MIRA INFORM REPORT
|
Report Date : |
18.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN STAR COMPANY LIMITED |
|
|
|
|
Registered
Office : |
114 – C, Mittal
Court, Nariman Point, Mumbai – 400021, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
02.03.1995 |
|
|
|
|
Com. Reg. No.: |
11-086017 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.160.068 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36910MH1995PLC086017 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufactures and retails diamonds and diamond jewelry. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having good track record. General financial position of the company is good. Share price are
quoted high on stock exchange. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular 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.
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2014.
INFORMATION DECLINED BY
|
Name : |
Mr. Manoj Shah |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-22821886 |
|
Date : |
17.11.2014 |
LOCATIONS
|
Registered Office : |
114 – C, Mittal
Court, Jamnadas Bajaj Road, Nariman Point, Mumbai – 400021, Maharashtra,
India |
|
Tel. No.: |
91-22-22821886 / 22824257 |
|
Fax No.: |
91-22-22043747/
22842427 / 22043743 |
|
Email: |
|
|
Website : |
|
|
Location: |
Owned |
|
|
|
|
Corporate Office: |
604 Aman Chambers Queens Road Opera House, Mumbai 400004, Maharashtra,
India |
|
|
|
|
Sales and Marketing Office : |
704- Aman Chambers, |
|
Tel. No.: |
91-22-23613662/ 23648450/ 23695128 |
|
Fax No.: |
91-22-23647268 |
|
E-Mail : |
|
|
|
|
|
Manufacturing Plant : |
Cut and polished
Diamonds 8-1269/70/71, Rangildas Mehta Street, Opposite, Terapanthi Bhavan,
Gopipura, Kaji Maidan, Surat, Gujarat – 395 001 Diamond Studded
Jewellery Plot No.5, F -11/12, WICEL, opposite
SEEPZ, MIDC (Marol) Wind Energy Sangli , |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Dinesh T.
Shah |
|
Designation : |
Chairman and Chief
Executive Officer |
|
Date of Birth/Age : |
16.01.1940 |
|
Qualification : |
B.Sc |
|
Date of Appointment : |
02.03.1995 |
|
|
|
|
Name : |
Mr. Vipul P. Shah |
|
Designation : |
Chief Executive
Officer and Managing Director |
|
Date of Birth/Age : |
23.09.1967 |
|
Qualification : |
B.Com |
|
Date of Appointment : |
02.03.1995 |
|
|
|
|
Name : |
Mr. Dharmesh D.
Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arvind T.
Shah |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Priyanshu A.
Shah |
|
Designation : |
Executive
Director |
|
Date of Birth/Age : |
14.05.1981 |
|
Qualification : |
B.Com, A
Certified Gemologist from G I A , |
|
Date of Appointment : |
08.10.2004 |
|
|
|
|
Name : |
Mr. Bhupendra K.
Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Mohanram
Pai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Apurva R.
Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hasmukh B.
Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Milind H
Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Miyar R. Nayak |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Aparna Shinde |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11950000 |
74.66 |
|
|
11950000 |
74.66 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
11950000 |
74.66 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
715053 |
4.47 |
|
|
715053 |
4.47 |
|
|
|
|
|
|
2613952 |
16.33 |
|
|
|
|
|
|
22296 |
0.14 |
|
|
705499 |
4.41 |
|
|
50117 |
0.31 |
|
|
655356 |
4.09 |
|
|
26 |
0.00 |
|
|
3341747 |
20.88 |
|
Total Public shareholding (B) |
4056800 |
25.34 |
|
Total (A)+(B) |
16006800 |
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) |
16006800 |
0.00 |
|
|
|
|
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl.No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand
total (A)+(B)+(C |
|
40,00,050 |
24.99 |
||
|
2 |
Arvind Tarachand Shah |
15,84,450 |
9.90 |
|
3 |
Priyanshu Arvind Shah |
12,15,450 |
7.59 |
|
4 |
Rasila Arvind Shah |
12,00,000 |
7.50 |
|
5 |
Dharmesh Dinesh Shah |
11,50,000 |
7.18 |
|
6 |
Nirmalaben Dinesh Shah |
12,00,000 |
7.50 |
|
7 |
Dinesh Tarachand Shah |
10,00,050 |
6.25 |
|
8 |
Nirmalaben Dinesh Shah |
6,00,000 |
3.75 |
|
|
Total |
1,19,50,000 |
74.66 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
SL. NO. |
NAME OF THE
SHAREHOLDER |
NO. OF SHARES HELD |
SHARES AS % OF
TOTAL NO. OF SHARES |
|
|
1 |
Flora Impex Private Limited |
784113 |
4.90 |
|
|
2 |
Nishant Impex Private Limited |
768790 |
4.80 |
|
|
3 |
United India Insurance Company Limited |
