MIRA INFORM REPORT
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Report No. : |
326279 |
|
Report Date : |
08.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
SMART ARTS
JEWELLERY LIMITED |
|
|
|
|
Formerly Known As : |
J. P. S. CREATION LTD. |
|
|
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|
Registered Office : |
22nd Floor, Bangkok Gems & Jewellery Tower, 322/58 Surawong Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.07.2000 |
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|
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Com. Reg. No.: |
0105543069838 |
|
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Importer and Exporter of Diamond and Jewelry. |
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No. of Employees : |
10 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
SMART ARTS JEWELLERY LIMITED
[FORMER : J . P . S . CREATION LTD.]
SUMMARY
BUSINESS ADDRESS : 22nd FLOOR, BANGKOK GEMS & JEWELLERY TOWER,322/58
SURAWONG ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-1286-8
FAX :
[66] 2238-1289-90
E-MAIL ADDRESS : info@smartartsjewellery.com
smartartjewellery@gmail.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2000
REGISTRATION NO. : 0105543069838
TAX ID NO. : 3030132390
CAPITAL REGISTERED
: BHT.
20,000,000
CAPITAL PAID-UP
: BHT.
20,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRADEEP RAGHUNATH
LODHA, INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 10
LINES OF
BUSINESS : DIAMOND AND JEWELRY
MANUFACTURER,
IMPORTER 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 26,
2000 as a
private limited company under
the name style “J. P. S. CREATION LTD.”,
by Thai and Indian
groups, in order
to import, distribute and export diamonds, gemstones
and jewelry products to domestic
and international market.
On
May 15, 2007
the subject’s name was
changed to SMART
ARTS JEWELLERY
LIMITED.
It currently employs
approximately 10 staff.
The subject’s registered address is 22nd Flr.,
Bangkok Gems & Jewellery Tower, 322/58 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
Mr. Pradeep Raghunath Lodha
AUTHORIZED
PERSON
The
above director signs
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Pradeep Raghunath
Lodha is the
Managing Director.
He
is Indian nationality
with the age
of 51 years
old.
Mr. Manish Saihgal
is the Marketing
Manager.
He
is Indian nationality.
BUSINESS
OPERATIONS
The
subject is engaged
in importing, distributing
and re-exporting various
kinds of diamonds,
gemstones and jewelry
products, e.g. ring, earrings,
bracelet, pendent, necklace
and etc., as
well as exporting
of local jewelry
products.
PURCHASE
The
products are purchased
from suppliers both domestic and
overseas in India,
Belgium, Hong Kong
and Republic of
China.
SALES
The
products are sold
locally by wholesale
to local traders
and manufacturers.
EXPORT
The jewelry
products are also
exported to India, Hong Kong, Japan, United States of America 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
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
employs approximately 10
staff. [office and
sales staff]
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
In
the year 2014,
growth of domestic
consumption of jewelry products has been
slowing down compared
to the previous
year’s level. Despite some economic
recovery signs from
some European and USA,
as a result
of series of
quantitative easing monetary policy,
the Europe’s growth
is still fragile
with a risk
of high volatility. These factors
have an unavoidable
effect on the subject’s performance.
Meanwhile, Thai economy
had continued decline
under the burden
of rising household
debt. Consumers are
likely cut spending
especially for non-essential
items.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each.
The capital
were increased and
decreased later as
following:
Increased was : Bht.
17,000,000 on June
22, 2001
Decreased was : Bht.
6,000,000 on March
6, 2002
Increased was : Bht.
