|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
CEYITAL JEWELS (PVT) LTD |
|
|
|
|
Registered Office : |
# 4A, Bagatalle Road, Colombo 03 |
|
|
|
|
Country : |
Sri Lanka |
|
|
|
|
Date of Incorporation : |
14.07.1991 |
|
|
|
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Com. Reg. No.: |
PV 3512 |
|
|
|
|
Legal Form : |
Private Limited Liability Company
(In Operation) |
|
|
|
|
Line of Business : |
Manufacture & Export of Gems & Jewellery |
|
|
|
|
No. of Employees : |
Not Available |
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 |
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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) |
|
Sri Lanka |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
Basic information
at a glance
|
a. |
Name of Subject of Inquiry |
: |
CEYITAL JEWELS
(PVT) LTD |
|
b. |
Legal Form & Status |
: |
Private Limited
Liability Company (In Operation) |
|
c. |
Managing Director |
: |
Mohamed Rizwan
Sahabdeen |
|
d. |
Primary Line of Business |
: |
Manufacture
& Export of Gems & Jewellery |
|
e. |
Head office & Place of Business |
|
# 1, Rotunda
Gardens, Colombo 03, Sri Lanka Tel. No: (00 94 11) 239 9601 -2, 239 9603 - 4 Fax No: (00 94
11) 250 5329 E-mail: sifanicare@eureka.lk |
|
f. |
No. of Employees |
: |
Not disclosed |
Registration and Shareholder
Details
|
a. |
Registration No |
: |
N (PVS) 7806 |
||
|
Date of Registration |
: |
14th
July 1991 |
|||
|
b. |
Re-registration No |
|
PV 3512 |
||
|
Date of Re-registration |
|
25th
April 2008 |
|||
|
c. |
Registered Office |
: |
# 4A, Bagatalle
Road, Colombo 03 Sri Lanka |
||
|
d. |
Board of Directors As At 28th January 2014 |
: |
Mohamed Rizwan
Sahabdeen |
Managing Director |
|
|
Sithi Ruchia
Sahabdeen |
Director |
||||
|
Abdul Majeed
Mahamed Sahabdeen |
Director |
||||
|
f. |
Issued Share Capital |
: |
Rs. 149,500.00 |
||
|
No. of Issued Shares |
: |
14,950 |
|||
|
g. |
Nominal Value of Share |
: |
Not applicable
vide Companies Act #7 of 2007 |
||
|
Share Holders As At 28th January
2014 |
: |
Share Holders |
No. of Shares |
||
|
Mohamed Rizwan
Sahabdeen |
1,950 |
||||
|
Sithi Ruchia
Sahabdeen |
50 |
||||
|
Abdul Majeed
Mahamed Sahabdeen |
50 |
||||
|
Sifani Jewellers
(Pvt) Ltd |
8,050 |
||||
|
Majeed Sons Ltd |
3,000 |
||||
|
Yumenics Gem
Jewels |
1,850 |
||||
|
i |
Auditors |
: |
Weerasinghe
& Company |
||
|
j. |
Company Secretaries |
: |
Seccom (Pvt) Ltd |
||
|
k. |
Bankers |
: |
-Not Disclosed- |
||
Most recent available Financial Information
THE
COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES
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
History.
The Subject Company CEYITAL
JEWELS (PVT) LTD is a Private Limited liability Company incorporated on 14th July 1991 under registration number N (PVS) 7806 And re-registered in terms of Companies Act.
# 07 of 2007 on 25th
April 2008 under Registration number PV
3512.
Location.
The Subject Company is located at the # 1, Rotunda Gardens, Colombo 03 Sri Lanka.
Operational
Details.
General
The subject company’s primary line of business is Manufacture & Export of Gems & Jewellery
.
Products
Gems & Jewellery, Diamonds
Country
South Asian
No of Employees
-Not Disclosed-
Directors & Shareholders
Information
01)
|
Name |
Mohamed Rizwan
Sahabdeen |
|
Sex |
Male |
|
Nationality |
Sri Lankan |
|
National ID No. |
602610179 V |
|
Date of Birth |
17th
September, 1960 |
|
Age |
53 Years |
02)
|
Name |
Sithi Ruchia
Sahabdeen |
|
Sex |
Female |
|
Nationality |
Sri Lankan |
|
National ID No. |
417101098 V |
|
Date of Birth |
28th
July 1941 |
|
Age |
72 Years |
03)
|
Name |
Abdul Majeed
Mahamed Sahabdeen |
|
Sex |
Male |
|
Nationality |
Sri Lankan |
|
National ID No. |
261401746 V |
|
Date of Birth |
19th
May 1926 |
|
Age |
88 Years |
Financial Data
The company has declined to provide information on its finances
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
Sri Lanka Gem & Jewellery Association
National Gem & Jewellery Authority
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.
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.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NNA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.