MIRA
INFORM REPORT
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Report Date : |
01.02.2014 |
IDENTIFICATION DETAILS
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Name : |
FREDERICK GOLDMAN INC |
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Registered Office : |
154 W. 14th Street, New York, NY 10011 |
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Country : |
United States |
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Date of Incorporation : |
07.11.1962 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
The Company is importer, manufacturer, wholesaler and retailer of
jewellery. |
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No. of Employees : |
150 to 200 (depending of
the season) |
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 – December 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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United States |
A1 |
A1 |
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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 |
UNITED STATES - ECONOMIC OVERVIEW
The US has the largest and most
technologically powerful economy in the world, with a per capita GDP of
$49,800. In this market-oriented economy, private individuals and business
firms make most of the decisions, and the federal and state governments buy
needed goods and services predominantly in the private marketplace. US business
firms enjoy greater flexibility than their counterparts in Western Europe and
Japan in decisions to expand capital plant, to lay off surplus workers, and to
develop new products. At the same time, they face higher barriers to enter
their rivals' home markets than foreign firms face entering US markets. US
firms are at or near the forefront in technological advances, especially in
computers and in medical, aerospace, and military equipment; their advantage has
narrowed since the end of World War II. The onrush of technology largely
explains the gradual development of a "two-tier labor market" in
which those at the bottom lack the education and the professional/technical
skills of those at the top and, more and more, fail to get comparable pay
raises, health insurance coverage, and other benefits. Since 1975, practically
all the gains in household income have gone to the top 20% of households. Since
1996, dividends and capital gains have grown faster than wages or any other
category of after-tax income. Imported oil accounts for nearly 55% of US
consumption. Crude oil prices doubled between 2001 and 2006, the year home
prices peaked; higher gasoline prices ate into consumers' budgets and many
individuals fell behind in their mortgage payments. Oil prices climbed another
50% between 2006 and 2008, and bank foreclosures more than doubled in the same
period. Besides dampening the housing market, soaring oil prices caused a drop
in the value of the dollar and a deterioration in the US merchandise trade
deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis,
falling home prices, investment bank failures, tight credit, and the global
economic downturn pushed the United States into a recession by mid-2008. GDP
contracted until the third quarter of 2009, making this the deepest and longest
downturn since the Great Depression. To help stabilize financial markets, in
October 2008 the US Congress established a $700 billion Troubled Asset Relief
Program (TARP). The government used some of these funds to purchase equity in
US banks and industrial corporations, much of which had been returned to the
government by early 2011. In January 2009 the US Congress passed and President
Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus
to be used over 10 years - two-thirds on additional spending and one-third on
tax cuts - to create jobs and to help the economy recover. In 2010 and 2011,
the federal budget deficit reached nearly 9% of GDP. In 2012 the federal
government reduced the growth of spending and the deficit shrank to 7.6% of
GDP. Wars in Iraq and Afghanistan required major shifts in national resources
from civilian to military purposes and contributed to the growth of the budget
deficit and public debt. Through 2011, the direct costs of the wars totaled
nearly $900 billion, according to US government figures. US revenues from taxes
and other sources are lower, as a percentage of GDP, than those of most other
countries. In March 2010, President OBAMA signed into law the Patient
Protection and Affordable Care Act, a health insurance reform that was designed
to extend coverage to an additional 32 million American citizens by 2016,
through private health insurance for the general population and Medicaid for
the impoverished. Total spending on health care - public plus private - rose
from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed
the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to
promote financial stability by protecting consumers from financial abuses,
ending taxpayer bailouts of financial firms, dealing with troubled banks that
are "too big to fail," and improving accountability and transparency
in the financial system - in particular, by requiring certain financial
derivatives to be traded in markets that are subject to government regulation
and oversight. In December 2012, the Federal Reserve Board announced plans to
purchase $85 billion per month of mortgage-backed and Treasury securities in an
effort to hold down long-term interest rates, and to keep short term rates near
zero until unemployment drops below 6.5% or inflation rises above 2.5%. In late
2013, the Fed announced that it would begin scaling back long-term bond purchases
to $75 billion per month in January 2014 and reduce them further as conditions
warranted; the Fed, however, would keep short-term rates near zero so long as
unemployment and inflation had not crossed the previously stated thresholds.
Long-term problems include stagnation of wages for lower-income families,
inadequate investment in deteriorating infrastructure, rapidly rising medical
and pension costs of an aging population, energy shortages, and sizable current
account and budget deficits.
