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Report No. : |
303795 |
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Report Date : |
23.01.2015 |
IDENTIFICATION DETAILS
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Name : |
NWJ FINE JEWELLERY (PTY) LTD |
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Formerly Known As : |
ROWMOOR INVESTMENTS 829 (PTY) LTD |
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Registered Office : |
12 Tetford Circle Millenium Bridge Business Park La Lucia
Kwazulu-Nata, P O Box 202, Umhlanga
Rocks 4320 |
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Country : |
South Africa |
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Date of Incorporation : |
19.11.2007 |
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Com. Reg. No.: |
2007/033055/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Wholesalers, retailers and manufacturers of jewellery and the subject
also undertakes diamond cutting. |
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No. of Employees : |
170 having increased from 80 |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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South Africa |
A2 |
A2 |
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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 |
SOUTH AFRICA - ECONOMIC
OVERVIEW
South Africa is a
middle-income, emerging market with an abundant supply of natural resources; well-developed
financial, legal, communications, energy, and transport sectors and a stock
exchange that is the 16th largest in the world. Even though the country's
modern infrastructure supports a relatively efficient distribution of goods to
major urban centers throughout the region, unstable electricity supplies retard
growth. The global financial crisis reduced commodity prices and world demand.
GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with
2014 growth projected at about 2%. Unemployment, poverty, and inequality -
among the highest in the world - remain a challenge. Official unemployment is
at nearly 25% of the work force, and runs significantly higher among black
youth. Eskom, the state-run power company, has built two new power stations and
installed new power demand management programs to improve power grid
reliability. Construction delays at two additional plants, however, mean South
Africa is operating on a razor thin margin; economists judge that growth cannot
exceed 3% until those plants come on line. South Africa's economic policy has
focused on controlling inflation, however, the country has had significant
budget deficits that restrict its ability to deal with pressing economic
problems. The current government faces growing pressure from special interest
groups to use state-owned enterprises to deliver basic services to low-income
areas and to increase job growth.
|
Source
: CIA |
NWJ FINE JEWELLERY
(PTY) LTD
Formerly: ROWMOOR
INVESTMENTS 829 (PTY) LTD, the name having been changed on 1 August 2008
TRADING NAME: N W J
PHYSICAL ADDRESS: 12 Tetford Circle
Millenium Bridge
Business Park
LA LUCIA
Kwazulu-Natal
UMHLANGA ROCKS
4320
TELEPHONE NUMBER: +27 31 570 5000
FAX NUMBER: +27 31 570 5055
100% TASTE
HOLDINGS (PTY) LTD
None
D J CROSSON ID
No. 6603055141084
C F GONZAGA ID
No. 7402075078080
FIRST NATIONAL BANK, Greenstone Branch, Gauteng. It was stated that the
subject is managed by a cash management scheme controlled by the holding
company.
19 November 2007
Registration Certificate Number: 2007/033055/07
The subject took over the assets and operations of the company named
NWJ-QUALITY JEWELLERS (PTY) LTD, which ceased its operation and became dormant
in 2010. Messrs RABINOWITZ and BUXTON
were previously involved in the latter company.
4960249284
9280697161
Wholesalers, retailers and manufacturers of jewellery and the subject
also undertakes diamond cutting.
Previously, we have
divulged the names of the major suppliers in our reports. We have discontinued this practice to protect
our valuable sources of trade information.
This has become necessary because we now give a description of the goods
or services to which the trade references relate. This gives our client the ability to assess
whether the purchases are vital to the
subject’s operation and whether we have only been given their essential
suppliers that must be paid promptly for the subject to maintain its operation.
Retailers and the general public
South Africa
None
170 having increased from 80 reported in March 2010
The subject is reported to have 12-15 stores and approximately 43 franchise
stores having reduced from 68 reported in 2010.
The store premises are reported to be leased
and the head office premises owned by the family trust in the Rabinowitz family, valued at over R7
000 000, bonded.
R1 000 divided into 1 000 ordinary shares of R1
each
R10
Full financial information was not
forthcoming from respondents at the subject and outside authorities were unable
to assist in this regard.
BDO SPENCER STEWARD, Durban +27 31 201 3100
FEBRUARY
BAY UNION INSURANCE BROKERS
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1989 R 100 000 R 50 000 30
days 30 days Very Good
2. 1990 R1
000 000 R 500 000- 30
days 30 days Excellent
c/l R1 000 000
3. 1990 declined declined 30
days 30 days Excellent
4. 1984 R2
000 000 R 400 000 30
days 30 days Very Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. ±15 years open
acc R1 000 000+ 30 days 30
days Excellent
2. Do not give trade references.
3. ±10
years declined declined 60
days 60 days Very Good
4. ±9 years open
acc R 150 000 30
days 30 days Very Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.
Do not give trade references
2.
New acc R500
000 R400 000 30/60 days 30/60 days Very
Good
3.
New acc large R500 000 30 days 30 days Very Good
4.
Do not give trade references
The suppliers have dealt with the previous
company for 20 years.
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Do not give trade references
2. 2007 fluctuates R500 000 30
days 30 days Very Good
3. 2008 R200
000 R100 000 - 30 days 30
days Very Good
R200
000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1997 R 500 000± R200
000- 30 days 30 days Very Good
R250
000
2. 10+ years R1
000 000 R400 000 30 days 30 days Excellent
c/l
3.
Do not give trade references
4.
Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old R1 000 000 R350 000± 30 days 30 days Very Good
2. 12 years declined R250 000 30 days 30 days Very Good
3.
Do not give trade references
4.
Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1997 Open R350 000 30 days 30
days Very Good
2. 20 years Open Figures 90 days 90 days Very Good
Millions
3. Old Declined Declined 30
days 30 days Very Good
(These descriptions relate
respectively by number to the above current trade transactions):
1. Jewellery
2. Diamonds
3. Watches
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. ±20 years Open Figures 90 days 90 days Very Good
Millions
2. Do not give trade references
3. 1997 Open R350 000- 30 days 30
days Very Good
R900
000
(These descriptions
relate respectively by number to the above current trade transactions):
1. Diamonds
2. Jewellery
3. Jewellery
This is an established business meeting its
commitments timeously. The lack of financial information should be borne in
mind.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.69 |
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|
1 |
Rs.93.33 |
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Euro |
1 |
Rs.71.49 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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.