MIRA
INFORM REPORT
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Report Date : |
22.10.2008 |
IDENTIFICATION DETAILS
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Name : |
EMPEE DIAMONDS INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
26.01.2001 |
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Legal Form : |
Corporation For Profit |
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Line of Business : |
Wholesaler of Diamond. |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
GEOPOLITICS
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POLITICAL DATA |
ECONOMIC DATA |
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FORM OF GOVERNMENT ECONOMIC RISK |
Federal
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CURRENCY BRANCH SITUATION |
USD Satisfying |
IDENTIFICATION
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Company Name: |
EMPEE DIAMONDS INC. |
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Address: |
606 South Hill St., Suite
608, Los Angeles, CA
90014, USA |
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Phone: Facsimile: ID: State: Managers: |
+ 1 (213) 688-8704 + 1 (213) 688-8704 C2304011 California Suresh Bhojani, President |
Date founded: |
1/26/2001 Corporation For Profit N.A. N.A. 8 Employees |
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Legal form: |
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Stock: Value: |
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Staff: |
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Business: |
Wholesaler of diamond. |
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BANKS
Comerica Bank
Citibank
BUSINESS
Business & Operations:
Empee Diamonds Inc is in the wholesale and
distribution of diamonds.
The store sells rings, bracelets necklaces and similar products.
The company imports from Israel, South Africa and Europe.
Industry Overview:
The US jewelry industry
generates annual revenues of about $25 billion from 30,000 specialty stores.
Large companies include Zale, Tiffany, and Sterling
Jewelers. The industry is fragmented: the top 50 jewelry chains hold less than
half of the market.
Jewelry sales depend
partly on consumer income. Small jewelers can effectively compete with large
chains because price isn't the main factor determining sales. Profitability
depends on merchandising and effective marketing. Average industry revenue per
worker is about $160,000.
Jewelry is also
sold in department and discount stores, and by mass merchants. Because regular
gross margins are very high, often 50 percent, mass merchants have been able to
cut prices and take market share. Wal-Mart is the largest jewelry retailer in
the US.
SHAREHOLDERS – SUBSIDIARIES
– MANAGERS
The company is privately
held.
Suresh Bhojani
is the Owner and President of the Company
As far as we know he’s not
involved in other businesses in California.
FINANCIALS – COMMERCIAL TRENDS
AND FORECAST
The Company would not provide its balance sheets which it regards as
strictly confidential.
However our
financial sources provided us with the following figures.
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Fiscal Year USD |
12/31/2007 |
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Turnover
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1,420,000 |
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Operating
profit |
258,000 |
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Net
Income |
185,000 |
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Net
Worth |
500,000 |
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Liabilities |
112,000 |
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The turnover for the year 2006 was in the range of 1,300,000 USD, the gross
profit 210,000 USD, the net income 165,000 USD and te
liabilities 130,000 USD.
There are no active UCC
files listed with the Secretary of State of California in favour of banks,
leasing companies or financial institutions.
A litigation search did not show any
significant legal actions in the name of the subject firm.
RATING
Local credit bureau gave a medium credit rate.
The Company is in “good standing”.
This means that all local and federal taxes were paid on due date.
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The cash flow is good.
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Payments are made on a 43 days basis.
Our final opinion
This is a small business working on the local market.
We estimate that the Company doesn't present
high risk.
A credit line may be considered.
SUMMARY
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FINANCIAL SUMMARY |
DEBT COLLECTIONS
AND PAYMENTS |
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PROFITABILITY INDEBTNESS CASH |
Good Controlled Good |
PUBLIC PAYMENTS |
No Regular |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.29 |
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UK Pound |
1 |
Rs.80.40 |
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Euro |
1 |
Rs.63.35 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)