MIRA INFORM REPORT
|
Report Date : |
25.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ AND COMPANY LIMITED |
|
|
|
|
Registered
Office : |
405, Dharam Palace, 100-103, N S Patkar Marg, Mumbai- 400007,
Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
13.04.1982 |
|
|
|
|
Com. Reg. No.: |
11-026903 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.192.910 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1982PLC026903 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS38907B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS0690P |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. Company’s Shares are Listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture, marketing, distribution, and retail of
diamond and jewellery products. |
|
|
|
|
No. of Employees
: |
1700 (Approximately) |
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 |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track record. Overall financial position of the company is decent. However, trade relations are reported to be fair. Business is active.
Payments are reported to be usually correct. The company can be considered normal for business dealing 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
India’s current account deficit for the fiscal third quarter ended September
2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9
billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and
moderation in gold imports. Manufacturing activity and new orders in India
showed their strongest growth in a year in February. The news comes as a relief
after data showed Asia’s third largest economy grew by a slower-than-expected
4.7 % annually in the three months through December. The HSBC Manufacturing
Purchasing Managers’ Index which gauges the business activity of India’s
factories but not its’ utilities, rose to 52.5 in February, its highest in a
year from 51.4 in January. Overall new orders for factory goods which rose to a
one-year high of 54.9 contributed to the surge. China has emerged as India’s
biggest trading partner in the current financial year replacing the United Arab
Emirates and pushing it to the third spot. India-China trade has reached $49.5
billion with a 8.7 % share in India’s total trade. The US comes second at $46
billion with 8.1 % share during the first nine months of the current financial
year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000
denominations, pushing the deadline to January 1, 2015. A day before dates for
the Lok Sabha polls were announced, the government decided to hike interest
rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The
new rates will be effective April, 1. The Supreme Court will resume hearing on
March, 11 Nokia’s appeal against a ruling over transferring ownership of its
local mobile phones plant which is the subject of a tax dispute to Microsoft
Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
17.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
17.10.2013 |
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 DECLINED
MANAGEMENT NON – COOPERATIVE (91-22-67720300)
LOCATIONS
|
Registered/ Corporate Office : |
405, Dharam Palace 100-103 N S Patkar Marg, Mumbai- 400007,
Maharashtra, India |
|
Tel. No.: |
91-22-56373500 |
|
Fax No.: |
91-22-23632982 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Jewellery Division |
G-21, Gem and Jewellery Complex – II, Seepz Andheri (East), Mumbai –
400 096, Maharashtra, India |
|
Tel. No.: |
91-22-56946210/ 66946100 |
|
Fax: |
91-22-56946161 |
|
Email: |
|
|
|
|
|
Corporate Office: |
HW 7011-13, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai –
400051, Maharashtra, India |
|
Tel. No.: |
91-22-6789788 |
|
Fax: |
91-22-26755800 |
|
Email: |
|
|
|
|
|
Overseas Offices : |
Located at: ·
·
Joliese ·
·
·
·
China ·
India ·
·
·
UAE ·
Germany ·
·
Israel ·
Hong Kong |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Nihar N Parikh |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Dr. B R Brwale |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Surendra A Dave |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Keki M Mistry |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Minoo R Shroff |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Suresh N Talwar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S S Thakur |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
MR. H E Festus G Mogae |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay M Abhyankar |
|
Designation : |
Company Secretary and compliance officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
36155117 |
37.48 |
|
|
15991503 |
16.58 |
|
|
52146620 |
54.06 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
52146620 |
54.06 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16847 |
0.02 |
|
|
5109295 |
5.30 |
|
|
15689404 |
16.27 |
|
|
2955 |
0.00 |
|
|
2955 |
0.00 |
|
|
20818501 |
21.58 |
|
|
|
|
|
|
9462203 |
9.81 |
|
|
|
|
|
|
5597120 |
5.80 |
|
|
4063025 |
4.21 |
|
|
4366160 |
4.53 |
|
|
1607828 |
1.67 |
|
|
1682706 |
1.74 |
|
|
801264 |
0.83 |
|
|
252287 |
0.26 |
|
|
19600 |
0.02 |
|
|
2475 |
0.00 |
|
|
23488508 |
24.35 |
|
Total Public shareholding (B) |
44307009 |
45.94 |
|
Total (A)+(B) |
96453629 |
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) |
96453629 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture, marketing, distribution, and retail of
diamond and jewellery products. |
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|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
Diamonds |
Carts |
Not Applicable |
Not Applicable |
381677* |
|
Studded Jewellery |
Nos. |
Not Applicable |
Not Applicable |
417072 |
GENERAL INFORMATION
|
No. of Employees : |
1700 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Rajendra and Company Chartered Accountant |
|
Address : |
1311, Dalmal Towers, 211, Nariman Point, Mumbai – 400021, Maharashtra,
India |
|
|
|
|
Solicitors : |
|
|
Name : |
Talwar Thakore and Associated Advocated and Solicitors |
|
Address : |
3rd Floor, Kalpataru Heritage, 127 M G Road, Fort, Mumbai –
400001, Maharashtra, India |
|
|
|
|
Wholly owned
subsidiary: |
|
|
|
|
|
Subsidiary: |
|
|
|
|
|
Associates: |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
225000000 |
Equity Shares |
Rs.2/- each |
Rs. 450.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
96453629 |
Equity Shares |
Rs.2/- each |
Rs. 192.910
Millions |
|
|
|
|
|
NOTE:
a) Of the above Equity shares:
i) 14,122,325 shares were issued pursuant to the scheme of amalgamation without payment being received in cash.
