MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SUPERSTARS GMBH. DIAMOND EXPORT/IMPORT

 

 

Registered Office :

Friedenstr. 78 D 75173 Pforzheim

 

 

Country :

Germany

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

25.09.1981

 

 

Com. Reg. No.:

HRB 501709

 

 

Legal Form :

Private limited company

 

 

LINE OF BUSINESS :

WHOLESALE OF CLOCKS AND WATCHES AND JEWELRY

 

 

No. of Employees :

6

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Germany

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

GERMANY - ECONOMIC OVERVIEW

 

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.5% in 2012. GDP contracted 5.1% in 2009 but grew by 4.2% in 2010, and 3.0% in 2011, before dipping to 0.7% in 2012 - a reflection of low investment spending due to crisis-induced uncertainty and the decreased demand for German exports from recession-stricken periphery countries. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011. In 2012 Germany reached a budget surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. By 2014, the federal government wants to balance its budget. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

Source : CIA

 


Company name and address

 

SUPERSTARS GMBH. DIAMOND EXPORT/IMPORT

 

 Company Status:         active

                                    Friedenstr. 78

                                    D 75173 Pforzheim

                                    Telephone:07231/28094-24

                                    Telefax:  07231/28094-10

                                    E-mail:   superstars_germany@gmx.de

 

 

CONCLUSION

 

 Business relations are permissible.

 

LEGAL FORM                Private limited company

 Date of foundation:      25.09.1981

 Registered on:             03.11.1981

 Commercial Register:   Local court 68159 Mannheim

 under:                          HRB 501709

 

 Share capital:                          EUR            153,387.56

 

 Shareholder:

                      Kaushik R. Metha

                      Carl-Schurz-Str. 127

                      D 75180 Pforzheim

                      born: 09.06.1956

                      Share:             EUR            153,387.56

 Manager:

                      Kaushik R. Metha

                      Carl-Schurz-Str. 127

                      D 75180 Pforzheim

                      born: 09.06.1956

                      Marital status: married

 

 

 COMPANY HISTORY

 

 03.11.1981 - 17.07.2000            Superstars GmbH Diamond Export / Import

                                                Carl-Schurz-Str. 127

                                                D 75180 Pforzheim

                                                Private limited company

 

 

 BUSINESS ACTIVITIES

 

 Main industrial sector

 46480   Wholesale of clocks and watches and jewelry

 

 

FINANCIAL INFORMATION

 

 Payment experience:    within agreed terms

 

 Negative information:   We have no negative information at hand.

 

 Balance sheet year:      2011

 

 

REAL ESTATE

 

 Type of ownership:       Tenant

 Address                       Friedenstr. 78

                                    D 75173 Pforzheim

 

 Land register documents were not available.

 

 

 BANKERS

 

 SPARKASSE PFORZHEIM CALW, PFORZHEIM

 Sort. code: 66650085, BIC: PZHSDE66XXX

 

 

FINANCIAL FIGURES

 

 Turnover:                     2011                 EUR          1,392,010.00

 Profit:                                      2011                 EUR            384,436.00

 Equipment:                                                      EUR             24,071.00

 Ac/ts receivable:                                              EUR          5,623,581.00

 Liabilities:                                            EUR          7,676,691.00

 Total numbers of vehicles:                                      1

 Employees:                                                                     6

 - thereof permanent staff:                                       3

 - Part-time employees:                                           3

 

 

BALANCE SHEETS

 

 Balance sheet ratios                 01.01.2011 - 31.12.2011

 Equity ratio [%]:                       15.52

 Liquidity ratio:                          0.75

 Return on total capital [%]:       4.18

 Balance sheet grade:                3.3

 

 Balance sheet ratios                 01.01.2010 - 31.12.2010

 Equity ratio [%]:                       17.28

 Liquidity ratio:                          0.63

 Return on total capital [%]:       2.00

 

 Balance sheet ratios                 01.01.2009 - 31.12.2009

 Equity ratio [%]:                       19.04

 Liquidity ratio:                          0.68

 Return on total capital [%]:       6.60

 

 Balance sheet ratios                 01.01.2008 - 31.12.2008

 Equity ratio [%]:                       8.19

 Liquidity ratio:                          0.70

 Return on total capital [%]:       0.22

 

 Equity ratio

 The equity ratio indicates the portion of the equity as compared

 to the total capital. The higher the equity ratio, the better the

 economic stability (solvency) and thus the financial autonomy of

 a company.

 

 Liquidity ratio

 The liquidity ratio shows the proportion between adjusted

 receivables and net liabilities. The higher the ratio, the lower

 the company's financial dependancy from external creditors.

 

 Return on total capital

 The return on total capital shows the efficiency and return on

 the total capital employed in the company. The higher the return

 on total capital, the more economically does the company work

 with the invested capital.

