3decades

MIRA INFORM REPORT

Report No. :	497220
Report Date :	17.03.2018

IDENTIFICATION DETAILS

Name :	DIAMOND CUTTERS LIMITED

Registered Office :	# 20-24, Modarawila Industrial Estate, Panadura

Country :	Sri Lanka

Date of Incorporation :	21.01.1993

Com. Reg. No.:	PB 856

Legal Form :	Private, Limited Liability Company

Line of Business :	Cutting, Polishing of Diamonds for Exports and sales

No. of Employees :	800

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Sri Lanka

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 is attempting to sustain economic growth while maintaining macroeconomic stability under its IMF program that it began in 2016. The government's high debt payments and bloated civil service cadre, which have contributed to historically high budget deficits and low tax revenues, remain a concern. Government debt is about 75% of GDP and remains among the highest of the emerging markets. Sri Lanka will need to balance its elevated debt repayment schedule with its requirement to maintain adequate foreign exchange reserve levels in the coming years.

In May 2016, Sri Lanka regained its preferential trade preferences under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including it top export garments, tax free to the EU. Also in 2016, the government reformed elements of the country’s tax regime to increase some tax rates and broaden the tax net in response to recommendations made under its IMF program.

Tourism has experienced strong growth during recent years following the resolution 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.

Source : CIA

Company Profile

Basic Information

a.	Name of Subject of Inquiry	DIAMOND CUTTERS LIMITED
b.	Legal Form & Status	Private, Limited Liability Company (In Operation)
c.	Chairman / Managing Director	Mr Sanjay Baid
d.	Primary Line of Business	Cutting, Polishing of Diamonds for Exports and sales
e.	Principal Place of Business	# 20-24, Modarawila Industrial Estate, Panadura, Sri Lanka. Phone : (00 94 38) 4291300 /2246955/ +94 77 7772485 Fax : (00 94 38) 4291301 E-Mail: info-diamond@lankaequities.com Web Site: http://www.diamond.lk/
f.	Employees	800 Approximately

Company Details

a.	Registration No	N(PBS) 163
	Date of Registration	21^st January 1993
b.	Re-registration No	PB 856
	Date of Re-registration	13^th January 2009
c.	Registered Office	# 20-24, Modarawila Industrial Estate, Panadura, Sri Lanka.
d.	Director Board / Ownership As At 26^th October 2017	Sanjay Baid		Director
		Ranjith Barmecha		Director
		Riyaz Mohamed Sangani		Director
		Mohamed Nilamdeen Alawdeen		Director
		Rajendra Dharmapriya Samaranayake		Director
		Sambhav Braid		Director
e.	Stated Share Capital	Ordinary Shares	Preferential Shares
		LKR 80,300,000.00	LKR 3,300,000.00
f.	No. of Shares	8,030,000	330,000
g.	Preferential Shares	NA
h.	Nominal Value of Share	LKR 10.00
i.	Auditors	Earnst & Young Chartered Accountants # 201, De Saram Place, Colombo10, Sri Lanka.
j.	Company Secretaries	Nexia Corporate Consultants # 51/1 A, Fife Road, Colombo 05, Sri Lanka.
k.	Main Bank/s	NA

Shareholders

NO.	NAME	NUMBER OF SHARES
1.	Sanjay Baid	330,000
2.	New Century Marketing Ltd	8,030,000

FINANCIAL DETAILS

- Most recent available Financial Information NA

CURRENT INVESTIGATION

Company Logo

· History.

The subject company was initially formed on 21^st January 1993 under N(PBS) 163 under the Companies Act of Sri Lanka. The subject company was subsequently Re-registered on 13^th January 2009 under PB 856 under the Companies Act No 7, of 2007 as per the mandatory regulations of Sri Lanka.

Caption

Our state of the art manufacturing facility in Sri Lanka, the Diamond Cutters Limited and Niru Lanka Exports (PVT) Limited solidify Niru's value chain at the production and manufacturing stage with expertise, experience and unwavering commitment to quality.

Niru Sri Lanka structure has been set up specifically to create synergies between the various entities and to create an organization, which effectively utilizes all the output from our polishing facilities, capturing the highest possible return for each range of goods. Its significant scale of operation, diverse skills and competencies within the operations facilities are geared to adding value, to the diamonds from the Rough to the lustrous.

· Operational Details.

General

· Products & Services

· Assorting the roughs

· Planning

· Saw of diamonds

· Polishing of Baguettes, Princess, and Round Brilliants

· Polishing of Precision Cut shapes of diamonds for Watch industry and high-end Jewelry market

· Diamond Grading and Assorting

Employees

800+ Approximately

Export Countries

Israel, Japan

Import Countries

African Countries, Madagascar

Associate / Subsidiary Companies

Niru Lanka Exports (Pvt) Ltd

Factory / Warehouse and Sales Outlets

Under BOI

Personal Details of Key Persons

Director 1

ITEM	DETAIL
Name	Sanjay Baid
ID Number	B 0362617
Nationality	Indian
Gender	Male
Date of Birth	NA
Age	NA
Address	# 18, Shiva Enclave, Pittampura, Saraswathi Vihar, Delhi, India.

Director 2

ITEM	DETAIL
Name	Ranjith Barmecha
ID Number	Z 2395642
Nationality	Indian
Gender	Male
Date of Birth	NA
Age	NA
Address	# 06, Kehelat riga,Meatafeka, telaviv, Israel

Director 3

ITEM	DETAIL
Name	Riyaz Mohamed Sangani
ID Number	701992032V
Nationality	Sri Lankan
Gender	Male
Date of Birth	17.07.1970
Age	47
Address	Level 04, Access Towers, # 278, Union Place, Colombo 02, Sri Lanka.

Director 4

ITEM	DETAIL
Name	Mohamed Nilamdeen Alawdeen
ID Number	280161675V
Nationality	Sri Lankan
Gender	Male
Date of Birth	16.01.1928
Age	92
Address	# 08, Sir Ernest De Silva Mawatha, Colombo 07, Sri Lanka.

Director 5

ITEM	DETAIL
Name	Rajendra Dharmapriya Samaranayake
ID Number	623100049V
Nationality	Sri Lankan
Gender	Male
Date of Birth	05.11.1962
Age	55
Address	# 80, Templers Road, Mount Lavinia, Sri Lanka.

Director 6

ITEM	DETAIL
Name	Sambhav Braid
ID Number	L5853981
Nationality	Indian
Gender	Male
Date of Birth	NA
Age	NA
Address	# 18, Shiva Enclave, Pittampura, Saraswathi Vihar, Delhi, India.

INFORMATION DENIED

Management Non Co-Operative (Tel No.: 00 94 38 4291300)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.87
UK Pound	1	INR 90.49
Euro	1	INR 79.91
LKR	1	INR 0.42

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Information Gathered by :	SUV

Analysis Done by :	PRI

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.