MIRA INFORM REPORT

 

 

Report No. :

495350

Report Date :

28.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

DE BEERS GLOBAL SIGHTHOLDER SALES (PTY) LIMITED

 

 

Registered Office :

Plot No. 63016, Block 8, Airport Road, Private Bag 0074, Gaborone

 

 

Country :

Botswana

 

 

Date of Incorporation :

10.06.2005

 

 

Com. Reg. No.:

CO4259

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Subject is registered to operate as Bulk purchase of rough diamonds

 

 

No. of Employees :

720

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Botswana

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

BOTSWANA - ECONOMIC OVERVIEW

 

Until the global recession, Botswana maintained one of the world's highest economic growth rates since independence in 1966. Diamond mining fueled much of the economic expansion and currently accounts for one-quarter of GDP, approximately 85% of export earnings, and about one-third of the government's revenues. Tourism is the secondary earner of foreign exchange and many Batswana engage in tourism-related services, subsistence farming, and cattle rearing. Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of approximately $18,100 in 2017. Botswana also ranks as one of the least corrupt and best places to do business in sub-Saharan Africa.

Botswana's economy closely follows global economic trends because of its heavy reliance on a single luxury export. According to official government statistics, unemployment is around 20%, but unofficial estimates run much higher. De Beers, a major international diamond company, signed a 10-year deal with Botswana in 2012 and moved its rough stone sorting and trading division from London to Gaborone in 2013. The move was geared to support the development of Botswana's nascent downstream diamond industry.

Botswana’s economy recovered from the 2008 global recession in 2010, but has only grown modestly since then, primarily due to the downturn in the global diamond market, though water and power shortages also played a role. The prevalence of HIV/AIDS is second highest in the world and threatens the country's impressive economic gains. Diamond exports increased again in 2017 to the highest levels since 2013 at about 22 million carats of output, driving Botswana’s economic growth of about 4.5% in 2017 and increasing foreign reserves to about 45% of GDP.

 

Source : CIA

 

 

SUBJECT'S NAME

 

Registered Name:

DE BEERS GLOBAL SIGHTHOLDER SALES (PTY) LIMITED

Requested Name:

DE BEERS GLOBAL SIGHTHOLDER SALES (PTY) LIMITED

Former Names:

DIAMOND TRADING COMPANY BOTSWANA (DTC BOTSWANA)

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot No. 63016, Block 8, Airport Road,

Postal Address:

Private Bag 0074

 

Gaborone

Country:

Botswana

Phone:

267-3913118/3649000

Fax:

267-3951150

Email:

kmmopu@dtcb.co.bw

Website:

www.dtcb.co.bw

 

 

CREDIT OPINION

 

 

Financial Index as of December 2016 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.

 

 

LEGAL

 

 

Legal Form:

Limited Corporation 

Date Incorporated:

10-June-2005

Reg. Number:

CO4259 Botswana

Nominal Capital

BWP. 1,000,000

Subscribed Capital

BWP. 1,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Paul Rowley

Chairman

 

Mr. Kevin Goodrem

Director

 

Mr. Daniel Neo Moroka

Director

 

Mr. Nchidzi Mmolawa

Director

 

Mrs. Linah Kelebogile Mohohlo

Director

 

Mr. Kelapile Ndobano

Director

 

Dr. Athaliah L. Molokomme

Director

 

Mr. Jon Savage

Director

 

Mr. Kgomotso Abi

Director

 

Mr. Richard Whitby

Finance

 

Mrs. Tuduetso Tshetlhane

Manager

 

Ms. Sharon Chequer

Manager

 

Mr. Lemise Du Toit

Accounts

 

Government of the Republic of Botswana

Shareholder

50%

The De Beers Group of Companies

Shareholder

50%

 

 

RELATED COMPANIES

 

 

None

Parent company.

None

Subsidiary company.

None

Affiliated company.

Government of the Republic of Botswana

The De Beers Group of Companies

Shareholders of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as Bulk purchase of rough diamonds

Imports:

Europe, Asia

Exports:

None

Trademarks:

None

Terms of sale:

Cash (60%) and 25-90 days (40%), invoices.

 

 

Main Customers:

Sightholder firms and organizations

Employees:

720 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Botswana

Location:

Owned premises, 20,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

 

FINANCE

 

 

Currency Reported:

Botswana Pula (BWP.)

Fiscal Year End:

December 31, 2016

Inflation:

According to information given by independent sources, the inflation at December 31st, 2016

was of 13%.

 

Financial Information not Submitted

 

 

 

Profit and Loss (expressed in BWP.)

 

 

2016

Sales

 

280,000,000

 

 

BANK

 

 

Bank Name:

Barclays Bank

Branch:

Botswana

Comments:

None

 

 

 

TRADE REFERENCES

 

 

Experiences:

Good

 

 

 

NOTARIAL BONDS

None

 

 

COMMENTS / ADDITIONAL INFORMATION

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.85

UK Pound

1

INR 90.58

Euro

1

INR 79.97

BWP

1

INR 6.89

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VAR

 

 

Report Prepared by :

TRU

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.