MIRA INFORM REPORT
|
Report Date : |
13.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
C. MAHENDRA EXPORTS LIMITED |
|
|
|
|
Registered Office
: |
Tower 'C' Off. No. CC-6011, Bharat Diamond Bourse, Bandra Kurla
Complex, Bandra (East) Mumbai-400 051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
04.01.2007 |
|
|
|
|
Com. Reg. No.: |
11-166717 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.725.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27205MH2007PLC166717 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC04494A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAAFC2878E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and trader of Diamonds. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
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 : |
Exists |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are
usually correct. The company can be considered 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.
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
MANAGEMENT NON – COOPERATIVE (91-22-26725555)
LOCATIONS
|
Registered Office : |
Tower 'C' Off. No. CC-6011, Bharat Diamond Bourse, Bandra Kurla
Complex, Bandra (East) Mumbai-400 051, Maharashtra, India |
|
Tel. No.: |
91-22-26725555 |
|
Fax No.: |
Not Available |
|
E-Mail : |
DIRECTORS
As on 16.09.2013
|
Name : |
Mr. Champak Kirtilal Mehta |
|
Designation : |
Managing director |
|
Address : |
41, Suraj Apartemtns, Tardeo Road, Tardeo, Mumbai – 400007,
Maharashtra, India |
|
Date of Birth/Age : |
01.01.1955 |
|
Qualification: |
Under Graduate |
|
Date of Appointment : |
01.01.2011 |
|
DIN No.: |
00050883 |
|
PAN No.: |
AAAPM8919L |
|
|
|
|
Name : |
Mr. Mahendra Chandulal Shah |
|
Designation : |
Whole-time director |
|
Address : |
18-A, Lands End, 29-D, Dongersy Road, Mumbai – 400006, Maharashtra,
India |
|
Date of Birth/Age : |
09.09.1952 |
|
Qualification: |
Under Graduate |
|
Date of Appointment : |
01.01.2011 |
|
DIN No.: |
00039077 |
|
PAN No.: |
AABPS9473L |
|
|
|
|
Name : |
Mr. Sandeep Mahendra Shah |
|
Designation : |
Whole-time director |
|
Address : |
18-A, Lands End, 29-D, Dongersy Road, Mumbai – 400006, Maharashtra,
India |
|
Date of Birth/Age : |
25.11.1979 |
|
Qualification: |
Under Graduate |
|
Date of Appointment : |
01.01.2011 |
|
DIN No.: |
00051682 |
|
|
|
|
Name : |
Mr. Kailashchandra Chowdhary |
|
Designation : |
Director |
|
Address : |
F No. 405, Anand Bhavan, 577, MG Road, Indore – 452001, Madhya
Pradesh, India |
|
Date of Birth/Age : |
08.05.1940 |
|
Qualification: |
6 |
|
Date of Appointment : |
04.02.2008 |
|
DIN No.: |
01687337 |
|
|
|
|
Name : |
Mr. Vittala Sooru Hegde |
|
Designation : |
Director |
|
Address : |
A-39, Munjal Nagar, No. 1, Chembur, Mumbai – 400089, Maharashtra,
India |
|
Date of Birth/Age : |
05.03.1947 |
|
Qualification: |
M . A (Economics), C.A. L.L.B |
|
Date of Appointment : |
09.01.2008 |
|
DIN No.: |
01243655 |
|
|
|
|
Name : |
Mr. Prabodh Nagardas Shah |
|
Designation : |
Director |
|
Address : |
7 Parekh Chambers, 61 R A K Road, Matunga, Mumbai – 40019,
Maharashtra, India |
|
Date of Birth/Age : |
10.01.1937 |
|
Qualification: |
M.Com, L.L.B, Professional Diploma in Banking |
|
Date of Appointment : |
26.09.2012 |
|
DIN No.: |
05306765 |
KEY EXECUTIVES
|
Name : |
Mr. Shrivastava Kuamr Ashish |
|
Designation : |
Secretary |
|
Address : |
D-7, Shakti Apartmetns, Chakaa Raod, Andheri (East), Mumbai – 400069,
Maharashtra, India |
|
Date of Birth/Age : |
06.02.1982 |
|
Date of Appointment : |
31.03.2011 |
|
PAN No.: |
BOOPS6106J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 16.09.2013
SHAREHOLDING DETAIL FILE ATTACHED (EQUITY SHARES)
|
Names of
Shareholders (Preference Shares) |
No of Shares |
|
Shah Mahendra
Chandulal |
2510870 |
|
Mehta Chmpak
Kirtilal |
1364130 |
|
