MIRA INFORM REPORT
|
Report No. : |
332749 |
|
Report Date : |
23.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
MILLENNIUM DIAMOND
CO., LTD. |
|
|
|
|
Registered Office : |
Room 401-A, 4th Floor, Rasamee Thavorn Building, 278 Silom Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Year of Establishment : |
1999 |
|
|
|
|
Com. Reg. No.: |
0105542022021 [Former :
344/2542] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
SUBJECT IS IMPORTER,
DISTRIBUTOR AND EXPORTER OF DIAMONDS,
GEMSTONES AND JEWELRY PRODUCTS |
|
|
|
|
No. of Employee : |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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 has historically had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. The economy experienced slow growth and declining exports in 2014, in part due to domestic political turmoil and sluggish global demand. With full employment, Thailand attracts an estimated 4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d’�tat, tourism decreased 6-7% but is beginning to recover. The household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
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 :
51.00%
INDIAN :
49.00%
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 at 30-38
Mahesak Rd., Soi
3, Silom, Bangrak,
Bangkok 10500.
On November 24, 2010, the subject’s 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 |
42 |
|
Mr. Ashish Jitendra Dave |
|
Indian |
34 |
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 42
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, U.S.A.,
Republic of China
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 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 reported
outstanding sales in
2014. However, export
of gems and jewelry products
has slightly improved
in the first
six months of
this year, due
to the constraints
on export expansion
which was slower than expected recovery of the global economy.
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, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ritesh Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
90,000 |
30.00 |
|
Mr. Charanrat Chachai Nationality: Thai Address :
23 Moo 4,
T. Phai, A. Raseesalai, Srisaket |
76,500 |
25.50 |
|
Ms. Lamyai Kongnoon Nationality: Thai Address : 27
Moo 4, T. Thongnean, A.
Khanom,
Nakornsrithammarat |
76,500 |
25.50 |
|
Mr. Ashish Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
57,000 |
19.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
153,000 |
51.00 |
|
Foreign - Indian |
2 |
147,000 |
49.00 |
|
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, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
22,099,195.26 |
10,087,539.00 |
36,678.00 |
|
Trade Accounts and
Other Receivable |
66,578,294.07 |
46,198,823.84 |
86,421,958.57 |
|
Inventories |
26,627,296.66 |
23,824,147.34 |
32,030,970.35 |
|
Other Current Assets |
88,851.77 |
16,129.03 |
12,129.03 |
|
|
|
|
|
|
Total Current Assets
|
115,393,637.76 |
80,126,639.21 |
118,501,735.95 |
|
Fixed Assets |
17.00 |
17.00 |
164,424.62 |
|
Total Assets |
115,393,654.76 |
80,126,656.21 |
118,666,160.57 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft |
- |
1,893,054.32 |
3,016,837.86 |
|
Trade Accounts Payable |
19,488,826.84 |
26,926,687.91 |
47,891,244.49 |
|
Current Portion of Long-term Loans |
1,524,000.00 |
1,211,055.43 |
1,211,055.43 |
|
Loans under Credit Agreement for Turnover |
68,505,166.79 |
38,522,677.06 |
- |
|
Accrued Income Tax |
623,327.00 |
415,795.02 |
307,148.64 |
|
Other Current Liabilities |
674,333.96 |
2,665,448.36 |
260,836.45 |
|
|
|
|
|
|
Total Current Liabilities |
90,815,654.59 |
71,632,718.10 |
52,687,122.87 |
|
Long-term Loan from Financial institution, Net
of Current Portion
|
1,263,328.85 |
2,878,430.97 |
4,180,235.94 |
|
Long-term Loan from
Related Person |
- |
- |
57,041,006.65 |
|
Total Liabilities |
92,078,983.44 |
74,511,149.07 |
113,908,365.46 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share capital
300,000 shares in
2014; 150,000 shares in 2013 & 2012 |
30,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
30,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning - Unappropriated |
[6,685,328.68] |
[9,384,492.86] |
[10,242,204.89] |
|
Total Shareholders' Equity |
23,314,671.32 |
5,615,507.14 |
4,757,795.11 |
|
Total Liabilities & Shareholders' Equity |
115,393,654.76 |
80,126,656.21 |
118,666,160.57 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
223,843,900.52 |
140,601,316.62 |
118,969,356.30 |
|
Other Income |
4,313,970.35 |
6,015,151.60 |
817,112.26 |
|
Total Revenues |
