1. Summary Information
|
|
|
Country |
|
|
Company Name |
GITANJALI GEMS LIMITED |
Principal Name 1 |
Mr. Mehul Choksi |
|
Status |
Good |
Principal Name 2 |
Mr. Nehal Modi |
|
|
|
Registration # |
11-040689 |
|
Street Address |
801/802 Prasad Chambers, Opera House, Mumbai – 400004, |
||
|
Established Date |
21.08.1986 |
SIC Code |
-- |
|
Telephone# |
91-22-40362222 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-23630363 |
Business Style 2 |
Retailers |
|
Homepage |
Product Name 1 |
Integrated Diamond |
|
|
# of employees |
1500 (Approximately) |
Product Name 2 |
Jewellery |
|
Paid up capital |
Rs.848,720,000/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of Promoter and Promoter Group – (54.36%),
Public Shareholding – (45.64%) |
Banking |
Allahabad Bank |
|
Public Limited Corp. |
Yes |
Business Period |
26 Years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
-- |
Mehul Impex Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
33,437,730,000 |
Current Liabilities |
12,503,970,000 |
|
Inventories |
11,053,860,000 |
Long-term Liabilities |
18,819,130,000 |
|
Fixed Assets |
580,460,000 |
Other Liabilities |
846,300,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
32,169,400,000 |
|
Invest& other Assets |
9,662,620,000 |
Retained Earnings |
21,716,550,000 |
|
|
|
Net Worth |
22,565,270,000 |
|
Total Assets |
54,734,670,000 |
Total Liab. & Equity |
54,734,670,000 |
|
Total Assets (Previous Year) |
43,236,170,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Total Sales |
51,224,720,000 |
Net Profit |
2,246,030,000 |
|
Total Sales (Previous yr) |
33,549,700,000 |
Net Profit(Prev.yr) |
1,420,910,000 |
MIRA
INFORM REPORT
|
Report Date : |
27.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
GITANJALI GEMS LIMITED |
|
|
|
|
Registered
Office : |
801/802 Prasad Chambers, Opera House, Mumbai – 400004, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
21.08.1986 |
|
|
|
|
Com. Reg. No.: |
11-040689 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.848.720
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36911MH1986PLC040689 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08469G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG1642F |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturers and Retailers of
Integrated Diamond and Jewellery. |
|
|
|
|
No. of Employees
: |
1500 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 90000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Fundamentals are strong and
healthy. 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. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Factory 1 : |
801/802 Prasad Chambers, Opera House, Mumbai-400004, |
|
Tel. No.: |
91-22-40362222 |
|
Fax No.: |
91-22-23630363 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
B- 6, 1st Floor,
|
|
Tel. No.: |
91-22-40102000 / 01 |
|
Fax No.: |
91-22-40102003 |
|
E-Mail : |
|
|
|
|
|
Administrative Office : |
Building No.
2/101, Jogani Complex, Behind Amar Brass, |
|
|
|
|
Operations
Office : |
Laxmi Towers, B/3, 3rd Floor, Next to ICICI Bank, Bandra
Kurla Complex, Bandra (East), Mumbai-400 051, |
|
|
|
|
Factory 2 : |
1. Gala No. 3, Ground Floor, Hi – tech embroidery, Vardhaman Industrial
Estate, Near Petrol pump, |
|
|
|
|
Factory 3 : |
2. Plot No.61, SEEPZ, Andheri (E), Mumbai, |
|
|
|
|
Factory 4 : |
3. Plot No.16 (Part), 17,28,29(Part),SEEPZ, Andheri (East), Mumbai, |
|
|
|
|
Factory 5 : |
|
|
|
|
|
Factory 6 : |
Survey NO.1/1, |
|
|
|
|
Factory 7 : |
Mould No. – 4NE, 4th Floor, SF Building, Manikanchan SEZ, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Mehul Choksi |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Nehal Modi |
|
Designation : |
Non -Executive Director |
|
|
|
|
Name : |
Mr. Dhanesh Sheth |
|
Designation : |
Non -Executive Director |
|
|
|
|
Name : |
Mr. Nitin Potdar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sujal Shah, |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S. Krishnan |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Pankhuri Warange |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Audit
Committee: |
Mr. Sujal Shah, Chairman Mr. Nitin Potdar Mr. S. Krishnan Mr. Dhanesh Sheth |
|
|
|
|
Remuneration
Committee: |
Mr. Sujal Shah, Chairman Mr. S. Krishnan |
|
