MIRA INFORM REPORT
|
Report No. : |
315578 |
|
Report Date : |
31.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
RARE GEMS BVBA |
|
|
|
|
Registered Office : |
Hoveniersstraat 30-Bus 169 2018 Antwerpen |
|
|
|
|
Country : |
Belgium |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
17.11.1994 |
|
|
|
|
Com. Reg. No.: |
453786289 |
|
|
|
|
Legal Form : |
Private Limited Company (BL/LX) |
|
|
|
|
Line of Business : |
Wholesale of diamonds and other precious stones. |
|
|
|
|
No. of Employee : |
1 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Belgium |
A2 |
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 453786289
Branche
Unit Number 2069128279
Company
name RARE GEMS BVBA
Address
HOVENIERSSTRAAT 30-BUS 169
2018 ANTWERPEN
Number
of staff 1
Date
of establishment 17/11/1994
Telephone
number 032273520
Fax
number 032312478
Commentary
The business was established over 20 years ago.
The business has 1 employees.
The business is part of a group.
The business has been at the address for over 10 years.
Operating Result in the latest trading period increased 30% on the previous trading period.
Pre-tax profits increased by 505% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 21% during the latest trading period.
Turnover in the latest trading period decreased 22% on the previous trading period.
Accounts
|
DATE
OF LATEST ACCOUNTS |
TURNOVER |
PROFIT
BEFORE TAX |
NET WORTH |
WORKING
CAPITAL |
|
31/12/2013 |
16,546,582 |
40,118 |
1,944,998 |
3,614,619 |
|
31/12/2012 |
21,340,600 |
6,621 |
1,992,083 |
3,725,043 |
|
31/12/2011 |
|
81,988 |
2,024,025 |
3,031,495 |
|
ACCOUNTS |
|
|
|
|
|
DATE
OF LATEST ACCOUNTS |
BALANCE
TOTAL |
NUMBER
OF EMPLOYEES |
CAPITAL |
CASHFLOW |
|
31/12/2013 |
12,539,296 |
1 |
1,469,778 |
77,377 |
|
31/12/2012 |
10,799,066 |
1 |
1,536,263 |
49,541 |
|
31/12/2011 |
13,303,588 |
1 |
1,566,668 |
110,970 |
Trends
Profitability
Liquidity
Net worth
Payment
expectations
|
Past payments |
|
Payment expectation days |
111.26 |
|
Industry average payment |
126.75 |
Industry average day sales |
186.10 |
|
expectation days |
|
outstanding |
|
|
Day sales outstanding |
211.40 |
|
|
Court data
summary
BANKRUPTCY
DETAILS
Court action type No
PROTESTED
BILLS
Bill amount -
NSSO DETAILS
Date of summons -
Company information
|
Business number |
453786289 |
Company name |
RARE GEMS BVBA |
|
Fax number |
032312478 |
Date founded |
17/11/1994 |
|
Company status |
active |
Company type |
Private Limited Company |
|
|
|
|
(BL/LX) |
|
Currency |
Euro (€) |
Date of latest accounts |
31/12/2013 |
|
Activity code |
46761 |
Liable for VAT |
yes |
|
Activity description |
Wholesale of diamonds and |
VAT Number |
BE.0453.786.289 Check VAT |
|
|
other precious stones |
|
number |
|
Belgian Bullettin of Acts |
moniteur belge |
|
|
Contractor details
|
Registered contractor |
- |
|
number |
|
|
Contractor description |
- |
|
Date struck off register |
|
PERSONNEL (NSSO CLASSIFICATION)
|
Code |
- |
|
Description |
- |
JOINT INDUSTRIAL COMMITTEE (JIC)
Significant Events
|
Event Date |
18/12/2008 |
|
Event Description |
|
|
Event Details |
