MIRA
INFORM REPORT
|
Report Date : |
10.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
GOLDIAM INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai –
400096, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
10.10.1986 |
|
|
|
|
Com. Reg. No.: |
11-041203 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 249.460 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36912MH1986PLC041203 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08508D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG2271J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Diamond Studded Gold, Platinum and Silver
Jewellery and also Investment Activity. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. The rating reflects company’s healthy financial risk profile marked by
decent liquidity position and fair profitability levels of the company. Trade relations are fair. Business is active. Payment terms are
reported to be 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes that many things such as apartment
sales, luxury products, etc. were largely bought with dirty money. And it is
now beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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 (Tel. No.: 91-22-28291893)
LOCATIONS
|
Registered Office/ Factory 1: |
Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai –
400096, Maharashtra, India |
|
Tel. No.: |
91-22-28291893 |
|
Fax No.: |
91-22-28292885 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2: |
Santacruz Electric Export Processing Zone, Seepz, Andheri (East),
Mumbai – 400096, Maharashtra, India |
|
|
|
|
Diamond Procurement Office : |
The Capital, Office No.1107, A Wing, 11th Floor, Plot No.C-70, G-Block, Bandra (East), Mumbai – 400051, Maharashtra, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Manhar R. Bhansali |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
20.09.1941 |
|
Qualification : |
Under Graduate |
|
Expertise in
specific functional area : |
Entered in the diamond business more than 4 decades ago. He is having extensive knowledge and experience in Diamond Business and engage in Manufacturing, Trading and Jewellery exports. M. R. Bhansali group is well known group in the Diamond market. He is driving force behind the success of the Company and his contribution to the enhancement of the Indian Gems and Jewellery Industry is unparalleled. Mr. Manhar Bhansali also honored with the prestigious "Pioneer of the year" Award instituted by IDCA (Indian Diamond and Colorstone Association), New York. |
|
Date of Appointment
: |
10.10.1986 |
|
DIN No. : |
00058699 |
|
|
|
|
Name : |
Mr. Rashesh M. Bhansali |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
Bachelors degree in Commerce |
|
Expertise in
specific functional area : |
Wide Knowledge and experience in the field of diamonds and Jewellery |
|
Date of Appointment
: |
10.10.1986 |
|
|
|
|
Name : |
Mr. Ajay M. Khatlawalal |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
02.05.1954 |
|
Qualification : |
B.SC., LLB, Solicitor |
|
Expertise in
specific functional area : |
Wide Knowledge and experience in legal and Company matters. |
|
Date of Appointment
: |
15.10.1994 |
|
DIN No. : |
00124042 |
|
|
|
|
Name : |
Mr. Rajesh G. Kapadia |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
02.11.1956 |
|
Qualification : |
B.com (Hons.) F.C.A. (Fellow Member of Institute of Chartered Accountants of India) |
|
Expertise in
specific functional area : |
Extensive knowledge and experience in accounts, taxation and company matters. |
|
Date of Appointment
: |
15.10.1994 |
|
DIN No. : |
00003272 |
|
|
|
|
Name : |
Dr. Raghavachari Srinivasan |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
30.05.1931 |
|
Qualification : |
Ph.D., CAIIB, FIB, Doctorate in Banking and Finance |
|
Date of Appointment
: |
02.05.2002 |
|
Expertise in
specific functional area : |
Wide experience in Banking and Finance |
|
DIN No. : |
00003968 |
KEY EXECUTIVES
|
Name : |
Ms. Anita Kate |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
14198100 |
56.92 |
|
|
14198100 |
56.92 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
14198100 |
56.92 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8000 |
0.03 |
|
|
400 |
0.00 |
|
|
8400 |
0.03 |
|
|
|
|
|
|
813416 |
3.26 |
|
|
|
|
|
|
4061327 |
16.28 |
|
|
2372240 |
9.51 |
|
|
3492513 |
14.00 |
|
|
19936 |
0.08 |
|
|
2700000 |
10.82 |
|
|
22184 |
0.09 |
|
|
1600 |
0.01 |
|
|
368877 |
1.48 |
|
|
15000 |
0.06 |
|
|
363916 |
1.46 |
|
|
1000 |
0.00 |
|
|
10739496 |
43.05 |
|
Total Public shareholding (B) |
10747896 |
43.08 |
|
Total (A)+(B) |
24945996 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
24945996 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Diamond Studded Gold, Platinum and Silver
Jewellery and also Investment Activity. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
· The Hongkong and Shanghai Banking Corporation Limited Yes Bank Limited Standard Chartered Bank Punjab National Bank Citibank N.A. |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Pulindra Patel and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
· Diagold Designs Limited Goldiam Jewellery Limited Goldiam USA, Inc. Goldiam Jewels Limited (upto 28th September, 2012) |
|
|
|
|
Associate : |
Goldiam HK Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31000000 |
Equity Shares |
Rs.10/- each |
Rs.310.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24945996 |
Equity Shares |
Rs.10/- each |
Rs.249.460 Millions |
|
|
|
|
|
NOTE
Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up, as applicable.
