MIRA INFORM REPORT
|
Report No. : |
330841 |
|
Report Date : |
07.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
D.
RATANA Co., LTD. |
|
|
|
|
Registered Office : |
Unit 2510, 25th Floor,
Jewelry Trade Center, 919/324 Silom Rd.,
Silom, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
29.07.1993 |
|
|
|
|
Com. Reg. No.: |
0105536086773 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
engaged
in Importing, Distributing and Re-Exporting various
kinds of Diamond, Semi-Precious Stones
and Diamond Jewelry
with gold and Platinum Setting, as
well as exporting of
the Local Products.
|
|
|
|
|
No of Employees : |
04 |
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 |
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
D. RATANA Co.,
LTD.
SUMMARY
BUSINESS
ADDRESS : UNIT
2510, 25th FLOOR, JEWELRY TRADE CENTER,
919/324 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-0510-2
FAX :
[66] 2630-0513
E-MAIL
ADDRESS : dratana2006@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536086773
TAX
ID NO. : 3011308110
CAPITAL REGISTERED : BHT. 26,000,000
CAPITAL PAID-UP : BHT.
26,000,000
SHAREHOLDER’S PROPORTION : THAI :
53.00%
INDIAN
: 47.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SANDEEP MEHTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : JEWELRY PRODUCTS
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 July 29,
1993 as a
private limited company
under the name style
D. RATANA Co. LTD., by
Thai and Indian
groups, in order to
operate a jewelry
trading business. It
currently employs 4
staff.
The
subject’s registered address
is Unit 2510, 25th Floor,
Jewelry Trade Center, 919/324 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anil Kumar Kothari |
|
Indian |
54 |
|
Mrs. Kiran Kothari |
|
Indian |
50 |
|
Mr. Sandeep Mehta |
|
Indian |
43 |
|
Mr. Vipin Bohra |
|
Indian |
34 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sandeep Mehta is
the Managing Director.
He is Indian
nationality with the
age of 43 years
old.
BUSINESS
OPERATIONS
The subject is
engaged in importing,
distributing and
re-exporting various kinds
of diamond, semi-precious stones
and diamond jewelry
with gold and platinum
setting, as well
as exporting of
the local products.
PURCHASE
The
products are purchased
from manufacturers and
traders both in
domestic and
overseas
in India.
SALES LOCAL
The products are
sold locally by
wholesale to manufacturers
and traders.
EXPORT
The products are
exported and re-exported
to U.S.A., Japan,
India, Hong Kong,
Republic of China
and the countries
in Europe.
RELATED AND
AFFILIATED COMPANY
Pyramid Jewel’s & Art
Co., Ltd.
Business Type :
Importer and exporter
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
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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject currently employs
4 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 is engaged
in importing and
distributing of precious and
semi-precious stones for
jewelry production. Its
business performance was
good in the
previous year.
Economic
slowdown and shrinking
purchasing power are
the key factors
to slow down
its sales since
2014.
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. 4,000,000
on April
18, 1995
Bht. 6,000,000
on October
30, 1995
Bht. 11,000,000
on June
21, 2000
Bht. 22,000,000
on December
6, 2005
Bht. 26,000,000
on January
16, 2008
The
latest registered capital
was increased to
Bht. 26 million, divided into
260,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
January 8, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sandeep Mehta Nationality: Indian Address : Jaipur,
India |
57,500 |
22.12 |
|
Mr. Anil Kumar Kothari Nationality: Indian Address : Jaipur,
India |
54,900 |
21.12 |
|
Ms. Thanasirisap Nicholas Nationality: Thai Address : 13/1
Trok Wat Pathumvanaram,
Pathumwan, Bangkok |
48,200 |
18.54 |
|
Mr. Thamnai Sritakorn Nationality: Thai Address : 96
Moo 7, Thartnoi,
Kuengnai, Ubonratchathani |
35,600 |
13.69 |
|
Ms. Niyakorn Yathathes Nationality: Thai Address : 175
Moo 4, Huayjode,
Watthananakorn, Srakaew |
27,000 |
10.38 |
|
Ms. Nittaya Yathathet Nationality: Thai Address : 175
Moo 4, Huayjode,
Watthananakorn, Srakaew |
27,000 |
10.38 |
|
Mrs. Kiran Kothari Nationality: Indian Address : Jaipur,
India |
9,800 |
3.77 |
Total Shareholders : 7
Share
Structure [as
at January 8,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
137,800 |
53.00 |
|
Foreign-Indian |
3 |
122,200 |
47.00 |
|
Total |
7 |
260,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Narin Ployjinda No.
