MIRA
INFORM REPORT
|
Report Date : |
07.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRETTY JEWELLERY PRIVATE LIMITED |
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Registered
Office : |
Unit No. 402, Block I, Seepz++, MIDC, Marol, Andheri (East),
Mumbai-400096, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
16.09.2002 |
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Com. Reg. No.: |
11-137208 |
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Capital
Investment / Paid-up Capital : |
Rs.50.000 Millions |
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CIN No.: [Company Identification
No.] |
U52393MH2002PTC137208 |
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|
Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Exporter of Gold Studded Jewellery. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Company seems
to be performing. Trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Unit No. 402, Block I, Seepz++, MIDC, Marol, Andheri (East),
Mumbai-400096, |
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Tel. No.: |
91-22-28291597 |
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Fax No.: |
91-22-28291595 |
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E-Mail : |
DIRECTORS
As on 30.09.2011
|
Name : |
Mrs. Shilpa Shailesh Mehta |
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Designation : |
Director |
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Address : |
602, Manju Apartments, |
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Date of Birth/Age : |
10.08.1952 |
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Date of Appointment : |
16.09.2002 |
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Name : |
Mr. Shailesh Ramniklal Mehta |
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Designation : |
Director |
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Address : |
602, Manju Apartments, Narayani Dabholkar Road, Nepaeansea Road,
Mumbai-400006, Maharashtra, India |
|
Date of Birth/Age : |
29.11.1949 |
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Date of Appointment : |
16.09.2002 |
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Din No.: |
00685938 |
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Name : |
Mr. Viral Narendra Shah |
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Designation : |
Director |
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Address : |
11-AB, Shambhu Tirth, Opposite Hira Panna B.D. Road, Mumbai-400026,
Maharashtra, India |
|
Date of Birth/Age : |
02.07.1978 |
|
Date of Appointment : |
01.11.2003 |
|
Din No.: |
00685868 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Shilpa Shailesh Mehta |
|
5000 |
|
Araska Diamond Private Limited, India |
|
4995000 |
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|
|
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Total |
|
5000000 |
As on 30.09.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Gold Studded Jewellery. |
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Gold Studded Jewellery |
Units |
105000 |
36773 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Vijaya Bank, Overseas Branch, Maker Chamber-IV, Ground Floor, 222,
Nariman Point, Mumbai-400021, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Paresh L. Babaria Chartered Accountant |
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Address : |
117, 118, Shiv Plaza Shopping Centre, Near Kandivali Railway Station,
Kandivali (West), Mumbai-400067, Maharashtra, India |
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Pan No.: |
AAEPB3567D |
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Holding Company: |
Araska Diamond Private Limited |
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Associate : |
Ultimate Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 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 |
50.000 |
50.000 |
50.000 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
8.226 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
(4.272) |
(12.432) |
|
|
NETWORTH |
58.226 |
45.728 |
37.568 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
108.383 |
109.424 |
141.684 |
|
|
2] Unsecured Loans |
31.441 |
46.911 |
33.196 |
|
|
TOTAL BORROWING |
139.824 |
156.335 |
174.880 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
198.050 |
202.063 |
212.448 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38.274 |
37.999 |
35.591 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
2.802 |
2.802 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
94.180
|
137.317 |
106.408 |
|
|
Sundry Debtors |
350.022
|
303.223 |
271.678 |
|
|
Cash & Bank Balances |
2.557
|
0.303 |
0.762 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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|
Loans & Advances |
6.270
|
3.832 |
2.749 |
|
Total
Current Assets |
453.029
|
444.675 |
381.597 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
87.783
|
111.333 |
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Other Current Liabilities |
206.104
|
170.358 |
203.339 |
|
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Provisions |
2.168
|
2.019 |
1.750 |
|
Total
Current Liabilities |
296.055
|
283.710 |
205.089 |
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Net Current Assets |
156.974
|
160.965 |
176.508 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.297 |
0.349 |
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TOTAL |
198.050 |
202.063 |
212.448 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
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Other Income |
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TOTAL (A) |
264.654 |
226.189 |
204.401 |
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Less |
EXPENSES |
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Office Expenses |
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Administrative Expenses |
236.700 |
205.837 |
225.477 |
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Advertising Expenses |
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TOTAL (B) |
236.700 |
205.837 |
225.477 |
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Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
27.954 |
20.352 |
(21.076) |
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Less |
FINANCIAL
EXPENSES (D) |
13.095 |
12.117 |
9.495 |
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PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14.859 |
8.235 |
(30.571) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2.361 |
2.875 |
2.720 |
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PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
12.498 |
5.360 |
(33.291) |
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Less |
TAX (H) |
0.000 |
(2.802) |
0.259 |
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PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
12.498 |
8.162 |
(33.550) |
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PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(4.272) |
(12.432) |
21.118 |
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BALANCE CARRIED
TO THE B/S |
8.226 |
(4.270) |
(12.432) |
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EARNINGS IN
FOREIGN CURRENCY |
|
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Export Earnings |
240.895 |
126.495 |
152.511 |
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IMPORTS |
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|
Raw Materials |
12.934 |
74.466 |
NA |
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|
Earnings /
(Loss) Per Share (Rs.) |
2.50 |
1.63 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.72
|
3.60 |
(16.41) |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.54
|
1.11 |
(7.97) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.12 |
(0.89) |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
7.49
|
9.62 |
10.11 |
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|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.53
|
1.57 |
1.86 |
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 |
Yes |
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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 |
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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.
