MIRA
INFORM REPORT
|
Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
GEM CREATIONS LTD. |
|
|
|
|
Registered Office : |
199 Ladkrabang
Industrial Estate, SOI Chalongkrung 31, |
|
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Country : |
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|
|
|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.01.1984 |
|
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Com. Reg. No.: |
0105527002732 |
|
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Legal Form : |
Private Limited Company |
|
|
|
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Line of Business : |
Subject is engaged in design,
manufacturing and exporting
various kinds of
gold and platinum jewelry,
including bracelet, earring,
necklace, ring. |
|
|
|
|
No of Employees : |
340 |
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 |
|
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
GEM CREATIONS LTD.
SUMMARY
BUSINESS ADDRESS : 199
LADKRABANG INDUSTRIAL ESTATE,
SOI CHALONGKRUNG
31, CHALONGKRUNG ROAD,
LAMPLATIW,
LADKRABANG, BANGKOK 10520,
THAILAND
TELEPHONE : [66] 2739-7000
FAX : [66] 2739-7023
E-MAIL ADDRESS : info@gemcreations.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1984
REGISTRATION NO. : 0105527002732
TAX ID NO. : 3101282511
CAPITAL REGISTERED : BHT.
105,000,000
CAPITAL PAID-UP : BHT.
105,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SURIN LATTAPANIT,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 340
LINES OF BUSINESS : GOLD
AND PLATINUM 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 January
18, 1984 as
a private limited
company under the registered
name GEM CREATIONS
LTD., by Thai
groups. Its business
objective is to
manufacture various styles
of gold and platinum
jewelry products for
exports. It currently employs
approximately 340 staff.
The subject’s registered
address was initially
at 299 Moo 4,
Ladkrabang Industrial Estate,
Chalongkrung
Rd., Lamplatiw, Ladkrabang, Bangkok
10520.
On November 10,
2011, the subject’s
registered address was
changed to 199 Ladkrabang
Industrial Estate, Chalongkrung Rd., Lamplatiw, Ladkrabang,
Bangkok 10520, by
the Ladkrabang
District Office, which actually
are the same
location, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Surin
Lattapanit |
[x] |
Thai |
66 |
|
Mrs. Kannika
Lattapanit |
[x] |
Thai |
62 |
|
Mr. Chotiwat
Lattapanit |
[-] |
Thai |
38 |
|
Mr. Veeradon
Lattapanit |
[-] |
Thai |
34 |
|
Mrs. Somsuk
Vimalapirat |
|
Thai |
58 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or
both of the
mentioned directors [-]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Surin
Lattapanit
is the Managing
Director.
He is Thai
nationality with the
age of 66 years old.
Mrs. Kannika
Lattapanit
is the Deputy
Managing Director.
She is Thai
nationality with the
age of 62
years old.
Mr. Chotiwat
Lattapanit
is the Assistant
Managing Director.
He is Thai
nationality with the
age of 38
years old.
Mr. Veeradon Lattapanit is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject is
engaged in design,
manufacturing and exporting
various kinds of
gold and platinum jewelry,
including bracelet, earring,
necklace, ring.
PURCHASE
Raw materials; diamonds,
gemstones and components
are purchased from
suppliers both domestic
and overseas, mainly
in India, U.S.A.,
Japan, Italy, Switzerland,
and South Africa.
EXPORT
100% of the
products is exported
to U.S.A., Hong
Kong, Japan, Singapore,
Republic of China,
Europe 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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 340 staff.
LOCATION DETAILS
The premise is
owned for administrative office and
factory on 6,000 square
meters of land
at the heading
address. Premise is
located in industrial
area.
COMMENT
The subject was
formed as a
manufacturer, distributor and
exporter of gold and platinum jewelry
products.
The market situation is
improving with an economic showed
signs of
growth in the second
half of the year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 6,000,000
divided into 60,000 shares of
Bht. 100
each with fully
paid.
The capital was
increased later as
follows:
Bht.
8,000,000 on
November 1, 1985
Bht. 30,000,000
on June
14, 1989
Bht. 80,000,000
on December
8, 2003
Bht. 105,000,000
on October
17, 2006
The latest registered
capital was increased to Bht.
105 million, divided into 1,050,000 shares
of Bht.
