|
Report Date : |
04.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
GEMINI CREATION
CO., LTD. |
|
|
|
|
Registered Office : |
23rd Flr., TPI Tower, 26/56 Chan Tat Mai Rd., Thungmahamek, Sathorn,
Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
25.05.2004 |
|
|
|
|
Com. Reg. No.: |
0105547070563 |
|
|
|
|
Legal Form : |
Private Limited Company
|
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of Fine Gold
and Silver Jewelry |
|
|
|
|
No. of Employees : |
70 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
|
Source
: CIA |
GEMINI CREATION
CO., LTD.
BUSINESS
ADDRESS : 23rd FLOOR,
TPI TOWER, 26/56
CHAN TAT MAI
ROAD,
THUNGMAHAMEK, SATHORN,
BANGKOK
10120, THAILAND
TELEPHONE : [66] 2678-6058,
2678-8945
FAX
:
[66] 2678-7419
E-MAIL
ADDRESS : gemini@csloxinfo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547070563
TAX
ID NO. : 3031384880
CAPITAL REGISTERED : BHT. 55,000,000
CAPITAL PAID-UP : BHT.
55,000,000
SHAREHOLDER’S PROPORTION : INDIAN : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VIJAY RAWAT,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 70
LINES
OF BUSINESS : FINE
GOLD AND SILVER
JEWELRY
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
The subject
was established on
May 25, 2004
as a private
limited company under
the registered name GEMINI
CREATION CO., LTD., by Indian groups, with the
business objective to
provide design and manufacture
various styles of
gems and diamond jewelry
with gold and
silver to both
domestic and international
markets. It currently
employs approximately 70
staff.
The subject’s registered address is 23rd
Flr., TPI Tower, 26/56 Chan Tat Mai Rd.,
Thungmahamek, Sathorn, Bangkok
10120, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vijay Rawat |
|
Indian |
49 |
|
Mr. Sunil Kumer Haldia |
|
Indian |
49 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vijay Rawat is
the Managing Director.
He is Indian
nationality with the
age of 49 years
old.
Mr. Sunil Kumer Haldia
is the Chief
Finance Officer.
He is Indian
nationality with the
age of 49 years old.
Mr. Arjun Rawat is
the Sales &
Marketing Director.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
design and manufacturing
services of gemstone
and diamond jewelry
with fine gold
and vintage silver
under international standard
processing. The products
include ring, earrings, pendant, bracelet
and etc.
PURCHASE
Raw
materials such as
gemstones, semi-precious stones,
diamonds and accessories
are purchased from suppliers
both domestic and
overseas, mainly in
India, Africa, Brazil,
and Republic of
China.
EXPORT
95% of the
products is exported
to U.S.A., Hong
Kong, India, Japan
and European countries,
the remaining 5%
is sold locally.
MAJOR
CUSTOMER
Gauri
Creation Inc. :
U.S.A.
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
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
70 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
is located at
Gemopolis Industrial Estate,
40/4-5 Soi 31,
Sukhapiban 2 Rd.,
Dokmai, Pravet, Bangkok
10250.
COMMENT
The
jewelry business is
vibrant. The subject’s
jewelry products are
diversified in international markets with
trendy design and
prices attractiveness. An overall
jewelry industry in
domestic market seems to
enjoy growing since
the beginning of
the year 2012,
while the subject’s
business was moderate.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 4,000,000
on February 21,
2005
Bht. 10,000,000
on May 20,
2005
Bht. 20,000,000
on August 26,
2005
Bht. 50,000,000
on December 11,
2007
Bht. 55,000,000
on October 16,
2008
The
latest registered capital
was increased to
Bht. 55 million,
divided into 55,000
shares of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vijay Rawat Nationality: Indian Address : 16A,
16/F., Supakarn Condo,
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
16,500 |
30.00 |
|
Mr. Arjun Rawat Nationality: Indian Address : 16A,
16/F., Supakarn Condo,
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
13,200 |
24.00 |
|
Mrs. Niti Rawat Nationality: Indian Address : 16A,
16/F., Supakarn Condo,
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
11,550 |
21.00 |
|
Mrs. Sharita Haldia Nationality: Indian Address : 423/5
Rama 3 Rd.,
Chongnonsi,
Yannawa, Bangkok |
11,550 |
21.00 |
|
Mr. Sunil Kumer Haldia Nationality: Indian Address : 423/5
Rama 3 Rd.,
Chongnonsi, Yannawa, Bangkok
|
2,200 |
4.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Indian |
5 |
55,000 |
100.00 |
|
Total |
5 |
55,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wattana Treekantha No.
