MIRA INFORM REPORT
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Report Date : |
07.08.2013 |
IDENTIFICATION DETAILS
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Name : |
MICHAEL HILL WHOLESALE PTY LTD |
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Formerly Known As : |
LEMVEX PTY
LTD |
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Registered Office : |
7 Smallwood
Place, Murarrie, Queensland, Zip/postal code 4172 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
16.04.1987 |
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Com. Reg. No.: |
003274600 |
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Legal Form : |
Australian
Proprietary Company |
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Line of Business : |
Wholesale
distribution of jewellery |
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No. of Employees : |
2,000
employees (Michael Hill Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Australia |
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 |
Australia - ECONOMIC OVERVIEW
The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.
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Source : CIA |
Verified Address
Subject name :
MICHAEL HILL WHOLESALE PTY
LTD
Business
address : 7 Smallwood Place
Town : Murarrie
Province : Queensland
Zip/postal
code : 4172
Country : Australia
Tel : +61 7 33990200
Fax : +61 7 33990270
Email : inquiry@michaelhill.com.au
Website : www.michaelhill.com
Registered
address : 7 Smallwood Place
Town : Murarrie
Province : Queensland
Zip/postal
code : 4172
Country : Australia
Postal address
: GPO Box 2922
Town : Brisbane
Province : Queensland
Zip/postal
code : 4001
Country : Australia
Executive Summary
Date founded
or registered : 16/04/1987
Legal form : Australian
Proprietary Company
Chief
executive : Michael
Robin Parsell
Issued &
paid up capital : AUD 2
Sales turnover
: NZD 511,497,000
(Group-Consolidated 12 months, 30/06/2012)
Net income : NZD 36,511,000
(Group-Consolidated 12 months, 30/06/2012)
Total fixed
assets : NZD
323,648,000 (Group-Consolidated 12 months, 30/06/2012)
Line of
business : Wholesale
distribution of jewellery.
Staff employed
: 2,000 employees
(Michael Hill Group)
Company Analysis
Country risk : Country risk is
minimal
Operation
trend : Operational
trend is steady
Management
experience : Management is
adequately experienced
Financial
performance : Financial
performance is good
Organization
structure : Organizational
structure is stable
Detrimental : No detrimental found
Payment
history : No payment delays
noted
Comments : Larger credit can
still be considered.
Registry Data
Registration
date : 16/04/1987
Legal form : Australian
Proprietary Company
Registration
no Australian
Company Number: 003274600
Registered
authority : Australian
Securities and Investments Commission
Fiscal/ Tax no
: Australian
Business Number: 19003274600
Registry
status : Live/Active
Previous name
: LEMVEX PTY LTD
(initial)
Change of
legal form : None reported.
Key Management
Name : Michael Robin Parsell
Designation : Managing Director
Name : Philip Roy Taylor
Designation : Chief Financial Officer
Appointments
Name : Richard Michael Hill
Designation : Director
Appointment
date : 10/07/87
Address : 424 Arrowtown-Lake Hayes
Road, Rd 1
Queenstown 9371
New Zealand
Biography : Born on 23/12/1938 in
Whangarei, New Zealand.
Name : Ann Christine Hill
Designation : Director
Appointment
date : 10/07/87
Address : 424 Arrowtown-Lake Hayes
Road, Rd 1
Queenstown 9371
New Zealand
Biography : Born on 17/11/1939 in
Yorkshire, United Kingdom.
Name : Philip Roy Taylor
Designation : Director and Company Secretary
Appointment
date : 26/06/09
Address : 12
Ada Street
Taringa, QLD 4068
Australia
Biography : Born on 31/12/1958 in
Whangarei, New Zealand.
Name : Michael Robin Parsell
Designation : Director
Appointment
date : 16/09/87
Address : 74A Bay Street
Cleveland, QLD 4163
Australia
Biography : Born on 23/05/1959 in
Kawakawa, New Zealand.
Staff employed
: 2,000 employees (Michael Hill
Group)
Key Advisors
Auditors : PRICEWATERHOUSECOOPERS
'Riverside Centre', Level 15
123 Eagle Street
Brisbane, QLD 4000
Australia
Composition
Authorized
Capital : AUD 2
No of shares :
2 Ordinary Shares
Share par
value : AUD 1
Issued capital
: AUD 2
Paid up capital : AUD
2
How listed : Full List
Composition
Shareholder
name : MICHAEL HILL JEWELLER (AUSTRALIA)
PTY LTD
Address : 7 Smallwood Place
Murarrie, QLD 4172
Australia
No. of shares
: 2 Ordinary Shares
% of shares : 100%
Structure
Name : DURANTE HOLDINGS PTY
LTD
Affiliation
type : Ultimate
Holding Company
Address : 7 Smallwood Place
Murarrie, QLD 4172
Australia
Comments : Durante Holdings Pty Limited
is wholly owned by the Michael Hill family through
Boxer Hill Trust.
Name : MICHAEL HILL
INTERNATIONAL LIMITED
Affiliation
type : Intermediate
Holding Company
Address : The Offices Of Kensington
Swan, Ground Floor
18 Viaduct Harbour Avenue
Auckland Central, Auckland 1010
New Zealand
Comments : Michael Hill International
Limited manufactures, wholesales and distributes
jewellery. The Company's products consist of rings, bracelets,
watches and other
items. Michael Hill operates stores in New Zealand, Australia,
Canada and the
United States.
