MIRA INFORM REPORT
|
Report Date : |
09.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
LYPSA GEMS AND JEWELLERY LIMITED (w.e.f. 07.03.2012) |
|
|
|
|
Formerly Known
As : |
MALOO GEMS AND JEWELLERY LIMITED (w.e.f. 12.01.2010) MALOO POLYMERS LIMITED |
|
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|
Registered
Office : |
2nd Floor, Diamond Park Building, Opposite Ambika Nagar
Society, Dargah Road, Navsari – 396445, Gujarat |
|
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
30.11.1995 |
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|
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Com. Reg. No.: |
04-028270 |
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Capital
Investment / Paid-up Capital : |
Rs. 140.400 Millions |
|
|
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CIN No.: [Company Identification
No.] |
L28990GJ1995PLC028270 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTM05742C |
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PAN No.: [Permanent Account No.] |
AABCM0649K |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges |
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Line of Business
: |
Manufacturing and Trading in Diamonds. |
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|
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|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 950000 |
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|
Status : |
Satisfactory |
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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 satisfactory track record. The company has seen an increase in its sales turnover as well as net
profitability during 2013. Networth appears to be decent. The ratings also take into consideration the small scale of operations
and low profitability levels given the trading nature of the business . However, trade relations are fair. Business is active. Payment terms
are reported as slow but correct. In view of long standing experience of the promoters, 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says the
latest India Development Update report released by the World Bank. The report
says that the adverse effects of rupee depreciation are likely to be offset by
the gains in the exports performance due to improved external competitiveness.
Since May this year, the local currency has depreciated substantially and fell
to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of 6.46
% for the month of September. It is up from 6.10 % in August. Growth continues
to be muted with factory output plunging to 0.6 % in August. Onion prices
have risen nearly 300 % from last September. Vegetables cost nearly 90 % more
than they did last year. Wake up to the economic contribution of slum dwellers.
They contribute more than 7.5 % to the country’s gross domestic product,
according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Short term fund based limits: “A4” |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
July, 2012 |
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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-67413600)
LOCATIONS
|
Registered Office/ Factory : |
2nd Floor, Diamond Park Building, Opposite Ambika Nagar
Society, Dargah Road, Navsari – 396445, Gujarat, India |
|
Tel. No. : |
Not Available |
|
Fax No. : |
Not Available |
|
E-Mail : |
|
|
Website : |
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|
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Corporate Office 1: |
32 Kala Bhavan, 3 Mathew Road, Opera House, Mumbai – 400004, Maharashtra, India |
|
Tel. No. : |
91-22-23670031 |
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|
|
|
Corporate Office 2: |
BC-6021 Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India |
|
Tel. No. : |
91-22-67413600 |
|
Fax No. : |
91-22-67413614 |
|
E-Mail : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Dipankumar Babulal Patwa |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Manish Jaysukhlal Janani |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Jeeyan Dipankumar Patwa |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
14.08.1989 |
|
Qualification : |
· BSC Management · MSC International Management, LSE |
|
Date of Appointment : |
23.06.2009 |
|
|
|
|
Name : |
Mr. Ravindra Chandulal Sanghavi |
|
Designation : |
Independent and Non Executive Director |
|
Date of Birth/Age : |
03.07.1960 |
|
Qualification : |
B.Com |
|
Date of Appointment : |
23.06.2009 |
|
|
|
|
Name : |
Mr. Ajit Mangaldas Shah |
|
Designation : |
Independent and Non Executive Director |
