MIRA INFORM REPORT

 

 

Report Date :

22.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ARODIAM MANUFACTURING COMPANY NV

 

 

Registered Office :

Pelikaanstraat 78 2018 Antwerpen

 

 

Country :

Belgium

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.07.1988

 

 

Com. Reg. No.:

434802993

 

 

Legal Form :

Public Limited Liability Company (BE)

 

 

Line of Business :

Preparation of Diamonds

 

 

No. of Employees :

28

 

 

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 :

No Complaints

 

 

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)

Belgium

A1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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                     434802993

Company name                       ARODIAM MANUFACTURING COMPANY NV

Address                                    PELIKAANSTRAAT 78 2018 ANTWERPEN

Number of staff                        28

Date of establishment              12/07/1988

Telephone number                  032264044

Fax number                             032252793

 

 

Ultimate holding company

 

Company name                       Arodiam Manufacturing Company NV

Company Number                    434802993

 

 

Commentary

 

The business was established over 26 years ago.

The business has 20 employees.

The business is part of a group.

This business has a foreign parent business.

The business has been at the address for over 18 years.

Operating Result in the latest trading period decreased 36% on the previous trading period.

Pre-tax profits decreased by 66% compared to the previous trading period.

The business saw an increase in their Cash Balance of 56% during the latest trading period.

 

 

Accounts

 

Date of latest accounts

Turnover

Profit Before Tax

Net worth

Working capital

31/12/2012

185,348,153

334,937

30,462,029

43,133,649

31/12/2011

180,094,183

992,782

30,720,067

42,563,825

31/12/2010

150,294,698

478,199

28,785,421

40,124,371

 

Date of latest accounts

Balance Total

Number of Employees

Capital

Cash flow

31/12/2012

107,983,797

28

10,566,155

564,952

31/12/2011

91,895,709

31

10,775,276

1,253,325

31/12/2010

80,987,997

33

10,433,712

826,427

 

 

Payment expectations

 

Past payments

Payment expectation days                                          26.06

Industry average payment expectation days               94.33

Industry average day sales outstanding                      116.81

Day sales outstanding                                                  127.33

 

 

Court Data Summary

 

Bankruptcy details

Court action type                     No

Date of summons                     23/12/2008

 

Company information

Business number                     434802993

Company name                       ARODIAM MANUFACTURING COMPANY NV

Fax number                             032252793

Date founded                           12/07/1988

Company status                       active

Company type                                     Public Limited Liability Company (BE)

Currency                                  Euro (€)

Date of latest accounts            31/12/2012

Activity code                            32121

Liable for VAT                                     yes

Activity description                  Preparation of diamonds

VAT Number                            BE.0434.802.993 Check

Belgian Bullettin of Acts

Publications                             moniteur belge

 

 

Social Balance Sheet Details

 

Social Balance Sheet                                                                                      Total

During the reporting year ended 31-12-2012

Full-time Employees                                        26

Part-time Employees                                       7

Total Fte Employees                                        29

 

Number of hours worked

Full-time Employees                                        43,579

Part-time Employees                                       6,669

Total                                                                50,248

 

Personnel Charges

Full-time Employees                                        850,824

Part-time Employees                                       130,223

Total                                                                981,047

 

Benefits In Addition To Wages                        -

 

During the previous reporting year

Average number employees in Fte                 33

Actual working hours                                       54,176

Personnel Charges                                          981,047

Benefits In Addition To Wages                        -

 

Type of Contract                      Full-Time         Part-Time         Total Fte

Unlimited Duration

Contracts

25                     7                                  29

Limited Duration

Contracts                                 -                       -                                   -

Contracts For Specific

Work                                        -                       -                                   -

Contracts Regarding

Substitution                             -                       -                                   -

 

Gender and Education

Level

Men                                         Full-Time         Part-Time         Total Fte

Primary education                   5                      -                       5

Secondairy education                         18                     1                      19

Higher education (non

university)                                -                       -                       -

Higher education

(university)                               -                       -                       -          

 

Women                                    Full-Time         Part-Time         Total Fte

Primary education                   -                       -                       -

Secondairy education                         2                      6                      5

Higher education (non

university)                                -                       -                       -

Higher education

(university)                               -                       -                       --

 

Working Category                    Full-Time         Part-Time         Total Fte

Management                           -                       -                       -

White collar worker                 5                      7                      9

Blue collar worker                   20                     -                       20

Other                                       -                       -                       -

 

