MIRA
INFORM REPORT
|
Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
PURITY JEWELRY
CO., LTD. |
|
|
|
|
Registered Office : |
2, 4 Soi Charoen Nakhon 53/1, Charoen Nakhon Road, Banglampulang, Klongsan, Bangkok 10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
05.01.2010 |
|
|
|
|
Com. Reg. No.: |
0105553000954 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in
importing and distributing various
kinds of diamond
jewelry and precious
stones. Subject
products ranges includes bracelet,
earring, necklace, pendant & ring , as
well as exporting
of local and
international fine gold
with diamond jewelry.
|
|
|
|
|
No of Employees : |
06 |
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 |
|
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 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 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.
|
Source : CIA |
Company name
PURITY JEWELRY
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2, 4
SOI CHAROEN NAKHON
53/1,
CHAROEN NAKHON
ROAD, BANGLAMPULANG,
KLONGSAN, BANGKOK
10600, THAILAND
TELEPHONE : [66] 2862-4437
FAX :
[66] 2862-4329
E-MAIL
ADDRESS : purityjewelry@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553000954
TAX
ID NO. : 3033750478
CAPITAL REGISTERED : BHT.
24,000,000
CAPITAL PAID-UP : BHT.
24,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. POONAM CHAND
KOTHARI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : DIAMOND JEWELRY
AND PRECIOUS STONES
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 January 5,
2010 as a
private limited company
under the name
style PURITY JEWELRY
CO., LTD. by Thai and Indian
groups. Its business
objective is to
import and distribute
various kinds of
jewelry and precious
stones to both
domestic and international
markets. Subject currently
employs 6 staff.
The
subject’s registered address was
initially at 31st Floor,
Jewellery Trade Center, 919/392
Silom Road, Silom, Bangrak,
Bangkok 10500.
On January 1, 2011, subject’s
registered address was
relocated to 23rd Floor, Jewellery Trade
Center, 919/295 Silom Rd., Silom,
Bangrak, Bangkok 10500, and finally
was relocated to 2, 4
Soi Charoen Nakhon
53/1, Charoen Nakhon Rd.,
Banglampulang, Klongsan, Bangkok 10600
on September 3, 2012,
and this is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Poonam Chand Kothari |
|
Indian |
45 |
|
Ms. Kornrawee Poolkamlang |
|
Thai |
35 |
|
Mrs. Vikram Golechha |
|
Indian |
34 |
|
Mr. Sunil Kothari |
|
Indian |
51 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Poonam Chand Kothari
is the Managing
Director.
He is Indian
nationality with the
age of 45
years old.
Mr. Vikram Golechha is
the Marketing Manager.
He is Indian
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
diamond jewelry and precious stones.
The products are
bracelet, earring, necklace,
pendant & ring , as well
as exporting of
local and international
fine gold with
diamond jewelry.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India, Republic of
China and Hong
Kong.
SALES
The products are
sold to manufacturers, traders
and end-users both
local and overseas,
mainly in India
and the countries
in Europe.
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 L/C
at sight or
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 6
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
COMMENT
Subject
was established in
early 2010. Its
first year operation
was moderate with its
sales revenue of 25 million baht, as
well as expanding the
market aggressively. Customer
expansion is the
key for its business
growth.
However,
current domestic sluggish
spending has resulted to
increase the markets in
Asean, which still
growing faster than
domestic market.
