INFORM REPORT
|
Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
LEADING ITALIAN JEWELS S.R.L. |
|
|
|
|
Registered Office : |
Via Trento, 7, 15048 – Valenza
(AL) |
|
|
|
|
Country : |
Italy |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
14.03.2011 |
|
|
|
|
Legal Form : |
Sole-Member Limited Liability Company |
|
|
|
|
Line of Business : |
Wholesaler of clocks, watches
and jewellery |
|
|
|
|
No. of Employees |
12 |
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 |
|
|
|
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Italy |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Italy ECONOMIC OVERVIEW
Italy has a diversified industrial economy, which is divided into a
developed industrial north, dominated by private companies, and a less-developed,
highly subsidized, agricultural south, where unemployment is higher. The
Italian economy is driven in large part by the manufacture of high-quality
consumer goods produced by small and medium-sized enterprises, many of them
family-owned. Italy also has a sizable underground economy, which by some
estimates accounts for as much as 17% of GDP. These activities are most common
within the agriculture, construction, and service sectors. Italy is the
third-largest economy in the euro-zone, but its exceptionally high public debt
and structural impediments to growth have rendered it vulnerable to scrutiny by
financial markets. Public debt has increased steadily since 2007, topping 133%
of GDP in 2013, but investor concerns about Italy and the broader euro-zone
crisis eased in 2013, bringing down Italy's borrowing costs on sovereign
government debt from euro-era. The government still faces pressure from
investors and European partners to sustain its efforts to address Italy's
long-standing structural impediments to growth, such as labor market
inefficiencies and widespread tax evasion. In 2013 economic growth and labor
market conditions deteriorated, with growth at -1.8% and unemployment rising to
12.4%, with youth unemployment around 40%. Italy's GDP is now 8% below its 2007
pre-crisis level.
|
Source : CIA |
Company
name & address
Leading Italian Jewels S.r.l.
Via Trento, 7
15048 - Valenza (AL) -IT-
Summary
|
Fiscal Code |
: |
02324100060 |
|
Legal Form |
: |
Sole-Member Limited Liability Company |
|
start of Activities |
: |
18/03/2011 |
|
Equity |
: |
Over 2.582.254 |
|
Turnover Range |
: |
1.250.000/1.500.000 |
|
Number of Employees |
: |
12 |
Activity
Wholesaler of clocks, watches
and jewellery
Legal
Data
Legal Form : Sole-Member Limited
Liability Company
|
Fiscal Code : 02324100060 |
|
Chamber of Commerce no. : 245718 of
Alessandria since 18/03/2011 |
|
Chamber of Commerce no. : 2022845 of
Milano |
|
V.A.T. Code : 02324100060 |
|
Establishment date |
: 14/03/2011 |
|
|
Start of Activities |
: 18/03/2011 |
|
|
Legal duration |
: 31/12/2050 |
|
|
Nominal Capital |
: 10.000 |
|
|
Subscribed Capital |
: 10.000 |
|
|
Paid up Capital |
: 10.000 |
Members
|
|
Choksi |
Mehul Chinubbhai |
|
|
Born in Mumbai |
( ) |
on 05/05/1959 |
- Fiscal Code : CHKMLC59E05Z222J |
|
|
Residence: |
Lazio |
, 21 |
- 20135 |
Milano |
(MI) |
- IT - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Director |
07/11/2013 |
||
|
Board Chairman |
07/11/2013 |
|
|
No Prejudicial
events are reported |
|
|
No Protests
registered |
|
|
Mehta |
Nishit Dinesh |
|
|
Born in Mumbai |
( ) |
on 08/11/1972 |
- Fiscal Code : MHTNHT72S08Z222T |
|
|
Residence: |
Lazio |
, 21 |
- 20135 |
Milano |
(MI) |
- IT - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Director |
07/11/2013 |
|
|
Novembri |
Enrico |
|
|
Born in Castiglion Fiorentino |
(AR) |
on 29/08/1970 |
- Fiscal Code : NVMNRC70M29C319P |
|
|
Residence: |
Giacomo Watt |
, 16 |
- 20143 |
Milano |
(MI) |
- IT - |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Procurator |
26/11/2013 |
|
|
No Prejudicial
events are reported |
|
|
No Protests
registered |
|
|
Aston Luxury
Group Limited |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Sole partner |
09/11/2011 |
|
|
No Protests
registered |
|
|
Aston Luxury
Group Limited |
|
Position |
Since |
Shares Amount |
% Ownership |
|
Partner |
|
|
No Protests
registered |
Companies
connected to members *
*checkings have been performed
on a national scale.
