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Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
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Name : |
PILL GOLD LIMITED |
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Registered Office : |
Hos-13 Community 5, Park And Gardens Tema |
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Country : |
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Year of Establishment : |
2002 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Exploration and production of gold |
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No. of Employees : |
300 employees. |
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RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Ghana |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
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 |
GHANA - ECONOMIC OVERVIEW
Ghana's economy has been
strengthened by a quarter century of relatively sound management, a competitive
business environment, and sustained reductions in poverty levels. Ghana is well
endowed with natural resources and agriculture accounts for roughly one-quarter
of GDP and employs more than half of the workforce, mainly small landholders.
The services sector accounts for 50% of GDP. Gold and cocoa production and
individual remittances are major sources of foreign exchange. Oil production at
Ghana's offshore Jubilee field began in mid-December, 2010, and is expected to
boost economic growth. President MILLS faces challenges in managing new oil
revenue while maintaining fiscal discipline and resisting debt accumulation.
Estimated oil reserves have jumped to almost 700 million barrels. Ghana signed
a Millennium Challenge Corporation (MCC) Compact in 2006, which aims to assist
in transforming Ghana's agricultural sector. Ghana opted for debt relief under
the Heavily Indebted Poor Country (HIPC) program in 2002, and is also
benefiting from the Multilateral Debt Relief Initiative that took effect in
2006. In 2009 Ghana signed a three-year Poverty Reduction and Growth Facility
with the IMF to improve macroeconomic stability, private sector
competitiveness, human resource development, and good governance and civic
responsibility. Sound macro-economic management along with high prices for gold
and cocoa helped sustain GDP growth in 2008-11.
Source
: CIA
Registered Name: PILL GOLD LIMITED
Requested Name: PILL
GOLD LIMITED
Other Names: None
Physical Address: Hos-13 Community 5, Park And
Gardens Tema,
Postal Address: Hos-13 Community 5, Park And Gardens,
Tema
Country: Ghana
Phone: 233-540604112
Fax: 233-540604112
Email: None
Website: None
Financial Index as of December 2011 shows subject firm with a medium
risk of credit.
Legal Form: Limited Corporation
Date Incorporated: 2002
Reg. Number: Ghana
Nominal Capital GHS. 500,000
Subscribed Capital GHS. 500,000
Subscribed Capital is Subscribed in the
following form:
Position Shares
Mr. C. Otou GM
None Parent company.
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
None Branches of the firm
Registered to operate exploration and production of gold
Imports: Middle
East
Exports: Worldwide
Trademarks: None
Terms of sale: Cash
(40%) and 25-90 days (60%), invoices.
Main Customers: firms
and organizations
Employees: 300
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Ghana
Location: Rented
premises, 5,000 square feet,
Auditors: Information not available.
Insurance Brokers: Information not available.
Currency Reported: Ghanaian Cedi (GHS.)
Approx. Ex. Rate: 1 US Dollar = 1.89 Ghanaian Cedi
Fiscal Year End: December
31, 2011
Inflation:
According
to information given by independent sources, the inflation at December
31st, 2011 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in GHS.)
2010 2011
Sales 5,500,000 6,800,000
Bank Name: Ecobank Ghana
Branch: Ghana
Comments: None
Experiences: Good
None
This information was obtained from outside sources other than the
subject company itself and confirmed the above subject.
DIAMOND INDUSTRY –
INDIA
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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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.63 |
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|
1 |
Rs.86.17 |
|
Euro |
1 |
Rs.69.74 |
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 |
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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 |
|
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 |
-- |
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.