MIRA
INFORM REPORT
|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
PC JEWELLER LIMITED |
|
|
|
|
Registered
Office : |
24 / 2708, Bank Street, Karol Bagh, New Delhi – 110005 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
13.04.2005 |
|
|
|
|
Com. Reg. No.: |
55-134929 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1791.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36911DL2005PLC134929 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Company is
engaged in the business of manufacturing, sale and trading of gold jewellery,
diamond studded jewellery and silver items |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 55550000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track
record. The ratings reflect PCJL’s strong financial risk profile, marked by a healthy
net worth and strong debt protection metrics, and its promoter’s extensive
experience in manufacturing and retailing hand-crafted Jewellery. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The services sector, the largest contributor to India’s GDP, contracted for
the sixth consecutive month in December, as orders dipped. However, hiring has
risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
July 22, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
July 22, 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
31-03-2012.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-11-47104810)
LOCATIONS
|
Registered Office : |
24 / 2708, Bank Street, Karol Bagh, New Delhi – 110005. India |
|
Tel. No. : |
91-11-47104810 |
|
Fax No. : |
Not avaia |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
PC Jeweller Limited, C – 54, Preet
Vihar, Vikas Marg, Delhi – 110092, India |
|
|
|
|
Factory 1 : |
65, Noida Special Economic Zone, Noida, Uttar Pradesh, India |
|
|
|
|
Factory 2 : |
142A/3, Noida Special Economic Zone, Noida, Uttar Pradesh, India |
|
|
|
|
Factory 3 : |
Sector-63, Noida, Uttar Pradesh, India |
|
|
|
|
Factory 4 : |
F-50, Selaqui, Dehradun, Uttarakhand, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Padam Chand Gupta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Balram Garg |
|
Designation : |
Managing Director |
|
Qualifications |
B.Com |
|
Date of Birth : |
43 Years |
|
Experience : |
24 Years |
|
|
|
|
Name : |
Mr. Krishan Kumar Khurana |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Dr. Manohar Lal Singla |
|
Designation : |
Independent Directors |
|
Qualifications |
B.E. (Mechanical Engineering)
from Punjab University, Chandigarh M.B.A. from University of
Delhi, Delhi Ph.D. (Management) from
University of Delhi, Delhi |
|
Date of Birth : |
20.01.1958 |
|
|
|
|
Name : |
Mr. Sanjeev Bhatia |
|
Designation : |
President (Finance) |
KEY EXECUTIVES
|
Name : |
Mr. Vijay Panwar |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
125404500 |
70.02 |
|
|
125404500 |
70.02 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
125404500 |
70.02 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5258207 |
2.94 |
|
|
15204 |
0.01 |
|
|
24328030 |
13.58 |
|
|
29601441 |
16.53 |
|
|
|
|
|
|
12955249 |
7.23 |
|
|
|
|
|
|
4436668 |
2.48 |
|
|
6452192 |
3.60 |
|
|
37909 |
0.02 |
|
|
212041 |
0.12 |
|
|
80557 |
0.04 |
|
|
131484 |
0.07 |
|
|
24094059 |
13.45 |
|
Total Public shareholding (B) |
53695500 |
29.98 |
|
Total (A)+(B) |
179100000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
179100000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is
engaged in the business of manufacturing, sale and trading of gold jewellery,
diamond studded jewellery and silver items |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v IDBI Bank
Limited v Bank of India v HDFC Bank
Limited v State Bank of
India v Corporation Bank
|
|||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||
|
Facilities : |
NOTE: Details of security for each type of borrowings * These are
secured by way of hypothecation of assets, thus purchased. ** Secured against
first pari passu charge on current assets and fixed assets of company,
personal guarantees of directors, corporate guarantees of promoter group
companies, other companies and fixed deposits. Terms of repayment Vehicle loans
are repayable in 60 equal monthly instalments over the tenure of the loans
and the final instalments are due for repayment in April 2017. |
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name 1 : |
