MIRA
INFORM REPORT
|
Report No. : |
345198 |
|
Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
GEMINI CREATION CO., LTD. |
|
|
|
|
Registered Office : |
23rd Floor, Tpi Tower, 26/56 Chan Tat Mai Road |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
25.05.2004 |
|
|
|
|
Com. Reg. No.: |
0105547070563 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
The subject
is engaged in
design and manufacturing services
of gemstone and
diamond jewelry with
fine gold and
vintage silver under
international standard processing.
The products are
ring, earrings, pendant, bracelet
|
|
|
|
|
No. of Employees : |
62 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
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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 |
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND
- ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, and generally pro-investment
policies Thailand has historically had a strong economy due in part to
competitive industrial and agriculture exports - mostly electronics,
agricultural commodities, automobiles and parts, and processed foods. The
economy experienced slow growth and declining exports in 2014, in part due to
domestic political turmoil and sluggish global demand. With full employment,
Thailand attracts an estimated 2-4 million migrant workers from neighboring
countries, and faces labor shortages. Following the May 2014 coup d’�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
GEMINI CREATION CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 23rd FLOOR,
TPI TOWER, 26/56
CHAN TAT MAI
ROAD,
THUNGMAHAMEK, SATHORN,
BANGKOK 10120, THAILAND
TELEPHONE : [66] 2678-6058,
2678-8945
FAX : [66] 2678-7419
E-MAIL ADDRESS : gemini@csloxinfo.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION NO. : 0105547070563
TAX ID NO. : 3031384880
CAPITAL REGISTERED : BHT. 55,000,000
CAPITAL PAID-UP : BHT. 55,000,000
SHAREHOLDER’S
PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE
: DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VIJAY RAWAT, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 62
LINES OF BUSINESS : FINE GOLD
AND SILVER JEWELRY
MANUFACTURER, 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 May 25,
2004 as a
private limited company
under the registered name GEMINI CREATION CO., LTD., initially
by Indian groups, with the
business objective to
provide design and manufacturing
various styles of gems
and diamond jewelry with
gold and silver
to both domestic
and international markets.
It currently employs
62 staff.
Presently, the subject
is a joint
venture between Thai
and Indian groups.
The subject’s registered address is 23rd Flr.,
TPI Tower, 26/56 Chan Tat Mai Rd.,
Thungmahamek, Sathorn, Bangkok
10120, and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr.
Vijay Rawat |
|
Indian |
51 |
AUTHORIZED PERSON
The above
director signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr.
Vijay Rawat
is the Managing
Director.
He is
Indian nationality with
the age of
51 years old.
Mr.
Arjun Rawat
is the Sales
& Marketing Director.
He is
Indian nationality.
BUSINESS OPERATIONS
The subject
is engaged in
design and manufacturing
services of gemstone
and diamond jewelry
with fine gold
and vintage silver
under international standard
processing. The products
are ring, earrings, pendant, bracelet
PURCHASE
Raw materials such
as gemstones, semi-precious
stones, diamonds and
accessories are purchased
from both domestic
and overseas suppliers,
mainly in India,
Africa, Brazil, Japan
and Republic of
China.
EXPORT
95% of
the products is
exported to U.S.A.,
Hong Kong, India,
Japan, Singapore and
European countries, the
remaining 5% is
sold locally.
MAJOR CUSTOMER
Gauri Creation Inc. : U.S.A.
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 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 L/C at
sight or T/T.
Exports are
against T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
62 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory is
located at Gemopolis
Industrial Estate, 40/4-5
Soi 31, Sukhapiban
2 Rd.,
Dokmai, Pravet, Bangkok
10250.
COMMENT
With trendy design
and strong customer
base have enabled the
subject a commitment
to the concept
of absolute consistency
in quality.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 4,000,000
on February 21,
2005
Bht. 10,000,000
on May 20,
2005
Bht. 20,000,000
on August 26,
2005
Bht. 50,000,000
on December 11,
2007
Bht. 55,000,000
on October 16,
2008
The latest registered
capital was increased
to Bht. 55
million, divided into
55,000 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr.
Vijay Rawat Nationality: Indian Address :
16A, 16/F., Supakarn
Condo, Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
20,000 |
36.36 |
|
Mrs.
