MIRA
INFORM REPORT
|
Report Date : |
08.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
KAMA-SCHACHTER JEWELRY PRIVATE LIMITED (w.e.f. 06.05.2008) |
|
|
|
|
Formerly Known
As : |
KAMA JEWELLERY (INDIA) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Unit No. 110, 1st Floor, The Capital, Opposite ICICI Bank, Bandra-Kurla Complex, Bandra
(East), Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
23.06.1993 |
|
|
|
|
Com. Reg. No.: |
11-072544 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 179.107 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65990MH1993PTC072544 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK2261J |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Diamond Jewellery. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. The company has incurred a loss from its operations during 2013. However, the rating takes into consideration its promoter’s extensive
industry experience and its established relations with major jewellery retail chains. Trade relation are reported to be fair. Business is active. Payment
terms are reported to be slow but correct. The company can be considered for business dealing 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.
INDIAN ECONOMIC OVERVIEW
India’s current account deficit for the fiscal third quarter ended September
2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9
billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and
moderation in gold imports. Manufacturing activity and new orders in India
showed their strongest growth in a year in February. The news comes as a relief
after data showed Asia’s third largest economy grew by a slower-than-expected
4.7 % annually in the three months through December. The HSBC Manufacturing
Purchasing Managers’ Index which gauges the business activity of India’s
factories but not its’ utilities, rose to 52.5 in February, its highest in a
year from 51.4 in January. Overall new orders for factory goods which rose to a
one-year high of 54.9 contributed to the surge. China has emerged as India’s
biggest trading partner in the current financial year replacing the United Arab
Emirates and pushing it to the third spot. India-China trade has reached $49.5
billion with a 8.7 % share in India’s total trade. The US comes second at $46
billion with 8.1 % share during the first nine months of the current financial
year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000
denominations, pushing the deadline to January 1, 2015. A day before dates for
the Lok Sabha polls were
announced, the government decided to hike interest rates on fixed deposit
schemes offered by post offices up to 0.2 per cent. The new rates will be
effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s
appeal against a ruling over transferring ownership of its local mobile phones
plant which is the subject of a tax dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into
Hindustan Aeronautics Limited’s contracts from
Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau
of Investigation will look into allegations that over $80 million was paid in
kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a
solution for problems with state-owned Air India’s 787 Dreamliners.
The aircraft has experienced a series of malfunctions since its debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “BBB-” |
|
Rating Explanation |
Have moderate degree of safety and carry moderate credit risk. |
|
Date |
28.03.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A3” |
|
Rating Explanation |
Have moderate degree of safety and carry higher credit risk. |
|
Date |
28.03.2014 |
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 PARTED BY (PARTIAL DETAILS)
|
Name : |
Sangita |
|
Designation : |
Accountant |
|
Contact No.: |
91-22-43441000 |
|
Date : |
08.04.2014 |
LOCATIONS
|
Registered Office : |
Unit No. 110, 1st Floor, The Capital, Opposite ICICI Bank, Bandra-Kurla Complex, Bandra
(East), Mumbai – 400051, Maharashtra, India |
|
Tel. No. : |
91-22-67770700 |
|
Fax No. : |
91-22-67770700 |
|
E-Mail : |
|
|
Location : |
Owned |
|
|
|
|
Factory 1 : |
Unit No.203 & 204, Block II, Seepz-Sez, Andheri (East), Mumbai – 400096, Maharashtra,
India |
|
Tel. No. : |
91-22-28293901/ 43441000 |
|
Fax No. : |
91-22-43441005 |
DIRECTORS
