MIRA INFORM REPORT

 

 

Report Date :

30.10.2013

 

IDENTIFICATION DETAILS

 

Name :

GRT JEWELLERS (INDIA) PRIVATE LIMITED (w.e.f. 26.03.2013)

 

 

Formerly Known As :

G.R. THANGAMALIGAI JEWELERS PRIVATE LIMITED

 

 

Registered Office :

No. 138, Usman Road, T. Nagar, Chennai – 600017, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

14.07.1992

 

 

Com. Reg. No.:

18-023070

 

 

Capital Investment / Paid-up Capital :

Rs. 47.000 Millions

 

 

CIN No.:

[Company Identification No.]

U27310TN1992PTC023070

 

 

PAN No.:

[Permanent Account No.]

AAACR3582R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Jewellery and other ornaments.

 

 

No. of Employees :

Information denied by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 7230000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow bur correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

External borrowing of the company appears to be huge.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealing with some 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 – 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.

 

 

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 DENIED BY

 

Name :

Mr. G. Nagarajun

Designation :

Assistant General Manager – Finance

Contact No.:

91-44-24345062

Date :

28.10.2013

 

 

LOCATIONS

 

Registered Office :

No. 138, Usman Road, T. Nagar, Chennai – 600017, Tamilnadu, India

Tel. No.:

91-44-24345062/5042/5052/5062/5353

Fax No.:

91-44-24344495

E-Mail :

vgn@grtjewels.com

mail@grtjewels.com

Website :

www.grtjewels.com

 

 

Jewellary Branch 1 :

New Showroom 21, Coats Road (North Usman Road), T. Nagar, Chennai – 600017, Tamilnadu, India

Tel. No.:

91-44-23461515

Fax No.:

91-44-23461516

 

 

Jewellary Branch 2 :

58/1, M.C. Road(Near Veeras), Old Washermenpet, Chennai – 600021, Tamilnadu, India

Tel. No.:

91-44-42663515

 

 

Jewellary Branch 3 :

Old No.1794 New No. 530, 2nd Main, Sampige Road, Malleswaram, Land Mark : Near Sampige Theater, Bangalore – 560003, Karnataka, India

Tel. No.:

91-80-22921515

Fax No.:

91-80-2292-1516

 

 

Jewellary Branch 4 :

2B, Fort Station Road, Near Maris Theater, Tiruchirappalli – 620002, Tamilnadu, India

Tel. No.:

91-431-2731515

Fax No.:

91-431-2731661

 

 

DIRECTORS

 

As on 31.08.2013

 

Name :

Mr. Govindarajulu Rajendran

Designation :

Managing Director

Address :

No.4, Ramanathan Street, T. Nagar, Chennai – 600017, Tamilanadu, India

Date of Birth/Age :

18.10.1942

Date of Appointment :

09.08.2013

PAN No.:

AEEPG7361L

DIN No.:

02063138

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U52599TN1990PTC019909

GRT HOTELS AND RESORTS PRIVATE LIMITED

Director

15/07/1992

15/07/1992

-

Active

NO

2

U27310TN1992PTC023070

GRT Jewellers (India) Private Limited

Managing director

09/08/2013

17/07/1992

-

Active

NO

3

U01409TN1995PTC031132

MAHALAKSHMI ESTATES PRIVATE LIMITED

Director

27/04/1995

27/04/1995

-

Active

NO

4

U55101TN2000PTC046151

RAR HOTELS PRIVATE LIMITED

Director

14/12/2000

14/12/2000

-

Active

NO

5

U55101TN1995PTC031221

MACNUR HOSPITALITY INDIA PRIVATE LIMITED

Director

17/09/2001

17/09/2001

-

Amalgamated

NO

6

U55101TN2001PTC049513

MAMALLAPURAM HOTELS PRIVATE LIMITED

Director

01/02/2002

01/02/2002

-

Amalgamated

NO

7

U74900TN2010PTC075655

RAR ENTERPRISES PRIVATE LIMITED

Director

11/05/2010

11/05/2010

-

Active

NO

8

U93000TN2012PTC084918

MAHALAKSHMI GRAND INFRA PRIVATE LIMITED

Director

14/03/2012

14/03/2012

-

Active

NO

9

U93000TN2012PTC084947

MACNUR INFRASTRUCTURE PRIVATE LIMITED

Director

15/03/2012

15/03/2012

-

Active

NO

10

U93090TN2012PTC085005

MACNUR ENTERPRISES PRIVATE LIMITED

Director

19/03/2012

19/03/2012

-

Active

NO

11

U55101TN2013PTC089707

RAR Global Enterprises Private Limited

Director

20/02/2013

20/02/2013

-

Active

NO

12

U74900TN2013PTC091748

G.R.THANGAMALIGAI PRIVATE LIMITED

Director

19/06/2013

19/06/2013

-

Active

NO

 

