MIRA
INFORM REPORT
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Report Date : |
04.10.2011 |
IDENTIFICATION DETAILS
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Name : |
PRETTY JEWELLERY PRIVATE LIMITED (w.e.f. 25.06.2003) |
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Formerly Known
As : |
DIASOUA JEWELLERY PRIVATE LIMITED |
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Registered
Office : |
Unit No. 402, Block – I, Seepz++, MIDC, Marol, Andheri (East), Mumbai
– 400096, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
16.09.2002 |
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Com. Reg. No.: |
11-137208 |
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Capital
Investment / Paid-up Capital : |
Rs.50.000 Millions |
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CIN No.: [Company Identification
No.] |
U52393MH2002PTC137208 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP16823C |
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PAN No.: [Permanent Account No.] |
AADCP0152G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Exporter of Diamonds and Precious Metals |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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
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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 |
LOCATIONS
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Registered Office : |
Unit No. 402, Block – I, Seepz++, MIDC, Andheri (East), Mumbai –
400096, Maharashtra, India |
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Tel. No.: |
91-22-28291597/ 28291599 |
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Fax No.: |
91-22-28291595 |
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E-Mail : |
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Corporate Office : |
114, Prasad Chambers, Opera House, |
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Tel. No.: |
91-22-28291599 |
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E-Mail : |
DIRECTORS
(AS ON 30.09.2010)
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Name : |
Mr. Sajleshkumar Ramniklal Mehta |
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Designation : |
Chairman Cum Managing Director |
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Address : |
602 Manju Apartment, Narayan Dabholkar Road, Nepaeansea Road, Mumbai –
400006, Maharashtra, India |
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Date of Birth/Age : |
29.11.1949 |
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Date of Appointment : |
16.09.2002 |
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DIN No.: |
00685938 |
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Other Directorship : |
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Name : |
Mr. Viral Narendra Shah |
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Designation : |
Director |
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Address : |
11-AB, Sambav Tirth, Opposite Hira Panna Bhulabhai Desai Road, Mumbai
– 400026, Maharashtra, India |
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Date of Birth/Age : |
02.07.1978 |
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Date of Appointment : |
01.11.2003 |
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DIN No.: |
00685868 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2010)
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Names of Shareholders |
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No. of Shares |
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Sajlesh Ramnik Mehta |
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4995000 |
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Shilpa Sailesh Mehta |
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5000 |
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Total |
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5000000 |
(AS ON 30.09.2010)
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Category |
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Percentage |
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Bodies corporate |
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99.90 |
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Directors or relatives of directors |
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0.10 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Exporter of Diamonds and Precious Metals |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· Vijaya Bank Overseas Branch, Maker Chamber – IV, Ground Floor, 222, Nariman Point,
Mumbai – 400021, · Bank of India Seepz Branch, Mumbai – 400096, Maharashtra, India |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Paresh L. Babaria and Associates Chartered Accountants |
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Address : |
117, 118, Shiv Plaza Shopping Centre, Kandivali Railway Station,
Kandivali (West), Mumbai – 400067, Maharashtra, India |
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PAN No.: |
AAEPB3567D |
CAPITAL STRUCTURE
(AS ON 30.09.2010)
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
50.000 |
50.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
21.119 |
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4] (Accumulated Losses) |
(4.272) |
(12.432) |
0.000 |
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NETWORTH |
45.728 |
37.568 |
71.119 |
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LOAN FUNDS |
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1] Secured Loans |
109.424 |
141.684 |
119.898 |
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2] Unsecured Loans |
46.911 |
33.196 |
29.489 |
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TOTAL BORROWING |
156.335 |
174.880 |
149.387 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.182 |
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TOTAL |
202.063 |
212.448 |
220.688 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
37.999 |
35.591 |
36.923 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
2.802 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
137.317
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106.408 |
99.742 |
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Sundry Debtors |
303.223
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271.678 |
213.767 |
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Cash & Bank Balances |
0.303
|
0.762 |
5.080 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
3.832
|
2.749 |
5.030 |