5931
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 |
208,404.37 |
222,729.12 |
396,250.62 |
|
Short-term Investment |
8,175,301.30 |
8,488,212.94 |
4,362,648.83 |
|
Trade Accounts & Other Receivable |
178,011,212.16 |
137,775,588.35 |
122,251,309.17 |
|
Inventories |
82,319,952.72 |
36,163,561.38 |
34,280,150.80 |
|
Other Current Assets
|
- |
10,411.68 |
- |
|
|
|
|
|
|
Total Current Assets
|
268,714,870.55 |
182,660,503.47 |
161,290,359.42 |
|
|
|
|
|
|
Fixed Assets |
25,676,779.82 |
27,102,770.83 |
26,972,763.03 |
|
Other Non-current Assets |
19,000.00 |
19,000.00 |
16,000.00 |
|
Total Assets |
294,410,650.37 |
209,782,274.30 |
188,279,122.45 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
119,150,491.27 |
97,330,160.01 |
52,651,236.15 |
|
Trade Accounts & Other Payable |
81,867,906.94 |
38,585,894.95 |
62,814,628.91 |
|
Current Portion of
Long-term Loans |
4,696,394.16 |
5,040,000.00 |
4,100,076.61 |
|
Current Portion of
Hire-purchase Payable |
623,073.85 |
592,545.81 |
- |
|
Short-term Loan from Related
Person |
- |
- |
26,445,968.00 |
|
Accrued Income Tax |
985,866.17 |
1,014,711.40 |
1,142,771.60 |
|
Other Current Liabilities |
1,221,173.37 |
1,312,146.93 |
747,199.72 |
|
|
|
|
|
|
Total Current Liabilities |
208,544,905.76 |
143,875,459.10 |
147,901,880.99 |
|
Long-term Loans, net
of Current Portion |
- |
4,194,147.65 |
9,351,997.44 |
|
Hire-purchase Payable, net
of Current Portion |
595,149.67 |
1,278,248.55 |
- |
|
Long-term Loan from
Related Person |
45,259,091.00 |
25,745,968.00 |
- |
|
Total Liabilities |
254,399,146.43 |
175,093,823.30 |
157,253,878.43 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 260,000 shares |
26,000,000.00 |
26,000,000.00 |
26,000,000.00 |
|
|
|
|
|
|
Capital Paid |
26,000,000.00 |
26,000,000.00 |
26,000,000.00 |
|
Retained Earning - Unappropriated |
14,011,503.94 |
8,688,451.00 |
5,025,244.02 |
|
Total Shareholders' Equity |
40,011,503.94 |
34,688,451.00 |
31,025,244.02 |
|
Total Liabilities &
Shareholders' Equity |
294,410,650.37 |
209,782,274.30 |
188,279,122.45 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Revenue from Domestic Sales |
210,441,251.98 |
194,015,070.22 |
102,904,869.62 |
|
Revenue from Overseas Sales |
91,399,647.50 |
87,871,547.95 |
116,962,127.82 |
|
Gain on Exchange Rate |
- |
- |
2,678,555.49 |
|
Interest Income |
166,005.65 |
128,044.64 |
- |
|
Other Income |
26,018.97 |
5,944.10 |
46,047.07 |
|
Total Revenues |
302,032,924.10 |
282,020,606.91 |
222,591,600.00 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
277,129,926.25 |
262,011,282.57 |
206,581,291.86 |
|
Selling Expenses |
4,101,488.21 |
4,458,006.51 |
3,407,020.67 |
|
Administrative Expenses |
6,144,193.39 |
5,616,285.89 |
5,888,105.97 |
|
Other Expenses |
3,399,977.61 |
257,191.23 |
- |
|
Total Expenses |
290,775,585.46 |
272,342,766.20 |
215,876,418.50 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
11,257,338.64 |
9,677,840.71 |
6,715,181.50 |
|
Financial Cost |
[4,047,126.48] |
[4,136,148.11] |
[3,575,775.04] |
|
|
|
|
|
|
Profit before Income Tax |
7,210,212.16 |
5,541,692.60 |
3,139,406.46 |
|
Income Tax |
[1,887,159.22] |
[1,878,485.62] |
[1,683,034.34] |
|
Net Profit / [Loss] |
5,323,052.94 |
3,663,206.98 |
1,456,372.12 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.29 |
1.27 |
1.09 |
|
QUICK RATIO |
TIMES |
0.89 |
1.02 |
0.86 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.76 |
10.40 |
8.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.03 |
1.34 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
108.42 |
50.38 |
60.57 |
|
INVENTORY TURNOVER |
TIMES |
3.37 |
7.25 |
6.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
