MIRA INFORM REPORT

 

 

Report Date :

10.08.2012

 

IDENTIFICATION DETAILS

 

Name :

JUPITER SHOP CHANNEL CO LTD

 

 

Registered Office :

Kokkan Bldg, 1-14-1 Shinkawa Chuoku Tokyo 154-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

November 1996

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 065291

 

 

Legal Form :

Limited Company

 

 

Line of Business :

TV shop channel operator, mail-order house, catalogue sales (non-store operator)

 

 

No. of Employees :

859

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 


 

Status :

Good

Payment Behaviour :

Regular

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Company name

 

JUPITER SHOP CHANNEL CO LTD

 

 

REGD NAME

 

Jupiter Shop Channel KK

 

 

MAIN OFFICE

 

Kokkan Bldg, 1-14-1 Shinkawa Chuoku Tokyo 154-0033 JAPAN

Tel: 03-5641-3868     Fax: 03-5641-3797

 

URL:                 http://www.shopch.jp

E-Mail address:            Not specified

 

 

ACTIVITIES  

 

TV shop channel operator, mail-order house, catalogue sales (non-store operator)

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya (--shops)

 

 

OFFICER(S)

 

ATSUSHI SHINOHARA, PRES               Takeyuki Niimori, dir

Keiji Tanaka, dir                                                 Daisuke Mikogami, dir

Toshifumi Shibuya, dir   

 

Yen Amount:    In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 120,879 M

PAYMENTS  REGULAR CAPITAL           Yen 440 M

TREND STEADY           WORTH            Yen29,640 M

STARTED         1996                 EMPLOYES      859

 

 

COMMENT

 

TV SHOP CHANNEL OPERATOR, OWNED BY SUMITOMO CORPORATION.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established as a joint venture company by Otto Versand GmbH & Co, Germany and Sumitomo Corp, Japan’s leading general trading house, Tokyo, as Otto-Sumisho Inc, for advancing into non-store mail order & catalog sales business.  In Dec 2007, the German partner acquired its whole share in the JV and made it an independent company, Otto Japan Inc.  The firm then became a wholly owned consolidated subsidiary of Sumitomo Corporation, and renamed as captioned.  This is a top-ranked TV shop channel operator.  Handling items are wide and varies (See OPERATION).  Over 27 million households are accessible to the channel.  Operates three retail shops: Tokyo, Osaka and Nagoya.

 

 

FINANCIAL INFORMATION

 

The sales amount for Mar/2012 fiscal term amounted to Yen 120,879 million, an 8% up from Yen 111,503 million in the previous term.   CATV shoppers increased due to conveniences.  The recurring profit was posted at Yen 20,837 million and the net profit at Yen 12,073 million, respectively, compared with Yen 15,722 million recurring profit and Yen 9,167 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 21,000 million and the net profit at Yen 12,500 million, respectively, on a 5% rise in turnover, to Yen 127,000 million.  Business is steadily expanding.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Nov 1996

Regd No.:         (Tokyo-Chuoku) 065291

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         140,800 shares

Issued:             35,200 shares

Sum:                   Yen 440 million

Major shareholders (%): Sumitomo Corp* (99), Sumisho Information System (1)

No. of shareholders: 2

 

*.. One of leading general trading houses, Tokyo, founded 1919, listed Tokyo, Osaka, Nagoya, Fukuoka S/E’s, capital Yen 219,279 million, sales Yen 8,273,043 million, operating profit Yen 219,857 million, recurring profit Yen 341,387 million, net profit Yen 250,669 million, total assets Yen 7,226,769 million net worth Yen 1,801,188 million, employees 72,087, pres Kuniharu Nakamura

 

Consolidated Financials are attached. (See SUPPLEMENTS)

 

Nothing detrimental is knows as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Digital CATV shop channel operator, direct shopping, catalog sales (--100%)

 

(Handing Items): jewelry, apparel, fashion, cosmetics, beauty care, diet, fitness, home interiors, home electric appliances, gourmet, liquor, flower, travel, other

 

Clients: Consumers

            No. of accounts: over 27 million households

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, JSAT Corp,, Eddie Bauer Japan, Cable TV, Sumisho Global Logistics, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Tokyo)

Mizuho Bank (Shinjuku-Shintoshin)

Relations: Satisfactory

 

 


FINANCES

 (In Million Yen)

 

       Terms Ending:

31/12/2013

(Projected)

31/12/2012

(Projected)

31/12/2011

31/12/2010

Annual Sales

 

127,000

120,879

111,503

109,025

Recur. Profit

 

21,000

20,837

15,722

15,390

Net Profit

 

12,500

12,073

9,167

9,311

Total Assets

 

 

49,512

37,404

31,423

Current Assets

 

 

37,851

26,960

22,899

Current Liabs

 

 

18,403

13,868

15,802

Net Worth

 

 

29,640

22,230

14,929

Capital, Paid-Up

 

 

440

440

440

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.06

8.41

2.27

-17.20

    Current Ratio

 

..