FINANCIAL INFORMATION
The
capital was registered at Bht. 1,000,000 divided into 1,000 shares of Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 4,000,000
on March 10,
2010
Bht. 8,000,000
on March 10,
2011
Bht. 24,000,000
on September 3,
2012
The
latest registered capital
was increased to
Bht. 24,000,000 divided into 24,000
shares of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Kornrawee Poolkamlang Nationality: Thai Address : 543
Charansanitwong 79 Road,
Bangplad,
Bangkok |
4,500 |
18.75 |
|
Ms. Chanphen Kidkham Nationality: Thai Address : 44
Moo 4, Thalad,
Chumpuang,
Nakornratchasima |
4,500 |
18.75 |
|
Mr. Vikram Golechha Nationality: Indian Address : 1006/289-290 Charon
Nakhon Road, Banglampulang, Klongsan,
Bangkok |
3,600 |
15.00 |
|
Mr. Thongsaeng Sridakorn Nationality: Thai Address : 20
Soi Charansanitwong 79
Road,
Bangplad, Bangkok |
3,240 |
13.50 |
|
Mr. Sunil Kothari Nationality: Indian Address : 1867/59
Charoennakorn Road,
Banglamphulang, Klongsan, Bangkok |
3,000 |
12.50 |
|
Mr. Poonam Chand Kothari Nationality: Indian Address : 1867/59
Charoennakorn Road, Banglamphulang, Klongsan, Bangkok |
2,000 |
8.33 |
|
Mr. Rishabh Kothari Nationality: Indian Address : 1867/59
Charoennakorn Road,
Banglamphulang, Klongsan, Bangkok |
2,000 |
8.33 |
|
Mr. Vikas Jain Nationality: Indian Address : 919/245-247
Silom Road, Silom,
Bangrak, Bangkok |
1,160 |
4.84 |
Total Shareholders : 8
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
12,240 |
51.00 |
|
Foreign-Indian |
5 |
11,760 |
49.00 |
|
Total |
8 |
24,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Supreeya Limsunthorn No.
5178
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 |
2,890,805.26 |
3,407,648.53 |
3,122,163.13 |
|
Trade Accounts & Notes Receivable - Overseas |
38,224,667.35 |
32,983,034.00 |
17,073,243.83 |
|
Inventories |
43,550,426.43 |
18,779,341.94 |
3,075,542.97 |
|
Other Current Assets |
970,434.16 |
1,036,095.15 |
423,162.99 |
|
|
|
|
|
|
Total Current Assets
|
85,636,333.20 |
56,206,119.62 |
23,694,112.92 |
|
|
|
|
|
|
Equipment & Vehicle
|
1,421,496.61 |
114,326.01 |
138,027.47 |
|
Total Assets |
87,057,829.81 |
56,320,445.63 |
23,832,140.39 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
57,464,196.81 |
44,715,901.79 |
19,158,458.13 |
|
Accrued Income Tax |
- |
- |
13,740.24 |
|
Accrued Expenses |
210,817.66 |
239,828.85 |
102,299.36 |
|
Other Current Liabilities |
459,487.22 |
765,483.40 |
167,437.92 |
|
|
|
|
|
|
Total Current Liabilities |
58,134,501.69 |
45,721,214.04 |
19,441,935.65 |
|
Total Liabilities |
58,134,501.69 |
45,721,214.04 |
19,441,935.65 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 24,000 shares
in 2012; 8,000
shares in 2011 & 4,000 shares
in 2010 |
24,000,000.00 |
8,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
24,000,000.00 |
8,000,000.00 |
4,000,000.00 |
|
Retained Earning-
Unappropriated |
4,923,328.12 |
2,599,231.59 |
390,204.74 |
|
Total Shareholders' Equity |
28,923,328.12 |
10,599,231.59 |
4,390,204.74 |
|
Total Liabilities &
Shareholders' Equity |
87,057,829.81 |
56,320,445.63 |
23,832,140.39 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
Jan. 5,
2010 – Dec.