As on 11.12.2013
|
Name : |
Mr. Mamta Kishor Apparao |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. 121, 21st Floor, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India |
|
Date of Birth/Age : |
09.05.1954 |
|
Date of Appointment : |
02.11.1994 |
|
DIN No. : |
00043528 |
|
|
|
|
Name : |
Mr. Shamik Kishor Apparao |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. 121, 21st Floor, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India |
|
Date of Birth/Age : |
27.05.1979 |
|
Date of Appointment : |
26.03.2003 |
|
PAN No. : |
AGGPA2373Q |
|
DIN No. : |
00043571 |
|
|
|
|
Name : |
Mr. Colin Pankaj Shah |
|
Designation : |
Managing director |
|
Address : |
211/212, 21st Floor, Tower-A, Kalpataru Horizone, Behind Poddar Hospital, Worli, Mumbai – 400018, Maharashtra India |
|
Date of Birth/Age : |
10.08.1969 |
|
Date of Appointment : |
01.04.2010 |
|
PAN No. : |
AAEPS7244J |
|
DIN No. : |
00043610 |
|
|
|
|
Name : |
Mr. Prashant Shashikant Ruia |
|
Designation : |
Nominee Director |
|
Address : |
Lereve Tower 4300 Dubai Marina, PO Box 293778, Dubai, United Arab Emirates |
|
Date of Birth/Age : |
04.06.1969 |
|
Date of Appointment : |
19.07.2004 |
|
DIN No. : |
01187548 |
|
|
|
|
Name : |
Mr. Michael Jeffrey Steinmetz |
|
Designation : |
Nominee Director |
|
Address : |
338, Edward Avenue, Woodmere, New York 11598 |
|
Date of Birth/Age : |
20.09.1957 |
|
Date of Appointment : |
22.06.2007 |
|
DIN No. : |
01583416 |
|
|
|
|
Name : |
Mr. Elliot Tannenbaum |
|
Designation : |
Nominee Director |
|
Address : |
57, Achi Dakar, Raanana 43259, Israel |
|
Date of Birth/Age : |
10.05.1952 |
|
Date of Appointment : |
22.06.2007 |
|
DIN No. : |
01758529 |
|
|
|
|
Name : |
Mr. Steven Gabriel Farber |
|
Designation : |
Alternate Director |
|
Address : |
51 Ben Tov Street, Raanana 43229, Israel |
|
Date of Birth/Age : |
24.05.1963 |
|
Date of Appointment : |
11.04.2011 |
|
DIN No. : |
03461971 |
KEY EXECUTIVES
|
Name : |
Sangita |
|
Designation : |
Accountant |
|
|
|
|
Name : |
Mr. Pradip Shah |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 11.12.2013
|
Names of Equity Shareholders |
No. of Shares |
|
Golden Heer Importers Private Limited, India |
3012240 |
|
Shamik K. Apparao |
6160 |
|
Colin P. Shah |
2458377 |
|
Vaishali C. Shah |
554523 |
|
Pankaj C. Shah |
2750 |
|
Bharati P. Shah |
2750 |
|
Indira Investments Limited, Mauritius |
2716560 |
|
Steven Farber |
150920 |
|
Channa Wolf |
150920 |
|
Total |
9055200 |
|
Names of Preference Shareholders |
Type of share |
No. of Shares |
|
Golden Heer Importers Private Limited, India |
6%
Non-Cumulative Preference Shares (Series I) |
300000 |
|
Essar Investments Limited |
6%
Non-Cumulative Preference Shares (Series II) |
82568 |
|
Golden Heer Importers Private Limited, India
|
6%
Non-Cumulative Preference Shares (Series II) |
150000 |
|
Golden Heer Importers Private Limited |
6%
Non-Cumulative Preference Shares (Series III) |
450000 |
|
Total |
|
982568 |
As on 11.12.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial
institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others |
33.34 |
|
Bodies corporate |
33.26 |
|
Directors or relatives of Directors |
33.40 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Diamond Jewellery. |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
|
Studded Jewellery |
No. of Pieces |
574,519 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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|
Bankers : |
· State Bank of India, Diamond Branch, Girgaum,, Mumbai - 400004, Maharashtra, India Bank of India, Seepz Branch, Midc-Seepz,Andheri-East, Mumbai - 400096, Maharashtra, India ICICI Bank Limited, Landmarkrace
Cource Circle, Alkapuri,
Baroda - 390015, Gujarat, India Global Trust Bank Limited, Shreejee
Chambers; Tata Road No. 2, Opera House, Mumbai -
400004, Maharashtra, India |
|||||||||||||||||||||
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|
|||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
G M Kapadia and Company Chartered Accountants |
|
Address : |
Tamarind House,36-B, Tamarind Lane, Fort, Mumbai – 400001,
Maharashtra, India
|
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFG4713G |
|
|
|
|
Subsidiaries : |
