MIRA INFORM REPORT

 

 

Report Date :

19.08.2013

 

IDENTIFICATION DETAILS

 

Name :

BOLTON GEMS PTY LTD

 

 

Registered Office :

Suite 8, 326 Gympie Road, Strathpine, Queensland 4500

 

 

Country :

Australia

 

 

Date of Incorporation :

19.03.2007

 

 

Com. Reg. No.:

124481778

 

 

Legal Form :

Australian Proprietary Company

 

 

LINE OF BUSINESS :

THE SUBJECT ENGAGES AS DIAMONDS, PRECIOUS AND SEMI PRECIOUS STONES   MERCHANT.

 

 

No. of Employees :

20 employees

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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, 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.

 

Source : CIA

 

 


 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                            : BOLTON GEMS PTY LTD

 

Business address                      : Suite 8, 326 Gympie Road

Town                                        : Strathpine

Province                                   : Queensland

Zip/postal code                         : 4500

Country                                     : Australia

Tel                                            : +61 7 32056311

Fax                                           : +61 7 32050399

Website                                    : www.boltongems.com.au

 

Registered address                   : Suite 8, 326 Gympie Road

Town                                        : Strathpine

Province                                   : Queensland

Zip/postal code                         : 4500

Country                                     : Australia

Postal address                          : P.O. Box 206

Town                                        : Strathpine

Province                                   : Queensland

Zip/postal code                         : 4500

Country                                     : Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered        : 19/03/2007

Legal form                                : Australian Proprietary Company

Chief executive                         : Brett Bolton

Issued & paid up capital            : AUD 1

Line of business                        : Diamonds, precious and semi precious stones merchant.

Staff employed                         : 20 employees

 

 

Company Analysis

 

Country risk                               : Country risk is minimal

Operation trend                         : Operational trend is steady

Management experience            : Management is modestly experienced

Financial performance               : Financial performance is fair

Organization structure                : Organizational structure is stable

Detrimental                               : No detrimental found

Payment history                        : No payment delays noted

Credit amount asked                  : Not described.

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date                                               : 19/03/2007

Legal form                                                        : Australian Proprietary Company

Registration no Australian Company Number      : 124481778

Registered authority                                          : Australian Securities and Investments Commission

Fiscal/ Tax no : Australian Business Number       : 68051966382

Registry status                                                  : Live/Active

Previous name                                                  : A.C.N. 124 481 778 PTY LTD (initial)

Change of legal form                                         : None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                : Brett Bolton

Designation      : Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name                            : Brett Bolton

Designation                  : Director

Appointment date          : 19/03/07

Address                        :'Lot 5', 727 Clear Mountain Road

  Clear Mountain, QLD 4500

  Australia

Biography                     : Born on 17-08-1977 in Brisbane, Queensland, Australia.

Staff employed             : 20 employees

 

 

SHARE CAPITAL

 

Composition

Authorized Capital                     : AUD 1

No of shares                             : 1 Ordinary Share

Share par value                         : AUD 1

Issued capital                            : AUD 1

Paid up capital                          : AUD 1

 

OWNERSHIP / SHAREHOLDERS

 

How listed                                  Full List

 

Composition

Shareholder name                     : Brett Bolton

Address                                    : 'Lot 5', 727 Clear Mountain Road

  Clear Mountain, QLD 4500

  Australia

No. of shares                            : 1 Ordinary Share

% of shares                              : 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Related companies and corporate

affiliations comments                            : None reported.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank                           : Bank of Queensland

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.

 

 

 

 

FINANCIAL DATA

 

Description

 

Comments : External sources states that the Subject annual turnover is between AUD 10 to AUD 20 million.

 

The Subject is classified as a small proprietary company by the Australian Securities & Investments Commission hence is not required to disclose their financial statement.

 

A proprietary company is defined as small for a financial year if it satisfies at least two of the following:

- The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the end of the financial year.

 

 

OPERATION DETAILS

 

Main activities               : The Subject engages as diamonds, precious and semi precious stones   merchant.

 

Purchases

International                  : Mainly from India, Hong Kong, China, Belgium

 

Sales

Local                            : Yes

International                  : New Zealand

 

Property & Assets

Premises                      : The Subject operates from premises at the verified heading address

consisting of an administrative office.

Branches                      : None reported.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank                                          : Reserve Bank of Australia

Reserve of foreign exchange & gold      : US$ 46.714 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                                                : 2010: 2.8%

  2011: 3.4%

  2012: 2.7%

Unemployment rate                               : 2010: 5.2%

  2011: 5.1%

  2012: 5.2%

Public debt

(General Government gross debt as

a % GDP)                                             : 2010: 20.4%

 2011: 22.9%

 2012: 24%

Government bond ratings                      : Standard & Poor's: AAA

 Moody's rating: Aaa

 Moody's outlook: STA

Market value of publicly traded

Shares                                                  : US$1.198 trillion

 

Largest companies in the country

: Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs), Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming),Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance),BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources(Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron &

Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas

Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group

(Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

 

Trade & Competitiveness Overview

 

Total exports                 : US$263.9 billion

Exports commodities    : Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport   equipment

Total imports                 : US$239.7 billion

Imports commodities     : Machinery and transport equipment, computers and office machines,

 telecommunication equipment and parts; crude oil and petroleum products

Export - major partners : China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners : China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows                   : 2009: US$26,554 million

  2010: US$35,556 million

  2011: US$41,317 million

FDI Outflows                 : 2009: US$16,693 million

  2010: US$12,791 million          

  2011: US$19,999 million

 

Best countries for doing business          : 10 out of 185 countries

Global competitiveness ranking              : 20 (ranking by country on a basis of 144, the first is the best)

 

 

Country and Population Overview

 

Total population            : 22.68 million

Total area                      : 7,692,024 km2

Capital                          : Canberra

Currency                       : Australian dollars (AUD)

Internet users as % of total

Population                    : 79%

 

 

PAYMENT HISTORY

 

 

Purchase Term

International      : Telegraphic transfer, D/P, Credit 30-120 days

 

Sales Term

Local                : Bank transfer, Cash, Prepayment, Credit 30-90 days

International      : 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

 

-            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.61.81

UK Pound

1

Rs.96.56

Euro

1

Rs.82.45

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.