MIRA
INFORM REPORT
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Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
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Name : |
SIGNATURE IMPEX CO., LTD. |
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Formerly Known As : |
BHARGAV GEMS CO., LTD. |
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Registered Office : |
Gemopolis Industrial Estate, 3rd Floor, 40/2 Soi 31, Sukhapibal 2 Road, Dokmai, Pravet, Bangkok 10250 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
08.07.1996 |
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Com. Reg. No.: |
0105539075349 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of Diamonds and Jewelry
Products |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Thailand |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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%.
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Source : CIA |
Company Name
SIGNATURE IMPEX CO., LTD.
[FORMER : BHARGAV GEMS CO., LTD.]
SUMMARY
BUSINESS ADDRESS : GEMOPOLIS
INDUSTRIAL ESTATE,
3rd FLOOR,
40/2 SOI 31,
SUKHAPIBAL 2 ROAD,
DOKMAI, PRAVET,
BANGKOK 10250
TELEPHONE : [66] 2727-0297 ,
2727-0519-21
FAX : [66] 2727-0296
E-MAIL ADDRESS : suihiangjewelry@yahoo.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1996
REGISTRATION NO. : 0105539075349
TAX ID NO. : 3011743157
CAPITAL REGISTERED : BHT.
32,000,000
CAPITAL PAID-UP : BHT.
32,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NILESH KUMAR BHOLABHAI
PATEL, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 20
LINES OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
TRADER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on July
8, 1996 as
a private limited
company under the
registered name BHARGAV
GEMS CO., LTD.,
by Indian groups,
in order to
operate as a jewelry
trader.
On May 27,
2005, subject’s name
was changed to
SIGNATURE IMPEX CO.,
LTD. It currently
employs 20 staff.
The subject’s registered address
was initially located
at 7/6 Soi Suwansawat,
Rama 4 Rd., Thungmahamek, Sathorn,
Bangkok 10120.
On May 9,
2004, subject’s registered
address was changed
to 1535/108 Chan
Rd., Thungwatdon, Sathorn,
Bangkok 10120.
On June 6, 2007, the subject’s
registered address was
relocated to 40/2 Soi
31, Sukhapibal 2
Rd., Dokmai, Pravet,
Bangkok 10250, and
this is the
subject’s current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Kumar Bholabhai
Patel |
|
Indian |
34 |
|
Mrs. Vaishali Nilesh
Patel |
|
Indian |
33 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Kumar
Bholabhai Patel is
the Managing Director.
He is Indian
nationality with the
age of 34 years
old.
BUSINESS OPERATIONS
The subject is engaged in
importing and distributing
diamonds and gemstones for
jewelry production. The subject
is also exporting
precious, semi-precious stones,
fashion accessories, diamond
& gemstones, jewelry
and silverware products
to worldwide market.
The subject hires
local manufactures for the
production of silverware and
jewelry products.
IMPORT
Diamonds and gemstones are
imported from India,
Pakistan, Belgium, South
Africa and Hong
Kong.
EXPORT
Its products are
sold to customers
both domestic and
international markets, which
80% of the
products is exported
to Germany, France, Belgium,
Canada, Switzerland, Japan, United
Kingdom, Italy, Hong
Kong, Republic of
China, India and United States
of America, the
remaining 20% is
sold locally.
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 20 staff
[office and sales
staff].
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in
commercial/residential area.
COMMENT
The subject’s business in the
previous year was
brisk due to consumption improvement
from export markets in Asian region.
Market expansion has increased
its sales revenue in the previous
year.
