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Report Date : |
16.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
BAMU SPRL |
|
|
|
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Registered Office : |
1519
Av Forgerons, C Limete ,Kinshasa |
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|
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Country : |
Congo |
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Date of Incorporation : |
10.07.1993 |
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Com. Reg. No.: |
DRC |
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|
|
Legal Form : |
Societe Privee Anonyme
Responsabilite Limitee |
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|
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Line of Business : |
Exporters of gold |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Congo |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ECONOMIC OVERVIEW - CONGO
The economy is a mixture of subsistence hunting and
agriculture, an industrial sector based largely on oil and support services,
and government spending. Oil has supplanted forestry as the mainstay of the
economy, providing a major share of government revenues and exports. Natural
gas is increasingly being converted to electricity rather than being flared,
greatly improving energy prospects. New mining projects, particularly iron ore,
that may enter production as early as late 2013 may add as much as $1 billion
to annual government revenue. Economic reform efforts have been undertaken with
the support of international organizations, notably the World Bank and the IMF,
including recently concluded Article IV consultations. Denis SASSOU-Nguesso,
who returned to power when the war ended in October 1997, publicly expressed
interest in moving forward on economic reforms and privatization and in
renewing cooperation with international financial institutions. Economic
progress was badly hurt by slumping oil prices and the resumption of armed
conflict in December 1998, which worsened the republic's budget deficit. The
current administration faces difficult economic challenges of stimulating
recovery and reducing poverty. The drop in oil prices during the global crisis
reduced oil revenue by about 30%, but the subsequent recovery of oil prices
boosted the economy's GDP from 2009-12. In March 2006, the World Bank and the
International Monetary Fund (IMF) approved Heavily Indebted Poor Countries
(HIPC) treatment for Congo, which received $1.9 billion in debt relief under
the program in 2010. Congo also restructured old defaulted London Club debt in
2007, which effectively cancelled 80% of its private debt. Contracts with China
have increased Congo's publicly held debt. Officially the country became a net
external creditor as of 2011, with external debt representing less than 22% of
GDP and debt servicing less than 3% of government revenue.
Source
: CIA
Registered Name: BAMU SPRL
Requested Name: BAMU SPRL
Other Names: BAMU
TRADING SPRL
Physical Address: 1519 Av Forgerons, C Limete
,Kinshasa
Postal Address: 05 10ème Rue Quartier Industriel
Limete,
Kinshasa
Country: DRC
Phone: 243-898953026/815008599
Fax: 243-898953026
Email: None
Website: None
CREDIT OPINION
Financial Index as of December 2012 shows subject firm
with a medium risk of credit.
Legal Form: Societe Privee Anonyme Responsabilite Limitee.
Date Incorporated: 10-July-1993
Reg. Number: DRC
Nominal Capital CFA. 1,000,000
Subscribed Capital CFA. 1,000,000
Subscribed
Capital is Subscribed in the following form:
Position Shares
Mr. Bamu Jhon Director
Mr. Edwin Anyona Manager
None Parent company.
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
None Branches of the firm
Registered to operate as exporters of gold
Imports: Asia
Exports: Europe,
UK
Trademarks: None
Terms of sale: Cash
(70%) and 25-90 days (30%), invoices.
Main Customers: Local
agencies,General Public
Employees: 15
employees.
Vehicles: Several
motor vehicles.
Territory of sales: DRC
Location: Rented
premises, 2,500 square feet,
Auditors: Information not available.
Insurance Brokers: Information not available.
Currency Reported: West African Franc (CFA.)
Approx. Ex. Rate: 1 US Dollar = 493.57 West African Franc
Fiscal Year End: December 31, 2012
Inflation: According to
information given by independent sources, the inflation at December 31st,
2012 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in CFA.)
2012
Sales 120,000,000
Bank Name: CITIBANK
Branch: DRC
Comments: None
None
This information was obtained from outside sources
other than the subject company itself and confirmed the above subject.
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.
-
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.
-
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.61.51 |
|
|
1 |
Rs.94.98 |
|
Euro |
1 |
Rs.81.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
SHG |
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.