MIRA INFORM REPORT
|
Report No. : |
357046 |
|
Report Date : |
28.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
NATASHA CREATIONS CO., LTD. |
|
|
|
|
Registered Office : |
14th Floor, Bangkok Gem & Jewellery Tower, 322/27, 322/29 Surawong Road, Siphya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
30.03.1998 |
|
|
|
|
Com. Reg. No.: |
0105541020432 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of Diamond and Gold Jewelry Products. |
|
|
|
|
No. of Employees : |
230 |
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 : |
Good |
|
|
|
|
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 – 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, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive 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 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, 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
NATASHA CREATIONS CO., LTD.
SUMMARY
BUSINESS ADDRESS : 14th
FLOOR, BANGKOK GEM
& JEWELLERY TOWER,
322/27,
322/29 SURAWONG ROAD,
SIPHYA, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2234-1202,
2233-0054, 2233-4288
FAX :
[66] 2237-5216
E-MAIL ADDRESS : info@natasha-creations.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1998
REGISTRATION NO. : 0105541020432 [Former : 283/2541]
TAX ID NO. : 3011921227
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT. 70,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAJEEV KUMAR
KAPADIA, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 230
LINES OF BUSINESS : DIAMOND
AND GOLD JEWELRY PRODUCTS
MANUFACTURER
AND EXPORTER
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 March 30,
1998 as a private limited
company under the
registered name NATASHA CREATIONS
CO., LTD., by Thai and
foreign groups, to manufacture diamond
and gold jewelry to
overseas markets. It
currently employs approximately 230 staff.
The subject’s registered
address is 14th Floor, Bangkok
Gem & Jewellery
Tower, 322/27,
322/29 Surawong Rd., Siphya, Bangrak, Bangkok 10500, and this
is the subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Isira Aoonharasmee |
|
Thai |
52 |
|
Mr. Rajeev Kumar
Kapadia |
|
Indian |
53 |
|
Mrs. Shilpa Rajeev
Kapadia |
|
Indian |
- |
|
Mr. Salil Prasan
Manilal |
|
American |
53 |
AUTHORIZED
PERSON
Anyone of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Rajeev
Kumar Kapadia
is the Managing
Director.
He is
Indian nationality with
the age of
53 years old.
Mr. Anan Prakobtham is the
Factory Manager.
He is
Thai nationality.
Ms. Isira Aoonharasmee
is the General Manager.
She is
Thai nationality with
the age of
52 years old.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
and exporting various
kinds of jewelry
products, e.g. diamond jewelry
with 14k and
18k gold, silver and
platinum jewelry. The
products include ring,
earrings, pendent, bracelet,
necklace, brooch and etc.,
under its own brand
“NATASHA-CREATION” as well
as customer’s brands.
PURCHASE
Raw materials such
as diamonds, gold, gemstones and accessories
are purchased from suppliers
both local and overseas,
mainly in India, Hong Kong,
Japan and South Africa.
MAJOR SUPPLIER
Gem Star Company
Private Limited :
India
EXPORT
100% of the
products is exported to United
Kingdom, Switzerland, United States of
America, Hong Kong, India, Korea, Japan,
Singapore, Australia, Republic of China, Vietnam, Taiwan, Russia,
Pakistan, Middle East
and European countries.
RELATED/
AFFILIATED COMPANY
Sagar Gems
& Jewellery Manufacturing
Co., Ltd.
Business Type
: Manufacturer of
jewelry products
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
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 L/C at
sight or T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 230 office
staff and factory
workers.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory and warehouse are
located at 38 Gemopolis Industrial Estate, 4th-5th Floor, IGS
Building, Sukhapiban 2 Rd.,
Dokmai, Praves, Bangkok
10260.
Tel : [66]
2727-0600-4, Fax :
[66] 2727-0605
COMMENT
The subject disclosed
outstanding sales in 2014.
There was a
demand of the
products from export
market which contributes
to the subject’s
strong sales income.
Despite slow consumption
in many countries,
the subject is
able to maintain
strong business.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each.
The capital was
increased later as
following:
Bht. 10,000,000 on
August 5, 1998
Bht. 25,000,000 on
August 17, 1999
Bht. 35,000,000 on
July 16, 2001
Bht. 50,000,000 on
May 8, 2002
Bht. 60,000,000 on
December 25, 2007
Bht. 80,000,000 on
March 2, 2012
The latest registered
capital was increased
to Bht. 80,000,000 divided
into 800,000 shares
of Bht. 100
each, with the
current capital paid-up
at Bht. 70,000,000
or 600,000 shares
of Bht. 100
each and 200,000
shares of Bht.
50 each.
THE
SHAREHOLDERS LISTED WERE
[as at April
30, 2015] at
Bht. 70,000,000 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Isira Aoonharasmee Nationality: Thai Address :
208 Moo 5, Banpong,
Prao, Chiangmai |
168,000 |
21.00 |
|
Mr.
