MIRA INFORM REPORT
|
Report Date : |
29.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUN HING DIAMOND CO., LTD. |
|
|
|
|
Registered Office : |
14th Floor, Bangkok Gems and Jewelry Tower, 322/22
Surawong Road, Sipraya, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
01.05.1992 |
|
|
|
|
Com. Reg. No.: |
0105535073210 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing Service of Diamond Cutting and Polishing. |
|
|
|
|
No. of Employees : |
30 |
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 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
SUN HING DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR,
BANGKOK GEMS &
JEWELRY TOWER,
322/22 SURAWONG
ROAD, SIPRAYA, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2267-1222-5,
081 849-9062
FAX :
[66] 2267-1221,
2631-5728
E-MAIL
ADDRESS : sunhing_bangkok@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535073210
TAX
ID NO. : 3011150313
CAPITAL REGISTERED : BHT. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI :
25.80%
CHINESE :
74.20%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NG KIN CHOR,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : DIAMOND CUTTING
AND POLISHING MANUFACTURING SERVICE
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 May 1, 1992
as a private
limited company under the
name style SUN
HING DIAMOND CO.,
LTD., by Chinese
groups, with the
business objective to
provide manufacturing service
of diamond cutting
and polishing to
both local and
overseas markets. It
currently employs approximately 30
staff.
The
subject’s registered address
is 14th Floor, Bangkok
Gems & Jewelry
Tower, 322/22 Surawong
Rd., Sipraya, Bangrak, Bangkok 10500, and this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ng Bong Kung |
|
Chinese |
69 |
|
Mr. Ng Kin Chor |
|
Thai |
62 |
|
Mr. Ho Chikai
Nelson |
|
Chinese |
56 |
|
Mrs. Pornsuk Uem |
|
Thai |
56 |
|
Mrs. Siao Sui
Chu |
|
Chinese |
68 |
|
Mrs. Chung Yuk
Wah Christina |
|
Chinese |
56 |
|
Mr. Tam Kok
Choen |
|
Chinese |
60 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ng Kin Chor is
the Managing Director.
He is Thai
nationality with the
age of 62
years old.
Mrs. Pornsuk Uem
is the General
Manager.
She is Thai
nationality with the
age of 56
years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturing
service of cutting
and polishing diamonds to
both local and
overseas markets.
PURCHASE
The precious stones
are purchased from
both local and
overseas suppliers in
Hong Kong, United
States of America,
India and South
Africa.
SERVICES
The services are
for both local
and overseas customers
in Hong Kong, Europe,
Japan and United
States of America.
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 to the
past two years.
CREDIT
Sales and services
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
L/C at sight
or T.T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The subject employs approximately
30 staff. [office, sales staff
and factory workers]
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is located
in commercial area.
Factory
is located at
9 Gemopolis Industrial
Estate, Sukhapiban 2 Rd., Dokmai,
Praves, Bangkok 10250.
Tel.: [66] 2727-0176-8
Fax: [66] 2727-0181.
COMMENT
The
subject was formed
in 1992 as
a manufacturing service
of diamond cutting
and polishing. Its services
are for local and
international markets. Subject
reported its moderate
sales in 2012.
However, current country’s
economic downturn has
resulted to decline
consumption of jewelry
products in domestic
market. Its business
outlook is likely
to grow at
slow pace.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 40,000,000 divided
into 400,000 shares of
Bht. 100 each.
The
capital was increased
later as the
followings:
Bht.
50,000,000 on June
28, 1993
Bht.
90,000,000 on February
24, 1999
Bht.