Niti Rawat Nationality: Indian Address :
16A, 16/F., Supakarn
Condo, Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
6,950 |
12.64 |
|
Mr.
Ajay Tiwari Nationality: Thai Address :
453/9 Trok Wadchannai,
Bangklo, Bangkorlaem, Bangkok |
5,000 |
9.09 |
|
Mr.
Srivichai Gepal Nationality: Thai Address :
28/30 Soi Prachauthis 75,
Thungkru, Bangkok |
5,000 |
9.09 |
|
Mr.
Adires Dubay Nationality: Thai Address :
96 Trok Rongpasee, Bangrak,
Bangkok |
5,000 |
9.09 |
Mr.
Vigendra Kumar Tiwari Nationality: Thai Address :
123 Soi Yenchit 7,
Thungwatdon, Sathorn,
Bangkok |
4,000 |
7.27 |
|
Mr.
Arnon Sangthong Nationality: Thai Address :
744 Pattanakarn Rd.,
Suanluang, Bangkok |
2,550 |
4.64 |
|
Mr.
Chanchai Khemakanon Nationality: Thai Address :
117/17 Trok Chalongkrung, Mahaprutharam, Bangrak, Bangkok |
2,000 |
3.64 |
|
Mr.
Danai Saefung Nationality: Thai Address :
24 Moo 5,
T. Angthong, A. Muang, Kampaengpetch |
1,500 |
2.72 |
|
Mr.
Tanawut Saetern Nationality: Thai Address :
24 Moo 5,
T. Angthong, A. Muang, Kampaengpetch |
1,000 |
1.82 |
|
Mr. Prajak
Wongyuttananon Nationality: Thai Address :
134 Moo 1,
T. Sakngam, A. Klonglan, Kampaengpetch |
1,000 |
1.82 |
|
Mr. Pitarn
Sriserm Nationality: Thai Address :
50 Moo 3, T. Daengmor, A. Kuengnai, Ubon Ratchathani |
1,000 |
1.82 |
Total Shareholders
: 12
Share Structure
[as at
April 30, 2015]
|
Nationality |
Shareholders |
No. of Share |
%
Shares |
|
|
|
|
|
|
Thai |
10 |
28,050 |
51.00 |
|
Foreign
-Indian |
2 |
26,950 |
49.00 |
|
Total |
12 |
55,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr.
Wattana Treekantha No. 2399
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2014,
2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalent |
19,473,222.96 |
7,945,407.32 |
1,775,361.27 |
|
Short-term
Investment |
20,177,762.66 |
5,613,822.15 |
5,060,284.60 |
|
Trade Accounts
Receivable |
166,555,722.84 |
152,076,982.83 |
196,111,833.17 |
|
Other
Receivable |
- |
- |
5,252,663.79 |
|
Inventories
|
73,104,823.61 |
58,437,823.65 |
51,121,691.47 |
|
Other Current
Assets |
1,424,427.86 |
968,603.37 |
456,105.68 |
|
|
|
|
|
|
Total Current
Assets |
280,735,959.93 |
225,042,639.32 |
259,777,939.98 |
|
|
|
|
|
|
Investment in Related
Company |
2,987,820.00 |
2,987,820.00 |
2,987,820.00 |
|
Fixed
Assets |
8,248,933.76 |
9,018,064.80 |
8,634,668.72 |
|
Other Non-current
Assets |
461,071.32 |
441,647.32 |
423,805.54 |
|
Total Assets |
292,433,785.01 |
237,490,171.44 |
271,824,234.24 |
LIABILITIES & SHAREHOLDERS’
EQUITY
[BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial
Institution |
118,217,986.72 |
68,050,740.40 |
48,026,315.02 |
|
Trade Accounts
Payable |
100,673,850.85 |
101,615,826.76 |
160,072,915.39 |
|
Current Portion
of Long-term Liabilities |
222,843.64 |
394,718.64 |
187,500.00 |
|
Accrued
Income Tax |
545,978.90 |
500,367.77 |
456,759.27 |
|
Short-term
Loan from Related Person |
2,500,000.00 |
- |
- |
|
Other Current
Liabilities |
276,080.30 |
312,194.36 |
198,255.32 |
|
|
|
|
|
|
Total
Current Liabilities |
222,436,740.41 |
170,873,847.93 |
208,941,745.00 |
|
Long-term
Liabilities |
500,773.38 |
723,617.02 |
203,125.00 |
|
Total Liabilities |
222,937,513.79 |
171,597,464.95 |
209,144,870.00 |
|
|
|
|
|
|
Shareholders’
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 1,000 par
value authorized,
issued and fully
paid
share capital 55,000
shares |
55,000,000.00 |
55,000,000.00 |
55,000,000.00 |
|
|
|
|
|
|
Capital Paid |
55,000,000.00 |
