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Report Date : |
25.04.2013 |
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 : |
Belgium |
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Financials (as on) : |
31.12.2011 |
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Year of Incorporation : |
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 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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) |
|
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 bank.
Source
: CIA
Diamond Creations
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Business
Description
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Wholesale trade in diamonds |
Industry
|
Industry |
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ANZSIC 2006: |
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NACE 2002: |
|
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NAICS 2002: |
423940 - Jewelry, Watch, Precious Stone, and
Precious Metal Merchant Wholesalers |
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UK SIC 2003: |
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UK SIC 2007: |
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US SIC 1987: |
5094 - Jewelry, Watches, Precious Stones, and
Precious Metals |
Key Executives
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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
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Executives Report
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31-Dec-2011 |
31-Dec-2009 |
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Period Length |
52 Weeks |
52 Weeks |
|
Filed Currency |
EUR |
EUR |
|
Exchange Rate
(Period Average) |
0.71919 |
0.719047 |
|
Consolidated |
No |
No |
|
|
|
|
|
Turnover |
72.2 |
66.6 |
|
Other Operating Income |
0.2 |
0.2 |
|
Operating Income |
72.4 |
66.8 |
|
Purchases |
72.0 |
63.6 |
|
Increase or Decrease
in Stocks |
-0.6 |
2.3 |
|
Raw Materials, Consumables, and Goods for
Release |
71.4 |
65.8 |
|
Services and Sundry Goods |
0.5 |
0.4 |
|
Remuneration, Social Security Charges, and
Pensions |
0.2 |
0.2 |
|
Depreciation of and Other Amounts Written Off
of Formation Expense, Intangible and Tangible Fixed Assets |
0.1 |
0.1 |
|
Other Operating Charges |
0.0 |
0.0 |
|
Operating Charges |
72.2 |
66.5 |
|
Income From Financial Fixed Assets |
- |
0.0 |
|
Other Financial Income |
3.9 |
3.2 |
|
Financial Income |
3.9 |
3.2 |
|
Interest and Other Debt Charges |
0.0 |
0.0 |
|
Other Financial Charges |
3.9 |
3.4 |
|
Financial Charges |
3.9 |
3.4 |
|
Other Extraordinary Charges |
- |
0.0 |
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Extraordinary Charges |
- |
0.0 |
|
Income Taxes |
0.0 |
0.0 |
|
Adjustment of Income Taxes and Write-Back of
Tax Provisions |
- |
0.0 |
|
Income Taxes |
0.0 |
0.0 |
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To Other Reserves |
0.1 |
0.0 |
|
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 |
|
Employees |
4 |
3 |
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|
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Annual Balance
Sheet |
|
Financials in:
USD (mil) |
|
|
31-Dec-2011 |
31-Dec-2009 |
|
Filed Currency |
EUR |
EUR |
|
Exchange Rate |
0.770327 |
0.696986 |
|
Consolidated |
No |
No |
|
|
|
|
|
Intangible Assets |
0.0 |
- |
|
Land & Buildings |
- |
0.5 |
|
Plant, Machinery, and
Equipment |
0.0 |
0.1 |
|
Furniture and Vehicles |
0.0 |
0.0 |
|
Other Tangible Assets |
0.4 |
0.0 |
|
Tangible Assets |
0.5 |
0.6 |
|
Amounts Receivable and
Cash Guarantees |
0.0 |
0.0 |
|
Other Capital Assets |
0.0 |
0.0 |
|
Capital Assets |
0.0 |
0.0 |
|
Fixed Assets |
0.5 |
0.6 |
|
Raw Materials and
Consumables |
5.4 |
2.8 |
|
Stocks |
5.4 |
2.8 |
|
Inventory and Orders in Progress |
5.4 |
2.8 |
|
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 |
|
Liquid Assets |
2.6 |
0.9 |
|
Adjustment Accounts |
0.0 |
0.0 |
|
Current Assets |
27.0 |
18.7 |
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Total Assets |
27.5 |
19.3 |
|
Issued Capital |
0.0 |
0.0 |
|
Capital |
0.0 |
0.0 |
|
Legal Reserve |
0.0 |
0.0 |
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Other |
5.9 |
6.6 |
|
Reserves Not Available
for Distribution |
5.9 |
6.6 |
|
Untaxed Reserves |
0.0 |
0.0 |
|
Reserves Available for
Distribution |
0.9 |
0.7 |
|
Reserves |
6.8 |
7.3 |
|
Capital and Reserves |
6.9 |
7.4 |
|
Other Loans |
3.8 |
3.7 |
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Financial Debts |
3.8 |
3.7 |
|
Amounts Due After More Than One Year |
3.8 |
3.7 |
|
Credit Institutions |
0.1 |
- |
|
Financial Debts |
0.1 |
- |
|
Suppliers |
13.8 |
4.7 |
|
Trade Debts |
13.8 |
4.7 |
|
Taxes |
0.1 |
0.0 |
|
Remuneration and
Social Security |
0.0 |
0.0 |
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Taxes, Wages, and
Social Security |
0.1 |
0.0 |
|
Other Amounts Payable |
2.9 |
3.5 |
|
Amounts Payable Within One Year |
16.9 |
8.2 |
|
Adjustment Accounts |
0.0 |
- |
|
Creditors |
20.6 |
11.9 |
|
Total Liabilities + Shareholders' Equity |
27.5 |
19.3 |
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.
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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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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.
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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.54.30 |
|
|
1 |
Rs.82.88 |
|
Euro |
1 |
Rs.70.80 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.