MIRA INFORM REPORT

 

 

Report No. :

307017

Report Date :

06.02.2015

 

IDENTIFICATION DETAILS

 

Name :

S.K. EXPORTS

 

 

Registered Office :

104, Auto Commerce Candy Breej, Opposite Jyoti Studio Compound, Nana Chowk, Operahouse, Mumbai – 400007, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Year of establishment :

December 2009

 

 

Capital Investment / Paid-up Capital :

Rs. 1.610 Millions

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Processor, trader, Exporter and Importer of Diamond (Processing through job work)

 

 

No. of Employees :

5 (Approximately)

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established proprietorship concern having moderate track.

 

Management has witnessed a drastic dip in its sales revenue and has reported a very low profitability and margins during FY 14.

 

The ratings also take in to consideration, the slow debtor realisation as well as huge accrued payables which may create some liquidity issues, during coming years.

 

However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct.

 

In view of significant deterioration in its business profile, the concern can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

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 PARTED BY

 

Name :

Mr. Sampat

Designation :

Proprietor

Contact No.:

91-9930832244

 

 

LOCATIONS

 

Registered Office :

104, Auto Commerce Candy Breej, Opposite Jyoti Studio Compound, Nana Chowk, Operahouse, Mumbai – 400007, Maharashtra, India

Tel. No.:

91-22-23870444

Mobile No.:

91-9930832244 (Mr. Sampat)

Fax No.:

91-22-23639118

E-Mail :

skexports10@gmail.com

 

 

Branch Office :

6/2132. 3rd Floor, Office No. C Limbu Shri Front Side, Cabin No C Mahidharpura, Surat – 395007, Gujarat, India

 

 

SOLE PROPRIETOR

 

Name :

Mr. Sampat Barola

Designation :

Propritor

 

BUSINESS DETAILS

 

Line of Business :

Processor, trader, Exporter and Importer of Diamond (Processing through job work)

 

 

Products :

Not Divulged

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

Finished Goods

Countries :

Belgium

 

 

Imports :

 

Products :

Diamond

Countries :

Belgium

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Gitanjali Gems Private Limited

Name of the Person :

Mr. Kiranbhai (Finance Department)

Contact No.:

91-22-40362241

Since How Long Known :

4 Years

Experience :

Good

Maximum Limit Dealt :

Rs. 100.000 Millions (Yearly Approximately)

Remark :

They gave us a positive response about the subject company. They are satisfied with their payment behavior

 

 

Customers :

Reference :

Sujal Diamond

Name of the Person :

Mr. Sujalbhai (Proprietor)

Contact No.:

91-22-33944455

Since How Long Known :

5 Years

Experience :

Excellent

Maximum Limit Dealt :

Not Divulged

Remark :

They gave us a positive response about the subject company. They are satisfied with their product quality and delivery behavior.

 

 

No. of Employees :

5 (Approximately)

 

 

Bankers :

Banker Name

Indusind Bank

Branch Address

Opera House, Mumbai, Maharashtra, India

Person Name (With Designation)

Mr. Dilip (RM)

Contact Number

91-9833565294

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

Banker Name

Ing Vysya Bank

Branch Address

Opera House, Mumbai, Maharashtra, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

 

Auditors :

 

Name :

Vva and Company

Chartered Accountants

Address :

Bmpire Street, Ring Road, Surat, Gujarat, India

 

 

Memberships :

Not Divulged

 

 

Collaborators :

Not Divulged

 

 

Sister Concern :

Nanesh Export Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Capital Investment :

 

Owned :

Rs. 1.610 Millions

Borrowed :

--

Total :

Rs. 1.610 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2014

31.03.2013

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

1.610

1.338

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

1.610

1.338

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

0.000

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

1.610

1.338

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.000

0.000

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.020

0.020

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

61.985

0.000

 

Sundry Debtors
 

26.256

124.474

 

Cash & Bank Balances
 

5.794

0.567

 

Other Current Assets
 

0.136

0.002

 

Loans & Advances
 

50.649

44.075

Total Current Assets
 

144.820

169.118

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

 

 

Other Current Liabilities
 

143.230

167.800

 

Provisions
 

 

 

Total Current Liabilities
 

143.230

167.800

Net Current Assets
 

1.590

1.318

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

1.610

1.338

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

 

 469.260

2112.341

 

Other Income

 

 1.457

2.205 

 

TOTAL (A)

 

470.717

2114.546

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Goods Sold

 

 467.816

2111.265

 

Assortment Charges

 

0.420 

0.939

 

Audit Fees

 

0.007

0.007

 

Brokerage and Commission Expenses 

 

0.135

0.416

 

Conveyance Expenses

 

0.039

0.051

 

Exchange Difference

 

1.048

0.625

 

Foreign Tours and Travels

 

0.306

0.110

 

Import expenses

 

0.093

0.013

 

Legal and Professional Fees

 

 0.006

 0.006

 

Printing and Stationery Expenses

 

 0.044

 0.054

 

Office Expenses

 

0.106

0.140

 

Other expenses

 

0.354

0.647

 

TOTAL (B)

 

470.374

2114.273

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST

 

0.343

0.273

 

 

 

 

 

Less/ Add

FINANCIAL EXPENSES

 

 0.071

 0.003

 

 

 

 

 

 

NET PROFIT

 

0.272

0.270

 

The above information has been parted by Mr. Sampat (Proprietor)

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)
 
0.06

0.01

 

 
 
 

 

Operating Profit Margin

(PBDIT/Sales)

(%)
 
0.07

0.01

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 
0.19

0.16

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
 
0.17

0.20

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 
0.00

0.00

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
 
1.01

1.01

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

Sales

2112.341

469.260

 

(77.785)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

Sales

2112.341

469.260

Profit

0.270

0.272

 

0.01%

0.06%

 

 

 

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

No

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last two years

Yes

12]

Profitability for last two 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

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          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 –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records 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 records 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. 61.87

UK Pound

1

Rs. 94.07

Euro

1

Rs. 70.19

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TRU

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

0

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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

 

--

 

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

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