MIRA
INFORM REPORT
|
Report Date : |
04.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
KRISHNA IMPEX CO., LTD. |
|
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|
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Registered Office : |
24th Floor, Jewelry Trade Center, 919/308 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.02.2002 |
|
|
|
|
Com. Reg. No.: |
0105545016545 [Former:
10454500268] |
|
|
|
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Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing
and distributing various
kinds of diamonds
and gemstones, as
well as exporting
of diamonds, gemstones
and jewelry products.
|
|
|
|
|
No. of Employees : |
3 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. 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 in 2013 implemented a
nation-wide 300 baht ($10) per day minimum wage policy and deployed 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 recession severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In late 2011 Thailand's recovery was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. The government
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 following seven years. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
Source
: CIA |
Company Name
KRISHNA IMPEX CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 24th
FLOOR, JEWELRY TRADE
CENTER,
919/308 SILOM
ROAD, SILOM,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-4251
FAX : [66] 2635-8488
E-MAIL ADDRESS : krishnaimpex@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2002
REGISTRATION NO. : 0105545016545 [Former: 10454500268]
TAX ID NO. : 3030469533
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.83%
INDIAN :
48.17%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MAYUR MANJIBHAI DESAI,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : DIAMONDS AND
JEWELRY IMPORTER, DISTRIBUTOR
AND EXPORTER
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 February
11, 2002 as
a private limited
company under the name
style KRISHNA IMPEX
CO., LTD., by
Thai and Indian
groups, with the objective
to engage in
jewelry trading business.
It currently employs
3 staff.
The subject’s registered
address was initially
at 3rd Flr.,
T.D. Bldg., 14-16
Mahaesak Rd., Suriyawongse, Bangrak,
Bangkok 10500.
On March 18,
2008 the subject’s
registered address was
moved to 5th Flr., J.K.
Bldg., Room 502, 6 Mahesak
3 Rd., Suriyawongse, Bangrak,
Bangkok 10500.
On June 21,
2012, its registered
address was relocated
to 24th Floor,
Jewelry Trade Center,
919/308 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Mayur Manjibhai Desai |
|
Indian |
33 |
|
Mr. Bharatkumar Manjibhai Patel
Alias Desai |
|
Indian |
33 |
|
Mr. Hitesh Chhaganbhai Desai |
|
Indian |
30 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Mayur Manjibhai Desai
is the Managing
Director.
He is Indian
nationality with the
age of 33 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of diamonds
and gemstones, as
well as exporting
of diamonds, gemstones
and jewelry products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India.
SALES [LOCAL]
The products are
sold locally by wholesale to
manufacturers and end-users.
EXPORT
The products are
also exported to
Hong Kong, Republic of
China, Japan and
the countries in
Europe.
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 60-90 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
Imports are by
T/T on the
credit term of
90 days.
Exports are against
T/T on the
credit term of
90 days.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject currently
employs 3 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject reported moderate
sales in the
year 2013. However,
in 2014 market of jewelry products
is stagnant from
many unfavourable factors such
as economic slowdown, political
turmoil and decline
purchasing power, which
results to slow
business growth.
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
follows:
Bht. 4,000,000 on June 3,
2003
Bht. 6,000,000 on June 9,
2014
The latest registered
capital was increased
to Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at May
31, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Mayur Manjibhai Desai
Nationality: Indian Address : 24th Floor,
Jewelry Trade Center,
919/308 Silom Rd., Silom,
Bangrak, Bangkok |
12,000 |
20.00 |
|
Ms. Benjarin Srisukhon Nationality: Thai Address : 301/3
Moo 1, T. Thasala,
A. Thasala,
Nakornsrithammarat |
11,000 |
18.33 |
|
Mrs. Pobporn Nijsoonkij Nationality: Thai Address : 300/445
Moo 3, T. Bangrakpattana, A.
Bangbuathong, Nonthaburi |
10,000 |
16.67 |
|
Mr. Hitesh Chhaganbhai Desai Nationality: Indian Address : 24th Floor,
Jewelry Trade Center,
919/308 Silom Rd., Silom,
Bangrak, Bangkok |
8,900 |
14.83 |
|
Mr. Bharatkumar Manjibhai
Patel Alias Desai Nationality: Indian Address : 24th Floor,
Jewelry Trade Center,
919/308 Silom Rd.,
Silom, Bangrak, Bangkok |
8,000 |
13.33 |
|
Mr. Pornchai Samma-anant Nationality: Thai Address : 13/74
Rimklong-bang-or Rd., Bang-or,
Jomthong, Bangkok |
5,100 |
8.50 |
|
Ms. Chanpen Phala Nationality: Thai Address : 134/22
Soi Anamaingamcharoen 31, T. Thakam,
A. Bangkhunthien, Bangkok |
5,000 |
8.34 |
Total Shareholders : 7
Share Structure
[as at May
31, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
31,100 |
51.83 |
|
Foreign - Indian |
3 |
28,900 |
48.17 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Nikul Udomkijja No.
