MIRA INFORM REPORT
|
Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
UTOPIA
JEWELLERY LTD. |
|
|
|
|
Registered Office : |
60-71 Moo 13, Suksawad Road, T. Bangpueng, A. Phrapradaeng, Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
09.08.1999 |
|
|
|
|
Com. Reg. No.: |
0105542057968 [Former:
921/2542] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of business : |
Manufacturer and exporter of various kinds of jewelry products such as chain, bracelet, ring, barrette, earring, necklace, pin, cuff link, tie pin, tie bar |
|
|
|
|
No. of Employees : |
255 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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. 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 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
UTOPIA JEWELLERY
LTD.
SUMMARY
BUSINESS
ADDRESS : 60-71
MOO 13, SUKSAWAD ROAD,
T. BANGPUENG, A. PHRAPRADAENG,
SAMUTPRAKARN 10130,
THAILAND
TELEPHONE : [66] 2818-0601-3, 2818-0606-10
FAX :
[66] 2818-0601,
2818-1112
E-MAIL
ADDRESS
: sales@utopia-thai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542057968
[Former: 921/2542]
TAX
ID NO. : 3021055233
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLER’S
PROPORTION : CANADIAN : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. JOSEP CHILON,
CANADIAN
PRESIDENT
NO.
OF STAFF : 255
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER 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 August 9,
1999 as a
private limited company
under the name style “UTOPIA
JEWELLERY LTD.” by foreign
groups, in order
to manufacture jewelry
products for exports.
It currently employs
255 staff.
The subject’s registered address is 60-71
Moo 13, Suksawad Rd., T. Bangpueng, A. Phrapradaeng, Samutprakarn
10130, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Josep Chilon |
|
Canadian |
55 |
|
Mr. Samuel Cohen |
|
Israeli |
45 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Josep Chilon is
the President
He is Canadian
nationality with the
age of 55 years
old.
Mr. Samuel Cohen is
the Managing Director.
He is Israeli
nationality with the
age of 45
years old.
Ms. Mona Chilon is
the Export Manager
She is Canadian
nationality.
BUSINESS
OPERATIONS
The subject is engaged
in manufacturing and exporting
various kinds of
jewelry products such as
chain, bracelet, ring,
barrette, earring, necklace,
pin, cuff link,
tie pin, tie bar
under customers’ orders
and brands.
PURCHASE
Raw materials such as silver, gold, diamonds, gemstones and accessories are purchased from suppliers in both domestic and overseas, such as France, India, Hong Kong, South Korea, Japan and Africa.
EXPORT
100% of the
products is exported
to Indonesia, Malaysia,
Hong Kong, Singapore, France,
United Kingdom, U.S.A., Australia,
Italy, Canada, Israel,
Switzerland, Austria and
Middle East countries.
MAJOR CUSTOMERS
Diamonds Forever Ltd. : Israel
JSN Jewellery Inc. : Canada
JSN Jewellery UK
Ltd. : U.K.
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
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
Kasikornbank Public Co., Ltd.
[Head Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok]
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject currently employs
255 staff.
LOCATION
DETAILS
The premise is rented for administrative office, factory
and warehouse at the
heading address. Premise
is located in
industrial area.
COMMENT
The subject has expanded to become an
international gem and jewellery business, with
well reputation. While being recognized as a leading in Thailand’s gem
and jewellery industry, the subject also boasted clients around the world. The
subject produces medium to high-end products with sophisticated design and high
technology. Hundred percent the products have been marketed in
international markets. The
subject has performed well
and continued growing
in line with
an effective markets.
FINANCIAL
INFORMATION
The
capital was initially registered
at Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100
each.
