MIRA INFORM REPORT
|
Report Date : |
27.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
PRIYAANK INTERNATIONAL COMPANY LIMITED |
|
|
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Registered Office : |
13th Floor, Bangkok Gems & Jewelry Tower, 322/23 Surawong Road, Siphraya, Bangrak, Bangkok 10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
09.04.1990 |
|
|
|
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Com. Reg. No.: |
0105533040934 |
|
|
|
|
Legal Form : |
Private Limited Company |
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|
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|
Line of Business : |
Subject is engaged
in international trading
business as the
followings: ·
Importing
and distributing of
diamonds and gemstones. ·
Exporting
of Thai cutting
diamonds and gems,
as well as
diamond and gold
jewelry products. |
|
|
|
|
No. of Employees |
07 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
PRIYAANK INTERNATIONAL
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 13th FLOOR,
BANGKOK GEMS & JEWELRY TOWER,
322/23 SURAWONG
ROAD, SIPHRAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-3880-3
FAX
: [66] 2238-3884
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION
NO. : 0105533040934
TAX
ID NO. : 3101820218
CAPITAL REGISTERED : BHT. 20,500,000
CAPITAL PAID-UP : BHT.
20,500,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRADEEP RAGHUNATH LODHA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 7
LINES
OF BUSINESS : DIAMONDS, GEMS
AND JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on April 9, 1990
as a private
limited company under
the name style
PRIYAANK INTERNATIONAL COMPANY
LIMITED, by Thai
and Indian groups, with
the business objective
to operate as a
jewelry trading. It
currently employs 7 staff.
The
subject’s registered address
is 13th Floor,
Bangkok Gems &
Jewelry Tower,
322/23
Surawong Rd., Siphraya, Bangrak,
Bangkok 10500, and this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pradeep Raghunath Lodha |
|
Indian |
50 |
|
Ms. Nirmala Sacheti |
|
Indian |
69 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pradeep Raghunath
Lodha is the
Managing Director.
He is Indian
nationality with the
age of 50 years
old.
BUSINESS OPERATIONS
The subject is
engaged in international
trading business as
the followings:
- Importing and
distributing of diamonds
and gemstones.
- Exporting of
Thai cutting diamonds
and gems, as
well as diamond
and gold jewelry
products.
PURCHASE
The products are purchased from
suppliers and manufacturers
both domestic and
overseas, mainly in
India, Hong Kong,
Belgium, Republic of
China and South
Africa.
SALES [LOCAL]
The products are
sold locally to
manufacturers, traders and
end-users.
EXPORT
Some of
the products are
exported to Hong
Kong, Japan, U.S.A., India,
Republic of Chimna and countries in
Europe.
RELATED AND AFFILIATED
COMPANY
Prestorise Intertrade Co.,
Ltd.
Business Type :
Importer and distributor
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
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
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 7
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Note:
Refer
to your given
address at 14th Floor,
Bangkok Gems & Jewelry Tower,
please be informed
that the correct
address should be 13th Floor,
Bangkok Gems & Jewelry Tower.
COMMENT
Subject
reported moderate business
in the previous years. Slow consumption in domestic
market has resulted to
slowdown its sales
compared to the previous
year. Current economy
turmoil affects on overall
domestic consumption which
is unfavorable to
jewelry business as well.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The
capital was increased
later as following:
Bht. 2,000,000
on September 26,
1990
Bht. 6,000,000
on February 4,
1994
Bht. 15,000,000
on January 18,
1995
Bht. 20,000,000
on December 25,
2002
The
latest registered capital
was increased to
Bht. 20,500,000 divided into 205,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa Naruela Nationality: Thai Address : 32/31-32 Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
101,547 |
49.53 |
|
Mr. Pradeep Raghunath Lodha Nationality: Indian Address : 322/23
Surawong Rd., Siphraya,
Bangrak, Bangkok |
59,999 |
29.27 |
|
Ms. Nirmala Sacheti Nationality: Indian Address : 1867/85
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
26,950 |
13.15 |
|
Mrs. Sukesee Lodha Nationality: Indian Address : 1867/85
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
13,500 |
6.58 |
Mr.