 

 Type of balance

 sheet:                                      Company balance sheet

 

 Financial year:      01.01.2011 - 31.12.2011

 

 ASSETS                                  EUR          9,225,398.30

  Fixed assets                           EUR             24,071.00

   Tangible assets                       EUR             24,071.00

    Other tangible assets / fixtures and

    fittings                             EUR             24,071.00

  Current assets                         EUR          9,200,934.30

   Stocks                                EUR          3,364,666.00

   Accounts receivable                   EUR          5,623,581.41

    Other debtors and assets             EUR          5,623,581.41

   Liquid means                          EUR            212,686.89

  Remaining other assets                 EUR                393.00

   Accruals (assets)                     EUR                393.00

 

 LIABILITIES                             EUR          9,225,398.30

  Shareholders' equity                   EUR          1,458,417.22

   Capital                               EUR            153,387.56

    Subscribed capital (share capital)   EUR            153,387.56

   Balance sheet profit/loss (+/-)       EUR          1,305,029.66

    Profit / loss brought forward        EUR            920,594.10

    Annual surplus / annual deficit      EUR            384,435.56

  Provisions                             EUR             26,200.00

  Liabilities                            EUR          7,676,691.08

   Financial debts                       EUR          1,050,416.63

    Liabilities due to banks             EUR          1,050,416.63

   Other liabilities                     EUR          6,626,274.45

    Unspecified other liabilities        EUR          6,626,274.45

  Other liabilities                      EUR             64,090.00

   Deferred taxes (not included under

   provisions/liabilities)               EUR             64,090.00

  Guarantees and other commitments       EUR            460,060.81

   Discounted bills of exchange          EUR            460,060.81

 

 PROFIT AND LOSS ACCOUNT (cost-summary method) according to Comm.

 Code (HGB)

  Gross result (+/-)                     EUR          1,392,009.97

  Staff expenses                         EUR            224,246.09

   Wages and salaries                    EUR            197,279.01

   Social security contributions and

   expenses for pension plans and

   benefits                              EUR             26,967.08

  Total depreciation                     EUR              6,165.25

   Depreciation on tangible / intangible

   asssets (incl. start-up and exp. of

   bus.                                  EUR              6,165.25

  Other operating expenses               EUR            691,482.96

  Operating result from continuing

  operations                             EUR            470,115.67

  Interest result (+/-)                  EUR            -33,680.55

   Interest and similar income           EUR             24,421.41

   Interest and similar expenses         EUR             58,101.96

    thereof paid to related companies    EUR                166.44

  Financial result (+/-)                 EUR            -33,680.55

  Result from ordinary operations (+/-)  EUR            436,435.12

  Income tax / refund of income tax (+/-)EUR            -50,894.56

  Other taxes / refund of taxes          EUR             -1,105.00

  Tax (+/-)                              EUR            -51,999.56

  Annual surplus / annual deficit        EUR            384,435.56

 

 Type of balance

 sheet:                          Company balance sheet

 

 Financial year:      01.01.2010 - 31.12.2010

 

 ASSETS                                  EUR          6,350,598.17

  Fixed assets                           EUR            160,275.00

   Tangible assets                       EUR             10,475.00

    Other tangible assets / fixtures and

    fittings                             EUR             10,475.00

   Financial assets                      EUR            149,800.00

    Shares in participations /

    subsidiaries and the like            EUR            149,800.00

     Shares in related companies         EUR            149,800.00

  Current assets                         EUR          6,189,987.17

   Stocks                                EUR          2,887,637.00

   Accounts receivable                   EUR          3,300,992.71

    Trade debtors                        EUR          3,240,267.83

    Other debtors and assets             EUR             60,724.88

   Liquid means                          EUR              1,357.46

  Remaining other assets                 EUR                336.00

   Accruals (assets)                     EUR                336.00

 

 LIABILITIES                             EUR          6,350,598.17

  Shareholders' equity                   EUR          1,123,981.66

   Capital                               EUR            153,387.56

    Subscribed capital (share capital)   EUR            153,387.56

   Balance sheet profit/loss (+/-)       EUR            970,594.10

    Profit / loss brought forward        EUR            743,006.54

    Annual surplus / annual deficit      EUR            227,587.56

  Provisions                             EUR             41,943.00

  Liabilities                            EUR          5,166,679.91

   Financial debts                       EUR          1,401,675.36

    Liabilities due to banks             EUR          1,401,675.36

   Other liabilities                     EUR          3,765,004.55

    Trade creditors (for IAS incl. bills

    of exchange)                         EUR          3,217,866.35

    Liabilities from received advance

    payments                             EUR             21,008.40

    Liabililties due to related companiesEUR             49,005.98

    Unspecified other liabilities        EUR            477,123.82

  Other liabilities                      EUR             17,993.60

   Deferred taxes (not included under

   provisions/liabilities)               EUR             17,993.60

 

 PROFIT AND LOSS ACCOUNT (cost-summary method) according to Comm.

 Code (HGB)

  Gross result (+/-)                     EUR            959,617.06

  Staff expenses                         EUR            200,582.92

   Wages and salaries                    EUR            174,848.00

   Social security contributions and

   expenses for pension plans and

   benefits                              EUR             25,734.92

  Total depreciation                     EUR              7,137.00

   Depreciation on tangible / intangible

   asssets (incl. start-up and exp. of

   bus.                                  EUR              7,137.00

  Other operating expenses               EUR            544,453.51

  Operating result from continuing

  operations                             EUR            207,443.63

  Interest result (+/-)                  EUR            -28,524.62

   Interest and similar income           EUR             24,481.68

   Interest and similar expenses         EUR             53,006.30

    thereof paid to related companies    EUR              1,345.29

  Financial result (+/-)                 EUR            -28,524.62

  Result from ordinary operations (+/-)  EUR            178,919.01

  Extraordinary income                   EUR            134,018.80

  Extraordinary expenses                 EUR             32,649.10

  Extraordinary result (+/-)             EUR            101,369.70

  Income tax / refund of income tax (+/-)EUR            -51,643.15

  Other taxes / refund of taxes          EUR             -1,058.00

  Tax (+/-)                              EUR            -52,701.15

  Annual surplus / annual deficit        EUR            227,587.56


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.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.