MIRA
INFORM REPORT
|
Report Date : |
07.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
PANKIT IMPEX
CO., LTD. |
|
|
|
|
Registered Office : |
Room 14-A, 11th Floor,
Bangkok Gems &
Jewelry Building, 322/14
Surawong Road, Siphaya, Bangrak, Bangkok
10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
24.06.1997 |
|
|
|
|
Com. Reg. No.: |
0105540058975 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in importing, distributing and
exporting of diamonds,
precious stones and
jewelry products. |
|
|
|
|
No. of Employees : |
05 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic crisis severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013
|
Source
: CIA |
Company name and address
PANKIT IMPEX CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
14-A, 11th FLOOR,
BANGKOK GEMS
& JEWELRY BUILDING,
322/14 SURAWONG
ROAD,
SIPHAYA,
BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2631-7494-6,
089 680-5804
FAX : [66] 2631-7497
EMAIL-ADDRESS : pankitimpex@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1997
REGISTRATION
NO. : 0105540058975 [Former : 855/2540]
TAX
ID NO. : 3011856512
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIT RASIKLAL
GANDHI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY
IMPORTER, DISTRIBUTOR
AND 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 June
24, 1997 as
a private limited
company under the
name style PANKIT
IMPEX CO., LTD., by Indian
and Thai groups,
in order to import
and distribute diamonds,
precious stones and
jewelry to local
and oversea markets.
It currently employs
5 staff.
The
subject’s registered address
was initially located
at Room 201, 2nd Floor,
T.D., Building, 14-16 Mahesak
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
On
January 16, 2006,
the subject’s registered
address was relocated
to Room 14-A, 11th Flr., Bangkok
Gems & Jewelry
Bldg., 322/14 Surawong
Rd., Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amit Rasiklal
Gandhi |
|
Indian |
40 |
|
Mr. Nirav Rasiklal
Gandhi |
|
Indian |
38 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amit Rasiklal Gandhi
is the Managing
Director.
He is Indian
nationality with the
age of 40
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and exporting
of diamonds, precious
stones and jewelry
products.
PURCHASE
The products are
purchased from suppliers
and agents both
domestic and overseas
in India, Belgium,
South Africa and
Pakistan.
MAJOR SUPPLIERS
Kohinoor International Ltd. : India
Silver Shine Co.,
Ltd. : India
M/S B. Vijay
Kumar & Co. : India
M/S Classic Diamonds
Ltd. : India
SALES [LOCAL]
80% of the
products is sold
locally to wholesalers.
EXPORT
20% of the
products is exported
to United Kingdom,
France, India, Spain,
Hong Kong, Republic
of China, Korea,
Japan and the
country in Middle
East.
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 on
the credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold and purchased
both by cash and
credit with the
maximum credit given at 30-60
days. The subject
is found to
have late payment
from some customers, but they
can negotiate.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
5 staff. [office
and sales staff]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial
area.
