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Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
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Name : |
RAJA JEWELLERS (PVT) LTD - 199131 |
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Registered Office : |
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Country : |
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Date of Incorporation : |
21.12.1995 |
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Com. Reg. No.: |
PV 12199 |
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Legal Form : |
Private Limited Liability Company
(In Operation) |
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Line of Business : |
Manufacture & Export of Gems & Jewellery |
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No. of Employees : |
Approx. 175 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Sri Lanka - ECONOMIC OVERVIEW
Sri Lanka continues to experience strong economic growth, driven by large-scale reconstruction and development projects following the end of the 26-year conflict with the LTTE. Sri Lanka is pursuing a combination of government directed policies, private investment, both foreign and domestic, to spur growth in disadvantaged areas, develop small and medium enterprises, and increase agricultural productivity. The government struggles with high debt interest payments, a bloated civil service, and historically high budget deficits. However recent reforms to the tax code have resulted in higher revenue and lower budget deficits in recent years. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded strongly with the end of the war and an IMF agreement, resulting in two straight years of high growth in 2010 and 2011. Per capita income of $5,600 on a purchasing power parity basis is among the highest in the region.
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Source : CIA |
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Name of Subject of Inquiry |
: |
RAJA JEWELLERS
(PVT) LTD |
|
Legal Form & Status |
: |
Private Limited Liability Company (In Operation) |
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Managing
Director |
: |
Athula Eliyapura |
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Primary Line of Business |
: |
Manufacture
& Export of Gems & Jewellery |
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Head office & Place of
Business |
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#
173, Galle Road, Colombo
04, Sri Lanka Tel. No: (00 94 11) 258 3223 / 258 6940 / 259
5655 Fax No: (00 94 11) 259 5656 E-mail: info@rajajewellers.com customercare@rajajewellers.com |
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No. of Employees |
: |
Approx.
175 |
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Registration No |
: |
N (PVS) 16462 |
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Date of Registration |
: |
21st December 1995 |
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Re-registration No |
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PV 12199 |
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Date of Re-registration |
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09th March 2011 |
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Registered Office |
: |
#
173, Galle Road, Colombo 04, Sri Lanka |
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Board of Directors As At 31st December 2011 |
: |
Athula Eliyapura |
Managing Director |
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Asoka Eliyapura |
Director |
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Issued Share Capital |
: |
Rs.
250,020.00 |
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Nominal Value of Share |
: |
Rs.
10.00 |
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Share Holders As At 31st December 2011 |
: |
Share Holders |
No. of Shares |
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Athula Eliyapura |
25,001 |
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Asoka Eliyapura |
01 |
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Auditors |
: |
I R Associates |
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Company Secretaries |
: |
Champika Dilhara Amarasekera |
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Bankers |
: |
-Not Disclosed- |
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Most recent
available Financial Information
THE
COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES
Based on the corporate laws of Sri Lanka, legal entities which are
Private Company with Limited
Liability is not required to make public disclosure of their annual
financials. Therefore no financials
Are available for this entity
·
History.
The Subject Company RAJA JEWELLERS (PVT) LTD is a Private Limited liability Company
incorporated on 21st December
1995 under registration number N (PVS) 16462
And
re-registered in terms of Companies Act. # 07 of 2007 on 09th March 2011 under
Registration
number PV 12199.
·
Location.
The Subject Company is located at the
client
Sri
Lanka
·
Operational
Details.
General
The subject company’s
primary line of business is Manufacture
& Export of Gems & Jewellery
.
Products
Rings, Necklaces, Pendants,
Bangles
Country
South Asian
No of Employees
Approx. 175
·
Directors &
Shareholders Information
01)
|
Name |
Athula Eliyapura |
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Sex |
Male |
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Nationality |
Sri Lankan |
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National ID No. |
623660164 V |
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Date of Birth |
31st December, 1962 |
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Age |
49 Years |
02)
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Name |
Asoka Eliyapura |
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Sex |
Male |
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Nationality |
Sri Lankan |
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National ID No. |
580880662 V |
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Date of Birth |
28th March 1958 |
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Age |
54 Years |
·
Financial Data
The company has
declined to provide information on its finances
Based on the
corporate laws of Sri Lanka, legal entities which are Private Company with
Limited Liability is not required to
make public disclosure of their annual financials.
Therefore no financials are
available for this entity
·
Trade references
National Gem and Jewellery authority
·
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 –
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.54.34 |
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UK Pound |
1 |
Rs.86.97 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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---- |
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.