1.
Industry detail
1.1 HISTORY OF DIAMOND:-
INTRODUCTION`:-
As long as about three thousand year ago, man bent down to pick up a glistering
pebble and by some chance found it to be different from other stones form that times, diamond
began to acquire magical power and avarice. More recently, it has become an object of extreme
scientific Curiosity.
Man began to collect diamond treasure them, built legends around them trade in
them as, use them as tools, them as gems, raise loan with them fight over them, and eventually to
give them as symbol of love and trust his early instinct to treat diamond as unique was true,
because today probably more effect goes into research on any other material.
The desire for diamond because of its beauty of its scientific and industrial uses
has not diamond over the years but has become much more widespread. A century ago, the
possession of a diamond was the prerogative of the rich alone since the discovery of huge deposit
in Africa, and more recently Diamond pipes in Russia, mining and marketing of diamond has
brought them within reach of large section of the population of industrial countries, both as gems
and as parts of working tools.
Diamond is the hardest substance man has ever discovered and the purest that
occurs in nature, although very highly prize as gems, however, it is composed of one of the
commonest substance on earth, ordinary carbon, carbon is found in all living thing, plants as
well as animal and in many rocks.
Diamond can be broken with the blow of hammer yet will penetrate steel by
pressure. It is extremely durable, being able to withstand and attacks the strongest acids and
alkalis, yet is an unstable forms of carbon and will burn or oxidizes on the surface it dropped in a
fire for short times. It has a very high melding-point and will cut steel for long period at near red
heat, yet hearted to bright red it will catch fire and convert to carbon dioxide gas.
1.2 MEANING OF DIAMOND:-
Admass and adamant were words implying extreme hardness, derived from the
GREEK ADAMNO meaning, I tame or I subdue. They were used in classical time to
describe supplier, which was sometimes confused with diamond.
1.3 DEFINITION ON DIAMOND:-
Diamond is a crystallize, mineral, essentially composed of carbon. The word
diamonds originally come from the Greek words Adams which means unconquerable.
1.4 HARDNESS OF DIAMOND:-
Hardness can bedefines as the ability of mineral to resist abrasion when scraped
by any other mineral.
HARDNESS SCALE:-
Hardness scales are as follow
1. Talc
2. Gypsum
3. Calcite
4. Fluorite
5. Apatite
6. Orthoclase Feldspar
7. Quartz
8. Topaz
9. Corundum
10. Diamond
1.5 WHERE DIAMOND IS FOUND:-
Pliny remarked that diamond acumen pained gold. Diamond are found with gold,
but we know now that they arrive together through the action of winds and rain over millions of
year gradually shaking and sifting them and other heavy mineral together diamond does not
occur in its originally source with gold pliny referred to six type of diamond, but form his
description some of the types were sapphires which are very heavy and are also found with gold.
As far as is known, all early source of diamond were in the beds of active or dried
up rivers, despite the legends. India was the only known source for over 2000 year expect for
Borneo where diamond were probably first mind in the sixteenth century. The Brazilian
Diamond fields were discovered in the gold mining area of minas geris in 1725. New discovered
always seem to have been regarded with skepticism stones was questions on the London market
and as late as 1740 a jeweler declared in print that it was a false idea that the mines of brazil
furnish diamond. Even a century later Portuguese possession in India, to sell them mining was
carried out so intensive that main area were almost exhausted in twenty years.
By an extraordinary coincidence the South African diamond fields were
discovered in 1860, by the times that the Brazilian fields were exhausted when the news arrived
in Brazil, history repeated itself. The Brazilian Merchant refused to believe the facts and many
were exhausted. When the news arrived in Brazil history reputed itself. The Brazilian merchant
refused to believe the facts and many were ruined. PROFESSORJ. GREGERY, London
university mineralogists, actually spent three weeks in the South African diamond fields and
subsequence wrote an article for the geological magazine in 1868 declaring the story of South
African diamond was false and simply a scheme for trying to prompt the employment and
expenditure of capital in searching for the precious Stone in that country major diamond deposits
were found in the arctic area of Yakima in Russia form 1954. Again, there was disbelief in some
quarter before the diamond came on to the market in the west, but now the Russia mines have an
output comparable with that of South Africa.
