MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
BELGA DIAM CO., LTD. |
|
|
|
|
Registered Office : |
9th Floor, Gems
Tower, 1249/90 Charoenkrung Road,
Suriyawongse, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.01.1988 |
|
|
|
|
Com. Reg. No.: |
0105531005864 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and
Exporter of Diamond and Gemstones
|
|
|
|
|
No. of Employees : |
5 |
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 achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest levels
in the world, which puts upward pressure on wages in some industries. Thailand
also attracts nearly 2.5 million migrant workers from neighboring countries.
The Thai government is implementing a nation-wide 300 baht ($10) per day
minimum wage policy and deploying new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its five
surrounding provinces, crippling the manufacturing sector. Industry recovered
from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The
government has approved flood mitigation projects worth $11.7 billion, which
were started in 2012, to prevent similar economic damage, and an additional $75
billion for infrastructure over the next seven years with a plan to start in
2013.
Source
: CIA
Company name
BELGA DIAM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
GEMS TOWER,
1249/90 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2234-4622,
2234-6281
FAX :
[66] 2237-1435
E-MAIL
ADDRESS : belga_bkk@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531005864
TAX
ID NO. : 3101493894
CAPITAL REGISTERED : BHT. 17,000,000
CAPITAL PAID-UP : BHT.
17,000,000
SHAREHOLDER’S PROPORTION : THAI : 51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAMESH HIRALAL
MEHTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMOND AND
GEMSTONES
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
January 26, 1988 as
a private limited
company under the
name style BELGA DIAM CO.,
LTD., by Thai and Indian
groups, with the
objective to be
engaged in jewelry
trading business. It
currently employs 5
staff.
The
subject’s registered address
was initially located
at Room. 76, Executive
House, 410/76 Surawong
Rd., Siphaya, Bangrak,
Bangkok 10500.
Later,
its registered address
was relocated to
the addresses as
follows:
On
June 13, 1989, it was
relocated to 293/32
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On
June 9, 1994, it was
moved to 16th Floor,
Bangkok Gems & Jewellery
Trade Center, 322/31 Surawong
Rd., Siphaya, Bangrak,
Bangkok 10500.
In
October 2001, it was
finally relocated to 9th Flr.,
Gems Tower, 1249/90 Charoenkrung
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ramesh Hiralal Mehta |
|
Indian |
50 |
|
Mrs. Manju Ramesh Mehta |
|
Indian |
- |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ramesh Hiralal Mehta
is the Managing
Director.
He is Indian
nationality with the
age of 50
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing of jewelry
material supplies, mainly
fancy diamonds, eight-cut
diamonds, brilliant and
polished diamonds with
various sizes, as
well as gemstones
and gold for
jewelry manufacturing business.
The subject is
also exporting of
diamonds, gemstones and
Thai jewelry products.
IMPORT
The
jewelry material supplies
are imported from
India, Belgium and
Hong Kong.
SALES [LOCAL]
The products are
sold locally by
wholesale to manufacturers
and end-users.
EXPORT
Local diamonds, gemstones
and jewelry products
are exported to
Hong Kong, India, Republic
of China and
European countries.
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
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 5
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
Subject
was formed in 1988 as an
importer and distributor of diamonds and gemstones.
Current economic slowdown
has resulted to
decline consumption of
jewelry products especially in
EU markets.
Nevertheless, ongoing
stronger of the
Thai Baht becomes another
key challenge that
plays a vital
part for an
import business including
the subject in
the year 2012-2013.
Domestic consumption remains
strong in the
first three months of
this year.
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. 5,000,000
on July
12, 1991
Bht. 17,000,000
on August
25, 1992
The
latest registered capital
was increased to
Bht. 17,000,000 divided into 170,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ramesh Hiralal Mehta Nationality: Indian Address : 57/12
Rama 4 Rd.,
Thungmahamek,
Sathorn, Bangkok |
51,000 |
30.00 |
|
Mrs. Manju Ramesh Mehta Nationality: Indian Address : 57/12
Rama 4 Rd.,
Thungmahamek, Sathorn,
Bangkok |
32,300 |
19.00 |
|
Mr. Sathien Yimprai Nationality: Thai Address : 36
Moo 3, Kokchang, Pakhai,
Ayutthaya |
18,700 |
11.00 |
|
Mr. Snga Dechalamai Nationality: Thai Address : 482/7
Charanasanitwong Rd., Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mr. Veera Dechalamai Nationality: Thai Address : 482/7
Charanasanitwong Rd., Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Ms. Ratananaporn Parung Nationality: Thai Address : 540/4 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mrs. Chalor Padawan Nationality: Thai Address : 482/5 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mr. Pairat Padawan Nationality: Thai Address : 482/5 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
Total Shareholders : 8
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
86,700 |
51.00 |
|
Foreign - Indian |
2 |
83,300 |
49.00 |
|
Total |
8 |
170,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Ronakorn
Rerksanthitiwong No. 4645
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 |
9,747,892.46 |
4,489,271.42 |
1,637,209.10 |
|
Trade Accounts Receivable |
23,862,848.13 |
16,444,825.21 |
17,627,270.36 |
|
Inventories |
39,929,674.54 |
28,607,248.96 |
25,479,427.44 |
|
Other Current Assets
|
184,121.85 |
223,091.31 |
180,606.58 |
|
Total Current Assets
|
73,724,536.98 |
49,764,436.90 |
44,924,513.48 |
|
|
|
|
|
|
Fixed Assets |
7,137.94 |
68,351.03 |
180,079.69 |
|
Other Non-current Assets |
