MIRA INFORM REPORT
|
Report No. : |
331924 |
|
Report Date : |
18.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
BELGA DIAM CO., LTD. |
|
|
|
|
Registered Office : |
9th Floor, Gems Tower, 1249/90 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
26.01.1988 |
|
|
|
|
Com. Reg. No.: |
0105531005864 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor and Exporter of Diamond and Gemstones. |
|
|
|
|
No. of Employees : |
4 |
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 : |
No Complaints |
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|
|
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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
BELGA DIAM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
GEMS TOWER,
1249/90
CHAROENKRUNG ROAD,
SURIYAWONGSE, BANGRAK, BANGKOK
10500,
THAILAND
TELEPHONE : [66] 2234-4622,
2234-6281
FAX :
[66] 2237-1435
E-MAIL
ADDRESS : belga_bkk@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531005864
TAX
ID NO. : 3101493894
CAPITAL REGISTERED : BHT. 17,000,000
CAPITAL PAID-UP : BHT.
17,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAMESH HIRALAL
MEHTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMOND AND
GEMSTONES
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 26, 1988 as
a private limited
company under the
name style BELGA DIAM CO.,
LTD., by Thai and Indian
groups, with the
objective to be
engaged in jewelry
trading business. It
currently employs 4
staff.
The
subject’s registered address
was initially at
Room. 76, Executive House,
410/76 Surawong Rd., Siphaya,
Bangrak, Bangkok 10500.
Later,
its registered address
was relocated to
the addresses as
follows:
On June
13, 1989, it was relocated
at 293/32 Surawong
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
On
June 9, 1994, it was
moved to 16th Floor,
Bangkok Gems & Jewellery
Trade Center, 322/31 Surawong
Rd., Siphaya, Bangrak,
Bangkok 10500.
In
October 2001, it was
finally relocated to 9th Flr., Gems
Tower, 1249/90 Charoenkrung Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ramesh Hiralal Mehta |
|
Indian |
52 |
|
Mrs. Manju Ramesh Mehta |
|
Indian |
- |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ramesh Hiralal Mehta
is the Managing
Director.
He is Indian
nationality with the
age of 52
years old.
BUSINESS
OPERATIONS
The subject is
engaged in importing
and distributing of jewelry
material supplies, mainly
fancy diamonds, eight-cut
diamonds, brilliant and
polished diamonds with
various sizes, as
well as gemstones
and gold for
jewelry manufacturing business.
The subject is
also exporter of
diamonds, gemstones and
Thai jewelry products.
IMPORT
The
jewelry material supplies
are imported from
India, Belgium and
Hong Kong.
SALES [LOCAL]
The products are
sold locally by
wholesale to manufacturers
and end-users.
EXPORT
Local diamonds, gemstones
and jewelry products
are exported to
Hong Kong, India, Republic
of China and
European 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 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.
[Silom Branch, 300 Silom Road,
Suriyawongse, Bangrak, Bangkok]
EMPLOYMENT
The
subject employs 4
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
Subject
was formed in 1988
as an importer and
distributor of diamonds and gemstones.
Current economic slowdown
has resulted to
decline consumption of
jewelry products especially in EU
markets.
Its
business has grown
slowly in accordance
with domestic shrinking
purchasing power.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 10,000
shares of Bht. 100 each.
The
capital was increased
later as following:
Bht.
5,000,000 on
July 12, 1991
Bht.
