MIRA
INFORM REPORT
|
Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
RCAN JEWELLERY CO., LTD. |
|
|
|
|
Registered Office : |
2210/30, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
31.01.2008 |
|
|
|
|
Com. Reg. No.: |
0105551013111 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in importing and distributing
of diamonds and
gemstones, as well
as exporting of
fine jewelry, such as 18k
white gold pendant,
18k white gold
diamond jewelry with
emerald, and 18k
white gold necklace
& earrings set |
|
|
|
|
No. of Employees : |
08 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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
RCAN JEWELLERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2210/30 NARATHIWAS
RATCHANAKARIN ROAD,
CHONGNONSI,
YANNAWA,
BANGKOK 10120, THAILAND
TELEPHONE : [66] 2678-0050-1, 081 899-8011
FAX :
[66] 2678-0052
E-MAIL
ADDRESS : rcanjewellerybkk@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0105551013111
TAX
ID NO. : 3032935173
CAPITAL REGISTERED : BHT. 35,000,000
CAPITAL PAID-UP : BHT.
35,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIT RASIKLAL
GANDHI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 January 31,
2008 as a
private limited company
under the name style
RCAN JEWELLERY CO.,
LTD., by Thai and
Indian groups, in order
to operate a
jewelry trading business.
It currently employs
8 staff.
The
subject’s registered address
was initially at Bangkok
Gems and Jewelry
Building, 322/15 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
On February 25, 2009, the subject’s
registered address was relocated to
2210/30 Narathiwas Ratchanakarin
Rd., Chongnonsi, Yannawa, Bangkok
10120, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amit Rasiklal Gandhi |
|
Indian |
40 |
|
Mr. Nirav Rasiklal Gandhi |
|
Indian |
37 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Amit Rasiklal Gandhi is
the Managing Director.
He is Indian
nationality with the
age of 40 years
old.
Mr. Nirav Rasiklal Gandhi
is the Assistant
Managing Director.
He is Indian
nationality with the
age of 37 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing
and distributing of diamonds and
gemstones, as well
as exporting of
fine jewelry, such as 18k
white gold pendant,
18k white gold
diamond jewelry with
emerald, and 18k
white gold necklace
& earrings set .
PURCHASE
The subject hires
local contract manufacture
for the production
of fine jewelry,
while diamonds and
gemstones are imported
from India and
Hong Kong.
SALES [LOCAL]
Diamonds and gemstones
are sold locally
by wholesale to jewelry
manufacturers.
EXPORT
100% of jewelry
products is exported
to India, Japan,
Hong Kong, U.S.A., Turkey, Republic of
China and Middle
East countries.
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 for
the past two
years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject
currently employs 8
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 was formed in 2008 is
an importer, distributor
and exporter of
diamond, gemstones and jewelry products. The
subject’s business was
improved in the
year 2013
as
well as market
expansion in overseas
also helping increased
its sales.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 divided
into 40,000 shares of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 10,000,000
on June 10,
2009
Bht. 16,000,000
on May 9,
2011
Bht. 35,000,000
on November 2, 2011
The
latest registered capital
was increased to
Bht. 35,000,000 divided into
350,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[As
at April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal Gandhi Nationality: Indian Address : 111/29
Soi Sribampen, Thungmahamek,
Sathorn, Bangkok |
100,000 |
28.57 |
|
Mr. Nirav Rasiklal Gandhi Nationality: Indian Address : 111/29
Soi Sribampen, Thungmahamek,
Sathorn, Bangkok |
71,500 |
20.43 |
|
Mr. Boonlom Khamnont Nationality: Thai Address : 44
Moo 4, T.
Koodhae, A. Lerngnoktha, Yasothorn |
35,700 |
10.20 |
|
Mrs. Chotika Yimchan Nationality: Thai Address : 60/7
Moo 4, T.
Bangmaenang, A. Muang, Nonthaburi |
35,700 |
10.20 |
|
Ms. Varanya Buatoom Nationality: Thai Address : 78
Moo 9, T. Taladkwan, A.
