|
Report Date : |
28.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
CARATCO (PTY) LTD |
|
|
|
|
Formerly Known As : |
CKARATO (PTY) LTD |
|
|
|
|
Registered Office : |
1st Floor Block C The Pivot 1 Montecasino Boulevard Fourways |
|
|
|
|
Country : |
South Africa |
|
|
|
|
Year of Establishment : |
1988 |
|
|
|
|
Com. Reg. No.: |
M2003/017551/07 |
|
|
|
|
Legal Form : |
Private Company |
|
|
|
|
Line of Business : |
Jewellery
and related articles composed of precious metals, precious and semi-precious
stones and pearls. |
|
|
|
|
No. of Employees : |
90 |
RATING & COMMENTS
|
MIRAs 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 September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
South Africa |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
|
Subject Name |
CARATCO
(PTY) LTD |
|
Country |
SOUTH
AFRICA |
|
Requested Credit Limit |
R
1 000 000 |
|
Enquiry Terms |
30
DAYS |
|
Account Review |
6
MONTHS |
|
Subject Contact person |
TIMOTHY
WATSON-011 0119100 -083 6011781 |
|
Assessment |
Total
Credit Limit Exposure: R3 000 000 This
is well-established company. The
subject is meeting commitments timeously with suppliers. A
bank code revealed that the subject would be considered as equal to
R1 000 000 over 30 days. The
subject is considered as equal to its normal business engagements. |
|
Registered Name |
CARATCO (PTY) LTD |
|
Trading as/ Division Name |
None |
|
Previous Name |
CKARATO (PTY) LTD |
|
Date of Name Change |
2009-11-09 |
|
Registration Number |
M2003/017551/07 |
|
Registration Date |
2003-07-24 |
|
Date Commenced Trading |
2003-07-24 |
|
Age of Business |
8 Years 7 Months |
|
History of Business |
The business started as a CC and was originally trading since 1988. |
|
History of Principals |
4 |
|
Shareholders/Members/Partners of subject
and % holding |
50% TIMOTHY WATSON 50% ROSY BLUE JOHANNESBURG (PTY) LTD |
|
Authorised Share Capital |
R105 |
|
Issued Share Capital/Members Contribution |
R105 |
|
Status |
This Business is Active |
|
Operations Assessment |
Retail diamond and jewellery |
|
Industry/ Customers |
88-Other business activities |
|
Export |
USA, MUARITUS |
|
Major Industry Code / SICC |
39211 |
|
Definition of Code |
Jewellery and related articles
composed of precious metals, precious and semi-precious stones and pearls. |
|
Head Office Physical Address |
1st Floor Block C The Pivot 1 Montecasino Boulevard FOURWAYS |
|
Head Office Postal Address |
PO Box 2241 JOHANNESBURG 2000 |
|
Current Tel Number |
011 0119100 |
|
Cell number |
083 6011781 |
|
Current Fax Number |
011 0119190 |
|
Current Email Address |
wes@pandadiamonds.co.za |
|
Web Site Address |
www.caratco.co.za |
|
Company Registered Name |
HARRIS DOWDEN AND FONTEIN |
|
Trading Name |
None |
|
Registration Number |
Unavailable |
|
Physical Address |
7 Pam Road MORNINGSIDE EXT 5 2010 |
|
Postal Address |
PO Box 651129 BENMORE 2010 |
|
Contact Person |
ROLEEN LADSCHUGNE |
|
Contact Number |
011 8847373 |
|
Email |
Unavailable |
|
Principals |
BRIAN DOWDEN RICHARD HARRIS CHARLES FONTEIN |
|
Judgements Against Subject |
None |
|
Judgements Against Principals |
None |
|
Subject Verified as Client |
Yes |
|
SAICA number |
943703 |
|
VAT Number |
4460135777 |
|
Tax Number |
No |
|
BEE Status |
February |
|
Financial Year End |
1988 |
|
Years With Auditors |
None |
|
Website |
None |
|
Company Name |
Phone Number |
Time with previous auditors |
|
None |
|
|
