MIRA
INFORM REPORT
|
Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SHEEL DIAMOND EXPORTS LIMITED |
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Registered Office : |
1315, Parsad Chambers, Opera House, Mumbai – 400004, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.10.1995 |
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Com. Reg. No.: |
11-93652 |
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CIN No.: [Company
Identification No.] |
U36911MH1995PLC093652 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS19454B |
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PAN No.: [Permanent
Account No.] |
AAACS9161M |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers of Polished and Rough Diamonds |
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 530000 |
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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 company having fine track. Directors are
reported as experienced, respectable and having satisfactory means of their
own. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
1315, Parsad Chambers, Opera House, Mumbai – 400004, Maharashtra,
India |
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Tel. No.: |
91-22-23637103 / 23677386 / 40868888 |
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Fax No.: |
91-22-23610926 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Bhupendra H. Mehta |
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Designation : |
Whole Time Director |
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Address : |
1-B, Rizvi Park, 5-A, Altamount Road, Mumbai – 400026,Maharashtra,
India |
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Date of Birth/Age : |
05.05.1952 |
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Date of Appointment : |
13.10.1995 |
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Name : |
Mr. Chetan Amichand Shah |
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Designation : |
Director |
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Address : |
19-A, Sterling Apartments, Pedder Road, Mumbai – 400026, Maharashtra,
India |
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Date of Birth/Age : |
30.08.1950 |
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Date of Appointment : |
13.10.1995 |
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Name : |
Mr. Jatin Amichand Shah |
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Designation : |
Director |
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Address : |
92, Sommerset House, 61/G, Off B D Road, Mumbai – 400026, Maharashtra,
India |
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Date of Birth/Age : |
30.07.1957 |
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Date of Appointment : |
28.04.2005 |
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Name : |
Mr. Chandresh S Jhaveri |
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Designation : |
Director |
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Address : |
2305, Panchratna, Mama Parmanand Marg, Opera House, Mumbai – 400004 |
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Date of Birth/Age : |
09.11.1951 |
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Date of Appointment : |
28.04.2005 |
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Date of Ceasing : |
08.08.2005 |
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Name : |
Mr. Buen Chetan Shah |
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Designation : |
Director |
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Address : |
19-A, Sterling Apartments, Pedder Road, Mumbai – 400026, Maharashtra,
India |
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Date of Birth/Age : |
17.12.1975 |
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Date of Appointment : |
28.04.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Bhupendra H. Mehta |
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90100 |
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Chetan Amichand Shah |
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40100 |
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Jatin Amichand Shah |
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45100 |
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Bejal Bhupendra Mehta |
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52600 |
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Sheel Chetan Shah |
|
20100 |
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Sonal Jatin Shah |
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15100 |
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Buen Chetan Shah |
|
10100 |
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Total |
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273200 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Polished and Rough Diamonds |
GENERAL
INFORMATION
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Bankers : |
ABN AMRO Bank N. V., 14, Veer Nariman Road, Mumbai – 400023 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kantawala and Company Chartered Accountants |
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Address : |
Tardeo Air – Condition Market, 7th Floor, Room No. 18,
Tardeo, Mumbai – 400034, Maharashtra, India |
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Tel. No.: |
91-22-23514668 |
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Res. No.: |
91-22-23752372 / 23757242 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
100.000 |
100.000 |
2.732 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
32.591 |
11.652 |
18.915 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
132.591 |
111.652 |
21.647 |
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LOAN FUNDS |
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1] Secured Loans |
515.468 |
597.738 |
11.859 |
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2] Unsecured Loans |
0.000 |
15.850 |
0.000 |
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TOTAL BORROWING |
515.468 |
613.588 |
11.859 |
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DEFERRED TAX LIABILITIES |
0.409 |
0.346 |
0.294 |
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TOTAL |
648.468 |
725.586 |
33.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8.908 |
6.917 |
6.924 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
5.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
495.926
|
256.935 |
254.067 |
