MIRA INFORM REPORT

 

 

Report Date :           

20.01.2012

 

IDENTIFICATION DETAILS

 

Name :

DIACO INC

 

 

Registered Office :

27 Queen Street E,  Suite 1008, Toronto, ON  M5C 2M6

 

 

Country :

Canada

 

 

Date of Incorporation :

18.06.1987

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Wholesales Diamonds

 

 

No. of Employees :

12

 

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 :

Moderate

 

 

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Canada

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

GEOPOLITICS

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Legal Name:

Diaco Inc

Legal Address

27 Queen Street E,  Suite 1008, Toronto, ON  M5C 2M6, Canada

 

Operative Address

27 Queen Street E,  Suite 1008, Toronto, ON  M5C 2M6, Canada

 

Telephone:

+ 1 (416) 266-4815

ID :

NA

Fax:

+ 1 (416) 366-4135

Legal Form:

Corporation for Profit

Email:

diamonds@diaco.ca

Registered in:

Canada

Website:

http://www.diaco.ca

Date Created:

1987

Manager:

Minesh Shah, President

Date Incorporated:

June 18, 1987

Staff:

12

Stock:

NA

 

 

Value:

NA

Activity:

Wholesales Diamonds

 

 

BANKS

 

Name of the Bank

Canadian Imperial Bank of Commerce

 

 

 

 

BUSINESS

 

HISTORY

 

The company was created in 1987

PRINCIPAL ACTIVITY

 

The company operates as a well known supplier of branded Canadian diamonds and finished jewelry.

Products/Services description:

 

The company offers a variety of jewelry and diamonds with different cut including:

 

-Round,

-Marquise,

-Radiant,

-Princess,

-Heart,

-Trillion,

-Oval

-Emerald,

-Cushion.

 

Sales are:

 

Wholesale

Operations area:

 

National

 

 

The company imports from India

The subject employs 12 employee(s)

 

 

 

PAYMENTS

 

Regular

LOCATION

Headquarters

 

27 Queen Street E,  Suite 1008, Toronto, ON  M5C 2M6, Canada

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

NO

Shareholders Parent Company(ies):

 

This is a private company. The main shareholder is Mr. Minesh Shah

Management:

 

Minesh Shah, President

Related Companies:

 

DIACO USA INC

20 E 46th Street # 1201, New York, NY 10017-9246



Financials - COMMERCIAL TRENDS AND FORECAST

 

As a private company the subject does not publish any financial statements.

We have contacted the company, who refused to provide us any financial data without knowing the name of the inquiring party.

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.

 

 

Currency

DATE

USD

2007

Turnover

1,900,000

Operating Income

74,000

Net Income

65,000

Net worth

120,000

Bank liabilities

50,000

The cash flow is

NORMAL

 

Comments on the financial data:

 

For the year 2010, the company reports an estimated turnover of USD 4,000,000

Legal Fillings

 The sources consulted record no detrimental legal or labor court information.

 

 

Rating

 

Local credit bureau gave a correct credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 

 

 Final Opinion

 

The company operates as the main office of an international structure.

 

The markets covered are the Canadian and the North American.

 

The sales are made on a wholesale basis.

 

Payments are made on a regular basis.

 

 

 

SUMMARY


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

Profitability

N.A.

Public

NO

Indebtedness

N.A.

Payments

REGULAR

Cash

NORMAL

 

 

 






 

APPENDIX

 

Comments

 

We have contacted the company, who refused to provide us any financial data without knowing the name of the inquiring party.

 

 

 

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.50.29

UK Pound

1

Rs.77.60

Euro

1

Rs.64.67

 

 

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.