MIRA
INFORM REPORT
|
Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
S.V. GEMS NV |
|
|
|
|
Registered Office : |
Hoveniersstraat 30, Box
227, 2018 Antwerpen |
|
|
|
|
Country : |
Belgium |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
03.06.1997 |
|
|
|
|
Com. Reg. No.: |
460857886 |
|
|
|
|
Legal Form : |
Public Limited Liability
Company |
|
|
|
|
Line of Business : |
Wholesaler of diamonds and
other precious stones |
|
|
|
|
No of Employees : |
02 (31.12.2013) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
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) |
|
Belgium |
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 |
BELGIUM - ECONOMIC OVERVIEW
This modern, open, and private-enterprise-based economy has
capitalized on its central geographic location, highly developed transport
network, and diversified industrial and commercial base. Industry is
concentrated mainly in the more heavily-populated region of Flanders in the
north. With few natural resources, Belgium imports substantial quantities of
raw materials and exports a large volume of manufactures, making its economy
vulnerable to volatility in world markets. Roughly three-quarters of Belgium's
trade is with other EU countries, and Belgium has benefited most from its
proximity to Germany. In 2013 Belgian GDP grew by 0.1%, the unemployment rate
increased to 8.8% from 7.6% the previous year, and the government reduced the
budget deficit from a peak of 6% of GDP in 2009 to 3.2%. Despite the relative
improvement in Belgium's budget deficit, public debt hovers around 100% of GDP,
a factor that has contributed to investor perceptions that the country is
increasingly vulnerable to spillover from the euro-zone crisis. Belgian banks
were severely affected by the international financial crisis in 2008 with three
major banks receiving capital injections from the government, and the
nationalization of the Belgian retail arm of a Franco-Belgian bank
|
Source
: CIA |
Company summary
Business number 460857886
Company name S.V. GEMS NV
Address HOVENIERSSTRAAT
30,
Box 227, 2018 Antwerpen
Number of staff 2
Date of establishment 03/06/1997
Telephone number 032320284
Ultimate
holding company
|
Company name |
Company Number |
|
S.V.
Gems NV |
460857886 |
Commentary
|
The
business was established over 16 years ago. |
|
|
The
business has 2 employees. |
|
|
The
business is part of a group. |
|
|
This
business has a foreign parent business. |
|
|
The
business has been at the address for over 15 years. |
|
|
Operating
Result in the latest trading period increased 31% on the previous trading
period. |
|
|
Pre-tax
profits decreased by 23% compared to the previous trading period. |
|
|
The
business saw an increase in their Cash Balance of 2048% during the latest
trading period. |
|
Accounts
|
DATE OF LATEST ACCOUNTS |
TURNOVER |
PROFIT BEFORE TAX |
NET WORTH |
WORKING CAPITAL |
|
31/12/2013 |
112,996,476 |
144,748 |
1,328,391 |
21,120,096 |
|