Als vergoeding voor de kapitaal
inbreng, worden 794 nieuwe volledig
afbetaalde aandelen toegekend |
|
|
aan de vennootschap Sanghavi Diamonds
Private Limited. |
Company
accounts
ASSETS
|
Annual accounts |
31-12-2013 |
% |
31-12-2012 |
% |
31-12-2011 |
% |
31-12-2010 |
% |
31-12-2009 |
|
Weeks |
52 |
|
52 |
|
52 |
|
52 |
|
52 |
|
Currency |
EUR |
|
EUR |
|
EUR |
|
EUR |
|
EUR |
|
Total fixed assets |
229,921 |
-17.84 |
279,858 |
4.15 |
268,699 |
-7.96 |
291,938 |
0.14 |
291,520 |
|
Intangible fixed assets |
0 |
- |
0 |
- |
0 |
- |
0 |
- |
0 |
|
Tangible fixed assets |
229,842 |
-17.85 |
279,775 |
4.16 |
268,614 |
-7.96 |
291,857 |
0.14 |
291,445 |
|
Land & building |
187,632 |
-10.95 |
210,711 |
-8.29 |
229,762 |
-3.01 |
236,888 |
3.32 |
229,267 |
|
Plant & machinery |
1,165 |
-28.66 |
1,633 |
-31.67 |
2,390 |
-20.78 |
3,017 |
- |
- |
|
Furniture & Vehicles |
41,046 |
-39.13 |
67,431 |
84.94 |
36,462 |
-29.82 |
51,952 |
-16.44 |
62,177 |
|
Leasing & Other Similar Rights |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Other tangible assets |
-1 |
- |
0 |
- |
0 |
- |
0 |
-100 |
1 |
|
Financial fixed assets |
79 |
-4.82 |
83 |
-1.19 |
84 |
2.44 |
82 |
7.89 |
76 |
|
Total current assets |
12,309,375 |
17.02 |
10,519,208 |
-19.30 |
13,034,889 |
-15.01 |
15,336,327 |
41.42 |
10,844,443 |
|
Inventories |
2,679,162 |
15.52 |
2,319,173 |
-28.01 |
3,221,611 |
-15.06 |
3,792,766 |
40.75 |
2,694,741 |
|
Raw materials & consumables |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Work in progress |
0 |
- |
0 |
- |
0 |
- |
0 |
- |
0 |
|
Finished goods |
2,679,162 |
15.52 |
2,319,173 |
-28.01 |
3,221,611 |
-15.06 |
3,792,766 |
40.75 |
2,694,741 |
|
Other stocks |
0 |
- |
0 |
- |
0 |
- |
0 |
- |
0 |
|
Trade debtors |
9,583,614 |
17.82 |
8,134,327 |
-16.71 |
9,765,896 |
-15.17 |
11,512,072 |
50.75 |
7,636,374 |
|
Other amounts receivable |
1,513 |
-85.10 |
10,156 |
208 |
3,291 |
-9.71 |
3,645 |
-30.93 |
5,277 |
|
Cash |
38,346 |
-21.43 |
48,803 |
28.79 |
37,894 |
75.07 |
21,645 |
-95.69 |
501,852 |
|
Miscellaneous current assets |
6,740 |
-0.13 |
6,749 |
8.91 |
6,197 |
-0.02 |
6,198 |
-0.02 |
6,199 |
|
Total Assets |
12,539,296 |
16.11 |
10,799,066 |
-18.83 |
13,303,588 |
-14.87 |
15,628,265 |
40.34 |
11,135,963 |
LIABILITIES
|
Total shareholders equity |
1,944,998 |
-2.36 |
1,992,083 |
-1.58 |
2,024,025 |
7.34 |
1,885,585 |
13.17 |
1,666,170 |
|
Issued share capital |
1,469,778 |
-4.33 |
1,536,263 |
-1.94 |
1,566,668 |
3.27 |
1,517,007 |
7.81 |
1,407,143 |
|
Share premium account |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Revaluation reserve |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Reserves |
475,220 |
4.26 |
455,820 |
-0.34 |
457,357 |
24.09 |
368,578 |
42.29 |
259,027 |
|
Provisions for Liabilities & |
0 |
- |
0 |
- |
0 |
- |
0 |
- |
0 |
|
Charges |
|
|
|
|
|
|
|
|
|
|
Deffered taxes |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Creditors |
10,594,298 |
20.29 |
8,806,984 |
-21.92 |
11,279,563 |
-17.92 |
13,742,680 |
45.12 |
9,469,793 |
|
Other long term loans |
1,899,542 |
-5.63 |
2,012,819 |
57.72 |
1,276,169 |
-0.32 |