Rajeev Kumar Kapadia Nationality: Indian Address :
322/27 Surawong Road,
Siphya, Bangrak, Bangkok |
160,000 |
20.00 |
|
Akash Finance
Holding Ltd. Nationality: BVI Address :
P.O. Box 3321 Tortola,
British Virgin
Islands |
132,000 |
16.50 |
|
Ms.
Busara Milawan Nationality: Thai Address :
49 Trok Wate,
Silom Road, Silom, Bangrak, Bangkok |
120,000 |
15.00 |
|
Ms.
Sudsiri Trongkamoltham Nationality: Thai Address :
36/25-26 Trok Nokkhet,
Chongnonsi, Yannawa, Bangkok |
120,000 |
15.00 |
|
Mrs.
Shilpa Rajeev Kapadia Nationality: Indian Address :
322/27 Surawong Road,
Siphya, Bangrak, Bangkok |
100,000 |
12.50 |
Total Shareholders
: 6
Share
Structure
[as at
April 30, 2015]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
408,000 |
51.00 |
|
Foreign |
3 |
392,000 |
49.00 |
|
Total |
6 |
800,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Walit Panpoonsap
No. 4018
BALANCE
SHEET [BAHT]
The latest
financial figures published as at December
31, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
5,095,060.65 |
641,219.56 |
2,906,031.87 |
|
Trade Accounts
Receivable |
527,330,988.35 |
523,561,364.46 |
424,253,068.09 |
|
Other Receivable |
4,189,250.09 |
1,452,380.76 |
1,315,629.18 |
|
Total Trade
Accounts Receivable |
531,520,238.44 |
525,013,745.22 |
425,568,697.27 |
|
Inventories |
343,783,066.17 |
374,217,146.97 |
391,766,791.67 |
|
Cash at Bank
pledged as a Collateral |
126,410,366.52 |
126,414,809.31 |
126,432,087.89 |
|
Refundable Value
Added Tax |
1,504,545.17 |
1,005,580.58 |
595,059.15 |
|
Other Current
Assets |
59,793.19 |
78,170.20 |
142,597.09 |
|
|
|
|
|
|
Total Current
Assets |
1,008,373,070.14 |
1,027,370,671.84 |
947,411,264.94 |
|
Fixed Assets |
41,945,180.24 |
41,370,832.59 |
44,345,014.03 |
|
Other Assets |
955,869.16 |
1,275,383.48 |
1,090,474.81 |
|
Total Assets |
1,051,274,119.54 |
1,070,016,887.91 |
992,846,753.78 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft
& Loan from Bank |
433,646,002.19 |
516,199,012.73 |
489,072,634.40 |
|
Trade Accounts
Payable |
277,656,082.37 |
255,742,236.76 |
262,022,463.22 |
|
Other Payable |
7,465,382.77 |
7,673,131.73 |
2,086,845.44 |
|
Total Trade
Accounts Payable |
285,121,465.14 |
263,415,368.49 |
264,109,308.66 |
|
Advance Income
from Customer |
2,706,505.74 |
18,218,096.90 |
15,389,981.11 |
|
Current Portion
of Hire-purchase Contract
Liabilities |
789,538.96 |
485,068.00 |
1,750,329.00 |
|
Accrued Commission |
35,958,761.63 |
32,436,255.34 |
26,426,658.00 |
|
Accrued Income
Tax |
8,324,121.76 |
6,305,886.40 |
3,697,052.29 |
|
Other Current
Liabilities |
2,126,761.14 |
1,527,018.64 |
1,824,204.41 |
|
|
|
|
|
|
Total Current
Liabilities |
768,673,156.56 |
838,586,706.50 |
802,270,167.87 |
|
Hire-purchase Contract
Liabilities, net |
2,897,799.77 |
189,620.00 |
674,688.00 |
|
Other Liabilities - Employee
Benefits |
4,162,320.50 |
2,091,951.68 |
1,518,069.53 |
|
Total Liabilities
|
775,733,276.83 |
840,868,278.18 |
804,462,925.40 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized
& issued share
capital 800,000 shares |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
|
|
|
|
|
Capital Paid |
70,000,000.00 |
70,000,000.00 |
70,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
7,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Unappropriated |
198,540,842.71 |
153,148,609.73 |
112,383,828.38 |
|
Total Shareholders' Equity |
275,540,842.71 |
229,148,609.73 |
188,383,828.38 |
|
Total Liabilities
& Shareholders' Equity |
1,051,274,119.54 |
1,070,016,887.91 |
992,846,753.78 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
1,484,378,401.00 |
1,381,249,011.04 |
1,332,885,344.41 |
|
Gain on
Exchange Rate |
- |
2,273,412.38 |
7,028,470.41 |
|
Other Income |
3,799,672.65 |
3,650,029.20 |
3,743,239.79 |
|
Total Revenues |
1,488,178,073.65 |
1,387,172,452.62 |
1,343,657,054.61 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
1,321,891,757.87 |
1,246,845,578.59 |
1,232,705,242.18 |
|
Selling Expenses |
43,718,685.68 |
45,087,126.71 |
35,472,023.03 |
|
Administrative Expenses |
33,305,545.25 |
24,496,866.54 |
26,716,462.82 |
|
Loss on Exchange Rate |
6,102,305.14 |
- |
- |
|
Total Expenses
|
1,405,018,293.94 |
1,316,429,571.84 |
1,294,893,728.03 |
|
|
|
|
|
|
Profit before
Financial Costs & Income
Tax |
83,159,779.71 |
70,742,880.78 |
48,763,326.58 |
|
Financial Costs |
[18,320,587.52] |
[19,786,090.06] |
[17,541,056.69] |
|
Income Tax |
[13,441,959.21] |
[10,192,009.37] |
[7,718,901.66] |
