MIRA INFORM REPORT

 

 

Report Date :

17.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

WURSTER DIAMONDS GMBH

 

 

Registered Office :

Karlsruher Str. 38 D 75179 Pforzheim

 

 

Country :

Germany

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

10.03.1981

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of jewelry and related articles

 

 

No. of Employees

26

 

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)

Germany

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

GERMANY ECONOMIC OVERVIEW

 

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.3% in 2013. The new German government introduced a minimum wage of $11 per hour to take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 Germany reached a budget surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production

 

Source : CIA

 

 

 


Company name and address

 

WURSTER DIAMONDS GMBH

 

Company Status:          active

Karlsruher Str. 38

D 75179 Pforzheim

Telephone:07231/9315-0

Telefax:  07231/9315-30

Homepage: www.wurster.de

E-mail:   info@wurster.de

 

VAT no.:                       DE811116002

 

 

Company summary

 

LEGAL FORM               Private limited company

Date of foundation:       01.01.1945

Shareholders'

agreement:                     04.12.1980

Registered on:              10.03.1981

Commercial Register:    Local court 68159 Mannheim

under:                            HRB 501390

 

Share capital:                          EUR            230,100.00

 

Shareholder:

                     Alfred Wurster

                     Am Nagoldhang 6a

                     D 75173 Pforzheim

                     born: 10.04.1946

                     Share:             EUR            230,100.00

Manager:

                     Alfred Wurster

                     Am Nagoldhang 6a

                     D 75173 Pforzheim

                     having sole power of representation

                     born: 10.04.1946

                     Profession: Master goldsmith

                     Marital status: married

Manager:

                     Andre Stumpf

                     Am Nagoldhang 28a

                     D 75173 Pforzheim

                     having sole power of representation

                     born: 15.06.1970

                     Profession: Businessman

Proxy:

                     Simone Stumpf

                     Am Nagoldhang 28a

                     D 75173 Pforzheim

                     having sole power of representation

                     born: 28.05.1973

                     née: geb. Wurster

                     Profession: Businessman

                     Marital status: married

 

Further functions/participations of Alfred Wurster (Manager)

Limited partner:

                     Schäfer Gold + Silber GmbH & Co. KG

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Ltd partnership with priv. ltd.

                                 company as general partner

                                 dissolved by official decree

                     Total cap.         EUR            250,000.00

                     contribution:

                     Share:             EUR            250,000.00

                     Registered

                     on:         09.11.2005

                     Reg. data:  68159 Mannheim, HRA 504016

Shareholder:

                     Creazione Monasso Schmuckwaren GmbH

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR            102,258.38

                     Share:             EUR             51,129.19

                     Registered

                     on:         15.12.1988

                     Reg. data:  68159 Mannheim, HRB 502458

Shareholder:

                     Weiler GmbH

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR             51,129.19

                     Share:             EUR             51,129.19

                     Registered

                     on:         01.10.1998

                     Reg. data:  68159 Mannheim, HRB 504480

Shareholder:

                     Wurster Holding GmbH

                     Karlsruher Str. 39

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR             50,000.00

                     Share:             EUR             50,000.00

                     Registered

                     on:         27.06.2005

                     Reg. data:  68159 Mannheim, HRB 505838

Manager:

                     Valoro GmbH

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Private limited company

                                 insolvent

                     Share capital:     EUR            512,000.00

                     Registered

                     on:         21.06.2010

                     Reg. data:  68159 Mannheim, HRB 709567

Manager:

                     Wurster GmbH

                     Ostenhellweg 47

                     D 44135 Dortmund

                     Legal form: Private limited company

                     Share capital:     EUR             25,564.59

                     Registered

                     on:         10.10.1988

                     Reg. data:  44135 Dortmund, HRB 8508

Manager:

                     Creazione Monasso Schmuckwaren GmbH

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR            102,258.38

                     Registered

                     on:         15.12.1988

                     Reg. data:  68159 Mannheim, HRB 502458

Manager:

                     Wurster Holding GmbH

                     Karlsruher Str. 39

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR             50,000.00

                     Registered

                     on:         27.06.2005

                     Reg. data:  68159 Mannheim, HRB 505838

 

Further functions/participations of Andre Stumpf (Manager)

Manager:

                     Weiler GmbH

                     Karlsruher Str. 38

                     D 75179 Pforzheim

                     Legal form: Private limited company

                     Share capital:     EUR             51,129.19

                     Registered

                     on:         01.10.1998

                     Reg. data:  68159 Mannheim, HRB 504480

 

 

COMPANY HISTORY

 

01.01.1945 - 01.04.1969  Alfred Wurster (Inh. Alfred Wurster

                         sen.)

