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Report Date : |
09.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
TEEMANE MANUFACTURING COMPANY PTY LTD |
|
|
|
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Registered Office : |
Along Main Road,
Serowe Private Bag 100 Serowe |
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|
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Country : |
Botswana |
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Date of Incorporation : |
1993 |
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Legal Form : |
Limited
Corporation |
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LINE OF BUSINESS : |
SUBJECT OPERATE AS TRADER, IMPORTER AND EXPORTER OF ALL TYPE
OF DIAMONDS |
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|
|
No. of Employees : |
50 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Botswana |
A2 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
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Off-credit |
D |
BOTSWANA - ECONOMIC OVERVIEW
Botswana has maintained one of the world's highest economic
growth rates since independence in 1966. However, economic growth was negative in
2009, with the industrial sector shrinking by 30%, after the global crisis
reduced demand for Botswana's diamonds. Although the economy recovered in 2010,
GDP growth has again slowed. Through fiscal discipline and sound management,
Botswana transformed itself from one of the poorest countries in the world to a
middle-income country with a per capita GDP of $16,800 in 2012. Two major
investment services rank Botswana as the best credit risk in Africa. Diamond
mining has fueled much of the expansion and currently accounts for more than
one-third of GDP, 70-80% of export earnings, and about one-third of the
government's revenues. Botswana's heavy reliance on a single luxury export was
a critical factor in the sharp economic contraction of 2009. Tourism, financial
services, subsistence farming, and cattle raising are other key sectors.
According to official government statistics, unemployment reached 17.8% in
2009, but unofficial estimates run much higher. The prevalence of HIV/AIDS is
second highest in the world and threatens Botswana's impressive economic gains.
An expected leveling off in diamond production within the next two decades
overshadows long-term prospects. A major international diamond company signed a
10-year deal with Botswana in 2012 to move its rough stone sorting and trading
division from London to Gaborone by the end of 2013. The move may support
Botswana's downstream diamond industry
Source
: CIA
|
Registered Name: |
TEEMANE MANUFACTURING COMPANY PTY LTD |
|
Requested Name: |
TEEMANE MANUFACTURING COMPANY PTY LTD |
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Other Names: |
None |
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Physical Address: |
Along Main Road,
Serowe, |
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Postal Address: |
Private Bag 100 |
|
|
Serowe, |
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Country: |
Botswana |
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Phone: |
267-4630177/4630108 |
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Fax: |
267-4630178 |
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Email: |
None |
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Website: |
None |
|
Legal Form: |
Limited Corporation |
|
|
Date Incorporated: |
1993 |
|
|
Reg. Number: |
Botswana |
|
|
Nominal Capital |
BWP. 100,000 |
|
|
Subscribed Capital |
BWP. 100,000 |
|
|
Subscribed Capital is Subscribed in the following form: |
||
|
|
Position |
Shares |
|
Mr. Eric M. Molale |
Group
Chairman |
|
|
Mr. Phillipe J. C. Mellier |
Dep.
Chairman |
|
|
Mr. Jim Gowans |
MD |
|
|
Mr. Gareth Mostyn |
Group CFO |
|
|
Mr. Peter Beal |
GM |
|
|
Debswana Diamond Company (Pty) Ltd. |
Holding
Co. |
100% |
|
Debswana Diamond Company (Pty) Ltd. |
Parent company. |
|
None |
Subsidiary company. |
|
None |
Affiliated company. |
|
None |
Shareholder of subject firm. |
|
None |
Branches of the firm |
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Registered to operate as trader, importer and exporter of all type of diamonds |
|
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Imports: |
Africa |
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Exports: |
Asia, Europe |
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Trademarks: |
None |
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Terms of sale: |
Cash (40%) and 25-90 days (60%), invoices. |
|
|
|
|
Main Customers: |
firms and organizations |
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Employees: |
50 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Botswana |
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Location: |
Owned premises, 10,000 square feet, |
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Auditors: |
Information not available. |
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Insurance Brokers: |
Information not available. |
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Currency Reported: |
Botswana Pula (BWP.) |
|
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Approx. Ex. Rate: |
1 US Dollar = 17.46 Botswana Pula |
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Fiscal Year End: |
December 31, 2012 |
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Inflation: |
According to information given by independent sources, the inflation at December 31st, 2012 was of 13%. |
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||
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Financial Information not Submitted |
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Profit and Loss (expressed in BWP.) |
||
|
|
|
2012 |
|
Sales |
|
50,000,000 |
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_______________________________________________________________________ |
||
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Bank Name: |
Stanbic Bank |
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Branch: |
Botswana |
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Comments: |
None |
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Experiences: |
Good |
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.
-
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.61.67 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.25 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.