MIRA INFORM REPORT

 

 

Report Date :

25.04.2014

 

IDENTIFICATION DETAILS

 

Name :

THE JEWELLERY GROUP PTY LIMITED

 

 

Registered Office :

Level 14, 182 Victoria Square, Adelaide South Australia 5000

 

 

Country :

Australia

 

 

Date of Incorporation :

01.03.2007

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Retailer of jewellery, diamonds and watches.

 

 

No of Employees :

500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Australia

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

 

 

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                            : 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

 

 

SUMMARY DETAILS

 

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 found

Payment history                        : No payment delays noted

Credit amount asked                  : Not described.

 

 

STATUTORY DETAILS

 

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.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                                                                : Adrian David Murphy

Designation                                                      : Chief Executive Officer

Name                                                                : Lachlan Montagu Cairns Gunn

Designation                                                      : Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

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

 

 

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                                             : 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%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

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 & MORTGAGES

 

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."

Tax liens

None reported.

Others

None reported.

 

 

FINANCIAL DATA

 

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.

 

 

OPERATION DETAILS

 

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.

 

 

 

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.

 

 

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 a % GDP)

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

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

: 79%

population

 

 

PAYMENT HISTORY

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.06

UK Pound

1

Rs. 102.76

Euro

1

Rs. 84.48

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.