MIRA INFORM REPORT
|
Report Date : |
18.10.2014 |
IDENTIFICATION DETAILS
|
Correct Name : |
ANILA GEM
INTERNATIONAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
10/3-5
Moo 2, Liabvaree
Road, Kokfaed, Nongjok, Bangkok
10530 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
14.11.1985 |
|
|
|
|
Com. Reg. No.: |
0105528039737 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and servicing the various styles and designs of fine jewelry in 14k and 18k gold set with diamonds and other precious and semi precious stones |
|
|
|
|
No of Employees : |
450 |
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 : |
Slow but correct |
|
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
ANILA GEM INTERNATIONAL
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 10/3-5 MOO
2, LIABVAREE ROAD,
KOKFAED, NONGJOK,
BANGKOK 10530,
THAILAND
TELEPHONE : [66] 2548-2011,
2548-2016, 2956-9147-51
FAX :
[66] 2956-9153,
2548-2017
E-MAIL
ADDRESS : info@anilagem.com
sales@anilagem.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1985
REGISTRATION
NO. : 0105528039737 [Former: 3973/ 2528]
TAX
ID NO. : 3101368123
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MOHAMMAD JUNID, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 450
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER 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 November 14,
1985 as a
private limited company
under the registered name
AQSA ENTERPRISE COMPANY
LIMITED by Thai-Pakistani groups.
On
December 14, 2000, subject’s name
was changed to ANILA GEM
INTERNATIONAL COMPANY
LIMITED, with the
business objective to
manufacture a variety of
jewelry products for exports.
It is one
of the best
top 10 leading
jewelry manufactures in
Thailand. It currently
employs approximately 450
staff.
The
subject’s registered address
is 10/3-5 Moo 2,
Liabvaree Rd., Kokfaed,
Nongjok, Bangkok 10530,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Mohammad Junid |
|
Thai |
49 |
|
Mr. Mohammad Asif Ratanaruengtrakul |
|
Thai |
51 |
|
Mr. Mohammad Rizwan Kazim |
|
Thai |
33 |
|
Mr. Mohammed Mustafa |
|
Thai |
27 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Mohammad Junid is
the Managing Director.
He is Thai
nationality with the
age of 49
years old.
Mr. Mohammad Sohei is
the Sales &
Marketing Manager.
He is Pakistani
nationality.
Mr. Yoosok Promgaysorn is
the Production Manager.
He is Thai
nationality.
Mr. Mohammad Asif Ratanaruengtrakul is
the General Manager & Customer Services
Manager.
He is Thai
nationality with the
age of 51
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and servicing the various
styles and designs
of fine jewelry in 14k and 18k
gold set with
diamonds and other
precious and semi
precious stones, under its own
brands “ANILA GEM”, “SANABIL”
and customer’s brand.
Ranges of products
are rings, earrings,
pendants, necklaces, bracelets,
bangles, brooches.
PURCHASE
Raw materials such as
diamonds, gemstones and
accessories are purchased
from suppliers both
domestic and overseas
in India, Germany,
Japan, South Africa
and Hong Kong.
EXPORT
100% of
the products is
exported to United
States of America,
Japan, India,
Singapore, Taiwan, Malaysia, Hong
Kong, Italy, Switzerland,
Netherlands, Australia, Canada,
Colombia, United Kingdom,
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 the
past two years.
CREDIT
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
L/C at sight
or 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
450 office staff
and factory workers.
LOCATION DETAILS
The
premise is owned
for administrative office,
factory and warehouse
on 6,400 square
meters of area
at the heading
address. Premise is
located in residential
area.
COMMENT
Generally, the Thai
gems and jewelry
industry have a
bright prospect. However,
there is a
high and aggressive
competition in the
local market from
many players.
Subject
reported an increasing sales in 2013
compared to the previous
year. Highlighting the impact of continuing economic uncertainty on the
jewelry market in 2014
remains as same
as in the year 2013, in
which demand outlook
is based on
its extensive market
like USA, Middle
East and China.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 1,000
shares of Bht. 1,000 each.
