|
Report Date : |
18.04.2012 |
|
|
|
|
Tel. No.: |
92-22-28292677 |
IDENTIFICATION DETAILS
|
Name : |
SUASHISH DIAMONDS LIMITED SUASHISH JEWELRY INDIA LIMITED AMALGAMATED WITH SUASHISH DIAMONDS
LIMITED W.E.F. 01.04.2011 |
|
|
|
|
Registered
Office : |
Mehta Mahal, 11th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 (Suashish Diamonds
Limited and Suashish Jewelry India Limited) |
|
|
|
|
Date of
Incorporation : |
05.10.1988 |
|
|
|
|
Com. Reg. No.: |
49085 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.208.120 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U36900MH1988PLC049085 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS38153D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS8246H |
|
|
|
|
Legal Form : |
Public Limited
Liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Export of Rough
Diamond, Cut Polished Diamonds, Precious and Semi Precious Studded Gold
Jewellery. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 26253476 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established and a reputed company having goods
track. General financial position of the company appears to be good. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. Note: Suashish Jewelry India Limited, a wholly
owned subsidiary of Suashish Diamonds Limited has amalgamated with its
holding company w.e.f. 01.04.2011. |
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. Vikas Mehta |
|
Designation : |
Finance Head |
|
Contact No.: |
91-22-40401111 |
|
Date : |
17.04.2012 |
LOCATIONS
|
Registered Office : |
Mehta Mahal, 11th
Floor, 15 Mathew Road, Opera House, Mumbai – 400 004, Maharashtra, India |
|
Tel. No.: |
91-22- 4040 1111 (200 Lines) |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branches : |
Gala No. 207 and 208 2nd Floor Multisories Building Seepz- Sez,
Andheri (East), Mumbai – 400096, Maharashtra, India |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Ashish R. Goenka |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Pawankumar Bagla |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Rajeshkumar R. Kedia |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Kamal R. Gupta |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Shailesh S. Vaidya |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. nilesh Mehta |
|
Designation : |
Non Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Srikant Mohan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