Shah Pravin
Chandulal |
1195650 |
|
Mehta Prakash
Kirtilal |
1204350 |
|
Mehta Pravin
Kirtilal |
1127720 |
|
Shah Kanu
Chandulal |
1434780 |
|
Mehta Suresh
Kirtilal |
893480 |
|
Mehta Paras
Champak |
904890 |
|
Shah Sandeep Mehendra
|
956520 |
|
Shah Samir
Pravin |
657610 |
|
Shah Suken
Praavin |
119570 |
|
Mehta Kevin
Prakash |
130430 |
|
Total |
12500000 |
As on 17.06.2014
|
Name of
Allottees |
No of Shares |
|
Bennett Coleman
and Company Limited |
567780 |
|
Total |
567780 |
Equity Share Break up (Percentage of Total Equity)
As on 16.09.2013
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
12.28 |
|
Bodies corporate |
10.98 |
|
Directors or relatives of Directors |
75.00 |
|
Other top fifty shareholders |
1.18 |
|
Other |
0.56 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and trader of Diamonds. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
|
|
Name : |
R. H. Modiand Company Chartered Accountants |
|
Address : |
Singh House, 2nd Floor, Fountain 23, Ambalal Doshi, Marg Mumbai -400001, Maharashtra, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AADPM9809L |
|
|
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|
Subsidiaries (where control
exist): |
|
|
|
|
|
Enterprises in which
key management personnel have significant Influence: |
|
|
|
|
|
Enterprises in
which relative of key management personnel have significant
influence: |
|
CAPITAL STRUCTURE
As as 6.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62500000 |
Equity Shares |
Rs.10/- each |
Rs. 625.000 Millions |
|
12500000 |
Preference Shares |
Rs.10/- each |
Rs. 125.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60567780 |
Equity Shares |
Rs.10/- each |
Rs. 605.678 Millions |
|
12500000 |
Preference Shares |
Rs.10/- each |
Rs. 125.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 730.678
Millions |
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62500000 |
Equity Shares |
Rs.10/- each |
Rs. 625.000 Millions |
|
12500000 |
Preference Shares |
Rs.10/- each |
Rs. 125.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs. 600.000 Millions |
|
12500000 |
Preference Shares |
Rs.10/- each |
Rs. 125.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 725.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
725.000 |
725.000 |
725.000 |
|
(b) Reserves & Surplus |
5353.027 |
5067.510 |
4745.297 |
|
(c) Money received against
share warrants |
33.350 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
6111.377 |
5792.510 |
5470.297 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11.090 |
11.776 |
81.610 |
|
(b) Deferred tax liabilities
(Net) |
29.238 |
52.017 |
57.427 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
8.605 |
8.479 |
7.539 |
|
Total
Non-current Liabilities (3) |
48.933 |
72.272 |
146.576 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
10648.727 |
9632.818 |
8798.676 |
|
(b) Trade payables |
4422.459 |
4360.707 |
4210.928 |
|
(c) Other current liabilities |
52.806 |
133.945 |
142.565 |
|
(d) Short-term provisions |
73.449 |
82.984 |
5.043 |
|
Total
Current Liabilities (4) |
15197.441 |
14210.454 |
13157.212 |
|
|
|
|
|
|
TOTAL |
21357.751 |
20075.236 |
18774.085 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
936.500 |
1013.068 |
1056.118 |
|
(ii) Intangible Assets |
1.939 |
2.426 |
0.689 |
|
(iii) Capital work-in-progress |
2.092 |
0.000 |
24.586 |
|
(iv) Intangible assets under
development |
0.000 |
0.529 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
1421.911 |
918.703 |
468.430 |
|
(d) Long-term Loan and Advances |
220.644 |
534.902 |
246.108 |
|
(e) Other Non-current assets |
30.910 |
52.522 |
229.902 |
|
Total
Non-Current Assets |
2613.996 |
2522.150 |
2025.833 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
5681.008 |
8252.331 |
5364.844 |
|
(c) Trade receivables |
