MIRA INFORM REPORT

 

 

Report Date :

28.10.2013

 

IDENTIFICATION DETAILS

 

Name :

BHADIYADRA GEMS

 

 

Registered Office :

1, Shreeji Plaza, 1st Floor, Tata Road No. 1, Opera House, Mumbai-400004, Maharashtra 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

15.01.1993

 

 

Capital Investment / Paid-up Capital :

Rs.94.948 Millions

 

 

IEC No.:

0393012701

 

 

PAN No.:

[Permanent Account No.]

AAAFB1561H

 

 

Legal Form :

Partnership Concern with an unlimited liability of the partners

 

 

Line of Business :

Manufacturer, Exporter and Importer of Cut and Polished Diamonds.

 

 

No. of Employees :

1635 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 380000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established partnership concern having a moderate track record.

 

Mr. Piyush (Accounts Department) has provided us the general information and denied to disclose the financial information.

 

However, trade relations are reported as fair. Business is active. Payment terms are unknown.

 

The concern 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

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

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Short term : A4+ (Suspended)

Rating Explanation

Have minimal degree of safety and carry very high credit risk.

Date

August 2013

 

Reason:

The suspension follows in the absence of the requisite information from the company.

 

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAILTERS’ 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 PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Piyush

Designation :

Accounts Department

Contact No.:

91-261-3261766

Date :

26.10.2013

 

 

LOCATIONS

 

Registered Office :

1, Shreeji Plaza, 1st Floor, Tata Road No. 1, Opera House, Mumbai-400004, Maharashtra, India  

Tel. No.:

91-22-23694461

Mobile No.:

91-9819897971 [Mr. Mukesh R. Bhadiyadra]

Fax No.:

91-22-40040406

E-Mail :

bhadiyadragems@gmail.com

Location :

Owned

 

 

Factory :

1st Floor, Siddheshwar Building, Near Siddhkutir, Kapodra, Varachha Road, Surat-395006, Gujarat, India

Tel. No.:

91-261-3261766

Fax No.:

91-261-2574157

Location :

Owned

 

 

Sales Office :

Located at:

 

·         Mumbai, Maharashtra, India

 

 

PARTNERS

 

Name :

Mr. Mukesh R. Bhadiyadra

Designation :

Partner

Address :

205, 2nd Floor, Mankar House, Dhus Wadi, Zhawba Wadi, Thakurdwar, Mumbai-400002, Maharashtra, India

Date of Birth/Age :

01.04.1972

Qualification :

SSC

Experience :

21 Years

 

 

Name :

Mr. Dhiraj R. Bhadiyadra

Designation :

Partner

Address :

B-23/24, Sai Ashish Society, 2, Near Chandni Chowk, Piplod, Surat-395006, Gujarat, India

Date of Birth/Age :

01.06.1977

Qualification :

HSC

Experience :

16 Years

Voter ID No.:

THP3027679

 

 

Name :

Mr. Jitesh B. Kajavadra

Designation :

Partner

Address :

60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat-395006, Gujarat, India

Date of Birth/Age :

21.12.1982

Qualification :

HSC

Experience :

11 Years

 

 

Name :

Mr. Sanjay B. Kajavadra

Designation :

Partner

Address :

60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat-395006, Gujarat, India

Date of Birth/Age :

11.01.1981

Qualification :

HSC

Experience :

12 Years

Voter ID No.:

UGH1450733

 

 

Name :

Mr. Bhagvan K. Kajavadra

Designation :

Partner

Address :

60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat-395006, Gujarat, India

Date of Birth/Age :

03.08.1953

Qualification :

SSC

Experience :

36 Years

 

 

KEY EXECUTIVES

 

Name :

Mr. Piyush

Designation :

Accounts Department

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Cut and Polished Diamonds.

 

 

Exports :

 

Products :

Cut and Polished Diamonds

Countries :
  • USA
  • Hong Kong
  • Belgium
  • UAE
  • Israel
  • Sri Lanka

 

 

Imports :

 

Products :

Rough and Polished Diamonds

Countries :
  • Belgium
  • UAE
  • USA
  • Hong Kong

 

 

Terms :

 

Selling :

Credit [30, 60 and 90 Days]

 

 

Purchasing :

Credit [30, 60 and 90 Days]

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

 

No. of Employees :

1635 [Approximately] 

 

 

Bankers :

ICICI Bank Limited, 396/410, Shamitha Terrace, Lamington Road, Opera House, Mumbai, Maharashtra, India (Tel No.: 91-22-67574314)

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Rajpara and Company

Chartered Accountants

Tel. No.:

91-261-2544446/ 2548601

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Capital Investment :

 

Owned :

Rs. 94.948 Millions

Borrowed :

--

Total :

Rs.94.948 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

Particulars

 

 

 

31.03.2013

Sales Turnover (Approximately)

 

 

Not Divulged

 

 

 

 

 

 

The above information has been declined by Mr. Piyush (Accounts Department)

 

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

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Partners Capital

94.948

98.904

84.867

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

94.948

98.904

84.867

LOAN FUNDS

 

 

 

1] Secured Loans

66.299

69.583

75.820

2] Unsecured Loans

3.349

2.677

0.000

TOTAL BORROWING

69.648

72.260

75.820

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

164.596

171.164

160.687

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

30.391

33.157

33.680

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.025

0.025

0.025

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
147.355

120.730

115.630

 

Sundry Debtors
160.956

164.430

183.777

 

Cash & Bank Balances
0.893

24.125

0.973

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
16.465

17.413

12.792

Total Current Assets
325.669

326.698

313.172

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
184.405

180.325

185.174

 

Other Current Liabilities
0.000

0.000

0.000

 

Provisions
7.084

8.391

1.016

Total Current Liabilities
191.489

188.716

186.190

Net Current Assets
134.180

137.982

126.982

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

164.596

171.164

160.687

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

650.329

605.561

420.063

 

 

Other Income

28.083

3.688

24.942

 

 

TOTAL                                     (A)

678.412

609.249

445.005

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Polished Diamond Purchase

138.521

124.445

70.440

 

 

Rough Diamond Purchase (Trading)

0.000

0000

39.344

 

 

Raw Materials Consumed

411.504

395.679

266.465

 

 

Manufacturing and Others Expenses

78.661

82.302

59.251

 

 

Administrative Expenses

5.970

5.327

3.471

 

 

Interest on Partners Capital

3.000

3.000

0.000

 

 

Salary to Partners

1.500

1.250

0.000

 

 

Increase / Decrease in Finished Stocks

20.005

(20.724)

(11.467)

 

 

TOTAL                                     (B)

659.161

591.279

427.504

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

19.251

17.970

17.501

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

7.998

8.351

9.403

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

11.253

9.619

8.098

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

4.095

4.498

4.485

 

 

 

 

 

 

NET PROFIT

7.158

5.121

3.613

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.06

0.84

0.81

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.10

0.85

0.86

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.01

1.42

1.04

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.05

0.04

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.73

0.73

0.89

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.70

1.73

1.68

 

 

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

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

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

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

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

Yes

34]

External Agency Rating, 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.

-            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 & 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.

 

 

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 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. 61.63

UK Pound

1

Rs. 99.94

Euro

1

Rs. 85.14

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

BVA

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

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

-

 

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.