Walker, Chandiok and Company Chartered Accountants |
|
Address : |
21st Floor, DLF
Square, Jacaranda Marg, DLF Phase III, Gurgaon – 122002, Haryana, India |
|
|
|
|
Name 2 : |
Sharad Jain Associates Chartered Accountants |
|
Address : |
213, Hans Bhavan
1, Bahadur Shah Zafar Marg New Delhi – 110002, India |
|
|
|
|
Subsidiaries : |
v Shivani Sarees
Private Limited (Upto April 14, 2012) v PC Universal
Private Limited (with effect from February 28, 2013) |
|
|
|
|
Other entities
in which key management personnel is having significant influence |
v P C Jewellers (Exports) v P C Mangal Vasan
Private Limited v Onyx Townships
Private Limited v Quick Developers
Private Limited v Trigun
Infrastructure Private Limited. v PC Charitable
Society (Regd.) v PC Education
Society (Regd.) v Shivani Sachin
Education Society (Regd.) |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
179100000 |
Equity Shares |
Rs.10/- each |
Rs.1791.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
1791.000 |
1339.665 |
|
(b) Reserves & Surplus |
|
12097.060 |
4218.239 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
13888.060 |
5557.904 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
11.995 |
21.909 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
12.436 |
6.089 |
|
Total Non-current Liabilities (3) |
|
24.431 |
27.998 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
2309.259 |
5751.152 |
|
(b) Trade payables |
|
16250.433 |
8524.582 |
|
(c) Other current
liabilities |
|
1322.468 |
867.881 |
|
(d) Short-term provisions |
|
557.307 |
248.080 |
|
Total Current Liabilities (4) |
|
20439.467 |
15391.695 |
|
|
|
|
|
|
TOTAL |
|
34351.958 |
20977.597 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
627.624 |
565.741 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
|
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
|
10.376 |
9.793 |
|
(b) Non-current Investments |
|
0.500 |
0.000 |
|
(c) Deferred tax assets (net) |
|
50.058 |
4.219 |
|
(d) Long-term Loan and Advances |
|
800.284 |
631.597 |
|
(e) Other Non-current assets |
|
147.881 |
80.509 |
|
Total Non-Current Assets |
|
1636.723 |
1291.859 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
4428.840 |
0.100 |
|
(b) Inventories |
|
17137.027 |
11724.094 |
|
(c) Trade receivables |
|
6747.826 |
6866.452 |
|
(d) Cash and cash
equivalents |
|
2648.562 |
748.255 |
|
(e) Short-term loans and
advances |
|
1699.834 |
324.573 |
|
(f) Other current assets |
|
53.146 |
22.264 |
|
Total Current Assets |
|
32715.235 |
19685.738 |
|
|
|
|
|
|
TOTAL |
|
34351.958 |
20977.597 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
40184.193 |
30419.264 |
|
|
|
Other Income |
|
202.066 |
175.652 |
|
|
|
TOTAL |
|
40386.259 |
30594.916 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
|
39347.741 |
31274.132 |
|
|
|
Purchases of traded goods |
|
19.458 |
36.818 |
|
|
|
Employee benefits expense |
|
353.046 |
248.962 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
|
(5744.435) |
(6137.254) |
|
|
|
Other expenses |
|
1383.769 |
1684.312 |
|
|
|
Prior period items |
|
6.812 |
0.000 |
|
|
|
TOTAL |
|
35366.390 |
27106.970 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
5019.869 |
3487.946 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
1274.654 |
772.060 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
3745.215 |
2715.886 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
99.885 |
65.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
3645.330 |
2649.986 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
738.714 |
337.052 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
2906.616 |
2312.934 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
4218.238 |
2573.414 |
|
|
|
|
|
|
|
|
|
Less |
Utilised for issue of bonus shares |
|
0.000 |
668.110 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
|
|
|
|
|
Dividend |
|
179.100 |
0.000 |
|
|
|
Tax on Dividend |
|
30.438 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
|
6915.316 |
4218.238 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
10307.712 |
10024.366 |
|
|
|
Other income-insurance and freight |
|
3.776 |
2.693 |
|
|
TOTAL EARNINGS |
|
10311.488 |
10027.059 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
9184.615 |
9036.543 |
|
|
|
Capital Goods |
|
33.058 |
41.010 |
|
|
TOTAL IMPORTS |
|
9217.673 |
9077.553 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
19.86 |