ii) 6,692,070 shares were issued pursuant to the exercise of option by the holders of Foreign Currency Convertible Bonds.
b) The Company had reserved 3,131,527 Equity shares of Rs.2/- each to be issued to eligible employees of the Company and its subsidiary companies under Employee Stock Option Scheme. Upto 31st March, 2013, the Company has granted 1,565,763 (P.Y. 1,565,763) options to the eligible employees for subscribing to equivalent numbers of fully paid up equity shares of the Company at a price of Rs.21/- per share. On exercise of options vested, 1,82,713 equity shares have been allotted during the year, cummulative shares alloted being 12,47,163 equity shares and balance of 2,91,500 (P.Y. 27,100) options have lapsed during the year. There are no outstanding options granted to employee.
Details of
shareholders holding more than 5% shares in the Company.
|
Particulars |
31.03.2013 |
|
|
|
No. of shares |
% Holding in the
class |
|
Equity shares of Rs. 2/- each fully paid |
|
|
|
Shreyas K. Doshi |
13,349,300 |
13.84% |
|
Vishal S Doshi |
7,491,009 |
7.77% |
|
Suman K Doshi |
7,552,125 |
7.83% |
|
Shrenuj Investments and Finance Private Limited |
14,815,251 |
15.36% |
|
HSBC Private Bank (Suisse) SA |
5,088,870 |
5.28% |
|
India Max Investment Fund Limited |
6,140,735 |
6.37% |
The reconciliation of
the number of share outstanding is set out below:
|
Particulars |
No. of shares |
|
Equity shares at the beginning of the year |
76,409,595 |
|
Add: Shares issued on exercise of Employee Stock Options |
182,713 |
|
Add: Shares issued on preferential basis to FII’s |
15,449,557 |
|
Add: Shares Issued on conversion of Unsecured Loans from promoters |
4,411,764 |
|
Total |
96,453,629 |
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 |
192.910 |
152.820 |
151.970 |
|
(b) Reserves & Surplus |
6501.280 |
4961.180 |
4702.570 |
|
(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) |
6694.190 |
5114.000 |
4854.540 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2011.670 |
1228.060 |
836.490 |
|
(b) Deferred tax liabilities
(Net) |
91.860 |
84.360 |
82.960 |
|
(c) Other long term
liabilities |
1.290 |
0.000 |
19.070 |
|
(d) long-term provisions |
31.660 |
20.080 |
0.000 |
|
Total
Non-current Liabilities (3) |
2136.480 |
1332.500 |
938.520 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
12389.560 |
10286.280 |
7838.660 |
|
(b) Trade payables |
11172.210 |
9283.820 |
5779.590 |
|
(c) Other current liabilities |
323.500 |
394.130 |
688.150 |
|
(d) Short-term provisions |
179.630 |
194.370 |
191.160 |
|
Total
Current Liabilities (4) |
24064.900 |
20158.600 |
14497.560 |
|
|
|
|
|
|
TOTAL |
32895.570 |
26605.100 |
20290.620 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2510.020 |
2085.830 |
2125.460 |
|
(ii) Intangible Assets |
15.720 |
17.820 |
20.360 |
|
(iii) Capital work-in-progress |
13.570 |
409.820 |
367.580 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1163.090 |
1163.090 |
1163.090 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1632.100 |
510.600 |
640.250 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
5334.500 |
4187.160 |
4316.740 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.150 |
1.050 |
1.180 |
|
(b) Inventories |
13771.530 |
11207.630 |
8442.190 |
|
(c) Trade receivables |
12516.580 |
9884.200 |
6752.040 |
|
(d) Cash and cash equivalents |
758.460 |
718.270 |
396.010 |
|
(e) Short-term loans and
advances |
514.350 |
606.790 |
382.460 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
27561.070 |
22417.940 |
15973.880 |
|
|
|
|
|
|
TOTAL |
32895.570 |
26605.100 |
20290.620 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22392.980 |
20241.650 |
15542.100 |
|
|
|
Other Income |
16.080 |
8.620 |
