MIRA
INFORM REPORT
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Report Date : |
20.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
C MAHENDRA EXPORTS LIMITED |
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Registered Office : |
1204, Panchratna, 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 : |
04.01.2007 |
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Com. Reg. No.: |
166717 |
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CIN No.: [Company
Identification No.] |
U27205MH2007PLC166717 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC04494A |
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PAN No.: [Permanent
Account No.] |
AAAFC2878E |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Importers of Rough Diamonds and Exporters of Cut and Polished Diamonds
and Gold Jewellery. Diamonds embedded and plain. |
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 5713108 |
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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 has takeover the running business of the erstwhile partnership
concern C Mahendra and Company. 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. |
INFORMATION PARTED
BY
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Name : |
Mr. Prakash K. Mehta |
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Designation : |
Managing Director |
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Date : |
18.03.2008 |
LOCATIONS
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Registered/ Head Office : |
1204, Panchratna, Opera House, Mumbai – 400004, Maharashtra, India |
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Tel. No.: |
91-22-23642509/ 23642510 (6 Lines), 23631487 (6 Lines) |
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Fax No.: |
91-22-23680566/ 23634251 |
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E-Mail : |
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Website : |
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Area : |
850 sq. ft. |
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Location : |
Owned (Commercial) |
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Factory : |
26, Kadampali Society, Near Sneh Milon Garden, Timaliyawad, Nanpura,
Surat – 395001, Gujarat, India |
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Tel. No.: |
91-126-3475444 (8 Lines) |
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Fax No.: |
91-126-3478547 |
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Mumbai Office: |
612, Prasad Chambers, Opera House, Mumbai – 400004, India |
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Tel No.: |
91-22-23645509 |
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Fax No.: |
91-22-23634251 |
DIRECTORS
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Name : |
Mr. Prakash K. Mehta |
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Designation : |
Managing Director |
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Address : |
41 Suraj Apartments, Tardeo Road, Tardeo, Mumbai – 400007,
Maharashtra, India |
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Name : |
Mr. Mahendra C Shah |
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Designation : |
Director |
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Name : |
Mr. Suresh K Mehta |
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Designation : |
Director |
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Name : |
Mr. Pravin C Shah |
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Designation : |
Director |
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Name : |
Mr. Champak K Shah |
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Designation : |
Director |
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Name : |
Mr. Pravin K Mehts |
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Designation : |
Director |
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Name : |
Mr. Jignesh M Shah |
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Designation : |
Director |
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Name : |
Mr. Sandeep M. Shah |
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Designation : |
Director |
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Name : |
Mr. Paras C. Mehta |
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Designation : |
Director |
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Name : |
Mr. Samir P Shah |
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Designation : |
Director |
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Name : |
Mr. Suken P Shah |
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Designation : |
Director |
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Name : |
Mrs. Neema Natwarlal Modi |
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Designation : |
Director |
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Name : |
Mr. Mandar M Ranade |
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Designation : |
Director |
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Name : |
Mr. Kailashchandra Choudhary |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Category |
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Percentage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Importers of Rough Diamonds and Exporters of Cut and Polished Diamonds
and Gold Jewellery. Diamonds embedded and plain. |
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Products : |
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Brand Names : |
CME |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Contract (30 days), Cash and L/C |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1396 (30 – Head Office Staff, 1350 – Plant Workers and 16 – Directors) |
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Bankers : |
Bank of Baroda Mumbai Main Branch, B S Marg, Mumbai – 400023, India Algeme Bank of Nederland N V 14, Veer Nariman Road, Fort, Mumbai – 400001, India State Bank of India Commercial Branch, B Wing, Mittal Court, Nariman Point, Mumbai -
400021 |
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Facilities : |
Hypothecation Rs.140.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Not Available |
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Related Companies : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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45000000 |
Equity Share |
Rs.10/- each |
Rs.450.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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30000000 |
Equity Share |
Rs.10/- each |
Rs.300.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
Note: Company, just filed its Balance Sheet and
Profit and Losses after it became a Private Limited
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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300.000 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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1128.277 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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1428.277 |
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LOAN FUNDS |
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1] Secured Loans |
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5787.926 |