 

Name :

Mr. Govindarajulu Rajendran Ananthapadmanabhan

Designation :

Director

Address :

No.4, Ramanathan Street, T. Nagar, Chennai – 600017, Tamilanadu, India

Date of Birth/Age :

22.07.1972

Date of Appointment :

25.07.2013

PAN No.:

AALPP9367N

DIN No.:

01485010

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U27310TN1992PTC023070

GRT JEWELLERS (INDIA) PRIVATE LIMITED

Director

25/07/2013

17/07/1992

-

Active

NO

2

U55101TN2000PTC046151

RAR HOTELS PRIVATE LIMITED

Director

14/12/2000

14/12/2000

11/10/2010

Active

NO

3

U55101TN1995PTC031221

MACNUR HOSPITALITY INDIA PRIVATE LIMITED

Director

17/09/2001

17/09/2001

-

Amalgamated

NO

4

U01409TN1995PTC031132

MAHALAKSHMI ESTATES PRIVATE LIMITED

Director

26/12/2001

26/12/2001

-

Active

NO

5

U55101TN2001PTC049513

MAMALLAPURAM HOTELS PRIVATE LIMITED

Director

01/02/2002

01/02/2002

-

Amalgamated

NO

6

U55101DL2001PLC112152

MAMALLAPURAM HOTELS LIMITED

Director

01/02/2002

01/02/2002

-

Not Available for eFiling

NO

7

U52599TN1990PTC019909

GRT HOTELS AND RESORTS PRIVATE LIMITED

Managing director

01/02/2002

01/02/2002

-

Active

NO

8

U74900TN2010PTC075655

RAR ENTERPRISES PRIVATE LIMITED

Director

11/05/2010

11/05/2010

-

Active

NO

9

U93000TN2012PTC084918

MAHALAKSHMI GRAND INFRA PRIVATE LIMITED

Director

14/03/2012

14/03/2012

-

Active

NO

10

U93000TN2012PTC084947

MACNUR INFRASTRUCTURE PRIVATE LIMITED

Director

15/03/2012

15/03/2012

-

Active

NO

11

U93090TN2012PTC085005

MACNUR ENTERPRISES PRIVATE LIMITED

Director

19/03/2012

19/03/2012

-

Active

NO

12

U93000TN2013PTC089696

RAR Corporate Services Private Limited

Director

19/02/2013

19/02/2013

-

Active

NO

13

U70200TN2013PTC089917

RAR Ventures Private Limited

Director

05/03/2013

05/03/2013

-

Active

NO

14

U74900TN2013PTC091748

G.R.THANGAMALIGAI PRIVATE LIMITED

Director

19/06/2013

19/06/2013

-

Active

NO

15

U55101TN1995PTC032857

WORLD PARK HOTELS (INDIA) Private LIMITED

Director

30/09/2013

02/09/2013

-

Active

NO

 

 

Name :

Mr. Rajendran Govindarajulu Radhakrishnan

Designation :

Director

Address :

No.4, Ramanathan Street, T. Nagar, Chennai – 600017, Tamilanadu, India

Date of Birth/Age :

09.04.1974

Date of Appointment :

14.07.1992

PAN No.:

AAEPR6723K

DIN No.:

