MIRA INFORM REPORT

 

 

Report Date :

05.12.2012

 

IDENTIFICATION DETAILS

 

Name :

G. B. S.R.L.

 

 

Registered Office :

Via Gramsci Int. 7, 56,

35010 – Cadoneghe (PD)

 

 

Country :

Italy

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.07.1985

 

 

Com. Reg. No.:

PD060-24122 of since 19/02/1996

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Retail sale of watches and jewellery in specialised stores

 

 

No. of Employees :

01 to 05 employees

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Italy

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ITALY - ECONOMIC OVERVIEW

 

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but exceptionally high public debt burdens and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 120% of GDP in 2011, and borrowing costs on sovereign government debt have risen to record levels. During the second half of 2011 the government passed a series of three austerity packages to balance its budget by 2013 and decrease its public debt burden. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to address Italy's long-standing structural impediments to growth, such as an inflexible labor market and widespread tax evasion. The international financial crisis worsened conditions in Italy''s labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2011, but in the longer-term Italy''s low fertility rate and quota-driven immigration policies will increasingly strain its economy. The euro-zone crisis along with Italian austerity measures have reduced exports and domestic demand, slowing Italy''s recovery. Italy''s GDP is still 5% below its 2007 pre-crisis level.

 

Source : CIA

 

Company name & address 

 

G. B. s.r.l.

 

Via Gramsci Int. 7, 56

 

35010 - Cadoneghe  (PD) -IT-

 

 

Summary

 

Fiscal Code

:

01277230288

Legal Form

:

Limited liability company

start of Activities

:

01/02/1986

Equity

:

750.000

Turnover Range

:

1.000.000/1.250.000

Number of Employees

:

from 1 to 5

 

 

Activity

 

Retail sale of watches and jewellery in specialised stores



Legal Data

 

Legal Form : Limited liability company

Fiscal Code : 01277230288

 

Foreign Trade Reg. no. : PD017929 since 17/01/1992

 

Foreign Trade Reg. no. : 017929 of since 17/01/1992

 

Foreign Trade Reg. no. : 546955 of

 

Chamber of Commerce no. : 248029 of

 

Chamber of Commerce no. : 194569 of since 04/09/1985

 

Firms' Register : PD060-24122 of since 19/02/1996

 

V.A.T. Code : 01277230288

 

R. E. C. no. : 39101 of

 

R. E. C. no. : 0039101 of

 

Establishment date

: 11/07/1985

Start of Activities

: 01/02/1986

Legal duration

: 31/12/2030

Nominal Capital

: 26.000

 

Subscribed Capital

: 26.000

 

Paid up Capital

: 26.000

 



Members

 

 

Ghiya

Brijesh Chandra

 

 

 

Born in Indindia

( )

on 30/08/1953

- Fiscal Code : GHYBJS53M30Z222F

 

 

 

Residence:

 

G. Franco

, 2

- 35010

Cadoneghe

(PD)

- IT -

 

Position

Since

Shares Amount

% Ownership

Sole Director

01/04/2004

 

 

 

 

No Prejudicial events are reported

 

 

No Protests registered



Companies connected to members *

 

*checkings have been performed on a national scale.

In this module the companies in which members hold/held positions are listed.

 

The Members of the subject firm are not reported to be Members in other companies.



Capital Shareholders

 

Shareholders' list as at date of data collection:

 

Firm's Style / Name

Seat / Residence

Fiscal Code

Owned Shares

% Ownership

Ghiya Brijesh Chandra

Cadoneghe - IT -

GHYBJS53M30Z222F

1.300 .Eur

5,00

Ghiya Namrata

 

GHYNRT62C49Z222O

24.700 .Eur

95,00



Direct Participations

 

The Company under review has no participations in other Companies.



Firm's location and structure

 

In order to carry out its activities the firm uses the following locations:

 

-

Legal and operative seat

 

 

 

 

 

 

 

Gramsci Int. 7

, 56

- 35010

- Cadoneghe

(PD)

- IT -

 

 

 

 

PHONE

: 0493870024

 

-

Branch

(Branch)

since 12/12/2011

 

 

 

 

 

 

Piacenza

, 2

- 15048

- Valenza

(AL)

- IT -

 

 

 

 

Employees

: 4

 

Fittings and Equipment for a value of 28.000

Eur

 

Stocks for a value of 2.410.000

Eur

 

 

The firm operates abroad as importer..

