MIRA INFORM REPORT

 

 

Report Date :

05.12.2014

 

IDENTIFICATION DETAILS

 

Name :

FINE DIAMOND PTE LTD

 

 

Registered Office :

101, Cecil Street, 25-11, Tong Eng Building, 069533

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.06.1981

 

 

Com. Reg. No.:

198102429-R

 

 

Legal Form :

Exempt Private Company

 

 

Line of Business :

Engaged in trading of jewellery

 

(We tried to confirm / obtain the detailed activity but the same is not available from any sources.)

 

 

No of Employees :

06 [2014]

 

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 :

Slow but Correct

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)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Singapore ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

198102429-R

COMPANY NAME

:

FINE DIAMOND PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/06/1981

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

BUSINESS ADDRESS

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

TEL.NO.

:

65-62257444

FAX.NO.

:

65-62256667

CONTACT PERSON

:

BAKUL RAMNIKLAL PARIKH ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF JEWELLERY

ISSUED AND PAID UP CAPITAL

:

2,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 2,500,000.00 

SALES

:

SGD 51,075,396 [2011]

NET WORTH

:

SGD 3,689,262 [2011]

STAFF STRENGTH

:

6 [2014]

BANKER (S)

:

STANDARD CHARTERED BANK

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH



HISTORY / BACKGROUND

 

The Subject is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

The Subject is principally engaged in the (as a / as an) trading of jewellery.

 

Share Capital History

Date

Issue & Paid Up Capital

03/12/2014

SGD 2,500,000.00

 

The major shareholder(s) of the Subject are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. BAKUL RAMNIKLAL PARIKH +

48, LAKESHORE VIEW, 098154, SINGAPORE.

S2223347E

2,460,000.00

98.40

SWATI BAKUL PARIKH +

48, LAKESHORE VIEW, 098154, SINGAPORE.

S2553487E

40,000.00

1.60

---------------

------

2,500,000.00

100.00

============

=====

+ Also Director

 

DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

KARAN PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S8870026J

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/01/2013

 

DIRECTOR 2

 

Name Of Subject

:

SWATI BAKUL PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S2553487E

Nationality

:

SINGAPOREAN

Date of Appointment

:

17/03/1995

 

DIRECTOR 3

 

Name Of Subject

:

MR. BAKUL RAMNIKLAL PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S2223347E

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/06/1981


MANAGEMENT

 

 

 

1)

Name of Subject

:

BAKUL RAMNIKLAL PARIKH

Position

:

MANAGING DIRECTOR

 

 

AUDITOR

 

Auditor

:

MGI MENNON & ASSOCIATES

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

THIYAGARAJAN MURUGESAN

IC / PP No

:

S7064651Z

Address

:

644, ANG MO KIO AVENUE, 4, 02-850, 560644, SINGAPORE.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

STANDARD CHARTERED BANK

 

 

ENCUMBRANCE (S)

 


Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200700476

17/01/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200700477

17/01/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702901

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702902

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702903

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702904

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702906

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C200702907

17/04/2007

N/A

STANDARD CHARTERED BANK

-

Unsatisfied

C201316350

09/12/2013

N/A

DBS BANK LTD.

-

Unsatisfied

 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.


PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES



CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CASH
CHEQUES
TELEGRAPHIC TRANSFER (TT)




OPERATIONS

 

Goods Traded

:

JEWELLERY

 

Total Number of Employees:

YEAR

2014

2013

GROUP

N/A

N/A

COMPANY

6

6

 

Branch

:

NO

 

Other Information:

The Subject is principally engaged in the (as a / as an) trading of jewellery. 
The Subject refused to disclose any information on its business operations. 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62257444

Match

:

N/A

Address Provided by Client

:

101, CECIL STREET, 25-11, TONG ENG BUILDING,069533 SINGAPORE

Current Address

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

Match

:

YES

 

Other Investigations

we contacted one of the staff from the Subject and she provided some information.

 

FINANCIAL ANALYSIS

 

 

The Subject's latest financial accounts are up to 2011 which is out dated in our opinion. Therefore, our comment on the Subject financial performance is restricted thereto.

Overall financial condition of the Subject : N/A

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

Services

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

* Based on Index of Industrial Production (2011 = 100)

(Source : Department of Statistics)



INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

The wholesale and retail trade sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.

The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.

In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.

For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 1981, the Subject is an Exempt Private company, focusing on trading of jewellery. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. A paid up capital of SGD 2,500,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a small company, the Subject's business operation is supported by 6 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. 