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|
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|
Name : |
Mr. Bhavesh Shashikant Sheth |
|
Designation : |
Independent and Non Executive Director |
|
|
|
|
Name : |
Mr. Pankajkumar Vrajlal Shah |
|
Designation : |
Independent and Non Executive Director |
KEY EXECUTIVES
|
Name : |
Mrs. Neelam Maheshwari |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5040000 |
35.90 |
|
|
5040000 |
35.90 |
|
|
5040000 |
35.90 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5040000 |
35.90 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
3580242 |
25.50 |
|
|
|
|
|
|
1112405 |
7.92 |
|
|
3679697 |
26.21 |
|
|
627656 |
4.47 |
|
|
543250 |
3.87 |
|
|
83406 |
0.59 |
|
|
1000 |
0.01 |
|
|
9000000 |
64.10 |
|
Total Public shareholding (B) |
9000000 |
64.10 |
|
Total (A)+(B) |
14040000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
14040000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Trading in Diamonds. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|
|
|
|
Bankers : |
· Bank of India, Opera House Branch, Hermes House, Mama Parmanand Marg, Opera House, Mumbai - 400004, Maharashtra, India · Oriental Bank of Commerce ·
Indusind Bank Limited |
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|
|
|
Banking
Relations : |
-- |
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|
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|
Auditors : |
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|
Name : |
Doshi Maru and Associates Chartered Accountants |
|
Address : |
9, Shreepal Building, S N Road, Tambe Nagar, Mulund– (West), Mumbai – 400080, Maharashtra, India |
|
Tel. No. : |
91-22-23472578/ 25654859 |
|
|
|
|
Related Party : |
Lypsa Gems |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14040000 |
Equity Shares |
Rs.10/- each |
Rs. 140.400 Millions |
|
|
|
|
|
Note:
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period :
|
Particulars |
As at 31st March 2012 |
|
No. of Shares |
|
|
Equity shares at the beginning of the year |
70,20,000 |
|
Add : Bonus shares issued by Capitalisation of Securities Premium Account |
70,20,000 |
|
Add : Shares issued at Premium |
Nil |
|
Equity shares at the end of the year |
1,40,40,000 |
|
Particulars |
As at 31st March 2012 |
|
Amount of
Equity Capital (Rs.in Millions) |
|
|
Amount for Equity share capital at the beginning of the year |
70.200 |
|
Add : Amount for Bonus shares issued by Capitalisation of Securities Premium Account |
70.200 |
|
Add : Amount for shares issued at Premium |
Nil |
|
Amount for Equity share capital at the end of the year |
140.400 |
Details of shares
held by each shareholder holding more than 5% shares :
|
Name of Shareholder |
As at March 31st, 2012 |
|
|
No. of Shares |
% of Holding |
|
|
Manish Jaysukhlal Janani |
25,22,500 |
17.97 |
|
Dipen Babubhai Patwa |
25,17,500 |
17.93 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
140.400 |
70.200 |
|
(b) Reserves & Surplus |
|
96.984 |
156.828 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
237.384 |
227.028 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.069 |
0.098 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
0.069 |
0.098 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
8.242 |
24.337 |
|
(b) Trade
payables |
|
1072.407 |
320.786 |
|
(c) Other
current liabilities |
|
12.388 |
180.366 |
|
(d) Short-term
provisions |
|
8.905 |
13.469 |
|
Total Current
Liabilities (4) |
|
1101.942 |
538.958 |
|
|
|
|
|
|
TOTAL |
|
1339.395 |
766.084 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
1.276 |
1.557 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
2.572 |
4.983 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
6.714 |
10.941 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
10.562 |
17.481 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
14.984 |
0.000 |
|
(b)
Inventories |
|
226.771 |
66.988 |
|
(c) Trade
receivables |
|
1020.569 |
394.118 |
|
(d) Cash
and cash equivalents |
|
54.049 |
242.933 |
|
(e)
Short-term loans and advances |
|
11.978 |
43.843 |
|
(f) Other
current assets |
|
0.482 |
0.721 |
|
Total
Current Assets |
|
1328.833 |
748.603 |
|
|
|
|
|
|
TOTAL |
|
1339.395 |
766.084 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
50.200 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
16.780 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
66.980 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.207 |
|
|
2] Unsecured Loans |
|
|
706.590 |
|
|
TOTAL BORROWING |
|
|
706.797 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.118 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
