MIRA INFORM REPORT
|
Report Date : |
13.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
NATASHA CREATIONS CO., LTD. |
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Registered Office : |
14th Floor, Bangkok Gem & Jewellery Tower, 322/27, 322/29 Surawong Road, Siphya, Bangrak, Bangkok 10500, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.03.1998 |
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Com. Reg. No.: |
0105541020432 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and
exporting various kinds
of jewelry products, e.g. diamond
jewelry with 14k
and 18k gold, silver and
platinum jewelry |
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No. of Employees : |
180 |
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 |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries,
|
Source
: CIA |
Company name
NATASHA CREATIONS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR, BANGKOK
GEM & JEWELLERY TOWER,
322/27, 322/29
SURAWONG ROAD,
SIPHYA, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2234-1202,
2233-0054, 2233-4288
FAX :
[66] 2237-5216
E-MAIL
ADDRESS : info@natasha-creations.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541020432 [Former : 283/2541]
TAX
ID NO. : 3011921227
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT.
70,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAJEEV KUMAR
KAPADIA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 180
LINES
OF BUSINESS : DIAMOND AND
GOLD JEWELRY PRODUCTS
MANUFACTURER AND
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject
was established on
March 30, 1998
as a private
limited company under
the name style NATASHA CREATIONS
CO., LTD., by Thai and foreign
groups, to manufacture diamond and
gold jewelry to
overseas markets. It
currently employs approximately 180 staff.
The
subject’s registered address
is 14th Floor, Bangkok
Gem & Jewellery
Tower,
322/27,
322/29 Surawong Rd., Siphya, Bangrak, Bangkok
10500, and this is
the subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Isira Aoonharasmee |
|
Thai |
51 |
|
Mr. Rajeev Kumar Kapadia |
|
Indian |
52 |
|
Mrs. Shilpa Rajeev Kapadia |
|
Indian |
- |
|
Mr. Salil Prasan Manilal |
|
American |
52 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rajeev Kumar
Kapadia is the
Managing Director.
He is Indian
nationality with the
age of 52
years old.
Mr. Anan Prakobtham is
the Factory Manager.
He is Thai
nationality.
Ms. Isira Aoonharasmee is the
General Manager.
She is Thai
nationality with the
age of 51
years old.
BUSINESS OPERATIONS
The subject is engaged in manufacturing
and exporting various
kinds of jewelry
products, e.g. diamond jewelry
with 14k and
18k gold, silver and
platinum jewelry. The
products include ring,
earring, pendent, bracelet, necklace and
etc., under its own brand name
“NATASHA-CREATION”, as well
as customer’s brands.
PURCHASE
Raw materials such as diamonds, gold, gemstones and accessories are
purchased from suppliers both
local and overseas,
mainly in India,
Hong Kong, Japan
and South Africa.
MAJOR SUPPLIER
Gem
Star Company Private
Limited :
India
EXPORT
100% of
the products is
exported to United
Kingdom, Switzerland, United
States of America, Hong Kong,
India, Korea, Japan,
Singapore, Australia, Republic
of China, Vietnam,
Taiwan, Russia, Middle
East and European
countries.
RELATED/AFFILIATED COMPANY
Sagar Gems &
Jewellery Mfg. Co.,
Ltd.
Business Type :
Manufacturer 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
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
L/C at sight
or T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
180 office staff
and factory workers.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory and
warehouse are located
at 38 Gemopolis Industrial
Estate, 4th-5th
Floor, IGS Building,
Sukhapiban 2 Rd., Dokmai,
Praves, Bangkok 10260.
Tel
: [66] 2727-0600-4,
Fax : [66]
2727-0605.
COMMENT
The
subject disclosed outstanding
sales in 2013. There
was a demand
of the products
from export market
which contributes to
the subject’s strong
sales income. However,
there is also
slow demand of
jewelry product from some
European countries because
economy growth is
still fragile with
a risk of
high volatility.
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 following:
Bht.
10,000,000 on August
5, 1998
Bht.
25,000,000 on August
17, 1999
Bht.
35,000,000 on July
16, 2001
Bht.
50,000,000 on May
8, 2002
Bht.
60,000,000 on December
25, 2007
Bht.