New staff and leavers              Full-Time         Part-Time         Total Fte

New Starters                            2                      -                       2

Leavers                                    5                      -                       5

 

 

Joint Industrial Committee (JIC)

 

JIC Code                      218

Description                  Additional national joint committee for the employees

category

JIC Code                      324.02

Description                  JSC small merchandisers in the diamant industry and trade

category

 

 

Significant Events

 

Event Date                   30/12/2011

Event Description         re-appointment of director(s)

Event Details                Commentaar 01-01-2012: Herbenoemd als bestuurder vanaf 01/01/2012 tot na de

                                    jaarvergadering van 2017: Gutfreund Henri (tevens als gedelegeerd bestuurder), Parnas

David, Mal Lionel Ngoc en de CVOA AMC Belgium.

 

 

Profit and Loss

 

 

 

 

 

 

Industry

 

Annual accounts

31-12-2012

% 31-12-2011

%

31-12-2010

average 2012

%

Weeks

52

52

 

52

 

 

Currency

EUR

EUR

 

EUR

 

 

Turnover

185,348,153   2.92   180,094,183      19.83

150,294,698   28,627,638

547

Total operating expenses

183,450,885   3.58   177,112,543      20.39

147,121,047   28,381,669

546

Operating result

1,897,268

-36.37 2,981,640

-6.05

3,173,651

77,935

2334

Total financial income

83,763

-24.67 111,190

-8.45

121,455

90,553

-7.50

Total financial expenses

1,646,094

-21.62  2,100,048

-25.45  2,816,907

130,493

1161

Results on ordinary operations before taxation

334,937

-66.26  992,782

107

478,199

27,463

1119

Taxation

-493

-109   5,040

9.59

-52,566

21,398

-102

Results on ordinary operations after taxation

335,430

-66.04  987,742

86.10

530,765

13,132

2454

Extraordinary items

2,584

-41.55  4,421

-44.69   7,993

3,183

-18.82

Other appropriations

1

-0

-0

-

-

Net result

338,015

-65.93   992,163

84.16

538,758

16,321

1971

 

other information

 

 

 

 

Gross Operating Margin

-

--

-

-

85,390

-

Dividends

-

--

-

-

239,722

-

Director remuneration

199,340

49.19    133,619

5.70

126,416

204,292

-2.42

Employee costs

981,047

-13.50  1,134,191

14.28

992,433

346,370

183

Wages and salary

776,378

-14.45  907,473

15.13

788,247

259,751

198

Employee pension costs

-

- -

-

-

1,905

-

Social security contributions

173,795

-10.22   193,587

12.30

172,383

98,063

77.23

Other employee costs

30,875

-6.81    33,131

4.18

31,803

7,546

309

Amortization and depreciation

226,937

-13.10   261,162

-9.21

287,669

31,724

615

 

 

Balance sheet

 

Annual accounts

31-12-2012

%

31-12-2011

%

31-12-2010

average 2012

%

Weeks

52

 

52

 

52

 

 

Currency

EUR

 

EUR

 

EUR

 

 

Intangible fixed assets

182

-

334

-

467

7,287

-97.50

Tangible fixed assets

415,145

-39.67

688,098

-13.50

795,459

214,380

93.65

Land & building

-

-

-

-

-

453,578

-

Plant & machinery

328,707

-27.82

455,406

-8.63

498,436

65,636

400

Furniture & Vehicles

64,400

-66.03

189,582

-19.27

234,830

20,201 10,383  218

Leasing & Other Similar Rights

-

-

-

-

-

19,808 20,160

-

Other tangible assets

22,038

-48.88

43,110

-30.68

62,193

14,744

49.47

Financial fixed assets

12,816

0.77

12,718

1.60

12,518

74,192

-82.73

Total fixed assets

428,143

-38.94

701,150

-13.27

808,444

264,379

61.94

Inventories

41,235,450

56.08

26,419,680

-10.83

29,627,720

3,965,901

939

Raw materials & consumables

-

-

-

-

-

338,110

-

Work in progress

0

-

0

-

0

3,788

-100

Finished goods

41,235,450

56.08

26,419,680

-10.83

29,627,720

1,675,797

2360

Other stocks

0

-

0

-

0

1,115,810

-100

Trade debtors

64,656,062

1.51

63,694,417

28.80

49,451,484

2,276,947

2739

Cash

1,599,593

56.36

1,023,044

1.33

1,009,662

174,048

819

other amounts receivable

33,579

15.47

29,081

29.66

22,429

80,779

-58.43

Miscellaneous current assets

30,970

9.29

28,337

-58.49

68,258

33,461

-7.44

Total current assets

107,555,654     17.94

91,194,559

13.74

80,179,553

5,360,449

1906

Total Assets

107,983,797     17.51

91,895,709

13.47

80,987,997

5,647,534 480,198

1812

 

