MIRA INFORM REPORT

 

 

Report Date :

03.09.2013

 

IDENTIFICATION DETAILS

 

Name :

FINE DIAMOND PTE LTD

 

 

Registered Office :

101, Cecil Street, 25-11, Tong Eng Building, 069533

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.06.1981

 

 

Com. Reg. No.:

198102429-R

 

 

Legal Form :

Exempt Private Company

 

 

Line of Business :

trader of jewellery

 

 

No. of Employees :

06 [2013]

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

 

 

 


 

* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

 

 

N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

198102429-R

COMPANY NAME

:

FINE DIAMOND PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

01/06/1981

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

BUSINESS ADDRESS

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

TEL.NO.

:

65-62257444

FAX.NO.

:

65-62256667

CONTACT PERSON

:

BAKUL RAMNIKLAL PARIKH ( MANAGING DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF JEWELLERY

 

 

 

ISSUED AND PAID UP CAPITAL

:

2,500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 2,500,000.00

 

 

 

SALES

:

SGD 51,075,396 [2011]

NET WORTH

:

SGD 3,689,262 [2011]

 

 

 

STAFF STRENGTH

:

6 [2013]

BANKER (S)

:

STANDARD CHARTERED BANK

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The SC is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the SC has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the SC is able to meet all its obligations as and when they fall due. The SC is not required to have their accounts audited. However, the SC will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

 

The SC is principally engaged in the (as a / as an) trading of jewellery.

 

The major shareholder(s) of the SC are shown as follows :


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. BAKUL RAMNIKLAL PARIKH +

48, LAKESHORE VIEW, 098154, SINGAPORE.

S2223347E

2,460,000.00

98.40

WASTI BAKUL PARIKH +

48, LAKESHORE VIEW, 098154, SINGAPORE.

S2553487E

40,000.00

1.60

 

 

 

---------------

------

 

 

 

2,500,000.00

100.00

 

 

 

============

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

KARAN PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S8870026J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/01/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

WASTI BAKUL PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S2553487E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

17/03/1995

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. BAKUL RAMNIKLAL PARIKH

Address

:

48, LAKESHORE VIEW, 098154, SINGAPORE.

IC / PP No

:

S2223347E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/06/1981

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

BAKUL RAMNIKLAL PARIKH

 

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

MGI MENNON & ASSOCIATES

Auditor' Address

:

N/A

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

THIYAGARAJAN MURUGESAN

 

IC / PP No

:

S7064651Z

 

 

 

 

 

Address

:

644, ANG MO KIO AVENUE 4, 02-850, 098154, SINGAPORE.

 

 

 

 

 

 

 

 

 

                                       

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

STANDARD CHARTERED BANK

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200700476

17/01/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200700477

17/01/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702901

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702902

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702903

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702904

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702906

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

C200702907

17/04/2007

N/A

STANDARD CHARTERED BANK

N/A

Unsatisfied

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank against the SC whether the subject has been involved in any litigation. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

 

 

 


The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

 

 

 

 

 

Overseas

:

YES

 

 

 

 

 

Credit Term

:

AS AGREED

 

 

 

 

 

 

Payment Mode

:

CASH
CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Goods Traded

:

JEWELLERY

 

 

 

 

 

Total Number of Employees:

YEAR

2013

 


GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

6

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of jewellery. 
The SC refused to disclose any information on its business operations. 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

65 62256667

Current Telephone Number

:

65-62257444

Match

:

NO

 

 

 

Address Provided by Client

:

25-11 TONG ENGG BUILDING 101 CECIL STREET SINGAPORE 069533

Current Address

:

101, CECIL STREET, 25-11, TONG ENG BUILDING, 069533, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations

We contacted a staff from the SC and she provided some information on the SC. 

The telephone number provided is the SC's fax line.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

10.34%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

108.25%

]

 

Return on Shareholder Funds

:

Unfavourable

[

<8.64%>

]

 

Return on Net Assets

:

Unfavourable

[

0.25%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition and the SC could be gaining the market share progressively.The SC incurred losses during the year due to the inefficient control of its operating costs. The SC's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Acceptable

[

56 Days

]

 

Debtor Ratio

:

Unfavourable

[

252 Days

]

 

Creditors Ratio

:

Unfavourable

[

191 Days

]

 

 

 

 

 

 

 

 

The SC kept adequate stocks to meet its normal business transactions without incurring excessive storage costs. The SC's debtors ratio was high. The SC should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the SC taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the SC and its suppliers and the SC may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.22 Times

]

 

Current Ratio

:

Unfavourable

[

1.48 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Unfavourable

[

0.34 Times

]

 

Gearing Ratio

:

Favourable

[

0.54 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was low. If its profits fall or when interest rate rises, it may not be able to meet all its interest payment. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the SC's turnover increased its profits however showed a reverse trend. The losses could be due to the management's failure to maintain its competitiveness in the market. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. If there is a fall in the SC's profit or any increase in interest rate, the SC may not be able to generate sufficient cash-flow to service its interest. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the SC : LIMITED

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

 

 

 

 

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

<0.8>

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

 

 

 

 

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

 

 

 

 

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

<2.2>

4.3

12.8

8.5

<1.3>

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

<32.5>

25.6

9.4

 

 

 

 

 

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

<10.78>

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

<0.8>

11.4

2.8

<5>

<2.2>

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

<15.9>

<11.5>

<25.3>

<0.7>

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

<7.7>

103.7

<26.3>

<38.2>

35.2

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

<0.32>

3.25

<0.48>

4.25

3.64

Fish Supply & Wholesale

<6.31>

<1.93>

<10.5>

12.10

<0.5>

 

 

 

 

 

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

 

 

 

 

 

Construction

45.90

<36.9>

14.20

20.50

28.70

Real Estate

<11.2>

1.4

21.3

25.4

31.9

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

<1.3>

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

<5.9>

<16.4>

<0.4>

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

<0.9>

<1.4>

0.30

 

 

 

 

 

 

* Based on Index of Industrial Production (2011 = 100)

 

 

 

 

 

(Source : Department of Statistics)

 

 

 

 

 


INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

 

 

 

The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.

