MIRA INFORM REPORT

 

 

Report Date :

13.06.2013

 

IDENTIFICATION DETAILS

 

Name :

BROWNS THE DIAMOND STORE (PTY)LTD

 

 

Formerly Known As :

BROWNS THE DIAMOND STORE CC

 

 

Registered Office :

105 Conrad Drive, Blairgowrie, Johannesburg

 

 

Country :

South Africa

 

 

Date of Incorporation :

29.04.2013

 

 

Com. Reg. No.:

K2013/073395/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Jewellery Retailers

 

 

No. of Employees :

330

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

South Africa

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH AFRICA - ECONOMIC OVERVIEW

 

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. State power supplier Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability. South Africa''s economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

Source : CIA


Summary

 

Subject Name

BROWNS THE DIAMOND STORE CC

Country

South Africa

Subject Contact Person

MICHELLE - Financial Manager

Assessment

This is a well-established family business. On investigation contact was made with MICHELLE, the Financial Manager of the company. The company has been in business for more than thirteen years. No adverse information was revealed during the investigation. Trade references were declined and considered confidential. A bank code C was obtained for an amount of R 100 000 over 30 days. Please see the information obtained below.

 

 

Company Information

 

Registered Name

BROWNS THE DIAMOND STORE (PTY)LTD

Trading as/ Division Name

BROWNS

Previous Name

BROWNS THE DIAMOND STORE CC

Date of Name Change

2003-05-30

Registration Number

K2013/073395/07

Registration Date

2013/04/29

Date Commenced Trading

2002/09/23

Age of Business

11 Years 2 Months

History of Business

BROWNS THE DIAMOND STORE (PTY)LTD was registered in September 2002 and later underwent a conversion from a Close Corporation registration number 2002/080356/23 to a private company in 2013.

History of Principals

There are two active directors within the business.

Shareholders/Members/Partners of subject and % holding

40 % - GAVIN BROWN. The remaining shareholders were undisclosed.

Authorised Share Capital

R 0.00

Issued Share Capital/Members Contribution

R 0.00

Status

In Business

Operations Assessment

The company is involved in the manufacture of fine jewelry items such as, necklaces and pendants, rings, bracelets, earrings, eternity bands, tanzanite and natural fancy coloured diamonds and charms.

Industry/ Customers

Jewellery retailers

Export

None

Export Countries

 

Import

Yes

Import Countries

India

Major Industry Code / SICC

39211

Definition of Code

Jewellery and related articles of precious and semi-precious compounts

Head Office Physical Address

105 Conrad Drive, Blairgowrie, JOHANNESBURG

Head Office Postal Address

P O BOX 782992, HOUGHTON, 2041

Current Tel Number

0114387920

Cell Number

Undisclosed

Current Fax Number

0112502001

Current Email Address

michelle.n@brownsjewellery.com

Web Site Address

www.brownsjewellers.com

Comments

 

 

 

Auditors Information

 

Company Registered Name

RWFC FINANCIAL CONSALTANTS INCORPORATED

Trading Name

RWFC FINANCIAL CONSULTANTS

Registration Number

2001/000693/21

Physical Address

Garrun Building, 33 Central Street, HOUGHTON ESTATE, 2198

Postal Address

PO Box 1364, HOUGHTON, 2041

Contact Person

RIDWAAN

Contact Number

0114833333

Email

ridwaan@rwfc.co.za

Principals

3

Judgements Against Subject

None On Record

Judgements Against Principals

None On Record

Subject Verified as Client

Yes

Practice Number

900397

VAT Number

4060194109

Tax Number

9389114142

BEE Status

None

Financial Year End

February

No of years in Business

10 Years 1 Months

Website

www.rwfc.co.za

Comment

 

 

Previous Auditors Information - No Information on Record

 

 

Tax Information

 

Vat Number

4820207076

Status

ACTIVE

Vat Liable Date

2003/07/01

Tax Number

Undisclosed

Tax Clearance Expire Date

 

Financial Year End

February

Comment

 

Black Economic Empowerment

Status

No

Score

 

Expire Date

 

BEE Certificate Available

No

Comment

The subject is not BEE compliant.

