MIRA INFORM REPORT

 

 

Report Date :            

19.10.2012

 

IDENTIFICATION DETAILS

 

Name :

STAR GEMS & JEWELLERY LIMITED

 

 

Registered Office :

91 Eugenia Rise, Totara Heights, Auckland, Zip/postal code 2105

 

 

Country :

New Zealand

 

 

Date of Incorporation :

24.09.2001

 

 

Com. Reg. No.:

1164026

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import and sales of diamonds.

 

 

No. of Employees :

5 including directors

 

 

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 :

Small Company 

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)

New Zealand

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


New Zealand - ECONOMIC OVERVIEW

 

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 2% decline in 2009, but pulled out of recession late in the year, and achieved 1.7% growth in 2010 and 2% in 2011. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

 

Source : CIA

 


Identification details  Bottom of Form

 

 

Verified Address

Subject name :              STAR GEMS & JEWELLERY LIMITED   

 

Business address :        8 Mana Place

Town :                          Wiri

Province :                     Auckland

Zip/postal code :           2104

Country :                       New Zealand

Tel :                              +64 9 2612638

Fax :                             +64 9 2634639

Email :                          stargems@paradise.net.nz

Website :                      www.stargems.biz

 

Registered address :     91 Eugenia Rise

Town :                          Totara Heights

Province :                     Auckland

Zip/postal code :           2105

Country :                       New Zealand

 

Postal address :            P.O. Box 75018

Town :                          Manurewa

Province :                     Auckland

Country :                       New Zealand

 

 

 Bottom of Form

Summary details

 

Executive Summary

Date founded or registered :      24/09/2001

Legal form :                              Private Limited Company

Chief executive :                       Tilak Wadhwa

Issued & paid up capital :          NZD 1,000

Line of business :                      Import and sales of diamonds.

Staff employed :                       5 including directors

 

 

Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is steady

Management experience :          Management is modestly experienced

Financial performance :             Financial performance is undetermined

Organisation structure :              Organisational structure is acceptable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

 

Statutory details

 

Registry Data

Registration date :         24/09/2001

Legal form :                  Private Limited Company

Registration no              1164026

Registered authority :    New Zealand Companies Office

Registry status :            Live/Active

Previous name :            None reported.

Change of legal form :   None reported.

 

 

Management / directors

 

Key Management

Name :              Tilak Wadhwa

Designation :    Managing Director

 

 

 

Board of directors / other appointments

 

Appointments

Name :                          Tilak Wadhwa

Designation :                Director

Appointment date :        29/07/03

Address :                      91 Eugenia Rise

Totara Heights, Auckland 2105

New Zealand

 

Name :                          Upasana Wadhwa

Designation :                Director

Appointment date :        17/12/01

Address :                      91 Eugenia Rise

Totara Heights, Auckland 2105

New Zealand

Staff employed :           5 including directors

 

 

Share capital

 

Composition

Authorized Capital :       NZD 1,000

No of shares                 1,000 Shares

Share par value :           NZD 1

Issued capital :              NZD 1,000

Paid up capital :            NZD 1,000

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :       Tilak Wadhwa

Address :                      91 Eugenia Rise

Totara Heights, Auckland 2105

New Zealand

No. of shares :              1,000 Shares

% of shares :                100%

 

 

Related companies & corporate Affiliations

 

Structure

Name :                          SAI BABA NEW ZEALAND LIMITED

Affiliation type :                        Sister Company

Address :                      91 Eugenia Rise

Totara Heights, Auckland 2105

New Zealand

 

Name :                          T & T INTERNATIONAL LIMITED

Affiliation type :                        Sister Company

Address :                      8 Mana Place

Wiri, Auckland 2104

New Zealand

 

Name :                          SUNSHINE MARKETING LIMITED

Affiliation type :                        Associate

Address :                      91 Eugenia Rise

Totara Heights, Auckland 2105

New Zealand

 

Name :                          SAFE PROPERTIES LIMITED

Affiliation type :                        Associate

Address :                      8 Mana Place

Wiri, Auckland 2104

New Zealand

 


Bank & mortgages

 

Bank Details

Name of bank :                         Bank of New Zealand

Address :                      New Zealand

Account details :           Current Account

 

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                  None reported.

 

Legal Fillings

Bankruptcy fillings :       None reported.

Court judgements :        None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

financial data

 

Description

Comments :                  Private Companies in New Zealand are not required to file accounts unless

classified as "Large", which at the moment means that two out of the following

three conditions are met:

 

- The company has a sales turnover of over NZD 20,000,000;

- The company has total assets of over NZD 10,000,000;

- The company employs 50 people or more.

 

The representative contacted Mr. Tilak Wadhwa declined to provide any financial information with regards to the Subject.

 

 

Operation details

 

Main activities : The Subject engages in import and distribution of diamonds.

 

Purchases

International :                India

 

Sales

Local :                          Yes

International :                None reported.


Property & Assets

Premises :                    The Subject operates from premises located at the verified heading

address consisting of an administrative office.

 

Branches :                    None reported.

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

Central bank                                          Reserve Bank of New Zealand

Reserve of foreign exchange & gold      US$ 20.562 billion

Gross domestic product - GDP              US$ 180.548 billion

GPP (Purchasing power parity)              126.628 billion of International dollars

GDP per capita - current prices              US$ $ 40,454

GDP - composition by sector                agriculture: 4.7% industry: 24% services: 71.3%

 

Inflation                                                            2009: 2.1%

2010: 2.3%

2011: 4.%

 

Unemployment rate                               2009: 6.1%

2010:  6.5%

2011: 6.5%

 

Public debt

(General Government gross

debt as a % GDP)                                 2009:  26.1 %

2010:   32.3%

2011:   37%

 

Government bond ratings                      Standard & Poor's: AA+/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares    US$ 67.061 Billion

 

Largest companies in the country           :   Westpac Limited, Transpower, Fletcher Building Limited, National

Bank of New Zealand, Fonterra Co-Operative Group Ltd, Air New Ze

 

Trade & Competitiveness Overview

 

Total exports                             US$33.24billion

 

Exports commodities                dairy products, meat, wood and wood products, fish, machinery

 

Total imports                             US$31.11 billion

 

Imports commodities                 machinery and equipment, vehicles and aircraft, petroleum,

electronics, textiles, plastics

 

Export - major partners              Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%

 

Import - major partners              Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%,

Germany 4.7%

 

FDI Inflows                               2008: US$ 4,598 million

2009: US$ -1,293 million

2010: US$ 561 million

 

FDI Outflows                             2008: US$ 462 million

2009: US$-308 million

2010: US$-589 million

 

Best countries for doing

business                                   3 out of 183 countries

 

Global competitiveness ranking  25 (ranking by country on a basis of 142, the first is the best)

 

 

Country and Population Overview

Total population                                   : 4.37 million

Total area                                            : 270,467 km2

Capital                                                 :  Wellington

Currency                                                                                                      :  New Zealand Dollar (NZD)

Internet users as % of total population   :  83 %

 

 

Payment history

 

Purchase Term

International :                Prepayment, Telegraphic transfer, D/P, Credit 30-150 days

 

Sales Term

Local :                          Prepayment, Bank transfer, D/P, Credit 30-120 days

 

Trade Reference/ Payment Behaviour

Comments :                  As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources :                      Interviews and material provided by the Subject

Other official and local business sources


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.52.96

UK Pound

1

Rs.85.45

Euro

1

Rs.69.46

 

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%)

 

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.