|
|
|
Allotment
Committee: |
Mr. Mehul Choksi, Chairman Mr. Dhanesh Sheth Mr. Sunil Varma |
|
|
|
|
Borrowing
Committee: |
Mr. Mehul Choksi, Chairman Mr. Dhanesh Sheth Mr. Sunil Varma |
|
|
|
|
Investment
Committee: |
Mr. Mehul C. Choksi, Chairman Mr. Dhanesh Sheth Mr. Sunil Varma |
|
|
|
|
Administrative
Committee: |
Mr. Mehul Choksi, Chairman Mr. Dhanesh Sheth Mr. Sunil Varma |
|
|
|
|
Executive
Management Committee: |
Mr. Mehul Choksi, Chairman Mr. Nehal Modi Mr. Dhanesh Sheth Mr. Nishit Mehta |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
42,623,531 |
46.78 |
|
|
6,901,488 |
7.57 |
|
|
49,525,019 |
54.35 |
|
|
|
|
|
|
10,000 |
0.01 |
|
|
10,000 |
0.01 |
|
Total shareholding of Promoter and Promoter Group (A) |
49,535,019 |
54.36 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
126,000 |
0.14 |
|
|
125,297 |
0.14 |
|
|
21,874,811 |
24.01 |
|
|
22,126,108 |
24.28 |
|
|
|
|
|
|
10,399,362 |
11.41 |
|
|
|
|
|
|
4,074,134 |
4.47 |
|
|
646,724 |
0.71 |
|
|
4,340,748 |
4.76 |
|
|
1,251,450 |
1.37 |
|
|
152,167 |
0.17 |
|
|
1,383,081 |
1.52 |
|
|
1,554,050 |
1.71 |
|
|
19,460,968 |
21.36 |
|
Total Public shareholding (B) |
41,587,076 |
45.64 |
|
Total (A)+(B) |
91,122,095 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
91,122,095 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Retailers of Integrated Diamond and
Jewellery. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Actual
Production |
|
Polished Diamonds |
Cts. |
865412.870 |
|
Rough Rejection Diamonds |
Cts. |
149522.350 |
GENERAL INFORMATION
|
No. of Employees : |
1500 [Approximately] |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ford, Rhodes, Parks and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Subsidiaries : |
·
Mehul
Impex Limited ·
Gitanjali Exports
Corporation Limited ·
CRIA
Jewellery Private Limited ·
Gitanjali
Brands Limited( Formerly Known as Fantasy Jewellery Private Limited) ·
Hyderabad
Gems SEZ Limited ·
Shubalavanyaa
Jewel crafts Private Limited ·
Asmi
Jewellery India Limited (Formerly known as Asmi Jewellery India Private
Limited) ·
Gili India
Limited ·
Gitanjali
Infratech Limited ·
Gitanjali
Lifestyle Limited ·
Gitanjali
Jewellery Retail Private Limited ·
D’Damas
Jewellery ( ·
Brightest Circle
Jewellery Limited (Formerly known as Brightest Circle Jewellery Private
Limited) ·
Raigad
Gems SEZ Limited ·
Aurangabad
Gems SEZ Limited ·
Nanded
Gems SEZ Limited ·
Nashik
Multi Services SEZ Limited ·
Mohar
Jewels Limited ·
West
Bengal SEZ Limited ·
Gitanjali
Ventures DMCC ·
Samuels
Jewelers Inc. ·
Gitanjali
USA Inc. ·
Gitanjali
Retail Ventures Limited ·
Gitanjali
Holdings Limited ·
MMTC
Gitanjali Private Limited ·
Decent
Securities and Finance Private Limited ·
Eureka
Finstock Private Limited ·
Nagpur
Multi Product SEZ Limited ·
Modali
Gems Private Limited ·
Bezel
India Private Limited ·
Spectrum
Jewellery Limited (Formerly known as Spectrum Jewellery Private Limited) ·
N and J
Finstocks Private Limited ·
Gitanjali
Resources ·
Giantti
Italia SRL |
|
|
|
|
Step Down Subsidiaries : |
·
Tri-Star
Worldwide LLC ·
Trinity
Expositions Private Limited ·
Lucera
Retail Venture Private Limited ·
Kolkata
Axis Malls Limited ·
Hoop
Retail Ventures Private Limited ·
MobileNXT
Teleservices Private Limited ·
Alliance
Jewelleries Private Limited ·
Salasar
Retail Limited ·
Diamlink
Inc ·
Diamlink
Jewellery Inc ·
Jewelry
Marketing Company LLC ·
LJOW
Holdings, LLC ·
Mannat
Jewellery Manufacturing Private Limited |
CAPITAL STRUCTURE
After 26.09.2011
Authorised Capital : Rs.1500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.911.221 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
84871598 |
Equity Shares |
Rs.10/- each |
Rs.842.700
Millions |
|
|
Add: Issue of Shares |
|
Rs.6.020
Million |
|
|
Total |
|
Rs.848.720 Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
848.720 |
842.700 |
850.630 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21716.550 |
19640.110 |
18065.560 |
|
|
4] Share Warrants |
0.000 |
0.000 |
312.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22565.270 |
20482.810 |
19228.190 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
15639.910 |
12697.400 |
9001.100 |
|
|
2] Unsecured Loans |
3179.220 |
3316.930 |
3757.000 |
|
|
TOTAL BORROWING |
18819.130 |
16014.330 |