Muang, Nonthaburi |
35,700 |
10.20 |
|
Ms. Bang-on Nuathong Nationality: Thai Address : 9
Moo 13, T. Sarklek, A.
Sarklek, Pichit |
35,700 |
10.20 |
|
Mr. Narong Rongjong Nationality: Thai Address : 172
Moo 1, T. Banmuang, A. Nernmaprang, Phisanuloke |
35,700 |
10.20 |
Total Shareholders : 7
Share Structure
[As at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
178,500 |
51.00 |
|
Foreign - Indian |
2 |
171,500 |
49.00 |
|
Total |
7 |
350,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Sirirat Adam No.
8820
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
187,936.00 |
133,773.88 |
124,261.44 |
|
Trade Accounts & Other
Receivable |
5,455,549.95 |
44,046,225.77 |
105,776,158.20 |
|
Inventories |
221,885,019.76 |
184,818,638.88 |
107,741,023.58 |
|
|
|
|
|
|
Total Current Assets
|
227,528,505.71 |
228,998,638.53 |
213,641,443.22 |
|
Fixed Assets |
13,754,252.12 |
14,171,363.51 |
15,116,414.18 |
|
Other Non-current Assets |
235,347.66 |
235,347.66 |
235,347.66 |
|
Total Assets |
241,518,105.49 |
243,405,349.70 |
228,993,205.06 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
91,030,241.02 |
59,966,823.86 |
60,031,571.65 |
|
Trade Accounts and Other
Payable |
43,325,928.78 |
28,342,159.75 |
25,199,420.78 |
|
Short-term Loan from
Person or Related Company |
63,350,017.86 |
112,830,017.86 |
102,030,017.86 |
|
Accrued Income Tax |
360,650.55 |
362,987.25 |
344,657.15 |
|
Other Current Liabilities |
258,833.48 |
123,203.99 |
403,374.00 |
|
|
|
|
|
|
Total Current Liabilities |
198,325,671.69 |
201,625,192.71 |
188,009,041.44 |
|
Long-term Loan from Financial Institutions |
1,081,951.65 |
1,451,949.01 |
1,814,936.26 |
|
Total Liabilities |
199,407,623.34 |
203,077,141.72 |
189,823,977.70 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
350,000 shares
|
35,000,000.00 |
35,000,000.00 |
35,000,000.00 |
|
|
|
|
|
|
Capital Paid |
35,000,000.00 |
35,000,000.00 |
35,000,000.00 |
|
Retained Earning -
Unappropriated |
7,110,482.15 |
5,328,207.98 |
4,169,227.36 |
|
Total Shareholders' Equity |
42,110,482.15 |
40,328,207.98 |
39,169,227.36 |
|
Total Liabilities &
Shareholders' Equity |
241,518,105.49 |
243,405,349.70 |
228,993,205.06 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
111,635,904.89 |
78,081,590.10 |
153,487,559.52 |
|
Others Income |
1,809,515.01 |
3,080,959.77 |
4,162,753.28 |
|
Total Revenues |
113,445,419.90 |
81,162,549.87 |
157,650,312.80 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
97,048,944.37 |
65,252,111.55 |
140,516,152.83 |
|
Selling Expenses |
2,611,892.86 |
2,131,112.26 |
2,554,023.83 |
|
Administrative Expenses |
5,933,194.04 |
7,941,341.57 |
8,671,470.05 |
|
Total Expenses |
105,594,031.27 |
75,324,565.38 |
151,741,646.71 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
7,851,388.63 |
5,837,984.49 |
5,908,666.09 |
|
Financial Cost |
[5,954,977.68] |
[4,325,799.88] |
[3,566,413.35] |
|
Profit / [Loss] before Income
Tax |
1,896,410.95 |
1,512,184.61 |
2,342,252.74 |
|
Income Tax |
[382,562.99] |
[353,203.99] |
[755,874.00] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,513,847.96 |
1,158,980.62 |
1,586,378.74 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.14 |
1.14 |
|
QUICK RATIO |
TIMES |
0.03 |
0.22 |
0.56 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.12 |
5.51 |
10.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.46 |
0.32 |
0.67 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
834.51 |
1,033.82 |
279.86 |
|
INVENTORY TURNOVER |
TIMES |
0.44 |
0.35 |
1.30 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
17.84 |
205.90 |
251.54 |
|
RECEIVABLES TURNOVER |
TIMES |
20.46 |
1.77 |
