MIRA INFORM REPORT

 

 

Report Date :

17.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SHREE RAMKRISHNA EXPORTS PRIVATE LIMITED

 

 

Registered Office :

EE-6011, Bharat Diamond Bourse, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012 (Provisional) (Partnership Firm)

 

 

Date of Incorporation :

02.04.2012

 

 

Com. Reg. No.:

229115

 

 

Capital Investment / Paid-up Capital :

Rs.100.000 Millions

 

 

CIN No.:

[Company Identification No.]

U36912MH2012PTC229115

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturer and Exporter of Polished Diamonds.

 

 

No. of Employees :

3500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a successor of Shree Ramkrishna Export a reputed partnership concern started in the year 1970.

 

Trade relations are reported as fair. Business is active. Payments are reported to 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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Rajiv B. Shah

Designation :

Chief Financial Officer

Contact No.:

91-9820281535

Date :

14.04.2012

 

 

LOCATIONS

 

Registered Office :

EE-6011, Bharat Diamond Bourse, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400005, Maharashtra, India

Tel. No.:

91-22-40405555

Mobile No.:

91-9820848420 (Mr. Jigneshbhai)

91-9820281535 (Mr. Rajiv Shah)

Fax No.:

91-22-40405500

E-Mail :

law@lemonconsulting.net

info@srkexport.in

Website :

http://www.srkexport.in

Area :

6000 sq. ft.

Location :

Owned

 

 

Factory 1:

99, Vastadevdi Road, Gayaytri Temple, Katargam, Surat – 395004, Gujarat, India

Tel. No.:

91-261-4040555

Fax No.:

91-261-4040550

Email:

surat@srkexport.in

Area :

1500 sq. ft.

Location :

Owned

 

 

Factory 2:

278, Pajwa Falia Green Lines, Katargam, Surat – 395 004, Gujarat, India

Tel. No.:

91-261-4040666

Fax No.:

91-261-2537246

Area :

50000 sq. ft.

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Govind Laljibhai Dholakia

Designation :

Director

Address :

3, Vrundavan Dham, Society, Near Hariom Bunglow, Katargam Road, Surat - 395004, Gujarat, India

Date of Birth/Age :

07.11.1947

DIN No.:

00524146

 

 

Name :

Mrs. Champaben Govindbhai Dholakia

Designation :

Director

Address :

3, Vrundavan Dham, Society, Near Hariom Bunglow, Katargam Road, Surat - 395004, Gujarat, India

Date of Birth/Age :

23.09.1954

DIN No.:

00524249

 

 

Name :

Mr. Jayanti Vashrambhai Narola

Designation :

Director

Address :

70, Kantareshwar Society, Katargam, Surat - 395004, Gujarat, India

Date of Birth/Age :

05.06.1964

DIN No.:

00587167

 

 

Name :

Mr. Rahul Nagjibhai Dholakia

Designation :

Director

Address :

40 years

Date of Birth/Age :

2701 – A, Raheja Atlantis Co-operative Housing Society Limited, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400018, Maharashtra, India

 

 

Name :

Mr. Arjan Laljibhai Dholakia

Designation :

Director

Address :

8-B, Vallabh Nagar Society, Varachha Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

47 years

 

 

Name :

Mr. Shreyan Govindbhai Dholakia

Designation :

Director

Address :

3, Vrundavan Dham, Society, Near Hariom Bunglow, Katargam Road, Surat - 395004, Gujarat, India

Date of Birth/Age :

21.05.1987

DIN No.:

00523418

 

 

Name :

Mr. Vashrambhai Bhurabhai Narola

Designation :

Director

Address :

70, Kantareshwar Society, Katargam, Surat - 395004, Gujarat, India

Date of Birth/Age :

69 years

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajiv B. Shah

Designation :

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 15.03.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Champaben Govindbhai Dholakia

 

1000000

Govind Laljibhai Dholakia

 

3000000

Arjan Laljibhai Dholakia

 

1500000

Jayanti Vashrambhai Narola

 

1500000

Rahul Nagjibhai Dholakia

 

1000000

Vashrambhai Bhurabhai Narola

 

1000000

Shreyan Govindbhai Dholakia

 

1000000

 

 

 

Total

 

 

10000000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Polished Diamonds.

