MIRA INFORM REPORT

 

 

Report Date :

19.10.2013

 

IDENTIFICATION DETAILS

 

Name :

THOMAS JEWELLERS (AUST.) PTY. LIMITED

 

 

Registered Office :

15 Sturt Street Town : Ballarat Central Victoria 3350

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

05.03.1980

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Subject is engaged in retail of jewellery and high-end watches.

 

 

No. of Employees :

107

 

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)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

AUSTRALIA - ECONOMIC OVERVIEW

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam

Source : CIA


 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :                          THOMAS JEWELLERS (AUST.) PTY. LIMITED

Other style / Business name :     THOMAS JEWELLERS

Business address :                    15 Sturt Street

Town : Ballarat Central

Province : Victoria

Zip/postal code :                        3350

Country :                                   Australia

Tel :                                          +61 3 96505555

Fax :                                         +61 3 53332087

Email :                                      diamonds@thomasjewellers.com.au

Website :                                  www.thomasjewellers.com.au

 

Registered address :                  15 Sturt Street

Town : Ballarat Central

Province : Victoria

Zip/postal code :                        3350

Country :                                   Australia

Town :                                       Ballarat Central

Province :                                  Victoria

Zip/postal code :                        3350

Country :                                   Australia

Comments :                              Address provided Royal Arcade, 335 Bourke St Mall, Melbourne VIC 3000,

Australia belongs to a retail outlet of the Subject.

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :                    05/03/1980

Legal form :                                           Australian Proprietary Company

Chief executive :                                    James William Thomas

Issued & paid up capital :                       AUD 1,000

Sales turnover :                                      AUD 31,080,923 (Non-consolidated 12 months, 30/06/2012)

Net income :                                          AUD 183,916 (Non-consolidated 12 months, 30/06/2012)

Total fixed assets                                   : AUD 53,073,957 (Non-consolidated 12 months, 30/06/2012)

Line of business :                                   Jewellery retailer.

Staff employed :                                     107 employees (Subject)

 

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is fair

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

Credit amount asked :                Not described.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                             05/03/1980

Legal form :                                                       Australian Proprietary Company

Registration no Australian Company Number:       005629363

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no :                                                  Australian Business Number: 23005629363

Registry status :                                                Live/Active

Previous name :                                                 None reported.

Change of legal form :                                         None reported.

Other registration :                                             THOMAS JEWELLERS is a business name owned by the Subject registered on 31/05/1995 under business registration no: 1216951Z.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              James William Thomas

Designation :     Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                                      James William Thomas

Designation :                             Director and Company Secretary

Appointment date :                     05/03/80

Address :                                  5 Illawarra Crescent

Toorak, VIC 3142

Australia

Biography                                  Born on 27-08-1940 in Ballarat, Victoria, Australia.

 

Name :                                      James Lawrence Thomas

Designation :                             Company Secretary

Appointment date :                     28/06/96

Address :                                  6 Weeroona Avenue

Portsea, VIC 3944

Australia

Biography :                                Born on 21-02-1971 in Ballarat, Victoria, Australia.

 

Name :                                      Jeremy Charles Thomas

Designation :                             Company Secretary

Appointment date :                     28/06/96

Address :                                  10 Mary Street

Windsor, VIC 3181

Australia

Biography :                                Born on 03-06-1972 in Ballarat, Victoria, Australia.

 

Name :                                      Samuel Robert Thomas

Designation :                             Company Secretary

Appointment date :                     27/11/12

Address :                                  13 Mackay Street

Prahran, VIC 3181

Australia

Biography :                                Born on 29-01-1977 in Ballarat, Victoria, Australia.

Staff employed :             107 employees (Subject)

 

 

Key Advisors

 

Auditors :                      MGI MELBOURNE PTY LTD

Level 10, 600 St Kilda Road

Melbourne, VIC 3004

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 1,000

No of shares :                1,000 Ordinary Shares

Share par value :            AUD 1

Issued capital :              AUD 1,000

Paid up capital :             AUD 1,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :       Full List

 

 

Composition

 

Shareholder name :        AUSTRALIAN JEWELLERS FINANCE PTY. LTD.

Address :                      15 Sturt Street

Ballarat Central, VIC 3350

Australia

No. of shares :               1,000 Ordinary Shares

% of shares :                 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          THOMAS JEWELLERS INVESTMENTS PTY. LTD.

Affiliation type :              Ultimate Holding Company

Address :                      15 Sturt Street

Ballarat Central, VIC 3350

Australia

 

Name :                          AUSTRALIAN JEWELLERS FINANCE PTY. LTD.

Affiliation type :              Parent Company

Address :                      15 Sturt Street

Ballarat Central, VIC 3350

Australia

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              Commonwealth Bank

Address :                      Australia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                   None reported.

 

Legal Fillings

 

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :    Commercial Registry Filings

Financial statement date :          30/06/12

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.03

 

 

Summarized Financial Information

 

Consolidation type :                 Non Consolidated                    Non Consolidated

Currency :                                Australia Dollar (AUD)             Australia Dollar (AUD)

Denomination :                        (x1) One                                   (x1) One

Date of financial year end :     30/06/12                                    30/06/11

Length of accounts :                12 months                                12 months

Sale turnover / Income : 31,080,923                                31,312,147

Profit before tax :                       241,991                         121,248

Net income :                              183,916                         9,233

Non current assets :                   39,718,469                                38,752,559

Current assets :                         13,355,488                                11,953,346

Inventories :                               12,147,753                                11,737,716

Total assets :                            53,073,957                               50,705,905

Current liabilities :                      11,913,313                                9,329,177

Non current liabilities :                13,865,000                                14,265,000

Total liabilities :                          25,778,313                                23,594,177

Share equity :                            27,295,644                                27,111,728

Reserve :                                   20,945,872                                20,945,872

Retained earning :                      6,348,772                                  6,164,856

 

 

OPERATION DETAILS

 

Main activities :              The Subject engages in retail of jewellery and high-end watches.

