MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ARISHA DIAMONDS CO., LTD. |
|
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Registered Office : |
28th Floor, Jewelry Trade Center, 919/359 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
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|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
11.04.2007 |
|
|
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Com. Reg. No.: |
0105550040891 |
|
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|
Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in importing, distributing and re-exporting various kinds of diamonds, gemstones and jewelry products, as well as exporting of the Thai jewelry products. |
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No of Employees : |
4 |
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 |
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Payment Behaviour : |
No Complaints |
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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 (30.09.2013) |
Current Rating (01.12.2013) |
|
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
ARISHA
DIAMONDS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 28th FLOOR,
JEWELRY TRADE CENTER,
919/359 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2235-8778,
2630-0810-3
FAX :
[66] 2630-3904
E-MAIL
ADDRESS : arishabkk_acc@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2007
REGISTRATION
NO. : 0105550040891
TAX
ID NO. : 3032600309
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SANCHAI HARPAWAT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
INTERNATIONAL TRADING
COMPANY
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 April 11, 2007
as a private
limited company under the registered
name ARISHA DIAMONDS CO.,
LTD., by Thai groups, with the
objective to be
engaged in diamonds
and jewelry products
trading business. It
currently employs 4
staff.
The
subject’s registered address
is 28th Floor,
Jewelry Trade Center,
919/359 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
Mr. Sanchai Harpawat
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sanchai Harpawat is
the Managing Director.
He is Thai
nationality with the
age of 44 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and re-exporting
various kinds of
diamonds, gemstones and
jewelry products, as
well as exporting
of the Thai jewelry products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in India, South
Africa and Pakistan.
SALES
The products are
sold locally to
wholesalers, manufacturers and
end-users.
EXPORT
The products are
exported to Hong Kong,
Japan, India, Republic
of China 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
according 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
4 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 is an
international trading company
for diamond, gemstone and jewelry
products. Market of
jewelry on quarterly
basis has shrunk
due to weak consumer
consumption caused by political
turmoil and the country’s downward
economy.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sanchai Harpawat Nationality: Thai Address : 410/165
Surawong Rd., Siphya,
Bangrak, Bangkok |
25,500 |
51.00 |
|
Mr. Chamnien Choopirom Nationality: Thai Address : 10/29
Moo 3, T. Bangpleeyai, A.
Bangplaee, Samutprakarn |
5,000 |
10.00 |
|
Mrs. Nartsumita Dhatti Nationality: Thai Address : 40/21
Sutthisarn Rd., Samsennai,
Phyathai, Bangkok |
3,500 |
7.00 |
|
Pol. Lt. Col. Prachaya
Prasarnsuk Nationality: Thai Address : 26/12
Tesabannimitnua Rd., Ladyao,
Jatujak, Bangkok |
3,500 |
7.00 |
|
Mr. Apisit Thongthamsiri Nationality: Thai Address : 4
Yaowaraj Rd., Wangburapapirm,
Phranakorn, Bangkok |
2,500 |
5.00 |
|
Mr. Jesada Panichakul Nationality: Thai Address : 15/9
Moo 1, T. Jombueng, A. Jombueng, Ratchaburi |
2,500 |
5.00 |
|
Mr. Somporn Chat-ariyamongkol Nationality: Thai Address : 56/109
Moo 7, T. Bangkruay, A.
Bangkruay, Nonthaburi |
2,500 |
5.00 |
|
Mr. Suthep Santiparp Nationality: Thai Address : 161/304
Charansanitwong Rd., Bangkhunsri, Bangkoknoi,
Bangkok |
2,500 |
5.00 |
|
Pol. Lt. Col. Jaruwat Chanphen Nationality: Thai Address : 166/983
Moo 1, Seekan,
Donmuang, Bangkok |
2,500 |
5.00 |
Total Shareholders : 9
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chote Ekabusaya
No. 1559
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 |
149,143.02 |
344,867.24 |
85,243.32 |
|
Trade Accounts Receivable |
7,152,404.82 |
3,585,833.00 |
13,067,787.59 |
|
Short-term Loan |
144,915.00 |
99,215.00 |
119,000.00 |
|
Inventories |
33,701,605.70 |
36,961,633.75 |
35,408,037.50 |
|
Other Current Assets |
321,230.82 |
1,239,680.00 |
1,623,023.55 |
|
|
|
|
|
|
Total Current Assets
|
41,469,299.36 |
42,231,228.99 |
50,303,091.96 |
|
Fixed Assets |
430,566.97 |
739,932.58 |
1,070,458.72 |
|
Total Assets |
41,899,866.33 |
42,971,161.57 |
51,373,550.68 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
13,431,679.54 |
12,376,303.17 |
18,493,852.31 |
|
Accrued Income Tax |
89,351.12 |
75,856.92 |
|
|
Other Current Liabilities |
83,478.42 |
383,064.48 |
158,260.77 |
|
|
|
|
|
|
Total Current Liabilities |
13,604,509.08 |
12,835,224.57 |
18,652,113.08 |
|
Long-term Loan |
23,097,230.01 |
25,480,981.99 |
28,560,000.00 |
|