8.970 |
|
|
|
TOTAL (A) |
22409.060 |
20250.270 |
15551.070 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
13864.880 |
17392.440 |
12770.690 |
|
|
|
Purchase of Stock in trade |
8013.350 |
2251.950 |
691.680 |
|
|
|
Changes in inventories of Finished Goods, Work in Progress and Stock in Trade |
(2286.460) |
(1998.700) |
(238.460) |
|
|
|
Employee Benefits Expense |
378.060 |
360.980 |
365.360 |
|
|
|
Other Expenses |
966.090 |
844.170 |
802.480 |
|
|
|
TOTAL (B) |
20935.920 |
18850.840 |
14391.750 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1473.140 |
1399.430 |
1159.320 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
1012.650 |
876.680 |
675.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
460.490 |
522.750 |
483.710 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
63.010 |
63.200 |
58.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
397.480 |
459.550 |
425.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
92.500 |
116.000 |
119.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
304.980 |
343.550 |
305.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1085.780 |
835.090 |
618.040 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
32.000 |
35.000 |
35.000 |
|
|
|
Proposed Dividend |
57.870 |
49.780 |
45.730 |
|
|
|
Tax on Proposed Dividend |
9.840 |
8.080 |
7.420 |
|
|
BALANCE CARRIED
TO THE B/S |
1291.050 |
1085.780 |
835.090 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of goods exported |
15978.070 |
16478.200 |
11660.560 |
|
|
TOTAL EARNINGS |
15978.070 |
16478.200 |
11660.560 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
15525.280 |
13869.220 |
8506.040 |
|
|
|
Capital Goods |
12.270 |
18.120 |
14.460 |
|
|
|
Stores and Spare parts |
7.700 |
7.230 |
7.460 |
|
|
TOTAL IMPORTS |
15545.250 |
13894.570 |
8527.960 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.97 |
4.52 |
4.03 |
|
|
|
Diluted |
3.97 |
4.51 |
4.03 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.36
|
1.70 |
1.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.78
|
2.27 |
2.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.25
|
1.84 |
2.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.09 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.15
|
2.25 |
1.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.15
|
1.11 |
1.10 |
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 |
151.970 |
152.820 |
192.910 |
|
Reserves & Surplus |
4,702.570 |
4,961.180 |
6,501.280 |
|
Net
worth |
4,854.540 |
5,114.000 |
6,694.190 |
|
|
|
|
|
|
long-term borrowings |
836.490 |
1,228.060 |
2,011.670 |
|
Short term borrowings |
7,838.660 |
10,286.280 |
12,389.560 |
|
Total
borrowings |
8,675.150 |
11,514.340 |
14,401.230 |
|
Debt/Equity
ratio |
1.787 |
2.252 |
2.151 |
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 |
15542.100 |
20241.650 |
22392.980 |
|
|
|
30.238 |
10.628 |
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 |
15542.100 |
20241.650 |
22392.980 |
|
Profit |
305.200 |
343.550 |
304.980 |
|
|
1.96% |
1.70% |
1.36% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
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 |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
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.
OPERATIONS:
With the recessionary trends setting in the global markets during the year, the management adopted a cautious approach for marketing its products. Nevertheless it was able to sustain sales at the last year’s levels. The Company’s operations are vertically integrated and its customer base is well spread across different geographical zones, thus minimizing risks. The Company closed the year by starting ground work on the next phase of its expansion programme.