The Subject operates 10 Thomas Jewellers retail stores located across Australia.

Product & services : Diamond & precious stone jewellery

Gold and silver jewellery

End end watches

Homewares

Giftwares

Brand :                          SEIKO

GEORGINI

SWAROKSKI

RIEDEL

WEDGWOOD

SKAGEN

Purchases

International : India

 

Sales

Local :                          Yes

International :                 None reported.

Key events :                  1 August 2013

Thomas Jewellers can add another jewel to its crown after winning the

RACV retail business of the year award.

The Moorabool St store opened in 1978 and celebrated its grand

re-opening in December last year with a $3.3 million makeover. It is now

the flagship store in the 10-strong Thomas Jewellers chain, which includes

a shop in Melbourne’s Bourke St shopping precinct.

 

Manager Paul Whittaker said he could not be more proud of what the store

and its staff have achieved for the community of Geelong.

 

‘‘Winning this award is a great acknowledgment of the benefit the

Thomases have given to the Geelong CBD,’’ Mr Whittaker said.

 

‘‘We’re very pleased with the store and the look of it. The win bodes

really well for our future.’’ The family-run business began as a modest

shopfront in Ballarat in 1896 and, over the years, has grown to become one

of the state’s leading and most trusted jewellers. With a vision of

maintaining its reputation as one of Geelong’s premier jewellers, Thomas

Jewellers provides a range of services including jewellery valuing and

engraving as well as giving customers access to onsite watchmakers,

gemologists, jewellers and diamond technologists.

 

The store also hosts exclusive events, such as jewellery education

evenings and product launches, for VIP guests.

 

Employing 20 staff members, some of whom can claim more than 25 years

of service, Thomas Jewellers is at the forefront of customer service,

dedication and professionalism.

 

It also has a strong positive workplace focus and commitment to

maintaining a friendly and fulfilling working environment. Employees

undertake brand training and development to ensure their knowledge is up

to date, and Thomas Jewellers is one of the few companies nationwide to

offer watchmaker training and apprenticeships as a way of infusing fresh

young talent into the business.

Source: www.thomasjewellers.com.au

 

Property & Assets

 

Premises :                    The Subject operates from the verified heading address consisting of an

administrative office.

Branches :                    In addition, the Subject operates from the following retail outlets located:

Royal Arcade, Bourke Street Mall

Melbourne, Victoria 3000

Australia

Tel: +61 3 96505555

 

90 Moorabool Street

Geelong, Victoria 3220

Australia

Tel:+61 3 52222044

 

55 Langtree Mall

Mildura, Victoria 3500

Australia

Phone: +61 3 50229899

 

300 Wyndham Street

Shepparton, Victoria 3630

Australia

Tel:+61 3 58210222

 

545 Dean Street

Albury, New South Wales 2640

Australia

Tel:+61 2 60218111

 

306 Hargreaves Mall

Bendigo, Victoria 3550

Australia

Tel:+61 3 54424444

 

158 Liebig Street

Warrnambool, Victoria 3280

Australia

Tel:+61 3 55627700

 

145 Baylis Street

Wagga Wagga, New South Wales 2650

Australia

Tel:+61 2 69318811

 

Other property :             Total NBV of property, plant and equipment as of 30-06-2012 was AUD

5,517,784

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic                                     Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 46.714 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation : 2010: 2.8%

 

2011: 3.4%

2012: 2.7%

Unemployment rate :                              2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP) :                                           2010: 20.4%

2011: 22.9%

2012: 24%

 

Government bond ratings :                      Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

Shares :                                                US$1.198 trillion

 

Largest companies in the country : Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance),

BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified

Metals & Mining), Orica (Diversified Metals & Mining), Iluka

Resources(Diversified Metals & Mining), Origin Energy (Electric Utilities),

AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths

(Food Retail), Metcash (Food Retail), Macquarie Group (Investment

services), AMP (Investment services), Challenger Ltd (Investment

services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group

(Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks),

Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas

Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil

Services & Equipment), Toll Holdings (Other Transportation), Transurban

Group (Other Transportation), QBE Insurance Group (Property & Casualty

Insurance), Insurance Australia Group (Property & Casualty Insurance),

QR National (Railroads), Westfield Group (Real Estate), Stockland

Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease

(Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group

(Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of

Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals),

Telstra (Telecommunications Services)

 

Trade & Competitiveness Overview

 

Total exports :                          US$263.9 billion

Exports commodities :               Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports :                           US$239.7 billion

Imports commodities :                Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners :             China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners :             China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows : 2009:                     US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

FDI Outflows :                            2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

 

Best countries for doing business : 10 out of 185 countries

Global competitiveness ranking :      20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

 

Total population :           22.68 million

Total area :                    7,692,024 km2

Capital :                        Canberra

Currency :                     Australian dollars (AUD)

Internet users as % of total

Population :                   79%

 

 

PAYMENT HISTORY

 

Purchase Term

 

International :     L/C, Telegraphic transfer, D/P, Credit 30-90 day

 

Sales Term

 

Local :              Credit card, Cash

 

Trade Reference/ Payment

Behaviour

 

Comments :                  As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

Investigation Note

Sources :          Interviews and material provided by the Subject

:                       Other official and local business sources


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.61.28

UK Pound

1

Rs.99.03

Euro

1

Rs.83.80

 

 

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.