12690.086 |
8957.396 |
9650.946 |
|
(d) Cash and cash equivalents |
214.698 |
214.322 |
1564.307 |
|
(e) Short-term loans and
advances |
152.836 |
120.335 |
114.472 |
|
(f) Other current assets |
5.127 |
8.702 |
53.683 |
|
Total
Current Assets |
18743.755 |
17553.086 |
16748.252 |
|
|
|
|
|
|
TOTAL |
21357.751 |
20075.236 |
18774.085 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
21114.440 |
19567.987 |
18432.730 |
|
|
Other Income |
47.061 |
526.674 |
177.672 |
|
|
TOTAL
(A) |
21161.501 |
20094.661 |
18610.402 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
10423.135 |
14082.616 |
8991.613 |
|
|
Purchases of Stock-in-Trade |
5207.360 |
6291.396 |
9044.245 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
3130.733 |
(2814.601) |
(1433.313) |
|
|
Employees benefits expense |
114.971 |
138.035 |
150.736 |
|
|
Other expenses |
1043.229 |
842.062 |
511.407 |
|
|
TOTAL
(B) |
19919.428 |
18539.508 |
17264.688 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (C) |
1242.073 |
1555.153 |
1345.714 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
866.141 |
1054.284 |
719.445 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
375.932 |
500.869 |
626.269 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
87.930 |
90.220 |
88.660 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
288.002 |
410.649 |
537.609 |
|
|
|
|
|
|
|
Less |
TAX (I) |
-23.666 |
17.158 |
(34.410) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
311.668 |
393.491 |
572.019 |
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1584.130 |
1263.990 |
691.970 |
|
|
|
|
|
|
|
|
Prior
period income tax adjustment |
0.000 |
0.000 |
(0.030) |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1895.810 |
1657.480 |
1263.950 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
16685.561 |
14909.533 |
14076.749 |
|
|
TOTAL
EARNINGS |
16685.561 |
14909.533 |
14076.749 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Components and Stores parts |
17.813 |
6.871 |
10.071 |
|
|
Capital Goods |
0.000 |
0.692 |
2.666 |
|
|
TOTAL
IMPORTS |
17.813 |
7.563 |
12.737 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
5.05 |
6.41 |
11.69 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.47 |
1.96 |
3.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.36 |
2.10 |
2.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.44 |
2.14 |
2.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.07 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.74 |
1.67 |
1.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23 |
1.24 |
1.27 |
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 |
725.000 |
725.000 |
725.000 |
|
Reserves & Surplus |
4745.297 |
5067.510 |
5353.027 |
|
Money received against share warrants |
0.000 |
0.000 |
33.350 |
|
Net
worth |
5470.297 |
5792.510 |
6111.377 |
|
|
|
|
|
|
long-term borrowings |
81.610 |
11.776 |
11.090 |
|
Short term borrowings |
8798.676 |
9632.818 |
10648.727 |
|
Total
borrowings |
8880.286 |
9644.594 |
10659.817 |
|
Debt/Equity
ratio |
1.623 |
1.665 |
1.744 |
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 |
18432.730 |
19567.987 |
21114.440 |
|
|
|
6.159 |
7.903 |
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 |
18432.730 |
19567.987 |
21114.440 |
|
Profit |
572.019 |
393.491 |
311.668 |
|
|
3.10% |
2.01% |
1.48% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
2.718 |
71.947 |
90.929
|
|
|
|
|
|
|
Total |
2.718 |
71.947 |
90.929
|
|
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 |
Yes |
|
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 |
No |
|
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 |
LITIGATION DETAILS
BENCH:-BOMBAY
|
Presentation Date:- |
07/01/2014 |
||||||||
|
Lodging
No.:- |
ITXAL/68/2014 |
Filing
Date:- |
07/01/2014 |
Reg. No.:- |
ITXA/678/2014 |
Reg.