2399
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalent |
4,915,030.08 |
2,556,098.71 |
5,914,759.14 |
|
Short-term Investment |
5,014,922.04 |
3,000,000.00 |
- |
|
Trade Accounts Receivable |
185,036,870.11 |
153,906,287.16 |
130,393,951.43 |
|
Short-term Lending to Person
or Related Company |
- |
- |
2,750,000.00 |
|
Other Receivable |
5,252,095.00 |
5,252,095.00 |
- |
|
Inventories |
11,990,071.08 |
7,324,398.70 |
61,470,000.87 |
|
Other Current Assets |
2,329,227.65 |
876,857.67 |
1,410,943.02 |
|
|
|
|
|
|
Total Current Assets
|
214,538,215.96 |
172,915,737.24 |
201,939,654.46 |
|
|
|
|
|
|
Investment in Related Company |
2,987,820.00 |
2,987,820.00 |
- |
|
Fixed Assets |
9,297,603.40 |
9,244,899.41 |
10,364,631.41 |
|
Other Non-current Assets |
423,805.54 |
423,805.54 |
1,273,309.54 |
|
Total Assets |
227,247,444.90 |
185,572,262.19 |
213,577,595.41 |
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
46,846,869.53 |
39,852,619.99 |
41,802,777.59 |
|
Trade Accounts Payable |
117,889,651.26 |
87,365,956.37 |
114,327,233.49 |
|
Current Portion of Long-term Liabilities |
187,500.00 |
- |
- |
|
Accrued Income Tax |
1,174,848.47 |
268,275.10 |
105,642.55 |
|
Other Current Liabilities |
239,467.92 |
363,295.76 |
220,384.34 |
|
|
|
|
|
|
Total Current Liabilities |
166,338,337.18 |
127,850,147.22 |
156,456,037.97 |
|
Long-term Liabilities |
390,625.00 |
- |
- |
|
Total Liabilities |
166,728,962.18 |
127,850,147.22 |
156,456,037.97 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 55,000 shares |
55,000,000.00 |
55,000,000.00 |
55,000,000.00 |
|
|
|
|
|
|
Capital Paid |
55,000,000.00 |
55,000,000.00 |
55,000,000.00 |
|
Retained Earning Unappropriated |
5,518,482.72 |
2,722,114.97 |
2,121,557.44 |
|
Total Shareholders' Equity |
60,518,482.72 |
57,722,114.97 |
57,121,557.44 |
|
Total Liabilities &
Shareholders' Equity |
227,247,444.90 |
185,572,262.19 |
213,577,595.41 |
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
187,421,115.27 |
197,757,204.73 |
206,508,833.42 |
|
Other Income |
2,374,195.76 |
459,715.16 |
168,255.54 |
|
Total Revenues |
189,795,311.03 |
198,216,919.89 |
206,677,088.96 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Progress
|
174,076,568.38 |
175,857,658.20 |
190,989,673.62 |
|
Selling Expenses |
2,316,417.95 |
1,548,098.73 |
769,588.18 |
|
Administrative Expenses |
6,749,897.28 |
10,557,939.73 |
8,632,230.41 |
|
Other Expenses |
- |
5,844,284.50 |
2,545,430.98 |
|
Total Expenses |
183,142,883.61 |
193,807,981.16 |
202,936,923.19 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
6,652,427.42 |
4,408,938.73 |
3,740,165.77 |
|
Financial Cost |
[2,630,211.20] |
[3,540,106.10] |
[3,123,168.60] |
|
Profit / [Loss] before Income
Tax |
4,022,216.22 |
868,832.63 |
616,997.17 |
|
Income Tax |
[1,225,848.47] |
[268,275.10] |
[206,142.55] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,796,367.75 |
600,557.53 |
410,854.62 |
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.29 |
1.35 |
1.29 |
|
QUICK RATIO |
TIMES |
1.20 |
1.29 |
0.89 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.16 |
21.39 |
19.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.82 |
1.07 |
0.97 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
25.14 |
15.20 |
117.48 |
|
INVENTORY TURNOVER |
TIMES |
14.52 |
24.01 |
3.11 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
360.36 |
284.06 |
230.47 |
|
RECEIVABLES TURNOVER |
TIMES |
1.01 |
1.28 |
1.58 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
247.19 |
181.33 |
218.49 |
|
CASH CONVERSION CYCLE |
DAYS |
138.31 |
117.93 |
129.45 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.88 |
88.93 |
92.48 |
|
SELLING & ADMINISTRATION |
% |
4.84 |
6.12 |
4.55 |
|
INTEREST |
