MIRA INFORM REPORT

 

 

Report Date :           

07.02.2012

 

IDENTIFICATION DETAILS

 

Name :

DIAMOND DREAMS (PVT) LTD

 

 

Registered Office :

 # 27 Joseph  Lane,  Colombo  04

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

16.07.2009

 

 

Com. Reg. No.:

PV 68458

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufactures, Importers, Exporters and dealers in gems stones, diamonds, gold and silver jewellery

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Unknown

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Sri Lanka

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

GENERAL- Basic information at a glance

     

Name of Subject of Inquiry

:

DIAMOND DREAMS (PVT) LTD

 

Legal Form  & Status

:

Private Limited Liability Company    (In operation)

Managing Director

:

Pearl Delecia Chandrawanasa

Primary Line of Business

:

Manufactures, importers, exporters and dealers in gems stones, diamonds, gold and silver jewellery

Head Office

&

Place of Business

 

:

 

 # 27 Joseph  Lane,

 Colombo  04,

Sri Lanka.

         

Tel : 2501717, 451,8543, 451,6957

Fax : 541 0464

 

Email : info@dimonddreamslk.com

 

Location : Owned

No. of Employees

:

 

-Not Disclosed

 

 

 

 

 

           


COMPANY DETAILS- Registration and Shareholder Details

 

Registration No

:

PV 68458

Date of Registration

:

16th July 2009

Registered Office

:

# 142  155 A, Anderson Road, Jansenwatha, Nadimala, Dehiwela

Board of Directors

As At

14th October 2011

:

Pearl Delecia Chandrawansa

Managing Director

W.A. Priyakamal Mahendra

Director

Issued Share Capital

:

Rs.  8,705,560.00                  

Nominal Value of Share

:

Rs.             10.00

 

Share Holders

As At

14th October 2011

:

Share Holders

No. of

Shares

Pearl Delecia Chandrawansa

    583,272

W.A. Priyakamal Mahendra

    287,284

Auditors

:

Dias Associates

Company Secretaries

:

Professional Assignments and secretarial services (PVT) Ltd

Bankers

:

-Not Disclosed-

Trading Terms

:

Purchasing Terms: L/C, Cash, Credit

Selling Terms:   L/C, Cash, Credit

 


Information Parted By:

 

Name               : Mr. Ravi Parera

Designation     : Finance Manager

Date                 : 03.02.2012

 

 

CURRENT INVESTIGATION                      

 

History.

The Subject Company DIAMOND DREAMS (PVT) LTD is a Private Limited   liability Company incorporated on 16th July 2009 under registration number PV 68458.

 

Location.

The Subject Company is located at # 27 Joseph Lane Colombo 04.

                  

Operations Details.

 

General

The subject company primary line of business is Manufactures, importers, exporters and dealers in gems stones, diamonds, gold and silver jewellery

 

Products

Gems, Stones, Diamonds, Jewellery

 

Country

China, India, Korea, U.S.A

 

       Employees

-Not Disclosed

 

Director’s Details

 

01)

Name

Pearl Delecia Chandrawansa

ID Number

605441629 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

13th February 1960

Age

52 Years

 

02)

Name

W.A. Priyakamal Mahendra

ID Number

572130550 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th July 1957

Age

55 Years

 

Financial Data

The company has declined to provide information on its finances

 

In Sri Lanka, Private limited liability/partnership/proprietorship Companies do not Publish their Accounts for Public use other than the Shareholders

 

General Comments

The subject company when contacted refuse to provide any information to prepare this report and declined to disclose any operational.

 

Trade references

The subject company did not provide any trade reference referrals

 

Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

 

No computerised data bases exist to make checks whether the partners or the company has any legal Action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate Any such cases in the public knowledge

 

 

 

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.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          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 –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.68

UK Pound

1

Rs.76.75

Euro

1

Rs.63.57

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.