MIRA INFORM REPORT
|
Report Date : |
05.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
GOLD
STAR JEWELLERY LIMITED |
|
|
|
|
Registered Office : |
Block ‘C’, Plot 16P, 17, 28
and 29 (P), Seepz, Andheri (East), Mumbai-400096, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
18.06.1990 |
|
|
|
|
Com. Reg. No.: |
11-56881 |
|
|
|
|
CIN No.: [Company Identification No.] |
L39611MH1990PLC056881 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
MUMG08117E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG3264B |
|
|
|
|
Legal Form : |
A
closely held public limited liability company |
|
|
|
|
Line of Business : |
Manufacturer,
Importer or Dealer in or undertake process in Gold, Silver, Diamonds, Rough
Diamonds, Precious and Semi Precious Stones and to Export Jewellery made out
of its. |
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 |
|
Maximum Credit Limit : |
USD 3500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established company engaged in the business as importer, exporter and
wholesalers of Diamonds and Jewellery. The company’s business is progressing well.
Its trade relations are fair. Payments are usually correct and as per
commitments. It can be considered normal
for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Block ‘C’, Plot 16P, 17, 28
and 29 (P), Seepz, Andheri (East), Mumbai-400096, Maharashtra, India |
|
Tel. No.: |
91-22-26947000 |
|
Fax No.: |
91-22-28290255/28291257 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Block ‘C’, Plot No. 16-P,
17, 28 & 29 – P, Seepz, Andheri (East), Mumbai, Maharashtra |
|
|
|
|
Overseas Office : |
·
45, West, 45 Street,
Suite # 201, New York, N. Y. 10036, USA Tel.
001 212 3912021 Fax.
001 212 3917444 E-mail.
ankur@goldstarjewellery.com ·
Hongkong Tel.
008 522 3673947 E-mail.
jhalak@hkstar.com ·
Japan Tel.
008 133 845 9880 E-mail.
nileshara@hotmail.com |
|
|
|
|
Branches : |
Located at :- 7/714, Prasad Chambers,
Opera House, Mumbai – 400 004, Maharashtra Tel. 91-22-23646171-72-73 Fax. 91-22-22634544 E-mail. admin@rtdiamond.co.in 269, Kothari House, 2nd
Floor, RMR Road, Opera House, Mumbai – 400 004, Maharashtra Tel. 91-22-23840223-224-230 Fax. 91-22-23840227 E-mail.
sales@goldstar.co.in |
DIRECTORS
|
Name : |
Mr. Satish R. Shah |
|
Designation : |
Chairman |
|
Address : |
13, Aryavarta ND Road,
Nepean Sea Road, Mumbai-400006, Maharashtra |
|
Date of Birth/Age : |
03.08.1942 |
|
Date of Appointment : |
28.09.2002 |
|
|
|
|
|
|
|
Name : |
Mr. Alkesh S. Shah |
|
Designation : |
Vice
Chairman |
|
Address : |
04, Aryavarta ND Road,
Nepean Sea Road, Mumbai-400006, Maharashtra |
|
Date of Birth/Age : |
06.02.1970 |
|
Date of Appointment : |
29.09.2003 |
|
|
|
|
Name : |
Mr. Ashish V. Shah |
|
Designation : |
Managing
Director |
|
Address : |
19/ Suvarna Nagar, Soni
House, N.S. Road No.4, JVPD Scheme, Vile Parle (West), Mumbai-400056,
Maharashtra |
|
Date of Birth/Age : |
04.05.1970 |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
|
|
|
Name : |
Mr. S. Ramesh Acharya |
|
Designation : |
Director
(Technical) |
|
Address : |
A 502, Dheeraj Garden,
Poonam Nagar, Mahakali Caves Road, Andheri (East), Mumbai-400093,
Maharashtra, India |
|
Date of Birth/Age : |
01.06.1967 |
|
Date of Appointment : |
01.04.2000 |
|
|
|
|
Name : |
Mrs. Smita A. Shah |
|
Designation : |
Director |
|
Address : |
13, Aryavarta ND Road,
Nepean Sea Road, Mumbai-400006, Maharashtra |
|
Date of Birth/Age : |
21.05.1971 |
|
Date of Appointment : |
25.09.2002 |
|
|
|
|
Name : |
Mr. Vikram Advani |
|
Designation : |
Director Marketing |
|
Address : |
1-44, Nanik Nivas,
Bhulabhai Desai Road, Mumbai-400026, Maharashtra |
|
Date of Birth/Age : |
23.05.1967 |
|
Date of Appointment : |
21.10.2003 |
|
|
|
|
Name : |
Mr. Hemant Manial Shah |
|
Designation : |
Director |
|
Address : |
Building
No.6, Flat No.40, 6th Floor, Haji Ali, Mumbai-400034, Maharashtra,
India |
|
Date of Birth/Age : |
20.07.1955 |
|
Date of Appointment : |
01.09.2006 |
|
Other Directorships : |
Gold
Star Info Soft Private Limited |
KEY EXECUTIVES
|
Name : |
Mr. Shreerang Ketkar |
|
Designation : |
Company
Secretary |
|
Address : |
16,
Gurudeo Society, Jijamata Marg, Thane (East), Thene-400603, Maharashtra |
|