17.27 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
|
7.20 |
7.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
9.07 |
8.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
10.63 |
12.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.26 |
0.48 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
|
0.17 |
1.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.60 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
two years |
Yes |
|
12] |
Profitability for last
two years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Bank overdraft |
0.000 |
22.027 |
|
|
|
|
|
Total |
0.000 |
22.027 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10468486 |
24/12/2013 |
1,020,000,000.00 |
IDBI BANK LIMITED |
INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS ROAD, NEW DELHI, Delhi
- 110005, INDIA |
B92842293 |
|
2 |
10471161 |
16/12/2013 |
1,023,000,000.00 |
Bank of India |
New Delhi Mid Corporate Branch, 37, Saheed Bhagat |
B93876357 |
|
3 |
10473888 |
10/12/2013 |
750,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra
- 400013, INDIA |
B94822137 |
|
4 |
10465363 |
05/11/2013 |
5,975,000,000.00 |
State Bank of India |
Overseas Branch, Jawahar Vyapar Bhawan,, 1, Tolstoy Marg, New Delhi,
Delhi - 110001, INDIA |
B91460766 |
|
5 |
10462406 |
28/10/2013 |
100,000,000.00 |
Bank of India |
New Delhi Mid Corporate Branch, 37, Saheed Bhagat |
B90413022 |
|
6 |
10450819 |
02/09/2013 |
250,000,000.00 |
CORPORATION BANK |
CONNAUGHT CIRCUS BRANCH, M-41, CONNAUGHT CIRCUS, NEW DELHI, Delhi -
110001, INDIA |
B85653947 |
|
7 |
10389196 |
01/12/2012 * |
21,138,500,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, Maharashtra - 400005,
INDIA |
B64981376 |
|
8 |
10255014 |
08/11/2010 |
18,000,000.00 |
CORPORATION BANK |
M-41,CONNAUGHT CIRCUS, NEW DELHI, Delhi - 110001, |
B00804930 |
* Date of charge modification
PERFORMANCE REVIEW
During the year, the
revenue from operations of the Company increased to Rs. 40184.200 millions as
compared to Rs. 30419.300 millions in the previous year, representing a growth
of more than 32%. The net profit after tax has also gone up by more than 25%
from Rs. 2312.900 millions to Rs. 2906.600 millions, as compared to the
previous year. The Company is present in
both domestic as well as export markets. During the year the Company made an
export sale amounting to Rs. 10307.700 millions. The share of export turnover
in the revenue from operations has declined to approximately 26% as on March
31, 2013 as against 33% as on March 31, 2012.
The Company
continued to move ahead to achieve its growth objectives and in the process
opened six more new showrooms during the year. Thus, as of March 31, 2013, the
Company had 30 showrooms under the “PC Jeweller” brand, located across 23
cities in north and central India.
AWARDS
During the year
the Company was awarded “Niryat Shree Silver Trophy” in the Gems and Jewellery
non-MSME category, by the Federation of Indian Export Organizations, set up by
the Ministry of Commerce and Industry, Government of India, for the year
2009-2010.
MANAGEMENT DISCUSSION AND ANALYSIS
FORWARD LOOKING
STATEMENTS
Forward looking
statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that these assumptions and expectations are
accurate or will be realized. The Company’s actual results, performance or
achievements could thus differ materially from those projected in any such
forward looking statements. The Company assumes no responsibility to publicly
amend, modify or revise any forward looking statements, on the basis of any
subsequent developments, information or events.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Gems and Jewellery
is an important emerging sector in the Indian Economy. Ranked among the fastest
growing sectors, it is also a leading sector for foreign exchange generation.
According to a recent study, India and China are now emerging as one of the
leaders in the global Jewellery industry in terms of consumption, besides
production and trade. The countries jointly would account for over 30 percent
of global diamond market in 2015. India possesses world’s most competitive gems
and Jewellery market due to its low cost of production, highly skilled,
low-cost and best artisan force for designing and crafting jewellery, along
with strong government support in the form of incentives and establishment of
special economic zones (SEZs).
