MIRA INFORM REPORT

 

 

Report Date :

05.03.2013

 

IDENTIFICATION DETAILS

 

Name :

PROUDS JEWELLERS PTY LTD

 

 

Formerly Known As :

PASCOES AUST. PTY LTD

 

 

Registered Office :

28 Parramatta Road, Summer Hill, New South Wales 2130

 

 

Country :

Australia

 

 

Financials (as on) :

31.05.2012 (Consolidated)

 

 

Date of Incorporation :

27.02.1996

 

 

Com. Reg. No.:

073053273

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Subject is engaged as jewellery, watches and giftware retailer.

 

 

No. of Employees :

5,165 employees

 

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 :

Good

Payment Behaviour :

Regular

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

(31.03.2012)

Current Rating

(30.06.2012)

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

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, 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 also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

Source : CIA

 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                            : PROUDS JEWELLERS PTY LTD

Other style / Business name       : PROUDS THE JEWELLERS / PROUDS, THE JEWELLERS

Business address                      : 28 Parramatta Road

Town                                         : Summer Hill

Province                                    : New South Wales

Zip/postal code                          : 2130

Country                                     : Australia

Tel                                            : +61 2 95816999

Fax                                           : +61 2 95816953

Website                                    : www.prouds.com.au

Registered address                    : 28 Parramatta Road

Town                                         : Summer Hill

Province                                    : New South Wales

Zip/postal code                          : 2130

Country                                     : Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered                      : 27/02/1996

Legal form                                             : Australian Proprietary Company

Chief executive                                      : Terence Edmond Johnstone

Issued & paid up capital                                     : AUD 1

Sales turnover                                        : AUD 597,333,000 (Consolidated 12 months, 31/05/2012)

Net income                                            : AUD 15,612,000 (Consolidated 12 months, 31/05/2012)

Total fixed assets                                   : AUD 391,165,000 (Consolidated 12 months, 31/05/2012)

Line of business                                     : Jewellery, watches and giftware retailer.

Staff employed                                       : 5,165 employees (Subject)

 

Company Analysis

 

Country risk                               : Country risk is minimal

Operation trend                          : Operational trend is progressing

Management experience             : Management is adequately experienced

Financial performance                : Financial performance is very good

Organization structure                : Organizational structure is consistent

Detrimental                                : No detrimental found

Payment history                                    : No payment delays noted

 

 

 

 

STATUTORY DETAILS

 

Registry Data

Registration date                        : 27/02/1996

Legal form                                 : Australian Proprietary Company

Registration no                            Australian Company Number: 073053273

Registered authority                   : Australian Securities and Investments Commission

Fiscal/ Tax no                            : Australian Business Number: 99073053273

Registry status                          : Live/Active

Previous name                           : The Subject was previously known as PASCOES AUST. PTY LTD and 

                                                  changed to the current style on 01-09-1997.

Change of legal form                   : None reported.

Other registration                       : PROUDS, THE JEWELLERS is a business name owned by the Subject

 registered under business registration no: VIC 1360782D / TAS 115483B / QLD BN6724589 / NSW U4455241 / ACT F 00087375.

PROUDS THE JEWELLERS is a business name owned by the Subject registered under business registration no: SA BN03842617 / NT BN00859461 / WA BN09241486.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name                            : Terence Edmond Johnstone

Designation                   : Chief Executive Officer

Name                            : Bob Wright

Designation                   : IT Manager

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name                            : Anne Norman

Designation                   : Director

Appointment date           : 29/03/96

Address                        : 6 Te Kowhai Place

  Remuera, Auckland 1050

  New Zealand

 

Biography                      : Born on 10-07-1945 in New Zealand.

 

Name                            : David Norman

Designation                   : Director

Appointment date           : 29/03/96

Address                        : 6 Te Kowhai Place

 Remuera, Auckland 1050

 New Zealand

 

Biography                      : Born on 02-03-1949 in United Kingdom.

