MIRA
INFORM REPORT
|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
MANEE DIAM CO., LTD. |
|
|
|
|
Registered Office : |
Suite B, 22nd Floor,
Bangkok Gems & Jewellery Building, 322/54
Surawong Road, Siphya, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
2003 |
|
|
|
|
Com. Reg. No.: |
0105546037112 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
Subject is engaged in importing, distributing and
exporting various kinds
of diamond, gemstone
and jewelry products. |
|
|
|
|
No. of Employees : |
18 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
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 – 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. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. 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 crisis severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has 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 next seven years with a plan to start in 2013.
|
Source
: CIA |
Company name
MANEE DIAM CO., LTD.
SUMMARY
BUSINESS ADDRESS: SUITE B, 22nd FLOOR,
BANGKOK GEMS & JEWELLERY BUILDING, 322/54
SURAWONG ROAD, SIPHYA, BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2631-8990-2,
081 617-6278, 081
481-7327
FAX : [66] 2631-8996
E-MAIL ADDRESS: maneediam@yahoo.com
REGISTRATION ADDRESS: SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2003
REGISTRATION NO.: 0105546037112
TAX ID NO.: 3030856623
CAPITAL REGISTERED: BHT. 50,000,000
CAPITAL PAID-UP: BHT. 50,000,000
SHAREHOLDER’S PROPORTION: THAI
: 51.00%
INDIAN :
49.00%
FISCAL YEAR CLOSING
DATE: DECEMBER 31
LEGAL STATUS: PRIVATE LIMITED
COMPANY
EXECUTIVE: MR. NILESH
SAMBHUBHAI ITALIYA, INDIAN
MANAGING DIRECTOR
NO. OF STAFF: 18
LINES OF BUSINESS : GEMS AND
JEWELRY PRODUCTS
IMPORTER, EXPORTER
AND DISTRIBUTOR
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 March
24, 2003 as
a private limited
company under the
name style MANEE DIAM CO.,
LTD. by Indian
and Thai groups,
in order to
import and export
jewelry products. It
currently employs 18
staff.
The subject’s registered
address was initially
located at 297
Surawong Rd., Suriyawongse, Bangrak,
Bangkok 10500.
In 2005, the subject’s registered
address was relocated
to Suite B, 22nd Floor, Bangkok Gems & Jewellery Building,
322/54 Surawong Rd., Siphya,
Bangrak, Bangkok 10500, and this
is the company’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Sambhubhai Italiya |
|
Indian |
38 |
|
Mrs. Shada Nilesh
Italiya |
|
Indian |
37 |
|
Mr. Amrishkumar Vinodrai
Patel |
|
Indian |
43 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Sambhubhai
Italiya is the
Managing Director.
He is Indian
nationality with the
age of 38 years
old
Mr. Amrishkumar Vinodrai
Patel is the
General Manager.
He is Indian
nationality with the
age of 43 years
old.
BUSINESS OPERATIONS
The subject is engaged in importing, distributing and
exporting various kinds
of diamond, gemstone
and jewelry products.
PURCHASE
The products are
purchased from both
domestic and overseas
suppliers mainly in
India Hong Kong
and Belgium.
SALES
The products are
sold locally by wholesale
to traders and
manufacturers, as well
as exporting to
India, United States
of America, Turkey,
Hong Kong, Republic
of China, Middle
East and European
countries.
MAJOR CUSTOMERS
Nancy Diam Ltd. : Hong
Kong
Pranda Jewelry Public
Company Limited : Thailand
RELATED AND AFFILIATED COMPANY
Zaver Diam Co.,
Ltd.
Business Type :
Importer and distributor
of diamonds
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 18 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 had been enjoying an outstanding performance in
the previous years. It creates elegant diamond studded gold jewelry for both
domestic and overseas markets. The jewelry industry has
been revised upward in view
of an improving economic outlook.
Subject reported an
excellent business in
2012.
However, in the
year 2013 jewelry
consumption both domestic
and exports seems
to be slowing
down from economic
uncertainty and decline
domestic purchasing power.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each.