215.26 |
178.40 |
202.95 |
|
RECEIVABLES TURNOVER |
TIMES |
1.70 |
2.05 |
1.80 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
107.83 |
53.75 |
110.98 |
|
CASH CONVERSION CYCLE |
DAYS |
215.85 |
175.02 |
152.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.81 |
92.95 |
93.96 |
|
SELLING & ADMINISTRATION |
% |
3.39 |
3.57 |
4.23 |
|
INTEREST |
% |
1.34 |
1.47 |
1.63 |
|
GROSS PROFIT MARGIN |
% |
8.25 |
7.10 |
7.28 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.73 |
3.43 |
3.05 |
|
NET PROFIT MARGIN |
% |
1.76 |
1.30 |
0.66 |
|
RETURN ON EQUITY |
% |
13.30 |
10.56 |
4.69 |
|
RETURN ON ASSET |
% |
1.81 |
1.75 |
0.77 |
|
EARNING PER SHARE |
BAHT |
20.47 |
14.09 |
5.60 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.83 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.36 |
5.05 |
5.07 |
|
TIME INTEREST EARNED |
TIMES |
2.78 |
2.34 |
1.88 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.08 |
28.21 |
|
|
OPERATING PROFIT |
% |
16.32 |
44.12 |
|
|
NET PROFIT |
% |
45.31 |
151.53 |
|
|
FIXED ASSETS |
% |
(5.26) |
0.48 |
|
|
TOTAL ASSETS |
% |
40.34 |
11.42 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 7.08%. Turnover has increased from THB
281,886,618.17 in 2012 to THB 301,840,899.48 in 2013. While net profit has
increased from THB 3,663,206.98 in 2012 to THB 5,323,052.94 in 2013. And total
assets has increased from THB 209,782,274.30 in 2012 to THB 294,410,650.37 in
2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.25 |
Deteriorated |
Industrial Average |
150.72 |
|
Net Profit Margin |
1.76 |
Deteriorated |
Industrial Average |
3.64 |
|
Return on Assets |
1.81 |
Deteriorated |
Industrial Average |
8.91 |
|
Return on Equity |
13.30 |
Deteriorated |
Industrial Average |
30.96 |
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 8.25%. 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 1.76%.
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 1.81%.
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 13.3%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.29 |
Satisfactory |
Industrial Average |
1.34 |
|
Quick Ratio |
0.89 |
|
|
|
|
Cash Conversion Cycle |
215.85 |
|
|
|
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 1.29 times in 2013, increased from 1.27 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 0.89 times in 2013,
decreased from 1.02 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 216 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
6.36 |
Risky |
Industrial Average |
2.68 |
|
Times Interest Earned |
2.78 |
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 2.79 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.86 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the average
competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
11.76 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.03 |
Deteriorated |
Industrial Average |
2.45 |
|
Inventory Conversion Period |
108.42 |
|
|
|
|
Inventory Turnover |
3.37 |
Acceptable |
Industrial Average |
5.02 |
|
Receivables Conversion Period |
215.26 |
|
|
|
|
Receivables Turnover |
1.70 |
Deteriorated |
Industrial Average |
4.40 |
|
Payables Conversion Period |
107.83 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.70 and 2.05 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 increased from 50 days at the
end of 2012 to 108 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 7.25 times in year 2012 to 3.37 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.03 times and 1.34
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.63.57 |
|
|
1 |
Rs.99.11 |
|
Euro |
1 |
Rs.70.29 |
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.