MIRA INFORM REPORT

 

 

Report No. :

330954

Report Date :

14.07.2015

 

IDENTIFICATION DETAILS

 

Name :

ADORA DIAMONDS PTY LTD

 

 

Registered Office :

Level 7, Suite 8, 141 Queen St, Brisbane, QLD 4000

 

 

Country :

Australia

 

 

Date of Incorporation :

20.02.2012

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is engaged in wholesale distribution of a range of lose diamonds and jewellery

 

 

No. of Employee :

4

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

AUSTRALIA - ECONOMIC OVERVIEW

 

Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2015 facing a range of growth constraints, principally driven by a sharp fall in global prices of key export commodities. Although demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports, sharp drops in current prices have already impacted growth. The services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, although this trend could reverse or slow due to falling global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia entered into free trade agreements (FTAs) with the Republic of Korea and Japan, and concluded an FTA with China, in 2014, adding to existing FTAs with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, and a regional FTA with ASEAN and New Zealand. Australia continues to negotiate bilateral agreements with India and Indonesia, as well as larger agreements with its Pacific neighbors and the Gulf Cooperation Council countries, and an Asia-wide Regional Comprehensive Economic Partnership that includes the ten ASEAN countries and China, Japan, Korea, New Zealand and India. Australia is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

 

Source : CIA

 

Company  name                                                          

 

ADORA DIAMONDS PTY LTD

 

Summary Panel

Established

2014

 

Incorporated

2012

 

Line of Business

Distribution of diamonds and jewellery

Status

Trading

Chief Executive Officer

 

Adverse Listings

Nil

 

Rating

NA

 

 

 

EXECUTIVE SUMMARY

 

The subject was formed to restructure the assets and operations of an existing business effective from 1 July 2014.

 

For the last financial year ended 30 June 2015 the subject recorded revenue of $5,000,000 which resulted in a Gross Profit of $400,000.

 

Improved profitability is expected for the current financial year ending 30 June 2016.

 

The subject maintains no overdraft facilities or external borrowings as all operations are funded through the internal cashflows of the company. 

 

 

CORPORATE SEARCH

 

Status Registered

 

Incorporation Date 20 Feb 2012

 

Incorporation State QLD

 

Registered Office LEVEL 1 CARTHILLS

CHARTERED ACCOUNTANTS,

2072 LOGAN ROAD UPPER

MOUNT GRAVATT QLD, 4122

 

Current Directors Total: 1

Director Name AGARWAL, MANISH

Appointment Date 20 Feb 2012

Date of Birth 14 Jul 1972

Place of Birth CALCUTTA INDIA

Gender MALE

Veda File Number 245035303

Resident Overseas N

Address 50 FLAME TREE CRS,

CARINDALE QLD 4152

Document Number 7E6839185

 

Company Shares Total: 1 Amount: $1

Class ORDINARY SHARES [ORD]

Number of Shares Issued 1

Paid Capital $1.00

Total Amount Due and Payable $0.00

Document Number 1E8121797

 

Current Shareholders

Shareholder Name AGARWAL, MANISH

Address 50 FLAME TREE CRESCENT

CARINDALE QLD, 4152

Class ORD

Number Held 1

Beneficially Held Y

Fully Paid Y

Jointly Held N

Document Number 7E6839185

 

 

SECURITY INTERESTS  

 

Effective 30 January 2012 the Personal Property Securities Register (PPSR)  was introduced to give the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

 

As a result of PPS Reform a number of existing Commonwealth, State and Territory personal property security registers will close. Interests registered on existing security interest registers will be migrated to the national PPS Register. Subsequently Registered Charges are no longer lodged with the Australian Securities and Investments Commission (ASIC).

 

Please contact us should you require a search of the PPSR.

 

 


BUSINESS STRUCTURE

 

TRADING ADDRESS     Level 7, Suite 8, 141 Queen St

                                    BRISBANE, QLD 4000                          

 

TELEPHONE                 (617) 3003 1788

 

FACSIMILE                   (617) 3003 1799

 

WEBSITE                      www.adoradiamonds.com.au

 

EMAIL                          info@adoradiamonds.com.au               

 

BANK                           SUNCORP

                                               

EMPLOYEES                4         

 

 

BACKGROUND

 

The subject was incorporated in Queensland on 20 February 2012 under the current style.

 

The subject was formed to restructure the assets and operations of an existing business that was established for 15 years. The restructure was effective from 1 July 2014.

 

 

OPERATIONS

 

The subject operates in the wholesale distribution of a range of lose diamonds and jewellery.

 

Activities are conducted from premises located at the above listed trading address.

 

 

ADVERSE

                                               

A search of of on 7 July 2015 failed to trace any litigation listed against the subject at that date.

 

 


FINANCES

 

 

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

 

During the current interview conducted with Director Manish Agarwal he advised that the subject was formed to restructure the assets and operations of an existing business effective from 1 July 2014.

 

For the last financial year ended 30 June 2015 the subject recorded revenue of $5,000,000 which resulted in a Gross Profit of $400,000.

 

The subject recorded reduced margins during the last financial year as a result of restructuring expenses, Improved profitability is expected for the current financial year ending 30 June 2016.

 

Current assets include stock on hand of $3,000,000 and receivables of $1,200,000.

 

The subject maintains no overdraft facilities or external borrowings as all operations are funded through the internal cashflows of the company. 

 

Current liabilities include creditors of $850,000

 

 

TRADE SURVEY

 

The subject imports all requirements and is not a seeker of domestic credit.

 

 

A trade survey on the subject was subsequently unable to be conducted.

 

 

 

 


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.63.47

UK Pound

1

Rs.98.47

Euro

1

Rs.70.69

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.