MIRA INFORM REPORT

 

 

Report Date :

16.04.2014

 

IDENTIFICATION DETAILS

 

Name :

GULDTEKNIK I KÖPING AKTIEBOLAG

 

 

Registered Office :

Box 200, 73125 Köping

 

 

Country :

Sweden

 

 

Financials (as on) :

2012

 

 

Date of Incorporation :

02.05.1990

 

 

Com. Reg. No.:

5563951846

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacture of jewellery and related articles

 

 

No. of Employees

10

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Sweden

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 

 

SWEDEN - ECONOMIC OVERVIEW

 

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This, and robust finances, offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and the contraction continued in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove a rebound in 2010, but growth slipped in 2013, as a result of continued economic weakness in the EU - Sweden’s main export market

Source : CIA

 

 

 


REGISTERED NAME & COMPANY SUMMARY

 

Business Name

Guldteknik i Köping Aktiebolag

Country

SWEDEN

Company Registration Number

5563951846

Main Activity

Manufacture of jewellery and related articles

Activity Code

32120

Company Status

Active

Latest Turnover Figure

27.626.000

Latest Shareholder Equity Figure

6.442.000

 

Basic Information

Business Name

Guldteknik i Köping Aktiebolag

Registered Company Name

Guldteknik i Köping Aktiebolag

Company Registration Number

5563951846

Country

SWEDEN

VAT Registration Number

SE556395184601

Date of Company Registration

02/05/1990

Legal Form

Limited liability company

Company Status

Active

Currency of this Report

SEK

Principal Activity Description

Bolaget skall bedriva handel och tillverkning av verktyg och artiklar inom guldsmedbranschen. (The Company shall conduct trading and manufacturing of tools and articles on gold business)

Contact Address

Box 200, 73125 KÖPING

Contact Telephone Number

0221-15430

 

 

DIRECTORS/MANAGEMENT

 

Current Directors

Name

Appointment Date

Position

 

Rolf Johan Pettersson

10/11/2000

Actual Member of Board

 

Lotta Margareta Ingela Pettersson

14/09/2006

Substitute

 

 

 

NEGATIVE INFORMATION

 

No negative information found.

 

 

SHARE & SHARE CAPITAL INFORMATION

 

Issued Share Capital

100.000

 

 

PAYMENT INFORMATION

 

Debt balance at the Swedish Enforcement Agency

Number of Private Claims

-

Balance of Private Claims

-

Number of Public Claims

-

Balance of Public Claims

-

Total Balance

-

 

Record of non-payment

Number of distraint attempts and repossessions

-

Number of public claims

-

Number of private claims

-

Number of applications for an order to pay

-

Number of reclaimed/revoked applications

-

 

 


GROUP STRUCTURE & AFFILIATED COMPANIES

 

No group structure for this company.

 

FINANCIAL INFORMATION

 

Profit and Loss

Financial Year

2012

2011

2010

Number of Weeks

52

52

52

Currency

SEK

SEK

SEK

Consolidated Accounts

N

N

N

Revenue

27.758.000

31.819.000

20.602.000

Operating Costs

26.505.000

29.146.000

19.174.000

Operating Profit

1.253.000

2.673.000

1.428.000

Wages & Salaries

-4.009.000

-3.269.000

-3.276.000

Depreciation

-48.000

-70.000

-72.000

Financial Income

9.000

12.000

2.000

Financial Expenses

-

-7.000

-3.000

Extraordinary Income

-

-

-

Extraordinary Costs

-

-7.000

-3.000

Profit before Tax

1.261.000

2.677.000

1.427.000

Tax

-372.000

-560.000

-288.000

Profit after Tax

889.000

2.117.000

1.139.000

Minority Interests

-

-

-

Other Appropriations

125.000

-612.000

-366.000

Retained Profit

1.014.000

1.506.000

772.000

 