20,093.27 |
20,093.27 |
20,093.27 |
|
Total Assets |
73,751,768.19 |
49,852,881.20 |
45,124,686.44 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft from Bank |
- |
- |
293,464.27 |
|
Trade Accounts Payable |
39,175,174.81 |
17,486,775.02 |
12,001,263.64 |
|
Loan from Financial
Institutions |
12,862,450.39 |
11,407,176.33 |
12,155,837.03 |
|
Other Current Liabilities |
230,551.83 |
167,690.25 |
88,382.07 |
|
Total Current Liabilities |
52,268,177.03 |
29,061,641.60 |
24,538,947.01 |
|
Employee Benefits Obligation |
463,452.00 |
356,470.00 |
- |
|
Total Liabilities |
52,731,629.03 |
29,418,111.60 |
24,538,947.01 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 170,000 shares |
17,000,000.00 |
17,000,000.00 |
17,000,000.00 |
|
Capital Paid |
17,000,000.00 |
17,000,000.00 |
17,000,000.00 |
|
Retained Earning -
Unappropriated |
4,020,139.16 |
3,434,769.60 |
3,585,739.43 |
|
Total Shareholders' Equity |
21,020,139.16 |
20,434,769.60 |
20,585,739.43 |
|
Total Liabilities & Shareholders' Equity |
73,751,768.19 |
49,852,881.20 |
45,124,686.44 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
49,227,158.85 |
45,677,362.72 |
47,108,284.41 |
|
Other Income |
- |
2,497,630.12 |
175,287.54 |
|
Total Revenues |
49,227,158.85 |
48,174,992.84 |
47,283,571.95 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
44,536,999.96 |
44,633,078.88 |
43,544,637.82 |
|
Selling Expenses |
456,300.17 |
576,924.37 |
543,619.14 |
|
Administrative Expenses |
2,862,884.46 |
1,977,892.12 |
1,754,591.99 |
|
Total Expenses |
47,856,184.59 |
47,187,895.37 |
45,842,848.95 |
|
Profit before Financial Cost &
Income Tax |
1,370,974.26 |
987,097.47 |
1,440,723.00 |
|
Financial Cost |
[467,042.63] |
[550,554.09] |
[975,757.85] |
|
|
|
|
|
|
Profit before Income Tax |
903,931.63 |
436,543.38 |
464,965.15 |
|
Income Tax |
[318,562.07] |
[231,043.21] |
[170,547.80] |
|
Net Profit / [Loss] |
585,369.56 |
205,500.17 |
294,417.35 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.41 |
1.71 |
1.83 |
|
QUICK RATIO |
TIMES |
0.64 |
0.72 |
0.79 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6,896.55 |
668.28 |
261.60 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.67 |
0.92 |
1.04 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
327.24 |
233.94 |
213.57 |
|
INVENTORY TURNOVER |
TIMES |
1.12 |
1.56 |
1.71 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
176.93 |
131.41 |
136.58 |
|
RECEIVABLES TURNOVER |
TIMES |
2.06 |
2.78 |
2.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
321.06 |
143.00 |
100.60 |
|
CASH CONVERSION CYCLE |
DAYS |
183.12 |
222.35 |
249.55 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.47 |
97.71 |
92.44 |
|
SELLING & ADMINISTRATION |
% |
6.74 |
5.59 |
4.88 |
|
INTEREST |
% |
0.95 |
1.21 |
2.07 |
|
GROSS PROFIT MARGIN |
% |
9.53 |
7.75 |
7.94 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.78 |
2.16 |
3.06 |
|
NET PROFIT MARGIN |
% |
1.19 |
0.45 |
0.62 |
|
RETURN ON EQUITY |
% |
2.78 |
1.01 |
1.43 |
|
RETURN ON ASSET |
% |
0.79 |
0.41 |
0.65 |
|
EARNING PER SHARE |
BAHT |
3.44 |
1.21 |
1.73 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.71 |
0.59 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.51 |
1.44 |
1.19 |
|
TIME INTEREST EARNED |
TIMES |
2.94 |
1.79 |
1.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.77 |
(3.04) |
|
|
OPERATING PROFIT |
% |
38.89 |
(31.49) |
|
|
NET PROFIT |
% |
184.85 |
(30.20) |
|
|
FIXED ASSETS |
% |
(89.56) |
(62.04) |
|
|
TOTAL ASSETS |
% |
47.94 |
10.48 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 7.77%. Turnover has increased from THB 45,677,362.72
in 2010 to THB 49,227,158.85 in 2011. While net profit has increased from THB
205,500.17 in 2010 to THB 585,369.56 in 2011. And total assets has increased
from THB 49,852,881.20 in 2010 to THB 73,751,768.19 in 2011.
PROFITABILITY : IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.53 |
Satisfactory |
Industrial
Average |
9.66 |
|
Net Profit Margin |
1.19 |
Impressive |
Industrial
Average |
(0.20) |
|
Return on Assets |
0.79 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
2.78 |
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 9.53%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 1.19% 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 0.79%, 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.
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 2.78%, 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 |
1.41 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
183.12 |
|
|
|
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 1.41 times in 2011, decreased from 1.71 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 0.64 times in 2011,
decreased from 0.72 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 184 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.71 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
2.51 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
2.94 |
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 2.94 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 0.71 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
6,896.55 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
0.67 |
Deteriorated |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
327.24 |
|
|
|
|
Inventory Turnover |
1.12 |
Acceptable |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
176.93 |
|
|
|
|
Receivables Turnover |
2.06 |
Acceptable |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
321.06 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.06 and 2.78 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 increased from 234 days at the
end of 2010 to 327 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 1.56 times in year 2010 to 1.12 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.67 times and 0.92
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market liquidity.
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 : |
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.