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Report Date : |
18.08.2012 |
IDENTIFICATION DETAILS
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Name : |
CHARM JEWELLERY LTD (CHARMS DIAMOND CENTRES) |
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Registered Office : |
140 Portland Street, Dartmouth, Nova Scotia B2Y 1J1 |
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Country : |
Canada |
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Date of Incorporation : |
01.09.1972 |
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Legal Form : |
Limited Company |
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Line of Business : |
Chain of jewelry retail stores. |
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No. of Employees : |
700 approx. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Canada |
A1 |
A1 |
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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 |
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POLITICAL DATA |
ECONOMIC DATA |
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Form of Government: Federal
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Currency: 100.00 CAD =
101.094 USD |
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Legal Name: |
CHARM JEWELLERY LTD (CHARMS DIAMOND CENTRES) |
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Trade Name: |
CHARMS DIAMOND CENTRES |
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Legal Address |
140 Portland Street, Dartmouth, Nova Scotia B2Y 1J1, Canada. |
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Operative Address |
140 Portland Street, Dartmouth, Nova Scotia B2Y 1J1, Canada. |
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Telephone: |
902-463-7177 |
ID : |
1049708 |
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Fax: |
902-466-5472 |
Legal Form: |
Limited Company |
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Email: |
Registered in: |
Nova Scotia, Canada. |
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Website: |
Date Created: |
1972 |
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Manager: |
Richard D. Calder, Founder, Chief Exec.
Officer and President |
Date Incorporated: |
September 1st, 1972 |
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Staff: |
700 approx. |
Stock: |
N/A |
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Value: |
N/A |
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Activity: |
Chain of jewelry retail stores. |
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Name of the Bank |
SCOTIA BANK |
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HISTORY |
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Charm Jewelry Ltd. was founded in 1972. Charm Diamond Centres has been chosen as one of Canada's Fifty Best
Managed Companies in 2007, 2008, 2009 and 2010. |
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PRINCIPAL ACTIVITY |
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Charm Jewelry Ltd. operates a chain of jewelry retail stores in
Canada. It does business as Charm Diamond Centres. |
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Products/Services description: |
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It offers diamond, gemstone, gold, silver, and pearl jewelry products,
which include Canadian diamonds, rings, earrings, necklaces, bracelets,
collections, watches, and gifts and products for various occasions; and
bridal and anniversary jewelry, pendants, and custom products. The company also provides corporate gift products, such as rings and
pins, watches, clocks, insignia jewelry, mugs, key-chains, pens, luggage
products, and electronics products. It also offers its products online. |
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Sales are: |
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Retail |
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Clients: |
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General Public. |
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Operations area: |
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National |
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The company imports from Worldwide, depending on the demand |
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The company does
not export |
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The subject employs 700 approx. employee(s) |
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Comments on staff: |
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The figures were not disclosed by the company. They were conciliated
with our private sources and from a particular analysis of the company´s
structure. |
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PAYMENTS |
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Regular. |
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LOCATION |
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Headquarters |
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The company is headquartered at: 140 Portland Street, Dartmouth, Nova
Scotia B2Y 1J1, Canada. |
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Comments on location: |
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Corporate Headquarters. |
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Branches: |
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The company operates nearly 70 stores across Alberta, New Brunswick, Newfoundland,
Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. |
- Manager - Related Companies
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Listed at the stock exchange: |
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NO |
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Shareholders Parent Company(ies): |
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This is a private company. The chain is owned and operated by the
Calder family. |
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Management: |
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Richard D. Calder, Founder, Chief Exec. Officer and President. |
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Related Companies: |
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The company operates several subsidiaries in Canada, including: *Charm Jewellery Ontario Ltd *Charm Jewellery Alberta Ltd |
- COMMERCIAL TRENDS AND FORECAST
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As a private company the subject does not publish any financial statements. |
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However our financial sources could
provide us with the following data. Those figures are estimates provided by
confidential banking and financial institutions working with the company. |
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Comments on the financial data: According to our
financial sources the company's annual revenue is in a range between CAD $50
million to CAD $100 million. |
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Legal Fillings |
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The sources consulted record no
detrimental legal or labor court information. |
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Local credit bureau gave a GOOD 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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Final Opinion |
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The subject is a big sized Canadian company
which has been operating since 1972. The company is active and in good standing
according to the Secretary of State of Nova Scotia. Its business structure is large, solid and
well established. It operates nearly 70 stores in Canada and employs approximately
700 people. It is the largest independently owned
Canadian jewellery retailer, and second-largest jewellery retailer in Canada. Charm Diamond Centres has been chosen as
one of Canada's Fifty Best Managed Companies in 2007, 2008, 2009 and 2010. |
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Profitability |
N.A. |
Public |
NO |
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Indebtedness |
CONTROLLED |
Payments |
REGULAR |
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Cash |
NORMAL |
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Person Interviewed |
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Ms. Allen Miller |
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Position |
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Accounting Representative |
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Comments |
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The contacted refused to provide information without knowing the name
of the inquiring party. |
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
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UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
<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 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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.