                         D 75223 Niefern-Öschelbronn

                         Sole proprietorship

02.04.1969 - 04.12.1980  Alfred Wurster (Inh. Alfred Wurster

                         jun.)

                         D 75223 Niefern-Öschelbronn

                         Sole proprietorship

05.12.1980 - 31.12.1983  Wurster Brillantschmuck GmbH

                         D 75223 Niefern-Öschelbronn

                         Private limited company

 

 

BUSINESS ACTIVITIES

 

Sectors

32120   Manufacture of jewelry and related articles (except

imitation jewelry)

 

46480   Wholesale of clocks and watches and jewelry

 

 

Payment experience:  within agreed terms

 

Negative information:We have no negative information at hand.

 

 

BALANCE SHEET YEAR:  2011/2012

 

 

REAL ESTATE

 

Type of ownership:        Tenant

Address                        Karlsruher Str. 38

                                    D 75179 Pforzheim

 

Real Estate of:               Alfred Wurster

Type of ownership:         proprietor

Share:                           100.00 %

Address                        Karlsruher Str. 38

                                    D 75179 Pforzheim

Type of real estate:       residential and business location

 

Real Estate of:              Alfred Wurster

Type of ownership:        proprietor

Share:                                       100.00 %

Address                        Heumarkt 43

                                    D 50667 Köln

 

Real Estate of:              Alfred Wurster

Type of ownership:         proprietor

Share:                           100.00 %

Address                        Münsterplatz 18-20

                                    D 79098 Freiburg

 

Real Estate of:              Alfred Wurster

Type of ownership:         proprietor

Share:                           100.00 %

Address                         Am Nagoldhang 6a

                                    D 75173 Pforzheim

 

Real Estate of:              Alfred Wurster

Type of ownership:        part owner

Share:                                         25.00 %

Address                         Im Ludlein 6

                                    D 75181 Pforzheim

 

Real Estate of:              Alfred Wurster

Type of ownership:         proprietor

Share:                           100.00 %

Address                        Südliche Hauptstr. 47

                                     D 83703 Gmund

 

Real Estate of:              Alfred Wurster

Type of ownership:        part owner

Share:                           50.00 %

Address                        Baccarat-Str. 37-39

                                    D 76593 Gernsbach

 

Land register documents were not available.

 

 

BANKERS

 

SPARKASSE PFORZHEIM CALW, 75162 PFORZHEIM

Sort. code: 66650085, Account no.: 906808

BIC: PZHSDE66XXX, IBAN: DE62666500850000906808

BADEN-WÜRTTEMBERGISCHE BANK, 75101 PFORZHEIM

Sort. code: 66620020, Account no.: 7498502735

BIC: SOLADEST666

 

 

FINANCIAL FIGURES

 

Turnover:                      2012                 EUR          5,900,000.00

                                    2013                 EUR          5,950,000.00

Expected turnover:                                EUR          5,950,000.00

further business figures:

Equipment:                                           EUR            129,406.00

Ac/ts receivable:                                               EUR          1,302,682.00

Liabilities:                                             EUR          2,416,015.00

Total numbers of vehicles:                                              5

Employees:                                                                  26

- thereof permanent staff:                                                          24

- Temporary workers:                                                                  2

 

 

BALANCE SHEETS

 

Balance sheet ratios      01.04.2011 - 31.03.2012

Equity ratio [%]:                         80.05

Liquidity ratio:                           1.29

Return on total capital [%]:         2.51

 

Balance sheet ratios      01.04.2010 - 31.03.2011

Equity ratio [%]:                        76.30

Liquidity ratio:                           1.01

Return on total capital [%]:          3.11

 

Balance sheet ratios      01.04.2009 - 31.03.2010

Equity ratio [%]:                        66.19

Liquidity ratio:                            0.57

Return on total capital [%]:         -11.27

 

Balance sheet ratios      01.04.2008 - 31.03.2009

Equity ratio [%]:                        53.88

Liquidity ratio:                           0.56

Balance sheet grade:                  2.5

 

Equity ratio

The equity ratio indicates the portion of the equity as compared

to the total capital. The higher the equity ratio, the better the

economic stability (solvency) and thus the financial autonomy of

a company.

