MIRA INFORM REPORT

 

 

Report Date :

11.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ARTHESDAM JEWELLERY PTE LTD

 

 

Registered Office :

95, Serangoon Road, 218000

 

 

Country :

Singapore

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

11.08.2000

 

 

Com. Reg. No.:

200007028-E

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of jewellery.

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

200007028-E

COMPANY NAME

:

ARTHESDAM JEWELLERY PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

11/08/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

95, SERANGOON ROAD, 218000, SINGAPORE.

BUSINESS ADDRESS

:

95 SERANGOON ROAD, 218000, SINGAPORE.

TEL.NO.

:

65-62991729

FAX.NO.

:

65-62994879

CONTACT PERSON

:

LAM LOY CHONG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF JEWELLERY

ISSUED AND PAID UP CAPITAL

:

1,800,000.00 ORDINARY SHARE, OF A VALUE OF SGD 1,800,000.00

SALES

:

SGD 83,310,938 [2013]

NET WORTH

:

SGD 19,645,520 [2013]

STAFF STRENGTH

:

N/A

BANKER (S)

:

UNITED OVERSEAS BANK LIMITED

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. 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, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

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


 

Share Capital History

Date

Issue & Paid Up Capital

03/10/2014

SGD 1,800,000.00


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


Name

Address

IC/PP/Loc No

Shareholding

(%)

LAM LOY CHONG +

95, SERONGAN ROAD, 218000, SINGAPORE.

S0190293H

454,650.00

25.26

CHONG MEI SANG +

1, HUME AVENUE, 02-08, 598718, SINGAPORE.

S2636024B

141,700.00

7.87

LAM SEN CHONG ALAN +

44, SPRINGLEAF GARDEN, 788204, SINGAPORE.

S1411692C

132,000.00

7.33

LAM FOOK CHONG +

34, CHAI CHEE AVENUE, 19-250, 461034, SINGAPORE.

S1557584J

123,750.00

6.88

CHIA SIAN KHEAN +

27, HUME AVENUE, 08-04, 598731, SINGAPORE.

S1442277C

114,500.00

6.36

LEE TIEW NGIN MDM

10, TAI KENG GARDENS, 535292, SINGAPORE.

S0780337J

109,000.00

6.06

LAM KHOON YOU @ LAU KHOON YOU +

112, BEDOK RESERVOIR ROAD, 04-268, 470112, SINGAPORE.

S0728050E

77,200.00

4.29

WOO SIN CHAI +

35, PUNGGOL FIELD, 09-22, PRIVE, 828818, SINGAPORE.

S1410963C

60,000.00

3.33

CHERYL LAM JING WEN

10, TAI KENG GARDENS, 535292, SINGAPORE.

S7115863B

59,500.00

3.31

LAM SIEW LIN

6, BISHAN STREET 25, 13-12, CLOVER BY THE PARK, 573975, SINGAPORE.

S1710236B

59,500.00

3.31

WOO SIN YONG

285, TAMPINES STREET 22, 07-205, 520285, SINGAPORE.

S1690781B

50,000.00

2.78

VONG SIEW LEE +

232A, SERANGOON AVENUE 2, 14-127, 551232, SINGAPORE.

S1520897Z

46,000.00

2.56

LAM YEE WUA

112, BEDOK NORTH ROAD, 10-337, 460112, SINGAPORE.

S7800563G

40,000.00

2.22

LAM KA CHONG (LAN JIACHANG)

112, BEDOK RESERVOIR ROAD, 04-268, 470112, SINGAPORE.

S7429687D

40,000.00

2.22

VONG SIEW SOON

495B, TAMPINES STREET 43, 11-396, 521495, SINGAPORE.

S1394058D

40,000.00

2.22

VONG SIEW KHONG

700, LORONG 1, TOA PAYOH, TRELLIS TOWERS, 319773, SINGAPORE.

S7130862F

40,000.00

2.22

VONG FUT SENG +

145, BISHAN STREET 11, 06-73, 570145, SINGAPORE.

S0549077D

34,200.00

1.90

HO HWEE SHI

194, BISHAN STREET 13, 16-537, 570194, SINGAPORE.

S8103453B

30,000.00

1.67

YONG POH FATT

6, BISHAN STREET 25, 13-12 CLOVER BY THE PARK, 573975, SINGAPORE.

S1648903D

30,000.00

1.67

HO WENG KHIAM

37, HUME AVENUE, 10-06, SYMPHONY HEIGHTS, 598736, SINGAPORE.

S2157519D

25,000.00

1.39

CHONG KWEK WU

115, BEDOK NORTH ROAD, 10-319, 460115, SINGAPORE.

S0056753A

23,000.00

1.28

LIM MENG IN

112, BEDOK RESERVOIR ROAD, 04-268, 470112, SINGAPORE.

S1678783C

20,000.00

1.11

LIM SIEW CHOO @ SAI MOY

165, SIMEI ROAD, 05-368, 520165, SINGAPORE.

S1847451D

20,000.00

1.11

TEO POH CHU

186, PUNGGOL CENTRAL, 15-255, 820186, SINGAPORE.

