MIRA INFORM REPORT

 

 

Report Date :

12.03.2013

 

IDENTIFICATION DETAILS

 

Name :

THE JEWELLERY GROUP PTY LIMITED

 

 

Registered Office :

Level 14, 182 Victoria Square, Adelaide, South Australia 5000

 

 

Country :

Australia

 

 

Date of Incorporation :

01.03.2007

 

 

Com. Reg. No.:

124077729

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Subject is engaged as a retailer of jewellery

 

 

No. of Employees :

500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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

(31.03.2012)

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 :                          THE JEWELLERY GROUP PTY LIMITED

Other style / Business name :     ZAMEL'S JEWELLERS

Business address :                    Level 14, 182 Victoria Square

Town :                                       Adelaide

Province :                                  South Australia

Zip/postal code :                        5000

Country :                                   Australia

Tel :                                          +61 8 82284557

Fax :                                         +61 8 98426033

Email :                                      accounts@zamels.com.au

Website :                                  www.zamels.com.au

Registered address :                  Level 14, 182 Victoria Square

Town :                                       Adelaide

Province :                                  South Australia

Zip/postal code :                        5000

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        01/03/2007

Legal form :                               Australian Proprietary Company

Chief executive :                        Adrian David Murphy

Issued & paid up capital :           AUD 1

Line of business :                       Retailer of jewellery.

Staff employed :                         500 employees

 

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is modestly experienced

Financial performance :              Financial performance is undetermined

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                              01/03/2007

Legal form :                                                       Australian Proprietary Company

Registration no Australia Company Number:         124077729

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no : Australia Business Number:        25124077729

Registry status :                                                Live/Active

Previous name :                                                 QJ FINANCE PTY LIMITED (initial)

Change of legal form :                                         None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Adrian David Murphy

Designation :                 Chief Executive Officer

Name :                          Lachlan Montagu Cairns Gunn

Designation :                 Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name : Lachlan Montagu Cairns Gunn

Designation : Director and Company Secretary

Appointment date : 18/06/07

Address : Unit 12, 3 King Street

Narrabeen, NSW 2101

Australia

Biography : Born on 05-12-1966 in Sydney, New South Wales, Australia.

Name : Adrian David Murphy

Designation : Director

Appointment date : 03/08/09

Address : Unit 2, 96 Esplanade

Hove, SA 5048

Australia

Biography : Born on 08-08-1969 in United Kingdom.

Staff employed : 500 employees

 

 

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 :        THE JEWELLERY GROUP HOLDINGS PTY LIMITED

Address :                      Level 14, 182 Victoria Square

Adelaide, SA 5000

Australia

No. of shares :               1 Ordinary Share

% of shares : 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              THE JEWELLERY GROUP HOLDINGS PTY LIMITED

Affiliation type : Parent Company

Address :          Level 14, 182 Victoria Square

Adelaide, SA 5000

Australia

Name :              M. SURESH COMPANY PRIVATE LIMITED

Affiliation type : Associate

Address :          BW-6010, Bharat Diamond Bourse

Bandra Kurla Complex, Bandra East

Mumbai 400051

Maharashtra

India

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              St.George Bank

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 :         21 January 2013

ACCC v The Jewellery Group Pty Ltd (No 2): Misleading and Deceptive Conduct

In ACCC v The Jewellery Group Pty Ltd (No 2) [2013] FCA 14 (18 January 2013)

Justice Lander in the Federal Court of Australia has fined The Jewellery Group

(trading as Zamel's) $250,000 for misleading consumers about savings made on

jewellery.

The case is said to have "significant implications" for all retailers in that Justice

Lander found Zamel's had misrepresented savings consumers would make from

purchasing items during sale periods for as many as 44 jewellery items appearing

in Zamel's various catalogues and promotions which had been distributed

nationally and promoted on Zamel's website.

Out of the items of jewelry identified Justice Lander found that Zamel's had not

sold the items at the higher price, or it had sold a very limited quantity at the

higher price prior to the sale commencing. Justice Lander is quoted in his

judgment as saying “the $250,000 penalty reflected the seriousness of the

conduct”.

The case was prosecuted by the ACCC and the chairman is quoted as saying the

penalty “was a clear message to businesses that the court takes a dim view of

this sort of conduct.”

As part of the judgment against it Zamel's is also required to publish corrective

notices in newspapers, on its website, and to implement a trade practices

compliance program and pay the ACCC's costs.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA

 

Description

Date of financial year end :

Comments : The Subject is classified as a small proprietary company by the Australian

Securities & Investments Commission hence is not required to disclose their

financial statement.

A proprietary company is defined as small for a financial year if it satisfies at least

two of the following:

- The consolidated revenue for the financial year of the company and any entities

it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the

company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the

end of the financial year.

The Subject meets all criteria to reveal their financial information however is still

exempted from filling their financial information by the Government of Australia.

 

 

OPERATION DETAILS

 

Main activities : The Subject is engaged as a retailer of jewellery.

The Subject operates jewellery stores under the name Zamel's Jewellers

across Australia.

The Subject has approximately 94 jewellery stores across Australia. The

Subject also sells its products via online. (www.zamels.com.au)

Product & services : Jewellery

Diamonds

Watches

Purchases

International :     Asia, Europe, Africa

Sales

Local :              Yes

International : No exports.

Key events :      11 November 2011

M Suresh Acquires Australia Based Diamond Retailer - The Jewellery

Group

M Suresh Company Pvt Ltd has acquired majority stake in Australia based

- The Jewellery Group Pty Ltd from Sydney based PE firm Quadrant.

The financial details of the deal were not disclosed, however the size is

supposed to be around $30Mn.

Adelaide based The Jewellery Group owns retail stores under the brand

names Zamels and Mazzuchellis. It operates 101 Zamels stores and 26

Mazzuchellis stores. The 56 year old Company was bought by Quadrant in

March 2007 from the Zamel family for about $48Mn.

Quadrant had entered into a 5 year non-compete agreement with Adrian

and Stephen - the founders of The Jewellery Group in 2007. This deal

coincides with an end to the non-compete clause signed by Adrian and

Stephen, allowing them to re-enter the industry.

Quadrant put up the company for sale in September this year and

mandated Deloitte to handle the process. Many suitors including New

Zealand-based jewellery chains Michael Hill and James Pascoe were

interested in acquiring the daimond jewellery seller. According to some

reprots, even Gitanjali Gems was interested in the company.

Mumbai based M Suresh Company is a manufacturer, importer and

exporter of cut and polished diamonds since 1968. Presently, the firm

exports to USA, Europe, Japan, South East Asia, Israel, UAE & Canada. It

also owns two jewellery retail brands - Adora and Amaris - in India and

Karishma retail brand in the US.

Earlier this year, Gitanjali Gems acquired Italy-based jewellery firm DIT

Group SpA, which owns brands like Stefan Hafner, IO Si, Roberta Porrati,

and Nouvelle Bague.

Source: www.dealcurry.com

 

Property & Assets

 

Premises : The Subject operates from premises located at the verified heading

address consisting of an administrative office.

Branches : In addition, the Subject operates from approximately 94 Zamel's Jewellers

stores located in Australia.

 

 

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 : Prepayment, Telegraphic transfer, D/P, D/A, Credit 30-120 days

Sales Term

Local : Cash, Credit card

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.54.29

UK Pound

1

Rs.81.08

Euro

1

Rs.70.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.