Balance Sheet

Financial Year

2012

2011

2010

Number of Weeks

52

52

52

Currency

SEK

SEK

SEK

Consolidated Accounts

N

N

N

Land & Buildings

217.000

0

0

Plant & Machinery

0

0

0

Other Tangible Assets

484.000

248.000

288.000

Total Tangible Assets

701.000

248.000

288.000

Goodwill

0

0

30.000

Other Intangible Assets

0

0

0

Total Intangible Assets

0

0

30.000

Loans To Group

0

0

0

Other Loans

0

0

0

Miscellaneous Fixed Assets

9.000

9.000

0

Total Other Fixed Assets

9.000

9.000

0

TOTAL FIXED ASSETS

710.000

257.000

318.000

Work In Progress

0

0

0

Other Inventories

5.105.000

3.256.000

2.855.000

Total Inventories

5.105.000

3.256.000

2.855.000

Trade Receivables

3.236.000

5.489.000

3.519.000

Group Receivables

0

0

0

Miscellaneous Receivables

72.000

77.000

156.000

Total Receivables

3.308.000

5.566.000

3.675.000

Cash

1.787.000

941.000

100.000

Other Current Assets

0

0

0

TOTAL CURRENT ASSETS

10.200.000

9.763.000

6.630.000

TOTAL ASSETS

10.910.000

10.020.000

6.948.000

Trade Payables

115.000

132.000

429.000

Bank Liabilities

0

0

20.000

Group Payables

0

0

0

Miscellaneous Liabilities

1.918.000

1.988.000

949.000

TOTAL CURRENT LIABILITIES

2.033.000

2.120.000

1.398.000

Bank Liabilities Due After 1 Year

0

0

0

Other Loans Or Finance Due After 1 Year

0

0

0

Group Payables After 1 Year

0

0

0

Miscellaneous Liabilities Due After 1 Year

2.435.000

2.471.000

1.528.000

TOTAL LONG TERM LIABILITIES

2.435.000

2.471.000

1.528.000

TOTAL LIABILITIES

4.468.000

4.592.000

2.926.000

Called Up Share Capital

100.000

100.000

100.000

Share Premium

0

0

0

Revenue Reserves

6.322.000

5.308.000

3.902.000

Other Reserves

20.000

20.000

20.000

TOTAL SHAREHOLDERS EQUITY

6.442.000

5.428.000

4.022.000

 

Other Financials

Contingent Liabilities

0

0

0

Working Capital

8.167.000

7.643.000

5.232.000

Net Worth

6.442.000

5.428.000

3.992.000

 

Ratios

Pre-Tax Profit Margin

4.54 %

8.41 %

6.93 %

Return On Capital Employed

9.74 %

22.05 %

17.10 %

Return On Total Assets Employed

11.56 %

26.72 %

20.54 %

Return On Net Assets Employed

19.57 %

49.32 %

35.48 %

Sales/Net Working Capital

3.40

4.16

3.94

Stock Turnover Ratio

18.39 %

10.23 %

13.86 %

Debtor Days

42.55

62.97

62.35

Creditor Days

1.51

1.51

7.60

Current Ratio

5.02

4.61

4.74

Liquidity Ratio/Acid Test

2.51

3.07

2.70

Current Debt Ratio

0.32

0.39

0.35

Gearing

6.61 %

6.21 %

0.65 %

Equity In Percentage

59.10 %

54.22 %

58.14 %

Total Debt Ratio

0.69

0.85

0.73

 

 

FOREIGN EXCHANGE RATES

 

N/a

 

 

ADDITIONAL INFORMATION

 

Activities

Activity Code

Activity Description

32120

Manufacture of jewellery and related articles

 

Main Address

Address

Country

Telephone

Box 200, 73125 KÖPING

SWEDEN

0221-15430

 

Other Address

Address

Country

No other addresses for this company.

 

 

Email Addresses

No information for this company.

 

Web Pages

No information for this company.

 

Employee Information

Year

Number of Employees

2012

10

2011

9

2010

9

2009

9

2008

7

 

Advisors

Auditor Name

Dan Häggquist

 

Tax Registrations

Registered for FTax

Yes

Registered for VAT

Yes

Registered for Employee Tax

Yes

 

Certificates

Type

Category

Issuer

No certificate information for this company.

 

 

 

Industry Comparison

Activity Code

32120

Activity Description

Manufacture of jewellery and related articles

Industry Average Credit Rating

69 (1 - 100)

Industry Average Credit Limit

1.000

 

Event History

Event Date

Event Description

29/07/2013

Annual account, new

09/07/2013

Annual report (PDF), new

07/09/2012

Annual account, new

19/07/2012

Annual report (PDF), new

11/08/2011

Annual account, new

28/07/2011

Annual report (PDF), new

29/03/2011

Fax number, removed

29/03/2011

Phone number, changed

06/08/2010

Annual account, new

28/07/2010

Annual report (PDF), new

13/07/2010

Address, changed

19/02/2010

Board, changed

16/02/2010

Board, changed

10/08/2009

Annual account, new

30/07/2009

Annual report (PDF), new

 

 

NOTES & COMMENTS

 

N/a


 

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.60.26

UK Pound

1

Rs.100.70

Euro

1

Rs.83.27

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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%)

