MIRA
INFORM REPORT
|
Report No. : |
335407 |
|
Report Date : |
05.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
RCAN JEWELLERY
CO., LTD. |
|
|
|
|
Registered Office : |
11th Floor, Bangkok Gem & Jewellery
Tower, 322/14B, 322/15 Surawongse Road,
Sipaya, Bangrak, Bangkok 10500 |
|
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|
|
Country : |
|
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|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
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Date of Incorporation : |
31.01.2008 |
|
|
|
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Com. Reg. No.: |
0105551013111 |
|
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|
Legal Form : |
Private Limited Company |
|
|
|
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Line of Business : |
Importer, Distributor and Exporter of Diamonds, Gemstones and Jewelry. |
|
|
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No. of Employees : |
8 |
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 |
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|
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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 has historically had a strong economy due in part to industrial and
agriculture exports - mostly electronics, agricultural commodities, automobiles
and parts, and processed foods. The economy experienced slow growth and
declining exports in 2014, in part due to domestic political turmoil and
sluggish global demand. With full employment, Thailand attracts an estimated 4
million migrant workers from neighboring countries, and faces labor shortages.
Following the May 2014 coup d’tat, tourism decreased 6-7% but is beginning to
recover. The household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
Source
: CIA |
Company Name and address
RCAN JEWELLERY CO., LTD.
SUMMARY
BUSINESS ADDRESS : 11th
FLOOR, BANGKOK GEM & JEWELLERY TOWER,
322/14B,
322/15 SURAWONGSE ROAD, SIPAYA,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2631-7494, 081 899-8011
FAX : [66] 2631-7497
E-MAIL ADDRESS : rcanjewellerybkk@gmail.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2008
REGISTRATION NO. : 0105551013111
TAX ID NO. : 3032935173
CAPITAL REGISTERED : BHT. 35,000,000
CAPITAL PAID-UP : BHT. 35,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMIT RASIKLAL GANDHI,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 8
LINES OF BUSINESS : DIAMONDS,
GEMSTONES AND JEWELRY
IMPORTER,
DISTRIBUTOR AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on January
31, 2008 as
a private limited
company under the registered name
RCAN JEWELLERY CO.,
LTD., by Thai and
Indian groups, in order
to operate a
jewelry trading business.
It currently employs
8 staff.
The subject’s registered
address was initially
at Bangkok Gem
and Jewellery Tower,
322/15 Surawongse Rd., Sipaya,
Bangrak, Bangkok 10500.
On February 25, 2009, the subject’s
registered address was relocated to
2210/30 Narathiwas
Ratchanakarin Rd., Chongnonsi, Yannawa, Bangkok 10120.
On August 4,
2014, the registered
address was moved
back to Bangkok
Gem and Jewellery Building, 322/14B, 322/15 Surawongse Rd., Sipaya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amit Rasiklal Gandhi |
|
Indian |
41 |
|
Mr. Nirav Rasiklal
Gandhi |
|
Indian |
38 |
AUTHORIZED PERSON
One of
the above directors
can sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amit
Rasiklal Gandhi
is the Managing
Director.
He is
Indian nationality with
the age of 41
years old.
Mr. Nirav Rasiklal Gandhi is
the Assistant Managing
Director.
He is Indian nationality
with the age of 38 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing
and distributing of diamonds and
gemstones, as well
as exporting of
fine jewelry, such as 18k
white gold pendant,
18k white gold
diamond jewelry with
emerald, and 18k
white gold necklace
& earrings set
and etc.
PURCHASE
The subject
hires local contract
manufacture for the
production of fine
jewelry, while diamonds
and gemstones are
imported from India
and Hong Kong.
SALES [LOCAL]
Diamonds and
gemstones are sold
locally by wholesale
to jewelry manufacturers.
EXPORT
100% of
jewelry products is
exported to India,
Japan, Hong Kong, U.S.A.,
Turkey,
Republic of China, Russia,
Bahrain, Pakistan, United
Arab Emirates and
other 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 the
past two years.
CREDIT
Sales are
by cash or
on the credits
term of 30-60
days.
Local bills
are paid by
cash or on
the credits term
of 30-60 days.
Imports are
by T/T.
Exports are
against T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject currently employs 8 staff.
LOCATION DETAILS
The premise is rented for administrative office at
the heading address. Premise is located in a prime
commercial area.