1,280,267 |
-4.49 |
1,340,418 |
|
Long term group loans |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Other long term liabilities |
0 |
0 |
-1 |
- |
0 |
- |
0 |
- |
0 |
|
Total long term debts |
1,899,542 |
-5.63 |
2,012,818 |
57.72 |
1,276,169 |
-0.32 |
1,280,267 |
-4.49 |
1,340,418 |
|
Current portion of long term debt |
25,909 |
1.26 |
25,587 |
40.11 |
18,262 |
20.74 |
15,125 |
-7.96 |
16,433 |
|
Financial debts |
3,640,716 |
-16.58 |
4,364,518 |
167 |
1,632,722 |
-63.36 |
4,455,897 |
38.60 |
3,214,835 |
|
Trade creditors |
4,942,210 |
108 |
2,366,512 |
-71.41 |
8,276,377 |
4.16 |
7,945,882 |
64.59 |
4,827,606 |
|
Amounts Payable for Taxes, |
29,636 |
36.40 |
21,727 |
33.21 |
16,310 |
-1.43 |
16,547 |
16.54 |
14,199 |
|
Remuneration & Social Security |
|
|
|
|
|
|
|
|
|
|
Miscellaneous current liabilities |
56,285 |
255 |
15,821 |
-73.51 |
59,723 |
106 |
28,962 |
-48.56 |
56,302 |
|
Total current liabilities |
8,694,756 |
27.97 |
6,794,165 |
-32.08 |
10,003,394 |
-19.73 |
12,462,413 |
53.30 |
8,129,375 |
|
Total Liabilities |
12,539,296 |
16.11 |
10,799,066 |
-18.83 |
13,303,588 |
-14.87 |
15,628,265 |
40.34 |
11,135,963 |
RATIO ANALYSIS
|
TRADING
PERFORMANCE |
|||||||||
|
Profit Before Tax |
0.24 |
700 |
0.03 |
- |
- |
- |
0.26 |
-23.53 |
0.34 |
|
Return on capital employed |
1.04 |
511 |
0.17 |
-93.15 |
2.48 |
-14.19 |
2.89 |
18.93 |
2.43 |
|
Return on total assets employed |
0.32 |
433 |
0.06 |
-90.32 |
0.62 |
6.90 |
0.58 |
-12.12 |
0.66 |
|
Return on net assets employed |
2.06 |
524 |
0.33 |
-91.85 |
4.05 |
-16.49 |
4.85 |
10.73 |
4.38 |
|
Sales / net working capital |
4.58 |
-20.07 |
5.73 |
- |
- |
- |
12.23 |
52.88 |
8.00 |
|
Stock turnover ratio |
16.19 |
48.94 |
10.87 |
- |
- |
- |
10.79 |
-13.05 |
12.41 |
|
Creditor days |
111.26 |
171 |
40.97 |
- |
- |
- |
83.50 |
1.19 |
82.52 |
|
Debtor days |
211.40 |
51.94 |
139.13 |
- |
- |
- |
119.56 |
-6.88 |
128.39 |
|
SHORT
TERM STABILITY |
|||||||||
|
Current ratio |
1.42 |
-8.39 |
1.55 |
19.23 |
1.30 |
5.69 |
1.23 |
-7.52 |
1.33 |
|
Liquidity ratio / acid ratio |
1.11 |
-8.26 |
1.21 |
23.47 |
0.98 |
5.38 |
0.93 |
-7.00 |
1.00 |
|
Current debt ratio |
4.47 |
31.09 |
3.41 |
-30.97 |
4.94 |
-25.26 |
6.61 |
35.45 |
4.88 |
|
Liquidity ratio reprocessed |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Cashflow |
77,377 |
56.19 |
49,541 |
-55.36 |
110,970 |
-9.06 |
122,023 |
38.61 |
88,036 |
|
Net worth |
1,944,998 |
-2.36 |
1,992,083 |
-1.58 |
2,024,025 |
7.34 |
1,885,585 |
13.17 |
1,666,170 |
|
LONG
TERM STABILITY |
|||||||||
|
Gearing |
286.18 |
-10.96 |
321.42 |
122 |
144.62 |
-52.59 |
305.01 |
11.16 |
274.38 |
|
Equity in percentage |
15.51 |
-15.93 |
18.45 |
21.30 |
15.21 |
26.01 |
12.07 |
-19.32 |
14.96 |
|
Total debt ratio |
5.45 |
23.30 |
4.42 |
-20.65 |
5.57 |
-23.59 |
7.29 |
28.35 |
5.68 |
|
Working capital |
3,614,619 |
-2.96 |
3,725,043 |
22.88 |
3,031,495 |
5.48 |
2,873,914 |
5.85 |
2,715,068 |
PROFIT & LOSS
|
Operating Income |
16,547,104 |
-22.51 |
21,353,088 |
-41.58 |
36,554,050 |
4.00 |
35,149,748 |
61.82 |
21,721,667 |
|
Turnover |
16,546,582 |
-22.46 |
21,340,600 |