MIRA INFORM REPORT

 

 

Report Date :

16.04.2014

 

IDENTIFICATION DETAILS

 

Name :

GULDTEKNIK I KÖPING AKTIEBOLAG

 

 

Registered Office :

Box 200, 73125 Köping

 

 

Country :

Sweden

 

 

Financials (as on) :

2012

 

 

Date of Incorporation :

02.05.1990

 

 

Com. Reg. No.:

5563951846

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacture of jewellery and related articles

 

 

No. of Employees

10

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Sweden

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

D

 

 

SWEDEN - ECONOMIC OVERVIEW

 

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This, and robust finances, offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and the contraction continued in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove a rebound in 2010, but growth slipped in 2013, as a result of continued economic weakness in the EU - Sweden’s main export market

Source : CIA

 

 

 


REGISTERED NAME & COMPANY SUMMARY

 

Business Name

Guldteknik i Köping Aktiebolag

Country

SWEDEN

Company Registration Number

5563951846

Main Activity

Manufacture of jewellery and related articles

Activity Code

32120

Company Status

Active

Latest Turnover Figure

27.626.000

Latest Shareholder Equity Figure

6.442.000

 

Basic Information

Business Name

Guldteknik i Köping Aktiebolag

Registered Company Name

Guldteknik i Köping Aktiebolag

Company Registration Number

5563951846

Country

SWEDEN

VAT Registration Number

SE556395184601

Date of Company Registration

02/05/1990

Legal Form

Limited liability company

Company Status

Active

Currency of this Report

SEK

Principal Activity Description

Bolaget skall bedriva handel och tillverkning av verktyg och artiklar inom guldsmedbranschen. (The Company shall conduct trading and manufacturing of tools and articles on gold business)

Contact Address

Box 200, 73125 KÖPING

Contact Telephone Number

0221-15430

 

 

DIRECTORS/MANAGEMENT

 

Current Directors

Name

Appointment Date

Position

 

Rolf Johan Pettersson

10/11/2000

Actual Member of Board

 

Lotta Margareta Ingela Pettersson

14/09/2006

Substitute

 

 

 

NEGATIVE INFORMATION

 

No negative information found.

 

 

SHARE & SHARE CAPITAL INFORMATION

 

Issued Share Capital

100.000

 

 

PAYMENT INFORMATION

 

Debt balance at the Swedish Enforcement Agency

Number of Private Claims

-

Balance of Private Claims

-

Number of Public Claims

-

Balance of Public Claims

-

Total Balance

-

 

Record of non-payment

Number of distraint attempts and repossessions

-

Number of public claims

-

Number of private claims

-

Number of applications for an order to pay

-

Number of reclaimed/revoked applications

-

 

 


GROUP STRUCTURE & AFFILIATED COMPANIES

 

No group structure for this company.

 

FINANCIAL INFORMATION

 

Profit and Loss

Financial Year

2012

2011

2010

Number of Weeks

52

52

52

Currency

SEK

SEK

SEK

Consolidated Accounts

N

N

N

Revenue

27.758.000

31.819.000

20.602.000

Operating Costs

26.505.000

29.146.000

19.174.000

Operating Profit

1.253.000

2.673.000

1.428.000

Wages & Salaries

-4.009.000

-3.269.000

-3.276.000

Depreciation

-48.000

-70.000

-72.000

Financial Income

9.000

12.000

2.000

Financial Expenses

-

-7.000

-3.000

Extraordinary Income

-

-

-

Extraordinary Costs

-

-7.000

-3.000

Profit before Tax

1.261.000

2.677.000

1.427.000

Tax

-372.000

-560.000

-288.000

Profit after Tax

889.000

2.117.000

1.139.000

Minority Interests

-

-

-

Other Appropriations

125.000

-612.000

-366.000

Retained Profit

1.014.000

1.506.000

772.000

 