|
Vat Number |
410010536 |
|
Status |
Active |
|
Vat Liable Date |
Unavailable |
|
Tax Number |
9457029842 |
|
Tax Clearance Expire Date |
May |
|
Financial Year End |
December |
|
Status |
No |
|
Score |
|
|
Expire Date |
|
|
BEE Certificate Available |
|
|
Type of ISO Grade |
No |
|
ISO Certificate |
|
|
ISO Certificate Available |
|
|
Certified by an Accredited Agent |
|
|
Registered |
Yes |
|
Compliance Certified |
Yes |
Subsidiaries
|
Subsidiary Company |
None |
|
Shareholding |
|
|
Registration Number |
|
|
Import / Export |
|
|
Number of
Employees |
90 |
|
1. Salaried
employees |
90 |
|
2. Waged
employees |
|
|
3. Permanent
employees |
|
|
4. Casual
employees |
|
|
5. Contracted
employees |
|
Company Fleet |
No of vehicles: |
Owned/ Leased |
Value |
Outstanding Balance |
|
Fleet Operations |
5 |
|
|
Yes |
|
The Fleet is made up of |
|
|||
|
1. Cars |
|
|
|
|
|
2. Light
Delivery Vehicles |
|
|
|
|
|
3. Trailers |
|
|
|
|
|
4. Busses |
|
|
|
|
|
5. Trucks |
|
|
|
|
|
1. Fork
Lifts |
|
|
|
|
|
2. Other |
|
|
|
|
|
Offices |
Yes |
Head Office Owned/ Rented |
Rented |
|
Rental Company |
OBRAL |
|
Owned by |
|
|
Value |
|
|
Bond |
|
|
Bank |
|
|
Lease Agreement |
5 Years |
|
Lease Expire Date |
|
|
Type of Premises |
Offices |
|
Branches Names |
Country |
Province |
|
None |
|
|
Branches Owned/ Rented |
None |
|
Level |
Position |
Name |
|
1 |
Director |
TIMOTHY WATSON |
|
1 |
Unavailable |
ROSY BLUE |
Note: One level up and
all levels down
|
Holding |
Company |
Sub |
|
50% TIMOTHY WATSON 50% ROSYBLUE JOHANNESBURG (PTY) LTD |
CARATCO (PTY) LTD |
None |
|
Company |
Value |
Contact |
|
None |
|
|
|
Trade Reference nr |
Supplier |
Contact |
|
1 |
MEGA FREIGHT |
011 971 1000 |
|
2 |
RAM
INTERNATIONAL |
011 9775127 |
|
3 |
KUROPOTWA
BROTHER |
021 422 5077 |
|
4 |
CURTING EDGE
DIAMOND |
011 3340029 |
Trade
References Detail
|
Nr |
Age of Acc |
Credit Limit |
Max Credit |
Terms |
Average Purchases |
Terms Taken |
Comment |
|
1 |
5 Years |
R 2 000 000 |
R 5 00 000 |
30 Days |
R 500 000 |
30 Days |
Good |
|
2 |
11 Years |
Confidential |
R 40 000 |
30 Days |
R 40 000 |
30 Days |
Very Good |
|
3 |
10 Years |
Open Account |
R 1 000 000 |
60 Days |
R 1 000 000 |
60 Days |
Very Good |
|
4 |
9 Years |
R 1 000 000 |
R 5 00 000 |
60 Days |
R 5 00 000 |
60 Days |
Very Good |
|
Supplier |
Contact |
|
EGL |
011 3344527 |
|
BRINKS |
011 3922006 |
|
KUROPATWA
BROTHERS |
021 4225077 |
|
MEGAFREIGHT |
011 9711000 |
|
DEVELOPMENT FOR
AFRICA |
012 6633833 |
Trade References
|
Age of Acc |
Credit Limit |
Max Credit |
Terms |
Average Purchases |
Terms Taken |
Comment |
|
2007 |
None |
R1 Million |
30 days |
Up to R1 Million |
30 days |
Good |
|
6-7 years |
None |
R7000 |
30 days |
R5000 |
30 days |
Excellent |
|
Do |
Not |
Give |
Trade |
References |
|
|
|
Old |
None |
R500 000 |
30 days |
R200 000- R500 000 |
30 days |
Very good |
Judgements
|
Judgements |
None |
|
Possible
Judgements |
None |
|
Civil Court |
None |
|
RDs |
None |
Business Rescue
|
Date registered |
Business rescue practitioner |
Contact Information |
Details |
|
None |
|
|
|
Default
Listings
|
Date |
Details |
|
None |
|
Notarial
Bonds
|
Date |
Details |
|
None |
|
|
Bank |
NEDBANK |
|
Branch |
Diamond Exchange |
|
Bank Account
Number |
1932269835 |
|
Type of account |
Cheque |
|
Branch Code |
Unknown |
|
Account Name |
CARATCO (PTY) LTD |
|
Bank Code |
Awaiting a bank code |
|
Bank Comment |
|
|
Bank |
NEDBANK |
|
