MIRA
INFORM REPORT
|
Report Date : |
18.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
JAY GEMS LIMITED |
|
|
|
|
Registered Office : |
Suite No. 65, 25th Floor, Bangkok Gem & Jewelry Tower, 322/65, 322/67 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
14.08.1987 |
|
|
|
|
Com. Reg. No.: |
0105530040704 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamond and Jewelry |
|
|
|
|
No. of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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
JAY
GEMS LIMITED
SUMMARY
BUSINESS
ADDRESS : SUITE
NO. 65, 25th FLOOR, BANGKOK
GEM &
JEWELRY TOWER,
322/65, 322/67 SURAWONG ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2237-8411-5
FAX :
[66] 2238-4773
E-MAIL
ADDRESS : info@jaygems.net
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530040704 [Former
: 4070/ 2530]
TAX
ID NO. : 3101461046
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
FOREIGN :
49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SACHIN JITENDRA MEHTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : DIAMOND AND
JEWELRY
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
August 14, 1987
as a private
limited company under the name style JAY GEMS LIMITED, by Thai and
foreign groups. It is
engaged in diamonds and
jewelry trading business.
It currently employs
8 staff.
Subject is currently
an affiliated company of
Jayman Diamonds International
Pte. Ltd., Singapore.
The subject’s registered address is Suite
No. 65, 25th Floor, Bangkok
Gem & Jewelry Tower, 322/65, 322/67 Surawong Rd., Siphaya,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sachin Jitendra Mehta |
|
Indian |
47 |
|
Mr. Chetan Pravincharn Jhaveri |
|
Indian |
45 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sachin Jitendra Mehta
is the Managing
Director.
He is Indian
nationality with the
age of 47 years
old.
BUSINESS OPERATIONS
The subject is
engaged in diamonds
and jewelry trading
business as the
followings:
- Importer and distributor
of diamonds and
gemstones.
- Exporter of polished
diamonds, loose diamonds
and jewelry products.
IMPORT
Some
of the products
are imported from
India, Hong Kong
and Belgium.
SALES [LOCAL]
The products are
sold locally by
wholesale to dealers,
manufacturers and end-users.
EXPORT
The
products are exported
to India, Republic
of China, Malaysia,
Singapore, U.S.A. and
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
United Overseas Bank
[Thai] 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.
COMMENT
Economic
uncertainty with signs
of slow consumption
would disappoint its
sales in 2013.
Sell of diamonds
and gemstones to
domestic consumption is
still, while current
consumption is slowing
down.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 11,000,000
on December 12,
1991
Bht. 25,000,000
on October 28,
2004
The
latest registered capital
was increased to Bht.
25,000,000 divided into 250,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Somsin Panyapairoj Nationality: Thai Address : 210/22
Charansanitwong Rd., Banchanglor,
Bangkoknoi, Bangkok |
127,500 |
51.00 |
|
Jayam Diamonds International Pte.
Ltd. Nationality: Singaporean Address : 80
Raffles Place, #25-01 UOB Plaza,
Singapore |
112,500 |
40.00 |
|
Mr. Chetan Pravincharn Jhaveri Nationality: Indian Address : Bombay,
India |
10,000 |
9.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
127,500 |
51.00 |
|
Foreign |
2 |
122,500 |
49.00 |
|
Total |
3 |
250,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Suchart Srimanchantra No.
