MIRA INFORM REPORT
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Report No. : |
318627 |
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Report Date : |
23.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
VALUE DIAM COMPANY LIMITED |
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Registered Office : |
Room A, 10th Floor, Bangkok Gem and Jewelry Tower, 322/13 Surawong Road, Sipraya, Bangrak, Bangkok 10500, |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
08.03.2013 |
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Com. Reg. No.: |
0105556043271 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject
is engaged in
importing, distributing and
re-exporting of diamonds,
precious and semi-precious stones,
as well as
exporting of the local
products for jewelry
industry. |
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No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
summary
BUSINESS ADDRESS : ROOM A, 10th FLOOR, BANGKOK GEM AND JEWELRY
TOWER, 322/13 SURAWONG ROAD, SIPRAYA,
BANGRAK, BANGKOK 10500, THAILAND
TELEPHONE : [66] 2267-4252
FAX : [66] 2267-4252
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 2013
REGISTRATION NO. : 0105556043271
TAX ID NO. : 3035701263
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. DEVEN HARSHAD KUMAR DOSHI, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 2
LINES OF BUSINESS : DIAMONDS, PRECIOUS AND SEMI-PRECIOUS
STONES
IMPORTER, DISTRIBUTOR AND EXPORTER
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 March 8,
2013 as a
private limited company
under the registered name VALUE DIAM
COMPANY LIMITED initially by
Thai groups, with
the business objective
to import and distribute diamonds, precious and
semi-precious stones for
jewelry industry. It
currently employs 2
staff.
The
subject’s registered address
was initially at
Suite 2409, 24th Floor,
Jewelry Trade Center,
919/311 Silom Road, Silom,
Bangrak, Bangkok 10500.
On March 4,
2014, its registered
address was relocated
to Room A, 10th Floor,
Bangkok Gem and
Jewelry Tower, 322/13
Surawong Road, Sipraya,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Deven Harshad Kumar
Doshi |
|
Indian |
48 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Deven Harshad
Kumar Doshi is
the Managing Director.
He is Indian
nationality with the
age of 48 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting of diamonds,
precious and semi-precious stones,
as well as
exporting of the local
products for jewelry
industry.
PURCHASE
Its
products are purchased
from suppliers both
domestic and overseas,
mainly in India
and Hong Kong.
SALES [LOCAL]
100% of the
international products is
sold locally to
wholesalers, manufacturers and
end-users.
EXPORT
100% of the
local products is exported
to India, Republic
of China and
Malaysia.
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 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.
Exports are against
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
Subject was established in March 2013 as
an importer and distributor
of diamond, precious
and semi precious
stones, as well
as exporter of
jewelry products to India,
Republic of China
and Malaysia. The
subject is in early
stage. Subject reported
moderate sales in
its first year
operation, while its
current business is
growing slowly.
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,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Deven Harshad Kumar
Doshi Nationality: Indian Address : 919/311
Silom Road, Silom,
Bangrak, Bangkok
|
19,600 |
49.00 |
|
Ms. Soontharee Klinsung Nationality: Thai Address : 90
Moo 11, T. Nongkradone, A. Muang,
Nakornsawan |
6,800 |
17.00 |
|
Ms. Patthita Wadkien Nationality: Thai Address : 201/17
Moo 1, Tharaeng,
Bangkhen,
Bangkok |
6,800 |
17.00 |
|
Mr. Bootham Seehabutr Nationality: Thai Address : 88
Moo 7, T. Talunglek, A. Muang, Buriram |
6,800 |
17.00 |
Total Shareholders : 4
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,400 |
51.00 |
|
Foreign - Indian |
1 |
19,600 |
49.00 |
|
Total |
4 |
40,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Jumpol Jarasrojanakul No.
