MIRA
INFORM REPORT
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Report Date : |
10.03.2011 |
IDENTIFICATION DETAILS
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Name : |
ELEGANZA JEWELLERY LIMITED |
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Registered Office : |
Unit No. 102 and 103, SDF, Seepz, Andheri East – 400096, Mumbai, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
12.02.1997 |
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Com. Reg. No.: |
11- 105823 |
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CIN No.: [Company
Identification No.] |
U36100MH1997PLC105823 |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer and Exporter of Studded Gold and Diamond
jewelry |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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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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Maximum Credit Limit : |
USD 1922000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. Vishwas |
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Designation : |
Accounts Department |
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Date : |
07.03.2011 |
LOCATIONS
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Registered Office/ Factory : |
Unit No. 102 and 103, SDF, Seepz, Andheri East – 400096, Mumbai, |
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Tel. No.: |
91-22-30882200 |
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Fax No.: |
91-22-28290206/ 66919739 |
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E-Mail : |
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Website : |
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DIRECTORS
AS ON : 23.08.2010
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Name : |
Mr. Shishir B Nevatia |
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Designation : |
Additional Director |
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Address : |
33, |
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Date of Birth/Age : |
07.05.1954 |
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Date of Appointment : |
12.02.1997 |
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Date of Cessation : |
21.11.2007 |
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Name : |
Mr. Kapil S Nevatia |
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Designation : |
Director |
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Address : |
33, |
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Date of Birth/Age : |
16.06.1978 |
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Date of Appointment : |
20.04.2000 |
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Name : |
Mr. Neeraj S Nevatia |
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Designation : |
Director |
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Address : |
33, |
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Date of Birth/Age : |
15.02.1982 |
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Date of Appointment : |
11.01.2007 |
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Name : |
Mr. Vasudev Krishnamurti |
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Designation : |
Director |
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Address : |
Flat No. 601, 6th Floor, Riddhi Plot No.288- B,
Mumbai-400071, |
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Date of Birth/Age : |
18.03.1952 |
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Date of Appointment : |
27.06.2006 |
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Name : |
Mr. Gopal |
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Designation : |
Director |
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Address : |
24/76, |
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Date of Birth/Age : |
24.02.1956 |
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Date of Appointment : |
11.01.2007 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON : 23.08.2010
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Names of Shareholders |
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No. of Shares |
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Shishir B Nevatia |
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206800 |
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Kavita S Nevatia |
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89100 |
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Kapil S Nevatia |
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57000 |
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NSN Jewellers Private Limited, |
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367500 |
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Neeraj Nevatia |
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37300 |
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Neha Nevatia |
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500 |
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KSN Trading Private Limited, |
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367500 |
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Total |
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1125700 |
AS ON : 23.08.2010
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Equity Share
Breakup |
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Category |
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Percentage
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Bodies corporate (not mentioned above) |
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65.30 |
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Directors or relatives of directors |
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34.70 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Studded Gold and Diamond
jewelry |
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Products : |
ITC Code |
Product
Description |
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711319.03 |
Studded Gold and Diamond Jewellery |
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PRODUCTION STATUS AS ON : 31.03.2009
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Jewellery |
Nos. |
145400 |
145400 |
222565 |
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GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the Management. |
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Bankers : |
ING Vysya Bank Limited, 103/ 104 A- Wing I Floor, Floral |
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Facilities : |
Note :
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Banking
Relations : |
-- |
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Auditors : |
A.K. Murarka and Company Chartered Accountant |
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Address : |
A 104, Hemu Classic, |
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Subsidiary Company : |
Branaghan Corporates |
CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Share |
Rs.10/- Each |
Rs.20.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1125700 |
Equity Share |
Rs.10/- Each |
Rs.11.257
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
