MIRA INFORM REPORT
|
Report No. : |
307805 |
|
Report Date : |
17.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
GITANJALI GEMS LIMITED |
|
|
|
|
Registered
Office : |
A-1, 7th Floor, Laxmi Tower, Bandra – Kurla Complex,
Bandra (E) Mumbai – 400051, Maharashtra |
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|
|
|
Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2014 |
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|
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|
Date of
Incorporation : |
21.08.1986 |
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|
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Com. Reg. No.: |
11-040689 |
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Capital Investment
/ Paid-up Capital : |
Rs. 920.655 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L36911MH1986PLC040689 |
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|
|
|
IEC No.: |
0388212861 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
PAN No.: [Permanent Account No.] |
AAACG1642F |
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|
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, Trader, Exporter and Distributors of Diamond and
Jewellery. |
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|
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|
No. of Employees
: |
3000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
Payment Behaviour : |
Usually correct |
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Litigation : |
Exists |
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Comments : |
Subject is an established company having satisfactory track record. The company has incurred a loss from its operations during 2014.
However, General financial position of the company seems to be decent. The rating also takes into consideration the companies experienced
promoters, professional management and its long track record in Gems and
jewellery business However, 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = BBB- |
|
Rating Explanation |
Have moderate degree of safety and carry moderate credit risk |
|
Date |
5 July 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A3 |
|
Rating Explanation |
Have moderate degree of safety and carry higher credit risk |
|
Date |
5 July 2013 |
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. Chandrakant Karkare |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
{telephone / mobile no.} |
|
Date : |
12.02.2015 |
LOCATIONS
|
Registered Office : |
A-1, 7th Floor, Laxmi Tower, Bandra – Kurla Complex,
Bandra (E) Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-40354600 |
|
Fax No.: |
91-22-40354602 |
|
E-Mail : |
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|
Website : |
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|
|
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Factory 1 : |
801/802 Prasad Chambers, Opera House, Mumbai-400004, Maharashtra,
India |
|
Tel. No.: |
91-22-40362222 |
|
Fax No.: |
91-22-23630363 |
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|
|
|
Corporate Office : |
B- 6, 1st Floor,
Laxmi Tower, Bandra Kurla Complex, Bandra (East), Mumbai-400 051,
Maharashtra, India |
|
Tel. No.: |
91-22-40102000 / 01 |
|
Fax No.: |
91-22-40102003 |
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E-Mail : |
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Administrative Office : |
Building No.
2/101, Jogani Complex, Behind Amar Brass, Manipada Road, Kalina, Santacruz
(East), Mumbai-400098, Maharashtra, India |
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|
|
|
Factory 2 : |
Plot no 131/90, Marol Co-operative Industrial Estate, M.V. Road, Opposite Star Audio, Marol Bhawan, Marol, Andheri (E), Mumbai – 400059, Maharashtra, India |
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|
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Factory 3 : |
2. Plot No.61, SEEPZ, Andheri (E), Mumbai, Maharashtra, India |
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Factory 4 : |
Plot no 20, Marol Co-operative Industrial Estate, M.V. Road, opp Star Audio, Marol Bhawan, Marol, Andheri (E), Mumbai – 400059, Maharashtra, India |
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Factory 5 : |
Diamond Part 2, 2nd & 3rd floor, opp. Savani Estate, Varachha Road, Surat – 395006, Gujarat, India |
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Factory 6 : |
Survey NO.1/1, Raviryala Village Road, Maheshwaram Mandal, R.R.
