MIRA INFORM REPORT

 

 

Report Date :

25.05.2007

 

IDENTIFICATION DETAILS

 

Name :

TARA ULTIMO PRIVATE LIMITED

 

 

Registered Office :

Plot Number 29 (P) and 30(P), Sub Plot (A), SEEPZ, SEZ, Andheri (East) Mumbai – 400096, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

16.03.2001

 

 

Com. Reg. No.:

11-131252

 

 

CIN No.:

[Company Identification No.]

U52393MH2001PTC131252

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMT07364A

 

 

Legal Form :

Private limited liability company.

 

 

Line of Business :

Manufacturer of Studded Precious Metal Jewellery and also in Jewellery Designing

 

 

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 :

USD1500000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable, resourceful businessmen. Subject is an export oriented unit. Trade relations are fair.

 

Fabrikant H K Trading holds 1360000 equity shares in the company. Perhaps this can be an associate of Fabrikant U.S.A. who was declared bankrupt recently.

 

Some caution is needed since subject is closely associated with bankrupt company.

 

 

LOCATIONS

 

Registered Office :

Plot Number 29 (P) and 30(P), Sub Plot A, SEEPZ, SEZ, Andheri (East) Mumbai – 400096, Maharashtra, India

Tel. No.:

91-22-24226830 / 66774444 / 66774443

Fax No.:

91-22-66774464

 

 

DIRECTORS

 

Name :

Mr. Rajeev Vasant Sheth

Designation :

Director

Address :

37/A, Villa Ramona, Nepean Sea Road, Mumbai – 400 036, Maharashtra

Date of Birth/Age :

16.11.1958

Date of Appointment :

16.03.2001

 

 

Name :

Mrs. Alpana Anirudh Deo

Designation :

Director

Address :

15 / 227, Hyde Park, Shere-E-Punjab C.H.S. Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

Date of Birth/Age :

20.12.1974

Date of Appointment :

16.03.2001

 

 

Name :

Anirudh Padmakar Deo

Designation :

Director

Address :

15 / 227, Hyde Park, Shere-E-Punjab C.H.S. Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

Date of Birth/Age :

02.08.1945

Date of Appointment :

03.09.2002

 

 

SHAREHOLDING PATTERN

 

Names of Shareholders

 

Percentage of Holding

Foreign Holdings (Foreign Institutional Investor(s), Foreign Companie(s), Foreign Financial Institution (s), Non-Resident Indian(s), Overseas Corporate bodies or Others)

 

15.35 %

Bodies Corporate

 

0.85 %

Directors or Relatives of Directors

 

83.80 %

Total

 

100.00 %

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Studded Precious Metal Jewellery and also in Jewellery Designing

 

 

Products :
  • Rings
  • Earrings
  • Pendants
  • Bracelets

 

 

GENERAL INFORMATION

 

Suppliers :
  • Diamond Aids
  • Divya Jewels International Private Limited

 

 

Customers :
  • Audin International Incorporation
  • Matsumoto Industries Limited
  • Tara Jewels Exports Private Limited

 

 

No. of Employees :

About 2000

 

 

Bankers :
  • Bank of Bahrain and Kuwait B.S.C.
  • Union Bank of India

Overseas Branch, SEEPZ++, Unit 007, Block No II, SEEPZ++ Complex, Marol Industrial Area, Andheri (East), Mumbai -400096

  • State Bank of India

SEEPZ Branch, Andheri (East), Mumbai -400096

  • ICICI Bank Limited, Mumbai
  • Punjab National Bank

SEEPZ Branch, Andheri (East), Mumbai -400096

  • ING Vysya Bank Limited, Mumbai
  • Bank Of India

SEEPZ Branch, SEEPZ, Andheri (East), Mumbai -400096

  • State Bank Of Patiala

SEEPZ++, Andheri (East), Mumbai - 400096

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

C. B. Chhajed and Company

Chartered Accounts

Address :

Mumbai, Maharashtra, India

Tel. No.:

91-22-24226830

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1,50,00,000

Equity Shares

Rs 10/- each

Rs 150.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

88,60,000

Equity Shares

Rs 10/- each

Rs 88.600 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

88.600

50.000

50.000

2] Share Application Money

 

 

 

3] Reserves & Surplus

330.039

139.901

90.628

4] (Accumulated Losses)

 

 

 

NETWORTH

418.639

189.901

140.628

LOAN FUNDS

 

 

 

1] Secured Loans

572.913

314.403

234.329

2] Unsecured Loans

0.000

1.738

0.131

TOTAL BORROWING

572.913

316.141

234.460

DEFERRED TAX LIABILITIES

 

 

 

 

 

 

 

TOTAL

991.552

506.042

375.088

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

239.946

227.278

242.054

 

 

 

 

INVESTMENT

23.224

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

568.322
339.310

185.781

 

Sundry Debtors

687.289
395.365

310.598

 

Cash & Bank Balances

55.483
11.198

15.811

 

Other Current Assets

32.221
0.000

0.000

 

Loans & Advances

0.000
14.310

11.824

Total Current Assets

1343.315
760.183

524.014

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Current Liabilities

613.961
482.522

392.358

 

Provisions

1.800
 

 

Total Current Liabilities

615.761
482.522

392.359

Net Current Assets

727.554
277.661

131.655

 

 

 

 

MISCELLANEOUS EXPENSES

0.828

1.103

1.379

 

 

 

 

TOTAL

991.552

506.042

375.088

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [including other income]

2838.583

2106.939

1154.737

 

 

 

 

Profit/(Loss) Before Tax

N.A.

N.A.

(19.372)

Provision for Taxation

 

0.000

0.000

Profit/(Loss) After Tax

108.137

50.202

(19.372)

 

 

 

 

Export Value (F.O.B. Value)

N.A.