12758.100 |
|
|
DEFERRED TAX LIABILITIES |
7.840 |
9.210 |
8.260 |
|
|
|
|
|
|
|
|
TOTAL |
41392.240 |
36506.350 |
31994.550 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
580.460 |
598.840 |
499.030 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
9662.620 |
8985.240 |
8385.180 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11053.860
|
7892.360
|
7581.130 |
|
|
Sundry Debtors |
22396.510
|
18200.170
|
15899.660 |
|
|
Cash & Bank Balances |
2607.140
|
1346.200
|
2386.280 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
8434.080
|
6213.360
|
5559.670 |
|
Total
Current Assets |
44491.590
|
33652.090
|
31426.740 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11689.950
|
5713.810
|
7426.510 |
|
|
Other Current Liabilities |
814.020
|
330.330
|
293.460 |
|
|
Provisions |
838.460
|
685.680
|
596.430 |
|
Total
Current Liabilities |
13342.430
|
6729.820
|
8316.400 |
|
|
Net Current Assets |
31149.160
|
26922.270
|
23110.340 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
41392.240 |
36506.350 |
31994.550 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
51224.720 |
33549.700 |
26938.470 |
|
|
|
Other Income |
7.980 |
2.820 |
2.170 |
|
|
|
TOTAL (A) |
51232.700 |
33552.520 |
26940.640 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Trading Goods / Material Consumed |
46920.920 |
30641.890 |
24300.050 |
|
|
|
Operating Expenses |
985.130 |
366.520 |
836.640 |
|
|
|
TOTAL (B) |
47906.050 |
31008.410 |
25136.690 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3326.650 |
2544.110 |
1803.950 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1003.440 |
1011.140 |
453.390 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2323.210 |
1532.970 |
1350.560 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
33.560 |
39.410 |
43.360 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2289.650 |
1493.560 |
1307.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
43.620 |
72.650 |
39.510 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
2246.030 |
1420.910 |
1267.690 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6450.450 |
5604.650 |
4624.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
230.000 |
120.000 |
108.000 |
|
|
|
Proposed Dividend |
254.610 |
168.540 |
153.110 |
|
|
|
Tax on Dividend |
41.310 |
28.640 |
26.030 |
|
|
|
Capital Redemption Reserve |
0.000 |
7.930 |
0.000 |
|
|
|
Debenture Redemption Reserve |
250.000 |
250.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
7920.560 |
6450.450 |
5604.650 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
30298.040 |
19449.310 |
14170.31 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
17694.600 |
14854.930 |
11156.880 |
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) (Basic) |
26.46 |
16.84 |
14.90 |
|
|
|
Earnings Per
Share (Rs.) (Diluted) |
22.84 |
14.53 |
12.910 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3736.100 |
4076.900 |
4235.300 |
|
Total Expenditure |
3481.600 |
3801.900 |
3861.000 |
|
PBIDT (Excl OI) |
254.500 |
275.000 |
374.300 |
|
Other Income |
5.400 |
10.800 |
4.400 |
|
Operating Profit |
259.900 |
285.800 |
378.700 |
|
Interest |
100.100 |
124.900 |
165.400 |
|
PBDT |
159.800 |
160.900 |
213.300 |
|
Depreciation |
98.400 |
93.000 |
122.900 |
|
Profit Before Tax |
61.400 |
67.900 |
90.400 |
|
Tax |
12.900 |
46.000 |
35.000 |
|
Profit After Tax |
48.500 |
21.900 |
55.400 |
|
Net Profit |
48.500 |
21.900 |
55.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.38
|
2.61
|
5.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.47
|
3.79
|
7.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.08
|
6.57
|
14.74 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.19
|
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.43
|
1.85
|
1.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.33
|
2.61
|
1.80 |
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 |
No |
|
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 |
No |
|
10) Designation of contact person |
No |
|
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 |
No |
DIAMOND INDUSTRY –
-
From time immemorial,
-
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
-
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
-
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.