COMMENT
The subject was formed in 2008 as
an importer, distributor
and exporter of
diamond, gemstones and jewelry products. However,
economy slowdown in
accordance with slow
domestic consumption has
caused to slow
growth of jewelry business,
as well as,
the impact of
slow spending and
shrinking purchasing power
would pressure subject’s
performance in the
previous year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000 divided
into 40,000 shares of Bht. 100
each with fully
paid.
The capital was
increased later as
follows:
Bht. 10,000,000
on June 10,
2009
Bht. 16,000,000
on May 9,
2011
Bht. 35,000,000
on November 2, 2011
The latest registered
capital was increased
to Bht. 35,000,000 divided
into 350,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amit Rasiklal
Gandhi Nationality: Indian Address :
111/29 Soi Sribampen,
Thungmahamek, Sathorn, Bangkok |
100,000 |
28.57 |
|
Mr. Nirav Rasiklal
Gandhi Nationality: Indian Address :
111/29 Soi Sribampen,
Thungmahamek, Sathorn, Bangkok |
71,500 |
20.43 |
|
Mr. Boonlom
Khamnont Nationality: Thai Address :
44 Moo 4,
T. Koodhae, A.
Lerngnoktha, Yasothorn |
35,700 |
10.20 |
|
Mrs. Chotika
Yimchan Nationality: Thai Address :
60/7 Moo 4,
T. Bangmaenang, A.
Muang, Nonthaburi |
35,700 |
10.20 |
|
Ms. Varanya
Buatoom Nationality: Thai Address :
78 Moo 9,
T. Taladkwan, A. Muang, Nonthaburi |
35,700 |
10.20 |
|
Ms. Bang-on Nuathong Nationality: Thai Address :
9 Moo 13, T. Sarklek,
A. Sarklek, Pichit |
35,700 |
10.20 |
|
Mr.
Narong Rongjong Nationality: Thai Address :
172 Moo 1, T. Banmuang, A. Nernmaprang, Phisanuloke |
35,700 |
10.20 |
Total Shareholders
: 7
Share Structure
[as at
April 30, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
178,500 |
51.00 |
|
Foreign - Indian |
2 |
171,500 |
49.00 |
|
Total |
7 |
350,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Sirirat Adam
No. 8820
note
The 2014
financial statement is
not available during
an investigation.
BALANCE SHEET [BAHT]
The latest financial
figures published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
187,936.00 |
133,773.88 |
124,261.44 |
|
Trade Accounts & Other Receivable |
5,455,549.95 |
44,046,225.77 |
105,776,158.20 |
|
Inventories |
221,885,019.76 |
184,818,638.88 |
107,741,023.58 |
|
|
|
|
|
|
Total Current
Assets |
227,528,505.71 |
228,998,638.53 |
213,641,443.22 |
|
Fixed Assets |
13,754,252.12 |
14,171,363.51 |
15,116,414.18 |
|
Other Non-current Assets |
235,347.66 |
235,347.66 |
235,347.66 |
|
Total Assets |
241,518,105.49 |
243,405,349.70 |
228,993,205.06 |
LIABILITIES
& SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan from Financial
Institutions |
91,030,241.02 |
59,966,823.86 |
60,031,571.65 |
|
Trade Accounts
and Other Payable |
43,325,928.78 |
28,342,159.75 |
25,199,420.78 |
|
Short-term
Loan from Person or Related Company |
63,350,017.86 |
112,830,017.86 |
102,030,017.86 |
|
Accrued Income
Tax |
360,650.55 |
362,987.25 |
344,657.15 |
|
Other Current
Liabilities |
258,833.48 |
123,203.99 |
403,374.00 |
|
|
|
|
|
|
Total Current
Liabilities |
198,325,671.69 |
201,625,192.71 |
188,009,041.44 |
|
Long-term Loan
from Financial Institutions |
1,081,951.65 |
1,451,949.01 |
1,814,936.26 |
|
Total Liabilities
|
199,407,623.34 |
203,077,141.72 |
189,823,977.70 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized
& issued share
capital 350,000
shares |
35,000,000.00 |
35,000,000.00 |
35,000,000.00 |
|
|
|
|
|
|
Capital Paid |
35,000,000.00 |
35,000,000.00 |
35,000,000.00 |
|
Retained Earning - Unappropriated |
7,110,482.15 |
5,328,207.98 |
4,169,227.36 |
|
Total Shareholders' Equity |
42,110,482.15 |
40,328,207.98 |
39,169,227.36 |
|
Total Liabilities
