MIRA INFORM REPORT

 

 

Report Date :

09.05.2013

 

IDENTIFICATION DETAILS

 

Name :

L S DIAMONDS CC

 

 

Registered Office :

Suite 426, S A J C Jewelery Centre 225 Main Street, Johannesburg

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.03.2008

 

 

Com. Reg. No.:

B2008/060414/23

 

 

Legal Form :

Closed Corporation

 

 

Line of Business :

Retail trade in diamonds and fine jewelry

 

 

No. of Employees :

Not Available 

 

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 :

Unknown

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

 

 

 

Subject Name

L S DIAMONDS CC

Country

South Africa

Subject Contact Person

Accounts - 0113346216

Assessment

This is an established business.

 

On investigation contact was made with the accounts department of the subject.

 

All the information on the subject was declined as the subject will require a request from the principal enquirer before any information may be revealed.

 

Please see the available information on the subject below.

 

 

Company information

 

Registered Name

L S DIAMONDS CC

Trading as/ Division Name

L S DIAMONDS

Previous Name

None

Date of Name Change

None

Registration Number

B2008/060414/23

Registration Date

2008/03/18

Date Commenced Trading

2008-03-18

Age of Business

5 Years 2 Months

History of Business

The subject was established as a new business in 2008 and operations commenced immediately.

History of Principals

There are 2 active members within the business

Shareholders/Members/Partners of subject and % holding

85 % - LIOR SITTON, 15 % - MASECHABA MALULEKA

Authorised Share Capital

R0.00

Issued Share Capital/Members Contribution

R0.00

Status

In Business

Operations Assessment

Retail trade in diamonds and fine jewelry.

Industry/ Customers

Jewelry stores

Major Industry Code / SICC

62392

Definition of Code

Retail trade in jewellery, watches and clocks

Head Office Physical Address

Suite 426, S A J C Jewelery Centre 225 Main Street, JOHANNESBURG

Head Office Postal Address

P O BOX 37172, BIRNAM PARK, 2015

Current Tel Number

0113346216

 

 

Auditors information

 

Company Registered Name

LUTRIN ABRAMS SKLAR

Trading Name

LUTRIN ASSOCIATES

Registration Number

4806225092085

Physical Address

12 Pongola Cres, Sandton, SANDOWN, 2196

Postal Address

P 0 BOX 37172, BIRNAM PARK, 2015

Contact Number

0114440044

Principals

1

Judgements Against Subject

None on

Judgements Against Principals

None on

Subject Verified as Client

Yes

Practice Number

902973

VAT Number

4880185782

Tax Number

Unavailable

BEE Status

Unavailable

Financial Year End

Unavailable

No of years in Business

5

Website

Unavailable

Previous Auditors Information - No Information on Record

 

 

Tax information

 

Vat Number

4060248376

Status

ACTIVE

Vat Liable Date

2008/03/18

Tax Number

9480467167

Financial Year End

February

 

Black Economic Empowerment Information - No Information on Record

 

ISO Information - No Information on Record

 

Work Mans Information - No Information on Record

 

 

Company Structure

 

Subsidiaries Information - No Information on Record

 

Employees Information - No Information on Record

 

Company Fleet Information - No Information on Record

 

Offices Information - No Information on Record

 

Branch Information - No Information on Record

 

 

Management Overview

 

Organisation Chart

Level

Position

Name

Comment

 

1

Member

LIOR SITTON

 

 

1

Member

MASECHABA MALULEKA

 

 

Company Structure (Ownership)

Adverse Information on Subject

Note: One level up and all levels down

 

Holding

Company

Sub

Comment

85 % - LIOR SITTON

L S DIAMONDS CC

 

 

15 % - MASECHABA MALULEKA

L S DIAMONDS CC

 

 

 

Key Deals - No Information on Record

 

Trade References Information - No Information on Record

 

 

Adverse Information on Subject

 

Judgements - No information on record

 

Business Rescue - No Information on Record

 

Default Listing - No information on record

 

Notarial Bonds - No information on record

 

Bank Information - No Information on Record

 

Bank Code History - No Information on Record

 

Previous Bank Account Information - No Information on Record

 

Deeds Information - No information on record

 

 

 

 

Principals

 

Number of Principals

2

Average Age of Active Principals

37

 

Active Principals Principal - 1of 2 LIOR SITTON

Surname

SITTON

First Name

LIOR

ID Number

730114

Verified ID Number

No

Current Age

40

Designation

Member

Status

Active

Appointment Date

2008/03/18

Physical Address (at time of Appointment)

23 DICKIE STREET, MARAISTEYN PARK, EDENVALE, 1609

Postal Address

P 0 BOX 2533, RIVONIA, 2128

Shareholding/Membership

85 %

 

Principal's Adverse - No information on record

 

Business Information for LIOR SITTON

 

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

LIOR DIAMONDS CC

B2005/102056/23

Conversion CO/CC or CC/CO

7 Years 10 Months

0

No

 

L S DIAMONDS CC

B2008/060414/23

In Business

5 Years 2 Months

0

No

 

 

Principal's Previous Business Interests - No information on record

 

Principal's Deeds Information - No information on record

 

Principal - 2of 2 MASECHABA MALULEKA

Surname

MALULEKA

First Name

MASECHABA

ID Number

7812220134085

Verified ID Number

Yes

Current Age

35

Designation

Member

Status

Active

Appointment Date

2008/03/18

Physical Address (at time of Appointment)

714 HEARBYMDINGI STREET, ORLANDO EAST, 1804

Postal Address

714 HEARBYMDINGI STREET, ORLANDO EAST, ORLANDO EAST, 1804

Current Tel Number

0113349940

Cell number

0825306210

Shareholding/Membership

15 %

 

Principal's Adverse - No information on record

 

Business Information for MASECHABA MALULEKA

 

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

L S DIAMONDS CC

B2008/060414/23

In Business

5 Years 2 Months

0

No

 

DIAMOND INDUSTRY TRANSFORMATION FORUM OF SOUTH AFRICA

M2011/006071 /08

In Business

2 Years 2 Months

0

No

 

Principal's Previous Business Interests - No information on record

 

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.54.16

UK Pound

1

Rs.83.88

Euro

1

Rs.70.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.