MIRA INFORM REPORT

 

 

Report Date :

27.08.2014 

 

IDENTIFICATION DETAILS

 

Name :

RENELLE (PVT) LTD

 

 

Registered Office :

# 14, Carwil Place, Colombo 03

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

15.08.2000

 

 

Com. Reg. No.:

PV 4174

 

 

Legal Form :

Private Limited Liability Company 

 

 

Line of Business :

Manufacturing & Exporters of Gem & Jewellery

 

 

No. of Employees

30

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. 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. 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, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.

 

Source : CIA

 

 

 

Company name and address

 

 

a.

Name of Subject of Inquiry

:

 

RENELLE (PVT) LTD

 

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

Managing Director

:

Rainier Schuman Nanayakkara

d.

Primary Line of Business

:

Manufacturing & Exporters of Gem & Jewellery

e.

Place of Business

&

Factory

 

 

# 14, Carwil Place,

Colombo 03,

Sri Lanka.

 

Tel. No: (00 94 11) 257 5756 / 257 3977

Fax No: (00 94 11) 230 1938 / 257 3098

 

E-Mail: chanka@renelle.lk

              info@renelle.lk

 

g.

No. of Employees

:

30

                       

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

N(PVS) 26753

Date of Registration

:

15th August 2000

b.

Re-registration No

:

PV 4174

Date of Re-registration

:

10th June 2008

c.

Registered Office

:

# 14, Carlwil Place, Colombo 03

d.

Board of Directors

As At

14th October 2013

:

Rainier Schuman Nanayakkara

Managing Director

A. Harsha Chanaka Ellawala

Director

Edmund Priyan Wijetunge

Director

e.

Issued Share Capital

:

Rs.  15,200.00

Number of Shares

:

15,002

f.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007

h.

 

Share Holders

As At

14th October 2013

:

Share Holders

No. of

Shares

Ellawala Exports (Pvt) Ltd

15,001

Rainier Schuman Nanayakkara

01

i.

Auditors

:

Canagey Wijeyeratne & Company

j.

Company Secretaries

:

Canagey Secretarial Services (Pvt) Ltd

k.

Bankers

:

Commercial Bank

j.

Sister Company

:

Ellawala Export Private Limited

 

 

Director’s Details

 

01)

Name

A. Harsha Chanaka Ellawala

ID Number

630590361 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th February 1963

Age

51 Years

 

 

 

02)

Name

Rainier Schuman Nanayakkara

ID Number

572970485 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd October 1957

Age

56 Years

 

 

03)

Name

Edmund Priyan Wijetunge

ID Number

572670112 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd September 1957

Age

56 Years

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

    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 RENELLE (PVT) LTD is a Private Limited Liability Company incorporated on 15th August 2000 under registration number N (PVS) 26753 and then the company was re-registered on 10th June 2008 under registration number PV 4174.

 

Location.

The Subject Company is located at client # 14, Carlwil Place, Colombo 03

 

Operational Details.

 

General

  The subject company primary line of business is Manufacturing & Exporters of Gem & Jewellery

 

Products

Diamond, Gem &Jewellery

              

Employees

30

 

Financial Data

 

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

 

National Gem & Jewellery Authority

Sri Lanka Gem & Jewellery Association

 

 

Credit Recommendations

 

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

 

No computerised data bases exist to make checks whether the partners or the company 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.

 

 

INFORMATION PARTED BY

 

NAME

Mr. Chanuka

DESIGNATION

Marketing

CONTACT

00094112575756

 

 

 

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.60.50

UK Pound

1

Rs.100.33

Euro

1

Rs.79.91

 

INFORMATION DETAILS

 

Information Gathered By :

GYR

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

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.