MIRA INFORM REPORT
|
Report Date : |
22.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
Euro Gems S.r.l. |
|
|
|
|
Registered Office : |
Via Cappuccini, 4, 20100 -
Milano (MI) |
|
|
|
|
Country : |
Italy |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
23.06.1999 |
|
|
|
|
Legal Form : |
Sole-Member Limited Liability Company |
|
|
|
|
Line of Business : |
Wholesale of Clocks, Watches and Jewellery |
|
|
|
|
No. of Employees : |
From 6 to 10 |
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) |
|
Italy |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ITALY - ECONOMIC OVERVIEW
Italy has a diversified industrial economy, which is divided
into a developed industrial north, dominated by private companies, and a less-developed,
highly subsidized, agricultural south, where unemployment is high. The Italian
economy is driven in large part by the manufacture of high-quality consumer
goods produced by small and medium-sized enterprises, many of them
family-owned. Italy also has a sizable underground economy, which by some
estimates accounts for as much as 17% of GDP. These activities are most common
within the agriculture, construction, and service sectors. Italy is the
third-largest economy in the euro-zone, but its exceptionally high public debt
and structural impediments to growth have rendered it vulnerable to scrutiny by
financial markets. Public debt has increased steadily since 2007, topping 126%
of GDP in 2012, and investor concerns about the broader euro-zone crisis at
times have caused borrowing costs on sovereign government debt to rise to
euro-era. During the second half of 2011 the government passed three austerity
packages to reduce its budget deficit and help bring down borrowing costs.
These measures included a hike in the value-added tax, pension reforms, and
cuts to public administration. The government also faces pressure from
investors and European partners to sustain its recent efforts to address
Italy's long-standing structural impediments to growth, such as labor market
inefficiencies and widespread tax evasion. In 2012 economic growth and labor
market conditions deteriorated, with growth at -2.3% and unemployment rising to
nearly 11%, with youth unemployment around 35%. The government has undertaken
several reform initiatives designed to increase long-term economic growth.
Italy's GDP is now 7% below its 2007 pre-crisis level.
Source
: CIA
Company Name and Address
|
Euro Gems S.r.l.
|
|
Via |
Cappuccini, |
4 |
|
20100 |
- Milano |
(MI) |
-IT- |
Summary
|
Fiscal Code |
: |
12870180150 |
|
Legal Form |
: |
Sole-Member Limited Liability Company |
|
start of Activities |
: |
10/06/2002 |
|
Equity |
: |
1.500.000 |
|
Turnover Range |
: |
3.750.000/5.000.000 |
|
Number of Employees |
: |
from 6 to 10 |
Activity
Wholesale of clocks, watches and jewellery
Legal Data
Legal Form : Sole-Member Limited Liability
Company
|
Fiscal Code : 12870180150 |
|
Foreign Trade Reg. no. : MI331997 since
27/03/2003 |
|
Chamber of Commerce no. : 226253 of |
|
Chamber of Commerce no. : 1591328 of since
26/07/1999 |
|
V.A.T. Code : 12870180150 |
|
Establishment date |
: 23/06/1999 |
|
Start of Activities |
: 10/06/2002 |
|
Legal duration |
: 31/12/2050 |
|
Nominal Capital |
: 100.000 |
|
Subscribed Capital |
: 100.000 |
|
Paid up Capital |
: 100.000 |
Members
|
Agarwal |
Mahendra Kumar |
|
|
|
Born in Jaipur |
( ) |
on 12/12/1961 |
- Fiscal Code : GRWMND61T12Z222G |
|
|
Residence: |
Bramampuri Khura 27 |
Jaipur |
- IN - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Director |
22/05/2008 |
|
|
|
Board Chairman |
22/05/2008 |
|
|
|
|
No Prejudicial
events are reported |
|
No Protests
registered |
|
|
Corino |
Vittorina |
|
|
Born in Alessandria |
(AL) |
on 14/08/1962 |
- Fiscal Code : CRNVTR62M54A182A |
|
|
|
Residence: |
|
Garibaldi |
, 30 |
- 15044 |
Quargnento |
(AL) |
- IT - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Director |
22/05/2008 |
|
|
|
|
No Protests
registered |
|
|
Agrawal |
Pushpendra |
|
|
|
Born in Jaipur |
( ) |
on 19/08/1985 |
- Fiscal Code : GRWPHP85M19Z222U |
|
|
|
Residence: |
P36 Govind Takh Te Shai Road |
Jaipur |
- IN - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Director |
26/05/2009 |
|
|
|
Sole partner |
|
|
|
|
|
No Prejudicial
events are reported |
|
|
No Protests
registered |
Companies
connected to members *
*checkings have been performed on a national
scale.