200,000,000 on February
8, 2006
The
latest registered capital
was increased to
Bht. 200,000,000 divided into
2,000,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
: [as at April
30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ng Kin
Chor Nationality: Thai Address : 5/19
Saladaeng Road, Silom,
Bangrak, Bangkok |
514,000 |
25.70 |
|
Mrs. Chung Yuk
Wah Christina Nationality: Chinese Address : Republic
of China |
500,000 |
25.00 |
|
Mr. Ho Chikai Nelson Nationality: Chinese Address : Republic
of China |
499,600 |
24.98 |
|
Mr. Ng Bong
Kung Nationality: Chinese Address : Republic
of China |
482,000 |
24.10 |
|
Mrs. Pornsuk Uem Nationality: Thai Address : 5/19
Saladaeng Road, Silom,
Bangrak, Bangkok |
2,000 |
0.10 |
|
Mrs. Siao Sui
Chu Nationality: Chinese Address : Republic
of China |
2,000 |
0.10 |
|
Mr. Tam Kok Choen Nationality: Chinese Address : Republic
of China |
400 |
0.02 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
516,000 |
25.80 |
|
Foreign - Chinese |
5 |
1,484,000 |
74.20 |
|
Total |
7 |
2,000,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :
Mrs. Thipawan Jarupakorn No.
2041
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 |
519,296.18 |
202,840.96 |
39,781.21 |
|
Trade Accounts & Other Receivable |
237,182.03 |
255,847.95 |
241,552.68 |
|
Inventories |
239,987,682.62 |
235,379,754.18 |
210,410,857.22 |
|
Short-term Loan |
94,000.00 |
- |
- |
|
Other Current Assets |
33,735.81 |
65,701.02 |
267,044.82 |
|
|
|
|
|
|
Total Current Assets
|
240,871,896.64 |
235,904,144.11 |
210,959,235.93 |
|
Fixed Assets |
23,698,851.91 |
27,380,254.40 |
31,215,149.66 |
|
Other Non-current Assets |
161,195.24 |
158,601.24 |
153,786.99 |
|
Total Assets |
264,731,943.79 |
263,442,999.75 |
242,328,172.58 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Loan from Financial
Institution |
71,339,683.43 |
77,169,585.32 |
34,283,484.27 |
|
Trade Accounts &
Other Payable |
27,001,664.35 |
14,356,915.47 |
24,747.00 |
|
Accrued Income Tax |
171,014.85 |
335,356.94 |
- |
|
Short-term Loan |
- |
- |
19,579,176.00 |
|
Other Current Liabilities |
158,775.23 |
126,589.82 |
27,006,696.44 |
|
|
|
|
|
|
Total Current Liabilities |
98,671,137.86 |
91,988,447.55 |
80,894,103.71 |
|
Long-term Loan |
3,006,605.50 |
9,006,605.50 |
- |
|
Other Non-current Liabilities |
22,000.00 |
18,000.00 |
18,000.00 |
|
Total Liabilities |
101,699,743.36 |
101,013,053.05 |
80,912,103.71 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,000,000 shares |
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
|
|
|
|
|
Capital Paid |
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
Retained Earning-
Unappropriated |
[36,967,799.57] |
[37,570,053.30] |
[38,583,931.13] |
|
Total Shareholders' Equity |
163,032,200.43 |
162,429,946.70 |
161,416,068.87 |
|
Total Liabilities &
Shareholders' Equity |
264,731,943.79 |
263,442,999.75 |
242,328,172.58 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
106,468,859.13 |
105,785,609.30 |
102,167,717.00 |
|
Other Income |
4,067,931.45 |
1,598,828.68 |
4,247,154.00 |
|
Total Revenues |
110,536,790.58 |
107,384,437.98 |
106,414,871.00 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
102,048,827.34 |
96,692,125.88 |
98,724,502.00 |
|
Selling Expenses |
49,728.86 |
429,330.08 |
163,123.00 |
|
Administrative Expenses |
3,630,616.50 |
3,576,920.01 |
3,677,093.00 |
|
Other Expenses |
- |
2,739,391.87 |
- |
|
Total Expenses |
105,729,172.70 |
103,437,767.84 |
102,564,718.00 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
4,807,617.88 |
3,946,670.14 |
3,850,153.00 |
|
Financial Cost |
[3,919,349.30] |
[2,491,476.33] |
[2,528,597.00] |
|
Income Tax |
[286,014.85] |
[441,315.98] |
[479,927.00] |
|
|
|
|
|
|
Net Profit / [Loss] |
602,253.73 |
1,013,877.83 |
841,629.00 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.44 |
2.56 |
2.61 |
|
QUICK RATIO |
TIMES |
0.01 |
0.00 |
0.00 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.49 |
3.86 |
3.27 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.40 |
0.40 |