205.68

194.40

144.91

    N.Worth Ratio

..

59.86

59.43

47.51

    R.Profit/Sales

 

16.54

17.24

14.10

14.12

    N.Profit/Sales

9.84

9.99

8.22

8.54

    Return On Equity

..

40.73

41.24

62.37

 

Notes: Forecast (or estimated) figures for the 31/03/2012 fiscal term.

 

 


SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, SUMITOMO CORPORATION

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

8,273,043

8,349,371

 

  Cost of Sales

7,354,218

7,285,387

 

      GROSS PROFIT

918,825

863,994

 

  Selling & Adm Costs

698,968

678,509

 

      OPERATING PROFIT

219,857

183,485

 

  Non-Operating P/L

130,530

9,978

 

      RECURRING PROFIT

341,387

280,463

 

      NET PROFIT

263,672

209,792

BALANCE SHEET

 

 

 

 

  Cash

 

821,915

704,313

 

  Receivables

 

1,514,360

1,511,442

 

  Inventory

 

707,105

698,810

 

  Securities, Marketable

20,474

5,239

 

  Other Current Assets

426,452

569,502

 

      TOTAL CURRENT ASSETS

3,490,306

3,489,306

 

  Property & Equipment

606,855

813,135

 

  Intangibles

 

331,618

348,993

 

  Investments, Other Fixed Assets

2,797,990

2,579,068

 

      TOTAL ASSETS

7,226,769

7,230,502

 

  Payables

 

1,102,326

1,026,160

 

  Short-Term Bank Loans

632,267

850,435

 

 

 

 

 

 

  Other Current Liabs

438,377

466,481

 

      TOTAL CURRENT LIABS

2,172,970

2,343,076

 

  Debentures

 

2,981,548

2,916,963

 

  Long-Term Bank Loans

36,785

33,998

 

  Reserve for Retirement Allw

25,635

18,811

 

  Other Debts

 

208,643

235,564

 

      TOTAL LIABILITIES

5,425,581

5,548,412

 

      MINORITY INTERESTS

 

 

 

Common stock

219,279

219,279

 

Additional paid-in capital

282,407

288,868

 

Retained earnings

1,251,411

1,068,193

 

Evaluation p/l on investments/securities

 

 

 

Others

 

49,125

106,803

 

Treasury stock, at cost

(1,034)

(1,053)

 

      TOTAL S/HOLDERS` EQUITY

1,801,188

1,682,090

 

      TOTAL EQUITIES

7,226,769

7,230,502

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

190,417

219,502

 

Cash Flows from Investment Activities

-35,696

-469,378

 

Cash Flows from Financing Activities

-33,273

155,879

 

Cash, Bank Deposits at the Term End

 

821,915

704,313

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

1,801,188

1,682,090

 

 

Current Ratio (%)

160.62

148.92

 

 

Net Worth Ratio (%)

24.92

23.26

 

 

Recurring Profit Ratio (%)

4.13

3.36

 

 

Net Profit Ratio (%)

3.19

2.51

 

 

Return On Equity (%)

14.64

12.47

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.00

Euro

1

Rs.68.31

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

MIRA INFORM REPORT

 

 

Report Date :

10.08.2012

 

IDENTIFICATION DETAILS

 

Name :

BEAUTIFUL GEMS BVBA

 

 

Registered Office :

Hoveniersstraat 2 Bus 427 Antwerpen 2018

 

 

Country :

Belgium

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

24.06.1993

 

 

Legal Form :

Private Limited Company (BL/LX)

 

 

LINE OF BUSINESS :

WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES

 

 

No. of Employees :

Not Available

 

 

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Belgium

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Company detail

 

Business number

450237475

Company name

BEAUTIFUL GEMS BVBA

 

 

Telephone number

-

Address

HOVENIERSSTRAAT 2 BUS 427 ANTWERPEN

Fax number

032323886

Post code

2018

Number of staff

0

Date of establishment

24/06/1993

 

 

 

 

Accounts & ratios

 

Date of latest accounts

Turnover

Profit Before Tax

Net worth

31/12/2011

 

13,857

100,057

31/12/2010

 

8,994

89,890

31/12/2009

 

6,648

82,006

Accounts & ratios

Date of latest accounts

Balance Total

Investments

Capital

Cash Flow

Number of Employees

31/12/2011

1,640,241

 

