CRISIL has assigned its bank loan ratings of ‘P3’ to the various bank facilities of S Narendra. The rating reflects the strong experience and conservative risk appetite of the business partners who have set up S Narendra, and the assured supply of rough diamonds from Sauraj Diamonds (a group company), which helps S Narendra efficiently plan its production. These rating strengths are, however, partially offset by the company’s weak financial risk profile and high customer concentration.

CRISIL has combined the business and financial profiles of Saurin Diamonds, Siddhanth Diamonds and S Narendra collectively referred to as S Narendra Group, as part of this rating exercise. This is because all the companies are in the same business and there is high operating linkage due to common ownership and management.

About S Narendra :
S Narendra was formed as a Partnership firm in 1964 by Mr. Rajnikant Jhaveri. Mr Rajnikant Jhaveri has an experience of more than 60 years in the gems and jewellery industry. Subsequently, his son and grandson Mr Amish R. Jhaveri and Mr Saurin S. Jhaveri were inducted to the partnership firm. Currently the entire operations are being managed by Mr Amish and Mr Saurin. S Narendra has manufacturing operations based in Surat, Bhavnagar and Dahisar employing over 1000 skilled workers.

S Narendra purchases its major rough diamond requirements from another group company Sauraj Diamonds NV set up in Antwerp, Belgium. Sauraj Diamonds has been a Rio Tinto sight holder since 1996. Mr Sohil Jhaveri elder son of Mr Rajnikant Jhaveri based out of Belgium is responsible for the operations of the company.

For 2006-07 (refers to financial year, April 1 to March 31), the firm reported a net profit of Rs.28 million on sales of Rs.0.9 billion, as against a net profit of Rs. 25 million, on sales of Rs.0.9 billion during the previous year.