MIRA INFORM REPORT

 

 

Report No. :

491425

Report Date :

09.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

RENA DIAM CO., LTD.

 

 

Registered Office :

24th Floor, ITF-Silom Palace, 160/546 Silom Road, Suriyawongse, Bangrak, Bangkok 10500

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

15.07.2010

 

 

Com. Reg. No.:

0105553086093

 

 

Legal Form :

Private  Limited  Company

 

 

Line of Business :

The  subject  is  engaged  in  importing  and distributing  diamonds,  gemstones  and  precious  stones  for  jewelry  production.

 

 

No. of Employees :

1

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Thailand

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

THAILAND - ECONOMIC OVERVIEW

 

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

 

Source : CIA

 

COMPANY NAME

 

RENA  DIAM  CO.,  LTD.

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           24th  FLOOR,  ITF-SILOM  PALACE, 

                                                                        160/546  SILOM  ROAD,  SURIYAWONGSE,

                                                                        BANGRAK,  BANGKOK  10500,  THAILAND

TELEPHONE                                        :           [66]   2631-8871,  081  612-7279,  081  672-7279

FAX                                                      :           [66]   2631-8871

E-MAIL  ADDRESS                               :           -

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS

ESTABLISHED                                    :           2010

REGISTRATION  NO.                           :           0105553086093

TAX  ID  NO.                                         :           3034036038

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.  HARDIP  WADHWANA,  INDIAN

                                                                        MANAGING  DIRECTOR           

NO.  OF  STAFF                                   :           1

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  15,  2010  as  a  private  limited  company  under  the  registered name RENA  DIAM  CO., LTD.,  by  Thai and  Indian  groups,  with  the  business  objective  to  import  and  distribute  diamonds  and  gemstones  for  jewelry  business.  It  currently  employs  1  staff.  

 

The  subject’s  registered  address  is  24th  Floor,  ITF-Silom  Palace,  160/546  Silom  Rd.,  Suriyawongse, Bangrak, Bangkok 10500, and  this  is the  subject’s  current operation address.  

 

THE  BOARD  OF  DIRECTOR

 

Mr. Hardip  Wadhwana

 

 

AUTHORIZED  PERSON

 

The  above  director  signs  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Mr. Hardip  Wadhwana  is  the  Managing  Director.

He  is  Indian  nationality  with  the  age  of  33  years  old.  

 

 

BUSINESS  OPERATIONS

 

The  subject  is  engaged  in  importing  and distributing  diamonds,  gemstones  and  precious  stones  for  jewelry  production.

 

 

PURCHASE

 

Most  of  the   products  are  imported  from  India,  Republic  of  China,  Pakistan  and 

Hong  Kong,  the  remaining  is purchased  from  local  suppliers.

 

 

SALES 

 

100%  of  the  products  is  sold  locally  by  wholesale  to  jewelry  shops  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  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  Company  Limited

 

 

EMPLOYMENT

 

The  subject  currently  employs 1 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’s  operating  performance in  2016  was  slowdown  from  a  drastic  decrease  in  both  sales  income  and  net  profit  comparing  to  the  previous  year  caused  by  slowdown  of  economy,  decline  in  consumption  of  diamonds, gemstones  and  precious  stones  from  local   jewelry  industry.   However, the  subject  has  obtained  retained  earning  (positive) which would  assist  the  financial  liquidity flow  and  normal  business operation.   Without  any  sign  of  distinctive  improvement  or  recovery  on  consumers’ purchasing power of  jewelry  business,  the subject  would  encounter  a  slow  growth  inevitably.

