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Report Date : |
28.12.2013 |
IDENTIFICATION DETAILS
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Name : |
THE GOLD GEMS
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Registered Office : |
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Country : |
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Date of Incorporation : |
Not Available |
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Partnership Concern |
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Line of Business : |
trader of all kinds of Sri Lankan
Gems/Precious stones such as Sapphires, Rubies, Emeralds & Jewellery items
(gold and silver) such as Ear Rings, bracelets, necklaces, bangles, chains |
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No. of Employees : |
Approx. 05 |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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 following the end of the 26-year conflict
with the Liberation Tigers of Tamil Eelam (LTTE). The government has been
pursuing large-scale reconstruction and development projects in its efforts to
spur growth in war-torn and disadvantaged areas, develop small and medium
enterprises and increase agricultural productivity. The government's high debt
payments and bloated civil service have contributed to historically high budget
deficits, but fiscal consolidation efforts and strong GDP growth in recent
years have helped bring down the government's fiscal deficit. However, low tax
revenues are a major concern. 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
with the end of the war and an IMF agreement, resulting in two straight years
of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture
slowed due to a drought and weak global demand affected exports and trade. In
early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and
took steps to curb imports. A large trade deficit remains a concern. Strong
remittances from Sri Lankan workers abroad have helped to offset the trade
deficit.
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Source : CIA |
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Managing Partner |
: |
A.M.H.
Hidayathullah |
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Primary Line of Business |
: |
Gem &
Jewellery Merchants, Lapidarists and exporters |
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Office & Place of Business |
: |
#
59, Temple Road, Beruwala. Sri
Lanka. Tel./Fax
No: (00 94 34) 227 6467 Email:
thegoldgems_1@hotmail.com Contact person: Mr. Ahamed |
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No. of Employees |
: |
Approx.
05 |
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Registration No |
: |
- Not Disclosed
- |
||
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Date of
Registration |
: |
- Not Disclosed
- |
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Registered
Address |
: |
#59,
Temple Road, Beruwala. Sri Lanka |
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Partners |
: |
A.M.H. Hidayathullah |
Managing Partner |
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Fazil |
Partner |
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Auditors |
: |
- Not Disclosed
- |
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Bankers |
: |
- Not Disclosed
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History.
the subject concern the gold gems is partnership
concern , in operation. the
client given contact person, mr.
fazil is the partner of the
concern . when contacted the
subject concern one mr. ahamed
who answered the call said that both Mr. Fazil (Mr. Fazil is said to be the son
of Mr. Hidayathullah) & Mr.
Hidayathullah (Managing Partner) have gone out of the country for business
purpose and he declined to provide concern
details regarding the concern
registration and other operational details in their absence and without
the approval of the partners. Mr. Ahamed however said that their shop at the Client
Further, we were
informed by Mr. Ahamed that the correct
name of the subject concern is “THE GOLD GEMS” (Please note the prefix “THE”)
The
Proprietorship/ Partnership companies are being registered at the Provincial
Registrar of Companies and when the owner does not provide the registration
details it is not possible to extract such details from the Registrar’s office.
Location.
The office and the
place of business are located at the client given Head Office address # 59, Temple Road, Beruwala, a town on the Colombo-Galle
highway 2, approx. 55 kilo meters south of Colombo city. This is a thickly
populated, business cum residential sea coast town where gem merchants are also
in operation.
The client given concern address, #66/1, Galle Road, Colombo is found
closed when our investigators visited the premises and this factor was
confirmed by the concern spokesman Mr.
Ahamed.
Operational
Details:
General
The main line of business of the subject concern is trading gems and jewellery. Subject is
said to be a member of the Sri Lanka Gem
& Jewellery Traders Association.
Products/Services
- All kinds of Sri Lankan Gems/Precious
stones such as Sapphires, Rubies, Emeralds.
- All kinds of Jewellery items (gold and
silver) such as Ear Rings, bracelets, necklaces, bangles, chains .
Exporting
Countries
China, Thailand, Middle East
No. of Employees:
Approx.05
·
Financial Data
The subject concern
declined to provide information on its finances without knowing the details of the end user of this enquiry.
Based on the corporate laws of Sri Lanka, legal entities which are Private Concern 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 Traders’
Association
Sri Lanka Gem & Jewellery Authority
·
Credit
Recommendations
Since no financial information has been forthcoming from the concern ,
it is not possible to comment on the merits or otherwise of the concern .
No computerised data bases exist to make
checks whether the partners or the concern
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
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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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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 –
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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.
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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.62.06 |
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UK Pound |
1 |
Rs.102.03 |
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Euro |
1 |
Rs.85.27 |
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 |
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<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.