Date of Birth/Age : |
31.12.1969 |
|
Date of Appointment : |
01.06.2001 |
MAJOR SHAREHOLDERS
|
Name of Shareholders |
No. of Shares |
|
Mr. Satish R. Shah |
1951990 |
|
Mr. Alkesh S. Shah |
515000 |
|
Mrs. Smita A. Shah |
47000 |
|
Mrs. Hansaben S. Shah |
145000 |
|
Mr. Sanjay S. Shah |
685000 |
|
Mrs. Shweta S. Shah |
33000 |
|
Mr. Sanjay S. Shah |
420000 |
|
Mr. Satish R. Shah |
393000 |
|
Mr. Sayam S. Shah |
10 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
Importer or Dealer in or undertake process in Gold, Silver, Diamonds, Rough
Diamonds, Precious and Semi Precious Stones and to Export Jewellery made out
of its. |
|
|
|
|
Products : |
Diamond
Studded with Gold Jewellery |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
500 |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
Ř
State Bank of India Ř
Bank of India, Seepz
Branch, Seepz, Andheri (East), Mumbai-400096 Ř
ABN Amro Bank Ř
HSBC Bank Ř
HDFC Bank Limited |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
SECURED
LOAN (Rs. In millions)
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
B. J. Shah & Associates Chartered Accountants 7,
Someshwar, Garden Lane, Sanghani Estate, Ghatkopar (West), Mumbai-400086,
Maharashtra, India |
|
|
|
|
Associates: |
Ř
Goldstar corporate
Solution private limited Ř
Royal Star Jewellery
Design Private Limited Ř
Goldstar Jewellery
Private Limtied Ř
R. T. Diamond Private
Limited Ř
Lotus Corporate
Solutions Private Limited Ř
Diam Star Jewellery
(India) Private Limited |
|
|
|
|
Subsidiaries: |
Ř
T. Two International
Limited Ř
New Star Jewels
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
41,90,000 |
Equity Shares |
Rs. 10/- each |
Rs. 41.900 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
41.900 |
41.900 |
41.900 |
|
|
3] Reserves & Surplus |
827.154 |
825.408 |
710.492 |
|
NETWORTH
|
869.054 |
867.308 |
752.392 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
723.305 |
722.848 |
326.200 |
|
|
2] Unsecured Loans |
62.079 |
24.113 |
12.064 |
|
TOTAL
BORROWING
|
785.384 |
746.961 |
338.264 |
|
|
DEFERRED TAX LIABILITIES |
17.870 |
17.193 |
16.053 |
|
|
|
|
|
|
|
TOTAL
|
1672.308 |
1631.462 |
1106.709 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
178.604 |
154.483 |
158.073 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
15.592 |
11.883 |
39.942 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1092.929 |
754.294 |
613.349 |
|
|
Sundry Debtors
|
1430.142 |
1356.323 |
589.893 |
|
|
Cash & Bank Balances
|
124.949 |
78.658 |
57.539 |
|
|
Other Current Assets
|
21.813 |
10.393 |
34.199 |
|
|
Loans & Advances
|
83.580 |
30.134 |
6.855 |
Total Current Assets
|
2753.413 |
2229.802 |
1301.835 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1249.023 |
735.492 |
344.303 |
|
|
Provisions
|
26.278 |
29.212 |
48.839 |
Total Current Liabilities
|
1275.301 |
764.704 |
393.142 |
|
Net Current
Assets
|
1478.112 |
1465.098 |
908.693 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1672.308 |
1631.464 |
1106.708 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3394.501 |
4825.828 |
2912.588 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
22.477 |
122.482 |
107.837 |
Provision for Taxation
|
4.301 |
5.565 |
19.781 |
Profit/(Loss) After Tax
|
18.176 |
116.917 |
88.056 |
|
|
|
|
|
Export Value
|
NA |
2683.626 |
1369.995 |
|
|
|
|
|
Import Value
|
NA |
1095.870 |
822.934 |
|
|
|
|
|
Total Expenditure
|
3372.024 |
4703.346 |
2804.751 |
7
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
0.53
|
2.42 |
3.02
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
0.66
|
2.54 |
8.02
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
0.77
|
5.14 |
7.19
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.02
|
0.14 |
0.14
|
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
2.37
|
1.74 |
0.97
|
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
2.16
|
2.91 |
3.21
|
LOCAL AGENCY FURTHER INFORMATION
Performance
The
company’s has increased from Rs.2900.000 millions to Rs. 4817.100 millions i.e
66%. The increase was mainly because of the emphasis laid on brand development
and better customer relationship management. The profits have gone up from
Rs.8805.600 millions to Rs. 11691.700 millions.
