MIRA INFORM REPORT

Report Date :

26.07.2013

IDENTIFICATION DETAILS

Name :	TIA DIAM CO., LTD.
Registered Office :	Room 185b, 26^th Floor, Gems Tower Building, 1249/185 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500
Country :	Thailand
Financials (as on) :	31.12.2012
Date of Incorporation :	25.08.2011
Com. Reg. No.:	0105554113116
Legal Form :	Private Limited Company
Line of Business :	Importer and Distributor of Diamonds and Gemstones
No. of Employees :	1

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

TIA DIAM CO., LTD.

SUMMARY

BUSINESS ADDRESS : ROOM 185B, 26^th FLOOR, GEMS TOWER BUILDING,

1249/185 CHAROENKRUNG ROAD, SURIYAWONGSE,

BANGRAK, BANGKOK 10500, THAILAND

TELEPHONE : [66] 2266-4200

FAX : [66] 2266-4200

E-MAIL ADDRESS : -

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2011

REGISTRATION NO. : 0105554113116

TAX ID NO. : 3034672571

CAPITAL REGISTERED : BHT. 2,000,000

CAPITAL PAID-UP : BHT. 2,000,000

SHAREHOLDER’S PROPORTION : THAI : 51.00%

INDIAN : 49.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. GAURAV DAGARIA, INDIAN

MANAGING DIRECTOR

NO. OF STAFF : 1

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 August 25, 2011 as a private limited company under the registered name TIA DIAM CO., LTD. by Thai and Indian groups, with the business objective to import and distribute diamonds and gemstones for jewelry trading and production industry. It currently employs 1 staff.

The subject’s registered address was initially located at 24^th Floor, ITF-Silom Palace Building, 160/567 Silom Rd., Suriyawongse, Bangrak, Bangkok 10500.

On April 24, 2012, its registered address was relocated to Room 185B, 26^th Floor, Gems Tower Building, 1249/185 Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok 10500, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Mr. Gaurav Dagaria

AUTHORIZED PERSON

Mr. Gaurav Dagaria signs on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Gaurav Dagaria 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 diamonds and gemstones for jewelry trading and productions. Its business has been started in the middle of 2012.

PURCHASE

Most of the products are imported from India, and Hong Kong, the remaining is purchased from local suppliers.

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

Bangkok Bank Public Co., Ltd.

EMPLOYMENT

The subject currently 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

Though the subject was established in August 2011, it has actually started commercial business activities in 2012. However, subject’s business performance has grown slowly amid uncertainty market and decline consumption.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2013]

NAME	HOLDING	%
Mr. Gaurav Dagaria Nationality: Indian Address : Mumbai, India	6,500	32.50
Ms. Sunantha Poompetch Nationality: Thai Address : 5/1 Moo 14, Sapansung, Bangkok	3,600	18.00
Mr. Benjamin Sitthivanich Nationality: Thai Address : 22/39 Moo 8, Bangbon, Bangkok	3,600	18.00
Ms. Priyanga Jain Nationality: Indian Address : New Delhi, India	3,300	16.50
Ms. Orawan Channoom Nationality: Thai Address : 160/567 Silom Rd., Suriyawongse, Bangrak, Bangkok	3,000	15.00

Total Shareholders : 5

Share Structure [as at April 30, 2013]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	10,200	51.00
Foreign-Indian	2	9,800	49.00
Total	5	20,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mrs. Suthiwa Atianuwat No. 6397

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2012 and 2011 were:

ASSETS

Current Assets	2012	2011
Cash and Cash Equivalents	368,725.15	62,710.00
Trade Account and Other Receivable	242,969.35	11,134.25
Short-term Lending to Director	535,000.00	1,600,000.00
Other Current Assets	4,407.54	-
Total Current Assets	1,151,102.04	1,673,844.25
Equipment	56,445.01	-
Total Assets	1,207,547.05	1,673,844.25

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2012	2011
Other Payable	400,793.70	6,000.00
Other Current Liabilities	5,380.00	4,600.00
Total Current Liabilities	406,173.70	10,600.00
Total Liabilities	406,173.70	10,600.00
Shareholders' Equity
Share capital : Baht 100 value authorized, issued and fully paid share capital 20,000 shares	2,000,000.00	2,000,000.00
Capital Paid	2,000,000.00	2,000,000.00
Retained Earning - Unappropriated	[1,198,626.65]	[336,755.75]
Total Shareholders' Equity	801,373.35	1,663,244.25
Total Liabilities & Shareholders' Equity	1,207,547.05	1,673,844.25

