MIRA INFORM REPORT

 

 

Report Date :           

15.10.2011

 

IDENTIFICATION DETAILS

 

Name :

ARODIAM MANUFACTURING CO.

 

 

Registered Office :

Pelikaanstraat 78, Antwerpen, 2018

 

 

Country :

Belgium

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishment :

1988

 

 

Com. Reg. No.:

434802993

 

 

Legal Form :

Private Subsidiary Company

 

 

Line of Business :

Diamonds

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Usually Correct 

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

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Belgium

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

Arodiam Manufacturing Co.

Pelikaanstraat 78

Antwerpen, 2018

Belgium

Tel:       03 226 40 44

Fax:      03 225 27 93

 

 

Synthesis     

 

Employees:                  33

Company Type:            Private Subsidiary

Corporate Family:          3 Companies

Ultimate Parent:            Amc Belgium

Incorporation Date:         1988   

Financials in:                 USD (Millions)

Fiscal Year End:            31-Dec-2009

Reporting Currency:       Euro

Annual Sales:               138.0  1

Total Assets:                105.9

 

 

Business Description     

 

Diamonds

 

Industry

Industry            Retail (Department and Discount)

ANZSIC 2006:    373 - Furniture, Floor Covering and Other Goods Wholesaling

NACE 2002:      5156 - Wholesale of other intermediate products

NAICS 2002:     4239 - Miscellaneous Durable Goods Merchant Wholesalers

UK SIC 2003:    5156 - Wholesale of other intermediate products

US SIC 1987:    509 - Miscellaneous Durable Goods

 

           


 

Key Executives   

 

Name

Title

Henri Gutfreund

Managing Director,Shareholders' Representative,Partner

Mai Lionel Ngoc

Partner

David Parnas

Administrator,Partner

Lionel Ngoc Mai

Administrator

Willy De Neef

Representative/Auditor

 

Registered No.(VAT): 434802993

 

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7190468

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.6969855

 

 

Corporate Overview

 

Location

Pelikaanstraat 78

Antwerpen, 2018

Belgium

Tel:       03 226 40 44

Fax:      03 225 27 93

           

Sales EUR(mil):             99.2

Assets EUR(mil):           73.8

Employees:                   33

Fiscal Year End:            31-Dec-2009

Industry:                        Retail (Department and Discount)

Incorporation Date:         1988

Company Type:             Private Subsidiary

Quoted Status:              Not Quoted

Registered No.(VAT):     434802993

 

Managing Director,

Shareholders'

Representative,

Partner:                         Henri Gutfreund

 

Contents

·         Industry Codes

·         Business Description

·         Financial Data

Industry Codes

 

ANZSIC 2006 Codes:

2591     -          Jewellery and Silverware Manufacturing

373       -          Furniture, Floor Covering and Other Goods Wholesaling

 

NACE 2002 Codes:

3622     -          Manufacture of jewellery and related articles not elsewhere classified

5156     -          Wholesale of other intermediate products

 

NAICS 2002 Codes:

4239     -          Miscellaneous Durable Goods Merchant Wholesalers

339911  -          Jewelry (except Costume) Manufacturing

 

US SIC 1987:

3915     -          Jewelers' Findings and Materials, and Lapidary Work

509       -          Miscellaneous Durable Goods

 

UK SIC 2003:

5156     -          Wholesale of other intermediate products

3622     -          Manufacture of jewellery and related articles not elsewhere classified

 

Business Description

Diamonds

 

Financial Data

Financials in:

EUR(mil)

 

Revenue:

99.2

Assets:

73.8

Current Assets:

72.9

 

Fixed Assets:

0.9

 

Total Liabilities:

73.8

 

Issued Capital:

9.7

 

Net Worth:

9.7

 

 

 

Date of Financial Data:

31-Dec-2009

 

1 Year Growth

NA

NA

 

 

 

Corporate Family

Corporate Structure News:

 

Arodiam Manufacturing Co.

Total Corporate Family Members: 3 

 

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

 

Amc Belgium

Parent

 

 

 

 

 

 

Arodiam Manufacturing Co.

Subsidiary

Antwerpen

Belgium

Retail (Department and Discount)

138.0

33

 

Graphische Verwerking Kempen

Subsidiary

Arendonk

Belgium

Printing Services

0.0

9

 

 

Executive report

 

Executives

 

Name

Title

Function

 

Henri Gutfreund

 

Managing Director,Shareholders' Representative,Partner

Managing Director

 

Lionel Ngoc Mai

 

Administrator

Administration Executive

 

David Parnas

 

Administrator,Partner

Administration Executive

 

Willy De Neef

 

Representative/Auditor

Accounting Executive

 

Mai Lionel Ngoc

 

Partner

Partner

 

Shimson Parnas

 

Partner

Partner

 

Avigdor Parnas

 

Partner

Partner

 

Eddy Emmanuel Jacques Vleeschdrager

 

Partner

Partner

 

 