4899000 |
23.59 |
|
b) Bodies corporate |
13669800 |
65.84 |
|
2) Foreign |
|
|
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
50192 |
0.24 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
1061563 |
5.11 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
674711 |
3.25 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
385018 |
1.85 |
|
|
|
|
|
c) Any other |
|
|
|
i) Trust |
10 |
-- |
|
ii) Market Maker |
23006 |
0.11 |
|
|
|
|
|
Total |
20763300 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Export of Rough
Diamond, Cut Polished Diamonds, Precious and Semi Precious Studded Gold
Jewellery. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
·
Axis Bank Limited ·
Bank of Baroda ·
Central Bank of India ·
Corporation Bank ·
Indian Overseas Bank ·
Societe Generale ·
Standard Chartered Bank ·
Union Bank of India |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
(The foreign currency loans of Rs.6,953.398 Millions (as at
31 March 2010 Rs.
9,446.755 Millions) included in working capital facilities are secured
against the fixed deposits of Rs.7,715.875 Millions (as at 31 March 2010 Rs.10,348.600
Millions). All other working capital facilities are secured by equitable
mortagage by deposit of title deeds of factory premises of the Company in
Mumbai and office premises of four companies in which directors have
significant influence, hypothecation of stock-in-trade, book debts, movables
and other assets both present and future.) |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Suresh Surana and Associates Chartered Accountants |
|
|
|
|
Associates: |
·
Suashish Finance Limited ·
Taruvarsh Leasing Company Private Limited ·
Suashish Realty Private Limited |
|
|
|
|
Subsidiaries : |
·
Suashish Diamonds (Hong Kong) Limited ·
Suashishstar Inc. (upto 14 January 2011) ·
Suashish Diamond (Shanghai) Limited ·
Suashish Jewels Inc. ·
Suashish Jewels Canada Inc. (w.e.f.10 February
2011) ·
Suashish Diamonds (Botswana) (Proprietary) Limited ·
Goenka Trading Company ·
Mohinidevi Goenka Investments ·
M.G. Investments (w.e.f. 17 January 2011) |
|
|
|
|
Enterprises on
which key management personnel have
significant influence: |
·
Fabulous Holdings Private Limited ·
Goenka Holdings Private Limited ·
Rapid Holdings Private Limited ·
Radiant Holdings Private Limited ·
Suashish Diamdeal (India) Limited ·
Suashish Realtors Private Limited ·
Suashish Properties Private Limited ·
Goenka Laser House Private Limited ·
Mohinidevi Goenka Trust |
CAPITAL STRUCTURE
(SUASHISH DIAMONDS
LIMITED)
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
2000000 |
Redeemable Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20763300 |
Equity Shares |
Rs.10/- each |
Rs.207.633
Millions |
|
|
Add: Forfeited
shares (amount originally paid-up) |
|
Rs.0.487
Million |
|
|
|
|
|
(Of the above, 13,849,000 (as at 31 March 2010: 13,849,000) equity shares are allotted as fully paid up bonus shares by capitalisation of general reserve)
FINANCIAL DATA
[all figures are
in Rupees Millions]
(SUASHISH
DIAMONDS LIMITED )
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
208.120 |
208.120 |
208.120 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6355.249 |
5736.674 |
5037.857 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6563.369 |
5944.794 |
5245.977 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9279.119 |
10870.491 |
4872.140 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
9279.119 |
10870.491 |
4872.140 |
|
|
DEFERRED TAX LIABILITIES |
13.730 |
28.206 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15856.218 |
16843.491 |
10118.117 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
282.876 |
223.795 |
249.732 |
|
|
Capital work-in-progress |
2.580 |
80.789 |
81.342 |
|
|
|
|
|
|
|
|
INVESTMENT |
4159.706 |
2355.197 |
1897.965 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
46.763 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
821.154
|
1276.822 |
1681.249 |
|
|
Sundry Debtors |
719.667
|
946.194 |
1048.118 |
|
|
Cash & Bank Balances |
9313.178
|
11426.570 |
4701.618 |
|
|
Other Current Assets |
265.312
|
200.821 |
255.134 |
|
|
Loans & Advances |
1210.179
|
1302.355 |
1038.574 |
|
Total
Current Assets |
12329.490
|
15152.762 |
8724.693 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
212.961
|
418.280 |
251.302 |
|
|
Other Current Liabilities |
277.549
|
263.680 |
230.512 |
|
|
Provisions |
427.924
|
287.092 |
400.564 |
|
Total
Current Liabilities |
918.434
|
969.052 |
882.378 |
|
|
Net Current Assets |
11411.056
|
14183.710 |
7842.315 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15856.218 |
16843.491 |
10118.117 |
|
(SUASHISH DIAMONDS LIMITED)
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and income from operations |
10581.972 |
12630.685 |
7704.925 |
|
|
|
Income / (loss) from investments and financial instruments |
340.812 |
617.438 |
(622.345) |
|
|
|
Other income |
27.045 |
19.854 |
72.570 |
|
|
|
Interest income (net) |
(13.973) |
49.069 |
(80.270) |
|
|
|
TOTAL |
10935.856 |
13317.046 |
7074.880 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
9261.487 |
11396.490 |
7993.103 |
|
|
|
Employees’ remuneration and benefits |
65.469 |
57.910 |
88.240 |
|
|
|
Manufacturing and other expenses |
267.722 |
213.328 |
481.407 |
|
|
|
Selling and distribution expenses |
109.602 |
64.714 |
93.889 |
|
|
|
Increase / (Decrease) in stocks |
420.880 |
662.799 |
(1040.773) |
|
|
|
TOTAL |
10125.160 |
12395.241 |
7615.866 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
810.696 |
