MIRA
INFORM REPORT
|
Report Date : |
24.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
PRITI GEMS CO., LTD. |
|
|
|
|
Registered Office : |
Suite 3110, 31st Floor, Jewelery Trade Center, 919/395 Silom Road, Silom, Bangrak, Bangkok 10500, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
15.05.1990 |
|
|
|
|
Com. Reg. No.: |
0105533054463 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in
importing and distributing of
various kinds of
cutting diamonds, gemstones
and pearls, as
well as exporting
of Thai cutting
diamonds and gemstones |
|
|
|
|
No. of Employees : |
08 |
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 |
|
|
-- |
NB |
New Business |
-- |
|
|
Status : |
Satisfactory |
|
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
PRITI
GEMS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : SUITE
3110, 31st FLOOR,
JEWELERY TRADE CENTER,
919/395 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-0048-9
FAX :
[66] 2630-0047
E-MAIL
ADRESS : pritigem@samart.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533054463 [Former : 5445/ 2533]
TAX
ID NO. : 3101832990
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI : 51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
CHANDRA KUMAR PUROHIT,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
TRADING
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on May 15,
1990 as a
private limited company
under the name
style PRITI GEMS
CO., LTD., by
Thai and foreign
groups, to be
engaged in jewelry
trading business. It currently
employs 8 staff.
The
subject’s registered address
is Suite 3110, 31st Floor,
Jewelry Trade Center,
919/395 Silom Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chandra Kumar Purohit |
|
Indian |
43 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chandra Kumar Purohit
is the Managing
Director.
He is Indian
nationality with the
age of 43 years
old.
BUSINESS OPERATIONS
The subject is engaged in
importing and distributing of
various kinds of
cutting diamonds, gemstones
and pearls, as
well as exporting
of Thai cutting
diamonds and gemstones.
PURCHASE
Thai cutting diamonds
are purchased from
local suppliers.
IMPORT
Diamonds,
gemstones and pearls
are imported from
India, Japan, Republic
of China,
Hong
Kong, Belgium and
South Africa.
MAJOR SUPPLIER
Sejal
Gems Pvt. Ltd. : India
SALES
The imported products
are sold locally
to wholesalers and
jewelry manufacturers.
EXPORT
Thai
diamonds and gemstones
are exported to India, Hong Kong, U.S.A. and European
Union.
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 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]
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
Most of Thai manufacturers in the jewelry industry are original
equipment manufacturers (OEM) which supply products to international buyers.
Consequently, Thai jewelry producers were encouraged by the
government to improve of their products in
term of brand, design, quality and technology processing, including cutting
diamond.
The subject’s products currently
play a significant
role in supplying advance and
technology of cutting diamond
from Thai manufacture
into international markets.
In
the second half
of 2014 overall
domestic consumption is
expected to improve
slightly, but exports
has seen to
be low.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100
each.
On
October 17, 1996,
the capital was
increased to Bht. 12,000,000 divided
into 120,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 5, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Chandra Kumar Purohit Nationality: Indian Address : 31st Floor,
Jewelry Trade Center,
919/395 Silom Rd.,
Silom, Bangrak, Bangkok |
36,000 |
30.00 |
|
Sejal Gems International DMCC Nationality: U.A.E. Address : Dubai,
United Arab Emirate |
22,800 |
19.00 |
|
Mrs. Ratree Samanavanich Nationality: Thai Address : 84
Phyathai Rd., Thungphyathai, Phyathai, Bangkok |
13,200 |
11.00 |
|
Ms. Rawadee A. S. Aree Nationality: Thai Address : 229/25
Petchburi Rd., Thungphyathai,
Phyathai, Bangkok |
9,600 |
8.00 |
|
|
|
|
|
Mrs. Cholrudee Chantadul Nationality: Thai Address : 229/25
Petchburi Rd., Thungphyathai,
Phyathai, Bangkok |
9,600 |
8.00 |
|
Mr. Boonlert Phuprakorn Nationality: Thai Address : 433/12
Petchburi Rd., Thungphyathai,
Phyathai, Bangkok |
9,600 |
8.00 |
|
Ms. Anthana Boonmalert Nationality: Thai Address : 30/1
Moo 5, T. Yothaka, A. Bangnampriew,
Chachoengsao |
9,600 |
8.00 |
|
Mrs. Sumalee Langsanti Nationality: Thai Address : 283
Asoke-Dindaeng Rd., Samsennai,
Phyathai, Bangkok |
9,600 |
8.00 |
Total Shareholders : 8
Share Structure [as
at June 5,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
61,200 |
51.00 |
|
Foreign |
2 |
58,800 |
49.00 |
|
Total |
8 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Rattaphum Nantapatatiw
No. 5789
BALANCE SHEET [BAHT]
The 2013 financial
statement has not
been submitted to the
Commercial Registration Department
during our investigation.