773.895 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1.571 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
5.866 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
282.623 |
|
|
Sundry Debtors |
|
|
747.824 |
|
|
Cash & Bank Balances |
|
|
81.264 |
|
|
Other Current Assets |
|
|
|
|
|
Loans & Advances |
|
|
45.028 |
|
Total
Current Assets |
|
|
1156.739 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
304.382 |
|
|
Other Current Liabilities |
|
|
78.925 |
|
|
Provisions |
|
|
7.937 |
|
Total
Current Liabilities |
|
|
391.244 |
|
|
Net Current Assets |
|
|
765.495 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.963 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
773.895 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2598.353 |
3362.669 |
1940.335 |
|
|
|
Other Income |
84.124 |
213.888 |
29.422 |
|
|
|
TOTAL (A) |
2682.477 |
3576.557 |
1969.757 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
638.076 |
|
|
|
|
|
Purchases of Stock-in-Trade |
1995.784 |
2061.394 |
|
|
|
|
Employee benefits expense |
4.007 |
1.928 |
|
|
|
|
Other Expenses |
26.608 |
27.700 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-trade |
(98.632) |
92.121 |
|
|
|
|
TOTAL (B) |
2565.843 |
3364.132 |
1931.919 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
116.634 |
212.425 |
37.838 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
86.477 |
182.751 |
22.187 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
30.157 |
29.674 |
15.651 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
0.529 |
0.511 |
0.262 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
29.628 |
29.163 |
15.389 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.640 |
9.691 |
4.431 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
20.988 |
19.472 |
10.958 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
26.828 |
16.780 |
8.759 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
7.020 |
7.020 |
2.510 |
|
|
|
Provision for Reduction in Value of Investments |
2.473 |
1.265 |
0.000 |
|
|
|
Tax on Proposed Dividend |
1.139 |
1.139 |
0.427 |
|
|
BALANCE CARRIED
TO THE B/S |
37.184 |
26.828 |
16.780 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales |
39.544 |
45.080 |
2.960 |
|
|
TOTAL EARNINGS |
39.544 |
45.080 |
2.960 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
52.342 |
65.916 |
47.430 |
|
|
|
|
52.342 |
65.916 |
47.430 |
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
2.11 |
2.77 |
2.18 |
|
|
|
Diluted |
1.06 |
1.68 |
2.18 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
30.06.2013 |
30.09.2013 |
|
Type |
1st
Quarter
|
2nd
Quarter
|
3rd Quarter |
4th
Quarter |
5th
Quarter |
6th
Quarter |
|
Net Sales |
660.100 |
779.900 |
816.600 |
762.800 |
708.100 |
1182.900 |
|
Total Expenditure |
655.200 |
767.100 |
801.800 |
746.400 |
699.300 |
1176.300 |
|
PBIDT (Excl OI) |
5.000 |
12.800 |
14.800 |
16.400 |
8.800 |
6.600 |
|
Other Income |
2.100 |
0.700 |
1.100 |
05.100 |
4.000 |
9.300 |
|
Operating Profit |
7.100 |
13.500 |
16.000 |
21.400 |
12.800 |
15.900 |
|
Interest |
1.500 |
3.400 |
5.700 |
4.100 |
3.600 |
3.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
5.600 |
10.100 |
10.300 |
17.300 |
9.100 |
12.100 |
|
Depreciation |
0.100 |
0.100 |
0.100 |
0.300 |
0.500 |
0.500 |
|
Profit Before Tax |
5.500 |
10.000 |
10.200 |
17.000 |
8.700 |
11.600 |
|
Tax |
1.600 |
3.100 |
3.500 |
6.300 |
2.800 |
3.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
3.900 |
7.000 |
6.700 |
10.800 |
5.900 |
7.800 |
|
Extraordinary Items |
0.000 |
0.000 |
-0.600 |
0.600 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
3.900 |
7.000 |
6.100 |
11.400 |
5.900 |
7.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.78
|
0.54 |
0.56 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.14
|
0.87 |
0.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.22
|
3.83 |
13.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.13 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.03
|
0.11 |
10.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.21
|
1.39 |
2.96 |
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 |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10374179 |
14/08/2012 |
150,000,000.00 |
BANK OF INDIA |
OPERA HOUSE BRANCH, HERMES HOUSE, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI - 400004, MAHARASHTRA, INDIA |
B57128720 |
UNSECURED LOANS
|
PARTICULAR |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans and Advances |
|
|
|
From Director |
8.242 |
0.000 |
|
From Others |
0.000 |
24.337 |
|
Total |
8.242 |
24.337 |
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.
