MIRA INFORM REPORT
|
Report No. : |
324408 |
|
Report Date : |
28.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
T.N.K. DIAM CO., LTD. |
|
|
|
|
Registered Office : |
39th Floor,
Jewellery Trade Center,
919/470 Silom Road,
Silom, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
14.03.1997 |
|
|
|
|
Com. Reg. No.: |
0105540026763 |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Subject is engaged
in importing, distributing and
re-exporting various sizes
and color of diamonds,
gemstones and jewelry
products, as well
as exporting of
diamond, pearl, gemstones
and jewelry products. |
|
|
|
|
No. of Employee : |
6 |
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 has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
Company
name
T.N.K. DIAM CO., LTD.
SUMMARY
BUSINESS ADDRESS : 39th FLOOR,
JEWELLERY TRADE CENTER,
919/470 SILOM ROAD,
SILOM, BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66]
2630-0060-1, 081 843-0279
FAX : [66]
2630-0062
E-MAIL ADDRESS : tnkdiam@hotmail.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1997
REGISTRATION NO. : 0105540026763
TAX ID NO. : 3011826454
CAPITAL REGISTERED : BHT. 73,000,000
CAPITAL PAID-UP : BHT. 73,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. JIGESH
SATISH SHAH, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 6
LINES OF BUSINESS : DIAMONDS AND 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
March 14, 1997 as
a private limited
company under the
registered name T.N.K. DIAM CO., LTD.
by Thai and
Indian groups, in
order to import
and distribute diamonds
and jewelry products
to both local
and overseas markets.
It currently employs
6 staff.
The subject’s registered
address is 39th Floor,
Jewellery Trade Center,
919/470 Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the company’s current
operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jigesh Satish
Shah |
|
Indian |
37 |
|
Mr. Hiral Hetendra
Shah |
|
Indian |
33 |
|
Mr. Ritesh
Mukesh Shah |
|
Indian |
33 |
AUTHORIZED
PERSON
Anyone of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Jigesh
Satish Shah
is the Managing
Director.
He is
Indian nationality with
the age of
37 years old.
Mr. Hiral Hetendra
Shah is
the Assistant Managing
Director.
He is
Indian nationality with
the age of
33 years old.
BUSINESS
OPERATIONS
The subject is engaged
in importing, distributing
and re-exporting various
sizes and color of
diamonds, gemstones and
jewelry products, as
well as exporting
of diamond, pearl,
gemstones and jewelry
products.
PURCHASE
Most of the
products are imported
from India, Hong
Kong, Japan, Pakistan
and Africa, the remaining
is purchased from
local suppliers.
SALES
[LOCAL]
The products
are sold by wholesale to
traders and manufacturers.
EXPORT
Jewelry products,
diamonds and gemstones
are exported and
re-exported to U.S.A.,
Hong Kong, Japan,
Republic of China,
Singapore, Middle East
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 to
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 credit terms
of 30-60 days.
Imports are
by L/C at
sight or T/T.
Exports are
against T/T.
BUSINESS
TRANSACTION
The products
are sold to
customers by cash
and credit, with
the maximum credit
given at 30-60 days. The
subject is not found
to have problem on
its accounts receivable.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
currently employs 6
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 has been in jewelry business for over eighteen years. Since
end of 2013,
subject’s business performance
has grown slowly
due economy uncertainty
and political turmoil.
Slow jewelry market is
caused by shrinking
consumer spending and
low purchasing power.
These factors had
an unavoidable affected
on its business
performance.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 4,000,000 divided into
40,000 shares of
Bht. 100 each
with fully paid.
The capital
was increased later
as follows:
Bht.
15,000,000 on November
21, 2002
Bht.
23,000,000 on March
16, 2012
Bht.
