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Report Date : |
22.04.2014 |
IDENTIFICATION DETAILS
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Name : |
THE
JEWELLERY GROUP PTY LIMITED |
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Registered Office : |
Level 14,
182 Victoria Square Adelaide South Australia 5000 |
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Country : |
Australia |
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Date of Incorporation : |
01.03.2007 |
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Com. Reg. No.: |
124077729 |
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Legal Form : |
Australian
Proprietary Company |
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Line of Business : |
Retailer of
jewellery, diamonds and watches |
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No. of Employees |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Australia |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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 |
Verified Address
Subject name THE JEWELLERY GROUP PTY LIMITED
Other style /
Business name : ZAMEL'S JEWELLERS
Business
address : Level 14, 182
Victoria Square
Town : Adelaide
Province : South Australia
Zip/postal code : 5000
Country : Australia
Tel : +61 8 82284557
Fax : +61 8 82327520
Email : accounts@zamels.com.au
Website : www.zamels.com.au
Registered
address : Level 14, 182
Victoria Square
Town : Adelaide
Province : South Australia
Zip/postal code : 5000
Country : Australia
Postal address : GPO Box 976
Town : Adelaide
Province : South Australia
Zip/postal code : 5001
Country : Australia
Executive Summary
Date founded
or registered : 01/03/2007
Legal form : Australian
Proprietary Company
Chief
executive : Adrian
David Murphy
Issued &
paid up capital : AUD 1
Line of
business : Retailer
of jewellery, diamonds and watches.
Staff employed
: 500 employees
Company Analysis
Country risk :
Country risk
is minimal
Operation
trend : Operational
trend is steady
Management
experience : Management is
modestly experienced
Financial
performance : Financial
performance is undetermined
Organization
structure : Organizational
structure is stable
Detrimental : No detrimental records found
Payment
history : No payment
delays noted
Credit amount
asked : Not described.
Registry Data
Registration
date : 01/03/2007
Legal form :
Australian Proprietary Company
Registration no
Australia Company Number: 124077729
Registered
authority : Australian
Securities and Investments Commission
Fiscal/ Tax no
: Australia
Business Number: 25124077729
Registry
status : Live/Active
Previous name
: QJ
FINANCE PTY LIMITED (initial)
Change of
legal form : None
reported.
Key Management
Name : Adrian David Murphy
Designation : Chief Executive Officer
Name : Lachlan Montagu Cairns
Gunn
Designation : Chief Financial Officer
Appointments
Name : Lachlan Montagu
Cairns Gunn
Designation : Director and Company Secretary
Appointment
date : 18/06/07
Address : Unit 12, 3 King Street
Narrabeen, NSW 2101
Australia
Biography : Born on 05-12-1966 in Sydney,
New South Wales, Australia.
Name : Adrian David Murphy
Designation : Director
Appointment
date : 03/08/09
Address : Unit 2, 96 Esplanade
Hove, SA 5048
Australia
Biography : Born on 08-08-1969 in United
Kingdom.
Staff employed
: 500 employees
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
How listed : Full List
Composition
Shareholder name
: THE JEWELLERY GROUP HOLDINGS PTY
LIMITED
Address : Level 14, 182 Victoria
Square
Adelaide, SA 5000
Australia
No. of shares
: 1 Ordinary Share
% of shares : 100%
Structure
Name : M. SURESH COMPANY
PRIVATE LIMITED
Affiliation
type : Ultimate
Holding Company
Address : BW-6010, Bharat Diamond
Bourse
Bandra Kurla Complex, Bandra East
Mumbai 400051
Maharashtra
India
Name : THE JEWELLERY GROUP
HOLDINGS PTY LIMITED
Affiliation
type : Parent Company
Address : Level 14, 182 Victoria
Square
Adelaide, SA 5000
Australia
Bank Details
Name of bank :
St.George Bank
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 : 21 January 2013
ACCC v The Jewellery Group Pty Ltd (No 2): Misleading and Deceptive
Conduct
In ACCC v The Jewellery Group Pty Ltd (No 2) [2013] FCA 14 (18 January
2013)
Justice Lander in the Federal Court of Australia has fined The
Jewellery Group
(trading as Zamels) $250,000 for misleading consumers about savings
made on
jewellery.
The case is said to have "significant implications" for all
retailers in that Justice
Lander found Zamels had misrepresented savings consumers would make
from
purchasing items during sale periods for as many as 44 jewellery items
appearing
in Zamels various catalogues and promotions which had been distributed
nationally and promoted on Zamels website.
