MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

PROUDS JEWELLERS PTY LTD

 

 

Formerly Known As : 

PASCOES AUST. PTY LTD

 

 

Registered Office :

28 Parramatta Road, Summer Hill, New South Wales, 2130

 

 

Country :

Australia

 

 

Financials (as on) :

31.05.2013

 

 

Date of Incorporation :

27.02.1996

 

 

Com. Reg. No.:

073053273

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Retailer of jewellery, watches and giftware

 

 

No. of Employees :

6,667

 

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 :

Good

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)

Australia

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

 


 

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 :                          PROUDS JEWELLERS PTY LTD

Other style / Business name :     PROUDS THE JEWELLERS / PROUDS, THE JEWELLERS

 

Business address :                    28 Parramatta Road

Town :                                       Summer Hill

Province :                                  New South Wales

Zip/postal code :                        2130

Country :                                   Australia

Tel :                                          +61 2 95816999

Fax :                                         +61 2 95816953

Website :                                  www.prouds.com.au

 

Registered address :                  28 Parramatta Road

Town :                                       Summer Hill

Province :                                  New South Wales

Zip/postal code :                        2130

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        27/02/1996

Legal form :                               Australian Proprietary Company

Chief executive :                        Terence Edmond Johnstone

Issued & paid up capital :           AUD 1

Sales turnover :              AUD 584,692,000 (Consolidated 12 months, 31/05/2013)

Net income :                              AUD 17,926,000 (Consolidated 12 months, 31/05/2013)

Total fixed assets :                     AUD 382,601,000 (Consolidated 12 months, 31/05/2013)

Line of business :                       Jewellery, watches and giftware retailer.

Staff employed :                         6,667 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 very good

Organization structure :              Organizational structure is consistent

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      27/02/96

Legal form :                               Australian Proprietary Company

Registration no                          Australian Company Number: 073053273

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australian Business Number: 99073053273

Registry status :                        Live/Active

Previous name :                         The Subject was previously known as PASCOES AUST. PTY LTD and changed to the current style on 01-09-1997.

Change of legal form :                 None reported.

Other registration :                     PROUDS, THE JEWELLERS is a business name owned by the Subject registered under business registration no: VIC 1360782D / TAS 115483B / QLD BN6724589 / NSW U4455241 / ACT F 00087375.

 

PROUDS THE JEWELLERS is a business name owned by the Subject registered under business registration no: SA BN03842617 / NT BN00859461 / WA BN09241486.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                                      Terence Edmond Johnstone

Designation :                             Chief Executive Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                                      Anne Norman

Designation :                             Director

Appointment date :                     29/03/96

Address :                                  6 Te Kowhai Place

Remuera, Auckland 1050

New Zealand

Biography :                                Born on 10-07-1945 in New Zealand.

 

Name :                                      David Norman

Designation :                             Director

Appointment date :                     29/03/96

Address :                                  6 Te Kowhai Place

Remuera, Auckland 1050

New Zealand

Biography :                                Born on 02-03-1949 in United Kingdom.

Name :                                      Terence Edmond Johnstone

Designation :                             Director and Company Secretary

Appointment date :                     01/07/11

Address :                                  6 Leverton Close

St Ives, NSW 2075

Australia

Biography :                                Born on 15-10-1943 in Waratah, New South Wales, Australia.

 

Staff employed :                         6,667 employees (Subject)

 

Key Advisors

Auditors :                                  PRICEWATERHOUSECOOPERS

Darling Park Tower, Suite 2

201 Sussex Street

Sydney, NSW 2000

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 1

No of shares :                            1 Ordinary Share

Share par value :                        AUD 1

Issued capital :                          AUD 1

Paid up capital :                         AUD 1

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                               Full List

 

Composition

Shareholder name :                    JAMES PASCOE LIMITED

Address :                                  29 Union Street

Auckland Central, Auckland 1010

New Zealand

No. of shares :                           1 Ordinary Share

% of shares :                             100%

 

 


RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :                                      JAMES PASCOE LIMITED

Affiliation type :                          Parent Company

Address :                                  29 Union Street

Auckland Central, Auckland 1010

New Zealand

 

Name :                                      ANGUS & COOTE PTY LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia

 

Name :                                      ANGUS & COOTE INDUSTRIES PTY LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130 Australia

 

Name :                                      ANGUS & COOTE PROPERTIES PTY LIMITED

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia

 

Name :                                      ANGUS & COOTE SUPERANNUATION PTY. LTD.