The
capital was increased
later as following:
Bht. 15,000,000
on July 14,
1995
Bht. 30,000,000
on June 30,
1997
Bht. 50,000,000
on October 30,
2002
The
latest registered capital
was increased to
Bht. 50,000,000 divided into
50,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ghulam
Mohammad Kazim Nationality: Thai Address : 181/1 Rajuthis Road, Saensaeb, Minburi, Bangkok |
21,140 |
42.28 |
|
Mr. Mohammad Junid Nationality: Thai Address : 181 Rajuthis Road,
Saensaeb, Minburi, Bangkok |
18,125 |
36.25 |
|
Mr. Mohammad Asif Ratanaruengtrakul Nationality: Thai Address : 181/1
Rajuthis Road, Saensaeb,
Minburi, Bangkok |
8,040 |
16.08 |
|
Mrs. Sarifa Kazim Nationality: Thai Address : 181/1
Rajuthis Road, Saensaeb,
Minburi, Bangkok |
2,575 |
5.15 |
|
Mr. Anake Saelim Nationality: Thai Address : 56/11
Pan Rd., Silom,
Bangrak, Bangkok |
40 |
0.08 |
|
Mr. Puen Thongkwao Nationality: Thai Address : 52/11
Ladprao Rd., Wangthonglang,
Prakanong, Bangkok |
40 |
0.08 |
|
Ms. Nitaya Sanjakornhiran Nationality: Thai Address : 409/14
Suksawad Rd., Bangkapi,
Rajburana, Bangkok
|
40 |
0.08 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
50,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO
Mr. Anand Thongsamrith No.
4903
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 |
165,101,681.30 |
159,169,717.29 |
151,654,117.62 |
|
Trade Accounts & Other Receivable |
130,818,763.70 |
149,365,814.87 |
166,404,907.95 |
|
Inventories |
216,592,607.15 |
242,848,785.43 |
185,239,135.90 |
|
Short-term Lending to Related Company |
- |
- |
2,540,060.30 |
|
Other Current Assets |
6,819,554.53 |
1,850,726.30 |
1,234,380.23 |
|
Total Current Assets
|
519,332,606.68 |
553,235,043.89 |
507,072,602.00 |
|
|
|
|
|
|
Fixed Assets |
71,658,270.68 |
72,554,710.27 |
72,858,345.91 |
|
Other Non-current Assets |
699,800.00 |
699,800.00 |
699,800.00 |
|
Total Assets |
591,690,677.36 |
626,489,554.16 |
580,630,747.91 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
393,088,101.03 |
432,341,632.43 |
389,341,746.79 |
|
Short-term Loan from Related
Company |
2,231,172.03 |
202,452.00 |
7,000.00 |
|
Accrued Income Tax |
563,157.89 |
572,676.43 |
1,186,923.89 |
|
Other Current Liabilities |
515,631.10 |
448,840.47 |
585,601.84 |
|
Total Current Liabilities |
396,398,062.05 |
433,565,601.33 |
391,121,272.52 |
|
Employee Benefits Obligation |
4,977,629.56 |
2,442,370.93 |
648,851.45 |
|
Total Liabilities |
401,375,691.61 |
436,007,972.26 |
391,770,123.97 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 50,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning -
Unappropriated |
140,314,985.75 |
140,481,581.90 |
138,860,623.94 |
|
Total Shareholders' Equity |
190,314,985.75 |
190,481,581.90 |
188,860,623.94 |
|
Total Liabilities &
Shareholders' Equity |
591,690,677.36 |
626,489,554.16 |
580,630,747.91 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
557,596,932.16 |
460,055,307.59 |
617,570,260.29 |
|
Gain on Exchange Rate |
- |
4,486,315.47 |
509,414.25 |
|
Other Income |
1,112,583.90 |
1,315,976.97 |
1,364,066.55 |
|
Total Revenues |
558,709,516.09 |
465,857,600.03 |
619,443,741.09 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
487,878,319.26 |
411,330,452.28 |
560,776,384.69 |
|
Selling Expenses |
19,906,046.80 |
18,938,996.73 |
16,262,803.26 |
|
Administrative Expenses |
39,460,686.47 |
32,784,862.42 |
37,578,440.48 |
|
Loss on Exchange Rate |
10,513,948.81 |
- |
- |
|
Total Expenses |
557,759,001.34 |
463,054,311.43 |
614,617,628.43 |
|
Profit / [Loss] before Income Tax |
950,514.72 |
2,803,288.60 |
4,826,112.66 |
|
Income Tax |
1,117,110.87 |
[1,182,330.64] |
[2,089,221.28] |
|
Net Profit / [Loss] |
[166,596.15] |
1,620,957.96 |
2,736,891.38 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.31 |
1.28 |
1.30 |
|
QUICK RATIO |
TIMES |
0.75 |
0.71 |
