MIRA
INFORM REPORT
|
Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
JEWELMARK INDIA PRIVATE LIMITED |
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|
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|
Registered
Office : |
Unit No. 501, Tower 2, Seepz MIDC, Marol Area Andheri (East), Mumbai –
400096, Maharashtra |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
29.12.2003 |
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Com. Reg. No.: |
11-143715 |
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Capital
Investment / Paid-up Capital : |
Rs. 20.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U36910MH2003PTC143715 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ09358G |
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|
Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
MANUFACTURER
AND EXPORTER OF DIAMOND STUDDED JEWELLERY AND TRADING OF DIAMOND. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 156000 |
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|
|
|
Status : |
Moderate |
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|
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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 a moderate track record. The
reserves of the company seem to be insufficient and external borrowing of the
company appears to be huge. However, the performance capability seems to be improving. 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 slight
caution. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Unit No. 501, Tower 2, Seepz MIDC, Marol Area Andheri (East), Mumbai –
400096, Maharashtra, India |
|
Tel. No.: |
91-22-28290904/ 28290905/ 28291025 |
|
Fax No.: |
91-22-28290034/ 28290906 |
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E-Mail : |
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|
Website : |
DIRECTORS
AS ON 29.09.2012
|
Name : |
Mr. Kumarpal C. Shah |
|
Designation : |
Director |
|
Address : |
Mechelsesteenwe,
G211, Antwerpen, Belgium, 2018 |
|
Date of Birth/Age : |
11.06.1945 |
|
Date of Appointment : |
29.12.2003 |
|
DIN No.: |
01904179 |
|
|
|
|
Name : |
Mr. Parag Babulal Mehta |
|
Designation : |
Director |
|
Address : |
101, Ahoka Apartment,
10th Floor, 68 Nepeansea Road, Mumbai – 400006, Maharashtra, India |
|
Date of Birth/Age : |
30.09.1964 |
|
Date of Appointment : |
16.04.2009 |
|
DIN No.: |
02626039 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Kumarpal Chimanlal Shah |
|
500000 |
|
Shital Kumarpal Shah |
|
500000 |
|
Princess Gems and Gold Limited, Dubai |
|
1000000 |
|
|
|
|
|
Total |
|
2000000 |
AS ON 29.09.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
50.00 |
|
Directors
or relatives of directors |
|
50.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
MANUFACTURER
AND EXPORTER OF DIAMOND STUDDED JEWELLERY AND TRADING OF DIAMOND. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Union Bank of India, Overseas
Seepz Branch, #007, Block No. II, Seepz++ Complex, Jogeshwari Vikhroli Link
Road, Andheri ( East), Mumbai – 400096, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Sampat Mehta and Associates Chartered Accountants |
|
Address : |
101, Smiran Apartment CHSL, V B Deshpande Road, Off Tejpal
Scheme, Road No. 5, Vile Parle (East), Mumbai – 400057, Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AAAFS1266J |
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Holding Company : |
Princess Gems and Gold Limited |
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Enterprises under control of KMP : |
Ø Jay Gems Ø Shail
International Ø Shivani Gems Ø Jewelmark Europe |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
|
|
|
|
Terms/ rights attached to equity shares
The Company has one class of equity shares having
a par value of Rs. 10 per share. Each shareholder is eligible for one vote per
share held. In the event of liquidation, the equity shareholders are eligible
to reserves the remaining assets of the company after distribution of all
preferential amounts, in proportion to their shareholding.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
20.000 |
20.000 |
20.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19.049 |
2.001 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(7.186) |
|
|
NETWORTH |
39.049 |
22.001 |
12.814 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
39.652 |
39.455 |
36.512 |
|
|
2] Unsecured Loans |
17.173 |
17.173 |
17.173 |
|
|
TOTAL BORROWING |
56.825 |
56.628 |
53.685 |
|
|
DEFERRED TAX LIABILITIES |
4.694 |
4.603 |
4.337 |
|
|
|
|
|
|
|
|
TOTAL |
100.568 |
83.232 |
70.836 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
36.975 |
39.286 |
39.681 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
31.987
|
41.729 |
46.478 |
|
|
Sundry Debtors |
90.581
|
79.240 |
70.848 |
|
|
Cash & Bank Balances |
4.789
|
4.948 |
6.128 |
|
|
Other Current Assets |
11.545
|
5.603 |
0.000 |
|
|
Loans & Advances |
1.000
|
0.974 |
4.252 |
|
Total
Current Assets |
139.902
|
132.494 |
127.706 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
70.129
|
87.064 |
96.363 |
|
|
Other Current Liabilities |
6.180
|
1.484 |
0.064 |
|
|
Provisions |
0.000
|
0.000 |
0.124 |
|
Total
Current Liabilities |
76.309
|
88.548 |
96.551 |
|
|
Net Current Assets |
63.593
|
43.946 |
31.155 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
100.568 |
83.232 |
70.836 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
463.997 |
321.009 |
158.748 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
444.004 |
311.516 |
154.755 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
19.993 |
9.493 |
3.993 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
2.945 |
0.305 |
0.304 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
17.048 |
9.188 |
3.689 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export at FOB Value |
449.717 |
313.752 |
162.494 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3.122 |
1.901 |
21.016 |
|
|
|
Stores & Spares |
0.177 |
0.716 |
0.374 |
|
|
|
Capital Goods |
0.252 |
0.376 |
0.160 |
|
|
|
Returnable Samples |
0.377 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
3.928 |
2.993 |
21.550 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.52 |
4.59 |
1.84 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.67
|
2.86 |
2.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.30
|
5.53 |
2.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.43 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.46
|
2.57 |
4.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.83
|
1.50 |
1.32 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
No |
DIAMOND INDUSTRY –
INDIA
Ø 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.
Ø 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.
Ø 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.
Ø 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.
Ø 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.
Ø The diamond jewellery industry in India today may be more than Rs 60000 millions and is rated amongst the fastest growing in the world. India ranks third in the world in domestic diamond consumption.
Ø 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
Ø This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 20000 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.
Ø 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.
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
From Directors |
|
|
|
Kumarpal C. Shah |
17.173 |
17.173 |
|
Total |
17.173 |
17.173 |
NATURE OF
OPERATIONS:
Subject is in the business of manufacturing and export of diamond studded
jewellery and trading of diamond and jewelry in Mumbai Special Economic Zone
(SEZ) at Mumbai, in Maharashtra.
FIXED ASSETS:
Ø Leasehold Building
Ø Vehicles
Ø Furniture and
Fixture
Ø Computers
Ø Electrical
Fittings
Ø Equipments
Ø Plant and
Machinery
Ø Software
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 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 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. 53.99 |
|
|
1 |
Rs. 83.72 |
|
Euro |
1 |
Rs. 72.09 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
36 |
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.