In this module the companies in which members
hold/held positions are listed.
The Members of the subject firm are not
reported to be Members in other companies.
Capital Shareholders
Shareholders' list as at date of data
collection:
|
Firm's Style / Name |
Seat / Residence |
Fiscal Code |
Owned Shares |
% Ownership |
|
Agrawal Pushpendra |
Jaipur - IN - |
GRWPHP85M19Z222U |
|
100,00 |
Direct Participations
The Company under review has participations
in the following Companies:
|
Firm's Style |
Seat |
Fiscal Code |
Owned Shares
Amount |
% Ownership |
since |
until |
Share Status |
|
Il Tari'- Societa' Consortile Per Azioni |
Marcianise - IT - |
05825080632 |
14.094 .Eur |
0,36 |
|
|
Active |
Firm's location and structure
In order to carry out its activities the firm
uses the following locations:
|
- |
Legal and
operative seat |
|
|
Cappuccini |
, 4 |
- 20100 |
- Milano |
(MI) |
- IT - |
|
PHONE |
: 0276003326 |
|
- |
Branch |
(Sales office) |
since 30/08/2005 |
|
Repubblica |
, 4/H |
- 15048 |
- Valenza |
(AL) |
- IT - |
|
- |
Branch |
|
since 04/10/2011 |
|
Mazzini Giuseppe |
, 12 |
- 20100 |
- Milano |
(MI) |
- IT - |
|
PHONE |
: 0272003227 |
|
FAX |
: 0272008678 |
|
Employees |
: 8 |
|
Assistants |
: 1 |
|
Fittings and Equipment for a value of 31.000 |
Eur |
|
Stocks for a value of 2.630.000 |
Eur |
Historical Information and/or Firm's Status
CHANGES TO THE
LEGAL FORM:
|
Former legal form |
New legal form |
Changement Date |
|
Limited partnership |
Limited liability company |
22/05/2008 |
COMPANY STYLE
MODIFICATIONS:
|
Former Style |
New Style |
Changement Date |
|
EURO GEMS SAS DI DILIP KUMAR DAMAMI |
EURO GEMS S.A.S. DI AGARWAL MAHENDRAKUMAR |
29/11/2004 |
|
EURO GEMS S.A.S. DI AGARWAL MAHENDRAKUMAR |
EURO GEMS S.R.L. |
11/06/2008 |
EX-MEMBERS /
EX-POSITIONS:
|
Agarwal |
Ritesh |
|
|
Born in Jaipur |
( ) |
on 01/05/1982 |
- Fiscal Code : GRWRSH82E01Z222B |
|
|
|
Residence: |
36, Shai Road |
Jaipur |
- IN - |
|
Ex-Postions |
|
Director |
Protests
Protests checking on the subject firm has
given a negative result.
Data Base Prejudicial Events Search
Search performed on a National Scale
|
Prejudicial
Events Search Result: NEGATIVE |
Search performed on a specialized data base.
Legal Procedures
None reported,
standing to the latest received edition of the Official Publications.
Financial and Economical Analysis
Subject is active since 2002
The eonomic-financial analysis is based on
the latest 3 b/s.
Under the financial profile unstable results
are noted. with a loss in the last financial year. The turnover is growing in
the last financial year (+26,47%).
A loss is registered as to the operating
result (-0,17%).
the operating loss amounts to Eur. -10.237.
The economic management produced a gross
operating margin of Eur. 35.814 recording a -69,69% decrease.
