MIRA INFORM REPORT

 

 

Report Date :

12.12.2014

 

IDENTIFICATION DETAILS

 

Name :

RENA DIAM CO., LTD

 

 

Registered Office :

24th  Floor,  Itf-Silom  Palace, 160/546  Silom  Road, Suriyawongse, Bangrak,  Bangkok 10500

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15.07.2010

 

 

Com. Reg. No.:

0105553086093

 

 

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 :

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

 

 

Source : CIA

Company name

 

RENA DIAM CO., LTD.

 

 

SUMMARY

 

BUSINESS  ADDRESS              :           24th  FLOOR,  ITF-SILOM  PALACE, 

                                                                        160/546  SILOM  ROAD,  SURIYAWONGSE,

                                                                        BANGRAK,  BANGKOK  10500,  THAILAND

TELEPHONE                                        :           [66]   2631-8871,  081  612-7279,  081  672-7279

FAX                                                      :           [66]   2631-8871

E-MAIL ADDRESS                                :           -

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS

 

ESTABLISHED                        :           2010

REGISTRATION  NO.                           :           0105553086093

TAX  ID  NO.                                         :           3034036038

CAPITAL REGISTERED                        :           BHT.   4,000,000

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

SHAREHOLDER’S  PROPORTION        :           THAI          :   51.00%

                                                                        INDIAN      :   49.00%

FISCAL YEAR CLOSING DATE             :           DECEMBER   31            

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                         :           MR.  SANDIP  KISHORCHANDRA  MEHTA,  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  July  15,  2010  as  a  private  limited  company  under  the  registered  name  RENA  DIAM  CO., LTD.,  by  Thai and  Indian  groups,  with  the  business  objective  to  import  and  distribute  various  types  of  diamonds  and  gemstones  for  jewelry  business.  It  currently  employs  1  staff.  

 

The  subject’s  registered  address  is  24th  Floor,  ITF-Silom  Palace,  160/546  Silom  Rd.,  Suriyawongse, Bangrak, Bangkok  10500,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE  BOARD  OF  DIRECTOR

 

Mr. Sandip  Kishorchandra  Mehta

 

 

AUTHORIZED  PERSON

 

The  above  director  signs  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Mr. Sandip  Kishorchandra  Mehta   is  the  Managing  Director.

He  is  Indian  nationality  with  the  age  of  39  years  old.  

 

 

BUSINESS OPERATIONS

 

The  subject  is  engaged  in  importing  and distributing  various  types  of  diamonds  and  gemstones  for  jewelry  production.

 

 

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  by  wholesale  to  jewelry  shops  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  according  to  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.

 

Note

In  2012,  the  subject  stopped  its  business  operation  temporarily,  however  it  has  resumed  its  activity  in  2013.

 

 

COMMENT

 

The  subject  has  small  business  engaging  in  importing  and  distributing  diamonds  and  gemstones  to  local  jewelry  business.  Sales  were  slow  in  the  previous  year  due  to  it  had  stopped  the  business  operation  for  a while.  However,   subject  resumed   its  business  in  the  year  2013  which   has  slowly  grown.  

 

 

FINANCIAL INFORMATION

 

The  capital  was  registered  at  Bht. 4,000,000  divided  into 40,000  shares  of  Bht.  100     each  with  fully  paid.

 

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

 

       NAME

HOLDING

%

 

 

 

Mr. Mahesh  Damodar  Nambia

Nationality:  Indian

Address     :  160/546  ITF-Silom  Palace,  Silom  Rd.,

                     Suriyawongse,  Bangrak,  Bangkok  

19,000

47.50

Mrs. Pranee  Songsiri

Nationality:  Thai

Address     :  263/4  Moo  1,  Prachauthis  Rd.,  Thungkru,

                     Bangkok 

  6,800

17.00

Mrs. Varaporn  Chomemanee

Nationality:  Thai

Address     :  36/49  Moo  1,  Prachauthis  Rd.,  Thungkru,

                     Bangkok

  6,800

17.00

Ms. Pornthip  Netrseengoen

Nationality:  Thai

Address     :  258/15  Moo  5,  Prachauthis  Rd.,  Thungkru,

                     Bangkok

  6,800

17.00

Mr. Sandip  Kishorchandra  Mehta

Nationality:  Indian

Address     :  160/546  ITF-Silom  Palace,  Silom  Rd.,

                     Suriyawongse,  Bangrak,  Bangkok     

  600

1.50

 

Total  Shareholders  :   5

 

Share  Structure  [as  at  April  30,  2013]

 

Nationality

Shareholders

No. of  Shares

% 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. Anchalee  Khaola-or  No.   10363

 

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published  for  December  31,  2012,  2011  &  2010 were:

          

ASSETS

                                                                                  

Current Assets

2012

2011

2010

 

 

 

 

Cash  and Cash Equivalents

130,994.29

70,667.94

61,081.74

Inventories

750,950.35

-

3,748,067.72

Lending  to  Related  Person

4,000,000.00

5,000,000.00

3,500,000.00

Other  Current  Assets                  

63,062.69

25,701.64

267,459.89

 

 

 

 

Total  Current  Assets                

4,945,007.33

5,096,369.58

7,576,609.35

 

Equipment

 

15,276.40

 

15,276.40

 

19,575.47

 

Total  Assets                 

 

4,960,283.73

 

5,111,645.98

 

7,596,184.82

 

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2012

2011

2010

 

 

 

 

