MIRA INFORM REPORT
|
Report No. : |
337955 |
|
Report Date : |
24.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
SIGNATURE IMPEX
CO., LTD. |
|
|
|
|
Registered Office : |
Gemopolis Industrial Estate, 3rd Floor, 40/2 Soi 31, Sukhapibal 2 Road, Dokmai, Pravet, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Year of Establishment : |
1996 |
|
|
|
|
Com. Reg. No.: |
0105539075349 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in importing
and distributing diamonds
and gemstones for jewelry
production, as well
as exporting precious, semi-precious stones, fashion
accessories, diamond &
gemstones, jewelry and
silver products |
|
|
|
|
No. of Employee : |
17 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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
SIGNATURE
IMPEX CO., LTD.
[FORMER : BHARGAV GEMS
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : GEMOPOLIS INDUSTRIAL
ESTATE,
3rd FLOOR,
40/2 SOI 31,
SUKHAPIBAL 2 ROAD,
DOKMAI, PRAVET,
BANGKOK 10250, THAILAND
TELEPHONE : [66] 2727-0297 ,
2727-0519-21
FAX :
[66] 2727-0296
E-MAIL
ADDRESS : info@signatureimpex.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539075349
TAX
ID NO. : 3011743157
CAPITAL REGISTERED : BHT. 32,000,000
CAPITAL PAID-UP : BHT.
32,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NILESH KUMAR BHOLABHAI
PATEL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 17
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
TRADER
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 July
8, 1996 as a
private limited company
under the registered
name BHARGAV GEMS
CO., LTD., by
Indian groups, in
order to operate as a
jewelry trader. On May 27, 2005,
the subject’s name
was changed to
SIGNATURE IMPEX CO.,
LTD. It currently
employs 17 staff.
Presently,
the subject became
a joint venture
between Thai and
Foreign Groups.
The
subject’s registered address
was initially at 7/6 Soi
Suwansawat, Rama 4 Rd., Thungmahamek,
Sathorn, Bangkok 10120.
On
May 9, 2004,
subject’s registered address
was changed to
1535/108 Chan Rd.,
Thungwatdon, Sathorn, Bangkok
10120.
On June 6, 2007, the
subject’s registered address was
relocated to 3rd Flr., Gemopolis Industrial Estate, 40/2 Soi 31,
Sukhapibal 2 Rd., Dokmai, Pravet,
Bangkok 10250, and
this is the
subject’s current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nilesh Kumar Bholabhai Patel |
|
Indian |
36 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nilesh Kumar
Bholabhai Patel is
the Managing Director.
He is Indian
nationality with the
age of 36 years
old.
BUSINESS OPERATIONS
The
subject is engaged
in importing and
distributing diamonds and gemstones
for jewelry production,
as well as
exporting precious, semi-precious
stones, fashion accessories, diamond
& gemstones, jewelry and
silver products to
worldwide market.
The
subject hires local
manufactures for the production
of silverware and
jewelry
products.
IMPORT
Diamonds and gemstones
are imported from
India, Belgium, South Africa, Republic
of China and
Hong Kong.
EXPORT
The
products are sold
to customers both
domestic and international
markets, which 80%
of the products
is exported to Germany, France,
Belgium, Canada, Switzerland,
Japan, United Kingdom,
Italy, Hong Kong, Republic of
China, India, Kuwait,
Bahrain, United States
of America and
the countries in
Middle East, and
the remaining 20%
is sold locally.
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
10500]
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject employs 17 staff
[office and sales
staff].
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in
commercial/residential area.
COMMENT
The subject’s
business in the
year 2012 was
brisk due to consumption
improvement from export
markets in Asian region. Market expansion had
increased its sales revenue
in the previous
year.
Despite economic
sluggish, its business
outcome in 2014
remained brisk from
exports markets, while
domestic consumption is
relatively slow.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 4,000,000 divided
into 40,000 shares of Bht.
100 each.
The
capital was increased
later as follows:
Bht. 6,000,000
on December 13,
2001
Bht. 20,000,000
on December 19,
2002
Bht. 32,000,000
on April 11,
2006
The
latest registered capital
was increased to
Bht. 32,000,000 divided into
320,000 shares of
Bht. 100 each
with fully paid.
MAIN SHAREHOLDERS
[as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Montri Hattafuengfoo Nationality: Thai Address : 12/479
Moo 15, T. Bangkaew, A.