District, Hyderabad – 501510, Andhra Pradesh, India |
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Factory 7 : |
Basement and Ground floor, G-185, EPIP, Sitapura Industrial Area, Jaipur-302022, Rajasthan, India |
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Factory 8 : |
4th Floor, Pacific Luxury, A Building, Xinya no. 123, Yinjian Road, Shataou Street, Dalou tang, Shiqiao Panyu – 511800 , Guanshou, China |
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|
|
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Factory 9 : |
99/29, Moo 5, Tambon Pasak, Amphur Muang, Lamphun 51000, Thailand |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Mehul Choksi |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Nehal Modi |
|
Designation : |
Non -Executive Director |
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|
|
|
Name : |
Mr. Dhanesh Sheth |
|
Designation : |
Non -Executive Director |
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|
|
|
Name : |
Mr. Swaminathan Sundararajan Mittur |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. S. Krishnan |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mrs. Nazura Ajaney |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Pankhuri Warange |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Chandrakant Karkare |
|
Designation : |
Chief Financial Officer |
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|
|
|
Audit
Committee: |
Mr. Swaminathan Sundararajan Mittur (Chairman) Mr. S. Krishnan Mr. Mehul Choksi |
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|
|
|
Stakeholders
Relationship Committee : |
Mr. Swaminathan Sundararajan Mittur (Chairman) Mr. S. Krishnan |
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|
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Nomination and
Remuneration Committee : |
Mr. Swaminathan Sundararajan Mittur (Chairman) Mr. S. Krishnan Mr. Dhanesh Sheth |
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|
|
|
Corporate Social
Responsibility (CSR) Committee : |
Mr. Swaminathan Sundararajan Mittur (Chairman) Mr. S. Krishnan Mr. Dhanesh Sheth |
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|
|
|
Internal Complaints
Committee : |
Ms. Alpa Talsania (Chairman) Ms. Pankhuri Warange Ms. Chetna Jhaveri |
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|
|
|
Management
Committee : |
Mr. Mehul Choksi, Chairman Mr. Dhanesh Sheth |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Category
of Shareholder |
Total No.
of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
As a % of (A+B) |
||
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
30343018 |
30.92 |
|
|
4263488 |
4.35 |
|
|
34606506 |
35.27 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
34606506 |
35.27 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
950 |
0.00 |
|
|
4869896 |
4.96 |
|
|
8900639 |
9.07 |
|
|
13771485 |
14.04 |
|
|
|
|
|
|
24052087 |
24.51 |
|
|
|
|
|
|
19030944 |
19.40 |
|
|
2385495 |
2.43 |
|
|
4273934 |
4.36 |
|
|
176712 |
0.18 |
|
|
584570 |
0.60 |
|
|
1630658 |
1.66 |
|
|
316012 |
0.32 |
|
|
1565982 |
1.60 |
|
|
49742460 |
50.70 |
|
Total Public shareholding (B) |
63513945 |
64.73 |
|
Total (A)+(B) |
98120451 |
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) |
98120451 |
100.00 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of
the Shareholder |
Details of
Shares held |
|
|
No. of
Shares held |
As a % of
grand total (A)+(B)+(C) |
||
|
1 |
Mehul C Choksi |
3,03,43,018 |
30.92 |
|
2 |
Partha Gems LLP |
20,69,452 |
2.11 |
|
3 |
Priyanka Gems Private Limited |
7,97,748 |
0.81 |
|
4 |
Rohan Diamonds Private Limited |
9,45,026 |
0.96 |
|
5 |
Mozarat Trading Private Limited |
4,51,262 |
0.46 |
|
|
Total |
3,46,06,506 |
35.27 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons belonging
to the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares
held |
Shares as % of
Total No. of Shares |
|
|
1 |
The Willington Trust Company National Association |
3182134 |
3.24 |
|
|
2 |
D.B. Corp Limited |
6054960 |
6.17 |
|
|
3 |
Macquaire Finance (India) Private
Limited |
5000000 |
5.10 |
|
|
4 |
Life Insurance Corporation of India |
4499784 |
4.59 |
|
|
5 |
Prime Broking Company (India) Limited |
1702269 |
1.73 |
|
|
6 |
Bennett Coleman and Company Limited |
1435107 |
1.46 |
|
|
7 |
Government Pension Fund Global |
1614951 |
1.65 |
|
|
8 |
Wellington Management Portfolios (Dubin PLC-E) |
1465351 |
1.49 |
|
|
9 |
Elara India Opportunites Fund Limited |
2340000 |
2.38 |
|
|
|
Total |
27294556 |
27.82 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
(together with PAC) belonging to the category “Public” and holding more than 5%