 

The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.

 

In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%. 

 

For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.

 

 

 

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1981, the SC is a Exempt Private company, focusing on trading of jewellery. With over 2 decades of experience in the business, the SC has fairly rich experiences in the business and has achieved a certain market share. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future. 

Over the years, the SC has penetrated into both the local and overseas market. The SC has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the SC to further enhance its business in the near term. Being a small company, the SC's business operation is supported by 6 employees. Overall, we regard that the SC's management capability is average. 

Despite the higher turnover, the SC suffered pre-tax losses which reflected a highly competitive business environment. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The SC is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the SC is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at SGD 3,689,262, the SC should be able to maintain its business in the near terms. 

Having a strong assets backing, the SC possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the SC has a good control over its resources. 

The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the SC normally.

 



 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

FINE DIAMOND PTE LTD

 

Financial Year End

2011-03-31

2010-03-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

 

 

 

TURNOVER

51,075,396

46,287,135

Other Income

663,321

1,579,612

 

----------------

----------------

Total Turnover

51,738,717

47,866,747

Costs of Goods Sold

<49,762,986>

<45,007,920>

 

----------------

----------------

Gross Profit

1,975,731

2,858,827

 

----------------

----------------

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

<99,249>

1,203,689

 

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

<99,249>

1,203,689

Taxation

<219,623>

<36,000>

 

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

<318,872>

1,167,689

 

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

1,508,134

340,445

 

----------------

----------------

As restated

1,508,134

340,445

 

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

1,189,262

1,508,134

 

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,189,262

1,508,134

 

=============

=============

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

5,775

4,902

Term loan / Borrowing

58,433

44,288

Others

85,562

88,350

 

----------------

----------------

 

149,770

137,540

 

 

 

BALANCE SHEET

 

 

FINE DIAMOND PTE LTD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

266,113

276,904

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

Investment properties

5,731,898

5,861,494

Investments

5,000

5,000

Others

10,461

5,427

 

----------------

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

5,747,359

5,871,921

 

 

 

 

----------------

----------------

TOTAL LONG TERM ASSETS

6,013,472

6,148,825

 

 

 

CURRENT ASSETS

 

 

Stocks

7,782,506

11,106,522

Trade debtors

35,313,624

40,399,195

Other debtors, deposits & prepayments

95,413

38,423

Cash & bank balances

932,814

1,673,855

 

----------------

----------------

TOTAL CURRENT ASSETS

44,124,357

53,217,995

 

----------------

----------------

TOTAL ASSET

50,137,829

59,366,820

 

=============

=============

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

25,999,060

30,995,200

Other creditors & accruals

1,517,465

1,611,213

Short term borrowings/Term loans

2,000,000

4,400,000

Provision for taxation

214,362

43,766

Other liabilities

136,559

132,528

 

----------------

----------------

TOTAL CURRENT LIABILITIES

29,867,446

37,182,707

 

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

14,256,911

16,035,288

 

----------------

----------------

TOTAL NET ASSETS

20,270,383

22,184,113

 

=============

=============

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

2,500,000

2,500,000

 

----------------

----------------

TOTAL SHARE CAPITAL

2,500,000

2,500,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

1,189,262

1,508,134

 

----------------

----------------

TOTAL RESERVES

1,189,262

1,508,134

 

 

 

 

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

3,689,262

4,008,134

 

 

 

LONG TERM LIABILITIES

 

 

Others

16,581,121

18,175,979

 

----------------

----------------

TOTAL LONG TERM LIABILITIES

16,581,121

18,175,979

 

----------------

----------------

 

20,270,383

22,184,113

 

=============

=============

 

 

 

FINANCIAL RATIO

 

 

FINE DIAMOND PTE LTD

 

TYPES OF FUNDS

 

 

Cash

932,814

1,673,855

Net Liquid Funds

932,814

1,673,855

Net Liquid Assets

6,474,405

4,928,766

Net Current Assets/(Liabilities)

14,256,911

16,035,288

Net Tangible Assets

20,270,383

22,184,113

Net Monetary Assets

<10,106,716>

<13,247,213>

BALANCE SHEET ITEMS

 

 

Total Borrowings

2,000,000

4,400,000

Total Liabilities

46,448,567

55,358,686

Total Assets

50,137,829

59,366,820

Net Assets

20,270,383

22,184,113

Net Assets Backing

3,689,262

4,008,134

Shareholders' Funds

3,689,262

4,008,134

Total Share Capital

2,500,000

2,500,000

Total Reserves

1,189,262

1,508,134

LIQUIDITY (Times)

 

 

Cash Ratio

0.03

0.05

Liquid Ratio

1.22

1.13

Current Ratio

1.48

1.43

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

56

88

Debtors Ratio

252

319

Creditors Ratio

191

251

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.54

1.10

Liabilities Ratio

12.59

13.81

Times Interest Earned Ratio

0.34

9.75

Assets Backing Ratio

8.11

8.87

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

<0.19>

2.60

Net Profit Margin

<0.62>

2.52

Return On Net Assets

0.25

6.05

Return On Capital Employed

0.25

6.05

Return On Shareholders' Funds/Equity

<8.64>

29.13

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0





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.65.86

UK Pound

1

Rs.102.52

Euro

1

Rs.87.06

 

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.