MIRA
INFORM REPORT
|
Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
NATASHA CREATIONS CO., LTD. |
|
|
|
|
Registered Office : |
14th Floor, Bangkok Gem & Jewellery Tower, 322/27-29 Surawong Road, Siphya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
30.03.1998 |
|
|
|
|
Com. Reg. No.: |
0105541020432 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer & Exporter of Diamond and Gold Jewelry Products |
|
|
|
|
No. of Employees : |
150 |
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 : |
Good |
|
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
NATASHA
CREATIONS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR, BANGKOK
GEM & JEWELLERY
TOWER, 322/27-29
SURAWONG ROAD,
SIPHYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2234-1202,
2233-0054, 2233-4288
FAX :
[66] 2237-5216
E-MAIL
ADDRESS : info@natasha-creations.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541020432 [Former : 283/2541]
TAX
ID NO. : 3011921227
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT.
70,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
FOREIGN :
49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAJEEV KUMAR
KAPADIA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 150
LINES
OF BUSINESS : DIAMOND AND
GOLD JEWELRY PRODUCTS
MANUFACTURER &
EXPORTER
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
March 30, 1998
as a private
limited company under
the name style NATASHA CREATIONS
CO., LTD., by Thai and foreign groups,
to manufacture diamond and gold
jewelry to overseas
markets. It currently employs
approximate 150 staff.
The
subject’s registered address
is 14th Floor, Bangkok
Gem & Jewellery
Tower,
322/27-29
Surawong Rd., Siphya,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Isira Aoonharasmee |
|
Thai |
50 |
|
Mr. Rajeev Kumar Kapadia |
|
Indian |
51 |
|
Mrs. Shilpa Rajeev Kapadia |
|
Indian |
- |
|
Mr. Salil Prasan Manilal |
|
American |
51 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rajeev Kumar Kapadia
is the Managing
Director.
He is Indian
nationality with the
age of 51
years old.
Mr. Anan Prakobtham is
the Factory Manager.
He is Thai
nationality.
Ms. Isira Aoonharasmee is the
General Manager.
She is Thai
nationality with the
age of 50
years old.
BUSINESS OPERATIONS
The subject is engaged in manufacturing
and exporting various
kinds of jewelry
products, e.g. diamond jewelry
with 14k and
18k gold. The products
include ring, earring,
pendent, bracelet, necklace & others., under its own brand name “NATASHA-CREATION”, as
well as customer’s
brands.
PURCHASE
Raw materials such as diamond, gold, gemstone and accessories are purchased from suppliers
both local and
overseas, mainly in
India, Hong Kong,
Japan and South
Africa.
MAJOR SUPPLIER
Gem
Star Company
: India
EXPORT
100% of the products is exported to United Kingdom, Switzerland, United States of America, Hong Kong,
India, Korea, Japan, Singapore, Australia, Republic of
China, Taiwan, Russia,
Middle East and
European countries.
RELATED/AFFILIATED COMPANY
Sagar Gems &
Jewellery Mfg. Co.,
Ltd.
Business Type :
Manufacturer of jewelry
products
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
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.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
150 office staff
and factory workers.
LOCATION DETAILS
The
premise is rented
for administrative office at
the heading address.
Premise is located
in a prime
commercial area.
Factory
and warehouse are
located at 38 Gemopolis Industrial
Estate, 4th-5th
Floor, IGS Building,
Sukhapiban 2 Rd.,
Dokmai, Praves, Bangkok
10260.
Tel : [66]
2727-0600-4, Fax : [66] 2727-0605.
COMMENT
The
subject disclosed good
operating performance in
2012. There was
a demand of
the products from
exports market which
contributes to the
subject’s strong sales
income. Consumption improvement
has resulted to
optimistic about the
USA and European
markets.
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.
10,000,000 on August
5, 1998
Bht.
25,000,000 on August
17, 1999
Bht.
35,000,000 on July
16, 2001
Bht.
50,000,000 on May
8, 2002
Bht.
60,000,000 on December
25, 2007
Bht.
80,000,000 on March
2, 2012
The
latest registered capital
was increased to
Bht. 80,000,000 divided into
800,000 shares of
Bht. 100 each,
with the current
capital paid-up at
Bht. 70,000,000.
THE
SHAREHOLDERS LISTED WERE
: [as at April 30,
2013] at Bht.