of the total number of shares of the company
|
Sl. No. |
Name(s) of
the shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of
Shares |
Shares as
% of Total No. of Shares |
|
|
1 |
D B Corp Limited |
6054960 |
6.17 |
|
|
2 |
Macquaire Finance (India)
Private Limited |
5000000 |
5.10 |
|
|
|
Total |
11054960 |
11.27 |
Details of Locked-in
Shares
|
Sl. No. |
Name of
the Shareholder |
No. of
Shares |
Locked-in
Shares as % of |
|
1 |
Bennett, Coleman and Company
Ltd |
3,14,466 |
0.32 |
|
2 |
D B Corp Ltd |
60,54,960 |
6.17 |
|
3 |
Ramesh Himatlal Shah |
15,000 |
0.02 |
|
|
Total |
63,84,426 |
6.51 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Trader, Exporter and Distributors of Diamond and
Jewellery. |
|
|
|
|
Products : |
Diamond and Jewellery. |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
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|
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Exports : |
|
|
Products : |
Diamond |
|
Countries : |
|
|
|
|
|
Imports : |
|
|
Products : |
Raw Material |
|
Countries : |
Hong Kong |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit (30, 60 and 90 Days) |
|
|
|
|
Purchasing : |
Cash and Credit (30, 60 and 90 Days) |
PRODUCTION STATUS: Not Available
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
3000 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ford, Rhodes, Parks and Company Chartered Accountants |
|
Address : |
|
|
Tel. No.: |
91-22-67979819 / 67979823 |
|
Fax No.: |
91-22-67979822 |
|
E-Mail : |
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary : |
|
|
|
|
|
Step Down
Subsidiary : |
|
|
|
|
|
Particulars of
Enterprises Under Common Control of The Key Management Personnel where there
are transactions |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
92065491 |
Equity Shares |
Rs.10/- each |
Rs. 920.655 Millions |
|
|
|
|
|
After : 29.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
98120451 |
Equity Shares |
Rs.10/- each |
Rs. 981.206 Millions |
|
|
|
|
|
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 |
920.655 |
920.655 |
911.220 |
|
(b) Reserves &
Surplus |
27217.317 |
27120.701 |
24406.160 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
100.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
28137.972 |
28041.356 |
25417.380 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
6371.787 |
6262.311 |
6299.570 |
|
(b) Deferred tax
liabilities (Net) |
6.366 |
19.304 |
11.820 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
27.587 |
33.035 |
30.650 |
|
Total Non-current
Liabilities (3) |
6405.740 |
6314.650 |
6342.040 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
42151.338 |
23825.461 |
18705.390 |
|
(b) Trade payables |
6637.281 |
26662.187 |
19582.740 |
|
(c) Other current
liabilities |
2586.063 |
3719.481 |
1200.170 |
|
(d) Short-term provisions |
5.620 |
326.675 |
319.960 |
|
Total Current Liabilities
(4) |
51380.302 |
54533.804 |
39808.260 |
|
|
|
|
|
|
TOTAL |
85924.014 |
88889.810 |
71567.680 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
304.482 |
320.485 |
290.830 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.560 |
70.393 |
90.790 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
14147.957 |
16051.694 |
10225.480 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1750.336 |
1598.357 |
2099.720 |
|
(e) Other Non-current
assets |
1127.006 |
1248.265 |
689.170 |
|
Total Non-Current Assets |
17330.341 |
19289.194 |
13395.990 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
10167.471 |
14895.887 |
13554.750 |
|
(c) Trade receivables |
52458.626 |
40644.377 |
30771.430 |
|
(d) Cash and cash
equivalents |
1304.930 |
5507.707 |
3905.690 |
|
(e) Short-term loans and
advances |
4662.646 |
8552.645 |
9939.820 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
68593.673 |
69600.616 |
58171.690 |
|
|
|
|
|
|
TOTAL |
85924.014 |
88889.810 |
71567.680 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
73430.346 |
103806.651 |
77554.710 |
|
|
Other Income |
0.500 |
191.226 |
345.250 |
|
|
TOTAL (A) |
73430.846 |
103997.877 |
77899.960 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
|
|
|
|
Purchases of Raw Material
and Traded Goods |
61100.007 |
95885.404 |
72398.690 |
|
|
Changes in inventories |
4728.416 |
(1341.149) |
(2500.870) |
|
|
Employees benefits
expense |
202.606 |
238.560 |
265.120 |
|
|
Other expenses |
3436.069 |
4131.976 |
3332.930 |
|
|
Exceptional Item |
13.737 |
(0.977) |
(97.230) |
|
|
TOTAL (B) |
69480.835 |
98913.814 |
73398.640 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
3950.011 |
5084.063 |
4501.320 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
4141.856 |
2387.357 |