Date:- |
24/03/2014 |
||
|
|
Petitioner:- |
COMMISSIONER OF INCOME TAX – 16 |
Respondent:- |
M/S. C. MAHENDRA EXPORTS |
|
|
|
Petn.Adv.:- |
A R MALHOTRA (I3164) |
Resp.Adv.:- |
SHRI. S.J MEHTA AND MS. A. VISSANJI (0) |
|
|
District:- |
MUMBAI |
|
Bench:- |
DIVISION |
||||
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
Next
Date:- |
28/10/2014 |
Stage:- |
|
Coram:- |
ACCORDING TO SITTING LIST |
|
ACCORDING TO SITTING LIST |
|
Act :- |
Income Tax Act, 1961 |
Under
Section:- |
260A |
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.
REVIEW OF OPERATIONS:
During the year, the Company’s net sales are earned of Rs. 21114.450 millions net sales as against Rs. 19567.990 millions during the previous financial year, showing growth of 7.90% compared to previous year. The Directors are continuously looking for avenues for future growth of the Company.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
India's gems and jewellery industry is a bright star of the economy, and one of the important foundations of the country's export-led growth. The consumption of gold and jewellery products in India has grown rapidly over the years at the rate of 10-15 per cent per annum. According to a recent study, India and China are now emerging as one of the leaders in the global jewellery industry in terms of consumption, besides production and trade. The countries jointly would account for over 30 per cent of global diamond market in 2015.
India possesses world's most competitive gems and jewellery market due to its low cost of production, highly skilled, low-cost and best artisan force for designing and crafting jewellery, along with strong government support in the form of incentives and establishment of special economic zones (SEZs).
Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 16.26 per cent during the period 2011-12 to 2016-17 on account of increasing government efforts and incentives coupled with private sector initiatives, according to a report of the working group on 'Boosting India's Manufacturing Exports', by Ministry of Commerce and Industry.
OPPORTUNITIES,
THREATS AND OUTLOOK
The Indian diamond industry is the heart of the world diamond industry today. Indian manufactures have helped the diamond world recover from the downturn of 2008 and give diamond it’s true value in its four decades of existence. It is no hidden fact that diamonds manufactured in India constitute 65% by value, 85% by volume and 92% by pieces of the world diamond production, making the country not only the leading global manufacturer but also one of the highest consumers of rough diamonds in the world today. They are recently working with the government to start a unique concept called “Notified Free Trade Zone” for rough diamonds, which will give the opportunity to the diamond mining companies trade roughs in India at a tax friendly environment, where the concept is that if you bring diamonds in that zone, you only pay one-time tax for the sales you do. India is not only a leading manufacturing and export centre for gem and jewellery products. The love that they as Indians have for gold and jewellery is known to all. India's consumption of Gem and Jewellery has grown rapidly over the years at the rate of 10-15% per annum and today the domestic Indian market is estimated to be over US$ 30 billion. While the country is the largest consumer of Gold globally, the demand for Diamonds and Diamond jewellery has been growing at a rate of over 40% per annum. In fact, in a recent study, it has been seen that India and China are now emerging as one of the leaders in the global jewellery industry in terms of consumption, besides production and trade. China is attempting to corner supply of rough diamonds by pushing for direct deals with African countries and thus posing a threat to the nation's gems and jewellery trade, a study released by industry body Assocham. If trends are anything to go by, Surat, which accounts for about 95 per cent of the world's diamond trade, may loose its crown of 'The Diamond City' to China, according to the study. Expressing concern over Surat-based diamond polishing units considering to relocating, Assocham said it could affect employment scenario there. A FICCI-Technopak report estimates that gems and jewellery exports will grow to USD 58 billion by 2015. It also estimates that the domestic market for gems and jewellery will touch USD 35 billion to USD 40 billion by 2015. India has several strengths that have made it a significant force in the global gems and jewellery business. These are:
· Highly skilled, yet low-cost labour.
