MIRA
INFORM REPORT
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Report Date : |
15.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
H K DESIGNS |
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Formerly Known As : |
H K JEWELS |
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Registered Office : |
Unit No. 113, SDF IV, SEEPZ – SEZ, Andheri (East), Mumbai – 400096,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
February, 2005 |
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Legal Form : |
Partnership concern with an unlimited liability of the partners |
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Line of Business : |
Manufacturer of Gold Studded Jewellery |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
New Concern |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a new concern managed by experienced and resourceful
partners. Their trade relations are fair. Payments are reported as correct
and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions with slight caution. |
INFORMATION PARTED
BY
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Name : |
Mr. Kishor Rawal |
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Designation : |
Account Manager |
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Date : |
14.10.2008 |
LOCATIONS
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Registered Office/Factory : |
Unit No. 113, SDF IV, SEEPZ – SEZ, Andheri (East), Mumbai – 400096 |
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Tel. No.: |
91-22-67161616 |
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Fax No.: |
91-22-67536760 |
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E-Mail : |
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Website : |
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Area : |
7221 Sq. ft |
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Location : |
Leased |
PARTNERS
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Name : |
Mr. Dhanshyam Dholakia |
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Designation : |
Partner |
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Date of Birth/Age : |
40 Years |
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Name : |
Mr. Savji Dholakia |
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Designation : |
Partner |
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Date of Birth/Age : |
50 Years |
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Name : |
Mr. Rajesh Dholakia |
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Designation : |
Partner |
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Date of Birth/Age : |
24 Years |
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Name : |
Mr. Dharmesh Dholakia |
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Designation : |
Partner |
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Date of Birth/Age : |
24 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Gold Studded Jewellery |
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Products : |
Gold Studded Jewellery |
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Exports : |
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Products : |
Gold Studded Jewellery |
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Countries : |
USA, Italy, Sweden, Hong Kong, Japan and Switzerland |
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Imports : |
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Products : |
Raw Material |
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Countries : |
Hong Kong, Italy, USA |
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Terms : |
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Selling : |
Credit 180 days |
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Purchasing : |
Credit 180 days |
GENERAL
INFORMATION
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
350 |
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Bankers : |
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Facilities : |
Cash Credit – Rs.330.000 Millions |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M M Nissim and Company Chartered Accountants |
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Parent Company : |
Hari Krishna Exports, Prasad Chamber |
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Associates/Subsidiaries : |
H K Jewels 1st Floor, Lady London, House Wicel, Plot No. 9, Opposite
Seepz, MIDC, Andheri (East), Mumbai – 400093 Line of Business - Domestic
Business Brand Name: KISNA JEWELS |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.137.132 Millions |
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Borrowed : |
-- |
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Total : |
Rs.137.132 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
Expected Sales (2008-09): Rs.1300.000 Millions
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Partners Capital |
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137.132 |
60.599 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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137.132 |
60.599 |
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LOAN FUNDS |
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1] Secured Loans |
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311.164 |
185.797 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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311.164 |
185.797 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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448.296 |
246.396 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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20.759 |
22.181 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.100 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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124.680 |
40.873 |
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Sundry Debtors |
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539.964 |
379.480 |
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Cash & Bank Balances |
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20.828 |
24.140 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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58.555 |
10.649 |
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Total
Current Assets |
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744.027 |
455.142 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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316.181 |
230.914 |
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Provisions |
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0.409 |
0.012 |
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Total
Current Liabilities |
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316.590 |
230.926 |
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Net Current Assets |
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427.437 |
224.216 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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448.296 |
246.397 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
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Sales Turnover |
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1112.908 |
535.725 |
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Other Income |
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13.320 |
1.951 |
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Total Income |
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1126.228 |
537.676 |
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Profit/(Loss) Before Tax |
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199.221 |
111.355 |
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Provision for Taxation |
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0.135 |
0.052 |
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Profit/(Loss) After Tax |
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199.086 |
111.303 |
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Expenditures : |
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Material Consumed |
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847.185 |
385.592 |
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Manufacturing Expenses |
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34.233 |
7.628 |
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Personnel expenses |
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4.970 |
11.853 |
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Administrative and Selling Expenses |
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14.758 |
11.234 |
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Finance Expenses |
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21.446 |
2.889 |
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Depreciation & Amortization |
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4.415 |
7.125 |
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Total Expenditure |
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927.007 |
426.321 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
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PAT / Total Income |
(%) |
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17.68 |
20.70 |
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Net Profit Margin (PBT/Sales) |
(%) |
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17.90 |
20.79 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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26.05 |
23.33 |
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Return on Investment (ROI) (PBT/Networth) |
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1.45 |
1.84 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.58 |
6.88 |
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Current Ratio (Current Asset/Current Liability) |
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2.35 |
1.97 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCES:
Shree Ram Krishna Export, Opera House
T Two International Private Limited, SEEPZ
Gaswin Trading Company
History
Subject was incorporated as H K Jewels in February,
2005 the name was changed to H K Designs (India) in April 2006
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 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.47.71 |
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UK Pound |
1 |
Rs.83.30 |
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Euro |
1 |
Rs.65.12 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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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44 |
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
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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/normal. |
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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