715053 |
4.47 |
|
|
4 |
Rahil Impex Private Limited |
690936 |
4.32 |
|
|
5 |
Liston Investments Limited |
605850 |
3.78 |
|
|
6 |
Shloka Traders Private Limited |
368898 |
2.30 |
|
|
|
Total |
3933640 |
24.57 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufactures and retails diamonds and diamond jewelry. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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|
|
||||||
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Imports : |
Not Divulged |
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|
||||||
|
Terms : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
|
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Facilities : |
|
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
V.A. Parikh and Associates Chartered Accountants |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Particulars of Enterprises
Under Common control of the Key Management Personnel: |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
40000000 |
|
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 650.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16006800 |
Equity Shares |
Rs.10/- each |
Rs. 160.068
Millions |
|
|
|
|
|
NOTE:
THE DETAILS OF
SHAREHOLDERS HOLDING MORE THAN 5% OF THE AGGREGATE SHARES IN THE COMPANY
|
Name of The Shareholders |
As At March
31, 2014 |
|
|
|
No. of Shares
Held |
% of Holding |
|
Vipul Prabodh Shah |
4000050 |
24.99 |
|
Nirmala Dinesh Shah |
1800000 |
11.25 |
|
Arvind Tarachand Shah |
1584450 |
9.90 |
|
Priyanshu Arvind Shah |
1215450 |
7.59 |
|
Rasila Arvind Shah |
1200000 |
7.50 |
|
Dharmesh Dinesh Shah |
1150000 |
7.18 |
|
Dinesh Tarachand Shah |
1000050 |
6.25 |
|
Total |
11950000 |
74.66 |
THE RECONCILIATION OF
THE NUMBER OF SHARES OUTSTANDING IS SET OUT BELOW
|
PARTICULARS |
31.03.2014 |
|
Equity shares at the beginning of the year |
1,60,06,800 |
|
Add: Shares issued as bonus shares |
-- |
|
|
|
|
Equity shares at the end of the year |
160.068 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
160.068 |
160.068 |
106.712 |
|
(b) Reserves & Surplus |
4484.440 |
4105.099 |
3820.229 |
|
(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) |
4644.508 |
4265.167 |
3926.941 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
581.805 |
418.705 |
531.700 |
|
(b) Deferred tax liabilities
(Net) |
245.952 |
246.393 |
250.281 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
626.375 |
480.646 |
352.282 |
|
Total
Non-current Liabilities (3) |
1454.132 |
1145.744 |
1134.263 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
7593.030 |
7470.983 |
5683.540 |
|
(b) Trade payables |
853.875 |
1818.014 |
1512.455 |
|
(c) Other current liabilities |
43.466 |
271.707 |
44.010 |
|
(d) Short-term provisions |
208.851 |
178.584 |
146.907 |
|
Total
Current Liabilities (4) |
8699.222 |
9739.288 |
7386.912 |
|
|
|
|
|
|
TOTAL |
14797.862 |
15150.199 |
12448.116 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1677.545 |
1492.154 |
1483.413 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
168.656 |
172.813 |
23.086 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
34.816 |
34.816 |
34.816 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
148.451 |
139.993 |
98.440 |
|
(e) Other Non-current assets |
636.274 |
467.238 |
343.864 |
|
Total
Non-Current Assets |
2665.742 |
2307.014 |
1983.619 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
12.948 |
39.040 |
8.911 |
|
(b) Inventories |
3826.363 |
5148.892 |
4153.689 |
|
(c) Trade receivables |
6457.415 |
6091.000 |
4660.315 |
|
(d) Cash and cash equivalents |
1472.207 |
1129.625 |
890.798 |
|
(e) Short-term loans and
advances |
363.187 |
434.628 |
630.233 |
|
(f) Other current assets |
0.000 |
0.000 |
120.551 |
|
Total
Current Assets |
12132.120 |
12843.185 |
10464.497 |
|
|
|
|
|
|
TOTAL |
14797.862 |
15150.199 |
12448.116 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
22882.481 |
21203.830 |
15290.886 |
|
|
Other Income |
12.375 |
10.903 |
-0.231 |
|
|
TOTAL
(A) |
22894.856 |
21214.733 |
15290.655 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
18457.997 |
18579.703 |
13610.493 |
|
|
Purchases of Stock-in-Trade |
89.192 |
844.227 |
308.386 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
959.181 |
(935.742) |
(524.704) |
|
|
Employees benefits expense |
276.836 |
243.885 |
211.944 |
|
|
Other expenses |
2210.964 |
1687.457 |
1082.681 |
|
|
Exceptional Items |
1.245 |
(15.169) |
0.183 |
|
|
TOTAL