· Kama Jewellery Private Limited (Formerly known as Kama-Schachter Jewelry Retails Private Limited) CIN No.:U74999MH2011PTC216930 K.S. Vision Investment Private Limited (Formerly known as Kama Jewellery (India) Trading
Company Private Limited.) CIN No.:U74999MH2007PTC175357 Kama-Schachter Infotech Private Limited U72900MH2010PTC204388 Kama Schachter Jewelry Japan Company Limited Kama-Schachter Jewelry Hong
Kong Limited Kama-Schachter Jewelry Inc. Kama Schachter Jewelry DMCC Kama-Schachter Jewelry
Shanghai Limited Guangzhou Kama-Schachter Jewelry
Limited |
|
|
|
|
Jointly controlled entity |
Kama Europe GmbH |
|
|
|
|
Enterprises owned or significantly influenced by key management
personnel or their relatives |
· Neo Precious Mercantile Goods Private Limited CIN No.:U27209GJ1995PTC024383 Leo Schachter Diamonds Limited,
Israel Leo Schachter Diamonds LLC, New
York Leo Schachter Canada Limited Leo Schachter and Company Rama
International LLC SNW Limited Leo Schachter Diamonds East
Limited Leo Schachter Diamonds India
Private Limited CIN No.:U36911MH2008PTC185952 Leo Schachter Diamonds DMCC Golden Heer Importers Private
Limited CIN No.:U51909GJ1995PTC024404 Indira Investments
Limited |
CAPITAL STRUCTURE
As on 11.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
1000000 |
Preference Share |
Rs.100/- each |
Rs.100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9055200 |
Equity Shares |
Rs.10/- each |
Rs.90.552 Millions |
|
982568 |
Preference Share |
Rs.100/- each |
Rs.98.257 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.188.809 Millions
|
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
1000000 |
Preference Share |
Rs.100/- each |
Rs.100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8085000 |
Equity Shares |
Rs.10/- each |
Rs.80.850 Millions |
|
982568 |
Preference Share |
Rs.100/- each |
Rs.98.257 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.179.107 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 |
179.107 |
179.107 |
179.107 |
|
(b) Reserves & Surplus |
953.533 |
1005.007 |
798.816 |
|
(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) |
1132.640 |
1184.114 |
977.923 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
240.865 |
256.570 |
0.053 |
|
(b) Deferred tax liabilities (Net) |
33.106 |
33.106 |
18.865 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
16.487 |
11.731 |
9.198 |
|
Total Non-current Liabilities (3) |
290.458 |
301.407 |
28.116 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1202.651 |
1104.978 |
1161.206 |
|
(b) Trade payables |
775.741 |
749.992 |
547.738 |
|
(c) Other current
liabilities |
76.091 |
64.103 |
55.624 |
|
(d) Short-term provisions |
27.518 |
96.094 |
64.487 |
|
Total Current Liabilities (4) |
2082.001 |
2015.167 |
1829.055 |
|
|
|
|
|
|
TOTAL |
3505.099 |
3500.688 |
2835.094 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
806.107 |
574.763 |
475.638 |
|
(ii) Intangible Assets |
77.143 |
91.212 |
4.870 |
|
(iii) Capital
work-in-progress |
1.572 |
214.476 |
6.893 |
|
(iv)
Intangible assets under development |
21.952 |
15.668 |
2.244 |
|
(b) Non-current Investments |
216.084 |
97.241 |
100.728 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
89.191 |
88.598 |
36.939 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1212.049 |
1081.958 |
627.312 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
852.690 |
850.485 |
1153.366 |
|
(c) Trade receivables |
1350.459 |
1389.092 |
922.717 |
|
(d) Cash and cash
equivalents |
44.859 |
129.544 |
87.134 |
|
(e) Short-term loans and
advances |
44.978 |
48.976 |
44.004 |
|
(f) Other current assets |
0.064 |
0.633 |
0.561 |
|
Total Current Assets |
2293.050 |
2418.730 |
2207.782 |
|
|
|
|
|
|
TOTAL |
3505.099 |
3500.688 |
2835.094 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4776.572 |
4833.565 |
3637.035 |
|
|
|
Other Income |
12.878 |
12.281 |
20.340 |
|
|
|
TOTAL |
4789.450 |
4845.846 |
3657.375 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
4833.925 |
4591.727 |
3436.266 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(44.475) |
254.119 |
221.109 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.102 |
12.887 |
15.584 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(44.577) |
241.232 |
205.525 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
1868.753 |
2739.206 |
