MIRA
INFORM REPORT
|
Report Date : |
26.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUKIRU EXPORTS CO., LTD. |
|
|
|
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Registered Office : |
24th
Floor, |
|
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|
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Country : |
|
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|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
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Date of Incorporation : |
04.07.1995 |
|
|
|
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Com. Reg. No.: |
0105538078751 [Former : 1587/ 2538] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importing, distributing, exporting and re-exporting of diamonds for jewelry production
industry. |
|
|
|
|
No of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 & address
SUKIRU EXPORTS CO., LTD.
SUMMARY
BUSINESS ADDRESS : 24th
FLOOR, SURAWONGWATTANAKARN
TOWER,
322/61 SURAWONG
ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2631-7707,
2631-7737
FAX : [66] 2631-7787
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538078751 [Former : 1587/ 2538]
TAX ID NO. : 3011596166
CAPITAL REGISTERED : BHT.
8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KEYUR PRAVINKUMAR
SHAH, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 8
LINES OF BUSINESS : DIAMONDS
TRADING BUSINESS
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on July
4, 1995 as
a private limited
company under the
name style SUKIRU
EXPORTS CO., LTD., by Thai
and Indian groups,
in order to
be engaged in
diamond and gemstones
trading business. It currently employs
8 staff.
The subject’s registered address was
initially at 297
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On July 18, 2006, the
subject’s registered address
was relocated to
Room 57 B, 22nd Floor, Surawongwattanakarn Tower,
322/57 Surawong Rd., Siphya,
Bangrak, Bangkok 10500.
On December 6,
2012, the subject’s
registered address was
relocated to 24th Floor,
Surawongwattanakarn Tower, 322/61 Surawong Rd., Siphya,
Bangrak, Bangkok 10500,
which is actually
the same building,
and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Keyur Pravinkumar Shah |
|
Indian |
51 |
|
Mr. Giriraj Manharsinh Jadeja |
|
Indian |
44 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Keyur Pravinkumar Shah
is the Managing
Director.
He is Indian
nationality with the
age of 51 years
old.
BUSINESS OPERATIONS
The subject is
an international trading
company by importing,
distributing, exporting and
re-exporting of diamonds
for jewelry production
industry.
IMPORT [COUNTRIES]
Most of the
products are imported
from India and Hong Kong,
the remaining is
purchased from local
suppliers.
SALES [LOCAL]
70% of the
products is sold
locally to traders
and manufacturers.
EXPORT
30% of the
products is also
exported and re-exported
to Hong Kong.
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 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.
Kasikornbank 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
Subject is engaged
in diamonds trading
business. Its products
have been served
mainly to jewelry
production industry. Despite
a strong competitive
market, the subject
maintains its good
business due to
its high quality and
innovative products.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2,000,000 divided into
20,000 shares of Bht.
100 each.
The capital was
increased later as followed:
Bht. 3,000,000
on May 23,
2000
Bht. 4,000,000
on September 11,
2006
Bht. 6,000,000
on January 23,
2009
Bht. 8,000,000
on December 6,
2012
The latest registered
capital was increased
to Bht. 8,000,000 divided into
80,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kiran Champaklal Bhansali Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
12,000 |
15.00 |
|
Mr. Keyur Pravinkumar Shah Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
12,000 |
15.00 |
|
Mr. Giriraj Manharsinh Jadeja Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
7,600 |
9.50 |
|
Mr. Vipul Jayaitial Jhah Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
7,600 |
9.50 |
|