COMMENT
Overall
jewelry industry in
domestic market was
likely grown slow in the previous year,
as well as its current
business remains slow
resulting by political
turmoil and shrinking
of consumers’ spending,
while export market
remains tumble.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 6,000,000 on
June 28, 2005
Bht. 8,000,000 on August 28, 2007
Bht. 12,000,000 on
December 29, 2009
The latest registered
capital was increased
to Bht. 12,000,000 divided into 120,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal
Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yananwa, Bangkok |
40,000 |
33.33 |
|
Ms. Alisa Leesee Nationality: Thai Address : 56
Moo 6, T. Dongtakob, A. Tapanhin, Pijit |
20,000 |
16.67 |
|
Ms. Saowaluck Saoluek Nationality: Thai Address : 158
Moo 1, T. Phakpang, A. Phukeaw,
Chaiyaphum |
20,000 |
16.67 |
|
Mr. Nirav Rasiklal
Gandhi Nationality: Indian Address : 910/5
Rama 3 Rd.,
Bangpongpang,
Yananwa, Bangkok |
18,800 |
15.66 |
|
Mr. Chumpol Keeta Nationality: Thai Address : 241
Moo 11, T. Angthong, A. Muang,
Kampaengpetch |
10,000 |
8.33 |
|
Mr. Sirithai Thavornphan Nationality: Thai Address : 164/665
Moo 3, Pimolraj,
Bangbuathong, Nonthaburi |
5,600 |
4.67 |
|
Ms. Narisa Ploykham Nationality: Thai Address : 8
Moo 13, T. Sarklek,
A. Sarklet, Pijit |
5,600 |
4.67 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
61,200 |
51.00 |
|
Foreign-Indian |
2 |
58,800 |
49.00 |
|
Total |
7 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Vasana Tanmongkol
No. 1888
BALANCE SHEET [BAHT ]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
375,776.16 |
265,494.52 |
48,454.66 |
|
Trade Accounts Receivable |
19,857,397.53 |
19,557,820.75 |
51,334,244.48 |
|
Inventories |
41,179,256.09 |
25,899,013.71 |
19,026,185.39 |
|
Other Current Assets
|
3,514,391.50 |
- |
1,934,236.09 |
|
Total Current Assets
|
64,926,821.28 |
45,722,328.98 |
72,343,120.62 |
|
|
|
|
|
|
Fixed Assets |
14.00 |
14.00 |
12,208.27 |
|
Total Assets |
64,926,835.28 |
45,722,342.98 |
72,355,328.89 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft from Bank |
2,980,841.22 |
2,991,001.22 |
2,975,558.96 |
|
Loan from Bank |
6,973,960.82 |
7,155,581.93 |
6,655,623.21 |
|
Trade Accounts Payable |
24,220,176.40 |
20,694,407.46 |
38,337,478.89 |
|
Other Current Liabilities |
16,840,519.82 |
1,196,388.11 |
8,263,668.92 |
|
Total Current Liabilities |
51,015,498.26 |
32,037,378.72 |
56,232,329.98 |
|
Payable Loan Directors |
- |
- |
3,000,000.00 |
|
Total Liabilities |
51,015,498.26 |
32,037,378.72 |
59,232,329.98 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning -
Unappropriated |
1,911,337.02 |
1,684,964.26 |
1,122,998.91 |
|
Total Shareholders' Equity |
13,911,337.02 |
13,684,964.26 |
13,122,998.91 |
|
Total Liabilities &
Shareholders' Equity |
64,926,835.28 |
45,722,342.98 |
72,355,328.89 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
27,143,335.24 |
42,226,050.78 |
71,810,137.87 |
|
Other Income |
500,968.40 |
68.13 |
4.14 |
|
Total Revenues |
27,644,303.64 |
42,226,118.91 |
71,810,142.01 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
23,353,116.60 |
36,935,165.22 |
66,300,612.82 |
|
Selling Expenses |
121,831.57 |
270,895.35 |
166,755.30 |
|
Administrative Expenses |
2,944,470.03 |
2,785,839.17 |
2,655,465.37 |
|
Loss on Exchange Rate |
- |
547,506.23 |
852,553.24 |
|
Total Expenses |
26,419,418.20 |
40,539,405.97 |
69,975,386.73 |
|
Profit / [Loss] Before
Financial Cost & Income Tax |
1,224,885.44 |
1,686,712.94 |
1,834,755.28 |
|
Financial Cost |
[858,472.76] |
[835,351.30] |
[781,492.31] |
|
Profit / [Loss] Before Income Tax |
366,412.68 |
851,361.64 |
1,053,262.97 |
|
Income Tax |
[140,039.92] |
[289,396.29] |
[322,333.19] |
|
Net Profit / [Loss] |
226,372.76 |
561,965.35 |
730,929.78 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.27 |
1.43 |
1.29 |
|
QUICK RATIO |
TIMES |
0.40 |
0.62 |
0.91 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,938,809.66 |
3,016,146.48 |
5,882.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.42 |
0.92 |
0.99 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
643.62 |
255.94 |
104.74 |
|
INVENTORY TURNOVER |
TIMES |
0.57 |
1.43 |