|
|
|
|
|
|
Net Profit / [Loss] |
51,397,232.98 |
40,764,781.35 |
23,503,368.23 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.31 |
1.23 |
1.18 |
|
QUICK RATIO |
TIMES |
0.70 |
0.63 |
0.53 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
35.39 |
33.39 |
30.06 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
1.41 |
1.29 |
1.34 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
94.93 |
109.55 |
116.00 |
|
INVENTORY
TURNOVER |
TIMES |
3.85 |
3.33 |
3.15 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
130.70 |
138.74 |
116.54 |
|
RECEIVABLES
TURNOVER |
TIMES |
2.79 |
2.63 |
3.13 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
78.73 |
77.11 |
78.20 |
|
CASH CONVERSION
CYCLE |
DAYS |
146.90 |
171.17 |
154.34 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
89.05 |
90.27 |
92.48 |
|
SELLING &
ADMINISTRATION |
% |
5.19 |
5.04 |
4.67 |
|
INTEREST |
% |
1.23 |
1.43 |
1.32 |
|
GROSS PROFIT
MARGIN |
% |
11.20 |
10.16 |
8.32 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
5.60 |
5.12 |
3.66 |
|
NET PROFIT MARGIN |
% |
3.46 |
2.95 |
1.76 |
|
RETURN ON EQUITY |
% |
18.65 |
17.79 |
12.48 |
|
RETURN ON ASSET |
% |
4.89 |
3.81 |
2.37 |
|
EARNING PER SHARE |
BAHT |
73.42 |
58.24 |
33.58 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.79 |
0.81 |
|
DEBT TO EQUITY
RATIO |
TIMES |
2.82 |
3.67 |
4.27 |
|
TIME INTEREST
EARNED |
TIMES |
4.54 |
3.58 |
2.78 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.47 |
3.63 |
|
|
OPERATING PROFIT |
% |
17.55 |
45.07 |
|
|
NET PROFIT |
% |
26.08 |
73.44 |
|
|
FIXED ASSETS |
% |
1.39 |
(6.71) |
|
|
TOTAL ASSETS |
% |
(1.75) |
7.77 |
|
ANNUAL
GROWTH: IMPRESSIVE
An annual sales
growth is 7.47%. Turnover has increased from THB
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit
Margin |
11.20 |
Impressive |
Industrial Average |
4.74 |
|
Net Profit Margin |
3.46 |
Satisfactory |
Industrial Average |
4.06 |
|
Return on Assets |
4.89 |
Satisfactory |
Industrial Average |
4.95 |
|
Return on Equity |
18.65 |
Impressive |
Industrial Average |
12.58 |
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 11.2%. 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 3.46%. 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 4.89%.
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 18.65%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.31 |
Satisfactory |
Industrial Average |
1.44 |
|
Quick Ratio |
0.70 |
|
|
|
|
Cash Conversion
Cycle |
146.90 |
|
|
|
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 1.31 times in 2014,
increased from 1.23 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 0.7 times in 2014, increased from 0.63 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 147 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Downtrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Impressive |
Industrial Average |
0.77 |
|
Debt to Equity
Ratio |
2.82 |
Acceptable |
Industrial Average |
3.32 |
|
Times Interest
Earned |
4.54 |
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
4.54 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 0.74 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets
Turnover |
35.39 |
Impressive |
Industrial Average |
- |
|
Total Assets
Turnover |
1.41 |
Impressive |
Industrial Average |
1.22 |
|
Inventory
Conversion Period |
94.93 |
|
|
|
|
Inventory
Turnover |
3.85 |
Impressive |
Industrial Average |
3.23 |
|
Receivables
Conversion Period |
130.70 |
|
|
|
|
Receivables
Turnover |
2.79 |
Impressive |
Industrial Average |
1.50 |
|
Payables
Conversion Period |
78.73 |
|
|
|
The company's Account
Receivable Ratio is calculated as 2.79 and
Inventory Turnover
in Days Ratio indicates the liquidity of inventory. It estimates the number of
days that it will take to sell the current inventory. Inventory is particularly
sensitive to change in business activities. The inventory turnover in days has
decreased from 110 days at the end of 2013 to 95 days at the end of 2014. This
represents a positive trend. And Inventory turnover has increased from 3.33
times in year 2013 to 3.85 times in year 2014.
The company's Total
Asset Turnover is calculated as 1.41 times and 1.29 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.
-
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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
TBH |
1 |
Rs.1.83 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TRU |
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.