MIRA
INFORM REPORT
|
Report Date : |
24.02.2014 |
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 |
|
|
|
|
Comments : |
Subject is a part
of Blue Star Group. It 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 – 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.
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
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Ishwar |
|
Designation : |
Finance Head |
|
Contact No.: |
91-22-40404444 |
|
Date : |
21.02.2014 |
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. |
||||
|
|
|
||||
|
Products : |
|
||||
|
|
|
||||
|
Exports : |
|
||||
|
Products : |
·
Diamonds |
||||
|
Countries : |
·
USA ·
Japan ·
UK |
||||
|
|
|
||||
|
Imports : |
|
||||
|
Products : |
·
Diamonds |
||||
|
Countries : |
·
UK ·
Belgium |
||||
|
|
|
||||
|
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 |
|||||||||||||||
|
|
|
|||||||||||||||
|
No. of Employees : |
1600 (Approximately) |
|||||||||||||||
|
|
|
|||||||||||||||
|
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 |
|||||||||||||||
|
|
|
|||||||||||||||
|
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 |
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.62.16 |
|
|
1 |
Rs.103.44 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
SMN |
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.