MIRA
INFORM REPORT
|
Report Date : |
06.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRIYAANK INTERNATIONAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
13th Floor, Bangkok Gems & Jewelry Tower, 322/23 Surawong Road, Siphraya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
09.04.1990 |
|
|
|
|
Com. Reg. No.: |
0105533040934 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamond, Gems and Jewelry Products |
|
|
|
|
No. of Employees : |
9 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
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 enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
Source
: CIA
Company name
PRIYAANK
INTERNATIONAL COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 13th FLOOR,
BANGKOK GEMS & JEWELRY TOWER,
322/23 SURAWONG
ROAD, SIPHRAYA,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2238-3880-3
FAX :
[66] 2238-3884
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION
NO. : 0105533040934
TAX
ID NO. : 3101820218
CAPITAL REGISTERED : BHT. 20,500,000
CAPITAL PAID-UP : BHT.
20,500,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRADEEP RAGHUNATH
LODHA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 9
LINES
OF BUSINESS : DIAMOND, GEMS
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 April 9, 1990
as a private
limited company under
the name style
PRIYAANK INTERNATIONAL COMPANY
LIMITED, by Thai
and Indian groups, with
the business objective to
operate as a jewelry
trading. It currently
employs 9 staff.
The
subject’s registered address
is 13th Floor,
Bangkok Gems &
Jewelry Tower, 322/23 Surawong Rd., Siphraya, Bangrak, Bangkok 10500, and
this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pradeep Raghunath Lodha |
|
Indian |
49 |
|
Ms. Nirmala Sacheti |
|
Indian |
68 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pradeep Raghunath
Lodha is the
Managing Director.
He is Indian
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject is
engaged in international
trading business as
the followings:
- Importing and
distributing of diamonds
and gemstone.
- Exporting of
Thai cutting diamonds
and gems, as
well as diamond
and gold jewelry
products.
PURCHASE
The products are purchased from suppliers and manufacturers both domestic and
overseas, mainly in India, Hong
Kong, Belgium and
South Africa.
SALES [LOCAL]
The products are
sold locally to
manufacturers, traders and
end-users.
EXPORT
Some of the
products are exported to Hong Kong,
Japan, U.S.A. and countries
in Europe.
RELATED AND
AFFILIATED COMPANY
Prestorise Intertrade Co.,
Ltd.
Business Type :
Importer, and distributor
of jewelry products
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.
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 9 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Note:
Refer
to your given
the subject’s address
at 14th Floor, Bangkok
Gems & Jewelry Tower, please
be informed that
the correct address
is 13th Floor,
Bangkok Gems & Jewelry Tower.
COMMENT
Subject
reported good business
performance in the past
years. With strong
demand of the
products both domestic and overseas has challenged the company of its proficient performance and
quality service. However, the
subject might have
an impact from
a strong Thai
Baht at the
moment which is
unfavourable to the
export business. In
general, the subject
is doing a
moderate business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The
capital was increased
later as following:
Bht. 2,000,000
on September 26,
1990
Bht. 6,000,000
on February 4,
1994
Bht. 15,000,000
on January 18,
1995
Bht. 20,000,000
on December 25,
2002
The
latest registered capital
was increased to
Bht. 20,500,000 divided into 205,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa Naruela Nationality: Thai Address : 32/31-32
Sukhumvit 26 Rd.,
Klongton, Klongtoey, Bangkok |
101,547 |
49.53 |
|
Mr. Pradeep Raghunath Lodha Nationality: Indian Address : 322/23
Surawong Rd., Siphraya,
Bangrak, Bangkok |
59,999 |
29.27 |
|
Ms. Nirmala Sacheti Nationality: Indian Address : 1867/85
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
26,950 |
13.15 |
|
Mrs. Sukesee Lodha Nationality: Indian Address : 1867/85 Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
13,500 |
6.58 |
Mr. Nikorn Kijvanich
Nationality: Thai Address : 69/71
Rama 4 Rd.,
Pomprab, Bangkok |
3,000 |
1.46 |
|
|
|
|
|
Ms. Araya Thirachawalit Nationality: Thai Address : 510
Charansanitwong 66/1 Rd.,
Bangplad, Bangkok |
3 |
0.01 |
Ms. Mahee Lodha Nationality: Thai Address : 1867/93
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
104,551 |
51.00 |
|
Foreign-Indian |
3 |
100,449 |
49.00 |
|
Total |
7 |
205,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Nongnuch Ouitrakul No. 2241
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
6,158,677.78 |
454,081.16 |
281,199.62 |
|
Trade Accounts Receivable |
45,214,617.09 |
29,851,910.51 |
57,914,918.87 |
|
Inventories |
91,966,607.61 |
89,799,068.83 |
74,542,310.46 |
|
Other Current Assets
|
105,669.66 |
77,891.40 |
80,479.40 |
|
|
|
|
|
|
Total Current Assets
|
143,445,572.14 |
120,182,951.90 |
132,818,908.35 |
|
Cash at Bank pledged as
a Collateral |
- |
- |
55,893.70 |
|
Fixed Assets |
3,109,177.15 |
180,566.72 |
191,447.94 |
|
Intangible Assets |
17,346.03 |
23,808.28 |
34,057.09 |
|
Total Assets |
146,572,095.32 |
120,387,326.90 |
133,100,307.08 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
96,131,381.87 |
70,479,733.92 |
74,023,927.40 |
|
Trade Accounts & Other
Payable |
14,851,266.19 |
17,333,733.00 |
26,600,920.92 |
|
Current Portion of
Financial Lease Contract Liabilities |
600,034.76 |
- |
- |
|
Accrued Income Tax |
118,238.39 |
494,520.25 |
- |
|
Other Current Liabilities |
27,860.78 |
50,045.07 |
1,975,128.47 |
|
|
|
|
|
|
Total Current Liabilities |