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Sundry Debtors |
622.226
|
630.885 |
28.008 |
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Cash & Bank Balances |
25.517
|
26.620 |
0.589 |
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Other Current Assets |
0.179
|
0.120 |
0.014 |
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Loans & Advances |
25.002
|
12.748 |
5.419 |
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Total
Current Assets |
1168.850
|
927.308 |
288.097 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
509.118
|
194.858 |
258.706 |
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Provisions |
25.615
|
14.374 |
2.570 |
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Total
Current Liabilities |
534.733
|
209.232 |
261.276 |
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Net Current Assets |
634.117
|
718.076 |
26.821 |
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MISCELLANEOUS EXPENSES |
0.443 |
0.593 |
0.055 |
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TOTAL |
648.468 |
725.586 |
33.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1924.686 |
1580.128 |
201.537 |
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Other Income |
58.967 |
20.920 |
9.572 |
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Total Income |
1983.653 |
1601.048 |
211.109 |
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Profit/(Loss) Before Tax |
44.793 |
22.407 |
4.008 |
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Provision for Taxation |
15.230 |
7.577 |
1.467 |
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Profit/(Loss) After Tax |
29.563 |
14.830 |
2.541 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
NA |
201.245 |
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Imports : |
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Total Imports |
NA |
NA |
249.318 |
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Expenditures : |
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Raw Material Consumed |
1793.775 |
1549.860 |
172.871 |
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Increase/(Decrease) in Finished Goods |
16.111 |
[55.519] |
16.595 |
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Salaries, Wages, Bonus, etc. |
2.176 |
0.942 |
7.960 |
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Managerial Remuneration |
0.000 |
0.180 |
0.000 |
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Payment to Auditors |
0.051 |
0.045 |
0.000 |
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Depreciation & Amortization |
0.656 |
0.588 |
0.571 |
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Other Expenditure |
126.091 |
82.545 |
9.104 |
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Total Expenditure |
1938.860 |
1578.641 |
207.101 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.49
|
0.93 |
1.20 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.33
|
1.42 |
1.99 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.80
|
2.40 |
1.36 |
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Return on Investment (ROI) (PBT/Networth) |
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0.34
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0.20 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
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7.92
|
7.37 |
12.62 |
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Current Ratio (Current Asset/Current Liability) |
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2.19
|
4.43 |
1.10 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
SHEEL DIAMOND
EXPORTS LIMITED |
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Presented By |
ABN AMRO BANK N.
V. AND SHEEL DIAMOND EXPORTS LIMITED |
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1) Date and description of instrument creating the change |
Dated 08.09.1998 Facility Cum
Hypothecation Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
INR RS. 15.000
Millions |
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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 |
All the
Borrower’s Stock in Trade present and future consisting Raw Materials, Work
in Progress, Finished Goods and all the borrower’s present and future book
debts, outstanding moneys, receivables, claims and bills. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Total amount of
charge – INR 15 Million; Purpose to
finance post – shipment credit; Rate of Interest
– as per RBI directives; Sole charge over
assets indicated above; |
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5) Name and Address and description of the person entitled to the charge. |
ABN AMRO Bank N. V. 14, Veer Nariman Road, Mumbai – 400023 |
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6) Date and brief description of instrument modifying the charge |
Dated 24.10.2005 Supplemental
facility cum hypothecation agreement |
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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. |
Past Modification : The original charge
created on 08.09.1998 for INR 15.000 millions was modified and increased to
INR RS. 25.000 Millions on 24.09.1999 Further modified
on 04.10.2004 thereby increasing the limit to INR 70 millions [Last
modification registered on 01.11.2004 under Doc. No. 47] Present Modification : The Bank having
at the request of the borrower has further increased the existing facilities
from Rs. 70 Millions to Rs. 40 Million against hypothecation of all the
borrower’s book debts and tangible movable properties of the borrower
including raw materials, stocks, spares, semi finished and finished goods,
goods in process of manufacture and all goods manufactured therefrom
belonging to the borrower which now are or hereinafter from time to time
during the subsistence of the security hereby created, be brought in or
stored in or about the borrower’s factories, premises, warehouses and godowns
including any such goods in the course of transit or delivery. Margin : 25 % Thus the
aggregate charge now stands secured at INR 400 millions |
Fixed Assets
- Air Condition
- Computers
- Electrical Appliance
- Furniture
- Office Equipment
- Office Premises
- Television
- Vehicles
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.39.33 |
|
UK Pound |
1 |
Rs.81.75 |
|
Euro |
1 |
Rs.57.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
|
58 |
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. |
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 |
|