MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
BLUE STAR DAIMOND CO., LTD. |
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Registered Office : |
Unit 160-161, 12th Floor, The Executive House, 410/160-161 Surawong Road, Siphaya, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
08.07.1994 |
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Com. Reg. No.: |
0105537079312 |
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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 wide range of semi-precious stones, diamond and jewelry products as well as exporting of local diamonds and gemstones. |
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No of Employees : |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 |
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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
BLUE
STAR DAIMOND CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : UNIT
160-161, 12th FLOOR,
THE EXECUTIVE HOUSE,
410/160-161
SURAWONG ROAD, SIPHAYA,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2233-5000
EXT. 160, 2237-8051
FAX :
[66] 2233-5000
EXT. 161, 2237-6110
E-MAIL
ADDRESS : bragashbamb@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1994
REGISTRATION
NO. : 0105537079312 [Former : 1791/2537]
TAX
ID NO. : 3011449080
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AJIT MEHTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : JEWELRY, DAIMONDS
AND GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE
PROFILE
|
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 8,
1994 as a
private limited company under
the name style
BLUE STAR DIAMOND CO.,
LTD., by Thai
and Indian groups,
with the business
objective to import
and distribute wide
range of jewelry
products to domestic
market. It currently
employs 3 staff.
The subject’s registered
address is Unit
160-161, 12th Floor,
The Executive House, 410/160-161 Surawong
Rd., Siphaya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ajit Mehta |
|
Indian |
51 |
|
Mr. Ghisalal Bamb |
|
Indian |
68 |
|
Mr. Naveen Jane |
|
Indian |
37 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ajit Mehta is
the Managing Director.
He is Indian
nationality with the
age of 51 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
wide range of semi-precious stones,
diamond and jewelry
products as well
as exporting of
local diamonds and
gemstones.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in India,
Republic of China
and South Africa.
SALES
90% of the
products is sold
locally by wholesale to dealers, the
remaining 10% is
exported to Hong Kong.
RELATED AND AFFILIATED COMPANY
Bright Star Diamond
Co., Ltd.
Business Type :
Importer and distributor
of diamonds, gemstones
and 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
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
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 3 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The
subject has been firmly established for almost 20
years as an
importer, distributor and
exporter of diamond,
gemstone and jewelry
products. Its business
performance in 2013
was moderate. Generally, its
business has encountered slow
growth due to
many unfavorable factors
such as political
conflict and low
consumer spending which
has affected its
sales.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 5,000,000 divided into
50,000 shares of
Bht. 100 each.
On
January 17, 2005, the
capital was increased
to Bht. 15,000,000 divided
into 150,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
October 29, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ajit Mehta Nationality: Indian Address : India |
50,000 |
33.33 |
|
Mrs. Piyathida Manchanda Nationality: Thai Address : 550/146 Asoke-Dindaeng Rd., Dindaeng,
Bangkok |
25,500 |
17.00 |
|
Mr. Apinop Manchanda Nationality: Thai Address : 550/146 Asoke-Dindaeng Rd., Dindaeng,
Bangkok |
25,500 |
17.00 |
|
Mr. Ghisalal Bamb Nationality: Indian Address : Bombay,
India |
20,000 |
13.33 |
|
Mr. Udom Ratsamut Nationality: Thai Address : 52/72
Moo 13, Suanluang,
Bangkok |
5,100 |
3.40 |
|
Mr. Prawit Ngernyaem Nationality: Thai Address : 2350
New Petchburi Rd.,
Bangkapi, Bangkok |
5,100 |
3.40 |
|
Mr. Wathana Chaowarith Nationality: Thai Address : 367
Moo 33, Rai-oy,
Muang,
Ubonratchathani |
5,100 |
3.40 |
|
Mr. Decha Hiran-uthok Nationality: Thai Address : 35
Moo 3, Krasiew,
Samchuk, Suphanburi |
5,100 |
3.40 |
|
Mr. Nikom Sripengkaew Nationality: Thai Address : 3
Moo 8, Klongkrathung, Banglane,
Nakornpathom |
5,100 |
3.40 |
|
Mr. Subach Chand Shodari Nationality: Indian Address : India |
3,500 |
2.34 |
Total Shareholders : 10
Share Structure [as
at October 29,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
76,500 |
51.00 |
|
Foreign-Indian |
3 |
73,500 |
49.00 |
|
|
|
|
|
|
Total |
10 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Suchart Srimanjantha No.
