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Report Date : |
16.10.2013 |
IDENTIFICATION DETAILS
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Name : |
ORO |
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Formerly Known As : |
OROCOMIT (PTY) LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
23.04.1998 |
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Com. Reg. No.: |
1998/007629/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Importers, wholesalers and distributors of jewellery. |
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No. of Employees : |
90 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
|
South Africa |
A2 |
A2 |
|
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 |
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 |
(The
information contained in this report, other than comment by outside
authorities, has been voluntarily supplied by officials of the subject):
ORO AFRICA (PTY) LTD
Formerly:
OROCOMIT (PTY) LTD, the name having been changed on 6 July 1998
170 Buitengracht
Street
CAPE TOWN
Western
Cape
P O Box 16552
VLAEBERG
8018
TELEPHONE NUMBER: +27
21 480 9860
FAX NUMBER: +27
21 423 5506
100% ORO GROUP (PTY) LTD, in which S J NATHAN is
the majority shareholder and 25% is held by
ANGLOGOLD ASHANTI LTD (Quoted on the JSE Ltd).
ETERNITI JEWELLERY (PTY) LTD (formerly GOLD RING
MANUFACTURING JEWELLERS (PTY) LTD)
(Registration Certificate Number: 1998/022685/07)
GOLD
CATCH (PTY) LTD
(Registration
Certificate Number: 1986/000738/07)
CENERE
ITALY (PTY) LTD (dormant)
(Registration
Certificate Number: 2002/020328/07)
SUNDELSON
BROS (PTY) LTD
(Registration
Certificate Number: 1998/021085/07)
ORO
AFRICA AND DESIGN (PTY) LTD
(Registration
Certificate Number: 1998/015764/07)
ORO
CAST (PTY) LTD
Formerly
CAPE JEWELLERY AND ACCESSORY FAIR CC
(Registration
Number 2005/062527/23)
S
J NATHAN ID
No. 6205115218009
G
L NATHAN (brother) ID
No. 6502135162088
D
L DREDZEN ID
No. 6811075075089
M
STRUL ID
No. 4905125027009
NEDBANK, Parktown Branch, Account Number: 1944144870. It was stated that the subject enjoys group overdraft facilities to an extent of ±R40 000 000, secured by a cession of debtors and stock. Utilisation of the overdraft is stated to fluctuate to partial at times.
23 April 1998
Registration Certificate Number: 1998/007629/07
The subject was registered to take over a well-established company namely, EFUNE BROTHERS INTERNATIONAL (PTY) LTD. It was stated that Mr Nathan was the Managing Director of that company for 9 years. The operations of the subject were originally started in 1945, however, the company has changed over the years.
4570173825
9434251840
Importers, wholesalers and distributors of jewellery.
The subject imports most of its supplies and deals locally with:
MEGAFREIGHT Johannesburg
UNITY DIAMONDS Johannesburg
RAM INTERNATIONAL TRANSPORT Johannesburg
RAND REFINERY Johannesburg
TOCOR INDUSTRIES Cape Town
Retail jewellers e.g. American Swiss, Sterns, Arthur Kaplan, NWJ and independent jewellers.
South Africa
Occasionally to Botswana, Namibia, Dubai and Mauritius
90 in the subject
The subject has a branch in Johannesburg
The premises in Johannesburg are reported to be leased while the Cape Town premises are reported to be owned by the associate property owning company, bonded in favour of NEDBANK
R100
000 divided into 10 000 000 ordinary shares of R0,01 cent each
R971
The
following estimated financial situation was submitted as at October 2013
STOCK R 85 000 000
DEBTORS R 38 000 000
FIXED ASSETS R 1 200 000
OVERDRAFT nil
at present
CREDITORS mainly on a COD basis R 7 000 000
SHAREHOLDERS’ LOANS holding company R 32 000 000
TURNOVER per annum R105
000 000
P
K F INC Cape Town +27
21 673 2000
MARCH
ASSOCIATED INSURANCE BROKERS
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc Good
for R 70 000 30
days 30 days Excellent
2. Old acc R15
000 000 R15 000 000 C.O.D C.O.D. Very Good
30
days 30 days
3. Jun 1991 R 2 000 000 R 1 000 000 21
days 21 days Good
c/l
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1991 R2 000 000 R1
500 000 21 days 21 days Very
Good
c/l
2. 19 years R
500 000 R 100 000 30/60/90 30/60/90 Very
Good
days days
3. 10 years R
120 000 R 80 000- 30
days 30 days Good
R 100 000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Many years R2 000 000 R 500 000 - 7 days 7 days Excellent
R2
000 000
2. Old acc open R 250 000 30
days 30 days Excellent
3. Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10 years R2 000 000 R 375 000- 7
days
7 days Very Good
c/l R1 000 000
2. 15 years open R 10 000- 30
days 30 days Good
R 100 000
3. 10 years declined R 35 000 30
days 30 days Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 6+
years R500 000 R
50 000- 21 days 21 days Excellent
c/l R 300 000 (from
invoice)
2. 15+
years open acc R 10 000 varies varies Good
R1
000 000
Varies
(seasonal)
3. 2007+ open acc R 2 500- 30 days 30
days Good
R 3 500
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 6+
years R500 000 ±R500 000 21
days 21 days Very Good
2. Old declined R 10 000- 30
days 30 days Very Good
R100 000
3. Old open R 5 000 30
days 30 days Very Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +8
years R1 500 000
R150 000- 21 days 21 days Excellent
c/l R600 000 EFT
2. +15
years ±R 100 000 ±R100 000 30-60 days 30-60
days Very Good
3. +4
years undisclosed ±R
14 000 30 days 30 days Very
Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +8
years R2 000 000 R
200 000- 21 days 21 days Excellent
c/l R 800 000
2. +3
years declined R
5 000 30 days 30 days Very
Good
3. Old
acc declined R 100 000- 30 days 30
days Very Good
R1 000 000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +10
years R2 000 000 ±R1 000 000 21 days 21 days Very Good
c/l
2. 2008 R20 000 ±R 15 000 30 days 30
days Very Good
c/l
3. Old open ±R
5 000 30 days 30 days Very
Good
4. Do
not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +10
years Open R
20 000- 30 days 30 days Very
Good
R 500 000
2. 2002 R
50 000 R 49 000- 30 days 30 days Very Good
R 55 000
3. Do
not give trade references
4. +2007 Open R 10 000 30 days 30 days Good
This is an established and well-connected company meeting its commitments timeously. The subject is considered as equal to a maximum amount of €100 000 over 30 days.
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 –
-
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.61.69 |
|
|
1 |
Rs.98.59 |
|
Euro |
1 |
Rs.83.67 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.