01711654

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U27310TN1992PTC023070

GRT JEWELLERS (INDIA) PRIVATE LIMITED

Director

14/07/1992

14/07/1992

-

Active

NO

2

U01409TN1995PTC031132

MAHALAKSHMI ESTATES PRIVATE LIMITED

Director

27/04/1995

27/04/1995

-

Active

NO

3

U52599TN1990PTC019909

GRT HOTELS AND RESORTS PRIVATE LIMITED

Managing director

31/03/2010

29/07/1995

-

Active

NO

4

U55101TN2000PTC046151

RAR HOTELS PRIVATE LIMITED

Director

14/12/2000

14/12/2000

11/10/2010

Active

NO

5

U55101TN1995PTC031221

MACNUR HOSPITALITY INDIA PRIVATE LIMITED

Managing director

17/09/2001

17/09/2001

-

Amalgamated

NO

6

U74900TN2010PTC075655

RAR ENTERPRISES PRIVATE LIMITED

Director

11/05/2010

11/05/2010

-

Active

NO

7

U93000TN2012PTC084918

MAHALAKSHMI GRAND INFRA PRIVATE LIMITED

Director

14/03/2012

14/03/2012

-

Active

NO

8

U93000TN2012PTC084947

MACNUR INFRASTRUCTURE PRIVATE LIMITED

Director

15/03/2012

15/03/2012

-

Active

NO

9

U93090TN2012PTC085005

MACNUR ENTERPRISES PRIVATE LIMITED

Director

19/03/2012

19/03/2012

-

Active

NO

10

U70200TN2013PTC089699

RAR Sons Realtors India Private Limited

Director

19/02/2013

19/02/2013

-

Active

NO

11

U93000TN2013PTC089696

RAR Corporate Services Private Limited

Director

19/02/2013

19/02/2013

-

Active

NO

12

U74900TN2013PTC091748

G.R.THANGAMALIGAI PRIVATE LIMITED

Director

19/06/2013

19/06/2013

-

Active

NO

13

U55101TN1995PTC032857

WORLD PARK HOTELS (INDIA) PRIVATE LIMITED

Director

30/09/2013

02/09/2013

-

Active

NO

 

 

MAJOR SHAREHOLDERS

 

As on 31.08.2013

 

Names of Shareholders

 

No. of Shares

Govindarajulu Rajendran

 

133000

R. Jayashree

 

10

Rajendran Govindarajulu Radhakrishnan

 

145915

Govindarajulu Rajendran Ananthapadmanabhan

 

145915

T.S. Govindarajulu

 

10

R. Vasanthi

 

25050

Govindarajulu Rajendran Ananthapadmanabhan (HUF)

 

50

Rajendran Govindarajulu Radhakrishnan (HUF)

 

50

GRT Hotels and Resorts, India

 

10000

P. Swaroopa

 

5000

R. Madhavi

 

5000

Total

 

470000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 31.08.2013

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of jewellery and other ornaments.

 

 

Products :

Products Descriptions

ITC Code

Gold and Other precious Metal Ornaments

28421010

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by management

 

 

Bankers :

·         The Kurara Vysya Bank Limited, Central Loan Processing Cell, No. 37, Whites Road, Chennai – 600014, Tamilnadu, India

·         HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

·         IDBI Bank Limited, 115 Anna Salai, Saidapet, Chennai – 600015, Tamilnadu, India

·         The State Bank of Hyderabad, T. Nagar, Chennai – 600014, Tamilnadu, India

·         Bank of Baroda, Tiruvateewaranpet Branch, Madras – 600005, Tamilnadu, India

 

 

Facilities :

SECURED LOANS

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Rupee term loan from banks

178.380

289.857

Short Term Borrowings

 

 

Rupee term loan from banks

0.000

666.748

Working capital loans from banks

246.486

395.280

Loans repayable on demand from banks

8700.856

0.000

Total

9125.722

1351.885

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M. Srinivasan Associates

Chartered Accountants

Address :

5,B-Wing, Parsn Manere, 9th Floor, 442, Anna Salai, Chennai – 600006, Tamilnadu, India

PAN No.:

AABFS5013J

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :

·         G.R. Thanga Maligai

·         G.R. Thanga Maligai and sons

·         G.R. Thanga Maligai Firm

·         G.R. Thanga Maligai Pearls and Kundan

·         GRT Mahalakshmi Educational Charitable Trust

·         GRT Hotels and resorts

·         GRT Silverwares

·         Thanga Maligai Silver Artware

·         GRT Regency sameera Vellore

·         Hotel Radisson

·         Estate G. Mahalakshmi Ammal Trust

 

 

 

CAPITAL STRUCTURE

 

As on 31.08.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

475000

Equity Shares

Rs. 100/- each

Rs. 47.500 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

470000

Equity Shares

Rs. 100/- each

Rs. 47.000 Millions

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

47.000

47.000

47.000

(b) Reserves & Surplus

1760.506

1104.994

565.740

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1807.506

1151.994

612.740

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1182.958

1289.077

1261.217

(b) Deferred tax liabilities (Net)

