MIRA
INFORM REPORT
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Report Date : |
11.06.2012 |
IDENTIFICATION DETAILS
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Name : |
ARJAV DIAMONDS |
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Registered Office : |
Schupstraat 18, Antwerpen, 2018 |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
421848545 |
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Legal Form : |
Private Independent |
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Line of Business : |
Wholesale trade in diamonds |
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No. of Employees : |
9 |
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
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Belgium |
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 |
Company name and address
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Arjav Diamonds |
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Employees: |
9 |
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Company Type: |
Private Independent |
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Incorporation
Date: |
1981 |
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Fiscal Year End: |
31-Dec-2010 |
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Reporting
Currency: |
Euro |
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Annual Sales: |
818.7 1 |
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Total Assets: |
645.0 |
Business Description
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Wholesale trade in diamonds |
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Industry |
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Industry |
Jewelry and Silverware |
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ANZSIC 2006: |
3732 - Jewellery and Watch Wholesaling |
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NACE 2002: |
5147 - Wholesale of other household goods |
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NAICS 2002: |
423940 - Jewelry, Watch, Precious Stone,
and Precious Metal Merchant Wholesalers |
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UK SIC 2003: |
51473 - Wholesale of jewellery |
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US SIC 1987: |
5094 - Jewelry, Watches, Precious Stones,
and Precious Metals |
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Registered No.(VAT
421848545
1 - Profit & Loss
Item Exchange Rate: USD 1 = EUR 0.7550783
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7454064
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More Business Descriptions
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Financial
Data
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Annual Profit & Loss
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31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
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Period Length |
52 Weeks |
52 Weeks |
52 Weeks |
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Filed Currency |
EUR |
EUR |
EUR |
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Exchange Rate
(Period Average) |
0.755078 |
0.719047 |
0.683679 |
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Consolidated |
No |
No |
No |
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Turnover |
818.7 |
452.2 |
457.4 |
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Other Operating
Income |
0.2 |
0.1 |
0.5 |
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Operating Income |
819.0 |
452.3 |
457.9 |
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Purchases |
732.2 |
564.7 |
504.9 |
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Increase
or Decrease in Stocks |
64.0 |
-144.9 |
-71.2 |
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Raw Materials,
Consumables, and Goods for Release |
796.2 |
419.8 |
433.7 |
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Services and
Sundry Goods |
3.7 |
4.7 |
3.7 |
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Remuneration,
Social Security Charges, and Pensions |
0.5 |
0.6 |
0.7 |
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Depreciation of and
Other Amounts Written Off of Formation Expense, Intangible and Tangible Fixed
Assets |
0.1 |
0.1 |
0.1 |
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Other Operating
Charges |
0.1 |
0.0 |
0.0 |
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Operating
Charges |
800.6 |
425.2 |
438.2 |
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Income From
Current Assets |
0.2 |
0.8 |
1.8 |
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Other Financial
Income |
0.4 |
0.1 |
17.3 |
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Financial Income |
0.5 |
0.9 |
19.1 |
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Interest and Other
Debt Charges |
17.6 |
12.0 |
18.3 |
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Other Financial
Charges |
0.3 |
15.2 |
25.6 |
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Financial
Charges |
17.9 |
27.2 |
43.9 |
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Other
Extraordinary Income |
- |
0.0 |
- |
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Extraordinary
Income |
- |
0.0 |
- |
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Income Taxes |
0.4 |
0.5 |
0.2 |
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Adjustment of
Income Taxes and Write-Back of Tax Provisions |
- |
0.0 |
0.0 |
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Income Taxes |
0.4 |
0.4 |
0.2 |
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Employees |
9 |
9 |
11 |
Annual Balance Sheet
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Financials in:
USD (mil) |
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31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
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Filed Currency |
EUR |
EUR |
EUR |
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Exchange Rate |
0.745406 |
0.696986 |
0.719399 |
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Consolidated |
No |
No |
No |
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Land
& Buildings |
1.3 |
1.4 |
1.3 |
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Plant,
Machinery, and Equipment |
0.2 |
0.3 |
0.3 |
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Furniture
and Vehicles |
0.0 |
0.1 |
0.1 |
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Tangible
Assets |
1.6 |
1.7 |
1.7 |
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Participating
Interests |
55.8 |
55.8 |
54.1 |
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Affiliated
Enterprises |
55.8 |
55.8 |
54.1 |
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Shares |
0.0 |
0.0 |
0.0 |
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Amounts
Receivable and Cash Guarantees |
1.7 |
1.7 |
1.7 |
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Other
Capital Assets |
1.7 |
1.7 |
1.7 |
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Capital
Assets |
57.6 |
57.5 |
55.7 |
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Fixed Assets |
59.2 |
59.2 |
57.4 |
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Goods
Purchased for Resale |
236.0 |
298.5 |
144.4 |
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Stocks |
236.0 |
298.5 |
144.4 |
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Inventory
and Orders in Progress |
236.0 |
298.5 |
144.4 |
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Trade
Debtors |
304.2 |
226.9 |
225.0 |
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Other
Amounts Receivable |
22.2 |
0.1 |
4.1 |
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Amounts
Receivable Within One Year |
326.4 |
227.0 |
229.1 |
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Other
Investments and Deposits |
- |
- |
28.0 |
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Investments |
- |
- |
28.0 |
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Liquid
Assets |
23.3 |
9.6 |
1.2 |
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Adjustment
Accounts |
0.1 |
0.5 |
1.3 |
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Current Assets |
585.8 |
535.5 |
404.0 |
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Total Assets |
645.0 |
594.7 |
461.4 |
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Issued
Capital |
65.4 |
5.2 |
5.0 |
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Capital
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65.4 |
5.2 |
5.0 |
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Legal
Reserve |
0.5 |
0.5 |
0.5 |
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Untaxed
Reserves |
72.3 |
71.7 |
69.5 |
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Reserves |
72.8 |
72.3 |
70.0 |
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Capital and
Reserves |
132.4 |
71.0 |
68.5 |
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Subordinated
Loans |
119.5 |
138.4 |
88.9 |
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Financial
Debts |
119.5 |
138.4 |
88.9 |
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Amounts
Due After More Than One Year |
119.5 |
138.4 |
88.9 |
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Credit
Institutions |
344.9 |
343.0 |
242.3 |
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Financial
Debts |
344.9 |
343.0 |
242.3 |
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Suppliers |
42.4 |
30.5 |
51.2 |
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Trade
Debts |
42.4 |
30.5 |
51.2 |
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Taxes |
0.7 |
0.4 |
0.2 |
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Remuneration
and Social Security |
0.1 |
0.1 |
0.1 |
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Taxes,
Wages, and Social Security |
0.8 |
0.5 |
0.3 |
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Other
Amounts Payable |
0.6 |
0.8 |
- |
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Amounts
Payable Within One Year |
388.7 |
374.9 |
293.8 |
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Adjustment
Accounts |
4.4 |
10.3 |
10.1 |
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Creditors |
512.5 |
523.7 |
392.9 |
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Total
Liabilities + Shareholders' Equity |
645.0 |
594.7 |
461.4 |
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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
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Indian Rupees |
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US Dollar |
1 |
Rs.55.36 |
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1 |
Rs.85.63 |
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Euro |
1 |
Rs.69.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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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 |
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<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.