31/12/2012 |
120,254,555 |
188,582 |
1,223,357 |
20,215,726 |
|
31/12/2011 |
132,697,397 |
251,124 |
1,090,336 |
22,353,463 |
Accounts
|
DATE OF LATEST ACCOUNTS |
BALANCE TOTAL |
NUMBER OF EMPLOYEES |
CAPITAL |
CASHFLOW |
|
31/12/2013 |
37,924,252 |
2 |
640,000 |
168,261 |
|
31/12/2012 |
45,265,994 |
3 |
640,000 |
181,087 |
|
31/12/2011 |
35,232,857 |
2 |
640,000 |
255,219 |
TRENDS
|
Profitability |
|
|
Liquidity |
|
|
Net worth |
|
Payment
expectations
|
Past payments |
|
Payment expectation days |
14.65 |
|
Industry average payment |
165.27 |
Industry average day sales |
126.95 |
|
expectation days |
|
outstanding |
|
|
Day sales outstanding |
85.65 |
||
Court
data summary
|
BANKRUPTCY DETAILS |
|
|
Court action type |
no |
|
PROTESTED BILLS |
|
|
Bill amount |
- |
|
NSSO DETAILS |
|
|
Date of summons |
15/01/2007 |
Company information
|
Business number |
460857886 |
Company name |
S.V. GEMS NV |
|
Fax number |
|
Date founded |
03/06/1997 |
|
Company status |
active |
Company type |
Public Limited Liability Company (BE) |
|
Currency |
Euro (€) |
Date of latest accounts |
31/12/2013 |
|
Activity code |
46761 |
liable for VAT |
yes |
|
Activity description |
Wholesaler of diamonds and
other precious stones |
VAT Number |
BE.0460.857.886 |
|
Belgian Bullettin of Acts Publications |
moniteur belge |
|
|
Social Balance Sheet Details
|
Social Balance Sheet |
Total |
|
|
|
During the reporting year ended
31-12-2013 |
|
|
|
|
Full-time Employees |
2 |
|
|
|
Part-time Employees |
1 |
|
|
|
Total Fte Employees |
3 |
|
|
|
|
|
|
|
|
Number of hours worked |
|
|
|
|
Full-time Employees |
4,157 |
|
|
|
Part-time Employees |
1,018 |
|
|
|
Total |
5,175 |
|
|
|
|
|
|
|
|
Personnel Charges |
|
|
|
|
Full-time Employees |
96,339 |
|
|
|
Part-time Employees |
- |
|
|
|
Total |
114,700 |
|
|
|
Benefits In Addition To Wages |
- |
|
|
|
|
|
|
|
|
During the previous reporting
year |
|
|
|
|
Average number employees in
Fte |
2 |
|
|
|
Actual working hours |
4,172 |
|
|
|
Personnel Charges |
90,007 |
|
|
|
Benefits In Addition To Wages |
- |
|
|
|
|
|
|
|
|
Type of Contract |
Full-Time |
Part-Time |
Total Fte |
|
Unlimited Duration Contracts |
2 |
1 |
3 |
|
Limited Duration Contracts |
- |
- |
- |
|
Contracts For Specific Work |
- |
- |
- |
|
Contracts Regarding
Substitution |
- |
- |
- |
|
Gender and Education Level |
|
||
|
Men |
Full-Time |
Part-Time |
Total Fte |
|
Primary education |
1 |
- |
1 |
|
Secondairy education |
- |
- |
- |
|
Higher education (non
university) |
- |
- |
- |
|
Higher education (university) |
- |
- |
- |
|
Women |
Full-Time |
Part-Time |
Total Fte |
|
Primary education |
- |
- |
- |
|
Secondairy education |
1 |
- |
1 |
|
Higher education (non
university) |
- |
1 |
1 |
|
Higher education (university) |
- |
- |
- |
|
|
|||
|
Working Category |
Full-Time |
Part-Time |
Total Fte |
|
Management |
- |
- |
- |
|
White collar worker |
2 |
1 |
3 |
|
Blue collar worker |
- |
- |
- |
|
Other |
- |
- |
- |
|
|
|||
