%20LIMITED-%2001-Nov-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
1.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
FINE JEWELLERY (INDIA) LIMITED |
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Registered Office : |
Unit G – 6, Gem and Jewellery Block, Santacruz, Electronics Exports
Procesing Zone, Andheri (East),
Mumbai – 400 096, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.04.1987 |
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Com. Reg. No.: |
11 - 43293 |
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CIN No.: [Company
Identification No.] |
U99999MH1987PLC043293 |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers and Exporters of Diamond Studded Gold Jewellery. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit: |
1959400 |
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Status : |
Very 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 owned by Kothari Family. It is one of the largest exporters of diamond jewellery in India. Directors are reported as experienced and respectable businessmen. Their trade relations are fair. Payments are usually correct and as per commitments The company can be considered normal for business dealings at usual trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Swaminathan |
|
Designation : |
General Manager in Finance |
LOCATIONS
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Registered Office : |
Unit No. G-6, Gems and Jewllery Complex, Seepz, Andheri
(East), Mumbai – 400096, Maharashtra, India |
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Tel. No.: |
91-22-56910669 / 28293010-20 |
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Fax No.: |
91-22-28292728 / 28293248 |
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E-Mail : |
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Website : |
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Location : |
Leased (99 Years) |
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Export Unit : |
Plot No. GJ – 12, Seepz, Andheri (East), Mumbai – 400 096,
Maharashtra, India |
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Tel No.: |
91-22-30804080 |
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Fax No: |
91-22-28292728 |
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Domestic Unit : |
Plot No. 14, WICEL, Opp. Seepz, MIDC, Andheri (East), Mumbai – 400
093, Maharashtra, India |
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Tel No.: |
91-22-30813939 |
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Fax No.: |
91-22-30813999 |
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International
Office : |
FJIL Inc, 608, 5th Avenue, Suite # 405 A, New York – 10020,
US |
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Tel No.: |
+1-212-265 3707/ 265 7787 |
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Fax No.: |
+1-212-265 7797 |
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Customer Care
(24*7) : |
+1-646-452 9339 |
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E-mail: |
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International
Office : |
Nirvana Inc, 4923 East, 71st Street, Tulsa, Oklahoma –
74136 |
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Tel No.: |
+1-918-6648471 |
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Fax No.: |
+1-918-6646277 |
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International
Office : |
Thangam Jewel LLC, 301, Gold Land Building, Dubai – UAE |
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Tel No.: |
+97-1-42 258019 |
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Mobile No.: |
+97-1-50 4553795 |
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Fax No.: |
+97-1-42 260495 |
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E-mail: |
DIRECTORS
|
Name : |
Mr. Premkumar Lalitkumar Kothari |
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Designation : |
Chairman and Managing Director |
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Address : |
131-C Rambha, 66, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
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Date of Birth/Age : |
18.05.1951 |
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Date of Appointment : |
29.04.1987 |
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Name : |
Mr. Rajesh Lalitkumar Kothari |
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Designation : |
Director |
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Address : |
112 - A, Embassy Apartments Nepeansea Road, Mumbai – 400006,
Maharashtra, India |
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Date of Birth/Age : |
13.03.1956 |
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Date of Appointment : |
01.07.1989 |
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Name : |
Mr. Lalitkumar Chimanlal Kothari |
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Designation : |
Director |