PROFIT & LOSS ACCOUNT

Revenue	2012	Aug. 25, 2011 - Dec. 31, 2011
Sales	1,627,704.01	-
Other Income	16,050.00	11,134.25
Total Revenues	1,643,754.01	11,134.25
Expenses
Cost of Sold Goods	1,464,857.30	-
Administrative Expenses	1,040,767.61	347,890.00
Total Expenses	2,505,624.91	347,890.00
Net Profit / [Loss]	[861,870.90]	[336,755.75]

FINANCIAL ANALYSIS

ITEM	UNIT	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.83	157.91
QUICK RATIO	TIMES	2.82	157.91
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	28.84	-
TOTAL ASSETS TURNOVER	TIMES	1.35	-
INVENTORY CONVERSION PERIOD	DAYS	-	-
INVENTORY TURNOVER	TIMES	-	-
RECEIVABLES CONVERSION PERIOD	DAYS	54.48	-
RECEIVABLES TURNOVER	TIMES	6.70	-
PAYABLES CONVERSION PERIOD	DAYS	-	-
CASH CONVERSION CYCLE	DAYS	54.48	-
PROFITABILITY RATIO
COST OF GOODS SOLD	%	90.00	-
SELLING & ADMINISTRATION	%	63.94	-
INTEREST	%	-	-
GROSS PROFIT MARGIN	%	10.99	-
NET PROFIT MARGIN BEFORE EX. ITEM	%	(52.95)	-
NET PROFIT MARGIN	%	(52.95)	-
RETURN ON EQUITY	%	(107.55)	(20.25)
RETURN ON ASSET	%	(71.37)	(20.12)
EARNING PER SHARE	BAHT	(43.09)	(16.84)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.34	0.01
DEBT TO EQUITY RATIO	TIMES	0.51	0.01
TIME INTEREST EARNED	TIMES	-	-
ANNUAL GROWTH
SALES GROWTH	%	-	-
OPERATING PROFIT	%	155.93	-
NET PROFIT	%	(155.93)	-
FIXED ASSETS	%	-	-
TOTAL ASSETS	%	(27.86)	-

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	10.99	Impressive	Industrial Average	7.53
Net Profit Margin	(52.95)	Deteriorated	Industrial Average	(0.23)
Return on Assets	(71.37)	Deteriorated	Industrial Average	(0.32)
Return on Equity	(107.55)	Deteriorated	Industrial Average	(0.65)

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 10.99%. When compared with the industry average, the ratio of the company was higher, 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 -52.95%. 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 -71.37%.

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 -107.55%.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : IMPRESSIVE

LIQUIDITY RATIO

Current Ratio	2.83	Impressive	Industrial Average	2.23
Quick Ratio	2.82
Cash Conversion Cycle	54.48

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 2.83 times in 2012, decrease from 157.91 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 higher, indicated that company was an efficient operator in a dominant position within its industry.

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 2.82 times in 2012, decrease from 157.91 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 55 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Downtrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.34	Impressive	Industrial Average	0.59
Debt to Equity Ratio	0.51	Impressive	Industrial Average	1.54
Times Interest Earned	-		Industrial Average	0.62

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 0.34 less than 0.5, most of the company's assets are financed through equity.

Trend of the average competitors in the same industry for last 5 years

Debt Ratio Uptrend

Times Interest Earned Uptrend

ACTIVITY : EXCELLENT

ACTIVITY RATIO

Fixed Assets Turnover	28.84	Impressive	Industrial Average	6.11
Total Assets Turnover	1.35	Impressive	Industrial Average	1.23
Inventory Conversion Period	-
Inventory Turnover	-		Industrial Average	1.39
Receivables Conversion Period	54.48
Receivables Turnover	6.70	Impressive	Industrial Average	3.23
Payables Conversion Period	-

The company's Account Receivable Ratio is calculated as 6.70 and 0.00 in 2012 and 2011 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2012 increased from 2011. This would suggest the company had good performance in the management of its debt collections.

The company's Total Asset Turnover is calculated as 1.35 times and 0 times in 2012 and 2011 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover Uptrend

Total Assets Turnover Downtrend

Inventory Turnover Uptrend

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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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 30^th 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.58.94
UK Pound	1	Rs.90.47
Euro	1	Rs.77.86

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%)

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