10,000,000 on February
22, 2005
Increased was :
Bht. 15,000,000 on
December 7, 2005
Increased was :
Bht. 20,000,000 on
September 27, 2006
The
latest registered capital
was increased to Bht. 20,000,000 divided
into 200,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa
Narular Nationality: Thai Address
: 32/31-32 Sukhumvit
26 Rd., Klongton,
Klongtoey, Bangkok |
98,980 |
49.49 |
|
Mr. Pradeep
Raghunath Lodha Nationality: Indian Address
: 322/23 Surawong
Rd., Suriyawongse, Bangrak, Bangkok |
60,000 |
30.00 |
|
Ms. Niramala
Zashiti Nationality: Indian Address
: 1867/85 Charoennakorn Rd.,
Banglampulang, Klongsan,
Bangkok |
24,000 |
12.00 |
|
Mr. Punit
Kantadia Nationality: Indian Address
: India |
13,500 |
6.75 |
|
Mr. Nikorn
Kijvanich Nationality: Thai Address
: 69-71 Rama 4 Rd.,
Pomprab, Bangkok |
3,000 |
1.50 |
|
Mrs.
Sukaesi Loda Nationality: Indian Address
: 1867/85 Charoennakorn Rd.,
Banglampulang, Klongsan,
Bangkok |
499 |
0.24 |
|
Ms. Araya Thirachawalit Nationality: Thai Address
: 510 Charansanitwong 66/1
Rd., Bangplad, Bangkok |
20 |
0.02 |
|
Ms. Mahee Loda Nationality: Thai Address
: 1867/93 Charoennakorn Rd.,
Banglampulang, Klongsan,
Bangkok |
1 |
- |
Total Shareholders
: 8
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
102,001 |
51.00 |
|
Foreign-Indian |
4 |
97,999 |
49.00 |
|
Total |
8 |
200,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Nongnuch
Ouitrakul No. 2241
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 |
544,154.48 |
1,515,816.36 |
763,399.85 |
|
Trade
Account & Other Receivable |
21,600,493.40 |
14,377,665.72 |
10,807,280.09 |
|
Inventories |
133,992,368.32 |
100,598,310.94 |
87,834,921.84 |
|
Other
Current Assets |
812.74 |
2,809.98 |
1,899.80 |
|
|
|
|
|
|
Total Current
Assets |
156,137,828.94 |
116,494,603.00 |
99,407,501.58 |
|
Fixed Assets |
6,245,444.22 |
6,231,165.23 |
6,751,003.18 |
|
Intangible
Assets |
26,241.88 |
46,570.04 |
128,251.02 |
|
Deposit |
14,200.00 |
14,200.00 |
14,200.00 |
|
Total Assets
|
162,423,715.04 |
122,786,538.27 |
106,300,955.78 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank
Overdraft &
Short-term Loan
from Financial Institution |
95,350,622.82 |
65,947,047.55 |
52,349,579.01 |
|
Trade
Accounts & Other Payable |
32,614,193.35 |
24,672,399.01 |
24,802,794.84 |
|
Current
Portion of Finance
Lease
Contract Liabilities |
281,610.11 |
271,111.39 |
261,004.36 |
|
Accrued
Income Tax |
468,978.01 |
515,433.79 |
365,497.94 |
|
|
|
|
|
|
Total Current
Liabilities |
128,715,404.29 |
91,405,991.74 |
77,778,876.15 |
|
Finance
Lease Contract Liabilities |
- |
281,610.11 |
552,721.50 |
|
Total Liabilities |
128,715,404.29 |
91,687,601.85 |
78,331,597.65 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 value
authorized, issued
and fully
paid share capital
200,000 shares |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained
Earning - Unappropriated |
13,708,310.75 |
11,098,936.42 |
7,969,358.13 |
|
Total Shareholders' Equity |
33,708,310.75 |
31,098,936.42 |
27,969,358.13 |
|
Total Liabilities
& Shareholders' Equity |
162,423,715.04 |
122,786,538.27 |
106,300,955.78 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
140,547,682.77 |
112,579,475.60 |
106,274,052.72 |
|
Gain
on Exchange Rate |
- |
1,904,819.56 |
- |
|
Other
Income |
350,197.39 |
448,773.22 |
339,256.98 |
|
Total Revenues
|
140,897,880.16 |
114,933,068.38 |
106,613,309.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
116,769,293.98 |
96,398,644.68 |
90,814,719.85 |
|
Selling
Expenses |
8,723,452.24 |
8,963,020.84 |
6,698,223.27 |
|
Administrative Expenses |
3,580,236.03 |
3,093,621.63 |
3,164,983.95 |
|
Loss
on Exchange Rate |
5,448,006.96 |
- |
1,190,287.78 |
|
Total Expenses |
134,520,989.21 |
108,455,287.15 |
101,868,214.85 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost
& Income Tax |
6,376,891.95 |
6,477,781.23 |
4,745,094.85 |
|
Financial Cost |
[2,798,538.61] |
[2,353,219.15] |
[2,359,170.29] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
3,578,352.34 |
4,124,562.08 |
2,385,924.56 |
