MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

S.M.JEWELS PTE LTD

 

 

Registered Office :

545 Orchard Road #09-10 Far East Shopping Ctr Singapore 238882

 

 

Country :

Singapore

 

 

Financials (as on) :

December, 2012

 

 

Date of Incorporation :

29.05.1996

 

 

Com. Reg. No.:

199603890E

 

 

Legal Form :

Limited Private Company

 

 

Line of Business :

Wholesale of Jewellery

 

 

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 :

Slow but Correct

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to 5.2% in 2011 and 1.3% in 2012, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to an average of about 1.0% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

Company Name:

Registered Number:

S.M.JEWELS PTE LTD

199603890E

 

Date Incorporated:

Registered Office:

Telephone Number:

29/05/1996

545 ORCHARD ROAD #09-10 FAR EAST SHOPPING CTR SINGAPORE 238882

6734  1409

Age of Company:

Website:

Industry Type:

17

NA

COMMERCE-WHOLESALE

 

 

Risk Dashboard

Debts Turn Cash

Trend:

No. of Litigation Counts:

Company DTC:

NA

NA

The entity is paying current to the creditors

No. of Charges(s):
0

Industry DTC

 

23

 

Directors

 

Corporate Structure

Number of Current Directors

2

Holding Company:

NA

Number that are shareholders

4

No. of Subsidiaries & Associated Companies:

NA

EXECUTIVE SUMMARY

 

Company Name

:

S.M.JEWELS PTE LTD

Registration No

:

199603890E

Date of Registration

:

29/05/1996

Former Name

:

NA

Date of Change of Name

:

NA

Type of Company

:

LIMITED PRIVATE COMPANY

Registered Address

:

545 ORCHARD ROAD #09-10 FAR EAST SHOPPING CTR SINGAPORE 238882

Date of Change of Address

:

21/11/2002

Contact No.

:

6734  1409

Fax No.

:

NA

Website

:

NA

Registered Activities

:

1. WHOLESALE OF JEWELLERY

2. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)

Issued Ordinary Capital*

:

$3,000,000.00 SINGAPORE, DOLLARS ,NO. OF SHARE : 3,000,000

Issued Preference Capital

:

NA

Paid-Up Ordinary Capital

:

$3,000,000.00 SINGAPORE, DOLLARS

Paid-Up Preference Capital

:

NA

* Number of Shares includes number of Issued Treasury Shares

Issued Treasury Capital

:

NA

Paid-Up Treasury Capital

:

NA

No. of Local Subsidiaries

:

NA

No. of Local Associates

:

NA

Auditor

:

VC ASSURANCE PAC

Bankers / Financiers

:

NA

Turnover

:

SINGAPORE, DOLLARS 13,187,753.00 (FY2012)

Net Worth

:

SINGAPORE, DOLLARS 3,297,355.00 (FY2012)

No. of Bank Charges

:

NA

No. of Litigation Suits

:

NA

S1000 / SME 1000 / FG50 Ranking

:

604 POSITION IN SME 1000 Companies Ranked by Sales/Turnover (2011/2012)

Compounded Annual Growth Rate (CAGR)

:

NA

 

 

SHAREHOLDER DETAILS

 

NAME

:

SHAH HITESH KISHORKUMAR

SHAREHOLDER ID

:

S7562238D

NATIONALITY

:

SINGAPORE P.R.

ADDRESS

:

35 MARINE CRESCENT #02-79 MARINE CRESCENT VILLE SINGAPORE 440035

NO. OF ORD SHARES

:

1,200,450

% OF SHAREHOLDING

:

40%

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

SHAH PARESHKUMAR SAMARATHLAL

SHAREHOLDER ID

:

S8179286J

NATIONALITY

:

SINGAPORE P.R.

