MIRA INFORM REPORT

 

 

Report Date :

29.11.2013

 

IDENTIFICATION DETAILS

 

Name :

CARATCO (PTY) LTD

 

 

Registered Office :

1st Floor Block C The Pivot1 Montecasino, Boulevard Fourwasy Johannesburg 2055

 

 

Country :

South Africa

 

 

Date of Incorporation :

24.07.2003

 

 

Com. Reg. No.:

M2003/017551/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Wholesale trade in precious stones, jewellery and silverware

 

 

No. of Employees :

95

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

CARATCO (PTY)LTD

Country

SOUTH AFRICA

Enquiry Terms

30 Days

Account Review

Recommended Every 6 Months

Subject Contact Person

WES MAKAVINI-Financial director

Assessment

This is a well-established business.

 

On investigation we made contact with WES MAKOVINI the financial director who assisted with all of the information required.

 

The subject is meeting commitments timeously with suppliers.

 

Please see the available information on the subject below.

 

 

Company information

 

Registered Name

CARATCO (PTY)LTD

Trading as/ Division Name

PANDA DIAMONDS

Previous Name

None

Date of Name Change

None

Registration Number

M2003/017551/07

Registration Date

2003/07/24

Date Commenced Trading

2003-07-24

Age of Business

10 Years 4 Months

History of Business

The business was established in 2003

History of Principals

There is currently 4 active directors within the subject.

Shareholders/Members/Partners of subject and % holding

50%-TIMOTHY WATSON50%-ROSY BLUE INVESTMENT

Authorised Share Capital

R 0.00

Issued Share Capital/Members Contribution

R 0.00

Status

In Business

Operations Assessment

The subject main operation is wholesale and retail of jewelery

Industry/ Customers

The general Public and all major Jewellery stores

Export

Yes

Export Countries

Mauritania

Import

Yes

Import Countries

Belgium, Hong Kong, India

Major Industry Code / SICC

61393

Definition of Code

Wholesale trade in precious stones, jewellery and silverware

Head Office Physical Address

1st Floor Block C The Pivot1 Montecasino BoulevardFourwasyJohannesburg2055

Head Office Postal Address

P O BOX 71511Bryanston2021

Current Tel Number

0110119100

Cell Number

None

Current Fax Number

0110119790

Current Email Address

wes@caratco.co.za

Web Site Address

www.pandadiamonds.co.za

 

 

Auditors information

 

Company Registered Name

HARRIS DOWDEN AND FONTEINE

Trading Name

Unavailable

Registration Number

Unavailable

Physical Address

7 Pam RoadMorningsideSandton2196

Postal Address

P O BOX 651129Benmore2010

Contact Person

Brian Dowden

Contact Number

0118847373

Email

hdf@icon.co.za

Principals

3

Judgements Against Subject

No found on file

Judgements Against Principals

No found on file

Subject Verified as Client

Yes

Practice Number

943703

VAT Number

4460135777

Tax Number

Unavailable

BEE Status

Unavailable

Financial Year End

February

No of years in Business

20 Years

Website

Unavailable

 

Previous Auditors Information - No Information on Record

 

 

Tax information

 

Vat Number

4100105362

Status

ACTIVE

Tax Number

9457029842

Financial Year End

December

 

Workman's compensation

 

Registered

Yes

Compliance Certified

Yes

 


Company Structure

 

Subsidiaries

Subsidiary Company

TROPICAL COLLECT (PTY) LTD

Shareholding

100%

Registration Number

2006/011015/07

 

Subsidiary Company

ADARA JEWELLERY (PTY) LTD

Shareholding

100%

Registration Number

1997/021416/07

 

Subsidiary Company

AURUM DESIGN (PTY) LTD

Shareholding

50%o

Registration Number

2006/009932/07

 

Employees

Number of Employees

95

1. Salaried employees

95

2. Waged employees

--

3. Permanent employees

95

 

Company Fleet

 

Company Fleet

No of vehicles:

Owned/Leased

Value

Outstanding Balance

Fleet Operations

 

 

 

 

The Fleet is made up of

3

Comment

The subject has 3 owned cars and 1 leased

Cars

3

Owned

 