|
Temporary personnel |
Total |
||
|
Average number of temporary
staff |
- |
||
|
Actual working hours |
- |
||
|
Cost of temporary staff |
- |
||
|
|
|||
|
New staff and leavers |
Full-Time |
Part-Time |
Total Fte |
|
New Starters |
1 |
- |
1 |
|
Leavers |
1 |
- |
1 |
|
|
|
|
|
|
Total of formal continuing
vocational training initiatives for workers paid by the employer |
Male |
Female |
|
|
Number of employees |
- |
- |
|
|
Number of training hours |
- |
- |
|
|
Net costs for enterprise |
- |
- |
|
|
Total of less formal and
informal continuing vocational training initiatives for workers paid by the
employer |
Male |
Female |
|
|
Number of employees |
- |
- |
|
|
Number of training hours |
- |
- |
|
|
Net costs for enterprise |
- |
- |
|
|
Total of initial training
initiatives at the expense of the employer |
Male |
Female |
|
|
Number of employees |
- |
- |
|
|
Number of training hours |
- |
- |
|
|
Net costs for enterprise |
- |
- |
|
Joint
Industrial Committee
(JIC)
|
JIC Code |
218 |
|
Description |
Additional national joint
committee for the employees |
|
|
|
|
JIC Code |
324.02 |
|
Description |
JSC small merchandisers in the
diamant industry and trade |
Significant Events
|
Event Date |
24/06/2011 |
|
Event Description |
re-appointment of director(s) |
|
Event Details |
Commentaar 24-06-2011:
Herbenoemd als bestuurder en gedelegeerd bestuurder tot na de jaarvergadering
van 2017: Shah Abhaykumar. |
COMPANY ACCOUNTS
Comparison Mode
·
Average Median Export
accounts to CSV File
Profit & Loss
|
Annual accounts |
31-12-2013 |
% |
31-12-2012 |
% |
31-12-2011 |
Industry average 2013 |
% |
|
Weeks |
52 |
|
52 |
|
52 |
|
|
|
Currency |
EUR |
|
EUR |
|
EUR |
|
|
|
Turnover |
112,996,476 |
-6.04 |
120,254,555 |
-9.38 |
132,697,397 |
62,277,817 |
81.44 |
|
Total operating expenses |
112,125,342 |
-6.24 |
119,592,693 |
-9.48 |
132,113,505 |
61,551,729 |
82.16 |
|
Operating result |
871,134 |
31.62 |
661,861 |
13.35 |
583,892 |
427,361 |
103 |
|
Total financial income |
63,526 |
55.86 |
143,927 |
34.08 |
218,330 |
200,981 |
68.39 |
|
Total financial expenses |
789,912 |
27.98 |
617,206 |
12.00 |
551,098 |
504,966 |
56.43 |
|
Results on ordinary operations before taxation |
144,748 |
23.24 |
188,582 |
24.90 |
251,124 |
100,711 |
43.73 |
|
Taxation |
46,087 |
21.45 |
58,670 |
56.87 |
37,400 |
23,828 |
93.41 |
|
Results on ordinary operations after taxation |
98,661 |
24.06 |
129,912 |
39.22 |
213,724 |
82,008 |
20.31 |
|
Extraordinary items |
6,372 |
104 |
3,109 |
43.83 |
5,534 |
2,670 |
138 |
|
Other appropriations |
0.00 |
- |
0.00 |
- |
0.00 |
- |
- |
|
Net result |
105,034 |
21.04 |
133,021 |
39.33 |
219,259 |
84,678 |
24.04 |
|
OTHER INFORMATION |
|
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
38,889 |
- |
|
Director remuneration |
- |
- |
80,530 |
51.83 |
53,040 |
128,145 |
- |
|
Employee costs |
114,700 |
27.43 |
90,007 |
52.84 |
58,890 |
146,536 |
21.73 |
|
Wages and salary |
89,221 |
26.59 |