Outlook
The
directors anticipate that the business of the company will continue even in the
coming financial year. The company is focusing on the growth in Europe, Middle
East and Far East for increasing its export turnover. The company is getting
voluminous orders from big chain shop from U.S.A. and that will improve the
profitability of the company. The outstanding from customers are insured and
this will reduce the possibility of loss due to Bad Debts. The company is
establishing its wholly owned subsidiary in Hong Kong, which will provide
eminent existence in Far East.
Subsidiary Company
Goldstar
Jewellery Private Limited is a 100% subsidiary company of this company. As
required under section 212 of the companies Act 1956m the audited statement of
accounts along with the report of board of directors and the auditors report
there on for the year ended 31st March 2004, are annexed.
The
company is establishing wholly owned subsidiary in Hong Kong under the name
“Gold Star Jewellery (Hong Kong)
Limited”
The
company’s fixed assets of important values include Factory Building, Leasehold
Building, Furniture and Fixture, Plant and Machinery, Electrical Fitting,
Computers, Vehicles, Office Equipment, Tools and Equipments.
Its’ products range includes
:-
·
Bridals Rings
·
Gents Bands
·
Floral Design Set
·
Diamond Clusters
·
Bracelets
·
Platinum Heart Set
·
Platinum Rings
·
Three Stone Collection –
Triplets
·
Color Jewellery Wear
Form 8 Particular for creation or modification of
charges
|
Name of the company |
GOLD STAR JEWELLERY LIMITED, MUMBAI |
|
Presented By |
BANK OF INDIA, SEEPZ BRANCH, MUMBAI |
|
1) Date and description of
instrument creating the change |
Agreement
of Hypothecation of Plant and Machinery, stocks and Book Debts dated 27.07.2004 |
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Export
Packing Credit Limit – Rs.25.000 millions |
|
3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Bank
of India, Seepz Branch, Mumbai have sanctioned the packing credit facilities
to the company (the borrower) : By
hypothecating all tangible movable machinery and plant both present and
future whether installed or not and where lying loose or incases at site or
in transit or being or upon or about the Company’s godowns at Seepz viz. all
types of machines including Automatics and Semi Automatic Diamond Cutting
Machines, Setting Machines, dust Collecting Machines, Investment Mixers,
Furnaces, Electroplating Machines, Grooving Machines, Gold Carat Testing
Machines, Lazor Welding Machines, Tool Room Machines, CAD/CAM Model Making
machines, air cleaning machines, air compressors, wax injectors, sand
blasting systems, air dryers, dye making machines, electric motors, hot
plates, air coolers vulcanizers injection systems, mixing, grinding, melting
machines, casting units, jigs, dyes and toos, welding machines, office
equipments, Air Conditioners, Furniture and fixtures, computers and computer
printers, refrigerators, vehicles and all other types of machines required
for manufacturing of plain and studded jewellery as specified in schedule II,
Part A of the said Agreement. All
tangible movable properties both present and future viz. all stocks of raw
materials, stock in process, finished stocks such as gold, silver, diamonds,
precious and semi-precious stones, alloys, mounting and samples, findings,
rubber moulds, plaster of paris and other raw materials, work-in-process,
finished goods, ornaments, jewellery etc. All
present and future book debts, outstanding money receivable, claims bills
which are now due and owing etc. |
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
All the hypothecated machinery and plants,
hypothecated goods and debts shall be a security by way of first charge in
favour of the Bank Rate of interest is payable as per schedule I
attached to the said agreement The other terms and conditions are stipulated in the
said agreement |
|
5) Name and Address and
description of the person entitled to the charge. |
Bank of India Seepz Branch, Seepz, Andheri (East), Mumbai-400096 |
|
6) Date and brief description of instrument
modifying the charge |
Not
Applicable |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Not
Applicable |
|
Name of the company |
GOLD STAR JEWELLERY LIMITED, MUMBAI |
||||||||||||
|
Presented By |
BANK OF INDIA, SEEPZ BRANCH, MUMBAI |
||||||||||||
|
1) Date and description of
instrument creating the change |
Memorandum
of entry/oral assent dated 01.02.2003 |
||||||||||||
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Rs.75
millions
|
||||||||||||
|
3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Equitable
mortgage by deposit of title deeds of the immovable property being
superstructure constructed on Plot No.16, 17, 28 and 29 (part) in Seepz,
Andheri (East), Mumbai-400096 consisting of Ground floor, first floor and
second floor, third floor and fourth floor, totally admeasuring 2930.53 Sq.
mts, together with all immovable plant and machinery, erected or installed
thereon or permanently fastened to anything attached to earth, both present
and future, covering the above said facilities sanctioned as stated against
Point No.2. |
||||||||||||
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
As stated in the Memorandum of entry / oral assent
dated 01.02.2003 and also as per sanction dated 09.12.2002 and as per bank
norms and rules |
||||||||||||
|
5) Name and Address and
description of the person entitled to the charge. |
Bank of India Seepz Branch, Seepz, Andheri (East), Mumbai-400096 |
||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Not
Applicable |
||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
Not
Applicable |
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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%)
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability to
overcome financial difficulties seems comparatively below average/normal. |
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 |