MIRA
INFORM REPORT
|
Report Date : |
27.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
GOLDIAM INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai –
400096, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
10.10.1986 |
|
|
|
|
Com. Reg. No.: |
11-041203 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 249.460 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36912MH1986PLC041203 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08508D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG2271J |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Jewellery and Diamonds. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually correct |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitment. 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.
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 DECLINED
Management non-cooperative (Tel. No.: 91-22-28291893)
LOCATIONS
|
Registered Office/ Factory : |
Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai –
400096, Maharashtra, India |
|
Tel. No.: |
91-22-28291893 |
|
Fax No.: |
91-22-28292885 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Factory 2: |
Santacruz Electric Export Processing Zone, Seepz, Andheri (East),
Mumbai – 400096, Maharashtra, India |
|
|
|
|
Diamond Procurement Office : |
2, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Manhar R. Bhansali |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
Int. Com |
|
|
|
|
Name : |
Mr. Rashesh M. Bhansali |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B. Com |
|
|
|
|
Name : |
Mr. Ajay M. Khatlawalal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Rajesh G. Kapadia |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. R. Srinivasan |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Anita Kate |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
14070100 |
56.40 |
|
|
14070100 |
56.40 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
14070100 |
56.40 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8000 |
0.03 |
|
|
400 |
0.00 |
|
|
8400 |
0.03 |
|
|
|
|
|
|
501397 |
2.01 |
|
|
|
|
|
|
4376456 |
17.54 |
|
|
2417772 |
9.69 |
|
|
3571871 |
14.32 |
|
|
8994 |
0.04 |
|
|
2700000 |
10.82 |
|
|
23086 |
0.09 |
|
|
1600 |
0.01 |
|
|
397450 |
1.59 |
|
|
60000 |
0.24 |
|
|
379741 |
1.52 |
|
|
1000 |
0.00 |
|
|
10867496 |
43.56 |
|
Total Public shareholding
(B) |
10875896 |
43.60 |
|
Total (A)+(B) |
24945996 |
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) |
24945996 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Jewellery and Diamonds. |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Jewellery |
Kgs |
N. A. |
N. A. |
193.44 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||
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Bankers : |
·
The Hongkong and Shanghai Banking ·
Corporation Limited ·
YES Bank Limited ·
Standard Chartered Bank ·
Punjab National Bank ·
Citibank N.A |
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Pulindra Patel and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
· Diagold Designs Limited · Goldiam Jewellery Limited · Goldiam USA, Inc. · Goldiam Jewels Limited (upto 28th September, 2012) |
|
|
|
|
Associates : |
· Goldiam HK Limited · Temple Designs LLP |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31000000 |
Equity Shares |
Rs.10/- each |
Rs.310.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
|
|
24945996 |
Equity Shares |
Rs.10/- each |
Rs.249.460 Millions |
|
|
|
|
|
|
|
Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up, as applicable.
|
Particulars |
Opening Balance |
|
Equity shares with
voting rights : |
|
|
At the beginning of the year |
|
|
– Number of shares |
24945996 |
|
– Amount (Rs.) in millions |
249.460 |
|
Add : Addition
during the year : |
|
|
– Number of shares |
-- |
|
– Amount (Rs.) in millions |
-- |
|
Less : Deduction
During the year : |
|
|
– Number of shares |
-- |
|
– Amount (Rs.) in millions |
-- |
|
Year ended 31
March, 2013 : |
|
|
– Number of shares |
24945996 |
|
– Amount (Rs.) in millions |
249.460 |
|
Year ended 31
March, 2012 |
|
|
– Number of shares |
24945996 |
|
– Amount (Rs.) in millions |
249.460 |
Details of shares
held by each shareholder holding more than 5% shares:
|
Class of shares / Name of shareholder |
As on 31.03.2013 |
|
|
|
Number of shares held |
% holding in that class of shares |
|
Equity shares with voting rights |
|
|
|
Mr. Manhar Bhansali |
7103428 |
28.48% |
|
Mr. Rashesh Bhansali |
5703638 |
22.86% |
|
M/s Diajewel N.V. |
2700000 |
10.82% |
|
Equity shares with differential voting rights |
-- |
-- |
Aggregate number and
class of shares allotted as fully paid up pursuant to contract(s) without
payment being received in cash, bonus shares and shares bought back for the
period of 5 years immediately preceding the Balance Sheet date:
Aggregate number of shares
|
Particulars |
As on 31.03.2013 |
|
Equity shares with voting rights |
|
|
Fully paid up pursuant to contract(s) without payment being received in cash |
-- |
|
Fully paid up by way of bonus shares |
-- |
|
Shares bought back |
-- |
|
Equity shares with differential voting rights |
|
|
Fully paid up pursuant to contract(s) without payment being received in cash |
-- |
|
Fully paid up by way of bonus shares |
-- |
|
Shares bought back |
-- |
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 |
249.460 |
249.460 |
249.460 |
|
(b) Reserves & Surplus |
1416.501 |
1375.172 |
1333.442 |
|
(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) |
1665.961 |
1624.632 |