 

Annual Profit & Loss

 

 

 

 

31-Dec-2009

31-Dec-2008

31-Dec-2007

Period Length

52 Weeks

52 Weeks

52 Weeks

Filed Currency

EUR

EUR

EUR

Exchange Rate (Period Average)

0.719047

0.683679

0.730637

Consolidated

No

No

No

 

 

 

 

    Turnover

138.0

182.6

172.1

    Other Operating Income

0.3

0.2

0.3

Operating Income

138.3

182.8

172.4

        Purchases

155.9

154.4

168.4

        Increase or Decrease in Stocks

-23.1

20.8

-6.3

    Raw Materials, Consumables, and Goods for Release

132.8

175.1

162.1

    Services and Sundry Goods

1.9

2.4

2.6

    Remuneration, Social Security Charges, and Pensions

1.4

1.5

1.4

    Depreciation of and Other Amounts Written Off of Formation Expense, Intangible and Tangible Fixed Assets

0.4

0.5

0.3

    Increase or Decrease in Amounts Written Off Stocks, Orders, and Trade Debtors

-

-

1.5

    Other Operating Charges

0.0

0.0

0.0

Operating Charges

136.5

179.5

168.0

    Other Financial Income

0.0

35.1

0.0

Financial Income

0.0

35.1

0.0

    Interest and Other Debt Charges

1.5

3.4

3.5

    Other Financial Charges

0.2

34.8

0.1

Financial Charges

1.7

38.2

3.6

    Gain on Disposal of Fixed Assets

0.0

0.0

0.0

    Other Extraordinary Income

-

0.0

0.0

Extraordinary Income

0.0

0.0

0.0

    Loss on Disposal of Fixed Assets

-

-

0.0

Extraordinary Charges

-

-

0.0

    Income Taxes

-

0.1

0.1

    Adjustment of Income Taxes and Write-Back of Tax Provisions

0.0

-

-

Income Taxes

0.0

0.1

0.1

        To the Legal Reserve

0.0

0.0

0.0

        To Other Reserves

-

-

0.7

    Transfers to Capital and Reserves

0.0

0.0

0.7

    Employees

33

39

33

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

31-Dec-2009

31-Dec-2008

31-Dec-2007

Filed Currency

EUR

EUR

EUR

Exchange Rate

0.696986

0.719399

0.683971

Consolidated

No

No

No

 

 

 

 

    Intangible Assets

0.0

0.0

0.0

        Plant, Machinery, and Equipment

0.9

1.1

0.8

        Furniture and Vehicles

0.3

0.4

0.3

        Other Tangible Assets

0.1

0.1

0.2

    Tangible Assets

1.3

1.6

1.2

        Amounts Receivable and Cash Guarantees

0.0

0.0

0.0

        Other Capital Assets

0.0

0.0

0.0

    Capital Assets

0.0

0.0

0.0

Fixed Assets

1.3

1.6

1.2

        Goods Purchased for Resale

49.8

26.1

48.2

        Stocks

49.8

26.1

48.2

    Inventory and Orders in Progress

49.8

26.1

48.2

        Trade Debtors

53.4

68.9

72.1

        Other Amounts Receivable

0.1

0.0

0.1

    Amounts Receivable Within One Year

53.4

69.0

72.2

    Liquid Assets

1.4

1.4

0.1

    Adjustment Accounts

0.0

0.1

0.1

Current Assets

104.6

96.6

120.6

Total Assets

105.9

98.2

121.8

        Issued Capital

13.9

13.9

14.6

    Capital

13.9

13.9

14.6

        Legal Reserve

0.1

0.1

0.1

        Other

20.8

20.9

21.9

        Reserves Not Available for Distribution

20.8

20.9

21.9

        Reserves Available for Distribution

0.7

0.7

0.7

    Reserves

21.6

21.7

22.8

Capital and Reserves

37.6

37.5

39.4

        Other Loans

11.7

7.3

6.6

        Financial Debts

11.7

7.3

6.6

    Amounts Due After More Than One Year

11.7

7.3

6.6

        Current Portion of Amounts Payable After More Than One Year

-

-

0.3

        Credit Institutions

43.0

39.6

48.8

        Financial Debts

43.0

39.6

48.8

        Suppliers

13.1

12.5

25.9

        Trade Debts

13.1

12.5

25.9

        Taxes

0.0

0.0

0.0

        Remuneration and Social Security

0.1

0.2

0.1

        Taxes, Wages, and Social Security

0.2

0.2

0.1

        Other Amounts Payable

0.3

1.0

0.1

    Amounts Payable Within One Year

56.4

53.3

75.2

    Adjustment Accounts

0.2

0.1

0.7

Creditors

68.3

60.7

82.5

Total Liabilities + Shareholders' Equity

105.9

98.2

121.8

 

DIAMOND INDUSTRY – INDIA

 

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.07

UK Pound

1

Rs.77.42

Euro

1

Rs.67.72

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.