Out of the items of jewelry identified Justice Lander found that
Zamels had not
sold the items at the higher price, or it had sold a very limited
quantity at the
higher price prior to the sale commencing. Justice Lander is quoted in
his
judgment as saying “the $250,000 penalty reflected the seriousness of
the conduct”.
The case was prosecuted by the ACCC and the chairman is quoted as
saying the
penalty “was a clear message to businesses that the court takes a dim
view of
this sort of conduct.”
As part of the judgment against it Zamels is also required to publish
corrective
notices in newspapers, on its website, and to implement a trade
practices
compliance program and pay the ACCCs costs.
Tax liens : None reported.
Others : None reported.
Comments : The Subject is classified as a small
proprietary company by the Australian
Securities & Investments Commission hence is not required to
disclose their
financial statement.
A proprietary company is defined as small for a financial year if it
satisfies at least
two of the following:
- The consolidated revenue for the financial year of the company and
any entities
it controls is less than $25 million;
-The value of the consolidated gross assets at the end of the
financial year of the
company and any entities it controls is less than $12.5 million, and
-The company and any entities it controls have fewer than 50 employees
at the
end of the financial year.
Main
activities : The Subject operates
as a retailer of diamonds, jewellery and watches. The Subject
operates 80 jewellery stores under the brand ZAMEL'S JEWELLERS across
Australia.
Product & services : Jewellery
Diamonds
Watches
Purchases
International
: Asia, Europe, Africa, India
Sales
Local : Yes
International
: No exports.
Key events :
11 November 2011
M Suresh
Acquires Australia Based Diamond Retailer - The Jewellery
Group
M Suresh
Company Pvt Ltd has acquired majority stake in Australia based
- The
Jewellery Group Pty Ltd from Sydney based PE firm Quadrant.
The financial
details of the deal were not disclosed, however the size is
supposed to be
around $30Mn.
Adelaide based
The Jewellery Group owns retail stores under the brand
names Zamels
and Mazzuchellis. It operates 101 Zamels stores and 26
Mazzuchellis
stores. The 56 year old Company was bought by Quadrant in
March 2007
from the Zamel family for about $48Mn.
Quadrant had
entered into a 5 year non-compete agreement with Adrian
and Stephen -
the founders of The Jewellery Group in 2007. This deal
coincides with
an end to the non-compete clause signed by Adrian and
Stephen,
allowing them to re-enter the industry.
Quadrant put
up the company for sale in September this year and
mandated Deloitte
to handle the process. Many suitors including New
Zealand-based
jewellery chains Michael Hill and James Pascoe were
interested in
acquiring the diamond jewellery seller. According to some
reports, even
Gitanjali Gems was interested in the company.
Mumbai based M
Suresh Company is a manufacturer, importer and
exporter of
cut and polished diamonds since 1968. Presently, the firm
exports to
USA, Europe, Japan, South East Asia, Israel, UAE & Canada. It
also owns two
jewellery retail brands - Adora and Amaris - in India and
Karishma
retail brand in the US.
Earlier this
year, Gitanjali Gems acquired Italy-based jewellery firm DIT
Group SpA,
which owns brands like Stefan Hafner, IO Si, Roberta Porrati,
and Nouvelle
Bague.
Source:
www.dealcurry.com
Property & Assets
Premises : The Subject operates from premises
located at the verified heading
address consisting of an administrative office.
Branches : In addition, the Subject operates from approximately 80
Zamel's Jewellers
stores located in Australia.
Gross Domestic Products (GDP) &
Economic Overview
Central bank :
Reserve
Bank of Australia
Reserve of
foreign exchange & gold : US$
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
(General
Government gross debt as
a % GDP) : 2010:
20.4%
2011: 22.9%
2012: 24%
Government
bond ratings : Standard & Poor's: AAA
Moody's rating: Aaa
Moody's outlook: STA
Market value
of publicly traded
Shares : US$1.198
trillion
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%
Purchase Term
International
: Prepayment, Telegraphic transfer, D/P, D/A, Credit 30-120 days
Sales Term
Local : Cash, Credit card
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
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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.
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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 |
|
|
1 |
Rs.101.41 |
|
Euro |
1 |
Rs.83.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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 |
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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 |
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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 |
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|
-- |
NB |
New Business |
-- |
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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.