18,600

26,828

0

31/12/2010

1,883,727

 

18,600

1,482

0

31/12/2009

1,099,785

 

18,600

297,444

0

Trends

Profitability

 

 

Liquidity

 

 

Net worth

 

 

Payment expectations

Past payments

 

Payment expectation days

-

Industry average payment expectation days

194.04

Industry average day sales outstanding

132.49

Day sales outstanding

-

 

 

Court data summary

 

Bankruptcy details

Court action type

no

Protested bills

Bill amount

-

NSSO details

Date of summons

-

 

Business number

450237475

Company name

BEAUTIFUL GEMS BVBA

Fax number

032323886

Date founded

24/06/1993

Company status

active

Company type

Private Limited Company (BL/LX)

Currency

Euro (€)

Date of latest accounts

31/12/2011

Activity code

46761

liable for VAT

yes

Activity description

Wholesale of diamonds and other precious stones

VAT Number

BE.0450.237.475

Belgian Bullettin of Acts Publications

moniteur belge

 

 

 

Contractor details Check Article 30 Bis

Registered contractor number

-

Contractor description

-

Date struck off register

 

 

Personnel limit NSSO

Code

-

Description

-

 

Joint Industrial Committee (JIC)

Export accounts to CSV file

comparison mode

average

median

 

 

 

Profit & loss

 

 

Annual accounts

31-12-2011

%

31-12-2010

%

31-12-2009

Industry average
2011

%

 

Weeks

52

 

52

 

52

 

 

 

Currency

EUR

 

EUR

 

EUR

 

 

Turnover

-

-

-

-

-

47,749,382

-

Total operating expenses

-

-

-

-

-

47,286,219

-

Operating result

35,130

28.55

27,327

40.94

19,389

186,958

-81.21

Total financial income

56

-88.46

485

35.56

358

179,869

-99

Total financial expenses

21,328

13.33

18,819

43.67

13,099

277,117

-92.30

Results on ordinary operations before taxation

13,857

54.08

8,994

35.28

6,648

68,693

-79.83

Taxation

4,216

18.59

3,555

62.00

2,194

27,893

-84.89

Results on ordinary operations after taxation

9,641

77.27

5,439

22.12

4,454

49,296

-80.44

Extraordinary items

526

-78.49

2,445

-

0

11,563

-95.45

Other appropriations

0

-

0.00

-

0.00

-

-

Net result

10,167

28.96

7,884

77.03

4,454

60,844

-83.29

 

other information

Dividends

-

-

-

-

-

151,942

-

Director remuneration

-

-

-

-

-

113,172

-

Employee costs

-

-

-

-

-

168,342

-

      Wages and salary

-

-

-

-

-

145,693

-

      Employee pension costs

-

-

-

-

-

1,095

-

      Social security contributions

-

-

-

-

-

34,354

-

      Other employee costs

0

-

0

-

0

4,049

-100

Amortization and depreciation

12,136

-1.23

12,287

34.98

9,103

21,909

-44.61

 

back to top

 

 

balance sheet

 

 

Annual accounts

31-12-2011

%

31-12-2010

%

31-12-2009

Industry average
2011

%

 

Weeks

52

 

52

 

52

 

 

 

Currency

EUR

 

EUR

 

EUR

 

 

Intangible fixed assets

0

-

0

-

0

2,402

-100

Tangible fixed assets

16,847

-40.86

28,488

-23.53

37,253

210,858

-92.01

      Land & building

-

-

-

-

-

391,203

-

      Plant & machinery

1,619

-16.58

1,941

331

449

27,686

-94.15

      Other tangible assets

15,228

-42.64

26,547

-27.87

36,803

36,833

-58.66

Financial fixed assets

-

-

-

-

-

31,521

-

Total fixed assets

16,847

-40.86

28,488

-23.53

37,253

223,489

-92.46

Inventories

950,917

-3.11

981,472

219

307,377

2,499,717

-61.96

      Raw materials & consumables

-

-

-

-

-

3,812,039

-

      Work in progress

0

-

0

-

0

4,254

-100

      Finished goods

0

-

0

-

0

1,565,084

-100

      Other stocks

950,917

-3.11

981,472

219

307,377

496,524

91.51

Trade debtors

641,703

-26.26

870,255

91.69

453,997

3,696,848

-82.64

Cash

26,828

1710

1,482

-99

297,444

288,197

-90.69

other amounts receivable

2,511

82.51

1,376

-57.87

3,266

434,071

-99

Miscellaneous current assets

1,435

119

655

45.83

449

55,748

-97.43

Total current assets

1,623,394

-12.50

1,855,239

74.61

1,062,533

6,556,662

-75.24

 

current liabilities

Trade creditors

972,680

-33.54

1,463,651

112

687,745

2,529,786

-61.55

Short term group loans

-

-

-

-

-

-

-

Other short term loans

361,281

297

90,859

26.34

71,918

1,809,280

-80.03

Miscellaneous current liabilities

206,223

-10.91

231,485

-1.92

236,013

-50.68

- -

Total current liabilities

1,540,184

-13.76

1,785,995

79.38

995,676

4,637,333

-66.79

 

