MIRA INFORM REPORT
|
Report Date : |
05.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDO DIAMOND [BELGIUM] CO., LTD. |
|
|
|
|
Registered Office : |
25th
Floor, Unit No. 1249/180 C2, Gems Tower
Building, Haroenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.11.2013 |
|
|
|
|
Date of Incorporation : |
20.12.1991 |
|
|
|
|
Com. Reg. No.: |
0105534121458 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor & Exporter of Diamonds and Jewelry. |
|
|
|
|
No. of Employees : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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
INDO DIAMOND
[BELGIUM] CO.,LTD.
SUMMARY
BUSINESS ADDRESS : 25th FLOOR,
UNIT NO. 1249/180 C2,
GEMS TOWER BUILDING,
CHAROENKRUNG ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2237-2019,
2237-5217-8, 081 918-9355
FAX :
[66] 2237-5219
E-MAIL ADDRESS : indo_diamond@yahoo.uk
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1991
REGISTRATION NO. : 0105534121458 [Former : 12143/2534]
TAX ID NO. : 3011108253
CAPITAL REGISTERED
: BHT.
11,000,000
CAPITAL PAID-UP
: BHT.
11,000,000
SHAREHOLDER’S : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR
CLOSING DATE : NOVEMBER 30
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MAHESH KUMAR AGARWAL,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 4
LINES OF
BUSINESS : DIAMONDS AND
JEWELRY
IMPORTER, DISTRIBUTOR
& 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 20, 1991
as a private
limited company under the
registered name CRYSTAL
DIAMONDS CO., LTD., by
Thai and Indian groups, to be engaged in
importing, distributing and
exporting of diamonds and diamond
jewelry.
On
December 16, 1994, the subject’s name
was changed to INDO DIAMOND [BELGIUM] CO., LTD.
It currently employs
4 staff.
The subject’s registered address was
initially located at 17th Flr., Wanglee Building, 297 Surawong
Rd., Suriyawong, Bangrak,
Bangkok 10500.
On
October 12, 2006, it
was relocated to 25th Flr.,
Unit No. 1249/180
C2, Gems Tower Bldg.,
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr.
Mahesh Kumar Agarwal |
|
Indian |
55 |
|
Mr.
Ankit Agarwal |
|
Indian |
- |
AUTHORIZED PERSON
One
of the above
director signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Mahesh
Kumar Agarwal 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
re-exporting of diamonds,
specialized in round
brilliant cut diamonds
with sizes ranging
from 0.005 carat
to 0.50 carat
and 0.30 carat
to 1.50 carat, as
well as diamond
jewelry mainly diamond
rings, bracelet, necklace
and pendants.
The
subject is also exporter
of local diamond
jewelry products.
PURCHASE
The products
are purchased from both
local and overseas
suppliers in India,
Hong Kong
and Belgium.
SALES [LOCAL]
80% of
the product is
sold locally to dealers
and manufacturers.
EXPORT
20% of
the products is
exported and re-exported
to Hong Kong, Republic
of China, India, U.S.A., and Japan.
RELATED
AND AFFILIATED COMPANY
Thai Gem
Center Co., Ltd.
Business
Type : Importer
and distributor of
gemstones
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
to the past
two years.
CREDIT
Sales are
by cash or
on the credits
term of 30-60
days.
Local bills
are paid by
cash or on
the credits term
of 30-60 days.
Imports are
by L/C at
sight or T/T.
Exports are
against T/T.
BANKING
Standard Chartered
Bank [Thai] Public Co.,
Ltd.
[Head
Office : 90 North
Sathorn Rd., Bangrak,
Bangkok 10500]
EMPLOYMENT
The subject employs
4 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
Since the
year 2013, growth
of domestic consumption
of jewelry products has been
slowing down compared
to the previous
year’s level. Thai
economy is expected
to decline under
the burden of
rising household debt.
Consumers are likely
to cut spending
especially for non-essential
items.
The subject
reported slow sales
in 2013, while
business performance has slowly
grown since the
beginning of 2014.
FINANCIAL
INFORMATION
The capital
was initially registered
at Bht. 2,000,000
divided into 20,000 shares
of Bht. 100 each.