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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.
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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.
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The diamond jewellery industry in India today may be
more than Rs 60000 millions and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
-
This could be the biggest credibility crisis the
Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs
20000.000 millions lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and diverted
funds to businesses like real estate and capital markets. Many of themselves
made money from these businesses but their diamond companies have gone sick and
declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
NOTE: The registered office of the company has been shifted from 114, Prasad Chambers, Opera House, Charni Road, Mumbai – 400007, Maharashtra, India to the present address w.e.f. 15.02.2008.
NATURE OF
OPERATIONS:
Subject was incorporated on 16th September 2002 under the
Indian Companies Act, 1956 (the “Act”). The company is situated in Seepz and
engaged in the business of manufacturing export of Gold Studded Jewellery.
PERFORMANCE:
The Company had
year achieved export turnover of Rs.255.529 Millions In comparison to Rs.226.189
Millions in the last year. There was after tax profit of Rs. 12.498 Millions In
comparison of Rs. 8.162 Millions in previous year.
BANKERS CHARGES
REPORT AS PER REGISTRY
|
This form is for |
Modification of
charge |
|
Charge identification
number of the modified |
90148889 |
|
Corporate
identity number of the company |
U52393MH2002PTC137208 |
|
Name of the
company |
PRETTY JEWELLERY
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Unit No. 402, Block I, Seepz++, MIDC, Marol, Andheri (East),
Mumbai-400096, Maharashtra, India |
|
Type of charge |
Book Debts Movable Property
[not being pledge] Immovable
Property Others |
|
Particular of
charge holder |
Vijaya Bank, Overseas Branch, Maker Chamber-IV, Ground Floor, 222,
Nariman Point, Mumbai-400021, Maharashtra, India |
|
Email |
|
|
Nature of description
of the instrument creating or modifying the charge |
Hypothecation
Agreement. Supplementary
Agreement (For Pre-shipment). Supplementary
Agreement (For Post-shipment). Memorandum of
Entry for creation of EMTD by way of constructive delivery. |
|
Date of
instrument Creating the charge |
04.03.2011 |
|
Amount secured by
the charge |
Rs.113.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Pre-shipment: upto
270 days: BR+1.50=10.50%, Post-Shipment:DP Bills: beyond transit
period:BR+6=15%,DA Bills: beyond six months: BR+6=15%,Subject to RBI/ H.O.
guidelines/Bank's stipulation from time to time. Terms of
Repayment Fund based WC
Limit: Repayable on demand, Facilities for a period of one year from the date
of sanction. Subject to stipulations by the Bank from time to time. Margin PCL/PCFC(H) :
25%, Subject to
stipulations by the Bank from time to time. Extent and
Operation of the charge First Charge Others Additional Penal
interest @2% p.a. in case of default. Subject to
stipulations by the Bank from time to time. |
|
Short particulars
of the property charged |
Hypothecation of
Plant and Machinery, fixed assets, fully insured raw materials, WIP, finished
goods of studded gold jewellery meant for Export with cover under WTPCG of
ECGCI. Export
documentary DP/DA bills and Book Debts. EMTD of Office Premises No.1104, 11th Floor, at
Prasad Chambers, Opera House, Mum-4, admeasuring area 243 Sq. ft. in the name
of Mr. Shailesh R. Mehta. EMTD of Office Premises No.1114, 11th Floor, at
Prasad Chambers, Opera House, Mum-4, admeasuring area 312 Sq. ft. in the name
of Mr. Shailesh R. Mehta. EMTD of Office Premises No.1103, 11th Floor, at
Prasad Chambers, Opera House, Mum-4, admeasuring area 325 Sq. ft. in the name
of Mr. Shailesh R. Mehta. EMTD of Residential Flat No. 602, 6th Floor, Manju
Appt. N D Road, Mum-6, admeasuring
area 1365 Sq. ft. in the name of Mr. Shailesh R Mehta and Mrs. Shilpa S
Mehta. |
|
Date of latest
modification prior to the present modification |
31.03.2009 |
|
Particulars of
the present modification |
By this mod.
Overall Cr. Limit stands at 113.0000 millions comprising of [PCL/PCFC
(H)-550, PSC (FDBP/FUDBP)-550, FC: 3.000 millions] secured by continuing
securities of hypothecation of stocks of raw materials, WIP, semi-finished
and finished goods of polished cut and polished diamonds, studded gold
jewellery meant for Export with cover under WTPCG of ECGCI, Export
documentary DP/DA bills and Continuing
Securities of all existing EMTD by way
of constructive delivery |
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Counter Bank
Guarantee For custom bond (net of against margin money) |
0.000 |
0.375 |
|
Bill Discounted with Bank |
38.948 |
53.438 |
|
Forward Contract
entered by company ($ 3,085,450.27) |
98.032 |
139.775 |
|
Total |
136.980 |
193.588 |
FIXED ASSETS:
·
Factory Building
·
Plant and Machinery
·
Office Equipments
·
Computer Software
·
Furniture and Fixtures
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.55.42 |
|
|
1 |
Rs.86.04 |
|
Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.