MIRA INFORM REPORT
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Report Date : |
30.05.2013 |
IDENTIFICATION DETAILS
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Name : |
BUSATTI SRL
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Registered Office : |
Via Dei Piatti 1, Milano, 20123 |
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Country : |
Italy |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
14.07.1997 |
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Com. Reg. No.: |
12206760154 |
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Legal Form : |
Private Independent Company |
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Line of Business : |
· Wholesaler of furniture ·
Wholesaler of jewellery · Wholesaler of musical instruments |
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No. of Employees : |
10 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Italy |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 |
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.
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Source : CIA |
Company name & address
Busatti SRL
Via Dei Piatti 1
Milano, 20123
Italy
Tel: +39 02 86996064
Fax: +39 02 86452055
Synthesis
Employees: 10
Company Type: Private Independent
Incorporation Date:
14-Jul-1997
Financials in: USD
(Millions)
Fiscal Year End:
31-Dec-2011
Reporting Currency: Euro
Annual Sales: 3.7
Total Assets: 4.3
Business Description
Busatti SRL is primarily engaged in wholesale of furniture; wholesale of jewellery; wholesale of musical instruments; wholesale of photographic goods; wholesale of toys and games; wholesale of travel and fancy goods; and wholesale of other household goods not elsewhere classified.
Industry
Industry Miscellaneous Capital Goods
ANZSIC 2006: 3739 - Other Goods
Wholesaling Not Elsewhere Classified
NACE 2002: 5147 - Wholesale
of other household goods
NAICS 2002: 4232 - Furniture
and Home Furnishing Merchant Wholesalers
UK SIC 2003: 5147 - Wholesale
of other household goods
UK SIC 2007: 4649 - Wholesale
of other household goods
US SIC 1987: 5094 - Jewelry, Watches,
Precious Stones, and Precious Metals
Key Executives
Name Title
Andrea Luigi Busatti Sole
administrator
1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327
Corporate Overview
Location
Via Dei Piatti 1
Milano, 20123
Italy
Tel: +39 02 86996064
Fax: +39 02 86452055
Sales EUR(mil): 2.7
Assets EUR(mil): 3.3
Employees: 10
Fiscal Year End: 31-Dec-2011
Industry: Miscellaneous
Capital Goods
Incorporation Date: 14-Jul-1997
Company Type: Private
Independent
Quoted Status: Not
Quoted
Registered No.(ITA): 12206760154
Sole administrator: Andrea
Luigi Busatti
Industry Codes
ANZSIC 2006 Codes:
3739 - Other Goods Wholesaling Not Elsewhere Classified
4279 - Other Store-Based Retailing Not Elsewhere Classified
9499 - Other Repair and Maintenance Not Elsewhere Classified
NACE 2002 Codes:
5147 - Wholesale of other household goods
5248 - Other retail sale in specialised stores
5273 - Repair of watches, clocks and jewellery
NAICS 2002 Codes:
4232 - Furniture and Home Furnishing Merchant Wholesalers
453 - Miscellaneous Store Retailers
811490 - Other Personal and Household Goods Repair and Maintenance
US SIC 1987:
5094 - Jewelry, Watches, Precious Stones, and Precious Metals
7631 - Watch, Clock, and Jewelry Repair
599 - Retail Stores, Not Elsewhere Classified
UK SIC 2003:
5147 - Wholesale of other household goods
5273 - Repair of watches, clocks and jewellery
5248 - Other retail sale in specialised stores
UK SIC 2007:
4649 - Wholesale of other household goods
477 - Retail sale of other goods in specialised stores
9525 - Repair of watches, clocks and jewellery
Business
Description
Busatti SRL is primarily
engaged in wholesale of furniture; wholesale of jewellery; wholesale of musical
instruments; wholesale of photographic goods; wholesale of toys and games;
wholesale of travel and fancy goods; and wholesale of other household goods not
elsewhere classified.
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EXECUTIVE REpORT
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Executives |
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Sole administrator |
President |
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Annual Profit & Loss
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31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
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Period Length |
12 Months |
12 Months |
12 Months |
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Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate (Period
Average) |
0.71919 |
0.755078 |
0.719047 |
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Consolidated |
No |
No |
No |
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Total income |
3.7 |
4.5 |
3.3 |
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Net sales |
3.7 |
4.5 |
3.3 |
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Other operating income |
- |
0.0 |
0.0 |
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Raw materials and consumables employed |
2.2 |
2.9 |
2.2 |
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Other expenses |
1.0 |
1.0 |
0.7 |
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Total payroll costs |
0.6 |
0.4 |
0.4 |
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Fixed asset depreciation and amortisation |
0.0 |
0.0 |
0.0 |
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Other operating costs |
0.0 |
0.1 |
0.0 |
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Net operating
income |
-0.1 |
0.1 |
0.0 |
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Total financial income |
0.0 |
-0.1 |
0.0 |
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Total expenses |
0.0 |
0.0 |
0.0 |
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Profit before tax |
-0.1 |
0.0 |
-0.1 |
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Extraordinary result |
0.1 |
0.0 |
0.0 |
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Profit after extraordinary items and
before tax |
0.1 |
0.0 |
-0.1 |
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Total taxation |
0.0 |
0.0 |
0.0 |
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Net profit |
0.0 |
0.0 |
- |
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Net loss |
- |
- |
0.1 |
Annual Balance Sheet
Financials in: USD (mil)
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|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
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Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate |
0.770327 |
0.745406 |
0.696986 |
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Consolidated |
No |
No |
No |
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Total
stockholders equity |
0.1 |
0.1 |
0.1 |
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Provision for pensions |
0.1 |
0.1 |
0.1 |
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Other long-term liabilities |
0.0 |
0.0 |
0.0 |
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Trade creditors |
3.8 |
3.8 |
4.2 |
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Other current liabilities |
0.3 |
0.3 |
0.4 |
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Total current
liabilities |
4.1 |
4.1 |
4.6 |
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Total
liabilities (including net worth) |
4.3 |
4.3 |
4.8 |
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Intangibles |
0.0 |
0.0 |
0.0 |
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Total tangible
fixed assets |
0.0 |
0.0 |
0.0 |
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Receivables due after 1 year |
0.0 |
0.0 |
0.0 |
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Total non-current
assets |
0.1 |
0.0 |
0.1 |
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Net stocks and work in progress |
2.9 |
3.0 |
3.5 |
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Trade debtors |
1.1 |
1.0 |
1.0 |
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Other receivables |
0.1 |
0.0 |
0.0 |
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Cash and liquid assets |
0.0 |
0.2 |
0.2 |
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Accruals |
0.1 |
0.0 |
0.0 |
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Total current assets |
4.2 |
4.2 |
4.8 |
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Total assets |
4.3 |
4.3 |
4.8 |
Annual Ratios
Financials in: USD (mil)
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|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
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Period Length |
12 Months |
12 Months |
12 Months |
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Filed Currency |
EUR |
EUR |
EUR |
|
Exchange Rate |
0.770327 |
0.745406 |
0.696986 |
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Consolidated |
No |
No |
No |
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Current ratio |
1.00 |
1.00 |
1.00 |
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Quick ratio |
0.30 |
0.30 |
0.30 |
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Current liabilities to net worth |
0.42% |
0.52% |
0.56% |
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Sales per employee |
- |
- |
0.26 |
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Average wage per employee |
- |
- |
0.03 |
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Net worth |
0.1 |
0.1 |
0.1 |
DIAMOND INDUSTRY – INDIA
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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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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 –
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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.
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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.56.24 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.72.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
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NB |
New Business |
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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.