Branch |
DOORNFOTEIN |
|
Bank Account Number |
1932269835 |
|
Type of Account |
CURRENT |
|
Account Name |
CARATCO (PTY) LTD |
|
Bank Code |
C for R1 000 000 |
|
Bank Comment |
The subjects bankers consider them as equal to their normal business
engagements. |
Bank
Codes History
|
Date requested |
Bank Code |
Enquiry Amount |
Number of RDs |
RD amount |
RD Date |
Bank Comments |
Years with bank |
|
None |
|
|
|
|
|
|
|
Previous
Bank Accounts
|
Banker |
Branch Code |
Account Holder |
Account number |
Date opened |
Years with bank |
|
None |
|
|
|
|
|
Property Interestsfor Company
|
Title Deed No. |
None |
Erf/Site No. |
|
|
Deeds Office |
|
Physical Address |
|
|
Property Type |
|
Extent / Size |
|
|
Purchase Date |
|
Purchase price |
|
|
% Ownership |
|
Bond Holder |
|
|
Bond Number |
|
Bond Amount |
|
Financial
Estimates
|
CURRENT ASSETS |
Unavailable |
Please
note the following:
|
Turnover and assets less than R 1,000,000.00 |
The subject falls within the National Credit Act |
|
Turnover and assets less than R 2,000,000.00 |
The subject falls within the Consumer Protection Act |
Principals
|
Number of Principals |
4 |
|
Average Age of Active Principals |
46 |
Active Principals
Principal 1 of 4: VISHAL MEHTA
|
Surname |
MEHTA |
|
First Name |
VISHAL |
|
Other Names |
None |
|
Marital Status |
Unavailable |
|
ID Number |
800402 |
|
Verified ID Number |
No |
|
Current Age |
32 |
|
Designation |
Director |
|
Status |
Active |
|
Appointment Date |
2007-08-23 |
|
Physical Address (at time of Appointment) |
50 Kasteelei 2930 Brasschaat BELGIUM 0000 |
|
Postal Address |
PO Box 2326 JOHANNESBURG 2001 |
|
Current Tel Number |
011 0119100 |
|
Cell number |
Unavailable |
|
Current Fax Number |
011 0119190 |
|
Current Email Address |
Unavailable |
|
Shareholding |
(if the principal owns shares) |
Adverse Information for: VISHAL MEHTA
Judgement
|
Number of
Judgements |
None |
Debt
Review
|
Debt review |
None |
Other
|
Default data |
None |
Business Information for: VISHAL MEHTA
Current
Business Interests
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
None |
|
|
|
|
|
Previous
Business Interests
|
Average Age of
Previous Business Interests |
None |
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
None |
|
|
|
|
|
Deeds Information
Property
Interestsfor: VISHAL MEHTA
|
Title Deed No. |
ST135861/2007 |
Erf/Site No. |
575.8 |
|
Deeds Office |
PRETORIA |
Physical Address |
163 5th
SANDOWN SANDTON |
|
Property Type |
Sectional Title / Unit |
Extent / Size |
434.0SQM |
|
Purchase Date |
2007-07-05 |
Purchase price |
R 24 800 000.00 |
|
% Ownership |
0.0000 |
Bond Holder |
|
|
Bond Number |
|
Bond Amount |
R 0.00 |
Principal 2 of 4: SOMENS DAS
|
Surname |
DAS |
|
First Name |
SOMENS |
|
Other Names |
None |
|
Marital Status |
Unavailable |
|
ID Number |
550627 |
|
Verified ID Number |
No |
|
Current Age |
57 |
|
Designation |
Director |
|
Status |
Active |
|
Appointment Date |
2007-08-23 |
|
Physical Address (at time of Appointment) |
22 Dennis Road ATHOL JOHANNESBURG 2196 |
|
Postal Address |
PO Box 2326 JOHANNESBURG 2001 |
|
Current Tel Number |
011 0119100 |
|
Cell number |
Unavailable |
|
Current Fax Number |
011 0119190 |
|
Current Email Address |
Unavailable |
|
Shareholding |
(if the principal owns shares) |
Adverse Information
for:
SOMENS DAS
Judgement
|
Number of
Judgements |
None |
Debt Review
|
Debt review |
None |
Other
|
Default data |
None |
Business
