INFORM REPORT
|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUKIRU EXPORTS
CO., LTD. |
|
|
|
|
Registered Office : |
Room
57 B, 22nd Floor,
Bangkok Gems & Jewellery Tower,
322/57 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
04.07.1995 |
|
|
|
|
Com. Reg. No.: |
0105538078751 [Former : 1587/ 2538] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trading of Diamonds and
Gemstones. |
|
|
|
|
No. of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 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
SUKIRU EXPORTS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
57 B, 22nd FLOOR,
BANGKOK GEMS &
JEWELLERY TOWER,
322/57 SURAWONG ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2681-7707,
2631-7737
FAX :
[66] 2631-7787
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538078751 [Former : 1587/ 2538]
TAX
ID NO. : 3011596166
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KEYUR PRAVINKUMAR
SHAH, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
TRADING BUSINESS
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 July 4,
1995 as a
private limited company
under the name
style SUKIRU EXPORTS CO.,
LTD., by Thai and
Indian groups, in order
to be engaged
in diamond and
gemstones trading business.
It currently employs
8 staff.
The subject’s registered address was initially
located at 297
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On July 18, 2006, the subject’s registered address was relocated
to Room 57 B, 22nd Floor, Bangkok Gems & Jewellery Tower, 322/57 Surawong Rd., Siphya,
Bangrak, Bangkok 10500, and this
is the subject’s current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Keyur Pravinkumar Shah |
|
Indian |
50 |
|
Mr. Giriraj Manharsinh Jadeja |
|
Indian |
43 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Keyur Pravinkumar Shah is
the Managing Director.
He is Indian
nationality with the
age of 50 years
old.
BUSINESS OPERATIONS
The subject is
an international trading
company by importing,
distributing, exporting and
re-exporting of diamonds
for jewelry production
industry.
IMPORT [COUNTRIES]
Most of the
products are imported
from India and Hong
Kong, the remaining
is purchased from
local suppliers.
SALES [LOCAL]
70% of the
products is sold
locally to traders
and manufacturers.
EXPORT
30% of the
products is also
exported and re-exported
to Hong Kong.
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 8 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Branch
office is located
at 24th Floor, Bangkok Gems & Jewellery Tower,
322/61 Surawong Rd., Siphya,
Bangrak, Bangkok 10500.
COMMENT
Subject
is engaged in
diamond and gemstone
trading business. Its
products have been
served mainly to
jewelry production business.
It reported outstanding performance
in 2011, but sales
in 2012 in domestic
market and overseas
market was slow.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each.
The
capital was increased
later as followed:
Bht. 3,000,000
on May 23,
2000
Bht. 4,000,000
on September 11,
2006
Bht. 6,000,000
on January 23,
2009
Bht. 8,000,000
on December 6,
2012
The
latest registered capital
was increased to
Bht. 8,000,000 divided into 80,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kiran Champaklal Bhansali Nationality: Indian Address : 322/57
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
12,000 |
15.00 |
|
Mr. Keyur Pravinkumar Shah Nationality: Indian Address : 322/57 Surawong Rd.,
Suriyawongse,
Bangrak, Bangkok |
12,000 |
15.00 |
|
Mr. Giriraj Manharsinh Jadeja Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
7,600 |
9.50 |
|
Mr. Vipul Jayaitial Jhah Nationality: Indian Address : 322/57 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok |
7,600 |
9.50 |
|
Ms. Dusadee Krongbooncharas Nationality: Thai Address : 24/970
Soi Vibhavadee 37,
Seekan,
Donmuang, Bangkok |
6,000 |
7.50 |
|
Mrs. Arunothai Pongpaitoon Nationality: Thai Address : 11/540
Moo 10, Ladprao,