Nikorn Kijvanich
Nationality: Thai Address : 69/71 Rama
4 Rd., Pomprab, Bangkok |
3,000 |
1.46 |
|
Ms. Araya Thirachawalit Nationality: Thai Address : 510
Charansanitwong 66/1 Rd.,
Bangplad, Bangkok |
3 |
0.01 |
Ms. Mahee Lodha Nationality: Thai Address : 1867/93
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
104,551 |
51.00 |
|
Foreign-Indian |
3 |
100,449 |
49.00 |
|
Total |
7 |
205,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Nongnuch Ouitrakul No. 2241
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
1,575,098.13 |
387,213.79 |
6,158,677.78 |
|
Short-term Investment |
61,039.58 |
58,995.39 |
- |
|
Trade Accounts Receivable |
98,470,583.75 |
79,929,043.81 |
45,214,617.09 |
|
Inventories |
49,874,883.01 |
50,217,372.10 |
91,966,607.61 |
|
Other Current Assets
|
1,067.99 |
1,458.71 |
105,669.66 |
|
|
|
|
|
|
Total Current Assets
|
149,982,672.46 |
130,594,083.80 |
143,445,572.14 |
|
|
|
|
|
|
Fixed Assets |
1,761,642.66 |
2,450,309.53 |
3,109,177.15 |
|
Intangible Assets |
13,091.97 |
6,274.05 |
17,346.03 |
|
Total Assets |
151,757,407.09 |
133,050,667.38 |
146,572,095.32 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
91,839,722.40 |
74,674,329.19 |
96,131,381.87 |
|
Trade Accounts & Other
Payable |
19,854,678.89 |
20,115,117.36 |
14,851,266.19 |
|
Current Portion of Financial Lease
Contract Liabilities |
627,088.26 |
599,127.63 |
600,034.76 |
|
Accrued Income Tax |
329,322.02 |
540,843.13 |
118,238.39 |
|
Other Current Liabilities |
- |
- |
27,860.78 |
|
|
|
|
|
|
Total Current Liabilities |
112,650,811.57 |
95,929,417.31 |
111,728,781.99 |
|
Financial Lease Contract
Liabilities, Net of
Current Portion |
353,230.47 |
980,318.73 |
1,551,825.85 |
|
Total Liabilities |
113,004,042.04 |
96,909,736.04 |
113,280,607.84 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 205,000 shares |
20,500,000.00 |
20,500,000.00 |
20,500,000.00 |
|
|
|
|
|
|
Capital Paid |
20,500,000.00 |
20,500,000.00 |
20,500,000.00 |
|
Retained Earning -
Unappropriated |
18,253,365.05 |
15,640,931.34 |
12,791,487.48 |
|
Total Shareholders' Equity |
38,753,365.05 |
36,140,931.34 |
33,291,487.48 |
|
Total Liabilities &
Shareholders' Equity |
151,757,407.09 |
133,050,667.38 |
146,572,095.32 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
175,064,454.03 |
174,046,498.51 |
184,205,063.39 |
|
Gain on Exchange Rate |
- |
3,603,662.29 |
- |
|
Other Income |
718,160.69 |
125,858.82 |
92,249.79 |
|
Total Revenues |
175,782,614.72 |
177,776,019.62 |
184,297,313.18 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
159,503,731.52 |
165,586,208.49 |
170,479,529.96 |
|
Selling Expenses |
1,506,487.04 |
906,615.42 |
777,905.34 |
|
Administrative Expenses |
4,925,314.98 |
5,507,591.00 |
4,576,849.34 |
|
Loss on Exchange Rate |
4,035,005.59 |
- |
3,688,452.25 |
|
Total Expenses |
169,970,539.13 |
172,000,414.91 |
179,522,736.89 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
5,812,075.59 |
5,775,604.71 |
4,774,576.29 |
|
Interest Expenses |
[2,320,319.86] |
[1,827,567.72] |
[2,891,945.08] |
|
Profit before Income
Tax |
3,491,755.73 |
3,948,036.99 |
1,882,631.21 |
|
Income Tax |
[879,322.02] |
[1,098,593.13] |
[620,438.39] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,612,433.71 |
2,849,443.86 |
1,262,192.82 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.33 |
1.36 |
1.28 |
|
QUICK RATIO |
TIMES |
0.89 |
0.84 |
0.46 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
99.38 |
71.03 |
59.25 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.15 |
1.31 |
1.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
114.13 |
110.69 |
196.90 |
|
INVENTORY TURNOVER |
TIMES |
3.20 |
3.30 |
1.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
205.31 |
167.62 |
89.59 |
|
RECEIVABLES TURNOVER |
TIMES |
1.78 |
2.18 |
4.07 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
45.43 |
44.34 |
31.80 |
|
CASH CONVERSION CYCLE |
DAYS |
274.00 |
233.98 |
254.70 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.11 |
95.14 |
92.55 |
|
SELLING & ADMINISTRATION |
% |
3.67 |
3.69 |
2.91 |
|
INTEREST |
% |
1.33 |
1.05 |
1.57 |
|
GROSS PROFIT MARGIN |
% |
9.30 |
7.00 |
7.50 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.32 |
3.32 |
2.59 |
|
NET PROFIT MARGIN |
% |
1.49 |
1.64 |
0.69 |
|
RETURN ON EQUITY |
% |
6.74 |
7.88 |
3.79 |
|
RETURN ON ASSET |
% |
1.72 |
2.14 |
0.86 |
|
EARNING PER SHARE |
BAHT |
12.74 |
13.90 |
6.16 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.73 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.92 |
2.68 |
3.40 |
|
TIME INTEREST EARNED |
TIMES |
2.50 |
3.16 |
1.65 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
0.58 |
(5.51) |
|
|
OPERATING PROFIT |
% |
0.63 |
20.97 |
|
|
NET PROFIT |
% |
(8.32) |
125.75 |
|
|
FIXED ASSETS |
% |
(28.11) |
(21.19) |
|
|
TOTAL ASSETS |
% |
14.06 |
(9.23) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 0.58%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.30 |
Impressive |
Industrial
Average |
3.01 |
|
Net Profit Margin |
1.49 |
Impressive |
Industrial
Average |
0.58 |
|
Return on Assets |
1.72 |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
6.74 |
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 9.3%. 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 1.49%, 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 1.72%.
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 6.74%.
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 |
1.33 |
Satisfactory |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.89 |
|
|
|
|
Cash Conversion Cycle |
274.00 |
|
|
|
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 1.33 times in 2013, decreased from 1.36 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 0.89 times in 2013,
increased from 0.84 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 275 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
2.92 |
Risky |
Industrial
Average |
2.73 |
|
Times Interest Earned |
2.50 |
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 2.51 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 0.74 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 Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
99.38 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.15 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
114.13 |
|
|
|
|
Inventory Turnover |
3.20 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
205.31 |
|
|
|
|
Receivables Turnover |
1.78 |
Deteriorated |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
45.43 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.78 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 111 days at the
end of 2012 to 114 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.3 times in year 2012 to 3.2 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.15 times and 1.31
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.60.16 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.82.04 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.