Bangplee, Samutprakarn |
60,000 |
18.75 |
|
Tresor First Worldwide
Pte. Ltd. Nationality: Singaporean Address : 96 Robinson Road, #16-01
SIF Building,
Singapore 068899 |
56,000 |
17.50 |
|
Mrs. Jayaben Bholabhai Patel Nationality: Indian Address : Mumbai,
India |
50,000 |
15.625 |
|
Mrs. Damista Bagawkumar
Patel Nationality: Indian Address : Mumbai,
India |
50,000 |
15.625 |
|
Ms. Sasiwan Phanpoka Nationality: Thai Address : 200/182
Moo 8, T. Kukot,
A. Lamlukka, Pathumthani |
34,400 |
10.75 |
|
Ms. Taweesin Saengsomsap Nationality: Thai Address : 70
Soi Sutthisarn 21,
Samsennai,
Phayathai, Bangkok |
34,400 |
10.75 |
|
Mr. Viwat Pongkeeratikarn Nationality: Thai Address : 550/217
Asoke-Dindaeng Road, Dindaeng, Bangkok |
12,200 |
3.81 |
|
Other Shareholders |
23,000 |
7.19 |
Total Shareholder : 11
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
163,200 |
51.00 |
|
Foreign |
3 |
156,800 |
49.00 |
|
Total |
11 |
320,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Sivachai Komthongsathit No.
6314
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
27,848.18 |
91,221.53 |
10,660.62 |
|
Trade Accounts & Other
Receivable |
42,138,348.70 |
114,111,876.73 |
320,996,672.34 |
|
Inventories |
158,119,883.02 |
137,018,096.93 |
481,858,499.60 |
|
Other Current Assets |
170,131.51 |
71,305.64 |
161,013.63 |
|
|
|
|
|
|
Total Current Assets
|
200,456,211.41 |
251,292,500.83 |
803,026,846.19 |
|
Real Estate for Investment |
12,699,448.11 |
13,258,987.69 |
13,860,512.66 |
|
Fixed Assets |
11,933,669.60 |
12,887,449.67 |
13,748,635.48 |
|
Intangible Assets |
2,089.23 |
39,625.95 |
147,238.35 |
|
Other Non-current Assets |
37,000.00 |
37,000.00 |
37,000.00 |
|
Total Assets |
225,128,418.35 |
277,515,564.14 |
830,820,232.68 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial Institutions |
80,801,399.03 |
3,252,977.95 |
25,739,985.97 |
|
Trade Accounts & Other
Payable |
95,719,521.75 |
229,351,738.25 |
759,821,836.58 |
|
Current Portion of Long-term
Loans |
462,000.00 |
1,851,428.35 |
2,527,357.50 |
|
Short-term Loan from Person or Related Company |
355,000.00 |
- |
665,162.68 |
|
Accrued Income Tax |
- |
- |
478,063.33 |
|
Other Current Liabilities |
46,000.00 |
24,200.00 |
9,000.00 |
|
|
|
|
|
|
Total Current Liabilities |
177,383,920.78 |
234,480,344.55 |
789,241,406.06 |
|
Long-term Loan, Net of Current Portion |
1,450,749.38 |
- |
1,849,534.78 |
|
Other Non-current Liabilities |
102,500.00 |
292,500.00 |
102,500.00 |
|
Total Liabilities |
178,937,170.16 |
234,772,844.55 |
791,193,440.84 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 320,000 shares |
32,000,000.00 |
32,000,000.00 |
32,000,000.00 |
|
|
|
|
|
|
Capital Paid |
32,000,000.00 |
32,000,000.00 |
32,000,000.00 |
|
Retained Earning - Unappropriated
|
14,191,248.19 |
10,742,719.59 |
7,626,791.84 |
|
Total Shareholders' Equity |
46,191,248.19 |
42,742,719.59 |
39,626,791.84 |
|
Total Liabilities &
Shareholders' Equity |
225,128,418.35 |
277,515,564.14 |
830,820,232.68 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales |
751,887,747.19 |
724,161,042.00 |
658,617,644.34 |
|
Rental Income |
1,350,000.00 |
1,715,000.00 |
1,060,000.00 |
|
Other Income |
7,126,605.84 |
1,093,044.67 |
5,086,239.06 |
|
Total Revenues |
760,364,353.03 |
726,969,086.67 |
664,763,883.40 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
736,570,726.84 |
708,269,424.19 |
648,321,768.76 |
|
Selling Expenses |
12,164,581.06 |
6,562,110.45 |
6,963,953.61 |
|
Administrative Expenses |
6,493,285.04 |
7,315,462.09 |
5,579,101.31 |
|
Total Expenses |
755,228,592.94 |
722,146,996.73 |
660,864,823.68 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income Tax |
5,135,760.09 |
4,822,089.94 |
3,899,059.72 |
|
Financial Cost |
[775,417.37] |
[866,909.83] |
[628,366.76] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
4,360,342.72 |
3,955,180.11 |
3,270,692.96 |
|
Income Tax |
[911,814.12] |
[839,252.36] |
[756,030.47] |
|
Net Profit / [Loss] |
3,448,528.60 |
3,115,927.75 |
2,514,662.49 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.13 |