The capital was
increased later as
follows:
Bht. 4,000,000
on April 29,
2003
Bht. 10,000,000
on January 17,
2005
Bht. 15,000,000
on May 23,
2008
Bht. 40,000,000
on September 14,
2012
Bht. 50,000,000
on June 20,
2013
The latest registered capital was
increased to Bht. 50,000,000 divided
into 500,000 shares of
Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE :
[as at June
17, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nilesh Sambhubhai
Italiya Nationality: Indian Address : 40/46
Soi Sukhumvit 18,
Sukhumvit Rd.,
Klongtoey, Bangkok |
134,000 |
26.80 |
|
Mr. Suparp Chansri Nationality: Thai Address : 41
Moo 14, Nongjork,
Buengsamphan, Petchaboon |
102,000 |
20.40 |
|
Mrs. Shada Nilesh
Italiya Nationality: Indian Address : 40/46
Soi Sukhumvit 18,
Sukhumvit Rd.,
Klongtoey, Bangkok |
60,000 |
12.00 |
|
Mr. Amrishkumar Vinodrai
Patel Nationality: Indian Address : 5/6
New Rd., Sathorn,
Yannawa, Bangkok |
51,000 |
10.20 |
|
Ms. Jamriang Narkjai Nationality: Thai Address : 443
Moo 8, Laemrangking, Buengnarang,
Pichitr |
51,000 |
10.20 |
|
Mr. Charnnarong Poolsuk Nationality: Thai Address : 9
Moo 6, Saensuk,
Varinchamrab,
Ubonratchathani |
51,000 |
10.20 |
|
Ms. Nujaree Chuenjai Nationality: Thai Address : 6
Moo 5, Suksamran,
Takfah, Nakornsawan |
51,000 |
10.20 |
Total Shareholders : 7
Share Structure [as
at June 17,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
255,000 |
51.00 |
|
Foreign - Indian |
3 |
245,000 |
49.00 |
|
Total |
7 |
500,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :
Ms. Wannee Tangkijsanguan No. 7419
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 & 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
2,093,136.67 |
966,678.11 |
1,098,456.59 |
|
Trade Accounts & Other Receivable
|
295,457,583.40 |
391,467,426.06 |
502,481,379.97 |
|
Inventories |
653,415,923.84 |
750,188,869.21 |
558,221,779.07 |
|
|
|
|
|
|
Total Current Assets
|
950,966,643.91 |
1,142,622,973.38 |
1,061,801,615.63 |
|
Fixed Assets |
8,092,933.69 |
8,607,484.48 |
9,158,504.98 |
|
Fixed Deposit-Lending Guarantee |
67,813,079.32 |
15,324,000.72 |
15,235,516.91 |
|
Total Assets |
1,026,872,656.92 |
1,166,554,458.58 |
1,086,195,637.52 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
208,650,957.53 |
100,245,066.75 |
60,029,288.68 |
|
Trade Accounts & Other
Payable |
463,988,940.47 |
764,185,216.47 |
729,453,452.30 |
|
Accrued Income Tax |
1,902,843.50 |
1,523,721.79 |
1,295,969.43 |
|
|
|
|
|
|
Total Current Liabilities |
674,542,741.50 |
865,954,005.01 |
790,778,710.41 |
|
Long-term Loan |
262,000,000.00 |
247,000,000.00 |
247,000,000.00 |
|
Total Liabilities |
936,542,741.50 |
1,112,954,005.01 |
1,037,778,710.41 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
& fully paid share
capital 400,000
shares in 2012;
and 150,000 shares in
2011 & 2010
respectively |
40,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
40,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning |
50,329,915.42 |
38,600,453.57 |
33,416,927.11 |
|
Total Shareholders' Equity |
90,329,915.42 |
53,600,453.57 |
48,416,927.11 |
|
Total Liabilities &
Shareholders' Equity |
1,026,872,656.92 |
1,166,554,458.58 |
1,086,195,637.52 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,980,957,807.06 |
1,435,686,177.45 |
1,255,348,632.05 |
|
Gain on Exchange
Rate |
1,571,811.92 |
- |
15,817,474.51 |
|
Other Income |
648,222.88 |
454,558.52 |
801,406.80 |
|
Total Revenues |
1,983,177,841.86 |
1,436,140,735.97 |
1,271,967,513.36 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,950,174,767.95 |
1,377,059,397.51 |
1,246,599,503.60 |
|
Selling Expenses |
3,264,796.53 |
3,828,242.14 |
2,566,651.33 |
|
Administrative Expenses |
11,372,111.50 |
11,673,968.67 |
10,593,423.37 |
|
Other Expenses-Loss on Exchange Rate |
- |
30,546,223.42 |
- |
|
Total Expenses |
1,964,811,675.98 |
1,423,107,831.74 |
1,259,759,578.30 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
18,366,165.88 |
13,032,904.23 |
12,207,935.06 |
|
Financial Cost |
[3,008,860.53] |
[4,747,655.98] |
[3,196,957.06] |
|
|
|
|
|
|
Profit before Income Tax |
15,357,305.35 |
8,285,248.25 |
9,010,978.00 |
|
Income Tax |
[3,627,843.50] |
[3,101,721.79] |
[2,902,469.43] |
|
Net Profit / [Loss] |
11,729,461.85 |
5,183,526.46 |
6,108,508.57 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.41 |