The analysis shows a fair financial position
as the indebtedness volume is acceptable (3,56) but with an increase as against
the previous accounting period.
The equity capital is equal to Eur.
1.252.063 , unchanged as opposed to the preceding year.
Total indebtedness was equal to Eur.
4.767.651 (Eur. 243.991 was the value of m/l term debts) , rising as opposed to
the previous year (+21,17%).
The recourse to financial credit is within
the limits; on the other hand the recourse to suppliers' credit is rated as
fairly high even in comparison with the sector's.
Liquidity is however good.
Trade credits average terms are slow, on
average 211,8 days. and higher than the average of the sector.
A negative cash flow marked the year 2011
totalling Eur. -12.724.
Labour cost expenses amount to Eur. 215.869
, representing 4,75% on the total of production costs. , whereas the incidence
of such costs on sales revenues is equal to 4,86%.
If compared to the sales volume (-0,7%), the
impact of the financial charges is limited.
Financial Data
|
|
Complete balance-sheet for the year |
31/12/2011 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
4.438.620 |
|
Profit (Loss) for the period |
-58.775 |
|
|
|
Complete balance-sheet for the year |
31/12/2010 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
3.509.407 |
|
Profit (Loss) for the period |
47.390 |
|
|
|
Complete balance-sheet for the year |
31/12/2009 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
2.768.845 |
|
Profit (Loss) for the period |
32.911 |
|
|
|
Complete balance-sheet for the year |
31/12/2008 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
1.760.337 |
|
Profit (Loss) for the period |
13.316 |
Balance Sheets
From our constant monitoring of the relevant
Public Administration offices, no more recent balance sheets result to have
been filed.
|
- Balance Sheet as
at 31/12/2011 - 12 Mesi - Currency: - Amounts x 1 |
|
- Balance Sheet
as at 31/12/2010 - 12 Mesi - Currency: - Amounts x 1 |
|
- Balance Sheet
as at 31/12/2009 - 12 Mesi - Currency: - Amounts x 1 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
RATIOS |
Value
Type |
as at 31/12/2011 |
as at 31/12/2010 |
as at 31/12/2009 |
Sector Average |
|
COMPOSITION ON
INVESTMENT |
|
|
|
|
|
|
Rigidity Ratio |
Units |
0,12 |
0,13 |
0,03 |
0,09 |
|
Elasticity Ratio |
Units |
0,86 |
0,85 |
0,95 |
0,89 |
|
Availability of stock |
Units |
0,43 |
0,39 |
0,50 |
0,26 |
|
Total Liquidity Ratio |
Units |
0,44 |
0,46 |
0,46 |
0,54 |
|
Quick Ratio |
Units |
0,01 |
0,04 |
0,01 |
0,03 |
|
COMPOSITION ON
SOURCE |
|
|
|
|
|
|
Net Short-term indebtedness |
Units |
3,56 |
2,71 |
11,53 |
3,95 |
|
Self Financing Ratio |
Units |
0,20 |
0,25 |
0,08 |
0,17 |
|
Capital protection Ratio |
Units |
0,97 |
0,89 |
0,57 |
0,62 |
|
Liabilities consolidation quotient |
Units |
0,06 |
0,01 |
0,01 |
0,10 |
|
Financing |
Units |
3,81 |
2,88 |
11,65 |
4,85 |
|
Permanent Indebtedness Ratio |
Units |
0,25 |
0,26 |
0,08 |
0,29 |
|
M/L term Debts Ratio |
Units |
0,05 |
0,01 |
0,01 |
0,07 |
|
Net Financial Indebtedness Ratio |
Units |
0,59 |
0,22 |
1,13 |
1,04 |
|
CORRELATION |
|
|
|
|
|
|
Fixed assets ratio |
Units |
2,02 |
1,92 |
2,98 |
2,37 |
|
Current ratio |
Units |
1,17 |
1,16 |
1,05 |
1,18 |
|
