Did you receive Blue Diamond Annual Report?

Did you receive annual report of Blue diamond company? low cost....very attractive,,,Hi....Hi...

Chairman hopeful about imminent turnaround

Blue Diamonds Jewellery Worldwide PLC has been able to grow revenue during the year ended March 31, 2013 but has reported a loss of Rs.26.2 million, down from a profit of Rs. 11.9 million a year earlier, demonstrating that the revenue of the company has to be substantially enhanced and its cost structure needed reorganization, Mr. J.H. P. Ratnayeke, the company’s Chairman has told shareholders in its annual report.

"The company has embarked on strategies which would allow it to increase orders with existing customers and at the same time to secure new customers. New product lines and concepts are being added to the company which would assist the it to increase the revenue substantially," he said.

Ratnayeke noted that the administrative cost was down to Rs.41.8 million from the previous year’s Rs.55.5 million and it is intended to be further reduced by implementing an aggressive cost reduction plan.

The company has appointed a new Managing Director and a Chief Executive Officer who have been entrusted with the task of re-vitalizing it to achieve sustainable profitability," he said.

"The reduction in the cost structure would enable the company to be more competitive in pricing and be able to attract new customers and orders."

Ratnayeke said that they are making every effort to return to sustainable profitability and believed the next year would be a ground breaking year for the company.

Although the company’s Auditors, KPMG, has certified that the financial statements give a true and fair view of its financial position as at balance sheet date, they have without qualifying their opinion drawn attention to two notes in the financial statements.

These relate to a credit facility of USD 2.75 million obtained by Blue Diamonds from the Seylan Bank in previous years by pledging inventory of jewellery as security.

During the year ended March 31, 2005, the directors resolved to write back the balance outstanding to Seylan in respect of the credit facility on the basis the company had handed over the jewellery in lieu of this credit facility as a full and final settlement of the balance due to the bank.

Blue Diamonds took the view that there was no further liability on this credit facility but the Seylan Bank had by letter dated December 2009 demanded a sum of USD 4.32 million together with interest being the total outstanding sum due on this facility.

The two parties had agreed to appoint an arbitrator on this matter on November 21, 2003 in respect of the sale of jewellery that was obtained by Seylan Bank in 1999 in lieu of the credit facilities obtained.

This arbitration had commenced and is now at the trial state, the auditors said. Its ultimate outcome cannot be currently determined and hence the effect of the financial statements is uncertain.

Blue Diamonds has a stated capital of Rs.208.4 million, a general reserve of Rs.135 million, a revaluation reserve of Rs.17.5 million and accumulated loss of Rs.59.6 million in its books.

Total assets were running at Rs.319.9 million and total liabilities at Rs.18.8 million.

The major shareholder of the company is ECL Soft (Pvt) Ltd (17.73%) followed by the General Fund of the Sri Lanka Insurance Corporation with 10.22%, Ceylinco Insurance Co. Ltd – Life and General Funds with 4.64%, The Finance Portfolio Management Co. Ltd (1.26%), The Finance Co. Ltd. (0.81%) and Mr. J.L.B. Kotelawala (0.79%) are among the top 20 voting shareholders.

Public holding was down to 72.05% during the year under review from 78.50% the previous year.

Blue Diamonds had lost 23 cents per share during the year under review, up from 11 cents the previous year.

The voting share traded at a high of Rs.3.10 and a low of Rs.1.30 during the year under review against a trading range of Rs.4.40 to Rs.1.30 the previous year.

The directors of the company are: Messrs. J.H.P. Ratnayeke (Chairman), W.D.J.R. Silva (MD), B.M.A.L.A. Fernando (Deputy Chairman), W.M.R.B. Bandara and S.A. Hettiarachchi.
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