MIRA
INFORM REPORT
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Report Date : |
13.09.2012 |
IDENTIFICATION DETAILS
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Name : |
DIAMOND CREATIONS |
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Registered Office : |
Schupstraat 20 B.12 Antwerpen, 2018 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Year of Establishment : |
1995 |
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Com. Reg. No.: |
454918221 |
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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 : |
4 |
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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 : |
Slow but correct |
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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 |
BELGIUM - ECONOMIC OVERVIEW
This modern, open, and private-enterprise-based
economy has capitalized on its central geographic location, highly developed
transport network, and diversified industrial and commercial base. Industry is
concentrated mainly in the more heavily-populated region of Flanders in the
north. With few natural resources, Belgium imports substantial quantities of
raw materials and exports a large volume of manufactures, making its economy
vulnerable to volatility in world markets. Roughly three-quarters of Belgium's
trade is with other EU countries, and Belgium has benefited most from its
proximity to Germany. In 2011 Belgian GDP grew by 2.0%, the unemployment rate
decreased slightly to 7.7% from 8.3% the previous year, and the government
reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011.
Despite the relative improvement in Belgium's budget deficit, public debt
hovers near 100% of GDP, a factor that has contributed to investor perceptions
that the country is increasingly vulnerable to spillover from the euro-zone crisis.
Belgian banks were severely affected by the international financial crisis in
2008 with three major banks receiving capital injections from the government,
and the nationalization of the Belgian arm of a Franco-Belgian bank. An ageing
population and rising social expenditures are mid- to long-term challenges to
public finances.
Source
: CIA
Company name and address
Diamond Creations
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Business
Description
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Wholesale trade in diamonds |
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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UK SIC 2007: |
4648 - Wholesale of watches and jewellery |
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US SIC 1987: |
5094 - Jewelry, Watches, Precious Stones,
and Precious Metals |
Key Executives
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News
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1 - Profit & Loss
Item Exchange Rate: USD 1 = EUR 0.7191895
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327
Corporate Overview
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Executives Report
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Annual Profit &
Loss
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31-Dec-2011 |
31-Dec-2009 |
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Period Length |
52 Weeks |
52 Weeks |
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Filed Currency |
EUR |
EUR |
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Exchange Rate
(Period Average) |
0.71919 |
0.719047 |
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Consolidated |
No |
No |
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Turnover |
72.2 |
66.6 |
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Other Operating Income |
0.2 |
0.2 |
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Operating Income |
72.4 |
66.8 |
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Purchases |
72.0 |
63.6 |
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Increase or Decrease
in Stocks |
-0.6 |
2.3 |
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Raw Materials, Consumables, and Goods for
Release |
71.4 |
65.8 |
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Services and Sundry Goods |
0.5 |
0.4 |
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Remuneration, Social Security Charges, and
Pensions |
0.2 |
0.2 |
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Depreciation of and Other Amounts Written Off
of Formation Expense, Intangible and Tangible Fixed Assets |
0.1 |
0.1 |
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Other Operating Charges |
0.0 |
0.0 |
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Operating Charges |
72.2 |
66.5 |
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Income From Financial Fixed Assets |
- |
0.0 |
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Other Financial Income |
3.9 |
3.2 |
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Financial Income |
3.9 |
3.2 |
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Interest and Other Debt Charges |
0.0 |
0.0 |
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Other Financial Charges |
3.9 |
3.4 |
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Financial Charges |
3.9 |
3.4 |
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Other Extraordinary Charges |
- |
0.0 |
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Extraordinary Charges |
- |
0.0 |
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Income Taxes |
0.0 |
0.0 |
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Adjustment of Income Taxes and Write-Back of
Tax Provisions |
- |
0.0 |
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Income Taxes |
0.0 |
0.0 |
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To Other Reserves |
0.1 |
0.0 |
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Transfers to Capital and Reserves |
0.1 |
0.0 |
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Other Beneficiaries |
0.1 |
0.1 |
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Profit to be Distributed |
0.1 |
0.1 |
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Employees |
4 |
3 |
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Annual Balance
Sheet |
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Financials in:
USD (mil) |
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31-Dec-2011 |
31-Dec-2009 |
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Filed Currency |
EUR |
EUR |
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Exchange Rate |
0.770327 |
0.696986 |
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Consolidated |
No |
No |
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Intangible Assets |
0.0 |
- |
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Land & Buildings |
- |
0.5 |
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Plant, Machinery, and
Equipment |
0.0 |
0.1 |
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Furniture and Vehicles |
0.0 |
0.0 |
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Other Tangible Assets |
0.4 |
0.0 |
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Tangible Assets |
0.5 |
0.6 |
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Amounts Receivable and
Cash Guarantees |
0.0 |
0.0 |
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Other Capital Assets |
0.0 |
0.0 |
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Capital Assets |
0.0 |
0.0 |
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Fixed Assets |
0.5 |
0.6 |
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Raw Materials and
Consumables |
5.4 |
2.8 |
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Stocks |
5.4 |
2.8 |
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Inventory and Orders in Progress |
5.4 |
2.8 |
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Trade Debtors |
18.9 |
14.4 |
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Other Amounts
Receivable |
0.1 |
0.7 |
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Amounts Receivable Within One Year |
19.0 |
15.0 |
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Liquid Assets |
2.6 |
0.9 |
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Adjustment Accounts |
0.0 |
0.0 |
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Current Assets |
27.0 |
18.7 |
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Total Assets |
27.5 |
19.3 |
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Issued Capital |
0.0 |
0.0 |
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Capital |
0.0 |
0.0 |
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Legal Reserve |
0.0 |
0.0 |
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Other |
5.9 |
6.6 |
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Reserves Not Available
for Distribution |
5.9 |
6.6 |
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Untaxed Reserves |
0.0 |
0.0 |
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Reserves Available for
Distribution |
0.9 |
0.7 |
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Reserves |
6.8 |
7.3 |
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Capital and Reserves |
6.9 |
7.4 |
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Other Loans |
3.8 |
3.7 |
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Financial Debts |
3.8 |
3.7 |
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Amounts Due After More Than One Year |
3.8 |
3.7 |
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Credit Institutions |
0.1 |
- |
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Financial Debts |
0.1 |
- |
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Suppliers |
13.8 |
4.7 |
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Trade Debts |
13.8 |
4.7 |
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Taxes |
0.1 |
0.0 |
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Remuneration and
Social Security |
0.0 |
0.0 |
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Taxes, Wages, and
Social Security |
0.1 |
0.0 |
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Other Amounts Payable |
2.9 |
3.5 |
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Amounts Payable Within One Year |
16.9 |
8.2 |
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Adjustment Accounts |
0.0 |
- |
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Creditors |
20.6 |
11.9 |
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Total Liabilities + Shareholders' Equity |
27.5 |
19.3 |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.26 |
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1 |
Rs.88.85 |
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Euro |
1 |
Rs.71.13 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.