MIRA INFORM REPORT

 

 

 

Report Date :

03.03.2014

 

IDENTIFICATION DETAILS

 

Name :

C I 2 JEWELLERY PRIVATE LIMITED

 

 

Registered Office :

Plot No. GJ-05, Seepz ++ Seepz – Sez, Andheri East, Mumbai-400096, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

16.08.2007

 

 

Com. Reg. No.:

11-163558

 

 

Capital Investment/ Paid-up Capital:

Rs.12.500 Millions

 

 

CIN No.:

[Company Identification No.]

U27205MH2006PTC163558

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC14545G

 

 

PAN No.:

[Permanent Account No.]

AACCC8614P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers and Exporters of Studded Gold, Studded Platinum and Studded Silver. 

 

 

No. of Employees:

Not Available

 

 

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.

 

LOCATIONS

 

Registered Office/  Factory 1 :

Plot No. G J – 05, Seepz + +, Seepz – Sez, Andheri [East], Mumbai – 400096, Maharashtra, India

Tel. No.:

91-22-28290055 / 28290056/ 40677777

Fax No.:

91-22-28290317/ 40677798

E Mail:

inof@cj2jewels.com

ci2jewellery@gmail.com

ci2jewels@yahoo.co.in

ashishamehta@yahoo.com

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Ashwinkumar Mehta

Designation :

Director

Address :

2 Aryavarta, 351, Naryan Dabholkar Marg, Near Government Guest House, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

10.09.1946

Date of Appointment:

08.04.2006

DIN No.:

00410492

Other Directorship :

M Suresh Exports Private Limited

U36910MH1991PTC064190

Partnership held in partnership firm :

Exquisite Jewellery

G-7, Gems and Jewellery Complex – II, Seepz – Sez, Andheri [East], Mumbai – 400096, Maharashtra, India

 

 

Name :

Mr. Shanay Shailesh Mehta

Designation :

Director

Address :

A-61, Maker Tower, Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

14.03.1987

Date of Appointment :

30.09.2009

DIN No.:

00531904

 

 

Name :

Mr. Shaileshkumar Sumanlal Mehta

Designation :

Director

Address :

A – 72, Maker Tower, Cuff Parade, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

14.09.1949

Date of Appointment

08.04.2006

DIN No.:

00410580

 

 

Name :

Mr. Ashish Ashwinkumar Mehta

Designation :

Director

Address :

2 Aryavarta, 351, Naryan Dabholkar Marg, Near Government Guest House, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

14.01.1972

Date of Appointment

08.04.2006

DIN No.:

00410546

Other Directorship :

Exquisite Jewellery

G-7, Gems and Jewellery Complex – II, Seepz – Sez, Andheri [East], Mumbai – 400096, Maharashtra, India

 

 

Name :

Mr. Minesh Shah

Designation :

Director

Address:

B-56, Nalanda, 62, Peddar Road, Mumbai-400026, Maharashtra, India

Date of Birth/ Age:

23.09.1965

Date of Appointment:

08.04.2006

DIN No.:

00515568

 

 

Name :

Mr. Himanshu Shah

Designation :

Whole Time Director

Address:

301, Dhavalgiri, Gowalia Tank, Nana Chowk, Mumbai-400036, Maharashtra, India

Date of Birth/ Age:

09.07.1969

Date of Appointment:

08.04.2006

DIN No.:

00410645

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

 

No. of Shares

Ashwinkumar Mehta

 

400000

Shaileshkumar Mehta

 

400000

Shobhana Mehta

 

125000

Nita S. Mehta

 

125000

Ashish A Mehta

 

100000

Shanay Mehta

 

100000

Total

 

1250000

 

Equity Share Breakup (Percentage of Total Equity)

 

As on 30.09.2010

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of Studded Gold, Studded Platinum and Studded Silver. 

 

 

Products:

Product Description

ITC Code

Diamond Studded Gold Jewellery

711319.03

 

PRODUCTION STATUS AS ON (31.03.2010)

 

Actual Production: 75055 PCs.

 

GENERAL INFORMATION

 

Bankers :

Bank of India, Seepz Branch, Seepz-MIDC, Andheri (East), Mumbai-400096, Maharashtra, India

 

 

Facilities:

Secured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

Loans from Bank (Gold Loan)

(Hypothecated against stock receivables)

7.976

10.598

Bank of India (EPC) 007182610000012

(Hypothecated against stocks and receivables)

5.500

0.000

Total

13.476

10.598

 

 

 

Unsecured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

Shaileshkumar S Mehta

59.010

59.010

Ashwinkumar S Mehta

64.000

64.000

Ashish  A Mehta

57.500

57.500

Shanay S Mehta

6.500

6.500

Total

187.010

187.010

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

G. N. Joshi Associates

Chartered Accountant

Address :

K K Chambers, 3rd Floor, Sir P.T. Marg, Fort, Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-22071551/ 22077200/ 22071417

Fax No.:

91-22-22077592

E-Mail :

gnjasso@vsnl.com

 

 

Group Company :

Ø       A. S. Exports

Address : Seepz,  Andheri [East], Mumbai – 400096, Maharashtra, India

Line of Business: Manufacturers and Exporters of Studded Gold, Studded Platinum and Studded Silver.