ISO Status

Type of ISO Grade

None

ISO Certificate

No

ISO Certificate Available

No

Certified by an Accredited Agent

No

Comment

The subject is not ISO certified.

Workman's compensation

Registered

Yes

Compliance Certified

Yes

Comment

 

 

 

Company Structure

 

Subsidiaries

 

Subsidiary Company

There are no reported subsidiairies of the company

Shareholding

 

Registration Number

 

Import / Export

 

Comment

 

 

Employees

 

Number of Employees

330

1. Salaried employees

330

2. Waged employees

0

3. Permanent employees

330

4. Casual employees

0

5. Contracted employees

0

Comment

 

Company Fleet

Company Fleet

No of vehicles:

Ownerd/Leased

Value

Outstanding Balance

Fleet Operations

 

 

 

 

The Fleet is made up of

 

Comment

Further informatin was not made available

Cars

Owned

 

Offices

 

Offices

Offices

Head Office Owned/ Rented

Leased

Rental Company

Premises are leased from an affiliate company

Owned by

 

Value

 

Bond

 

Bank

 

Lease Agreement

None

Lease Expire Date

 

Type of Premises

Office

Comment

 

 

Branch Information - No Information on Record

 

Management Overview

Organisation Chart

 

Level

Position

Name

Comment

 

1                                  DIRECTOR                                GAVIN WAYNE BROWN

1                                  DIRECTOR                                GAVIN WAYNE BROWN

 

 

Key Deals - No Information on Record

Company Structure (Ownership)

 

Note: One level up and all levels down

 

Holding

Company

Sub

Comment

40 % - GAVIN BROWN

BROWNS THE DIAMOND STORE CC

 

 

 

Trade References Information - No Information on Record

 

Adverse Information on Subject

Judgements

Judgements

NONE

Possible Judgements

NONE

Civil Court

NONE

RDs

NONE

Comment

No Information on Record

 

Business Rescue

 

Date registered

Business rescue practitioner

Contact Information

Details

Comment

 

THERE IS NO INFORMATION FOUND ON FILE

No Information on Record

No Information on Record

No Information on Record

 

Default Listings

 

Date

Details

Comment

 

THERE IS NO INFORMATION FOUND ON FILE

No Information on Record

Notarial Bonds

Date

Details

Comment

 

THERE IS NO INFORMATION FOUND ON FILE

No Information on Record

 

Bank Information

 

Bank

NEDBANK

Branch

Business Central Gauteng

Brach Code

198765

Bank Account Number

1284085775

Type of Account

CURRENT ACCOUNT

Account Name

BROWNS THE DIAMOND STORE CC

Overdraft Facilities

Undisclosed

Bank Code

C - For R 100 000

Bank Comment

Good for the amount quoted, if strictly in the way of business.

 

Bank Code History - No Information on Record

 

Previous Bank Account Information - No Information on Record

 

 

Deeds Information

 

Property Interests for CompanyBROWNS THE DIAMOND STORE CC

 

Title Deed No.

ST30061/2008

Erf/Site No.

167803,0

Deeds Office

CAPE TOWN

Physical Address

V & A WATERFRONT CAPE TOWN

Property Type

Sectional Title

Extent / Size

7.0SQM

Purchase Date

2008/07/18

Purchase price

 

% Ownership

0.00

Bond Holder

 

Bond Number

K11162007S

Bond Amount

 

Comment

 

 

Title Deed No.

ST30061/2008

Erf/Site No.

167803,0

Deeds Office

CAPE TOWN

Physical Address

V & A WATERFRONT CAPE TOWN

Property Type

Sectional Title

Extent / Size

13.0SQM

Purchase Date

2008/07/18

Purchase price

 

% Ownership

0.00

Bond Holder

 

Bond Number

K11172007S

Bond Amount

 

Comment

 

 

Title Deed No.

ST30061/2008

Erf/Site No.

167803,0

Deeds Office

CAPE TOWN

Physical Address

V & A WATERFRONT CAPE TOWN

Property Type

Sectional Title

Extent / Size

12.0SQM

Purchase Date

2008/07/18

Purchase price

 

% Ownership

0.00

Bond Holder

 

Bond Number

K11162007S

Bond Amount

 

Comment

 

 

Title Deed No.