53.470

64.052

47.231

(c) Other long term liabilities

691.358

249.418

16.428

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

1927.786

1602.547

1324.876

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

8947.342

1062.028

134.580

(b) Trade payables

766.837

6045.360

2055.426

(c) Other current liabilities

2577.199

1147.617

791.312

(d) Short-term provisions

27.017

37.100

3.472

Total Current Liabilities (4)

12318.395

8292.105

2984.790

 

 

 

 

TOTAL

16053.687

11046.646

4922.406

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1824.283

1593.180

1083.509

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

113.987

73.530

17.068

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.200

0.200

0.200

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

56.506

7.601

6.634

(e) Other Non-current assets

0.030

0.060

0.090

Total Non-Current Assets

1995.006

1674.571

1107.501

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

6787.072

3926.714

2799.212

(c) Trade receivables

173.543

86.812

90.597

(d) Cash and cash equivalents

7065.104

5267.063

887.415

(e) Short-term loans and advances

25.630

55.447

9.240

(f) Other current assets

7.332

36.039

28.441

Total Current Assets

14058.681

9372.075

3814.905

 

 

 

 

TOTAL

16053.687

11046.646

4922.406

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

36504.500

24517.000

16183.000

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

 

EXPENSES

NA

NA

NA

 

 

 

 

 

Less

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

1533.200

1231.100

596.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

415.200

336.500

192.100

 

 

 

 

 

 

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

1118.000

894.600

403.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

142.400

82.000

50.800

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                   (G)     

957.600

812.600

353.100

 

 

 

 

 

Less

TAX                                                                  (H)

320.100

273.300

125.900

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-H)                    (I)

655.500

539.300

227.200

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

352.400

563.100

335.900

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

500.000

750.000

0.000

 

BALANCE CARRIED TO THE B/S

507.900

352.400

563.100

 

 

 

 

 

 

Earnings Per Share (Rs.)

1394.68

NA

483.35

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PBT/Sales)

(%)

2.62

3.31

2.18

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.78

8.66

9.24

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.53

0.71

0.58

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

5.60

2.04

2.28

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.14

1.13

1.28

 

 

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

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

 

-            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.

 

UNSECURED LOANS:

 

Particulars

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Loans and advances from others

0.000

999.220

Loans and advances from related parties

1004.578

0.000

Total

1004.578

999.220

 

 

BACKGROUND:

 

The Company formerly G R Thangamaligai Jewellers Private Limited is engaged in the business of manufacture of Jewellery and other ornaments. The Company operates through various branches situated across southern India.

 

OPERATIONS:

 

During the year, the Gross revenue for the year ended March 31, 2013 stood at Rs. 36504.500 Millions against Rs. 27517.000 Millions in the previous year, registering Growth of 32.66%. PBDIT increased to Rs. 1533.200 Millions i.e., by 24.54% compared to previous year. The profit after tax increased to Rs. 655.500 Millions against Rs. 539.300 Millions in the previous year, registering growth of 21.54%. The management has decided to transfer an amount of Rs, 500.000 Millions to General Reserve.

 

INDEX OF CHARGE:

 

Sr .No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10384146

15/10/2012

1,500,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

B61177507

2

10348472

23/05/2013 *

1,757,090,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

B79930426

3

10288683

28/06/2012 *

1,350,000,000.00

IDBI Bank Limited

115 Anna Salai, Saidapet,, Chennai, Tamilnadu - 600015, INDIA

B56184849

4

10267455

30/12/2010

144,800,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

B06547202

5

10241435

11/08/2010

900,000,000.00

IDBI BANK LIMITED

115, Anna Salai, P.B. No : 805, Saidapet, Chennai, Tamilnadu - 600015, INDIA

A95378139

6

10092542

12/01/2012 *

1,500,000,000.00

THE STATE BANK OF HYDRABAD

T-Nagar Branch, T-Nagar, Chennai, Tamil Nadu - 600014, INDIA

B34041228

*Date of modification charge

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Office Equipments

·         Computer Equipments

·         Motor Vehicles

·         Furniture and Fixture

·         Plant and Equipments

 

 

 

 

 

 

 

 

 

 

 

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 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. 61.46

UK Pound

1

Rs. 98.99

Euro

1

Rs. 84.72

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

VNT

 

 

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

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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.