1582.902 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
9.517 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
9.517 |
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
529.487 |
207.490 |
84.775 |
|
(b) Trade payables |
237.856 |
229.925 |
129.386 |
|
(c) Other current liabilities |
26.787 |
6.255 |
5.768 |
|
(d) Short-term provisions |
26.548 |
15.012 |
2.326 |
|
Total
Current Liabilities (4) |
820.678 |
458.682 |
222.255 |
|
|
|
|
|
|
TOTAL |
2496.156 |
2083.314 |
1805.157 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
195.499 |
94.278 |
94.900 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
1.486 |
0.000 |
0.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
275.310 |
319.498 |
270.509 |
|
(c) Deferred tax assets (net) |
0.000 |
7.563 |
10.783 |
|
(d) Long-term Loan and Advances |
2.281 |
2.035 |
2.035 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
474.576 |
423.374 |
378.227 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
803.251 |
624.501 |
591.743 |
|
(b) Inventories |
336.498 |
278.782 |
316.947 |
|
(c) Trade receivables |
697.601 |
556.733 |
429.506 |
|
(d) Cash and cash equivalents |
127.012 |
143.282 |
29.475 |
|
(e) Short-term loans and
advances |
57.218 |
56.642 |
59.259 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
2021.580 |
1659.940 |
1426.930 |
|
|
|
|
|
|
TOTAL |
2496.156 |
2083.314 |
1805.157 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
974.577 |
915.983 |
821.536 |
|
|
Other Income |
45.134 |
66.850 |
50.128 |
|
|
TOTAL
(A) |
1019.711 |
982.833 |
871.664 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
719.180 |
678.575 |
567.122 |
|
|
Purchases of Stock-in-Trade |
58.937 |
98.403 |
114.628 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
0.571 |
(1.702) |
(7.454) |
|
|
Employees benefits expense |
15.648 |
14.375 |
12.323 |
|
|
Other expenses |
94.761 |
65.128 |
88.031 |
|
|
Exceptional items |
(18.033) |
0.000 |
0.000 |
|
|
TOTAL
(B) |
871.064 |
854.779 |
774.650 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
148.647 |
128.054 |
97.014 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7.097 |
6.367 |
2.931 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
141.550 |
121.687 |
94.083 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
13.798 |
13.468 |
13.698 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
127.752 |
108.219 |
80.385 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
42.837 |
23.000 |
16.948 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H)
(I) |
84.915 |
85.219 |
63.437 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
808.296 |
772.066 |
737.718 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
5.000 |
5.500 |
0.000 |
|
|
Dividend |
28.993 |
31.892 |
24.946 |
|
|
Tax on Dividend |
14.593 |
11.597 |
4.143 |
|
|
Balance
Carried to the B/S |
844.625 |
808.296 |
772.066 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
922.777 |
857.202 |
718.792 |
|
|
TOTAL
EARNINGS |
922.777 |
857.202 |
718.792 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
364.249 |
334.590 |
275.244 |
|
|
Components and Stores parts |
1.073 |
1.522 |
0.771 |
|
|
Capital Goods |
1.742 |
2.879 |
2.082 |
|
|
TOTAL
IMPORTS |
367.064 |
338.991 |
278.097 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
3.40 |
3.42 |
2.54 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.33 |
8.67 |
7.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.11 |
11.81 |
9.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.76 |
6.16 |
5.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.07 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.31 |
0.12 |
0.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.46 |
3.62 |
6.42 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
249.460 |
249.460 |
249.460 |
|
Reserves & Surplus |
1,333.442 |
1,375.172 |
1,416.501 |
|
Net
worth |
1,582.902 |
1,624.632 |
1,665.961 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
84.775 |
207.490 |
529.487 |
|
Total
borrowings |
84.775 |
207.490 |
529.487 |
|
Debt/Equity
ratio |
0.054 |
0.128 |
0.318 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
821.536 |
915.983 |
974.577 |
|
|
|
11.496 |
6.397 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
821.536 |
915.983 |
974.577 |
|
Profit |
63.437 |
85.219 |
84.915 |
|
|
7.72% |
9.30% |
8.71% |
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
OPERATIONS
The operations of the Company have shown improvement as compared to the previous year. The Company has achieved a turnover of Rs. 974.577 millions during the year under report as compared to Rs. 915.983 millions during the previous year reflecting a growth of 6.40% over the previous year. The net profit of the company decreased by 0.36% from Rs. 85.219 millions to Rs. 84.915 millions in the previous year. The decline in the profit is due to increase in the cost of materials, manufacturing and other expenses and decrease in the foreign exchange earning.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The gems and jewellery industry occupies an important position in Indian economy, It is a leading foreign exchange earner and also one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jeweler’s forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. A predominant portion of gold jewellery manufactured in India is consumed in the domestic market. In diamonds, however, a major portion of rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. Besides being largest consumer of gold, India is also the leading diamond cutting nation in the world.