S0203828E

20,000.00

1.11

HO KWEN FOONG

20, BUKIT BATOK STREET 52, 26-03, GUILIN VIEW, 659244, SINGAPORE.

S2103947J

10,000.00

0.56

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

------

1,800,000.00

100.00

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

=====

+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

VONG FUT SENG

Address

:

145, BISHAN STREET 11, 06-73, 570145, SINGAPORE.

IC / PP No

:

S0549077D

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/2000

 

DIRECTOR 2

 

Name Of Subject

:

VONG SIEW LEE

Address

:

232A, SERANGOON AVENUE 2, 14-127, 551232, SINGAPORE.

IC / PP No

:

S1520897Z

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/2000

 

DIRECTOR 3

 

Name Of Subject

:

WOO SIN CHAI

Address

:

35, PUNGGOL FIELD, 09-22, PRIVE, 828818, SINGAPORE.

IC / PP No

:

S1410963C

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/2000

 

DIRECTOR 4

 

Name Of Subject

:

LAM KHOON YOU @ LAU KHOON YOU

Address

:

112, BEDOK RESERVOIR ROAD, 04-268, 470112, SINGAPORE.

IC / PP No

:

S0728050E

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/2000

 

DIRECTOR 5

 

Name Of Subject

:

CHIA SIAN KHEAN

Address

:

27, HUME AVENUE, 08-04, 598731, SINGAPORE.

IC / PP No

:

S1442277C

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/12/2007

 

DIRECTOR 6

 

Name Of Subject

:

LAM FOOK CHONG

Address

:

34, CHAI CHEE AVENUE, 19-250, 461034, SINGAPORE.

IC / PP No

:

S1557584J

Nationality

:

SINGAPOREAN

Date of Appointment

:

24/10/2002

 

DIRECTOR 7

 

Name Of Subject

:

LAM SEN CHONG ALAN

Address

:

44, SPRINGLEAF GARDEN, 788204, SINGAPORE.

IC / PP No

:

S1411692C

Nationality

:

SINGAPOREAN

Date of Appointment

:

25/10/2000

 

DIRECTOR 8

 

Name Of Subject

:

CHONG MEI SANG

Address

:

1, HUME AVENUE, 02-08, 598718, SINGAPORE.

IC / PP No

:

S2636024B

Nationality

:

SINGAPOREAN

Date of Appointment

:

21/12/2007

 

DIRECTOR 9

 

Name Of Subject

:

LAM LOY CHONG

Address

:

95, SERONGAN ROAD, 218000, SINGAPORE.

IC / PP No

:

S0190293H

Nationality

:

SINGAPOREAN

Date of Appointment

:

11/08/2000




MANAGEMENT

 

 

1)

Name of Subject

:

LAM LOY CHONG

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

FOONG PAK LEONG & COMPANY

Auditor' Address

:

N/A

 

Auditor

:

FOONG PAK LEONG & COMPANY

Auditor' Address

:

N/A

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TAN WAH THONG

IC / PP No

:

S0075430G

Address

:

23, FIGARO STREET, OPERA ESTATE, 458348, SINGAPORE.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

UNITED OVERSEAS BANK LIMITED

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C200304119

28/08/2003

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

C200501119

23/02/2005

N/A

UNITED OVERSEAS BANK LIMITED

-

Unsatisfied

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt 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 Subject refused to disclose its suppliers.

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

SINGAPORE

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES
CASH

 

OPERATIONS

 

Goods Traded

:

GOLD & JEWELLERY

 

Branch

:

NO

Other Information:


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

The Subject sells gold jewelleries.

The Subject also provides related services for the products.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62991729

Match

:

N/A

Address Provided by Client

:

46 EALING ROAD 89 SCRANGAOON ROAD, SINGAPORE 217994

Current Address

:

95 SERANGOON ROAD, 218000, SINGAPORE.

Match

:

NO

 

Other Investigations


On 7th October 2014 we contacted one of the staff from the Subject and she provided some information.

The address provided belongs to the Subject's branch.

The Subject refused to disclose its number of employees.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2011 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2011 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

27.88%

]

Return on Net Assets

:

Favourable

[

32.74%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Unfavourable

[

87 Days

]

Debtor Ratio

:

Favourable

[

2 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Unfavourable

[

0.46 Times

]

Current Ratio

:

Favourable

[

9.01 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Favourable

[

121.92 Times

]

Gearing Ratio

:

Favourable

[

0.03 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : FAIR

 

 

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)



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 2000, the Subject is a Private Limited company, focusing on trading of jewellery. 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. With a paid up capital of SGD 1,800,000, the Subject has greater opportunities to expand its business when the needs arise. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. 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.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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 19,645,520, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

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.

Based on the strong financial condition, we recommend credit be granted to the Subject promptly.