In this module the companies in which
members hold/held positions are listed.
The Members of the subject firm
are not reported to be Members in other companies.
Capital
Shareholders
Shareholders' list as at date of
data collection:
|
Firm's Style / Name |
Seat / Residence |
Fiscal Code |
Owned Shares |
% Ownership |
|
Aston Luxury Group Limited |
100,00 |
Direct
Participations
The Company under review has no
participations in other Companies.
Firm's
location and structure
In order to carry out its activities
the firm uses the following locations:
|
- |
Legal and
operative seat |
|
Trento |
, 7 |
- 15048 |
- Valenza |
(AL) |
- IT - |
|
- |
Branch |
since 10/09/2013 |
|
Borgonuovo |
, 10 |
- 20100 |
- Milano |
(MI) |
- IT - |
|
Employees |
: 12 |
|
Stocks for a value of 3.970.000 |
Eur |
Historical Information and/or Firm's Status
EX-MEMBERS
/ EX-POSITIONS:
|
|
Prada |
Maurizio Carlo |
|
|
Born in Milano |
(MI) |
on 15/05/1956 |
- Fiscal Code : PRDMZC56E15F205Z |
|
|
Residence: |
Misurata |
, 14 |
- 20146 |
Milano |
(MI) |
- IT - |
|
Ex-Postions |
|
Director |
|
Managing Director |
Protests
Protests checking on the subject
firm has given a negative result.
Data
Base Prejudicial Events Search
Search performed on a National
Scale
|
Prejudicial
Events Search Result: NEGATIVE |
Search performed on a
specialized data base.
Legal
Procedures
None reported, standing to the
latest received edition of the Official Publications.
Financial
and Economical Analysis
Subject under review started the
activities in 2011.
The balance-sheet analysis has
been made on the base of the latest 2 financial years.
Under the financial profile
unstable results are noted. yet with a positive result in the 2013 (r.o.e.
4,72%). Business volume is falling in the last financial year.
The operating result in 2013 was
positive (3,4%) and reflects the field's average.
The operating result is positive
and amounts to Eur. 422.622 rising (+more then 100%) in relation to the
previous year.
The gross operating margin of
the latest financial year is of Eur. 489.587 with a more then 100% growth.
The company has an excellent net
worth if compared to its debts, with a low indebtedness (0,51) which is yet
rising if compared to 2012.
The equity capital is equal to
Eur. 8.131.390 , stable in comparison with the value of the previous year.
Eur. 4.219.960 is the amount of
total debts, both commercial and of different nature, whereas in the year
before they amounted to Eur. 8.333.111, with a -49,35% drop.
The recourse to financial credit
is within the limits; on the other hand the recourse to suppliers' credit is
rated as fairly high even in comparison with the sector's.
Liquidity is however good.
As far as the collection of
credit goes, the average is high (816,25 days). besides being higher than the
sector's average.
Eur. 450.459 is the value of
cash flow during the year 2013
Subordinate employment cost is
of Eur. 724.625, i.e. 35,26% on total production costs. , with a 57,19%
incidence on turnover.
The financial charges do not
negatively affect the management, as they are covered by the incomes.
Financial Data
|
|
Complete balance-sheet for the year |
31/03/2013 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
1.267.004 |
|
Profit (Loss) for the period |
383.494 |
|
|
Complete balance-sheet for the year |
31/12/2012 |
(in Eur |
x 1) |
|
Item Type |
Value |
|
Sales |
2.432.864 |
|
Profit (Loss) for the period |
-12.102 |
Balance Sheets
From our constant monitoring of
the relevant Public Administration offices, no more recent balance sheets
result to have been filed.