3.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
267.03 |
169.06 |
260.92 |
|
RECEIVABLES TURNOVER |
TIMES |
1.37 |
2.16 |
1.40 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
378.55 |
204.51 |
211.06 |
|
CASH CONVERSION CYCLE |
DAYS |
532.09 |
220.49 |
154.61 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.04 |
87.47 |
92.33 |
|
SELLING & ADMINISTRATION |
% |
11.30 |
7.24 |
3.93 |
|
INTEREST |
% |
3.16 |
1.98 |
1.09 |
|
GROSS PROFIT MARGIN |
% |
15.81 |
12.53 |
7.67 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.51 |
3.99 |
2.56 |
|
NET PROFIT MARGIN |
% |
0.83 |
1.33 |
1.02 |
|
RETURN ON EQUITY |
% |
1.63 |
4.11 |
5.57 |
|
RETURN ON ASSET |
% |
0.35 |
1.23 |
1.01 |
|
EARNING PER SHARE |
BAHT |
1.89 |
4.68 |
6.09 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.70 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.67 |
2.34 |
4.51 |
|
TIME INTEREST EARNED |
TIMES |
1.43 |
2.02 |
2.35 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(35.72) |
(41.20) |
|
|
OPERATING PROFIT |
% |
(27.38) |
(8.07) |
|
|
NET PROFIT |
% |
(59.72) |
(23.12) |
|
|
FIXED ASSETS |
% |
- |
(99.89) |
|
|
TOTAL ASSETS |
% |
42.00 |
(36.81) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -35.72%. Turnover has decreased from THB 42,226,050.78
in 2011 to THB 27,143,335.24 in 2012. While net profit has decreased from THB
561,965.35 in 2011 to THB 226,372.76 in 2012. And total assets has increased
from THB 45,722,342.98 in 2011 to THB 64,926,835.28 in 2012.
PROFITABILITY : IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
15.81 |
Impressive |
Industrial
Average |
1.88 |
|
Net Profit Margin |
0.83 |
Impressive |
Industrial
Average |
0.04 |
|
Return on Assets |
0.35 |
Satisfactory |
Industrial
Average |
0.43 |
|
Return on Equity |
1.63 |
Satisfactory |
Industrial
Average |
1.93 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The company’s figure is 15.81%. 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
0.83%, 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 0.35%.
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 1.63%.
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 |
1.27 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
532.09 |
|
|
|
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 1.27 times in 2012, decreased from 1.43 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 0.4 times in 2012,
decreased from 0.62 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 533 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial
Average |
0.76 |
|
Debt to Equity Ratio |
3.67 |
Risky |
Industrial
Average |
3.41 |
|
Times Interest Earned |
1.43 |
Impressive |
Industrial Average |
0.28 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.43 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,938,809.66 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
0.42 |
Deteriorated |
Industrial
Average |
14.17 |
|
Inventory Conversion Period |
643.62 |
|
|
|
|
Inventory Turnover |
0.57 |
Deteriorated |
Industrial
Average |
43.91 |
|
Receivables Conversion Period |
267.03 |
|
|
|
|
Receivables Turnover |
1.37 |
Deteriorated |
Industrial
Average |
18.17 |
|
Payables Conversion Period |
378.55 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.37 and 2.16 in
2012 and 2011 respectively. This ratio measures the efficiency of the company in
managing its trade debtors to generate revenue. A lower ratio may indicate over
extension and collection problems. Conversely, a higher ratio may indicate an
overtly stringent policy. In this case, the company's A/R ratio in 2012
decreased from 2011. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 256 days at the
end of 2011 to 644 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 1.43 times in year 2011 to 0.57 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.42 times and 0.92
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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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.
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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.62.50 |
|
|
1 |
Rs.101.92 |
|
Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.