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
3,504,027.46 |
785,643.14 |
2,339,450.05 |
|
Trade Accounts &
Other Receivable |
193,632,563.32 |
95,763,369.85 |
109,168,631.48 |
|
Short-term Loans |
- |
- |
2,900,000.00 |
|
Inventories |
167,855,313.20 |
206,254,198.03 |
88,965,782.28 |
|
|
|
|
|
|
Total Current Assets
|
364,991,903.98 |
302,803,211.02 |
203,373,863.81 |
|
|
|
|
|
|
Fixed Assets |
1,354,701.34 |
1,697,708.50 |
3,015,602.25 |
|
Other Non - current Assets |
185,146.73 |
802,446.73 |
798,474.03 |
|
Total Assets |
366,531,752.05 |
305,303,366.25 |
207,187,940.09 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft from Financial Institutions |
11,059,987.68 |
209,917.91 |
- |
|
Trade Accounts & Other
Payable |
301,765,504.23 |
258,039,291.21 |
156,897,483.46 |
|
Current Portion of
Hire-purchase Payable |
162,718.18 |
343,876.14 |
536,601.87 |
|
Accrued Expenses |
1,489,714.06 |
218,453.93 |
5,300,633.30 |
|
|
|
|
|
|
Total Current Liabilities |
314,477,924.15 |
258,811,539.19 |
162,734,718.63 |
|
Hire-purchase Payable, Net |
- |
133,017.18 |
476,893.20 |
|
Total Liabilities |
314,477,924.15 |
258,944,556.37 |
163,211,611.83 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
|
|
|
|
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
40,053,827.90 |
34,358,809.88 |
31,976,328.26 |
|
Total Shareholders' Equity |
52,053,827.90 |
46,358,809.88 |
43,976,328.26 |
|
Total Liabilities &
Shareholders' Equity |
366,531,752.05 |
305,303,366.25 |
207,187,940.09 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
460,117,296.98 |
559,421,348.74 |
648,127,707.32 |
|
Gain on Exchange Rate |
- |
- |
21,875,611.50 |
|
Other Income |
8,938,326.02 |
94,635.51 |
391,919.20 |
|
Total Revenues |
469,055,623.00 |
559,515,984.25 |
670,395,238.02 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
449,740,628.82 |
538,174,354.11 |
637,420,133.24 |
|
Selling Expenses |
5,992,846.25 |
6,230,397.02 |
6,075,903.31 |
|
Administrative Expenses |
4,370,531.65 |
10,542,603.92 |
4,465,810.86 |
|
Total Expenses |
460,104,006.72 |
554,947,355.05 |
647,961,847.41 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
8,951,616.28 |
4,568,629.20 |
22,433,390.61 |
|
Financial Costs |
[1,157,384.20] |
[977,693.65] |
[173,123.16] |
|
Profit / [Loss] before Income
Tax |
7,794,232.08 |
3,590,935.55 |
22,260,267.45 |
|
Income Tax |
[2,099,214.06] |
[1,208,453.93] |
[6,905,633.30] |
|
|
|
|
|
|
Net Profit / [Loss] |
5,695,018.02 |
2,382,481.62 |
15,354,634.15 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.16 |
1.17 |
1.25 |
|
QUICK RATIO |
TIMES |
0.63 |
0.37 |
0.70 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
339.64 |
329.52 |
214.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.26 |
1.83 |
3.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
136.23 |
139.89 |
50.94 |
|
INVENTORY TURNOVER |
TIMES |
2.68 |
2.61 |
7.16 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
153.60 |
62.48 |
61.48 |
|
RECEIVABLES TURNOVER |
TIMES |
2.38 |
5.84 |
5.94 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
244.91 |
175.01 |
89.84 |
|
CASH CONVERSION CYCLE |
DAYS |
44.93 |
27.36 |
22.58 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.74 |
96.20 |
98.35 |
|
SELLING & ADMINISTRATION |
% |
2.25 |
3.00 |
1.63 |
|
INTEREST |
% |
0.25 |
0.17 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
4.20 |
3.81 |