 

 

Offices

Offices

Offices

Head Office Owned/ Rented

Leased

Rental Company

ABREAL(PTY) LTD

Type of Premises

Offices and Retail Showrooms

Comment

 

 

Branch Information

Branches Names

Country

Province

PANDA DIAMONDS

South Africa

WESTERN CAPE

JEWEL AFRICA

South Africa

WESTERN CAPE

 

Branch Detail Information

Branches Owned/ Rented

Leased

Rental Company

PUBLIC INVESTMENT COOPERATION

Type of Premises

Offices and retail showroom

 

Branches Owned/ Rented

Leased

Rental Company

ORO PROPERTIES

Type of Premises

Offices and retail showroom

 

Management Overview

 

Organisation Chart

Level                                       Position                                               Name  

1                                              CEO                                         TIMOTHY WATSON

2                                              FINANCIAL DIRECTOR              WES MAKOVINI

 

Company Structure (Ownership)

 

Note: One level up and all levels down

Holding

Company

Sub

Comment

50%-TIMOTHY WATSON

CARATCO (PTY)LTD

 

 

50%-ROSY BLUE INVESTMENT

CARATCO (PTY)LTD

 

 

 

Key Deals - No Information on Record

 

Trade References

 

Trade Reference nr

Supplier

Contact

Surety Value

Notarial Bonds

Comment

1

MEGA FREIGHT

0119711000

 

 

 

2

EGL

0113344527

 

 

 

3

KUROTATWA BROTHERS

0214225077

 

 

 

 

Trade References Detail

 

Nr

Age of Acc

Credit Limit

Max Credit

Terms

Average Purchases

Terms Taken

Comment

1

6 Years

R 2000000.00

R 2000000

30 Days

R 600000

30 Days

Good account

2

9 Years

 

 

30 Days

R 92000

30 Days

Good account,The subject has an open credit limit with the supplier

3

12 Years

 

 

90 Days

R 2000000

90 Days

Excellent account,the subject has an open credit limit with the supplier

 

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

 

Bank

NEDBANK

Branch

DIAMOND EXCHANGE

Brach Code

198765

Bank Account Number

1932269835

Type of Account

CURRENT

Account Name

CARATCO (PTY)LTD

Overdraft Facilities

NONE

Bank Code

C- FOR R2000000

Bank Comment

The subject's bankers consider them good for all business normal engagements

 

Bank Code History - No Information on Record

 

Previous Bank Account Information - No Information on Record

 

Deeds Information - No information on record

 

Financial Estimates

 

CURRENT ASSETS

R132000000.00

FIXED ASSETS

R 5000000.00

CURRENT LIABILITIES

R 47000000.00

LONG TERM LIABILITIES

R 9000000.00

 

Please note the following:

Turnover and assets less than R 1,000,000.00

The subject falls within the National Credit Act

Turnover and assets less than R 2,000,000.00

The subject falls within the Consumer Protection Act

 


Principals

 

Number of Principals

4

Average Age of Active Principals

47

 

Active Principals Principal - 1 of 4 VISHAL MEHTA

Surname

MEHTA

First Name

VISHAL

Other Names

NONE

Marital Status

 

ID Number

8004020000000

Verified ID Number

No

Current Age

33 Years 7 Months

Designation

BUSINESSMAN

Status

Active

Appointment Date

2007/08/23

Physical Address (at time of Appointment)

APARTMENT 2708, MICHELANGELO TOWERS 8, MAUDE STREET, SANDTON, 2196

Postal Address

P O BOX 2326, JOHANNESBURG, Gauteng, 2000

Current Tel Number

0110119100

Cell number

NONE

 

Principal's Adverse - No information on record

 

Business Information for VISHAL MEHTA

 

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

CARATCO (PTY)LTD

M2003/017551/07

In Business

10 Years 10 Months

0

No

 

EPISTEME COAL SA (PTY)LTD

M2008/006308/07

In Business

5 Years 5 Months

0

No

 

EPISTEME

PARTNERS

(PTY)LTD

2007/030856/07

In Business

6 Years 6 Months

0

No

 