73,000,000 on October
28, 2014
The latest registered
capital was increased
to Bht. 73,000,000 divided into
730,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
March 31, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Patipan
Choochuenchom Nationality: Thai Address :
15/2 Sukhumvit 101/1 Rd.,
Bangchak, Prakanong, Bangkok |
372,300 |
51.00 |
|
Mr. Jigesh
Satish Shah Nationality: Indian Address :
919/470 Silom Rd., Silom,
Bangrak, Bangkok |
328,500 |
45.00 |
|
Mr. Hiral Hetendra
Shah Nationality: Indian Address :
919/470 Silom Rd., Silom,
Bangrak, Bangkok |
14,600 |
2.00 |
|
Mr. Ritesh Mukesh Shah Nationality: Indian Address :
919/470 Silom Rd., Silom,
Bangrak, Bangkok |
14,600 |
2.00 |
Total Shareholders
: 4
Share Structure
[as at March
31, 2014]
|
Nationality |
Shareholders |
No.
of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
372,300 |
51.00 |
|
Foreign - Indian |
3 |
357,700 |
49.00 |
|
Total |
4 |
730,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Thienporn Takchotilert
No. 7560
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in
Hand & at Bank |
231,812.14 |
143,918.22 |
127,074.38 |
|
Trade Accounts
Receivable |
216,279,561.36 |
401,324,622.87 |
301,202,699.94 |
|
Inventories |
241,808,679.25 |
163,594,462.38 |
91,178,195.86 |
|
Insurance the
Phone |
110,652.03 |
- |
- |
|
|
|
|
|
|
Total Current
Assets |
458,430,704.78 |
565,063,003.47 |
392,507,970.18 |
|
Long-term
Investment |
30,522,202.31 |
21,341,913.72 |
11,295,539.35 |
|
Fixed Assets |
3,540,323.59 |
4,688,269.83 |
5,116,807.23 |
|
Guarantee & Deposits |
- |
- |
8,181.81 |
|
Other Non-current
Assets |
8,181.81 |
378,583.96 |
370,402.15 |
|
Total Assets |
492,501,412.49 |
591,371,770.98 |
409,298,900.72 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft
from Financial Institution |
10,139,552.78 |
9,935,987.77 |
56,431,103.11 |
|
Short-term Loan
from Financial Institution |
77,873,397.79 |
78,534,116.78 |
- |
|
Trade Accounts
Payable |
344,954,806.14 |
449,282,790.40 |
313,033,653.23 |
|
Other Payable-
Accrued expenses |
746,763.36 |
60,000.00 |
- |
|
Installment Payable |
- |
237,335.35 |
319,006.00 |
|
Accrued Income
Tax |
774,259.72 |
838,307.37 |
- |
|
Other Current
Liabilities |
128,006.04 |
64,164.23 |
1,058,682.09 |
|
|
|
|
|
|
Total Current
Liabilities |
434,616,786.13 |
538,852,701.90 |
370,842,444.43 |
|
Total
Liabilities |
434,616,786.13 |
538,852,701.90 |
370,842,444.43 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value authorized,
issued and fully
paid share
capital 230,000 shares
in 2013 & 2012; 150,000 shares
in 2011 |
23,000,000.00 |
23,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
23,000,000.00 |
23,000,000.00 |
15,000,000.00 |
|
Retained Earning - Unappropriated |
34,884,626.36 |
29,519,069.08 |
23,456,456.29 |
|
Total Shareholders' Equity |
57,884,626.36 |
52,519,069.08 |
38,456,456.29 |
|
Total Liabilities
& Shareholders' Equity |
492,501,412.49 |
591,471,770.98 |
409,298,900.72 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
326,952,003.35 |
395,477,820.13 |
395,759,746.13 |
|
Other Income |
2,111,009.46 |
- |
2,048,400.67 |
|
Total Revenues |
329,063,012.81 |
395,477,820.13 |
397,808,146.80 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
305,544,073.63 |
379,352,994.98 |
387,373,171.63 |
|
Selling and
Administrative Expenses |
12,007,084.98 |
5,067,134.98 |
4,146,376.12 |
|
Total Expenses
|
317,551,158.61 |
384,420,129.96 |
391,519,547.75 |
|
|
|
|
|
|
Profit /
[Loss] before Financial Cost & Income Tax |
11,511,854.20 |
11,057,690.17 |
6,288,599.05 |
|
Financial Cost |
[4,672,037.20] |
[3,156,270.01] |
[3,199,132.64] |
|
Income Tax |
[1,474,259.72] |
[1,838,807.37] |
[948,846.45] |
|
Net Profit / [Loss] |
5,365,557.28 |
6,062,612.79 |
2,140,619.96 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.05 |
1.05 |
1.06 |
|
QUICK RATIO |
TIMES |
0.50 |
0.75 |
0.81 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
92.35 |
84.35 |
77.35 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