The capital
was increased later
as follows:
Bht. 5,000,000
on November 15,
1996
Bht. 11,000,000 on
December 4, 2000
The latest
registered capital was
increased to Bht. 11,000,000
divided into 110,000 shares
of Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE:
[as at July
23, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Mahesh
Kumar Agarwal Nationality: Indian Address
: 25th Flr.,
Unit No. 1249/180
C2, Gems Tower Bldg.,
Charoenkrung Rd., Suriyawongse, Bangrak,
Bangkok |
51,700 |
47.00 |
|
Mr. Somjit Saritain Nationality: Thai Address
: 28 Krungthep-Kreetha Road,
Huamark, Bangkapi, Bangkok |
9,900 |
9.00 |
|
Mr. Shanwal Karnpaijit Nationality: Thai Address
: 3678/7 Rama
4 Road, Klongton, Klongtoey, Bangkok |
9,900 |
9.00 |
|
Ms. Sunanta
Kasurong Nationality: Thai Address
: 136 Krungthep-Kreetha Road,
Huamark, Bangkapi, Bangkok |
9,900 |
9.00 |
|
Mr. Narong Kongthon Nationality: Thai Address
: 134 Sukhumvit
Road, Klongtonnua, Wattana, Bangkok |
8,800 |
8.00 |
|
|
|
|
|
Mrs.
Sumalee Langsanti Nationality: Thai Address
: 5/78 Moo
1, Kokfaed, Nongjok, Bangkok |
8,800 |
8.00 |
|
Mr. Danupol
Boonmalert Nationality: Thai Address
: 76 Krungthep-Kreetha Road,
Huamark, Bangkapi, Bangkok |
8,800 |
8.00 |
|
Mr. Ankit Agarwal Nationality: Indian Address
: 25th Flr.,
Unit No. 1249/180
C2, Gems Tower
Bldg., Charoenkrung Rd.,
Suriyawongse, Bangrak,
Bangkok |
2,200 |
2.00 |
Total Shareholders
: 8
Share Structure
[as at July
23, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
56,100 |
51.00 |
|
Foreign
- Indian |
2 |
53,900 |
49.00 |
|
Total |
8 |
110,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.:
Mr. Pibul
Patarodom No. 2206
BALANCE
SHEET [BAHT]
The
latest financial figures published
as at November
30, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash
and Cash Equivalents |
1,729,912.10 |
1,136,706.27 |
3,086,830.63 |
|
Short-term Investment |
1,644,594.65 |
1,608,759.53 |
1,578,977.59 |
|
Trade
Accounts & Other
Receivable |
16,663,113.50 |
20,696,393.77 |
14,543,030.06 |
|
Inventories |
11,024,988.91 |
14,245,284.79 |
11,287,070.21 |
|
Other
Current Assets |
- |
2,005.08 |
- |
|
|
|
|
|
|
Total Current
Assets |
31,062,609.16 |
37,689,149.44 |
30,495,908.49 |
|
|
|
|
|
|
Fixed Assets |
1,836.30 |
3,652.30 |
8,524.68 |
|
Other
Non - current Assets |
60,055.00 |
60,055.00 |
60,055.00 |
|
Total Assets
|
31,124,500.46 |
37,752,856.74 |
30,564,488.17 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade
Accounts & Other Payable
|
13,088,838.59 |
19,596,387.93 |
12,834,149.35 |
|
Accrued Income Tax |
51,911.65 |
70,150.73 |
95,370.24 |
|
Other
Current Liabilities |
19,750.64 |
7,202.02 |
26,536.90 |
|
|
|
|
|
|
Total Current
Liabilities |
13,160,500.88 |
19,673,740.68 |
12,956,056.49 |
|
Total Liabilities |
13,160,500.88 |
19,673,740.68 |
12,956,056.49 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par value
authorized, issued and
fully
paid share capital
110,000 shares |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning Unappropriated
[Deficit] |
6,963,999.58 |
7,079,116.06 |
6,608,431.68 |
|
Total Shareholders' Equity |
17,963,999.58 |
18,079,116.06 |
17,608,431.68 |
|
Total Liabilities & Shareholders' Equity |
31,124,500.46 |
37,752,856.74 |
30,564,488.17 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales
Income |
9,570,284.10 |
18,458,470.09 |
13,368,124.18 |
|
Export
Income |
5,355,569.78 |
6,682,705.23 |
5,127,249.16 |
|
Other
Income |
59,688.95 |
287,072.59 |
64,281.52 |
|
Total Revenues
|
14,985,542.83 |
25,428,247.91 |
18,559,654.86 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
13,217,765.38 |
22,245,023.55 |
16,992,267.36 |
|
Selling
Expenses |
439,177.02 |
925,878.42 |
337,785.61 |
|
Administrative Expenses |
1,357,272.69 |
1,635,510.83 |
1,659,119.29 |
|
Total Expenses |
15,014,215.09 |
24,806,412.80 |
18,989,172.26 |
|
Profit / [Loss] before
Income Tax |
[28,672.26] |
621,835.11 |
[129,517.40] |
|
Income
Tax |
[86,444.22] |
[151,150.73] |
[145,657.74] |
|
|
|
|
|
|
Net Profit / [Loss] |
[115,116.48] |
470,684.38 |
[275,175.14] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.36 |
1.92 |
2.35 |
|
QUICK RATIO |
TIMES |
1.52 |
1.19 |
1.48 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8,128.22 |
6,883.66 |
2,169.63 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.48 |
0.67 |
0.61 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
304.45 |
233.74 |
242.45 |
|
INVENTORY TURNOVER |
TIMES |
1.20 |
1.56 |