1.6 Famous Diamonds of the World:-
Canary Diamond:-
Weight: 128.54 carats
Color: fancy yellow
Clarity: flawless
Cut: Cushion-shape, 90 facets
Source: Kimberly mine, South Africa
The Culminant:-
Weight: 530.20 carats
Color: unrecorded
Clarity: unrecorded
Cut: Pear
Source: Transversal, South Africa
The Hope Diamond:-
Weight: 45.52 carats
Color: dark blue
Clarity: flawless
Cut: Oval Brilliant
Source: India
The Kohinoor:-
Weight: 108.93 carats
Color: unrecorded
Clarity: unrecorded
Cut: Round Brilliant
Source: India
The Orloff:-
Weight: 189.62 carats
Color: slightly bluish green
Clarity: "exceptionally pure"
Cut: Mogul-cut rose
Source: India
The Regent:-
Weight: 140.50 carats
Color: unrecorded
Clarity: unrecorded
Cut: Cushion shaped brilliant
Source: India
Centenary Diamond:-
Weight: 273.85 carats
Color: Grade D Colorless
Clarity: Bright
Cut: Modified
Source: South Africa
1.7 DIAMONDCUTTING:-
Early description of faceting diamond refer to polishing and it is presumed that
octahedral crystals were left their natural shape or the angled of the face were altered by cutting,
since they were altered by cutting since they were called points-cut stones. An octahedral face is
in fact impossible to polish. Moreover, the process of cleaving produces points stones without
the necessity for polishing Grinding to remove the top point of the Octahedral crystal to produce
what was called the table stones presumably come later. The history of cutting and polishing is
purely documented and the art remained a trade secret for many centuries. It is uncertain where
cutting Originated, whether in Europe or India, as well as which Europe was probably in the
fourteenth century and in India possibly about the sometimes because there was on earlier bon
for superstitious reason on shaping diamond superstious. Probably delayed the development in
the alternation of a diamond was supposed to destroy its magical properties.
Tavernier noted in the seventeenth century that there were considerable
differences in the techniques of European and Indian cutters. He also surmised that the Indian
used facets to hide fiaws.
1.8 WHICH PEOPLE INVOLVE IN DIAMOND INDUSTRY?
There are many people involve in diamond industries. In world 60% people
having diamond factory, In India 40% people having diamond factory. There are many Surat
people doing this business in Gujarat. There are 50% people doing diamond business in Surat.
2. COMPANY PROFILE
KESHRI EXPORT envisioned few decades ago that diamond shall be an
integral part of lives of people, and so they embarked upon this never ending journey of
manufacturing very high quality diamond that are most sought after globally with their sparkling
quality business acumen, sincerity, and trustworthiness in the way they conduct business have
made them a name to reckon in the world of diamonds.
Their specialty lies in supply of vast variety of loose diamonds and readily
available stocks of the same.
KESHRI EXPORT is a unique diamond manufacturing company of India
established in 1995 by two highly talented.
KESHRI EXPORT is one of the largest quality manufacturers of round cut
diamond in India specialties in bigger sizes for D to I in color and FL to SI3 in clarity, large
quantities available in all calibrated sizes and supplying to jewelers worldwide by ensuring
customers where satisfied with quality, reliability and endeavor supply.
Company name KESHRI EXPORT
Company type OWNER
Business type Diamond Manufacturers, Exporters and Importers
Product or service Precious Metals, Gems
Major export market Worldwide
No. of employee 2000-2200 People
Certifications ISO 9000-2001, GIA, HRD, IBI
Years of establishing 1995
Contact Person Keyur Magukiya
Address Keshri export, near mini bazar,varachha road,
Surat-6
About 19 years ago, KESHRI EXPORT started its business of manufacturing
diamond with few numbers of butting machines and about 50 employees. Since the day of
establishing to success in their business. In the year 1995 small unit of diamond manufacturing.
They first started their unit in Surat. At the time of starting the unit was not so big.
They purchase the rough diamond from local market and produced the diamond in small quantity
and sell polished diamond in local market. At time of establishing, they decide the quality as the
main policy of the business. This policy helps them to get great success.