HISTORY
Subject is one of largest integrated diamond and jewellery manufacturers
and retailers in
TURNOVERS AND
PROFITS
During the
financial year ended 31st March, 2011 the sales and other income increased from
Rs. 33552.520 millions to Rs. 51232.700 millions. The net profit before tax
stood at Rs. 2289.650 millions as against Rs. 1493.560 millions in the previous
year. The net profit after tax stood at Rs. 2246.03 0millions as against Rs.
1420.910 millions in the previous year.
BUSINESS REVIEW
DIAMOND AND JEWELLERY MANUFACTURING SEGMENT
The Company engages in an end-to-end diamond processing
chain which begins with Marking, Cleaving, Sawing, Cutting and finally,
Polishing. It procures rough diamonds from various major reputed diamond
suppliers across the globe. These rough diamonds are processed and polished in
the modern diamond processing units. The Company is making conscientious
efforts in addressing the large market opportunities that exist in the Diamond
Segment both in
BRANDED JEWELLERY SEGMENT
Branded Jewellery
Segment is India Focused Segment of the group, which caters to over 3600 points
of sales across the country. Subject owns 8 out of top 10 brands in the
country. Asmi, Gili, Nakashtra, and D’Damas have become most dominating brand
today in the jewellery segment in
INTERNATIONAL DISTRIBUTION AND RETAIL SEGMENT:
Subject forayed
into the
SIGNIFICANT DEVELOPMENTS DURING THE
YEAR
(a) During the
year, the Company has acquired 100% Shares of NandJ Finstocks Private Limited
(NandJ), By way of this acquisition, N and J has become a wholly owned
subsidiary of the Company.
(b) During the
year, the Company has acquired 100% stake in ‘Giantti Italia S.R.L.’, a Company
based in
(c) During the
year with a view to rationalise the group structure, the Company has acquired
entire stake in “Pink Jewellery Private Limited” (PJPL) through Brightest
Circle Jewellery Limited, a wholly owned subsidiary of the Company.
(d) During the
year, the Company has incorporated a wholly owned subsidiary (WOS) In the name
of “Gitanjali Resources” in
RECENT DEVELOPMENTS
(a) The Company
has incorporated a wholly owned subsidiary in the name of Leading Italian
Jewels SRL (LIJ) in
(b) The Company
has sold its entire 51% stake in Shubalavanyaa Jewel Crafts Private Limited, a
Subsidiary of the Company to Gitanjali Brands Limited, a wholly owned Subsidiary
of the Company. Consequent to the said transfer Shubalavanyaa Jewel Crafts
Private Limited has become a Subsidiary of Gitanjali Brands Limited.
(c) The Company
has acquired assets of DIT Group S.p.A (DIT) Italy alongwith the trust
constituted as operating vehicle i.e. ‘BLU S.r.l’ a Company governed by Italian
law with headquarters in Milan. DIT engages in Jewellery manufacturing and sale
business.
(d) The Company
decided to explore the potential merger of subsidiaries, demerger and other
forms of restructuring, or acquisition, or spin-off with the ultimate object of
enhancing and unlocking shareholder value. Accordingly, Pink Jewellery Private
Limited and Alliance Jewelleries Private Limited, stepdown Subsidiaries were
amalgamated with Brightest Circle Jewellery Limited, wholly owned Subsidiary as
per Honorable Bombay High Court Order dated April 15,2011. Further, Hoop Retail
Ventures Private Limited, Trinity Expositions Private Limited and Lucera Retail
Venture Private Limited, step down subsidiaries were amalgamated with Gitanjali
Lifestyle Limited, wholly owned subsidiary as per Honorable Bombay High Court
Order dated May 06, 2011
(e) The Company
has incorporated wholly owned subsidiary in the name of Aston Luxury Group Ltd.
in
(f) The Company
has incorporated GGL Diamond LLC in
OUTLOOK FOR 2011-12
The Jewellery
business will continue its growth path through various initiatives, including
launching of new collections, setting up large format stores, increasing share
of studded jewellery and achieving design leadership.
