MIRA INFORM REPORT

 

 

Report Date :

12.11.2012

 

IDENTIFICATION DETAILS

 

Name :

CEYITAL JEWELS (PVT) LTD

 

 

Registered Office :

# 4A, Bagatalle Road, Colombo 03

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

14.07.1991

 

 

Com. Reg. No.:

PV 3512

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacture & Export of Gems & Jewellery

 

 

No. of Employees :

30 employees

 

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

 

Source : CIA

 

 

 

general

Basic information at a glance

 

 

Name of Subject of Inquiry

:

CEYITAL JEWELS (PVT) LTD

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

Managing Director

:

Mohamed Rizwan Sahabdeen

Primary Line of Business

:

Manufacture & Export of Gems & Jewellery

Head office

&

Place of Business

 

 

 

# 4A, Bagatalle Road,

Colombo 03,

Sri Lanka

 

Tel. No: (00 94 11) 239 9601 -2, 239 9603 - 4

Fax No: (00 94 11) 250 5329

 

E-mail: sifanicare@eureka.lk

Location: Owned

 

No. of Employees

:

30

 

           

 

COMPANY DETAILS 

Registration and Shareholder Details

 

Registration No

 

:

 

N (PVS) 7806

Date of Registration

 

:

14th July 1991

Re-registration No

 

PV 3512

Date of Re-registration

 

 

25th April 2008

Registered Office

:

# 4A, Bagatalle Road, Colombo 03 Sri Lanka

Board of Directors

As At

28th January 2012

:

Mohamed Rizwan Sahabdeen

Managing

Director

Sithi Ruchia Sahabdeen

Director

Abdul Majeed Mahamed Sahabdeen

Director

Issued Share Capital

:

Rs.  149,500.00

Nominal Value of Share

:

Rs.             10.00

 

Share Holders

As At

28th January 2012

:

Share Holders

No. of

Shares

Mohamed Rizwan Sahabdeen

1,950

Sithi Ruchia Sahabdeen

50

Abdul Majeed Mahamed Sahabdeen

50

Sifani Jewellers (Pvt) Ltd

8,050

Majeed Sons Ltd

3,000

Yumenics Gem Jewels

1,850

Auditors

:

Weerasinghe & Company

Company Secretaries

:

Seccom (Pvt) Ltd

Bankers

:

HSBC Bank

Trading Terms

:

Purchasing Terms: L/C, Cash

Selling Terms : L/C, Cash

 

Type of Customers

:

·         Wholesalers

Retailers

 

 

 

FINANCIAL DETAILS

 

 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

 

CURRENT INVESTIGATION                      

 

·         History.

The Subject Company CEYITAL JEWELS (PVT) LTD is a Private Limited liability Company incorporated on 14th July 1991 under registration number N (PVS) 7806

                  And re-registered in terms of Companies Act. # 07 of 2007 on 25th April 2008 under

                  Registration number PV 3512.

 

·         Location.

     The Subject Company is located at the client # 4A, Bagatalle Road, Colombo   

     03 Sri Lanka

 

·         Operational Details.

 

General

                  The subject company’s primary line of business is Manufacture & Export of Gems & Jewellery

.

Products

 Gems & Jewellery, Diamonds

 

 Country

South Asian

 

No of Employees

                   30

 

Information Parted By:

 

Name               : Mr. Ratdurai

Designation     : Accounts Executive

Date                 : 09.11.2012

 

·         Directors & Shareholders Information

 

                01)

Name

Mohamed Rizwan Sahabdeen

Sex

Male

Nationality

Sri Lankan

National ID No.

602610179 V

Date of Birth

17th September, 1960

Age

52 Years

 

 

                02)

Name

Sithi Ruchia Sahabdeen

Sex

Female

Nationality

Sri Lankan

National ID No.

417101098 V

Date of Birth

28th July 1941

Age

71 Years

 

 

                03)

Name

Abdul Majeed Mahamed Sahabdeen

Sex

Male

Nationality

Sri Lankan

National ID No.

261401746 V

Date of Birth

19th May 1926

Age

86 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

Sri Lanka Gem & Jewellery Association

 

 

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.54.34

UK Pound

1

Rs.86.97

Euro

1

Rs.69.43

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.