1.51 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
407.48 |
300.47 |
287.00 |
|
RECEIVABLES TURNOVER |
TIMES |
0.90 |
1.21 |
1.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
361.44 |
321.54 |
275.68 |
|
CASH CONVERSION CYCLE |
DAYS |
350.49 |
212.67 |
253.77 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.56 |
88.48 |
91.87 |
|
SELLING & ADMINISTRATION |
% |
12.04 |
10.19 |
10.80 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.84 |
12.66 |
8.47 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.19) |
2.47 |
(2.32) |
|
NET PROFIT MARGIN |
% |
(0.77) |
1.87 |
(1.49) |
|
RETURN ON EQUITY |
% |
(0.64) |
2.60 |
(1.56) |
|
RETURN ON ASSET |
% |
(0.37) |
1.25 |
(0.90) |
|
EARNING PER SHARE |
BAHT |
(1.05) |
4.28 |
(2.50) |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.42 |
0.52 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.73 |
1.09 |
0.74 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(40.63) |
35.93 |
|
|
OPERATING PROFIT |
% |
(104.61) |
(244.78) |
|
|
NET PROFIT |
% |
(124.46) |
271.05 |
|
|
FIXED ASSETS |
% |
(49.72) |
(57.16) |
|
|
TOTAL ASSETS |
% |
(17.56) |
23.52 |
|
ANNUAL
GROWTH: RISKY
An annual sales growth is -40.63%. Turnover has decreased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.84 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
(0.77) |
Deteriorated |
Industrial Average |
0.58 |
|
Return on Assets |
(0.37) |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
(0.64) |
Deteriorated |
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 11.84%. 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 -0.77%.
When compared with the industry average, the ratio of the company was lower.
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 -0.37%.
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 -0.64%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
: SATISFACTORY
LIQUIDITY
RATIO
|
Current Ratio |
2.36 |
Impressive |
Industrial Average |
1.60 |
|
Quick Ratio |
1.52 |
|
|
|
|
Cash Conversion Cycle |
350.49 |
|
|
|
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 2.36 times in 2013, increased from 1.92 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 higher,
indicated that company was an efficient operator in a dominant position within
its industry.
The Quick Ratio is a liquidity indicator
that further refines the current ratio by measuring the amount of the most
liquid current assets there are to cover current liabilities. The company's
figure is 1.52 times in 2013, increased from 1.19 times, although excluding
inventory so the company still have good short-term financial strength.
The Cash Conversion Cycle measures the
number of days a company's cash is tied up in the production and sales process
of its operations and the benefit from payment terms from its creditors. It
meant the company could survive when no cash inflow was received from sale for
351 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.42 |
Impressive |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
0.73 |
Impressive |
Industrial Average |
2.73 |
|
Times Interest Earned |
- |
|
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 lower the percentage means that the
company is using less leverage and has a stronger equity position.
Debt Ratio shows the proportion of a
company's assets which are financed through debt. The company's figure is 0.42
less than 0.5, most of the company's assets are financed through equity.
Trend
of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY
: ACCEPTABLE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
8,128.22 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.48 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
304.45 |
|
|
|
|
Inventory Turnover |
1.20 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
407.48 |
|
|
|
|
Receivables Turnover |
0.90 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
361.44 |
|
|
|
The company's Account Receivable Ratio is
calculated as 0.90 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 increased from 234 days
at the end of 2012 to 304 days at the end of 2013. This represents a negative
trend. And Inventory turnover has decreased from 1.56 times in year 2012 to 1.2
times in year 2013.
The company's Total Asset Turnover is
calculated as 0.48 times and 0.67 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.61.88 |
|
|
1 |
Rs.97.02 |
|
Euro |
1 |
Rs.76.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
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.