Bangkok |
5,500 |
6.87 |
|
|
|
|
|
Ms. Saowanee Phupiromsilp Nationality: Thai Address : 50
Charoenkrung Rd., Yananwa,
Sathorn, Bangkok |
5,500 |
6.87 |
|
Ms. Nalinee Saephu Nationality: Thai Address : 50
New Rd., Yannawa,
Sathorn, Bangkok |
5,200 |
6.50 |
|
Ms. Ajcharee Krongbooncharas Nationality: Thai Address : 24/970
Soi Vibhavadee 37,
Seekan,
Donmuang, Bangkok |
5,000 |
6.25 |
|
Mrs. Somsri Nuengchamnong Nationality: Thai Address : 73/872
Moo 10, T. Sainoi,
A. Sainoi, Nonthaburi |
4,400 |
5.50 |
|
Ms. Panarin Mungmart Nationality: Thai Address : 222
Moo 3, T. Pran,
A. Khunharn, Srisaket |
2,500 |
3.13 |
|
Ms. Suthamma Changtaisong Nationality: Thai Address : 92
Moo 2, T. Panthong, A. Saingam,
Kampaengpetch |
2,500 |
3.13 |
|
Mrs. Niraman Nunabee Nationality: Thai Address : 49/10
Moo 9, Suwintawong
Rd.,
Lampakchee, Nongchok, Bangkok |
2,200 |
2.75 |
|
Ms. Wanvisa Chanunant Nationality: Thai Address : 39
Moo 1, T. Nanang,
A. Ponepisai, Nongkhai |
2,000 |
2.50 |
Total Shareholders : 14
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
40,800 |
51.00 |
|
Foreign - Indian |
4 |
39,200 |
49.00 |
|
Total |
14 |
80,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wattana Trikantha
No. 2399
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,048,426.33 |
1,210,958.17 |
1,455,473.89 |
|
Trade Accounts Receivable
|
51,695,307.88 |
89,649,121.09 |
41,569,114.64 |
|
Inventories |
53,101,077.24 |
56,668,818.87 |
51,423,216.79 |
|
Other Current Assets
|
417,198.00 |
200,935.77 |
139,070.55 |
|
Total Current Assets
|
107,262,009.45 |
147,729,833.90 |
94,586,875.87 |
|
|
|
|
|
|
Fixed Assets |
18,563.69 |
47,437.86 |
79,726.65 |
|
Other Non-current Assets |
185,379.24 |
185,379.24 |
185,379.24 |
|
Total Assets |
107,465,952.38 |
147,962,651.00 |
94,851,981.76 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Promissory Notes |
26,410,140.54 |
26,937,458.56 |
- |
|
Trade Accounts Payable |
48,993,953.69 |
92,686,677.66 |
69,640,163.89 |
|
Accrued Income Tax |
691,466.38 |
1,271,749.97 |
1,175,076.62 |
|
Other Current Liabilities |
595,546.48 |
699,481.62 |
1,650,228.93 |
|
Total Current Liabilities |
76,691,107.09 |
121,595,367.81 |
72,465,469.44 |
|
Total Liabilities |
76,691,107.09 |
121,595,367.81 |
72,465,469.44 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 80,000 shares
in 2012; 60,000
shares in 2011 & 2010 |
8,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Capital Paid |
8,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning -
Unappropriated |
22,774,845.29 |
20,367,283.19 |
16,386,512.32 |
|
Total Shareholders' Equity |
30,774,845.29 |
26,367,283.19 |
22,386,512.32 |
|
Total Liabilities & Shareholders' Equity |
107,465,952.38 |
147,962,651.00 |
94,851,981.76 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
220,088,338.61 |
374,449,707.72 |
333,554,892.32 |
|
Other Income |
1,408,376.68 |
368,573.20 |
7,045,264.23 |
|
Total Revenues |
221,496,715.29 |
374,818,280.92 |
340,600,156.55 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
210,570,310.34 |
362,552,233.88 |
327,624,350.91 |
|
Selling Expenses |
59,725.05 |
78,774.28 |
31,377.29 |
|
Administrative Expenses |
5,766,590.79 |
5,500,058.57 |
5,714,353.55 |
|
Total Expenses |
216,396,626.18 |
368,131,066.73 |
333,370,081.75 |
|
Profit / [Loss] before Financial Cost & Income Tax |
5,100,089.11 |
6,687,214.19 |
7,230,074.80 |
|
Financial Cost |
[808,048.18] |
[459,693.35] |
[303,087.55] |
|
Profit / [Loss] before Income
Tax |
4,292,040.93 |
6,227,520.84 |
6,926,987.25 |
|
Income Tax |
[1,266,466.38] |
[2,246,749.97] |
[2,083,176.62] |
|
Net Profit / [Loss] |
3,025,574.55 |
3,980,770.87 |
4,843,810.63 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.40 |
1.21 |
1.31 |
|
QUICK RATIO |
TIMES |
0.70 |
0.75 |
0.59 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11,855.85 |
7,893.48 |
4,183.73 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.05 |
2.53 |
