MIRA
INFORM REPORT
|
Report Date : |
18.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
MILLENNIUM DIAMOND CO., LTD. |
|
|
|
|
Registered Office : |
Room 401-A, 4th Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
1999 |
|
|
|
|
Com. Reg. No.: |
0105542022021 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, distributor and exporter of Diamonds, gemstones and jewelry
products |
|
|
|
|
No. of Employees : |
3 |
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, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
MILLENNIUM DIAMOND
CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM 401-A, 4th FLOOR, RASAMEE THAVORN BUILDING,
278 SILOM
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-3967-9
FAX : [66] 2238-3966
MOBILE PHONE : [66]
081 810-4161 [MR. RITESH JITENDRA
DAVE]
E-MAIL ADDRESS : millenniumdiamond@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1999
REGISTRATION NO. : 0105542022021 [Former : 344/2542]
TAX ID NO. : 3021000363
CAPITAL REGISTERED : BHT.
30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI
: 25.50%
INDIAN :
74.50%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RITESH JITENDRA DAVE,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : DIAMONDS, GEMSTONES 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 March
26, 1999 as
a private limited
company under the
name style MILLENNIUM
DIAMOND CO., LTD. by
Thai and Indian
groups, with the
business objective to
trade of diamonds,
gemstones and jewelry
products to both
local and overseas
markets. It currently
employs 3 staff.
The subject’s registered address
was initially located at
30-38 Mahesak Rd.,
Soi 3, Silom,
Bangrak, Bangkok 10500.
On November 24,
2010, its registered address
was relocated to
Room 401-A, 4th Floor,
Rasamee Thavorn Building,
278 Silom Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ritesh Jitendra Dave |
|
Indian |
41 |
|
Mr. Ashish Jitendra Dave |
|
Indian |
33 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ritesh Jitendra
Dave is the
Managing Director.
He is Indian
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject’s activities are
importer, distributor and
re-exporter of diamonds,
specialized in tapers, baguettes, round
brilliant and princess
cut at all
sizes and colors,
as well as
gemstones and jewelry
products. The subject
is also an
exporter of local
products.
PURCHASE
Most of the products
are imported from
suppliers in India,
Republic of China,
Pakistan, South Africa,
and the rest
is purchased locally.
MAJOR SUPPLIER
Sheetal Manufacturing Company
Pvt. Ltd. : India
SALES
The products are
sold by wholesale
to customers both
domestic and overseas
such as Hong
Kong, Japan, India
and the countries
in Europe.
MAJOR CUSTOMERS
Jewelry Princess Co.,
Ltd. : Thailand
Thai Jewelry Manufacturing
Co., Ltd. : Thailand
Choon Jewelry Co.,
Ltd. : 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 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 cash
or on the
credits term of
30-60 days.
Local bills are
paid on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
[Suriyawongse Branch :
297 Surawong Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
3 staff.
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial area.
COMMENT
The subject’s operating performance in 2013 was moderate. Even though
its sales has
increased, but it
obtained a decrease
in net profit
at the end of
the year. The
subject has increased
its registered capital
to Bht. 30,000,000
in 2014, this
would assist its
financial liquidity flow
and eliminate the
retained earning deficit.
Generally, the subject
would encounter a
tough year for
2014 due to
an economic slowdown,
political uncertainly and
shrinkage of consumer
spending in local
market. Nevertheless, it
anticipate a good
business from overseas
markets.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100
each.
The capital was
increased later as
follows:
Bht. 6,000,000
on February 26,
2001
Bht. 15,000,000
on February 21,
2005
Bht. 30,000,000
on April 29,
2014
The latest
registered capital was
increased to Bht. 30,000,000 divided
into 300,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ritesh Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
142,000 |
47.33 |
|
Mr. Ashish Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
81,500 |
27.17 |
|
Mr. Charanrat Chachai Nationality: Thai Address : 23
Moo 4, T. Phai,
A. Raseesalai, Srisaket |
48,000 |
16.00 |
|
Ms. Lamyai Kongnoon Nationality: Thai Address : 27
Moo 4, T. Thongnean, A. Khanom,
Nakornsrithammarat |
28,500 |
9.50 |
Total Shareholders : 4
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
76,500 |
25.50 |
|
Foreign - Indian |
2 |
223,500 |
74.50 |
|
Total |
4 |
300,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Chokechai Srikantarakit No.
