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Report Date : |
16.02.2013 |
IDENTIFICATION DETAILS
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Name : |
LEO SCHACHTER BOTSWANA (PTY) LTD |
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Registered Office : |
Private Bag. 0024 molepolole, |
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Country : |
Botswana |
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Date of Incorporation : |
15.04.1997 |
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Legal Form : |
Limited Liability Company, Limited by shares |
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LINE OF BUSINESS : |
MANUFACTURERS OF POLISHED DIAMONDS. |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. Although the economy recovered in 2010,
GDP growth has again slowed. 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 $16,800 in 2012. 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. Unofficial
estimates place unemployment at close 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 production within the next two decades
overshadows long-term prospects. A major international diamond company signed a
10-year deal with Botswana in 2012 to move its rough stone sorting and trading
division from London to Gaborone by the end of 2013. The move will support
Botswana's downstream diamond industry
Source : CIA
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COMPANY REPORTED: |
LEO SCHACHTER BOTSWANA (PTY) LTD |
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Trade Name |
LEO SCHACHTER DIAMONDS |
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Principal Address: |
Private Bag. 0024 molepolole, botswana |
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Telephone: |
+267-5920815 |
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Fax: |
+267-5920814 |
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Email: |
botswana@lsdco.com |
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Internet: |
www.lsdco.com |
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Established: |
15/4/1997 |
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Registration: |
botswana |
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Legal Form: |
Limited Liability Company, Limited by shares |
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Stock Listing: |
Not Listed |
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Workforce: |
2012 |
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400 |
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Office & Factories |
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Head offices |
Plot 655 Industrial Estate , molepolole, botswana |
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Branches |
None |
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Management/
Directors |
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President/
CEO (1) |
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Name |
Christopher
Mamalelala |
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Current Title: |
Managing Director |
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Remarks |
Top Decision Maker |
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Director
(2) |
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Name |
Marina de Jager |
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Credit Check of Subject, President & CEO (as of report date) |
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Payment Morale: |
In the documents at our disposal nothing adverse has been shown so
far. |
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CREDIT RATING: |
Financial situation is average. |
No negative
information found.
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Company Profile: |
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Nominal Capital |
BWP. 1,000,000 |
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Paid in Capital |
BWP. 1,000,000 |
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Subscribed Capital |
BWP. 1,000,000 |
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Shareholders |
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|
Name |
Position |
Amount
|
Ratio |
|
Christopher
Mamalelala |
MD |
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Marina de Jager |
Director |
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Leo Schachter
Diamonds Llc |
Holding Co |
|
100.00% |
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Total |
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100.00% |
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Terms of payment |
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Buying
terms |
30% in cash, 70% on credit |
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Selling
terms |
80% in cash, 20% on credit |
|
Affiliated Companies |
Various Worlwide |
Na
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Exchange Rate |
US$ 1 = BWP 8.25 |
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Business Activities |
manufacturers of
polished diamonds. |
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Suppliers |
William Goldberg Diamonds, Lee Heng Diamond Group |
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Customers |
Reatil Jewellers, Affiliated Companies |
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Recent
Sales |
BWP.
600,000,000 (2012 Estimated) |
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Exports |
None |
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Export
Ratio |
0.0% |
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Import
Ratio |
10.0% |
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Domestic
Market Share |
20.0% |
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Business Premises |
1000 Sft |
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Type of occupation
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Leased |
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Location |
The subject is located close to a major road network |
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Premises used as
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Offices, Shop |
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Banking
relationship |
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Main
Banks |
Stanbic Bank |
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|
FRB Bank |
COMMENTS
--
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.