3549
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
and 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
732,995.24 |
621,402.17 |
859,936.14 |
|
Trade Accounts Receivable |
36,174,628.44 |
14,742,059.30 |
35,214,014.21 |
|
Inventories |
21,858,393.40 |
23,317,306.20 |
51,905,926.40 |
|
Total Current Assets
|
58,766,017.08 |
38,680,767.67 |
87,979,876.75 |
|
|
|
|
|
|
Fixed Assets |
3,871,001.00 |
3,871,901.88 |
3,896,763.39 |
|
Other Non-current Assets |
676,749.87 |
692,849.87 |
692,849.87 |
|
Total Assets |
63,313,767.95 |
43,245,519.42 |
92,569,490.01 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft |
4,684,802.10 |
3,322,213.92 |
3,910,273.34 |
|
Trade Accounts Payable |
24,181,859.20 |
4,916,384.66 |
50,038,638.03 |
|
Accrued Income Tax |
384,806.61 |
35,221.23 |
240,358.03 |
|
Other Current Liabilities |
33,495.00 |
93,257.50 |
- |
|
Total Current Liabilities |
29,284,962.91 |
8,367,077.31 |
54,189,269.40 |
|
|
|
|
|
|
Loans |
1,810,000.00 |
2,355,000.00 |
5,855,000.00 |
|
|
|
|
|
|
Total Liabilities |
31,094,962.91 |
10,722,077.31 |
60,044,269.40 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 250,000 shares |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning -
Unappropriated |
7,218,805.04 |
7,523,442.11 |
7,525,220.61 |
|
Total Shareholders' Equity |
32,218,805.04 |
32,523,442.11 |
32,525,220.61 |
|
Total Liabilities &
Shareholders' Equity |
63,313,767.95 |
43,245,519.42 |
92,569,490.01 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
59,007,548.32 |
52,784,580.93 |
109,002,198.14 |
|
Other Income |
65,138.58 |
482,114.12 |
- |
|
Total Revenues |
59,072,686.90 |
53,266,695.05 |
109,002,198.14 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
55,456,049.51 |
49,142,172.61 |
101,689,571.65 |
|
Selling Expenses |
18,623.87 |
14,881.94 |
1,059,370.54 |
|
Administrative Expenses |
3,097,441.10 |
3,693,551.66 |
4,624,582.04 |
|
Total Expenses |
58,572,114.48 |
52,850,606.21 |
107,373,524.23 |
|
Profit/[Loss] before Financial Cost & Income Tax |
500,572.42 |
416,088.84 |
1,628,673.91 |
|
Financial Cost |
[362,652.88] |
[302,646.11] |
[296,359.87] |
|
Profit/[Loss] before Income Tax |
137,919.54 |
113,442.73 |
1,332,314.04 |
|
Income Tax |
[442,556.61] |
[115,221.23] |
[478,188.03] |
|
Net Profit / [Loss] |
[304,637.07] |
[1,778.50] |
854,126.01 |
Note:
Please be informed
that, the 2012
financial statement was
not completed, due
to the page on
(Liabilities and Shareholder’s Equity)
was missing.
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012
was:
ASSETS
|
Current Assets |
2012 |
|
|
|
|
Cash and Cash Equivalents |
791,834.65 |
|
Trade Accounts Receivable |
5,092,611.78 |
|
Inventories |
31,323,593.11 |
|
|
|
|
Total Current Assets
|
37,208,039.54 |
|
Fixed Assets |
3,871,001.00 |
|
Other Non-current Assets |
676,749.87 |
|
Total Assets |
41,755,790.41 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
|
|
|
|
Sales |
41,287,151.13 |
|
Other Income |
753,737.92 |
|
Total Revenues |
42,040,889.05 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
37,813,063.06 |
|
Selling Expenses |
6,699.21 |
|
Administrative Expenses |
3,197,063.89 |
|
Total Expenses |
41,016,826.16 |
|
|
|
|
Profit/[Loss] before Financial Cost & Income Tax |
1,024,062.89 |
|
Financial Cost |
[423,398.31] |
|
|
|
|
Profit/[Loss] before Income Tax |
600,664.58 |
|
Income Tax |
[237,401.12] |
|
Net Profit / [Loss] |
363,263.46 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.01 |
4.62 |
1.62 |
|
QUICK RATIO |
TIMES |
1.26 |
1.84 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
15.24 |
13.63 |
27.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.93 |
1.22 |
1.18 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
143.87 |
173.19 |
186.31 |
|
INVENTORY TURNOVER |
TIMES |
2.54 |
2.11 |
1.96 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
223.76 |
101.94 |
117.92 |
|
RECEIVABLES TURNOVER |
TIMES |
1.63 |
3.58 |
3.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
159.16 |