55,000,000.00 |
55,000,000.00 |
|
Retained Earning
Unappropriated |
14,496,271.22 |
10,892,706.49 |
7,679,364.24 |
|
Total
Shareholders' Equity |
69,496,271.22 |
65,892,706.49 |
62,679,364.24 |
|
Total Liabilities
& Shareholders' Equity |
292,433,785.01 |
237,490,171.44 |
271,824,234.24 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
371,872,553.05 |
307,184,777.63 |
265,915,866.46 |
|
Other Income |
5,311,765.82 |
1,273,219.62 |
2,469,054.07 |
|
Total Revenues |
377,184,318.87 |
308,457,997.25 |
268,384,920.53 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Manufacturing |
354,812,542.41 |
284,752,904.31 |
252,231,773.26 |
|
Selling
Expenses |
3,455,518.79 |
6,585,924.80 |
2,977,669.11 |
|
Administrative Expenses |
7,004,295.16 |
7,240,907.22 |
6,182,900.20 |
|
Other
Expenses |
- |
1,597,222.65 |
- |
|
Total
Expenses |
365,272,356.36 |
300,176,958.98 |
261,392,342.57 |
|
|
|
|
|
|
Profit
/ [Loss] before Financial
Cost & Income
Tax |
11,911,962.51 |
8,281,038.27 |
6,992,577.96 |
|
Financial
Cost |
[6,553,948.02] |
[4,216,787.47] |
[3,080,539.24] |
|
Profit
/ [Loss] before Income
Tax |
5,358,014.49 |
4,064,250.80 |
3,912,038.72 |
|
Income Tax |
[1,114,742.72] |
[850,908.55] |
[916,759.27] |
|
|
|
|
|
|
Net Profit / [Loss] |
4,243,271.77 |
3,213,342.25 |
2,995,279.45 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT
RATIO |
TIMES |
1.26 |
1.32 |
1.24 |
|
QUICK
RATIO |
TIMES |
0.93 |
0.97 |
1.00 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED
ASSETS TURNOVER |
TIMES |
45.08 |
34.06 |
30.80 |
|
TOTAL
ASSETS TURNOVER |
TIMES |
1.27 |
1.29 |
0.98 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
75.20 |
74.91 |
73.98 |
|
INVENTORY
TURNOVER |
TIMES |
4.85 |
4.87 |
4.93 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
163.48 |
180.70 |
269.19 |
|
RECEIVABLES
TURNOVER |
TIMES |
2.23 |
2.02 |
1.36 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
103.56 |
130.25 |
231.64 |
|
CASH
CONVERSION CYCLE |
DAYS |
135.12 |
125.35 |
111.52 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST
OF GOODS SOLD |
% |
95.41 |
92.70 |
94.85 |
|
SELLING
& ADMINISTRATION |
% |
2.81 |
4.50 |
3.44 |
|
INTEREST |
% |
1.76 |
1.37 |
1.16 |
|
GROSS
PROFIT MARGIN |
% |
6.02 |
7.72 |
6.07 |
|
NET
PROFIT MARGIN BEFORE EX. ITEM |
% |
3.20 |
2.70 |
2.63 |
|
NET
PROFIT MARGIN |
% |
1.14 |
1.05 |
1.13 |
|
RETURN
ON EQUITY |
% |
6.11 |
4.88 |
4.78 |
|
RETURN
ON ASSET |
% |
1.45 |
1.35 |
1.10 |
|
EARNING
PER SHARE |
BAHT |
77.15 |
58.42 |
54.46 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT
RATIO |
TIMES |
0.76 |
0.72 |
0.77 |
|
DEBT
TO EQUITY RATIO |
TIMES |
3.21 |
2.60 |
3.34 |
|
TIME
INTEREST EARNED |
TIMES |
1.82 |
1.96 |
2.27 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES
GROWTH |
% |
21.06 |
15.52 |
|
|
OPERATING
PROFIT |
% |
43.85 |
18.43 |
|
|
NET
PROFIT |
% |
32.05 |
7.28 |
|
|
FIXED
ASSETS |
% |
(8.53) |
4.44 |
|
|
TOTAL
ASSETS |
% |
23.14 |
(12.63) |
|
ANNUAL GROWTH : IMPRESSIVE
An
annual sales growth is 21.06%. Turnover has increased from THB
PROFITABILITY : ACCEPTABLE
PROFITABILITY RATIO
|
Gross
Profit Margin |
6.02 |
Impressive |
Industrial Average |
4.74 |
|
Net
Profit Margin |
1.14 |
Deteriorated |
Industrial Average |
4.06 |
|
Return
on Assets |
1.45 |
Deteriorated |
Industrial Average |
4.95 |
|
Return
on Equity |
6.11 |
Deteriorated |
Industrial Average |
12.58 |
Gross
Profit Margin used to assess a firm's financial health by revealing the