6725
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
549,276.45 |
22,676.03 |
30,526.93 |
|
Trade Accounts Receivable
|
4,961,699.87 |
6,973,542.92 |
10,803,357.48 |
|
Inventories |
19,541,426.32 |
24,115,279.75 |
17,376,787.08 |
|
Other Current Assets
|
131,734.60 |
148,404.01 |
108,406.37 |
|
|
|
|
|
|
Total Current Assets
|
25,184,137.24 |
31,259,902.71 |
28,319,077.86 |
|
|
|
|
|
|
Fixed Assets |
119,817.49 |
234,637.84 |
339,953.58 |
|
Total Assets |
25,303,954.73 |
31,494,540.55 |
28,659,031.44 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
4,866,551.79 |
4,622,101.52 |
2,629,535.64 |
|
Trade Accounts & Other
Payable |
10,358,337.36 |
16,534,000.96 |
16,084,746.37 |
|
Short-term Loan from Person or Related Company |
2,021,000.00 |
1,411,000.00 |
1,866,000.00 |
|
Accrued Income Tax |
100,762.19 |
120,626.79 |
27,229.25 |
|
|
|
|
|
|
Total Current Liabilities |
17,346,651.34 |
22,687,729.27 |
20,607,511.26 |
|
|
|
|
|
|
Total Liabilities |
17,346,651.34 |
22,687,729.27 |
20,607,511.26 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated [Deficit] |
3,957,303.39 |
4,806,811.28 |
4,051,520.19 |
|
Total Shareholders' Equity |
7,957,303.39 |
8,806,811.28 |
8,051,520.19 |
|
Total Liabilities &
Shareholders' Equity |
25,303,954.73 |
31,949,540.55 |
28,659,031.44 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Services |
44,544,816.46 |
43,605,785.94 |
46,140,545.57 |
|
Gain on Exchange Rate |
1,395,453.48 |
622,084.73 |
1,534,011.97 |
|
Other Income |
1.00 |
5.43 |
611.00 |
|
Total Revenues |
45,940,270.94 |
44,227,876.10 |
47,675,168.54 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
40,085,498.33 |
37,644,695.75 |
42,138,188.92 |
|
Selling Expenses |
318,369.31 |
352,468.84 |
543,465.79 |
|
Administrative Expenses |
5,418,026.82 |
4,558,907.47 |
3,858,847.23 |
|
Total Expenses |
45,821,894.46 |
42,556,072.06 |
46,540,501.94 |
|
|
|
|
|
|
Profit / Loss] before
Finance Costs & Income Tax |
118,376.48 |
1,671,804.04 |
1,134,666.60 |
|
Finance Costs |
[733,350.45] |
[665,546.17] |
[65,894.93] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
614,973.97 |
1,006,257.87 |
1,068,771.67 |
|
Income Tax |
[234,533.92] |
[250,966.77] |
[166,170.31] |
|
Net Profit / [Loss] |
849,507.89 |
755,291.10 |
902,601.37 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.45 |
1.38 |
1.37 |
|
QUICK RATIO |
TIMES |
0.32 |
0.31 |
0.53 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
371.77 |
185.84 |
135.73 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.76 |
1.38 |
1.61 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
177.94 |
233.82 |
150.52 |
|
INVENTORY TURNOVER |
TIMES |
2.05 |
1.56 |
2.42 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
40.66 |
58.37 |
85.46 |
|
RECEIVABLES TURNOVER |
TIMES |
8.98 |
6.25 |
4.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
94.32 |
160.31 |
139.33 |
|
CASH CONVERSION CYCLE |
DAYS |
124.27 |
131.88 |
96.65 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.99 |
86.33 |
91.33 |
|
SELLING & ADMINISTRATION |
% |
12.88 |
11.26 |
9.54 |
|
INTEREST |
% |
1.65 |
1.53 |
0.14 |
|
GROSS PROFIT MARGIN |
% |
13.14 |
15.10 |
12.00 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.27 |
3.83 |
2.46 |
|
NET PROFIT MARGIN |
% |
1.91 |
1.73 |
1.96 |
|
RETURN ON EQUITY |
% |
10.68 |
8.58 |
11.21 |
|
RETURN ON ASSET |
% |
3.36 |
2.40 |
3.15 |
|
EARNING PER SHARE |
BAHT |
21.24 |
18.88 |
22.57 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.72 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.18 |
2.58 |
2.56 |
|
TIME INTEREST EARNED |
TIMES |
0.16 |
2.51 |
17.22 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
2.15 |
(5.49) |
|
|
OPERATING PROFIT |
% |
(92.92) |
47.34 |
|
|
NET PROFIT |
% |
12.47 |
(16.32) |
|
|
FIXED ASSETS |
% |
(48.94) |
(30.98) |
|
|
TOTAL ASSETS |
% |
(19.66) |
9.89 |
|
ANNUAL GROWTH : ACCEPTABLE
An annual sales growth is 2.15%. Turnover has increased from THB
PROFITABILITY : IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.14 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
1.91 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
3.36 |
Satisfactory |
Industrial Average |
3.55 |
|
Return on Equity |
10.68 |
Satisfactory |
Industrial Average |
14.14 |
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 13.14%. 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 1.91%, 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. When compared with the industry
average, it was lower, the company's
figure is 3.36%.
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. When compared with the
industry average, it was lower, the company's figure is 10.68%.
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 |
1.45 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
0.32 |
|
|
|
|
Cash Conversion Cycle |
124.27 |
|
|
|
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 1.45 times in 2013, increased from 1.38 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 0.32 times in 2013,
increased from 0.31 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 125 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Impressive |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
2.18 |
Acceptable |
Industrial Average |
2.73 |
|
Times Interest Earned |
0.16 |
Risky |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt obligations.
Ratio is 0.17 lower than 1, so the company is not generating enough cash from
EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.69 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 Stable
ACTIVITY : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
371.77 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.76 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
177.94 |
|
|
|
|
Inventory Turnover |
2.05 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
40.66 |
|
|
|
|
Receivables Turnover |
8.98 |
Impressive |
Industrial Average |
8.23 |
|
Payables Conversion Period |
94.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.98 and
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 234 days at the
end of 2012 to 178 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 1.56 times in year 2012 to 2.05 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.76 times and 1.38
times in 2013 and 2012 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 Stable
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.61.87 |
|
|
1 |
Rs.96.83 |
|
Euro |
1 |
Rs.76.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.