During the year 2012-13, revenues rose by 10.6% to Rs.22393.000 millions. EBIDTA at Rs.1473.000 millions was up by 5.3%. Net Profit was lower at Rs.305.000 millions (previous year Rs.344 million) mainly due to higher financing cost of Rs.1013.000 millions (previous year Rs.877.000 millions).
Consolidated revenue for the year grew by 22.6% to Rs.38621.000 millions from Rs.31506.000 millions in 2011-12. Consolidated profit was Rs.734.000 millions up by 4.3% from Rs.703 million. The financial performance under prevailing market conditions was satisfactory. There has been a revival in the US market. With recent correction in gold prices and better availability of rough diamonds, the demand in emerging markets including India and China, is expected to grow at a rapid rate.
Their branded products are being well received by the customers. This segment has helped to improve margins as well as created brand equity for their value added products. Despite economic slowdown in some of the markets, sales of these products have remained robust. Groundwork has been laid for the next phase of expansion.
ECONOMIC SCENARIO AND
OUTLOOK:
The global economy experienced a slowdown especially in the developed economies, which had its impact on India as well. The Indian economy had to contend with high inflation in 2012-13 and increased lending rates. The tightening of the monetary policy and a depreciation of rupee further slowed the growth of the economy which affected all sectors including the diamond and jewellery industry. There are signs of revival in consumption and less volatility in prices which will help to improve margins.
Retail operations in India continue to grow as planned. “Diti” has grown to 175 PoS in 36 cities now. The Company is planning to increase this to 225 within this year. The response to their products has been very encouraging so far. The Company expects this segment to contribute more significantly in the coming years.
With the enlargement of their manufacturing facilities, the Company is well geared to meet the projected high growth in demand. The Company has successfully tested a new collection in the US market which is now being rolled out to over 800 stores. Its variants, using 10 hearts and 10 arrows diamonds, will be made available to consumers in other markets during the year.
MANAGEMENT DISCUSSION
AND ANALYSIS
MACROECONOMIC
OUTLOOK: 2012-13:
The global economic environment in 2012 remained uncertain with an average growth of between 2% to 3%. There are signs of improving consumer confidence and of major policy changes in some of the developed markets which may provide the required momentum to spurt global growth and kick start the path of recovery. However, the situation in the emerging markets is more upbeat with strong consumer spending and investment sentiment driving economy between 5% to 8% in the current year. The US economy is definitely showing signs of steady recovery followed by Japan which is embarking on an ambitious policy of reflating its long moribund economy.
The growth prospects in the BRIC countries are patchy with only China and India likely to grow between 5% and 7.5% in the short term. Many of the smaller countries in South East Asia continue to grow at a moderate pace while consumption in Middle East and some of the fast growing African countries is showing signs of upward momentum.
While the environment is not yet propitious to return to the buoyant conditions obtaining in the pre-financial crisis era policy makers globally have become more conscious of fine turning their policies to grapple with the substantial volatility experienced in the recent past. The real worry is about the sovereign debt crisis in the Euro Zone with political countries raising concerns about possible sovereign default.
THE DIAMOND INDUSTRY:
Challenging times for
rough diamond producers:
2012 witnessed significant structural change in the diamond industry. The Oppenheimer family completed the sale of their 40% share of De Beers to Anglo American, ending a legacy of four generations of family ownership of the world’s most prominent diamond company. At the same time, Alrosa reinforced its position as the global leader in production terms, producing 7 mncts more than De Beers in 2012, and achieved $4.5 bn of sales in 2012 ($3.9 bn in 2011).
Against this backdrop, the global diamond market continued to operate during 2012 in a precarious fashion. Although diamond prices remained, in relative terms, at historically high levels, 2012 was without doubt a difficult trading period for diamond players. Unlike in 2011, when prices rose dramatically by up to 50% between January and August, followed by a sharp drop in September, the prices of rough diamonds have stagnated throughout 2012.
