MIRA INFORM REPORT
|
Report No. : |
346221 |
|
Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
ANAN ANJAMANI CO., LTD. |
|
|
|
|
Registered Office : |
21st Floor, Jewelry Trade Center, 919/269 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
06.12.2005 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in design
and exporting wide
range of diamond
and gold jewelry
products, such as bangle,
brooch, pendants, fancy
diamonds, earrings, bracelets,
diamond ring, diamond
brooch, diamond bangle,
diamond necklace |
|
|
|
|
No. of Employees : |
6 |
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 |
|
|
|
|
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'etat, 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
ANAN ANJAMANI
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 21st FLOOR,
JEWELRY TRADE CENTER,
919/269 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE
: [66] 2630-3281,
2630-0119, 2630-0779
FAX :
[66] 2630-0899
E-MAIL ADDRESS : info@anananjamani.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548157964 [Former
: 0108454825176]
TAX ID NO. : 3032008013
CAPITAL REGISTERED : BHT.
31,000,000
CAPITAL PAID-UP
: BHT.
31,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR. VIBHOR AGARWAL,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF
: 6
LINES OF
BUSINESS : JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was established on December 6, 2005 as
a private limited
company under the
registered name ANAN
ANJAMANI CO., LTD.,
by Thai and
Indian groups, with the business
objective to design and export wide range of jewelry
products. It currently employs
6 staff.
The subject’s registered
address is 21st
Floor, Jewelry Trade Center,
919/269 Silom Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vibhor Agarwal |
|
Indian |
30 |
|
Mr. Anil Kumar Kothari |
|
Indian |
54 |
|
Mrs. Varinthip Sukprasert |
|
Thai |
35 |
|
Mr. Anuj Hirawat |
|
Indian |
28 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Vibhor Agarwal is
the Managing Director.
He is Indian
nationality with the
age of 30
years old.
BUSINESS OPERATIONS
The subject’s
core business is
engaged in design
and exporting wide
range of diamond
and gold jewelry
products, such as bangle,
brooch, pendants, fancy
diamonds, earrings, bracelets,
diamond ring, diamond
brooch, diamond bangle,
diamond necklace. The products
have been produced
by local jewelry
manufacturing contractor.
The subject
is also an importer
and distributor of diamonds and gemstones
to jewelry industry.
IMPORT
Diamonds and
gemstones are imported
from India, Republic
of China, Singapore
and Hong Kong.
SALES
The products are
sold locally to
manufacturers and end-users.
EXPORT
Jewelry products are
exported to Hong
Kong, U.S.A., Philippines, Canada, Republic of China,
India, Japan, Singapore,
Cambodia, Turkey and
the countries in Europe
and Middle East regions.
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
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
was formed in
2005 as a
design and exporter
of jewelry products. 100%
of the jewelry
products are for overseas
markets. Despite of
a slowdown of
economy, the subject’s
operating performance in
2014 was satisfactory
with an increase
in both sales revenue
and net profit comparing
to the previous
year. This was
mainly due to
effective market expansion in
overseas market in
the past year.
As an exporter,
the subject would
have a benefit
from a weakness
of Thai baht
against other currencies
at the moment.
In 2015, the subject
registered for an
increase of its
capital to Bht.
31,000,000 with fully
paid-up, this would assist
on its liquidity
flow. Generally, the
subject’s business is promising
and growing moderately.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each.
The capital
was increased later
as follows:
Bht. 8,000,000
on October 30,
2009
Bht. 14,000,000
on April 19,
2012
Bht. 20,000,000
on December 12,
2012
Bht. 27,000,000
on April 10,
2014
Bht. 31,000,000
on September 4,
2015
The latest
registered capital was
increased to Bht. 31,000,000 divided
into 310,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
September 3, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vibhor Agarwal Nationality: Indian Address : 206/8
Kalapapruek Rd., Bangwa,
Pasicharoen, Bangkok |
50,654 |
16.34 |
|
Mr. Anuj Hirawat Nationality: Indian Address : 28/7 Kalapapruek Rd.,
Bangkhunthien,
Jomthong, Bangkok |
41,323 |
13.33 |
|
Mr. Anil Kumar Kothari Nationality: Indian Address : 11/29-30
Kalapapruek Rd., Bangkhunthien,
Jomthong, Bangkok |
36,890 |
11.90 |
|
Mrs. Varinthip
Sukprasert Nationality: Thai Address : 14/208
Soi Putthabucha 36 Yaek 1,
Bangmod, Thungkru, Bangkok |
31,620 |
10.20 |
|
Ms. Ladda Boonsri Nationality: Thai Address : 8
Moo 7, T. Duasritanchai, A. Vanornniwas,
Sakolnakorn |
31,620 |
10.20 |
|
Ms. Paveena
Earb-arb Nationality: Thai Address : 307
Moo 4, T. Huayjode, A. Wattananakorn, Srakaew |
31,620 |
10.20 |
|
Mr. Chalermpol
Laesungnern Nationality: Thai Address : 13/1
Trok Wat Pathumwanaram,
Pathumwan, Bangkok |
31,620 |
10.20 |
|
Ms. Thanasirisap
Nicholas Nationality: Thai Address : 13/1
Trok Wat Pathumwanaram,
Pathumwan, Bangkok |
31,620 |
10.20 |
|
Mrs. Kiran Kothari Nationality: Indian Address : 11/29-30
Kalapapruek Rd., Bangkhunthien,
Jomthong, Bangkok |
23,033 |
7.43 |
Total
Shareholders : 9
Share Structure [as at
September 3, 2015]
|
Nationality |
Shareholders |
No.