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2] Unsecured Loans |
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1940.599 |
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TOTAL BORROWING |
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7728.525 |
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DEFERRED TAX LIABILITIES |
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0.951 |
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TOTAL |
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9157.753 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1136.643 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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20.284 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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3946.543 |
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Sundry Debtors |
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5748.528 |
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Cash & Bank Balances |
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132.983 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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109.180 |
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Total
Current Assets |
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9937.234 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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1935.932 |
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Provisions |
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2.265 |
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Total
Current Liabilities |
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1938.197 |
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Net Current Assets |
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7999.037 |
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MISCELLANEOUS EXPENSES |
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1.789 |
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TOTAL |
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9157.753 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
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Sales Turnover |
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3251.966 |
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Other Income |
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0.000 |
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Total Income |
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3251.966 |
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Profit/(Loss) Before Tax |
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181.493 |
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Provision for Taxation |
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3.216 |
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Profit/(Loss) After Tax |
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178.277 |
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Total Expenditure |
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3070.473 |
Expected Sales (2007-08): Rs.4000.000 Millions
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
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PAT / Total
Income |
(%) |
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5.48 |
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Net Profit Margin (PBT/Sales) |
(%) |
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5.58 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.64 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
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6.77 |
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Current Ratio (Current Asset/Current Liability) |
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5.13 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Established in 1974 by Mr. Mahendra Shah and Chmpak Mehta as a
partnership under the style of C Mahendra and Company Name was changed to
Mahendra Exports in 1978. Subject becomes a Deemed Public w.e.f. 04.01.2007.
Business:
Subject is ISO 9002 certified. It is a DTC
sight holding company.
Its Dn. C M Creations designs jewellery for the
domestic market.
Subject manufacturer and Exporter 50 cents to
5 carat and above in different shapes – Round Brilliant, Marquise, Oval, Pear,
Emerald, Princess, Radiant, Heart, Emerald sq. radiant etc.
Profile:
Subject is one of a diamantaire group engaged in the Gem and Jewellery
business with a consistent track record of over 30 years in diamond
manufacturing.
In the year 1974 subject was founded by Mr. Mahendra Shah
and Mr. Champak Mehta.
Since 1991, Subject is a Sight holder of the Diamond Trading Company, London of the
De Beers group. They are the first Surat-based DTC Sight holder
Through high business standards and
ethics, impressive business model, combined with highly cordial relations with
DTC, and other direct sources of rough, CM Group has ensured a consistent
supply of rough diamonds for our operations.
To manufacture diamonds with ultimate
brilliance CM Group has employed the latest and most advanced technologies for
manufacturing of diamonds. CM Group has a highly skilled pool of human
resources for their manufacturing operations with a total strength of around
4500 people.
CM Group has its presence in the
diamond studded jewellery business. Their branded jewellery is retailed under
the brand name “Ciemme”. CM Group has several exclusive retail outlets in
Mumbai, Ahmedabad and Surat. They also have tie-up with about 40 other retail
outlets for selling their jewellery.
Awards and achievements:
CM Group is an award winner for
the ‘Best Export
Performance under the Non-DTC Category’
given by The Gem and Jewellery Export Promotion Council in the year 1987.
In the year 1988, the ‘Best Export
Performance under the Non-DTC Category’
award was achieved by the CM group which was given by The Gem and Jewellery
Export Promotion Council.
CM Group wins the ‘Best Export Performance under the Non-DTC
Category’ award in the year of 1989 given
by The Gem and Jewellery Export Promotion Council..
‘Best Export Performance under the Non-DTC Category’ award winner in the year of 1989. The award was given by
The Gem and Jewellery Export Promotion Council.
They also received the GJEPC award for the 3rd position under
the DTC category for 'Best Export
Performance'.
2002-2003:
They again received the GJEPC award for the 3rd position under
the DTC category for 'Best Export
Performance'.
They have also been accredited
with the coveted “ISO-9001:2000”
certificate in the year 2003 by KPMG.
GJEPC award was received again under the DTC category for 'Best Export Performance’ for the 5th
position.
They got award in “Best Export Performance” category for the 3rd position in the year 2005-06.
C M Group has three diamond
manufacturing facilities at Surat and two diamond studded jewellery manufacturing
facilities at Mumbai.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.45 |
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UK Pound |
1 |
Rs.81.20 |
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Euro |
1 |
Rs.63.48 |
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 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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