MIRA INFORM REPORT
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Report No. : |
304142 |
|
Report Date : |
24.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
RISING DIAMOND CO., LTD. |
|
|
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Registered Office : |
Room 18A, 12th Floor, Bangkok Gems & Jewellery Tower, 322/18 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 : |
17.10.2011 |
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Com. Reg. No.: |
0105554006336 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is an importer, distributor and exporter of diamonds, gemstones and jewelry products. |
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No. of Employee : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
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 |
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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, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 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
RISING
DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
18A, 12th FLOOR,
BANGKOK GEMS &
JEWELLERY TOWER,
322/18
SURAWONG ROAD, SIPRAYA, BANGRAK,
BANGKOK 10500, THAIALND
TELEPHONE : [66] 089
488-7478
FAX :
-
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2011
REGISTRATION
NO. : 0105554006336
TAX
ID NO. : 3034284491
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. HIREN KIRITKUMAR
DESAI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : -
LINES
OF BUSINESS : DIAMOND, GEMS
AND JEWELRY PRODUCTS
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 October 17,
2011 as a private
limited company under
the registered name
RISING DIAMOND CO.,
LTD., by Thai and
Indian groups, with
the business objective
to import, distribute
and export various
kinds of diamonds,
gems and jewelry
products.
The
subject’s registered address
is Room 18A,
12th Floor, Bangkok
Gems & Jewellery Tower,
322/18 Surawong Road, Sipraya, Bangrak, Bangkok 10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hiren Kiritkumar Desai |
|
Indian |
34 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hiren Kiritkumar Desai
is the Managing
Director.
He is Indian
nationality with the
age of 34
years old.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
NOTE
The
subject refuses to
release company’s information
during investigation.
COMMENT
The
subject is an
importer, distributor and exporter of
diamonds, gemstones and
jewelry products. It reported
slow sales in
the previous years,
while growth is
also expected at
slow pace.
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, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hiren Kiritkumar Desai Nationality: Indian Address : 322/18
Surawong Road, Sipraya,
Bangrak, Bangkok |
6,000 |
30.00 |
|
Mrs. Amisha Hiren Desai Nationality: Indian Address : 322/18
Surawong Road, Sipraya,
Bangrak, Bangkok |
3,800 |
19.00 |
|
Mr. Sorrasak Boonmalert Nationality: Thai Address : 110
Krungthep-Kreetha Road, Huamark,
Bangkapi, Bangkok |
3,500 |
17.50 |
|
Mr. Prasert Langsanti Nationality: Thai Address : 5/78
Moo 1, Kokfaed,
Nongjok, Bangkok |
3,500 |
17.50 |
|
Mr. Boonmee Sriwong Nationality: Thai Address : 62/19
Surawong Road, Suriyawongse,
Bangrak, Bangkok |
3,200 |
16.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2014]
|
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. Wasana Tanmongkol No.
1888
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
15,084.40 |
36,758.78 |
76,127.36 |
|
Trade Accounts &
Other Receivable |
1,895,477.39 |
1,950,542.29 |
2,077,355.35 |
|
Inventories |
2,597,243.50 |
1,775,422.50 |
860,948.00 |
|
|
|
|
|
|
Total Current Assets |
4,507,805.29 |
3,762,723.57 |
3,014,430.71 |
|
|
|
|
|
|
Long-term Loans |
590,000.00 |
1,450,000.00 |
2,000,000.00 |
|
Fixed Assets |
32,440.57 |
41,428.37 |
- |
|
Total Assets |
5,130,245.86 |
5,254,151.94 |
5,014,430.71 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
3,366,956.18 |
3,336,173.82 |
2,929,439.76 |
|
Accrued Income Tax |
- |
12,421.09 |
13,867.43 |
|
|
|
|
|
|
Total Current Liabilities |
3,366,956.18 |
3,348,594.91 |
2,943,307.19 |
|
Total Liabilities |
3,366,956.18 |
3,348,594.91 |
2,943,307.19 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[236,710.32] |
[94,442.97] |
71,123.52 |
|
Total Shareholders' Equity |
1,763,289.68 |
1,905,557.03 |
2,071,123.52 |
|
Total Liabilities &
Shareholders' Equity |
5,130,245.86 |
5,254,151.94 |
5,014,430.71 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
7,885,875.00 |
7,753,933.00 |
7,162,000.00 |
|
Other Income |
355.62 |
29,000.00 |
6,684.93 |
|
Total Revenues |
7,886,230.62 |