of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
158,100 |
51.00 |
|
Foreign - Indian |
4 |
151,900 |
49.00 |
|
Total |
9 |
310,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Sita
Piboonchinda No. 11044
BALANCE
SHEET [BAHT]
The latest
financial figures published for December 31, 2014,
2013 & 2012
were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
3,885,724.56 |
3,987,936.84 |
5,808,390.62 |
|
Trade Accounts Receivable
|
160,351,999.99 |
99,181,145.90 |
54,082,959.28 |
|
Inventories
|
137,451,059.95 |
55,688,551.47 |
7,235,806.84 |
|
Other Current Assets
|
1,777,246.59 |
1,767,677.63 |
1,840,099.10 |
|
Total Current
Assets |
303,466,031.09 |
160,625,311.84 |
68,967,255.84 |
|
|
|
|
|
|
Cash at Bank pledged as a Collateral |
20,000,000.00 |
- |
- |
|
Fixed Assets
|
6,968,838.47 |
5,966,994.84 |
4,633,969.29 |
|
Other
Non-current Assets |
590,333.20 |
254,233.20 |
- |
|
Total Assets |
331,025,202.76 |
166,846,539.88 |
73,601,225.13 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Short-term Loan from Bank |
134,816,913.28 |
84,718,942.87 |
|
|
Trade Accounts
& Notes Payable |
127,438,190.76 |
34,113,111.89 |
23,020,336.72 |
|
Current Portion of Hire-purchase Payable |
797,905.79 |
232,774.00 |
1,946,326.24 |
|
Total
Current Liabilities |
263,053,009.83 |
119,064,828.76 |
24,966,662.96 |
|
Hire-purdhase
Payable |
978,567.37 |
493,976.00 |
- |
|
Long-term Loan from Related
Person |
20,900,000.00 |
15,261,987.68 |
21,183,275.45 |
|
Total Liabilities |
284,931,577.20 |
134,820,792.44 |
46,149,938.41 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized and
issued share capital
270,000 shares
in 2014, 200,000 shares
in 2013 & 2012 |
27,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Capital Paid |
27,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
19,093,625.56 |
12,025,747.44 |
7,451,286.72 |
|
Total Shareholders' Equity |
46,093,625.56 |
32,025,747.44 |
27,451,286.72 |
|
Total Liabilities
& Shareholders' Equity |
331,025,202.76 |
166,846,539.88 |
73,601,225.13 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
472,747,865.50 |
193,447,698.78 |
153,225,604.32 |
|
Less:
Refundable Goods |
- |
- |
[548,500.00] |
|
Less: Discount
Payment |
- |
- |
[2,560.59] |
|
Interest Income |
- |
- |
6,656.03 |
|
Gain on Exchange Rate |
- |
- |
746,203.10 |
|
Other Income |
2,766.04 |
2,028,999.15 |
- |
|
Total Revenues |
472,750,631.54 |
195,476,697.93 |
153,427,402.86 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
418,154,234.62 |
166,289,773.71 |
129,145,464.05 |
|
Selling Expenses |
18,094,080.37 |
5,520,493.02 |
6,298,110.25 |
|
Administrative
Expenses |
17,003,148.78 |
15,621,587.70 |
13,493,527.66 |
|
Loss on Exchange Rate |
7,038,502.81 |
- |
- |
|
Total
Expenses |
460,289,966.58 |
187,431,854.43 |
148,937,101.96 |
|
Profit / [Loss]
before Financial Cost
& Income Tax |
12,460,664.96 |
8,044,843.50 |
4,490,300.90 |
|
Financial Cost |
[3,505,817.31] |
[2,183,553.89] |
[406,166.97] |
|
|
|
|
|
|
Profit / [Loss]
before Income Tax |
8,954,847.65 |
5,861,289.61 |
4,084,133.93 |
|
Income Tax |
[1,886,969.53] |
[1,286,828.89] |
[1,249,128.82] |
|
Net Profit / [Loss]
|
7,067,878.12 |
4,574,460.72 |
2,835,005.11 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.35 |
2.76 |
|
QUICK RATIO |
TIMES |
0.62 |
0.87 |
2.40 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
67.84 |
32.42 |
32.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.16 |
2.07 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
119.98 |
122.23 |
20.45 |
|
INVENTORY TURNOVER |
TIMES |
3.04 |
2.99 |
17.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
123.80 |
187.14 |
129.29 |
|
RECEIVABLES TURNOVER |
TIMES |
2.95 |
1.95 |
2.82 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
111.24 |
74.88 |
65.06 |
|
CASH CONVERSION CYCLE |
DAYS |
