|
Report Date : |
19.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ADIAM |
|
|
|
|
Registered Office : |
Hoveniersstraat
30 B.132 Antwerpen, 2018 |
|
|
|
|
Country : |
Belgium |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Year of Incorporation : |
1986 |
|
|
|
|
Com. Reg. No.: |
429050202 |
|
|
|
|
Legal Form : |
Private Independent |
|
|
|
|
Line of Business : |
Export and wholesale distribution of diamonds |
|
|
|
|
No. of Employees : |
02 |
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) |
|
Belgium |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 1.8%, the unemployment rate decreased slightly to 7.2% 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 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. Despite the relative improvement in Belgium's budget deficit, public debt hovers around 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 retail arm of a Franco-Belgian ba
Source
: CIA
Adiam
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Business Description
|
Export and wholesale distribution of
diamonds |
Industry
|
Industry |
|
|
ANZSIC 2006: |
|
|
NACE 2002: |
|
|
NAICS 2002: |
423940 - Jewelry, Watch, Precious Stone, and
Precious Metal Merchant Wholesalers |
|
UK SIC 2003: |
|
|
UK SIC 2007: |
|
|
US SIC 1987: |
5094 - Jewelry, Watches, Precious Stones, and
Precious Metals |
Key Executives
|
1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executives
Report
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
|
Period Length |
52 Weeks |
52 Weeks |
52 Weeks |
|
Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate (Period Average) |
0.71919 |
0.755078 |
0.719047 |
|
Consolidated |
No |
No |
No |
|
|
|
|
|
|
Turnover |
127.2 |
77.8 |
43.5 |
|
Other Operating
Income |
0.3 |
0.1 |
0.2 |
|
Operating Income |
127.5 |
77.9 |
43.6 |
|
Purchases |
129.3 |
74.9 |
33.4 |
|
Increase
or Decrease in Stocks |
-4.5 |
-0.1 |
9.7 |
|
Raw Materials, Consumables,
and Goods for Release |
124.8 |
74.8 |
43.2 |
|
Services and Sundry
Goods |
1.0 |
0.8 |
0.6 |
|
Remuneration,
Social Security Charges, and Pensions |
0.1 |
0.1 |
0.1 |
|
Depreciation of and
Other Amounts Written Off of Formation Expense, Intangible and Tangible Fixed
Assets |
0.1 |
0.1 |
0.1 |
|
Increase or
Decrease in Amounts Written Off Stocks, Orders, and Trade Debtors |
- |
0.6 |
- |
|
Other Operating
Charges |
0.0 |
0.0 |
0.0 |
|
Operating Charges |
126.0 |
76.3 |
43.9 |
|
Income From Current
Assets |
0.0 |
0.0 |
0.0 |
|
Other Financial
Income |
5.3 |
4.1 |
4.4 |
|
Financial Income |
5.3 |
4.1 |
4.4 |
|
Interest and Other
Debt Charges |
0.8 |
0.6 |
0.9 |
|
Other Financial
Charges |
5.6 |
4.8 |
3.1 |
|
Financial Charges |
6.4 |
5.3 |
3.9 |
|
Other Extraordinary
Charges |
- |
- |
0.0 |
|
Extraordinary Charges |
- |
- |
0.0 |
|
Income Taxes |
0.0 |
0.0 |
0.0 |
|
Adjustment of
Income Taxes and Write-Back of Tax Provisions |
0.0 |
- |
0.0 |
|
Income Taxes |
0.0 |
0.0 |
0.0 |
|
To
the Legal Reserve |
- |
0.0 |
0.2 |
|
To
Other Reserves |
0.3 |
0.3 |
- |
|
Transfers to
Capital and Reserves |
0.3 |
0.3 |
0.2 |
|
Administrators
or Managers |
0.2 |
0.1 |
- |
|
Profit to be
Distributed |
0.2 |
0.1 |
- |
|
Employees |
2 |
3 |
2 |
|
|
|
Annual Balance Sheet |
|
Financials in: USD (mil) |
|
|
|
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
|
Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate |
0.770327 |
0.745406 |
0.696986 |
|
Consolidated |
No |
No |
No |
|
|
|
|
|
|
Land
& Buildings |
0.2 |
0.2 |
0.2 |
|
Plant,
Machinery, and Equipment |
0.0 |
0.1 |
0.1 |
|
Furniture
and Vehicles |
0.0 |
0.1 |
0.1 |
|
Tangible Assets |
0.2 |
0.3 |
0.4 |
|
Amounts
Receivable and Cash Guarantees |
0.0 |
0.0 |
0.0 |
|
Other
Capital Assets |
0.0 |
0.0 |
0.0 |
|
Capital Assets |
0.0 |
0.0 |
0.0 |
|
Fixed Assets |
0.2 |
0.3 |
0.4 |
|
Other
Amounts Receivable |
0.0 |
0.0 |
0.0 |
|
Amounts Receivable
After More Than One Year |
0.0 |
0.0 |
0.0 |
|
Goods
Purchased for Resale |
21.0 |
17.4 |
18.5 |
|
Stocks |
21.0 |
17.4 |
18.5 |
|
Inventory and
Orders in Progress |
21.0 |
17.4 |
18.5 |
|
Trade
Debtors |
17.3 |
23.3 |
23.8 |
|
Other
Amounts Receivable |
0.7 |
0.6 |
0.6 |
|
Amounts Receivable
Within One Year |
17.9 |
23.9 |
24.4 |
|
Liquid Assets |
0.4 |
0.7 |
0.7 |
|
Adjustment Accounts |
0.0 |
0.0 |
0.0 |
|
Current Assets |
39.3 |
42.0 |
43.6 |
|
Total Assets |
39.5 |
42.4 |
44.0 |
|
Issued
Capital |
4.8 |
4.9 |
5.3 |
|
Capital |
4.8 |
4.9 |
5.3 |
|
Legal
Reserve |
0.5 |
0.5 |
0.5 |
|
Other |
8.7 |
9.0 |
9.6 |
|
Reserves
Not Available for Distribution |
8.7 |
9.0 |
9.6 |
|
Reserves
Available for Distribution |
0.7 |
0.5 |
0.3 |
|
Reserves |
9.9 |
10.0 |
10.4 |
|
Capital and Reserves |
14.7 |
14.9 |
15.7 |
|
Credit
Institutions |
0.0 |
0.0 |
0.1 |
|
Financial
Debts |
0.0 |
0.0 |
0.1 |
|
Other
Amounts Payable |
11.3 |
11.3 |
11.2 |
|
Amounts Due After
More Than One Year |
11.3 |
11.3 |
11.3 |
|
Current
Portion of Amounts Payable After More Than One Year |
0.0 |
0.0 |
0.2 |
|
Credit
Institutions |
10.2 |
11.6 |
8.0 |
|
Financial
Debts |
10.2 |
11.6 |
8.0 |
|
Suppliers |
3.1 |
3.5 |
8.8 |
|
Trade
Debts |
3.1 |
3.5 |
8.8 |
|
Taxes |
0.0 |
0.0 |
0.0 |
|
Remuneration
and Social Security |
0.0 |
0.0 |
0.0 |
|
Taxes,
Wages, and Social Security |
0.1 |
0.0 |
0.0 |
|
Other
Amounts Payable |
0.2 |
0.1 |
- |
|
Amounts Payable
Within One Year |
13.5 |
15.3 |
17.0 |
|
Adjustment Accounts |
0.0 |
0.7 |
0.0 |
|
Creditors |
24.8 |
27.4 |
28.3 |
|
Total Liabilities + Shareholders' Equity |
39.5 |
42.4 |
44.0 |
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.