 

 

Exports :

 

Products :

Diamonds

Countries :

·         Hong Kong

·         China

·         US

 

 

Imports :

 

Products :

Ruff Diamond

Countries :

·         Israel

·         Belgium 

 

 

Terms :

 

Selling :

Cash and Credit (30-60 days)

 

 

Purchasing :

Cash and Credit (30-60 days)

 

 

GENERAL INFORMATION

 

Suppliers :

·         Harry Windtom Inc, USA

 

 

Customers :

Wholesalers

 

·         Aarajav Diamonds India Private Limited, Bombay

 

 

No. of Employees :

3500 (Approximately)

 

 

Bankers :

·         State Bank of India

BKC, Diamond Branch, India

 

·         State Bank of Bikaner and Jaipur

Fort Branch, Mumbai. Maharashtra, India

 

·         Bank of India

·         State Bank of Patiala

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Suresh Surana Associates

Chartered Accountant

Address :

Andheri, Mumbai, Maharashtra, India

 

 

Marketing Affiliate :

·         S. Goldi (Asia) Limited

Room No.901, 9/F Chevalier House, 45-51, Chatham Road South, Tsim Sha Tshui, Kowloon, Hong Kong

Tel No.: +85231705172

Fax No.: +85231714224

Email : info@sgoldi.com

 

 

Associates/Subsidiaries :

·         The Jewelry Company

GJ-9, SDF VII Seepz Andheri (East), Mumbai – 400096, Maharashtra, India

Tel No.: 91-22-42308888

Fax No.: 91-22-66936655

Email:  info@thejewelrycomp.com

 

·         Jewel Goldi (India)

A-301-302, Floral Deck Plaza, Central Road, MIDC, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel No.: 91-22-42316666

Fax No.: 91-22-42316677

Mobile No.: 91-9820531006

Email: jgi@jewelgoldi.com

 

 

CAPITAL STRUCTURE

 

(AS ON 15.03.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital : Rs.100.000 Millions

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Expected Sales (2012-13): Rs.25000.000 Millions

 

The above information has been parted by Mr. Rajiv Shah.

 

 

SHREE RAMKRISHNA EXPORT

 

(PARTNERSHIP FIRM)

 

PROVISIONAL BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Partner’s Fixed Capital

 

100.000

1868.202

2] Partner’s Current Account

 

2100.000

0.000

3] Share Application Money

 

0.000

0.000

4] Reserves & Surplus

 

0.000

0.000

5] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

2200.000

1868.202

LOAN FUNDS

 

 

 

1] Secured Loans

 

3480.314

3365.661

2] Subordinated Loans from Partners

 

595.176

0.000

TOTAL BORROWING

 

4075.490

3365.661

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

6275.490

5233.863

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

1198.740

631.181

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

168.461

93.461

DEFERRED TAX ASSETS

 

1.655

1.655

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

4032.459

3560.650

 

Sundry Debtors
 

2816.322

2259.815

 

Cash & Bank Balances
 

85.132

116.366

 

Other Current Assets
 

3.009

2.368

 

Loans & Advances
 

1217.646

671.748

Total Current Assets
 

8154.568

6610.947

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors  and Other Current Liabilities
 

2619.869

1725.316

 

Provisions
 

628.065

378.065

Total Current Liabilities
 

3247.934

2103.381

Net Current Assets
 

4906.634

4507.566

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

6275.490

5233.863

 

 

PROVISIONAL PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

 

21591.514

16693.571

 

 

Other Income

 

5.289

4.258

 

 

TOTAL                                     (A)

 

21596.803

16697.829

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Increase/ (Decrease) in Stocks 

 

395.616

(746.405)

 

 

 

 

 

 

 

 

Purchase of Polished Diamonds

 

0.000

0.375

 

 

Cost of Materials

 

18636.808

15546.105

 

 

Employees Remuneration and Benefits

 

56.262

108.244

 

 

Manufacturing and Other Expenses

 

1015.987

715.050

 

 

Selling and Distribution Expenses

 

382.874

345.913

 

 

Remuneration to Partners

 

4.500

4.500

 

 

TOTAL                                     (B)

 

20492.047

15973.782

 

 

 

 

 

Less

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

 

1104.756

724.047

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

140.589

84.570

 

 

 

 

 

 

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

 

964.167

639.477

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

145.898

73.215

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

818.269

566.262

 

 

 

 

 

Less

TAX                                                                  (H)

 

250.001

179.784

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

568.268

386.478

 

 

 

 

 

 

Prior Period Income/ (Expenses) – Net

 

(0.318)

(0.071)

 

 

 

 

 

 

Excess/ (Short) Provision for Income tax relating to earlier Years (net)

 

(2.028)

(0.052)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Partner’s Capital A/c

 

565.922

386.355

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2012

31.03.2011

PAT / Total Income

(%)
 

2.63

2.31

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

3.79

3.39

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

8.75

7.82

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.37

0.30

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

3.33

2.93

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.51

3.14

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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 two years

Yes

12) Profitability for last two years

Yes

13) Reasons for variation <> 20%

-----

14) Estimation for coming financial year

Yes

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

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 mil 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.

 

TRADE REFERENCE:

 

·         Aarajav Diamonds India Private Limited, Bombay

·         Harry Windtom Inc, USA

 

 

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]         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

UK Pound

1

Rs.81.80

Euro

1

Rs.67.18

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

47

 

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.