1879.290 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(191.845) |
2696.706 |
2622.030 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
47.614 |
48.785 |
34.660 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
(239.459) |
2647.921 |
2587.370 |
|
|
|
|
|
|
|
Less |
TAX (H) |
(12.938) |
(3.695) |
3.980 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-H) (I) |
(226.521) |
2651.616 |
2583.390 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD (J) |
11475.205 |
9671.233 |
7920.561 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
0.000 |
270.000 |
265.000 |
|
|
Debenture Redemption
Reserve |
0.000 |
250.000 |
250.000 |
|
|
Proposed Dividend |
(276.197) |
280.604 |
273.369 |
|
|
Tax on Dividend |
(46.940) |
47.040 |
44.349 |
|
|
Total (K) |
(323.137) |
847.644 |
832.718 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S (I+J-K) |
11571.821 |
11475.205 |
9671.233 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
35374.910 |
31526.758 |
3457.856 |
|
|
Interest on FDR |
0.000 |
0.000 |
0.026 |
|
|
TOTAL EARNINGS |
35374.910 |
31526.758 |
3457.882 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Diamond and Jewellery |
16931.951 |
40447.752 |
2519.767 |
|
|
TOTAL IMPORTS |
16931.951 |
40447.752 |
2519.767 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
|
|
|
|
|
Basic |
(2.46) |
28.90 |
29.43 |
|
|
Diluted |
(2.30) |
28.77 |
29.37 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin (PAT/ Sales) |
(%) |
(0.31) |
2.55 |
3.33 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
5.38 |
4.90 |
5.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.33) |
3.64 |
4.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01) |
0.09 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.72 |
1.07 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.34 |
1.28 |
1.46 |
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 |
911.220 |
920.655 |
920.655 |
|
Reserves & Surplus |
24406.160 |
27120.701 |
27217.317 |
|
(c) Money received
against share warrants |
100.000 |
0.000 |
0.000 |
|
Net worth |
25417.380 |
28041.356 |
28137.972 |
|
|
|
|
|
|
long-term borrowings |
6299.570 |
6262.311 |
6371.787 |
|
Short term borrowings |
18705.390 |
23825.461 |
42151.338 |
|
Total borrowings |
25004.960 |
30087.772 |
48523.125 |
|
Debt/Equity ratio |
0.984 |
1.073 |
1.724 |
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 |
77554.710 |
103806.651 |
73430.346 |
|
|
|
33.850 |
(29.262) |
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 |
77554.710 |
103806.651 |
73430.346 |
|
Profit |
2583.390 |
2651.616 |
(226.521) |
|
|
3.33% |
2.55% |
(0.31%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Non Convertible Debentures |
781.250 |
625.000 |
468.750 |
|
Other Loans From Banks - ECB |
316.301 |
151.282 |
0.000 |
|
Total |
1097.551
|
776.282 |
468.750 |
|
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
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 |
Yes |
LITIGATION DETAILS
|
Case Details Bench:-Bombay |
|
Presentation
Date:-26/09/2013 |
|||||||
|
Lodging No.:- |
ITXAL/1609/2013 |
Filing Date:- |
26/09/2013 |
Reg. No.:- |
ITXA/2158/2013 |
Reg. Date:- |
18/11/2013 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX CENTRAL 1 MUMBAI |
Respondent:- |
M/S GITANJALI GEMS LIMITES - |
|
Petn.Adv.:- |
P.C CHHOTARAY (0) |
|
District:- |
MUMBAI |
|
Bench:- |
DIVISION |
||
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
Next Date:- |
10/03/2015 |
Stage:- |
|
Coram:- |
ACCORDING TO SITTING LIST |
|
ACCORDING TO SITTING LIST |
|
Act
:- |
Income Tax Act, 1961 |
COMPANY’S PERFORMANCE
It was one of the toughest years for the Indian economy with the GDP growth falling below 5%. The Company is no exception and faced a challenging time during the year 2013-14. Customer sentiments were affected by the inflation and uncertain economic conditions. During the year, Reserve Bank of India initiated measures to contain the Current Account Deficit by imposing restrictions on gold import for domestic consumption. At the same time customs department increased the import duty on gold to 10%. Further, the Indian Rupee weakened considerably during the year.
During the year, financial performance of the Company stood as follows:
• Sales and Other Income as on March 31, 2014 stood at Rs. 73430.846 Millions as against Rs. 103997.877 Millions
• Net Loss as on March 31, 2014 is Rs. 226.521 Millions as against profit of Rs. 2651.616 Millions of previous year.
It can be seen from the above that in the trying times also, percentage level of gross margins has been maintained. However, finance cost shot up significantly resulting in the loss for the current year.
