MIRA
INFORM REPORT
|
Report Date : |
08.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
BLUE STAR DIAMONDS
PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
CE 9010, CC 9013, CE
9014, CE 9016, 9th Floor, Tower "C", Bharat Diamond
Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
05.12.2008 |
|
|
|
|
Com. Reg. No.: |
11-188710 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.217.681
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U36911MH2008PTC188710 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCB6475E |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject
is predominantly engaged in manufacturing, trading and sales of rough and
polished diamonds. |
|
|
|
|
No. of Employees
: |
1600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 14338000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an
established company having a satisfactory track record. Trade relations
are reported as fair. Business is active. Payments are reported to be slow but
correct. 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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 |
March 21, 2013 |
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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Ishwar |
|
Designation : |
Finance Head |
|
Contact No.: |
91-22-40404444 |
|
Date : |
07.08.2014 |
LOCATIONS
|
Registered Office : |
CE 9010, 8013, 8014,
8016, 9th Floor, Tower "C", Bharat Diamond Bourse,
Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India |
|
Tel. No.: |
91-22-40404444 |
|
Fax No.: |
91-22-23630202 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
309-312, Prasad Chambers,
3rd Floor, Opera House, Mumbai – 400 004, Maharashtra, India |
|
|
|
|
Factory : |
Auro Manufacturing
Private Limited F P No.37 / F P No.65/B/2, Umiya Chowk, Ashwinikumar
Road, Varachha, Surat – 395 008, Gujarat, India |
|
Tel. No.: |
91-261-2554567 |
|
Fax No.: |
91-261-2563962 |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2013
|
Name : |
Mr. Akshay Vasantlal Mehta |
|
Designation : |
Director |
|
Address : |
Flat No.10, 5th Floor, Kamal Mahal, 17, M.L. Dahanukar
Marg, Mumbai – 400 026, Maharashtra, India |
|
Date of Birth/Age : |
12.10.1953 |
|
Date of Appointment : |
05.12.2008 |
|
DIN No.: |
00059524 |
|
PAN No.: |
AACPM1676N |
|
|
|
|
Name : |
Mr. Anuj Vasantlal Mehta |
|
Designation : |
Director |
|
Address : |
Cliff, 14th Floor, 259, B.G. Kher Marg, Malabar Hill,
Mumbai – 400 006, Maharashtra, India |
|
Date of Birth/Age : |
03.10.1955 |
|
Date of Appointment : |
05.12.2008 |
|
DIN No.: |
00059854 |
|
PAN No.: |
AACPM1675R |
|
|
|
|
Name : |
Mr. Arnav Akshay Mehta |
|
Designation : |
Director |
|
Address : |
Flat No.10, 5th Floor, Kamal Mahal, 17, M.L. Dahanukar Marg,
Mumbai – 400 026, Maharashtra, India |
|
Date of Birth/Age : |
02.01.1983 |
|
Date of Appointment : |
05.12.2008 |
|
DIN No.: |
00142488 |
|
PAN No.: |
AADPM7053L |
KEY EXECUTIVES
|
Name : |
Ms. Anita Alex Thomas |
|
Designation : |
Secretary |
|
Address : |
I/14, Vijay Apartment-3, Wagholi Naka, Ghodbunder Road, Thane – 400
615, Maharashtra, India |
|
Date of Birth/Age : |
24.03.1991 |
|
Date of Appointment : |
03.02.2014 |
|
PAN No.: |
AKXPT0549G |
|
|
|
|
Name : |
Mr. Ishwar |
|
Designation : |
Finance Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
Akshay Vasantlal Mehta |
|
2134060 |
|
Anuj Vasantlal Mehta |
|
2134060 |
|
Kokilaben Vasantlal Mehta |
|
1500000 |
|
Smita Akshay Mehta |
|
1500000 |
|
Rina Anuj Mehta |
|
1500000 |
|
Arnav Akshay Mehta |
|
1500000 |
|
Anshul Anuj Mehta |
|
1500000 |
|
Total
|
|
11768120 |
|
Names of Shareholders (Preference Shares) |
|
No. of Shares |
|
Smita Akshay Mehta |
|
125000 |
|
Akshay Vasantlal Mehta |
|
4062500 |
|
Arnav Akshay Mehta |
|
312500 |
|
Anuj Vasantlal Mehta |
|
4500000 |
|
Kokilaben Vasantlal Mehta |
|
1000000 |
|
Total
|
|
10000000 |
AS ON 30.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is predominantly engaged in manufacturing, trading and sales of rough and
polished diamonds. |
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|
Products : |
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Exports : |
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||||
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Products : |
·
Diamonds |
||||
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Countries : |
·
USA ·
Japan ·
UK |
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|
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Imports : |
|
||||
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Products : |
·
Diamonds |
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|
Countries : |
·
UK ·
Belgium |
||||
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|
||||
|
Terms : |
|
||||
|
Purchasing : |
Depend |
PRODUCTION STATUS [AS ON 31.03.2011]
a) Licensed and Installed
Capacity and Production information in respect of goods manufactured (i.e.)