Balance Sheet

Financial Year

2012

2011

2010

Number of Weeks

52

52

52

Currency

SEK

SEK

SEK

Consolidated Accounts

N

N

N

Land & Buildings

217.000

0

0

Plant & Machinery

0

0

0

Other Tangible Assets

484.000

248.000

288.000

Total Tangible Assets

701.000

248.000

288.000

Goodwill

0

0

30.000

Other Intangible Assets

0

0

0

Total Intangible Assets

0

0

30.000

Loans To Group

0

0

0

Other Loans

0

0

0

Miscellaneous Fixed Assets

9.000

9.000

0

Total Other Fixed Assets

9.000

9.000

0

TOTAL FIXED ASSETS

710.000

257.000

318.000

Work In Progress

0

0

0

Other Inventories

5.105.000

3.256.000

2.855.000

Total Inventories

5.105.000

3.256.000

2.855.000

Trade Receivables

3.236.000

5.489.000

3.519.000

Group Receivables

0

0

0

Miscellaneous Receivables

72.000

77.000

156.000

Total Receivables

3.308.000

5.566.000

3.675.000

Cash

1.787.000

941.000

100.000

Other Current Assets

0

0

0

TOTAL CURRENT ASSETS

10.200.000

9.763.000

6.630.000

TOTAL ASSETS

10.910.000

10.020.000

6.948.000

Trade Payables

115.000

132.000

429.000

Bank Liabilities

0

0

20.000

Group Payables

0

0

0

Miscellaneous Liabilities

1.918.000

1.988.000

949.000

TOTAL CURRENT LIABILITIES

2.033.000

2.120.000

1.398.000

Bank Liabilities Due After 1 Year

0

0

0

Other Loans Or Finance Due After 1 Year

0

0

0

Group Payables After 1 Year

0

0

0

Miscellaneous Liabilities Due After 1 Year

2.435.000

2.471.000

1.528.000

TOTAL LONG TERM LIABILITIES

2.435.000

2.471.000

1.528.000

TOTAL LIABILITIES

4.468.000

4.592.000

2.926.000

Called Up Share Capital

100.000

100.000

100.000

Share Premium

0

0

0

Revenue Reserves

6.322.000

5.308.000

3.902.000

Other Reserves

20.000

20.000

20.000

TOTAL SHAREHOLDERS EQUITY

6.442.000

5.428.000

4.022.000

 

Other Financials

Contingent Liabilities

0

0

0

Working Capital

8.167.000

7.643.000

5.232.000

Net Worth

6.442.000

5.428.000

3.992.000

 

Ratios

Pre-Tax Profit Margin

4.54 %

8.41 %

6.93 %

Return On Capital Employed

9.74 %

22.05 %

17.10 %

Return On Total Assets Employed

11.56 %

26.72 %

20.54 %

Return On Net Assets Employed

19.57 %

49.32 %

35.48 %

Sales/Net Working Capital

3.40

4.16

3.94

Stock Turnover Ratio

18.39 %

10.23 %

13.86 %

Debtor Days

42.55

62.97

62.35

Creditor Days

1.51

1.51

7.60

Current Ratio

5.02

4.61

4.74

Liquidity Ratio/Acid Test

2.51

3.07

2.70

Current Debt Ratio

0.32

0.39

0.35

Gearing

6.61 %

6.21 %

0.65 %

Equity In Percentage

59.10 %

54.22 %

58.14 %

Total Debt Ratio

0.69

0.85

0.73

 

 

FOREIGN EXCHANGE RATES

 

N/a

 

 

ADDITIONAL INFORMATION

 

Activities

Activity Code

Activity Description

32120

Manufacture of jewellery and related articles

 

Main Address

Address

Country

Telephone

Box 200, 73125 KÖPING

SWEDEN

0221-15430

 

Other Address

Address

Country

No other addresses for this company.

 

 

Email Addresses

No information for this company.

 

Web Pages

No information for this company.

 

Employee Information

Year

Number of Employees

2012

10

2011

9

2010

9

2009

9

2008

7

 

Advisors

Auditor Name

Dan Häggquist

 

Tax Registrations

Registered for FTax

Yes

Registered for VAT

Yes

Registered for Employee Tax

Yes

 

Certificates

Type

Category

Issuer

No certificate information for this company.

 

 

 

Industry Comparison

Activity Code

32120

Activity Description

Manufacture of jewellery and related articles

Industry Average Credit Rating

69 (1 - 100)

Industry Average Credit Limit

1.000

 

Event History

Event Date

Event Description

29/07/2013

Annual account, new

09/07/2013

Annual report (PDF), new

07/09/2012

Annual account, new

19/07/2012

Annual report (PDF), new

11/08/2011

Annual account, new

28/07/2011

Annual report (PDF), new

29/03/2011

Fax number, removed

29/03/2011

Phone number, changed

06/08/2010

Annual account, new

28/07/2010

Annual report (PDF), new

13/07/2010

Address, changed

19/02/2010

Board, changed

16/02/2010

Board, changed

10/08/2009

Annual account, new

30/07/2009

Annual report (PDF), new

 

 

NOTES & COMMENTS

 

N/a


 

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.60.26

UK Pound

1

Rs.100.70

Euro

1

Rs.83.27

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.