3.52 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
92.04 |
57.05 |
57.29 |
|
INVENTORY TURNOVER |
TIMES |
3.97 |
6.40 |
6.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
85.73 |
87.39 |
45.49 |
|
RECEIVABLES TURNOVER |
TIMES |
4.26 |
4.18 |
8.02 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
84.93 |
93.31 |
77.58 |
|
CASH CONVERSION CYCLE |
DAYS |
92.85 |
51.13 |
25.19 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.68 |
96.82 |
98.22 |
|
SELLING & ADMINISTRATION |
% |
2.65 |
1.49 |
1.72 |
|
INTEREST |
% |
0.37 |
0.12 |
0.09 |
|
GROSS PROFIT MARGIN |
% |
4.96 |
3.28 |
3.89 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.32 |
1.79 |
2.17 |
|
NET PROFIT MARGIN |
% |
1.37 |
1.06 |
1.45 |
|
RETURN ON EQUITY |
% |
9.83 |
15.10 |
21.64 |
|
RETURN ON ASSET |
% |
2.82 |
2.69 |
5.11 |
|
EARNING PER SHARE |
BAHT |
37.82 |
66.35 |
80.73 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.71 |
0.82 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.49 |
4.61 |
3.24 |
|
TIME INTEREST EARNED |
TIMES |
6.31 |
14.55 |
23.85 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(41.22) |
12.26 |
|
|
OPERATING PROFIT |
% |
(23.73) |
(7.51) |
|
|
NET PROFIT |
% |
(24.00) |
(17.82) |
|
|
FIXED ASSETS |
% |
(60.87) |
(40.50) |
|
|
TOTAL ASSETS |
% |
(27.37) |
55.99 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is
-41.22%. Turnover has decreased from THB 374,449,707.72 in 2011 to THB
220,088,338.61 in 2012. While net profit has decreased from THB 3,980,770.87 in
2011 to THB 3,025,574.55 in 2012. And total assets has decreased from THB 147,962,651.00
in 2011 to THB 107,465,952.38 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.96 |
Acceptable |
Industrial Average |
7.53 |
|
Net Profit Margin |
1.37 |
Impressive |
Industrial Average |
(0.23) |
|
Return on Assets |
2.82 |
Impressive |
Industrial Average |
(0.32) |
|
Return on Equity |
9.83 |
Impressive |
Industrial Average |
(0.65) |
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 4.96%. 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 1.37%,
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
2.82%, 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 9.83%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.40 |
Acceptable |
Industrial Average |
2.23 |
|
Quick Ratio |
0.70 |
|
|
|
|
Cash Conversion Cycle |
92.85 |
|
|
|
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 1.4 times in 2012, increase from 1.21 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 0.7 times in 2012,
decrease from 0.75 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 93 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 |
0.59 |
|
Debt to Equity Ratio |
2.49 |
Risky |
Industrial Average |
1.54 |
|
Times Interest Earned |
6.31 |
Impressive |
Industrial Average |
0.62 |
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 6.32 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
11,855.85 |
Impressive |
Industrial Average |
6.11 |
|
Total Assets Turnover |
2.05 |
Impressive |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
92.04 |
|
|
|
|
Inventory Turnover |
3.97 |
Impressive |
Industrial Average |
1.39 |
|
Receivables Conversion Period |
85.73 |
|
|
|
|
Receivables Turnover |
4.26 |
Impressive |
Industrial Average |
3.23 |
|
Payables Conversion Period |
84.93 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.26 and 4.18 in
2012 and 2011 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 2012
increased from 2011. 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 increased from 57 days at the
end of 2011 to 92 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 6.4 times in year 2011 to 3.97 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.05 times and 2.53
times in 2012 and 2011 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 Uptrend
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.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.