MIRA
INFORM REPORT
|
Report Date : |
11.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
SELECT DIAM CO., LTD. |
|
|
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Registered Office : |
Room 331 f, 26th Floor, Jewelry Trade Center, 919/331 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
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Country : |
Thailand |
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|
|
Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.09.1995 |
|
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Com. Reg. No.: |
0105538107573 |
|
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Legal Form : |
Private Limited Company |
|
|
|
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Line of Business : |
Subject is engaged in
importing and distributing various
kinds of diamonds, gemstones
and silver jewelry
products, as well
as exporting local
silver jewelry products |
|
|
|
|
No. of Employees : |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy
|
Source
: CIA |
COMPANY NAME AND ADDRESS
SELECT DIAM CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
331 F, 26th FLOOR,
JEWELRY TRADE CENTER,
919/331 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-1840,
2235-6624-5
FAX :
[66] 2267-1840
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538107573
TAX
ID NO. : 3011623596
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAKESH BHOGILAL
SHAH, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS, GEMSTONES AND
JEWELRY
PRODUCTS
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 September
11, 1995 as
a private limited
company under the
registered name SELECT
DIAM CO., LTD., by
Thai and Indian
groups, with the business
objective to import,
distribute and export
diamonds, gemstones and
jewelry products. It
currently employs 2
staff.
The
subject’s registered address
is Room 331 F, 26th Floor, Jewelry Trade
Center, 919/331 Silom Road,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rakesh Bhogilal Shah |
|
Indian |
45 |
|
Mr. Manish Bhogilal Shah |
|
Indian |
49 |
|
Mr. Mehta Wirat Budhmal |
|
Indian |
39 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rakesh Bhogilal Shah
is the Managing
Director.
He is Indian
nationality with the
age of 45
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing various
kinds of diamonds, gemstones
and silver jewelry
products, as well
as exporting local
silver jewelry products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas, mainly
in India.
SALES [LOCAL]
100% of the
international products is
sold locally by
wholesale to manufacturers, traders
and end-users.
EXPORT
The local silver
jewelry is exported
to India, Republic
of China and
Hong Kong.
SUBSIDIARY
AND AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 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.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
2 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
The
subject has been firmly established for almost 20
years as an
importer, distributor and
exporter of diamond,
gemstone and jewelry
products. Its business
performance in 2012
was slowdown with
a sharp decrease
in both sales
revenue and net
profit comparing to the
previous year. Generally,
its business has encountered slow
growth due to
many unfavorable factors
such as political
conflict and low
consumer spending which
has affected on
consumer spending.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 4,000,000 on January
7, 1997
Bht.
15,000,000 on December
18, 2001
On
August 1, 2006,
the registered capital
was decreased to
Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rakesh Bhogilal Shah Nationality: Indian Address : 919/331
Silom Road, Silom,
Bangrak,
Bangkok |
41,000 |
41.00 |
|
Ms. Yupin Pisamai Nationality: Thai Address : 131/6
Moo 9, T. Naimuang, A.
Sawankaloke, Sukhothai |
13,500 |
13.50 |
|
Mr. Poomphan Pattama Nationality: Thai Address : 37
Moo 14, T. Phai,
A. Raseesalai, Sukhothai |
12,500 |
12.50 |
|
Ms. Sompis Kongpim Nationality: Thai Address : 181/1
Moo 10, T. Chansane, A. Takhli, Nakornsawan
|
12,500 |
12.50 |
|
Ms. Suksanti Kanjanathanee Nationality: Thai Address : 1377
Ladprao 101 Road,
Wangthonglang,
Bangkapi, Bangkok |
12,500 |
12.50 |
|
Mr. Manish Bhogilal Shah Nationality: Indian Address : 919/331
Silom Road, Silom,
Bangrak,
Bangkok |
4,000 |
4.00 |
|
Mr. Mehta Wirat Budhmal Nationality: Indian Address : 919/331
Silom Road, Silom,
Bangrak, Bangkok |
4,000 |
4.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
51,000 |
51.00 |
|
Foreign - Indian |
3 |
49,000 |
49.00 |
|
Total |
7 |
100,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Surin Ruengpetch No.
