MIRA INFORM REPORT

 

 

 

 

Report Date :

02.06.2012

 

IDENTIFICATION DETAILS

 

Name :

RIDHHI SIDHHI DIAMOND

 

 

Registered Office :

6/201, Yashodhan Apartment, Four Bunglow, Andheri (West), Mumbai - 400053, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Establishment :

2007

 

 

Capital Investment / Paid-up Capital :

Rs.2.000 Millions

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Trader of Rough and Polished Diamonds

 

 

No. of Employees :

4 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 8000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established proprietory concern having satisfactory track records. Trade relations are reported as fair. Business is active. Payments are reported to be Usually correct and as per commitments.

 

The concern 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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Suresh

Designation :

Proprietory

Contact No.:

91-9821898537/ 73

Date :

19.05.2012

 

LOCATIONS

 

Registered Office :

6/201, Yashodhan Apartment, Four Bunglow, Andheri (West), Mumbai - 400053, Maharashtra, India

Tel. No.:

91-22-26355741

Mobile No.:

91-9821898537/ 73 [Mr. Suresh Kamath]

Fax No.:

Not Available

E-Mail :

attri101@gmail.com

Area :

1400 sq. ft.

Location :

Rented

 

 

SOLE PROPRIETOR

 

Name :

Mr. Suresh Kamath

Designation :

Proprietor

Date of Birth/Age :

73 Years

Qualification :

HSC

 

 

BUSINESS DETAILS

 

Line of Business :

Trader of Rough and Polished Diamonds

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers

 

 

No. of Employees :

4 (Approximately)

 

 

Bankers :

Bank of India, Opera House, Mumbai, Maharashtra, India

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Joshi and Company

Chartered Accountants

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Capital Investment :

 

Owned :

Rs.2.000 Millions (Approximately)

Borrowed :

--

Total :

Rs.2.000 Millions (Approximately)

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

230.000

 

Expected Sales (2012-2013): Rs.250.000 Millions

 

The above information has been parted by Mr. Suresh

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

 

 

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

1.374

0.342

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

1.374

0.342

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

47.999

10.250

TOTAL BORROWING

 

47.999

10.250

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

49.373

10.592

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.027

0.000

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

53.044

42.438

 

Sundry Debtors
 

0.000

0.000

 

Cash & Bank Balances
 

8.162

0.739

 

Other Current Assets
 

0.117

0.066

 

Loans & Advances
 

53.755

21.461

Total Current Assets
 

115.078

64.704

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

65.707

54.090

 

Other Current Liabilities
 

0.025

0.022

 

Provisions
 

0.000

0.000

Total Current Liabilities
 

65.732

54.112

Net Current Assets
 

49.346

10.592

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

49.373

10.592

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

 

201.612

121.460

 

 

Other Income

 

0.000

0.000

 

 

TOTAL                                    

 

201.612

121.460

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

 

195.538

117.698

 

 

Accounting Charges

 

0.019

0.019

 

 

Audit Fees

 

0.015

0.015

 

 

Bank Charges

 

0.298

0.141

 

 

Bank Interest

 

4.149

2.615

 

 

Conveyance

 

0.031

0.030

 

 

ECGC Expense

 

0.000

0.005

 

 

Electric Expense

 

0.012

0.004

 

 

Franking, Stamping and Postage Charges

 

0.024

0.030

 

 

General Expenses

 

0.012

0.004

 

 

Legal and Professional Expense

 

0.015

0.033

 

 

Office Expense

 

0.029

0.033

 

 

Printing and Stationery charges

 

0.009

0.000

 

 

Rent, Rates and Taxes

 

0.036

0.027

 

 

Salary

 

0.294

0.240

 

 

Telephone Charges

 

0.017

0.006

 

 

VAT Audit Fees

 

0.010

0.000

 

 

TOTAL                                    

 

200.508

120.900

 

 

 

 

 

 

NET PROFIT

 

1.104

0.560

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2011

31.03.2010

PAT / Total Income

(%)
 

0.55

0.46

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

0.55

0.46

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

0.96

16.37

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.80

1.64

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 
82.77

188.19

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.75

1.20

 

 

 

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.       Constitution of the firm

Yes

4.       Premises details

Yes

5.       Type of Business

Yes

6.       Line of Business

Yes

7.       Promoter’s background

Yes

8.       No. of Employees

Yes

9.       Name of person contacted

Yes

10.   Designation of contact person

Yes

11.   Turnover of firm for last three years

Yes

12.   Profitability for last three years

Yes

13.   Reasons for variation <> 20%

--

14.   Estimation for coming financial year

Yes

15.   Capital in the business

Yes

16.   Details of sister concerns

No

17.   Major suppliers

No

18.   Major customers

No

19.   Payments terms

No

20.   Export / Import details

No

21.   Market information

--

22.   Litigations that the firm / promoter involved

--

23.   Banking Details

Yes

24.   Banking facility details

No

25.   Conduct of the banking account

--

26.   Buyer visit details

--

27.   Financials, if provided

Yes

28.   Incorporation details, if applicable

No

29.   Last accounts filed at ROC

No

30.   Major Shareholders, if available

No

 

 

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.0.060 Million mil and is rated amongst the fastest growing in the world. India ranks third in the world in domestic diamond consumption.

Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

Excerpts from Times of India dated 30th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs.20000.000 Millions lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 55.92

UK Pound

1

Rs. 86.03

Euro

1

Rs. 69.13

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

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

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