11.257 |
11.257 |
11.257 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
469.213 |
348.724 |
275.449 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
480.470 |
359.981 |
286.706 |
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LOAN FUNDS |
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1] Secured Loans |
16.166 |
0.000 |
69.876 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
16.166 |
0.000 |
69.876 |
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DEFERRED TAX LIABILITIES |
1.292 |
1.085 |
0.688 |
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TOTAL |
497.928 |
361.066 |
357.270 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
32.109 |
27.133 |
25.321 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
181.496 |
179.359 |
0.266 |
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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 |
202.204
|
137.335 |
144.371
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Sundry Debtors |
213.081
|
115.782 |
264.051
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Cash & Bank Balances |
74.996
|
75.712 |
74.540
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Other Current Assets |
0.000
|
0.000 |
5.106
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Loans & Advances |
30.506
|
18.497 |
13.635
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Total
Current Assets |
520.787
|
347.326 |
501.703
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
16.461
|
17.055
|
13.193
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Sundry Creditors |
110.885 |
65.806 |
93.070 |
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Provisions |
109.535
|
110.394
|
64.342
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Total
Current Liabilities |
236.881
|
193.255 |
170.605
|
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Net Current Assets |
283.906
|
154.071 |
331.098
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MISCELLANEOUS EXPENSES |
0.417 |
0.502 |
0.585 |
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TOTAL |
497.928 |
361.066 |
357.270 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
916.742 |
916.736 |
1150.912 |
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Other Income |
33.212 |
10.452 |
7.092 |
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TOTAL (A) |
949.954 |
927.188 |
1158.004 |
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Less |
EXPENSES |
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Raw Material Consumed |
571.888 |
525.628 |
694.751 |
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Purchases of Traded Goods |
3.337 |
7.537 |
1.472 |
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Manufacturing and other Expenses |
170.078 |
191.629 |
188.623 |
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Preliminary Expenses W/off |
0.083 |
0.083 |
0.083 |
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Increase/Decrease in stock |
(30.693) |
11.533 |
(23.504) |
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TOTAL (B) |
714.693 |
736.410 |
861.425 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
235.261 |
190.778 |
296.579 |
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Less |
FINANCIAL EXPENSES (D) |
1.794 |
3.242 |
4.617 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
233.467 |
187.536 |
291.962 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.762 |
5.619 |
4.470 |
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PROFIT BEFORE
TAX (E-F) (G) |
227.705 |
181.917 |
287.492 |
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Less |
TAX (I) |
1.508 |
3.060 |
2.330 |
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PROFIT AFTER TAX
(G-I) (J) |
226.197 |
178.857 |
285.162 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
267.013 |
211.737 |
354.593 |
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Less |
APPROPRIATIONS |
|
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Transfer to General Reserve |
23.000 |
18.000 |
30.000 |
|
|
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Dividend |
14.957 |
15.305 |
22.800 |
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|
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Tax on Dividend |
90.056 |
90.056 |
45.028 |
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BALANCE CARRIED
TO THE B/S |
364.502 |
267.013 |
211.737 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
901.504 |
901.161 |
1142.364 |
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TOTAL EARNINGS |
901.504 |
901.161 |
1142.364 |
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IMPORTS |
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Raw Materials |
NA |
254.651 |
361.241 |
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Capital Goods |
NA |
3.862 |
6.100 |
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TOTAL IMPORTS |
NA |
258.513 |
367.341 |
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Earnings Per
Share (Rs.) |
200.32 |
158.69 |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
23.81 |
19.29 |
24.77
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Net Profit Margin (PBT/Sales) |
(%) |
24.83 |
19.84 |
24.98
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Return on Total Assets (PBT/Total Assets} |
(%) |
41.18 |
48.58 |
54.55
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Return on Investment (ROI) (PBT/Networth) |
|
0.47 |
0.50 |
1.00
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Debt Equity Ratio (Total Liability/Networth) |
|
0.52 |
0.53 |
0.60
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Current Ratio (Current Asset/Current Liability) |
|
2.19 |
1.79 |
2.94
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LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details :
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors for Goods |
106.647 |
62.808 |
-- |
|
Sundry Creditors for Expenses |
4.238 |
2.998 |
-- |
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Sundry Creditors Due to Others |
-- |
-- |
93.070 |
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Total |
110.885 |
65.806 |
93.070 |
REVIEW OF OPERATIONS:
The Company
continued to face difficult conditions for the most part of 2009-10. While
there was a gradual revival of demand for the Company's product in select areas
in terms of enquiries from its existing and new customers, the sale cycle did
not significantly risen. Also, some of the traditional and existing large
customers of the Company, due to difficult economic conditions being faced by
them, continued with their reduced level of off take of the goods from the
Company. The Rupee also strengthened during the year against the dollar and
Euro, resulting in lower export realizations. Inspite of these adverse factors
the turnover increased marginally from Rs.916.736 millions to Rs. 916.743
millions. The pre-profit jumped to Rs. 226.197 millions from Rs. 178.858
millions due to strict control over manufacturing cost. The Company expects
that across-the-board growth in all its offerings will happen from the latter
part of 2010-11 and is confident of getting back to its growth mode during this
year itself.
