MIRA INFORM REPORT
|
Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIAMRUSA LIMITED |
|
|
|
|
Registered Office : |
66/7-10 SOI Pramote
[YESU], Surawong Road, Suriyawongse, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.11.1981 |
|
|
|
|
Com. Reg. No.: |
0105524026649 |
|
|
|
|
Legal Form : |
Private Limited |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Jewelry Products. |
|
|
|
|
No. of Employees : |
180 |
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
DIAMRUSA LIMITED
SUMMARY
BUSINESS ADDRESS : 66/7-10 SOI PRAMOTE
[YESU], SURAWONG ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2237-8825-30, 2237-8563-5
FAX : [66] 2236-6248,
2237-1573
E-MAIL ADDRESS : diamrusa@diamrusa.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1981
REGISTRATION NO. : 0105524026649 [Former: 2663/2524]
TAX ID NO. : 3101339697
CAPITAL REGISTERED : BHT.
100,000,000
CAPITAL PAID-UP : BHT.
100,000,000
SHAREHOLDER’S PROPORTION : THAI
: 63.40%
INDIAN
: 36.60%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SHAH SALIL
SEVANTILALS, INDIAN
MANAGING DIRECTOR
NO. OF STAFF
: 180
LINES OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on November
6, 1981 as
a private limited
company under the
initially registered name “Industrial
Dyestuff Limited” by Thai
and Indian groups.
On August 2,
1985, the subject’s
name was changed to “Thai
Add Holding Limited” and
changed again to
DIAMRUSA LIMITED on
October 3, 1986.
The business objective
is a manufacture
various kinds of
jewelry products for
domestic and export
markets. It currently
employs approximately 180
staff.
It is an
affiliated company of
Kanopas Limited, which
is also engaged
in jewelry business.
The subject’s registered address
is 66/7-10 Soi Pramote
[Yesu], Surawong Rd., Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Shah Salil Sevantilals |
|
Indian |
53 |
|
Mr. Samir Sevantilal Shah |
|
Indian |
55 |
|
Ms. Wattana Jitjaicham |
|
Thai |
52 |
|
Ms. Oraporn Ajchanakulchai |
|
Thai |
56 |
|
Ms. Ratanaporn Pimthong |
|
Thai |
49 |
|
Ms. Supatra Phongsawadkul |
|
Thai |
47 |
AUTHORIZED PERSON
Any two of the
above directors can
jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Shah Salil Sevantilals
is the Managing
Director.
He is Indian
nationality with the
age of 53
years old.
Mrs. Monticha Dithasaro is
the Purchasing Manager.
She is Thai
nationality.
Ms. Wattana Jitjaicham is
the Sales & Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are designer, manufacturer,
exporter and wholesaler
of elegant jewelry
and precious stones
mainly 14k and
18k fine gold
and platinum jewelry
set with diamonds
and other precious
stones and pearls,
under its own
brand name “DIAMRUSA”
as well as
customer’s own brands. The subject is
also a distributor
of precious stones.
PURCHASE
Raw materials mainly
diamond, precious stones,
pearls and component
are purchased from
suppliers both domestic
and overseas in
India, Belgium, South
Africa and Hong
Kong.
EXPORT
98% of the
products is exported
to Europe, United
States of America,
Hong Kong, Japan, India,
Korea, Malaysia, Indonesia, Singapore,
Brazil, Colombia, Republic
of China and Middle
East countries.
SALES
2% of the products
is sold locally
to wholesalers.
PARENT COMPANY
Kanopas Limited :
Thailand
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
L/C at sight
or T/T.
BANKER
Deutsche Bank AG.
[Bangkok Office :
208 Wireless Rd.,
Lumpini, Pathumwan, Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35
Sukhumvit Rd., Klongtoey,
Bangkok]
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok]
EMPLOYMENT
The subject employs
approximately 180 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office
and showroom, in
3 storey building
of 4 row
shop houses at the heading
address. Premise is
located in a
prime commercial area.
Factory is located
at 3rd Floor,
Gemopolis Industrial Estate,
48/12 Moo 4,
Sukhapibal 2 Rd.,
Dokmai, Prawet, Bangkok
10250.
Branch:
8,10,12,14
Narathiwasrajanakarin Road, Suriyawongse,
Bangrak, Bangkok 10500.
COMMENT
The subject manufactures of
fine jewelry products made from
gold and platinum
with diamond and
precious stones. Most
of the products
are supplied to international buyers.
The subject captures
a worldwide market
of elegant jewelry
and precious stones.
It presents a wide range of
exclusive high-end pieces,
which are created
with unique and
innovative designs in
modern concepts, delicate
antique reproductions and
mysterious invisible settings.
Its business is
in good conditions
and expanding steadily.