0.66 |
0.67 |
0.97 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
288.86 |
157.40 |
85.91 |
|
INVENTORY
TURNOVER |
TIMES |
1.26 |
2.32 |
4.25 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
241.45 |
370.40 |
277.79 |
|
RECEIVABLES
TURNOVER |
TIMES |
1.51 |
0.99 |
1.31 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
412.08 |
432.28 |
294.95 |
|
CASH CONVERSION
CYCLE |
DAYS |
118.23 |
95.52 |
68.75 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
93.45 |
95.92 |
97.88 |
|
SELLING &
ADMINISTRATION |
% |
3.67 |
1.28 |
1.05 |
|
INTEREST |
% |
1.43 |
0.80 |
0.81 |
|
GROSS PROFIT
MARGIN |
% |
7.19 |
4.08 |
2.64 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
3.52 |
2.80 |
1.59 |
|
NET PROFIT MARGIN |
% |
1.64 |
1.53 |
0.54 |
|
RETURN ON EQUITY |
% |
9.27 |
11.54 |
5.57 |
|
RETURN ON ASSET |
% |
1.09 |
1.03 |
0.52 |
|
EARNING PER SHARE |
BAHT |
23.33 |
26.36 |
14.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.91 |
0.91 |
|
DEBT TO EQUITY
RATIO |
TIMES |
7.51 |
10.26 |
9.64 |
|
TIME INTEREST
EARNED |
TIMES |
2.46 |
3.50 |
1.97 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.33) |
(0.07) |
|
|
OPERATING PROFIT |
% |
4.11 |
75.84 |
|
|
NET PROFIT |
% |
(11.50) |
183.22 |
|
|
FIXED ASSETS |
% |
(24.49) |
(8.38) |
|
|
TOTAL ASSETS |
% |
(16.72) |
44.48 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth
is -17.33%. Turnover has decreased from THB 395,477,820.13 in 2012 to THB
326,952,003.35 in 2013. While net profit has decreased from THB 6,062,612.79 in
2012 to THB 5,365,557.28 in 2013. And total assets has decreased from THB
591,371,770.98 in 2012 to THB 492,501,412.49 in 2013.
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit
Margin |
7.19 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
1.64 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
1.09 |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
9.27 |
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 7.19%. 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 1.64%, 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 1.09%.
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 9.27%.
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 |
1.05 |
Acceptable |
Industrial Average |
1.60 |
|
Quick Ratio |
0.50 |
|
|
|
|
Cash Conversion
Cycle |
118.23 |
|
|
|
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 1.05 times in 2013,
same figure as
1.05 times in the previous year, 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 0.5 times in 2013, decreased from 0.75
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 119 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity
Ratio |
7.51 |
Risky |
Industrial Average |
2.73 |
|
Times Interest
Earned |
2.46 |
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
2.47 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 0.88 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 |
92.35 |
Impressive |
Industrial Average |
- |
|
Total Assets
Turnover |
0.66 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion
Period |
288.86 |
|
|
|
|
Inventory
Turnover |
1.26 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables
Conversion Period |
241.45 |
|
|
|
|
Receivables
Turnover |
1.51 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion
Period |
412.08 |
|
|
|
The company's
Account Receivable Ratio is calculated as 1.51 and 0.99 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 increased from
2012. This would suggest the company had good performance 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 157 days at the end of 2012 to 289 days at the end of 2013. This
represents a negative trend. And Inventory turnover has decreased from 2.32
times in year 2012 to 1.26 times in year 2013.
The company's Total
Asset Turnover is calculated as 0.66 times and 0.67 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.63.95 |
|
|
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.69.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.