MIRA INFORM REPORT

 

 

Report Date :

30.10.2007

 

IDENTIFICATION DETAILS

 

Name :

RENAISSANCE JEWELLERY LIMITED

 

 

Registered Office :

Plot No. 36 A & 37, Seepz-Sez, MIDC Marol, Andheri (East), Mumbai - 400 096, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

04.12.1989

 

 

Com. Reg. No.:

11-54498

 

 

CIN No.:

[Company Identification No.]

U36911MH1989PLC054498

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR14877C

 

 

PAN No.:

[Permanent Account No.]

AACCR2148B

 

 

Legal Form :

A closely held public limited liability company.

 

 

Line of Business :

Manufacturer and Exporter of Studded Gold Jewellery

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 2500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Registered Office /

Factory  :

Plot No. 36 A & 37, Seepz-Sez, MIDC Marol, Andheri (East), Mumbai - 400 096

Tel. No.:

91-22-28291019 / 28291458

Fax No.:

91-22-28291699

E-Mail :

nimish.zaveri@renjewellery.com

Website :

http://www.renjewellery.com

 

 

Factory 1 :

G-42, GEM & Jewellery, Complex - III, Seepz, MIDC Marol, Andheri (East), Mumbai - 400 096, Maharashtra, India

 

 

Factory 2 :

Plot No. 2302, Hill Drive, Talaja Road, Bhavnagar, Gujarat - 364 002, India

 

 

DIRECTORS

 

Name :

Mr. Niranjan A. Shah

Designation :

Chairman

 

 

Name :

Mr. Sumit N. Shah

Designation :

Managing Director

 

 

Name :

Mr. Hitesh M. Shah

Designation :

Executive Directors

 

 

Name :

Mr. Neville R.Tata

Designation :

Executive Directors

 

 

Name :

Mr. Amit C. Shah

Designation :

Directors

 

 

Name :

Mr. Bhupen C. Shah

Designation :

Directors

 

 

Name :

Mr.  Arun S. Shah

Designation :

Independent Directors

 

 

Name :

Mr. Veerkumar C. Shah

Designation :

Independent Directors

 

 

Name :

Mr. Jitendra M. Shah

Designation :

Independent Directors

 

 

KEY EXECUTIVES

 

Name :

Mr. S.S.Narayana

Designation :

Company Secretary

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Studded Gold Jewellery

 

 

Products :

Product Description

Item Code No. (ITC Code)

Studded Gold Jewellery

711319-02

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Studded Gold Jewellery

(Kgs)

1800

2775

1236

 

 

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

About 1500

 

 

Bankers :

Bank Of India

State Bank Of India

Punjab National Bank

ICICI Bank

The Bank of Nova Scotia

 

 

Facilities :

Secured Loan

Rs in Millions

Working capital borrowing from Banks

 

(Secured by first charge on pari passu basis by way of Hypothecation and / or pledge of company's current assets both Present and future and by way of joint equitable mortgage of Company’s factory premises and fixed machinery and plant, Furniture and Fixture erected and installed therein and by personal Guarantee of the directors).

575.259

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

J. K. Shah & Company

Chartered Accountants

Tel. No.:

3rd Floor, Flat No. 14, AL-Karim Manzil, 15, Palton Road, Mumbai - 400 001

Mobile No.:

91-22-22615581 / 22620352 / 22620183

Fax No.:

91-22- 2261 9937

 

 

Subsidiaries :

·         Verigold Fine Jewellery Private Limited

  • Renaissance Retail Venture Private Limited

 

 

Associates :

·         N. Kumar Diamonds Exports Limited

·         Fancy Jewellery Private Limited

·         Renaissance Home Retail Private Limited

·         Anika Jewellery Private Limited

  • Sumit Diamonds

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Shares

Rs. 10/- each

Rs. 150.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6517600

Equity Shares

Rs. 10/- each

Rs. 65.176 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

65.176

16.294

16.300

2] Reserves & Surplus

540.121

441.554

373.400

NETWORTH

605.297

457.848

389.700

LOAN FUNDS

 

 

 

1] Secured Loans

575.259

474.774

234.500

2] Unsecured Loans

3.850

2.632

9.000

TOTAL BORROWING

579.109

477.406

243.500

DEFERRED TAX LIABILITIES

0.000

2.113

0.000

 

 

 

 

TOTAL

1184.406

937.367

633.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

178.712

109.996

108.800

Capital work-in-progress

0.000

28.564

9.500

 

 

 

 

INVESTMENT

2.060

4.309

0.300

DEFERREX TAX ASSETS

2.252

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
830.541

421.398

300.800

 

Sundry Debtors
855.848

586.994

471.700

 

Cash & Bank Balances
17.971

16.720

6.000

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
23.012

10.096

10.000

Total Current Assets
1727.372

1035.208

788.500

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
718.482

232.929

267.900

 

Provisions
10.546

7.781

6.000

Total Current Liabilities
729.028

240.710

273.900

Net Current Assets
998.344

794.498

514.600

 

 

 

 

MISCELLANEOUS EXPENSES

3.038

0.000

0.000

 

 

 

 

TOTAL

1184.406

937.367

633.200

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [including other income]

3142.530

1951.854

1631.800

 

 

 

 

Profit/(Loss) Before Tax

145.177

68.798

56.100

Provision for Taxation

[2.273]

0.609

[0.400]

Profit/(Loss) After Tax

147.450

68.189

56.500

 

 

 

 

Export Value

3136.700

1960.218

NA

 

 

 

 

Import Value

2228.184

691.578

NA

 

 

 

 

Total Expenditure

2997.353

1883.056

1575.700

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
4.69

3.49

3.43

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.62

3.52

3.44

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.62

6.01

6.25

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.24

0.15

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.16

1.57

1.33

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.37

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.39.38

UK Pound

1

Rs.80.96

Euro

1

Rs.56.81

 

 

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

YES

--AFFILIATION

YES/NO

YES

--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/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