-
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 –
-
Gem and Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The purpose of this discussion is to provide an understanding of Subject financial results and business performance by focusing on changes in certain key measures from year to year.
THE GLOBAL ECONOMY
AND THE DIAMOND INDUSTRY
The global economy has not had a bumper year. The extent to which growth in emerging markets can compensate for weaknesses in mature ones has diminished with each crisis. The Euro-zone catastrophe has spread across European borders, along with resulting concerns about its global impact. Similarly, trends in the U.S. have done little to spur confidence. U.S. is teetering on another recession as job growth fails to materialize; government spending remains high and the last round of quantitative easing did little to stimulate growth. Output in the Eurozone continues to slump as the debt crisis just won't go away.
These results have impacted growth projections in important emerging economies such as China. The World Bank revised its forecast for the Chinese economy predicting growth of 9.3 percent in 2011 and 8.7 percent in 2012. Growth is still strong in developing East Asia, but continues to moderate mainly due to weakening external demand. Increasingly, China is expected to strengthen its own domestic consumption to compensate for a slowdown in exports to the U.S. and Europe.
More relevant now is the impact that a global economic slowdown may have on the diamond industry. By most measures, growth in the trade outpaced that of other sectors and the general economy in 2011, driven by the strong trading in the first half of the year and despite weak consumer confidence. The diamond industry is enjoying a period of rising customers due to the increasing emergence of markets in India and China.
However, in the current economic environment, the fact is that in the diamond market a lower volume of goods is being traded for higher values. For example, while Hong Kong's polished diamond imports by value rose 33 percent year on year to $13.32 billion in the first nine months of 2011, by volume they fell 2 percent to 20.962 million carats. The average price of these goods was up 36 percent from a year earlier.
If global economic growth is set to slow in 2012, it will impact demand, prices and, most importantly, sentiment in the diamond industry throughout the year, as it did in the latter half of 2011. The new economic environment makes for stressful, but interesting, times indeed. A correction in diamond prices might strengthen to consumer demand.
OUTLOOK
In the short term, they expect rough diamond prices to fall and price stability to return. They also don't see a major decline in polished diamond prices. These two factors together shall ensure a healthy profit margin in the diamond manufacturing and polishing business.
They also expect a revival in demand from Hong Kong and Mainland China. America has not seen a major decline in demand and has been supportive unlike during 2008 and this has been a big positive. They expect American demand to remain stable. The Indian diamond market should also see an increase in demand as they approach the wedding and festival season.
COMPANY'S GOAL
Lypsa intends to become a fully integrated and profitable diamond company in the next 3 years. They intend to go down the value chain and become closer to the customer through retail diamond and jewelry sales and thereby increase profit margins. They intend to build a well-managed corporate organization with standard processes and controls, competent management and reduced dependency on the promoters to generate revenue - features that are quite unique to Indian diamond companies.
BUSINESS MODEL
Lypsa is in the process of increasing production capacity at its new factory in Navsari, Gujarat. A factory is also proposed in Gujarat to produce small sized diamonds at affordable cost. This year will see substantial revenue from manufacturing activities. This is in line with their aim of generating maximum revenue from the manufacturing business that allows higher value-add than the trading business.
