MIRA
INFORM REPORT
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Report Date : |
15.03.2007 |
IDENTIFICATION DETAILS
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Name : |
RENAISSANCE JEWELLERY LIMITED |
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Registered Office : |
Plot No. 36 A & 37, Seepz-Sez, MIDC Marol, Andheri (East), Mumbai
- 400 096, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.12.1989 |
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Com. Reg. No.: |
11-54498 |
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CIN No.: [Company
Identification No.] |
U36911MH1989PLC054498 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR14877C |
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PAN No.: [Permanent
Account No.] |
AACCR2148B |
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Legal Form : |
A
closely held public limited liability company. |
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Line of Business : |
Manufacturer and Exporter of Studded Gold Jewellery |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
2500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company. It is doing well. Payments are
correct and as per commitments. Financial position is good. Nothing adverse
reported. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. It can
be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office / Factory
: |
Plot No. 36 A & 37, Seepz-Sez, MIDC Marol, Andheri (East), Mumbai
- 400 096 |
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Tel. No.: |
91-22-28291019 / 28291458 |
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Fax No.: |
91-22-28291699 |
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E-Mail : |
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Website : |
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Factory
1 : |
G-42, GEM & Jewellery, Complex - III, Seepz, MIDC Marol, Andheri
(East), Mumbai - 400 096 |
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Factory
2 : |
Plot No. 2302, Hill Drive, Talaja Road, Bhavnagar, Gujarat - 364 002 |
DIRECTORS
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Name : |
Mr. Niranjan A. Shah |
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Designation : |
Chairman |
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Name : |
Mr. Sumit N. Shah |
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Designation : |
Managing Director |
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Name : |
Mr. Hitesh M. Shah |
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Designation : |
Executive Directors |
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Name : |
Mr. Neville R.Tata |
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Designation : |
Executive Directors |
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Name : |
Mr. Amit C. Shah |
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Designation : |
Directors |
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Name : |
Mr. Bhupen C. Shah |
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Designation : |
Directors |
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Name : |
Mr. Arun S. Shah |
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Designation : |
Independent Directors |
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Name : |
Mr. Veerkumar C. Shah |
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Designation : |
Independent Directors |
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Name : |
Mr. Jitendra M. Shah |
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Designation : |
Independent Directors |
KEY EXECUTIVES
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Name
: |
Mr. S.S.Narayana |
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Designation
: |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Studded Gold Jewellery |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Studded Gold Jewellery |
(Kgs) |
1800 |
2775 |
1236 |
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GENERAL INFORMATION
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No. of Employees : |
About
1500 |
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Bankers : |
Bank Of India State Bank Of India Punjab National Bank ICICI Bank The Bank of Nova Scotia |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
J. K. Shah & Company Chartered
Accountants |
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Tel. No.: |
3rd Floor, Flat No. 14, AL-Karim Manzil, 15, Palton Road, Mumbai - 400 001 |
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Mobile No.: |
91-22-22615581 / 22620352 / 22620183 |
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Fax No.: |
91-22- 2261 9937 |
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Subsidiaries : |
·
Verigold Fine Jewellery Private Limited
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Associates : |
·
N. Kumar Diamonds Exports Limited ·
Fancy Jewellery Private Limited ·
Renaissance Home Retail Private Limited ·
Anika Jewellery Private Limited
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CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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6517600 |
Equity Shares |
Rs. 10/- each |
Rs. 65.176 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
65.176 |
16.294 |
16.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
540.121 |
441.554 |
373.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
605.297 |
457.848 |
389.700 |
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LOAN FUNDS |
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1] Secured Loans |
575.259 |
474.774 |
234.500 |
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2] Unsecured Loans |
3.850 |
2.632 |
9.000 |
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TOTAL BORROWING |
579.109 |
477.406 |
243.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
2.113 |
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TOTAL |
1184.406 |
937.367 |
633.200 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
178.712 |
109.996 |
108.800 |
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Capital
work-in-progress |
0.000 |
28.564 |
9.500 |
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INVESTMENT |
2.060 |
4.309 |
0.300 |
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DEFERREX
TAX ASSETS |
2.252 |
0.000 |
0.000 |
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CURRENT
ASSETS, LOANS & ADVANCES |
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Inventories |
830.541
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421.398 |
300.800 |
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Sundry
Debtors |
855.848
|
586.994 |
471.700 |
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Cash
& Bank Balances |
17.971
|
16.720 |
6.000 |
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Other
Current Assets |
0.000
|
0.000 |
0.000 |
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Loans
& Advances |
23.012
|
10.096 |
10.000 |
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Total Current
Assets |
1727.372
|
1035.208 |
788.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current
Liabilities |
718.482
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232.929 |
267.900 |
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Provisions |
10.546
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7.781 |
6.000 |
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Total Current
Liabilities |
729.028
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240.710 |
273.900 |
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Net Current Assets |
998.344
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794.498 |
514.600 |
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MISCELLANEOUS
EXPENSES |
3.038 |
0.000 |
0.000 |
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TOTAL |
1184.406 |
937.367 |
633.200 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
3142.530 |
1951.854 |
1631.800 |
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Profit/(Loss) Before Tax |
145.177 |
68.798 |
56.100 |
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Provision for Taxation |
[2.273] |
0.609 |
[0.400] |
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Profit/(Loss) After Tax |
147.450 |
68.189 |
56.500 |
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Export Value |
3136.700 |
1960.218 |
NA |
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Import Value |
2228.184 |
691.578 |
NA |
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Total Expenditure |
2997.353 |
1883.056 |
1575.700 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
4.69
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3.49 |
3.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.62
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3.52 |
3.44 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.62
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6.01 |
6.25 |
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Return on Investment (ROI) (PBT/Networth) |
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0.24
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0.15 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.16
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1.57 |
1.33 |
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Current Ratio (Current Asset/Current Liability) |
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2.37
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4.30 |
2.88 |
LOCAL AGENCY FURTHER INFORMATION
The company’s fixed assets of important values include Building,
Plant and Machinery, Furniture and Fittings, Electrical Installation, Office
Equipments, Computers and Vehicles.