5775
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
87,539.00 |
36,678.00 |
83,931.74 |
|
Trade Accounts Receivable |
53,670,933.25 |
86,421,958.57 |
84,326,952.24 |
|
Inventories |
23,824,147.34 |
32,030,970.35 |
34,896,816.09 |
|
Other Current Assets |
16,129.03 |
12,129.03 |
- |
|
|
|
|
|
|
Total Current Assets
|
77,598,748.62 |
118,501,735.95 |
119,307,700.07 |
|
Fixed Assets |
17.00 |
164,424.62 |
522,668.99 |
|
Total Assets |
77,598,765.62 |
118,666,160.57 |
119,830,369.06 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
40,413,731.38 |
3,016,837.86 |
- |
|
Trade Accounts & Notes Payable |
26,926,687.91 |
47,891,244.49 |
52,062,832.43 |
|
Current Portion of Long-term Loan from Financial Institution |
1,211,055.43 |
1,211,055.43 |
- |
|
Accrued Income Tax |
415,795.02 |
307,148.64 |
859,326.09 |
|
Other Current Liabilities |
137,557.77 |
260,836.45 |
5,900.00 |
|
|
|
|
|
|
Total Current Liabilities |
69,104,827.51 |
52,687,122.87 |
52,928,058.52 |
|
Long-term Loan from Financial institution, Net
of Current Portion
|
2,878,430.97 |
4,180,235.94 |
- |
|
Long-term Loan from
Related Person |
- |
57,041,006.65 |
63,600,000.00 |
|
Total Liabilities |
71,983,258.48 |
113,908,365.46 |
116,528,058.52 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning - Unappropriated |
[9,384,492.86] |
[10,242,204.89] |
[11,697,689.46] |
|
Total Shareholders' Equity |
5,615,507.14 |
4,757,795.11 |
3,302,310.54 |
|
Total Liabilities &
Shareholders' Equity |
77,598,765.62 |
118,666,160.57 |
119,830,369.06 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
140,601,316.62 |
118,969,356.30 |
132,576,811.46 |
|
Other Income |
6,015,151.60 |
817,112.26 |
- |
|
Total Revenues |
146,616,468.22 |
119,786,468.56 |
132,576,811.46 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
138,999,814.34 |
112,215,773.02 |
128,154,629.64 |
|
Selling Expenses |
70,792.55 |
79,751.34 |
- |
|
Administrative Expenses |
4,321,500.88 |
4,514,275.61 |
5,564,115.00 |
|
Total Expenses |
143,392,107.77 |
116,809,799.97 |
133,718,744.64 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
3,224,360.45 |
2,976,668.59 |
[1,141,933.18] |
|
Financial Cost |
[1,638,341.86] |
[832,510.22] |
- |
|
Profit before Income Tax |
1,586,018.59 |
2,144,158.37 |
[1,141,933.18] |
|
Income Tax |
[728,306.56] |
[688,673.80] |
[994,326.09] |
|
|
|
|
|
|
Net Profit / [Loss] |
857,712.03 |
1,455,484.57 |
[2,136,259.27] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
2.25 |
2.25 |
|
QUICK RATIO |
TIMES |
0.78 |
1.64 |
1.59 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8,270,665.68 |
723.55 |
253.65 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.81 |
1.00 |
1.11 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
62.56 |
104.19 |
99.39 |
|
INVENTORY TURNOVER |
TIMES |
5.83 |
3.50 |
3.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
139.33 |
265.14 |
232.16 |
|
RECEIVABLES TURNOVER |
TIMES |
2.62 |
1.38 |
1.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
70.71 |
155.77 |
148.28 |
|
CASH CONVERSION CYCLE |
DAYS |
131.18 |
213.56 |
183.27 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.86 |
94.32 |
96.66 |
|
SELLING & ADMINISTRATION |
% |
3.12 |
3.86 |
4.20 |
|
INTEREST |
% |
1.17 |
0.70 |
- |
|
GROSS PROFIT MARGIN |
% |
5.42 |
6.36 |
3.34 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.29 |
2.50 |
(0.86) |
|
NET PROFIT MARGIN |
% |
0.61 |
1.22 |
(1.61) |
|
RETURN ON EQUITY |
% |
15.27 |
30.59 |
(64.69) |
|
RETURN ON ASSET |
% |
1.11 |
1.23 |
(1.78) |
|
EARNING PER SHARE |
BAHT |
5.72 |
9.70 |
(14.24) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.93 |
0.96 |
0.97 |
|
DEBT TO EQUITY RATIO |
TIMES |
12.82 |
23.94 |
35.29 |
|
TIME INTEREST EARNED |
TIMES |
1.97 |
3.58 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
18.18 |
(10.26) |
|
|
OPERATING PROFIT |
% |
8.32 |
(360.67) |
|
|
NET PROFIT |
% |
(41.07) |
168.13 |
|
|
FIXED ASSETS |
% |
(99.99) |
(68.54) |
|
|
TOTAL ASSETS |
% |
(34.61) |
(0.97) |
|
ANNUAL GROWTH : ACCEPTABLE
An annual sales growth is 18.18%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.42 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
0.61 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
1.11 |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
15.27 |
Impressive |
Industrial Average |
14.14 |
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 5.42%. 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. Net Profit Margin ratio is 0.61%,
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. When compared with the
industry average, it was lower, the company's figure is 1.11%.
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 15.27%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.12 |
Acceptable |
Industrial Average |
1.60 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion Cycle |
131.18 |
|
|
|
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 1.12 times in 2013, decrease from 2.25 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 0.78 times in 2013,
decrease from 1.64 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 132 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.93 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
12.82 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
1.97 |
Impressive |
Industrial Average |
- |
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 higher the percentage means that the company is using less equity
and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.97 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 0.93 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 Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
8,270,665.68 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.81 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
62.56 |
|
|
|
|
Inventory Turnover |
5.83 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
139.33 |
|
|
|
|
Receivables Turnover |
2.62 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
70.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.62 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 104 days at the
end of 2012 to 63 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.5 times in year 2012 to 5.83 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.81 times and 1
times in 2013 and 2012 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 Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.14 |
|
|
1 |
Rs.103.00 |
|
Euro |
1 |
Rs.81.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.