FINANCIAL INFORMATION
The capital was
initially 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
December 13, 2001
Bht. 20,000,000 on
December 19, 2002
Bht. 32,000,000 on
April 11, 2006
The latest registered
capital was increased
to Bht. 32,000,000 divided
into 320,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nilesh Kumar
Bholabhai Patel Nationality: Indian Address : 12 Nanee
Nakar, A.K. Rd., Suraj,
India |
195,200 |
61.00 |
|
Mrs. Jayaben Bholabhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mrs. Vaishali Nilesh
Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
|
Mr. Bholabhai Bagerbhai Patel Nationality: Indian Address : Mumbai,
India |
41,600 |
13.00 |
Total Shareholder : 4
Share Structure
[as at April
30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Indian |
4 |
320,000 |
100.00 |
|
Total |
4 |
320,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Amornrat Boontanakorn
No. 4769
Note.
The 2012 financial
statement was not
available during investigation.
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2011, 2010 & 2009
were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
345,610.93 |
227,941.29 |
37,165.41 |
|
Trade Accounts & Other
Receivable |
227,242,609.18 |
19,295,542.11 |
17,349,502.37 |
|
Inventories |
80,234,293.09 |
150,519,273.92 |
91,673,951.86 |
|
Other Current Assets |
78,011.70 |
481,090.53 |
1,341,420.34 |
|
Total Current Assets
|
307,900,524.90 |
170,523,847.85 |
110,402,039.98 |
|
|
|
|
|
|
Real Estate for Investment |
14,462,037.63 |
15,063,562.63 |
- |
|
Fixed Assets |
13,861,857.28 |
7,499,048.68 |
24,175,293.06 |
|
Intangible Assets |
254,850.75 |
362,463.15 |
326,974.32 |
|
Other Non-current Assets |
27,000.00 |
- |
- |
|
Total Assets |
336,506,270.56 |
193,448,922.31 |
134,904,307.36 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial Institutions |
- |
- |
354,309.33 |
|
Trade Accounts & Other
Payable |
292,163,731.94 |
147,978,041.21 |
86,133,268.74 |
|
Current Portion of Long-term
Loans |
2,509,373.43 |
2,502,754.02 |
2,589,212.49 |
|
Short-term Loan |
- |
6,344.00 |
- |
|
Accrued Income Tax |
251,245.79 |
330,639.22 |
- |
|
Accrued Expenses |
- |
- |
383,311.33 |
|
Other Current Liabilities |
39,800.00 |
64,800.00 |
34,300.00 |
|
Total Current Liabilities |
294,964,151.16 |
150,882,578.45 |
89,494,401.89 |
|
Long-term Loan from Related Person |
- |
- |
1,720,000.00 |
|
Long-term Loan, Net of Current Portion |
4,377,490.05 |
6,881,813.66 |
9,333,230.84 |
|
Other Non-current Liabilities |
52,500.00 |
52,500.00 |
52,500.00 |
|
Total Liabilities |
299,394,141.21 |
157,816,892.11 |
100,600,132.73 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 320,000 shares
|
32,000,000.00 |
32,000,000.00 |
32,000,000.00 |
|
Capital Paid |
32,000,000.00 |
32,000,000.00 |
32,000,000.00 |
|
Retained Earning -
Unappropriated |
5,112,129.35 |
3,632,030.20 |
2,304,174.63 |
|
Total Shareholders' Equity |
37,112,129.35 |
35,632,030.20 |
34,304,174.63 |
|
Total Liabilities &
Shareholders' Equity |
336,506,270.56 |
193,448,922.31 |
134,904,307.36 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2011 |
2009 |
|
|
|
|
|
|
Sales |
609,185,447.74 |
483,619,407.40 |
300,975,247.13 |
|
Other Income |
7,303,170.11 |
10,399,521.50 |
1,072,909.70 |
|
Total Revenues |
616,488,617.85 |
494,018,928.90 |
302,048,156.83 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
599,857,389.29 |
474,523,467.04 |
291,913,572.63 |
|
Selling Expenses |
3,137,517.41 |
9,191,869.94 |
1,650,962.38 |
|
Administrative Expenses |
10,718,331.49 |
7,642,315.09 |
5,972,000.98 |
|
Total Expenses |
613,713,238.19 |
491,357,652.07 |
299,536,535.99 |
|
Profit / [Loss] before
Financial Cost & Income Tax |
2,7755,379.66 |
2,661,276.83 |
2,511,620.84 |
|
Financial Cost |
[648,409.72] |
[742,157.04] |
[1,451,813.17] |
|
Profit / [Loss] before Income
Tax |
2,126,969.94 |
1,919,119.79 |
1,059,807.67 |
|
Income Tax |
[646,870.79] |
[591,264.22] |
[320,667.40] |
|
Net Profit / [Loss] |
1,480,099.15 |
1,327,855.57 |
739,140.27 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
1.13 |
