MIRA INFORM REPORT
|
Report Date : |
21.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
ESSEL
INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
729/160-165 Ratchadapisek Road,
Bangpongpang, Yannawa, Bangkok
10120, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
28.10.1986 |
|
|
|
|
Com. Reg. No.: |
0105529039064 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
subject engaged in
manufacturing, exporting and
distributing various kinds of
gold, silver and
diamond jewelry products,
including rings, earrings,
necklace, bracelet, bangle,
pendant, as well
as gemstone pendant
under its own
brand “ARKENTIER”. |
|
|
|
|
No. of Employees : |
60 |
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
crisis 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
ESSEL INTERNATIONAL
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 729/160-165 RATCHADAPISEK
ROAD,
BANGPONGPANG, YANNAWA,
BANGKOK 10120,
THAILAND
TELEPHONE : [66] 2234-8239,
2683-9500-2
FAX :
[66] 2237-2039
E-MAIL
ADDRESS : essel@ksc.th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529039064
TAX
ID NO. : 3101416510
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. LUECHAI SRITIRAKUL,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 60
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, 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 October 28, 1986
as a private
limited company under the
registered name ESSEL
INTERNATIONAL CO., LTD.,
by Thai groups,
with the business
objective to manufacture
and distribute various
kinds of jewelry
products to both
domestic and international
markets. It currently
employs approximately 60
staff.
The
subject’s registered address
is 729/160-165 Ratchadapisek Road,
Bangpongpang, Yannawa, Bangkok
10120, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Luechai Sritirakul |
|
Thai |
56 |
|
Ms. Naruemol Sritirakul |
|
Thai |
53 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Luechai Sritirakul is
the Managing Director.
He is Thai
nationality with the
age of 56 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, exporting and
distributing various kinds of
gold, silver and
diamond jewelry products,
including rings, earrings,
necklace, bracelet, bangle,
pendant, as well
as gemstone pendant
under its own
brand “ARKENTIER”.
PURCHASE
80% of raw
materials mainly diamonds
and gemstones are
imported from India
and Republic of
China, the remaining
20% is purchased
from local suppliers.
SALES
80% of the products
is exported to India,
Hong Kong, Japan and
the countries in Europe,
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
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 currently employs
approximately 60 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office and
factory at the
heading address.
Premise
is located in
commercial/residential area.
COMMENT
The
subject is a
manufacturer, exporter and
distributor of jewelry
products. Overall consumption
of jewelry production
in world market
is likely to
contract from the previous
year due to
economic slowdown in many
countries. This has
caused to slow
consumption, while domestic
consumers are unlikely
to spend on
expensive item because
of faltering income.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 10,000 shares of Bht.
100 each with
fully paid.
On
December 22, 2000,
the registered capital
was increased to
Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Luechai Sritirakul Nationality: Thai Address : 729/160
Ratchadapisek Rd., Bangpongpang, Yannawa, Bangkok
|
37,996 |
94.99 |
|
Mr. Marut Sritirakul Nationality: Thai Address : 507/409
Sathupradit Rd., Chongnonsi,
Yannawa, Bangkok |
1,002 |
2.51 |
|
Ms. Naruemol Sritirakul Nationality: Thai Address : 532-534
Charoenvieng Rd., Silom,
Bangrak, Bangkok |
1,000 |
2.50 |
|
Ms. Amporn Sritirakul Nationality: Thai Address : 532-534
Charoenvieng Rd., Silom,
Bangrak, Bangkok |
1 |
- |
|
Ms. Saowanee Sritirakul Nationality: Thai Address : 532-534
Charoenvieng Rd., Silom,
Bangrak, Bangkok |
1 |
- |
Total Shareholders : 5
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
40,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Kanchana Yimrungrerk No.
4200
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,365,334.06 |
3,276,152.81 |
123,298.38 |
|
Trade Accounts Receivable
|
36,276,670.69 |
36,824,688.29 |
29,095,011.74 |
|
Inventories |
1,258,000.00 |
17,554,752.26 |
1,693,859.84 |
|
Products During the Period |
43,859.40 |
4,816,040.29 |
- |
|
Value Added Tax |
439,029.58 |
469,740.80 |
200,888.92 |
|
Revenue Department Receivable |
739,139.43 |
1,324,788.87 |
272,066.02 |
|
Other Current Assets
|
209,655.77 |
399,886.24 |
357,916.00 |
|
|
|
|
|
|
Total Current Assets
|
43,331,688.93 |
64,666,049.56 |
31,743,040.90 |
|
|
|
|
|
|
Fixed Assets |
7,249,857.14 |
8,171,586.53 |
6,660,436.29 |
|
Deposit |
30,000.00 |
30,000.00 |
925,610.41 |
|
Total Assets |
50,611,546.07 |
72,867,636.09 |
39,329,087.60 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
1,079,073.92 |
26,221,729.89 |
6,156,090.69 |
|
Trade Accounts Payable
|
15,837,373.22 |
15,636,736.05 |
5,721,183.18 |
|
Other Payable |
113,263.98 |
212,544.84 |
5,000.00 |
|
Loan from Director |
4,500,000.00 |
5,400,000.00 |
13,111,308.82 |
|
Accrued Withholding Tax |
114,130.17 |
315,799.62 |
82,504.00 |
|
Accrued Income Tax |
379,274.92 |
1,770,151.95 |
58,570.69 |
|
Insurance Employees Receive
Beforehand |
372,983.00 |
214,383.00 |
282,738.00 |
|
Accrued Expenses |
3,593,207.54 |
3,455,086.45 |
741,512.72 |
|
|
|
|
|
|
Total Current Liabilities |
25,989,306.75 |
53,226,431.80 |
26,158,908.10 |
|
Total Liabilities |
25,989,306.75 |
53,226,431.80 |