The diamond market was unable to repeat 2011’s strong early performance due to a combination of leading factors:
- declining marginal demand coming from the key emerging consumer markets of China and India
- the impact of the weak US economy and the financial crisis in the Euro zone
- the devaluation of the Indian Rupee
- the pricing policy of the main producers, DTC and Alrosa, remaining firm despite tightening liquidity and
- margins for their clients
Around the middle of 2012, the trade struggled to retain profitability in trading and manufacturing and businesses began rejecting their rough diamond allocations. Both De Beers and Alrosa dropped prices by a few percent (low single digits) in June and allowed their customers to defer a part of their allocations until up to March 2013. Clearly both main producers did not want to lower prices too much and attempted to use the volume lever to calm the market. However, by the end of August both producers were obliged to drop prices by a further 8-10% and lower the physical volumes they put into the market.
De Beers’, rough diamond sales dropped 15 percent, decline came on top of a further 12 percent plunge in selling
prices. The medium–sized producers, such as Gem Diamonds and Petra Diamonds, reported revenue / rough price reductions, but these were in line with the overall market.
Polished diamonds:
Gaining grounds
2012-13 witnessed a rise of 2-3% in the global retail sales of diamonds, compared to previous two years’ growth of about 10% per annum. China remained the best performing market recording about 8% growth while the US and Japan markets grew at about 5% each in US dollar terms. The Indian market disappointed with a decline of about 5% in US dollar terms but in Rupee terms, the market grew at ab out 9%.
The US market remains the leading diamond consuming market with a market share of about 37%, followed by China at 11%, Japan at 10% and India at about 9% in terms of polished diamonds sales to the consumer.
Since the end of 2006, the volume of carats entering the diamond pipeline has been reduced by a hefty 33 percent.
The huge decline in carat volume in the last six years has triggered an overcapacity of manufacturing in India and is exacerbating price volatility. But the fact is that reduced supplies have not translated into higher prices.
It is estimated that diamond jewellery retail sales grew by some 4.5-6 percent in 2012 to $72.1 billion. However, the diamond content measured in polished wholesale prices (PWP) in the retail product is declining. Research by Tacy Limited. and Mumbai-based Pharos Beam indicates that polished supplied to retailers increased by 2.2 percent in 2012. Since the comparable figure in 2011 was 10.3 percent, it is clear that the pace of growth in the diamond jewellery retail markets has stagnated. The prospects for 2013 look only slightly better.
This trend was even more profound in the sales from the cutting centers to the jewellery manufacturers. This figure was affected by the industry destocking. After a year-over-year increase of 19.4 percent in 2011, these ex-cutting center sales declined by 8.4 percent to $20.7 billion in 2012.
Global polished diamond sales dropped to $20.7 billion from $22.6 billion as the rough diamond sales declined to $15.5 billion from $18 billion. The declining sales clearly impacted the mood and trade confidence of the downstream players.
Much of the downstream sector’s future income will come from unconventional sources. In 2012, the impact of recycled diamonds back into the industry intensified. More and more companies made polished purchases from the public, from pawn shops and from estates. Entrepreneurs are holding auctions of recycled diamonds. About 5-7 percent of polished demand in 2012 was met by recycled diam onds rather than new diamonds.
It is generally believed that in 2013-14, rough supplies will be broadly similar to 2012-13 at around $15.7 billion, with polished demand growing by some 10 percent to $22.8 billion.
INDUSTRY OUTLOOK:
2013-14
There are mixed views amongst industry commentators regarding 2013 price growth; but all views are positive for the longer term. The key drivers here are the reduced volume of rough available from De Beers in the short-term, as their maintenance, waste-stripping and safety improvement programmes conclude (production at 27 mn cts in 2012) and a stabilising global economy. In longer-term, the fundamentals of the diamond market remain healthily robust. The price trend is certainly pointing upwards driven by limited supplies going forward, few new mines coming on-stream and continued growing demand from the emerging markets.
A report published by Bain and Co in December 2012 estimated that rough diamond demand would increase by 6% per annum until 2020, doubling the size of the industry. 2012 has not played out this way, but the anticipated price growth will come as the global economy recovers. Global rough production for 2011 was estimated at 124 mn cts (value $14 bn); in 2012 around 130 mn cts; and this figure is predicted to remain relatively stable in the coming years, potentially growing to 157 mncts by 2020.
Merrill Lynch has recently projected its positive view of the long-term fundamentals of the industry, citing diamonds as a “secular, late development commodity” with significant growth potential due to the low per capita consumption at present in the emerging markets and the expected supply-demand deficit in the medium-long term.