· Established manufacturing excellence in jewellery and diamond polishing.
· India is the most technologically advanced diamond cutting centre in the world.
· Opportunity to address one of the world’s largest and fastest-growing gems and jewellery markets.
· Opportunity to leverage India’s strengths to address the global market.
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
Deposits from others |
0.164 |
0.000 |
|
Loans and advances from others |
429.858 |
483.544 |
|
Total |
430.022 |
483.544 |
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10488930 |
20/01/2014 |
50,000,000.00 |
CORPORATION BANK |
CORPORATION BANK,
BHARAT DIAMOND BOURSE, BKC, BAN |
C02947372 |
|
2 |
10467456 |
16/11/2013 |
11,080,500,000.00 |
BANK OF BARODA ACTING ON BEHALF OF BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH - 1 FLOOR, 3, |
B92483999 |
|
3 |
10467322 |
04/12/2013 * |
11,080,500,000.00 |
BANK OF BARODA ACTING ON BEHALF OF BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH - 1 FLOOR, 3, |
B93959583 |
|
4 |
10452472 |
14/08/2013 |
58,000,000.00 |
CANARA BANK |
OVERSEAS MAIN
BRANCH, DALAMAL TOWER, 211, NARIMAN POINT, MUMBAI - 400021, MUMBAI,
MAHARASHTRA - 40 |
B86433711 |
|
5 |
10447375 |
13/08/2013 |
50,000,000.00 |
STATE BANK OF BIKANER AND JAIPUR |
235/237, PENINSULA
HOUSE, D.N.ROAD, FORT, MUMBAI- |
B84210681 |
|
6 |
10386701 |
20/10/2012 |
250,000,000.00 |
BANK OF INDIA |
BHARAT DIAMOND
BOURSE BRANCH, D-2/D-4, GROUND, GR. FLOOR, WEST CORE 'G' BLOCK, BKC, BANDRA
(EAST), |
B62144050 |
|
7 |
10332552 |
12/12/2011 |
344,000,000.00 |
BANK OF INDIA |
OPERA HOUSE MID
CORPORATE BRANCH,, HERMES HOUSE, |
B30817308 |
|
8 |
10241748 |
05/07/2012 * |
10,220,500,000.00 |
BANK OF BARODA ACTING ON BEHALF OF BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH - 1 FLOOR, 3, |
B55785521 |
|
9 |
10241742 |
28/01/2013 * |
11,030,500,000.00 |
BANK OF BARODA ACTING ON BEHALF OF BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH - 1 FLOOR,, 3 |
B67812206 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
|
|
|
Guarantee given to banks in respect of credit facilities sanctioned to a subsidiary company (USD 10,000,000; as at 31/03/2012 USD 10,000,000) |
543.845 |
|
Bond executed in favour of The President of India towards manufacture of goods for exports |
441.740 |
|
Bank guarantee in favour of The President of India for de-bonding of EOU unit |
1.800 |
|
Bond executed in favour of The President of India towards provisional release of seized goods |
30.622 |
|
Disputed penalty under Customs Act |
11.000 |
|
Disputed service tax liabilities |
15.495 |
|
Disputed income tax liability |
0.668 |
FIXED ASSETS
Tangible assets
- Land
- Buildings
- Plant and equipment
- Furniture and fixtures
- Vehicles
- Office equipment
- Computer equipments
Intangible assets
- Computer software
CMT REPORT (Corruption, Money Laundering and 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.61.16 |
|
|
1 |
Rs.98.62 |
|
Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
50 |
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 and 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.