MIRA
INFORM REPORT
|
Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
MILLENNIUM
DIAMOND CO., LTD. |
|
|
|
|
Registered Office : |
Room 401-A, 4th Floor, Rasamee Thavorn, Building, 278 Silom Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.03.1999 |
|
|
|
|
Com. Reg. No.: |
0105542022021 [Former : 344/2542] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
IMPORTER, DISTRIBUTOR
AND EXPORTER of DIAMONDS,
GEMSTONES AND JEWELRY PRODUCTS |
|
|
|
|
No. of Employees : |
04 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
MILLENNIUM DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
401-A, 4th FLOOR,
RASAMEE THAVORN
BUILDING, 278
SILOM ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-3967-9
FAX :
[66] 2238-3966
MOBILE
PHONE : [66]
081 810-4161 [MR. RITESH JITENDRA
DAVE]
E-MAIL
ADDRESS : millenniumdiamond@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542022021 [Former : 344/2542]
TAX
ID NO. : 3021000363
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RITESH JITENDRA DAVE,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS, GEMSTONES AND JEWELRY
PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on March
26, 1999 as
a private limited
company under the
name style MILLENNIUM
DIAMOND CO., LTD. by
Thai and Indian
groups, with the
business objective to
trade of diamonds,
gemstones and jewelry
products to both
local and overseas
markets. It currently
employs 4 staff.
The subject’s registered address
was initially located at
30-38 Mahesak Rd.,
Soi 3, Silom,
Bangrak, Bangkok 10500.
On November 24,
2010, its registered address
was relocated to
Room 401-A, 4th Floor,
Rasamee Thavorn Building,
278 Silom Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ritesh Jitendra Dave |
|
Indian |
40 |
|
Mr. Ashish Jitendra Dave |
|
Indian |
32 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ritesh Jitendra
Dave is the
Managing Director.
He is Indian
nationality with the
age of 40
years old.
BUSINESS OPERATIONS
The subject’s activities
are trader and exporter of diamonds, specialized in
tapers, baguettes, round brilliant
and princess cut
at all sizes
and colors, as
well as gemstones
and jewelry products.
IMPORT
Most of the products
are imported from
suppliers in India,
Republic of China
and South Africa,
and the rest is
purchased locally.
MAJOR SUPPLIER
Sheetal Manufacturing Co. Pvt.
Ltd. : India
SALES
The products are
sold by wholesale
to customers both
domestic and overseas
such as Hong
Kong, Japan, India
and the countries
in European region.
MAJOR CUSTOMERS
Jewelry Princess Co.,
Ltd. : Thailand
Thai Jewelry Manufacturing
Co., Ltd. : Thailand
Choon Jewelry Co.,
Ltd. : 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.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
CREDIT
Sales are cash
or on the
credits term of
30-60 days.
Local bills are
paid on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
[Suriyawongse Branch :
297 Surawong Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
4 staff.
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial area.
COMMENT
The subject’s operating performance in 2011 was
moderate. Sales had
increased dramatically in 2012,
while current economic improvement has spurred demand of diamond, precious
stone and jewelry products especially
in Asian markets. In the first
quarter of 2013,
the subject disclosed
a positive business
performance.
FINANCIAL INFORMATION
The capital was
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 February 26,
2001
Bht. 15,000,000
on February 21,
2005
The latest
registered capital was
increased to Bht. 15,000,000 divided
into 150,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 29,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Lamyai Kongnoon Nationality: Thai Address : 27
Moo 4, T. Thongnean, A. Khanom,
Nakornsrithammarat |
76,500 |
51.00 |
|
Mr. Ritesh Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
32,000 |
21.33 |
|
Mr. Ashish Jitendra Dave Nationality: Indian Address : 278
Silom Rd., Suriyawongs, Bangrak,
Bangkok |
31,500 |
21.00 |
|
Mr. Nitin Manohar Dave Nationality: Indian Address : 278 Silom
Rd., Suriyawongs, Bangrak,
Bangkok |
10,000 |
6.67 |
Total Shareholders : 4
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
76,500 |
51.00 |
|
Foreign - Indian |
3 |
73,500 |
49.00 |
|
Total |
4 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Pinpinath
Parichartsombat No. 5841
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 |
83,931.74 |
379,330.25 |
426,661.79 |
|
Trade Accounts Receivable |
84,326,952.24 |
54,526,914.14 |
64,004,985.71 |
|
Inventories |
34,896,816.09 |
30,345,115.47 |
16,738,440.14 |
|
Other Current Assets |
- |
- |
6,879.04 |
|
|
|
|
|
|
Total Current Assets
|
119,307,700.07 |
85,251,359.86 |
81,176,966.68 |
|
Fixed Assets |
522,668.99 |
649,861.70 |
808,466.51 |
|
Other Non-current Assets |
- |
111,024.00 |
- |
|
Total Assets |
119,830,369.06 |
86,012,245.56 |
81,985,433.19 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Notes Payable |
52,062,832.43 |
34,237,271.49 |
42,134,648.77 |
|
Current Portion of Long-term Loan from Financial Institution |
- |
938,100.00 |
- |
|
Current Portion of Hire-purchase Payable |
- |
7,485.50 |
204,375.00 |
|
Accrued Income Tax |
859,326.09 |
- |
- |
|
Other Current Liabilities |
5,900.00 |
457,575.08 |
258,710.18 |
|
|
|
|
|
|
Total Current Liabilities |
52,928,058.52 |
35,640,432.07 |
42,597,733.95 |
|
Hire-purchase Payable -
Net of
Current Portion |
- |
- |
34,062.50 |
|
Long-term Loan from Financial institution, Net
of Current Portion
|
- |
5,833,243.68 |
- |
|
Long-term Loan from
Related Person |
63,600,000.00 |
39,100,000.00 |
32,100,000.00 |
|
Total Liabilities |
116,528,058.52 |
80,573,675.75 |