36.52 |
179.61 |
|
CASH CONVERSION CYCLE |
DAYS |
208.47 |
238.61 |
124.62 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.98 |
93.10 |
93.29 |
|
SELLING & ADMINISTRATION |
% |
5.28 |
7.03 |
5.21 |
|
INTEREST |
% |
0.61 |
0.57 |
0.27 |
|
GROSS PROFIT MARGIN |
% |
6.13 |
7.81 |
6.71 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.85 |
0.79 |
1.49 |
|
NET PROFIT MARGIN |
% |
(0.52) |
(0.00) |
0.78 |
|
RETURN ON EQUITY |
% |
(0.95) |
(0.01) |
2.63 |
|
RETURN ON ASSET |
% |
(0.48) |
(0.00) |
0.92 |
|
EARNING PER SHARE |
BAHT |
(1.22) |
(0.01) |
3.42 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.25 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.97 |
0.33 |
1.85 |
|
TIME INTEREST EARNED |
TIMES |
1.38 |
1.37 |
5.50 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.79 |
(51.57) |
|
|
OPERATING PROFIT |
% |
20.30 |
(74.45) |
|
|
NET PROFIT |
% |
(17,028.88) |
(100.21) |
|
|
FIXED ASSETS |
% |
(0.02) |
(0.64) |
|
|
TOTAL ASSETS |
% |
46.41 |
(53.28) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 11.79%. Turnover has increased from THB
52,784,580.93 in 2010 to THB 59,007,548.32 in 2011. While net profit has
decreased from THB -1,778.50 in 2010 to THB -304,637.07 in 2011. And total
assets has increased from THB 43,245,519.42 in 2010 to THB 63,313,767.95 in
2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.13 |
Impressive |
Industrial
Average |
0.05 |
|
Net Profit Margin |
(0.52) |
Deteriorated |
Industrial
Average |
0.03 |
|
Return on Assets |
(0.48) |
Deteriorated |
Industrial
Average |
0.47 |
|
Return on Equity |
(0.95) |
Deteriorated |
Industrial
Average |
2.25 |
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 6.13%. When compared with
the industry average, the ratio of the company was higher, indicated that
company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that net
profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is -0.52%.
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 -0.48%.
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 -0.95%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.01 |
Impressive |
Industrial
Average |
1.76 |
|
Quick Ratio |
1.26 |
|
|
|
|
Cash Conversion Cycle |
208.47 |
|
|
|
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 2.01 times in 2011, decreased from 4.62 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 1.26 times in 2011,
decreased from 1.84 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 209 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Impressive |
Industrial
Average |
0.79 |
|
Debt to Equity Ratio |
0.97 |
Impressive |
Industrial
Average |
3.79 |
|
Times Interest Earned |
1.38 |
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 1.39 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 0.49 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Downtrend
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
15.24 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.93 |
Deteriorated |
Industrial
Average |
17.40 |
|
Inventory Conversion Period |
143.87 |
|
|
|
|
Inventory Turnover |
2.54 |
Deteriorated |
Industrial
Average |
54.52 |
|
Receivables Conversion Period |
223.76 |
|
|
|
|
Receivables Turnover |
1.63 |
Deteriorated |
Industrial
Average |
21.99 |
|
Payables Conversion Period |
159.16 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.63 and 3.58 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
decreased from 2010. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 173 days at the
end of 2010 to 144 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 2.11 times in year 2010 to 2.54 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.93 times and 1.22
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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY – INDIA
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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.59.36 |
|
|
1 |
Rs.89.69 |
|
Euro |
1 |
Rs.77.98 |
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.