MIRA
INFORM REPORT
|
Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
LIVING STONE
DIAMOND CO., LTD. |
|
|
|
|
Registered Office : |
13ath Floor,
The Executive House, 410/154-156 Surawong
Road, Siphaya, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
1988 |
|
|
|
|
Com. Reg. No.: |
0105531096576 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and
Exporter of Diamonds |
|
|
|
|
No. of Employees : |
5 |
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 : |
Slow |
|
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 |
Company name
LIVING
STONE DIAMOND CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 13Ath FLOOR,
THE EXECUTIVE HOUSE,
410/154-156 SURAWONG
ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2234-4082,
2237-1436, 2235-9453
FAX :
[66] 2266-7899,
2631-4033
E-MAIL
ADDRESS : atuljogani@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531096576
TAX
ID NO. : 3101577785
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
70%
INDIAN
: 30%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ATUL KUMAR
JAYANTILAL JOKANI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on December 8,
1988 as a
private limited company
under the name
style LIVING STONE
DIAMOND CO., LTD.
by Thai and
Indian groups. Its
business objective is to import,
distribute and export
diamonds for jewelry
industry. It currently
employs 5 staff.
The subject’s registered
address is 13Ath Flr., The
Executive House, 410/154-156
Surawong Rd., Siphaya, Bangrak, Bangkok 10500, and this is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Atul Kumar Jayantilal
Jokani |
|
Indian |
49 |
|
Ms. Nalisa Saeharn |
|
Thai |
36 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Atul Kumar Jayantilal
Jokani is the
Managing Director.
He is Indian
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing of diamonds
and gemstones for
jewelry trading and
production industry, as
well as exporting
of local jewelry
products.
PURCHASE
The products are purchased from suppliers
both domestic and overseas,
mainly in India, Pakistan
and Africa.
SALES [LOCAL]
The products are sold
locally to traders
and manufacturers.
EXPORT [COUNTRIES]
Local jewelry products
are exported to
United States of
America, Hong Kong,
India, Japan and European countries.
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
according 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 area against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 5
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The
subject was formed in 1988 as an importer,
distributor and exporter of
diamond jewelry productions.
Subject reported moderate
sales in the past
several years, as
well as disclose
a promising sales
in the beginning
of 2013. Its business
outlook remains optimistic.
FINANCIAL
INFORMATION
The
capital was registered at
Bht. 1,000,000 divided into 10,000
shares of Bht. 100 each with fully
paid.
The
capital was increased
later as follows:
Bht. 3,000,000
on January 27,
1989
Bht. 4,000,000
on August 11,
1994
Bht. 12,000,000
on December 1,
1995
The
latest registered capital
was increased to
Bht. 12 million, divided
into 120,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Atul Kumar Jayantilal
Jokani Nationality: Indian Address : 410/155
Surawong Rd., Siphaya,
Bangrak, Bangkok |
36,000 |
30.00 |
|
Mr. Somchai Pornchindarak Nationality: Thai Address : 264-266
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok |
30,000 |
25.00 |
|
Mr. Sanan Kwankerd Nationality: Thai Address : 131/615
Moo 6, Samaedam,
Bangkhunthien, Bangkok |
24,000 |
20.00 |
|
Ms. Veerawan Jirathamwong Nationality: Thai Address : 190/19
Sathupradit Rd., Thungwatdon,
Sathorn, Bangkok |
9,600 |
8.00 |
|
Ms. Nalisa Saeharn Nationality: Thai Address :
326/11 Surawong Rd.,
Siphaya,
Bangrak, Bangkok |
7,200 |
6.00 |
|
Mrs. Ananya Sutapak Nationality: Thai Address : 159/402
Moo 6, Klongmai,
Sampran,
Nakornpathom |
7,200 |
6.00 |
|
Mr. Samersak Chaidist Nationality: Thai Address : 65
Moo 5, Petchlakorn, Nongpai,
Petchabun |
6,000 |
5.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
84,000 |
70.00 |
|
Foreign - Indian |
1 |
36,000 |
30.00 |
|
Total |
7 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Pimporn Nimmarnwattana No. 4268
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
36,706.01 |
91,823.07 |
300,750.88 |
|
Trade Accounts & Other
Receivable |
98,081.06 |
6,787,561.73 |
10,957,443.94 |
|
Inventories |
32,915,864.82 |
28,632,573.75 |
18,978,658.34 |
|
Other Current Assets
|
- |
- |
78,986.33 |
|
|
|
|
|
|
Total Current Assets
|
33,050,651.89 |
35,511,958.55 |
30,315,839.49 |
|
Fixed Assets |
678,528.98 |
702,505.62 |
732,755.98 |
|
Other Non-current Assets |
17,802.04 |
17,802.04 |
17,802.04 |
|
Total Assets |
33,746,982.91 |
36,232,266.21 |
31,066,397.51 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
2,952,541.77 |
634,339.78 |
- |
|
Trade Accounts &
Other Payable |
14,964,028.79 |
22,249,856.11 |
17,634,428.07 |
|
Short-term Loan |
2,220,000.00 |
- |
- |
|
Accrued Income Tax |
139,890.36 |
90,893.92 |
- |
|
Other Current Liabilities |
9,341.49 |
8,355.71 |
164,396.53 |
|
|
|
|
|
|
Total Current Liabilities |
20,285,802.41 |
22,983,445.52 |
17,798,824.60 |
|
Total Liabilities |
20,285,802.41 |
22,983,445.52 |
17,798,824.60 |
|
|
|
|
|
|
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 |
1,461,180.50 |
1,248,820.69 |
1,267,572.91 |
|
Total Shareholders' Equity |