ADDRESS

:

10 GEYLANG EAST AVENUE 2 #08-03 SIMSVILLE SINGAPORE 389758

NO. OF ORD SHARES

:

1,200,450

% OF SHAREHOLDING

:

40%

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

SEJAL GEMS INTERNATIONAL DMCC

SHAREHOLDER ID

:

T08UF2852C

NATIONALITY

:

INDIA

ADDRESS

:

MZ-2 AI DHAGAYA BLDG PLOT NO. 210 AI DHAGAYA DUBAI UAE

NO. OF ORD SHARES

:

599,000

% OF SHAREHOLDING

:

20%

CURRENCY

:

SINGAPORE, DOLLARS

 

NAME

:

PAKIR MOHAMED S/O A R RAHIMSA ROWTHER

SHAREHOLDER ID

:

S1243216Z

NATIONALITY

:

SINGAPORE CITIZEN

ADDRESS

:

6B BOON TIONG ROAD #09-57 BOON TIONG VILLE SINGAPORE 165006

NO. OF ORD SHARES

:

100

% OF SHAREHOLDING

:

0%

CURRENCY

:

SINGAPORE, DOLLARS

 

 

OFFICER DETAILS

 

NAME

:

SHAH HITESH KISHORKUMAR

ADDRESS

:

35 MARINE CRESCENT #02-79 MARINE CRESCENT VILLE SINGAPORE 440035

POSITION

:

DIRECTOR

DATE OF APPT

:

05/05/2006

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S7562238D

 

NAME

:

SHAH PARESHKUMAR SAMARATHLAL

ADDRESS

:

10 GEYLANG EAST AVENUE 2 #08-03 SIMSVILLE SINGAPORE 389758

POSITION

:

DIRECTOR

DATE OF APPT

:

15/09/2005

NATIONALITY

:

SINGAPORE P.R.

I/C PASSPORT

:

S8179286J

 

 

KEY PERSONNEL PROFILE

 

Name:

SHAH HITESH KISHORKUMAR

NRIC Number:

S7562238D

Available Address:

10 GEYLANG EAST AVENUE 2 #12-03 SIMSVILLE  SINGAPORE 389758

 

Current Business Interest

 

No.

Name

Position

Appt Date

#of Share

%

1

S.M.JEWELS PTE LTD

DIRECTOR

05/05/2006

900000

30.00

2

TANVI INTERNATIONAL PTE LTD

SECRETARY

01/10/2008

-

NA

 

Previous Business

 

No.

Name

 

 

Status

Position

Appt Date

Last Known Inactive Date

No Trace

 

 

 

 

 

Bankruptcy Record

 

Case No.

Year

Date of Filing

Petitioner Name

Amount

No Trace

 

 

 

 

 

 

Litigation Search – Writ of Summons

 

Court

Case No.

Transfer

Year

Date of Filing

Amount

Cause Category

No Trace

 

 

 

 

 

 

 

 

SUBSIDIARIES AND ASSOCIATE COMPANIES

 

Company

Shareholdings (%)

 

NA

 

           

 

BANKERS/ FINANCIERS

 

Subject enjoys a normal banking routine with its bankers. To date, there are no bank charges registered against Subject by its bankers.

             

 

LITIGATION

 

Clear

 

 

COMPLIANCE

 

Date of Last AGM

:

29/06/2013

Date of Last AR

:

31/07/2013

Date of A/C Laid At Last AGM

:

31/12/2012

 

 

FINANCIAL HIGHLIGHTS

 

Financial Figures

Company

 

DEC 2012

% Change

DEC 2011

DEC 2010

DEC 2009

DEC 2008

Currency

SINGAPORE, DOLLARS

 

SGD - SIN

SGD - SIN

SGD - SIN

SGD - SIN

Profit and Loss Key Figures

 

 

 

 

 

 

Turnover

13,187,753

-26.79

18,014,204

16,255,770

14,491,045

14,926,645

Profit/(Loss) Before Tax

130,656

-48.23

252,355

218,254

135,737

225,398

Profit After Tax attributable

 to Shareholders

120,015

-48.21

231,740

205,348

124,712

205,403

 

 

 

 

 

 

 

Balance Sheet Key Figures

 

 

 

 

 

 

Total Assets

9,751,595

-14.49

11,404,489

9,040,302

9,600,835

7,309,920

Current Assets

9,751,122

-14.49

11,403,185

9,039,261

9,596,281

7,301,527

Non Current Assets

473

-63.73

1,304

1,041

4,554

8,393

 

 

 

 

 

 

 