5.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.95 |
0.82 |
3.46 |
|
NET PROFIT MARGIN |
% |
1.24 |
0.43 |
2.37 |
|
RETURN ON EQUITY |
% |
10.94 |
5.14 |
34.92 |
|
RETURN ON ASSET |
% |
1.55 |
0.78 |
7.41 |
|
EARNING PER SHARE |
BAHT |
47.46 |
19.85 |
127.96 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.85 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.04 |
5.59 |
3.71 |
|
TIME INTEREST EARNED |
TIMES |
7.73 |
4.67 |
129.58 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.75) |
(13.69) |
|
|
OPERATING PROFIT |
% |
95.94 |
(79.63) |
|
|
NET PROFIT |
% |
139.04 |
(84.48) |
|
|
FIXED ASSETS |
% |
(20.20) |
(43.70) |
|
|
TOTAL ASSETS |
% |
20.05 |
47.36 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -17.75%. Turnover has decreased from THB
559,421,348.74 in 2011 to THB 460,117,296.98 in 2012. While net profit has
increased from THB 2,382,481.62 in 2011 to THB 5,695,018.02 in 2012. And total
assets has increased from THB 305,303,366.25 in 2011 to THB 366,531,752.05 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.20 |
Impressive |
Industrial
Average |
0.61 |
|
Net Profit Margin |
1.24 |
Impressive |
Industrial
Average |
0.03 |
|
Return on Assets |
1.55 |
Impressive |
Industrial
Average |
0.89 |
|
Return on Equity |
10.94 |
Impressive |
Industrial
Average |
4.08 |
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 4.2%. 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 1.24%, 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 1.55%, 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 10.94%, 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 |
1.16 |
Satisfactory |
Industrial
Average |
1.32 |
|
Quick Ratio |
0.63 |
|
|
|
|
Cash Conversion Cycle |
44.93 |
|
|
|
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 1.16 times in 2012, decreased from 1.17 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 0.63 times in 2012,
increased from 0.37 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 45 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
6.04 |
Risky |
Industrial
Average |
3.43 |
|
Times Interest Earned |
7.73 |
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 7.74 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 0.86 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
339.64 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.26 |
Deteriorated |
Industrial
Average |
34.63 |
|
Inventory Conversion Period |
136.23 |
|
|
|
|
Inventory Turnover |
2.68 |
Deteriorated |
Industrial
Average |
89.31 |
|
Receivables Conversion Period |
153.60 |
|
|
|
|
Receivables Turnover |
2.38 |
Deteriorated |
Industrial
Average |
44.32 |
|
Payables Conversion Period |
244.91 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.38 and 5.84 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
decreased from 2011. This would suggest the company had deteriorated 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 140 days at the
end of 2011 to 136 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.61 times in year 2011 to 2.68 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.26 times and 1.83
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover 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.60.87 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.78.22 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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.