MIRA INFORM REPORT

 

 

Report Date :

03.10.2012

 

IDENTIFICATION DETAILS

 

Name :

ENCHANTED DESIGNS LTD

 

 

 

 

Registered Office :

240 12th Street, Ste B, North Lethbridge, Alberta T1H 2K7          

 

 

Country :

Canada

 

 

Date of Incorporation :

23.02.2000

 

 

Legal Form :

Corporation – Profit  

 

 

LINE OF BUSINESS :

IMPORTER, WHOLESALER AND RETAILER JEWELRY, FAIRY ART AND FANTASY GIFTS PRODUCTS INCLUDE AMMOLITE LOOSE GEMSTONES, AMMOLITE GEMSTONES SET IN GOLD & SILVER JEWELRY, AMMONITE FOSSILS & HAND SPECIMENS.

 

 

No. of Employees :

10

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economiccrisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


Company name and address

 

Company name:            ENCHANTED DESIGNS LTD

 

Address:                                   240 12th Street, Ste B, North Lethbridge, Alberta T1H 2K7

                                    Canada

 

Telephone:                    +1 403-328-5140

 

Fax:                              +1 403-394-2823

 

Website:                                   www.ammolitestones.com

 

Corporate ID#:              AB-0208671909

 

State:                           Alberta

 

 

Judicial form:                Corporation – Profit  

 

Date incorporated:        02-23-2000

 

Stock:                            -

 

Value:                           -

 

 

Name of manager:         Tom CHANT

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Importer, wholesaler and retailer jewelry, fairy art and fantasy gifts…

Products include ammolite loose gemstones, ammolite gemstones set in gold & silver jewelry, ammonite fossils & hand specimens.

 

The Company imports mainly from Hong Kong.

 

 

Staff:    10

 

Operations & branches:

 

At the headquarters, we find the corporate office, warehouse and store/showroom, on lease.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

Tom CHANT is the owner.

 

 

Management:

 

Tom CHANT is the President and CEO.

No antecedents available.

 

As far as we know, he is not involved in other local corporations.

 

 

Subsidiaries

And partnership:                        None

 

 

FINANCIALS

 

In Canada, privately held corporations are not required to publish any financials.

 

On a direct call, the manager deferred any information.

We sent a fax but no answer received.

 

Outside sources (bank) gave estimate sales for year 2011 in the range of

CAD 600,000=

 

The business is said to be profitable.

 

 

Banks:  Royal Bank of Canada

                        33-1240 2A Ave N, Lethbridge, Alberta T1H 0E4 – Canada

                        Ph : 403-382-3860

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   None

 

 

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               August 2012

High credit:                   CAD 1,200

Now owing:                   0

Past due:                      0

Last purchase:              July 2012

Line of business:           Office supply

Paying status:               2 days beyond terms

 

Date reported:               August 2012

High credit:                   CAD 10,000+

Now owing:                   0

Past due:                      0

Last purchase:              July 2012

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               August 2012

High credit:                   CAD 300

Now owing:                   0

Past due:                      0

Last purchase:              July 2012

Line of business:           Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

 

Monthly Payment Trends - Recent Activity

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

04/12

$2,200

98%

2%

0%

0%

0%

05/12

$2,500

99%

1%

0%

0%

0%

06/12

$2,800

97%

3%

0%

0%

0%

07/12

$2,600

98%

2%

0%

0%

0%

08/12

$2,100

97%

3%

0%

0%

0%

09/12

$2,300

98%

2%

0%

0%

0%

 

 

 

National Credit Bureaus gave a correct medium credit rating.

 

 

According to our credit analysts, during the last 6 months, 98% of trade experience indicates a regular payment.

 

 

International credit history:

 

Payments of imports are currently made with an average of 2 days beyond terms.

 

 

Other comments:

 

 

The Company maintains a regular business.

 

The banks and financial institutions confirmed

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is low.

 

 

Our opinion:

 

 

A business connection may be conducted.

 

 

 


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.52.78

UK Pound

1

Rs.85.16

Euro

1

Rs.67.78

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.