MIRA INFORM REPORT

 

 

Report No. :

307534

Report Date :

12.02.2015

 

IDENTIFICATION DETAILS

 

Name :

VARNI STAR

 

 

Registered Office :

1309, Upavan Tower, Upper Govind Nagar, Malad (East), Mumbai – 400097, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Year of Establishment :

01.04.2006

 

 

Capital Investment / Paid-up Capital :

Rs. 20.856 Millions

 

 

IEC No.:

0310017599

 

 

TIN No.:

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAIFV8842M

 

 

Legal Form :

Partnership Concern with an unlimited liability of the partners.

 

 

Line of Business :

Processor of Rough Diamond to Polish Diamond.

 

 

No. of Employees :

2725 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established partnership concern having a satisfactory track record.

 

Overall financial position of the concern seems to be sound.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The concern 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 – 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

 

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 (GENERAL DETAILS)

 

Name :

Mr. Bhavesh

Designation :

Accounts Manager

Contact No.:

91-9833655046

Date :

10.02.2015

 

 

LOCATIONS

 

Registered Office :

1309, Upavan Tower, Upper Govind Nagar, Malad (East), Mumbai – 400097, Maharashtra, India

Tel. No.:

91-22-23697100

Mobile No.:

91-9833655046

Fax No.:

91-22-23697100

E-Mail :

varnistar@gmail.com

Location :

Owned

 

 

Branch :

Plot No. 5 to 12 Nilambaug, Opposite vijay nagar, Bhavnagar, Gujarat, India

Tel. No.:

91-276-3013105

Location :

Owned

 

 

PARTNERS

 

Name :

Mr. Mahesh M. Nayani

Designation :

Partner

 

 

Name :

Mr. Nirav V. Patel

Designation :

Partner

 

 

Name :

Mr. Vallabhabhai D. Patel

Designation :

Partner

 

 

Name :

Mr. Mohanbhai N. Nayani

Designation :

Partner

 

 

KEY EXECUTIVES

 

Name :

Mr. Bhavesh

Designation :

Accounts Manager

 

 

BUSINESS DETAILS

 

Line of Business :

Processor of Rough Diamond to Polish Diamond.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Polish Diamond

Countries :

·         Belgium

·         Hong Kong

 

 

Imports :

 

Products :

Rough Diamond

Countries :

·         Belgium

·         Israel

 

 

Terms :

 

Selling :

Cash and Credit (90 days)

 

 

Purchasing :

Cash and Credit (90 days)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Veediam BVBA – Antwerp

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Moti Kahana – Belgium

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

2725 (Approximately)

 

 

Bankers :

Banker Name 1

Saraswat Co-Operative Bank

Branch Address

Bandra BKC Branch

Person Name (With Designation)

Mr. Chorgee (Manager)

Contact Number

9823038846

Name of Account Holder

Varni Star

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)

He informed we give feedback on mail send us mail on “ga_totade@saraswatbank.com “.

 

 

Banker Name 2

Indus Ind Bank

Branch Address

BKC Bandra East Mumbai, Maharashtra, India

Person Name (With Designation)

Mr. Sanjay Bhai (Manager)

Contact Number

91-9820955284

Name of Account Holder

Varni Star

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

2 and half year

Average Balance Maintained (If Possible)

Rs. 1.000 Million

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Satisfactory

Remarks (If any)

It’s current account, operations are healthy.

 

 

 

 

Auditors :

Not Available

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Partner’s Fund

 

Partner’s Fixed Capital Account :

Rs. 0.050 Million

Partner’s Current Account :

Rs. 20.806 Millions

 

Rs. 20.856 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

 

20.856

14.620

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

20.856

14.620

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

 

20.856

14.620

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

5.298

5.818

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

77.756

35.092

 

Sundry Debtors
 

42.300

7.980

 

Cash & Bank Balances
 

4.993

0.885

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

2.696

0.973

Total Current Assets
 

127.745

44.930

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

111.098

35.544

 

Other Current Liabilities
 

0.000

0.000

 

Provisions
 

1.089

0.584

Total Current Liabilities
 

112.187

36.128

Net Current Assets
 

15.558

8.802

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

20.856

14.620

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

 

31.03.2013

 

SALES

 

 

 

 

 

Income

 

270.345

127.371

 

 

Other Income

 

(0.088)

0.000

 

 

TOTAL                                    

 

270.257

127.371

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of goods sold

 

191.585

103.116

 

 

Octroi

 

0.007

0.000

 

 

Import clearing charges

 

0.179

0.071

 

 

Labor charges

 

33.703

11.871

 

 

Selling, general and administrative expenses

 

7.289

3.324

 

 

Other Provision

 

2.419

3.200

 

 

Loss on account of currency fluctuation of Imports

 

9.637

1.457

 

 

Purchase of cut and Polish Diamond

 

23.332

0.000

 

 

Interest on TDS

 

0.015

0.003

 

 

TOTAL                                    

 

268.166

123.042

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

2.091

4.329

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

0.630

0.684

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX 

 

1.461

3.645

 

 

 

 

 

Less

TAX                                                                 

 

0.506

0.584

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

 

0.955

3.061

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2014

 

31.03.2013

 

 

 

 

 

Net Profit Margin

PAT / Sales

(%)
 

0.35

2.40

 

 
 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)
 

0.77

3.40

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

1.09

7.18

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.07

0.25

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.00

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.14

1.24

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

Share Capital

14.620

20.856

Reserves & Surplus

0.000

0.000

Net worth

14.620

20.856

 

 

 

long-term borrowings

0.000

0.000

Short term borrowings

0.000

0.000

Total borrowings

0.000

0.000

Debt/Equity ratio

0.000

0.000

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

Sales

127.371

270.345

 

 

112.250

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

Sales

127.371

270.345

Profit

3.061

0.955

 

2.40%

0.35%

 

 

 

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

No

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

Yes

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.

-            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 & 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.

 

 

 

 

 

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 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 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.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ART

 

 

                                  


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

-- PROFITABILITY 

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

43

 

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.