5223
BALANCE
SHEET [BAHT]
ASSETS
|
Current Assets |
2013 |
|
|
|
|
Cash and Cash Equivalents
|
553,757.51 |
|
Trade Account Receivable |
32,749,730.97 |
|
Inventories |
15,351,170.68 |
|
Loan and Advance to Directors |
5,000,000.00 |
|
Other Current Assets
|
3,024,110.66 |
|
|
|
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Total Current Assets
|
56,678,769.82 |
|
|
|
|
Equipment, Net |
125,466.35 |
|
Total Assets |
56,804,236.17 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
|
|
|
|
Trade Account Payable |
51,401,208.84 |
|
Accrued Expenses |
438,846.56 |
|
|
|
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Total Current Liabilities |
51,840,055.40 |
|
Total Liabilities |
51,840,055.40 |
|
|
|
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Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
|
|
|
|
Capital Paid |
4,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
964,180.77 |
|
Total Shareholders' Equity |
4,964,180.77 |
|
Total Liabilities & Shareholders' Equity |
56,804,236.17 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
Mar. 8, 2013 - Dec. 31, 2013 |
|
|
|
|
Sales Income |
91,985,435.56 |
|
Interest Income |
10,616.44 |
|
Total Revenues |
91,996,052.00 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
86,672,572.26 |
|
Administrative Expenses |
4,078,591.31 |
|
Total Expenses |
90,751,163.57 |
|
|
|
|
Profit / [Loss] before Income Tax
|
1,244,888.43 |
|
Income Tax |
[280,707.66] |
|
Net Profit / [Loss] |
964,180.77 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
1.09 |
|
QUICK RATIO |
TIMES |
0.64 |
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
733.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.65 |
|
INVENTORY TURNOVER |
TIMES |
5.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
129.95 |
|
RECEIVABLES TURNOVER |
TIMES |
2.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
216.46 |
|
CASH CONVERSION CYCLE |
DAYS |
(21.86) |
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
COST OF GOODS SOLD |
% |
94.22 |
|
SELLING & ADMINISTRATION |
% |
4.43 |
|
INTEREST |
% |
- |
|
GROSS PROFIT MARGIN |
% |
5.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.35 |
|
NET PROFIT MARGIN |
% |
1.05 |
|
RETURN ON EQUITY |
% |
19.42 |
|
RETURN ON ASSET |
% |
1.70 |
|
EARNING PER SHARE |
BAHT |
24.10 |
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
DEBT RATIO |
TIMES |
0.91 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.44 |
|
TIME INTEREST EARNED |
TIMES |
- |
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.79 |
Satisfactory |
Industrial
Average |
7.19 |
|
Net Profit Margin |
1.05 |
Impressive |
Industrial
Average |
0.65 |
|
Return on Assets |
1.70 |
Deteriorated |
Industrial
Average |
3.61 |
|
Return on Equity |
19.42 |
Impressive |
Industrial
Average |
8.28 |
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 5.79%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
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 1.05%,
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 1.7%.
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 19.42%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.09 |
Deteriorated |
Industrial
Average |
2.20 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
(21.86) |
|
|
|
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 1.09 times in 2013, 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 0.64 times in 2013,
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 -22 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
10.44 |
Risky |
Industrial
Average |
1.20 |
|
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 0.91 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
733.15 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.62 |
Deteriorated |
Industrial Average |
5.58 |
|
Inventory Conversion Period |
64.65 |
|
|
|
|
Inventory Turnover |
5.65 |
Acceptable |
Industrial
Average |
9.74 |
|
Receivables Conversion Period |
129.95 |
|
|
|
|
Receivables Turnover |
2.81 |
Deteriorated |
Industrial
Average |
15.08 |
|
Payables Conversion Period |
216.46 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.81 in 2013.
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 2013 is 2.81.
This would suggest the company had good performance in the management of
its debt collections.
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 is 65 days at the end of 2013. This
represents a negative trend. And Inventory turnover is 5.65 times in year 2013.
The company's Total Asset Turnover is calculated as 1.62 times in 2013.
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.82 |
|
|
1 |
Rs.93.85 |
|
Euro |
1 |
Rs.67.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
Report Prepared
by : |
VNT |
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.