 

Ø       Exquisite Jewellery

Address : Seepz,  Andheri [East], Mumbai – 400096, Maharashtra, India

Line of Business: Manufacturers and Exporters of Studded Gold, Studded Platinum and Studded Silver

 

 

CAPITAL STRUCTURE

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs. 10/- each

Rs. 50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1250000

Equity Shares

Rs. 10/- each

Rs. 12.500 Millions

 

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000

Equity Shares

Rs. 10/- each

Rs. 20.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1250000

Equity Shares

Rs. 10/- each

Rs. 12.500 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

12.500

12.500

12.500

2] Share Application Money

108.775

89.584

26.664

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

121.275

102.084

39.164

LOAN FUNDS

 

 

 

1] Secured Loans

13.476

10.598

58.000

2] Unsecured Loans

187.010

187.010

194.510

TOTAL BORROWING

200.486

197.608

252.510

DEFERRED TAX LIABILITIES

8.924

6.337

3.034

 

 

 

 

TOTAL

330.685

306.029

294.708

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

153.821

155.647

129.587

Capital work-in-progress

0.000

0.000

3.917

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

72.274

56.902

66.773

 

Sundry Debtors

140.350

100.733

169.791

 

Cash & Bank Balances

14.089

24.123

3.459

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

8.832

8.986

16.307

Total Current Assets

235.545

190.744

256.330

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

60.142

42.554

97.975

 

Other Current Liabilities

0.000

0.000

0.000

 

Provisions

0.000

0.000

0.073

Total Current Liabilities

60.142

42.554

98.048

Net Current Assets

175.403

148.190

158.282

 

 

 

 

MISCELLANEOUS EXPENSES

1.461

2.192

2.923

 

 

 

 

TOTAL

330.685

306.029

294.708

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

27.985

72.077

32.321

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

6.118

5.743

2.665

 

 

 

 

 

 

PROFIT BEFORE TAX

21.867

66.334

29.656

 

 

 

 

 

Less

TAX                                                                 

2.676

3.413

3.070

 

 

 

 

 

 

PROFIT AFTER TAX

19.191

62.921

26.588

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

89.584

26.664

0.076

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

108.775

89.585

26.664

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

392.582

420.912

NA

 

TOTAL EARNINGS

392.582

420.912

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

38.979

40.385

NA

 

 

Stores & Spares

0.288

5.585

NA

 

 

Capital Goods

0.020

0.820

NA

 

TOTAL IMPORTS

39.287

46.790

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

15.35

--

--

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

Return on Total Assets

(PBT/Total Assets}

(%)

8.78

19.15

5.83

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

0.65

0.76

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.15

2.35

8.95

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.92

4.48

2.61

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

 

The Registered office of the company is shifted from 615-624, Parekh Market, 39, Kennedy Bridge, Opera House, Mumbai – 400004, Maharashtra, India to present address w.e.f. 20.03.2007

 

Bankers Charges Report as per Registry

 

This form is for

Creation of charge

Corporate identity number of the company

U27205MH2006PTC163558

Name of the company

C I 2 JEWELLERY PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Plot No. G J – 05, Seepz + +, Seepz – Sez, Andheri [East], Mumbai – 400096, Maharashtra, India

Type of charge

Immovable Property

Others

Particular of charge holder

Bank of India, Seepz Branch, Seepz-MIDC, Andheri (East), Mumbai-400096, Maharashtra, India

Nature of description of the instrument creating or modifying the charge

Mortgage has been created by way of deposit of title deeds in favour of Bank of India Seepz branch and memorandum of Entry/ Oral Assents Dated 25.06.2008

Date of instrument Creating the charge

25.06.2008

Amount secured by the charge

Rs. 240.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As stipulated by bank from time to time

 

Terms of Repayment

On demand and/ or as stipulated by bank from time to time

 

Margin

As stipulated by bank from time to time

 

Extent and Operation of the charge

First charge (Present and future) Total Limit of Rs. 240.000 Millions

1)       Export Packing  Credit : Rs. 50.000 Millions

2)       Gold Loan : Rs. 50.000 Millions

Max (1 + 2): Rs. 50.000 Millions

3)       FBP/FBD/ FBN/ ODFOBC (DP/DA 120 Days) : Rs. 50.000 Millions

4)       Term Loan: Rs. 140.000 Millions

As stipulated by bank from time to time.

 

Others

As stipulated by bank from time to time and as per sanction letter of the bank

Short particulars of the property charged

First charge (Present and future) – 1) EMG of Factory land and building located on Plot No. GJ-05, Seepz++ In Seepz- Sez, Andheri- East, Mumbai-400096 together with all the immovable plant and machinery constructed/ erected or installed thereon.

 

 

Fixed Assets:

 

·         Land

·         Building

·         Machineries

·         Computer

·         Furniture and Fixture

·         Office Equipments

 

 

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, India Prisons Service, Interpol, etc.

 

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.62.73

UK Pound

1

Rs.103.87

Euro

1

Rs.85.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

NKT

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.