MIRA
INFORM REPORT
|
Report Date : |
04.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRESTORISE INTERTRADE
COMPANY LIMITED |
|
|
|
|
Registered Office : |
14th Floor, Bangkok Gems & Jewellery Tower, 322/23 Surawong
Road, Siphya,
Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.07.1989 |
|
|
|
|
Com. Reg. No.: |
0105532061741 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter & Distributor Diamonds, Gemstones &
Jewelry Products |
|
|
|
|
No. of Employees : |
05 |
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 |
|
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 crisis 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 and address
PRESTORISE
INTERTRADE COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR, BANGKOK GEMS & JEWELLERY
TOWER,
322/23 SURAWONG
ROAD,
SIPHYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2238-3880-3
FAX :
[66] 2238-3884
E-MAIL
ADDRESS : wonderful_9128@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532061741
TAX
ID NO. : 3101720709
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAVEEN R. LODHA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS, GEMSTONES & JEWELRY PRODUCTS
IMPORTER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 6,
1989 as a
private limited company
under the name
style PRESTORISE INTERTRADE
COMPANY LIMITED, by
Thai and Indian
groups, in order
to import and
distribute diamonds, gemstones
and jewelry to
local market. It current
employs 5 staff.
The subject’s registered
address is 14th Flr.,
Bangkok Gems & Jewellery
Tower, 322/23 Surawong
Rd., Siphya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
Mr. Praveen R.
Lodha
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Praveen R.
Lodha is the
Managing Director.
He is Indian
nationality with the
age of 55
years old.
BUSINESS OPERATIONS
The subject is engaged in
importing, distributing and
exporting of diamonds, gemstones
and jewelry products.
PURCHASE
100% of jewelry
products is purchased
from local suppliers
and manufacturers.
IMPORT
Diamonds
and gemstones are
imported from India,
Republic of China
and Hong Kong.
MAJOR
SUPPLIER
Anna
Diamonds Bvba Ltd. : India
SALES
[LOCAL]
Diamonds
are sold locally
by wholesale to
dealers and manufacturers.
EXPORT
Jewelry
products are exported
to U.S.A., India, Hong Kong
and European countries.
SUBSIDIARY AND
AFFILIATED COMPANY
Priyaank International Co.,
Ltd.
Business Type :
Importer and distributor
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
Sales
are by cash
or 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 L/C
or T/T.
Exports
are against T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
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
The subject has been in its business for more than 20 years. Its sales had steadily grown in the past several years. Subject reported good business results in the year 2011, while slow business has seen since the end of 2012 and declined further into 2013. This is the results from economy slowdown and shrinking domestic purchasing power.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100
each.
The
capital was increased
later as follows:
Bht. 6,000,000
on December 8,
1993
Bht. 15,000,000
on December 27,
1994
The
latest registered capital
was increased to
Bht. 15,000,000 divided into
150,000 shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa Naruelar Nationality: Thai Address : 32/31-32
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
73,496 |
49.00 |
|
Mr. Praveen R.
Lodha Nationality: Indian Address : 322/23
Surawong Rd., Siphya,
Bangrak, Bangkok |
70,000 |
46.67 |
|
Ms. Niramala Zasiti Nationality: Indian Address : 1867/85
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
3,000 |
2.00 |
|
Mr. Nikorn Kijvanich Nationality: Thai Address : 69/71
Rama 4 Rd.,
Pomprab, Bangkok |
3,000 |
2.00 |
|
Mrs. Sukesee Lodha Nationality: Indian Address : 1867/85
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
499 |
0.33 |
|
Ms. Araya Thirachavalit Nationality: Thai Address : 510
Charansanitwong 66/1 Rd.,
Bangplad, Bangkok |
4 |
- |
|
|
|
|
|
Ms. Mahee Lodha Nationality: Thai Address : 1867/85
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
76,501 |
51.00 |
|
Foreign-Indian |
3 |
73,499 |
49.00 |
|
Total |
7 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Nongnuj Ouitrakul
No. 2241
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
485,380.22 |
4,798,507.60 |
171,585.84 |
|
Short-term Investment |
58,995.39 |
57,706.47 |
- |
|
Trade Accounts & Other Receivable |
94,118,118.98 |
85,931,936.90 |
56,192,416.16 |
|
Inventories |
49,770,338.49 |
51,695,709.00 |
55,736,931.32 |
|
Other Current Assets
|
3,605.80 |
2,786.65 |
195,264.43 |
|
|
|
|
|
|
Total Current Assets
|
144,436,438.88 |
142,486,646.62 |
112,296,197.75 |
|
|
|
|
|
|
Fixed Assets |
1,417,795.97 |
1,792,151.30 |
1,367,317.60 |
|
Intangible Assets |
3,086.10 |
12,308.48 |
21,530.86 |
|
Deposit |
1,200.00 |
4,200.00 |
1,200.00 |
|
Total Assets |
145,858,520.95 |
144,292,306.40 |
113,686,246.21 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
69,388,103.05 |
88,583,870.03 |
68,717,285.21 |
|
Trade Account & Other Payable |
40,265,954.37 |
22,184,223.04 |
12,014,919.81 |
|
Current Portion of Financial Lease Contract Liabilities |
336,854.70 |
322,762.12 |
- |
|
Current Portion of Hire-purchase Payable |
- |
- |
148,872.06 |
|
Other Current Liabilities |
457,503.83 |
171,339.02 |
1,557,359.92 |
|
|
|
|
|
|
Total Current Liabilities |
110,448,415.95 |
111,262,194.21 |
82,438,437.00 |
|
Financial Lease Contract Liabilities, Net |
477,436.31 |
814,236.07 |
- |
