MIRA INFORM REPORT

 

 

Report Date :           

28.02.2012

 

IDENTIFICATION DETAILS

 

Name :

JAL DIAM SDN. BHD.

 

 

Registered Office :

Ramanathan & Associates, Kuala Lumpur, Wilayah Persekutuan, Zip/Postal Code 50100

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

29.09.2001

 

 

Com. Reg. No.:

560270-K

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Import and export in precious stones and diamonds

 

 

No. of Employees :

02

 

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 :

Small Company 

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 


Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name                : JAL DIAM SDN. BHD.

 

Business address         : A-15-12, Waldorf Tower Service Apartment

62, Jalan Sri Hartamas 1

Town                             : Kuala Lumpur

Province                        : Wilayah Persekutuan

Zip/postal code              : 50480

Country                         : Malaysia

Tel :                              +60 12 2297426

 

Registered address      : RAMANATHAN & ASSOCIATES

Town                             : Kuala Lumpur

Province                        : Wilayah Persekutuan

Zip/postal code              : 50100

Country                         : Malaysia

Comments                    : The Subject does not operate from a physical office instead operates from residential

premises of Mr. Jignesh Rameshkumar Jhaveri.

 

 

Summary details

 

Executive Summary

Date founded or registered          : 29/09/2001

Legal form                                 : Private Company Limited By Shares

Chief executive                          : Jignesh Rameshkumar Jhaveri

Issued & paid up capital             : MYR 350,000

Sales turnover                            : MYR 7,590,031 (Non-consolidated 12 months, 31/12/2010)

Net income                                : MYR 26,683 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets                       : MYR 6,845,641 (Non-consolidated 12 months, 31/12/2010)

Line of business             : Import and export in precious stones and diamonds.

Staff employed                           : 2 employees

 

 

Credit risk opinion

 

Company Analysis

Country risk                               : Country risk is minimal

Operation trend :                        Operational trend is declining

Management experience             : Management is modestly experienced

Financial performance                : Financial performance is fair

Organisation structure                : Organisational structure is acceptable

Detrimental                    : No detrimental records found

Payment history                                    : No payment delays noted

 

 

Statutory details

 

Registry Data

Registration date                        : 29/09/2001

Legal form :                               Private Company Limited By Shares

Registration no                          560270-K

Registered authority                   : Companies Commission of Malaysia

Registry status                          : Live/Active

Previous name                           : None reported.

Change of legal form                   : None reported.

 

 

Management / directors

 

 

Key Management

Name                : Jignesh Rameshkumar Jhaveri

Designation       : Managing Director

 

 

Board of directors / other appointments

 

Appointments

Name                            : A. Maheswary A/P S.Arjunan

Designation                   : Director

Identification no : 660818-10-6180

Appointment date           : 29/09/01

Address                        : Block C, C01-08, Palm Court Condominium

Jalan Berhala

Brickfields

50470 Kuala Lumpur

Wilayah Persekutuan

Malaysia

 

Name                :           Jignesh Rameshkumar Jhaveri

Designation                   Director

Identification no :            Z012926

Appointment date :         29/09/01

Address :                      A-15-12, Waldorf Tower Service Apartment

62, Jalan Sri Hartamas 1

50480 Kuala Lumpur

Wilayah Persekutuan

Malaysia

 

Name :                          M Ramanathan A/l S M Meyyappan

Designation :                 Company Secretary

Identification no :            600923-10-6815

Appointment date :         29/09/01

Address :                      15, Jalan Dato Abdul Aziz 14/29

46100 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Staff employed : 2 employees

 

Key Advisors

Auditors :          WSJ & CO

136A, Jalan Cerdas

Taman Connaught

Cheras 56000

Kuala Lumpur

Wilayah Persekutuan

Malaysia

 

 

Share capital

 

Composition

Authorized Capital :        MYR 500,000

No of shares :                500,000 Ordinary Shares

Share par value :            MYR 1

Issued capital :              MYR 350,000

Paid up capital :             MYR 350,000

OWNERSHIP /

 

 

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name          Siti Suhana Binti Mohamed Othman

Address :                      3432, Jalan 18/60B

Taman Sri Serdang

43400 Seri Kembangan

Selangor Darul Ehsan

Malaysia

No. of shares                 122,500 Ordinary Shares

 

Shareholder name          A. Maheswary A/P S.Arjunan

Address :                      Block C, C01-08, Palm Court Condominium

Jalan Berhala

Brickfields

50470 Kuala Lumpur

Wilayah Persekutuan

Malaysia

No. of shares :               122,500 Ordinary Shares

 

Shareholder name :        Jignesh Rameshkumar Jhaveri

Address :                      A-15-12, Waldorf Tower Service Apartment

62, Jalan Sri Hartamas 1

50480 Kuala Lumpur

Wilayah Persekutuan

Malaysia

No. of shares                 105,000 Ordinary Shares

 

 

Related companies & corporate Affiliations

 

Structure

 

Related companies and corporate affiliations comments : None Reported

 

 

Bank & mortgages

 

Bank Details

Name of bank :              Malayan Banking Berhad (Maybank)

Address :                      Malaysia

Account details :            Current Account

 

Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

 

Mortgages                     : None reported.

