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Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
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Name : |
OKAVANGO DIAMOND COMPANY PTY LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
27.02.2012 |
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Legal Form : |
State Corporation |
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Line of Business : |
Subject
is engaged in mining and exploration services. It is a
rough diamond distribution company |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Botswana |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
Botswana ECONOMIC OVERVIEW
Botswana has maintained
one of the world's highest economic growth rates since independence in 1966.
However, economic growth was negative in 2009, with the industrial sector
shrinking by 30%, after the global crisis reduced demand for Botswana's
diamonds. Although the economy recovered in 2010, GDP growth has again slowed.
Through fiscal discipline and sound management, Botswana transformed itself
from one of the poorest countries in the world to a middle-income country with
a per capita GDP of $16,800 in 2012. Two major investment services rank
Botswana as the best credit risk in Africa. Diamond mining has fueled much of
the expansion and currently accounts for more than one-third of GDP, 70-80% of
export earnings, and about one-third of the government's revenues. Botswana's
heavy reliance on a single luxury export was a critical factor in the sharp
economic contraction of 2009. Tourism, financial services, subsistence farming,
and cattle raising are other key sectors. According to official government
statistics, unemployment reached 17.8% in 2009, but unofficial estimates run
much higher. The prevalence of HIV/AIDS is second highest in the world and
threatens Botswana's impressive economic gains. An expected leveling off in
diamond production within the next two decades overshadows long-term prospects.
A major international diamond company signed a 10-year deal with Botswana in
2012 to move its rough stone sorting and trading division from London to
Gaborone by the end of 2013. The move may support Botswana's downstream diamond
industry.
Source
: CIA
Registered Name: OKAVANGO DIAMOND COMPANY PTY LTD.
Requested Name: OKAVANGO
DIAMOND COMPANY PTY LTD.
Other Names: None
Physical Address: Diamond Technology Park, Plot No.
67782, Block 8, Industrial,
Gaborone,
Country: Botswana
Phone: 267-71301841/3992300
Fax: 267-3907711
Email: info@odc.co.bw
Website: www.odc.co.bw
Legal Form: State Corporation
Date Incorporated: 27-Feb-2012
Reg. Number: Botswana
Nominal Capital BWP. 1,000,000
Subscribed Capital BWP. 1,000,000
Subscribed Capital is Subscribed in the following form:
Position Shares
Honourable Kitso
Mokaila Minister
Mr. Jacob Thamage Chairman
Mr. Toby Frears MD
Mr. Marcus ter Haar Dep. MD
Ms. Susanne
Swaniker-Tettey CFO
Mr. Timothy Lee Manager
Mr. Victor
Potgieter Manager
Government of
Botswana Parent
Government of Botswana Parent
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
None Branches of the firm
Registered to operate mining and exploration services. It is a rough diamond distribution company.
Imports: Europe
Exports: Worldwide
Trademarks: None
Terms of sale: Cash
(40%) and 25-90 days (60%), invoices. and tenders
Main Customers: firms
and organizations
Employees: 500
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Botswana
Location: Owned
premises, 100,000 square feet,
Auditors: Information not available.
Insurance
Brokers: Information not available.
Currency Reported: Botswanan Pula (BWP.)
Approx. Ex. Rate: 1 US Dollar = 8.49 Botswanan Pula
Fiscal
Year End: December 31, 2012
Inflation: According to
information given by independent sources, the
inflation
at December 31st, 2012 was of 13%.
Financial
Information not Submitted
Profit and Loss (expressed in USD.)
2013
Projected Income 400,000,000
Bank Name: Bank of Botswana
Branch: Botswana
Comments: None
None
This information was obtained from outside sources other than the
subject company itself and confirmed the above subject.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.69 |
|
|
1 |
Rs.102.97 |
|
Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
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 |
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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 |
|
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.