As per website
The Innovation
Renaissance takes pride in their modern design studio complete
with a state-of-the-art CAD/CAM facility. Their dedicated team of 40 designers
is, well versed on the latest international trends and contributes at least 400
innovative designs monthly to their ever-expanding portfolio of over 25,000
styles. The majority of their current models are produced using CAD/CAM to
ensure precision.
The Creation
Their world-class production units consist of 1,400 plus highly
skilled workers with access to the latest in tools and machinery including a
laser-soldering machine, Nutech J10 casting machine and OTEC Stream Liner
machine, just to mention a few. Production is geared for over 80,000 pieces a
month. Their production unit is capable of meeting their clients’ most
stringent requirements. High quality and efficient production are the bywords
of the shop floor.
The Relation
Renaissance values developing a long-term partnership above
marking a short-term sale. Their focus has always been on the timely delivery
of quality goods. Every piece is assayed on their CMI machine for correct
karatage and checked by an independent quality control team before shipping.
Their customer-oriented marketing team ensures a quick turnaround of
information and a consistent follow up customer requirements.
Promoters
Mr. Niranjan Shah, aged
58 years, has over 35 years experience in the gems and jewellery business. He
started his career as partner of N. Kumar Diamond & Co. on July 23, 1970.
He later also became the partner of Sumit Diamonds on March 22, 1978. He is a
Promoter Director and the Chairman of their Company. He is the managing
director of one of their group companies, N. Kumar Diamond Exports Limited, a
company engaged in diamond business. As a non-executive chairman, he advises on
the overall strategy of their Company. He is also the director of Fancy
Jewellery Private Limited, Verigold Fine Jewellery Private Limited, Anika Jewellery
Private Limited, Renaissance Home Retail Private Limited and Renaissance Retail
Venture Private Limited.
Mr. Sumit Shah, aged 31 years, Son of Mr. Niranjan Shah, is a graduate
from the Bentley College, Boston and has over 10 years of experience in the
gems and jewellery business. He started his career with Mayur Gems and
Jewellery Private Limited as a Director in the year 1995. He is the Managing
Director of their Company and he is responsible for strategic planning,
business promotion, monitoring long-term plans of their Company and technology
transfer/up-gradation. He is also a director of N. Kumar Diamond Exports
Limited, Fancy Jewellery Private Limited, Verigold Fine Jewellery Private
Limited, Anika Jewellery Private Limited, Renaissance Home Retail Private
Limited and Renaissance Retail Venture Private Limited. He is also a partner in
Sumit Diamonds.
Mr. Hitesh Shah, aged 34, is a bachelor in commerce from the Bombay
University and has over 12 years of experience in the gems and jewellery business.
He was earlier working with Sudiam B.V.B.A, Japan as president and was
responsible for managing the operations. He joined their Company as chief
financial officer and was appointed as executive Director in January 2003. He
is responsible for product development, merchandising, marketing and financial
planning. He is also a director of Fancy Jewellery Private Limited, Verigold
Fine Jewellery Private Limited, Anika Jewellery Private Limited, Renaissance
Home Retail Private Limited and Renaissance Retail Venture Private Limited.
Mr. Bhupen Shah, aged 43 years, has experience of over 20 years in the
gems and jewellery business. He started his career as partner of N. Kumar
Diamond & Co. on November 5, 1983. He is a whole time director of N. Kumar
Diamond Exports Limited. He is also director of Fancy Jewellery Private Limited
and Verigold Fine Jewellery Private Limited. He is also a partner in Sumit
Diamonds.
Mr. Amit Shah, aged 44 years, has experience of more than 20 years in
the gems and jewellery business. He started his career as partner of N. Kumar
Diamond & co on October 28, 1981. He is a whole time director in N. Kumar
Diamond Exports Limited. He is also a director of their Company. He is also the
Director of Fancy Jewellery Private Limited and Verigold Fine Jewellery Private
Limited. He is also a partner in Sumit Diamonds.
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.44.53 |
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UK
Pound |
1 |
Rs.86.24 |
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Euro |
1 |
Rs.57.80 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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63 |
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 EXPLANATIONS
|
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 |
|
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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