|
Particulars |
Opening Balance |
Closing Balance |
|
Equity shares with
voting rights : |
|
|
|
At the beginning of
the year |
|
|
|
– Number of shares |
24945996 |
24945996 |
|
– Amount (Rs.) in Millions |
249.460 |
249.460 |
|
|
|
|
|
Add : Addition
during the year : |
|
|
|
– Number of shares |
-- |
-- |
|
– Amount (Rs.) in Millions |
-- |
-- |
|
|
|
|
|
Less : Deduction
During the year : |
|
|
|
– Number of shares |
-- |
-- |
|
– Amount (Rs.) in Millions |
-- |
-- |
|
|
|
|
|
Year ended 31
March, 2014 : |
|
|
|
– Number of shares |
24945996 |
24945996 |
|
– Amount (Rs.) in Millions |
249.460 |
249.460 |
|
|
|
|
|
Year ended 31
March, 2013 |
|
|
|
– Number of shares |
24945996 |
24945996 |
|
– Amount (Rs.) in Millions |
249.460 |
249.460 |
Details of shares
held by each shareholder holding more than 5% shares:
|
Class of shares /
Name of shareholder |
As at 31 March, 2014 |
|
|
Number of shares held |
% holding in that class of shares |
|
|
Equity shares with voting
rights |
|
|
|
Manhar Bhansali |
7103428 |
28.48% |
|
Rashesh Bhansali |
5900000 |
23.65% |
|
Diajewel N.V. |
2700000 |
10.82% |
|
Equity shares with differential voting rights |
-- |
-- |
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 |
249.460 |
249.460 |
249.460 |
|
(b) Reserves & Surplus |
1481.441 |
1416.501 |
1375.172 |
|
(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) |
1730.901 |
1665.961 |
1624.632 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
9.655 |
9.517 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
9.655 |
9.517 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
289.285 |
529.487 |
207.490 |
|
(b) Trade payables |
325.546 |
237.856 |
229.925 |
|
(c) Other current
liabilities |
28.783 |
26.787 |
6.255 |
|
(d) Short-term provisions |
45.587 |
26.548 |
15.012 |
|
Total Current Liabilities (4) |
689.201 |
820.678 |
458.682 |
|
|
|
|
|
|
TOTAL |
2429.757 |
2496.156 |
2083.314 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
193.567 |
195.499 |
94.278 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
3.301 |
1.486 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
250.298 |
275.310 |
319.498 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
7.563 |
|
(d) Long-term Loan and Advances |
2.281 |
2.281 |
2.035 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
449.447 |
474.576 |
423.374 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
733.482 |
803.251 |
624.501 |
|
(b) Inventories |
357.822 |
336.498 |
278.782 |
|
(c) Trade receivables |
773.598 |
697.601 |
556.733 |
|
(d) Cash and cash
equivalents |
23.275 |
127.012 |
143.282 |
|
(e) Short-term loans and
advances |
92.133 |
57.218 |
56.642 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
1980.310 |
2021.580 |
1659.940 |
|
|
|
|
|
|
TOTAL |
2429.757 |
2496.156 |
2083.314 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1252.705 |
974.577 |
915.983 |
|
|
|
Other Income |
63.807 |
45.135 |
66.85 |
|
|
|
TOTAL (A) |
1316.512 |
1019.712 |
982.833 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
948.118 |
719.180 |
678.575 |
|
|
|
Purchases of Stock-in-Trade |
69.012 |
58.937 |
98.403 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
19.013 |
0.571 |
-1.702 |
|
|
|
Employees benefits expense |
19.324 |
15.648 |
14.375 |
|
|
|
Other expenses |
103.896 |
94.762 |
65.128 |
|
|
|
Exceptioanl Items |
0.000 |
-18.033 |
0.000 |
|
|
|
TOTAL (B) |
1159.363 |
871.065 |
854.779 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
157.149 |
148.647 |
128.054 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
8.205 |
7.097 |
6.367 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