Ms. Dusadee Krongbooncharas Nationality: Thai Address : 24/970
Soi Vibhavadee Rangsit
37, Seekan,
Donmuang, Bangkok |
6,000 |
7.50 |
|
Mrs. Arunothai Pongpaitoon Nationality: Thai Address : 11/540
Moo 10, Ladprao,
Bangkok |
5,500 |
6.87 |
|
Ms. Saowanee Phupiromsilp Nationality: Thai Address : 9/50
Charoenkrung 55 Rd.,
Yananwa,
Sathorn, Bangkok |
5,500 |
6.87 |
|
Ms. Nalinee Saephu Nationality: Thai Address : 50
Charoenkrung Rd., Yannawa,
Sathorn, Bangkok |
5,200 |
6.50 |
|
Ms. Ajcharee Krongbooncharas Nationality: Thai Address : 24/970
Soi Vibhavadee Rangsit
37, Seekan, Donmuang, Bangkok |
5,000 |
6.25 |
|
Mrs. Somsri Rerkchamnong Nationality: Thai Address : 73/872
Moo 10, T. Sainoi, A. Sainoi, Nonthaburi |
4,400 |
5.50 |
|
Ms. Panarin Mungmart Nationality: Thai Address :
222 Moo 3, T. Pran,
A. Khunharn, Srisaket |
2,500 |
3.13 |
|
Ms. Suthamma Changtaisong Nationality: Thai Address : 92
Moo 2, T. Panthong, A. Saingam,
Kampaengpetch |
2,500 |
3.13 |
|
Mrs. Niraman Nunabee Nationality: Thai Address : 49/10
Moo 9, Suwintawong
Rd.,
Lampakchee, Nongchok, Bangkok |
2,200 |
2.75 |
|
Ms. Wanvisa Chanunant Nationality: Thai Address : 39
Moo 1, T. Nanang,
A. Ponepisai, Nongkhai |
2,000 |
2.50 |
Total Shareholders : 14
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
40,800 |
51.00 |
|
Foreign - Indian |
4 |
39,200 |
49.00 |
|
Total |
14 |
80,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wattana Trikantha
No. 2399
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 |
786,439.12 |
2,048,426.33 |
1,210,958.17 |
|
Trade Accounts Receivable
|
171,876,536.86 |
51,695,307.88 |
89,649,121.09 |
|
Inventories |
36,673,093.79 |
53,101,077.24 |
56,668,818.87 |
|
Other Current Assets
|
207,455.88 |
417,198.00 |
200,935.77 |
|
Total Current Assets
|
209,543,525.65 |
107,262,009.45 |
147,729,833.90 |
|
|
|
|
|
|
Fixed Assets |
100,801.10 |
18,563.69 |
47,437.86 |
|
Other Non-current Assets |
101,179.24 |
185,379.24 |
185,379.24 |
|
Total Assets |
209,745,505.99 |
107,465,952.38 |
147,962,651.00 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Promissory Notes |
9,937,975.97 |
26,410,140.54 |
26,937,458.56 |
|
Trade Accounts Payable |
158,197,616.75 |
48,993,953.69 |
92,686,677.66 |
|
Accrued Income Tax |
1,122,485.09 |
691,466.38 |
1,271,749.97 |
|
Loan Payable Loan from Director |
130,000.00 |
- |
- |
|
Other Current Liabilities |
123,472.71 |
595,546.48 |
699,481.62 |
|
Total Current Liabilities |
169,511,550.52 |
76,691,107.09 |
121,595,367.81 |
|
Total Liabilities |
169,511,550.52 |
76,691,107.09 |
121,595,367.81 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 80,000 shares
in 2013 & 2012; 60,000
shares in 2011 |
8,000,000.00 |
8,000,000.00 |
6,000,000.00 |
|
Capital Paid |
8,000,000.00 |
8,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated
|
32,233,955.47 |
22,774,845.29 |
20,367,283.19 |
|
Total Shareholders' Equity |
40,233,955.47 |
30,774,845.29 |
26,367,283.19 |
|
Total Liabilities & Shareholders' Equity |
209,745,505.99 |
107,465,952.38 |
147,962,651.00 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
473,906,077.31 |
220,088,338.61 |
374,449,707.72 |
|
Other Income |
2,274,053.76 |
1,408,376.68 |
368,573.20 |
|
Total Revenues |
476,180,131.08 |
221,496,715.29 |
374,818,280.92 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
455,560,872.36 |
210,570,310.34 |
362,552,233.88 |
|
Selling Expenses |
213,235.12 |
59,725.05 |
78,774.28 |
|
Administrative Expenses |
7,552,307.22 |
5,766,590.79 |
5,500,058.57 |
|
Total Expenses |
463,326,414.75 |
216,396,626.18 |
368,131,066.73 |
|
Profit / [Loss] before Financial Cost & Income Tax |
12,853,716.32 |
5,100,089.11 |
6,687,214.19 |
|
Financial Cost |
[1,022,121.05] |
[808,048.18] |
[459,693.35] |
|
Profit / [Loss] before Income
Tax |
11,831,595.27 |
4,292,040.93 |
6,227,520.84 |
|
Income Tax |
[2,372,485.09] |
[1,266,466.38] |
[2,246,749.97] |
|
Net Profit / [Loss] |
9,459,110.18 |
3,025,574.55 |
3,980,770.87 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.40 |
1.21 |
|
QUICK RATIO |
TIMES |
1.02 |
0.70 |
0.75 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4,701.40 |