Information for: SOMENS DAS
Current Business Interests
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
None |
|
|
|
|
|
Previous Business Interests
|
Average Age of
Previous Business Interests |
None |
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
None |
|
|
|
|
|
Deeds Information
Property Interestsfor: SOMENS DAS
|
Title Deed No. |
None |
Erf/Site No. |
|
|
Deeds Office |
|
Physical Address |
|
|
Property Type |
|
Extent / Size |
|
|
Purchase Date |
|
Purchase price |
|
|
% Ownership |
|
Bond Holder |
|
|
Bond Number |
|
Bond Amount |
|
Principal 3 of 4: WESLEY MAKOVINI
|
Surname |
MAKOVINI |
|
First Name |
WESLEY |
|
Other Names |
None |
|
Marital Status |
Unavailable |
|
ID Number |
6905115052080 |
|
Verified ID Number |
Yes |
|
Current Age |
43 |
|
Designation |
Director |
|
Status |
Active |
|
Appointment Date |
2003-08-06 |
|
Physical Address (at time of Appointment) |
36 Parkway FOURWAYS GARDENS 2091 |
|
Postal Address |
PO Box 71511 BRYANSTON 2021 |
|
Current Tel Number |
011 0119100 |
|
Cell number |
082 8908514 |
|
Current Fax Number |
011 0119190 |
|
Current Email Address |
Unavailable |
|
Shareholding |
(if the principal owns shares) |
Adverse
Information for: WESLEY MAKOVINI
Judgement
|
Number of Judgements |
None |
Debt Review
|
Debt review |
None |
Other
|
Default data |
None |
Business
Information for: WESLEY MAKOVINI
Current Business Interests
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
AFRICAN JEWELLERY AND DIAMONDS (PTY) LTD |
2001/022277/07 |
In Business |
10 Years 5 Months |
0 |
No |
|
JADWIGA JEWELLERY (PTY) LTD |
2005/011794/07 |
In Business |
6 Years 10 Months |
0 |
No |
|
WES MAKOVINI |
6905115052080 |
In Business |
Unknown |
0 |
No |
|
THE DIAMOND SITE (PTY) LTD |
M1997/021416/07 |
In Business |
14 Years 2 Months |
0 |
No |
|
PANDA DIAMONDS (PTY) LTD |
M2006/009814/07 |
In Business |
5 Years 11 Months |
0 |
No |
|
JOUEL (PTY) LTD |
M2010/005800/07 |
In Business |
1 Years 11 Months |
0 |
No |
Previous Business Interests
|
Average Age of
Previous Business Interests |
None |
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
None |
|
|
|
|
|
Deeds
Information
Property Interestsfor: WESLEY MAKOVINI
|
Title Deed No. |
T15652/2010 |
Erf/Site No. |
|
|
Deeds Office |
PRETORIA |
Physical Address |
30 PARK FOURWAYS
GARDENS SANDTON |
|
Property Type |
Freehold / Ervin |
Extent / Size |
948.0SQM |
|
Purchase Date |
2010-01-15 |
Purchase price |
R 4 650 000.00 |
|
% Ownership |
0.0000 |
Bond Holder |
ABSA BANK LTD |
|
Bond Number |
B107212010 |
Bond Amount |
R 2 800 000.00 |
Principal 1 of 4: TIMOTHY WATSON
|
Surname |
WATSON |
|
First Name |
TIMOTHY |
|
Other Names |
None |
|
Marital Status |
Unavailable |
|
ID Number |
5712225245088 |
|
Verified ID Number |
Yes |
|
Current Age |
55 |
|
Designation |
Director |
|
Status |
Active |
|
Appointment Date |
Unavailable |
|
Physical Address (at time of Appointment) |
8 Highwick Road Kenilworth CAPE TOWN 7708 |
|
Postal Address |
PO Box 71511 BRYANSTON 2021 |
|
Current Tel Number |
011 0119100 |
|
Cell number |
083 6011781 |
|
Current Fax Number |
011 0119190 |
|
Current Email Address |
Unavailable |
|
Shareholding |
(if the principal owns shares) |
Adverse
Information for: TIMOTHY WATSON
Judgement
|
Number of
Judgements |
None |
Debt Review
|
Debt review |
None |
Other
|
Default data |
None |
Business
Information for: TIMOTHY WATSON
Current Business Interests