148.944 |
141.550 |
121.687 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
17.114 |
13.798 |
13.468 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
131.830 |
127.752 |
108.219 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
31.867 |
42.837 |
23.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
99.963 |
84.915 |
85.219 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
844.625 |
808.296 |
772.066 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
2.500 |
5.000 |
5.500 |
|
|
|
Interim Dividend |
0.000 |
24.946 |
27.441 |
|
|
|
Proposed Dividend |
29.935 |
12.473 |
9.978 |
|
|
|
Tax on Interim Dividend |
0.000 |
4.047 |
4.452 |
|
|
|
Tax on Proposed Dividend |
5.087 |
2.120 |
1.619 |
|
|
BALANCE CARRIED
TO THE B/S |
907.065 |
844.625 |
808.296 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1176.580 |
922.777 |
857.202 |
|
|
TOTAL EARNINGS |
1176.580 |
922.777 |
857.202 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
352.635 |
364.249 |
334.590 |
|
|
|
Components and Stores parts |
1.464 |
1.073 |
1.522 |
|
|
|
Capital Goods |
0.056 |
1.742 |
2.879 |
|
|
TOTAL IMPORTS |
354.155 |
367.064 |
338.991 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
4.01 |
3.40 |
3.42 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2014 |
|
|
|
|
1st
Quarter |
|
Net Sales |
|
|
287.100 |
|
Total Expenditure |
|
|
266.200 |
|
PBIDT (Excl OI) |
|
|
20.900 |
|
Other Income |
|
|
5.200 |
|
Operating Profit |
|
|
26.100 |
|
Interest |
|
|
1.300 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
24.700 |
|
Depreciation |
|
|
8.300 |
|
Profit Before Tax |
|
|
16.400 |
|
Tax |
|
|
2.600 |
|
Provisions and
contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
13.800 |
|
Extraordinary
Items |
|
|
0.000 |
|
Prior Period
Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
13.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
7.59 |
8.33 |
8.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.52 |
13.11 |
11.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.06 |
5.76 |
6.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.08 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.17 |
0.32 |
0.13 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.87 |
2.46 |
3.62 |
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 |
249.460 |
249.460 |
249.460 |
|
Reserves & Surplus |
1375.172 |
1416.501 |
1481.441 |
|
Net
worth |
1624.632 |
1665.961 |
1730.901 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
207.490 |
529.487 |
289.285 |
|
Total
borrowings |
207.490 |
529.487 |
289.285 |
|
Debt/Equity
ratio |
0.128 |
0.318 |
0.167 |
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 |
915.983 |
974.577 |
1252.705 |
|
|
|
6.397 |
28.538 |
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 |
915.983 |
974.577 |
1252.705 |
|
Profit |
85.219 |
84.915 |
99.963 |
|
|
9.30% |
8.71% |
7.98% |
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 |
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.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10213510 |
30/06/2011 * |
200,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE,
DISCOVERY OF INDIA, DR. |
B16756264 |
* Date of charge modification
NATURE OF
OPERATIONS
“Parent Company” or the “The Company”, a public limited company, together with its subsidiaries joint venture and associates (hereinafter collectively referred to as the “Group”) operates as a manufacturer of diamond studded Gold, Platinum and Silver Jewellery. The business includes entire chain of marketing, production and distribution of Jewellery all over the world.
