MIRA INFORM REPORT

 

 

Report Date :

10.04.2012

 

IDENTIFICATION DETAILS

 

Name :

TRANSWORLD DIAMONDS PTY LTD

 

 

Registered Office :

21-25 Compton Street Adelaide South Australia 5000

 

 

Country :

Australia

 

 

Date of Incorporation :

16.10.2009

 

 

Com. Reg. No.:

140044408

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Importation of jewellery and watches

 

 

No. of Employees :

05

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

Payment Behaviour :

No Complaints

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

Australia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

 

Verified Address

 

Subject name                :           TRANSWORLD DIAMONDS PTY LTD

 

Business address          :           21-25 Compton Street

 

Town                             :           Adelaide

Province                        :           South Australia

Zip/postal code              :           5000

Country             :           Australia

Tel                                :           +61 8 81104110

Fax                               :           +61 8 81104199

 

 

Registered address        :           SHEARER & ELLISS

Level 1, 5-7 King William Road

 

Town                             :           Unley

Province                        :           South Australia

Zip/postal code              :           5061

Country                                                           :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          :   16/10/2009

 

Legal form                                 :   Australian Proprietary Company

 

Chief executive                          :   Albert Bensimon

 

Issued & paid up capital             :   AUD 1,000

Line of business             :   Importation of jewellery and watches.

Staff employed                           :   5 employees

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk                               :   Country risk is minimal

 

Operation trend                          :   Operational trend is in start-up phase

Management experience :   Management is modestly experienced

Financial performance                :   Financial performance is undetermined

Organisation structure                :   Organisational structure is acceptable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date            :   16/10/2009

 

Legal form                     :   Australian Proprietary Company

 

Registration no  Australian Company Number: 140044408

 

Registered authority       :   Australian Securities and Investments Commission

 

Fiscal/ Tax no                :   Australian Business Number: 35140044408

 

Registry status              :   Live/Active

 

Previous name               :   The Subject was previously known as TRANSWORLD DIAMOND PTY LTD and changed to the current style on 20-10-2009.

Change of legal form             :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                         :      Albert Bensimon

 

Designation                                              :            Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            :           Albert Bensimon

Designation                   :           Director and Company Secretary

Appointment date           :           16/10/09

Address                        :           151 Fisher Street

Malvern, SA 5061

Australia

Biography                      :           Born on 15-02-1948 in Cairo, Egypt.

Name                            :           Ian Colin Elliss

Designation                   :           Company Secretary

Appointment date           :           16/10/09

Address                        :           73 Conyngham Street

Frewville, SA 5063

Australia

 

Biography                      :           Born on 09-03-1957 in Broken Hill, New South Wales, Australia.

 

Staff employed                                                :                       5 employees

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital          :   AUD 1,000

 

No of shares                  :   900 Class A Shares / 100 Class B Shares

 

Share par value              :   AUD 1

 

Issued capital                :   AUD 1,000

 

Paid up capital                                                :   AUD 1,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     :   Full List

 

Composition

Shareholder name          :   SHIELS JEWELLERS (SA) PTY LTD

Address                        :   21-25 Compton Street

Adelaide, SA 5000

Australia

No. of shares                 :   900 Class A Shares

Shareholder name          :   GOLD DISC PTY. LTD.

Address                        :   21-25 Compton Street

Adelaide, SA 5000

Australia

 

No. of shares                          :   100 Class B Shares


RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                :   SHIELS JEWELLERS (SA) PTY LTD

Affiliation type    :   Parent Company

Address            :   21-25 Compton Street

Adelaide, SA 5000

Australia

 

Comments        :   Own and operate 33 Shiels jewellery retail stores.

 

 

Name                :   GOLD DISC PTY. LTD.

Affiliation type    :   Shareholder

Address            :   21-25 Compton Street

Adelaide, SA 5000

Australia

 

Name                                      :   TRANSWORLD IMPORTS PTY. LTD.