Overall, the year
2011-12 will be a year where the Company would drive for strong and profitable
growth in all its Indian consumer businesses, retain focus on elimination of
wasteful costs, and skillfully navigate the international businesses which will
continue to pose challenges due to sluggish demand in some of the geographies.
AWARDS AND RECOGNITION
The Company has
been awarded the Outstanding CSR in the Gems and Jewellery sector at the first
CSR TLC held on 19th February, 2011, from the hands of Mr. Salman Khurshid,
Honorable Union Cabinet Minister for Water Resources, and for Minority Affairs.
The Company has received this prestigious award as recognition for its efforts
in the field of community health and welfare.
The Company has
been awarded the 5th INDY’s award for Excellence in Corporate Social
Responsibility Practice. The award recognized the Company for systematically
planning and carrying out social activities within the organisation. The jury
was extremely impressed with the involvement of the employees and the array of
activities being carried out like blood donation camp, eye check up camp, first
aid training, cleanliness drive etc.
It was a proud
moment for the Company as ‘Saksham’ one of the projects under the Company’s CSR
initiative ‘Sambhav’, was acknowledged and awarded the prestigious NCPEDP-
Shell Helen Keller Award, 2010 under Category C meant for Companies/ Organisations/Institutions
who through their policies and practices demonstrate their belief in equal
rights and gainful employment for people with disabilities. The award, was
given at a simple ceremony at India International Centre Auditorium, Max
Mueller Marg on 2nd December, 2010 on the eve of World Disability Day. Hon’ble
Home Minister and chief guest for the evening, Mr. P. Chidambaram presented the
award to the Company. The Saksham initiative of the Company is focused on
empowerment of People with Disabilities (PWD’s) through a six month training
programme and creating conditions for their rehabilitation and integration into
society. Nearly 250 such people are employed at the Company’s factory located
at
MANAGEMENT DISCUSSION AND ANALYSIS
THE INDIAN GEMS AND JEWELLERY MARKET
The gems and
jewellery industry is estimated to be around US$100 billion in 2010-11, of which
exports accounted for around US$43 billion and the domestic market accounted
for around US$57 billion in 2010-11. The industry is a leading foreign exchange
earner for the country.
·
·
World’s largest consumer of gold and silver
jewellery
·
Third largest consumer of polished diamonds after
the
·
More than 90% of the world’s diamonds (11 out of
12) are cut and polished in
·
Home to world’s largest diamond processing centre
·
Plays a dominant role in the processing of gems and
jewellery
·
Preferred destination due to its low-cost of
production and availability of skilled labour
·
The Indian gems and jewellery industry is
export-oriented
·
One of the pioneering countries to hand-make fine
jewellery from minerals and metals
·
Over 100,000 jewellery manufacturing units, about
6,000 diamond processing units, and 450,000 goldsmiths throughout
·
Over 1.8 million people are employed
INDIAN GEMS AND JEWELLERY EXPORTS
Gems and jewellery exports grew by 46.89% to reach US$
43139.240 millions in 2010-11 from US$ 29358.490 millions in
2009-10.
GROWTH OF BRANDED RETAIL IN
GOVERNMENT IMPETUS TO THE GEMS AND
JEWELLERY SECTOR
·
100% FDI through automatic route allowed
·
Lowered import duty on platinum
·
Exempted rough coloured precious gem stones from
customs duty
·
Rough, semi-precious stones are exempt from import
duty
·
Abolished import duty on polished diamonds
·
Duty-free import of consumables for metals, other
than gold and platinum up to 2% of FOB value of exports
·
Duty-free import entitlement for rejected jewellery
up to 2% of
·
FOB value of exports
·
Import of gold of 18 carat and above under the
replenishment scheme
·
Setting up of SEZs and gems and jewellery parks to
promote investment in the sector
·
Raised the limit value of jewellery parcels for
export through foreign post office (via speed post) from US$ 50,000 to US$
75,000
·
Extended the time period for re-import of branded
jewellery, remaining unsold from 180 days to 365 days
·
The export of coloured gemstones on a consignment
basis has been allowed
·
To neutralise duty incidence on gold jewellery
exports and allow duty drawback
·
To make
·
Introduced new facility to allow the import of cut
and polished diamonds on a consignment basis for grading/certification purposes
·
Increased personal carriage limits from US$2
millions to US$5 millions for those participating in overseas exhibitions
·
Enhanced personal carriage limits from US$ 0.1
million to US$ 1 million for those participating in export promotion tours
GLOBAL GEMS AND JEWELLERY MARKET
During 2010-11,
the annual gold demand was at its highest over the last 10 years. Enhanced
jewellery demand, especially from Asian markets, has propelled growth in gold
demand, which grew 9% to 3,812.2 tons, worth approximately US$ 150 billion. The
global gold jewellery market grew 17% in 2010-11, with demand rising from 1,760
tons in 2009-10 to 2,060 tons in 2010-11. The average annual prices rose 26%
during the year. The global jewellery industry is expected to grow to US$ 350
billion by 2015.