In house manufacturing reduces the variance in cutting standards and allows the steady production of a high quality standard product, which is valued higher by traders, jewelers and consumers. It also safeguards against the possibility of theft and malpractice, which are a common occurrence in outsourced diamond production.
DIAMOND VALUE CHAIN
OVERVIEW: A JOURNEY 'FROM MINE TO FINGER'
Eight stages define the value chain in the diamond industry; beginning with the exploration of a potential diamond deposit and ending with the demand for diamonds by millions of consumers around the world. Along the way many different players-miners, dealers, craftspeople, jewelers-face distinct market dynamics and economic challenges.
EXPLORATION
In this stage producers seek commercially viable diamond resources, usually by finding and evaluating kimberlite and lamproite pipes that might contain diamond ore. When a promising site is located the producers develop and construct new mines.
PRODUCTION
Getting the diamondiferous ore out of the ground usually occurs through open-pit or underground mining. Alluvial and marine mining are two other methods of diamond production. Once mined, the diamond ore passes through various processing stages to extract rough diamonds from it.
ROUGH-DIAMOND SALES
Next producers inspect, classify and prepare the diamonds for rough-diamond sales. London, Moscow and Antwerp are the main centers for the purchase and trade of rough diamonds. These primary sales most often take place within the sightholder system, a system specific to the diamond industry in which a select group of verified buyers are allowed to purchase rough product. Other sales channels include auctions and spot sales.
CUTTING AND POLISHING
This stage, in which diamonds are transformed from rough stones into finished gems, comprises five steps: determining the optimal cut, cleaving or sawing to break the rough diamond into pieces, bruiting to give the diamond the desired shape, polishing to cut the facets and final inspection to ensure quality. Diamond cutting requires specialized knowledge, tools and equipment. Thousands of small players populate this segment of the industry, mostly in India and elsewhere in Asia. Governments are increasingly requiring diamond producers to keep some profits closer to home by developing a local infrastructure and talent, with the result that countries including Botswana are emerging as cutting and polishing centers.
POLISHED DIAMOND
SALES
Polished diamonds get sold to manufacturers for jewelry manufacturing. The sales are transacted either directly by cutters and polishers or through dealers. Antwerp is the key polished diamond sales center, and all major diamond players maintain a presence there. Most of the polished gem sales also take place in Antwerp, but recently the site of sale is shifting closer to jewelry manufacturers in India and China, with many companies opening regional offices.
JEWELRY MANUFACTURING
Manufacturers use both in-house and outside designers to create their product, and the sector is quite fragmented. Thousands of players ranging from individual shops to large companies such as Tiffany, Cartier and Chow Tai Fook are integrated into different steps of the value chain, from rough diamond sales to jewelry design and manufacturing to retail. A large share of the mid- to low-range jewelry manufacturing takes place in China and India.
RETAIL SALES
More than a quarter million retailers sell jewelry to consumers around the world. Retail channels include independent stores, mass-market chains such as Wal-Mart for low-end jewelry and high-end specialty chains such as Harry Winston.
CONSUMER DEMAND
Demand is driven by the millions of people around the world who want to own diamond jewelry. At either end of the value chain a handful of well-known public companies operate and earn the industry's highest profits. In the middle of the chain diamonds pass through a complex and fragmented distribution system in which many thousands of individuals and small businesses, almost all privately owned, are bound together in an intricate web of relationships. These cutters, polishers and manufacturers engage in a significant amount of back-and-forth trading. Outsiders who voice concern about the lack of transparency in the diamond industry point specifically to the accuracy of stock-level estimates and to the setting of prices. A comparison with other commodities and precious minerals, however, shows that the diamond industry is not unique. A similar level of uncertainty also surrounds stock levels at key stages of the value chain in the markets for precious metals such as gold, platinum and palladium.
