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Report No. : |
340411 |
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Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
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Name : |
DIAMOND CUTTERS LTD |
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Registered Office : |
# 20-24, Moderawila
Industrial Estate, Panadura |
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Country : |
Sri Lanka
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Date of Incorporation : |
21.01.1993 |
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Com. Reg. No.: |
N (PBS) 163 |
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Legal Form : |
Private Limited Liability Company [In Operations] |
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Line of Business : |
Manufacturer and Exporter of Cutting and Polished Diamonds. |
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No. of Employees : |
Approx.1000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SRI LANKA - ECONOMIC OVERVIEW
Sri Lanka continues to experience strong economic growth
following the end of the government's 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, but low tax revenues remain
a 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 |
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a. |
Name of Subject of Inquiry |
: |
DIAMOND CUTTERS LTD |
|
b. |
Legal Form & Status |
: |
Private Limited
Liability Company (In operation) |
|
c. |
Chairman/Managing
Director |
: |
Sanjay Baid (Indian) |
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d. |
Primary Line of Business |
: |
Manufacturer and Exporter of Cutting and Polished Diamonds. |
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e. |
Office, Place of Business & Factory Factory |
: |
# 20-24, Moderawila
Industrial Estate, Panadura. Sri Lanka Tel No: (00 94 38)
429 1300 Fax No: (00 94 38)
429 1301 Email: info@diamond.lk
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f. |
No. of Employees |
: |
Approx.1000 |
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g. |
Imports |
: |
Products: Rough Diamonds Country: Israel, India
and USA |
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h. |
Exports |
: |
Products:
Polished
Diamonds Country: Israel, India,
Belgium, South Africa, Japan, Germany and UK |
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i. |
Trading Terms |
: |
Purchasing
Terms: Advance Payment, Cheque and Credit Selling
Terms: Advance Payment, Cheque and Credit |
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a. |
Registration No |
: |
N (PBS) 163 |
||||
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Date of
Registration |
: |
21st January 1993 |
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b. |
Re-Registration
No |
: |
PB 856 |
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Date of
Re-Registration |
: |
13th January, 2009 |
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c. |
Registered
Address |
: |
# 20-24, Moderawila
Industrial Estate, Panadura. |
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d. |
Board Of
Directors As At 31st
December, 2014 |
: |
Sanjay Baid
(Indian) |
Chairman/MD |
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Ranjeet Barmecha (Indian) |
Director |
||||||
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Shanti Barmecha (Indian) |
Director |
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Rajeendra Dharmapriya Samaranayake |
Director |
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Riyaz Sangani |
Director |
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Mohamed Nilamdeen Alawdeen |
Director |
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f. |
Issued Share
Capital |
: |
Rs. 83,600,000.00 |
||||
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Total Issued
Shares |
: |
8,360,000 ( Ord. 8,030,000 + Pref. 330,000) |
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g. |
Nominal Value of
Share |
: |
Not stated vide Companies Act #7 of 2007 |
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h. |
Share Holders As At 31st
December, 2014 |
: |
Share Holders |
Shares |
|||
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Preference |
Ordinary |
||||||
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Sanjay Baid (Indian) |
330,000 |
- |
|||||
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New Century Marketing LTD, Hong Kong |
- |
8,030,000 |
|||||
i.
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Secretaries
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:
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Natasha Prasadini Arawwala, #18A, Joseph
Frazer Road, Col.05 |
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j. |
Auditors |
: |
Ernst and Young, #201, De Saram Place,
Col.10 |
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k. |
Bankers |
: |
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l. |
Sister Concern |
: |
Nirulanka Exports |
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Subject declined to provide details without
knowing the identity of the client.
Note:
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
detailed financials are available for this entity
·
History.
The Subject Company DIAMOND CUTTERS LTD is a Private Limited
liability Company incorporated on 21st January 1993 under the registration number N (PBS) 163 and Re-registered on 13th
January, 2009 under No. PB 856, in terms of Companies Act #7 of 2007.
·
Location.
The Subject Company is
located at the client # 20-24, Moderawila Industrial
Estate, Panadura, an area approx. 30 kilo meters south of Colombo city.
·
Operations
Details.
General
The subject
company primary line of business is Cutting
and polishing of diamonds of Export
Subject
states that they utilize the Israeli method for scaife preparation utilizing
sand Blasting, Latheing and Grinding and specially designed for preparation to
ensure perfect smoothness for faceting.
Precision cut unit utilizes monitors for precise
control of angels and straightness of lines for the baguettes done for the
Swiss market. In addition, microscope checking is utilized for 100% smoothness
and accuracy of facets. Rico American tangs are used by the unit for the best
precision when doing Rounds for the Swiss market.
Service
·
Sawing of diamonds
·
Polishing of Baguette diamonds
·
Polishing of princess cut diamonds
·
Polishing of round brilliant cut diamonds
·
Polishing of precision cut baguettes, tapered
baguettes and fancy shapes for the Swiss watch industry
·
Girding & assorting
·
Wholesale of polished diamonds
Associate Company
Niru Lanka (PVT)
Ltd
Niru Lanka Exports
Ltd
Country
Europe Countries,
USA
Employees
Approx.100
·
Trade references
Export Development Board
Gem & Jewellery Authority of Sri Lanka
Board of Investment (BOI) Sri Lanka
·
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 computerized 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.
|
Name : |
Mr. Rajeendra Dharmapriya Samaranayake |
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Designation : |
Director |
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Contact No.: |
009438-4291300 |
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Date : |
16.09.2015 |
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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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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.
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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.65.75 |
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|
1 |
Rs.102.17 |
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Euro |
1 |
Rs.74.37 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.