1.07 |
1.02 |
|
QUICK RATIO |
TIMES |
0.24 |
0.49 |
0.41 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
63.12 |
56.32 |
47.98 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.35 |
2.62 |
0.79 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
78.35 |
70.61 |
271.28 |
|
INVENTORY TURNOVER |
TIMES |
4.66 |
5.17 |
1.35 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
20.42 |
57.38 |
177.61 |
|
RECEIVABLES TURNOVER |
TIMES |
17.88 |
6.36 |
2.06 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
47.43 |
118.19 |
427.77 |
|
CASH CONVERSION CYCLE |
DAYS |
51.34 |
9.80 |
21.12 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.79 |
97.57 |
98.28 |
|
SELLING & ADMINISTRATION |
% |
2.48 |
1.91 |
1.90 |
|
INTEREST |
% |
0.10 |
0.12 |
0.10 |
|
GROSS PROFIT MARGIN |
% |
3.16 |
2.58 |
2.49 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.68 |
0.66 |
0.59 |
|
NET PROFIT MARGIN |
% |
0.46 |
0.43 |
0.38 |
|
RETURN ON EQUITY |
% |
7.47 |
7.29 |
6.35 |
|
RETURN ON ASSET |
% |
1.53 |
1.12 |
0.30 |
|
EARNING PER SHARE |
BAHT |
10.78 |
9.74 |
7.86 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.85 |
0.95 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.87 |
5.49 |
19.97 |
|
TIME INTEREST EARNED |
TIMES |
6.62 |
5.56 |
6.21 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.77 |
10.03 |
|
|
OPERATING PROFIT |
% |
6.50 |
23.67 |
|
|
NET PROFIT |
% |
10.67 |
23.91 |
|
|
FIXED ASSETS |
% |
(7.40) |
(6.26) |
|
|
TOTAL ASSETS |
% |
(18.88) |
(66.60) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 3.77%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.16 |
Satisfactory |
Industrial
Average |
3.48 |
|
Net Profit Margin |
0.46 |
Acceptable |
Industrial
Average |
0.76 |
|
Return on Assets |
1.53 |
Deteriorated |
Industrial
Average |
4.67 |
|
Return on Equity |
7.47 |
Deteriorated |
Industrial
Average |
18.72 |
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 3.16%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 0.46%.
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 1.53%.
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 7.47%.
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 |
1.13 |
Satisfactory |
Industrial
Average |
1.40 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
51.34 |
|
|
|
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 1.13 times in 2014, increased from 1.07 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 0.24 times in 2014,
decreased from 0.49 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 52 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial
Average |
0.70 |
|
Debt to Equity Ratio |
3.87 |
Risky |
Industrial
Average |
2.29 |
|
Times Interest Earned |
6.62 |
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 6.63 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 0.79 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 |
63.12 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
3.35 |
Acceptable |
Industrial
Average |
5.55 |
|
Inventory Conversion Period |
78.35 |
|
|
|
|
Inventory Turnover |
4.66 |
Deteriorated |
Industrial
Average |
12.91 |
|
Receivables Conversion Period |
20.42 |
|
|
|
|
Receivables Turnover |
17.88 |
Impressive |
Industrial
Average |
7.05 |
|
Payables Conversion Period |
47.43 |
|
|
|
The company's Account Receivable Ratio is calculated as 17.88 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 increased from 71 days at the
end of 2013 to 78 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 5.17 times in year 2013 to 4.66 times
in year 2014.
The company's Total Asset Turnover is calculated as 3.35 times and 2.62
times in 2014 and 2013 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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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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.
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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.65.83 |
|
|
1 |
Rs.103.39 |
|
Euro |
1 |
Rs.74.27 |
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.