7,782,933.00 |
7,168,684.93 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
6,987,908.00 |
6,906,265.50 |
6,229,421.00 |
|
Selling Expenses |
- |
35,964.00 |
- |
|
Administrative Expenses |
1,040,589.97 |
993,548.90 |
853,972.98 |
|
Total Expenses |
8,028,497.97 |
7,935,778.40 |
7,083,393.98 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[142,267.35] |
[152,845.40] |
85,290.95 |
|
Financial Cost |
- |
[300.00] |
[300.00] |
|
Profit / [Loss] before Income
Tax |
[142,267.35] |
[153,145.40] |
84,990.95 |
|
Income Tax |
- |
[12,421.09] |
[13,867.43] |
|
|
|
|
|
|
Net Profit / [Loss] |
[142,267.35] |
165,566.49] |
71,123.52 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.34 |
1.12 |
1.02 |
|
QUICK RATIO |
TIMES |
0.57 |
0.59 |
0.73 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
243.09 |
187.16 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
1.48 |
1.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
135.66 |
93.83 |
50.45 |
|
INVENTORY TURNOVER |
TIMES |
2.69 |
3.89 |
7.24 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.73 |
91.82 |
105.87 |
|
RECEIVABLES TURNOVER |
TIMES |
4.16 |
3.98 |
3.45 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
175.87 |
176.32 |
171.64 |
|
CASH CONVERSION CYCLE |
DAYS |
47.53 |
9.33 |
(15.33) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.61 |
89.07 |
86.98 |
|
SELLING & ADMINISTRATION |
% |
13.20 |
13.28 |
11.92 |
|
INTEREST |
% |
- |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
11.39 |
11.31 |
13.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.80) |
(1.97) |
1.19 |
|
NET PROFIT MARGIN |
% |
(1.80) |
(2.14) |
0.99 |
|
RETURN ON EQUITY |
% |
(8.07) |
(8.69) |
3.43 |
|
RETURN ON ASSET |
% |
(2.77) |
(3.15) |
1.42 |
|
EARNING PER SHARE |
BAHT |
(7.11) |
(8.28) |
3.56 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.66 |
0.64 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.91 |
1.76 |
1.42 |
|
TIME INTEREST EARNED |
TIMES |
- |
(509.48) |
284.30 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.70 |
8.26 |
|
|
OPERATING PROFIT |
% |
(6.92) |
(279.20) |
|
|
NET PROFIT |
% |
14.07 |
(332.79) |
|
|
FIXED ASSETS |
% |
(21.69) |
- |
|
|
TOTAL ASSETS |
% |
(2.36) |
4.78 |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is 1.7%. Turnover has increased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.39 |
Impressive |
Industrial Average |
7.19 |
|
Net Profit Margin |
(1.80) |
Deteriorated |
Industrial Average |
0.65 |
|
Return on Assets |
(2.77) |
Deteriorated |
Industrial Average |
3.61 |
|
Return on Equity |
(8.07) |
Deteriorated |
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 11.39%. 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 -1.8%.
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 -2.77%.
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 -8.07%.
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 |
1.34 |
Acceptable |
Industrial Average |
2.20 |
|
Quick Ratio |
0.57 |
|
|
|
|
Cash Conversion Cycle |
47.53 |
|
|
|
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 1.34 times in 2013, increased from 1.12 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 0.57 times in 2013,
decreased from 0.59 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 48 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.66 |
Acceptable |
Industrial Average |
0.55 |
|
Debt to Equity Ratio |
1.91 |
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 0.66 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 |
243.09 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.54 |
Deteriorated |
Industrial Average |
5.58 |
|
Inventory Conversion Period |
135.66 |
|
|
|
|
Inventory Turnover |
2.69 |
Deteriorated |
Industrial Average |
9.74 |
|
Receivables Conversion Period |
87.73 |
|
|
|
|
Receivables Turnover |
4.16 |
Deteriorated |
Industrial Average |
15.08 |
|
Payables Conversion Period |
175.87 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.16 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 94 days at the
end of 2012 to 136 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.89 times in year 2012 to 2.69 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.54 times and 1.48
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 Uptrend
|
Key Areas |
Score |
Weight |
Weighted Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
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 |
1.60 |
20.00 |
32.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
116.95 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.49 |
|
|
1 |
Rs.92.16 |
|
Euro |
1 |
Rs.69.61 |
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.