The Parent Company’s shares are listed for trading on the Bombay Stock Exchange Limited and National Stock
Exchange of India Limited.
OPERATIONS:
The operations of the Company have shown improvement as compared to the previous year. The Company has achieved a turnover of Rs.1252.705 Millions during the year under report as compared to Rs.974.577 Millions during the previous year reflecting a growth of 28.54% over the previous year. The net profit of the company increased by 17.72% from Rs.84.915 to Rs.99.963 Millions in the current year.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The gems and jewellery industry occupies an important position in Indian economy. It is one of the oldest industries in the world and has gone through a transition in the last decade and also a leading foreign exchange earner and also one of the fastest growing industries in the country. The major two segments of the sector in India are gold Jewellery and diamond and this sector is further engaged in sourcing, manufacturing, and processing, which involves cutting, polishing and selling precious gemstone and metals such as diamonds, other precious stones, gold, silver and platinum. Geographically, the US continues to be the largest consumer for gems and jewellery, followed by China, India, the Middle East and Japan. In Western Europe, the UK and Italy are the largest consumers. Italy is also one of the world´s largest jewellery fabrication centre. The emerging markets like China, India which have been traditional hubs of jewellery consumption, are expected to develop as the largest consumption markets for both traditional as well as branded Jewellery.
According to the Gem and Jewellery Export Promotion Council (GJEPC) the Indian Gems and Jewellery section for the F.Y 2013-2014 has contributed US$ 34,746.90 million to India's foreign exchange earnings, with a decline of 11 percent as compared to the last year figures. The financial year 2013- 14 saw an increase of 12.65 percent in export of cut and polished diamonds with figures of US$ 19,635 million. The industry also saw an increase of 11.98 percent in imports of rough diamonds with figures of US$ 1,6716 million indicating an increase in cutting, polishing and other manufacturing activities in India. The export of gold jewellery and Gold medallions together for the period April 2013-14 was at US$ 11,045.92 million which shows a decline of 39.50 percent. This was mainly due to the non-availability of the gold limiting the extent of trade for many of the Indian players. The average price for exported gold was lower than previous year adding to the woes of the industry that took a hit and closed at a negative of 11 percent. The coloured gemstones export also dropped by 20.10 percent in this year with figures of US$ 519 million. The Silver jewellery exports had a significant increase by 58.57 percent with figures of US$ 1460 million. Key exporting destinations for Gems and Jewellery in 2013-14 were UAE with 35% of exports valued at US$ 12,195.34 followed by Hong Kong that stood at 28% with value of US$ 9,790.45 and USA at 14% with export value of US$ 4,948.92.
SEGMENT-WISE
PERFORMANCE:
The Company has two segments viz. jewellery manufacturing
and investment activity. The Company has achieved a turnover of Rs. 1274.317
Millions in the jewellery segment and of Rs. 41.369 Millions in investment
activities.
OUTLOOK:
The outlook for the Gems and Jewellery Industry looks positive. As the Company is always strive for increasing its sales and profit, in coming F.Y 2014-2015 also it will strive for increasing its export by 10 To 20%.
FINANCIAL
PERFORMANCE:
The resurgence of the global economies and the persistent efforts of the Company to sustain its trade relations besides expanding its base to other markets have helped the Company to show a considerable improvement in its performance during the year as compared to the previous year. The Company has achieved a turnover of Rs.1252.705 Millions during the year as compared to Rs.974.577 Millions during the previous year reflecting a growth of 28.54% over the previous year. The profit of the Company has increased from Rs.84.915 Millions to Rs.99.963 Millions.
The consolidated turnover of the Company, its Subsidiaries and Joint Ventures has increased from Rs.2656.665 Millions in the previous year to Rs.3138.396 Millions during the year recording a growth of 18.13%. The consolidated net profit after tax and minority interest and profit and loss on disposal of subsidiary has decreased from Rs.186.596 Millions in the previous year to Rs.170.704 Millions in the year registering decline growth of 8.52%.
