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MIRA
INFORM REPORT
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Report Date : |
15.11.2011 |
IDENTIFICATION DETAILS
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Name : |
UNITY DIAMOND DISTRIBUTORS (PTY) LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
04.01.1982 |
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Com. Reg. No.: |
1982/000009/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Import and sale of polished diamonds |
RATING & COMMENTS
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MIRAs Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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South Africa |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
COMPANY NAME
UNITY DIAMOND DISTRIBUTORS (PTY) LTD
company Address
PHYSICAL ADDRESS:
209 2nd Floor
PARKTOWN
POSTAL ADDRESS:
PARKLANDS
2121
TELEPHONE NUMBER: 011 484 2594
FAX NUMBER: 011
484 3219
SHAREHOLDERS
M GERSCHLOWITZ
B B SHER
ASSOCIATE COMPANIES
None
DIRECTORS
M GERSCHLOWITZ ID
No. 7208175204082
B B SHER ID
No. 5110235032002
BANKERS
STANDARD
DATE REGISTERED
4 January 1982
Registration Certificate Number: 1982/000009/07
VAT NUMBER
4550121067
TAX NUMBER
9629145849
MAJOR OPERATION
Import and sale of polished diamonds
MAJOR SUPPLIERS
The subject imports the diamonds from overseas dealing with local
clearing agent RAM INTERNATIONAL (also known as RAM COURIERS).
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Jewellery traders
AREA OF DISTRIBUTION AND SELLING
EXPORTS
Worldwide
TOTAL EMPLOYEES
10
OTHER PREMISES
None
OWNED OR LEASED
The premises are reported to be leased.
Full financial information was not forthcoming from respondents at the
company and outside authorities were unable to assist in this regard.
AUDITORS
GRUZD ZETS & COMPANY (Tel No. 011 442 3010)
YEAR END
FEBRUARY
INSURANCE BROKERS
ASSOCIATED INSURANCE BROKERS
TRADE REFERENCES MARCH 2009
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.a +1998 open limit R 30 000 - 30 days 30
days Good
R 40 000 (domestic)
1.b undisclosed R2 000 000 - current current
R6
000 000 (international)
TRADE REFERENCES JANUARY 2010
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.a 1998 declined figures 35
days 35 days Good
1.b 1998 undisclosed R 100 000- current current Very Good
R6 000
000
TRADE REFERENCES OCTOBER 2010
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 8 9 years R50 000+ R50 000 30
days 30 days Very Good
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1998 declined declined 30
days 30 days Excellent
COMMENTS
This is an established company that is not a general credit seeker
locally. The subject is considered equal
to its normal business engagements on a secured basis. The lack of financial information should be
borne in mind.
DIAMOND INDUSTRY
INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance focused strategies, modern management and technology.
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The diamond jewellery industry in India today may be more
than Rs 60000 mil and is rated amongst the fastest growing in the world.
Indi ranks third in the world in domestic diamond consumption.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under
DIAMOND
SAGA DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.85 |
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1 |
Rs.80.36 |
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Euro |
1 |
Rs.68.83 |
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 |
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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NB |
New Business |
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This score serves as a reference to assess SCs 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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.