According to the Gems and Jewellery Export Promotion Council (GJEPC), the Gems and Jewellery industry has strived hard towards reducing India’s current account deficit by controlling imports and increasing exports. The industry’s contribution towards India’s exchequer has also seen a staggering rise of 154 percent. The financial year 2012-2013 ended on a positive note with imports of rough diamonds going up by 12.65 percent indicating an increase in cutting, polishing and other manufacturing activities in India. The Industry also saw an increase in manufacturing activities indicated by the 33 percent growth in the export of gold jewellery contributing significantly to India’s foreign exchange earnings and supported balance of payments. The year also witnessed a significant drop of 61.45 percent in the import of cut and polished diamonds indicating a huge cut in India’s foreign exchange spending, thereby reducing the country’s current account deficit. Total gems and jewellery exports for the year 2012-2013 was US $ 39.033 billion.
OUTLOOK
The outlook for the Gems and Jewellery Industry looks positive. According to the Gems and Jewellery Export Promotion Council (GJEPC), India’s Gems and Jewellery are expected to grow at a whopping rate of 12 to 15 percent in the financial year 2013-2014.
FINANCIAL PERFORMANCE
The resurgence of the global economies and the persistent efforts of the Company to sustain its trade relations besides expanding its base to other markets have helped the Company to show a considerable improvement in its performance during the year as compared to the previous year. The Company has achieved a turnover of Rs. 974.577 millions during the year as compared to Rs. 915.983 millions during the previous year reflecting a growth of 6.40% over the previous year. The profits of the Company has decreased from Rs. 85.219 millions to Rs. 84.915 millions. The decline in the profit can be attributed to increase in the cost of materials, manufacturing and other expenses and decrease in foreign exchange earning.
The consolidated turnover of the Company, its Subsidiaries and Joint Ventures has increased from Rs. 2452.639 millions in the previous year to Rs. 2656.665 millions during the year recording a growth of 8.32%. The consolidated net profit after tax has increased from Rs. 152.298 millions in the previous year to Rs. 186.596 millions in the year registering growth of 22.52%.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
The Company has outstanding performance guarantee of Rs.159.150 millions as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.10.019 millions).
The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs.13.697 millions (Previous year Rs.13.697 millions) on account of property tax.
The Company has executed Bank Guarantee of Rs. 325.000 millions (Previous year Rs. 250.000 millions) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND FOR THE PERIOD ENDED 31ST
DECEMBER, 2013
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales / Income from operations (Net of Excise Duty) |
424.068 |
298.137 |
1028.966 |
|
|
Other Operating Income |
-- |
-- |
-- |
|
|
Net Sales/Income
from Operations |
424.068 |
298.137 |
1028.966 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed
|
307.513 |
233.214 |
764.529 |
|
|
Purchase in Stock In Trade |
8.580 |
11.118 |
55.326 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
9.492 |
9.609 |
22.643 |
|
|
Employee Benefits Expenses |
4.110 |
4.041 |
12.215 |
|
|
Depreciation and Amortization Expenses |
4.398 |
4.123 |
12.593 |
|
|
Other Expenses |
42.905 |
21.610 |
92.039 |
|
|
f) Total |
376.998 |
283.715 |
959.345 |
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
47.070 |
14.422 |
69.622 |
|
4. |
Other Income |
(5.792) |
(11.034) |
26.411 |
|
5. |
Profit
from Ordinary Activities before Finance Cost and Exceptional Items (3-4) |
41.278 |
3.388 |
96.033 |
|
6. |
Finance Cost |
1.882 |
2.564 |
7.038 |
|
7. |
Profit
from Ordinary Activities before Finance Cost but before Exceptional Items
(3-4) |
39.396 |
0.824 |
88.995 |
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
Profit on sale of assets |
-- |
-- |
-- |
|
|
Loss on sale of Assets |
-- |
-- |
-- |
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
39.396 |
0.824 |
88.995 |
|
10. |
Tax Expense |
8.787 |
0.115 |
18.227 |
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
30.610 |
0.710 |
70.768 |
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
13. |
Net
Profit for the period (11-12) |
30.610 |
0.710 |
70.768 |
|
|
Share of Profit / (loss) of Associates |
-- |
-- |
-- |
|
|
Disposal in the stake of subsidiary |
-- |
-- |
-- |
|
|
Minority interest |
-- |
-- |
-- |
|
|
Net
Profit / (loss) after taxes, minority interest and share of profit / (loss)
of associates |
30.610 |
0.710 |
70.768 |
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
249.460 |
249.460 |
249.460 |
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic |
1.23 |
0.03 |
2.84 |
|
|
b) Diluted |
1.23 |
0.03 |
2.84 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
10875896 |
10895561 |
10875896 |
|
|
- Percentage of Shareholding |
43.60% |
43.68% |
43.60% |
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
14070100 |
14050435 |
14070100 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
56.40% |
56.32% |
56.40% |
|
Particulars
|
31.12.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed of during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
Nil |
Note:
The above unaudited results for the quarter ended 30 December 2013 have been subjected to “Limited Review” by the statuary auditors of the company and have been reviewed by the Audit Committee were taken on record by the Board of Directors of the Company at its meeting held on 11th February, 2014.