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
HARD ASSET INVESTMENT BROKERS (PTY) |
1986/002467/07 |
In Business |
25 Years 8 Months |
0 |
No |
|
FIRST GOLD TRADING CC |
1995/025742/23 |
Deregistration Process |
16 Years 8 Months |
0 |
No |
|
WATERSONG INVESTMENTS (PTY) LTD |
1996/000559/07 |
In Business |
16 Years 1 Months |
0 |
No |
|
DUNROSE INVESTMENTS 77 (PTY) LTD |
2000/029079/07` |
Deregistration Process |
11 Years 3 Months |
0 |
No |
|
AFRIACN JEWELLERY AND DIAMOMDS (PTY) LTD |
2001/022277/07 |
In Business |
10 Years 5 Months |
0 |
No |
|
INTERCOLOUR GEMS CC |
B1991/029031/23 |
In Business |
20 Years 4 Months |
0 |
No |
|
SUNSTAR DIAMOMD CUTTER CC |
B1992/030954/23 |
In Business |
19 Years 3 Months |
0 |
No |
|
PANDA DIAMOMDS (PTY) LTD |
M2006/009814/07 |
In Business |
5 Years 11 Months |
0 |
No |
Previous Business
Interests
|
Average Age of
Previous Business Interests |
None |
|
Company Name |
Registration No |
Status |
Age of Business |
Judgements |
Liquidation |
|
TANZANITTE S A (PTY) LTD |
1960/002580/07 |
Deregistration Final |
51 Years 7 Months |
0 |
No |
|
CAR WAY PANELBEATERS CC |
1991/029779/23 |
Deregistration Final |
20 Years 3 Months |
0 |
No |
|
AKOYA PEARLS CC |
1993/012313/23 |
Deregistration Final |
18 Years 9 Months |
0 |
No |
|
1st AVENUE GOLD ACCEPTANCES (PTY) LTD |
1996/012338/07 |
Deregistration Final |
15 Years 5 Months |
0 |
No |
|
CONSTANTIA OAK PROPETIES CC |
1997/047414/23 |
Deregistration Final |
14 Years 5 Months |
0 |
No |
|
OUWINGERD PROPERTIES CC |
1997/047451/23 |
Deregistration Final |
14 Years 5 Months |
0 |
No |
|
OLD VINEYARD PROPERTIES CC |
1997/051176/23 |
Deregistration Final |
14 Years 5 Months |
0 |
No |
|
CORPCLO 326 CC |
1998/033883/23 |
Deregistration Final |
13 Years 8 Months |
0 |
No |
|
TROPICAL COLLECTION (PTY) LTD |
2006/011015/07 |
In Business |
5 Years 10 Months |
0 |
No |
|
SECTION 14 HOLLYBANK ILLOVO CC |
B1997/064565/23 |
In Business |
14 Years 2 Months |
0 |
No |
|
CULLINAN DIAMONDS (PTY) LTD |
M2000/023394/07 |
In Business |
11 Years 5 Months |
0 |
No |
Deeds Information
Property Interestsfor: TIMOTHY WATSON
|
Title Deed No. |
T37182/2006 |
Erf/Site No. |
|
|
Deeds Office |
CAPE TOWN |
Physical Address |
11 HOFMEYER
STELLENBOSCH |
|
Property Type |
Freehold / Ervin |
Extent / Size |
273.0SQM |
|
Purchase Date |
2006-03-15 |
Purchase price |
R 1 950 000.00 |
|
% Ownership |
0.0000 |
Bond Holder |
NEDBANK LTD |
|
Bond Number |
B502632006 |
Bond Amount |
R 1 900 000.00 |
|
Title Deed No. |
ST112850/2006 |
Erf/Site No. |
181.18 |
|
Deeds Office |
PRETORIA |
Physical Address |
68
ATHOLL-OAKLANDS BIRNAM JOHANNESBURG |
|
Property Type |
Sectional Title / Unit |
Extent / Size |
119.0SQM |
|
Purchase Date |
2005-03-31 |
Purchase price |
R 2 300 000.00 |
|
% Ownership |
0.0000 |
Bond Holder |
NEDBANK LTD |
|
Bond Number |
SB1483262006 |
Bond Amount |
R 1 700 000.00 |
|
Title Deed No. |
T27785/2005 |
Erf/Site No. |
|
|
Deeds Office |
CAPE TOWN |
Physical Address |
ARABELLA COUNTRY
ESTATE OVERSTRAND RURAL |
|
Property Type |
Farms |
Extent / Size |
781.0SQM |
|
Purchase Date |
2004-05-31 |
Purchase price |
R 1 000 000.00 |
|
% Ownership |
0.0000 |
Bond Holder |
|
|
Bond Number |
|
Bond Amount |
R 0.00 |
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.49.05 |
|
|
1 |
Rs.77.78 |
|
Euro |
1 |
Rs.65.89 |
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 SCs 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.