 

Liquidity ratio

The liquidity ratio shows the proportion between adjusted

receivables and net liabilities. The higher the ratio, the lower

the company's financial dependancy from external creditors.

 

Return on total capital

The return on total capital shows the efficiency and return on

the total capital employed in the company. The higher the return

on total capital, the more economically does the company work

with the invested capital.

 

 

TYPE OF BALANCE SHEET:               COMPANY BALANCE SHEET

 

FINANCIAL YEAR:      01.04.2011 - 31.03.2012

 

ASSETS                                  EUR          4,192,275.72

 Fixed assets                           EUR            158,240.43

  Intangible assets                     EUR             27,334.00

   Other / unspecified intangible assetsEUR             27,334.00

  Tangible assets                       EUR            129,406.43

   Other / unspecified tangible assets  EUR            129,406.43

  Financial assets                      EUR              1,500.00

   Other / unspecified financial assets EUR              1,500.00

 Current assets                         EUR          3,993,160.97

  Stocks                                EUR          2,679,603.00

  Accounts receivable                   EUR          1,302,681.57

   Other debtors and assets             EUR          1,302,681.57

  Liquid means                          EUR             10,876.40

 Remaining other assets                 EUR             40,874.32

  Accruals (assets)                     EUR             40,874.32

 

LIABILITIES                             EUR          4,192,275.72

 Shareholders' equity                   EUR          1,733,525.95

  Capital                               EUR            230,100.00

   Subscribed capital (share capital)   EUR            230,100.00

  Balance sheet profit/loss (+/-)       EUR          1,503,425.95

   Balance sheet profit / loss          EUR          1,503,425.95

 Provisions                             EUR             42,392.00

 Liabilities                            EUR          2,416,014.77

  Other liabilities                     EUR          2,416,014.77

   Unspecified other liabilities        EUR          2,416,014.77

 Other liabilities                      EUR                343.00

  Deferrals (liabilities)               EUR                343.00

 


 

Type of balance sheet:                         Company balance sheet

 

Financial year:                                     01.04.2010 - 31.03.2011

 

ASSETS                                  EUR          3,847,490.31

 Fixed assets                           EUR            187,496.45

  Intangible assets                     EUR             23,738.00

   Other / unspecified intangible assetsEUR             23,738.00

  Tangible assets                       EUR            162,258.45

   Other / unspecified tangible assets  EUR            162,258.45

  Financial assets                      EUR              1,500.00

   Other / unspecified financial assets EUR              1,500.00

 Current assets                         EUR          3,652,972.86

  Stocks                                EUR          2,771,032.00

  Accounts receivable                   EUR            871,135.55

   Other debtors and assets             EUR            871,135.55

  Liquid means                          EUR             10,805.31

 Remaining other assets                 EUR              7,021.00

  Accruals (assets)                     EUR              7,021.00

 

LIABILITIES                             EUR          3,847,490.31

 Shareholders' equity                   EUR          1,638,622.56

  Capital                               EUR            230,100.00

   Subscribed capital (share capital)   EUR            230,100.00

  Balance sheet profit/loss (+/-)       EUR          1,408,522.56

   Balance sheet profit / loss          EUR          1,408,522.56

 Provisions                             EUR             37,871.00

 Liabilities                            EUR          2,169,069.75

  Other liabilities                     EUR          2,169,069.75

   Unspecified other liabilities        EUR          2,169,069.75

 Other liabilities                      EUR              1,927.00

  Deferrals (liabilities)               EUR              1,927.00


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.60.23

UK Pound

1

Rs.100.79

Euro

1

Rs.83.29

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.