228,157,870.87 |
146,616,468.22 |
119,786,468.56 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
215,264,698.73 |
138,999,814.34 |
112,215,773.02 |
|
Selling Expenses |
51,124.90 |
70,792.55 |
79,751.34 |
|
Administrative Expenses |
6,182,513.92 |
4,321,500.88 |
4,514,275.61 |
|
Total Expenses |
221,498,337.55 |
143,392,107.77 |
116,809,799.97 |
|
|
|
|
|
|
Profit /[Loss] before Financial
Cost & Income Tax |
6,659,533.32 |
3,224,360.45 |
2,976,668.59 |
|
Financial Cost |
[2,835,599.77] |
[1,638,341.86] |
[832,510.22] |
|
Profit /[Loss] before Income Tax |
3,823,933.55 |
1,586,018.59 |
2,144,158.37 |
|
Income Tax |
[1,124,769.37] |
[728,306.56] |
[688,673.80] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,699,164.18 |
857,712.03 |
1,455,484.57 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.27 |
1.12 |
2.25 |
|
QUICK RATIO |
TIMES |
0.98 |
0.79 |
1.64 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
13,167,288.27 |
8,270,665.68 |
723.55 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.94 |
1.75 |
1.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
45.15 |
62.56 |
104.19 |
|
INVENTORY TURNOVER |
TIMES |
8.08 |
5.83 |
3.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
108.56 |
119.93 |
265.14 |
|
RECEIVABLES TURNOVER |
TIMES |
3.36 |
3.04 |
1.38 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
33.04 |
70.71 |
155.77 |
|
CASH CONVERSION CYCLE |
DAYS |
120.67 |
111.78 |
213.56 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.17 |
98.86 |
94.32 |
|
SELLING & ADMINISTRATION |
% |
2.78 |
3.12 |
3.86 |
|
INTEREST |
% |
1.27 |
1.17 |
0.70 |
|
GROSS PROFIT MARGIN |
% |
5.76 |
5.42 |
6.36 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.98 |
2.29 |
2.50 |
|
NET PROFIT MARGIN |
% |
1.21 |
0.61 |
1.22 |
|
RETURN ON EQUITY |
% |
11.58 |
15.27 |
30.59 |
|
RETURN ON ASSET |
% |
2.34 |
1.07 |
1.23 |
|
EARNING PER SHARE |
BAHT |
9.00 |
5.72 |
9.70 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.93 |
0.96 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.95 |
13.27 |
23.94 |
|
TIME INTEREST EARNED |
TIMES |
2.35 |
1.97 |
3.58 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
59.20 |
18.18 |
|
|
OPERATING PROFIT |
% |
106.54 |
8.32 |
|
|
NET PROFIT |
% |
214.69 |
(41.07) |
|
|
FIXED ASSETS |
% |
- |
(99.99) |
|
|
TOTAL ASSETS |
% |
44.01 |
(32.48) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 59.2%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.76 |
Deteriorated |
Industrial
Average |
16.41 |
|
Net Profit Margin |
1.21 |
Satisfactory |
Industrial
Average |
1.41 |
|
Return on Assets |
2.34 |
Satisfactory |
Industrial
Average |
3.02 |
|
Return on Equity |
11.58 |
Impressive |
Industrial
Average |
8.20 |
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 5.76%. 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 1.21%.
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 2.34%.
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 11.58%, 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 |
1.27 |
Satisfactory |
Industrial
Average |
1.66 |
|
Quick Ratio |
0.98 |
|
|
|
|
Cash Conversion Cycle |
120.67 |
|
|
|
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 1.27 times in 2014, 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 0.98 times in 2014,
increased from 0.79 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 121 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
3.95 |
Risky |
Industrial
Average |
1.49 |
|
Times Interest Earned |
2.35 |
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 2.35 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 0.8 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
13,167,288.27 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.94 |
Satisfactory |
Industrial
Average |
2.14 |
|
Inventory Conversion Period |
45.15 |
|
|
|
|
Inventory Turnover |
8.08 |
Impressive |
Industrial
Average |
3.44 |
|
Receivables Conversion Period |
108.56 |
|
|
|
|
Receivables Turnover |
3.36 |
Satisfactory |
Industrial
Average |
4.11 |
|
Payables Conversion Period |
33.04 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.36 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 63 days at the
end of 2013 to 45 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 5.83 times in year 2013 to 8.08 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.94 times and 1.75
times in 2014 and 2013 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.63.53 |
|
UK Pound |
1 |
Rs.99.19 |
|
Euro |
1 |
Rs.69.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ASH |
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.