921.805 |
(540.986) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
26.884 |
27.296 |
32.182 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXCEPTIONAL ITEMS |
783.812 |
894.509 |
(573.168) |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS: LOSS ON SALE OF INVESTMENT IN SUBSIDIARY
COMPANY |
(17.634) |
0.000 |
(75.790) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
766.178 |
894.509 |
(648.958) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
145.642 |
190.523 |
(50.702) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
620.536 |
703.986 |
(598.256) |
|
|
|
|
|
|
|
|
|
|
PRIOR YEAR TAX
ADJUSTMENTS (NET) |
(1.960) |
(5.169) |
0.069 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2508.288 |
1809.471 |
2407.658 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
3126.864 |
2508.288 |
1809.471 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
6968.048 |
10403.813 |
5102.357 |
|
|
TOTAL EARNINGS |
6968.048 |
10403.813 |
5102.357 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
6.617 |
5.039 |
13.519 |
|
|
|
Stores & Spares |
4.876 |
3.299 |
13.041 |
|
|
|
Polished diamonds |
1889.892 |
4088.912 |
3081.313 |
|
|
|
Rough diamonds |
5990.455 |
5949.562 |
3103.908 |
|
|
|
Capital Goods |
0.000 |
0.000 |
1.711 |
|
|
TOTAL IMPORTS |
7891.840 |
10046.812 |
6213.492 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
29.89 |
33.91 |
(28.81) |
|
(SUASHISH DIAMONDS LIMITED)
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total
Income |
(%) |
5.67
|
5.28 |
(8.45) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.24
|
7.08 |
(8.42) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.07
|
5.82 |
7.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.15 |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.55
|
2.02 |
1.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
13.42
|
15.63 |
9.89 |
(SUASHISH
JEWELRY INDIA LIMITED)
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
0.500 |
0.500 |
0.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
376.107 |
240.998 |
111.941 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
376.607 |
241.498 |
112.441 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
145.856 |
184.715 |
125.879 |
|
|
TOTAL BORROWING |
145.856 |
184.715 |
125.879 |
|
|
DEFERRED TAX LIABILITIES |
6.899 |
5.586 |
3.907 |
|
|
|
|
|
|
|
|
TOTAL |
529.362 |
431.799 |
242.227 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
102.185 |
100.638 |
104.334 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
48.727
|
80.065 |
29.551 |
|
|
Sundry Debtors |
384.107
|
343.737 |
184.508 |
|
|
Cash & Bank Balances |
4.398
|
1.298 |
4.031 |
|
|
Other Current Assets |
0.133
|
0.000 |
0.000 |
|
|
Loans & Advances |
17.840
|
10.081 |
6.564 |
|
Total
Current Assets |
455.205
|
435.181 |
224.654 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
23.850
|
100.750 |
86.529 |
|
|
Other Current Liabilities |
2.710
|
2.195 |
0.148 |
|
|
Provisions |
1.468
|
1.075 |
0.084 |
|
Total
Current Liabilities |
28.028
|
104.020 |
86.761 |
|
|
Net Current Assets |
427.177
|
331.161 |
137.893 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
529.362 |
431.799 |
242.227 |
|
(SUASHISH
JEWELRY INDIA LIMITED)
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
726.150 |
617.873 |
519.028 |
|
|
|
Other income |
33.840 |
(3.989) |
3.047 |
|
|
|
TOTAL |
759.990 |
613.884 |
522.075 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption materials changes inventories |
548.561 |
424.041 |
395.500 |
|
|
|
Manufacturing service costs |
32.858 |
27.749 |
15.767 |
|
|
|
Employee related expenses |
22.870 |
13.915 |
3.842 |
|
|
|
Administrative selling other expenses |
14.087 |
11.674 |
0.568 |
|
|
|
Increased / (Decreased) In Stock |
0.000 |
0.000 |
(13.309) |
|
|
|
TOTAL |
618.376 |
477.379 |
402.368 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
141.614 |
136.505 |
119.707 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
5.191 |
5.269 |
3.477 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
136.423 |
131.236 |
116.230 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1.314 |
2.179 |
3.949 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
135.109 |
129.057 |
112.281 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
240.998 |
111.941 |
(0.340) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
376.107 |
240.998 |
111.941 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2702.04 |
2581.13 |
-- |
|
(SUASHISH
JEWELRY INDIA LIMITED)
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total
Income |
(%) |
17.78
|
21.02 |
21.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.79
|
21.24 |
22.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.47
|
24.49 |
35.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36
|
0.54 |
1.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.46
|
1.20 |
1.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
16.24
|
4.18 |
2.59 |
LOCAL AGENCY FURTHER INFORMATION
(SUASHISH DIAMONDS
LIMITED)
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
212.961
|
418.280 |
251.302 |
IMPORTANT
NOTE:
SUBJECT: CORRIGENDUM ON THE INTIMATION UNDER CLAUSE 36 OF THE LISTING
AGREEMENT MADE BY THE COMPANY ON 15.02.2012
This has
reference to the subject and their letter of intimation (pursuant to Clause 36
of the Listing Agreement) dated 15.02.2012 on the sanction of the Scheme of
Amalgamation of their Wholly-owned subsidiary Suashish Jewelry India Limited
with the Company (Suashish Diamonds Limited) by Hon'ble High Court of Bombay.