80,000,000 on March
2, 2012
The
latest registered capital
was increased to
Bht. 80,000,000 divided into
800,000 shares of
Bht. 100 each,
with the current
capital paid-up at
Bht. 70,000,000 or
600,000 shares of
Bht. 100 each
and 200,000 shares
of Bht. 50
each.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2014]
at Bht. 70,000,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Isira Aoonharasmee Nationality: Thai Address : 208
Moo 5, Banpong, Prao,
Chiangmai |
168,000 |
21.00 |
|
Mr. Rajeev Kumar Kapadia Nationality: Indian Address : 322/27
Surawong Road, Siphya,
Bangrak, Bangkok |
160,000 |
20.00 |
|
Akash Finance Holding
Ltd. Nationality: BVI Address : P.O. Box
3321 Tortola,
British Virgin Islands |
132,000 |
16.50 |
|
Ms. Busara Milawan Nationality: Thai Address : 49
Trok Wate, Silom
Road, Silom,
Bangrak, Bangkok |
120,000 |
15.00 |
|
Ms. Sudsiri Trongkamoltham Nationality: Thai Address : 36/25-26
Trok Nokkhet, Chongnonsi,
Yannawa, Bangkok |
120,000 |
15.00 |
|
Mrs. Shilpa Rajeev Kapadia Nationality: Indian Address : 322/27
Surawong Road, Siphya,
Bangrak,
Bangkok |
100,000 |
12.50 |
Total Shareholders : 6
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
408,000 |
51.00 |
|
Foreign |
3 |
392,000 |
49.00 |
|
Total |
6 |
800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Walit Panpoonsap No.
4018
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
641,219.56 |
2,906,031.87 |
636,616.22 |
|
Trade Accounts Receivable |
523,561,364.46 |
424,253,068.09 |
357,981,717.41 |
|
Other Receivable |
1,452,380.76 |
1,315,629.18 |
1,867,883.57 |
|
Total Trade Accounts
Receivable |
525,013,745.22 |
425,568,697.27 |
359,849,600.98 |
|
Inventories |
374,217,146.97 |
391,766,791.67 |
358,405,200.25 |
|
Cash at Bank pledged
as a Collateral |
126,414,809.31 |
126,432,087.89 |
88,669,400.94 |
|
Refundable Value Added
Tax |
1,005,580.58 |
595,059.15 |
527,916.30 |
|
Other Current Assets
|
78,170.20 |
142,597.09 |
183,833.05 |
|
|
|
|
|
|
Total Current Assets
|
1,027,370,671.84 |
947,411,264.94 |
808,272,567.74 |
|
Fixed Assets |
41,370,832.59 |
44,345,014.03 |
39,007,042.76 |
|
Other Assets |
1,275,383.48 |
1,090,474.81 |
1,117,921.26 |
|
Total Assets |
1,070,016,887.91 |
992,846,753.78 |
848,397,531.76 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
516,199,012.73 |
489,072,634.40 |
357,341,848.23 |
|
Trade Accounts Payable |
255,742,236.76 |
262,022,463.22 |
296,755,156.58 |
|
Other Payable |
7,673,131.73 |
2,086,845.44 |
1,310,435.83 |
|
Total Trade Accounts
Payable |
263,415,368.49 |
264,109,308.66 |
298,065,592.41 |
|
Advance Income from
Customer |
18,218,096.90 |
15,389,981.11 |
- |
|
Current Portion of
Hire-purchase Contract Liabilities |
485,068.00 |
1,750,329.00 |
1,310,484.00 |
|
Accrued Commission |
32,436,255.34 |
26,426,658.00 |
25,218,482.57 |
|
Accrued Income Tax |
6,305,886.40 |
3,697,052.29 |
7,366,389.46 |
|
Other Current Liabilities |
1,527,018.64 |
1,824,204.41 |
2,361,797.94 |
|
|
|
|
|
|
Total Current Liabilities |
838,586,706.50 |
802,270,167.87 |
691,664,594.61 |
|
Hire-purchase Contract Liabilities, net |
189,620.00 |
674,688.00 |
1,852,477.00 |
|
Other Liabilities - Employee
Benefits |
2,091,951.68 |
1,518,069.53 |
- |
|
Total Liabilities |
840,868,278.18 |
804,462,925.40 |
693,517,071.61 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
800,000 in
2013 & 2012; 600,000 Shares in
2011 |
80,000,000.00 |
80,000,000.00 |
60,000,000.00 |
|
|
|
|
|
|
Capital Paid |
70,000,000.00 |
70,000,000.00 |
60,000,000.00 |
|
Retained Earning Appropriated
for Statutory Reserve |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Unappropriated |
153,148,609.73 |
112,383,828.38 |
88,880,460.15 |
|
Total Shareholders' Equity |
229,148,609.73 |
188,383,828.38 |
154,880,460.15 |
|
Total Liabilities &
Shareholders' Equity |
1,070,016,887.91 |
992,846,753.78 |
848,397,531.76 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,381,249,011.04 |
1,332,885,344.41 |
1,265,624,441.52 |
|
Gain on Exchange
Rate |
2,273,412.38 |
7,028,470.41 |
4,448,109.03 |
|
Other Income |
3,650,029.20 |
3,743,239.79 |
2,773,311.53 |
|
Total Revenues |
1,387,172,452.62 |
1,343,657,054.61 |
1,272,845,862.08 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,246,845,578.59 |
1,232,705,242.18 |
1,172,426,766.59 |
|
Selling Expenses |
45,087,126.71 |