 

Name                            : Terence Edmond Johnstone

Designation                   : Director and Company Secretary

Appointment date           : 01/07/11

Address                        : 6 Leverton Close

  St Ives, NSW 2075

  Australia

 

Biography                      : Born on 15-10-1943 in Waratah, New South Wales, Australia.

 

Staff employed               : 5,165 employees (Subject)

 

Key Advisors

 

Auditors            : PRICEWATERHOUSECOOPERS

  'Darling Park Tower' Suite 2

  201 Sussex Street

  Sydney, NSW 2000

  Australia

 

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          : JAMES PASCOE LIMITED

Address                        : 29 Union Street

  Auckland Central, Auckland 1010

  New Zealand

No. of shares                 : 1 Ordinary Share

% of shares                   : 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name                            : JAMES PASCOE LIMITED

Affiliation type                : Parent Company

Address                        : 29 Union Street

  Auckland Central, Auckland 1010

  New Zealand

 

Name                            : ANGUS & COOTE PTY LTD

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

  Summer Hill, NSW 2130

 Australia

 

Name                            : ANGUS & COOTE INDUSTRIES PTY LTD

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

 Summer Hill, NSW 2130

 Australia

 

Name                            : ANGUS & COOTE PROPERTIES PTY LIMITED

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

 Summer Hill, NSW 2130

 Australia

 

Name                            : ANGUS & COOTE SUPERANNUATION PTY. LTD.

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

 Summer Hill, NSW 2130

 Australia

 

Name                            : ANGUS & COOTE (HOLDINGS) LTD

Affiliation type                : Wholly-owned Subsidiary

Address                        : 4/27 Leeds Street

 Rhodes, NSW 2138

 Australia

 

Name                            : ANGUS & COOTE (VIC) PTY. LTD.

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

 Summer Hill, NSW 2130

 Australia

 

Name                            : GOLDMARK JEWELLERS LIMITED

Affiliation type                : Wholly-owned Subsidiary

Address                        : 29 Union Street

 Auckland Central, Auckland 1010

 New Zealand

 

Name                            : GOLDMARK JEWELLERS PTY LTD

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

  Summer Hill, NSW 2130

 Australia

 

 

Name                            : HARBOUR CITY JEWELLERS PTY LTD

Affiliation type                : Wholly-owned Subsidiary

Address                        : 28 Parramatta Road

 Summer Hill, NSW 2130

 Australia

 

Related companies and corporate

affiliations comments                  : Other companies of the James Pascoe Group should be considered   affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank                : Australia and New Zealand Banking Group Limited

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

 

Source of financial statement                  : Commercial Registry Filings

Financial statement date                        : 31/05/12

Type of accounts                                   : Full audited

Currency                                               : Australia Dollar (AUD)

Exchange rate                                       : 1 USD = AUD 0.98 as of 01-03-2013

 

Summarized Financial Information

Consolidation type            : Consolidated                Consolidated

Currency                      : Australia Dollar (AUD) Australia Dollar (AUD)

Denomination                  : (x1) One                          (x1) One

Date of financial year end    : 31/05/12                          31/05/11

Length of accounts            : 12 months                         12 months

Sale turnover / Income        : 597,333,000                       592,223,000

Profit before tax             : 22,166,000                        27,043,000

Net income                    : 15,612,000                        18,803,000

Non current assets            : 119,850,000                       129,243,000

Current assets                : 271,315,000                       264,657,000

Inventories                   : 244,414,000                       236,234,000

Total assets                  : 391,165,000                       393,900,000

Current liabilities           : 244,397,000                       259,728,000

Non current liabilities       : 12,041,000                        12,886,000

Total liabilities             : 256,438,000                       272,614,000

Share equity                  : 134,727,000                       121,286,000

Retained earning              : 135,898,000                       120,286,000

Comments                      : The consolidated financial information above

                                relates to the Subject and its subsidiaries.

