MIRA INFORM REPORT
|
Report No. : |
342701 |
|
Report Date : |
30.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
VALUE DIAM COMPANY LIMITED |
|
|
|
|
Registered Office : |
Room A, 10th Floor, Bangkok Gem and Jewelry Tower, 322/13 Surawong Road, Sipraya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
08.03.2013 |
|
|
|
|
Com. Reg. No.: |
0105556043271 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamonds, Precious and Semi-Precious Stones |
|
|
|
|
No. of Employees : |
2 |
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 : |
Slow but correct |
|
|
|
|
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, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive 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 2-4 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
VALUE DIAM COMPANY LIMITED
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, 2267-1145-6
FAX :
[66] 2267-4252, 2267-1147
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 imported
products is sold
locally to wholesalers,
manufacturers and end-users.
EXPORT
100% of the local products
is exported to
India, Republic of
China, Hong Kong 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
to IRICO’S DATABASE 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. Since
it has been
established in 2013,
its business has
grown significantly. Subject
reported outstanding sales
in the year
2014, while its
business in 2015
remains stable.
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, 2015]
|
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,
2015]
|
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]
The
latest financial figures
published for December
31, 2014 &
2013 were:
ASSETS
|
Current Assets |
2014 |
2013 |
|
|
|
|
|
Cash and Cash Equivalents
|
354,925.15 |
553,757.51 |
|
Trade Account & Other
Receivable |
93,242,951.25 |
32,749,730.97 |
|
Inventories |
14,637,168.97 |
15,351,170.68 |
|
Loan and Advances to Directors |
5,000,000.00 |
5,000,000.00 |
|
Other Current Assets
|
605,725.43 |
3,024,110.66 |
|
|
|
|
|
Total Current Assets
|
113,840,770.80 |
56,678,769.82 |
|
|
|
|
|
Equipments, Net |
97,769.22 |
125,466.35 |
|
Total Assets |
113,938,540.02 |
56,804,236.17 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
|
|
|
|
|
Bank Overdraft from Financial Institutions |
3,956,628.05 |
- |
|
Short-term Loan from Financial Institutions |
20,028,638.23 |
- |
|
Trade Account & Other
Payable |
80,792,562.53 |
51,401,208.84 |
|
Other Current Liabilities |
1,380,595.16 |
438,846.56 |
|
|
|
|
|
Total Current Liabilities |
106,158,423.97 |
51,840,055.40 |
|
Total Liabilities |
106,158,423.97 |
51,840,055.40 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated |
3,780,116.08 |
964,180.77 |
|
Total Shareholders' Equity |
7,780,116.05 |
4,964,180.77 |
|
Total Liabilities & Shareholders' Equity |
113,938,540.02 |
56,804,236.17 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
|
|
|
|
|
Sales Income |
234,067,463.56 |
91,985,435.56 |
|
Gain on Exchange Rate |
455,742.53 |
- |
|
Other Income |
19,550.44 |
10,616.44 |
|
Total Revenues |
234,542,756.53 |
91,996,052.00 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
224,811,854.87 |
86,672,572.26 |
|
Administrative Expenses |
5,362,003.94 |
4,078,591.31 |
|
Total Expenses |
230,173,858.81 |
90,751,163.57 |
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income Tax |
4,368,897.72 |
1,244,888.43 |
|
Financial Cost |
[836,213.00] |
- |
|
|
|
|
|
Profit / [Loss] before Income Tax
|
3,532,684.72 |
1,244,888.43 |
|
Income Tax |
[716,749.44] |
[280,707.66] |
|
Net Profit / [Loss] |
2,815,935.28 |
964,180.77 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
1.09 |
|
QUICK RATIO |
TIMES |
0.88 |
0.64 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,394.08 |
733.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.05 |
1.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
23.76 |
64.65 |
|
INVENTORY TURNOVER |
TIMES |
15.36 |
5.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
145.40 |
129.95 |
|
RECEIVABLES TURNOVER |
TIMES |
2.51 |
2.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
131.17 |
216.46 |
|
CASH CONVERSION CYCLE |
DAYS |
37.99 |
(21.86) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.05 |
94.22 |
|
SELLING & ADMINISTRATION |
% |
2.29 |
4.43 |
|
INTEREST |
% |
0.36 |
- |
|
GROSS PROFIT MARGIN |
% |
4.16 |
5.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.87 |
1.35 |
|
NET PROFIT MARGIN |
% |
1.20 |
1.05 |
|
RETURN ON EQUITY |
% |
36.19 |
19.42 |
|
RETURN ON ASSET |
% |
2.47 |
1.70 |
|
EARNING PER SHARE |
BAHT |
70.40 |
24.10 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.93 |
0.91 |
|
DEBT TO EQUITY RATIO |
TIMES |
13.64 |
10.44 |
|
TIME INTEREST EARNED |
TIMES |
5.22 |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
154.46 |
- |
|
OPERATING PROFIT |
% |
250.95 |
- |
|
NET PROFIT |
% |
192.05 |
- |
|
FIXED ASSETS |
% |
(22.08) |
- |
|
TOTAL ASSETS |
% |
100.58 |
- |
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.16 |
Deteriorated |
Industrial
Average |
8.39 |
|
Net Profit Margin |
1.20 |
Impressive |
Industrial
Average |
0.15 |
|
Return on Assets |
2.47 |
Impressive |
Industrial Average |
0.90 |
|
Return on Equity |
36.19 |
Impressive |
Industrial
Average |
2.51 |
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 4.16%. 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 1.2%,
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. Return on Assets ratio is
2.47%, 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.
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 36.19%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.07 |
Deteriorated |
Industrial
Average |
2.18 |
|
Quick Ratio |
0.88 |
|
|
|
|
Cash Conversion Cycle |
37.99 |
|
|
|
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 1.07 times in 2014, decreased from 1.09 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 0.88 times in 2014,
increased from 0.64 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 38 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 |
0.62 |
|
Debt to Equity Ratio |
13.64 |
Risky |
Industrial
Average |
1.63 |
|
Times Interest Earned |
5.22 |
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 5.23 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2,394.08 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.05 |
Deteriorated |
Industrial
Average |
6.09 |
|
Inventory Conversion Period |
23.76 |
|
|
|
|
Inventory Turnover |
15.36 |
Impressive |
Industrial
Average |
9.22 |
|
Receivables Conversion Period |
145.40 |
|
|
|
|
Receivables Turnover |
2.51 |
Deteriorated |
Industrial
Average |
16.77 |
|
Payables Conversion Period |
131.17 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.51 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 65 days at the
end of 2013 to 24 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 5.65 times in year 2013 to 15.36
times in year 2014.
The company's Total Asset Turnover is calculated as 2.05 times and 1.62
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.18 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
NIT |
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.