0.81 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.78 |
6.34 |
8.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.94 |
0.73 |
1.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
162.04 |
215.50 |
120.57 |
|
INVENTORY TURNOVER |
TIMES |
2.25 |
1.69 |
3.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
85.63 |
118.50 |
98.35 |
|
RECEIVABLES TURNOVER |
TIMES |
4.26 |
3.08 |
3.71 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
294.08 |
383.64 |
253.42 |
|
CASH CONVERSION CYCLE |
DAYS |
(46.41) |
(49.64) |
(34.50) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.50 |
89.41 |
90.80 |
|
SELLING & ADMINISTRATION |
% |
10.65 |
11.24 |
8.72 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
12.70 |
11.85 |
9.50 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.17 |
0.61 |
0.78 |
|
NET PROFIT MARGIN |
% |
(0.03) |
0.35 |
0.44 |
|
RETURN ON EQUITY |
% |
(0.09) |
0.85 |
1.45 |
|
RETURN ON ASSET |
% |
(0.03) |
0.26 |
0.47 |
|
EARNING PER SHARE |
BAHT |
(3.33) |
32.42 |
54.74 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.70 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.11 |
2.29 |
2.07 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
21.20 |
(25.51) |
|
|
OPERATING PROFIT |
% |
(66.09) |
(41.91) |
|
|
NET PROFIT |
% |
(110.28) |
(40.77) |
|
|
FIXED ASSETS |
% |
(1.24) |
(0.42) |
|
|
TOTAL ASSETS |
% |
(5.55) |
7.90 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 21.2%. Turnover has increased from THB 460,055,307.59
in 2012 to THB 557,596,932.16 in 2013. While net profit has decreased from THB
1,620,957.96 in 2012 to THB -166,596.15 in 2013. And total assets has decreased
from THB 626,489,554.16 in 2012 to THB 591,690,677.36 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.70 |
Acceptable |
Industrial
Average |
18.48 |
|
Net Profit Margin |
(0.03) |
Deteriorated |
Industrial
Average |
16.43 |
|
Return on Assets |
(0.03) |
Deteriorated |
Industrial
Average |
24.52 |
|
Return on Equity |
(0.09) |
Deteriorated |
Industrial
Average |
40.35 |
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 12.7%. 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 -0.03%.
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 -0.03%.
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 -0.09%.
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 |
1.31 |
Deteriorated |
Industrial
Average |
3.14 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
(46.41) |
|
|
|
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 1.31 times in 2013, increased from 1.28 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 0.75 times in 2013,
increased from 0.71 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 -47 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Acceptable |
Industrial
Average |
0.32 |
|
Debt to Equity Ratio |
2.11 |
Risky |
Industrial
Average |
0.47 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.68 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.78 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.94 |
Acceptable |
Industrial
Average |
1.49 |
|
Inventory Conversion Period |
162.04 |
|
|
|
|
Inventory Turnover |
2.25 |
Acceptable |
Industrial
Average |
3.43 |
|
Receivables Conversion Period |
85.63 |
|
|
|
|
Receivables Turnover |
4.26 |
Impressive |
Industrial
Average |
2.25 |
|
Payables Conversion Period |
294.08 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.26 and 3.08 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 215 days at the
end of 2012 to 162 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 1.69 times in year 2012 to 2.25 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.94 times and 0.73
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.61.62 |
|
|
1 |
Rs.99.12 |
|
Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SMN |
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.