Long term debts

Long term group loans

-

-

-

-

-

-

- -

Other long term loans

-

-

7,842

-64.52

22,103

-

- -

Other long term liabilities

0

-

0

-

0

189,104

-100

Total long term debts

0

-100

7,842

-64.52

22,103

830,120

-100

 

shareholders equity

Issued share capital

18,600

0

18,600

0

18,600

742,196

-97.49

Share premium account

-

-

-

-

-

93,594

-

Reserves

81,457

14.26

71,290

12.43

63,406

521,569

-84.38

Revaluation reserve

-

-

-

-

-

795,270

-

Total shareholders equity

100,057

11.31

89,890

9.61

82,006

1,289,253

-92.24

Working capital

83,210

20.17

69,244

3.57

66,857

1,919,330

-95.66

Net worth

100,057

11.31

89,890

9.61

82,006

1,286,851

-92.22

 

back to top

 

 

ratio analysis

 

 

Annual accounts

31-12-2011

change(%)

31-12-2010

change(%)

31-12-2009

Industry average
2011

%

 

Trading performance

Profit Before Tax

-

-

-

-

-

1,00

-

Return on capital employed

13.85

50.54

9.20

43.97

6.39

-39,00

35.51

Return on total assets employed

0.84

75.00

0.48

-20.0

0.60

-2,00

42.00

Return on net assets employed

13.85

38.36

10.01

23.43

8.11

-41,00

33.78

Sales / net working capital

-

-

-

-

-

81,00

-

Stock turnover ratio

-

-

-

-

-

36,00

-

Debtor days

-

-

-

-

-

123,00

-

Creditor days

-

-

-

-

-

108,00

-

 

short term stability

Current ratio

1.05

0.96

1.04

-2.80

1.07

5,00

-95.43

Liquidity ratio / acid ratio

0.44

-10.20

0.49

-35.53

0.76

3,00

-85.33

Current debt ratio

15.39

-22.55

19.87

63.67

12.14

23,00

-33.09

Liquidity ratio reprocessed

-

-

-

-

-

-

-

 

long term stability

Gearing

361.08

228

109.80

-4.23

114.65

312,00

15.73

Equity in percentage

6.10

27.88

4.77

-36.06

7.46

-41,00

14.88

Total debt ratio

15.39

-22.90

19.96

60.84

12.41

25,00

-38.44

 

 

 

Rating History

 

Date

Rating

Description

03/08/2012

46

credit against collateral

 

Limit History

date

Credit limit

 

03/08/2012

0

 

 

Industry comparison

Activity code

46761

Activity description

Wholesale of diamonds and other precious stones

industry average credit rating

64.48

Industry average credit limit

140177.31

 

Suspension of payments / moratorium history

Amount

-

Details

-

 

Payment expectations

Payment expectation days

-

Day sales outstanding

-

 

Industry comparison

Activity code

46761

Activity description

Wholesale of diamonds and other precious stones

Industry average payment expectation days

194.04

Industry average day sales outstanding

132.49

 

Industry quartile analysis

Payment expectations

View graph

Company result

-

Lower

132.50

Median

84.18

Upper

42.62

 

Day sales outstanding

View graph

Company result

-

Lower

113.46

Median

57.26

Upper

26.45

 

Protested bills

 

Drawee name

-

Address

-

Bill amount

-

Bill currency

-

Maturity of bill

-

Name of drawer

-

City of drawer

-

 

NSSO details

Business number

450237475

Name of defendant

-

Legal form of defendant

-

Date of summons

-

Labour court

-

 

Bankruptcy details

There is no bankruptcy data against this company

 

 

court data

there is no data for this company

 

Current director details

Name

PAL SHAH

Position

Principal Manager

Street

14 TEN BOGAERDEPLEIN EDEGEM

Post code

2650

Country

Belgium

 

Name

DINESH SHAH

Position

Principal Manager

Street

14 TEN BOGAERDEPLEIN EDEGEM

Post code

2650

Country

Belgium

 

 

Former director details

 

---

 

 


DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.17

UK Pound

1

Rs.86.42

Euro

1

Rs.68.26

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)