ROSY BLUE WIRELESS AFRICA (PTY)LTD

M2007/032193/07

In Business

6 Years 6 Months

0

No

 

TUFFSAN TRADING 258 (PTY)LTD

M2007/032216/07

In Business

6 Years 6 Months

0

No

 

 


 

Principal Previous Business Interests

 

Average Age of Previous Business                                                                       27 Years

 

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

ROSY BLUE

INVESTMENTS

(PTY)LTD

M2003/012502/07

In Business

10 Years 10 Months

0

No

 

ROSYBLUE

MANUFACTURING

(PTY)LTD

M1966/008325/07

In Business

47 Years 11 Months

0

No

 

ROSYBLUE TRADING (PTY)LTD

M1988/002681/07

In Business

25 Years 1 Months

0

No

 

 

 

Principal Deeds Information

 

Principal - 2 of 4 SOMEN DAS

 

Surname

DAS

First Name

SOMEN

Other Names

NONE

Marital Status

 

ID Number

5506270000000

Verified ID Number

No

Current Age

58 Years 5 Months

Designation

BUSINESSMAN

Status

Active

Appointment Date

2007/08/23

Physical Address (at time of Appointment)

NO 3 SAN RAPHAEL, BERRIL LANE, MORNINGSIDE, 2196

Postal Address

P O BOX 2326, JOHANNESBURG, Gauteng, 2000

Current Tel Number

0110119100

Cell number

NONE

Shareholding/Membership

0.00

 

Principal's Adverse - No information on record

 

Business Information for SOMEN DAS

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

CARATCO (PTY)LTD

M2003/017551/07

In Business

10 Years 10 Months

0

No

 

EPISTEME COAL SA (PTY)LTD

M2008/006308/07

In Business

5 Years 5 Months

0

No

 

EPISTEME

PARTNERS

(PTY)LTD

2007/030856/07

In Business

6 Years 6 Months

0

No

 

ROSY BLUE

INVESTMENTS

(PTY)LTD

M2003/012502/07

In Business

10 Years 10 Months

0

No

 

ROSY BLUE WIRELESS AFRICA (PTY)LTD

M2007/032193/07

In Business

6 Years 6 Months

0

No

 

ROSYBLUE

MANUFACTURING

(PTY)LTD

M1966/008325/07

In Business

47 Years 11 Months

0

No

 

ROSYBLUE TRADING (PTY)LTD

M1988/002681/07

In Business

25 Years 1 Months

0

No

 

 

Principal - 3 of 4 WESLEY MAKOVINI

 

Surname

MAKOVINI

First Name

WESLEY

Other Names

NONE

Marital Status

 

ID Number

6905115052080

Verified ID Number

Yes

Current Age

44 Years 6 Months

Designation

BUSINESSMAN

Status

Active

Appointment Date

2003/08/06

Physical Address (at time of Appointment)

36 PARKWAY, FOURWAYS GARDENS, 2191

Postal Address

P O BOX 71511, BRYANSTON, 2021

Current Tel Number

0114656276

Cell number

0828908514

Shareholding/Membership

0.00

 

Principal's Adverse - No information on record

 

Business Information for WESLEY MAKOVINI

 

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

CARATCO (PTY)LTD

M2003/017551/07

In Business

10 Years 10 Months

0

No

 

JADWIGA

JEWELLERY

(PTY)LTD

M2005/011794/07

In Business

8 Years 8 Months

0

No

 

PANDA DIAMONDS (PTY)LTD

M2006/009814/07

In Business

7 Years 7 Months

0

No

 

WES MAKOVINI

6905115052080

 

Unknown

0

No

 

 

 

Principal Previous Business Interests

 

Average Age of Previous Business                                                           8 Years

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

ADARA JEWELLERY (PTY)LTD

M1997/021416/07

In Business

16 Years 4 Months

0

No

 

AFRICAN JEWELLERY AND DIAMONDS (PTY)LTD

M2001/022277/07

Deregistration Final

 

0

No

 

JEWELLERY EXPERIENCE (PTY)LTD

M2000/022022/07

In Business

13 Years 1 Months

0

No

 

JOUEL (PTY)LTD

M2010/005800/07

In Business

3 Years 3 Months

0

No

 

 

Principal Deeds Information

 

Property Interests for WESLEY MAKOVINI

 

Title Deed No.