CONTINGENT
LIABILITIES (AS ON 31.03.2014):
a) The Company has outstanding performance guarantee of `1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year `1591.50lakhs).
b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs. 13.697 Millions (Previous year Rs. 13.697 Millions) on account of property tax.
c) The Company has executed Bank Guarantee of Rs. 325.000 Millions (Previous year Rs. 325.000 Millions) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.
STATEMENT OF STANDALONE
UNAUDITED RESULTS FOR THE QUARTER AND FOR THE PERIOD ENDED 30.06.2014
(Rs. in Millions)
|
Sr. No. |
Particular |
Quarter
Ended on |
|
30.06.2014 (Unaudited) |
||
|
1. |
Income from
Operations |
|
|
|
Net Sales / Income from operations (Net of Excise Duty) |
287.087 |
|
|
Other Operating Income |
0.000 |
|
|
Total Income
from operations (net) |
287.087 |
|
|
|
|
|
2. |
Expenses |
|
|
|
a)
Cost of Material Consumed |
217.268 |
|
|
b)
Purchase in Stock In Trade |
19.835 |
|
|
c)
Change in Inventories of Finished
Goods, Work-In-Progress and Stock In Trade |
(3.373) |
|
|
d)
Employee Benefits Expenses |
4.608 |
|
|
e)
Depreciation and Amortisation Expense |
8.325 |
|
|
f)
Other Expenses |
27.876 |
|
|
Total |
274.540 |
|
3. |
Profit/(Loss)
From Operations before Other Income, Finance Costs and Exceptional Items
(1-2) |
12.546 |
|
4. |
Other Income |
5.171 |
|
5. |
Profit/(Loss)
from Ordinary Activities before Finance Costs and Exceptional Item (3+/-4) |
17.717 |
|
6. |
Finance Costs |
1.330 |
|
7. |
Profit/(Loss)
from Ordinary Activities after Finance Costs but before Exceptional Items
(5+/-6) |
16.387 |
|
8. |
Exceptional Items |
|
|
|
Profit on sale of Assets |
-- |
|
|
Loss on sale of Investments |
-- |
|
9. |
Profit/(Loss)
fit from Ordinary Activities before Tax (7+/-8) |
16.387 |
|
10. |
Tax Expense |
2.629 |
|
11. |
Net
Profit/(Loss) from Ordinary Activities after Tax (9+/-10) |
13.758 |
|
12. |
Extraordinary Item (net of expense Rs. Nil Million) |
-- |
|
13. |
Net
Profit/(Loss) for the period (11+/-12) |
13.758 |
|
14. |
Share of Profit / (loss) of Associates |
-- |
|
15. |
Disposal in the stake of subsidiary |
-- |
|
16. |
Minority interest |
-- |
|
17 |
Net Profit/(loss)
after taxes, minority interest and share of profit / (loss) of associates
(13+/-14+/-15) |
13.758 |
|
18. |
Paid-up Equity Share Capital (Face Value of the Share
shall be indicated) |
249.460 |
|
19. |
Reserves Excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Years |
-- |
|
20.
i |
Earnings
per share (Before Extraordinary Items) (of Rs. Nil each) (Not Annualised) : |
|
|
|
a) Basic |
0.55 |
|
|
b) Diluted |
0.55 |
|
|
|
|
|
20.
ii |
Earnings
per share (After Extraordinary Items) (of Rs. Nil each) (Not Annualised) : |
|
|
|
a) Basic |
0.55 |
|
|
b) Diluted |
0.55 |
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
-Number of Shares |
10847896 |
|
|
- Percentage of Shareholding |
43.49% |
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of Shares |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
|
|
b)
Non Encumbered |
|
|
|
- Number of Shares |
14098100 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
56.51% |
|
INVESTOR
COMPLAINTS (Nos.) |
Quarter ended on 30.06.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed of during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTE
1. The above Unaudited results for the quarter ended June 30, 2014 have been subjected to "Limited Review" by the Statutory Auditors of the Company and have been reviewed by the Audit Committee and were taken on record by the Board of Directors of the Company at its meeting held on August 13, 2014.
