MIRA
INFORM REPORT
|
Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LONDON STAR DIAMOND COMPANY [INDIA] PRIVATE LIMITED |
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Registered Office : |
1610-1611 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.11.1964 |
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Com. Reg. No.: |
11-13066 |
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CIN No.: [Company
Identification No.] |
U36900MH1964PTC013066 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04393E |
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PAN No.: [Permanent
Account No.] |
AAACL0576B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Cut and Polished Diamond |
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 370000 |
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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 an old established and reputed company having satisfactory
track records. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
1610-1611 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra,
India |
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Tel. No.: |
91-22-2363 2892 –95 |
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Fax No.: |
91-22-2364 3821 / 2363 3393 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Ms. Sushila Shantilal Jhaveri |
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Designation : |
Chairman |
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Address : |
Pran Niwas MA Road, Andheri, Mumbai – 400058, Maharashtra, India |
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Date of Birth/Age : |
13.11.1918 |
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Date of Appointment : |
25.11.1964 |
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Name : |
Mr. Kamlesh Shantilal Jhaveri |
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Designation : |
Managing Director |
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Address : |
Armaan Plot No. 5, New Ashok Co-operative Housing Society Limited,
JVPD Scheme, Vile Parle [West], Mumbai – 400049, Maharashtra, India |
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Date of Birth/Age : |
03.05.1949 |
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Date of Appointment : |
14.10.1971 |
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Name : |
Mr. Suhurd Shantilal Jhaveri |
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Designation : |
Director |
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Address : |
Patel Sadan 40-C, Off Peddar Road, Mumbai – 400026, Maharashtra, India
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Date of Birth/Age : |
23.06.1951 |
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Date of Appointment : |
01.06.1977 |
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Name : |
Mr. Daniel David Fiszman |
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Designation : |
Director |
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Address : |
Flat No. 2, Avinue Road, London |
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Date of Birth/Age : |
09.01.1945 |
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Date of Appointment : |
11.12.1975 |
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Name : |
Ms. Shobha Kamlesh Jhaveri |
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Designation : |
Director |
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Address : |
Armaan 11th Road, JVPD Scheme Vile Parle [West], Mumbai –
400049, Maharashtra, India |
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Date of Birth/Age : |
22.02.1952 |
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Date of Appointment : |
06.02.1991 |
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Name : |
Mr. Rishabh Kamlesh Jhaveri |
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Designation : |
Director |
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Address : |
Armaan 11th Road, JVPD Scheme Vile Parle [West], Mumbai –
400049, Maharashtra, India |
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Date of Birth/Age : |
01.01.1980 |
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Date of Appointment : |
01.07.2003 |
SHAREHOLDING
PATTERN
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign
Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate
bodies or others] |
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10.98 |
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Bodies corporate |
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0.28 |
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Directors or relatives of directors |
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88.74 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cut and Polished Diamond |
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Export to : |
Japan, Korea, Hong Kong, New Zealand, Australia, Thailand, Italy,
Belgium, United Kingdom, and U.S.A |
GENERAL
INFORMATION
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No. of Employees : |
About 300 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Hitesh Sheth and Associates Chartered Accountants |
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Address : |
401, Prashant Apartments, Ashok Chakravarty Road, Kandivali [East],
Mumbai – 400101, Maharashtra, India |
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Memberships : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000 |
Equity Shares |
Rs. 100/- each |
Rs. 15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
141710 |
Equity Shares |
Rs. 100/- each |
Rs. 14.171
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 |
14.171 |
14.171 |
14.171 |
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2] Share Application Money |
1.794 |
0.000 |
0.000 |
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3] Reserves & Surplus |
77.384 |
71.358 |
64.496 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
93.349 |
85.529 |
78.667 |
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LOAN FUNDS |
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1] Secured Loans |
198.152 |
94.451 |
11.645 |
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2] Unsecured Loans |
1.000 |
0.000 |
4.019 |
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TOTAL BORROWING |
199.152 |
94.451 |
15.664 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
292.501 |
179.980 |
94.331 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8.921 |
7.034 |
7.530 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.072 |
0.072 |
0.072 |
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DEFERREX TAX ASSETS |
1.117 |
5.394 |
9.496 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
173.701
|
41.484 |
15.951 |
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Sundry Debtors |
245.678
|
218.737 |
55.384 |
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Cash & Bank Balances |
12.161
|
3.831 |
0.231 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
66.031
|
44.565 |
34.898 |
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Total
Current Assets |
497.571
|
308.617 |
106.464 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
213.330
|
140.237 |
28.556 |
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Provisions |
1.850
|
0.900 |
0.675 |
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Total
Current Liabilities |
215.180
|
141.137 |
29.231 |
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Net Current Assets |
282.391
|
167.480 |
77.233 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
292.501 |
179.980 |
94.331 |
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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 |
822.704 |
410.449 |
102.261 |
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Other Income |
-- |
-- |
13.999 |
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Total Income |
822.704 |
410.449 |
116.260 |
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Profit/(Loss) Before Tax |