(B) |
21995.415 |
20404.361 |
14688.983 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
899.441 |
810.372 |
601.672 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
224.414 |
203.512 |
137.271 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
675.027 |
606.860 |
464.401 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
88.033 |
85.110 |
80.144 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
586.994 |
521.750 |
384.257 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
179.562 |
146.132 |
117.899 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
407.432 |
375.618 |
266.358 |
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
2320.300 |
2002.000 |
1774.300 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Dividend / Proposed Dividend
on Equity Shares |
24.000 |
32.000 |
16.000 |
|
|
Tax on Dividend |
4.100 |
5.400 |
2.000 |
|
|
Transferred to General Reserve |
20.000 |
20.000 |
20.000 |
|
|
Balance
Carried to the B/S (J+K+L-M) |
2727.700 |
2377.700 |
2002.100 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
16420.343 |
13926.930 |
NA |
|
|
TOTAL
EARNINGS |
16420.343 |
13926.930 |
NA |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
11453.550 |
8976.499 |
NA |
|
|
TOTAL
IMPORTS |
11453.550 |
8976.499 |
NA |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
25.45 |
23.47 |
16.64 |
QUARTERLY RESULTS
|
Particulars |
30.06.2014 |
30.09.2014 |
|
|
1ST Quarter |
2nd Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
5850.300 |
5994.400 |
|
Total Expenditure |
5622.600 |
5749.600 |
|
PBIDT (Excl OI) |
227.700 |
244.800 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
227.700 |
244.800 |
|
Interest |
49.900 |
65.000 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
177.800 |
179.800 |
|
Depreciation |
25.600 |
47.000 |
|
Profit Before Tax |
152.200 |
132.800 |
|
Tax |
49.800 |
34.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
102.500 |
98.500 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
102.500 |
98.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin PAT/ Sales |
(%) |
1.78 |
1.77 |
1.74 |
|
|
|
|
|
|
|
PBIDT / Sales |
(%) |
3.93 |
3.82 |
3.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.02 |
3.49 |
3.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13 |
0.12 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.76 |
1.85 |
1.58 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39 |
1.32 |
1.42 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
106.712 |
160.068 |
160.068 |
|
Reserves & Surplus |
3820.229 |
4105.099 |
4484.440 |
|
Net
worth |
3926.941 |
4265.167 |
4644.508 |
|
|
|
|
|
|
long-term borrowings |
531.700 |
418.705 |
581.805 |
|
Short term borrowings |
5683.540 |
7470.983 |
7593.030 |
|
Total
borrowings |
6215.240 |
7889.688 |
8174.835 |
|
Debt/Equity
ratio |
1.583 |
1.850 |
1.760 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
15290.886 |
21203.830 |
22882.481 |
|
|
|
38.670 |
7.917 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
15290.886 |
21203.830 |
22882.481 |
|
Profit |
266.358 |
375.618 |
407.432 |
|
|
1.74% |
1.77% |
1.78% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
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 |
No |
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.
COMPANY’S PERFORMANCE
Considering the overall economic scenario and the competition in market, the performance of the Company during the year 2013-14 was quiet satisfactory. The sale during the year at Rs. 22882.500 Millions has grown by 8% over that of previous year whereas profit after tax for the year has grown by 8 % at Rs. 407.400 Millions.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
The year 2013-14 was a year of uncertainty when the expectations weathered a setback. Amidst challenges, growth was elusive with under performance being the norm in almost all regions and major economies. Growth in the world GDP dipped from 3.2 per cent in 2012 to 3.0 percent in 2013.
The second half of the year marked a significant turnaround in the fortunes of global economy which saw a clear pickup in momentum with rise in output, investments and confidence, both on consumer as well as on the investor fronts. Europe witnessed greater financial stability and there were signs of revival in a number of its constituent nations. The US too registered improvement in employment levels and overall growth prospects prompting Federal Reserve to initiate withdrawal of stimulus measures.