2354.563 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(4.92) |
26.60 |
22.67 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.93) |
4.98 |
5.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.93) |
5.26 |
6.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.36) |
8.01 |
8.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04) |
0.21 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.27 |
1.15 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10 |
1.20 |
1.21 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
179.107 |
179.107 |
179.107 |
|
Reserves & Surplus |
798.816 |
1005.007 |
953.533 |
|
Net
worth |
977.923 |
1184.114 |
1132.640 |
|
|
|
|
|
|
long-term borrowings |
0.053 |
256.570 |
240.865 |
|
Short term borrowings |
1161.206 |
1104.978 |
1202.651 |
|
Total
borrowings |
1161.259 |
1361.548 |
1443.516 |
|
Debt/Equity
ratio |
1.187 |
1.150 |
1.274 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3637.035 |
4833.565 |
4776.572 |
|
|
|
32.899 |
(1.179) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3637.035 |
4833.565 |
4776.572 |
|
Profit |
205.525 |
241.232 |
(44.577) |
|
|
5.65% |
4.99% |
(0.93%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
31.03.2011 (Rs. In Millions) |
|
|
|
|
|
|
Current maturities of long-term debt |
39.993 |
20.759 |
18.461 |
|
|
|
|
|
|
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 |
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 |
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 |
Yes |
|
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 |
10337930 |
28/02/2012 * |
155,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
B33993510 |
|
2 |
10332608 |
25/01/2012 |
150,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
B30838692 |
|
3 |
10114072 |
06/09/2011 * |
1,800,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
B22204283 |
|
4 |
10089651 |
19/10/2010 * |
1,800,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
A99032781 |
* Date of charge modification
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.
CORPORATE INFORMATION
Subject is a Private Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaed in manufacturing of Gems and Jewelry and caters to both international and domestic market.
OPERATIONS:
During the year, the Company’s sale has decreased marginally from Rs.4833.565 Millions to Rs.4776.572 Millions. The fall in Export sales to Rs 1846.009 Millions (Previous year Rs 2741.767 Millions) and increase in domestic sales Rs 2930.563 Millions (Previous year Rs 2091.798 Millions) did enable the company to maintain top line but it adversely affected margins. Further, increase in operational cost, mainly due to inflation, the net margins came under pressure and the Company has suffered loss of Rs.44.475 Millions. The Company has taken corrective measures to improve product mix, developing new designs, focus on Export market along with cost reduction.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
- Disputed Income tax liabilities not provided for (Refer Note - a ) |
1.653 |
1.653 |
|
- Guarantee given by banks on behalf of the Company (Fixed Deposit pledged Rs Nil, P.Y. Rs. 38.250 Millions). |
0.000 |
60.000 |
|
- Guarantee given by the Company on behalf of Subsidiary, Kama- Schachter Jewelry Inc. New York for the pricipal (USD 4 Million) (excluding any interest payable on above guarantee) |
217.140 |
203.400 |
|
Total |
218.793 |
265.053 |
|
NOTE: a) Includes Appeal for Assessment year 1996-97 where additions are made by AO on account of deferred revenue expenditure which has been deleted by CIT (Appeals). The company is contesting the demands and the management,
including its tax advisors, believe that its position will likely be upheld
in the appellate process. No tax expense has been accrued in the financial
statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse effect
on the company’s financial position and results of operations. |
||
FIXED ASSETS
· Buildings
Plant
and equipment
Office
equipment
Vehicles
Other
equipments
Computer
equipments
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.59.95 |
|
|
1 |
Rs.99.36 |
|
Euro |
1 |
Rs.82.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
MRI/ NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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.