SUBSIDAIARY COMPANY:
The Company's wholly
owned subsidiary,
Form 8
|
Name of the company |
ELEGANZA JEWELLERY LIMITED |
|
Presented By |
ING Vysya Bank
Limited |
|
1) Date and description of instrument creating the change |
General
Hypothecation Agreement dated 11.08.2005. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.45.000
millions |
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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 |
Hypothecation by
way of 1st charge all
present and future stock of the company i.e. raw material, work in
process and finished goods, machinery. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @3% below
IVRR for PCL and TL and @3.50% below IVRR with monthly rest or such other
rates as may be determined by the bank from time to time. Present IVRR is 12%
p.a Security to
secure PCL Rs.15.000 millions TL Rs.15.000 millions TL Rs.15.000 millions
together with interest, cost, expenses, charge, commission etc. |
|
5) Name and Address and description of the person entitled to the charge. |
ING Vysya Bank Limited, 103/ 104 A- Wing I Floor, Floral |
|
6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90351073 |
|
Corporate
identity number of the company |
U36100MH1997PLC105823 |
|
Name of the company
|
ELEGANZA JEWELLERY LIMITED |
|
Address of the
registered office or of the principal place of business in |
Unit No. 102 and 103, SDF, Seepz, Andheri East – 400096, Mumbai, |
|
Type of charge |
Movable Property Floating Charge Other |
|
Particular of
charge holder |
ING Vysya Bank Limited, 103/ 104 A- Wing I Floor, Floral E-Mail : andheribr@ingvyasyabank.com
|
|
Nature of
description of the instrument creating or modifying the charge |
Supplementary
general hypothecation agreement Agreement for
bills finance. |
|
Date of instrument
Creating the charge |
13.07.2007 |
|
Amount secured by
the charge |
Rs.85.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest PCL: IVRR- 4.5%
and PCFC: As per bank norms. PSL/ EBRD : For
PSL : IVRR- 3.50%, for EBRD : As per bank norms PSL/ EBRD
(additional Peak Season Facility) :As per bank norms. TL: IVRR -3%p.a Terms of Repayment PCL/ PCFC/ PSL/
EBRD : On Demand PSL/EBRD
(additional Peak Season Facility) : On Demand TL : No Charge Margin PSL/EBRD : Nil PSL/EBRD
(additional Peak Season Facility) : 25% for PCL and Nil margin for PSL PCL/PCFC: 25% TL : 25% Extent and Operation of the charge First charge on the
stock and fixed assets of the company and bills covered under export
transactions. |
|
Short particulars
of the property charged |
Fixed assets and
stock of the company stored at company premises or elsewhere both present and
future, Bills covered under export transactions from time to time |
Fixed Assets
v Plant and Machinery
v Furniture and Fixture
v Vehicles
v Computer
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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. 45.02 |
|
|
1 |
Rs. 72.70 |
|
Euro |
1 |
Rs. 62.54 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.