The Indian gems and
jewellery industry can be classified into various segments: cut and polished
diamonds, gem stones, gold and diamond jewellery, pearl and synthetic stones
and others. However, the two major industry segments in India are gold and
diamond jewellery. India also dominates the diamond processing trade with 11
out of 12 diamonds being cut and polished in India. The industry accounted for
14.1% of India’s export revenue in fiscal 2012 and provides employment to
approximately 3.5 million people directly and indirectly. The Indian gems and
jewellery export industry, has the potential to grow from the US$ 42.83 billion
in fiscal 2012 to US$ 47 - 48 billion by fiscal 2014 while the domestic gems
and jewellery industry has the potential to grow from an estimated US$ 45.3
billion in fiscal 2012 to US$ 60 billion by fiscal 2014 at a CAGR of 14% - 15%.
PRODUCT WISE
PERFORMANCE
The Company is a
single product Company, viz jewellery and its operations include manufacture,
retail and export of jewellery. However, the jewellery has three subsets
consisting of gold, diamond and others. Gold Jewellery continues to be the
dominant component with a share of 68.57% in the domestic sales of the Company
as on March 31, 2013. The diamond jewellery share in the domestic sales stands at
30.85% as on March 31, 2013. The Company is however, taking proactive steps to
improve the share of diamond Jewellery in the sales mix as it is a higher
margin item. Diamond Jewellery contribution to domestic sales grew from 17.90%
in financial year 2010 to 30.85% in financial year 2013.
The Company
operates in different geographical areas i.e. domestic sales and export sales.
Company exports gold and diamond jewellery on a wholesale basis to
international distributors in Dubai and Hong Kong. As on March 31, 2013, the
share of revenues from domestic sales and export sales is 74.35% and 25.65%
respectively and the share of gold and diamond jewellery in the export sales is
74.52% and 25.47% respectively.
OPPORTUNITIES AND
THREATS
The industry can take
advantages of the following opportunities:
a)
Organized penetration of approximately 5%, expected
to reach 10% by financial year 2016.
b)
Favorable demographics driving consumption-
increasing young and mid/high-income population.
c)
Growth opportunity in Tier II and Tier III cities
due to higher disposable incomes and low set up costs.
d)
Increasing demand for diamond jewellery, which is a
high margin product.
e)
Growing consciousness of branded jewellery amongst
consumers and willingness to pay a premium for quality and variety.
Some of the key
challenges facing the jewellery retail industry are as follows:
a)
Adapting to changing consumer preferences including
regional preferences.
b)
Any adverse change in the specific conditions of
the Ministry of Commerce and Industry, Government of India, and the applicable
RBI regulations regarding procurement of gold.
c)
Volatility in the market price of gold and
diamonds.
d)
Sale of synthetic diamonds and artificial
jewellery.
e)
Limited availability of high end real estate and
trained retail staff.
OUTLOOK
Traditionally, the
Indian gems and jewellery industry was highly fragmented with consumers
typically buying from their family jewellers. However, in the last decade the
industry has undergone a structural change and more gems and jewellery players
are moving up the value chain towards an increasing focus on branded jewellery.
Jewellery retailing is not only a high margin and lucrative but is also largely
untapped in India. The market is hugely underpenetrated and there is ample scope
for all new entrants. Given rising media and western influences people are more
inclined towards branded jewellery and are willing to pay a premium for the
same. In the past few years, many domestic companies have opened gems and
jewellery specialty stores in India to meet the changing taste of local
populace and have also opened stores abroad to serve Indian diaspora in the
countries where demand for traditional Indian crafted jewellery is high.
CRISIL believes
that Tier-II and Tier-III towns will drive growth for the branded gold
jewellery retailers over the medium term. Around two-thirds of the new outlets
that these retailers set up over the medium term will be in such small towns.
The demand for gold jewellery in these centers is strong and growing, buoyed by
increasing affluence and preference for branded jewellery.
Currently, the
domestic gems and jewellery market is fragmented across the value chain. There
are approximately 450000 unorganized players across the gems and jewellery sector
who operate on small margins. The organized market accounts for approximately
5% to 6% of the jewellery retail markets, if the national level players in the
organized market are considered whereas the organized market accounts for
approximately 16% to 18% of the jewellery retail market, in the event the
regional players are also included. It is expected that the organized jewellery
retail market in India is expected to grow more than 30% in the next couple of
years given the changing lifestyle and urbanization.
FIXED ASSETS
¨
Land
¨
Building
¨ Leasehold improvements
¨ Plant and machinery
¨ Office Equipments
¨ Computers
¨ Furniture and fixtures
¨ Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
ANK |
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 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.