BUSINESS REVIEW
1. DIAMOND AND
JEWELLERY MANUFACTURING SEGMENT
Gitanjali is a vertically integrated player in the jewellery industry and is engaged in diamond and jewellery manufacturing, jewellery branding and retailing. Its presence across the entire value chain gives it the scale that it enjoys. It is engaged in the entire process from sourcing rough diamonds, cutting and polishing them to manufacturing jewellery. The diamond cutting and polishing process is labour-intensive and requires a special skill set. The Group’s factories are strategically located in surat and Hyderabad where the diamond industry thrives. Rough diamonds which are procured are sorted or graded on the basis of colour, shape, clarity, cut and weight. In order to ensure optimum yield of polished stones from the rough diamonds, the cutting process is carefully planned. The key steps in the process are Marking, Cleaving, Sawing, Cutting and Polishing. The finalstages of the diamond manufacturing process consist of checking for damage, cleaning by boiling in various acids and the final sorting before marketing to the customer.
The branded jewellery that Gitanjali manufactures includes diamond studded and other precious stones studded jewellery. The Group has produced branded jewellery in India for over 20 years. During the year Gitanjali upgraded all its diamond and studded jewellery manufacturing facilities based in Hyderabad, Mumbai, Jaipur, China and has also added the Thailand facility - which is one of the largest of its kind. Gitanjali is looking to further strengthen its manufacturing capabilities to enable it to constantly innovate and adapt to changing consumer trends.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY OVERVIEW
Gems and Jewellery (G&J) is one of the oldest industries in the world that has gone through a transition in the last decade with the rise of emerging markets and recessionary scenario in the traditional developed markets. Among the various types of jewellery viz. gold, silver, platinum, palladium jewellery, diamond studded jewellery, gemstones etc. diamond studded jewellery accounts for the largest share of the global jewellery market, followed by plain gold jewellery. Geographically, USA 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 and Italy is also one of the world´s largest jewellery fabrication centers. 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. The global market for gems and jewellery has major contribution coming from India, Italy, China, Thailand and USA. By CY 2015, India and China are expected to together equal the USA jewellery market and global G&J trade is expected to touch USD 230 bn.
The industry is primarily classified into segments like cut and polished (C&P) diamonds, gemstones, gold and diamond jewellery, pearl and synthetic stones and others which include precious metal jewellery (other than gold), synthetic stones and lastly costume fashion jewellery. Gold and diamond jewellery are the two major segments of the industry globally and India dominates in both of them.
India has many natural advantages to emerge as the Gems and Jewellery hub of the world. India has the largest and the best artisan force for designing and crafting the jewellery in the world. There is considerable scope of value addition in terms of capacity building, quality management and professionalization. India leads global consumption of gold annually, and has emerged as the 6th largest consumer of diamonds in the world. India occupies top position in importing, processing and exporting diamonds, with its cut and polished diamonds, colored gemstones, gold jewellery, pearls, non-gold jewellery and fashion jewellery.
The gems and jewellery sector is one of the most important sectors of the Indian economy and has also been one of the fastest-growing sectors in the past few years. The sector is highly export-oriented, labour-intensive and a major contributor to employment, GDP and foreign exchange earnings.
The industry provides direct employment to roughly 2.5 million people - majority being workers, also known as
‘karigars’ who are mostly self-employed or are working in the Micro and Small Sector thus ensuring inclusive growth. The sector has the potential to generate employment of 0.7–1.5 million over the next five years.Considering its immense potential and contributions, the Indian Government has also declared the sector as a thrust area for export promotion. In 2012–2013, the industry drove jewellery exports to the tune of INR 2270000.000 Millions. The Gems and Jewellery sector has been playing a very important role in the Indian economy and has been contributing to 6% to 7% of the country’s GDP, apart from large scale employment generations and foreign exchange earnings.The industry also drove value addition of more than INR 990000.000 Millions, which is comparable to several large industries. The value created by Gems and Jewellery sector is much higher than many other sectors in India.
- India holds nearly 50% of the international gems and jewellery market.
- Gems and jewellery sector contributes nearly 19% of India’s aggregate exports.
- It accounts for nearly 55% of the world’s net exports of cut and polished diamonds in value terms, 90% in terms of pieces and 80% in terms of carats.
- India now processes 85% of the world’s polished diamonds, far ahead of other competitors.
- Every 11 of 12 diamonds sold around the globe are processed in India regardless of where these are mined.
The Indian jewellery industry has been evolving over the past few years. Traditionally a gold dominated industry, it is now showing a greater acceptance towards diamond and other precious stones jewellery as well. The new age consumers, who are well travelled, prefer frequenting the modern retail formats like malls and departmental stores. A relatively higher affinity towards branded products coupled with higher disposable incomes and a preference for trusted fine quality products are also significant contributors to the growth of the branded jewellery segment.