To purchase foreign products the firm uses the following channels :

- trading companies

 

 

Historical Information and/or Firm's Status

 

CHANGES TO THE LEGAL FORM:

 

Former legal form

New legal form

Changement Date

Limited partnership

Limited liability company

15/10/1992


Protests

 

Protests checking on the subject firm has given a negative result.



Data Base Prejudicial Events Search

 

Search performed on a National Scale

 

 

 

Prejudicial Events Search Result: NEGATIVE

 

Search performed on a specialized data base.



Legal Procedures

 

None reported, standing to the latest received edition of the Official Publications.

Financial and Economical Analysis

 

Subject is active since 1986

An eco-fin analysis has been made on the base od the b/s fo the years 2009, 2010 and 2011.

During the last years, it recorded positive net results (r.o.e. 3,86% in 2011) but without a significant increase in the turnover.

The operating result in 2011 was positive (0,53%) falling within the field's average.

The amount of the operating result for the year 2011 is of Eur. 19.234 with a -73,51% fall as against the year 2010.

The G.O.M. amounted to Eur. 28.976 with a -64,87% fall.

The ratio between debts and total assets is fairly high, as it comes out from the indebtedness (4,43) with an upward trend.

The management generated equity capital for an amount of Eur. 651.035 on stable levels.

Total indebtedness totalled Eur. 2.937.117, while during the financial year 2010 the amount was equal to Eur. 2.199.366.

Current liquid assets is positive.

As far as the cash flow is concerned during the latest financial year it amounted to Eur. 29.361

During 2011 financial year labour costs amounted to Eur. 107.625, with a 5,55% incidence on production costs. , whereas 5,5% is the incidence on sales revenues.

The financial charges are lower than the financial incomes.


Financial Data

 

 

 

Complete balance-sheet for the year

31/12/2011

(in Eur

x 1)

 

Item Type

Value

Sales

1.957.955

Profit (Loss) for the period

25.128

 

 

 

Complete balance-sheet for the year

31/12/2010

(in Eur

x 1)

 

Item Type

Value

Sales

1.932.132

Profit (Loss) for the period

29.341

 

 

 

Complete balance-sheet for the year

31/12/2009

(in Eur

x 1)

 

Item Type

Value

Sales

1.219.232

Profit (Loss) for the period

24.445

 

 

 

Complete balance-sheet for the year

31/12/2008

(in Eur

x 1)

 

Item Type

Value

Sales

1.757.080

Profit (Loss) for the period

31.702

 

 

 

Complete balance-sheet for the year

31/12/2007

(in Eur

x 1)

 

Item Type

Value

Sales

2.017.157

Profit (Loss) for the period

56.860

 

Balance Sheets

From our constant monitoring of the relevant Public Administration offices, no more recent balance sheets result to have been filed.

 

- Balance Sheet as at 31/12/2011 - 12 Mesi - Currency: - Amounts x 1

 

- Balance Sheet as at 31/12/2010 - 12 Mesi - Currency: - Amounts x 1

 

- Balance Sheet as at 31/12/2009 - 12 Mesi - Currency: - Amounts x 1

 

Years

2011

2010

2009

BALANCE SHEET ACCOUNTS

 

ASSETS

 

 

 

CREDITS VS PARTNERS

 

 

 

. Deposits not yet withdrawn

 

 

 

. Deposits already withdrawn

 

 

 

Total credits vs partners

 

 

 

FIXED ASSETS

 

 

 

. INTANGIBLE FIXED ASSETS

 

 

 

. . Start-up and expansion expenses

 

 

 

. . Research,develop. and advert.expens.

 

 

 

. . Industrial patent rights

 

 

 

. . Concessions,licenses,trademarks,etc.

 

 

 

. . Goodwill

 

 

 

. . Assets in formation and advance paymen.