100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Surin
Lattapanit Nationality: Thai Address : 24 Soi Navathani 9, Serithai Rd.,
Kannayao, Bangkok |
272,450 |
25.95 |
|
Mrs. Kannika
Lattapanit Nationality: Thai Address : 24 Soi Navathani 9, Serithai Rd.,
Kannayao, Bangkok
|
272,386 |
25.94 |
|
Mr. Veeradon
Lattapanit Nationality: Thai Address : 24 Soi Navathani 9, Serithai Rd.,
Kannayao,
Bangkok |
252,532 |
24.05 |
|
Mr. Chotiwat
Latthapanich Nationality: Thai Address : 24 Soi Navathani 9, Serithai Rd.,
Kannayao,
Bangkok |
252,532 |
24.05 |
|
Mrs. Somsuk
Vimalapirat Nationality: Thai Address : 158 Pattanakarn
53 Rd., Suanluang, Bangkok |
100 |
0.01 |
Total Shareholders : 5
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
1,050,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
1,050,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Navee
Patisampitavong No.
2552
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,656,232.73 |
19,794,609.23 |
1,735,855.43 |
|
Short-term Investment |
543,444.70 |
633,337.02 |
778,989.74 |
|
Trade Accounts Receivable
|
121,255,678.96 |
79,419,454.38 |
102,585,235.20 |
|
Inventories |
311,992,531.16 |
285,443,667.94 |
227,974,649.77 |
|
Refundable Value Added Tax |
161,837.61 |
123,383.74 |
129,229.62 |
|
Other Current Assets
|
2,319,275.44 |
2,871,058.62 |
3,154,890.87 |
|
|
|
|
|
|
Total Current Assets
|
438,929,000.60 |
388,285,510.93 |
336,358,850.63 |
|
Investment in Associated |
5,605,376.16 |
5,605,376.16 |
5,605,376.16 |
|
Long-term Investment
|
1,288,560.00 |
1,598,310.00 |
1,007,720.00 |
|
Investment Property |
26,404,738.00 |
27,504,738.00 |
25,511,050.00 |
|
Fixed Assets |
134,761,518.86 |
144,334,250.43 |
163,152,801.57 |
|
Intangible Assets |
984,206.47 |
1,347,763.84 |
1,800,528.32 |
|
Other Non - current Assets |
5,980,401.52 |
6,041,099.37 |
6,038,811.60 |
|
Total Assets |
613,953,801.61 |
574,717,048.73 |
539,475,138.28 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
120,038,340.78 |
147,436,502.95 |
187,201,636.76 |
|
Trade Accounts Payable
|
41,559,315.53 |
17,623,216.30 |
33,785,054.56 |
|
Current Portion of
Long-term Loans : Financial Lease Contract
Liabilities |
1,603,034.04 |
2,159,089.68 |
2,421,244.45 |
|
Other Long-term Loans |
16,212,000.00 |
16,212,000.00 |
12,612,000.00 |
|
Short-term Loan from
Related Person |
265,406,720.63 |
214,356,683.83 |
90,143,726.63 |
|
Accrued Expenses |
5,229,321.88 |
5,343,863.07 |
5,342,753.77 |
|
Accrued Income Tax |
18,224,996.87 |
17,023,673.88 |
24,295,188.05 |
|
Other Current Liabilities |
5,453,622.57 |
6,286,189.00 |
2,478,512.03 |
|
|
|
|
|
|
Total Current Liabilities |
473,727,352.30 |
426,441,218.71 |
358,280,116.25 |
|
Financial Lease Contract Liabilities |
2,011,330.73 |
2,380,719.51 |
4,539,809.19 |
|
Long-term Loans |
42,216,705.26 |
57,791,842.62 |
73,276,187.07 |
|
Total Liabilities |
517,955,388.29 |
486,613,780.84 |
436,096,112.51 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,050,000 shares |
105,000,000.00 |
105,000,000.00 |
105,000,000.00 |
|
|
|
|
|
|
Capital Paid |
105,000,000.00 |
105,000,000.00 |
105,000,000.00 |
|
Unrealized Gains on Investments
in Market Demand |
1,132,660.00 |
1,442,410.00 |
851,820.00 |
|
Retained Earnings: Appropriated for Statutory Reserve |
1,209,000.00 |
1,209,000.00 |
1,209,000.00 |
|
Unappropriated |
[11,343,246.68] |
[19,548,142.11] |
[36,81,794.23] |
|
Total Shareholders' Equity |
95,998,413.32 |
88,103,267.89 |
103,379,025.77 |
|
Total Liabilities &
Shareholders' Equity |
613,953,801.61 |
574,717,048.73 |
539,475,138.28 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
335,144,698.10 |
174,767,069.65 |
248,262,846.45 |
|
Other Income |
12,171,328.94 |
7,674,628.98 |
11,311,403.76 |
|
Total Revenues |
347,316,027.04 |
182,441,698.63 |
259,574,250.21 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
284,350,406.44 |
121,081,775.32 |
191,277,125.57 |
|
Selling Expenses |
7,664,212.79 |
8,072,515.68 |
15,163,662.14 |
|
Administrative Expenses |
35,387,115.54 |
51,314,069.86 |
42,479,573.15 |
|
Total Expenses |
327,401,734.77 |
180,468,360.86 |
248,920,360.86 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
19,914,292.27 |
1,973,337.77 |
10,653,889.35 |
|
Financial Cost |
[10,845,064.70] |
[17,222,991.21] |