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Address : |
112 A, Embassy Apartments Nepeansea Road, Mumbai – 400006,
Maharashtra, India |
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Date of Birth/Age : |
23.08.1924 |
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Date of Appointment : |
29.12.1997 |
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Name : |
Mr. Saurabh Surendra Bhow |
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Designation : |
Director |
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Address : |
21, Sumadhir Co. Op. Housing Society, Near Manek baug Society,
Ambawadi, Ahmedabad – 380015, Gujarat, India |
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Date of Birth/Age : |
24.07.1956 |
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Date of Appointment : |
29.12.1997 |
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Name : |
Mr. Sohil Premkumar Kothari |
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Designation : |
Director |
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Address : |
131-C Rambha, 66, Nepean Sea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
11.12.1978 |
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Date of Appointment : |
01.09.2001 |
KEY EXECUTIVES
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Name : |
Mr. Vinayak Motiram Shirsat |
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Designation : |
Company Secretary |
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Address : |
9/A/401 Ekta C. H. S. Mhada Colony, Chandivali, Andheri [East], Mumbai
– 400072, Maharashtra, India |
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Date of Birth/Age : |
03.06.1965 |
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Date of Appointment : |
02.07.2001 |
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Name : |
Mr. Shrenik Nanalal
Shah |
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Designation : |
Chief Executive
Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.07.2005
|
Names of
Shareholders |
No. of Shares |
|
Premkumar Lalitkumar Kothari |
1815175 |
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Smita Premkumar Kothari |
502950 |
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Premkumar Lalitkumar Kothari – HUF |
22050 |
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Sohil Premkumar Kothari |
2463822 |
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Viral Premkumar Kothari |
612150 |
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Nilesh Surendra Bhow |
2718450 |
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Premkumar Lalitkumar Kothari and Sohil Premkumar Kothari |
24000 |
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Total |
8158597 |
As on 31.03.2007
|
Equity Share
Breakup |
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|
Category |
Percentage of
Holding |
|
Foreign holdings [Foreign institutional investors, Foreign
Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate
bodies or others] |
33.00 |
|
Directors or relatives of directors |
67.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Diamond Studded Gold Jewellery. |
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Products : |
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Exports : |
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Countries : |
v Middle East v Europe v USA |
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Terms: |
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Selling : |
Credit |
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Purchasing : |
Credit ( 90 days) |
PRODUCTION STATUS
As on 31.03.2007
|
Particulars |
Unit |
Installed
Capacity |
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Jewellery |
Kgs. |
2941.00 |
|
Studded Mountings |
Pcs. |
9.00 |
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Cut and Polished Diamonds |
Cts. |
27925.00 |
GENERAL
INFORMATION
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Customers : |
v Wholesalers v Retailers |
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No. of Employees : |
500 |
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Bankers : |
103/ 104, Floral Deck Plaza, MIDC Central Road, Andheri [East], Mumbai
– 400 093, Mahgarashtra, India
Offshore Banking Unit, Seepz, Mumbai – 400093, Maharashtra, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Kantilal Parekh and Company Chartered Accountants |
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Address : |
606, Om Chambers, Kemps Corner, Mumbai – 400036,
Maharashtra, India |
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Sister Concerns
: |
v Fine Jewellery Manufacturing Limited |
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Associates/Subsidiaries : |
v Nicole Rene Jewellery Limited v Fjil
Inc. USA – Incorporated in USA |