70,000,000 of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Isira Aoonharasmee Nationality: Thai Address : 208
Moo 5, Banpong, Prao,
Chiangmai |
168,000 |
21.00 |
|
Mr. Rajeev Kumar Kapadia Nationality: Indian Address : 322/27
Surawong Rd., Siphya,
Bangrak, Bangkok |
160,000 |
20.00 |
|
Akash Finance Holding
Ltd. Nationality: BVI Address : P.O. Box
3321 Tortola,
British Virgin Islands |
132,000 |
16.50 |
|
Ms. Busara Milawan Nationality: Thai Address : 49
Trok Wate, Silom
Road, Silom,
Bangrak, Bangkok |
120,000 |
15.00 |
|
Ms. Sudsiri Trongkamoltham Nationality: Thai Address : 36/25-26
Trok Nokkhet, Chongnonsi,
Yannawa, Bangkok |
120,000 |
15.00 |
|
Mrs. Shilpa Rajeev Kapadia Nationality: Indian Address : 322/27
Surawong Rd., Siphya,
Bangrak,
Bangkok |
100,000 |
12.50 |
Total Shareholders : 6
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
408,000 |
51.00 |
|
Foreign |
3 |
392,000 |
49.00 |
|
Total |
6 |
800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Valit Panpoonsap No.
4018
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 |
2,906,031.87 |
636,616.22 |
1,645,585.12 |
|
Trade Accounts Receivable |
425,568,697.27 |
359,849,600.98 |
306,933,083.91 |
|
Inventories |
391,766,791.67 |
358,405,200.25 |
219,492,734.40 |
|
Cash at Bank pledged
as a Collateral |
126,432,087.89 |
88,669,400.94 |
88,007,404.66 |
|
Refundable Value Added
Tax |
595,059.15 |
527,916.30 |
1,156,277.26 |
|
Other Current Assets
|
142,597.09 |
183,833.05 |
2,047,089.33 |
|
|
|
|
|
|
Total Current Assets
|
947,411,264.94 |
808,272,567.74 |
619,282,174.68 |
|
Fixed Assets |
44,345,014.03 |
39,007,042.76 |
34,474,188.98 |
|
Other Non-current Assets |
1,090,474.81 |
1,117,921.26 |
1,023,630.51 |
|
Total Assets |
992,846,753.78 |
848,397,531.76 |
654,779,994.17 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
489,072,634.40 |
357,341,848.23 |
300,830,207.44 |
|
Trade Accounts Payable |
264,109,308.66 |
298,065,592.41 |
191,258,482.66 |
|
Accrued Expenses |
- |
- |
15,394,033.90 |
|
Advance Income from
Customer |
15,389,981.11 |
- |
- |
|
Current Portion of
Hire-purchase Contract Liabilities |
1,750,329.00 |
1,310,484.00 |
429,660.00 |
|
Accrued Commission |
26,426,658.00 |
25,218,482.57 |
- |
|
Accrued Income Tax |
3,697,052.29 |
7,366,389.46 |
2,194,882.09 |
|
Other Current Liabilities |
1,824,204.41 |
2,361,797.94 |
1,328,380.15 |
|
|
|
|
|
|
Total Current Liabilities |
802,270,167.87 |
691,664,594.61 |
511,435,646.24 |
|
Hire-purchase Contract
Liabilities, net |
674,688.00 |
1,852,477.00 |
1,107,705.00 |
|
Other Liabilities - Employee
Benefits |
1,518,069.53 |
- |
- |
|
Total Liabilities |
804,462,925.40 |
693,517,071.61 |
512,543,351.24 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
800,000 in
2012; 600,000 shares in 2011 & 2010
respectively |
80,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
|
|
|
|
|
Capital Paid |
70,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
6,000,000.00 |
6,000,000.00 |
- |
|
Unappropriated |
112,383,828.38 |
88,880,460.15 |
82,236,642.93 |
|
Total Shareholders' Equity |
188,383,828.38 |
154,880,460.15 |
142,236,642.93 |
|
Total Liabilities &
Shareholders' Equity |
992,846,753.78 |
848,397,531.76 |
654,779,994.17 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,332,885,344.41 |
1,265,624,441.52 |
983,375,449.19 |
|
Gain on Exchange
Rate |
7,028,470.41 |
4,448,109.03 |
- |
|
Other Income |
3,743,239.79 |
2,773,311.53 |
8,530,905.10 |
|
Total Revenues |
1,343,657,054.61 |
1,272,845,862.08 |
991,906,354.29 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished Goods and Work in Process |
- |
- |
[43,314,007.92] |
|
Change in Raw Material and Material Supplies |
- |
- |
[43,289,670.43] |
|
Purchase Material &
Material Supplies |
- |
- |
901,823,683.04 |
|
Cost of Goods
Sold |
1,233,286,714.67 |
1,172,426,766.59 |
- |
|
Selling Expenses |
31,988,527.78 |
34,955,412.50 |
- |
|
Administrative Expenses |
29,618,485.58 |
19,438,135.92 |
- |
|
Salary & Employees Benefit |
- |
- |
76,441,869.43 |
|
Depreciation & Amortization
|
- |
- |
5,208,299.78 |
|
Commission |
- |
- |
18,906,189.04 |
|
Other Expenses |
- |
- |
48,202,735.24 |
|
Total Expenses |
1,294,893,728.03 |
1,226,820,315.01 |
963,979,098.18 |
|
|
|
|
|
|
Profit before Financial Costs & Income Tax |
48,763,326.58 |
46,025,547.07 |