The branded retail jewellery market is growing at a robust rate and going forward, many domestic and international brands would capture substantial market size given number of factors like increased urbanizations and changing demographics. As a matter of on-going practice, the masses still prefer to purchase jewellery from their tried and trusted jewellers but the constant exercise of ‘branding’ through advertising and other sales promotional activities has ensured steady inflow of new customers in this segment of organised retailing. India’s small and independent jewellers are starting to organize themselves and expand in size to share a common brand identity and marketing strategy.
Gems & Jewellery
in India
- Growth of organised retailing is expected to be fuelled by increasing spend on discretionary segments i.e. clothing, gems &jewellery, etc
- The plain gold jewellery is giving way to diamonds, platinum, silver and other precious/ semi-precious gemstones studded jewellery.
- The luxury jewellery exports from India and demand of luxury jewellery will grow given factors like talented pool of jewellery designers and artisans, low-cost but quality base and understanding the likes and dislikes of end-user market.
- The Indian luxury market is expected to jump from US$3.5 billion in 2010 to approximately US$30 billion by 2015 and a significant majority of about US$9 billion will be jewellery (Source: Solitaire Magazine - GJEPC, May 2011 issue).
- In India major driver for luxury jewellery is wedding related primarily bridal jewellery which forms over 50% of jewellery sales. The other major drivers are festivals and special occasions
- India is carving a niche for itself in the international markets for exclusive high-end jewellery which can appeal to global audiences.
FUTURE OUTLOOK
The Indian gems and jewellery exports have slowed down in the last few months, due to the various measures implemented by the Government. India’s gold imports declined from 1013.9 tonnes in FY2012-13 to 670.4 tonnes in the fiscal year ended March 2014, which is about 34% decrease, following the curb on import of precious metals by the government. The recent steps taken by the Government to restrict gold imports are having a negative impact on the Gems and Jewellery sector. However, this is only a short term measure and the Government is contemplating normalizing gold imports and exports.
The sector constitutes about 19% of the total exports from India. The Indian gold jewellery market is growing at 15% p.a. and the diamond jewellery market at 27% p.a. India’s luxury goods market is growing at over double the pace of the global luxury market. The Indian luxury sector is estimated to be close to $6 billion a year and growing at 15-20% a year, according to a March 2013 survey by Bain and Company.
CORPORATE PROFILE
Established in 1966, Gitanjali is one of the largest integrated branded jewellery players in India with revenues of over USD 2 Bn. The Group is present across the entire value chain from sourcing to manufacturing to branding to retailing. Gitanjali has state of the art diamond polishing and jewellery manufacturing facilities across India, China and Thailand. The group has been a pioneer in the branded jewellery segment in India, with the launch of Gili in 1994 and today owns a strong portfolio of Indian as well as international brands which are retailed through an extensive distribution network of around 360 distributors selling to over 3,000 retailers and around 1,100 retail outlets across the channels of own stores, franchisees and shop in shops.
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Loans and Advance from Related Parties |
0.000 |
48.124 |
|
Fully Convertible Debentures |
390.000 |
390.000 |
|
Fixed Deposit Scheme |
22.729 |
0.000 |
|
Total |
412.729 |
438.124 |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10537453 |
30/10/2014 |
182,700,000.00 |
KARNATAKA BANK LTD. |
"104-106, 1ST FLOOR, "EMBASSY CENTRE", NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
C37427242 |
|
2 |
10545082 |
09/10/2014 |
1,030,000,000.00 |
PUNJAB NATIONAL BANK |
MID CORPORATE
BRANCH, BRANDY HOUSE, FORT, MUMBAI, |
C41450941 |
|
3 |
10528438 |
08/10/2014 |
40,000,000.00 |
BANK OF MAHARASHTRA |
NARIMAN POINT OVERSEAS
BRANCH, MITTAL COURT, "A" |
C31781230 |
|
4 |
10527896 |
08/10/2014 |
53,100,000.00 |
LAKSHMI VILAS BANK LIMITED |
FORT BRANCH, BHARATH HOUSE, 104, MUMBAI SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
C31307283 |
|
5 |
10526165 |
25/09/2014 |
246,300,000.00 |
STATE BANK OF HYDERABAD |
1204, ASHOK MAHAL, TULLOCH ROAD, COLABA, MUMBAI, MAHARASHTRA - 400039, INDIA |
C29848793 |
|
6 |
10521647 |
15/09/2014 |
210,000,000.00 |
ORIENTAL BANK OF COMMERCE |
LCB, 14TH FLOOR, F WING, MAKER TOWER, CUFFE PARADE, MUMBAI, MUMBAI, MAHARASHTRA - 400005, INDIA |
C22116107 |
|
7 |
10518637 |
09/07/2014 |
305,400,000.00 |
BANK OF INDIA |
OPERA HOUSE BRANCH,
HERMES HOUSE, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI, MAHARASHTRA -
400004, |
C19635648 |
|
8 |
10523607 |
11/06/2014 |
700,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MAHARASHTRA - 400051, INDIA |
C24619504 |
|
9 |
10500939 |
09/05/2014 |
40,000,000.00 |
KARNATAKA BANK LTD. |
"104-106, 1ST FLOOR, "EMBASSY CENTRE", NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
C05545371 |
|
10 |
10496870 |
28/03/2014 |
177,400,000.00 |
BANK OF BARODA |
13, VASWANI
CHAMBERS, OPP. OLD PASSPORT OFFICE, 264/265, DR. A.B.ROAD, WORLI, MUMBAI,
MAHARASHTRA - |
C05255351 |
* Date of charge modification
CONTINGENT
LIABILITIES NOT PROVIDED IN RESPECT OF
a) Corporate Guarantees given by the Company to the extent of Rs. 34557.315 Millions (Previous year: Rs.31538.000 Millions) for Working capital facilities availed by its subsidiaries.