1.45 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
852.34 |
1,239.72 |
531.40 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.93 |
83.57 |
91.55 |
|
SELLING & ADMINISTRATION |
% |
7.65 |
12.90 |
7.31 |
|
INTEREST |
% |
5.33 |
5.54 |
2.32 |
|
GROSS PROFIT MARGIN |
% |
14.69 |
20.38 |
11.16 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.03 |
7.48 |
3.85 |
|
NET PROFIT MARGIN |
% |
1.36 |
1.48 |
1.03 |
|
RETURN ON EQUITY |
% |
3.59 |
2.87 |
4.05 |
|
RETURN ON ASSET |
% |
0.63 |
0.48 |
0.69 |
|
EARNING PER SHARE |
BAHT |
4.33 |
3.31 |
4.53 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.83 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.74 |
5.04 |
4.85 |
|
TIME INTEREST EARNED |
TIMES |
1.32 |
1.35 |
1.66 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
42.97 |
(49.13) |
|
|
OPERATING PROFIT |
% |
34.49 |
(1.20) |
|
|
NET PROFIT |
% |
30.62 |
(26.94) |
|
|
FIXED ASSETS |
% |
(2.94) |
(6.25) |
|
|
TOTAL ASSETS |
% |
(0.78) |
6.29 |
|
ANNUAL GROWTH: SATISFACTORY
An annual sales growth is 42.97%. Turnover has increased from THB
78,081,590.10 in 2012 to THB 111,635,904.89 in 2013. While net profit has
increased from THB 1,158,980.62 in 2012 to THB 1,513,847.96 in 2013. And total
assets has decreased from THB 243,405,349.70 in 2012 to THB 241,518,105.49 in
2013.
PROFITABILITY: RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.69 |
Acceptable |
Industrial
Average |
26.02 |
|
Net Profit Margin |
1.36 |
Deteriorated |
Industrial
Average |
4.78 |
|
Return on Assets |
0.63 |
Deteriorated |
Industrial
Average |
13.79 |
|
Return on Equity |
3.59 |
Deteriorated |
Industrial
Average |
25.22 |
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 14.69%. 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 1.36%.
When compared with the industry average, the ratio of the company was lower.
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 0.63%.
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 3.59%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY: RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.15 |
Deteriorated |
Industrial
Average |
2.70 |
|
Quick Ratio |
0.03 |
|
|
|
|
Cash Conversion Cycle |
852.34 |
|
|
|
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 1.15 times in 2013, increased from 1.14 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 0.03 times in 2013,
decreased from 0.22 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 853 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE: ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
4.74 |
Risky |
Industrial
Average |
1.10 |
|
Times Interest Earned |
1.32 |
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 1.32 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 0.83 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 |
8.12 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.46 |
Deteriorated |
Industrial
Average |
4.96 |
|
Inventory Conversion Period |
834.51 |
|
|
|
|
Inventory Turnover |
0.44 |
Deteriorated |
Industrial
Average |
11.41 |
|
Receivables Conversion Period |
17.84 |
|
|
|
|
Receivables Turnover |
20.46 |
Impressive |
Industrial
Average |
7.69 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 20.46 and 1.77
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 1034 days at the
end of 2012 to 835 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.35 times in year 2012 to 0.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.46 times and 0.32
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 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.61.97 |
|
|
1 |
Rs.97.37 |
|
Euro |
1 |
Rs.77.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.