17,000,000 on
August 25, 1992
The
latest registered capital
was increased to
Bht. 17,000,000 divided into 170,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ramesh Hiralal Mehta Nationality: Indian Address : 57/12
Rama 4 Rd.,
Thungmahamek,
Sathorn, Bangkok |
51,000 |
30.00 |
|
Mrs. Manju Ramesh Mehta Nationality: Indian Address : 57/12
Rama 4 Rd.,
Thungmahamek, Sathorn, Bangkok |
32,300 |
19.00 |
|
Mr. Sathien Yimprai Nationality: Thai Address : 36
Moo 3, Kokchang,
Pakhai, Ayutthaya |
18,700 |
11.00 |
|
Mr. Sanga Dechalamai Nationality: Thai Address : 482/7
Charanasanitwong Rd., Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mr. Veera Dechalamai Nationality: Thai Address : 482/7
Charanasanitwong Rd., Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Ms. Ratananaporn Parung Nationality: Thai Address : 540/4 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mrs. Chalor Padawan Nationality: Thai Address : 482/5 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
|
Mr. Pairat Padawan Nationality: Thai Address : 482/5 Charanasanitwong Rd.,
Bangyikhan,
Bangkoknoi, Bangkok |
13,600 |
8.00 |
Total Shareholders : 8
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
86,700 |
51.00 |
|
Foreign - Indian |
2 |
83,300 |
49.00 |
|
Total |
8 |
170,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Ronakorn
Rerksanthitiwong No. 4645
Note
The 2014 financial
statement has not
yet available during
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 |
470,187.27 |
3,612,034.71 |
9,747,892.46 |
|
Trade Accounts Receivable |
17,582,886.36 |
10,347,205.13 |
23,862,848.13 |
|
Inventories |
41,795,470.20 |
56,232,835.84 |
39,929,674.54 |
|
Other Current Assets
|
216,763.24 |
208,789.02 |
184,121.85 |
|
Total Current Assets
|
60,065,307.07 |
70,400,864.70 |
73,724,536.98 |
|
|
|
|
|
|
Fixed Assets |
108,817.92 |
34,415.86 |
7,137.94 |
|
Other Non-current Assets |
17,366.00 |
17,366.00 |
20,093.27 |
|
Total Assets |
126,183.92 |
51,781.86 |
73,751,768.19 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
13,039,355.35 |
37,906,006.36 |
12,862,450.39 |
|
Loan from Financial
Institutions |
16,874,276.35 |
10,405,265.31 |
39,175,174.81 |
|
Advance Receipt for Goods |
4,794,000.00 |
- |
- |
|
Loan from Related Person |
2,600,000.00 |
- |
- |
|
Other Current Liabilities |
103,007.79 |
139,500.38 |
230,551.83 |
|
Total Current Liabilities |
37,410,639.49 |
48,450,772.05 |
52,268,177.03 |
|
Employee Benefits Obligation |
476,914.00 |
522,592.00 |
463,452.00 |
|
Total Liabilities |
37,887,553.49 |
48,973,364.05 |
52,731,629.03 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 170,000 shares |
17,000,000.00 |
17,000,000.00 |
17,000,000.00 |
|
Capital Paid |
17,000,000.00 |
17,000,000.00 |
17,000,000.00 |
|
Retained Earning - Unappropriated |
5,303,937.50 |
4,479,282.51 |
4,020,139.16 |
|
Total Shareholders' Equity |
22,303,937.50 |
21,479,282.51 |
21,020,139.16 |
|
Total Liabilities & Shareholders' Equity |
60,191,490.99 |
70,452,646.56 |
73,751,768.19 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
60,014,040.79 |
48,552,876.12 |
49,227,158.85 |
|
Other Income |
97,587.80 |
1,483,511.53 |
- |
|
Total Revenues |
60,111,628.59 |
50,036,387.65 |
49,227,158.85 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
55,887,518.66 |
46,140,356.05 |
44,536,999.96 |
|
Selling Expenses |
626,456.42 |
575,093.73 |
456,300.17 |
|
Administrative Expenses |
1,809,484.53 |
1,986,441.35 |
2,862,884.46 |
|
Total Expenses |
58,323,459.61 |
48,701,891.13 |
47,856,184.59 |
|
Profit before Financial Cost &
Income Tax |
1,788,168.98 |
1,334,496.52 |
1,370,974.26 |
|
Financial Cost |
[764,050.28] |
[628,220.60] |
[467,042.63] |
|
|
|
|
|
|
Profit before Income Tax |
1,024,118.70 |
706,275.92 |
903,931.63 |
|
Income Tax |
[199,463.71] |
[247,132.57] |
[318,562.07] |
|
Net Profit / [Loss] |
824,654.99 |
459,143.35 |
