MIRA INFORM REPORT
|
Report Date : |
12.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
PANKIT IMPEX CO., LTD. |
|
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|
|
Registered Office : |
Room 14-A, 11th Floor, Bangkok Gems & Jewelry Building, 322/14 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
|
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|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
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Date of Incorporation : |
24.06.1997 |
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Com. Reg. No.: |
0105540058975 [Former : 855/2540]
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Importer, Distributor & Exporter of Diamonds and Jewelry |
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|
|
No. of Employees : |
5 |
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 : |
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 |
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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
PANKIT IMPEX CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM 14-A, 11th FLOOR,
BANGKOK GEMS &
JEWELRY BUILDING,
322/14 SURAWONG ROAD,
SIPHAYA,
BANGRAK, BANGKOK 10500
TELEPHONE : [66] 2631-7494-6,
089 680-5804
FAX : [66] 2631-7497
EMAIL-ADDRESS : pankitimpex@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1997
REGISTRATION NO. : 0105540058975 [Former :
855/2540]
TAX ID NO. : 3011856512
CAPITAL REGISTERED : BHT.
12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMIT RASIKLAL GANDHI,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 5
LINES OF BUSINESS : DIAMONDS AND
JEWELRY
IMPORTER, DISTRIBUTOR
& 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 June
24, 1997 as
a private limited
company under the
name style PANKIT IMPEX CO.,
LTD., by Indian
and Thai groups,
in order to
import and distribute
diamond to local
market. It currently
employs 5 staff.
The subject’s registered address
was initially located at Room 20,
2nd Floor, T.D., Building, 14-16
Mahesak Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On January 16,
2006, the subject’s registered
address was relocated
to Room 14-A, 11th Flr., Bangkok
Gems & Jewelry
Bldg., 322/14 Surawong
Rd., Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amit Rasiklal
Gandhi |
|
Indian |
39 |
|
Mr. Nirav Rasiklal
Gandhi |
|
Indian |
37 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amit Rasiklal Gandhi
is the Managing
Director.
He is Indian
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject is engaged in importing, distributing and
exporting of diamonds,
precious stones and
jewelry products.
PURCHASE
Its products are
purchased from suppliers
and agents both
domestic and overseas
in India, Belgium,
South Africa and
Pakistan.
MAJOR SUPPLIERS
Kohinoor International Ltd. : India
Silver Shine Co., Ltd. : India
M/S B. Vijay
Kumar & Co. :
India
M/S Classic Diamonds
Ltd. : India
SALES [LOCAL]
80% of the
products is sold
locally to wholesalers.
EXPORT
20% of the
products is exported
to United Kingdom,
France, India, Spain,
Hong Kong and
Japan.
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 on
the credit term
of 30 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.
BUSINESS TRANSACTION
The products are
sold and purchased
both by cash and
credit with the maximum credit given at 30-60 days. The subject is found to have late
payment from some customers, but
they can negotiate.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject employs
5 staff. [office and
sales staff]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is located
in commercial area.
COMMENT
Subject reported slow
performance in 2011.
Consumption slowdown in
European and Japan market
has slashed its
sales accordingly. Its
current business outlook
is decelerated.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into 40,000
shares of Bht.
100 each.
The capital was
increased later as
follows:
Bht. 6,000,000
on June 28,
2005
Bht. 8,000,000
on August 28,
2007
Bht. 12,000,000 on
December 29, 2009
The latest registered
capital was increased
to Bht. 12,000,000 divided into 120,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at June
15, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal
Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yananwa, Bangkok |
40,000 |
33.33 |
|
Ms. Alisa Leesee Nationality: Thai Address : 56
Moo 6, Dongtakob,
Tapanhin, Pijit |
20,000 |
16.67 |
|
Ms. Saowaluck Saoluek Nationality: Thai Address : 158
Moo 1, Phakpang,
Phukeaw, Chaiyaphum |
20,000 |
16.67 |
|
Mr. Nirav Rasiklal
Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yananwa, Bangkok |
18,800 |
15.66 |
|
Mr. Chumpol Keeta Nationality: Thai Address : 241
Moo 11, Angthong, Muang,
Kampaengpetch |
10,000 |
8.33 |
|
Mr. Sirithai Thavornphan Nationality: Thai Address : 164/665
Moo 3, Pimolraj,
Bangbuathong, Nonthaburi |
5,600 |
4.67 |
|
Ms. Narisa Ploykham Nationality: Thai Address : 8
Moo 13, Sarklek,
Pijit |
5,600 |
4.67 |
Total Shareholders : 7
Share Structure
[as at June
15, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
61,200 |
51.00 |
|
Foreign-Indian |
2 |
58,800 |
49.00 |
|
Total |
7 |
120,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Vasana Tanmongkol
No. 1888
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2011, 2010 &
2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
265,494.52 |
48,454.66 |
28,474.19 |
|
Trade Accounts Receivable |
19,557,820.75 |
51,334,244.48 |
65,411,452.52 |
|
Inventories |
25,899,013.71 |
19,026,185.39 |
48,867,996.65 |
|
Other Current Assets
|
- |
1,934,236.09 |
665,925.68 |
|
Total Current Assets
|
45,722,328.98 |
72,343,120.62 |
114,973,849.04 |
|
|
|
|
|
|
Fixed Assets |
14.00 |
12,208.27 |
65,466.62 |
|
Total Assets |
45,722,342.98 |
72,355,328.89 |
115,039,315.66 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft from Bank |
2,991,001.22 |
2,975,558.96 |
3,000,157.02 |
|
Loan from Bank |
