MIRA INFORM REPORT

 

 

Report Date :

17.07.2014

 

IDENTIFICATION DETAILS

 

Name :

4'C DIAMONDS PTE LTD

 

 

Registered Office :

17, Phillip Street, 05-01, Grand Building, 048695

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.10.1997

 

 

Com. Reg. No.:

199707403-N

 

 

Legal Form :

Exempt Private Company

 

 

Line of Business :

Engaged in Trading of diamonds 

 

(We tried to confirm / obtain the detailed activity but the same is not available from any sources.)

 

 

No. of Employees

Not Available

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, 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. 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.

:

199707403-N

COMPANY NAME

:

4'C DIAMONDS PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/10/1997

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

17, PHILLIP STREET, 05-01, GRAND BUILDING, 048695, SINGAPORE.

BUSINESS ADDRESS

:

17, PHILLIP STREET, 05-01, GRAND BUILDING, 048695, SINGAPORE.

TEL.NO.

:

65-65333377

FAX.NO.

:

65-65333227

CONTACT PERSON

:

SHAH PARAG SHASHIKANT ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF DIAMONDS

 

 

 

ISSUED AND PAID UP CAPITAL

:

1,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,000,000.00 

 

 

 

SALES

:

SGD 5,311,941 [2012]

NET WORTH

:

SGD 1,995,077 [2012]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

FAIR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject 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 Subject 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 Subject has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the Subject is able to meet all its obligations as and when they fall due. The Subject is not required to have their accounts audited. However, the Subject 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 Subject is principally engaged in the (as a / as an) trading of diamonds.

 

Share Capital History

Date

Issue & Paid Up Capital

16/07/2014

SGD 1,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

SHAH PARAG SHASHIKANT +

102, HAIG ROAD, 10-07, DUNMAN VIEW, 438798, SINGAPORE.

S7582329J

500,000.00

50.00

SHETH AMISHKUMAR RAMNIKLAL +

FLAT A, 8/F, HANG WAN BUILDING, 42-44, GRANVILLE ROAD, TSIMSHATSUI, KOWLOON, HONG KONG.

F3812291

500,000.00

50.00

 

 

 

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

------

 

 

 

1,000,000.00

100.00

 

 

 

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

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

SHAH PARAG SHASHIKANT

Address

:

102, HAIG ROAD, 10-07, DUNMAN VIEW, 438798, SINGAPORE.

IC / PP No

:

S7582329J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/1997

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

SHETH AMISHKUMAR RAMNIKLAL

Address

:

FLAT A, 8/F, HANG WAN BUILDING, 42-44, GRANVILLE ROAD, TSIMSHATSUI, KOWLOON, HONG KONG.

IC / PP No

:

F3812291

 

 

 

 

 

 

 

 

 

Nationality

:

INDIAN

Date of Appointment

:

03/04/1998

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

SHAH PARAG SHASHIKANT

 

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

PRUDENTIAL PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

SHAH SWATI PARAG

 

IC / PP No

:

S7780433A

 

 

 

 

 

Address

:

102, HAIG ROAD, 10-07, DUNMAN VIEW, 438798, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201202732

12/03/2012

N/A

MALAYAN BANKING BERHAD

-

Unsatisfied

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject 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

:

N/A

Overseas

:

N/A

 

 

 


The staff from the registered office refused to disclose the Subject's suppliers. 

The Subject 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

[

 

]

 

Fair 91-120 Days

[

X

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The staff from the registered office refused to disclose the Subject's clientele. 

 

OPERATIONS

 

Goods Traded

:

DIAMONDS

 

 

 

 

 

Branch

:

NO

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of diamonds. 

The staff from the registered office refused to disclose the Subject's operation. 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65333377

Match

:

N/A

 

 

 

Address Provided by Client

:

180, PAYA LEBAR ROAD #06-03 YI GUANG FACTORY BUILDING SINGAPORE-409032

Current Address

:

17, PHILLIP STREET, 05-01, GRAND BUILDING, 048695, SINGAPORE.

Match

:

NO

 

Other Investigations

we contacted one of the staff from the Subject's registered office but she only provided limited information on the Subject.

She also refused to disclose the number of employees.

She is not aware of the address provided.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

26.67%

]

 

Profit/(Loss) Before Tax

:

Decreased

[

10.55%

]

 

Return on Shareholder Funds

:

Unfavourable

[

3.81%

]

 

Return on Net Assets

:

Unfavourable

[

3.62%

]

 

 

 

 

 

 

 

 

The lower turnover could be due to the intense market competition.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

80 Days

]

 

Debtor Ratio

:

Unfavourable

[

174 Days

]

 

Creditors Ratio

:

Unfavourable

[

106 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.18 Times

]

 

Current Ratio

:

Unfavourable

[

1.66 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

9.00 Times

]

 

Gearing Ratio

:

Favourable

[

0.31 Times

]

 

 

 

 

 

 

 

 

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's performance deteriorated over the years with lower turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject 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 Subject : LIMITED

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

 

 

 

 

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

 

 

 

 

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

 

 

 

 

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

 

 

 

 

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

 

 

 

 

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

 

 

 

 

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

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 1997, the Subject is an Exempt Private company, focusing on trading of diamonds. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future. 

Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however 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 Subject 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 1,995,077, the Subject should be able to maintain its business in the near terms. 

The Subject's overall payment habit is fair and this clearly implied a weak credit control of the Subject. 

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

 

 

PROFIT AND LOSS ACCOUNT

 

 

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

4'C DIAMONDS PTE LTD

 

Financial Year End

2012-12-31

2011-12-31

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

5,311,941

7,244,061

Other Income

12,607

7,909

 

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

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

Total Turnover

5,324,548

7,251,970

Costs of Goods Sold

(4,922,014)

(6,824,641)

 

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

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

Gross Profit

402,534

427,329

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

83,811

93,692

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

83,811

93,692

Taxation

(7,699)

(9,390)

 

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

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

PROFIT/(LOSS) AFTER TAXATION

76,112

84,302

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

918,965

834,663

 

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

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

As restated

918,965

834,663

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

995,077

918,965

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

995,077

918,965

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

-

5,847

Term loan / Borrowing

10,480

25,394

 

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

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

 

10,480

31,241

 

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

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

 

 

 

BALANCE SHEET

 

 

4'C DIAMONDS PTE LTD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

985,815

1,008,343

 

 

 

Others

15,493

15,493

 

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

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

TOTAL INTANGIBLE ASSETS

15,493

15,493

 

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

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

TOTAL LONG TERM ASSETS

1,001,308

1,023,836

 

 

 

Stocks

1,166,109

1,218,502

Trade debtors

2,527,614

3,156,776

Other debtors, deposits & prepayments

3,580

4,932

Short term deposits

-

50,640

Amount due from related companies

203,104

224,219

Cash & bank balances

139,986

138,020

Others

-

29,511

 

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

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

TOTAL CURRENT ASSETS

4,040,393

4,822,600

 

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

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

TOTAL ASSET

5,041,701

5,846,436

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

1,432,768

2,294,976

Other creditors & accruals

61,574

4,912

Short term borrowings/Term loans

19,082

17,901

Amounts owing to related companies

479,051

495,748

Amounts owing to director

430,893

469,094

Provision for taxation

7,709

8,065

Other liabilities

8,936

-

 

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

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

TOTAL CURRENT LIABILITIES

2,440,013

3,290,696

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,600,380

1,531,904

 

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

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

TOTAL NET ASSETS

2,601,688

2,555,740

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

1,000,000

 

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

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

TOTAL SHARE CAPITAL

1,000,000

1,000,000

 

 

 

Retained profit/(loss) carried forward

995,077

918,965

 

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

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

TOTAL RESERVES

995,077

918,965

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,995,077

1,918,965

 

 

 

Long term loans

606,611

636,775

 

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

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

TOTAL LONG TERM LIABILITIES

606,611

636,775

 

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

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

 

2,601,688

2,555,740

 

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

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

 

 

 

 

 

 

FINANCIAL RATIO

 

 

4'C DIAMONDS PTE LTD

 

TYPES OF FUNDS

 

 

Cash

139,986

188,660

Net Liquid Funds

139,986

188,660

Net Liquid Assets

434,271

313,402

Net Current Assets/(Liabilities)

1,600,380

1,531,904

Net Tangible Assets

2,586,195

2,540,247

Net Monetary Assets

(172,340)

(323,373)

BALANCE SHEET ITEMS

 

 

Total Borrowings

625,693

654,676

Total Liabilities

3,046,624

3,927,471

Total Assets

5,041,701

5,846,436

Net Assets

2,601,688

2,555,740

Net Assets Backing

1,995,077

1,918,965

Shareholders' Funds

1,995,077

1,918,965

Total Share Capital

1,000,000

1,000,000

Total Reserves

995,077

918,965

LIQUIDITY (Times)

 

 

Cash Ratio

0.06

0.06

Liquid Ratio

1.18

1.10

Current Ratio

1.66

1.47

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

80

61

Debtors Ratio

174

159

Creditors Ratio

106

123

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.31

0.34

Liabilities Ratio

1.53

2.05

Times Interest Earned Ratio

9.00

4.00

Assets Backing Ratio

1.00

1.00

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

1.58

1.29

Net Profit Margin

1.43

1.16

Return On Net Assets

3.62

4.89

Return On Capital Employed

3.60

4.86

Return On Shareholders' Funds/Equity

3.81

4.39

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.60.19

UK Pound

1

Rs.103.14

Euro

1

Rs.81.66

                

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.