Name : MICHAEL HILL JEWELLER
(AUSTRALIA) PTY LTD
Affiliation
type : Parent Company
Address : 7 Smallwood Place
Murarrie, QLD 4172
Australia
Name : MICHAEL HILL JEWELLER
LIMITED
Affiliation
type : Sister
Company
Address : The Offices Of Kensington
Swan, Ground Floor
18 Viaduct Harbour Avenue
Auckland Central, Auckland 1010
New Zealand
Name : MICHAEL HILL
MANUFACTURING PTY. LIMITED
Affiliation
type : Sister
Company
Address : 7 Smallwood Place
Murarrie, QLD 4172
Australia
Related companies and corporate affiliations comments
Other
companies of the Michael Hill Group should be considered affiliates of the
Subject
Bank Details
Name of bank :
Australia and New
Zealand Banking Group Limited
Address : Australia
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.
Description
Source of
financial statement : Public
Record Sources
Financial
statement date : 30/06/12
Type of
accounts : Full
audited
Currency : New
Zealand, Dollar (NZD)
Exchange rate
: 1
USD = NZD 1.18 as of 05-02-2013
Summarized
Financial Information
Consolidation
type : Group
Consolidated Group
Consolidated
Currency : New
Zealand, Dollar New
Zealand, Dollar
(NZD) (NZD)
Denomination :
(x1)
One (x1)
One
Date of
financial year end : 30/06/12
30/06/11
Length of
accounts : 12
months 12
months
Sale turnover
/ Income : 511,497,000
489,330,000
Profit before
tax : 42,036,000 39,985,000
Net income : 36,511,000
34,499,000
Non current
assets : 112,720,000
102,962,000
Current assets
: 210,928,000
190,146,000
Inventories : 187,017,000
173,055,000
Total assets :
323,648,000
293,108,000
Current
liabilities : 68,786,000
57,192,000
Non current
liabilities 60,503,000 57,540,000
Total
liabilities : 129,289,000
114,732,000
Share equity :
194,359,000
178,376,000
Retained
earning : 188,483,000
171,111,000
Comments : The
group’s consolidated financial information above relates to the
Subject’s Intermediate Holding Company Michael Hill International
Limited and all its subsidiaries which include the Subject.
Main
activities : The
Subject engages in wholesale distribution of jewellery.
The Subject operates as a subsidiary of Michael Hill International
Limited
based in New Zealand. Michael Hill International Limited is
publicly traded on the New Zealand Stock Exchange.
Michael Hill International Limited, together with its
subsidiaries, engages in the manufacture and retail of jewellery under the
Michael Hill brand.
The company offers a range of engagement rings, wedding rings,
bracelets, watches and bridal sets. As of June 30, 2012, it operated 153 stores
in Australia, 53 stores in New Zealand, 37 stores in Canada, and 9 stores in
the United States. The company was founded in 1979 and is
headquartered in Brisbane.
Purchases
International : Mainly from India, Hong Kong, Belgium
Sales
Local : Yes
International
: New
Zealand
Property &
Assets
Premises : The
Subject operates from premises located at the verified heading
address consisting of a production facility, warehouse and
administrative
office
Branches : None
reported.
Central bank : Reserve Bank of Australia
Reserve of foreign exchange & gold : US$ 43.879 billion
Gross domestic product – GDP : US$ 1.586 trillion
GPP (Purchasing power parity) : 954.296 billion of International dollars
GDP per capita - current prices : US$ 68,916
GDP - composition by sector : agriculture: 4% industry: 25.6% services: 70.4%
Inflation : 2009: 1.8%
2010: 2.8%
2011: 3.4%
Unemployment rate 2009: 5.6 %
2010: 5.2 %
2011:5.1 %
Public debt
(General Government gross
debt as a % GDP) 2009: 16.9%
2010: 20.4%
2011: 22.9 %
Government bond
ratings Standard
& Poor's: AAA-/Stable/A-1+
Moody's rating: Aaa
Moody's outlook: STA
Market value of publicly traded shares US$ 1.258 trillion
Largest companies in the country Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac
Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)
Trade & Competitiveness Overview
Total exports US$210.7
billion
Exports commodities coal,
iron ore, gold, meat, wool, alumina, wheat
Total imports US$187.2
billion
Imports commodities machinery and transport
equipment, computers and office machines, telecommunication equipment and
parts, crude oil and petroleum products
Export - major partners Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India
5.5%, UK 4.2%
Import - major partners China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany
5.2%, UK 4.3%, Thailand 4.2%
FDI Inflows 2009: US$46,843 million
2009: US$25,716 million
2010: US$32,472 million
FDI Outflows 2008: US$33,604 million
2009: US$ 16,160 million
2010: US$26,431 million
Best countries for doing business : 10
out of 183 countries
Global competitiveness ranking : 20
(ranking by country on a basis of 142, the first is the best)
Country and Population Overview
Total population :
22.23 million
Total area :
7,692,024 km2
Capital : Canberra
Currency : Australian Dollars (AUD)
Internet users as % of total population :
76%
Purchase Term
International
: L/C, Telegraphic
transfer, D/P, Credit 30-120 days
Sales Term
Local : Prepayment,
Bank transfer, D/P, Credit 30-120 days
International
: L/C, Telegraphic
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
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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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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 –
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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.61.53 |
|
UK Pound |
1 |
Rs.94.37 |
|
Euro |
1 |
Rs.81.58 |
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 |
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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 |
|
<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.