74,731,796.45 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning -
Unappropriated |
[11,697,689.46] |
[9,561,430.19] |
[7,746,363.26] |
|
Total Shareholders' Equity |
3,302,310.54 |
5,438,569.81 |
7,253,636.74 |
|
Total Liabilities &
Shareholders' Equity |
119,830,369.06 |
86,012,245.56 |
81,985,433.19 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
132,576,811.46 |
70,931,798.04 |
81,557,382.88 |
|
Gain on Exchange Rate |
- |
943,637.53 |
838,135.04 |
|
Other Income |
- |
- |
370.52 |
|
Total Revenues |
132,576,811.46 |
71,875,435.57 |
82,395,888.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
128,154,629.64 |
67,750,294.21 |
79,565,840.94 |
|
Selling Expenses |
- |
183,446.48 |
248,173.24 |
|
Administrative Expenses |
5,564,115.00 |
5,011,970.45 |
6,922,877.38 |
|
Total Expenses |
133,718,744.64 |
72,945,711.14 |
86,736,891.56 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
[1,141,933.18] |
[1,070,275.57] |
[4,341,003.12] |
|
Financial Cost |
- |
[256,589.15] |
[26,577.00] |
|
Profit before Income Tax |
[1,141,933.18] |
[1,326,864.72] |
[4,367,580.12] |
|
Income Tax |
[994,326.09] |
[488,202.21] |
[360,610.66] |
|
|
|
|
|
|
Net Profit / [Loss] |
[2,136,259.27] |
[1,815,066.93] |
[4,728,190.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.25 |
2.39 |
1.91 |
|
QUICK RATIO |
TIMES |
1.59 |
1.54 |
1.51 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
253.65 |
109.15 |
100.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.11 |
0.82 |
0.99 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
99.39 |
163.48 |
76.79 |
|
INVENTORY TURNOVER |
TIMES |
3.67 |
2.23 |
4.75 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
232.16 |
280.58 |
286.45 |
|
RECEIVABLES TURNOVER |
TIMES |
1.57 |
1.30 |
1.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
148.28 |
184.45 |
193.29 |
|
CASH CONVERSION CYCLE |
DAYS |
183.27 |
259.62 |
169.94 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.66 |
95.51 |
97.56 |
|
SELLING & ADMINISTRATION |
% |
4.20 |
7.32 |
8.79 |
|
INTEREST |
% |
- |
0.36 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
3.34 |
5.82 |
3.47 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.86) |
(1.51) |
(5.32) |
|
NET PROFIT MARGIN |
% |
(1.61) |
(2.56) |
(5.80) |
|
RETURN ON EQUITY |
% |
(64.69) |
(33.37) |
(65.18) |
|
RETURN ON ASSET |
% |
(1.78) |
(2.11) |
(5.77) |
|
EARNING PER SHARE |
BAHT |
(14.24) |
(12.10) |
(31.52) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.97 |
0.94 |
0.91 |
|
DEBT TO EQUITY RATIO |
TIMES |
35.29 |
14.82 |
10.30 |
|
TIME INTEREST EARNED |
TIMES |
- |
(4.17) |
(163.34) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
86.91 |
(13.03) |
|
|
OPERATING PROFIT |
% |
6.70 |
(75.34) |
|
|
NET PROFIT |
% |
(17.70) |
61.61 |
|
|
FIXED ASSETS |
% |
(19.57) |
(19.62) |
|
|
TOTAL ASSETS |
% |
39.32 |
4.91 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 86.91%. Turnover has increased from THB
70,931,798.04 in 2010 to THB 132,576,811.46 in 2011. While net profit has decreased
from THB -1,815,066.93 in 2010 to THB -2,136,259.27 in 2011. And total assets
has increased from THB 86,012,245.56 in 2010 to THB 119,830,369.06 in 2011.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.34 |
Deteriorated |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(1.61) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(1.78) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(64.69) |
Deteriorated |
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 3.34%. 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 -1.61%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is -1.78%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is -64.69%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Stable
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.25 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
1.59 |
|
|
|
|
Cash Conversion Cycle |
183.27 |
|
|
|
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 2.25 times in 2011, decreased from 2.39 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 1.59 times in 2011,
increased from 1.54 times, although excluding inventory so the company still
have good short-term financial strength.
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 : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.97 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
35.29 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.97 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
253.65 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.11 |
Satisfactory |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
99.39 |
|
|
|
|
Inventory Turnover |
3.67 |
Impressive |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
232.16 |
|
|
|
|
Receivables Turnover |
1.57 |
Deteriorated |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
148.28 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.57 and 1.30 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
increased from 2010. This would suggest the company had good performance 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 163 days at the
end of 2010 to 99 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 2.23 times in year 2010 to 3.67 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.11 times and 0.82
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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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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.
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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.54.17 |
|
UK Pound |
1 |
Rs.82.99 |
|
Euro |
1 |
Rs.70.62 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.