MIRA INFORM REPORT

 

 

Report Date :           

30.01.2012

 

IDENTIFICATION DETAILS

 

Name :

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

 

 

Registered Office :

# 49, Ring Road, Phase 1, I.P.Z, Katunayake

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

21.12.1990

 

 

Com. Reg. No.:

PQ 94         

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufacturing & Exporting of Diamond Studded Gold Jewellery with Carbnloked Setting

 

 

No. of Employees :

Not Available

 

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

 

 

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)

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

:

 

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

 

Legal Form  & Status

:

Public Limited Liability Company quoted on the Colombo Stock Exchange  (In operation)

Chairman / Managing Director

:

W.G.B.M. Bandara

Primary Line of Business

:

Manufacturing & Exporting of Diamond Studded Gold Jewellery with Carbnloked Setting

Head office

&

Place of Business

 

:

 

# 49, Ring Road,

Phase 1, I.P.Z,

Katunayake

Sri Lanka.

 

Tel. No: (00 94 11) 225 3496 / 225 3497

Fax No: (00 94 11) 225 3498

 

Email: bdjmarketing@sltnet.lk

 

No. of Employees

:

Not Disclosed

 

 

COMPANY DETAILS- Registration and Shareholder Details

 

Registration No

:

PQ 94         

Date of Registration

 

21st December 1990

Registered Office

:

# 49, Ring Road, Phase 1, I.P.Z, Katunayake

Board of Directors

As at

31st March 2011

:

W.G.B.M. Bandara

Chairman / Managing Director

G De Kretser

Director

K.V.D.D.A. Dias

Director

W.K. Galagoda

Director

M.M.N. Priyantha

Director

H.A. Wehalle

Director

W.P.J.L.M. Fernando

Director

M.B.K.Satharasinha

Director

M.Thiagarajah

Director

Issued Share Capital

:

Rs.   1,533,698,000.00              

Nominal Value of Share

:

Rs.                      10.00                    

 

Major Share Holders

As at

31st March 2011

:

Share Holders

No. of

Shares

Ceylinco Insurance Company PLC

5,085,817

K. P. N. S. Karunagoda

3,000,000

K. H. R. Thilakarathna

2,816,600

M. Jayaweera

2,092,400

S. M. Masoor

1,853,500

L. U. Samaranayake

1,569,000

L. B. Jayaratne

1,359,100

The Finance Portfolio Management Company Ltd

1,300,000

S. A .Lukmanjee

1,250,000

S. S. Silva

1,000,000

Auditors

:

KPMG Ford, Rhodes, Thornton  Co.

Company Secretaries

:

Corporate Arcade Ltd

Bankers

:

Bank of Ceylon, Seylan Bank, Hatton National Bank

 

 

FINANCIAL DETAILS

- Most recent available Financial Information

 

 

 

 

 

CURRENT INVESTIGATION                      

 

·         History

 

                     The Subject Company BLUE DIAMONDS JEWELLERY WORLDWIDE PLC is a Private    Limited   liability Company incorporated on 21st December 1990 under registration number PQ 94 and BOI status on 7th March 1991 and listed with the Colombo stock exchange on 31st March 1992.

 

·         Location.

The subject company is located at # 49, Ring Road, Phase 1, I.P.Z, Katunayake client given address # 79, Ring Road, Phase 1, I.P.Z. Katunayake in incorrected address.

 

·         Operational Details.

 

General

              The subject company primary line of business is Manufacturing & Exporting of Diamond Studded Gold Jewellery with Carbnloked Setting.

 

            Products

                  Diamond, Gold Jewellery, Floating Diamonds

 

                    Brands

                   Fior – Driss Age, Fior, Sicille

 

Country

China, Japan, Hong Kong, Singapore, Libiya, United Arabi Emirates, Qatar, India, U.S.A

 

Employees

                    Not Disclosed

 

·         Financial Data

Received from Subject Company Annual Report

 

·         Trade references

                   The subject company did not provide any trade reference referrals

 

·         Credit Recommendations

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.49.65

UK Pound

1

Rs.77.80

Euro

1

Rs.65.05

 

 

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.