2. Consolidated financial statements of the Company, its subsidiaries and Joint
ventures have been prepared in accordance with Accounting Standards on
Consolidated Financial Statements (AS 21) and Financial Reporting of Interests
in Joint venture (AS-27) issued by The Institute of Chartered Accountants of
India.
3. Effective from April 1, 2014, the Company has charged depreciation based on
the revised remaining useful life of the assets as per the requirement of
Schedule II of the Companies Act 2013. Due to above, deprecation charge for the
quarter ended June 30, 2014, is higher by Rs. 1.646 Millions, and in the case
of consolidated results Rs. 2.348 Millions. Further, based on transitional
provision provided in Note 7(b) of Schedule II an amount of Rs. 0.675 Million
(net of Deferred Tax) has been adjusted with the retained earnings, and in the
case of consolidated results Rs. 2.718 Millions.
4. Depreciation for the current quarter includes impairment loss of Rs. 2.762
Millions and Rs. 2.781 Millions for the consolidated results.
5. Tax Expenses includes Current Tax and Deferred Tax for the quarter and
period ended on June 30, 2014.
6. The figures of previous periods are regrouped / rearranged wherever
considered necessary to correspond with current period presentation.
SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF
THE LISTING AGREEMENT
(Rs. in Millions)
|
Sr. No. |
Particular |
Quarter
Ended on |
|
30.06.2014 (Unaudited) |
||
|
A. |
Primary Segment |
|
|
1 |
Segment
Revenue |
|
|
|
a)
Jewellery |
287.537 |
|
|
b)
Investment |
4.633 |
|
|
Total
|
292.170 |
|
|
Less:
Inter Segment Revenue |
-- |
|
|
Net
sales/ Income from operation |
292.170 |
|
|
|
|
|
2 |
Segment
Results |
|
|
|
Profit/
(loss) before tax and interest |
|
|
|
a)
Jewellery |
14.903 |
|
|
b)
Investment |
4.102 |
|
|
Total
|
19.005 |
|
|
|
|
|
|
Less: Interest |
1.330 |
|
|
Other un-allocable expenditure (Net) |
1.287 |
|
|
|
|
|
|
Total
Profit Before Tax |
16.388 |
|
|
|
|
|
3 |
Capital
Employed |
|
|
|
a)
Jewellery |
800.169 |
|
|
b)
Investment |
949.543 |
|
|
c)
Unallocated Assets / (Liabilities) |
29.297 |
|
|
Total
|
1779.009 |
|
|
|
|
|
B |
Secondary
Segment |
|
|
1 |
Segment
Revenue |
|
|
|
Within India |
0.990 |
|
|
Exports outside india |
13.913 |
|
|
Total
Revenue |
14.903 |
|
|
|
|
|
2 |
Segment
Assets |
|
|
|
Within India |
6.991 |
|
|
Exports outside india |
1390.674 |
|
|
Total
Assets |
1397.665 |
|
|
|
|
|
3 |
Segment
Liabilities |
|
|
|
Within India |
-- |
|
|
Exports outside india |
597.496 |
|
|
Total
Liabilities |
597.496 |
NOTE:
The company has identified two reportable segments viz, jewellery manufacturing and investment activity. segment have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.
The company has identified geographic segments as its secondary segments. geographic segments of the company are mainly local market in india and exports out of india.
The capital employed in the respective segments is worked out after considering the operating assets and liabilities that are directly attributable to the segment as well as allocated to the segments on a reasonable basis.
FIXED ASSETS
TANGIBLE ASSETS
· Factory Building
Office
Premises
Furniture
and Fixture
Office
Equipment
Plant
and Machinery
Computers
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.43 |
|
|
1 |
Rs.97.25 |
|
Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & 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 |
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 |
|
48 |
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.