ST30061/2008

Erf/Site No.

167803,0

Deeds Office

CAPE TOWN

Physical Address

V & A WATERFRONT CAPE TOWN

Property Type

Sectional Title

Extent / Size

271.0SQM

Purchase Date

2008/07/18

Purchase price

 

% Ownership

0.00

Bond Holder

 

Bond Number

K11162007S

Bond Amount

 

Comment

 

 

Principals

 

Number of Principals

2

Average Age of Active Principals

47

Active Principals Principal - 1of 2 LAWRENCE BROWN

Surname

BROWN

First Name

LAWRENCE

Other Names

NONE

Marital Status

Single

ID Number

6411065012083

Verified ID Number

Yes

Current Age

48 Years 7 Months

Designation

Director

Status

Active

Appointment Date

2013/04/29

Physical Address (at time of Appointment)

5 OAKWOOD ESTATES, OAKLANDS ROAD, ATHOLL, 2196

Postal Address

P O BOX 782992, SANDTON, 2146

Current Tel Number

 

Cell number

 

Shareholding/Membership

0.00

 

Principal's Adverse - No information on record

 

Business Information forLAWRENCE BROWN

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

BROWNS THE DIAMOND STORE (PTY)LTD

K2013/073395/07

In Business

0

0

No

 

GOLDSMITH AND SILVER JEWELLERY MANUFACTURERS CC

B2008/149749/23

In Business

5 Years 5 Months

0

No

 

KIMBERLEY HOUSE

JEWELLERS

(PTY)LTD

M2002/024060/07

In Business

11 Years 11 Months

0

No

 

SANDTON

JEWELLERY DESIGN CORPORATION CC

B2002/004857/23

In Business

11 Years 11 Months

0

No

 

 

Principal Previous Business Interest

Average Age of Previous Business      20 Years

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

BOXCORP SA MANUFACTURERS CC

B1990/034260/23

Deregistration Final

23 Years 11 Months

0

No

 

HYPERGOLD JEWELLERS (PTY)LTD

M1997/015117/07

Deregistration Final

16 Years 4 Months

0

No

 

LARRY AND GAVIN JEWELLERS CC

B1990/018318/23

Deregistration Final

23 Years 11 Months

0

No

 

 

Principal's Deeds Information - No information on record

Principal - 2of 2 GAVIN BROWN

 

Surname

BROWN

First Name

GAVIN

Other Names

NONE

Marital Status

Married

ID Number

6811215022082

Verified ID Number

Yes

Current Age

44 Years 7 Months

Designation

Director

Status

Active

Appointment Date

2013/04/29

Physical Address (at time of

UNIT 1, 97 ATHOLL ROAD, ATHOLL, 2146

Appointment)

 

Postal Address

P O BOX 976, NORTHLANDS, 2116

Current Tel Number

 

Cell number

0824122668

Shareholding/Membership

40 %

 

Principal's Adverse - No information on record

 

Business Information forGAVIN BROWN

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

BROWNS THE DIAMOND STORE (PTY)LTD

K2013/073395/07

In Business

0

0

No

 

GOLDSMITH AND SILVER JEWELLERY MANUFACTURERS CC

B2008/149749/23

In Business

5 Years 5 Months

0

No

 

SANDTON

JEWELLERY DESIGN CORPORATION CC

B2002/004857/23

In Business

11 Years 11 Months

0

No

 

 

Principal Previous Business Interests

Average Age of Previous Business           18 Years

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

BOXCORP SA MANUFACTURERS CC

B1990/034260/23

Deregistration Final

23 Years 11 Months

0

No

 

GLENHURST PROPERTIES 3 (PTY)LTD

M2000/014047/07

Deregistration Final

13 Years 1 Months

0

No

 

HYPERGOLD JEWELLERS (PTY)LTD

M1997/015117/07

Deregistration Final

16 Years 4 Months

0

No

 

LARRY AND GAVIN JEWELLERS CC

B1990/018318/23

Deregistration Final

23 Years 11 Months

0

No

 

 

Principal's Deeds Information - No information on record

 


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.58.27

UK Pound

1

Rs.91.16

Euro

1

Rs.77.50

 

 

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%)

 

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.