In 2010-11, the
silver jewellery and branded jewellery for the second year in a row.
COMPANY OVERVIEW
Subject was established in 1986 for diamond processing,
diamond and gold jewellery manufacturing. Also one of the pioneers of jewellery
branding and retailing in
·
DTC (Diamond Trading Company) Sight holder through
promoter company
·
Star Trading House status from the Government of
India for its export performance
·
Nominated Agency status for direct import of gold
·
First to produce the world’s smallest heart shaped
diamond (0.03 carat)
·
Developed around 25 patented facet patterns
·
Uses CAD and
·
Received more than 50 awards for retail excellence,
brand building, and export performance
CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF
a) Corporate
Guarantees given by the Company to the extent of Rs. 18,478.700 millions
(Previous year Rs. 13,744.600 millions) for Working capital facilities availed
by its subsidiaries.
b) Outstanding Letter
of Credit: Rs. 149.430 millions (Previous year Rs. 426.310 millions)
c) Bank Guarantees: Rs. 2463.400 millions
FIXED ASSETS:
- Office
Premises
- Plant and
Machinery
- Furniture and
Fixture
- Office
Equipments
- Computers
- Vehicles
- Moulds and
Dies
- Capital
Work-in-Progress
- Advances on
Capital Account
UNAUDITED
CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2011
(Rs. in Millions)
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
30.09.2011 |
31.12.2011 |
31.12.2011 |
|
|
|
|
|
|
Net Sales / Income from Operations |
31676.409 |
35262.750 |
92892.425 |
|
Expenditure |
|
|
|
|
(Increase)/Decrease in stock in trade and work in progress |
(2525.070) |
2472.967 |
1225.607 |
|
Consumption of raw material / Purchase of traded goods |
29735.138 |
28921.579 |
79572.758 |
|
Employees Cost |
685.323 |
613.344 |
1848.152 |
|
Depreciation & Ammortisation |
80.830 |
69.535 |
217.920 |
|
Other expenditure |
1592.283 |
1264.686 |
4064.210 |
|
Total |
29568.504 |
33342.111 |
86928.647 |
|
Profit from
Operations before Other Income, Interest & Exceptional Item |
2107.905 |
1920.639 |
5963.778 |
|
Other Income |
24.896 |
11.809 |
86.036 |
|
Profit before Interest & Exceptional Item |
2132.801 |
1932.448 |
6049.814 |
|
Interest |
672.985 |
657.424 |
1932.183 |
|
Profit after Interest but before Exceptional Item |
1459.816 |
1275.024 |
417.631 |
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
Profit (+)/ Loss (-) from Ordinary Activities before tax |
1459.816 |
1275.024 |
4117.631 |
|
Tax expense |
|
|
|
|
Provision for Income Tax |
251.026 |
204.962 |
739.191 |
|
Provision for
Deferred Tax |
(0.027) |
(0.218) |
0.192 |
|
MAT Credit |
()132.186 |
(221.672) |
(491.511) |
|
Net Profit (+)/ Loss
(-) From Ordinary Activities after tax |
1341.003 |
1291.952 |
3869.759 |
|
Extraordinary Item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit (+)/
Loss (-) after Extra Ordinary item |
1341.003 |
1291.952 |
3869.759 |
|
Minority
Interest |
18.550 |
3.345 |
26.386 |
|
Share of associate companies |
0.000 |
0.000 |
0.000 |
|
Net Profit (+)/ Loss (-) for the period |
1322.453 |
1288.607 |
3843.372 |
|
Paid-up equity share capital Face Value of the share 10/- each |
863.195 |
911.221 |
911.221 |
|
Reserves
excluding Revaluation Reserves as per Balance sheet of previous accounting
year |
-- |
-- |
-- |
|
Earnings per
Share (EPS) |
|
|
|
|
Basic EPS for
the period, for the year to date and for the previous year |
15.54 |
14.87 |
44.34 |
|
Diluted EPS for
the period, for the year to date and for the previous year |
15.54 |
14.87 |
44.34 |
|
Public Shareholding |
|
|
|
|