 

Current Liabilities

Trade creditors

13,098,174

18.69   11,035,831  338

2,516,091

1,985,433

559

Short term group loans

-

-  -  -

-

-

-

Financial debts

50,676,984

36.86  37,028,666  -0.05

37,046,674

4,252,114 117,963

1091

Current portion of long term debt

-

-           -                       -

-

135,664 22,008

-

Amounts Payable for Taxes. Remuneration & Social Security

131,628

-1.59   133,750      41.50

94,523

13,724-

178

Miscellaneous current liabilities

515,219

19.13   432,487      8.69

397,894

108

--

Total current liabilities

64,422,005

32.47  48,630,734 21.41

40,055,182

3,779,000

1604

 

Long term debts and liabilities

 

 

 

Long Term Group loans

-

-         -                       -

-

-

-

Other Long Term Loans

13,099,581

4.42   12,544,575   3.27

12,146,927

830

--

Deferred Taxes

-

-             -                   -

-

4,048 4,048

-

Provision for Liabilities and Charges

0

- 0 -0 

11,290 0

-100

Other Long term Liabilities

0

0-1 0

80,479

-100

Total Long Term Debts

13,099,581

4.42   12,544,574    3.27

12,146,927

556,887

2252

 

shareholders equity

 

 

 

Issued Share Capital

10,566,155

-1.94  10,775,276    3.27

10,433,712

634,806

1564

Share Premium Account

-

-- -

-

185,110

-

Reserves

19,896,056

-0.25  19,945,125    8.68

18,352,176

603,038

3199

Revolution Reserve

-

-- -

-

506,674

-

Total Shareholders Equity

30,462,211

-0.84  30,720,401    6.72

28,785,888

1,259,834

2317

Working Capital

43,133,649

1.34   42,563,825    6.08

40,124,371

1,581,449

2627

Cash Flow

564,952

-54.92  1,253,325  51.66

826,427

43,388

1202

Net Worth

30,462,029

-0.84 30,720,067    6.72

28,785,421

1,252,547

2332

 

 

Ratio Analysis

 

Annual Accounts

31.12.2012

Change (%)

31.12.2011

Change (%)

31.12.2010

Industry Average 2012

%

Profit Before Tax

0.18

-67.27

0.55

71.88

0.32

-4,00

4.50

Return on capital employed

0.77

-66.38

2.29

95.73

1.17

24,00

-96.79

Return on total assets employed

0.31

-71.30

1.08

83.05

0.59

-73,00

0.42

Return on net assets employed

1.10

-65.94

3.23

94.58

1.66

41,00

-97.32

Sales / net working capital

4.30

1.65

4.23

12.80

3.75

41,00

-99

Stock turnover ratio

22.25

51.67

14.67

-25.57

19.71

55,00

-59.55

Debtor days

127.33

-1.36

129.09

7.49

120.10

116,81

9.01

Creditor days

26.06

14.60

22.74

264

6.24

94,33

-72.37

 

 

short term stability

 

 

 

Current ratio

1.67

-11.17

1.88

-6.00

2

269,00

67.00

Liquidity ratio / acid ratio

1.03

-22.56

1.33

5.56

1.26

269,00

-99

Current debt ratio

2.11

33.54

1.58

13.67

1.39

1,00

111

Liquidity ratio reprocessed

-

-

-

-

-

-

-

 

 

long term stability

 

 

 

 

Gearing

209.36

29.74

161.37

-5.57

170.89

174,00

20.32

Equity in percentage

28.21

-15.61

33.43

-5.94

35.54

-528,00

5.34

Total debt ratio

2.54

27.64

1.99

9.94

1.81

1,00

154

 

 

Industry comparison

 

Activity code                            32121

Activity description                  Preparation of diamonds

industry average credit

rating                                       78.30

Industry average credit

Limit                                        9475.63

 

 

Payment Information

 

Payment expectations

Payment expectation days      26.06

Day sales outstanding 127.33

 

 

Industry average payment

expectation days                     94.33

Industry average day sales

Outstanding                             116.81

 

Industry quartile analysis

Payment expectations

Company result                       26.06

Lower                                      130.12

Median                                    71.68

Upper                                       38.52

 