OPERATION DETAILS

 

Main activities

 

The Subject is engaged as jewellery, watches and giftware retailer.

 

Its jewellery includes diamonds, precious stones, gold jewellery, and silver and pearls. The company also offers watches and giftware. In addition, it offers jewellery valuations; jewellery repairs, including resizing, chain and bracelet soldering, charm soldering, clean and polish, claw re-tipping, remakes and remodeling, and hand made pieces; and watch repairs, such as batteries, watch band adjustment or replacement, pin replacement, watch service and clean, and glass replacement.

 

The Subject is part of James Pascoe Limited which owns and operates a chain of jeweler shops in New Zealand and Australia. It offers diamond and gold earrings, pendants, bangles, bracelets, and rings, as well as a selection of gemstone jewellery; gold chains and charms; and jewellery for everyday wear. The company also provides gent's jewellery; watches; and giftware products, including display pieces, wall clocks, barometers, and jewellery boxes/cases. In addition, it offers jewellery repair/resizing, watch repair and battery replacement, and jewellery valuation services, as well as quotations for lost, damaged, and jewellery items. The company was founded in 1937 and is headquartered in Auckland, New Zealand. It has store locations in Whangarei, Auckland, Hamilton, Rotorua, Mt Maunganui, Palmerston North, Napier/Hastings, New Plymouth, Wellington, Nelson/Richmond, Christchurch, Timaru, Dunedin, and Invercargill, New Zealand; and Australia.

 

Purchases

 

International       : Mainly from Asia, Europe, Africa

 

Sales

 

Local                : Yes

International       : No exports.

 

Property & Assets

 

Premises          : The Subject operates from head office located at the verified heading

   address consisting of an administrative office.

Branches          : In addition, the Subject operates from approximately 200 retail stores

  located in Australia.

Other property   : Total Net Book Value of property, plant and equipment as of 31-05-2012

  was AUD 82,643,000.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank : Reserve Bank of Australia

Reserve of foreign exchange & gold                     : US$ 43.879 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                                                             : 2009: 1.8%

  2010: 2.8%

  2011: 3.4%

Unemployment rate                                            : 2009: 5.6%

  2010: 5.2%

 2011: 5.1%

Public debt

(General Government gross debt as

a % GDP)                                                         : 2009: 16.9%

  2010: 20.4%

  2011: 22.9%

Government bond ratings                                    : Standard & Poor's: AAA/Stable/A-1+

  Moody's rating: Aaa

  Moody's outlook: STA

Market value of publicly traded

Shares                                                              : US$1.258 trillion

Largest companies in the country                        : Commonwealth Bank (Banking), BHP Billiton   (Materials), Westpac Banking Group (Banking), Rio  Tinto (Materials), National Australia Bank (Banking),

 ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

 

Total exports                             : US$210.7 billion

Exports commodities                 : Coal, iron ore, gold, meat, wool, alumina, wheat

Total imports                             : US$187.2 billion

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

telecommunication equipment and parts, crude oil and petroleum    products

Export - major partners               : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

  5.5%, UK 4.2%

Import - major partners               : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

  UK 4.3%, Thailand 4.2%

FDI Inflows                                : 2008: US$46,843 million

  2009: US$25,716 million

  2010: US$32,472 million

FDI Outflows                              : 2008: US$33,604 million

  2009: US$16,160 million

  2010: US$26,431 million

Best countries for doing business : 10 out of 183 countries

Global competitiveness ranking     : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

 

Total population             : 22.23 million

Total area                      : 7,692,024 km2

Capital                          : Canberra

Currency                       : Australian dollars (AUD)

Internet users as % of total

Population                     : 76%

 

PAYMENT HISTORY

 

Purchase Term

International                   : L/C, Cash against document, Telegraphic transfer, Credit up to 180 days

Sales Term

Local                            : Cash, Credit card, Bank transfer

 

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.

-          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.55.05

UK Pound

1

Rs.82.74

Euro

1

Rs.71.61

 

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.