With the great effort of the group they get success in their business. In 1995 they
increase the capacity of the production. They built big building with increasing capacity and
facility at Surat. Mr. VALAJI BHAI GABANI Chamber, Mumbai as head office and the unit of
Surat is known as production unit. With starting that office KESHRI EXPORT established its
relation with foreign company; in foreign market the diamond produced by KESHRI EXPORT
is known as clearest diamond. KESHRI EXPORT started its offices in other countries like,
Belgium, Hong Kong, Dubai, U.K. and U.S.A. with the purpose of purchase best quality rough
diamond by which it can producing good polished diamond.
In the year 1999, KESHRI EXPORT construct a very big, good facilitate
building at Minibazar. With establishing this building, Company increased its production
capacity by double rate. Company purchase the latest laser machine and sawing machine. It
installed the latest technology for planning of diamond. Today KESHRI EXPORT has about
1000 to 1200employees with good experience.
Commitment Statement
The passion, the desire, the fire to supply the best quality diamonds is their
constant carving they promise to keep that desire alive in all their customers.
Business Policy
Their business policy is clear than other diamond Companys.
They always concentrate on quality.
Always hear 'n' caring clients.
Always deliver diamond fast and continuously.
Always try to keeping reliable price and manufacture deferent sizes, color ranges, price and
clarity as per current demand of their valuable clients.
Maximum use of appropriate technology and information technology.
Adopt better productivity through which it can be possible to reduce cost, rework and
rejection.
Provide harmony and safe working condition to employees
Motivate employees in the right way and provide training and development programmed to
achieve above objectives.
Location of offices and Branches
HEAD OFFICE
KESHRI EXPORT
2304, PANCHARATAN,
OPERA HOUSE,
MUMBAI-400 004,
MAHARASHTRA.
MAIN PRODUCTION UNIT
KESHRI EXPORT
MINI BAZAR,
VARACHHA ROAD,
SURAT-6.
FOREIGN OFFICE
HONG KONG
KESHRI EXPORT
1701, LEE WAI COMMERICAL BIDG,
1-3 HART AVENUE,
TSIM SHA TSUI, KIN .HK
ACHIEVEMENT OF KESHRI EXPORT
get ISO: 9000:2001
get Niryatshree award by FIEO (Federation of Indian Export Organization) for best
export.
It also get Niryatbandhu award from FIEO
Certification
KESHRI EXPORT age-old wisdom and 21
st
century technology to bring out the
best characteristics of a rough stone, transforming it into a finished diamond. Before releasing
the diamond into the market, an independent lab can be called upon to catalog these
characteristics, certain what would be best described as a blueprint of the diamond.
Certification serves as written proof of the diamonds attributes and provides a
basis for consumers to determine the value of diamonds with similar attributes. At the end of the
day, certification gives consumer the power to an additional certification exclusively measures
return of light.
ISO:9000:2001
GIA - Gem Trade Laboratory
HRD Antwerp World Diamond Centre
IBI
Organization Structure
Operators
Top management
Managing director
Chairman
General Manager
Production Selling Finance Human resource
Manager
Asst. manager
Workers
Manager
Staff
Manager
C.A.
Asst. manager
Manager
Asst. manager Sales
executives
OBJECTIVE OF THE BUSINESS
Provide good quality diamond
To understand and satisfy need of customer
Get satisfy customer and increase relation with them
Increase productivity by reducing wastages and maintenance
To follow the rules and regulation related to diamond industries
Continuous improve the management
Increase the quality by maximum use of latest technology
Give common opportunity to go ahead to every employee
To make healthy relationship with government and customer
3.Introduction: -
The Financial analysis involves examining the economic, financial and other qualitative and
quantitative factors related to a security in order to determine its real value. While typically this
method is used to evaluate the value of a companys stock, its use can be extended for any kind
of security, such as bonds or currency.
Fundamental analysis, which is also known as quantitative analysis, involves delving into a
companys financial statements (such as profit and loss account and balance sheet) in order to
study various financial indicators (such as revenues, earnings, liabilities, expenses and assets).
Such analysis is usually carried out by analysts, brokers. Goal of performing Financial anlysisis
to produce a value that an investor can compare with the security's current price, with the aim of
figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell
or short).