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v |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs. 120.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8158597 |
Equity Shares |
Rs.10/- each |
Rs. 81.586 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 |
81.586 |
81.586 |
108.738 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
310.294 |
298.140 |
333.544 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
391.880 |
379.726 |
442.282 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
318.109 |
269.354 |
303.237 |
|
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2] Unsecured Loans |
45.823 |
45.268 |
48.957 |
|
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TOTAL BORROWING |
363.932 |
314.622 |
352.194 |
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DEFERRED TAX LIABILITIES |
12.671 |
10.813 |
5.948 |
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TOTAL |
768.483 |
705.161 |
800.424 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
70.106 |
73.945 |
82.473 |
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Capital work-in-progress |
0.000 |
0.423 |
0.000 |
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INVESTMENT |
4.585 |
4.585 |
4.585 |
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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 |
439.289
|
409.510
|
579.345 |
|
|
Sundry Debtors |
249.809
|
373.284
|
315.205 |
|
|
Cash & Bank Balances |
5.179
|
12.527
|
89.401 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
32.849
|
28.688
|
34.379 |
|
Total
Current Assets |
727.126
|
824.009
|
1018.330 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
64.608
|
217.860
|
288.464 |
|
|
Provisions |
8.061
|
4.444
|
16.500 |
|
Total
Current Liabilities |
72.669
|
222.304
|
304.964 |
|
|
Net Current Assets |
654.457
|
601.705
|
713.366 |
|
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|
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MISCELLANEOUS EXPENSES |
39.335 |
24.503 |
0.000 |
|
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|
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|
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TOTAL |
768.483 |
705.161 |
800.424 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
761.044 |
978.438 |
1211.620 |
|
|
Other Income |
6.856 |
6.039 |
5.295 |
|
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Total Income |
767.900 |
984.477 |
1216.915 |
|
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|
|
|
|
|
|
Profit/(Loss) Before Tax |
17.626 |
25.680 |
43.658 |
|
|
Provision for Taxation |
5.475 |
9.123 |
18.674 |
|
|
Profit/(Loss) After Tax |
12.151 |
16.557 |
24.984 |
|
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|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
479.691 |
606.195 |
954.365 |
|
|
Increase/(Decrease) in Finished Goods |
17.427 |
74.581 |
(73.463) |
|
|
Salaries, Wages, Bonus, etc. |
70.759 |
81.779 |
82.403 |
|
|
Managerial Remuneration |
1.230 |
1.230 |
1.136 |
|
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Payment to Auditors |
0.589 |
0.525 |
0.546 |
|
|
Interest |
35.779 |
24.882 |
23.885 |
|
|
Insurance Expenses |
1.227 |
1.700 |
2.440 |
|
|
Power & Fuel |
4.018 |
5.897 |
6.737 |
|
|
Depreciation & Amortization |
11.473 |
12.554 |
13.951 |
|
|
Other Expenditure |
128.081 |
149.454 |
161.257 |
|
Total Expenditure |
750.274 |
958.797 |
1173.257 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.88 |
0.81 |
0.82 |
|
Long
Term Debt-Equity Ratio |
0.12 |
0.12 |
0.12 |
|
Current
Ratio |
1.71 |
1.65 |
1.60 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.26 |
5.62 |
7.16 |
|
Inventory |
1.79 |
1.98 |
1.92 |
|
Debtors |
2.44 |
2.84 |
3.80 |
|
Interest
Cover Ratio |
1.41 |
2.24 |
2.49 |
|
Operating
Profit Margin(%) |
9.43 |
7.50 |
7.17 |
|
Profit
Before Interest And Tax Margin(%) |
7.92 |
6.22 |
6.02 |
|
Cash
Profit Margin(%) |
3.10 |
3.53 |
3.35 |
|
Adjusted
Net Profit Margin(%) |
1.59 |
2.25 |
2.20 |
|
Return
On Capital Employed(%) |
8.70 |
8.32 |
8.34 |
|
Return
On Net Worth(%) |
3.14 |
5.35 |
6.21 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
v Tribhuvandas Bhimji Jewellery
v Nicole Rene Jewellery Limited
Form 8
|
This form is for |
Modification of
charge |
|
Charge identification
number of the charge to be modified |
80001924 |
|
Corporate
identity number of the company |
U99999MH1987PLC043293 |
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Name of the
company |
FINE JEWELLERY (INDIA) LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
G-6, Gems and Jewllery Complex, Seepz, Andheri (East),
Mumbai – 400096, Maharashtra, India |
|
Type of charge |
v Immovable
Property v Others |
|
Particular of
charge holder |
Name: ING Vysya Bank Limited Address: # 103/104, A Wing, 1st Floor, Floral Deck Plaza,
MIDC Central Road, Andheri [East] City: Mumbai State : Maharashtra ISO country code: IN Pin code: 400093 e-mail ID: andheribr@ingvysyabank.com
|
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental memorandum of Entry |