Number of shares |
40121050 |
41587076 |
41587076 |
|
Percentage of shareholding |
46.48 |
45.64 |
45.64 |
|
Promoters and promoter group Shareholding |
|
|
|
|
Pledged / Encumbered |
|
|
|
|
Number of shares |
8654000 |
15328833 |
15328833 |
|
Percentage of shares (as a % of the total shareholding of Promoter and
promoter group) |
18.73 |
30.95 |
30.95 |
|
Percentage of shares (as a % of the total share capital of the
company) |
10.03 |
16.82 |
16.82 |
|
Non - encumbered |
|
|
|
|
Number of shares |
37544460 |
34206186 |
34206186 |
|
Percentage of shares (as a % of the total shareholding of Promoter and
promoter group) |
81.27 |
69.05 |
69.05 |
|
Percentage of shares (as a % of the total share capital of the
company) |
43.49 |
37.54 |
37.54 |
CONSOLIDATED SEGMENT
WISE REPORTING REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in Millions)
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
30.09.2011 |
31.12.2011 |
31.12.2011 |
|
|
|
|
|
|
Segment Revenue |
|
|
|
|
Segment - Diamond |
17194.496 |
15771.566 |
45883.697 |
|
Segment - Jewellery |
16206.019 |
20294.095 |
50115.640 |
|
Segment - Others |
110.464 |
117.015 |
275.796 |
|
Total |
33510.979 |
36182.676 |
96275.133 |
|
Less: Inter Segment Revenue |
1834.570 |
919.926 |
3382.708 |
|
Net Sales / Income from Operations |
31676.409 |
35262.750 |
92892.425 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
Profit / (Loss )
before tax and interest from each segment |
|
|
|
|
Segment - Diamond |
674.913 |
711.985 |
2029.279 |
|
Segment - Jewellery |
1656.487 |
1424.421 |
4545.500 |
|
Segment - Others |
(68.608) |
1.434 |
(92.570) |
|
Total |
2262.792 |
2137.840 |
6482.209 |
|
Less |
|
|
|
|
Interest |
672.985 |
657.424 |
1932.183 |
|
Other Un-allocable expenses |
129.991 |
205.392 |
432.395 |
|
Total Profit
Before Tax |
1459.816 |
1275.024 |
4117.631 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
Segment - Diamond |
14331.224 |
11248.578 |
11248.578 |
|
Segment - Jewellery |
13102.644 |
17993.402 |
17993.402 |
|
Segment - Others |
1009.953 |
2378.434 |
2378.434 |
|
Total |
28443.821 |
31620.414 |
31620.414 |
|
|
|
|
|
|
B) SECONDARY
SEGMENT (BY GEOGRAPHICAL SEGMENT) |
|||
|
Particular |
Quarter Ended |
Nine Month Ended |
|
|
|
30.09.2011 |
31.12.2011 |
31.12.2011 |
|
|
|
|
|
|
|
14617.724 |
16767.453 |
40376.215 |
|
Rest of the
world |
17058.685 |
18495.297 |
52516.210 |
|
Total Revenue |
31676.409 |
35262.750 |
92892.425 |
NOTE:
1.
The above Unaudited Financial Results were reviewed
by the Audit Committee and approved at the meeting of the Board of Directors. held
on February 14, 2012 and the same has been subjected to a Limited Review by the
Statutory Auditors of the Company
2.
As on December 31, 2011 net GDR proceeds of USD
0.0658 million were kept in deposits with overseas banks pending utilization.
3.
The paid up equity share capital of the company has
increased from Rs 848.716 Millions as on March 31, 2011 to Rs 911.221 Millions
as on December 31, 2011, consequent to conversion of 1% Foreign Currency
Convertible Bonds (FCCB) in to Equity shares. Out of total FCCBs (USD 110
million) issued, 63.4% of the total issue size was converted into equity shares
and balance 36.6% bonds matured on November 25, 2011. The outstanding bond;
worth US0 40.26 million were redeemed and Company paid outstanding principal
amount and premium due to the bondholders. The redemption premium amounting to
Rs 888.66 million is debited to share premium account. Post conversion total
outstanding number of equity shares of the company stands at 91,122,095 till
date.
