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Report No. : |
340029 |
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Report Date : |
11.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
EMERALD MINING & INVESTMENT (SL) LIMITED |
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|
|
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Registered Office : |
20D Wilkinson Road, Free Town, |
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Country : |
Sierra Leone |
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|
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Date of Incorporation : |
12.09.1981 |
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|
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|
Legal Form : |
Limited Corporation |
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Line of Business : |
Traders in Gold and
Diamond. |
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|
|
|
No. of Employees : |
120 Employees. |
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 |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Sierra Leone |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
SIERRA LEONE - ECONOMIC
OVERVIEW
Sierra Leone is extremely poor and nearly half of the
working-age population engages in subsistence agriculture. The country possesses
substantial mineral, agricultural, and fishery resources, but it is still
recovering from a civil war that destroyed most institutions before ending in
the early 2000s. In recent years economic growth has been driven by mining -
particularly iron ore. The country’s principal exports are iron ore, diamonds,
and rutile, and the economy is vulnerable to fluctuations in international
prices. In 2014, rapid spread of Ebolavirus caused a contraction of economic
activity in several areas, including transportation, health, and industrial
production. Iron ore production dropped, due to low global prices and high
costs, driven by the epidemic. A long-term shutdown of the industry would badly
hurt the economy because it supports thousands of jobs and creates about 20% of
GDP. Until 2014, the government had relied on external assistance to support
its budget, but it was gradually becoming more independent. The epidemic has
disrupted economic activity, deterred private investment, and forced the
government to increase expenditures on health care, straining the budget and
restricting other public investment projects. A rise in international donor
support will partially offset these fiscal constraints.
|
Source
: CIA |
|
Registered Name: |
EMERALD MINING
& INVESTMENT (SL) LIMITED |
|
Requested Name: |
EMERALD MINING & INVESTMENT (SL) LIMITED |
|
Other Names: |
None |
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Physical Address: |
20D
Wilkinson Road, |
|
|
Free
Town, |
|
Country: |
Sierra
Leone |
|
Phone: |
232- 99317730/44400773/76341138/76309655/ 78273148 |
|
Fax: |
232-76309655 |
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Email: |
Info@emeraldminingsl.com/ Director@emeraldminingsl.com |
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Website: |
www.emeraldminingsl.com |
|
Legal Form: |
Limited Corporation |
|
|
Date Incorporated: |
12-Sept-1981 |
|
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Reg. Number: |
Sierra Leone |
|
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Nominal Capital |
SLL.
10,000,000 |
|
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Subscribed Capital |
SLL.
10,000,000 |
|
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Subscribed Capital is Subscribed in the following form: |
||
|
|
Position |
Shares |
|
Lucky Koroma |
CEO |
|
|
Mohammed Conteh |
Director |
|
|
None |
Parent company. |
|
None |
Subsidiary company. |
|
None |
Affiliated company. |
|
None |
Shareholder of subject
firm. |
|
None |
Branches of the firm |
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Registered to operate
traders in gold and diamond |
|
|
Imports: |
None |
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Exports: |
Worldwide |
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Trademarks: |
None |
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Terms of sale: |
Cash (30%) and 25-90 days (70%), invoices. |
|
|
|
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Main Customers: |
firms and organizations |
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Employees: |
120 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Sierra Leone |
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Location: |
Leased premises, 10,000 square feet, |
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Auditors: |
Information not
available. |
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Insurance Brokers: |
Information not available. |
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Currency Reported: |
Sierra Leonen Leone (SLL.) |
|
|
Approx. Ex. Rate: |
1 US Dollar = 4642.18
Sierra Leonen Leone |
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Fiscal Year End: |
December 31, 2014 |
|
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2014 was of 13%. |
|
|
|
||
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Financial Information not
Submitted |
|
|
|
|
|
|
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Profit and Loss
(expressed in SLL.) |
||
|
|
|
2014 |
|
Sales |
|
650,000,000 |
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Bank Name: |
Procredit
Bank |
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Branch: |
Sierra Leone |
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Comments: |
None |
|
This information was
obtained from outside sources other than the subject company itself and
confirmed the above subject. |
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.
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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.
-
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.66.58 |
|
|
1 |
Rs.102.29 |
|
Euro |
1 |
Rs.74.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.