MIRA INFORM REPORT

 

 

Report Date :

28.10.2013

 

IDENTIFICATION DETAILS

 

Name :

CORONA JEWELLERY COMPANY LTD.

 

 

Registered Office :

16 Ripley Avenue, Toronto, Ontario M6S 3N9

 

 

Country :

Canada

 

 

Date of Incorporation :

12.07.2006

 

 

Legal Form :

Corporation – Profit 

 

 

Line of Business :

Manufacturer, importer, wholesaler and distributor of fine jewellery

 

 

No. of Employees :

60

 

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)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

 

Source : CIA

 

Company name and address     

 

CORONA JEWELLERY COMPANY LTD.

 

Address:                       16 Ripley Avenue, Toronto, Ontario M6S 3N9 - Canada

 

Telephone:                    +1 416-762-2222

 

Fax:                              +1 416-762-2445

 

Website:                       www.coronajewellery.com

 

Corporate ID#:              ON-0001703047

 

State:                            Ontario

 

Judicial form:                Corporation – Profit 

 

Date incorporated:        July 12, 2006

 

Stock:                            -

 

Value:                            -

 

Name of manager:          John MINISTER

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

The Company is manufacturer, importer, wholesaler and distributor of fine jewellery.

Offer a full range of gold and platinum rings, necklaces, bracelets, earrings and pendants, set with diamonds and other precious stones, including ruby, sapphire and emerald.

 

 

Suppliers include:

 

ELEGANTE ARTS PACKAGING CO LTD
FLAT 606A, SUNBEAM CENTRE 27 SHING YIP ST., KWUN TONG KLN HONG KONG

 

Staff:    60

 

 

Operations & branches:

 

At the headquarters, we find a factory, showroom and office, on lease.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

This is a MINISTER owned and managed company.

 

 

Management:

 

John MINISTER is the President.

Albert MINISTER is Vice President and COO

Brock HORTON is Vice President of Sales

 

As far as we know, he is they are not involved in other local corporations.

 

Subsidiaries

And partnership:                        None

 

 

FINANCIALS

 

In Canada, privately held corporations are not required to publish any financials.

 

On a direct call, nobody accepted to answer our questions.

We sent a fax but no answer received.

 

However, sales estimate for year 2012 is in excess of CAD 20,000,000=

 

The business is profitable.

 

 

Banks:  Scotia Bank

            HSBC

            …

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   None

 

Haut du formulaire

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               September 2013

High credit:                   CAD 30,000

Now owing:                   0

Past due:                      0

Last purchase:              August 2013

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               September 2013

High credit:                   CAD 60,000

Now owing:                   0

Past due:                      0

Last purchase:              August 2013

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               September 2013

High credit:                   CAD 300

Now owing:                   0

Past due:                      0

Last purchase:              August 2013

Line of business:           Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

Monthly Payment Trends - Recent Activity

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

04/13

$7,200

100%

0%

0%

0%

0%

05/13

$7,500

100%

0%

0%

0%

0%

06/13

$7,800

100%

0%

0%

0%

0%

07/13

$7,600

100%

0%

0%

0%

0%

08/13

$7,100

100%

0%

0%

0%

0%

09/13

$7,300

100%

0%

0%

0%

0%

 

 

National Credit Bureaus gave a satisfying credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

 

 

International credit history:

 

Payments of imports are currently made on terms.

 

 

Other comments:

 

The Company maintains a regular business.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is low.

 

 

Our opinion:

 

A business connection may be conducted.

 

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.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.14

 

 

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.