3741
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
27,824.27 |
36,090.35 |
66,247.79 |
|
Trade Accounts Receivable
|
13,624,302.77 |
26,199,165.51 |
13,094,964.08 |
|
Inventories |
30,581,211.08 |
18,939,041.27 |
37,763,025.23 |
|
Revenue Department Receivable |
- |
- |
239,141.94 |
|
Other Current Assets
|
15,300.00 |
14,500.00 |
14,500.00 |
|
|
|
|
|
|
Total Current Assets
|
44,248,638.12 |
45,188,797.13 |
51,177,879.04 |
|
Lending to Related Person |
80,000.00 |
- |
800,000.00 |
|
Fixed Assets |
18,637.21 |
17,609.44 |
22,271.12 |
|
Guarantee |
3,000.00 |
3,000.00 |
3,000.00 |
|
Total Assets |
44,350,275.33 |
45,209,406.57 |
52,003,150.16 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
1,484,666.48 |
1,518,198.28 |
1,500,453.51 |
|
Bank Lenders T/R |
6,976,350.36 |
4,496,226.94 |
4,446,567.88 |
|
Trade Accounts Payable
|
23,973,765.82 |
27,684,305.29 |
35,230,259.88 |
|
Other Current Liabilities |
118,313.58 |
178,806.27 |
95,072.03 |
|
|
|
|
|
|
Total Current Liabilities |
32,553,096.24 |
33,877,536.78 |
41,272,353.30 |
|
Total Liabilities |
32,553,096.24 |
33,877,536.78 |
41,272,353.30 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
1,797,179.09 |
1,331,869.79 |
730,797.21 |
|
Total Shareholders' Equity |
11,797,179.09 |
11,331,869.79 |
10,730,797.21 |
|
Total Liabilities & Shareholders' Equity |
44,350,275.33 |
45,209,406.57 |
52,003,150.16 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
41,735,827.50 |
55,613,412.99 |
41,746,072.21 |
|
Other Income |
706,203.34 |
42,442,030.84 |
1,188,333.02 |
|
Total Revenues |
42,442,030.84 |
98,055,443.83 |
42,934,405.23 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
39,761,441.30 |
53,069,614.15 |
40,619,540.77 |
|
Selling and Administrative
Expenses |
1,409,956.65 |
1,196,305.59 |
1,376,576.84 |
|
Total Expenses |
41,171,397.95 |
54,265,919.74 |
41,996,117.61 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,270,632.89 |
1,347,193.25 |
938,287.62 |
|
Financial Cost |
[652,288.43] |
[486,876.11] |
[534,797.94] |
|
Profit / [Loss] before Income Tax |
618,344.46 |
860,317.14 |
403,489.68 |
|
Income Tax |
[153,035.16] |
[259,244.56] |
[136,473.60] |
|
|
|
|
|
|
Net Profit / [Loss] |
465,309.30 |
601,072.58 |
267,016.08 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.36 |
1.33 |
1.24 |
|
QUICK RATIO |
TIMES |
0.42 |
0.77 |
0.32 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,239.38 |
3,158.16 |
1,874.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.94 |
1.23 |
0.80 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
280.73 |
130.26 |
339.33 |
|
INVENTORY TURNOVER |
TIMES |
1.30 |
2.80 |
1.08 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
119.15 |
171.95 |
114.49 |
|
RECEIVABLES TURNOVER |
TIMES |
3.06 |
2.12 |
3.19 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
220.07 |
190.41 |
316.57 |
|
CASH CONVERSION CYCLE |
DAYS |
179.81 |
111.80 |
137.25 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.27 |
95.43 |
97.30 |
|
SELLING & ADMINISTRATION |
% |
3.38 |
2.15 |
3.30 |
|
INTEREST |
% |
1.56 |
0.88 |
1.28 |
|
GROSS PROFIT MARGIN |
% |
6.42 |
80.89 |
5.55 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.04 |
78.74 |
2.25 |
|
NET PROFIT MARGIN |
% |
1.11 |
1.08 |
0.64 |
|
RETURN ON EQUITY |
% |
3.94 |
5.30 |
2.49 |
|
RETURN ON ASSET |
% |
1.05 |
1.33 |
0.51 |
|
EARNING PER SHARE |
BAHT |
4.65 |
6.01 |
2.67 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.75 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.76 |
2.99 |
3.85 |
|
TIME INTEREST EARNED |
TIMES |
1.95 |
89.94 |
1.75 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(24.95) |
33.22 |
|
|
OPERATING PROFIT |
% |
(97.10) |
4,566.96 |
|
|
NET PROFIT |
% |
(22.59) |
125.11 |
|
|
FIXED ASSETS |
% |
5.84 |
(20.93) |
|
|
TOTAL ASSETS |
% |
(1.90) |
(13.06) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -24.95%. Turnover has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.42 |
Impressive |
Industrial
Average |
1.88 |
|
Net Profit Margin |
1.11 |
Impressive |
Industrial
Average |
0.04 |
|
Return on Assets |
1.05 |
Impressive |
Industrial
Average |
0.43 |
|
Return on Equity |
3.94 |
Impressive |
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 6.42%. When compared with the industry average, the
ratio of the company was higher, indicated that company was more profitable
than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 1.11%, 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. Return on Assets ratio is
1.05%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant
position within its industry.
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. Return on Equity ratio
is 3.94%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
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 |
1.36 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.42 |
|
|
|
|
Cash Conversion Cycle |
179.81 |
|
|
|
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 1.36 times in 2012, increased
from 1.33 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 0.42 times in 2012,
decreased from 0.77 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 180 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Impressive |
Industrial
Average |
0.76 |
|
Debt to Equity Ratio |
2.76 |
Acceptable |
Industrial
Average |
3.41 |
|
Times Interest Earned |
1.95 |
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 1.95 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 0.73 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 |
2,239.38 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
0.94 |
Deteriorated |
Industrial
Average |
14.17 |
|
Inventory Conversion Period |
280.73 |
|
|
|
|
Inventory Turnover |
1.30 |
Deteriorated |
Industrial
Average |
43.91 |
|
Receivables Conversion Period |
119.15 |
|
|
|
|
Receivables Turnover |
3.06 |
Deteriorated |
Industrial
Average |
18.17 |
|
Payables Conversion Period |
220.07 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.06 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 130 days at the
end of 2011 to 281 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 2.8 times in year 2011 to 1.3 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.94 times and 1.23
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.
-
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.62.19 |
|
|
1 |
Rs.102.14 |
|
Euro |
1 |
Rs.84.74 |
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.