b) Outstanding Letter of Credit : Rs. NIL (Previous year : NIL)
c) The Company has received show cause notice from Custom department disputing the rate of custom duty in respect of import of jewelery by unrelated party, duty differential being Rs. 2.615 Millions. Since the material is not imported by the company, no duty would be payable. The company, based on tax consultant’s assessment, is confident that the case is likely to be decided favourably.
d) Disputed Income Tax : Rs.135.256 Millions (Previous Year: NIL) as under:
|
Sr. No. |
Assessment years |
Disputed Tax (Rs. In Million) |
|
1 |
AY 2006-07 |
47.390 |
|
2 |
AY 2007-08 |
87.866 |
The company’s income tax
assessments are completed U/s. 143 of the Income Tax Act, 1961 up to AY 2007-08
with demand of Rs. 1,73.046 Millions. The Company had filed appeals with the tribunal
against the said demand. Theappeals were decided in favour of the company. In
the meantime, the company received notice u/s 153A of theIncome Tax Act,1961,
and on completion of assessment for 2 years, demand for 1,35.256 Millions was
received. The Company has filed appeals against the said assessment orders and
appeals are pending before CIT (A).
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 20,
2014 PROFIT AND LOSS STATEMENT
|
Particulars |
Quarter Ended |
Half Year ended |
||
|
30.09.2014 |
30.06.20147 |
30.09.2014 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Income from Operations |
|
|
|
|
|
(a) Net sates/income from operations (Net of excise duty) |
15357.264 |
15261.636 |
30618.900 |
|
|
(b) Other Operating Income |
0.000 |
0.000 |
0.000 |
|
|
Total income from
operations (net) |
15357.264 |
15261.636 |
30618.900 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
16714.012 |
14205.183 |
30919.195 |
|
|
(b) Purchases of stock-in trade |
0.000 |
0.000 |
0.000 |
|
|
(c) Changes in inventories of finished goods. work-in-progress and
stock in trade |
(3406.516) |
(326.376) |
(3732.892) |
|
|
(d) Employee benefits expense |
58.734 |
54.473 |
113.207 |
|
|
(e) Depreciation and Anmortisation Expenses |
8.834 |
8.664 |
17.498 |
|
|
(f) Other Expenses |
563.917 |
221.987 |
785.904 |
|
|
Total expenses |
13938.981 |
14163.931 |
28102.912 |
|
3 |
Profit/ (Loss) from operations before other Income, finance costs and
exceptional Items (1-2) |
1418.283 |
1097.705 |
2515.988 |
|
4 |
Other Income |
(113.278) |
82.228 |
(31.050) |
|
5 |
Profit/ (Loss) from operations before other income, finance costs and
exceptional items (3+4) |
1305.006 |
1179.933 |
2484.939 |
|
6 |
Finance Costs |
1221.250 |
1098.888 |
2320.138 |
|
7 |
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items (5-6) |
83.755 |
81.045 |
164.800 |
|
8 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit/ (Loss) from ordinary activities before tax (7+8) |
83.755 |
81.045 |
164.800 |
|
10 |
Tax expenses |
1.473 |
1.353 |
2.826 |
|
11 |
Net Profit / (Loss) from ordinary activities after tax (9-10) |
82.282 |
79.692 |
161.974 |
|
12 |
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit / (Loss) for the period (11-12) |
82.282 |
79.692 |
161.974 |
|
14 |
Paid up equity share capital (Face Value of Rs10/- each) |
981.205 |
981.205 |
981.205 |
|
15 |
Reserve excluding Revaluation Reserve as per Balance Sheet of
previous accounting year |
|
|
|
|
16.i |
Earnings per share (before extraordinary items) of Rs.10/- each (not