[17,203,319.80] |
|
Profit before Income
Tax |
9,069,227.57 |
[15,249,653.44] |
[6,549,430.45] |
|
Income Tax |
[864,332.14] |
[616,694.44] |
[1,085,591.39] |
|
|
|
|
|
|
Net Profit / [Loss] |
8,204,895.43 |
[15,866,347.88] |
[7,635,021.84] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.93 |
0.91 |
0.94 |
|
QUICK RATIO |
TIMES |
0.26 |
0.23 |
0.29 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.49 |
1.21 |
1.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.55 |
0.30 |
0.46 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
400.48 |
860.47 |
435.03 |
|
INVENTORY TURNOVER |
TIMES |
0.91 |
0.42 |
0.84 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
132.06 |
165.87 |
150.82 |
|
RECEIVABLES TURNOVER |
TIMES |
2.76 |
2.20 |
2.42 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
53.35 |
53.13 |
64.47 |
|
CASH CONVERSION CYCLE |
DAYS |
479.19 |
973.21 |
521.38 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.84 |
69.28 |
77.05 |
|
SELLING & ADMINISTRATION |
% |
12.85 |
33.98 |
23.22 |
|
INTEREST |
% |
3.24 |
9.85 |
6.93 |
|
GROSS PROFIT MARGIN |
% |
18.79 |
35.11 |
27.51 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.94 |
1.13 |
4.29 |
|
NET PROFIT MARGIN |
% |
2.45 |
(9.08) |
(3.08) |
|
RETURN ON EQUITY |
% |
8.55 |
(18.01) |
(7.39) |
|
RETURN ON ASSET |
% |
1.34 |
(2.76) |
(1.42) |
|
EARNING PER SHARE |
BAHT |
7.81 |
(15.11) |
(7.27) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.85 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.40 |
5.52 |
4.22 |
|
TIME INTEREST EARNED |
TIMES |
1.84 |
0.11 |
0.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
91.77 |
(29.60) |
|
|
OPERATING PROFIT |
% |
909.17 |
(81.48) |
|
|
NET PROFIT |
% |
151.71 |
(107.81) |
|
|
FIXED ASSETS |
% |
(6.63) |
(11.53) |
|
|
TOTAL ASSETS |
% |
6.83 |
6.53 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 91.77%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.79 |
Impressive |
Industrial Average |
18.48 |
|
Net Profit Margin |
2.45 |
Deteriorated |
Industrial Average |
16.43 |
|
Return on Assets |
1.34 |
Deteriorated |
Industrial Average |
24.52 |
|
Return on Equity |
8.55 |
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 18.79%. When compared with the industry
average, the ratio of the company was higher, indicated that company was more
profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 2.45%.
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 1.34%.
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 8.55%.
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 |
0.93 |
Risky |
Industrial Average |
3.14 |
|
Quick Ratio |
0.26 |
|
|
|
|
Cash Conversion Cycle |
479.19 |
|
|
|
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 0.93 times in 2013, increased from 0.91 times, then the company may
have problems meeting its short-term obligations. 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 0.26 times in 2013,
increased from 0.23 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 480 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial Average |
0.32 |
|
Debt to Equity Ratio |
5.40 |
Risky |
Industrial Average |
0.47 |
|
Times Interest Earned |
1.84 |
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 1.84 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 0.84 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 |
2.49 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.55 |
Deteriorated |
Industrial Average |
1.49 |
|
Inventory Conversion Period |
400.48 |
|
|
|
|
Inventory Turnover |
0.91 |
Deteriorated |
Industrial Average |
3.43 |
|
Receivables Conversion Period |
132.06 |
|
|
|
|
Receivables Turnover |
2.76 |
Impressive |
Industrial Average |
2.25 |
|
Payables Conversion Period |
53.35 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.76 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 860 days at the
end of 2012 to 400 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.42 times in year 2012 to 0.91 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.55 times and 0.3
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.60.81 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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 interestz
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.