Days Sales Outstanding

Company result                       127.33

Lower                                      108.80

Median                                    58.97

Upper                                       20.53

 

 

Summary

 

Group - Number of Companies            2

Linkages - Number of Companies        2

Number of Countries                            1

 


 

Group Structure

 

Company name

 

Number

Latest Financial

ARODIAM MANUFACTURING COMPANY

NV434802993

31.12.2012

- AN TE DIAMOND (SHANGHAI ) LTD

 

 

 

 

 

Minority Shareholders

 

Business number

Company name

 

%

Date of accounts

862387507

AMC Belgium CVA

 

-

31/12/2013

416817611

Arodiam BVBA

 

7.91

31/12/2013

 

 

Minority Interests

 

No Minority Interests Found

 

 

Individual Shareholders

 

Shareholder Name

Forename                    David

Middle name               -

Surname                      Parnas

Shareholder Details

Start date                     28/04/2003

End date                      -

Percentage owned      0.39%

Shareholder Address

Street name                 Sint-Thomasstraat

House number             34

Minor town                  -

Postal town                  Antwerpen

Post code                     2018

Country                        Belgium

 

Shareholder Name

Forename                    Henri

Middle name               -

Surname                      Gutfreund

Shareholder Details

Start date                     28/04/2003

End date                      -

Percentage owned      35%

Shareholder Address

Street name                 Albertstraat

House number             38A1

Postal town                  Antwerpen

Post code                     2018

Country                        Belgium

 

Shareholder Name

Forename                    Shimson

Middle name               -

Surname                      Parnas

Shareholder Details

Start date                     28/04/2003

End date                      -

Percentage owned      26.69%

Shareholder Address

Country                        Israël

 

Shareholder Name

Forename                    Eddy

Middle name               -

Surname                      Vleeschdrager

Shareholder Details

Start date                     28/04/2003

End date                      -

Percentage owned      0.87%

 

Shareholder Name

Forename                    Lionel

Middle name               -

Surname                      Ngoc

Shareholder Details

Start date                     28/04/2003

End date                      -

Percentage owned      0.34%

 

 

Linked companies

 

Name

Number

Latest Key Financials

Turnover

Arodiam BVBA

416817611

31.12.2013

--

AMC Belgium CVA

862387507

31.12.2013

--

 

Summons

 

Legal event type          Social Security Summons

Event date                   25/11/2008

Court type                    Employment Court

Court name                  Antwerpen

 

Legal event type          Social Security Summons

Event date                   23/12/2008

Court type                    Employment Court

Court name                  Antwerpen

 

 

Current Director Details

 

Name               DAVID PARNAS

Position           Managing Director

Start Date        01/04/2014

Street               34 SINT-THOMASSTRAAT ANTWERPEN

Post code         2018

Country            Belgium

 

Position           Director

Start Date        25/06/2010

Street               34 SINT-THOMASSTRAAT ANTWERPEN

Post code         2018

Country            Belgium

 

Name               PETER DE DEYNE

position            Director

Start Date        01/07/2012

Street               43 ACHTERBIST NIJLEN

Post code         2560

Country            Belgium

 

Name               JOSEPH SAMUEL PARNAS

Position           Director

Start Date        15/02/2012

Street               8 RUBENSLEI ANTWERPEN

Post code         2018

Country            Belgium

 

Name               AMC BELGIUM CVA

Position           Director

Start Date        25/06/2010

Date of birth     23/12/2003

Street               78 PELIKAANSTRAAT ANTWERPEN

Post code         2018

Country            Belgium

 

Name               LIONEL NGOC MAI

Position           Director

Start Date        12/12/2003

Date of birth     25/05/1959

Street               27 EGLANTIERLAAN ANTWERPEN

Post code         2020

Country            Belgium

 

Name               JOSEPH PARNAS Show all 2 [+]

Position           Director

Start Date        15/02/2012

 

Position           Legal Representative

Start Date        01/04/2014

 

Former director details

Name               HENRI GUTFREUND

Position           Managing Director

Start Date        28/11/2008

End Date          01/04/2014

Street               38 ALBERTSTRAAT ANTWERPEN

Post code         2018

Country            Belgium

 

Position           Director

Start Date        12/12/2003

End Date          01/04/2014

Street               38 ALBERTSTRAAT ANTWERPEN

Post code         2018

Country            Belgium

 

 


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.60.81

UK Pound

1

Rs.100.06

Euro

1

Rs.78.47

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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%)

 

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