 

 

PROFIT AND LOSS ACCOUNT

 

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

ARTHESDAM JEWELLERY PTE LTD

 

Financial Year End

2013-11-30

2012-11-30

2011-11-30

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

SGD

SGD

SGD

TURNOVER

83,310,938

71,580,911

70,273,451

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

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

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

Total Turnover

83,310,938

71,580,911

70,273,451

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

6,525,531

4,793,651

4,518,472

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

6,525,531

4,793,651

4,518,472

Taxation

(1,049,242)

(744,353)

(739,671)

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

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

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

PROFIT/(LOSS) AFTER TAXATION

5,476,289

4,049,298

3,778,801

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

12,909,231

9,399,933

6,161,132

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

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

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

As restated

12,909,231

9,399,933

6,161,132

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

18,385,520

13,449,231

9,939,933

DIVIDENDS - Ordinary (paid & proposed)

(540,000)

(540,000)

(540,000)

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

17,845,520

12,909,231

9,399,933

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

120,956

140,815

Others

53,966

-

-

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

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

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

53,966

120,956

140,815

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

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

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

 

 

 

 

 

BALANCE SHEET

 

ARTHESDAM JEWELLERY PTE LTD

 

ASSETS EMPLOYED:

FIXED ASSETS

1,461,226

1,199,492

1,220,956

Others

-

-

150,000

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

-

-

150,000

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

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

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

TOTAL LONG TERM ASSETS

1,461,226

1,199,492

1,370,956

Stocks

19,889,738

13,149,804

9,678,802

Trade debtors

376,676

761,217

320,057

Other debtors, deposits & prepayments

695,726

4,061,350

4,342,696

Cash & bank balances

-

92,569

40,639

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

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

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

TOTAL CURRENT ASSETS

20,962,140

18,064,940

14,382,194

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

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

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

TOTAL ASSET

22,423,366

19,264,432

15,753,150

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

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

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

CURRENT LIABILITIES

Trade creditors

-

-

418,627

Other creditors & accruals

2,256,603

1,706,592

1,208,927

Bank overdraft

-

1,343,801

1,334,138

Short term borrowings/Term loans

69,336

245,336

261,836

Provision for taxation

-

745,000

751,000

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

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

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

TOTAL CURRENT LIABILITIES

2,325,939

4,040,729

3,974,528

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

18,636,201

14,024,211

10,407,666

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

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

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

TOTAL NET ASSETS

20,097,427

15,223,703

11,778,622

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

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

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

SHARE CAPITAL

Ordinary share capital

1,800,000

1,800,000

1,800,000

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

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

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

TOTAL SHARE CAPITAL

1,800,000

1,800,000

1,800,000

Retained profit/(loss) carried forward

17,845,520

12,909,231

9,399,933

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

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

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

TOTAL RESERVES

17,845,520

12,909,231

9,399,933

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

19,645,520

14,709,231

11,199,933

Long term loans

438,727

505,672

569,289

Others

13,180

8,800

9,400

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

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

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

TOTAL LONG TERM LIABILITIES

451,907

514,472

578,689

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

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

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

20,097,427

15,223,703

11,778,622

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

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

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

 

 

 

 

 

FINANCIAL RATIO

 

ARTHESDAM JEWELLERY PTE LTD

 

TYPES OF FUNDS

Cash

0

92,569

40,639

Net Liquid Funds

0

(1,251,232)

(1,293,499)

Net Liquid Assets

(1,253,537)

874,407

728,864

Net Current Assets/(Liabilities)

18,636,201

14,024,211

10,407,666

Net Tangible Assets

20,097,427

15,223,703

11,778,622

Net Monetary Assets

(1,705,444)

359,935

150,175

BALANCE SHEET ITEMS

Total Borrowings

508,063

2,094,809

2,165,263

Total Liabilities

2,777,846

4,555,201

4,553,217

Total Assets

22,423,366

19,264,432

15,753,150

Net Assets

20,097,427

15,223,703

11,778,622

Net Assets Backing

19,645,520

14,709,231

11,199,933

Shareholders' Funds

19,645,520

14,709,231

11,199,933

Total Share Capital

1,800,000

1,800,000

1,800,000

Total Reserves

17,845,520

12,909,231

9,399,933

LIQUIDITY (Times)

Cash Ratio

0.00

0.02

0.01

Liquid Ratio

0.46

1.22

1.18

Current Ratio

9.01

4.47

3.62

WORKING CAPITAL CONTROL (Days)

Stock Ratio

87

67

50

Debtors Ratio

2

4

2

Creditors Ratio

0

0

2

SOLVENCY RATIOS (Times)

Gearing Ratio

0.03

0.14

0.19

Liabilities Ratio

0.14

0.31

0.41

Times Interest Earned Ratio

121.92

40.63

33.09

Assets Backing Ratio

11.17

8.46

6.54

PERFORMANCE RATIO (%)

Operating Profit Margin

7.83

6.70

6.43

Net Profit Margin

6.57

5.66

5.38

Return On Net Assets

32.74

32.28

39.56

Return On Capital Employed

32.74

29.66

35.53

Return On Shareholders' Funds/Equity

27.88

27.53

33.74

Dividend Pay Out Ratio (Times)

0.10

0.13

0.14

NOTES TO ACCOUNTS

Contingent Liabilities

0

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.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.