|
- Balance Sheet
as at 31/03/2013 - 12 Mesi - Currency: - Amounts x 1 |
|
- Balance Sheet as
at 31/12/2012 - 12 Mesi - Currency: - Amounts x 1 |
|
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|
RATIOS |
Value
Type |
as at 31/03/2013 |
as at 31/12/2012 |
Sector Average |
|
COMPOSITION ON
INVESTMENT |
||||
|
Rigidity Ratio |
Units |
0,09 |
0,09 |
0,09 |
|
Elasticity Ratio |
Units |
0,91 |
0,91 |
0,89 |
|
Availability of stock |
Units |
0,32 |
0,30 |
0,26 |
|
Total Liquidity Ratio |
Units |
0,60 |
0,62 |
0,54 |
|
Quick Ratio |
Units |
0,01 |
0,32 |
0,03 |
|
COMPOSITION ON
SOURCE |
||||
|
Net Short-term indebtedness |
Units |
0,51 |
0,41 |
3,95 |
|
Self Financing Ratio |
Units |
0,65 |
0,48 |
0,17 |
|
Capital protection Ratio |
Units |
0,95 |
1,00 |
0,62 |
|
Liabilities consolidation quotient |
Units |
0,01 |
0,00 |
0,10 |
|
Financing |
Units |
0,52 |
1,08 |
4,85 |
|
Permanent Indebtedness Ratio |
Units |
0,66 |
0,48 |
0,29 |
|
M/L term Debts Ratio |
Units |
0,00 |
0,00 |
0,07 |
|
Net Financial Indebtedness Ratio |
Units |
0,13 |
n.c. |
1,04 |
|
CORRELATION |
||||
|
Fixed assets ratio |
Units |
7,67 |
5,50 |
2,37 |
|
Current ratio |
Units |
2,69 |
1,76 |
1,18 |
|
Acid Test Ratio-Liquidity Ratio |
Units |
1,75 |
1,19 |
0,80 |
|
Structure's primary quotient |
Units |
7,65 |
5,50 |
1,48 |
|
Treasury's primary quotient |
Units |
0,02 |
0,62 |
0,04 |
|
Rate of indebtedness ( Leverage ) |
% |
152,73 |
207,91 |
602,26 |
|
Current Capital ( net ) |
Value |
7.136.078 |
6.366.445 |
191.984 |
|
RETURN |
||||
|
Return on Sales |
% |
35,55 |
1,15 |
2,03 |
|
Return on Equity - Net- ( R.O.E. ) |
% |
4,72 |
-0,16 |
6,31 |
|
Return on Equity - Gross - ( R.O.E. ) |
% |
5,10 |
-0,05 |
17,00 |
|
Return on Investment ( R.O.I. ) |
% |
3,40 |
0,07 |
4,18 |
|
Return/ Sales |
% |
33,36 |
0,44 |
3,46 |
|
Extra Management revenues/charges incid. |
% |
90,74 |
-113,51 |
27,96 |
|
Cash Flow |
Value |
450.459 |
28.054 |
44.823 |
|
Operating Profit |
Value |
422.622 |
10.662 |
74.603 |
|
Gross Operating Margin |
Value |
489.587 |
50.818 |
111.383 |
|
MANAGEMENT |
||||
|
Credits to clients average term |
Days |
816,25 |
n.c. |
113,70 |
|
Debts to suppliers average term |
Days |
1601,36 |
n.c. |
118,14 |
|
Average stock waiting period |
Days |
1126,73 |
707,71 |
72,90 |
|
Rate of capital employed return ( Turnover
) |
Units |
0,10 |
0,15 |
1,25 |
|
Rate of stock return |
Units |
0,32 |
0,51 |
4,88 |
|
Labour cost incidence |
% |
57,19 |
7,29 |
8,14 |
|
Net financial revenues/ charges incidence |
% |
0,57 |
1,32 |
-1,38 |
|
Labour cost on purchasing expenses |
% |
35,26 |
6,75 |
8,25 |
|
Short-term financing charges |
% |
0,03 |
0,04 |
2,76 |
|
Capital on hand |
% |
980,21 |
662,12 |
79,85 |
|
Sales pro employee |
Value |
126.700 |
486.572 |
397.742 |
|
Labour cost pro employee |
Value |
72.462 |
35.486 |
33.267 |
Market
/ Territory Data
|
Population living in the province |
: |
429.080 |
|
Population living in the region |
: |
4.330.172 |
|
Number of families in the region |
: |
1.889.207 |
Monthly family expenses average
in the region (in Eur..) :
|
- per food products |
: |
429 |
|
- per non food products |
: |
1.789 |
|
- per energy consume |
: |
135 |
Sector
Data
The values are calculated on a
base of 9.175 significant companies.
The companies cash their credits
on an average of 114 dd.
The average duration of
suppliers debts is about 118 dd.
The sector's profitability is on
an average of 2,03%.
The labour cost affects the
turnover in the measure of 8,14%.
Goods are held in stock in a
range of 73 dd.
The difference between the sales
volume and the resources used to realize it is about 1,25.
The employees costs represent
the 8,25% of the production costs.
Statistical
Detrimental Data
Statistically the trade activity
shows periods of crisis.
The area is statistically considered
moderately risky.
In the region 27.019 protested
subjects are found; in the province they count to 2.105.
The insolvency index for the
region is 0,63, , while for the province it is 0,50.
Total Bankrupt companies in the
province : 1.755.
Total Bankrupt companies in the
region : 14.165.
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.59.64 |
|
UK Pound |
1 |
Rs.99.21 |
|
Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.