MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
BRIGHT STAR
DIAMOND CO., LTD. |
|
|
|
|
Registered Office : |
Suite 160-161, 12th Floor, The Executive House, 410 Surawong Road, Siphaya,Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.01.2013 |
|
|
|
|
Date of Incorporation : |
10.02.1993 |
|
|
|
|
Com. Reg. No.: |
0105536015710 [Former
: 1292/2536] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in
importing and distributing
of diamonds, gemstones
and jewelry products. |
|
|
|
|
No of Employees : |
03 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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
BRIGHT STAR
DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : SUITE
160-161, 12th
FLOOR, THE EXECUTIVE
HOUSE,
410 SURAWONG
ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2237-8051-2,
2234-7648
FAX :
[66] 2237-6110
E-MAIL
ADDRESS : prakashbamb@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536015710 [Former
: 1292/2536]
TAX
ID NO. : 3011229651
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 : JANUARY 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAKASH CHAND BAMB,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS AND
JEWELLERY PRODUCTS
IMPORTER AND
DISTRIBUTOR
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 February
10, 1993 as
a private limited
company under the name style BRIGHT
STAR DIAMOND CO.,
LTD., by Thai and Indian
groups, in order to import and
distribute diamond and jewelry products to
local market. It currently employs
3 staff.
The subject’s registered address
was initially at Suite 160-161, 15th Flr., The
Executive House, 410 Surawong Rd.,
Siphaya, Bangrak, Bangkok
10500.
In 2014, the subject’s
registered address was
relocated to 12th Floor in
the same building,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prakash Chand
Bamb |
|
Indian |
50 |
|
Mr. Arjit Mehta |
|
Indian |
51 |
|
Mr. Ghisalal Bamb |
|
Indian |
68 |
|
Mr. Therdsak Lertmongkolwanich |
|
Thai |
58 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prakash Chand
Bamb is the
Managing Director.
He is Indian
nationality with the
age of 50
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing and
distributing of diamonds,
gemstones and jewelry
products.
PURCHASE
90% of the
products is imported
from India, Republic
of China and
Hong Kong, the
remaining 10% is
purchased from local
suppliers.
SALES [LOCAL]
100% of the
products is sold
locally by wholesale
to traders, manufacturers
and end-users.
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.
RELATED AND AFFILIATED
COMPANY
Blue Star Diamond
Co., Ltd.
Business Type : Importer and distributor of
diamonds and gemstones.
Address : Suite 160-161, 12th
Flr., The Executive House,
410 Surawong
Rd., Siphaya, Bangrak,
Bangkok 10500
CREDIT
Sales are by
cash or on
the credit term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
EMPLOYMENT
The subject employs
3 staff [office
and sales 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’s business in
2011-2012 was moderate. However,
slow consumption has
seen since the
third quarter of 2013,
and its business
has been slowing down.
Shrinking consumer spending
is continuing from
sluggish economy and
political turmoil.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100
each.
On August 2, 2002,
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
May 31, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Prakash Chand
Bamb Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan, Bangkok 10600
|
40,000 |
26.67 |
|
Mr. Therdsak Lertmongkolwanich Nationality: Thai Address : 12/2
Trok Petchploy, Siphya,
Bangrak, Bangkok |
40,000 |
26.67 |
|
Mr. Pornchai Lertthanasupakij Nationality: Thai Address : 361/4
Mahaprutharam, Bangrak, Bangkok |
20,000 |
13.33 |
|
Ms. Pranee Klinhom Nationality: Thai Address : 5
Moo 9, Bangpai,
Huaykrachaow,
Kanchanaburi |
16,500 |
11.00 |
|
Mr. Ghisalal Bamb Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan,
Bangkok 10600 |
15,000 |
10.00 |
|
Mr. Bett Prasart
Pant Nationality: Indian Address : 410/160-161
Surawong Rd., Suriyawongse, Bangrak,
Bangkok |
13,500 |
9.00 |
|
Mr. Ajit Mehta Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan,
Bangkok 10600 |
5,000 |
3.33 |
Total Shareholders : 7
Share Structure [as
at May 31,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
76,500 |
51.00 |
|
Foreign-Indian |
4 |
73,500 |
49.00 |
|
Total |
7 |
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 January 31, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
454,835.08 |
420,738.12 |
229,075.45 |
|
Trade Accounts Receivable |
2,031,740.40 |
5,378,209.52 |
4,027,359.55 |
|
Inventories |
16,014,230.62 |
14,405,593.54 |
18,692,464.09 |
|
Total Current
Assets |
18,500,806.10 |
20,204,541.18 |
22,948,899.09 |
|
|
|
|
|
|
Fixed Assets |
1,618,400.67 |
1,740,394.40 |
1,894,386.89 |
|
Other Assets |
177,874.77 |
1,000.00 |
46,000.00 |
|
Total Assets
|
20,297,081.54 |
21,945,935.58 |
24,889,285.98 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
6,299,588.21 |
7,652,136.01 |
9,140,329.07 |
|
Accrued Income Tax |
14,990.00 |
106,301.69 |
43,800.00 |
|
Accrued Expenses |
49,634.24 |
63,176.39 |
80,164.70 |
|
Pre-received for Goods |
280,560.00 |
280,560.00 |
280,560.00 |
|
Total Current Liabilities
|
6,644,772.45 |
8,102,174.09 |
9,544,853.77 |
|
|
|
|
|
|
Loan from Bank |
5,563,085.78 |
5,901,519.26 |