70,483 |
55.36 |
45,368 |
124,849 |
28.54 |
|
Employee pension costs |
- |
- |
- |
- |
- |
0 |
- |
|
Social security contributions |
19,237 |
29.17 |
14,892 |
70.90 |
8,714 |
29,683 |
35.19 |
|
Other employee costs |
6,242 |
34.78 |
4,631 |
-3.67 |
4,808 |
3,666 |
70.27 |
|
Amortization and depreciation |
63,227 |
31.54 |
48,067 |
33.66 |
35,961 |
27,828 |
127 |
Balance Sheet
|
Annual accounts |
31-12-2013 |
% |
31-12-2012 |
% |
31-12-2011 |
Industry average 2013 |
% |
|
Weeks |
52 |
|
52 |
|
52 |
|
|
|
Currency |
EUR |
|
EUR |
|
EUR |
|
|
|
Intangible fixed assets |
0 |
- |
0 |
- |
0 |
1,098 |
-100 |
|
Tangible fixed assets |
461,991 |
-11.93 |
524,557 |
21.12 |
433,091 |
300,798 |
53.59 |
|
Land & building |
342,016 |
-3.27 |
353,564 |
-3.16 |
365,111 |
619,860 |
44.82 |
|
Plant & machinery |
119,538 |
-29.50 |
169,561 |
161 |
64,930 |
38,380 |
211 |
|
Furniture & Vehicles |
437 |
-69.48 |
1,432 |
53.04 |
3,050 |
18,335 6,739 |
97.62 |
|
Leasing & Other Similar Rights |
- |
- |
- |
- |
- |
153,494 20,215 |
- |
|
Other tangible assets |
0 |
- |
0 |
- |
0 |
6,208 |
-100 |
|
Financial fixed assets |
6,486 |
0 |
6,486 |
32.34 |
9,586 |
44,467 |
85.41 |
|
Total fixed assets |
468,477 |
-11.78 |
531,043 |
19.96 |
442,677 |
310,826 |
50.72 |
|
Inventories |
5,178,688 |
101 |
2,565,352 |
13.12 |
2,267,791 |
6,535,620 |
20.76 |
|
Raw materials & consumables |
- |
- |
- |
- |
- |
- |
- |
|
Work in progress |
0 |
- |
0 |
- |
0 |
11,338 |
-100 |
|
Finished goods |
5,178,688 |
101 |
2,565,352 |
13.12 |
2,267,791 |
5,039,628 |
2.76 |
|
Other stocks |
0 |
- |
0 |
- |
0 |
500,797 |
-100 |
|
Trade debtors |
26,515,695 |
-32.43 |
39,243,905 |
46.88 |
26,717,914 |
12,931,192 |
105 |
|
Cash |
1,205,449 |
2048 |
56,116 |
96.82 |
1,765,083 |
611,639 |
97.08 |
|
other amounts receivable |
4,545,918 |
58.95 |
2,860,052 |
29.03 |
4,030,039 |
369,895 |
1128 |
|
Miscellaneous current assets |
10,026 |
5.24 |
9,527 |
1.86 |
9,353 |
35,082 |
71.42 |
|
Total current assets |
37,455,775 |
-16.27 |
44,734,951 |
28.58 |
34,790,180 |
19,492,995 |
92.15 |
|
Total Assets |
37,924,252 |
-16.22 |
45,265,994 |
28.48 |
35,232,857 |
19,773,741 4,166,959 |
91.79 |
|
CURRENT LIABILITIES |
|||||||
|
Trade creditors |
4,501,834 |
72.93 |
2,603,340 |
113 |
1,220,506 |
7,219,990 |
37.65 |
|
Short term group loans |
- |
- |
- |
- |
- |
- |
- |
|
Financial debts |
11,063,719 |
-47.51 |
21,077,202 |
111 |
9,973,687 |
11,227,529 573,480 |
-1.46 |
|
Current portion of long term debt |
51,748 |
-13.35 |
59,720 |
4.55 |
57,123 |
63,030 10,557 |
17.90 |
|
Amounts Payable for Taxes, Remuneration &
Social Security |
118,079 |
-8.41 |
128,918 |
158 |
49,898 |
13,723 - |
197 |
|
Miscellaneous current liabilities |
600,299 |
-7.65 |
650,046 |
42.75 |
1,135,503 |
-12.25 |
- - |
|
Total current liabilities |
16,335,679 |
-33.38 |
24,519,225 |
97.15 |
12,436,716 |
14,136,039 |
15.56 |
|
LONG TERM DEBTS AND
LIABILITIES |
|||||||
|
Long term group loans |
- |
- |
- |