fully processed polished diamonds studded jewellery and press Pots)
|
Particulars |
Diamonds Division |
Jewellery Division |
|
I.
Licensed capacity |
Not
Applicable |
Not
Applicable |
|
II.
Installed capacity |
Not
Applicable |
Not
Applicable |
|
III.
Actual Production |
77076.75
(Cts) |
Not
Applicable |
GENERAL INFORMATION
|
Customers : |
End Users |
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|
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|
No. of Employees : |
1600 (Approximately) |
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|
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|
Bankers : |
·
Bank of India - Lead Bank, Opera House Mid Corporate Branch, Hermes
House, Mama Parmanand Marg, Opera House,, Mumbai – 400 004, Maharashtra,
India ·
Andhra Bank, No.4, Tower 'E', Bharat Diamond Bourse, 'G' Block, Bandra
Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India ·
Standard Chartered Bank, Crescsnzo, Plot No. C - 38 and 39, G Block,
Bandra Kurla Complex, Mumbai – 400 051, Maharashtra, India ·
The Royal Bank of Scotland N.V. (Acting as Lead Bank), 7th
Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India ·
The Royal Bank of Scotland N.V. (Acting as Lead Bank), 4, North
Avenue, Level 3, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai –
400 051, Maharashtra, India |
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
J.J
Shah and Company Chartered Accountants |
|
Address : |
1st Floor,
Room No.13, Shree Ganesh Co-Operative Housing Society Limited, Fazal Mansion,
8/14/A, Abdul Rehman Street, Pydhonie, Mumbai – 400 003, Maharashtra, India |
|
PAN No.: |
AAEPM4732D |
|
|
|
|
Joint Ventures : |
·
Antwerp Star Diamonds NV, Belgium ·
Spectra Colour Diamonds, India |
|
|
|
|
Subsidiary Companies : |
·
Blue Star Diamonds Botswana (Pty) Limited, Botswana ·
Blue Star Diamonds DMCC, United Arab Emirates ·
Blue Star Diamonds (HK) Limited, Hong Kong |
|
|
|
|
Enterprises which are owned, or have significant influence of or are partners
with Key management personnel and their relatives : |
·
Arjav Diamonds NV, Belgium ·
Arjav Associates NV, Belgium ·
Amdiam NV, Belgium ·
Arjav Diamonds (India) Private Limited, India (CIN No.:
U36996MH2007PTC169725) ·
Aurostar Jewellery (India) Private Limited, India (CIN No.:
U74900MH1995PTC086993) ·
R. J. Diamonds, India ·
Arjav Diamonds (ME) LLC, United Arab Emirates ·
ADMG Diamond Private Limited, India (CIN No.: U36912GJ2010PTC062006) ·
Kashikey Diamond India Private Limited, India (CIN No.:
U36911MH2003PTC141589) ·
Auro Manufacturing Private Limited, India (CIN No.:
U36912GJ2007PTC050022) ·
Bluestar Investment and Financial Services Private Limited, India |
CAPITAL STRUCTURE
AS ON 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 millions |
|
10000000 |
Preference
Shares |
Rs.10/- each
|
Rs.100.000 millions |
|
|
Total |
|
Rs.220.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11768120 |
Equity Shares |
Rs.10/- each
|
Rs.117.681
millions |
|
10000000 |