 

 

 

. . Other intangible fixed assets

 

 

 

. Total Intangible Fixed Assets

65

 

 

. TANGIBLE FIXED ASSETS

 

 

 

. . Real estate

 

 

 

. . Plant and machinery

 

 

 

. . Industrial and commercial equipment

 

 

 

. . Other assets

 

 

 

. . Assets under construction and advances

 

 

 

. Total Tangible fixed assets

13.554

8.193

11.235

. FINANCIAL FIXED ASSETS

 

 

 

. . Equity investments

 

 

 

. . . Equity invest. in subsidiary companies

 

 

 

. . . Equity invest. in associated companies

 

 

 

. . . Equity invest. in holding companies

 

 

 

. . . Equity invest. in other companies

 

 

 

. . Financial receivables

833

 

 

. . . . Within 12 months

833

 

 

. . . . Beyond 12 months

 

 

 

. . . Receivab due from subsidiaries

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . . Receivables due from assoc.comp.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . . Receivables due from holding comp.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . . Receivables due from third parties

833

 

 

. . . . Within 12 months

833

 

 

. . . . Beyond 12 months

 

 

 

. . Other securities

 

 

 

. . Own shares

 

 

 

. . . Total nominal value

 

 

 

. Total financial fixed assets

833

 

 

Total fixed assets

14.452

8.193

11.235

CURRENT ASSETS

 

 

 

. INVENTORIES

 

 

 

. . Raw materials and other consumables

 

 

 

. . Work in progress and semimanufactured

 

 

 

. . Work in progress on order

 

 

 

. . Finished goods

 

 

 

. . Advance payments

 

 

 

. Total Inventories

2.414.224

1.804.715

2.201.308

. CREDITS NOT HELD AS FIXED ASSETS

 

 

 

. . Within 12 months

1.135.930

942.172

596.511

. . Beyond 12 months

 

 

 

. . Trade receivables

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Receivables due from subsid. comp.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Receivables due from assoc. comp.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Receivables due from holding comp.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Fiscal Receivables

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Receivables for anticipated taxes

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Receivables due from third parties

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. Total Credits not held as fixed assets

1.135.930

942.172

596.511

. FINANCIAL ASSETS

 

 

 

. . Equity invest. in subsidiary comp.

 

 

 

. . Equity invest. in associated companies

 

 

 

. . Equity invest. in holding companies

 

 

 

. . Other equity investments

 

 

 

. . Own shares

 

 

 

. . . Total nominale value

 

 

 

. . Other securities

 

 

 

. Total Financial Assets

 

 

 

. LIQUID FUNDS

 

 

 

. . Bank and post office deposits

 

 

 

. . Checks

 

 

 

. . Banknotes and coins

 

 

 

. Total Liquid funds

52.518

91.994

52.186

Total current assets

3.602.672

2.838.881

2.850.005

ADJUSTMENT ACCOUNTS

 

 

 

. Discount on loans

 

 

 

. Other adjustment accounts

 

8.886

8.416

Total adjustments accounts

656

8.886

8.416

TOTAL ASSETS

3.617.780

2.855.960

2.869.656

 

 

 

 

LIABILITIES

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

. Capital stock

26.000

26.000

26.000

. Additional paid-in capital

 

 

 

. Revaluation reserves

18.298

 

 

. Legal reserve

26.493

26.493

25.271

. Reserve for Own shares

 

 

 

. Statute reserves

 

 

 

. Other reserves

435.009

 

 

. Accumulated Profits (Losses)

120.107

555.115

531.892

. Profit( loss) of the year

25.128

29.341

24.445

. Advances on dividends

 

 

 

. Partial loss of the year Coverage

 

 

 

Total Stockholders'Equity

651.035

636.949

607.608

RESERVES FOR RISKS AND CHARGES

 

 

 

. . Reserve for employee termination indem.

 

 

 

. . Taxation fund, also differed

 

 

 

. . Other funds

 

 

 

Total Reserves for Risks and Charges

8.908

33

 

Employee termination indemnities

12.377

19.612

9.873

ACCOUNTS PAYABLE

 

 

 

. . . . Within 12 months

2.937.117

2.199.366

2.252.175

. . . . Beyond 12 months

 

 

 

. . Bonds

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Convertible bonds repayable

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to shareholders for financing

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to banks

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to other providers of finance

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Advances from customers

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Trade payables

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Securities issued

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to subsidiary companies

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to associated companies

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to holding companies

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to the tax authorities

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Due to social security and welfare inst.