- |
- |
- |
- - |
|
Other long term loans |
18,628,684 |
35848 |
51,820 |
53.54 |
111,540 |
591 |
- - |
|
Deffered taxes |
- |
- |
- |
- |
- |
0 0 |
- |
|
Provisions for Liabilities & Charges |
0 |
- |
0 |
- |
0 |
3,123 0 |
-100 |
|
Other long term liabilities |
1,631,499 |
-91.62 |
19,471,592 |
-9.83 |
21,594,264 |
192,574 |
747 |
|
Total long term debts |
20,260,183 |
3.77 |
19,523,412 |
10.05 |
21,705,804 |
1,615,472 |
1154 |
|
SHAREHOLDERS EQUITY |
|||||||
|
Issued share capital |
640,000 |
0 |
640,000 |
0 |
640,000 |
2,965,716 |
- |
|
Share premium account |
- |
- |
- |
- |
- |
273,462 |
- |
|
Reserves |
688,391 |
18.01 |
583,357 |
29.54 |
450,336 |
937,471 |
26.57 |
|
Revaluation reserve |
- |
- |
- |
- |
- |
1,662,858 |
- |
|
Total shareholders equity |
1,328,391 |
8.59 |
1,223,357 |
12.20 |
1,090,336 |
4,022,230 |
66.97 |
|
Working capital |
21,120,096 |
4.47 |
20,215,726 |
-9.56 |
22,353,463 |
5,356,955 |
294 |
|
Cashflow |
168,261 |
-7.08 |
181,087 |
29.05 |
255,219 |
108,017 |
55.77 |
|
Net worth |
1,328,391 |
8.59 |
1,223,357 |
12.20 |
1,090,336 |
4,021,132 |
66.96 |
Ratio
Analysis
|
Annual accounts |
31-12-2013 |
change(%) |
31-12-2012 |
change(%) |
31-12-2011 |
Industry average 2013 |
|
|
TRADING PERFORMANCE |
|
|
|
|
|
|
|
|
Profit Before Tax |
0.13 |
-18.75 |
0.16 |
-15.79 |
0.19 |
13,00 |
-99.00 |
|
Return on capital employed |
0.67 |
-26.37 |
0.91 |
-17.27 |
1.10 |
0,00 |
- |
|
Return on total assets employed |
0.38 |
-9.52 |
0.42 |
-40.85 |
0.71 |
-1,00 |
38.00 |
|
Return on net assets employed |
10.90 |
-29.31 |
15.42 |
-33.04 |
23.03 |
7,00 |
55.71 |
|
Sales / net working capital |
5.35 |
-10.08 |
5.95 |
0.17 |
5.94 |
34,00 |
-99 |
|
Stock turnover ratio |
4.58 |
115 |
2.13 |
24.56 |
1.71 |
20,00 |
-77.10 |
|
Debtor days |
85.65 |
-28.09 |
119.11 |
62.08 |
73.49 |
181,00 |
-52.68 |
|
Creditor days |
14.65 |
84.28 |
7.95 |
135 |
3.37 |
89,00 |
-83.54 |
|
SHORT TERM STABILITY |
|||||||
|
Current ratio |
2.29 |
25.82 |
1.82 |
-35.00 |
2.80 |
6,00 |
-87.95 |
|
Liquidity ratio / acid ratio |
1.98 |
15.12 |
1.72 |
-34.35 |
2.62 |
5,00 |
-60.40 |
|
Current debt ratio |
12.30 |
-38.62 |
20.04 |
75.64 |
11.41 |
19,00 |
-35.26 |
|
Liquidity ratio reprocessed |
- |
- |
- |
- |
- |
- |
- |
|
LONG TERM STABILITY |
|||||||
|
Gearing |
2239.11 |
29.28 |
1732.02 |
86.20 |
930.20 |
196,00 |
1042 |
|
Equity in percentage |
3.50 |
29.63 |
2.70 |
-12.62 |
3.09 |
21,00 |
-83.33 |
|
Total debt ratio |
27.55 |
-23.47 |
36 |
14.98 |
31.31 |
19,00 |
45.00 |
Industry
comparison
|
Activity code |
46761 |
|
Activity description |
Wholesaler of diamonds and
other precious stones |
Payment
expectations
|
Payment expectation days |
14.65 |
|
Day sales outstanding |
85.65 |
Industry
comparison
|
|
|
Activity code |
46761 |
|
Activity description |
Wholesaler of diamonds and
other precious stones |
|
Industry average payment
expectation days |
165.27 |
|
Industry average day sales outstanding |
126.95 |
Industry