1.32 |
1.34 |
|
QUICK RATIO |
TIMES |
0.44 |
0.45 |
0.64 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
244.78 |
166.80 |
137.07 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.93 |
1.23 |
1.16 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
122.30 |
198.84 |
163.45 |
|
INVENTORY TURNOVER |
TIMES |
2.98 |
1.84 |
2.23 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.44 |
99.52 |
146.10 |
|
RECEIVABLES TURNOVER |
TIMES |
6.70 |
3.67 |
2.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
86.84 |
202.55 |
213.58 |
|
CASH CONVERSION CYCLE |
DAYS |
89.89 |
95.81 |
95.96 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.45 |
95.92 |
99.30 |
|
SELLING & ADMINISTRATION |
% |
0.74 |
1.08 |
1.05 |
|
INTEREST |
% |
0.15 |
0.33 |
0.25 |
|
GROSS PROFIT MARGIN |
% |
1.67 |
4.12 |
2.02 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.93 |
0.91 |
0.97 |
|
NET PROFIT MARGIN |
% |
0.59 |
0.36 |
0.49 |
|
RETURN ON EQUITY |
% |
12.99 |
9.67 |
12.62 |
|
RETURN ON ASSET |
% |
1.14 |
0.44 |
0.56 |
|
EARNING PER SHARE |
BAHT |
29.32 |
34.56 |
40.72 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.95 |
0.96 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.37 |
20.76 |
21.43 |
|
TIME INTEREST EARNED |
TIMES |
6.10 |
2.75 |
3.82 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
37.98 |
14.37 |
|
|
OPERATING PROFIT |
% |
40.92 |
6.76 |
|
|
NET PROFIT |
% |
126.28 |
(15.14) |
|
|
FIXED ASSETS |
% |
(5.98) |
(6.02) |
|
|
TOTAL ASSETS |
% |
(11.97) |
7.40 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 37.98%. Turnover has increased from THB
1,435,686,177.45 in 2011 to THB 1,980,957,807.06 in 2012. While net profit has increased
from THB 5,183,526.46 in 2011 to THB 11,729,461.85 in 2012. And total assets
has decreased from THB 1,166,554,458.58 in 2011 to THB 1,026,872,656.92 in
2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
1.67 |
Satisfactory |
Industrial Average |
1.88 |
|
Net Profit Margin |
0.59 |
Impressive |
Industrial Average |
0.04 |
|
Return on Assets |
1.14 |
Impressive |
Industrial Average |
0.43 |
|
Return on Equity |
12.99 |
Impressive |
Industrial Average |
1.93 |
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 1.67%. 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 0.59%,
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
1.14%, 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 12.99%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.41 |
Satisfactory |
Industrial Average |
1.72 |
|
Quick Ratio |
0.44 |
|
|
|
|
Cash Conversion Cycle |
89.89 |
|
|
|
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 1.41 times in 2012, increased from 1.32 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 lower.
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 0.44 times in 2012,
decreased from 0.45 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 90 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial Average |
0.76 |
|
Debt to Equity Ratio |
10.37 |
Risky |
Industrial Average |
3.41 |
|
Times Interest Earned |
6.10 |
Impressive |
Industrial Average |
0.28 |
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 6.11 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 0.91 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 Downtrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
244.78 |
Impressive |
Industrial Average |
2.53 |
|
Total Assets Turnover |
1.93 |
Deteriorated |
Industrial Average |
14.17 |
|
Inventory Conversion Period |
122.30 |
|
|
|
|
Inventory Turnover |
2.98 |
Deteriorated |
Industrial Average |
43.91 |
|
Receivables Conversion Period |
54.44 |
|
|
|
|
Receivables Turnover |
6.70 |
Deteriorated |
Industrial Average |
18.17 |
|
Payables Conversion Period |
86.84 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.70 and 3.67 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
increased from 2011. 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 199 days at the
end of 2011 to 122 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.84 times in year 2011 to 2.98 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.93 times and 1.23
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 Downtrend
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.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.