4.
The Company has allotted 9,13,396 warrants on
preferential basis on January 24,2012 as per SEBI ( Issue of Capital and
Disclosure Requirements), 2009 and other applicable statutory provisions to
Bennett Coleman and Company Limited (BCCL) with each warrant convertible in to
one equity share of Rs 10 each at a price of Rs 424/- which includes a
premium of Rs 414/- per share.
5.
Kolkata Axis Mall Limited, a step down subsidiary
has opted for striking off its name from the Register of Companies, under Fast track
exit mode as per General Circular No. 36/2011 dated June 7, 2011 issued by the
Ministry of Corporate Affairs. The same has been approved by the Registrar of
Companies,
6.
Investors' complaints received and disposed off
during the quarter ended December 31, 2011 are as follows;
|
Complaints
pending at the beginning of the quarter |
Nil |
|
Complaints
received during the quarter |
31 |
|
Disposal of
complaints |
31 |
|
Unresolved
complaints at the end of the quarter |
Nil |
7.
The Company has identified two major reportable
segments - viz. Diamond business and Jewellery business.
8.
Except for the 12 month period, EPS is not
annualized
9.
Previous period figures have been regrouped /
rearranged, wherever necessary
PRESS RELEASES:
YES BANK GR8! FASHION WALK
IN SUPPORT OF BETI - ANU RANJAN'S CAMPAIGN AGAINST FEMALE FOETICIDE
Mumbai, April 5, 2012: Gitanjali Celebrates Yes Bank GR8! Fashion Show – a unique fashion show conceived by Anu Ranjan (Editor Gr8!) in support of 'BETI - A Movement against Female Foeticide', was held on Thursday 5th April at Sun N Sand, Juhu. The theme of the fashion show was 'Healthy is Hot, Zero is Not' and 'Curvy is In, Skinny is Out'.
Anu informed "Walking the ramp were eminent personalities from the
Entertainment and Fashion industry. This time along with awareness of female
foeticide, we also wanted to send the message across to young impressionable girls
to eat healthy. Girls should eat foods with the right amount of nutrition
rather than starve themselves to maintain their bodies and invite health
problems. It is alarming that many young girls are now falling prey to eating
disorders with disastrous consequences. Instances of anorexia, anaemia and
osteoporosis are high in young girls and the message to eat healthy and eat
right should be sent across to girls."
Some of the stars who walked the ramp in support of the cause of BETI
included Yuvika Choudhary, Jaswir Kaur, Juhi Parmar, Indraneil and Barkha,
Eijaz Khan, Anu and Shashi Ranjan, Anushka Ranjan, Anu Gupta, Priyanka
Batra, Priya Kataaria Purie , Krishika Lulla, Nandita and Pradeep Palshetkar,
Deeya and Tony Singh, Pooja Makhija, Bina and Talat Aziz, Rumi Jaffery, Reena
and Rohit Gupta, Simmi and Vikram Sakhuja, Vardha Nadiadwala and Chhaya Momaya,
Tulip Joshi and Vinod Niar, Bindu and Rana Kapoor, Masaba, Sudhanshu Pandey,
Chahat Khanna and others
About Gitanjali Group:
Gitanjali Group is the world’s largest integrated branded jewellery
manufacturer-retailer with an annual turnover of over USD 2.1 billion.
The Group pioneered jewellery retail revolution in
At an International level, Gitanjali enjoys direct access to the
The group has also taken the lead in introducing well known Italian
jewellery to the Indian market which includes the acquisition of Italian brands
- Valente, Stefan Hafner, Nouvelle Bague, IO SI and Porrati.
Today the Group’s activities are spread across the entire value chain
from rough diamond sourcing, cutting, polishing and distribution, and jewellery
manufacture, to jewellery branding and retail, as well as global lifestyle
brands, in
About BETI:
Anu Ranjan, Editor Gr8! Magazine launched BETI in February 2006 attended
by Diana Hayden and Shabana Azmi. Since then she has been involved in
highlighting the cause of female feticide by organising charity celebrity
cricket matches (attended by national cricketer Sreesanth), awareness ramp
shows by leading celebrities with their daughters. The issue has also been the
focal point of the GR8! Women Awards held annually in the month of February and
has been supported by some of the most prominent women achievers in the
country.
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.52.57 |
|
|
1 |
Rs.85.03 |
|
Euro |
1 |
Rs.69.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.