111,728,781.99 |
88,358,032.24 |
102,599,976.79 |
|
Financial Lease Contract
Liabilities, Net of
Current Portion |
1,551,825.85 |
- |
- |
|
Total Liabilities |
113,280,607.84 |
88,358,032.24 |
102,599,976.79 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 205,000 shares |
20,500,000.00 |
20,500,000.00 |
20,500,000.00 |
|
|
|
|
|
|
Capital Paid |
20,500,000.00 |
20,500,000.00 |
20,500,000.00 |
|
Retained Earning -
Unappropriated |
12,791,487.48 |
11,529,294.66 |
10,000,330.29 |
|
Total Shareholders' Equity |
33,291,487.48 |
32,029,294.66 |
30,500,330.29 |
|
Total Liabilities &
Shareholders' Equity |
146,572,095.32 |
120,387,326.90 |
133,100,307.08 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
184,205,063.39 |
157,029,573.69 |
129,612,593.69 |
|
Gain on Exchange Rate |
- |
1,188,893.20 |
- |
|
Other Income |
92,249.79 |
535,699.59 |
227,996.15 |
|
Total Revenues |
184,297,313.18 |
158,754,166.48 |
129,840,589.84 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
170,479,529.96 |
146,801,845.19 |
119,329,736.89 |
|
Selling Expenses |
777,905.34 |
792,217.61 |
711,221.82 |
|
Administrative Expenses |
4,576,849.34 |
4,881,795.37 |
4,508,849.58 |
|
Loss on Exchange Rate |
3,688,452.25 |
- |
458,700.62 |
|
Other Expenses |
- |
- |
88,297.35 |
|
Total Expenses |
179,522,736.89 |
152,475,858.17 |
125,096,806.26 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
4,774,576.29 |
6,278,308.31 |
4,743,783.58 |
|
Interest Expenses |
[2,891,945.08] |
[3,857,315.31] |
[2,642,029.74] |
|
Profit before Income
Tax |
1,882,631.21 |
2,420,993.00 |
2,101,753.84 |
|
Income Tax |
[620,438.39] |
[892,028.63] |
[731,747.24] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,262,192.82 |
1,528,964.37 |
1,370,006.60 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
1.36 |
1.29 |
|
QUICK RATIO |
TIMES |
0.46 |
0.34 |
0.57 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
59.25 |
869.65 |
677.01 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.26 |
1.30 |
0.97 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
196.90 |
223.27 |
228.01 |
|
INVENTORY TURNOVER |
TIMES |
1.85 |
1.63 |
1.60 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
89.59 |
69.39 |
163.09 |
|
RECEIVABLES TURNOVER |
TIMES |
4.07 |
5.26 |
2.24 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
31.80 |
43.10 |
81.37 |
|
CASH CONVERSION CYCLE |
DAYS |
254.70 |
249.56 |
309.73 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.55 |
93.49 |
92.07 |
|
SELLING & ADMINISTRATION |
% |
2.91 |
3.61 |
4.03 |
|
INTEREST |
% |
1.57 |
2.46 |
2.04 |
|
GROSS PROFIT MARGIN |
% |
7.50 |
7.61 |
8.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.59 |
4.00 |
3.66 |
|
NET PROFIT MARGIN |
% |
0.69 |
0.97 |
1.06 |
|
RETURN ON EQUITY |
% |
3.79 |
4.77 |
4.49 |
|
RETURN ON ASSET |
% |
0.86 |
1.27 |
1.03 |
|
EARNING PER SHARE |
BAHT |
6.16 |
7.46 |
6.68 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.77 |
0.73 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.40 |
2.76 |
3.36 |
|
TIME INTEREST EARNED |
TIMES |
1.65 |
1.63 |
1.80 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
17.31 |
21.15 |
|
|
OPERATING PROFIT |
% |
(23.95) |
32.35 |
|
|
NET PROFIT |
% |
(17.45) |
11.60 |
|
|
FIXED ASSETS |
% |
1,621.90 |
(5.68) |
|
|
TOTAL ASSETS |
% |
21.75 |
(9.55) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 17.31%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.50 |
Satisfactory |
Industrial
Average |
9.66 |
|
Net Profit Margin |
0.69 |
Impressive |
Industrial
Average |
(0.20) |
|
Return on Assets |
0.86 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
3.79 |
Impressive |
Industrial
Average |
(0.72) |
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 7.5%. 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. Net Profit Margin ratio is 0.69%,
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
0.86%, 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 3.79%, 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 Stable
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.28 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.46 |
|
|
|
|
Cash Conversion Cycle |
254.70 |
|
|
|
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 1.28 times in 2011, decrease from 1.36 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 0.46 times in 2011,
increase from 0.34 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 255 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.77 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
3.40 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
1.65 |
Impressive |
Industrial
Average |
0.63 |
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 lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.66 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 0.77 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
59.25 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.26 |
Satisfactory |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
196.90 |
|
|
|
|
Inventory Turnover |
1.85 |
Satisfactory |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
89.59 |
|
|
|
|
Receivables Turnover |
4.07 |
Impressive |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
31.80 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.07 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 223 days at the
end of 2010 to 197 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 1.63 times in year 2010 to 1.85 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.26 times and 1.3
times in 2011 and 2010 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 Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
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.54.88 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.