31, 2010 |
|
|
|
|
|
|
Sales Income |
88,592,106.44 |
77,323,456.55 |
24,954,992.81 |
|
Other Income |
96,839.75 |
- |
- |
|
Gain on Exchange
Rate |
- |
1,146,491.44 |
52,655.25 |
|
Total Revenues |
88,688,946.19 |
78,469,947.99 |
25,007,648.06 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
73,915,720.39 |
67,250,350.48 |
21,266,083.98 |
|
Selling Expenses |
6,752,421.37 |
3,563,344.31 |
1,379,607.27 |
|
Administrative Expenses |
4,891,600.25 |
4,500,451.06 |
1,928,011.83 |
|
Total Expenses |
85,559,742.01 |
75,314,145.85 |
24,573,703.08 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
3,129,204.18 |
3,155,802.14 |
433,944.98 |
|
Financial Cost |
[65,781.59] |
- |
- |
|
Profit / [Loss] before Income
Tax |
3,063,422.59 |
3,155,802.14 |
433,944.98 |
|
Income Tax |
[739,326.06] |
[946,775.29] |
[43,740.24] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,324,096.53 |
2,209,026.85 |
390,204.74 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.47 |
1.23 |
1.22 |
|
QUICK RATIO |
TIMES |
0.71 |
0.80 |
1.04 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
62.32 |
676.34 |
180.80 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
1.37 |
1.05 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
215.05 |
101.92 |
52.79 |
|
INVENTORY TURNOVER |
TIMES |
1.70 |
3.58 |
6.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
157.49 |
155.69 |
249.72 |
|
RECEIVABLES TURNOVER |
TIMES |
2.32 |
2.34 |
1.46 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
283.76 |
242.69 |
328.83 |
|
CASH CONVERSION CYCLE |
DAYS |
88.78 |
14.92 |
(26.32) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.43 |
86.97 |
85.22 |
|
SELLING & ADMINISTRATION |
% |
13.14 |
10.43 |
13.25 |
|
INTEREST |
% |
0.07 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
16.68 |
14.51 |
14.99 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.53 |
4.08 |
1.74 |
|
NET PROFIT MARGIN |
% |
2.62 |
2.86 |
1.56 |
|
RETURN ON EQUITY |
% |
8.04 |
20.84 |
8.89 |
|
RETURN ON ASSET |
% |
2.67 |
3.92 |
1.64 |
|
EARNING PER SHARE |
BAHT |
96.84 |
276.13 |
97.55 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.67 |
0.81 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.01 |
4.31 |
4.43 |
|
TIME INTEREST EARNED |
TIMES |
47.57 |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
14.57 |
209.85 |
|
|
OPERATING PROFIT |
% |
(0.84) |
627.24 |
|
|
NET PROFIT |
% |
5.21 |
466.12 |
|
|
FIXED ASSETS |
% |
1,143.37 |
(17.17) |
|
|
TOTAL ASSETS |
% |
54.58 |
136.32 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 14.57%. Turnover has increased from THB
77,323,456.55 in 2011 to THB 88,592,106.44 in 2012. While net profit has
increased from THB 2,209,026.85 in 2011 to THB 2,324,096.53 in 2012. And total
assets has increased from THB 56,320,445.63 in 2011 to THB 87,057,829.81 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
16.68 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
2.62 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
2.67 |
Impressive |
Industrial Average |
0.89 |
|
Return on Equity |
8.04 |
Impressive |
Industrial Average |
4.08 |
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 16.68%. 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 2.62% 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
2.67%, 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 8.04%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.47 |
Impressive |
Industrial Average |
1.32 |
|
Quick Ratio |
0.71 |
|
|
|
|
Cash Conversion Cycle |
88.78 |
|
|
|
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 1.47 times in 2012, increased from 1.23 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 higher, indicated that company was an
efficient operator in a dominant position within its industry.
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 0.71 times in 2012,
decreased from 0.8 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 89 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.67 |
Impressive |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
2.01 |
Satisfactory |
Industrial Average |
3.43 |
|
Times Interest Earned |
47.57 |
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 47.57 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 0.67 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 |
62.32 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.02 |
Deteriorated |
Industrial Average |
34.63 |
|
Inventory Conversion Period |
215.05 |
|
|
|
|
Inventory Turnover |
1.70 |
Deteriorated |
Industrial Average |
89.31 |
|
Receivables Conversion Period |
157.49 |
|
|
|
|
Receivables Turnover |
2.32 |
Deteriorated |
Industrial Average |
44.32 |
|
Payables Conversion Period |
283.76 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.32 and 2.34 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 102 days at the
end of 2011 to 215 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.58 times in year 2011 to 1.7 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.02 times and 1.37
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 Stable
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.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.