|
Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHIVAM JEWELS |
|
|
|
|
Registered
Office : |
FW-6022, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2013 (Summarised Figure –Unaudited) |
|
|
|
|
Year of
Establishment : |
June 2013 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.100.385 Millions |
|
|
|
|
IEC No.: |
0313023212 |
|
|
|
|
PAN No.: [Permanent Account No.] |
ACIFS9899P |
|
|
|
|
Legal Form : |
Partnership Concern with an unlimited liability of the partners |
|
|
|
|
Line of Business
: |
Processor of Rough Diamonds. |
|
|
|
|
No. of Employees
: |
485 (Approximately) (In Office 90) + (In Factory 395) |
RATING & COMMENTS
|
MIRA’s Rating : |
NB |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
- |
NB |
New Business |
- |
|
Maximum Credit Limit : |
USD 401000 |
|
|
|
|
Status : |
New Business |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a new partnership concern and establishing itself
gradually. Mr. Ghanshyam Shankar, Partner has provided general information and
unaudited financials of 7 months (June 2013-December 2013). Trade relations are improving. Business is active. Payment terms are
slow but correct. The concern can be considered for business dealing on a safe and
secure 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 worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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
|
Name : |
Mr. Ghanshyam Shankar |
|
Designation : |
Partner |
|
Contact No.: |
91-9820025325 |
|
Date : |
13.02.2014 |
LOCATIONS
|
Registered Office : |
FW-6022, Bharat Diamond Bourse, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-40902222 |
|
Mobile No.: |
91-9820025325 (Mr. Ghanshyam Shankar) |
|
Fax No.: |
91-22-40902200 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
600 Sq. Ft. |
|
Location : |
Rented |
|
|
|
|
Factory/ Corporate Office : |
164, Pramukh Darshan, Vastadevdi Road, Katargam, Surat – 390004,
Gujarat, India |
|
Tel. No.: |
91-261-2531801-3-4-5 |
|
E-Mail : |
|
|
Area : |
24000 Sq. Ft. |
|
Location : |
Owned |
PARTNERS
|
Name : |
Mr. Ghanshyam Shankar |
|
Designation : |
Partner |
|
Date of Birth/Age : |
01.06.1963 |
|
Qualification : |
B Com |
|
|
|
|
Name : |
Mr. Ashwin Shankar |
|
Designation : |
Partner |
|
Date of Birth/Age : |
23.11.1982 |
|
Qualification : |
B Com |
|
|
|
|
Name : |
Mr. Nikunj Shankar |
|
Designation : |
Partner |
|
Date of Birth/Age : |
19.12.1988 |
|
Qualification : |
BSC |
|
|
|
|
Name : |
Mr. Sanjay Shankar |
|
Designation : |
Partner |
|
Date of Birth/Age : |
23.12.1982 |
|
Qualification : |
HSC |
BUSINESS DETAILS
|
Line of Business : |
Processor of Rough Diamonds. |
|
|
|
|
Exports : |
|
|
Products : |
Diamonds |
|
Countries : |
·
Hong Kong ·
USA ·
Israel |
|
|
|
|
Imports : |
|
|
Products : |
Rough Diamonds |
|
Countries : |
Belgium |
|
|
|
|
Terms : |
|
|
Selling : |
L/C and Credit (90 days) 50% COD |
|
|
|
|
Purchasing : |
L/C, Cash and Credit (60 days to 120 days) |
PRODUCTION STATUS
|
Particulars |
Installed
Capacity |
|
Cut and Polish Diamonds |
10000 cts P.M |
GENERAL INFORMATION
|
Suppliers : |
·
D Navin Chandra and Company ·
Leo Sector |
|
|
|
|
Customers : |
Wholesalers and Retailers |
|
|
|
|
No. of Employees : |
485 (Approximately) (In Office 90) + (In Factory 395) |
|
|
|
|
Bankers : |
· State Bank of India, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India · ICICI Bank Limited, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India |
|
|
|
|
Facilities : |
·
LC Rs.30.000 Millions (From State Bank of India) ·
Cash Credit Rs.70.000 Millions (From State Bank of
India) |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
VA Parikh and Company Chartered Accountants |
|
Address : |
7-C, Nusser House, 20 M.P. Marg, Opera House, Mumbai – 400051,
Maharashtra, India |
|
Tel No.: |
91-22-23698854 |
|
E-Mail: |
|
|
|
|
|
Sister Concern : |
Name: Bhavani Gems Address: Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India Line of Business: Processor of
Rough Diamonds. |
CAPITAL STRUCTURE
As on: 31.12.2013
|
Capital Investment : |
Rs.
In Millions |
|
Capital Account |
|
|
A D Shankar |
23.391 |
|
G M Shankar |
64.314 |
|
N G Shankar |
12.680 |
|
|
|
|
Total |
100.385 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
(SUMMARISED
FIGURES)
|
Particular |
31.12.2013 (7 Months) |
|
|
(Unaudited) |
|
Liabilities |
|
|
Capital Account |
100.385 |
|
|
|
|
Current Liabilities |
829.566 |
|
|
|
|
Profit and Loss A/c |
14.169 |
|
|
|
|
Assets |
|
|
Loans
(Liability) |
5.500 |
|
|
|
|
Fixed Assets |
38.877 |
|
|
|
|
Inventories |
750.485 |
|
Deposits (assets) |
11.112 |
|
Sundry Debtors |
113.380 |
|
Cash & Bank Balances |
8.484 |
|
|
|
|
Branch/ Division |
16.281 |
|
|
|
|
Sales Turnover (Approximately) |
415.600 |
|
|
|
|
Profit/Loss for the year (%) |
3.21% |
Expected Sales (2014): Rs.1000.000 Millions
The above information has been parted by Mr. Ghanshyam Shankar
Note : Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
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 |
Yes |
|
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 about seven months |
Yes |
|
12] |
Profitability for last three years |
No |
|
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 |
Yes |
|
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 |
No |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
TRADE REFERENCES
·
D Navin Chandra and Company, Mumbai
·
Leo Sector, Israel
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the untiring
and unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market liquidity.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
|
|
1 |
Rs.103.67 |
|
Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
VRN |
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.