As the diamonds pass through each stage of the chain, their value grows in relatively small increments until they reach manufacturing and retail. The highest portion of revenues is generated at the retail stage, with revenues in 2010 slightly exceeding $60 billion worldwide. The highest profit margins are realized in the production and retail segments at either end of the chain. In 2010 players in rough production achieved operating margins of 22 to 26 percent, the highest in the industry. Next highest were the 5 to 10 percent margins achieved by retailers. Margins and revenues are lowest in the middle segments of the value chain. The total industry profit pool was approximately $11 billion in 2010.
LYPSA'S POSITION IN
THE DIAMOND VALUE CHAIN
The core activity of Lypsa is cutting and polishing of rough diamonds to convert them into finished stones that can be sold to traders and jewelers. Apart from this, Lypsa also sells rough diamonds in the open market that it procures from its sources if it feels that the profit on rough diamond sale is going to be larger than when postprocessing. Thus, Lypsa is present in the stages from Rough Diamond Sales to Polished Diamond Sales. As stated above, these activities enjoy relatively lower profit margins than retailing and production. Acknowledging this, Lypsa has decided to expand into the retail segment through a foray into jewellery which will allow high profit margins.
FUTURE PLANS
Research has been commissioned to plan the entry of Lypsa in the jewellery space. The growing demand of branded jewellery, higher profit margins than loose diamonds and the broad customer base make the jewellery industry a very attractive forward integration option. At the end of the year, we expect the launch of the jewelry venture.
Increasing production capacity has been proposed through expansion of the current facility and setting up of a new factory in Gujarat. A program has been initiated to cut down manufacturing costs without compromising on quality.
Setting up of an R&D unit is also on the cards to
develop unique diamond cuts. These cuts will be proprietary to Lypsa and will
be marketed to retailers.
AUDITED FINANCIAL RESULTS FOR THE HALF YEAR ENDED 31ST MARCH 2013
(Rs. In Millions)
|
PARTICULAR |
31.03.2013 (AUDITED) |
|
EQUITY AND
LIABILITIES |
|
|
Shareholders’
funds |
|
|
(a) Share capital |
140.400 |
|
(b) Reserves and surplus |
114.595 |
|
(c) Money received against share warants |
-- |
|
Sub-total -
Shareholders' funds |
254.995 |
|
|
|
|
Share application money pending allotment |
-- |
|
|
|
|
Minority Interest |
-- |
|
|
|
|
Non-current
liabilities |
|
|
(a) long-term borrowings |
-- |
|
(b) Deferred tax liabilities (Net) |
1.725 |
|
(c) Other long term
liabilities |
-- |
|
(d) long-term
provisions |
-- |
|
Sub-total
- Non-current liabilities |
1.725 |
|
|
|
|
Current liabilities |
|
|
(a) Short
term borrowings |
210.419 |
|
(b) Trade
payables |
1002.685 |
|
(c) Other
current liabilities |
25.230 |
|
(d) Short-term
provisions |
13.702 |
|
Sub-total - Current
liabilities |
1252.035 |
|
TOTAL - EQUITY AND LIABILITIES |
1508.755 |
|
|
|
|
ASSETS |
|
|
Non-current
assets |
|
|
(a) Fixed
Assets |
17.489 |
|
(b)
Goodwill on Consolidation |
-- |
|
(c) Non-current Investments |
5.356 |
|
(d) Deferred tax assets (net) |
-- |
|
(e)
Long-term Loan and Advances |
10.146 |
|
(f) Other
Non-current assets |
-- |
|
Sub-total
- Non-current assets |
32.991 |
|
Current assets |
|
|
(a)
Current investments |
0.794 |
|
(b)
Inventories |
207.547 |
|
(c) Trade
receivables |
1173.903 |
|
(d) Cash