The slowdown in the Chinese economy seems to have bottomed out with its growth steadying at 7.7 per cent for two consecutive years. Though this is much lower as compared to the double digit growth which it used to have, it is still formidable as compared to growth in other major economies.
In India, growth continued to be muted with the second successive year of sub 5% GDP growth. Volatile rupee with free fall in the first half, stubborn inflation, high cost of borrowing and delays in project approvals adversely impacted the consumer as well as business and investor confidence. Confronted with a difficult macroeconomic situation, the government and RBI took various corrective measures to support the economic growth. These had a positive impact in the latter half of the fiscal year with GDP growth recovered at 4.9%. Formation of a strong and stable government at the Centre is expected to augur well for India’s economy with improved sentiment fuelled by expectation of speedier reforms and implementation of progressive policies.
INDUSTRY OVERVIEW
Global Gems and
Jewellery Industry
The year 2013-14 was yet another challenging year for the Gems and Jewellery Industry. Growth was subdued as retail sales in all the major markets continued to be slow during major part of the year owing to uncertain economic conditions. Rough prices continued to rise throughout the year without corresponding rise in the prices of cut and polished diamonds and jewellery due to low consumer confidence. This further squeezed the already shrinking margins. There were signs of improvement and optimism towards the latter part of the year with economies of major diamond markets stabilising and starting to grow.
Despite slowdown, the US currently accounts for the largest share of jewellery market in the world with more than half of its market being dominated by the diamond jewellery segment. Euro zone is showing signs of revival and demand in this region is expected to improve in the coming year. Regionally, Asia Pacific holds the world's largest jewellery market and is being driven largely by China and India, the two largest consumers of gold in the world and also hold majority of the processing and manufacturing industry for jewellery. Though the demand in both these countries had slowed down in past couple of years, they are poised for growth as their economies seem to have bottomed out. India, alongside China, has been identified as the fastest growing market in the world for luxury jewellery over the next five years. In fact, Indian consumers’ aspirations for diamonds may eventually outpace their demand for gold. Analyst expect China to double its share of global jewellery market in couple of years and become the second largest diamond consuming market after the US.
Indian Gems and
Jewellery Industry
The Gems and Jewellery industry has been playing a very important role in the Indian economy and contributes about 6-7 per cent to the country's gross domestic product (GDP), besides large scale employment generation and contribution to the country’s foreign exchange earnings. In FY 2013–14, the Indian gems and jewellery sector contributed US$ 34.75 billion to India's foreign exchange earnings. Sensing its immense potential, the Government of India has declared the sector as a thrust area for export promotion.
The overall export of Gems and Jewellery fell by 11 per cent to US$ 34.75 billion in 2013-14 as compared to US$ 39.04 billion in previous year. This was mainly due to subdued demand in the global markets and gold supply constraints in the domestic market throughout the year. The UAE was a key export destination with 35 per cent export followed by Hong Kong at 28 per cent and the US at 14 per cent.
Cut and Polished
Diamonds
India is the world’s largest centre for cutting and polishing of rough diamonds. Historically developed as a cutting centre for smaller sized and lower valued diamonds, India is now seen as a centre that can provide diamonds of virtually all sizes, shapes and colour with many of the larger companies having moved into cutting diamonds of larger sizes and fancy shapes and cuts. India provides the best solution in diamond processing in terms of cost, quality and timeline. Its favourable geographic location has made India a one-stop sourcing centre for overseas buyers. During the year 2013-14, exports of cut and polished diamonds increased by over 12 per cent to US$ 19.63 billion as compared to 17.43 billion in the previous year.
Jewellery
Jewellery witnessed one of the most challenging year. Export of jewellery and gold medallion fell by 39.5 per cent during the year mainly due to prolonged global economic crisis and various regulatory curbs imposed by government to rein the current account deficit. However, improvement in the global economies, relaxation of various restrictions by the government and reduction in import duty of gold is expected to put this segment back on the growth trajectory. India is witnessing a shift in consumer preference towards platinum jewellery and diamond studded jewellery. The increase in sales of platinum and diamond jewellery alone accounted for a third of the jewellery sales in 2013. Furthermore, the aggregate demand for diamond jewellery has increased by over 25 per cent in the domestic market, with the high-end diamond jewellery exhibiting strong sales.
