MIRA
INFORM REPORT
|
Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DECENT DIAM CO., LTD. |
|
|
|
|
Registered Office : |
Room 6, 11th Floor, Bangkok Gems & Jewellery Building, 322/17 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
31.07.1996 |
|
|
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Com. Reg. No.: |
0105539084381 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of diamonds and gemstones |
|
|
|
|
No of Employees : |
2 |
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 |
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|
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Payment Behaviour : |
Slow |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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
DECENT DIAM
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
6, 11th FLOOR,
BANGKOK GEMS & JEWELLERY BUILDING,
322/17 SURAWONG
ROAD, SIPHAYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2631-5965
FAX :
[66] 2631-5965
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539084381
TAX
ID NO. : 3011773796
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. HARDIG DUPENDRA
SHAH, 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 July 31,
1996 as a
private limited company
under the name
style DECENT DIAM
CO., LTD., by
Thai and Indian
groups, with the
business objective to
import and distribute
diamonds and gemstones
to domestic market.
It currently employs
2 staff.
The
subject’s registered address
is Room 6, 11th Flr.,
Bangkok Gems &
Jewellery Bldg., 322/17 Surawong
Rd., Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hardig Dupendra Shah |
|
Indian |
29 |
|
Mr. Veetarat Mugesh Kumar
Shah |
|
Indian |
25 |
AUTHORIZED PERSON
One of the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Hardig Dupendra Shah
is the Managing
Director.
He is Indian
nationality with the
age of 29 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
shapes of diamond and
gemstones for jewelry
business.
IMPORT
Most
of the products
are imported from
India, Republic of
China and Hong
Kong.
SALES
The products are
sold locally by
wholesale to traders,
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
according to 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
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 formed in 1996 as an
importer and distributor of
diamond and gemstones.
Its serves mainly
to jewelry business in
domestic market, which is
closely linked to the
conditions of local consumption.
Economy
sluggish and shrinking
domestic consumption has
affected jewelry business
as a whole including
diamonds and gemstones
trade.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into 20,000 shares
of Bht. 100 each.
On October 10,
2002, the 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, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Supaporn Vejkama Nationality: Thai Address : 6
Soi Chaengsanit 10,
Chaengsanit Rd.,
Naimuang, Muang, Ubon Ratchathani |
20,400 |
51.00 |
|
Mr. Hardig Dupendra Shah Nationality: Indian Address : 322/17 Surawong Rd.,
Siphaya,
Bangrak, Bangkok |
19,200 |
48.00 |
|
Mr. Veetarat Mugesh Kumar
Shah Nationality: Indian Address : 322/17 Surawong Rd.,
Siphaya,
Bangrak, Bangkok |
400 |
1.00 |
Total Shareholders : 3
Share
Structure [as at
April 30, 2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
20,400 |
51.00 |
|
Foreign-Indian |
2 |
19,600 |
49.00 |
|
Total |
3 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Marut Makarasane No. 6532
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
116,689.20 |
129,185.08 |
244,362.85 |
|
Trade Accounts Receivable
|
22,767,182.13 |
19,037,681.99 |
4,363,875.53 |
|
Inventories |
1,522,663.00 |
1,225,160.00 |
2,126,008.00 |
|
Advance Payment |
15,990.00 |
- |
- |
|
|
|
|
|
|
Total Current Assets
|
24,422,524.33 |
20,392,027.07 |
6,734,246.38 |
|
|
|
|
|
|
Fixed Assets |
1.00 |
1.00 |
1.00 |
|
Prepaid Income Tax |
22,050.00 |
22,050.00 |
22,050.00 |
|
Guarantee |
4,607.47 |
4,607.47 |
4,607.47 |
|
Total Assets |
24,449,182.80 |
20,418,685.54 |
6,760,904.85 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
24,140,297.50 |
19,843,943.08 |
6,757,004.29 |
|
Other Current Liabilities |
66,085.00 |
114,524.75 |
24,939.33 |
|
|
|
|
|
|
Total Current Liabilities |
24,206,382.50 |
19,958,467.83 |
6,781,943.62 |
|
Total Liabilities |
24,206,382.50 |
19,958,467.83 |
6,781,943.62 |
|
|
|
|
|
|
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 |
[3,757,199.70] |
[3,539,782.29] |
[4,021,038.77] |
|
Total Shareholders' Equity |
242,800.30 |
460,217.71 |
[21,038.77] |
|
Total Liabilities &
Shareholders' Equity |
24,449,182.80 |
20,418,685.54 |
6,760,904.85 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
