
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
of diamonds and
gemstones for jewelry
production.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India
and Republic of
China.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
2 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
was established in
January 2011. Its
first year operation
was disclosed at
moderate level. Sell
of diamonds and
gemstones to domestic
consumption is promising,
as well as
baht strengthen also
benefit to importer
and local consumers.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into
20,000 shares of Bht. 100
each.
On
July 22, 2011,
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
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Jentikumar Thakorbhai Vaghasiya Nationality: Indian Address : 919/8
Silom Rd., Silom,
Bangrak,
Bangkok |
11,600 |
29.00 |
|
Mr. Kishorkumar
Vallabhbhai Vaghasiya Nationality: Indian Address : 919/8
Silom Rd., Silom,
Bangrak,
Bangkok |
8,000 |
20.00 |
|
Ms. Parichart Sa-ardeiam Nationality: Thai Address : 78/122
Prachachuen Rd., Bangsue,
Bangsue, Bangkok |
6,800 |
17.00 |
|
Mr. Tawach Ampai Nationality: Thai Address : 100/403 Soi
Kaehaklongtoey 4, Klongtoey, Bangkok |
6,800 |
17.00 |
|
Mrs. Aree Sribuathong Nationality: Thai Address : 88
Rimtangrodfaisaitai Rd., Bangsue,
Bangsue, Bangkok |
6,800 |
17.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,400 |
51.00 |
|
Foreign-Indian |
2 |
19,600 |
49.00 |
|
Total |
5 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Piyaluck Sunthawong No.
10794
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 was :
ASSETS
|
Current Assets |
2011 |
|
|
|
|
Cash and Cash Equivalent |
81,204.87 |
|
Trade Accounts Receivable |
11,106,839.33 |
|
Short-term Lending |
2,200,000.00 |
|
Inventories |
8,160,771.01 |
|
Other Current Assets |
40,863.96 |
|
|
|
|
Total Current Assets
|
21,589,679.17 |
|
Total Assets |
21,589,679.17 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
|
|
|
|
Trade Accounts & Other Payable |
16,736,482.11 |
|
Accrued Income Tax |
106,034.60 |
|
Other Current Liabilities |
5,120.15 |
|
|
|
|
Total Current Liabilities |
16,847,636.86 |
|
Total Liabilities |
16,847,636.86 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
|
|
|
|
Capital Paid |
4,000,000.00 |
|
Retained Earning- Unappropriated |
742,042.31 |
|
Total Shareholders' Equity |
4,742,042.31 |
|
Total Liabilities & Shareholders' Equity |
21,589,679.17 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
Jan. 7,
2011 - Dec. 31,
2011 |
|
|
|
|
Sales Income |
17,415,762.30 |
|
Other Income |
43,276.71 |
|
Total Revenues |
17,459,039.01 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
15,411,140.93 |
|
Selling Expenses |
335,700.00 |
|
Administrative Expenses |
864,121.17 |
|
Total Expenses |
16,610,962.10 |
|
Profit / [Loss] before Income
Tax |
848,076.91 |
|
Income Tax |
[106,034.60] |
|
|
|
|
Net Profit / [Loss] |
742,042.31 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
|
QUICK RATIO |
TIMES |
0.79 |
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.81 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
193.28 |
|
INVENTORY TURNOVER |
TIMES |
1.89 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
232.78 |
|
RECEIVABLES TURNOVER |
TIMES |
1.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
396.39 |
|
CASH CONVERSION CYCLE |
DAYS |
29.67 |
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
COST OF GOODS SOLD |
% |
88.49 |
|
SELLING & ADMINISTRATION |
% |
6.89 |
|
INTEREST |
% |
- |
|
GROSS PROFIT MARGIN |
% |
11.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.87 |
|
NET PROFIT MARGIN |
% |
4.26 |
|
RETURN ON EQUITY |
% |
15.65 |
|
RETURN ON ASSET |
% |
3.44 |
|
EARNING PER SHARE |
BAHT |
18.55 |
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
DEBT RATIO |
TIMES |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.55 |
|
TIME INTEREST EARNED |
TIMES |
- |
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.76 |
Impressive |
Industrial
Average |
9.66 |
|
Net Profit Margin |
4.26 |
Impressive |
Industrial
Average |
(0.20) |
|
Return on Assets |
3.44 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
15.65 |
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 11.76%. 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 4.26% 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
3.44%, 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 15.65%, 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 |
1.28 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.79 |
|
|
|
|
Cash Conversion Cycle |
29.67 |
|
|
|
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 1.28 times in 2011, increased from 0 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 0.79 times in 2011,
increased from 0 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 30 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
3.55 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.78 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 |
- |
|
Industrial
Average |
10.73 |
|
Total Assets Turnover |
0.81 |
Acceptable |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
193.28 |
|
|
|
|
Inventory Turnover |
1.89 |
Satisfactory |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
232.78 |
|
|
|
|
Receivables Turnover |
1.57 |
Deteriorated |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
396.39 |
|
|
|
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.