35,472,023.03 |
34,955,412.50 |
|
Administrative Expenses |
24,496,866.54 |
26,716,462.82 |
19,438,135.92 |
|
Total Expenses |
1,316,429,571.84 |
1,294,893,728.03 |
1,226,820,315.01 |
|
|
|
|
|
|
Profit before Financial Costs & Income Tax |
70,742,880.78 |
48,763,326.58 |
46,025,547.07 |
|
Financial Costs |
[19,786,090.06] |
[17,541,056.69] |
[13,479,814.17] |
|
Income Tax |
[10,192,009.37] |
[7,718,901.66] |
[9,701,915.68] |
|
|
|
|
|
|
Net Profit / [Loss] |
40,764,781.35 |
23,503,368.23 |
22,843,817.22 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.23 |
1.18 |
1.17 |
|
QUICK RATIO |
TIMES |
0.63 |
0.53 |
0.52 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
33.39 |
30.06 |
32.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.29 |
1.34 |
1.49 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
109.55 |
116.00 |
111.58 |
|
INVENTORY TURNOVER |
TIMES |
3.33 |
3.15 |
3.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
138.74 |
116.54 |
103.78 |
|
RECEIVABLES TURNOVER |
TIMES |
2.63 |
3.13 |
3.52 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
77.11 |
78.20 |
92.79 |
|
CASH CONVERSION CYCLE |
DAYS |
171.17 |
154.34 |
122.56 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.27 |
92.48 |
92.64 |
|
SELLING & ADMINISTRATION |
% |
5.04 |
4.67 |
4.30 |
|
INTEREST |
% |
1.43 |
1.32 |
1.07 |
|
GROSS PROFIT MARGIN |
% |
10.16 |
8.32 |
7.93 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.12 |
3.66 |
3.64 |
|
NET PROFIT MARGIN |
% |
2.95 |
1.76 |
1.80 |
|
RETURN ON EQUITY |
% |
17.79 |
12.48 |
14.75 |
|
RETURN ON ASSET |
% |
3.81 |
2.37 |
2.69 |
|
EARNING PER SHARE |
BAHT |
58.24 |
33.58 |
38.07 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.81 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.67 |
4.27 |
4.48 |
|
TIME INTEREST EARNED |
TIMES |
3.58 |
2.78 |
3.41 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.63 |
5.31 |
|
|
OPERATING PROFIT |
% |
45.07 |
5.95 |
|
|
NET PROFIT |
% |
73.44 |
2.89 |
|
|
FIXED ASSETS |
% |
(6.71) |
13.68 |
|
|
TOTAL ASSETS |
% |
7.77 |
17.03 |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 3.63%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.16 |
Acceptable |
Industrial
Average |
18.48 |
|
Net Profit Margin |
2.95 |
Deteriorated |
Industrial
Average |
16.43 |
|
Return on Assets |
3.81 |
Deteriorated |
Industrial
Average |
24.52 |
|
Return on Equity |
17.79 |
Deteriorated |
Industrial
Average |
40.35 |
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 10.16%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
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 2.95%.
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 3.81%.
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 17.79%.
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 |
1.23 |
Deteriorated |
Industrial
Average |
3.14 |
|
Quick Ratio |
0.63 |
|
|
|
|
Cash Conversion Cycle |
171.17 |
|
|
|
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 1.23 times in 2013, increased from 1.18 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 0.63 times in 2013,
increased from 0.53 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 172 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial
Average |
0.32 |
|
Debt to Equity Ratio |
3.67 |
Risky |
Industrial
Average |
0.47 |
|
Times Interest Earned |
3.58 |
Impressive |
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 3.58 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 0.79 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
33.39 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.29 |
Satisfactory |
Industrial
Average |
1.49 |
|
Inventory Conversion Period |
109.55 |
|
|
|
|
Inventory Turnover |
3.33 |
Satisfactory |
Industrial
Average |
3.43 |
|
Receivables Conversion Period |
138.74 |
|
|
|
|
Receivables Turnover |
2.63 |
Impressive |
Industrial
Average |
2.25 |
|
Payables Conversion Period |
77.11 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.63 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 116 days at the
end of 2012 to 110 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.15 times in year 2012 to 3.33 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.29 times and 1.34
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.62.44 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.