FINANCIAL INFORMATION
The capital was registered
at Bht. 1,000,000 divided
into 1,000 shares of
Bht. 1,000 each.
The capital was
increased later as
following:
Bht. 3,000,000 on October
3, 1986
Bht. 15,000,000 on April
24, 1989
Bht. 25,000,000 on June
23, 1989
Bht. 50,000,000 on January
18, 1993
Bht. 100,000,000 on May
14, 2008
The latest registered
capital was increased
to Bht. 100,000,000
divided into 1,000,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at April
29, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Kanopas Limited Nationality: Thai Address : 66/4
Surawong Rd., Suriyawongse, Bangrak, Bangkok |
375,970 |
37.60 |
|
Mr. Shah Salil Sevantilals Nationality: Indian Address : 72/35
South Sathorn Rd.,
Thungmahamek,
Sathorn, Bangkok |
365,970 |
36.60 |
|
Ms. Wattana Jitjaicham Nationality: Thai Address : 160/586-8
Silom Rd., Suriyawongse,
Bangrak, Bangkok |
213,030 |
21.30 |
|
Ms. Supatra Phongsawadkul Nationality: Thai Address : 51/164
Moo 1, Nongkaem,
Bangkok |
15,010 |
1.50 |
|
Ms. Ratanaporn Pimthong Nationality: Thai Address : 160/586-8
Silom Rd., Suriyawongse,
Bangrak, Bangkok |
15,010 |
1.50 |
|
Ms. Oraporn Ajchanakulchai Nationality: Thai Address : 427/143
Puthabucha Rd., Bangmod,
Jomthong, Bangkok |
15,010 |
1.50 |
Total Shareholders
: 6
Share Structure
[as at April
29, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
634,030 |
63.40 |
|
Foreign-Indian |
1 |
365,970 |
36.60 |
|
Total |
6 |
1,000,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO
Mrs. Sumalee Sribioonrueng
No. 3146
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 |
12,516,784.37 |
32,417,040.91 |
6,196,466.94 |
|
Trade Accounts Receivable
|
64,766,822.58 |
96,223,995.29 |
143,959,892.41 |
|
Inventories |
608,197,047.49 |
629,671,845.16 |
508,330,479.73 |
|
Other Current Assets
|
13,134,883.81 |
8,110,958.36 |
11,707,038.57 |
|
|
|
|
|
|
Total Current Assets
|
698,615,538.25 |
766,423,839.72 |
670,193,877.65 |
|
|
|
|
|
|
Fixed Assets |
64,830,334.94 |
53,137,772.72 |
67,263,746.02 |
|
Other Non - current Assets |
2,750,523.16 |
1,499,125.77 |
1,053,523.71 |
|
Total Assets |
766,196,396.35 |
821,060,738.21 |
738,511,147.38 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
1,046,607.08 |
838,180.08 |
5,034,530.59 |
|
Loan Bank |
436,236,747.61 |
521,481,664.19 |
420,852,721.36 |
|
Trade Accounts Payable
|
62,775,023.78 |
80,450,310.58 |
100,688,891.12 |
|
Pre-received Income |
- |
- |
613,271.16 |
|
Accrued Expenses |
5,737,933.32 |
4,950,987.75 |
4,788,164.50 |
|
Rental Deposit |
- |
- |
180,000.00 |
|
Other Current Liabilities |
19,027,262.81 |
477,829.00 |
- |
|
|
|
|
|
|
Total Current Liabilities |
524,823,574.60 |
608,198,971.60 |
532,157,578.73 |
|
Long-term Director |
66,000,000.00 |
53,000,000.00 |
37,000,000.00 |
|
Loan from Affiliated Company |
3,500,000.00 |
2,000,000.00 |
1,500,000.00 |
|
Total Liabilities |
594,323,574.60 |
663,198,971.60 |
570,657,578.73 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,000,000 shares |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
|
|
|
|
|
Capital Paid |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
Premium on Share Capital |
- |
- |
15,557,999.00 |
|
Retained Earnings: Appropriated - Statutory
Reserve |
7,500,000.00 |
7,500,000.00 |
7,500,000.00 |
|
Unappropriated |
64,372,821.75 |
50,361,766.61 |
44,795,569.65 |
|
Total Shareholders' Equity |
171,872,821.75 |
157,861,766.61 |
167,853,568.65 |
|
Total Liabilities &
Shareholders' Equity |
766,196,396.35 |
821,060,738.21 |
738,511,147.38 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
469,795,400.42 |
401,180,221.54 |
398,055,347.29 |
|
Other Income |
|
|
|
|
Gain on Exchange Rate |
14,056,658.24 |
- |
9,804,494.08 |
|
Other |
1,011,120.97 |
1,054,990.02 |
909,500.72 |
|
Total Revenues |
484,863,179.63 |
402,235,211.56 |
408,769,342.09 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
381,800,041.55 |
311,507,190.74 |
330,100,293.02 |
|
Selling and Administrative Expenses |
62,335,127.45 |
57,245,129.50 |
56,747,800.09 |
|
Other Expenses |
|
|
|
|
Loss on Exchange Rate |
- |
10,513,866.59 |
- |
|
Interest Expenses |
18,799,260.15 |
15,912,509.20 |
12,288,674.32 |
|
Total Expenses |
462,934,429.15 |
395,178,696.03 |
399,136,767.43 |
|
Profit before Income
Tax |
21,928,750.48 |