11.432 |
11.533 |
4.972 |
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Provision for Taxation |
-- |
-- |
0.450 |
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Profit/(Loss) After Tax |
11.432 |
11.533 |
4.522 |
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Earnings in Foreign Currency : |
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Total Earnings |
817.205 |
400.378 |
94.699 |
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Imports : |
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Total Imports |
NA |
NA |
11.119 |
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Expenditures : |
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Cost of Material |
0.000 |
0.000 |
11.119 |
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Direct and statutory Expenses |
0.000 |
0.000 |
5.973 |
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Consumable and Stores |
0.000 |
0.000 |
0.387 |
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Interest, Bank Charges and Insurance |
9.767 |
2.808 |
1.737 |
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Other Administration Expenses |
0.000 |
0.000 |
3.836 |
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Depreciation |
0.570 |
0.542 |
0.569 |
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Increase/(Decrease) in Finished Goods |
800.934 |
395.565 |
87.666 |
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Total Expenditure |
811.271 |
398.915 |
111.287 |
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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 |
(%) |
1.39
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2.81 |
3.89 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.39
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2.81 |
4.86 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.26
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3.65 |
4.36 |
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Return on Investment (ROI) (PBT/Networth) |
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0.12
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0.13 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.44
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2.75 |
0.57 |
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Current Ratio (Current Asset/Current Liability) |
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2.31
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2.19 |
3.64 |
LOCAL AGENCY
FURTHER INFORMATION
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
80028972 |
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Corporate
identity number of the company |
U36900MH1964PTC013066 |
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Name of the
company |
LONDON STAR DIAMOND COMPANY [INDIA] PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
1610-1611 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra,
India |
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Type of charge |
Immovable Property |
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Particular of
charge holder |
Andhra Bank 9/15 Mama
Parmanand Marg, Opera House, Queens Road, Mumbai – 400004, Maharashtra, India
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Nature of
description of the instrument creating or modifying the charge |
No instrument was
executed. Charge created by way of equitable by deposit of title deeds. |
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Date of
instrument Creating the charge |
17.04.2007 |
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Amount secured by
the charge |
Rs. 300.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Extent operation
of the charge Security created
by way of first charge and to rank pari passu between Andhra bank, Oriental
Bank of Commerce, State Bank of India, United Bank of India and Lakshmi Vilas
Bank Limited Others Security to cover
the principal amount together with interest, charges, costs and expenses. |
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Short particulars
of the property charged |
Immovable
properties of the company viz. office premises No. 1510 admg. 630 sq. feet
super built up area and flat bearing Nos. 1610 and 1611 adm. 655 sq. feet
respectively in Prasad Chambers, Swadeshi Mills Compound, Opera House,
Mumbai. |
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Particulars of
the present modification |
The total amount
secured remain unchanged at Rs. 300 Millions Security is
available in respect of PC / PSC limit granted by the Andhra Bank Consortium
as below :
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Subject was formed in the year 1964 by (late) Mr. S. G. Jhaveri. The Registered
and Sales Office is situated at the center of diamond trading activity in
Mumbai "Opera House" at Prasad Chambers, on the 16th Floor and
occupies an area of 2000 sq.ft. The family of (late) Mr. S. G. Jhaveri has been
in diamond business since 1911. Originally, the sales were for the Indian
market but since 1964 the Company started concentrating on the worldwide market
as well.
Subject offer consistent assortment required
by the clients, timely shipments and competitive prices. Their experienced Assorters
do piece by piece assortment of diamonds, which ensures an exacting assortment.
They specializes in the full range of Round Diamonds.
They have clientle in Japan, Korea, Hong
Kong, New Zealand, Australia, Thailand, Italy, Belgium, United Kingdom, and
U.S.A and other parts of the world and regularly prepare goods to their
requirements.
In addition to their own production
facility, they source diamonds from very many Indian suppliers and they have
played an important role for the past 40 years in assisting their foreign
clients to source a variety of Diamonds From India.
They have clients who visit the Indian
shores and also others who place their orders directly. Many of the esteemed
clients have been doing business with them for more than 30 years.
Specialising
in
Strong and Reliable Source for Diamonds
Provision for assortments as per clients exacting standards Competitive prices
and timely shipments. Regular liasioning with clients and providing market
information.
Client Reference
The Company have been doing business with
some of the Clients from abroad, for more than 30 years, and continues to have
excellent business relations with both the oldest and newest clients.
History
of Diamond
The romance with diamonds started about 2000
years ago, when they were made available in India. Until l729, diamonds came
into the world only from India.
The earliest western account referring to
diamonds is in the year 1292, by the great maritime adventurer Marco Polo.
In ancient India, the earliest reference to Diamonds is in the
"Arthashastra" by "Kautilya" andwas continued upto the
Mughal Dynastry. To this day, Diamond remain a most potent instrument of
desire, captivating the hearts of millions of charming women all over the
world.
In early 20th Century Diamonds were
discovered in South Africa and other African nations. Subsequently, Diamonds
were discovered in the cold climes of Russia, Australia, and other parts of the
world.
The modem era of Diamonds began after the second World War. Since 1962, it has
been consumed widely by people other than Royal families and the truly rich
folks.
With the arrival of the third millennium, the 2000 year old history of diamonds
is expected to be rejuvenated.
Fixed
Assets
- Land
- Factory and
Building
- Ownership
premises
- Boring Well
- Plant and
Machinery
- Equipments
- Air
Conditioners and Refrigerators
- Vehicles
- Electric
Installation and Electric Fittings
- Computers
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] 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.81.70 |
|
Euro |
1 |
Rs.57.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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 |
|
|
>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 |
|