Total Liabilities |
36,701,739.09 |
38,316,206.56 |
47,212,113.08 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning- Unappropriated |
198,126.24 |
[345,044.99] |
[838,562.40] |
|
Total Shareholders' Equity |
5,198,126.24 |
4,654,955.01 |
4,161,437.60 |
|
Total Liabilities & Shareholders' Equity |
41,899,866.33 |
42,971,161.57 |
51,373,550.68 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
26,576,421.11 |
24,358,863.48 |
27,185,552.11 |
|
Other Income |
765,970.02 |
15.02 |
1,252,035.93 |
|
Total Revenues |
27,342,391.13 |
24,358,878.50 |
28,437,588.04 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
22,112,867.82 |
19,839,916.54 |
24,366,641.68 |
|
Selling Expenses |
1,116,031.16 |
890,896.71 |
547,837.03 |
|
Administrative Expenses |
3,480,969.80 |
3,058,690.92 |
2,973,924.11 |
|
Total Expenses |
26,709,868.78 |
23,789,504.17 |
27,888,402.82 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
632,522.35 |
569,374.33 |
549,185.22 |
|
Income Tax |
[89,351.12] |
[75,856.92] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
543,171.23 |
493,517.41 |
549,185.22 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.05 |
3.29 |
2.70 |
|
QUICK RATIO |
TIMES |
0.55 |
0.31 |
0.71 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
61.72 |
32.92 |
25.40 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.63 |
0.57 |
0.53 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
556.29 |
679.99 |
530.39 |
|
INVENTORY TURNOVER |
TIMES |
0.66 |
0.54 |
0.69 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
98.23 |
53.73 |
175.45 |
|
RECEIVABLES TURNOVER |
TIMES |
3.72 |
6.79 |
2.08 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
221.71 |
227.69 |
277.03 |
|
CASH CONVERSION CYCLE |
DAYS |
432.81 |
506.03 |
428.82 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.20 |
81.45 |
89.63 |
|
SELLING & ADMINISTRATION |
% |
17.30 |
16.21 |
12.95 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
19.68 |
18.55 |
14.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.38 |
2.34 |
2.02 |
|
NET PROFIT MARGIN |
% |
2.04 |
2.03 |
2.02 |
|
RETURN ON EQUITY |
% |
10.45 |
10.60 |
13.20 |
|
RETURN ON ASSET |
% |
1.30 |
1.15 |
1.07 |
|
EARNING PER SHARE |
BAHT |
10.86 |
9.87 |
10.98 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.89 |
0.92 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.06 |
8.23 |
11.35 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.10 |
(10.40) |
|
|
OPERATING PROFIT |
% |
11.09 |
3.68 |
|
|
NET PROFIT |
% |
10.06 |
(10.14) |
|
|
FIXED ASSETS |
% |
(41.81) |
(30.88) |
|
|
TOTAL ASSETS |
% |
(2.49) |
(16.36) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 9.1%. Turnover has increased from THB
24,358,863.48 in 2011 to THB 26,576,421.11 in 2012. While net profit has
increased from THB 493,517.41 in 2011 to THB 543,171.23 in 2012. And total
assets has decreased from THB 42,971,161.57 in 2011 to THB 41,899,865.33 in
2012.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
19.68 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
2.04 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
1.30 |
Impressive |
Industrial Average |
0.89 |
|
Return on Equity |
10.45 |
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 19.68%. 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 2.04%, 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
1.3%, 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 10.45%, 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 |
3.05 |
Impressive |
Industrial Average |
1.32 |
|
Quick Ratio |
0.55 |
|
|
|
|
Cash Conversion Cycle |
432.81 |
|
|
|
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 3.05 times in 2012, decreased from
3.29 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 0.55 times in 2012,
increased from 0.31 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 433 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
7.06 |
Risky |
Industrial Average |
3.43 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.88 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 |
61.72 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.63 |
Deteriorated |
Industrial Average |
34.63 |
|
Inventory Conversion Period |
556.29 |
|
|
|
|
Inventory Turnover |
0.66 |
Deteriorated |
Industrial Average |
89.31 |
|
Receivables Conversion Period |
98.23 |
|
|
|
|
Receivables Turnover |
3.72 |
Deteriorated |
Industrial Average |
44.32 |
|
Payables Conversion Period |
221.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.72 and 6.79 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 680 days at the end of 2011 to
556 days at the end of 2012. This represents a positive trend. And Inventory
turnover has increased from 0.54 times in year 2011 to 0.66 times in year 2012.
The company's Total Asset Turnover is calculated as 0.63 times and 0.57
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
1.00 |
20.00 |
20.00 |
|
PROFITABILITY
RATIO |
4.00 |
25.00 |
100.00 |
|
LEVERAGE RATIO |
0.67 |
10.00 |
6.70 |
|
ANNUAL GROWTH |
2.40 |
20.00 |
48.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
207.95 |
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. 59.05 |
|
|
1 |
Rs. 99.61 |
|
Euro |
1 |
Rs. 80.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
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.