1.23 |
|
QUICK RATIO |
TIMES |
0.77 |
0.13 |
0.19 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
43.95 |
64.49 |
12.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.81 |
2.50 |
2.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
48.82 |
115.78 |
114.63 |
|
INVENTORY TURNOVER |
TIMES |
7.48 |
3.15 |
3.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
136.15 |
14.56 |
21.04 |
|
RECEIVABLES TURNOVER |
TIMES |
2.68 |
25.06 |
17.35 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
177.78 |
113.82 |
107.70 |
|
CASH CONVERSION CYCLE |
DAYS |
7.20 |
16.52 |
27.97 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.47 |
98.12 |
96.99 |
|
SELLING & ADMINISTRATION |
% |
2.27 |
3.48 |
2.53 |
|
INTEREST |
% |
0.11 |
0.15 |
0.48 |
|
GROSS PROFIT MARGIN |
% |
2.73 |
4.03 |
3.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.46 |
0.55 |
0.83 |
|
NET PROFIT MARGIN |
% |
0.24 |
0.27 |
0.25 |
|
RETURN ON EQUITY |
% |
3.99 |
3.73 |
2.15 |
|
RETURN ON ASSET |
% |
0.44 |
0.69 |
0.55 |
|
EARNING PER SHARE |
BAHT |
4.63 |
4.15 |
2.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.82 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.07 |
4.43 |
2.93 |
|
TIME INTEREST EARNED |
TIMES |
4.28 |
3.59 |
1.73 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
25.96 |
60.68 |
|
|
OPERATING PROFIT |
% |
4.29 |
5.96 |
|
|
NET PROFIT |
% |
11.47 |
79.65 |
|
|
FIXED ASSETS |
% |
84.85 |
(68.98) |
|
|
TOTAL ASSETS |
% |
73.95 |
43.40 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 25.96%. Turnover has increased from THB
483,619,407.40 in 2010 to THB 609,185,447.74 in 2011. While net profit has
increased from THB 1,327,855.57 in 2010 to THB 1,480,099.15 in 2011. And total
assets has increased from THB 193,448,922.31 in 2010 to THB 336,506,270.56 in
2011.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
2.73 |
Deteriorated |
Industrial Average |
9.66 |
|
Net Profit Margin |
0.24 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.44 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
3.99 |
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 2.73%. 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 0.24%
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 0.44%, 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 3.99%, higher figure when compared
with those of its average competitors in the same industry, indicated that
business was an efficient profits 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 : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.04 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.77 |
|
|
|
|
Cash Conversion Cycle |
7.20 |
|
|
|
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 1.04 times in 2011, decreased from 1.13 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 0.77 times in 2011,
increased from 0.13 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 8 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
8.07 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
4.28 |
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 4.29 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 0.89 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 |
43.95 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
1.81 |
Impressive |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
48.82 |
|
|
|
|
Inventory Turnover |
7.48 |
Impressive |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
136.15 |
|
|
|
|
Receivables Turnover |
2.68 |
Satisfactory |
Industrial Average |
3.31 |
|
Payables Conversion Period |
177.78 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.68 and 25.06
in 2011 and 2010 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
2011 decreased from 2010. 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 decreased from 116 days at the
end of 2010 to 49 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 3.15 times in year 2010 to 7.48 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.81 times and 2.5
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.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.