The Indian branded jewellery market is growing far more rapidly than the overall jewellery market. Changing demographic profile, increasing disposable incomes, changing consumer tastes and preferences is driving and will continue to drive the demand for branded jewellery. Branded jewellery has an aspirational value catering to the rising desires and wants of the upwardly mobile segments. Retail brands are expanding their reach in tier II and tier III cities to penetrate and explore the untapped market. Many global majors are looking at India strategically, both in terms of a lucrative market as well as a destination for cost competitive solutions.
COMPANY OVERVIEW
Subject. is a one of the largest integrated diamantaires in the world and Diamond Trading Company Sightholder. The Company has a presence across the entire value chain: from diamond cutting and polishing, jewellery manufacturing and distribution to jewellery retailing. The Company has been Enduring Excellence to create a distinct and differentiated edge over its competitors, which has enabled the Company to emerge as a preferred supplier for diamonds and diamond jewellery to some of the leading retail brands and retail chains across the globe.
Manufacturing Facility for Polished Diamonds The Company has been a pioneer in cutting and polishing of diamonds. It has a world-class manufacturing set up in Surat with state-of-the art machinery and equipment. The Company completed expansion at this facility during the last fiscal year. This facility, spread across 1,00,000 sq.ft., employs more than 1300 skilled workforce. This technically advanced facility with production team having an experience of more than four decade is fully competent to deal with the complexities with regard to size, colour and cuts. The Company has been known for the consistency in its quality and cut which is known as ‘Asian Star Make’ in the industry.
Manufacturing
Facility for Jewellery
The Company has three units for jewellery manufacturing, two dedicated for domestic market and one serving to the international clients. These units located at Mumbai and Hosur are spread over 50,000sq.ft and employ more than 500 skilled employees. These units are equipped with advanced machinery and technology, encompassing rapid prototyping technology, the CAD/CAM software and ‘Lean Manufacturing’ processes. Production processes are synchronised to deliver maximum flexibility and minimum production cycle times, thus maximising client value. Mass produced or customised, hand-made or machine-made, the highly skilled artisans deliver a trademark precision to detail in every jewellery piece.
DISTRIBUTION
The Company has aligned its global presence over the years through focussed marketing and expansion into newer geographies and emerging hot-spots of consumption. It has positioned itself strategically in the major diamond consuming centres with an extensive network of subsidiaries and marketing arms enabling it to create bespoke products. Currently, the Company is looking towards strengthening its presence in other key emerging markets, namely Russia, South Africa and Turkey.
RETAIL
The Company has a couture boutique, ex-factory Mumbai, to cater to HNI customers. From simply elegant to stunning signature pieces, the collections portray an exquisite blend of the modern and classic. Besides offering a wide range of pręt diamond jewellery, the Company also undertakes customised orders with jewellery design consultation.
FUTURE OUTLOOK
The world economic outlook appears more upbeat for 2014 and is expected to rebound for the first time since the global financial crisis of 2008. The World Bank report projects the global economy to strengthen this year, with growth picking up in developing countries. The growth rate for the US economy is predicted to rise to 3.0 per cent in 2015 from 2.8 per cent in 2014. The Japanese economy has also shown signs of improvement under the leadership of its new government. In China, there are positive signs of a better 2014. Euro zone too is showing signs of stability. Despite many challenges it is facing at present, the World Bank is projecting India’s economy to grow by over 6 per cent in 2014- 15 and 7.1 per cent by 2016-17. The global diamond consumption is expected to increase by about 5 per cent as compared to 3 percent in the previous year. USA, the largest jewellery market is set to grow by more than 5 to 7 per cent for the coming few years.
The overall jewellery market in China is likely to remain stable with a 10 per cent growth rate. Given the positive fundamentals for the economic climate, CARE Research expects the growth rate of the diamond industry to break through historical levels in the next two years.