7,056,515.53 |
9,632,574.66 |
|
Income Tax |
[4,711,475.44] |
[1,490,318.57] |
[3,049,592.47] |
|
|
|
|
|
|
Net Profit / [Loss] |
17,217,275.04 |
5,566,196.96 |
6,582,982.19 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.33 |
1.26 |
1.26 |
|
QUICK RATIO |
TIMES |
0.15 |
0.21 |
0.28 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.25 |
7.55 |
5.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.61 |
0.49 |
0.54 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
581.44 |
737.80 |
562.07 |
|
INVENTORY TURNOVER |
TIMES |
0.63 |
0.49 |
0.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
50.32 |
87.55 |
132.01 |
|
RECEIVABLES TURNOVER |
TIMES |
7.25 |
4.17 |
2.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
60.01 |
94.27 |
111.33 |
|
CASH CONVERSION CYCLE |
DAYS |
571.74 |
731.08 |
582.74 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.27 |
77.65 |
82.93 |
|
SELLING & ADMINISTRATION |
% |
13.27 |
14.27 |
14.26 |
|
INTEREST |
% |
4.00 |
3.97 |
3.09 |
|
GROSS PROFIT MARGIN |
% |
21.94 |
22.62 |
19.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.67 |
1.76 |
2.42 |
|
NET PROFIT MARGIN |
% |
3.66 |
1.39 |
1.65 |
|
RETURN ON EQUITY |
% |
10.02 |
3.53 |
3.92 |
|
RETURN ON ASSET |
% |
2.25 |
0.68 |
0.89 |
|
EARNING PER SHARE |
BAHT |
17.22 |
5.57 |
6.58 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.81 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.46 |
4.20 |
3.40 |
|
TIME INTEREST EARNED |
TIMES |
1.17 |
0.44 |
0.78 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
17.10 |
0.79 |
|
|
OPERATING PROFIT |
% |
210.76 |
(26.74) |
|
|
NET PROFIT |
% |
209.32 |
(15.45) |
|
|
FIXED ASSETS |
% |
22.00 |
(21.00) |
|
|
TOTAL ASSETS |
% |
(6.68) |
11.18 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 17.1%. Turnover has increased from THB
401,180,221.54 in 2011 to THB 469,795,400.42 in 2012. While net profit has
increased from THB 5,566,196.96 in 2011 to THB 17,217,275.04 in 2012. And total
assets has decreased from THB 821,060,738.21 in 2011 to THB 766,196,396.35 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
21.94 |
Impressive |
Industrial Average |
21.85 |
|
Net Profit Margin |
3.66 |
Impressive |
Industrial Average |
1.70 |
|
Return on Assets |
2.25 |
Impressive |
Industrial Average |
1.73 |
|
Return on Equity |
10.02 |
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 21.94%. 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 3.66%, 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
2.25%, 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 10.02%, 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 |
1.33 |
Satisfactory |
Industrial Average |
1.51 |
|
Quick Ratio |
0.15 |
|
|
|
|
Cash Conversion Cycle |
571.74 |
|
|
|
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 1.33 times in 2012, increased from 1.26 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 0.15 times in 2012,
decreased from 0.21 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 572 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
3.46 |
Risky |
Industrial Average |
3.27 |
|
Times Interest Earned |
1.17 |
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 1.17 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 0.78 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 : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.25 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.61 |
Acceptable |
Industrial Average |
1.02 |
|
Inventory Conversion Period |
581.44 |
|
|
|
|
Inventory Turnover |
0.63 |
Deteriorated |
Industrial Average |
2.22 |
|
Receivables Conversion Period |
50.32 |
|
|
|
|
Receivables Turnover |
7.25 |
Impressive |
Industrial Average |
1.85 |
|
Payables Conversion Period |
60.01 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.25 and 4.17 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 decreased from 738 days at the
end of 2011 to 581 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 0.49 times in year 2011 to 0.63 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.61 times and 0.49
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.
-
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.56.50 |
|
|
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.73.68 |
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.