In the said letter it was inadvertently mentioned that Suashish Jewelry India
Limited stands amalgamated with the Company with effect from 1st April,
2012. The date may be correctly read as 1st April, 2011 instead of 1st
April, 2012.
Thus, with effect from 1st April, 2011, Suashish Jewelry India Limited stands amalgamated with the Company and all its undertaking gets transferred to and in the name of the company
INCORPORATION OF A
NEW SUBSIDIARY IN CANADA
Suashish
Jewels Canada Inc. (SJC), a Wholly owned subsidiary of the Company was
incorporated on 10th February, 2011 in Canada with an initial paid up
capital of CAD 5,000. This was subsequently increased to CAD 120,000. SJC is
engaged in the business of wholesale diamond/ jewellery imports and sales.
AMALGAMATION OF
SUASHISH JEWELRY INDIA LTD. (SJIL)
At
the meeting held on 5th July, 2011, the Board of Directors of the
Company approved the proposal for amalgamation of SJIL, a Wholly-owned
subsidiary of the Company, with the Company. The “Appointed Date” has been
fixed as 1st April, 2011.
The
amalgamation is subject to all necessary statutory/ regulatory approvals.
DISINVESTMENT IN
SUASHISH STAR INC.
The
Company disinvested its holdings in Suashish Star Inc. for a total
consideration of USD 10,000. Suashish Star Inc. (SSI) had become inoperative
and had a negative net worth. As such, there was no return expected from the
investments and hence decided to disinvest.
SUBSIDIARY COMPANIES
The
Consolidated accounts include the duly audited statement of accounts of
Subsidiary Companies of Suashish Diamonds Limited.
The
following Companies are the Subsidiaries companies of Suashish Diamonds
Limited:
Suashish
Diamonds (Hong Kong) Limited, Suashish Jewels Inc., Suashish Diamonds
(Botswana) (Proprietary) Limited, Suashish Jewelry India Limited, Suashish
Diamonds (Shanghai) Limited and Suashish Jewels Canada Inc. Canada.
All
the above subsidiary companies are non-material, non-listed subsidiary
companies as defined under clause 49 of the Listing Agreement entered into with
the Stock Exchange.
The
Ministry of Corporate Affairs, Government of India vide Circular no. 2/2011
dates February 8, 2011 has provided an exemption subject to certain conditions
to holding companies from complying with the provisions of Section 212 of the
Act which requires the attaching of the Balance Sheet, Profit and Loss Account
and other documents of its subsidiary companies to its Balance Sheet and
provided such Companies publish the audited consolidated financial statements
in the Annual Report.
Accordingly,
the Annual Report 2010-11 does not contain the financial statements of their
subsidiaries, where applicable, will be made available on request. These
documents will also be available for inspection during business hours at their
registered office.
MANAGEMENT DISCUSSION AND ANALYSIS
General Performance
Review
Amidst the financial volatility world over, the Indian economy
registered a growth of 8.5 percent in 2010–11. The growth has been broad based
with a rebound in the agriculture sector. The manufacturing sector has also
registered impressive gains.