- |
- |
- |
35,143,973 |
61.88 |
21,709,934 |
|
Total operating expenses |
16,213,902 |
-23.10 |
21,085,386 |
- |
- |
- |
34,733,981 |
62.67 |
21,352,830 |
|
Gross Operating Margin |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Operating Charges |
16,214,424 |
-23.15 |
21,097,875 |
-41.68 |
36,178,914 |
4.14 |
34,739,756 |
62.60 |
21,364,562 |
|
Employee costs |
61,627 |
-8.03 |
67,007 |
5.07 |
63,774 |
15.99 |
54,984 |
-31.27 |
80,000 |
|
Wages and salary |
49,641 |
-8.68 |
54,357 |
3.76 |
52,386 |
17.71 |
44,504 |
-28.08 |
61,878 |
|
Employee pension costs |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Social security contributions |
11,456 |
-6.24 |
12,219 |
9.10 |
11,200 |
8.59 |
10,314 |
-42.66 |
17,989 |
|
Other employee costs |
530 |
23.26 |
430 |
129 |
187 |
13.33 |
165 |
24.06 |
133 |
|
Director remuneration |
55,773 |
-25.79 |
75,160 |
-6.38 |
80,285 |
12.39 |
71,436 |
- |
- |
|
Amortization and depreciation |
38,249 |
-9.37 |
42,202 |
23.19 |
34,257 |
4.78 |
32,695 |
44.37 |
22,647 |
|
Operating result |
332,680 |
30.35 |
255,214 |
-31.97 |
375,136 |
-8.50 |
409,992 |
14.81 |
357,104 |
|
Total financial income |
345 |
-96.66 |
10,342 |
1483 |
653 |
-47.68 |
1,248 |
60.0 |
780 |
|
Total financial expenses |
292,907 |
13.12 |
258,935 |
-11.87 |
293,800 |
-8.15 |
319,873 |
12.29 |
284,855 |
|
Results on ordinary operations |
40,118 |
505 |
6,621 |
-91.92 |
81,988 |
-10.27 |
91,367 |
25.11 |
73,030 |
|
before taxation |
|
|
|
|
|
|
|
|
|
|
Extraordinary Income |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Extraordinary Charges |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Extraordinary items |
0 |
- |
0 |
- |
0 |
- |
0 |
- |
0 |
|
Results for the Year Before |
40,118 |
505 |
6,621 |
-91.92 |
81,988 |
-10.27 |
91,367 |
25.11 |
73,030 |
|
Taxation |
|
|
|
|
|
|
|
|
|
|
Other appropriations |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Taxation |
990 |
137 |
-718 |
-113 |
5,276 |
158 |
2,039 |
-73.32 |
7,641 |
|
Results on ordinary operations |
39,128 |
433 |
7,339 |
-90.43 |
76,712 |
-14.12 |
89,328 |
36.61 |
65,389 |
|
after taxation |
|
|
|
|
|
|
|
|
|
|
Net result |
39,128 |
433 |
7,339 |
-90.43 |
76,713 |
-14.12 |
89,328 |
36.61 |
65,389 |
|
Profit (Loss) for the Year to be
appropiated |
39,128 |
433 |
7,339 |
-90.43 |
76,713 |
-14.12 |
89,328 |
36.61 |
65,389 |
|
Dividends |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Social Balance Sheet Details
|
Social
Balance Sheet Details |
|
|
Social Balance Sheet |
Total |
|
During the reporting year |
|
|
ended 31-12-2013 |
|
|
Full-time Employees |
1 |
|
Part-time Employees |
1 |
|
Total Fte Employees |
2 |
|
Number of hours worked |
|
|
Full-time Employees |
1,867 |
|
Part-time Employees |
344 |
|
Total |
2,211 |
|
Personnel Charges |
|
|
Full-time Employees |
- |
|
Part-time Employees |
- |
|
Total |
61,627 |
|
Benefits In Addition To Wages |
- |
|
During the previous reporting year |
|
|
Average number employees in Fte |
2 |
|
Actual working hours |
2,597 |
|
Personnel Charges |
64,107 |
|
Benefits In Addition To Wages |
- |
|
Type of