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Source
: CIA |
Company Name and Address
Company name: FREDERICK GOLDMAN INC
Address: 154 W. 14th Street, New
York, NY 10011 - USA
Telephone: +1
212-924-6767
Fax: +1 212-989-0134
Website: www.fgoldman.com
Company Summary
Corporate ID#: 151880
State: New York State
Judicial form: Corporation – Profit
Date incorporated: November
7, 1962
Stock: 3,200
shares common
Value: No
par value
Name of manager: Richard
GOLDMAN
ACTIVITIES
& OPERATIONS
History:
The Goldman family tradition of excellence spans a period of over fifty
years. Frederick Goldman founded his company in the late 1940's as a one-man
operation specializing in plain wedding rings. The Goldman line was expanded to
include engraved wedding rings in the 1950's.
Today, Frederick Goldman, Inc. is headed by Jonathan Goldman, as chairman
and CEO and his brother Richard as President.
The small company founded by their father has grown to become one of the
largest jewelry manufacturing companies in North America offering its customers
a large selection of jewelry products across its many separate divisions. In
addition to being an extremely large user of gold and diamonds, Frederick
Goldman, Inc. is the largest user of platinum in the United States for jewelry
purposes.
The success of Frederick Goldman, Inc. is the result of years of
uncompromising dedication to a never-ending quest for manufacturing excellence.
The use of precious metals, precious stones, special finishes and manufacturing
techniques has made us masters in the art of jewelry making. Innovative and
sophisticated marketing programs, developed and offered across our many
divisions, have made the company a leader in the industry.
Everyday, from their computer monitors, Frederick Goldman employees are
reminded of the company's mission statement: "Dedicated to becoming the
most valued supplier of high quality jewelry for our customers through total
customer satisfaction." This dedication and single-minded vision has truly
earned Frederick Goldman, Inc. the reputation as America's bridal jewelry
leader.
Business:
The Company is importer, manufacturer, wholesaler and retailer
jewellery.
In addition to Art Carved and Diana Classic, New York-based Frederick
Goldman's brands include Goldman, Keepsake, Lyric and Triton.
The company has a collection of engagement, wedding and anniversary
special rings.
Its products are available in various metals that include gold, white
gold and silver. The yellow and white gold rings are available with diamond and
semiprecious stones. The rings are crafted in 16- and 18-carat yellow gold.
Frederick Goldman Inc., is a proud member of the Jewelers Vigilance
Committee (JVC) and a Sponsor of Jewelers for Children supporting the
Make-a-Wish Foundation, St Jude's Children's Research Hospital, Pediatric AIDS
Foundation and others. In addition, Frederick Goldman Inc., participates in the
Platinum Guild International, and the International Palladium Council.
The Company imports mainly from Europe.
Office of the Foreign
Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a publication of OFAC
which lists individuals and organizations with whom United States citizens and
permanent residents are prohibited from doing business.
EIN: 13-1973372
Staff: 150 to 200 (depending of the
season)
Operations & branches:
At the headquarters, we
find a large showroom and the corporate office, on lease.
SHAREHOLDERS & MANAGERS
Shareholders:
This is a GOLDMAN family
owned and managed company.
Management:
Jonathan GOLDMAN is the Chairman and CEO.
Graduate from Harvard Business School
Richard GOLDMAN is the President.
They are 2 brothers.
As far as we know, they are not involved in other local corporations.
Subsidiaries and
partnership:
None
FINANCIALS
In United States, privately
held corporations are not required to publish any financials.
On a direct call, a
financial assistant controlled the present report but deferred any financials.
We sent a fax but no answer
received.
Outside sources (bank) gave
sales for year 2013 in excess of USD 20,000,000+
The business is profitable.
Banks: HSBC Bank
452 5th Avenue, New York, NY 10018
Ph: +1 800-975-4722
LEGAL FILINGS
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts
summary (UCC):
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COMPANY
CREDIT HISTORY
Trade references:
Date reported: November 2013
High credit: USD 50,000+
Now owing: 0
Past due: 0
Last purchase: October 2013
Line of business: Office supply
Paying status: 2 days beyond terms
Date reported: November 2013
High credit: USD 300,000+
Now owing: 0
Past due: 0
Last purchase: October 2013
Line of business: Payroll
Paying status: As agreed
Date reported: November 2013
High credit: USD 1,800
Now owing: 0
Past due: 0
Last purchase: October 2013
Line of business: Telecommunications
Paying status: 3 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
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Monthly Payment Trends - Recent Activity |
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National Credit Bureaus
gave a medium credit rating.
Domestic payments are usually made with an average of 10 days beyond
terms.
International
credit history:
Payments of imports are currently made on terms.
Other comments:
The bank confirmed an
account on 6 figures medium.
The Company is in good standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
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 –
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.48 |
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1 |
Rs.102.95 |
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Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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.