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia

 

Name :                                      ANGUS & COOTE (HOLDINGS) LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  4/27 Leeds Street

Rhodes, NSW 2138

Australia

 

Name :                                      ANGUS & COOTE (VIC) PTY. LTD.

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia


Name :                                      GOLDMARK JEWELLERS LIMITED

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  29 Union Street

Auckland Central, Auckland 1010

New Zealand

 

Name :                                      GOLDMARK JEWELLERS PTY LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia

 

Name :                                      HARBOUR CITY JEWELLERS PTY LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  28 Parramatta Road

Summer Hill, NSW 2130

Australia

 

Related companies and              Other companies of the James Pascoe Group should be considered affiliates of

Corporate affiliations comments: the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :                          Australia and New Zealand Banking Group Limited

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 :          31/05/13

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.07 as of 19-04-2014

 

Summarized Financial Information

 

Consolidation type

: Consolidated

Consolidated

Consolidated

Currency

: Australia Dollar (AUD)

Australia Dollar (AUD)

Australia Dollar (AUD)

Denomination

: (x1) One

(x1) One

(x1) One

Date of financial year end

: 31/05/13

31/05/12

31/05/11

Length of accounts

:  12 months

12 months

12 months

Sale turnover / Income

: 584,692,000

597,333,000

592,223,000

Profit before tax

: 25,561,000

22,166,000

27,043,000

Net income

: 17,926,000

15,612,000

18,803,000

Non current assets

: 119,237,000

119,850,000

129,243,000

Current assets

: 263,364,000

271,315,000

264,657,000

Inventories

: 236,228,000

244,414,000

236,234,000

Total assets

: 382,601,000

391,165,000

393,900,000

Current liabilities

: 178,906,000

244,397,000

259,728,000

Non current liabilities

: 49,533,000

12,041,000

12,886,000

Total liabilities

: 228,439,000

256,438,000

272,614,000

Share equity

: 154,162,000

134,727,000

121,286,000

Retained earning

: 153,824,000

135,898,000

120,286,000

Comments :                              The consolidated financial information above relates to the Subject and its subsidiaries.

 

 

OPERATION DETAILS

 

Main activities :                          The Subject operates as a retailer of jewellery, watches and giftware with 210 retail stores located across Australia.

 

Its jewellery includes diamonds, precious stones, gold jewellery, and silver and pearls. The company also offers watches and giftware. In addition, it offers jewellery valuations; jewellery repairs, including resizing, chain and bracelet soldering, charm soldering, clean and polish, claw re-tipping, remakes and remodeling, and hand made pieces; and watch repairs, such as batteries, watch band adjustment or replacement, pin replacement, watch service and clean, and glass replacement.

 

The Subject is a subsidiary of James Pascoe Limited which owns and operates a chain of jeweler shops in New Zealand and Australia. It offers diamond and gold earrings, pendants, bangles, bracelets, and rings, as well as a

selection of gemstone jewellery; gold chains and charms; and jewellery for everyday wear. The company also provides gents jewellery; watches; and giftware products, including display pieces, wall clocks, barometers, and jewellery boxes/cases. In addition, it offers jewellery repair/resizing, watch repair and battery replacement, and jewellery valuation services, as well as quotations for lost, damaged, and jewellery items. The company was founded in 1937 and is headquartered in Auckland, New Zealand. It has store locations in Whangarei, Auckland, Hamilton, Rotorua, Mt Maunganui, Palmerston North, Napier/Hastings, New Plymouth, Wellington, Nelson/Richmond, Christchurch, Timaru, Dunedin, and Invercargill, New Zealand; and Australia.

 

Product & services :                   Jewellery: Diamonds, precious stones, gold jewellery, pearls and silver Watches Giftware

 

Purchases

International :                             Mainly from Asia, Europe, Africa

 

Sales

Local :                                      Yes

International :                             No exports.

 

Property & Assets

Premises :                                The Subject operates from head office located at the verified heading address consisting of an administrative office.

 

Branches :                                In addition, the Subject operates from approximately 210 retail stores located across Australia.

 

Other property :                         Total Net Book Value of property, plant and equipment as of 31-05-2013 was 79,001,000

 

 

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:                                           2010: 20.4%

(General Government gross debt as         2011: 22.9%

a % GDP)                                             2012: 24%

Government bond ratings :                      Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded:               US$1.198 trillion

shares

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, Cash against document, Telegraphic transfer, Credit up to 180 days

 

Sales Term

Local :                                                  Cash, Credit card, Bank transfer

 

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.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.