6,282,952.73 |
|
Total Liabilities |
12,207,858.23 |
14,003,693.35 |
15,827,806.50 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized &
issued 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 |
[6,910,776.69] |
[7,057,757.77] |
[5,938,520.52] |
|
Total
Shareholders' Equity |
8,089,223.31 |
7,942,242.23 |
9,061,479.48 |
|
Total
Liabilities & Shareholders' Equity |
20,297,081.54 |
21,945,935.58 |
24,889,285.98 |
PROFIT & LOSS ACCOUNT
|
Sales |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
17,734,366.79 |
22,353,558.08 |
16,994,683.77 |
|
Other Income |
335,521.96 |
88,206.18 |
727,635.10 |
|
Total Sales
|
18,069,888.75 |
22,441,764.26 |
17,722,318.87 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
13,943,405.04 |
18,638,586.68 |
14,189,301.11 |
|
Selling Expenses |
450,466.55 |
707,951.58 |
551,026.65 |
|
Administrative Expenses |
2,881,096.06 |
3,465,514.13 |
3,352,337.07 |
|
Total Expenses |
17,274,967.65 |
22,812,052.39 |
18,092,664.83 |
|
Profit / [Loss] before
Finance Cost & Income Tax |
794,921.10 |
[370,288.13] |
[370,345.96] |
|
Finance Cost |
[544,900.02] |
[581,297.43] |
[514,510.16] |
|
Profit / [Loss] before Income Tax |
250,021.08 |
[951,585.56] |
[884,856.12] |
|
Income Tax |
[103,040.00] |
[167,651.69] |
[114,150.00] |
|
Net Profit / [Loss] |
146,981.08 |
[1,119,237.25] |
[999,006.12] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.78 |
2.49 |
2.40 |
|
QUICK RATIO |
TIMES |
0.37 |
0.72 |
0.45 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
10.96 |
12.84 |
8.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
1.02 |
0.68 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
419.21 |
282.11 |
480.84 |
|
INVENTORY TURNOVER |
TIMES |
0.87 |
1.29 |
0.76 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.82 |
87.82 |
86.50 |
|
RECEIVABLES TURNOVER |
TIMES |
8.73 |
4.16 |
4.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
164.91 |
149.85 |
235.12 |
|
CASH CONVERSION CYCLE |
DAYS |
296.12 |
220.07 |
332.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
78.62 |
83.38 |
83.49 |
|
SELLING & ADMINISTRATION |
% |
18.79 |
18.67 |
22.97 |
|
INTEREST |
% |
3.07 |
2.60 |
3.03 |
|
GROSS PROFIT MARGIN |
% |
23.27 |
17.01 |
20.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.48 |
(1.66) |
(2.18) |
|
NET PROFIT MARGIN |
% |
0.83 |
(5.01) |
(5.88) |
|
RETURN ON EQUITY |
% |
1.82 |
(14.09) |
(11.02) |
|
RETURN ON ASSET |
% |
0.72 |
(5.10) |
(4.01) |
|
EARNING PER SHARE |
BAHT |
0.98 |
(7.46) |
(6.66) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.64 |
0.64 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.51 |
1.76 |
1.75 |
|
TIME INTEREST EARNED |
TIMES |
1.46 |
(0.64) |
(0.72) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(20.66) |
31.53 |
|
|
OPERATING PROFIT |
% |
(314.68) |
(0.02) |
|
|
NET PROFIT |
% |
113.13 |
(12.04) |
|
|
FIXED ASSETS |
% |
(7.01) |
(8.13) |
|
|
TOTAL ASSETS |
% |
(7.51) |
(11.83) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -20.66%. Turnover has decreased from THB
22,353,558.08 in 2012 to THB 17,734,366.79 in 2013. While net profit has
increased from THB -1,119,237.25 in 2012 to THB 146,981.08 in 2013. And total
assets has decreased from THB 21,945,935.58 in 2012 to THB 20,297,081.54 in
2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.27 |
Impressive |
Industrial
Average |
3.01 |
|
Net Profit Margin |
0.83 |
Impressive |
Industrial
Average |
0.58 |
|
Return on Assets |
0.72 |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
1.82 |
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 sales 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 23.27%. 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 0.83%, 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 0.72%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is 1.82%.
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 |
2.78 |
Impressive |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
296.12 |
|
|
|
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 2.78 times in 2013, increased from 2.49 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 0.37 times in 2013,
decreased from 0.72 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 297 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
1.51 |
Satisfactory |
Industrial
Average |
2.73 |
|
Times Interest Earned |
1.46 |
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 1.46 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 0.6 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
10.96 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.87 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
419.21 |
|
|
|
|
Inventory Turnover |
0.87 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
41.82 |
|
|
|
|
Receivables Turnover |
8.73 |
Impressive |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
164.91 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.73 and 4.16 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sales. 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 increased from 282 days at the
end of 2012 to 419 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 1.29 times in year 2012 to 0.87 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.87 times and 1.02
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
UK Pound |
1 |
Rs.99.61 |
|
Euro |
1 |
Rs.88.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.