In India, sentiments have improved substantially post the strong verdict in the 2014 elections. The new government has expressed its commitment to bring about sustainable and inclusive growth. It aims to usher the economy to a higher pedestal, rein in inflation, reduce current account deficit, reignite the investment cycle and restore the confidence of domestic and international communities in the national economy. In India, CARE Research anticipates expansion of the market to fast-track with improved consumer confidence, rising income, urbanization and increasing population of working women and upper middle class.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Loan from Related Party- Directors |
581.805 |
418.705 |
|
Total |
581.805 |
418.705 |
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
80060890 |
27/08/2012 * |
9,075,000,000.00 |
BANK OF INDIA |
OPERA HOUSE BRANCH,
HERMES HOUSE, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI, MAHARASHTRA - 400004,
|
B58300567 |
|
2 |
80060891 |
22/08/2014 * |
11,825,000,000.00 |
BANK OF INDIA |
OPERA HOUSE MID
CORPORATE BRANCH, HERMES HOUSE, |
C19605310 |
* Date of charge modification
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE, 2014
(Rs. In Millions)
|
|
Quarter Ended |
|
30.06.2014 (unaudited) |
|
|
1.
Income from operations |
|
|
a) Net sales/ Income from operation (net of excise duty) |
5850.253 |
|
b) Other operating income |
0.000 |
|
Total
income from Operations(net) |
5850.253 |
|
2.Expenditure |
|
|
a) Cost of material consumed |
5408.782 |
|
b) Purchases of stock in trade |
0.000 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(461.904) |
|
d) Employees benefit expenses |
78.586 |
|
e) Depreciation and amortization expenses |
25.562 |
|
f) Other expenditure |
113.480 |
|
f) Processing Charges |
483.631 |
|
Total Expenses |
5648.137 |
|
3. Profit from operations before other income and financial
costs |
202.116 |
|
4. Other income |
0.018 |
|
5. Profit from ordinary activities before finance costs |
202.134 |
|
6. Finance costs |
49.919 |
|
7. Profit before exceptional Items and Tax |
152.215 |
|
6. Exceptional Items |
0.00 |
|
9. Profit before tax |
152.215 |
|
10.Tax expenses |
49.755 |
|
11.Net
Profit for the Period |
102.460 |
|
14.Paid-up
equity share capital |
160.068 |
|
ii) Earnings per share (after extraordinary items) |
|
|
(a) Basic and diluted |
6.40 |
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
4056800 |
|
- Percentage of shareholding |
25.34 |
|
2. Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
- |
|
Percentage of shares (as a % of total share capital of the
company) |
- |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
11950000 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00 |
|
Percentage of shares (as a % of total share capital of the
company) |
74.66 |
|
*Excludes shares represebted by Global Depository
Receipts. |
|
|
B. Investor
Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unreserved at the end of the quarter |
Nil |
NOTE:
The above unaudited financial results were reviewed by the Audit Committee and taken on record at the meeting of the Board of Directors held on August 11, 2014. The results have been subjected to a limited review by the statutory auditors of the Company.
The figures have been regrouped/rearranged wherever necessary.
The company recognises two reportable business segment viz., diamonds and
jewellery. The business, which is not reportable during the quarter, has been
grouped under 'Others' segment, this comprises wind energy generation.
In view of The Ministry of Corporate Affairs (‘MCA’), Government of India,
circular nos. 17/2011 dated April 21, 2011 and 18/2011 dated April 29, 2011,
Members are hereby requested to write a letter addressed to our registered
office address or e-mail us at secretarial@asianstargroup.com for receiving the
Documents in electronic mode.
UNAUDITED SEGMENT WISE REVENUE, RESULTS AND
CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH JUNE, 2014
(Rs. In Millions)
|
Particulars |
Quarter
Ended 30.06.2014 (unaudited) |
|
|
|
|
1.
Segment Revenue |
|
|
Diamonds |
5289.450 |
|
Jewellery |
954.581 |
|
Others |
16.169 |
|
Total |
6260.200 |
|
Less : Inter Segment Revenue |
409.929 |
|
Net
Sales |
5850.271 |
|
|
|
|
2.
Segment Result |
|
|
Diamonds |
171.111 |
|
Jewellery |
28.775 |
|
Others |
2.248 |
|
Total |
202134 |
|
Less
: Finance Costs |
49.919 |
|
|
|
|
Profit
before Tax |
152.215 |
|
3.
Capital Employed (Segment
Assets – Segment Liabilities) |
|
|
Diamonds |
3581.081 |
|
Jewellery |
630.391 |
|
Others |
535.491 |
|
Total
Capital Employed |
4746.963 |
FIXED ASSETS
Tangible Assets
- Land
- Office Premises
- Factory Premises
- Plant & Machinery
- Vehicles
- Furniture & Fixtures
- Office Equipments
- Computer
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.61.68 |
|
|
1 |
Rs.96.93 |
|
Euro |
1 |
Rs.77.36 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
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 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
54 |
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.