Contract |
Full-Time |
Part-Time |
Total
Fte |
|
Unlimited Duration |
1 |
1 |
2 |
|
Contracts |
|
|
|
|
Limited Duration Contracts |
- |
- |
- |
|
Contracts For Specific Work |
- |
- |
- |
|
Contracts Regarding |
- |
- |
- |
|
Substitution |
|
|
|
|
Gender
and Education Level |
|
|
|
|
Men |
Full-Time |
Part-Time |
Total Fte |
|
Primary education |
- |
- |
- |
|
Secondairy education |
- |
- |
- |
|
Higher education (non university) |
1 |
- |
1 |
|
Higher education (university) |
- |
- |
- |
|
|
|
|
|
|
Women |
Full-Time |
Part-Time |
Total Fte |
|
Primary education |
- |
- |
- |
|
Secondairy education |
- |
1 |
1 |
|
Higher education (non university) |
- |
- |
- |
|
Higher education (university) |
- |
- |
- |
|
Working
Category |
Full-Time |
Part-Time |
Total Fte |
|
Management |
- |
- |
- |
|
White collar worker |
1 |
1 |
2 |
|
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 |
- |
- |
- |
|
Leavers |
- |
- |
- |
|
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 |
- |
- |
INDUSTRY
COMPARISON
Activity
code 46761
Activity
description Wholesale of diamonds and
other precious stones
industry
average credit
rating 64.48
Industry
average credit limit 140177.31
Payment
Information
SUSPENSION
OF PAYMENTS / MORATORIUM HISTORY
Amount
-
Details
–
PAYMENT
EXPECTATIONS
Payment
expectation days 111.26
Day
sales outstanding 211.40
INDUSTRY
COMPARISON
Activity
code 46761
Activity
description Wholesale of diamonds and
other precious stones
Industry
average payment
expectation
days 126.75
Industry
average day sales
Outstanding 186.10
INDUSTRY
QUARTILE ANALYSIS
Payment
expectations
Company
result 111.26
Lower
120.34
Median
74.93
Upper
46.53
DAY
SALES OUTSTANDING
Company
result 211.40
Lower
102.27
Median
53.69
Upper
24.18
Shareholder
Details
SUMMARY
Group - Number of Companies 2
Linkages - Number of Companies 0
Number of Countries 0
MINORITY
SHAREHOLDERS
No minority shareholders found
MINORITY
INTERESTS
No minority interests found
COMPANIES THAT
MATCH THIS ADDRESS
No Companies Match this address
Linked
Companies
SUMMARY
Group - Number of Companies 2
Linkages - Number of Companies 0
Number of Countries 0
SUMMONS
There is no data for this company
PROTESTED
BILLS
There is no data for this company
BANKRUPTCY AND
OTHER LEGAL EVENTS
There is no data for this company
DIRECTOR DETAILS
Current director
details
|
Name |
SANGHAVI DIAMONDS PRIVATE LIMITED
SOC. ETRANGERE |
|
Position |
Principal Manager |
|
Start Date |
01/01/2015 |
|
Date of birth |
01/01/2015 |
|
Street |
0 ONBEKEND BELGISCH ADRES ONBEKEND |
|
Post code |
0000 |
|
Country |
Belgium |
Former director details
|
Name |
KINJALKUMAR VASANTLAL CHOKSI |
|
Position |
Principal Manager |
|
Start Date |
01/07/2009 |
|
End Date |
31/05/2013 |
|
Street |
30 VAN EYCKLEI ANTWERPEN |
|
Post code |
2018 |
|
Country |
Belgium |
|
Name |
SAMIR HASMUKH SHETH |
|
Position |
Principal Manager |
|
Start Date |
17/06/1997 |
|
End Date |
31/12/2014 |
|
Street |
SURAT |
|
Post code |
|
|
Country |
India |
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.62.59 |
|
|
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.