MIRA INFORM REPORT

 

 

Report Date :

18.11.2013

 

IDENTIFICATION DETAILS

 

Name :

DANIS EDELSTEINHANDEL GMBH

 

 

Registered Office :

Uhlandstr. 2 D 75233 Tiefenbronn

 

 

Country :

Germany

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

08.12.1983

 

 

Legal Form :

Private limited company

 

 

Line of Business :

Wholesale of clocks and watches and jewelry

 

 

No. of Employees :

06

 

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)

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

 

DANIS EDELSTEINHANDEL GMBH

 

 

Company Status:          active

Uhlandstr. 2

D 75233 Tiefenbronn

Telephone:07234/9555-0

Telefax:  07234/9555-55

 

 

Company summary

 

LEGAL FORM               Private limited company

Date of foundation:       1983

Shareholders'

agreement:                    04.11.1983

Registered on:              08.12.1983

Commercial Register:    Local court 68159 Mannheim

under:                                       HRB 501745

 

 

Share capital:                          EUR             25,564.59

 

 

Shareholder:

                     Ytzhak Dankner

                     IL  Heryliya

                     Share:             EUR             25,564.59

 

Manager:

                     Haim Nissim

                     Uhlandstr. 2

                     D 75233 Tiefenbronn

                     born: 06.01.1949

                     Profession: Businessman

                     Marital status: married

 

 

BUSINESS ACTIVITIES

 

Sectors

46480   Wholesale of clocks and watches and jewelry

47770   Retail sale of clocks, watches and jewelry

 

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                        Uhlandstr. 2

                                    D 75233 Tiefenbronn

 

Real Estate of:              Haim Nissim

 

Type of ownership:        Tenant

Address                        Uhlandstr. 2

                                    D 75233 Tiefenbronn

 

Land register documents were not available.

 

 

BANKERS

 

COMMERZBANK VORMALS DRESDNER BANK, PFORZHEIM

Sort. code: 66680013, BIC: DRESDEFF666

VOLKSBANK WILFERDINGEN-KELTERN, REMCHINGEN

Sort. code: 66692300, BIC: GENODE61WIR

 

 

FINANCIAL FIGURES

 

Turnover:                      2011               EUR            790,000.00

Profit:                           2011               EUR            482,553.00

Ac/ts receivable:                                   EUR          3,489,736.00

Liabilities:                                             EUR          7,298,514.00

Total numbers of vehicles:                                              1

Employees:                                                                   6

 

 

BALANCE SHEETS

 

Balance sheet ratios     01.01.2011 - 31.12.2011

Equity ratio [%]:                         11.75

Liquidity ratio:                            0.51

Return on total capital [%]:          5.67


 

Balance sheet ratios     01.01.2010 - 31.12.2010

Equity ratio [%]:                        7.19

Liquidity ratio:                            0.56

Return on total capital [%]:          0.79

 

Balance sheet ratios     01.01.2009 - 31.12.2009

Equity ratio [%]:                        6.46

Liquidity ratio:                            0.62

Return on total capital [%]:         -1.29

 

Balance sheet ratios     01.01.2008 - 31.12.2008

Equity ratio [%]:                        8.59

Liquidity ratio:                           0.49

Return on total capital [%]:         1.03

 

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          8,511,549.37

Fixed assets                                         EUR            543,107.47

Tangible assets                                     EUR             35,572.09

Other / unspecified tangible assets        EUR             35,572.09

Financial assets                                    EUR            507,535.38

Other / unspecified financial assets        EUR            507,535.38

Current assets                                       EUR          7,962,100.17

Stocks                                                  EUR          3,961,832.04

Accounts receivable                              EUR          3,489,736.33

Other debtors and assets                      EUR          3,489,736.33

Liquid means                                        EUR            510,531.80

Remaining other assets                         EUR              6,341.73

Accruals (assets)                                   EUR              6,341.73

 

LIABILITIES                                           EUR          8,511,549.37

Shareholders' equity                              EUR          1,000,016.29

Capital                                                  EUR             25,564.59

Subscribed capital (share capital)           EUR             25,564.59

Balance sheet profit/loss (+/-)                EUR            974,451.70

Profit / loss brought forward                  EUR            491,898.56

Annual surplus / annual deficit                 EUR            482,553.14

Provisions                                            EUR            213,019.00

Liabilities                                              EUR          7,298,514.08

Other liabilities                                      EUR          7,298,514.08

Unspecified other liabilities                    EUR          7,298,514.08

 

 

Type of balance sheet:                          Company balance sheet

 

Financial year:                                      01.01.2010 - 31.12.2010

 

ASSETS                                                EUR          7,081,491.08

Fixed assets                                         EUR            552,150.09

Tangible assets                                     EUR             49,553.09

Other / unspecified tangible assets        EUR             49,553.09

Financial assets                                    EUR            502,597.00

Other / unspecified financial assets        EUR            502,597.00

Current assets                                       EUR          6,519,675.78

Stocks                                                  EUR          2,721,341.00

Accounts receivable                              EUR          3,557,645.63

Other debtors and assets                      EUR          3,557,645.63

Liquid means                                         EUR            240,689.15

Remaining other assets                          EUR              9,665.21

Accruals (assets)                                    EUR              6,767.21

Deferred taxes (assets)                         EUR              2,898.00

 

LIABILITIES                                           EUR          7,081,491.08

Shareholders' equity                              EUR            508,928.00

Capital                                                  EUR             25,564.59

Subscribed capital (share capital)            EUR             25,564.59

Balance sheet profit/loss (+/-)                EUR            483,363.41

Profit / loss brought forward                  EUR            427,143.20

Annual surplus / annual deficit                EUR             56,220.21

Provisions                                            EUR             23,271.00

Liabilities                                               EUR          6,549,292.08

Other liabilities                                      EUR          6,549,292.08

Unspecified other liabilities                    EUR          6,549,292.08

 


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.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.