132.54 |
234.49 |
84.68 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.45 |
85.96 |
84.59 |
|
SELLING & ADMINISTRATION |
% |
7.42 |
10.93 |
12.96 |
|
INTEREST |
% |
0.74 |
1.13 |
0.27 |
|
GROSS PROFIT MARGIN |
% |
11.55 |
15.09 |
15.90 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.64 |
4.16 |
2.94 |
|
NET PROFIT MARGIN |
% |
1.50 |
2.36 |
1.86 |
|
RETURN ON EQUITY |
% |
15.33 |
14.28 |
10.33 |
|
RETURN ON ASSET |
% |
2.14 |
2.74 |
3.85 |
|
EARNING PER SHARE |
BAHT |
26.18 |
22.87 |
14.18 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.81 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.18 |
4.21 |
1.68 |
|
TIME INTEREST EARNED |
TIMES |
3.55 |
3.68 |
11.06 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
144.38 |
26.70 |
|
|
OPERATING PROFIT |
% |
54.89 |
79.16 |
|
|
NET PROFIT |
% |
54.51 |
61.36 |
|
|
FIXED ASSETS |
% |
16.79 |
28.77 |
|
|
TOTAL ASSETS |
% |
98.40 |
126.69 |
|
ANNUAL
GROWTH : EXCELLENT
An annual sales growth is 144.38%. Turnover has increased
from THB
PROFITABILITY
: SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.55 |
Acceptable |
Industrial
Average |
16.41 |
|
Net Profit Margin |
1.50 |
Impressive |
Industrial
Average |
1.41 |
|
Return on Assets |
2.14 |
Acceptable |
Industrial
Average |
3.02 |
|
Return on Equity |
15.33 |
Impressive |
Industrial
Average |
8.20 |
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 11.55%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's
efficiency in that net profit takes into consideration all expenses of the company.
A low profit margin indicates a low margin of safety, higher risk that a
decline in sales will erase profits and result in a net loss. Net Profit Margin
ratio is 1.5%, 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 2.14%.
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. Return on
Equity ratio is 15.33%, higher figure when compared with those of its average
competitors in the same industry, indicated that business was an efficient
profit in a dominant position within its
industry.
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 |
1.15 |
Acceptable |
Industrial
Average |
1.66 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
132.54 |
|
|
|
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 1.15 times in 2014, decrease from 1.35 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 0.62
times in 2014, decrease from 0.87 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 133 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
6.18 |
Risky |
Industrial
Average |
1.49 |
|
Times Interest Earned |
3.55 |
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 3.56 higher than 1, so the company can pay
interest expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which
are financed through debt. The company's figure is 0.86 greater than 0.5, most
of the company's assets are financed through debt.
Trend
of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY
: SATISFACTORY
ACTIVITY
RATIO
|
Fixed Assets Turnover |
67.84 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.43 |
Acceptable |
Industrial
Average |
2.14 |
|
Inventory Conversion Period |
119.98 |
|
|
|
|
Inventory Turnover |
3.04 |
Satisfactory |
Industrial
Average |
3.44 |
|
Receivables Conversion Period |
123.80 |
|
|
|
|
Receivables Turnover |
2.95 |
Acceptable |
Industrial
Average |
4.11 |
|
Payables Conversion Period |
111.24 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.95
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 122 days at the
end of 2013 to 120 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 2.99 times in year 2013 to 3.04 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.43
times and 1.16 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.64.88 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.