Consolidated financial statements of the Company, its subsidiaries and Joint
ventures have been prepared in accordance with Accounting Standards on
Consolidated Financial Statements (AS 21) and Financial Reporting of Interests
in Joint venture (AS-27) issued by the Institute of Chartered Accountants of
India.
Tax Expenses includes Current Tax & Deferred Tax for the quarter & year
ended on 31st December, 2013.
The exceptional items includes profit on sale of office premises and loss on
sale of stake in equity holding in subsidiary, M/s. Goldiam Jewels Limited.
The stand alone results of the company are available on the company.
The figures of previous periods are regrouped / rearranged wherever considered necessary to correspond with current period presentation.
The figures in Rs Lakhs are rounded off to two decimals.
SEGMENT WISE REVENUE
RESULT AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT.
(Rs. In Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
Primary Segment |
|
|
|
|
|
Segment Revenue |
|
|
|
|
|
Jewellery |
432.216 |
295.118 |
1043.952 |
|
|
Investment |
(13.917) |
(11.259) |
7.835 |
|
|
Total
|
418.299 |
283.859 |
1051.787 |
|
|
Less:
Inter Segment Revenue |
-- |
-- |
-- |
|
|
Net sales/ Income from operation |
418.299 |
283.859 |
1051.787 |
|
|
|
|
|
|
|
|
Segment
Results |
|
|
|
|
|
Profit/
(loss) before tax and interest |
|
|
|
|
|
Jewellery |
55.195 |
17.801 |
91.968 |
|
|
Investment |
(13.917) |
(13.572) |
5.522 |
|
|
Total
|
41.278 |
4.229 |
97.490 |
|
|
|
|
|
|
|
|
Less: Interest |
1.882 |
2.564 |
7.038 |
|
|
Other un-allocable expenditure (Net) |
-- |
0.841 |
1.457 |
|
|
Total
Profit Before Tax |
39.396 |
0.824 |
88.995 |
|
|
|
|
|
|
|
|
Capital
Employed |
|
|
|
|
|
Jewellery |
795.426 |
673.745 |
795.426 |
|
|
Investment |
898.984 |
972.740 |
898.984 |
|
|
Unallocated Assets / (Liabilities) |
42.313 |
59.629 |
42.313 |
|
|
Total
|
1736.723 |
1706.114 |
1736.723 |
|
|
|
|
|
|
|
|
Secondary
Segment |
|
|
|
|
|
Segment
Revenue |
|
|
|
|
|
Within India |
0.677 |
1.483 |
2.963 |
|
|
Exports outside india |
54.518 |
16.318 |
89.005 |
|
|
Total
Revenue |
55.195 |
17.801 |
91.968 |
|
|
|
|
|
|
|
|
Segment
Assets |
|
|
|
|
|
Within India |
9.177 |
3.351 |
9.177 |
|
|
Exports outside india |
1546.829 |
1520.738 |
1546.829 |
|
|
Total
Assets |
1556.006 |
1524.089 |
1556.007 |
|
|
|
|
|
|
|
|
Segment
Liabilities |
|
|
|
|
|
Within India |
-- |
-- |
-- |
|
|
Exports outside india |
760.580 |
850.344 |
760.580 |
|
|
Total
Liabilities |
760.580 |
850.344 |
760.580 |
Note:
The company has identified two reportable segment viz, jewellery, manufacturing and Investment Activity. Segment have been identified and reported taking into account nature of products and services, the different risk and returns and the internal business reporting system.
The company has identified geographic segments as its secondary geographic segment of the company are mainly local market in India and exports out of India.
The capital employed in the respective is worked out after considering the operating assets and liabilities that are directly attributable to the segment as well as allocated to the segment on a reasonable basic.
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.
FIXED ASSETS
·
Factory Building
·
Office Premises
·
Furniture and Fixtures
·
Office Equipment
·
Plant and Machinery
·
Computer
·
Air Conditioner
·
Electrical Installation
·
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. 61.94 |
|
|
1 |
Rs. 103.31 |
|
Euro |
1 |
Rs. 85.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
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.