MIRA INFORM REPORT

 

 

Report Date :

06.03.2013

 

IDENTIFICATION DETAILS

 

Name :

TRANSWORLD DIAMONDS PTY LTD

 

 

Registered Office :

Level 1, 5-7 King William Road, Unley Sa 5061

 

 

Country :

Australia

 

 

Date of Incorporation :

16.10.2009

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

The subject operates in the import and wholesale distribution of jewellery on behalf of the group.

 

 

No. of Employees :

325 to 350 (group)

 

 

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)

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


REGISTERED NAME      

 

TRANSWORLD DIAMONDS PTY LTD

ACN: 140 044 408

ABN: 35 140 044 408

 

Summary Panel

Established

1948

 

Incorporated

2009

 

Status

Trading

 

Line of Business

Import and wholesale of jewellery

Chief Executive Officer

Albert Bensimon

Adverse Listings

Nil

 

 

 

EXECUTIVE SUMMARY

 

The subject operates in the import and distribution of jewellery on behalf of the group.

 

For the last financial year ended 30 June 2012 the subject traded profitably and recorded revenue of $25,000,000.

 

For the same period the group recorded revenue of $65,000,000.

 

On a projected basis the group expects to record revenue of $70,000,000 to $72,000,000 for the current financial year ending 30 June 2013.

 

Current assets include group stock on hand of $25,000,000 to $28,000,000.

 

In regards to asset backing the subjects Director Albert Bensimon is advised to own the premises located at the above listed trading address.

 

 

 

 

 

 

 

 


CORPORATE SEARCH

 

Company Type                        Australian Proprietary Company

 

Incorporation State: VIC

 

Incorporation Date: 16 OCT 2009

 

Registered Office

LEVEL 1,

5-7 KING WILLIAM ROAD,

UNLEY SA 5061

 

Current Directors Total: 1

 

ALBERT BENSIMON – Appointed: 16 OCT 2009

151 FISHER Street MALVERN, South Australia 5061

DOB: 15 FEB 1948

 

Current Secretaries Total: 2

 

IAN COLIN ELLISS – Appointed: 16 OCT 2009

ALBERT BENSIMON – Appointed: 16 OCT 2009

 

Share Structure - Classes Total: 2

 

A CLASS A: 900 – Amount paid: $900

B CLASS B: 100 – Amount paid: $100

 

Shareholders Total: 2

 

B 100 - GOLD DISC PTY. LTD.

A 900 - SHIELS JEWELLERS (SA) PTY LTD

SECURITY INTERESTS            Effective 30 January 2012 the Personal Property Securities Register (PPSR)  was introduced to give the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

As a result of PPS Reform a number of existing Commonwealth, State and Territory personal property security registers will close. Interests registered on existing security interest registers will be migrated to the national PPS Register. Subsequently Registered Charges are no longer lodged with the Australian Securities and Investments Commission (ASIC).
 
Please contact us should you require a search of the PPSR.

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 25 Compton St

                                                ADELAIDE, SA 5000

           

TELEPHONE                             (618) 8110 4110

 

FACSIMILE                                      (618) 8110 4199

 

WEBSIT                                            www.shiels.com.au

                                   

HOLDING ENTITY                      SHEILS JEWELLERS P/L

 

ASSOCIATES ENTITY               24 CARAT NOMINEES P/L (the retail arm of the group)

                                                TRANSWORLD ENTERPRISES P/L

 

GROUP TRADING

STYLES                                    SHIELS JEWELLERS

                                                GRAHAMS JEWELLERS

 

GROUP BRANCHES                 The Group maintains around 45 branches across Australia.

                       

BANK                                       NATIONAL AUSTRALIA BANK

                                                Branch: Adelaide, SA 5000                    

 

EMPLOYEES                            Nil

                                                325 to 350 (group)

 

 

BACKGROUND

 

The subject was incorporated in Victoria on 16 October 2009 as Transworld Diamond P/L before adopting the current style on 20 October 2009.

 

Group operations were established by Jack Shiels in 1948.

 

The current owner purchased the operations of Shiels Jewellers in 1977.

 

OPERATIONS

 

The subject operates in the import and wholesale distribution of jewellery on behalf of the group.

 

The subject distributes all product to the Associated entity Shiels Jewellers (SA) Pty Ltd

 

The Group operates in the retail and repair of jewellery and watches with brands including Flawless Cut, Amadora, Australian Diamond Collection and ECC – Enhance Create Connect.

 

Activities are conducted from premises located at the above listed trading address.

 

ADVERSE

 

A search of of on 1 March 2013 failed to trace any litigation listed against the subject at that date.

 

FINANCES

 

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

 

During the current interview conducted with Financial Controller Michael Amey he advised that the subject operates in the import and distribution of jewellery on behalf of the group.

 

Mr. Amey advised that for the last financial year ended 30 June 2012 the subject traded profitably and recorded revenue of $25,000,000. For the same period the group recorded revenue of $65,000,000.

 

On a projected basis the group expects to record revenue of $70,000,000 to $72,000,000 for the current financial year ending 30 June 2013. The increase in sales is attributable to a growth in group stores particularly in Queensland.

 

Current assets include group stock on hand of $25,000,000 to $28,000,000.

 

Current liabilities include creditors of $5,000,000 to $7,000,000.

 

The subject maintains a financing facility with its bankers which is used to assist in funding working capital requirements.

 

In regards to asset backing the subjects Director Albert Bensimon is advised to own the premises located at the above listed trading address.

 

Further details pertaining to the subjects financial position were unable to be obtained for the current enquiry.

 

TRADE SURVEY

 

The subject imports all requirements. Only one supplier provided for the current enquiry. A trade survey on the Group traced the following accounts:

 

1.       (Catene d’Italia) Nominated supplier is yet to respond to correspondence despite chasing.

 

 

 


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.54.65

UK Pound

1

Rs.82.66

Euro

1

Rs.71.21

 

 

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.