Preference
Shares |
Rs.10/- each
|
Rs.100.000
millions |
|
|
Total |
|
Rs.217.681 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 |
217.681 |
205.000 |
205.000 |
|
(b) Reserves & Surplus |
3366.789 |
2803.480 |
2472.700 |
|
(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) |
3584.470 |
3008.480 |
2677.700 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
3.714 |
5.168 |
10.226 |
|
(c) Other long
term liabilities |
30.017 |
0.000 |
5.290 |
|
(d) Long-term
provisions |
2.907 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
36.638 |
5.168 |
15.516 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
5747.878 |
4648.010 |
3246.633 |
|
(b)
Trade payables |
3453.221 |
3052.973 |
3442.187 |
|
(c)
Other current liabilities |
84.898 |
69.690 |
27.466 |
|
(d) Short-term
provisions |
0.468 |
0.334 |
1.416 |
|
Total Current
Liabilities (4) |
9286.465 |
7771.007 |
6717.702 |
|
|
|
|
|
|
TOTAL |
12907.573 |
10784.655 |
9410.918 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1861.479 |
1683.904 |
1279.670 |
|
(ii)
Intangible Assets |
2.567 |
3.717 |
0.000 |
|
(iii)
Capital work-in-progress |
13.435 |
60.484 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
449.686 |
189.117 |
185.752 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
128.837 |
106.709 |
98.165 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
5.287 |
|
Total Non-Current
Assets |
2456.004 |
2043.931 |
1568.874 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
18.900 |
17.700 |
0.000 |
|
(b)
Inventories |
5513.442 |
5360.182 |
5225.615 |
|
(c)
Trade receivables |
4353.694 |
2785.435 |
2350.821 |
|
(d) Cash
and cash equivalents |
477.256 |
490.848 |
210.280 |
|
(e)
Short-term loans and advances |
88.026 |
47.888 |
55.159 |
|
(f)
Other current assets |
0.251 |
38.671 |
0.169 |
|
Total Current
Assets |
10451.569 |
8740.724 |
7842.044 |
|
|
|
|
|
|
TOTAL |
12907.573 |
10784.655 |
9410.918 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14000.000 (Approximately) |
(Approximately) |
9712.601 |
|
|
|
Other Income |
NA |
NA |
|
|
|
|
TOTAL |
NA |
NA |
9712.601 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
9340.832 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
NA |
NA |
9340.832 |
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
389.188 |
545.629 |
371.769 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
127.545 |
174.951 |
91.317 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
261.643 |
370.678 |
280.452 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
9126.391 |
9693.602 |
7711.877 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
NA |
3057.305 |
|
|
|
Finished Goods |
NA |
NA |
2168.310 |
|
|
|
Consumables (Consumables, Stores and Tools) |
NA |
NA |
2.527 |
|
|
TOTAL IMPORTS |
NA |
NA |
5228.142 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
24.41 |
35.30 |
26.71 |
|
Expected Sales (2013-2014): Rs.18000.000 millions
The above information has been parted by Mr. Ishwar (Finance Head).