The emerging markets, led by China and India, continue to grow steadily, though at a somewhat lower rate than in 2012. Bain estimates Chinese diamond jewellery demand to have grown between 2005 and 2011 at 32% CAGR; and India at 22% CAGR. Indeed these two markets combined are anticipated to exceed the size of the US market by 2020.
OPERATIONAL
PERFORMANCE:
The financial performance of the Company under the prevailing market conditions is above par. With the normalization in availability of rough diamonds and decline in gold prices, it is expected that the demand in emerging markets, including India and China, will grow at a rapid rate.
The Company has been able to increase its revenue and per unit price by deploying innovative marketing strategies and offering exciting new products. The depth of its designing capabilities was the core to its success in the year.
With the increase in its manufacturing capacities, the Company is well geared to meet the projected high growth in demand over the next 5 years.
Shrenuj Group recorded a total operating income of Rs.38621.400 millions for the year 2012-13 as compared to revenue of Rs.31505.800 millions in the corresponding last period. The net profit for the period rose to Rs.733.700 millions (Rs.703.400 millions) resulting in an increase in EPS (diluted) to Rs.9.56 from Rs.9.23 last year. Based on the financial performance, the Board recommended a final dividend of 30% (Re.0.60 per share: FV Rs.2/-)
FINANCIAL
PERFORMANCE:
OVERVIEW
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. The management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein.
The estimates and judgments relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect in a true and fair manner the form and substance of the transactions, and reasonably present the Company’s state of affairs, profits and cash flows.
OUTLOOK
The supply of rough diamonds is expected to improve with the re-starting of Jwaneng mine in Botswana. The prices of gold have also declined and are not expected to spike back to the old levels. These two factors will help the business on the supply side. On the demand side, the markets in US, India, China, Middle East and CIS region continue to drive the demand while Europe continues to remain subdued.
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
731.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
From Directors |
251.520 |
504.220 |
|
Inter Corporate Deposits (from Companies under same management) |
672.000 |
719.300 |
|
Short-term
borrowings |
|
|
|
Shareholders |
18.000 |
9.800 |
|
Inter Corporate Deposits |
80.800 |
10.300 |
|
From others |
|
|
|
Financial Institution |
0.000 |
110.000 |
|
Fixed Deposits |
23.500 |
16.500 |
|
Total |
1045.820 |
1370.120 |
|
NOTE: LONG-TERM
BORROWINGS Unsecured loans from Directors and Companies are payable over a period
of 7 to 10 years. Loan from Directors carry interest of 8% and Inter Corporate
Deposits carry interest ranging from 8% to 16.25%. |
||
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10480636 |
17/02/2014 |
870,215.00 |
SARASWAT CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD, DADAR, MUMBAI, MAHARASHTRA - 400028, INDIA |
B97607543 |
|
2 |
10475847 |
27/01/2014 |
1,616,699.00 |
SARASWAT CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD, DADAR, MUMBAI, MAHARASHTRA - 400028, INDIA |
B95591012 |
|
3 |
10467801 |
21/12/2013 |
170,000,000.00 |
UNION BANK OF INDIA |
MUMBAI SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMACHAR MARG, FORT,, MUMBAI, MAHARASHTRA - 400023, INDIA |
B92598143 |
|
4 |
10459206 |
21/10/2013 |
200,000,000.00 |
BANK OF INDIA |
BHARAT DIAMOND BOURSE BRANCH, BANDRA KURLA COMPLEX, BANDRA - EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
B89143853 |
|
5 |
10456377 |
07/10/2013 |
1,066,082.00 |
SARASWAT CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD, DADAR, MUMBAI, MAHARASHTRA - 400028, INDIA |
B88086020 |
|
6 |
10456700 |
30/09/2013 |
752,838.00 |