Acid Test Ratio-Liquidity Ratio |
Units |
0,59 |
0,63 |
0,50 |
0,80 |
|
Structure's primary quotient |
Units |
1,65 |
1,88 |
2,80 |
1,48 |
|
Treasury's primary quotient |
Units |
0,01 |
0,06 |
0,01 |
0,04 |
|
Rate of indebtedness ( Leverage ) |
% |
491,18 |
394,54 |
1281,17 |
602,26 |
|
Current Capital ( net ) |
Value |
784.014 |
635.082 |
178.603 |
191.984 |
|
RETURN |
|
|
|
|
|
|
Return on Sales |
% |
-0,29 |
2,63 |
2,41 |
2,03 |
|
Return on Equity - Net- ( R.O.E. ) |
% |
-4,69 |
3,47 |
10,61 |
6,31 |
|
Return on Equity - Gross - ( R.O.E. ) |
% |
-3,30 |
4,11 |
13,10 |
17,00 |
|
Return on Investment ( R.O.I. ) |
% |
-0,17 |
1,36 |
2,30 |
4,18 |
|
Return/ Sales |
% |
-0,23 |
2,09 |
3,31 |
3,46 |
|
Extra Management revenues/charges incid. |
% |
n.c. |
64,58 |
35,96 |
27,96 |
|
Cash Flow |
Value |
-12.724 |
92.193 |
66.696 |
44.823 |
|
Operating Profit |
Value |
-10.237 |
73.379 |
91.527 |
74.603 |
|
Gross Operating Margin |
Value |
35.814 |
118.182 |
125.312 |
111.383 |
|
MANAGEMENT |
|
|
|
|
|
|
Credits to clients average term |
Days |
211,80 |
222,65 |
220,96 |
113,70 |
|
Debts to suppliers average term |
Days |
304,41 |
359,12 |
365,75 |
118,14 |
|
Average stock waiting period |
Days |
213,12 |
214,91 |
257,76 |
72,90 |
|
Rate of capital employed return ( Turnover
) |
Units |
0,72 |
0,65 |
0,70 |
1,25 |
|
Rate of stock return |
Units |
1,69 |
1,68 |
1,40 |
4,88 |
|
Labour cost incidence |
% |
4,86 |
4,49 |
3,85 |
8,14 |
|
Net financial revenues/ charges incidence |
% |
-0,70 |
-0,49 |
-1,84 |
-1,38 |
|
Labour cost on purchasing expenses |
% |
4,75 |
4,58 |
3,98 |
8,25 |
|
Short-term financing charges |
% |
0,65 |
0,44 |
1,41 |
2,76 |
|
Capital on hand |
% |
138,56 |
153,55 |
143,48 |
79,85 |
|
Sales pro employee |
Value |
739.770 |
265.261 |
922.948 |
397.742 |
|
Labour cost pro employee |
Value |
35.978 |
11.904 |
35.518 |
33.267 |
Market / Territory Data
|
Population living in the province |
: |
|
|
Population living in the region |
: |
|
|
Number of families in the region |
: |
|
3.839.216Monthly family expences average in the
region (in Eur..) :
|
- per food products |
: |
|
|
- per non food products |
: |
|
|
- per energy consume |
: |
|
Sector Data
The values are calculated on a base of 9.175
significant companies.
The companies cash their credits on an
average of 114 dd.
The average duration of suppliers debts is
about 118 dd.
The sector's profitability is on an average
of 2,03%.
The labour cost affects the turnover in the
measure of 8,14%.
Goods are held in stock in a range of 73 dd.
The difference between the sales volume and
the resources used to realize it is about 1,25.
The employees costs represent the 8,25% of
the production costs.
Statistical Detrimental Data
Statistcally the trade activity shows
periods of crisis.
The area is statistically considered lowly
risky.
In the region 50.886 protested subjects are
found; in the province they count to 24.765.
The insolvency index for the region is 0,55,
, while for the province it is 0,66.
Total Bankrupt companies in the province :
22.523.
Total Bankrupt companies in the region :
39.612.
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.54.04 |
|
|
1 |
Rs.83.95 |
|
Euro |
1 |
Rs.70.93 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.