On
March 21, 2000 the
capital was increased
to Bht. 50,000,000 divided into
500,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Josep Chilon Nationality: Canadian Address : Ontario,
Canada |
499,994 |
100.00 |
|
Ms. Gilla Chilon Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Mr. Jagutnarin Tagi Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Ms. Zefra Chilon Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Mrs. Itria Zeminara Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Mr. Douglas Wood Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
|
Mrs. Lora Fiscaletti Nationality: Canadian Address : Ontario,
Canada |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
7 |
500,000 |
100.00 |
|
Total |
7 |
500,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Vuthipong Thabthieng No. 7531
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalent |
79,153.35 |
79,533.00 |
75,955.98 |
|
Trade Accounts & Other
Receivable |
383,101,541.90 |
211,200,694.73 |
253,559,112.50 |
|
Short-term Loan |
20,685,846.33 |
62,518,442.24 |
26,170,859.12 |
|
Inventories |
539,035,078.05 |
615,283,241.54 |
335,416,788.57 |
|
Receivable-Revenue Department |
3,365,589.81 |
1,264,927.46 |
2,731,502.59 |
|
Other Current Assets |
851,262.10 |
645,918.55 |
8,215,504.70 |
|
Total Current Assets
|
947,118,471.54 |
80,992,757.52 |
626,169,723.46 |
|
Cash at Bank Pledged as a Collateral |
18,072,607.50 |
8,651,228.95 |
8,601,494.63 |
|
Fixed Assets |
20,149,727.43 |
21,093,581.39 |
22,116,122.14 |
|
Intangible Assets |
1,344,486.61 |
583,883.76 |
- |
|
Other Non-current Assets |
3,001,928.76 |
2,557,082.00 |
2,459,747.00 |
|
Total Assets |
989,687,221.84 |
923,878,533.62 |
659,347,087.23 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
64,582,772.37 |
87,726,612.79 |
10,179,623.21 |
|
Trade Accounts & Other
Payable |
833,451,348.39 |
703,388,916.48 |
489,439,126.23 |
|
Notes Payable |
- |
- |
70,000,000.00 |
|
Short-term Loan |
1,618,930.67 |
52,991,972.51 |
- |
|
Advance Received Income |
- |
- |
1,989,079.34 |
|
Payable Director-Non Interest
|
- |
- |
7,168,293.11 |
|
Current Portion of Financial
Lease Contract Liabilities |
3,097,962.20 |
2,564,303.06 |
- |
|
Current Portion of
Hire-Purchase Payable |
- |
- |
2,532,657.82 |
|
Accrued Income Tax |
- |
- |
834,550.19 |
|
Other Current Liabilities |
2,114,471.54 |
1,512,165.11 |
2,857,096.47 |
|
Total Current Liabilities |
904,865,485.17 |
848,183,969.95 |
585,000,426.37 |
|
Hire-Purchase Payable Net
of Current Portion |
- |
- |
2,423,307.99 |
|
Financial Lease Contract Liabilities |
4,780,042.53 |
2,571,327.87 |
- |
|
Long-term Loan |
2,206,705.64 |
- |
- |
|
Total Liabilities |
911,852,233.34 |
850,755,297.82 |
587,423,734.36 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning - Unappropriated |
27,834,988.50 |
23,123,235.80 |
21,923,352.87 |
|
Total Shareholders' Equity |
77,834,988.50 |
73,123,235.80 |
71,923,352.87 |
|
Total Liabilities & Shareholders' Equity |
989,687,221.84 |
923,878,533.62 |
659,347,087.23 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,450,372,609.35 |
1,023,368,733.26 |
792,654,558.16 |
|
Other Income |
27,930,837.97 |
2,085,187.76 |
20,212,599.99 |
|
Total Revenues |
1,478,303,447.32 |
1,025,453,921.02 |
812,867,158.15 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Goods |
76,248,163.49 |
[279,866,452.97] |
[178,061,516.60] |
|
Raw Material & Material Supplies |
1,224,327,193.04 |
1,137,000,245.41 |
848,621,138.49 |
|
Employees Expenses |
112,614,662.64 |
95,789,619.84 |
81,782,171.00 |
|
Depreciation and Amortization |
8,257,603.44 |
9,007,701.00 |
9,573,708.33 |
|
Person Expenses |
7,267,770.86 |
6,055,251.27 |
5,930,147.09 |
|
Electrical Expenses |
5,035,276.02 |
4,803,169.30 |
4,503,507.80 |
|
Rental Factory |
2,299,440.58 |
2,220,582.69 |
1,826,260.62 |
|
Insurance |
1,068,247.67 |
2,831,195.95 |
1,811,259.06 |
|
Promotion Sales Expenses |
3,521,276.65 |
5,228,238.15 |
8,645,917.48 |
|
Export Expenses |
5,965,484.57 |
4,950,681.33 |
- |
|
Repairs & Maintenance |
2,050,959.99 |
1,861,054.70 |
1,465,115.23 |
|
Services |
2,637,610.46 |
2,806,046.39 |
3,147,084.44 |
|
Traveling expense |
1,611,563.10 |
2,985,239.62 |
3,596,624.95 |
|
Loss on Exchange Rate |
- |
7,452,346.65 |
- |
|
Other Expenses |
12,947,333.53 |
12,806,776.42 |
11,227,001.99 |
|
Total Expenses |
1,465,852,586.04 |
1,015,931,695.75 |
804,068,419.88 |
|
Profit Before Financial Cost & Income Tax |
12,450,861.28 |
9,522,225.27 |