and cash equivalents |
86.136 |
|
(e)
Short-term loans and advances |
7.144 |
|
(f) Other
current assets |
0.241 |
|
(e) Other current assets |
0.241 |
|
Sub-total
- Current assets |
1475.764 |
|
TOTAL
- ASSETS |
1508.755 |
AUDITED/ UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST MARCH,
2013
(Rs. In Millions)
|
Particulars |
3 MONTHS ENDED |
YEAR ENDED |
|
|
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
Audited |
Unaudited |
Audited |
|
|
Net Sales/ Income from Operations/ Other Operating Income |
762.753 |
816.632 |
147.557 |
|
2. Expenditure |
|
|
|
|
a) Increase/ Decrease in Stock in trade and work in progress |
92.588 |
(87.283) |
147.557 |
|
b) Consumption of
Raw Materials |
625.259 |
588.668 |
2156.885 |
|
c)
Purchases of trade goods |
18.146 |
295.738 |
597.979 |
|
d)
Employee Cost
|
8.494 |
4.703 |
19.295 |
|
e)
Depreciation |
0.306 |
0.136 |
0.614 |
|
f)
Other Expenditure |
1.883 |
(0.030) |
48.675 |
|
Total |
746.676 |
801.932 |
2971.004 |
|
3. Profit from
Operations before Other Income, Interest and Exceptional Items (1-2) |
16.077 |
14.700 |
48.245 |
|
4. Other Income |
5.055 |
1.119 |
8.992 |
|
5. Profit before Interest and Exceptional Items (3+4) |
21.132 |
15.819 |
57.237 |
|
6. Interest |
4.093 |
5.659 |
14.614 |
|
7.Profit after Interest but before Exceptional Items |
17.039 |
10.159 |
42.624 |
|
8.Exceptional Items |
0.027 |
-- |
0.027 |
|
9. Profit(+)/
Loss(-) from Ordinary Activities before Tax
(7+8) |
17.012 |
10.159 |
42.597 |
|
10. Tax expenses |
6.256 |
3.460 |
14.356 |
|
11. Net
Profit(+)/ Loss(-) from Ordinary Activities after Tax (9-10) |
10.757 |
6.699 |
28.242 |
|
12. Extraordinary Items (net of tax expenses Rs.) |
(0.596) |
0.596 |
-- |
|
13. Net Profit(+)/ Loss(-) for the period (11-12) |
11.353 |
6.103 |
28.242 |
|
14. Paid-up Equity Share Capital |
140.400 |
140.400 |
140.400 |
|
15. Reserves excluding revaluation reserve as per balance sheet of
previous accounting year |
Nil |
Nil |
Nil |
|
16. Earning Per Share (EPS) |
|
|
|
|
(a) Basic and Diluted EPS before extraordinary items for the period
for the year to date and for the previous year (not annualized) |
0.81 |
0.43 |
2.01 |
|
(b) Basic and Diluted EPS after extraordinary items for the period for
the year to date and for the previous year (not annualized) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
17. Public
shareholding |
|
|
|
|
- No. of shares |
9000000 |
9000000 |
9000000 |
|
- Percentage of holding |
64.10 |
64.10 |
64.10 |
|
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered |
|
|
|
|
-Number of Shares |
Nil |
Nil |
Nil |
|
-- Percentage of Shares (As a % of the total Shareholding of Promoter
and Promoter Group) |
Nil |
Nil |
Nil |
|
-- Percentage of Shares (as a % of the total share capital of the
Company) |
Nil |
Nil |
Nil |
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
5040000 |
5040000 |
5040000 |
|
-- Percentage of Shares (As a % of the total Shareholding of Promoter
and Promoter Group) |
100.00 |
100.00 |
100.00 |
|
-- Percentage of Shares (as a % of the total share capital of the
Company) |
35.90 |
35.90 |
35.90 |
|
Particulars |
3 Months Ended 31.03.2013 |
|
B INVESTOR COMPLAINTS (Nos.) |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
Nil |
FIXED ASSETS
· Air Conditions
· Aquaguard
· Furniture and Fixture
· Motor Car
· Office Equipments
· Water coolers
· Computers
·
Safe
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.62.73 |
|
|
1 |
Rs.100.92 |
|
Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
44 |
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.