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Report Date : |
10.09.2014 |
IDENTIFICATION DETAILS
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Name : |
DCA DIAMOND COMPANY ZAO |
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Registered Office : |
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Country : |
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Date of Incorporation : |
21.10.1998 |
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Legal Form : |
Not Available |
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Line of Business : |
Processors of diamonds and jewellery
products. |
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No. of Employees |
20 (administrative 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 : |
Unknown |
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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) |
|
Armenia |
B2 |
B2 |
|
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 |
ARMENIA ECONOMIC OVERVIEW
After several years of double-digit economic growth, Armenia
faced a severe economic recession with GDP declining more than 14% in 2009, despite
large loans from multilateral institutions. Sharp declines in the construction
sector and workers' remittances, particularly from Russia, led the downturn.
The economy began to recover in 2010 with 2.1% growth, and has grown even
faster in the three years since then. Under the old Soviet central planning
system, Armenia developed a modern industrial sector, supplying machine tools,
textiles, and other manufactured goods to sister republics, in exchange for raw
materials and energy. Armenia has since switched to small-scale agriculture and
away from the large agroindustrial complexes of the Soviet era. Armenia's
geographic isolation, a narrow export base, and pervasive monopolies in
important business sectors have made it particularly vulnerable to the sharp
deterioration in the global economy and the economic downturn in Russia. Since
August 2011, Armenia has experienced a sharp currency depreciation. Armenia has
only two open trade borders - Iran and Georgia - because its borders with
Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a
result of Armenia's ongoing conflict with Azerbaijan over the separatist
Nagorno-Karabakh region. Armenia is particularly dependent on Russian
commercial and governmental support and most key Armenian infrastructure is
Russian-owned and/or managed, especially in the energy sector. The electricity
distribution system was privatized in 2002 and bought by Russia's RAO-UES in
2005. Natural gas is primarily imported from Russia but construction of a
pipeline to deliver natural gas from Iran to Armenia was completed in December
2008, and gas deliveries expanded after the April 2010 completion of the
Yerevan Thermal Power Plant. Armenia's severe trade imbalance has been offset
somewhat by international aid, remittances from Armenians working abroad, and
foreign direct investment. Armenia joined the WTO in January 2003. The
government made some improvements in tax and customs administration in recent
years, but anti-corruption measures have been ineffective and the economic
downturn has led to a sharp drop in tax revenue and forced the government to
accept large loan packages from Russia, the IMF, and other international
financial institutions. Amendments to tax legislation, including the
introduction of the first ever "luxury tax" in 2011, aim to increase
the ratio of budget revenues to GDP, which still remains at low levels. Armenia
will need to pursue additional economic reforms and to strengthen the rule of
law in order to regain economic growth and improve economic competitiveness and
employment opportunities, especially given its economic isolation from two of
its nearest neighbors, Turkey and Azerbaijan.
|
Source
: CIA |
DCA DIAMOND COMPANY ZAO (CORRECT)
DCA DIAMOND COMPANY CJSC
(REQUESTED)
Street :
Ayasi Street 114
Area :
Kilikia District
Town :
Yerevan 0082
Country :
Armenia
Telephone : (374
10) 589 993
Fax : (374 10) 543 916
E-Mail : dca@arminco.com / dca.alt@gmail.com
Shortform Name : DCA
Extended Name : DCA Diamond Company Zakrytoye
Aktsyonernoye Obshchestvo
English Translation : DCA Diamond Company CJSC
Name Position
1. Vanush Barsegyan Managing Director
2. Neila Arutunyan Executive Manager
3. Asmik Avetisyan Accountant
Total Employees : 20 (administrative staff)
No complaints have been heard regarding payments
from local suppliers or banks.
We consider it is acceptable to deal with subject
for MEDIUM amounts, however in view of the lack of financial information we
recommend international suppliers exercise a degree of caution.
Trade risk assessment: Above Average
It is normal accepted practice for international
suppliers to deal on secured terms with Armenian importers.
NAME :
KONVERS BANK
Branch :
Komitas Ave 49
Town :
Yerevan 0051
Telephone: (374 10) 235 301
Fax :
(374 10) 285 082
Private companies in Armenia are not required to
publish or disclose balance sheets. Balance sheets are not available from other
sources, and the subject interviewed declined to give any financial
information, which the company regards as strictly confidential.
Date Started : 21 October 1998
History : The subject company was established in
Armenia on 21 October 1998.
C.R. No. : 290.120.02184
Tax Code: 01824173
Capital : not given
Zakrytoye Aktsyonernoye Obshchestvo (closed joint
stock company) with the following sole shareholder:
Gagik Abrahamyan 100%
The Company is involved in the following activities
:
Processors of diamonds and jewellery products.
NACE Code: 3212
Imports from India, Belgium and Russia.
Exports to Belgium and Russia.
The Company has the following facilities :
Premises comprising administrative offices, a processing
unit and storage facilities located at the heading address.
Ayasi Street 114
Kilikia District
Yerevan 0082
You enquired on: DCA DIAMOND COMPANY CJSC. Please
note that this name applies to an English translation of the subject’s name.
Subject’s correct registered name is as per heading.
Interviewed: Asmik Avetisyan (Accountant).
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 |
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US Dollar |
1 |
Rs.60.43 |
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UK Pound |
1 |
Rs.97.25 |
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Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
SDA |
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.