 

 

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,  2017]

 

       NAME

HOLDING

%

 

 

 

Ms. Chulapa  Padaanan

Nationality:  Thai

Address     :  117/4  Charoenkrung  Road,  Siphaya,

                    Bangrak,  Bangkok     

20,400

51.00

Mr. Hardip  Wadhwana

Nationality:  Indian

Address     :  160/546  ITF-Silom  Palace,  Silom  Rd.,

                    Suriyawongse,  Bangrak,  Bangkok  

9,800

24.50

Ms. Winai  Hardip  Wadhwana

Nationality:  Indian

Address     :  160/546  ITF-Silom  Palace,  Silom  Rd.,

                    Suriyawongse,  Bangrak,  Bangkok  

9,800

24.50

 

Total  Shareholders  :   3

 

 

SHARE  STRUCTURE  [AS  AT  APRIL  30,  2017]

 

Nationality

Shareholders

No. of  Shares

% 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.

 

Ms. Anchalee  Khaola-or  No.  10363

 

 

FINANCIALS

 

RENA  DIAM  CO.,  LTD.

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published for  December  31,  2016,  2015  and  2014 were:

          

ASSETS

                                                                                  

Current Assets

2016

2015

2014

 

 

 

 

Cash  and Cash Equivalents

144,933.57

50,554.71

45,149.30

Trade Account  and Other Receivables

11,025,275.03

16,491,058.95

2,985,438.15

Inventories

19,253,541.06

17,855,291.73

27,258,775.34

Other  Current  Assets                  

-

207,727.33

226,533.82

 

 

 

 

Total  Current  Assets                

30,423,749.66

34,604,632.72

30,515,896.61

 

Property, Plant  and Equipment

 

1.00

 

2,379.20

 

6,678.26

 

Total  Assets                 

 

30,423,750.66

 

34,607,011.92

 

30,522,574.87

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2016

2015

2014

 

 

 

 

Trade  Accounts  and  Other Payable

16,012,311.66

15,507,463.98

26,812,654.60

Other  Current  Liabilities             

39,447.65

4,602,207.52

13,350.00

 

 

 

 

Total Current Liabilities

16,051,759.31

20,109,671.50

26,826,004.60

 

Total  Liabilities            

 

16,051,759.31

 

20,109,671.50

 

26,826,004.60

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 Share  capital : Baht 100  par  value 

  authorized,  and  issued 

   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  

  [Deficit]                 

 

10,371,991.35

 

10,497,340.42

 

[303,429.73]

 

Total  Shareholders' Equity

 

14,371,991.35

 

14,497,340.42

 

3,696,570.27

 

Total  Liabilities  and  Shareholders' 

  Equity

 

 

30,423,750.66

 

 

34,607,011.92

 

 

30,522,574.87

                                                  

 

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2016

2015

2014

 

 

 

 

Sales  or Services  Income                   

20,948,819.82

41,687,772.22

24,623,226.81

Other  Income                

284,882.51

-

-

 

Total  Revenues           

 

21,233,702.33

 

41,687,772.22

 

24,623,226.81

 

Expenses

 

 

 

 

 

 

 

Raw Material and Material Supplies

20,118,487.11

39,644,666.82

-

Employee Benefits  Expenses

1,218,591.64

1,266,623.65

-

Other Expenses

-

720,419.75

-

Cost  of  Goods  Sold                            

-

-

23,153,804.35

Selling  and  Administrative  Expenses

-

-

1,045,157.82

Loss  on  Exchange  Rate

-

-

143,765.28

 

Total Expenses             

 

21,337,078.75

 

41,631,710.22

 

24,342,727.45

 

 

 

 

Profit/ [Loss]  before Income Tax

[103,376.42]

56,062.00

280,499.36

Income Tax

[21,972.65]

[11,989.81]

-

 

Net  Profit / [Loss]

 

[125,349.07]

 

44,072.19

 

280,499.36

 

 

RENA DIAM CO., LTD.