T15652/2010

Erf/Site No.

 

Deeds Office

PRETORIA

Physical Address

30 PARK FOURWAYS GARDENS SANDTON

Property Type

Freehold

Extent / Size

948.0SQM

Purchase Date

2010/01/15

Purchase price

 

% Ownership

0.00

Bond Holder

ABSA BANK LTD

Bond Number

B107212010

Bond Amount

 

Comment

 

 

Principal - 4 of 4 TIMOTHY WATSON

 

Surname

WATSON

First Name

TIMOTHY

Other Names

NONE

Marital Status

 

ID Number

5712225245005

Verified ID Number

Yes

Current Age

55 Years 11 Months

Designation

BUSINESSMAN

Status

Active

Appointment Date

2003/07/24

Physical Address (at time of Appointment)

8 HIGHWICK RIOAD, KENILWORTH, CAPE TOWN, 7700

Postal Address

P O BOX 71511, BRYANSTON, 2021

Current Tel Number

0112744905

Cell number

0824565868

Shareholding/Membership

50%

 

Principal's Adverse - No information on record

 

Business Information for TIMOTHY WATSON

 

Principal Current Business Interests

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

CARATCO (PTY)LTD

M2003/017551/07

In Business

10 Years 10 Months

0

No

 

HARD ASSET INVESTMENT BROKERS(PTY)LTD

M1986/002467/07

Deregistration Process

27 Years 3 Months

0

No

 

INTERCOLOUR GEMS CC

B1991/029031/23

In Business

22 Years 10 Months

0

No

 

PANDA DIAMONDS (PTY)LTD

M2006/009814/07

In Business

7 Years 7 Months

0

No

 

 

Principal Previous Business Interests

 

Average Age of Previous Business                                               17 Years

 

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

1ST AVENUE GOLD

ACCEPTANCES

(PTY)LTD

M1996/012338/07

Deregistration Final

17 Years 5 Months

0

No

 

AFRICAN JEWELLERY AND DIAMONDS (PTY)LTD

M2001/022277/07

Deregistration Final

 

0

No

 

AKOYA PEARLS CC

B1993/012313/23

Deregistration Final

20 Years 8 Months

0

No

 

CARWAY

PANELBEATERS CC

B1991/029779/23

Deregistration Final

22 Years 10 Months

0

No

 

CONSTANTIA OAK PROPERTIES CC

B1997/047414/23

Deregistration Final

16 Years 4 Months

0

No

 

CORPCLO 326 CC

B1998/033883/23

Deregistration Final

15 Years 3 Months

0

No

 

CULLINAN DIAMONDS (PTY)LTD

M2000/023394/07

In Business

13 Years 1 Months

0

No

 

DUNROSE INVESTMENTS 77 (PTY)LTD

M2000/029079/07

Deregistration Final

13 Years 1 Months

0

No

 

FIRST GOLD TRADING CC

B1995/025742/23

Deregistration Final

18 Years 6 Months

0

No

 

OLD VINEYARD PROPERTIES CC

B1997/051176/23

Deregistration Final

16 Years 4 Months

0

No

 

OUWINGERD PROPERTIES CC

B1997/047451/23

Deregistration Final

16 Years 4 Months

0

No

 

SECTION 14 HOLLYBANK ILLOVO CC

B1997/064565/23

In Business

16 Years 4 Months

0

No

 

SUNSTAR DIAMOND CUTTERS CC

B1992/030954/23

In Business

21 Years 9 Months

0

No

 

TANZANITE S A (PTY)LTD

M1960/002580/07

Deregistration Final

53 Years 5 Months

0

No

 

TROPICAL

COLLECTION

(PTY)LTD

M2006/011015/07

In Business

7 Years 7 Months

0

No

 

WATERSONG

INVESTMENTS

(PTY)LTD

M1996/000559/07

Deregistration Final

17 Years 5 Months

0

No

 

 


 

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.62.39

UK Pound

1

Rs.101.80

Euro

1

Rs.84.75

 

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.