Affiliation type    :   Associate

Address            :   21-25 Compton Street

Adelaide, SA 5000

Australia

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    :   National Australia Bank Limited

 

Address            :   Australia

 

Account details  :   Current Account

 

Comments        :   It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

 

Mortgages     :   None reported.

 

Legal Fillings

Bankruptcy fillings          :   None reported.

Court judgements           :   None reported.

Tax liens                       :   None reported.

Others                          :   None reported.

FINANCIAL DATA

 

Description

 

Comments        :   The representative contacted declined to provide any financial information until the inquiring party details are revealed.

 

The Subject is classified as a small proprietary company by the Australian Securities & Investments Commission hence is not required to disclose their financial statement.

 

A proprietary company is defined as small for a financial year if it satisfies at least two of the following:

- The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the end of the financial year.

 

 

OPERATION DETAILS

 

Main activities    :   The Subject is engaged in importation of jewellery and watches for the

Shiels Jewellers retail operations.

 

Purchases

 

International       :   Italy, Switzerland, Germany, Spain, Belgium, England, United States, India, Thailand, China

 

Sales

 

Local                :   Yes

 

International       :   No exports.

 

 

Property & Assets

 

Premises          :   The Subject operates from premises located at the verified heading address consisting of administrative office.

Branches        :   None reported.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Reserve Bank of Australia

Reserve of foreign exchange & gold         :   US$ 43.879 billion

Gross domestic product – GDP               :   US$ 1.448 trillion

 

GPP (Purchasing power parity)               :   918.529 billion of International dollars

 

GDP per capita - current prices               :   US$ 64,351

 

GDP - composition by sector                  :   agriculture: 4.1% industry: 26% services: 70%

 

Inflation                                                 :   2008: 4.4%

2009: 1.8%

2010: 2.8%

 

Unemployment rate                                :   2008: 4.2%

2009: 5.6%

2010: 5.2%

 

Public debt

(General Government gross debt as a % GDP) :   2008: 11.6%

2009: 17.6%

2010: 22.3%

 

Government bond ratings                        :   Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares      :   US$1.258 trillion

 

Largest companies in the country            :   Westpac Banking Group (Major Banks), BHP Billiton (Diversified Metals & Mining), Commonwealth Bank (Major Banks), National Australia Bank (Major Banks), ANZ Banking (Major Banks), Telstra (Telecommunications services), Wesfarmers (Food Retail)

 

Trade & Competitiveness Overview

 

Total exports                 :   US$210.7 billion

 

Exports commodities     :   coal, iron ore, gold, meat, wool, alumina, wheat

 

Total imports                 :   US$187.2 billion

 

Imports commodities      :   machinery and transport equipment, computers and office machines, telecommunication equipment and parts, crude oil and petroleum products

Export - major partners   :   Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

 

Import - major partners   :   China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%, UK 4.3%, Thailand 4.2%

 

FDI Inflows                    :   2008: US$46,722 million

2009: US$22,572 million

2010: US$32,472 million

 

FDI Outflows                  :   2008: US$32,819 million

2009: US$18,426 million

2010: US$26,431 million

 

 

Best countries for doing business:   10 out of 183 countries

 

Global competitiveness ranking   :   20 (ranking by country on a basis of 142, the first is the best)

 

 

Country and Population Overview

 

Total population :   22.23 million

Total area          :   7,692,024 km2

Capital              :   Canberra

Currency         :   Australian dollars (AUD)

Internet users as % of total population:   76.00%

 

 

PAYMENT HISTORY

 

 

Purchase Term

 

International                                       :   L/C, Cash against document, Telegraphic transfer, Credit up to 120 days

 

 

Sales Term

 

Local                                                 :   Credit 90-150 days

 

Trade Reference/ Payment

Behaviour

 

Comments                                         :   As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

 

Investigation Note

 

Sources                                             :   Interviews and material provided by the Subject

 

:   Other official and local business sources

 

 

 


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.51.28

UK Pound

1

Rs.81.38

Euro

1

Rs.67.01

 

 

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.