11,855.85 |
7,893.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.26 |
2.05 |
2.53 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
29.38 |
92.04 |
57.05 |
|
INVENTORY TURNOVER |
TIMES |
12.42 |
3.97 |
6.40 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
132.38 |
85.73 |
87.39 |
|
RECEIVABLES TURNOVER |
TIMES |
2.76 |
4.26 |
4.18 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
126.75 |
84.93 |
93.31 |
|
CASH CONVERSION CYCLE |
DAYS |
35.01 |
92.85 |
51.13 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.13 |
95.68 |
96.82 |
|
SELLING & ADMINISTRATION |
% |
1.64 |
2.65 |
1.49 |
|
INTEREST |
% |
0.22 |
0.37 |
0.12 |
|
GROSS PROFIT MARGIN |
% |
4.35 |
4.96 |
3.28 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.71 |
2.32 |
1.79 |
|
NET PROFIT MARGIN |
% |
2.00 |
1.37 |
1.06 |
|
RETURN ON EQUITY |
% |
23.51 |
9.83 |
15.10 |
|
RETURN ON ASSET |
% |
4.51 |
2.82 |
2.69 |
|
EARNING PER SHARE |
BAHT |
118.24 |
37.82 |
66.35 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.81 |
0.71 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.21 |
2.49 |
4.61 |
|
TIME INTEREST EARNED |
TIMES |
12.58 |
6.31 |
14.55 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
115.33 |
(41.22) |
|
|
OPERATING PROFIT |
% |
152.03 |
(23.73) |
|
|
NET PROFIT |
% |
212.64 |
(24.00) |
|
|
FIXED ASSETS |
% |
443.00 |
(60.87) |
|
|
TOTAL ASSETS |
% |
95.17 |
(27.37) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 115.33%. Turnover has increased from THB
220,088,338.61 in 2012 to THB 473,906,077.31 in 2013. While net profit has
increased from THB 3,025,574.55 in 2012 to THB 9,459,110.18 in 2013. And total
assets has increased from THB 107,465,952.38 in 2012 to THB 209,745,505.99 in
2013.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.35 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
2.00 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
4.51 |
Impressive |
Industrial Average |
3.55 |
|
Return on Equity |
23.51 |
Impressive |
Industrial Average |
14.14 |
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 4.35%. 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%, 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
4.51%, 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 23.51%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.24 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
1.02 |
|
|
|
|
Cash Conversion Cycle |
35.01 |
|
|
|
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 1.24 times in 2013, decreased from 1.4 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 1.02 times in 2013,
increased from 0.7 times, although excluding inventory so the company still have
good short-term financial strength.
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 36 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.81 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
4.21 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
12.58 |
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 12.58 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 0.81 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 |
4,701.40 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.26 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
29.38 |
|
|
|
|
Inventory Turnover |
12.42 |
Impressive |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
132.38 |
|
|
|
|
Receivables Turnover |
2.76 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
126.75 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.76 and 4.26 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
decreased from 2012. 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 92 days at the
end of 2012 to 29 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.97 times in year 2012 to 12.42
times in year 2013.
The company's Total Asset Turnover is calculated as 2.26 times and 2.05
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.61.02 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.77.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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 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.