585,369.56 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.61 |
1.45 |
1.41 |
|
QUICK RATIO |
TIMES |
0.48 |
0.29 |
0.64 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
551.51 |
1,410.77 |
6,896.55 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.00 |
0.69 |
0.67 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
272.97 |
444.84 |
327.24 |
|
INVENTORY TURNOVER |
TIMES |
1.34 |
0.82 |
1.12 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
106.94 |
77.79 |
176.93 |
|
RECEIVABLES TURNOVER |
TIMES |
3.41 |
4.69 |
2.06 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
85.16 |
299.86 |
105.41 |
|
CASH CONVERSION CYCLE |
DAYS |
294.74 |
222.76 |
398.76 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.12 |
95.03 |
90.47 |
|
SELLING & ADMINISTRATION |
% |
4.06 |
5.28 |
6.74 |
|
INTEREST |
% |
1.27 |
1.29 |
0.95 |
|
GROSS PROFIT MARGIN |
% |
7.04 |
8.02 |
9.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.98 |
2.75 |
2.78 |
|
NET PROFIT MARGIN |
% |
1.37 |
0.95 |
1.19 |
|
RETURN ON EQUITY |
% |
3.70 |
2.14 |
2.78 |
|
RETURN ON ASSET |
% |
1.37 |
0.65 |
0.79 |
|
EARNING PER SHARE |
BAHT |
4.85 |
2.70 |
3.44 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.70 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.70 |
2.28 |
2.51 |
|
TIME INTEREST EARNED |
TIMES |
2.34 |
2.12 |
2.94 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
23.61 |
(1.37) |
|
|
OPERATING PROFIT |
% |
34.00 |
(2.66) |
|
|
NET PROFIT |
% |
79.61 |
(21.56) |
|
|
FIXED ASSETS |
% |
216.19 |
382.15 |
|
|
TOTAL ASSETS |
% |
(14.56) |
(4.47) |
|
ANNUAL
GROWTH: IMPRESSIVE
An annual sales growth is 23.61%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.04 |
Impressive |
Industrial
Average |
2.28 |
|
Net Profit Margin |
1.37 |
Impressive |
Industrial
Average |
0.08 |
|
Return on Assets |
1.37 |
Acceptable |
Industrial
Average |
2.04 |
|
Return on Equity |
3.70 |
Acceptable |
Industrial Average |
6.86 |
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 7.04%. 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 1.37%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operators in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the
company's figure is 1.37%.
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 3.7%.
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 |
1.61 |
Impressive |
Industrial
Average |
1.56 |
|
Quick Ratio |
0.48 |
|
|
|
|
Cash Conversion Cycle |
294.74 |
|
|
|
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 1.61 times in 2013, increased from 1.45 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.48 times in 2013,
increased from 0.29 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 295 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Impressive |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
1.70 |
Acceptable |
Industrial
Average |
1.95 |
|
Times Interest Earned |
2.34 |
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 2.35 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 0.63 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
551.51 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.00 |
Deteriorated |
Industrial
Average |
24.82 |
|
Inventory Conversion Period |
272.97 |
|
|
|
|
Inventory Turnover |
1.34 |
Deteriorated |
Industrial
Average |
53.91 |
|
Receivables Conversion Period |
106.94 |
|
|
|
|
Receivables Turnover |
3.41 |
Deteriorated |
Industrial
Average |
47.59 |
|
Payables Conversion Period |
85.16 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.41 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 445 days at the
end of 2012 to 273 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.82 times in year 2012 to 1.34 times
in year 2013.
The company's Total Asset Turnover is calculated as 1 time and 0.69
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.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
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.