0.42 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
858.37 |
888.53 |
777.92 |
|
INVENTORY TURNOVER |
TIMES |
0.43 |
0.41 |
0.47 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
0.81 |
0.88 |
0.86 |
|
RECEIVABLES TURNOVER |
TIMES |
448.89 |
413.47 |
422.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
96.58 |
54.20 |
0.09 |
|
CASH CONVERSION CYCLE |
DAYS |
762.60 |
835.21 |
778.69 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.85 |
91.40 |
96.63 |
|
SELLING & ADMINISTRATION |
% |
3.46 |
3.79 |
3.76 |
|
INTEREST |
% |
3.68 |
2.36 |
2.47 |
|
GROSS PROFIT MARGIN |
% |
7.97 |
10.11 |
7.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.52 |
3.73 |
3.77 |
|
NET PROFIT MARGIN |
% |
0.57 |
0.96 |
0.82 |
|
RETURN ON EQUITY |
% |
0.37 |
0.62 |
0.52 |
|
RETURN ON ASSET |
% |
0.23 |
0.38 |
0.35 |
|
EARNING PER SHARE |
BAHT |
0.30 |
0.51 |
0.42 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.38 |
0.38 |
0.33 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.62 |
0.62 |
0.50 |
|
TIME INTEREST EARNED |
TIMES |
1.23 |
1.58 |
1.52 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
0.65 |
3.54 |
|
|
OPERATING PROFIT |
% |
21.81 |
2.51 |
|
|
NET PROFIT |
% |
(40.60) |
20.47 |
|
|
FIXED ASSETS |
% |
(13.45) |
(12.29) |
|
|
TOTAL ASSETS |
% |
0.49 |
8.71 |
|
ANNUAL GROWTH: SATISFACTORY
An annual sales growth is 0.65%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.97 |
Deteriorated |
Industrial
Average |
49.42 |
|
Net Profit Margin |
0.57 |
Impressive |
Industrial
Average |
(0.40) |
|
Return on Assets |
0.23 |
Impressive |
Industrial
Average |
(0.36) |
|
Return on Equity |
0.37 |
Deteriorated |
Industrial
Average |
2.16 |
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 7.97%. When compared with
the industry average, the ratio of the company was lower, this indicated that
company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 0.57%,
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 0.23%, 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. When compared with the industry
average, it was lower, the company's figure is 0.37%.
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 |
2.44 |
Impressive |
Industrial
Average |
1.16 |
|
Quick Ratio |
0.01 |
|
|
|
|
Cash Conversion Cycle |
762.60 |
|
|
|
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 2.44 times in 2012, decreased from 2.56 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 0.01 times in 2012,
increased from 0 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 763 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.38 |
Impressive |
Industrial
Average |
1.39 |
|
Debt to Equity Ratio |
0.62 |
Impressive |
Industrial
Average |
(3.58) |
|
Times Interest Earned |
1.23 |
Impressive |
Industrial
Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors
and obligors have committed to the company versus what the shareholders have
committed. A lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.23 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 0.38 less than 0.5, most of the company's
assets are financed through equity.
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 |
4.49 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.40 |
Deteriorated |
Industrial
Average |
0.90 |
|
Inventory Conversion Period |
858.37 |
|
|
|
|
Inventory Turnover |
0.43 |
Deteriorated |
Industrial
Average |
1.68 |
|
Receivables Conversion Period |
0.81 |
|
|
|
|
Receivables Turnover |
448.89 |
Impressive |
Industrial
Average |
1.70 |
|
Payables Conversion Period |
96.58 |
|
|
|
The company's Account Receivable Ratio is calculated as 448.89 and
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 889 days at the
end of 2011 to 858 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 0.41 times in year 2011 to 0.43 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.4 times and 0.4
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.59.08 |
|
|
1 |
Rs.99.20 |
|
Euro |
1 |
Rs.80.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
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.