& Shareholders' Equity |
241,518,105.49 |
243,405,349.70 |
228,993,205.06 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
111,635,904.89 |
78,081,590.10 |
153,487,559.52 |
|
Others Income |
1,809,515.01 |
3,080,959.77 |
4,162,753.28 |
|
Total Revenues |
113,445,419.90 |
81,162,549.87 |
157,650,312.80 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
97,048,944.37 |
65,252,111.55 |
140,516,152.83 |
|
Selling Expenses |
2,611,892.86 |
2,131,112.26 |
2,554,023.83 |
|
Administrative Expenses |
5,933,194.04 |
7,941,341.57 |
8,671,470.05 |
|
Total Expenses
|
105,594,031.27 |
75,324,565.38 |
151,741,646.71 |
|
|
|
|
|
|
Profit /
[Loss] before Financial
Cost & Income
Tax |
7,851,388.63 |
5,837,984.49 |
5,908,666.09 |
|
Financial Cost |
[5,954,977.68] |
[4,325,799.88] |
[3,566,413.35] |
|
Profit /
[Loss] before Income
Tax |
1,896,410.95 |
1,512,184.61 |
2,342,252.74 |
|
Income Tax |
[382,562.99] |
[353,203.99] |
[755,874.00] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,513,847.96 |
1,158,980.62 |
1,586,378.74 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.14 |
1.14 |
|
QUICK RATIO |
TIMES |
0.03 |
0.22 |
0.56 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
8.12 |
5.51 |
10.15 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
0.46 |
0.32 |
0.67 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
834.51 |
1,033.82 |
279.86 |
|
INVENTORY
TURNOVER |
TIMES |
0.44 |
0.35 |
1.30 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
17.84 |
205.90 |
251.54 |
|
RECEIVABLES
TURNOVER |
TIMES |
20.46 |
1.77 |
1.45 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION
CYCLE |
DAYS |
852.34 |
1,239.72 |
531.40 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
86.93 |
83.57 |
91.55 |
|
SELLING &
ADMINISTRATION |
% |
7.65 |
12.90 |
7.31 |
|
INTEREST |
% |
5.33 |
5.54 |
2.32 |
|
GROSS PROFIT
MARGIN |
% |
14.69 |
20.38 |
11.16 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
7.03 |
7.48 |
3.85 |
|
NET PROFIT MARGIN |
% |
1.36 |
1.48 |
1.03 |
|
RETURN ON EQUITY |
% |
3.59 |
2.87 |
4.05 |
|
RETURN ON ASSET |
% |
0.63 |
0.48 |
0.69 |
|
EARNING PER SHARE |
BAHT |
4.33 |
3.31 |
4.53 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.83 |
0.83 |
|
DEBT TO EQUITY
RATIO |
TIMES |
4.74 |
5.04 |
4.85 |
|
TIME INTEREST
EARNED |
TIMES |
1.32 |
1.35 |
1.66 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
42.97 |
(49.13) |
|
|
OPERATING PROFIT |
% |
34.49 |
(1.20) |
|
|
NET PROFIT |
% |
30.62 |
(26.94) |
|
|
FIXED ASSETS |
% |
(2.94) |
(6.25) |
|
|
TOTAL ASSETS |
% |
(0.78) |
6.29 |
|
ANNUAL GROWTH: SATISFACTORY
An annual sales growth
is 42.97%. Turnover has increased from THB 78,081,590.10 in 2012 to THB
111,635,904.89 in 2013. While net profit has increased from THB 1,158,980.62 in
2012 to THB 1,513,847.96 in 2013. And total assets has decreased from THB
243,405,349.70 in 2012 to THB 241,518,105.49 in 2013.
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit
Margin |
14.69 |
Acceptable |
Industrial Average |
26.02 |
|
Net Profit Margin |
1.36 |
Deteriorated |
Industrial Average |
4.78 |
|
Return on Assets |
0.63 |
Deteriorated |
Industrial Average |
13.79 |
|
Return on Equity |
3.59 |
Deteriorated |
Industrial Average |
25.22 |
Gross Profit Margin
used to assess a firm's financial health by revealing the proportion of money left
over from revenues after accounting for the cost of goods sold. Gross profit
margin serves as the source for paying additional expenses and future savings.
The company's figure is 14.69%. When compared with the industry average, the
ratio of the company was lower. This indicated that company may have problems
with control over its costs.