|
Total Liabilities |
110,925,852.26 |
112,076,430.28 |
82,438,437.00 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning -
Unappropriated |
19,932,668.69 |
17,215,876.12 |
16,247,809.21 |
|
Total Shareholders' Equity |
34,932,668.69 |
32,215,876.12 |
31,247,809.21 |
|
Total Liabilities &
Shareholders' Equity |
145,858,520.95 |
144,292,306.40 |
113,686,246.21 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
191,649,458.58 |
201,276,329.47 |
176,515,338.94 |
|
Gain on Exchange Rate |
3,805,585.68 |
- |
2,161,694.73 |
|
Other Income |
258,554.58 |
499,601.14 |
202,716.69 |
|
Total Revenues |
195,713,598.84 |
201,775,930.61 |
178,879,750.36 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
182,899,516.42 |
188,435,772.38 |
166,712,011.68 |
|
Selling Expenses |
1,091,052.83 |
926,657.01 |
859,742.80 |
|
Administrative Expenses |
5,697,233.02 |
4,383,848.64 |
4,372,364.76 |
|
Loss on Exchange
Rate |
- |
3,411,845.72 |
- |
|
Total Expenses |
189,687,802.27 |
197,158,123.75 |
171,944,119.24 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
6,025,796.57 |
4,617,806.86 |
6,935,631.12 |
|
Financial Cost |
[2,233,780.57] |
[2,948,198.93] |
[3,940,327.18] |
|
Profit before Income Tax |
3,792,016.00 |
1,669,607.93 |
2,995,303.94 |
|
Income Tax |
[1,075,223.43] |
[701,541.02] |
[1,002,442.01] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,716,792.57 |
968,066.91 |
1,992,861.93 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.31 |
1.28 |
1.36 |
|
QUICK RATIO |
TIMES |
0.86 |
0.82 |
0.68 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
135.17 |
112.31 |
129.10 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.31 |
1.39 |
1.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
99.32 |
100.13 |
122.03 |
|
INVENTORY TURNOVER |
TIMES |
3.67 |
3.65 |
2.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
179.25 |
155.83 |
116.20 |
|
RECEIVABLES TURNOVER |
TIMES |
2.04 |
2.34 |
3.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
80.36 |
42.97 |
26.31 |
|
CASH CONVERSION CYCLE |
DAYS |
198.22 |
213.00 |
211.92 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.43 |
93.62 |
94.45 |
|
SELLING & ADMINISTRATION |
% |
3.54 |
2.64 |
2.96 |
|
INTEREST |
% |
1.17 |
1.46 |
2.23 |
|
GROSS PROFIT MARGIN |
% |
6.69 |
6.63 |
6.89 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.14 |
2.29 |
3.93 |
|
NET PROFIT MARGIN |
% |
1.42 |
0.48 |
1.13 |
|
RETURN ON EQUITY |
% |
7.78 |
3.00 |
6.38 |
|
RETURN ON ASSET |
% |
1.86 |
0.67 |
1.75 |
|
EARNING PER SHARE |
BAHT |
18.11 |
6.45 |
13.29 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.78 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.18 |
3.48 |
2.64 |
|
TIME INTEREST EARNED |
TIMES |
2.70 |
1.57 |
1.76 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(4.78) |
14.03 |
|
|
OPERATING PROFIT |
% |
30.49 |
(33.42) |
|
|
NET PROFIT |
% |
180.64 |
(51.42) |
|
|
FIXED ASSETS |
% |
(20.89) |
31.07 |
|
|
TOTAL ASSETS |
% |
1.09 |
26.92 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -4.78%. Turnover has decreased from THB
201,276,329.47 in 2011 to THB 191,649,458.58 in 2012. While net profit has
increased from THB 968,066.91 in 2011 to THB 2,716,792.57 in 2012. And total
assets has increased from THB 144,292,306.40 in 2011 to THB 145,858,520.95 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.69 |
Impressive |
Industrial
Average |
1.88 |
|
Net Profit Margin |
1.42 |
Impressive |
Industrial
Average |
0.04 |
|
Return on Assets |
1.86 |
Impressive |
Industrial
Average |
0.43 |
|
Return on Equity |
7.78 |
Impressive |
Industrial
Average |
1.93 |
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 6.69%. 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 1.42%,
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 1.86%, 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 7.78%, 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 |
1.31 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.86 |
|
|
|
|
Cash Conversion Cycle |
198.22 |
|
|
|
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 1.31 times in 2012, increased from 1.28 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 0.86 times in 2012,
increased from 0.82 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 199 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Acceptable |
Industrial
Average |
0.76 |
|
Debt to Equity Ratio |
3.18 |
Acceptable |
Industrial
Average |
3.41 |
|
Times Interest Earned |
2.70 |
Impressive |
Industrial
Average |
0.28 |
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 2.7 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 0.76 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 |
135.17 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
1.31 |
Deteriorated |
Industrial
Average |
14.17 |
|
Inventory Conversion Period |
99.32 |
|
|
|
|
Inventory Turnover |
3.67 |
Deteriorated |
Industrial
Average |
43.91 |
|
Receivables Conversion Period |
179.25 |
|
|
|
|
Receivables Turnover |
2.04 |
Deteriorated |
Industrial
Average |
18.17 |
|
Payables Conversion Period |
80.36 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.04 and 2.34 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 decreased from 100 days at the
end of 2011 to 99 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.65 times in year 2011 to 3.67 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.31 times and 1.39
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 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.61.93 |
|
|
1 |
Rs.100.44 |
|
Euro |
1 |
Rs.84.24 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.