3549
BALANCE SHEET [BAHT]
The
latest financial figures
published for June 30,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
433,944.15 |
250,855.61 |
494,756.79 |
|
Trade Accounts Receivable |
1,022,512.54 |
1,222,602.27 |
6,384,761.52 |
|
Inventories |
18,437,732.25 |
13,543,504.81 |
12,185,320.88 |
|
Other Current Assets
|
64,875.00 |
64,875.00 |
64,875.00 |
|
|
|
|
|
|
Total Current Assets
|
19,959,063.94 |
15,081,837.69 |
19,759,714.19 |
|
Total Assets |
19,959,063.94 |
15,081,837.69 |
19,759,714.19 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
11,252,153.92 |
6,858,961.12 |
10,490,564.85 |
|
Accrued Income Tax |
90,732.44 |
15,300.00 |
55,882.17 |
|
Other Current Liabilities |
65,111.95 |
41,761.45 |
53,638.28 |
|
|
|
|
|
|
Total Current Liabilities |
11,407,998.31 |
6,916,022.57 |
10,600,085.30 |
|
Total Liabilities |
11,407,998.31 |
6,916,022.57 |
10,600,085.30 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 150,000 shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning- Unappropriated
|
[6,448,934.37] |
[6,834,184.88] |
[5,840,371.11] |
|
Total Shareholders' Equity |
8,551,065.63 |
8,165,815.12 |
9,159,628.89 |
|
Total Liabilities &
Shareholders' Equity |
19,959,063.94 |
15,081,837.69 |
19,759,714.19 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
19,439,317.82 |
6,524,444.08 |
20,444,989.15 |
|
Other Income |
132,598.51 |
- |
136,373.06 |
|
Total Revenues |
19,571,916.33 |
6,524,444.08 |
20,581,362.21 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
16,922,885.03 |
5,550,435.85 |
18,046,242.85 |
|
Selling Expenses |
10,886.80 |
28,571.86 |
- |
|
Administrative Expenses |
2,123,561.55 |
1,878,352.14 |
1,803,324.89 |
|
Total Expenses |
19,057,333.38 |
7,457,359.85 |
19,849,567.74 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
514,582.95 |
[932,915.77] |
731,794.47 |
|
Financial Cost |
[13,600.00] |
[11,698.00] |
[15,755.00] |
|
Profit / [Loss] before Income Tax |
500,982.95 |
[944,613.77] |
716,039.47 |
|
Income Tax |
[115,732.44] |
[49,200.00] |
[67,672.17] |
|
Net Profit / [Loss] |
385,250.51 |
[993,813.77] |
648,367.30 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.75 |
2.18 |
1.86 |
|
QUICK RATIO |
TIMES |
0.13 |
0.21 |
0.71 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.97 |
0.43 |
1.03 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
397.67 |
890.63 |
246.46 |
|
INVENTORY TURNOVER |
TIMES |
0.92 |
0.41 |
1.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
19.20 |
68.40 |
113.99 |
|
RECEIVABLES TURNOVER |
TIMES |
19.01 |
5.34 |
3.20 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
242.69 |
451.05 |
212.18 |
|
CASH CONVERSION CYCLE |
DAYS |
174.18 |
507.98 |
148.26 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.05 |
85.07 |
88.27 |
|
SELLING & ADMINISTRATION |
% |
10.98 |
29.23 |
8.82 |
|
INTEREST |
% |
0.07 |
0.18 |
0.08 |
|
GROSS PROFIT MARGIN |
% |
13.63 |
14.93 |
12.40 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.65 |
(14.30) |
3.58 |
|
NET PROFIT MARGIN |
% |
1.98 |
(15.23) |
3.17 |
|
RETURN ON EQUITY |
% |
4.51 |
(12.17) |
7.08 |
|
RETURN ON ASSET |
% |
1.93 |
(6.59) |
3.28 |
|
EARNING PER SHARE |
BAHT |
2.57 |
(6.63) |
4.32 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.46 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.33 |
0.85 |
1.16 |
|
TIME INTEREST EARNED |
TIMES |
37.84 |
(79.75) |
46.45 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
197.95 |
(68.09) |
|
|
OPERATING PROFIT |
% |
(155.16) |
(227.48) |
|
|
NET PROFIT |
% |
138.76 |
(253.28) |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
32.34 |
(23.67) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 197.95%. Turnover has increased from THB 6,524,444.08
in 2012 to THB 19,439,317.82 in 2013. While net profit has increased from
THB -993,813.77 in 2012 to THB
385,250.51 in 2013. And total assets has increased from THB 15,081,837.69 in
2012 to THB 19,959,063.94 in 2013.
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
13.63 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
1.98 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
1.93 |
Acceptable |
Industrial Average |
3.55 |
|
Return on Equity |
4.51 |
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 13.63%. 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 1.98%,
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 1.93%.
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 4.51%.
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 |
1.75 |
Impressive |
Industrial Average |
1.60 |
|
Quick Ratio |
0.13 |
|
|
|
|
Cash Conversion Cycle |
174.18 |
|
|
|
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 1.75 times in 2013, decreased from 2.18 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 0.13 times in 2013,
decreased from 0.21 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 175 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
1.33 |
Impressive |
Industrial Average |
2.73 |
|
Times Interest Earned |
37.84 |
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 37.84 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 0.57 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 |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
0.97 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
397.67 |
|
|
|
|
Inventory Turnover |
0.92 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
19.20 |
|
|
|
|
Receivables Turnover |
19.01 |
Impressive |
Industrial Average |
8.23 |
|
Payables Conversion Period |
242.69 |
|
|
|
The company's Account Receivable Ratio is calculated as 19.01 and 5.34 in
2013 and 2012 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 2013
increased from 2012. This would suggest the company had good performance 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 891 days at the
end of 2012 to 398 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.41 times in year 2012 to 0.92 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.97 times and 0.43
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
1.33 |
20.00 |
26.60 |
|
PROFITABILITY
RATIO |
2.33 |
25.00 |
58.25 |
|
LEVERAGE RATIO |
4.00 |
10.00 |
40.00 |
|
ANNUAL GROWTH |
2.40 |
20.00 |
48.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
206.10 |
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
: |
SUB |
|
|
|
|
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.