Trade  Accounts  Payable

1,289,902.04

1,438,951.69

3,788,068.46

Other  Current  Liabilities             

3,000.00

12,340.00

8,750.00

 

 

 

 

Total Current Liabilities

1,292,902.04

1,451,291.69

3,796,818.46

 

Total  Liabilities            

 

1,292,902.04

 

1,451,291.69

 

3,796,818.46

 

 

 

 

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

 

 

4,000,000.00

 

 

 

 

Capital  Paid                     

4,000,000.00

4,000,000.00

4,000,000.00

Retained  Earning - Unappropriated              

[332,618.31]

[339,645.71]

[200,633.64]

 

Total  Shareholders' Equity

 

3,667,381.69

 

3,660,354.29

 

3,799,366.36

 

Total  Liabilities  &  Shareholders' 

  Equity

 

 

4,960,283.73

 

 

5,111,645.98

 

 

7,596,184.82

 

                                         

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2012

2011

July  15, 2010 -  Dec.  31,  2010

 

 

 

 

Sales  Income                                        

-

4,492,889.00

-

Other  Income                

10,027.40

36,250.73

5,095.89

 

Total  Revenues           

 

10,027.40

 

4,529,139.73

 

5,095.89

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods   Sold                           

-

4,427,598.46

-

Selling  & Administrative  Expenses

3,000.00

202,870.11

205,729.53

Loss  on  Exchange  Rate

-

37,683.23

-

 

Total Expenses             

 

3,000.00

 

4,668,151.80

 

205,729.53

 

 

 

 

Net  Profit / [Loss]

7,027.40

[139,012.07]

[200,633.64]

 

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2012

2011

2010

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

3.82

3.51

2.00

QUICK RATIO

TIMES

3.20

3.49

0.94

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

-

294.11

-

TOTAL ASSETS TURNOVER

TIMES

-

0.88

-

INVENTORY CONVERSION PERIOD

DAYS

-

-

-

INVENTORY TURNOVER

TIMES

-

-

-

RECEIVABLES CONVERSION PERIOD

DAYS

-

-

-

RECEIVABLES TURNOVER

TIMES

-

-

-

PAYABLES CONVERSION PERIOD

DAYS

-

118.62

-

CASH CONVERSION CYCLE

DAYS

-

(118.62)

-

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

-

98.55

-

SELLING & ADMINISTRATION

%

-

4.52

-

INTEREST

%

-

-

-

GROSS PROFIT MARGIN

%

-

2.26

-

NET PROFIT MARGIN BEFORE EX. ITEM

%

-

(3.09)

-

NET PROFIT MARGIN

%

-

(3.09)

-

RETURN ON EQUITY

%

0.19

(3.80)

(5.28)

RETURN ON ASSET

%

0.14

(2.72)

(2.64)

EARNING PER SHARE

BAHT

0.18

(3.48)

(5.02)

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.26

0.28

0.50

DEBT TO EQUITY RATIO

TIMES

0.35

0.40

1.00

TIME INTEREST EARNED

TIMES

-

-

-

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(100.00)

-

 

OPERATING PROFIT

%

(105.06)

(30.71)

 

NET PROFIT

%

105.06

30.71

 

FIXED ASSETS

%

-

(21.96)

 

TOTAL ASSETS

%

(2.96)

(32.71)

 

 

 

ANNUAL GROWTH : RISKY

 

An annual sales growth is -100%. Turnover has decreased from THB 4,492,889.00 in 2011 to THB 0.00 in 2012. While net profit has increased from THB -139,012.07 in 2011 to THB 7,027.40 in 2012. And total assets has decreased from THB 5,111,645.98 in 2011 to THB 4,960,283.73 in 2012.                 

                       

PROFITABILITY : RISKY

 

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

-

 

Industrial Average

1.88

Net Profit Margin

-

 

Industrial Average

0.04

Return on Assets

0.14

Deteriorated

Industrial Average

0.43

Return on Equity

0.19

Deteriorated

Industrial Average

1.93

 

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 0.14%.

 

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 0.19%.

 

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

Return on Assets                       Uptrend

Return on Equity                       Uptrend

 

LIQUIDITY : EXCELLENT

 

 

LIQUIDITY RATIO

 

Current Ratio

3.82

Impressive

Industrial Average

1.72

Quick Ratio

3.20

 

 

 

Cash Conversion Cycle

-

 

 

 

 

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 3.82 times in 2012, increased from 3.51 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 3.2 times in 2012, decreased from 3.49 times, although excluding inventory so the company still have good short-term financial strength.

 

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

Current Ratio                 Downtrend

 

LEVERAGE : EXCELLENT

 

 

LEVERAGE RATIO

 

Debt Ratio

0.26

Impressive

Industrial Average

0.76

Debt to Equity Ratio

0.35

Impressive

Industrial Average

3.41

Times Interest Earned

-

 

Industrial Average

0.28

 

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 0.26 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                Downtrend

 

ACTIVITY : RISKY

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

-

 

Industrial Average

2.53

Total Assets Turnover

-

 

Industrial Average

14.17

Inventory Conversion Period

-

 

 

 

Inventory Turnover

-

 

Industrial Average

43.91

Receivables Conversion Period

-

 

 

 

Receivables Turnover

-

 

Industrial Average

18.17

Payables Conversion Period

-

 

 

 

 

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

Fixed Assets Turnover               Downtrend

Total Assets Turnover                Uptrend

Inventory Turnover                     Uptrend

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.

-            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.62.20

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 

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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