27,927,256.11 |
|
Financial Costs |
[17,541,056.69] |
[13,479,814.17] |
[12,686,613.19] |
|
Income Tax |
[7,718,901.66] |
[9,701,915.68] |
[4,645,195.79] |
|
|
|
|
|
|
Net Profit / [Loss] |
23,503,368.23 |
22,843,817.22 |
10,595,447.13 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.18 |
1.17 |
1.21 |
|
QUICK RATIO |
TIMES |
0.69 |
0.65 |
0.78 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
30.06 |
32.45 |
28.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.34 |
1.49 |
1.50 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
115.95 |
111.58 |
88.84 |
|
INVENTORY TURNOVER |
TIMES |
3.15 |
3.27 |
4.11 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
116.54 |
103.78 |
113.92 |
|
RECEIVABLES TURNOVER |
TIMES |
3.13 |
3.52 |
3.20 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
78.17 |
92.79 |
77.41 |
|
CASH CONVERSION CYCLE |
DAYS |
154.32 |
122.56 |
125.35 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.53 |
92.64 |
91.71 |
|
SELLING & ADMINISTRATION |
% |
4.62 |
4.30 |
8.30 |
|
INTEREST |
% |
1.32 |
1.07 |
1.29 |
|
GROSS PROFIT MARGIN |
% |
8.28 |
7.93 |
9.16 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.66 |
3.64 |
2.84 |
|
NET PROFIT MARGIN |
% |
1.76 |
1.80 |
1.08 |
|
RETURN ON EQUITY |
% |
12.48 |
14.75 |
7.45 |
|
RETURN ON ASSET |
% |
2.37 |
2.69 |
1.62 |
|
EARNING PER SHARE |
BAHT |
33.58 |
38.07 |
17.66 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.81 |
0.82 |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.27 |
4.48 |
3.60 |
|
TIME INTEREST EARNED |
TIMES |
2.78 |
3.41 |
2.20 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
5.31 |
28.70 |
|
|
OPERATING PROFIT |
% |
5.95 |
64.81 |
|
|
NET PROFIT |
% |
2.89 |
115.60 |
|
|
FIXED ASSETS |
% |
13.68 |
13.15 |
|
|
TOTAL ASSETS |
% |
17.03 |
29.57 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 5.31%. Turnover has increased from THB
1,265,624,441.52 in 2011 to THB 1,332,885,344.41 in 2012. While net profit has
increased from THB 22,843,817.22 in 2011 to THB 23,503,368.23 in 2012. And
total assets has increased from THB 848,397,531.76 in 2011 to THB
992,846,753.78 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.28 |
Deteriorated |
Industrial
Average |
21.85 |
|
Net Profit Margin |
1.76 |
Impressive |
Industrial
Average |
1.70 |
|
Return on Assets |
2.37 |
Impressive |
Industrial
Average |
1.73 |
|
Return on Equity |
12.48 |
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 8.28%. 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. The company's figure is 1.76%, 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 2.37%, 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 12.48%, 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 |
1.18 |
Satisfactory |
Industrial
Average |
1.51 |
|
Quick Ratio |
0.69 |
|
|
|
|
Cash Conversion Cycle |
154.32 |
|
|
|
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 1.18 times in 2012, increased from 1.17 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 0.69 times in 2012,
increased from 0.65 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 155 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.81 |
Acceptable |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
4.27 |
Risky |
Industrial
Average |
3.27 |
|
Times Interest Earned |
2.78 |
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 2.78 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 0.81 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 |
30.06 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.34 |
Impressive |
Industrial
Average |
1.02 |
|
Inventory Conversion Period |
115.95 |
|
|
|
|
Inventory Turnover |
3.15 |
Impressive |
Industrial
Average |
2.22 |
|
Receivables Conversion Period |
116.54 |
|
|
|
|
Receivables Turnover |
3.13 |
Impressive |
Industrial
Average |
1.85 |
|
Payables Conversion Period |
78.17 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.13 and 3.52 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 increased from 112 days at the
end of 2011 to 116 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.27 times in year 2011 to 3.15 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.34 times and 1.49
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.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
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.