8,798,738.27 |
|
Interest Expenses |
[4,949,394.01] |
[6,331,017.08] |
[3,808,079.48] |
|
Profit Before Income Tax |
7,501,467.27 |
3,191,208.19 |
4,990,658.79 |
|
Income Tax |
[2,789,714.57] |
[1,991,325.26] |
[1,511,930.26] |
|
Net Profit / [Loss] |
4,711,752.70 |
1,199,882.93 |
3,478,728.53 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.05 |
0.10 |
1.07 |
|
QUICK RATIO |
TIMES |
0.45 |
(0.63) |
0.48 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
71.98 |
48.52 |
35.84 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.47 |
1.11 |
1.20 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
160.70 |
197.52 |
144.27 |
|
INVENTORY TURNOVER |
TIMES |
2.27 |
1.85 |
2.53 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.41 |
75.33 |
116.76 |
|
RECEIVABLES TURNOVER |
TIMES |
3.79 |
4.85 |
3.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
248.47 |
225.80 |
210.51 |
|
CASH CONVERSION CYCLE |
DAYS |
8.64 |
47.04 |
50.51 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.41 |
111.10 |
107.06 |
|
SELLING & ADMINISTRATION |
% |
11.40 |
15.52 |
16.84 |
|
INTEREST |
% |
0.34 |
0.62 |
0.48 |
|
GROSS PROFIT MARGIN |
% |
17.51 |
(10.90) |
(4.51) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.86 |
0.93 |
1.11 |
|
NET PROFIT MARGIN |
% |
0.32 |
0.12 |
0.44 |
|
RETURN ON EQUITY |
% |
6.05 |
1.64 |
4.84 |
|
RETURN ON ASSET |
% |
0.48 |
0.13 |
0.53 |
|
EARNING PER SHARE |
BAHT |
9.42 |
2.40 |
6.96 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.92 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
11.72 |
11.63 |
8.17 |
|
TIME INTEREST EARNED |
TIMES |
2.52 |
1.50 |
2.31 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
41.73 |
29.11 |
|
|
OPERATING PROFIT |
% |
30.76 |
8.22 |
|
|
NET PROFIT |
% |
292.68 |
(65.51) |
|
|
FIXED ASSETS |
% |
(4.47) |
(4.62) |
|
|
TOTAL ASSETS |
% |
7.12 |
40.12 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 41.73%. Turnover has increased from THB 1,023,368,733.26
in 2011 to THB 1,450,372,609.35 in 2012. While net profit has increased from
THB 1,199,882.93 in 2011 to THB 4,711,752.70 in 2012. And total assets has
increased from THB 923,878,533.62 in 2011 to THB 989,687,221.84 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.51 |
Satisfactory |
Industrial Average |
21.85 |
|
Net Profit Margin |
0.32 |
Deteriorated |
Industrial Average |
1.70 |
|
Return on Assets |
0.48 |
Deteriorated |
Industrial Average |
1.73 |
|
Return on Equity |
6.05 |
Impressive |
Industrial Average |
3.85 |
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 17.51%. 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 0.32%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the
company's figure is 0.48%.
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 6.05%, 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.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.05 |
Acceptable |
Industrial Average |
1.51 |
|
Quick Ratio |
0.45 |
|
|
|
|
Cash Conversion Cycle |
8.64 |
|
|
|
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 1.05 times in 2012, increased from 0.1 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 0.45 times in 2012,
increased from -0.63 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 9 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
11.72 |
Risky |
Industrial Average |
3.27 |
|
Times Interest Earned |
2.52 |
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 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 2.52 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 0.92 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
71.98 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.47 |
Impressive |
Industrial Average |
1.02 |
|
Inventory Conversion Period |
160.70 |
|
|
|
|
Inventory Turnover |
2.27 |
Impressive |
Industrial Average |
2.22 |
|
Receivables Conversion Period |
96.41 |
|
|
|
|
Receivables Turnover |
3.79 |
Impressive |
Industrial Average |
1.85 |
|
Payables Conversion Period |
248.47 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.79 and 4.85 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 decreased from 198 days at the
end of 2011 to 161 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.85 times in year 2011 to 2.27 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.47 times and 1.11
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 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.60.05 |
|
|
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.