quartile analysis
|
Payment expectations |
|
|
Company result |
14.65 |
|
Lower |
134.36 |
|
Median |
84.62 |
|
Upper |
45.55 |
|
|
|
|
Day sales outstanding |
|
|
Company result |
85.65 |
|
Lower |
112.48 |
|
Median |
58.70 |
|
Upper |
28.09 |
Shareholder
Details
|
Summary |
|
|
Group - Number of Companies |
2 |
|
Linkages - Number of Companies |
0 |
|
Number of Countries |
0 |
Group
Structure
|
Company name |
Number |
Latest financials |
|
- S.V. GEMS NV |
460857886 |
31-12-2013 |
|
- - INDIGO JEWELLERY (BELGIUM)
BVBA |
874131435 |
31-12-2012 |
Minority
Shareholders
No minority shareholders found
Minority
Interests
No minority interests found
Linked Companies
|
Summary |
|
|
Group - Number of Companies |
2 |
|
Linkages - Number of Companies |
0 |
|
Number of Countries |
0 |
Court data
|
NSSO details |
|
|
Business number |
460857886 |
|
Name of defendant |
SV GEMS |
|
Legal form of defendant |
Limited company |
|
Date of summons |
15/01/2007 |
|
Labour court |
ANTWERPEN |
Bankruptcy
details
There is no bankruptcy data against this company
Bankruptcy Data
Legal events
|
Legal event type |
Social Security Summons |
||
|
Legal event sub type |
|
||
|
Event date |
15/01/2007 |
Secondary event date |
|
|
Court number |
|
Registry body identfier |
|
|
Court type |
Employment Court |
Court name |
Antwerpen |
|
3rd party name |
Rijksdienst voor Sociale
Zekerheid |
3rd party type |
Summoning Party |
Director details
Current Director Details
|
Name |
ABHAYKUMAR SUMATILAL SHAH |
|
Position |
Chairman of the Board |
|
Start Date |
21/09/2005 |
|
Date of birth |
04/07/1973 |
|
Street |
4 SORBENLAAN ANTWERPEN |
|
Post code |
2610 |
|
Country |
Belgium |
|
|
|
|
Name |
ABHAYKUMAR SUMATILAL SHAH |
|
Position |
Director |
|
Start Date |
21/09/2005 |
|
Date of birth |
04/07/1973 |
|
Street |
4 SORBENLAAN ANTWERPEN |
|
Post code |
2610 |
|
Country |
Belgium |
|
|
|
|
Name |
ABHAYKUMAR SUMATILAL SHAH |
|
Position |
Managing Director |
|
Start Date |
03/08/2010 |
|
End Date |
24/06/2017 |
|
Date of birth |
04/07/1973 |
|
Street |
4 SORBENLAAN ANTWERPEN |
|
Post code |
2610 |
|
Country |
Belgium |
|
|
|
|
Name |
S. VINODKUMAR INTERNATIONAL
PTE.LIMITED SOC. ETRANGERE |
|
Position |
Director |
|
Start Date |
02/08/2011 |
|
Country |
Singapore |
|
|
|
|
Name |
S. VINODKUMAR INTERNATIONAL
PTE. LTD. |
|
Position |
Director |
|
Start Date |
03/08/2010 |
|
End Date |
24/06/2017 |
|
Street |
25 RAFFUES PLACE |
|
Post code |
048624 |
|
Country |
Singapore |
|
|
|
|
Name |
ABHAYKUMAR SHAH |
|
Position |
Director |
|
Start Date |
21/09/2005 |
|
|
|
|
Name |
ABHAYKUMAR SHAH |
|
Position |
Managing Director |
|
Start Date |
21/09/2005 |
|
|
|
|
Name |
AMISHKUMAR SHAH |
|
Position |
Legal Representative |
|
Start Date |
21/09/2005 |
DIAMOND INDUSTRY – INDIA
-
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.
-
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.60.05 |
|
UK Pound |
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.