Total Liabilities

6,454,240

-21.55

8,227,149

6,094,702

6,860,583

4,694,380

Current Liabilities

6,454,080

-21.55

8,226,989

6,094,572

6,860,423

4,694,167

Non Current Liabilities

160

0.00

160

130

160

213

 

 

 

 

 

 

 

Shareholders' Funds

3,297,355

3.78

3,177,340

2,945,600

2,740,252

2,615,540

Share Capital

3,000,000

0.00

3,000,000

3,000,000

3,000,000

3,000,000

Total Reserves

297,355

67.68

177,340

(54,400)

(259,748)

(384,460)

 

 

FINANCIAL RATIOS 

 

 

Company

 

DEC 2012

DEC 2011

DEC 2010

DEC 2009

DEC 2008

Growth %

 

 

 

 

 

Year-on-Year Growth

-26.79

10.82

12.18

-2.92

NA

 

 

 

 

 

 

Profitability

 

 

 

 

 

Profit Margin (%)

0.91

1.29

1.26

0.86

1.38

Return on Equity (%)

3.64

7.29

6.97

4.55

7.85

Return on Assets (%)

1.23

2.03

2.27

1.30

2.81

 

 

 

 

 

 

Leverage

 

 

 

 

 

Total Debt/Equity (Times)

1.96

2.59

2.07

2.50

1.79

Current Debt/Equity (Times)

1.96

2.59

2.07

2.50

1.79

Long Term Debt To Equity (Times)

0.00

0.00

0.00

0.00

0.00

Total Asset To Total Equity (Times)

2.96

3.59

3.07

3.50

2.79

 

 

 

 

 

 

Asset Management

 

 

 

 

 

Total Assets Turnover (Times)

1.35

1.58

1.80

1.51

2.04

Fixed Assets Turnover (Times)

27,881.08

13,814.57

15,615.53

3,182.05

1,778.46

 

 

 

 

 

 

Liquidity

 

 

 

 

 

Current Ratio (Times)

1.51

1.39

1.48

1.40

1.56

 

 

FINANCIAL COMMENTARY

 

Profitability

The company yielded a rate of net profit on sales of 0.91 per cent in FY12 (FY11: 1.29 per cent). The company is now able to book in SINGAPORE, DOLLARS 0.01 of profit for every SINGAPORE, DOLLARS of sales in FY12, as compared with SINGAPORE, DOLLARS 0.01 a year ago.

 

Liquidity

 

Current ratio stood at 1.51 times in FY12 (FY11: 1.39 times). This means that the company has SINGAPORE, DOLLARS 1.51 of current assets for every SINGAPORE, DOLLARS of current liability incurred.

 

A minimum figure of 1.0 would be considered the lowest limit that this figure should reach. Any business that has a current ratio near 1.0 may be heading for liquidity problems, and would need to be closely monitored. A figure greater than 2.0 would be more desirable, to act as a buffer against any short-term liquidity problems, and give creditors/bank managers a degree of comfort when granting credit/finance.

 

Leverage

Total debt-to-equity ratio notched 1.96 times in FY12, as compared with 2.59 times in FY11. This means that the company requires additional external financing of SINGAPORE, DOLLARS 1.96 for every SINGAPORE, DOLLARS injected into its operations.

 

Generally, a total debt-to-equity ratio of less than 0.5 times is preferred. The ratio measures the proportion of the company's reliance on external debt for financing, relative to the shareholder's fund. A lower ratio would imply a greater financial safety and operating freedom for the company.

 

 

 

 

 

 

 

Efficiency Ratio

 

Return on equity was 3.64 per cent for Subject in the current financial period, as compared to 7.29 per cent a year ago. The return on equity measures the return earned on the owner's investment.  Generally, the higher this return, the better off the owner.

 

Return on assets stood at 1.23 per cent (FY11: 2.03 per cent). The return on asset measures the overall effectiveness of management in generating profit with its available assets.

 

Total assets turnover ratio logged at 1.35 times in FY12 (FY11: 1.58 times). This ratio measures the company's ability to make productive use of its total assets to generate sales which reflects the efficiency of the management in utilising its resources.

 

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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.69

UK Pound

1

Rs.100.79

Euro

1

Rs.86.30

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

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