1906.988

1148.194

 

 

 

 

Import Value (C.I.F. Value)

N.A.

275.141

116.737

 

 

 

 

Total Expenditure

2730.446

2396.268

1361.196

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
3.81

2.38

(1.677)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.81

2.38

(1.677)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
11.17

9.94

(5.18)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.26

(0.13)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.84

4.20

4.45

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.18

1.57

1.33

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

HISTORY

 

Subject is located in a Special Economic Zone at Santacruz Electronics Export Processing Zone (SEEPZ), India and is engaged in the manufacturing of studded precious metal jewellery. The company has been promoted by Mr. Rajeev Sheth, a Technocrat and Gemmologist from USA, who was responsible for introducing the concept of wax setting for the first time in India. The company has been catering to the customers situated in the markets of US and Europe and has been successful in establishing a good customer base in these markets. These markets possess good demand potentials and company expects a sizeable amount of business from these markets. Tara group is among few Indian companies to be allotted diamonds sight by Diamond Trading Corporation (DTC) Website: www.tarajewels.co.in. Location: Mumbai  

 

Description of Assets

  • Building
  • Vehicles
  • Air Conditioners
  • Computers
  • Electric Installations
  • Furniture and Fixtures
  • Office Equipments
  • Plant and Machinery
  • Factory Equipments

 

 

Name of the company

TARA ULTIMO PRIVATE LIMITED

1) Date and description of instrument creating the change

1] Agreement of Hypothecation of Stock in trade dated 28th March 2006 – Rs. 50.000 Millions

 

2) Amount secured by the charge/amount owing on the securities of charge

Rs 50.000 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

Hypothecation of Stock in Trade.

4) Name and Address and description of the person entitled to the charge.

Union Bank of India

Overseas Bank, Seepz++, Unit 007,Block No. 2, Seepz++ Complex, Marol Industrial Area, Andheri (East)

5) Date and brief description of instrument modifying the charge

28th March, 2005

 

 

Name of the company

TARA ULTIMO PRIVATE LIMITED

1) Date and description of instrument creating the change

1] Agreement of Equitable mortgage or mortgage of property by depositing the title deeds of Immovable

Properties dated 27th April 2005 – Rs. 5.600 Millions

 

2) Amount secured by the charge/amount owing on the securities of charge

Rs 5.600 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 or mortgage of property by depositing the title deeds of Immovable Properties.

4) Name and Address and description of the person entitled to the charge.

ICICI Bank Limited

ICICI Bank Towers, Bandra Kurla Complex, Mumbai – 400051, Maharashtra

5) Date and brief description of instrument modifying the charge

27th April 2005.

 

 

Name of the company

TARA ULTIMO PRIVATE LIMITED

1) Date and description of instrument creating the change

1] Agreement of Hypothecation and Equitable mortgage or mortgage of property by depositing the title deeds of Immovable Properties, Plant and Machinery, Furniture and Fixtures, Stock in Trade, Book Debts dated 27th April 2006 – Rs. 200.000 Millions

 

2) Amount secured by the charge/amount owing on the securities of charge

Rs 200.000 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

Hypothecation and Equitable mortgage or mortgage of property by depositing the title deeds of Immovable Properties, Plant and Machinery, Furniture and Fixtures, Stock in Trade, Book Debts

5) Name and Address and description of the person entitled to the charge.

State Bank Of India

SEEPZ Branch, Andheri (East), Mumbai – 400096, Maharashtra

 

6) Date and brief description of instrument modifying the charge

27th April 2006

 

 

PRESS RELEASES

 

Indian Diamond Company’s wary as US Customer goes Bankrupt

 

Some of the Indian diamond houses could find their money stuck in the US, as one of the largest importers of Indian cut and polished diamonds, Fabrikant & Sons has filed for bankruptcy protection.


The privately-owned US company purchases diamonds from India in excess of $60m annually, making it the largest buyer in the US. Fabrikant is unable to pay off its debts.


Its current assets stand at $225.9m and current debts, at $363m. According to Sanjay Kothari, chairman, Gem and Jewellery Export Promotion Council (GJEPC), of the total debts, the company will owe Indian diamond merchants close to $25m approximately.


“This is expected to slow down the business further,” he said. The US accounts for a third of the diamond and gemstone exports. This will hit diamond exports, which has been sluggish in ’06. According to GJEPC figures between April and October ‘06, the total jewellery exports from India declined 17% from the comparable period last year. Exports were to the tune of $6291.3m (Rs 2,87,440 Millions), from last year’s $ 7609.7m (Rs 3,31,290 Millions).


Demand declined in the US, and production was also impacted after the floods in Surat, which accounts for 55% of the diamond polishing business, in August ’06 leading to a decline in exports.


Fabrikant is expected to keep its US operations minimal until it completes its financial restructuring. This could take about a month. India’s exports generally pick up in the October-December quarter in anticipation of higher sales during Thanksgiving and Christmas. This could be affected, if the payments of diamond merchants are held up.


Fabrikant has a JV in the US, with Indian jewellery exporter Tara Jewels under the name of Fabrikant Tara International (FTL). Tara Jewels did not pay any thing to Fabrikant to acquire a 75% stake in the company. The amount that Fabrikant received as a 25% equity holder was above what it had earned last year. While Fabrikant’s owes its creditors $36m, it owes its non-bankrupt subsidiaries, including FTL, $124m.

 

The company had sales worth $370m, and a net loss of $12.6m in ’05-06 (ended January 31 ‘06).

 

 

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 records 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.40.60

UK Pound

1

Rs.80.65

Euro

1

Rs.54.55

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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 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

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

 

 

 

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