13,461,180.50 |
13,248,820.69 |
13,267,572.91 |
|
Total Liabilities &
Shareholders' Equity |
33,746,982.91 |
36,232,266.21 |
31,066,397.51 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales - Local |
6,985,589.84 |
6,253,988.65 |
16,951,131.25 |
|
Export Income |
25,571,288.29 |
21,029,346.85 |
10,474,864.33 |
|
Other Income |
1.29 |
4,675.09 |
546,706.34 |
|
Total Revenues |
32,556,879.42 |
27,288,010.59 |
27,972,701.92 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
28,905,177.86 |
23,619,139.63 |
24,142,703.34 |
|
Selling Expenses |
23,406.12 |
31,775.03 |
6,800.15 |
|
Administrative Expenses |
3,115,652.03 |
3,398,062.28 |
3,282,432.77 |
|
Total Expenses |
32,044,236.01 |
27,048,976.94 |
27,431,936.26 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
512,643.41 |
239,033.65 |
540,765.66 |
|
Financial Cost |
[55,752.89] |
[105,998.02] |
[72,329.56] |
|
Profit / [Loss] before Income Tax |
456,890.52 |
133,035.63 |
468,436.10 |
|
Income Tax |
[244,530.71] |
[151,787.85] |
[155,384.71] |
|
|
|
|
|
|
Net Profit / [Loss] |
212,359.81 |
[18,752.22] |
313,051.39 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.63 |
1.55 |
1.70 |
|
QUICK RATIO |
TIMES |
0.01 |
0.30 |
0.63 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
47.98 |
38.84 |
37.43 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.96 |
0.75 |
0.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
415.64 |
442.48 |
286.93 |
|
INVENTORY TURNOVER |
TIMES |
0.88 |
0.82 |
1.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
1.10 |
90.80 |
145.83 |
|
RECEIVABLES TURNOVER |
TIMES |
331.94 |
4.02 |
2.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
188.96 |
343.84 |
266.61 |
|
CASH CONVERSION CYCLE |
DAYS |
227.79 |
189.44 |
166.15 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.78 |
86.57 |
88.03 |
|
SELLING & ADMINISTRATION |
% |
9.64 |
12.57 |
11.99 |
|
INTEREST |
% |
0.17 |
0.39 |
0.26 |
|
GROSS PROFIT MARGIN |
% |
11.22 |
13.45 |
13.96 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.57 |
0.88 |
1.97 |
|
NET PROFIT MARGIN |
% |
0.65 |
(0.07) |
1.14 |
|
RETURN ON EQUITY |
% |
1.58 |
(0.14) |
2.36 |
|
RETURN ON ASSET |
% |
0.63 |
(0.05) |
1.01 |
|
EARNING PER SHARE |
BAHT |
1.77 |
(0.16) |
2.61 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.63 |
0.57 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.51 |
1.73 |
1.34 |
|
TIME INTEREST EARNED |
TIMES |
9.19 |
2.26 |
7.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
19.33 |
(0.52) |
|
|
OPERATING PROFIT |
% |
114.46 |
(55.80) |
|
|
NET PROFIT |
% |
1,232.45 |
(105.99) |
|
|
FIXED ASSETS |
% |
(3.41) |
(4.13) |
|
|
TOTAL ASSETS |
% |
(6.86) |
16.63 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 19.33%. Turnover has increased from THB
27,283,335.50 in 2010 to THB 32,556,878.13 in 2011. While net profit has
increased from THB -18,752.22 in 2010 to THB 212,359.81 in 2011. And total
assets has decreased from THB 36,232,266.21 in 2010 to THB 33,746,982.91 in
2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.22 |
Impressive |
Industrial Average |
9.66 |
|
Net Profit Margin |
0.65 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.63 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
1.58 |
Impressive |
Industrial Average |
(0.72) |
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. Gross Profit Margin is 11.22%. When compared with
the industry average, the ratio of the company was higher. This 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. Net Profit Margin ratio is 0.65%,
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
0.63%, 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 1.58%, 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 Stable
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.63 |
Satisfactory |
Industrial Average |
1.72 |
|
Quick Ratio |
0.01 |
|
|
|
|
Cash Conversion Cycle |
227.79 |
|
|
|
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 1.63 times in 2011, decrease from 1.55 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 0.01 times in 2011,
decrease from 0.3 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 228 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
1.51 |
Acceptable |
Industrial Average |
1.67 |
|
Times Interest Earned |
9.19 |
Impressive |
Industrial Average |
0.63 |
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 9.2 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 0.6 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 Uptrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
47.98 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
0.96 |
Acceptable |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
415.64 |
|
|
|
|
Inventory Turnover |
0.88 |
Deteriorated |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
1.10 |
|
|
|
|
Receivables Turnover |
331.94 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
188.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 331.94 and 4.02
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 decreased from 442 days at the
end of 2010 to 416 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 0.82 times in year 2010 to 0.88 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.96 times and 0.75
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 Uptrend
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.54.40 |
|
|
1 |
Rs.81.56 |
|
Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.