Net Profit Margin
is the indicator of the company's efficiency in that net profit takes into
consideration all expenses of the company. A low profit margin indicates a low
margin of safety, higher risk that a decline in sales will erase profits and
result in a net loss. The company's figure is 1.36%. When compared with the
industry average, the ratio of the company was lower.
Return on Assets
measures how efficiently profits are being generated from the assets employed
in the business when compared with the ratios of firms in a similar business. A
low ratio in comparison with industry averages indicates an inefficient use of
business assets. When compared with the industry average, it was lower, the company's figure is 0.63%.
Return on Equity
indicates how profitable a company is by comparing its net income to its
average shareholders' equity, ROE measures how much the shareholders earned for
their investment in the company. When compared with the industry average, it
was lower, the company's figure is 3.59%.
Trend of the average competitors in the same
industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.15 |
Deteriorated |
Industrial Average |
2.70 |
|
Quick Ratio |
0.03 |
|
|
|
|
Cash Conversion
Cycle |
852.34 |
|
|
|
The Current Ratio is
to ascertain whether a company's short-term assets are readily available to pay
off its short-term liabilities. The company's figure is 1.15 times in 2013,
increased from 1.14 times, then it is generally considered to have good
short-term financial strength. When compared with the industry average, the
ratio of the company was lower.
The Quick Ratio is
a liquidity indicator that further refines the current ratio by measuring the
amount of the most liquid current assets there are to cover current liabilities.
The company's figure is 0.03 times in 2013, decreased from 0.22 times, then the
company has not enough current assets that presumably can be quickly converted
to cash for pay financial obligations.
The Cash Conversion
Cycle measures the number of days a company's cash is tied up in the production
and sales process of its operations and the benefit from payment terms from its
creditors. It meant the company could survive when no cash inflow was received
from sale for 853 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial Average |
0.59 |
|
Debt to Equity
Ratio |
4.74 |
Risky |
Industrial Average |
1.10 |
|
Times Interest
Earned |
1.32 |
Impressive |
Industrial Average |
- |
Debt to Equity
Ratio a measurement of how much suppliers, lenders, creditors and obligors have
committed to the company versus what the shareholders have committed. A higher the
percentage means that the company is using less equity and has stronger
leverage position.
Times Interest
Earned measuring a company's ability to meet its debt obligations. Ratio is
1.32 higher than 1, so the company can pay interest expenses on outstanding
debt.
Debt Ratio shows
the proportion of a company's assets which are financed through debt. The
company's figure is 0.83 greater than 0.5, most of the company's assets are
financed through debt.
Trend of the average competitors in the same
industry for last 5 years
Debt Ratio Uptrend
Times Interest
Earned Stable
ACTIVITY : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets
Turnover |
8.12 |
Impressive |
Industrial Average |
- |
|
Total Assets
Turnover |
0.46 |
Deteriorated |
Industrial Average |
4.96 |
|
Inventory
Conversion Period |
834.51 |
|
|
|
|
Inventory
Turnover |
0.44 |
Deteriorated |
Industrial Average |
11.41 |
|
Receivables
Conversion Period |
17.84 |
|
|
|
|
Receivables
Turnover |
20.46 |
Impressive |
Industrial Average |
7.69 |
|
Payables
Conversion Period |
- |
|
|
|
The company's
Account Receivable Ratio is calculated as 20.46 and 1.77 in 2013 and 2012
respectively. This ratio measures the efficiency of the company in managing its
trade debtors to generate revenue. A lower ratio may indicate over extension
and collection problems. Conversely, a higher ratio may indicate an overtly
stringent policy. In this case, the company's A/R ratio in 2013 increased from
2012. This would suggest the company had good performance in the management of
its debt collections.
Inventory Turnover
in Days Ratio indicates the liquidity of inventory. It estimates the number of
days that it will take to sell the current inventory. Inventory is particularly
sensitive to change in business activities. The inventory turnover in days has
decreased from 1034 days at the end of 2012 to 835 days at the end of 2013.
This represents a positive trend. And Inventory turnover has increased from
0.35 times in year 2012 to 0.44 times in year 2013.
The company's Total
Asset Turnover is calculated as 0.46 times and 0.32 times in 2013 and 2012
respectively. This ratio is determined by dividing total assets into total
sales turnover. The ratio measures the activity of the assets and the ability
of the firm to generate sales through the use of the assets.
Trend of the average competitors in the same
industry for last 5 years
Fixed Assets
Turnover Stable
Total Assets
Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.93 |
|
|
1 |
Rs.99.82 |
|
Euro |
1 |
Rs.70.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.