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
NA
|
NA |
2.89 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.13
|
5.18 |
4.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.18 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.60
|
1.54 |
1.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13
|
1.12 |
1.17 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
205.000 |
205.000 |
217.681 |
|
Reserves & Surplus |
2472.700 |
2803.480 |
3366.789 |
|
Net worth |
2677.700 |
3008.480 |
3584.470 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
3246.633 |
4648.010 |
5747.878 |
|
Total borrowings |
3246.633 |
4648.010 |
5747.878 |
|
Debt/Equity ratio |
1.212 |
1.545 |
1.604 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
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 |
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 |
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
|
Particular |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
SHORT-TERM
BORROWINGS |
|
|
|
Loans and advances from directors |
473.445 |
729.224 |
|
Loans and advances from others |
5.909 |
11.305 |
|
Total
|
479.354 |
740.529 |
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10472957 |
27/11/2013 |
6,600,000,000.00 |
BANK OF INDIA - LEAD BANK |
OPERA HOUSE MID CORPORATE
BRANCH, HERMES HOUSE, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI,
MAHARASHTRA - 400004, INDIA |
B94512480 |
|
2 |
10461621 |
07/10/2013 |
696,000,000.00 |
ANDHRA BANK |
NO.4 TOWER 'E' BHARAT DIAMOND
BOURSE, 'G' BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MAHARASHTRA -
400051, INDIA |
B90103268 |
|
3 |
10451154 |
07/08/2013 |
804,000,000.00 |
BANK OF INDIA |
OPERA HOUSE BRANCH,
HERMES HOUSE,, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI, MAHARASHTRA -
400004, INDIA |
B85769842 |
|
4 |
10400774 |
08/01/2013 |
481,250,000.00 |
STANDARD CHARTERED BANK |
CRESCSNZO, PLOT NO C - 38
AND 39, G BLOCK, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051,
INDIA |
B67161778 |
Note:
The registered office of the company has been shifted from CE 9010, 8013,
8014, 8016, 9th Floor, Tower "C", Bharat Diamonds Bourse,
Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra to
the present address w.e.f. 24.12.2013.
BACKGROUND:
The Company was
incorporated upon conversion of erstwhile firm Blue Star into a private limited
company under provisions of the Part IX of the Companies Act, 1956 with effect
from December 5, 2008 vide certificate of incorporation No.U36911MH2008PTC188710
issued by the Registrar of Companies, Maharashtra, Mumbai. Upon conversion the
company has taken over all the assets and liabilities of the erstwhile firm at
its respective book value as on December 5, 2008 and issued Equity Shares to
the Partners of the firm in lieu of their Fixed / Current capital in the firm.
The company along with its
wholly / majority owned and controlled subsidiaries and fellow Subsidiaries,
Antwerp Star Diamonds NV, Blue Star Diamonds Botswana (Pty) Limited, Blue Star Diamonds
DMCC, Blue Star Diamonds (HK) Limited, Blue Star Diamonds Australia Pty Limited
are leading global diamonds companies. The group of companies provides Rough
and Polished Diamonds.
The
Company is predominantly engaged in manufacturing, trading and sales of rough
and polished diamonds.
CONTINGENT LIABILITIES (TO THE EXTENT NOT
PROVIDED FOR):
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Claims against the company/ disputed. Liabilities not acknowledged as
debt. |
|
|
|
a)
In respect of Service tax |
25.717 |
25.717* |
|
b)
In respect of DGFT Licence |
-- |
7.304 |
|
c)
Income Tax for Blue Star Diamonds (A.Y. 2008-09) |
-- |
0.663 |
|
d)
Blue Star Diamonds Private Limited has given Personal Guarantee on behalf of Auro
Star Jewellery (India) Private Limited** |
||
|
e)
Blue Star Diamonds Private Limited has given Corporate Guarantee on behalf of
Aurosons |
||
|
f)
Blue Star Diamonds Private Limited has given Corporate Guarantee on behalf of
Akshay Diamonds |
||
|
g)
Blue Star Diamonds Private Limited has given Corporate Guarantee on behalf of
Blue Star Diamonds (HK) Limited |
||
|
h)
Blue Star Diamonds Private Limited has given Corporate Guarantee on behalf of
Antwerp Star Diamonds NV. |
||
Notes:
a) * - Amount of 25.717
millions derived from Show Cause Notice received from Service Tax department
determining the liability for the period from 2006-07 to 2010-11 received on
18.06.2012. The above amount is exclusive of penalty and interest which may be
levied thereon. For the period 2011-12 amount of Rs.2.879 millions plus
interest of Rs.0.435 million thereon has been paid to the authority under
protest on 18.09.2012.
b) The contingent liability
in respect of DGFT License had become an actual liability during the period and
the same has been paid.
c)
The contingent liability in respect of Income Tax (A.Y. 08-09) had become an
actual liability during the period and the same has been paid.
d)
** Personal Guarantee on behalf of Auro Star Jewellery (I) Private Limited was
not continuing as its Bank Limit were surrendered during the year.
FIXED ASSETS:
Tangible
Assets
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
Intangible
Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.103.42 |
|
Euro |
1 |
Rs.82.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
VRN |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
48 |
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.