|
Date of
instrument Creating the charge |
25.04.2007 |
|
Amount secured by
the charge |
Rs. 403.500
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Extent operation
of the charge First charge on
the immovable property of the company |
|
Date of latest
modification prior to the present modification |
01.12.2006 |
|
Particulars of
the present modification |
The credit limit
additionally secured by equitable mortgage of immovable property of the
company. |
Form 8
|
Name of the company |
FINE JEWELLERY (INDIA) LIMITED |
|
Presented By |
State Bank of India, Offshore Banking Unit, Seepz, Mumbai |
|
1) Date and description of instrument creating the change |
Deed of Guarantee
for overall Limit dated 18.03.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
US $ 2.44 million
|
|
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 |
This charge is
created towards the corporate guarantee given to state Bank of India, Offshore
Banking Unit, Seepz, Mumbai by Fine Jewellery (India) Limited (Guarantee
Company) to secure the term loan facilities of US $ 2.44 million availed of
by Fine Jewellery Manufacturing Limited (Borrower Company). |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
ROI: As would be
determined by Bank from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India, Offshore Banking Unit, Seepz, Mumbai |
Fixed Assets
v Factory Building
v Plant and Machinery
v Factory Equipment
v Tools and
Instrument
v Electrical
installation
v Furniture and Fixture
v Mice Machinery
v Office Equipment
v Exhaust Fan
v Water Cooler
v Electrical Fans
v Air Conditioner
v Vehicle
v Motor Car
v Scooter
v Cycle
v Computer
v
Refrigerator
As Per Website Details:
Established in 1987, Fine
Jewellery was among the first six factories to set up the Jewellery unit in Seepz. Fine Jewellery, a
technologically- advanced organisation driven by the vision to be a leader in
the mass produced diamond jewellery segment has now grown into a multi-million
dollar enterprise, converting aspirations to reality of diamond jewellery
connoisseurs in more than 17 countries
such as The United States, UK, Australia and the Middle East.
CONTINUOUS DEVELOPMENT:
%20LIMITED-%2001-Nov-2008_files/image004.gif){kind=small}
The consumers are the fulcrum around which all the efforts are
concentrated. They believe in the professional commitment of Purity, Clarity, Innovation
and above all designing excellence.
The design team that brought the ‘Invisible’ diamond setting technique
to Indian shores using CAD/CAM technology has pioneered many a design
revolution, including the patented ‘Mystery Setting’. They have been
instrumental in they being bestowed with a plethora of prestigious awards at
events organized by eminent organizations like De Beers, GJEPC (Gem and
Jewellery Export Promotion Council), and magazines like “Retail Jeweller’ to
name a few.
The organizational philosophy is reflected in the multi-tier quality control
system and in the endeavor to consolidate the position as the market leader in
the area of designer wear diamond jewellery.
Being one of the largest exporters of diamond jewellery, the unparalleled
global industry experience is reflected in commitment to deliver outstanding
products, world-class customer service, with processes to ensure that the name
represents the highest standards of professional quality throughout the world.
Today Fine Jewellery employs 1500 people with the state- of art manufacturing
facilities spread over 66000 sq. feet.
Press
Link
Fine Jewellery
mulls Rs 1150.000 millions capex, IPO likely, Business Standard
Press Trust of India / Mumbai June 08, 2008, 16:51 IST
Leading diamond jewellery exporter, Fine Jewellery India Limited (FJIL),
has drawn up a Rs 1150.000 millions capital expenditure plan over the next
three years to set up retail outlets as well as increasing manufacturing
capacity, a top company official said.
They are setting up 30 stand-alone stores for 'Nirvana' brands in 10
major towns in the next three years and increasing the manufacturing capacities
to supply to these retail outlets. The capex is estimated at Rs 1150.000
millions Fine Jewellery's Director, Sohil Kothari,
said.
The company proposes to raise $25 million through private equity in the
next six months. It is also considering raising funds through an initial public
offer (IPO), Kothari said.
The "Nirvana" brand, which is positioned as a lifestyle brand,
has been the number two brand in the domestic market in the branded jewellery
segment. It will now be sold through exclusive jewellery
boutiques.
The company has decided to expand its domestic retail business in view
of the 18 to 20 per cent growth in the domestic jewellery market, Kothari
said.
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 :
The 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.
The 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.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|