However food inflation, higher commodity prices and volatility in global
commodity markets have been a cause of concern underscoring the need of fiscal
consolidation and stronger reserves.
The key risks to growth in India in the current year 2011 -12 are the
negative impact of continuous tightening of monetary policy by the Reserve Bank
of India and a slowdown in global growth due to high international oil and
commodity prices.
India’s merchandise exports rose an annual 37.5% to USD 246 billion in the
fiscal year ended in March 2011, as demand soared for engineering goods, oil
products and textiles. However, the signs in the economy suggest that it is a
weak recovery since the financial slowdown in 2008.
Industry Structure
and Development:
Gems and jewellery exports recorded 47% growth in value terms, during the Financial Year 2010-2011. The Cut and Polished Diamond exports, which was the driving force, registered an increase of 55% for the year ended March, 2011, while gold jewellery exports increased by 33%.
The gems and jewellery sector, in turn, contributed nearly 17% to India’s total merchandise exports. Cut and Polished Diamonds accounted for 65.49% of the total exports baskets with Gold Jewellery accounting for 29.86%. After plunging on falling demand during the slowdown, diamond prices have risen over 50% in financial year 2010-11, while rough diamond prices have surpassed pre-crises levels. Going forward, the European market still appears mired in depressed demand, while the sustainability of the nascent US demand is yet to be seen.
The diamond sector in India is cautiously optimistic that the tide is turning for the better for the industry per se. Factors like, significantly lower inventory levels as compared to the period of financial crisis, a huge jump in export numbers, lower unemployment levels and stable rough diamond prices, all reveal a resurgence in the sector which was so critically impacted during the financial crisis when demand from developed countries plummeted.
EXPORTS AND IMPORTS:
Trading in the diamond market increased during the year under review. Exports of Cut and Polished diamonds increased from $18.24 billion (Rs.8609.500 Millions) in 2009-10 to $28.25 billion (Rs.12867.100 Millions) in 2010-11. The total imports in the Gems and Jewellery industry exhibited over all increase of 28.42 % to $ 4.85 billion when compared to the previous year ($3.77 billion in 2009-10). The import of Rough Diamonds increased by 38%.
Company’s Financial
Performance
The company has recorded a gross sale of Rs.1,05.800 Millions during the current accounting period ended 31st March, 2011 as against Rs.1,26.300 Millions for the previous year.
The Profit Before Tax (PBT) for the current accounting period was Rs.766.200 Millions (Profit of Rs.894.500 Millions for year ended 31st March, 2010) and the Profit After Tax (PAT) of Rs.620.500 Millions (Profit of Rs. 704.00 Millions for the year ended 31st March, 2010).
Looking Ahead
The Company is constantly looking for increasing its turnover by exploring
and penetrating in the new markets as well as expanding its presence in the
existing markets. With the distinctive indications of revival in the developed
economies of the world, the management also has a positive business outlook.
The industry is optimistic of surpassing its lean period.
Diamond Business
The Company is a Sightholder of DTC UK and DTC Botswana and is thus
assured of continued supply of rough diamonds for its cutting and polishing
facilities in India and Botswana. The company also imports its requirement of
rough diamond from other countries including diamond mining countries. The
company would not face shortage of supply of rough diamonds and would continue
to aggressively market its products and services to its customers world-wide.
Jewellery Business
The Company would be looking to work closely with its key retail clients
in the US and the European markets and at the same time also look to build its
business in emerging markets like India, Middle East and China.
OPPORTUNITIES:
Opportunities and
Challenges
The Company foresees opportunities in
● Good economic growth in emerging markets
like India, China, Hong Kong and Middle-East on the back of continuing strong growth
in demand supported by increase in purchasing power will lead to increased
demand of diamond studded Jewellery.
● Continuous supply of Rough diamonds from
Botswana.
Challenges
● Shortage of rough diamond supply to India
due to local beneficiation policy in producing countries.
● The Euro-zone and the US economy impact in
the reviving Global economy.
● Volatility in gold and diamond prices.
|
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 |
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
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 mil 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 2000 crore 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.
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.51.62 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.67.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.