|
Income
Tax |
[968,978.01] |
[994,983.79] |
[770,497.94] |
|
Net Profit / [Loss] |
2,609,374.33 |
3,129,578.29 |
1,615,426.62 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
1.27 |
1.28 |
|
QUICK RATIO |
TIMES |
0.17 |
0.17 |
0.15 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
22.50 |
18.07 |
15.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
0.92 |
1.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
418.84 |
380.90 |
353.02 |
|
INVENTORY TURNOVER |
TIMES |
0.87 |
0.96 |
1.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
56.10 |
46.61 |
37.12 |
|
RECEIVABLES TURNOVER |
TIMES |
6.51 |
7.83 |
9.83 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
101.95 |
93.42 |
99.69 |
|
CASH CONVERSION CYCLE |
DAYS |
372.99 |
334.10 |
290.45 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.08 |
85.63 |
85.45 |
|
SELLING & ADMINISTRATION |
% |
8.75 |
10.71 |
9.28 |
|
INTEREST |
% |
1.99 |
2.09 |
2.22 |
|
GROSS PROFIT MARGIN |
% |
17.17 |
16.46 |
14.87 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.54 |
5.75 |
4.46 |
|
NET PROFIT MARGIN |
% |
1.86 |
2.78 |
1.52 |
|
RETURN ON EQUITY |
% |
7.74 |
10.06 |
5.78 |
|
RETURN ON ASSET |
% |
1.61 |
2.55 |
1.52 |
|
EARNING PER SHARE |
BAHT |
13.05 |
15.65 |
8.08 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.75 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.82 |
2.95 |
2.80 |
|
TIME INTEREST EARNED |
TIMES |
2.28 |
2.75 |
2.01 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
24.84 |
5.93 |
|
|
OPERATING PROFIT |
% |
(1.56) |
36.52 |
|
|
NET PROFIT |
% |
(16.62) |
93.73 |
|
|
FIXED ASSETS |
% |
0.23 |
(7.70) |
|
|
TOTAL ASSETS |
% |
32.28 |
15.51 |
|
ANNUAL
GROWTH: SATISFACTORY
An annual sales growth is 24.84%. Turnover has
increased from THB
PROFITABILITY
: SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.17 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
1.86 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
1.61 |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
7.74 |
Acceptable |
Industrial Average |
14.14 |
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 17.17%. 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 1.86%, higher
figure when compared with those of its
average competitors in the same industry, indicated that business was an
efficient operator 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 1.61%.
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
7.74%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
: RISKY
LIQUIDITY
RATIO
|
Current Ratio |
1.21 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
372.99 |
|
|
|
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 1.21 times in 2013, decreased 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 0.17 times in 2013, same
figure as 0.17 times in 2012,
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
373 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.82 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
2.28 |
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 2.28 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
: ACCEPTABLE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
22.50 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.87 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
418.84 |
|
|
|
|
Inventory Turnover |
0.87 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
56.10 |
|
|
|
|
Receivables Turnover |
6.51 |
Satisfactory |
Industrial Average |
8.23 |
|
Payables Conversion Period |
101.95 |
|
|
|
The company's Account Receivable Ratio is
calculated as 6.51 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 381 days
at the end of 2012 to 419 days at the end of 2013. This represents a negative
trend. And Inventory turnover has decreased from 0.96 times in year 2012 to
0.87 times in year 2013.
The company's Total Asset Turnover is
calculated as 0.87 times and 0.92 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.63.89 |
|
|
1 |
Rs.97.97 |
|
Euro |
1 |
Rs.71.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.