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Total
Current Assets |
444.675
|
381.597 |
323.619 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditor and Other Current Liabilities |
281.691
|
203.339 |
139.419 |
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Provisions |
2.020
|
1.750 |
0.837 |
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Total
Current Liabilities |
283.711
|
205.089 |
140.256 |
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Net Current Assets |
160.964
|
176.508 |
183.363 |
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MISCELLANEOUS EXPENSES |
0.298 |
0.349 |
0.402 |
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TOTAL |
202.063 |
212.448 |
220.688 |
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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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TOTAL
REVENUE
(A) |
226.189 |
204.401 |
310.072 |
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Less |
EXPENSES |
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TOTAL (B) |
205.838 |
225.477 |
284.716 |
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Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
20.351 |
(21.076) |
25.356 |
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Less |
FINANCIAL
EXPENSES (D) |
12.118 |
9.495 |
7.660 |
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PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
8.233 |
(30.571) |
17.696 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2.876 |
2.720 |
2.802 |
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PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
5.357 |
(33.291) |
14.894 |
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Less |
TAX (H) |
(2.805) |
0.260 |
0.429 |
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PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
8.162 |
(33.551) |
14.465 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(12.432) |
21.119 |
6.654 |
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BALANCE CARRIED
TO THE B/S |
(4.270) |
(12.432) |
21.119 |
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Earnings/ (Loss)
Per Share (Rs.) |
1.63 |
-- |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
3.61
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(16.41) |
4.67 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.11
|
(7.98) |
4.13 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
(0.89) |
0.21 |
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Debt Equity Ratio (Total Liability/Networth) |
|
9.62
|
10.11 |
4.07 |
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Current Ratio (Current Asset/Current Liability) |
|
1.57
|
1.86 |
2.31 |
LOCAL AGENCY FURTHER INFORMATION
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of diamonds
but history says that in the remote past, diamonds were mined only in India.
Diamond production in India can be traced back to almost 8th Century
B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship; mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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The diamond jewellery industry in India today may be
more than Rs.60000 millions and is rated amongst the fastest growing in
the world. India ranks third in the world in domestic diamond consumption.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
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This could be the biggest credibility crisis the
Indian diamond industry has ever faced. Fifteen banks run the risk of losing
Rs.20000.000 Millions lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
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Most of the money borrowed from the banks in the
name of their diamond business has been diverted in real estate and the share market.
The banks are not in a position to seize their properties because in many
cases, these were purchased in the name of their relatives and friends.
NOTE:
The Registered
Office of the company has been shifted from 1114 Prasad Chambers, Tata Road No.2,
Opera House, Mumbai, Maharashtra, India, to the present address w.e.f.
15.02.2008.
FORM
8:
Bankers Charges
Report as per Registry
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Name of the
company |
PRETTY JEWELLERY PRIVATE LIMITED |
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Presented By |
Jointly By Company And Charge Holder |
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1) Date and description of instrument creating the change |
Hypothecation
agreement dated 27.09.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.50.000
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 |
First charge in
favour of the bank as security for the due repayment by the company to the
bank on demand all monies any time payable by the company to the bank in
respect of the aforesaid credit facility : Hypothecation of
plant and machinery comprising of Lazer Machine, Casting Machine, Mixing
Machine, Machines required for Metals Setting, Filing Polishing etc. and
other items such as P. P. Tank Rolling Mill, Vaccum Cleaner, Burner, Air
Compressor totally costing Rs.8.558 Millions including imported component
valued at Rs.6.252 Millions furniture and fixture costing Rs.3.369 Millions
Computer Electronic equipments costing Rs.1.051 Millions Totally costing Rs.
12.978 Millions and other miscellaneous fixed assets valued at Rs.2.643
Millions Hypothecation of
fully insured materials, work in process and finished goods comprising of
studded fold jewellery meant for export and covered under WTPCG of ECGCI and
Hypothecation of export documentary DP/DA bills of usance period not
exceeding 150 days covering shipment of studded gold jewellery drawn strictly
as per confirmed order and covered under WTPSG of ECGCI |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
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5) Name and Address and description of the person entitled to the charge. |
Vijaya Bank Overseas Branch, Maker Chamber – IV, Ground Floor, 222, Nariman Point,
Mumbai – 400021, |
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6) Date and brief description of instrument modifying the charge |
Supplementary
agreement dated 28.02.2005 Agreement to
extend charge on movable property dated 28.02.2005 Both the
agreement constitute a single charge |
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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. |
Original charge
was created on 27.09.2004 for Rs.50.000 Millions, Reg. on 05.11.2004 and Doc.