% |
1.40 |
1.79 |
1.51 |
|
GROSS PROFIT MARGIN |
% |
8.39 |
11.31 |
7.60 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.55 |
2.23 |
1.81 |
|
NET PROFIT MARGIN |
% |
1.49 |
0.30 |
0.20 |
|
RETURN ON EQUITY |
% |
4.62 |
1.04 |
0.72 |
|
RETURN ON ASSET |
% |
1.23 |
0.32 |
0.19 |
|
EARNING PER SHARE |
BAHT |
50.84 |
10.92 |
7.47 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.69 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.76 |
2.21 |
2.74 |
|
TIME INTEREST EARNED |
TIMES |
2.53 |
1.25 |
1.20 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.23) |
(4.24) |
|
|
OPERATING PROFIT |
% |
50.89 |
17.88 |
|
|
NET PROFIT |
% |
365.63 |
46.17 |
|
|
FIXED ASSETS |
% |
0.57 |
(10.80) |
|
|
TOTAL ASSETS |
% |
22.46 |
(13.11) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is -5.23%. Turnover has decreased from THB 197,757,204.73
in 2010 to THB 187,421,115.27 in 2011. While net profit has increased from THB
600,557.53 in 2010 to THB 2,796,367.75 in 2011. And total assets has increased
from THB 185,572,262.19 in 2010 to THB 227,247,444.90 in 2011.
PROFITABILITY :
IMPRESSIVE

PROFITABILITY
RATIO
|
Gross Profit Margin |
8.39 |
Acceptable |
Industrial
Average |
15.83 |
|
Net Profit Margin |
1.49 |
Impressive |
Industrial
Average |
0.22 |
|
Return on Assets |
1.23 |
Impressive |
Industrial
Average |
0.24 |
|
Return on Equity |
4.62 |
Impressive |
Industrial
Average |
0.39 |
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 8.39%. 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 1.49%,
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 profits 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 4.62%, 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 :
ACCEPTABLE

LIQUIDITY RATIO
|
Current Ratio |
1.29 |
Satisfactory |
Industrial
Average |
1.69 |
|
Quick Ratio |
1.20 |
|
|
|
|
Cash Conversion Cycle |
138.31 |
|
|
|
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 1.29 times in 2011, decreased from 1.35 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 1.2 times in 2011,
decreased from 1.29 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 139 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE


LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
2.76 |
Risky |
Industrial
Average |
1.31 |
|
Times Interest Earned |
2.53 |
Impressive |
Industrial
Average |
0.96 |
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 2.53 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 0.73 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
SATISFACTORY

ACTIVITY RATIO
|
Fixed Assets Turnover |
20.16 |
Impressive |
Industrial
Average |
4.89 |
|
Total Assets Turnover |
0.82 |
Acceptable |
Industrial
Average |
1.36 |
|
Inventory Conversion Period |
25.14 |
|
|
|
|
Inventory Turnover |
14.52 |
Impressive |
Industrial
Average |
2.04 |
|
Receivables Conversion Period |
360.36 |
|
|
|
|
Receivables Turnover |
1.01 |
Deteriorated |
Industrial
Average |
3.46 |
|
Payables Conversion Period |
247.19 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.01 and 1.28 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 increased from 15 days at the
end of 2010 to 25 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 24.01 times in year 2010 to 14.52
times in year 2011.
The company's Total Asset Turnover is calculated as 0.82 times and 1.07
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 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.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
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 –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.48 |
|
UK Pound |
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.71.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.