 

Legal Fillings

Bankruptcy fillings          : None reported.

Court judgements           : None reported.

Tax liens                       : None reported.

Others                          : None reported.

 

FINANCIAL DATA

financial data

 

Description

Source of financial statement                  Commercial registry Filings

Financial statement date                        31/12/2010

Type of accounts                                   Full Audited

Currency                                               Malaysia, Ringgit (MYR)

Exchange rate                                       1 USD = MYR 3.16 as of 19-11-2011


Summarized Financial Information

 

Consolidation type                                             Non Consolidated                       Non Consolidated          

Currency                                                           Malaysia, Ringgit (MYR)             Malaysia, Ringgit (MYR)

Denomination                                                    (x1) One                                    (x1) One

Date of financial year end                                    31/12/2010                                31/12/2009

Length of accounts                                             12 months                                 12 months                    

Sale turnover / Income                                        7,590,031                                  9,580,403

Gross profit                                                       350,066                         398,373

Profit before tax                                                 35,149                                      91,610

Net income                                                        26,683                                      71,743

Non current assets                                             51,235                                      62,850

Current assets                                                   6,794,406                                  6,608,350

Inventories                                                         1,397,691                                  1,151,103

Total assets                                                      6,845,641                                  6,671,200         

Current liabilities                                                6,201,460                                  60,53,702

Total liabilities                                                    6,201,460                                  60,53,702

Share equity                                                      644,181                         617,498

Retained earning                                                294,181                         267,498

 

Operation details

 

Main activities                : The Subject's main activities are import and export of precious stones and diamonds.

 

Purchases

International                   : India, Hong Kong

 

Sales

International                   : None reported.

 

Property & Assets

Premises                      : The Subject operates from residential premises located at the verified heading address

consisting of administrative office.

 

Branches                      : None reported.

 

Other property               : Total NBV of property, plant and equipment as of 31-12-2010 was MYR 51,235.

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$134.4 billion as of 14 October 2011

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   442.01 billion of International dollars

 

GDP per capita - current prices               :   US$ 8,624

 

GDP - composition by sector                  :   agriculture: 9.4% industry: 40.9% services: 49.7%

 

Inflation                                                 2008: 5.4%

2009: 0.6%

2010: 1.7%

 

Unemployment                                      2008 : 3.3 %

2009 : 3.6 %

2010: 3.3 %

Public debt

(General Government gross

debt as a % GDP)                                  2008: 42.8  %

2009: 55.4 %

2010:   54.2%

 

Government bond ratings                        Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

 

Market value of publicly traded shares      US$ 420 billion

 

Largest companies in the country           :   CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank (Banking), Maybank (Banking), Tenaga Nasional(Utilities), Petronas Chemicals, Maxis Berhad

 

Trade & Competitiveness Overview

Total exports                                         US$210.3 billion

 

Exports commodities                             electronic equipment, petroleum and liquefied natural gas, wood and

wood products, palm oil, rubber, textiles, chemicals

 

Total imports                                         US$156.2 billion

 

Imports commodities                              electronics, machinery, petroleum products, plastics, vehicles, iron and

steel products, chemicals

 

Export - major partners                           US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%,

HongKong 4.6%

 

Import - major partners                           Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%,

Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows                                            2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows                                          2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business            21 out of 183 countries

 

Global competitiveness ranking               26 (ranking by country on a basis of 133, the first is the best)

 

Country and Population Overview

Total population                                    : 28.23 million

Total area                                             : 329,847 km2

Capital                                                 :  Kuala Lumpur

Currency                                                                                                      :   Malaysia Ringgits (MYR)

Internet users as % of total population  : 57.61%

 

 

Payment history

 

Purchase Term

International :                 Credit 120-150 days D/A

 

Sales Term

International :                 Credit 120-150 days D/A

 

Trade Reference/ Payment Behaviour

Comments                    : As local and international trade references were not supplied, the Subject's payment

track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

Investigation Note

Sources                        : Interviews and material provided by the Subject

: Other official and local business sources

 

 


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.49.05  

UK Pound

1

Rs.77.78

Euro

1

Rs.65.89

 

 

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.