7,155,581.93 |
6,655,623.21 |
6,750,233.77 |
|
Trade Accounts Payable |
20,694,407.46 |
38,337,478.89 |
85,473,600.90 |
|
Other Current Liabilities |
1,196,388.11 |
8,263,668.92 |
1,903,254.84 |
|
Total Current Liabilities |
32,037,378.72 |
56,232,329.98 |
97,127,246.53 |
|
Payable Loan Directors |
- |
3,000,000.00 |
5,520,000.00 |
|
Total Liabilities |
32,037,378.72 |
59,232,329.98 |
102,647,246.53 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning -
Unappropriated |
1,684,964.26 |
1,122,998.91 |
392,069.13 |
|
Total Shareholders' Equity |
13,684,964.26 |
13,122,998.91 |
12,392,069.13 |
|
Total Liabilities &
Shareholders' Equity |
45,722,342.98 |
72,355,328.89 |
115,039,315.66 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
42,226,050.78 |
71,810,137.87 |
51,172,795.43 |
|
Other Income |
68.13 |
4.14 |
1,906,058.80 |
|
Total Revenues |
42,226,118.91 |
71,810,142.01 |
53,078,854.23 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
36,935,165.22 |
66,300,612.82 |
47,221,651.17 |
|
Selling Expenses |
270,895.35 |
166,755.30 |
708,777.19 |
|
Administrative Expenses |
2,785,839.17 |
2,655,465.37 |
3,383,793.93 |
|
Loss on Exchange Rate |
547,506.23 |
852,553.24 |
- |
|
Total Expenses |
40,539,405.97 |
69,975,386.73 |
51,314,222.26 |
|
Profit / [Loss] Before
Financial Cost & Income Tax |
1,686,712.94 |
1,834,755.28 |
1,764,631.97 |
|
Financial Cost |
[835,351.30] |
[781,492.31] |
[490,657.94] |
|
Profit / [Loss] Before Income Tax |
851,361.64 |
1,053,262.97 |
1,274,004.03 |
|
Income Tax |
[289,396.29] |
[322,333.19] |
[401,808.29] |
|
Net Profit / [Loss] |
561,965.35 |
730,929.78 |
872,195.74 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.43 |
1.29 |
1.18 |
|
QUICK RATIO |
TIMES |
0.62 |
0.91 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3,016,146.48 |
5,882.09 |
781.66 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.92 |
0.99 |
0.44 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
255.94 |
104.74 |
377.73 |
|
INVENTORY TURNOVER |
TIMES |
1.43 |
3.48 |
0.97 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
169.06 |
260.92 |
466.56 |
|
RECEIVABLES TURNOVER |
TIMES |
2.16 |
1.40 |
0.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
204.51 |
211.06 |
660.67 |
|
CASH CONVERSION CYCLE |
DAYS |
220.49 |
154.61 |
183.62 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.47 |
92.33 |
92.28 |
|
SELLING & ADMINISTRATION |
% |
7.24 |
3.93 |
8.00 |
|
INTEREST |
% |
1.98 |
1.09 |
0.96 |
|
GROSS PROFIT MARGIN |
% |
12.53 |
7.67 |
11.45 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.99 |
2.56 |
3.45 |
|
NET PROFIT MARGIN |
% |
1.33 |
1.02 |
1.70 |
|
RETURN ON EQUITY |
% |
4.11 |
5.57 |
7.04 |
|
RETURN ON ASSET |
% |
1.23 |
1.01 |
0.76 |
|
EARNING PER SHARE |
BAHT |
4.68 |
6.09 |
7.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.82 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.34 |
4.51 |
8.28 |
|
TIME INTEREST EARNED |
TIMES |
2.02 |
2.35 |
3.60 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(41.20) |
40.33 |
|
|
OPERATING PROFIT |
% |
(8.07) |
3.97 |
|
|
NET PROFIT |
% |
(23.12) |
(16.20) |
|
|
FIXED ASSETS |
% |
(99.89) |
(81.35) |
|
|
TOTAL ASSETS |
% |
(36.81) |
(37.10) |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -41.2%. Turnover has decreased from THB 71,810,137.87
in 2010 to THB 42,226,050.78 in 2011. While net profit has decreased from THB
730,929.78 in 2010 to THB 561,965.35 in 2011. And total assets has decreased
from THB 72,355,328.89 in 2010 to THB 45,722,342.98 in 2011.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
12.53 |
Impressive |
Industrial Average |
0.05 |
|
Net Profit Margin |
1.33 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
1.23 |
Impressive |
Industrial Average |
0.47 |
|
Return on Equity |
4.11 |
Impressive |
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 12.53%. 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 1.33%,
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
1.23%, 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.
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 4.11%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.43 |
Satisfactory |
Industrial Average |
1.76 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
220.49 |
|
|
|
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 1.43 times in 2011, increased from 1.29 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 0.62 times in 2011,
decreased from 0.91 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 221 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Impressive |
Industrial Average |
0.79 |
|
Debt to Equity Ratio |
2.34 |
Satisfactory |
Industrial Average |
3.79 |
|
Times Interest Earned |
2.02 |
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 2.02 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 0.7 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 : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3,016,146.48 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.92 |
Deteriorated |
Industrial Average |
17.40 |
|
Inventory Conversion Period |
255.94 |
|
|
|
|
Inventory Turnover |
1.43 |
Deteriorated |
Industrial Average |
54.52 |
|
Receivables Conversion Period |
169.06 |
|
|
|
|
Receivables Turnover |
2.16 |
Deteriorated |
Industrial Average |
21.99 |
|
Payables Conversion Period |
204.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.16 and 1.40 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
increased from 2010. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 105 days at the
end of 2010 to 256 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 3.48 times in year 2010 to 1.43 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.92 times and 0.99
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
-
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.58.92 |
|
|
1 |
Rs.91.80 |
|
Euro |
1 |
Rs.78.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.