MIRA INFORM REPORT

 

 

Report Date :

17.12.2012

 

IDENTIFICATION DETAILS

 

Name :

GOVIND JAIN E.K.

 

 

Registered Office :

Mainzer Str. 57-59, D 55743 Idar-Oberstein

 

 

Country :

Germany

 

 

Date of Incorporation :

15.02.1980

 

 

Com. Reg. No.:

HRA 11356

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Wholesaler of clocks and watches and jewelry

 

 

No. of Employees :

08 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)

Germany

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

germany - ECONOMIC OVERVIEW

 

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.0% in 2011. GDP contracted 5.1% in 2009 but grew by 3.6% in 2010, and 2.7% in 2011. The recovery was attributable primarily to rebounding manufacturing orders and exports - increasingly outside the Euro Zone. Germany's central bank projects that GDP will grow 0.6% in 2012, a reflection of the worsening euro-zone financial crisis and the financial burden it places on Germany as well as falling demand for German exports. Domestic demand is therefore becoming a more significant driver of Germany's economic expansion. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduce the deficit to 1.7% in 2011, below the EU's 3% limit. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its energy and 46% of its base-load electrical production.

 

 

 

Source : CIA


Company name

 

Govind Jain e.K.

 

 

Company address

 

Mainzer Str. 57-59

D 55743 Idar-Oberstein

Telephone:06781/42727

Telefax:  06781/41727

E-mail:   govindjain@web.de

 

Company Status:      active

 

 

Synthesis

 

LEGAL FORM               Sole proprietorship

Date of foundation:       15.02.1980

Registered on:              15.02.1980

Register of companies    Local court 55543 Bad Kreuznach

under:                                       HRA 11356

 

 

Proprietor

 

Govind Narain Jain

Langwiesenstraße 14

D 55743 Idar-Oberstein

born: 02.07.1951

Marital status: married

 

 

COMPANY HISTORY

 

25.11.1981 - 21.12.1997  Govind Jain oHG

                         Mainzer Str. 34

                         D 55743 Idar-Oberstein

                         General Partnership

22.12.1997 - 21.06.1999  Govind Jain

                         Mainzer Str. 34

                         D 55743 Idar-Oberstein

                         Sole proprietorship

 

 

BUSINESS ACTIVITIES

 

Main industrial sector

46480   Wholesale of clocks and watches and jewelry

 

 

PARTICIPATIONS

 

Shareholder:

                     Messe Idar-Oberstein GmbH

                     John-F.-Kennedy-Str. 9

                     D 55743 Idar-Oberstein

                     Legal form: Private limited company

                     Company Status: active

                     Share capital:     EUR            275,000.00

                     Share:             EUR              5,000.00

                     Reg. data:  13.07.2009

                                 Local court 55543 Bad Kreuznach

                                 HRB 20781

 

 

FINANCIAL INFORMATION

 

Payment experience:     within agreed terms

Negative information:    We have no negative information at hand.

 

 

REAL ESTATE

 

Type of ownership:        Tenant

Address                        Mainzer Str. 57-59

                                    D 55743 Idar-Oberstein

 

Land register documents were not available.

 

 

BANKERS

 

COMMERZBANK, IDAR-OBERSTEIN

Sort. code: 56240050, Account no.: 1691799, BIC: COBADEFF562

 

 


FINANCIAL FIGURES

 

Financial year:      01.01. - 31.12.

Turnover:            2010               EUR          5,200,000.00

                     2011               EUR          5,000,000.00

further business figures:

Equipment:                              EUR             70,000.00

Ac/ts receivable:                       EUR            400,000.00

Liabilities:                            EUR            720,000.00

Total numbers of vehicles:                                      2

- Passenger cars:                                               2

Employees:                                                      8

 

 

The aforementioned business figures may partly be estimated information based average values in the line of business.
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.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29

 

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%)

 

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