proportion of money left over from revenues after accounting for the cost of
goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. The company's figure is 6.02%. 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 1.14%. 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 1.45%.
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 6.11%.
Trend of the average competitors
in the same industry for last 5 years
Return
on Assets Downtrend
Return
on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current
Ratio |
1.26 |
Satisfactory |
Industrial Average |
1.44 |
|
Quick
Ratio |
0.93 |
|
|
|
|
Cash
Conversion Cycle |
135.12 |
|
|
|
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 1.26
times in 2014, decreased from 1.32 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 0.93 times in 2014, decreased from
0.97 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 136 days.
Trend of the average competitors
in the same industry for last 5 years
Current
Ratio Downtrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt
Ratio |
0.76 |
Impressive |
Industrial Average |
0.77 |
|
Debt
to Equity Ratio |
3.21 |
Acceptable |
Industrial Average |
3.32 |
|
Times
Interest Earned |
1.82 |
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 1.82 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 0.76 greater than 0.5, most of the company's
assets are financed through debt.
Trend of the average competitors
in the same industry for last 5 years
Debt
Ratio Uptrend
Times
Interest Earned Stable
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed
Assets Turnover |
45.08 |
Impressive |
Industrial Average |
- |
|
Total
Assets Turnover |
1.27 |
Impressive |
Industrial Average |
1.22 |
|
Inventory
Conversion Period |
75.20 |
|
|
|
|
Inventory
Turnover |
4.85 |
Impressive |
Industrial Average |
3.23 |
|
Receivables
Conversion Period |
163.48 |
|
|
|
|
Receivables
Turnover |
2.23 |
Impressive |
Industrial Average |
1.50 |
|
Payables
Conversion Period |
103.56 |
|
|
|
The
company's Account Receivable Ratio is calculated as 2.23 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 is 75 days at the end of 2013,
same number of
days as in
2014. And Inventory turnover has
decreased from 4.87 times in year 2013 to 4.85 times in year 2014.
The
company's Total Asset Turnover is calculated as 1.27 times and 1.29 times in
2014 and 2013 respectively. This ratio is determined by dividing total assets
into total sales turnover. The ratio measures the activity of the assets and
the ability of the firm to generate sales through the use of the assets.
Trend of the average competitors
in the same industry for last 5 years
Fixed
Assets Turnover Stable
Total
Assets Turnover Downtrend
Inventory
Turnover Downtrend
Receivables
Turnover Downtrend
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
UK Pound |
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
|
Analysis
Done by : |
DIV |
|
|
|
|
Report
Prepared by : |
TRU |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly
Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited
with full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
|
|
-- |
NB |
New
Business |
-- |
|
This score serves as a reference
to assess SC’s credit risk and to set the amount of credit to be extended. It
is calculated from a composite of weighted scores obtained from each of the
major sections of this report. The assessed factors and their relative weights
(as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.