MIRA INFORM REPORT

 

 

Report Date :

17.04.2012

 

IDENTIFICATION DETAILS

 

Name :

MANMOHAN EXPORTS PRIVATE LIMITED

 

 

Registered Office :

228, Panchratna Building, Opera House, Mumbai – 400 004, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

05.05.2009

 

 

Com. Reg. No.:

11-192200

 

 

Capital Investment / Paid-up Capital :

Rs.0.100 million

 

 

CIN No.:

[Company Identification No.]

U51109MH2009PTC192200

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM36543D

 

 

PAN No.:

[Permanent Account No.]

AAGCM0220R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trader, Exporter and Importer of Diamond.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 3000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively new company having moderate track. Profitability of the company appears to be low.  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.

 

INFORMATION PARTED BY

 

Name :

Mr. Deepak Banwarilal Agrawal

Designation :

Director

Contact No.:

91-9820223495

Date :

16.04.2012

 

 

LOCATIONS

 

Registered Office :

228, Panchratna Building, Opera House, Mumbai – 400 004, Maharashtra, India

Tel. No.:

91-22-23690281

Mobile No.:

91-9820223495 (Mr. Deepak Banwarilal Agrawal)

Fax No.:

Not Available

E-Mail :

manmohanexp@gmail.com

mah_anita2004@yahoo.co.in

Area :

400 sq ft

Location :

Rented

 

 

Branch Office :

219, World Diamond Center, Hath Falia, Mahidarpura, Surat, Gujarat, India

 

 

DIRECTORS

 

As on 23.08.2011

 

Name :

Mr. Deepak Banwarilal Agrawal

Designation :

Director

Address :

B-206, Ostwal Oynex, Jesal Park, Bhayander, Thane – 401 105, Maharashtra, India

Date of Birth/Age :

22.07.1981

Qualification :

B.Com

Date of Appointment :

05.05.2009

DIN No.:

02615398

 

 

Name :

Mr. Rajesh Mulchand Ranka

Designation :

Director

Address :

B-704, Veena Sargam Building, Kandivali (West), Mumbai – 400 067, Maharashtra, India

Date of Birth/Age :

01.05.1975

Date of Appointment :

05.05.2009

DIN No.:

02613105

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 23.08.2011

 

Names of Shareholders

 

 

No. of Shares

Deepak Agarwal

 

5000

Rajesh Ranka

 

5000

Total

 

10000

 

As on 23.08.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader, Exporter and Importer of Diamond.

 

 

Exports :

 

Products :

Diamonds

Countries :

v      Israel

v      Hong Kong

v      Belgium

 

 

Imports :

 

Products :

Diamonds

Countries :

v      Dubai

v      Belgium

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

v      M Rajes, Belgium

 

 

Customers :

Wholesalers and Retailers

 

v      Diamonds Sources BMCC

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

v      ING Vysya Bank, Opera House Branch

v      Axis Bank Limited, Nariman Point, Mumbai, Maharashtra, India

v      United Bank of India

 

 

Facilities :

Unsecured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Other debt unsecured

7.692

0.000

Total

7.692

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kabra and Jagetia

Chartered Accountants

Address :

2020, World Trade Center, Near Udhana Dharwaj, Ring Road, Surat – 395 002, Gujarat, India

PAN No.:

ACQPJ6105R

 

 

Associates/ Subsidiaries :

Khushboo Diamonds (Private) Limited, Mumbai

 

 

CAPITAL STRUCTURE

 

As on 23.08.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100000

Equity Shares

Rs.10/- each

Rs.1.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.10/- each

Rs.0.100 million

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

0.100

0.100

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.680

0.218

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

0.780

0.318

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

7.692

0.000

TOTAL BORROWING

 

7.692

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

8.472

0.318

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.021

0.379

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

3.057

5.966

 

Sundry Debtors

 

2568.813

1160.584

 

Cash & Bank Balances

 

10.742

9.632

 

Other Current Assets

 

0.000

0.000

 

Loans & Advances

 

171.514

42.965

Total Current Assets

 

2754.126

1219.147

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

2745.147

1217.984

 

Other Current Liabilities

 

0.000

0.000

 

Provisions

 

0.544

1.246

Total Current Liabilities

 

2745.691

1219.230

Net Current Assets

 

8.435

(0.083)

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.016

0.022

 

 

 

 

TOTAL

 

8.472

0.318

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

 

8000.000

(Approximately)

4245.517

 

 

Other Income

 

NA

2.472

 

 

TOTAL                                     (A)

 

NA

4247.989

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases

 

NA

4249.185

 

 

Operative Expenses

 

NA

0.866

 

 

Office and Administration Expenses

 

NA

3.563

 

 

Selling and Distribution Expenses

 

NA

0.000

 

 

Preliminary Expenses. W/off 

 

NA

0.005

 

 

Variation in Stock

 

NA

(5.966)

 

 

TOTAL                                     (B)

 

NA

4247.653

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

NA

0.336

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

NA

0.001

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

NA

0.335

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

0.218

0.021

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

NA

0.314

 

 

 

 

 

Less

TAX                                                                  (H)

 

NA

0.096

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

0.684

0.218

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

68.40

NA

 

Note: Sales Turnover of 2011 has been increased due to more export.

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

8500.000

 

 

 

 

 

The above information has been parted by Mr. Deepak Banwarilal Agrawal (Director).

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2011

31.03.2010

PAT / Total Income

(%)

 

NA

0.01

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

NA

0.01

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

NA

0.03

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

NA

1.00

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

 

3529.98

3834.06

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

1.00

1.00

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

 

 

- Creditors due small micro enterprises

0.000

0.000

- Creditors due others

2745.147

1217.984

Total

2745.147

1217.984

 

 

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

Yes

8) No. of employees

Yes

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%

Yes

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

Yes

18) Major customers

Yes

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

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

Yes

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.60000.000 millions and is rated amongst the fastest growing in the world. India 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.

OPEERATION/WORKING AND PROSPEECTUS:

 

During the year there is profit of Rs.0.684 million (Previous Year Rs.0.218 million) after claiming depreciation of Rs.0.218 million (Previous Year 0.021 million). There is heavy competition in the market till the see a very good future of the business of the company.

 

TRADE REFERENCES:

 

v      Diamonds Sources BMCC

v      M Rajes, Belgium

 


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 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.51.65

UK Pound

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

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.