|
Report Date : |
17.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
R STEINMETZ AND SONS (INDIA) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
1102, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
21.09.1998 |
|
|
|
|
Com. Reg. No.: |
11-116576 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.128.085 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U51900MH1998PTC116576 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR16304B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR0455N |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Importer and Exporter of Diamonds and Precious Stones. |
|
|
|
|
No. of Employees
: |
Not Divulged by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (15) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. There appears
huge 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 considered for business dealings on a secured 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Ashwin Parmar |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-66336666 |
|
Date : |
16.04.2012 |
LOCATIONS
|
Registered Office : |
1102, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra,
India |
|
Tel. No.: |
91-22-56336666/ 40263581/ 66336666 |
|
Fax No.: |
91-22-26328444 |
|
E-Mail : |
DIRECTORS
As on 30.09.2010
|
Name : |
Shahaf Yaakov Zvi Teichman |
|
Designation : |
Director |
|
Address : |
Pieter Coundenberghlaan 24, Edegenm 2650, Belgium |
|
Date of Appointment : |
23.01.2006 |
|
DIN No.: |
02871342 |
|
|
|
|
Name : |
Mr. Lior Levin |
|
Designation : |
Director |
|
Address : |
Top Floor, 92, Fellow Road, London, NW 33JC, United Kingdom |
|
Date of Appointment : |
01.03.2000 |
|
DIN No.: |
02887461 |
|
|
|
|
Name : |
Protopapa Adonis Pavlo |
|
Designation : |
Director |
|
Address : |
101, Inanada Park, 71, 4th, Avenue Inanda, Johannesburg-
2196, South Africa |
|
Date of Appointment : |
17.03.1999 |
KEY EXECUTIVES
|
Name : |
Mr. Ashwin Parmar |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Shekhar Jayantilal Mehra |
|
1 |
|
Akshay Nana Chudasama |
|
1 |
|
Karvos Trading INC, Mauritius |
|
12808520 |
|
Total |
|
12808522 |
Equity Share Break up (Percentage of Total Equity)
As on 30.09.2010
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Importer and Exporter of Diamonds and Precious Stones. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged by the management |
|
|
|
|
Bankers : |
ABN Amro Bank Limited |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
G. M. Kapadia and Company Chartered Accountants |
|
Address : |
1001, Raheja Chambers, 213, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Tel No.: |
91-22-66116611 |
|
Fax No.: |
91-22-66116600 |
|
PAN.: |
AAAFG4713G |
|
|
|
|
Holding Company : |
Karvos Trading Inc. |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14000000 |
Equity Shares |
Rs.10/- each |
Rs.140.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12808522 |
Equity Shares |
Rs.10/- each |
Rs.128.085 Millions |
|
|
|
|
|
Note: Of the above 12808520 equity shares are
held by holding company
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
128.085 |
128.085 |
128.085 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(199.975) |
(202.888) |
(175.453) |
|
|
NETWORTH |
(71.890) |
(74.803) |
(47.368) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
32.491 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
32.491 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.826 |
|
|
|
|
|
|
|
|
TOTAL |
(71.890) |
(74.803) |
(14.051) |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
26.381 |
27.990 |
62.257 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
Carrying Assets Held for Sale |
35.853 |
36.957 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.130 |
0.224 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
164.110
|
96.513 |
471.895 |
|
|
Sundry Debtors |
109.629
|
406.742 |
810.781 |
|
|
Cash & Bank Balances |
19.255
|
9.667 |
74.188 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
10.343
|
13.626 |
39.792 |
|
Total
Current Assets |
303.337
|
526.548 |
1396.656 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
436.919
|
665.222 |
1459.625 |
|
|
Other Current Liabilities |
0.609
|
0.439 |
10.941 |
|
|
Provisions |
0.063
|
0.861 |
2.398 |
|
Total
Current Liabilities |
437.591
|
666.522 |
1472.964 |
|
|
Net Current Assets |
(134.254)
|
(139.974) |
(76.308) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(71.890) |
(74.803) |
(14.051) |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2093.630 |
5197.568 |
4598.463 |
|
|
|
Other Income |
1.320 |
1.402 |
0.434 |
|
|
|
TOTAL |
2094.950 |
5198.970 |
4598.897 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Trading Goods |
2060.598 |
5045.006 |
4444.813 |
|
|
|
Raw Material Consumed |
0.000 |
68.453 |
170.676 |
|
|
|
Manufacturing, Administrative and General Expenses |
26.220 |
77.065 |
69.141 |
|
|
|
Preliminary Expenses |
0.000 |
0.000 |
0.001 |
|
|
|
TOTAL |
2086.818 |
5190.524 |
4684.631 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
8.132 |
8.446 |
(85.734) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2.980 |
23.513 |
9.977 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
5.152 |
(15.067) |
(95.711) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4.403 |
4.139 |
5.587 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
0.749 |
(19.206) |
(101.298) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(202.888) |
(175.453) |
(72.183) |
|
|
|
PRIOR PERIOD ITEMS
|
2.164 |
(8.229) |
(1.972) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(199.975) |
(202.888) |
(175.453) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of goods exported |
378.794 |
1627.914 |
1403.186 |
|
|
TOTAL EARNINGS |
378.794 |
1627.914 |
1403.186 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
CIF Value of Imports |
2342.961 |
4587.047 |
5136.797 |
|
|
TOTAL IMPORTS |
2342.961 |
4587.047 |
5136.797 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.23 |
(2.14) |
(8.06) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.04
|
0.37 |
2.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.25
|
0.29 |
2.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.56
|
2.72 |
6.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.20 |
2.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.09
|
8.91 |
31.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.69
|
0.79 |
0.95 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
in Millions)
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
436.919
|
665.222 |
1459.625 |
|
Total |
436.919
|
665.222 |
1459.625 |
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
No |
|
30) Major Shareholders, if available |
Yes |
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.
-
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.
-
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.
-
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.
-
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.
-
The diamond jewellery industry in India today may be
more than Rs.60000 millions and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
-
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.
-
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.
FINANCIAL RESULTS:
The Net Profit before tax for the year ended 31st March 2010
amounts to Rs.5.152 Millions
Contingent
Liability (As on 31.03.2010):
a)
Contingent Liability on account of dispute Income
tax paid but not provided for Rs.5.400 Millions
b)
Contingent Liability on account of disputed Penalty
levied under section 61(2) of MVAT Act, 2002 where the company has contested
the same and the appeal is pending before Sales Tax Tribunal Rs.4.615 Millions
FIXED ASSETS:
·
Office Premises
·
Air Conditioner
·
Motor Car
·
Furniture and Fitting
·
Office Equipments
·
Computer
·
Leasehold Factory
·
Premises
·
Plant and Machinery
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.51.66 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.67.18 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
15 |
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.