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 


PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

FINE DIAMOND PTE LTD

 

Financial Year End

2011-03-31

2010-03-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

TURNOVER

51,075,396

46,287,135

Other Income

663,321

1,579,612

----------------

----------------

Total Turnover

51,738,717

47,866,747

Costs of Goods Sold

(49,762,986)

(45,007,920)

----------------

----------------

Gross Profit

1,975,731

2,858,827

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

(99,249)

1,203,689

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

(99,249)

1,203,689

Taxation

(219,623)

(36,000)

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

(318,872)

1,167,689

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

1,508,134

340,445

----------------

----------------

As restated

1,508,134

340,445

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

1,189,262

1,508,134

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,189,262

1,508,134

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

5,775

4,902

Term loan / Borrowing

58,433

44,288

Others

85,562

88,350

----------------

----------------

149,770

137,540

=============

=============

 

 

 

BALANCE SHEET

 

 

FINE DIAMOND PTE LTD

 

ASSETS EMPLOYED:

FIXED ASSETS

266,113

276,904

Investment properties

5,731,898

5,861,494

Investments

5,000

5,000

Others

10,461

5,427

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

5,747,359

5,871,921

----------------

----------------

TOTAL LONG TERM ASSETS

6,013,472

6,148,825

Stocks

7,782,506

11,106,522

Trade debtors

35,313,624

40,399,195

Other debtors, deposits & prepayments

95,413

38,423

Cash & bank balances

932,814

1,673,855

----------------

----------------

TOTAL CURRENT ASSETS

44,124,357

53,217,995

----------------

----------------

TOTAL ASSET

50,137,829

59,366,820

=============

=============

CURRENT LIABILITIES

Trade creditors

25,999,060

30,995,200

Other creditors & accruals

1,517,465

1,611,213

Short term borrowings/Term loans

2,000,000

4,400,000

Provision for taxation

214,362

43,766

Other liabilities

136,559

132,528

----------------

----------------

TOTAL CURRENT LIABILITIES

29,867,446

37,182,707

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

14,256,911

16,035,288

----------------

----------------

TOTAL NET ASSETS

20,270,383

22,184,113

=============

=============

SHARE CAPITAL

Ordinary share capital

2,500,000

2,500,000

----------------

----------------

TOTAL SHARE CAPITAL

2,500,000

2,500,000

Retained profit/(loss) carried forward

1,189,262

1,508,134

----------------

----------------

TOTAL RESERVES

1,189,262

1,508,134

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

3,689,262

4,008,134

Others

16,581,121

18,175,979

----------------

----------------

TOTAL LONG TERM LIABILITIES

16,581,121

18,175,979

----------------

----------------

20,270,383

22,184,113

=============

=============

 

 

 

FINANCIAL RATIO

 

 

FINE DIAMOND PTE LTD

 

TYPES OF FUNDS

Cash

932,814

1,673,855

Net Liquid Funds

932,814

1,673,855

Net Liquid Assets

6,474,405

4,928,766

Net Current Assets/(Liabilities)

14,256,911

16,035,288

Net Tangible Assets

20,270,383

22,184,113

Net Monetary Assets

(10,106,716)

(13,247,213)

BALANCE SHEET ITEMS

Total Borrowings

2,000,000

4,400,000

Total Liabilities

46,448,567

55,358,686

Total Assets

50,137,829

59,366,820

Net Assets

20,270,383

22,184,113

Net Assets Backing

3,689,262

4,008,134

Shareholders' Funds

3,689,262

4,008,134

Total Share Capital

2,500,000

2,500,000

Total Reserves

1,189,262

1,508,134

LIQUIDITY (Times)

Cash Ratio

0.03

0.05

Liquid Ratio

1.22

1.13

Current Ratio

1.48

1.43

WORKING CAPITAL CONTROL (Days)

Stock Ratio

56

88

Debtors Ratio

252

319

Creditors Ratio

191

251

SOLVENCY RATIOS (Times)

Gearing Ratio

0.54

1.10

Liabilities Ratio

12.59

13.81

Times Interest Earned Ratio

0.34

9.75

Assets Backing Ratio

8.11

8.87

PERFORMANCE RATIO (%)

Operating Profit Margin

(0.19)

2.60

Net Profit Margin

(0.62)

2.52

Return On Net Assets

0.25

6.05

Return On Capital Employed

0.25

6.05

Return On Shareholders' Funds/Equity

(8.64)

29.13

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 

 

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.61.88

UK Pound

1

Rs.97.02

Euro

1

Rs.76.13

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

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

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NB

                                       New Business

 

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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%)

 

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