MIRA INFORM REPORT

 

 

Report Date :

26.08.2013

 

IDENTIFICATION DETAILS

 

Name :

BLUE DIAMOND JEWELLERS LIMITED

 

 

Registered Office :

West Street #9, Port Antonio, Port Land,

 

 

Country :

Jamaica

 

 

Year of Incorporation :

2003

 

 

Com. Reg. No.:

21192

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Jewellry store.

 

 

No. of Employees :

5

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Jamaica

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAMAICA - ECONOMIC OVERVIEW

 

The Jamaican economy is heavily dependent on services, which accounted for more than 60% of GDP at the end of 2011. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for nearly 15% of GDP and exports of bauxite and alumina make up roughly 5%. The bauxite/alumina sector was most affected by the global downturn while the tourism industry was resilient. Tourism revenues account for roughly 5% of GDP in 2011. Jamaica's economy faces many challenges to growth: high crime and corruption, large-scale unemployment and underemployment, and a debt-to-GDP ratio of nearly 130%. Jamaica's onerous public debt burden is the result of government bailouts to ailing sectors of the economy, most notably to the financial sector. In early 2010, the Jamaican Government created the Jamaica Debt Exchange in order to retire high-priced domestic bonds and significantly reduce annual debt servicing. Despite the improvement, debt servicing costs still hinder the government''s ability to spend on infrastructure and social programs, particularly as job losses rise in a shrinking economy. Jamaica was hard hit by the effects of the global economic crisis, experiencing economic contractions from 2008-10 and growth remains low. The SIMPSON-MILLER administration faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments, while simultaneously attacking a serious crime problem that is hampering economic growth. High unemployment exacerbates the crime problem, including gang violence that is fueled by the drug trade. As of late 2012, the SIMPSON-MILLER government was working to negotiate a new IMF Stand-by agreement to gain access to additional funds.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

 

IDENTIFICATION

Ordered as:

BLUE DIAMOND JEWELLERS

Address in the order:

#9 West Street, Port Antonio, Port Land, Jamaica, West Indies

Legal Name:

BLUE DIAMOND JEWELLERS LIMITED

Legal Address

West Street #9, Port Antonio, Port Land, Jamaica

Postal Town

Port Land

Country

JM

Operative Address

West Street #9, Port Antonio, Port Land, Jamaica

Telephone:

+1 876 464-2008 / 715-6897

Registration Number :

21192

Fax:

N.A.

Legal Form:

Limited Company

Email:

bluediamondj@yahoo.com

Registered in:

JM

Website:

N.A.

Date Created:

2003

Manager:

Mr. Jeetendra Lalchandani - Owner

Date Incorporated:

N.A.

Staff:

5

Stock:

N.A.

 

 

Value:

N.A.

Activity:

Jewellry store.

 

DIRECTORS/MANAGEMENT

 

Management:

 

Mr. Jeetendra Lalchandani - Owner

Mr. Sam - Manager

 

NEGATIVE INFORMATION

 

Legal Fillings

 The sources consulted record no detrimental legal or labor court information.

 

SHARE & SHARE CAPITAL INFORMATION

 

Shareholders - Manager - Related Companies

Listed at the stock exchange:

 

NO

 

PAYMENT INFORMATION

 

PAYMENTS

 

Unknown

 

GROUP STRUCTURE & AFFILIATED COMPANIES

 

Shareholders Parent Company(ies):

 

This is a private company and Mr. Jeetendra Lalchandani is the owner.

 

FINANCIAL INFORMATION

 

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

We have contacted Mr. Sam - Manager who refused to provide us any financial data on grounds of confidentiality.

Comments on the financial data: As of today, the company´s 2012 numerical financial figures were neither released nor revealed to our sources.

 

FOREIGN EXCHANGE RATES

 

Na

 

ADDITIONAL INFORMATION

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal
Economic Risk: Nil

Currency: USD
Branch Situation: Stable

 

 

BANKS

Name of the Bank

Scotia Bank

Comments

This information was confirmed by the company.

BUSINESS

HISTORY

 

Blue Diamond Jewellers Limited was founded in 2003.

PRINCIPAL ACTIVITY

 

The company operates as a jewellry and appliances store.

Sales are:

 

Retail

Clients:

 

The company serves to the general public.

Suppliers:

 

The person contacted refused to provide this information on grounds of confidentiality.

Operations area:

 

Local

The company imports from China

The company does not export

The subject employs 5 employee(s)

Comments on staff:

 

The company provides this information.

LOCATION

Headquarters

 

West Street #9, Port Antonio, Port Land, Jamaica

Branches:

 

The company does not have branches.

 

 

SUMMARY


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

N.A.

Public

NO

 

Indebtedness

N.A.

Payments

UNKNOWN

 

Cash

NORMAL

 

 

 

 

 

NOTES & COMMENTS

 

 

 Final Opinion

 

Blue Diamond Jewellers Limited was founded in 2003 and it is based and incorporated in Jamaica.

 

It is a small size, privately-held company, which operates as a jewelry and appliances store.

 

The company works locally and it imports its products from China.

 

The sources consulted record no detrimental legal or labor court information.

 

 

APPENDIX

Person Interviewed

 

Mr. Sam

Position

 

Manager

Comments

 

The person contacted provided us with the following information:

1.Date the company was created.

2.Number of employees.

3.Management staff and shareholders.

4.Imports and exports.

5.Headquarters and branches.

6.Bank.

7.E-mail.

8.The company does not have website.

9.Principal activity.

 

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 :

PRL

 

 

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.