|
Report Date : |
31.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ
BOTSWANA PTY LTD. |
|
|
|
|
Registered Office : |
Private Bag 149/238, Postnet Kgaleview, Gaborone |
|
|
|
|
Country : |
Botswana |
|
|
|
|
Date of Incorporation : |
15.03.2009 |
|
|
|
|
Legal Form : |
Limited Liability Company, Limited by shares |
|
|
|
|
Line of Business : |
Diamond cutting and
mining industry |
|
|
|
|
No. of Employees : |
230 |
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 |
|
Status : |
Satisfactory |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Botswana |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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. The economy has since recovered, with
GDP growth in 2010 at 7.2% and estimated GDP growth in 2011 of 6.2%. 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 $16,300 in 2011. 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 half 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. Although unemployment was 7.5% in 2007 according to official
reports, unofficial estimates place it closer to 40%. The prevalence of
HIV/AIDS is second highest in the world and threatens Botswana's impressive
economic gains. An expected leveling off in diamond mining production within
the next two decades overshadows long-term prospects.
Source
: CIA
|
COMPANY REPORTED: |
SHRENUJ BOTSWANA PTY LTD. |
|||
|
Principal Address: |
Private Bag 149/238, Postnet Kgaleview, Gaborone, Botswana |
|||
|
Telephone: |
+267-3953610/6/3610444/1 |
|||
|
Fax: |
+267-3953613/ 3160461 |
|||
|
Email: |
None |
|||
|
Internet: |
None |
|||
|
Established: |
15/03/2009 |
|||
|
Registration: |
Gaborone, Botswana |
|||
|
Legal Form: |
Limited Liability Company, Limited by shares |
|||
|
Stock Listing: |
Not Listed |
|||
|
Workforce: |
2012 |
|
|
|
|
|
230 |
|
|
|
|
Office & Factories |
|
|||
|
Head offices |
Plot No.20653 Block 3 Industrial Provate BAg 351/238 Kgale View
Gaboran, Botswana |
|||
|
Branches |
|
|||
|
Management/
Directors |
|
|
President/
CEO (1) |
|
|
Name |
Shri. Shreyas K. Doshi |
|
Current Title: |
Chairman and
Managing Director |
|
Remarks |
Top Decision Maker |
|
Director
(2) |
|
|
Name |
Shri. Vishal S.
Doshi |
|
Current Title: |
Director |
No negative information
found.
|
Company Profile: |
|
||
|
Nominal Capital |
BWP. 1,000 |
||
|
Paid in Capital |
BWP. 1,000 |
||
|
Subscribed Capital |
BWP. 1,000 |
||
|
Shareholders |
|
||
|
Name |
Position |
Amount
|
Ratio |
|
Shri. Shreyas K.
Doshi |
Chairman &
MD |
|
|
|
Shri. Vishal S.
Doshi |
Director |
|
|
|
Shri. Nihar Parikh |
Director |
|
|
|
Dr. S A Dave |
Director |
|
|
|
Shri. Suresh N.
Talwar. |
Director |
|
|
|
Shri. Keki M Mistry |
Director |
|
|
|
Shri. Badrinarayan
R. Barwale |
Director |
|
|
|
Shri. S. S. Thakur |
Director |
|
|
|
Mr. Martin Pearson |
Director |
|
|
|
Shrenuj Group |
Holding Co. |
|
|
|
Total |
|
|
100.00% |
|
|
Terms of
payment |
|
Buying
terms |
30% in
cash, 70% on credit |
|
Selling
terms |
80% in
cash, 20% on credit |
|
Affiliated Companies |
Various in the Group |
|
Company (1) |
INTER-GEMS (HK) LIMITED |
|
Company (2) |
C & A DIAMONDS INTERNATIONAL LLC |
|
Company (3) |
SHRENUJ USA |
|
Company (4) |
SHRENUJ GMBH |
|
Company (5) |
SHRENUJ (SHANGHAI) DIAMOND CO. LTD. |
|
Company (6) |
SHRENUJ & COMPANY LIMITED (DIAMONDS) |
|
Company (7) |
SHRENUJ JEWELRY (FAR EAST) LTD |
|
Company (8) |
SHRENUJ JAPAN CORPORATION |
|
Company (9) |
SHRENUJ NV |
|
Company (10) |
SHRENUJ DMCC |
|
Company (11) |
COPEM & SHRENUJ (JV) |
|
Company (12) |
JOMARD SAS (JV) |
|
Company (13) |
ALIJA INTERNATIONAL PTY LTD. |
|
Company (14) |
SIMON GOLUB & SONS |
|
Company (15) |
SWA TRADING COMPANY (JV) |
|
Company (16) |
TRAPZ LLC (JV) |
Na
|
Exchange Rate |
US$ 1 = BWP. 8.03 |
|
Business Activities |
Diamond cutting and mining
industry |
|
Suppliers |
Various
Companeis |
|
Customers |
firms
and organizations |
|
|
|
|
Recent
Sales |
BWP. 68,200,000
(2012 Estimated) |
|
Exports |
None |
|
Export
Ratio |
0.0% |
|
Import
Ratio |
30.0% |
|
Domestic
Market Share |
20.0% |
|
Business Premises |
5000 Sft |
|
Type of occupation
|
Leased |
|
Location |
The subject is located close to a major road network |
|
Premises used as |
Offices |
|
Banking
relationship |
|
|
Main
Banks |
BARCLAYS BANK |
--
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.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
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 –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.57 |
|
|
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.72.23 |
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.