This method of security analysis is considered to be the opposite of technical analysis.
How Does It Work?
Financial analysis is carried out with the aim of predicting the future performance of a
company. It is based on the theory that the market price of a security tends to move towards its
'real value'. Thus, the real value of a security being higher than the securitys market value
represents a time to buy. If the value of the security is lower than its market price, investors
should sell it.
The steps involved in Financial analysis are:
1. Ratio analysis of the company.
2. Trend analysis of the company.
3. Preparation & Analysis of Fund Flow Statement.
The valuation of any security is done through the discounted cash flow (DCF) model, which
takes into consideration:
1. Dividends received by investors
2. Earnings or cash flows of a company
3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current
assets/current liabilities)
Benefits of financial analysis:
Financial analysis helps in:
1. Identifying the real value of a security.
2. Identifying long-term investment opportunities, since it involves real-time data.
Drawbacks of financial analysis:
The drawbacks of financial analysis are:
1. Too many economic indicators and extensive macroeconomic data can confuse novice
investors.
2. The same set of information on macroeconomic indicators can have varied effects on the
same currencies at different times.
3. It is beneficial only for long-term investments
RATIO ANALYSIS
Introduction: -
In practice a number of techniques are used for the analysis of financial statements. Such
as, common sized statement, percentage increase or decrease of various items, trend analysis and
so on. But the most popular and widely used technique is the ratio analysis which highlights the
relationship between different figures in the same financial statement, that is, balance sheet or
income statement or relationship of figures in both the financial statement. Ratio is a numerical
relationship between one item and another.
Ration analysis is a widely- used tool of financial analysis. It is defined as the systematic
use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as
well as its historical performance and current financial condition can be determined. The term
ratio refers to the numerical or quantitative relationship between two items\ variables. This
relationship can be expressed as:
o Percentages, say, net profits are 25 per cent of sales. (Assuming net profits of 25,000 and
sales of Rs. 100,000)
o Fraction (net profit is one-fourth of sales) and
o Proportion of numbers (the relationship between net profits and sales is 1:4).
These alternative methods of expressing items which are related to each other are, for purpose of
financial analysis, referred to as ratio analysis. It should be noted that computing the ratio does not add
any information not already inherent in the above figures of profits and sales. What the ratios do is that
they reveal the relationship in a more meaningful way so as to enable us to draw conclusions from them.
Importance of ratio analysis: -
As a tool of financial management, rations are of crucial significance. The importance of
ration analysis lies in the fact that it presents facts on a comparative basis and enables the
drawing of inferences regarding the performance of a firm. Ration analysis is relevant in
assessing the performance of a firm in respect of the following aspects:
Liquidity Position
With the help of ration analysis conclusions can be drawn regarding the liquidity position of
a firm. The liquidity position of a firm would be satisfactory if it is able to meet its current
obligations when they become due
Long-term Solvency
Ratio analysis is equally useful for assessing the long-term financial viability of a firm. This
aspect of the financial position of a borrower is of concern to the long-term creditors, security
analysts and the present and potential owners of a business. The long-term solvency is measured
by the leverage/capital structure and profitability ratios.
Operating Efficiency
Yet another dimension of the usefulness of the ratio analysis, relevant from the viewpoint of
management, is that it throws light on the degree of efficiency in the management and utilization
of its assets. The various activity ratios measure this kind of operational efficiency. In fact the
solvency of a firm is, in the ultimate analysis, dependent upon the sales revenues generated by
the use of its assets-total as well as its components.
Overall Profitability
Unlike the outside parties which are interested in one aspect of the financial position of a
firm, the management is constantly concerned about the over-all profitability of the enterprise.
This is, they are concerned about the ability of the firm to meet its short-term as well as long-
term obligations to its creditors, to ensure a reasonable return to its owners and secure optimum
utilization of the assets of the firm. This is possible if an integrated view is taken and all the
ratios are considered together.
Inter-firm Comparison
Ratio analysis not only throws light on the financial position of a firm but also serves as a
stepping stone to remedial measures. This is made possible due to inter-firm comparison and
comparison with industry averages. A single figure of a particular ratio is meaningless unless it is
related to some standard or norm. One of the popular techniques is to compare the ratio of a firm
with the industry average.