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

. . Other payables

 

 

 

. . . . Within 12 months

 

 

 

. . . . Beyond 12 months

 

 

 

Total accounts payable

2.937.117

2.199.366

2.252.175

ADJUSTMENT ACCOUNTS

 

 

 

. Agio on loans

 

 

 

. Other adjustment accounts

 

 

 

Total adjustment accounts

8.343

 

 

TOTAL LIABILITIES

3.617.780

2.855.960

2.869.656

 

 

 

 

 

 

MEMORANDUM ACCOUNTS

 

Third party goods

 

 

 

Investment accounts

 

 

 

Risk accounts

 

 

 

Civil and fiscal norms relation

 

 

 

 

 

 

 

 

 

PROFIT AND LOSS ACCOUNTS

 

VALUE OF PRODUCTION

 

 

 

. Revenues from sales and services

1.957.955

1.932.132

1.219.232

. Changes in work in progress

 

 

 

. Changes in semi-manufact. products

 

 

 

. Capitalization of internal work

 

 

 

. Other income and revenues

 

 

 

. . Contributions for operating expenses

 

 

 

. . Different income and revenues

 

 

 

Total value of production

1.957.955

1.932.132

1.219.232

PRODUCTION COSTS

 

 

 

. Raw material,other materials and consum.

2.157.051

1.056.757

458.155

. Services received

238.156

280.511

265.755

. Leases and rentals

9.002

4.983

5.474

. Payroll and related costs

107.625

95.794

78.796

. . Wages and salaries

82.385

67.819

62.890

. . Social security contributions

19.402

18.169

15.906

. . Employee termination indemnities

5.838

9.786

 

. . Pension and similar

 

 

 

. . Other costs

 

20

 

. Amortization and depreciation

4.233

9.877

7.976

. . Amortization of intangible fixed assets

15

 

 

. . Amortization of tangible fixed assets

4.218

5.261

5.051

. . Depreciation of tangible fixed assets

 

 

 

. . Writedown of current receiv.and of liquid

 

4.616

2.925

. Changes in raw materials

-609.509

396.592

425.330

. Provisions to risk reserves

 

 

 

. Other provisions

5.509

 

 

. Other operating costs

26.654

15.006

5.377

Total production costs

1.938.721

1.859.520

1.246.863

Diff. between value and cost of product.

19.234

72.612

-27.631

FINANCIAL INCOME AND EXPENSE

 

 

 

. Income from equity investments

 

 

 

. . In subsidiary companies

 

 

 

. . In associated companies

 

 

 

. . In other companies

 

 

 

. Other financial income

14.771

113

83

. . Financ.income from receivables

 

 

 

. . . Towards subsidiary companies

 

 

 

. . . Towards associated companies

 

 

 

. . . Towards holding companies

 

 

 

. . . Towards other companies

 

 

 

. . Financ.income from secur. t.f.assets

 

 

 

. . Financ.income from secur. cur.assets

 

 

 

. . Financ.income other than the above

14.771

 

83

. . . - Subsidiary companies

 

 

 

. . . - Associated companies

 

 

 

. . . - Holding companies

 

 

 

. . . - Other companies

14.771

 

 

. Interest and other financial expense

 

-40.321

57.128

. . Towards subsidiary companies

 

 

 

. . Towards associated companies

 

 

 

. . Towards holding companies

 

 

 

. . Towards other companies

 

 

68.744

Total financial income and expense

14.771

-40.208

57.211

ADJUSTMENTS TO FINANCIAL ASSETS

 

 

 

. Revaluations

 

 

 

. . Of equity investments

 

 

 

. . Of financ.fixed assets not repres.E.I.

 

 

 

. . Of securities incl.among current assets

 

 

 

. Devaluation

 

 

 

. . Of equity investments

 

 

 

. . Of financial fixed assets (no equity inv)

 

 

 

. . Of securities included among current ass

 

 

 

Total adjustments to financial assets

 

 

 

EXTRAORDINARY INCOME AND EXPENSE

 

 

 

. Extraordinary income

 

2.406

301

. . Gains on disposals

 

 

300

. . Other extraordinary income

 

2.406

1

. Extraordinary expense

-2

 

 

. . Losses on disposals

 

 

 

. . Taxes relating to prior years

 

 

 

. . Other extraordinary expense

-2

 

 

Total extraordinary income and expense

-2

2.406

301

Results before income taxes

34.003

34.810

29.881

. Taxes on current income

8.875

5.469

5.436

. . current taxes

8.875

5.469

5.436

. . differed taxes(anticip.)

