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Report No. : |
330397 |
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Report Date : |
13.07.2015 |
IDENTIFICATION DETAILS
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Name : |
BROWNS THE DIAMOND STORE (PTY) LTD |
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Registered Office : |
105 Conrad Drive, Blairgowrie,
Randburg, Gauteng |
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Country : |
South Africa |
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Year of Establishment: |
2003 |
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Com. Reg. No.: |
2013/073395/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Subject is manufacturers and general trading
of all aspects of jewellery |
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No. of Employee : |
310+ |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved. South Africa's economic policy has focused on controlling inflation, however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job
|
Source
: CIA |
BROWNS THE DIAMOND STORE (PTY) LTD
Formerly: CHAR-TRADE 255 CC, the name having
been changed on 30 May 2003.
105 Conrad Drive
BLAIRGOWRIE
Randburg
Gauteng
P O Box 782992
SANDTON
2146
+27 11 438 7920
+27 11 250 2001
The subject moved from 229 Oxford Road,
Dunkeld, Johannesburg in 2011
60% L A BROWN ID
No. 6411065012083
40% G W BROWN (Brother) ID No. 6811215022082
Details not
provided.
L A BROWN ID No. 6411065012083
B L BROWN ID
No. 7408080009085
L S M MAMABOLO ID
No. 8605085609087
NEDBANK CENTRAL BUSINESS, Johannesburg Branch.
Account number: 1284085775. It was
stated that the subject does enjoy overdraft facilities, the extent of which
was not known to the respondents at the company. It was stated that monies are
transferred from their call account to the business account as and when
needed. Utilisation of the overdraft is
occasional.
29 April 2013
Registration Certificate Number 2013/073395/07
BROWNS THE DIAMOND STRORE (Registration
Certificate Number 2002/080356/23) was established in 2003 utilising a shelf
company styled CHAR-TRADE 255 CC for registration purposes. In May 2003 the
name was changed to the current name. In April 2013 the subject converted to a
Private Company.
The Browns legacy dates back to 1934 when it
was started by Jack Brown the late grandfather or L A BROWN and G W BROWN. The
two brother joined the family business in the 1990’s. Further details regarding
the entity type prior to 2003 were unconfirmed. The current directors took over
the company in 2003.
It was stated that the directors were
previously involved in another company, HYPERGOLD JEWELLERS (PTY) LTD
(Registration Certificate Number 1997/015117/07).
4820207076
9039824157
Non-compliant
Manufacturers and general trading of all
aspects of jewellery.
The subject is reported to import worldwide
and deals locally with:
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.
General public
South Africa
None
310+
The subject is reported to have 33 branches
countrywide.
The head office premises are reported to be owned
by the associate property company and the premises 229 Oxford Road, Dunkeld,
Johannesburg is also owned by the property owning company valued in the region
of R3 700 000 bonded for a small amount.
R100
The following estimated financial situation
was submitted as at 10 July 2015:
STOCK R 10 000 000+
DEBTORS R 15 000 000+
CREDITORS R 5 000 000+
LOANS None
TURNOVER per annum R200 000 000+
R W F C FINANCIAL CONSULTANTS INC, Houghton
(+27 11 483 3333)
FEBRUARY
SANTAM
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 4 years R150 000 R150 000 30 days 30 days Good
2. 1 year R
10 000 R 5 000- 30
days 45 days Slow
R 8 000
3. 2 years R 30 000 R 15 000 30
days 30 days Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 8
years R 30 000 R 5 000 60
days 60 days Very good
2. 2
years R 30 000 R
10 000 30 days 60 days Slow
3. 4
years R 80 000 R
20 000 30 days 30 days Good
4. 3
years R500 000 R300 000 30
days 30 days Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old
acc open acc R 90 000 30 days 30
days Very good
2. 3
years open acc R
25 000 30 days 30 days Very
good
3. 6
years open acc R100 000 30
days 30 days Very good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old
acc R300 000 R200 000- 30 days 30 days Very
Good
R300
000
2. Old
acc R 300 R 300 30
days 30 days Good
3. 6
years R 25 000 R
25 000 30 days 30 days Good
EFT
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10
years R200 000 R100 000 30
days 30 days Excellent
2. Do
not give trade references.
2. Few
years R 50 000 R 30 000- 30
days 30 days Excellent
R 50 000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15 years ±R200
000 ±R50 000 30 days 30 days Very Good
2. Purchases very sporadic.
3.
Haven’t traded in the last year.
4.
Do not give trade references.
5.
11 years ±R50
000
R20 000- 30 days 30 days Very
Good
R30 000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10 years+ open
acc ±R10 000- 30 days 30 days Very Good
R 50 000
2. Do not trade
3.
Do not give trade references.
4.
5 years+ open
acc R500 000- 30 days 30 days Very Good
R600
000
5.
6 months declined declined 30
days 30 days Average
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old declined declined 30
days 30 days Very Good
2. 5 years open declined 30 days 30 days Good
3. 2 years declined declined 30
days 30 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Do not
give trade references
2. +10
Years Open R10 000 30
days 30 days Good
3. +8 Years Open Declined 30 days 30
days Very good
4. 5 Years Open Declined 30 days 30
days Excellent
5. Have not
dealt with them for over a year
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT
EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 2001 Declined
R180 000 30 days 30 days Very Good
2. Old acc Declined Declined 30
days 30 days Good
3. Do not give trade references
(These descriptions
relate respectively by number to the above current trade transactions):
1. Courier
2. Jewellery
This is an established business which is meeting its commitments
timeously. No adverse information has
been reported. The subject is considered equal to a maximum figure of £144 000
over 30 days.
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.
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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 –
-
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 |
|
US Dollar |
1 |
Rs.63.47 |
|
|
1 |
Rs.98.47 |
|
Euro |
1 |
Rs.70.69 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
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 |
|
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.