26,158,908.10 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earnings Unappropriated
|
20,622,239.32 |
15,641,204.29 |
9,170,179.50 |
|
Total Shareholders' Equity |
24,622,239.32 |
19,641,204.29 |
13,170,179.50 |
|
Total Liabilities & Shareholders' Equity |
50,611,546.07 |
72,867,636.09 |
39,329,087.60 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
204,801,342.43 |
279,020,692.86 |
151,444,186.78 |
|
Gain/[Loss] on Exchange Rate |
[1,101,864.22] |
2,790,834.83 |
- |
|
Other Income |
2,350,925.31 |
5,918,373.97 |
2,277,192.81 |
|
Total Revenues |
206,050,403.52 |
287,729,901.66 |
153,721,379.59 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
177,944,381.87 |
254,693,035.23 |
131,780,570.74 |
|
Selling and Administrative Expenses |
21,620,154.40 |
23,835,617.40 |
19,760,484.56 |
|
Loss on Exchange Rate |
- |
- |
266,956.37 |
|
Total Expenses |
199,564,536.27 |
278,528,652.63 |
151,808,011.67 |
|
|
|
|
|
|
Profit before Interest
paid & Income
Tax |
6,485,867.25 |
9,201,249.03 |
1,913,367.92 |
|
Interest Paid |
[108,491.29] |
[579,958.36] |
[101,675.29] |
|
Income Tax |
[1,396,340.93] |
[2,150,265.88] |
[141,059.38] |
|
|
|
|
|
|
Net Profit / [Loss] |
4,981,035.03 |
6,471,024.79 |
1,670,633.25 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.67 |
1.21 |
1.21 |
|
QUICK RATIO |
TIMES |
1.56 |
0.75 |
1.12 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
28.25 |
34.15 |
22.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
4.05 |
3.83 |
3.85 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
2.58 |
25.16 |
4.69 |
|
INVENTORY TURNOVER |
TIMES |
141.45 |
14.51 |
77.80 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
64.65 |
48.17 |
70.12 |
|
RECEIVABLES TURNOVER |
TIMES |
5.65 |
7.58 |
5.21 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
32.49 |
22.41 |
15.85 |
|
CASH CONVERSION CYCLE |
DAYS |
34.75 |
50.92 |
58.97 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.89 |
91.28 |
87.02 |
|
SELLING & ADMINISTRATION |
% |
10.56 |
8.54 |
13.05 |
|
INTEREST |
% |
0.05 |
0.21 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
13.72 |
11.84 |
14.49 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.17 |
3.30 |
1.26 |
|
NET PROFIT MARGIN |
% |
2.43 |
2.32 |
1.10 |
|
RETURN ON EQUITY |
% |
20.23 |
32.95 |
12.68 |
|
RETURN ON ASSET |
% |
9.84 |
8.88 |
4.25 |
|
EARNING PER SHARE |
BAHT |
124.53 |
161.78 |
41.77 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.51 |
0.73 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.06 |
2.71 |
1.99 |
|
TIME INTEREST EARNED |
TIMES |
59.78 |
15.87 |
18.82 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(26.60) |
84.24 |
|
|
OPERATING PROFIT |
% |
(29.51) |
380.89 |
|
|
NET PROFIT |
% |
(23.03) |
287.34 |
|
|
FIXED ASSETS |
% |
(11.28) |
22.69 |
|
|
TOTAL ASSETS |
% |
(30.54) |
85.28 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -26.6%. Turnover has decreased from THB
279,020,692.86 in 2011 to THB 204,801,342.43 in 2012. While net profit has decreased
from THB 6,471,024.79 in 2011 to THB 4,981,035.03 in 2012. And total assets has
decreased from THB 72,867,636.09 in 2011 to THB 50,611,546.07 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.72 |
Acceptable |
Industrial
Average |
21.85 |
|
Net Profit Margin |
2.43 |
Impressive |
Industrial
Average |
1.70 |
|
Return on Assets |
9.84 |
Impressive |
Industrial
Average |
1.73 |
|
Return on Equity |
20.23 |
Impressive |
Industrial
Average |
3.85 |
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 13.72%. 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 2.43%,
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
9.84%, 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 20.23%, 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 : IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.67 |
Impressive |
Industrial
Average |
1.51 |
|
Quick Ratio |
1.56 |
|
|
|
|
Cash Conversion Cycle |
34.75 |
|
|
|
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 1.67 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 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 1.56 times in 2012,
increase from 0.75 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 35 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.51 |
Impressive |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
1.06 |
Impressive |
Industrial
Average |
3.27 |
|
Times Interest Earned |
59.78 |
Impressive |
Industrial
Average |
- |
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 59.79 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 0.51 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 Downtrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
28.25 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
4.05 |
Impressive |
Industrial
Average |
1.02 |
|
Inventory Conversion Period |
2.58 |
|
|
|
|
Inventory Turnover |
141.45 |
Impressive |
Industrial
Average |
2.22 |
|
Receivables Conversion Period |
64.65 |
|
|
|
|
Receivables Turnover |
5.65 |
Impressive |
Industrial
Average |
1.85 |
|
Payables Conversion Period |
32.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.65 and 7.58 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
decreased from 2011. 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 25 days at the
end of 2011 to 3 days at the end of 2012. This represents a positive trend. And
Inventory turnover has increased from 14.51 times in year 2011 to 141.45 times
in year 2012.
The company's Total Asset Turnover is calculated as 4.05 times and 3.83
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 Downtrend
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.61.81 |
|
UK Pound |
1 |
Rs.96.56 |
|
Euro |
1 |
Rs.82.45 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.