SARASWAT CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD, DADAR, MUMBAI, MAHARASHTRA - 400028, INDIA |
B88194261 |
|
7 |
10432531 |
06/06/2013 |
1,000,000.00 |
SARASWAT CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD, DADAR, MUMBAI, MAHARASHTRA - 400028, INDIA |
B77699031 |
|
8 |
10406081 |
08/02/2013 |
1,120,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK, JMC HOUSE, OPP PARIMAL GARDENS, AMBAW ADI, AHMEDABAD, GUJARAT - 380006, INDIA |
B68547991 |
|
9 |
10381310 |
10/10/2012 |
300,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, JMC HOUSE, OPP PARIMAL GARDENS, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA |
B59989004 |
|
10 |
10376219 |
30/08/2012 |
687,397.00 |
THE SARASWAT CO-OPERATIVE BANK LTD |
LAXMAN ZULLA, 1ST FLOOR, 50, RANADE ROAD,, DADAR (W), MUMBAI, MAHARASHTRA - 400028, INDIA |
B57993933 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
|
|
|
Guarantees given by the Company on behalf of Subsidiaries and Associates in respect of Advances granted by Banks |
14261.900 |
|
Disputed Income Tax Liabilities not provided for |
98.800 |
|
Disputed Sales Tax Liabilities not provided for |
0.380 |
|
Corporate Guarantee executed in favor of Third Party |
33.300 |
|
Bond executed for import of Capital goods |
23.590 |
|
Letter of Credit against import of goods |
1576.760 |
|
Estimated amount of contracts remaining to be executed on capital account |
3.350 |
|
Total |
15998.080 |
FIXED ASSETS
TANGIBLE ASSETS
- Freehold Land
- Leasehold Land
- Building*
- Leasehold improvements
- Plant and Equipment
- Electrical Installations
- Office Equipment
- Furniture’s and Fixtures
- Vehicles
- Yacht
INTANGIBLE ASSETS
- Computer Software
- Trademarks
- Technical Knowhow
UNAUDITED
STANDALONE FINANCIAL RESULTS
FOR THE QUARTER /
NINE MONTHS ENDED 31ST DECEMBER, 2013
(RS. IN MILLIONS)
|
Particulars |
Quarter Ended on
|
Nine Months
Ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
1 Net Sales/ Income from Operations |
6295.940 |
6237.150 |
19267.660 |
|
Other Operating Income |
-- |
-- |
-- |
|
Total |
6295.940 |
6237.150 |
19267.660 |
|
|
|
|
|
|
2 Expenditure |
|
|
|
|
Cost of materials consumed |
3026.220 |
2952.760 |
11148.890 |
|
Purchase of Stock in trade |
2293.610 |
2789.630 |
7696.170 |
|
Changes in inventories of Finished Goods, Work in Progress and Stock in Trade |
310.110 |
(198.160) |
(1590.940) |
|
Employee Benefits Expense |
102.570 |
102.030 |
300.140 |
|
Depreciation/ Amortisation Expense |
16.330 |
16.740 |
50.160 |
|
Other Expenditure |
204.290 |
189.640 |
594.8200 |
|
Total |
5953.120 |
5852.640 |
18199.240 |
|
3. Profit from operations before other income,
Interest and Exceptional Item (1-2) |
342.820 |
384.510 |
1068.4200 |
|
4. Other Income |
14.680 |
0.270 |
34.600 |
|
5.Profit before Interest and Exceptional
Items (3+4) |
357.500 |
384.780 |
1103.020 |
|
6. Finance Costs |
253.6200 |
227.860 |
739.160 |
|
7. Profit After Interest but before
exceptional items (5-6) |
103.880 |
156.920 |
363.870 |
|
8. Exceptional Items |
-- |
-- |
-- |
|
9. Profit/ Loss from ordinary Activities
before tax (7+8) |
103.880 |
156.920 |
363.870 |
|
|
|
|
|
|
10. Tax Expenses |
|
|
|
|
a) Provision for Taxation |
26.00 |
65.000 |
120.000 |
|
b) Deferred Tax Liability |
0.500 |
1.000 |
2.500 |
|
|
|
|
|
|
11. Net Profit/ Loss from ordinary
Activities after tax (9-10) |
77.380 |
90.920 |
241.370 |
|
12. Extraordinary item (net of tax expenses
Rs.) |
-- |
-- |
-- |
|
13. Net Profit/ Loss for the period (11-12) |
77.380 |
90.920 |
241.370 |
|
14. Paid-up Equity Shares Capital (Face Value of Rs. 2/- each) |
192.910 |
192.910 |
192.910 |
|
15. Reserves excluding Revaluation Reserve
as per balance sheet of previous accounting year) |
|
|
|
|
|
|
|
|
|
16. Earning per share (EPS) |
|
|
|
|
a) Basic and Diluted EPS before Extraordinary
items for the year to date and for the previous year. (not to be annualized) |
0.80 |
0.94 |
2.50 |
|
b) Basic and Diluted EPS after Extraordinary
items for the period, for the year to date and for the previous year