 

 

 

. Net income for the period

25.128

29.341

24.445

. Adjustments in tax regulations pursuance

 

 

 

. Provisions in tax regulations pursuance

 

 

 

. Profit (loss) of the year

25.128

29.341

24.445

 

 

RATIOS

Value Type

as at 31/12/2011

as at 31/12/2010

as at 31/12/2009

Sector Average

COMPOSITION ON INVESTMENT

 

 

 

 

 

Rigidity Ratio

Units

0,00

0,00

0,00

0,13

Elasticity Ratio

Units

1,00

0,99

0,99

0,85

Availability of stock

Units

0,67

0,63

0,77

0,54

Total Liquidity Ratio

Units

0,33

0,36

0,23

0,22

Quick Ratio

Units

0,01

0,03

0,02

0,04

COMPOSITION ON SOURCE

 

 

 

 

 

Net Short-term indebtedness

Units

4,43

3,31

3,62

4,36

Self Financing Ratio

Units

0,18

0,22

0,21

0,14

Capital protection Ratio

Units

0,92

0,91

0,92

0,56

Liabilities consolidation quotient

Units

0,00

0,01

0,00

0,15

Financing

Units

4,51

3,45

3,71

5,86

Permanent Indebtedness Ratio

Units

0,18

0,23

0,22

0,31

M/L term Debts Ratio

Units

0,00

0,01

0,00

0,10

Net Financial Indebtedness Ratio

Units

n.c.

n.c.

n.c.

0,98

CORRELATION

 

 

 

 

 

Fixed assets ratio

Units

45,90

80,14

54,96

2,02

Current ratio

Units

1,23

1,29

1,27

1,15

Acid Test Ratio-Liquidity Ratio

Units

0,40

0,47

0,29

0,36

Structure's primary quotient

Units

45,05

77,74

54,08

1,06

Treasury's primary quotient

Units

0,02

0,04

0,02

0,07

Rate of indebtedness ( Leverage )

%

555,70

448,38

472,29

707,22

Current Capital ( net )

Value

665.555

639.515

597.830

61.776

RETURN

 

 

 

 

 

Return on Sales

%

1,50

2,03

2,66

2,62

Return on Equity - Net- ( R.O.E. )

%

3,86

4,61

4,02

6,19

Return on Equity - Gross - ( R.O.E. )

%

5,22

5,47

4,92

15,72

Return on Investment ( R.O.I. )

%

0,53

2,54

-0,96

3,25

Return/ Sales

%

0,98

3,76

-2,27

2,94

Extra Management revenues/charges incid.

%

130,64

40,41

n.c.

31,16

Cash Flow

Value

29.361

39.218

32.421

20.178

Operating Profit

Value

19.234

72.612

-27.631

23.558

Gross Operating Margin

Value

28.976

82.489

-19.655

40.605

MANAGEMENT

 

 

 

 

 

Credits to clients average term

Days

n.c.

n.c.

n.c.

26,46

Debts to suppliers average term

Days

n.c.

n.c.

n.c.

152,76

Average stock waiting period

Days

443,89

336,26

649,98

158,60

Rate of capital employed return ( Turnover )

Units

0,54

0,68

0,42

1,10

Rate of stock return

Units

0,81

1,07

0,55

2,21

Labour cost incidence

%

5,50

4,96

6,46

10,29

Net financial revenues/ charges incidence

%

0,75

-2,08

4,69

-1,31

Labour cost on purchasing expenses

%

5,55

5,15

6,32

10,25

Short-term financing charges

%

n.c.

1,83

n.c.

2,10

Capital on hand

%

184,77

147,81

235,37

90,76

Sales pro employee

Value

652.652

966.066

609.616

267.102

Labour cost pro employee

Value

35.875

47.897

39.398

30.754

 

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.54.95

UK Pound

1

Rs.88.42

Euro

1

Rs.71.71

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.