MIRA INFORM REPORT

Report Date :

12.06.2014

IDENTIFICATION DETAILS

Name :	SIFANI JEWELLERS LTD

Registered Office :	DF11 Male International Airport Airport Main Rd, Hulhule 22000

Country :	Maldives

Date of Incorporation :	10.12.2012

Legal Form :	Private Company with Limited Liability

Line of Business :	Importer of Giftware & Jewellery

No. of Employees	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Branch Office of Overseas Company
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 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Maldives

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

MALDIVES ECONOMIC OVERVIEW

Tourism, Maldives' largest economic activity, accounts for nearly 30% of GDP and more than 60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Lower than expected tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a $79.3 million IMF Stand-By agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit, and the government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax (GST) on tourism introduced in January 2011, on general goods and services in October 2011, and a new Business Profit Tax introduced in July 2011 have provided a boost to revenue. In recent years, gross foreign reserves have hovered around $300 million, sufficient to finance about two to three months of imports. Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are other near-term challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level

Source : CIA

Company name and address

Company Details

Organization Name	:	SIFANI JEWELLERS LTD
Address	:	DF11 Male International Airport Airport Main Rd, Hulhule 22000
Country	:	Maldives
Phone (S)	:	[+960]-3322951 Status: Telephone number working but no answer
Primary Business Activity	:	Importer
Key Industry	:	Giftware & Jewellery

Operating Status:

Investigation can not confirm operational status of Subject Business Entity.

Investigations confirm the legal registration of the SIFANI JEWELLERS LTD, but as a result of not being able to identify:

any operational offices

any point of contact

nor speak to any representative of the firm

Thus it has not been possible to conduct the normal due diligence process and assessment of credit worthiness.

Key Facts

Registered Legal Address

DF11 Male International Airport Airport Main Rd, Hulhule 22000

Operational Address

DF11 Male International Airport Airport Main Rd, Hulhule 22000

Issuing Authority

Ministry of Economic Development - National

License Number

Not Available⁽¹⁾

License Status

License exists - But no trace of any Operational office.

Legal Form - Category

Branch Office of Overseas Company

Legal Form

Not Applicable

Legal Form - Abbreviation

Not Applicable

Operational Status of Business

It was NOT possible to confirm the operational status.⁽²⁾

Date of Registration

10 Dec, 2012

Capital

n/a⁽³⁾

Note

⁽¹⁾ Although Ministry of Economic Development is the official Issuing Authority for Business Licenses in Maldives, public access to statutory is limited and hence the unavailability of the License Number.

⁽²⁾ Due to the lack of SBE's operational status, and circumstances involved, the information as listed below is only historical / on-file data and as such it has not been possible to verify against any current sources.

⁽³⁾ Not applicable.
According to the corporate statutory laws for this type of Legal Form - Category(Branch Office of Overseas Company) in Maldives, there is no requirement for Authorized Capital.

Report Details

Country	:	Maldives
Business Entity Name	:	SIFANI JEWELLERS LTD
Primary Business Activity	:	Importer
Primary Industry	:	Giftware & Jewellery
Office Contact Details
Operating Address	:	DF11 Male International Airport Airport Main Rd, Hulhule 22000
Tel	:	[+960]-3322951 Status: Telephone number working but no answer
	:	[+960]-3318462 Status: Telephone number working but no answer

DIRECTORS/MANAGEMENT

	COMPANY DIRECTORS
	Not applicable - According to the corporate statutory laws for this type of Legal Form - Category (Branch Office of Overseas Company) in Maldives, there is no requirement for Directors.

NEGATIVE INFORMATION

	REPUTATION
	Due to the lack of any third party references and the relatively small size of the SIFANI JEWELLERS LTD, it was not possible to establish any point of reference within the respective industry sector.

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT

No Record Found

LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

SHAREHOLDERS

Total number of shareholders	:	1
Total number of shares	:	n/a

Currency

MVR - Maldives Rufiyaa

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (MVR)	%
1	SIFANI JEWELLERS LTD	Sri Lanka	n/a	n/a	100.00
Total			n/a	n/a	100.00

PAYMENT INFORMATION

GROUP STRUCTURE & AFFILIATED COMPANIES

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	SIFANI JEWELLERS LTD
Global Identifier	:	P0241423
Legal Form Category	:	Private Company with Limited Liability
Country	:	Sri Lanka
Operational Address	:	43/3 Bullers Rd Colombo 4 Colombo 00400
Primary Business Activity	:	Manufacturer

FINANCIAL INFORMATION

	FINANCIAL STATEMENT - DETAILED
	Based on the corporate laws of Maldives, legal entities which are Branch Office of Overseas Company are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity.

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 MVR
Maldives Rufiyaa

0.065147 USD
United States Dollars

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Gems	Importing
Jewelries	Importing

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Jewelry Stores	5944	Service
Jewelry of materials other than solid gold, platinum & silver	3961	Importing
Jewelry, of precious metal	3911	Importing
Jewelry/Watches/Precious Mtl	5094	Importing

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Articles of jewelry & parts, of precious metal or clad	7113	Importing
Articles of natural or cut pearls, prec/semprc stones	7116	Importing
Jewelry of precious or semiprecious stones	7116201000	Importing


	CORE BUSINESS DESCRIPTION

	Core Business
	The primary business focus of SIFANI JEWELLERS LTD is Importing - Finished products. Key product include : Jewelries An integral part of the core business includes: Distribution

	Supplementary Business
	In addition to the core business, SIFANI JEWELLERS LTD also is engaged in the following areas of business: Trading Trading - Finished products

NOTES & COMMENTS

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 8^th Century B.C. India, in fact, remained undisputed leader till 18^th 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 30^th 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.59.33
UK Pound	1	Rs.99.42
Euro	1	Rs.80.32

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.