(including to be annualized) |
0.80 |
0.94 |
2.50 |
|
|
|
|
|
|
17. Public shareholding |
|
|
|
|
- Number of Shares |
44307009 |
44307009 |
44307009 |
|
- Percentage of shareholding |
45.93 |
45.93 |
45.93 |
|
|
|
|
|
|
18. Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
- Number of shares |
30041700 |
30041700 |
30041700 |
|
- Percentage of Share (as a % of the total
shareholding of promoter and promoter group) |
57.61 |
57.61 |
57.61 |
|
- Percentage of share (as a % of the total share
capital of the company) |
31.15 |
31.15 |
31.15 |
|
|
|
|
|
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
22104920 |
22104920 |
22104920 |
|
- Percentage of Share (as a % of the total
shareholding of promoter and promoter group) |
42.39 |
42.39 |
42.39 |
|
- Percentage of share (as a % of the total
share capital of the company) |
22.92 |
|
|
INVESTOR COMPLAINTS
|
PARTICULARS |
3 Months ENDED 31.12.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED (STANDALONE)
(RS. IN MILLIONS)
|
Particulars |
Quarter Ended on
|
Nine Months
Ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
1. Segment Revenue (Net Sale/ Income from) |
|
|
|
|
-
Diamond |
4902.150 |
4682.370 |
14789.470 |
|
-
Studded Jewellery |
1518.590 |
1645.570 |
4742.060 |
|
Total |
6420.730 |
6327.940 |
19531.540 |
|
|
|
|
|
|
Less: Inter Segment Revenue |
124.800 |
90.790 |
263.880 |
|
Net Sales/ Income from Operation |
6295.940 |
6237.150 |
19267.660 |
|
|
|
|
|
|
2. Segment Results (profit before tax and Interests) |
|
|
|
|
-
Diamond |
263.070 |
253.660 |
771.490 |
|
-
Studded Jewellery |
96.33 |
133.620 |
331.530 |
|
Total |
359.400 |
387.280 |
1103.020 |
|
|
|
|
|
|
Less: Interests |
253.620 |
227.860 |
739.160 |
|
Unallocated Income /(Expenditure) |
1.900 |
2.500 |
-- |
|
|
|
|
|
|
Total Profit before Tax |
103.880 |
156.920 |
363.870 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
-
Diamond |
4647.360 |
4765.610 |
4647.360 |
|
-
Studded Jewellery |
2456.62 |
2278.670 |
2456.620 |
|
Total Capital Employed in Segment |
7103.980 |
7044.280 |
7103.980 |
|
|
|
|
|
|
Add: Unallowable assets less liabilities |
(176.750) |
(239.370) |
(176.750) |
|
|
|
|
|
|
Total capital employed in the company |
6927.230 |
6804.920 |
6927.230 |
NOTE:
The above unaudited standalone financial results for the current quarter/nine months ended December 31, 2013 were subjected to a limited review by the Auditors of the Company and reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on February 07, 2014.
The Company has applied hedge accounting principles in respect of forward
exchange contracts as set out in Accounting Standard AS 30 - Financial
Instruments : Recognition and Measurement, issued by the Institute of Chartered
Accountants of India. Accordingly, contracts as on December 31, 2013 are Marked
to Market and a notional gain aggregating to Rs. 3.750 millions ( Notional gain
of Rs.0.970 million as at December 31, 2012) arising on contracts that were
designated as effective hedges of future cash flows, has been directly
reflected in the reserves.
The Company had revalued / fair valued its Land and Buildings situated at Mumbai
and consequently, there is an additional charge for depreciation of Rs.6.470
millions for the Quarter ended December 31, 2013 (Rs. 6.470 millions for
quarter ended December 31, 2012) and an amount of Rs. 4.650 millions and Rs.
1.82 0millions (Rs. 4.640 millions and Rs. 1.810 millions) has been withdrawn
from Revaluation Reserve and Amalgamation Reserve respectively as per the
scheme sanctioned by the Hon'ble High Court of Judicature at Bombay vide order
dated October 01, 2010. This has no impact on the profit for the period.
Previous year's/quarter's figures are re-grouped wherever necessary.
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.60.70 |
|
|
1 |
Rs.100.11 |
|
Euro |
1 |
Rs.83.81 |
INFORMATION DETAILS
|
Information Gathered
by : |
HTL |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
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.