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2016

2015

2014

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

1.90

1.72

1.14

QUICK RATIO

TIMES

0.70

0.82

0.11

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

20,948,819.82

17,521.76

3,687.07

TOTAL ASSETS TURNOVER

TIMES

0.69

1.20

0.81

INVENTORY CONVERSION PERIOD

DAYS

349.31

164.39

429.71

INVENTORY TURNOVER

TIMES

1.04

2.22

0.85

RECEIVABLES CONVERSION PERIOD

DAYS

192.10

144.39

44.25

RECEIVABLES TURNOVER

TIMES

1.90

2.53

8.25

PAYABLES CONVERSION PERIOD

DAYS

290.50

142.77

422.68

CASH CONVERSION CYCLE

DAYS

250.90

166.00

51.29

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

96.04

95.10

94.03

SELLING & ADMINISTRATION

%

5.82

3.04

4.24

INTEREST

%

-

-

-

GROSS PROFIT MARGIN

%

5.32

4.90

5.97

NET PROFIT MARGIN BEFORE EX. ITEM

%

(0.49)

0.13

1.14

NET PROFIT MARGIN

%

(0.60)

0.11

1.14

RETURN ON EQUITY

%

(0.87)

0.30

7.59

RETURN ON ASSET

%

(0.41)

0.13

0.92

EARNING PER SHARE

BAHT

(3.13)

1.10

7.01

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.53

0.58

0.88

DEBT TO EQUITY RATIO

TIMES

1.12

1.39

7.26

TIME INTEREST EARNED

TIMES

-

-

-

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(49.75)

69.30

 

OPERATING PROFIT

%

(284.40)

(80.01)

  

NET PROFIT

%

(384.42)

(84.29)

 

FIXED ASSETS

%

(99.96)

(64.37)

 

TOTAL ASSETS

%

(12.09)

13.38

 

 

 

 

ANNUAL GROWTH : RISKY

 

An annual sales growth is -49.75%. Turnover has decreased from THB 41,687,772.22 in 2015 to THB 20,948,819.82 in 2016. While net profit has decreased from THB 44,072.19 in 2015 to THB -125,349.07 in 2016. And total assets has decreased from THB 34,607,011.92 in 2015 to THB 30,423,750.66 in 2016.                       

                       

                       

PROFITABILITY : RISKY

 

PROFITABILITY RATIO

 

Gross Profit Margin

5.32

Satisfactory

Industrial Average

12.73

Net Profit Margin

(0.60)

Deteriorated

Industrial Average

2.45

Return on Assets

(0.41)

Deteriorated

Industrial Average

3.03

Return on Equity

(0.87)

Deteriorated

Industrial Average

7.53

 

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 5.32%. 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 -0.6%. 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 -0.41%.

 

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 -0.87%.

 

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

1.90

Satisfactory

Industrial Average

2.20

Quick Ratio

0.70

 

 

 

Cash Conversion Cycle

250.90

 

 

 

 

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 1.9 times in 2016, increase from 1.72 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 0.7 times in 2016, decrease from 0.82 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 251 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

 

LEVERAGE : RISKY

 

LEVERAGE RATIO

 

Debt Ratio

0.53

Acceptable

Industrial Average

0.50

Debt to Equity Ratio

1.12

Risky

Industrial Average

0.98

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 0.53 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

20,948,819.82

Impressive

Industrial Average

-

Total Assets Turnover

0.69

Satisfactory

Industrial Average

1.24

Inventory Conversion Period

349.31

 

 

 

Inventory Turnover

1.04

Satisfactory

Industrial Average

1.58

Receivables Conversion Period

192.10

 

 

 

Receivables Turnover

1.90

Satisfactory

Industrial Average

3.00

Payables Conversion Period

290.50

 

 

 

 

The company's Account Receivable Ratio is calculated as 1.90 and 2.53 in 2016 and 2015 respectively. 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 2016 decreased from 2015. This would suggest the company had deteriorated 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 has increased from 164 days at the end of 2015 to 349 days at the end of 2016. This represents a negative trend. And Inventory turnover has decreased from 2.22 times in year 2015 to 1.04 times in year 2016.

 

The company's Total Asset Turnover is calculated as 0.69 times and 1.2 times in 2016 and 2015 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

INR 64.16

UK Pound

1

INR 89.19

Euro

1

INR 78.75

Thai baht

1

INR 2.03

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

KET

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.