Trend Analysis
Finally, ratio analysis enables a firm to take the time dimension into account. In other words,
whether the financial position of a firm is improving or deteriorating over the years. This is made
possible by the use of trend analysis. The significance of a trend analysis of ratios lies in the fact
that the analysts can know the direction of movement, that is, whether the movement is favorable
or unfavorable.
Advantage of ratio analysis: -
The accounting ratios offer the following advantages:
Help in financial statement analysis
It is easy to understand the financial position of a business enterprise in respect of short term
solvency, capital structure position etc., with the help of various ratios. The users can also gain
by knowing the profitability rations of the firm.
Help in simplifying accounting figures
The single figures in terms of absolute amount such Rs. 10 lakhs income, Rs. 50 lakhs sales
etc, are not of much use. But they become important when relationship are established, say for
example, between gross profit and sales or net profits and capital employed and so on.
Help in calculating the operating efficiency of the business enterprise
Ratios enable the users of financial information to determine operational efficiency of a
business firm by relating the profit figure to the capital employed for a given period.
Help in locating weak points of the firms
Ratio analysis would pin-point the deficiency of various departments or a branch of a
business unit even through the overall performance is satisfactory.
Help in inter-firm and inter-period comparisons
A firm can compare its results not only with other firms in the same industry but also its own
performance over a period of time with the help of ratio.
Help in forecasting
Accounting ratios calculated and tabulated for a numbers of years enable the users of
financial information to determine the future result on the basis of past trends.
Limitation of ratio analysis: -
The ratio analysis is not a fool-proof method in financial statement analysis. In spite of
many good points, in suffers from a numbers of limitations which arise from the nature of
financial information itself. Some of the important limitations are given below:
Ratios Ignore Qualitative Factors
The ratios are obtained from the figure expressed in money. In this way, qualitative factors,
which may be important, are ignored. For instance, it is just possible that the financial position of
a firm may be quite satisfactory in terms of money, yet it may not be desirable to extend credit
because of inefficient management in the matter of payments on due dates.
Defective Accounting Information
The ratios are calculated from the accounting data in the financial statement. It means that
defective information would give wrong ratios. Thus, the deliberate omission such as omitting
purchase, would positively affect the ratios too.
Change in Accounting Procedures
A comparison of results of two firms becomes different when we find that these firms are
using different procedures in respect of certain items such as inventory valuation, treatment of
intangible items likes goodwill capitalization of certain expenditures like interest on the loan
taken to buy an assets etc.
Variation In General Operating Condition
While interpreting the results based on ratio analysis, all business enterprise have to work within
given general economic conditions, conditions of the industry in which the firms operate and the
position of individual companies within the industry. For example, if the firm has been forced by
the government to sell its products at fixed prices, its comparison with other firms would become
impossible.
Single Ratio Not Sufficient
It is very necessary to take into account the combined effect of the various ratios so that the
results are correctly interpreted regarding the financial condition and earning performance of the
business. Each ratio plays a part in interpretation process.
Ratios Only a First Step
Ratios are only a first step for analysis and interpretation of financial statement and must be
supplemented by thorough investigation before conclusions can be drawn from them.
4.Research Methodology
1) Objective of the study:-
To know present scenario of KESHRI EXPORT.
To analyze the information collected on sales, profit, etc.
To do ratio analysis of the KESHRI EXPORT.
Draw conclusion about financial position of company
2) Benefit of the study:-
It provides vast knowledge about Diamond Industry.
It helps to apply theoretical knowledge with practical study.
3) Sources of data:-
Basically the sources of data are divided into two main categories:
Primary Sources of Data.
Secondary Sources of Data.
Secondary data is the data already collected by someone for his/her purpose of study. I have
utilized secondary sources of data to suffice the need of my project adequately.
4) Research design:-
A research design specifies the methods and procedures for conducting a particular study.
Broadly speaking, research design can be grouped in three different categories:
Exploratory research
Descriptive research
Casual research
.
5) Reference period:-
I have utilized Last 3 Year data of balance sheet and Profit & loss account of company
for analysis of KESHRI EXPORT
Time period undertaken for the study is 3 years.