No. 12 By the present
modification [First Modification] Limit By this
modification the limit enhanced from 50.000 millions to 54.000 millions only
PCL [HYP] limit has enhanced from 10.000 millions to Rs.14.000 Millions other
limit remain same. Security Continued
security as earlier registered Terms and conditions As per sanction
letter of the bank. |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
90148889 |
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Corporate
identity number of the company |
U52393MH2002PTC137208 |
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Name of the
company |
PRETTY JEWELLERY PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Unit No.402, Block I, Seepz ++, MIDC, Marol, Andheri (East), Mumbai –
400096, Maharashtra, India |
|
Type of charge |
·
Immovable Property ·
Book Debts ·
Movable Property ·
Others: Raw Materials, WIP, Finished Good of Gold
Jewellery. |
|
Particular of charge
holder |
Vijaya Bank Overseas Branch, Maker Chamber – IV, 222, Nariman Point, Mumbai –
400001, Maharashtra, India |
|
Nature of description
of the instrument creating or modifying the charge |
·
Hypothecation
Agreement ·
Supplementary
agreement (For Pre-Shipment) ·
Supplementary
agreement (For Post-Shipment) ·
Memorandum
of Entry for creation of EMTD by way of Constructive delivery. |
|
Date of
instrument Creating the charge |
04.03.2011 |
|
Amount secured by
the charge |
Rs.113.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: Pre-shipment:
upto 270 days: BR+1.50= 10.50%, Post-Shipment: DP Bills: beyond transit
period: BR+6=15%, DA Bills: beyond six months: BR+6=15%,Subject to RBI/ H.O.
Guidelines/ Bank's stipulation from time to time. Terms of
repayment : Fund based WC
Limit : Repayable on demand, Facilities for a period of one year from the
date of santion.Subject to
stipulations by the Bank from
time to time Margin : PCL/PCFC(H) :
25%, Subject to
stipulations by the Bank from time to time. Extent and
operation of the charge : First Charge Others : Additional Penal
interest @2% p.a. in case of default. Subject to
stipulations by the Bank from time to time. |
|
Short particulars
of the property charged |
Hypothecation of Plant and Machinery, fixed assets, fully insured raw materials,
WIP, finished goods of studded gold jewellery meant for Export with cover
under WTPCG of ECGCI. Export
documentary DP/DA bills and Book Debts. EMTD of Office
Premises No.1104, 11th Floor, at Prasad Chambers, Opera House, Mum-4,
admeasuring area 243 Sq. ft. in the name of Mr. Shailesh R. Mehta. EMTD of Office
Premises No.1114, 11th Floor, at Prasad Chambers, Opera House, Mum-4,
admeasuring area 312 Sq. ft. in the name of Mr. Shailesh R. Mehta. EMTD of Office Premises No.1103, 11th Floor, at Prasad
Chambers, Opera House, Mum-4, admeasuring area 325 Sq. ft. in the name of Mr.
Shailesh R. Mehta. EMTD of Residential Flat No. 602, 6th Floor, Manju
Appt. N D Road, Mum-6, admeasuring
area 1365 Sq. ft. in the name of Mr. Shailesh R Mehta and Mrs. Shilpa S
Mehta. |
|
Particulars of
the present modification |
By this mod.
Overall Cr. Limit stands at 113.000 Millions comprising of [PCL/ PCFC
(H)-550, PSC (FDBP/ FUDBP)-550, FC : 3.000 Millions] secured by continuing
securities of hypo. of stocks of raw
materials, WIP, semi-finished and finished goods of polished cut and polished
diamonds, studded gold jewellery meant for Export with cover under WTPCG of
ECGCI, Export documentary DP/DA bills and
Continuing Securities of all existing
EMTD by way of constructive delivery. |
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.49.42 |
|
|
1 |
Rs.76.72 |
|
Euro |
1 |
Rs.65.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.