16,556,817.05 |
20,335,226.69 |
13,653,734.24 |
|
Other Income |
299,581.68 |
30,887.34 |
137,606.02 |
|
Total Revenues |
16,856,398.73 |
20,366,114.03 |
13,791,340.26 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
15,950,324.83 |
18,979,748.02 |
12,569,250.52 |
|
Administrative Expenses |
1,123,491.31 |
845,969.78 |
1,018,000.85 |
|
Total Expenses |
17,073,816.14 |
19,825,717.80 |
13,587,251.37 |
|
Profit / [Loss] before
Income Tax |
[217,417.41] |
540,396.23 |
204,088.89 |
|
Income Tax |
- |
[59,139.75] |
[8,155.33] |
|
|
|
|
|
|
Net Profit / [Loss] |
[217,417.41] |
481,256.48 |
195,933.56 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.01 |
1.02 |
0.99 |
|
QUICK RATIO |
TIMES |
0.95 |
0.96 |
0.68 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
16,556,817.05 |
20,335,226.69 |
13,653,734.24 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.68 |
1.00 |
2.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
34.84 |
23.56 |
61.74 |
|
INVENTORY TURNOVER |
TIMES |
10.48 |
15.49 |
5.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
501.91 |
341.71 |
116.66 |
|
RECEIVABLES TURNOVER |
TIMES |
0.73 |
1.07 |
3.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
552.42 |
381.62 |
196.22 |
|
CASH CONVERSION CYCLE |
DAYS |
(15.66) |
(16.35) |
(17.82) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.34 |
93.33 |
92.06 |
|
SELLING & ADMINISTRATION |
% |
6.79 |
4.16 |
7.46 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
5.47 |
6.82 |
8.95 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.31) |
2.66 |
1.49 |
|
NET PROFIT MARGIN |
% |
(1.31) |
2.37 |
1.44 |
|
RETURN ON EQUITY |
% |
(89.55) |
104.57 |
- |
|
RETURN ON ASSET |
% |
(0.89) |
2.36 |
2.90 |
|
EARNING PER SHARE |
BAHT |
(5.44) |
12.03 |
4.90 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.99 |
0.98 |
1.00 |
|
DEBT TO EQUITY RATIO |
TIMES |
99.70 |
43.37 |
(322.35) |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(18.58) |
48.94 |
|
|
OPERATING PROFIT |
% |
(140.23) |
164.78 |
|
|
NET PROFIT |
% |
(145.18) |
145.62 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
19.74 |
202.01 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -18.58%. Turnover has decreased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY RATIO
|
Gross Profit Margin |
5.47 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
(1.31) |
Deteriorated |
Industrial Average |
0.03 |
|
Return on Assets |
(0.89) |
Deteriorated |
Industrial Average |
0.89 |
|
Return on Equity |
(89.55) |
Deteriorated |
Industrial Average |
4.08 |
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 5.47%. 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 -1.31%.
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 -0.89%.
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 -89.55%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.01 |
Satisfactory |
Industrial Average |
1.32 |
|
Quick Ratio |
0.95 |
|
|
|
|
Cash Conversion Cycle |
(15.66) |
|
|
|
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 1.01 times in 2012, decreased from 1.02 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 0.95 times in 2012,
decreased from 0.96 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 -16 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.99 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
99.70 |
Risky |
Industrial Average |
3.43 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.99 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 |
16,556,817.05 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.68 |
Deteriorated |
Industrial Average |
34.63 |
|
Inventory Conversion Period |
34.84 |
|
|
|
|
Inventory Turnover |
10.48 |
Deteriorated |
Industrial Average |
89.31 |
|
Receivables Conversion Period |
501.91 |
|
|
|
|
Receivables Turnover |
0.73 |
Deteriorated |
Industrial Average |
44.32 |
|
Payables Conversion Period |
552.42 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.73 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 increased from 24 days at the
end of 2011 to 35 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 15.49 times in year 2011 to 10.48
times in year 2012.
The company's Total Asset Turnover is calculated as 0.68 times and 1
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
2.22 |
25.00 |
55.50 |
|
ACTIVITY RATIO |
1.00 |
20.00 |
20.00 |
|
PROFITABILITY
RATIO |
1.00 |
25.00 |
25.00 |
|
LEVERAGE RATIO |
0.67 |
10.00 |
6.70 |
|
ANNUAL GROWTH |
0.80 |
20.00 |
16.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
123.20 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.42 |
|
|
1 |
Rs. 98.28 |
|
Euro |
1 |
Rs. 80.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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.