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Report Date : |
04.12.2014 |
IDENTIFICATION DETAILS
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Name : |
UNITY DIAMOND DISTRIBUTORS (PTY) LTD |
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Registered Office : |
27 Ridge Road 209, 2nd Floor East Tower PARKTOWN Johannesburg Gauteng |
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Country : |
South
Africa |
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Date of Incorporation : |
04.01.1982 |
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Com. Reg. No.: |
1982/000009/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Importers and sellers of polished diamonds |
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No. of Employees : |
±10 permanent staff |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
South Africa |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SOUTH AFRICA - ECONOMIC OVERVIEW
South Africa is a middle-income, emerging market with an
abundant supply of natural resources; well-developed financial, legal,
communications, energy, and transport sectors and a stock exchange that is the
16th largest in the world. Even though the country's modern infrastructure
supports a relatively efficient distribution of goods to major urban centers
throughout the region, unstable electricity supplies retard growth. The global
financial crisis reduced commodity prices and world demand. GDP fell nearly 2%
in 2009 but has recovered since then, albeit slowly with 2014 growth projected
at about 2%. Unemployment, poverty, and inequality - among the highest in the
world - remain a challenge. Official unemployment is at nearly 25% of the work
force, and runs significantly higher among black youth. Eskom, the state-run
power company, has built two new power stations and installed new power demand
management programs to improve power grid reliability. Construction delays at
two additional plants, however, mean South Africa is operating on a razor thin
margin; economists judge that growth cannot exceed 3% until those plants come
on line. South Africa's economic policy has focused on controlling inflation,
however, the country has had significant budget deficits that restrict its
ability to deal with pressing economic problems. The current government faces
growing pressure from special interest groups to use state-owned enterprises to
deliver basic services to low-income areas and to increase job growth.
|
Source
: CIA |
UNITY DIAMOND DISTRIBUTORS (PTY) LTD
PHYSICAL ADDRESS:
27 Ridge Road
209, 2nd Floor
East Tower
PARKTOWN
Johannesburg
Gauteng
POSTAL ADDRESS:
P O Box 2940
PARKLANDS
2121
TELEPHONE NUMBER: +27 11 484 2594 / 5 / 6
FAX NUMBER: +27
11 484 3219
M GERSCHLOWITZ
B B SHER
The percentage shareholding was declined by the respondent.
None
M GERSCHLOWITZ ID
No. 7208175204082
B B SHER ID
No. 5110235032085
STANDARD BANK, Smal Street Branch. Further information regarding banking
facilities was not forthcoming from the respondent as they consider the
information private.
4 January 1982
Registration Certificate Number: 1982/000009/07
The business commenced as a new business in 1982.
4550121067
9629145849
Non-compliant
Importers and sellers of polished diamonds.
The subject imports the diamonds from overseas and deals with a local
clearing agent. It was stated that they consider the industry very sensitive
and competitive therefor declined to assist with further details.
Previously, we have divulged the names of the
major suppliers in our reports. We have discontinued this practice to protect
our valuable sources of trade information.
This has become necessary because we now give a description of the goods
or services to which the trade references relate. This gives our client the ability to assess
whether the purchases are vital to the
subject’s operation and whether we have only been given their essential
suppliers that must be paid promptly for the subject to maintain its operation.
Jewellery traders
AREA OF
DISTRIBUTION AND SELLING: Worldwide
EXPORTS: Worldwide
±10 permanent staff.
None
The premises are reported to be leased.
R1 000 divided into 1 000 ordinary shares of R1
each
R100
Full financial information was not forthcoming
from respondents at the subject and outside authorities were unable to assist
in this regard.
GRUZD ZETS & COMPANY (Tel No. 011 442 3010)
FEBRUARY
ASSOCIATED INSURANCE BROKERS
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.a +1998 open limit R 30 000 - 30
days 30 days Good
R 40 000 (domestic)
1.b undisclosed R2 000 000 - current current
R6
000 000 (international)
TRADE REFERENCES – JANUARY 2010:
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.a 1998 declined figures 35 days 35
days Good
1.b 1998 undisclosed R 100 000- current current Very Good
R6 000
000
TRADE REFERENCES – OCTOBER 2010:
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 8 – 9 years R50 000+ R50 000 30
days 30 days Very Good
TRADE REFERENCES – MAY 2011:
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1998 declined declined 30 days 30 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10
years Declined figures 30 days 30 days Good
NATURE OF GOODS OR SERVICES SUPPLIED:
(These descriptions relate respectively by number
to the above current trade transactions):
1. Transport and delivery
services.
This is an established company that is not a general credit seeker
locally. The subject is considered equal
to its normal business engagements on a secured basis. The lack of financial and banking information
should be borne in mind.
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.
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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.
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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.
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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.
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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.
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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.
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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.61.89 |
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UK Pound |
1 |
Rs.96.83 |
|
Euro |
1 |
Rs.76.57 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
SHG |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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>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 |
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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 |
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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 |
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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 |
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<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.