annualised): |
|
|
|
|
|
(a) Basic |
0.86 |
0.85 |
1.69 |
|
|
(b) Diluted |
0.86 |
0.85 |
1.69 |
|
16.ii |
Earnings per share (after extraordinary items) of Rs.10/- each (not
annualised) |
|
|
|
|
|
(a) Basic |
0.86 |
0.85 |
1.69 |
|
|
(b) Diluted |
0.86 |
0.85 |
1.69 |
|
|
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of shares |
63010497 |
62721380 |
63010497 |
|
|
- Percentage of shareholding |
64.22 |
63.92 |
64.22 |
|
2 |
Promoters and Promoter group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
11229370 |
6977611 |
11229370 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
31.98 |
19.71 |
31.98 |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
11.44 |
7.11 |
11.44 |
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of shares |
23880584 |
28421460 |
23880584 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
68.02 |
80.29 |
68.02 |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
24.34 |
28.97 |
24.34 |
|
B |
INVESTOR COMPLAINTS (During the year |
Opening |
Additions |
Disposals |
Closing |
|
|
Pending at the beginning of the quarter |
0 |
104 |
104 |
0 |
STANDALONE SEGMENT
WISE REPORTING REVENUE, RESULTS AND CAPITAL EMPLOYED
|
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
|
|
|
Segment Revenue |
|
|
|
|
Segment - Diamond |
5924.282 |
5261.999 |
11186.281 |
|
Segment - Jewellery |
9530.022 |
10472.378 |
20002.400 |
|
Total |
15454.304 |
15734.377 |
31188.681 |
|
Less: Inter Segment Revenue |
97.040 |
472.741 |
569.781 |
|
Net Sales / Income from Operations |
15357.264 |
15261.636 |
30618.900 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
Profit / (Loss )
before tax and interest from each segment |
|
|
|
|
Segment - Diamond |
144.417 |
188.311 |
332.728 |
|
Segment - Jewellery |
1160.589 |
991.622 |
2152.211 |
|
Total |
1305.006 |
1179.933 |
2484.939 |
|
Less |
|
|
|
|
Interest |
1221.251 |
1098.888 |
2320.139 |
|
Total Profit Before
Exceptional Item and Tax |
83.755 |
81.045 |
164.800 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
Segment - Diamond |
6159.713 |
7010.609 |
6159.713 |
|
Segment - Jewellery |
9946.778 |
8991.816 |
9946.778 |
|
Unallocated net assets |
12583.456 |
12605.239 |
12583.456 |
|
Total |
28689.947 |
28607.664 |
28689.947 |
|
|
|
|
|
|
B) SECONDARY SEGMENT (BY GEOGRAPHICAL SEGMENT) |
|||
|
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
|
|
|
Segment Revenue
India |
8491.512 |
9836.065 |
18327.578 |
|
Rest of the
world |
6865.752 |
5425.571 |
12291.322 |
|
Total Revenue |
15357.264 |
15261.636 |
30618.900 |
STANDALONE /
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
|
Particulars |
As at 30.09.2014 |
|
|
|
Particulars |
|
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholder’s Funds |
|
|
|
a) Share Capital |
981.205 |
|
|
b) Reserves & Surplus |
27708.741 |
|
|
c) Money received against share warrants |
0.000 |
|
|
Sub Total- Shareholders funds |
28689.946 |
|
|
|
|
|
3 |
Minority Interest |
0.000 |
|
|
|
|
|
4 |
Non-current liabilities |
|
|
|
(a) Long term borrowings |
7371.043 |
|
|
(b) Deferred tax liabilities (net) |
9.192 |
|
|
(c) Other long term liabilities |
0.000 |
|
|
(d) Long term provisions |
30.293 |
|
|
Sub Total- Non Current Liabilities |
7410.528 |
|
5 |
Current liabilities |
|
|
|
(a) Short term borrowings |
41191.511 |
|
|
(b) Trade Payables |
7814.900 |
|
|
(c) Other current liabilities |
1392.871 |
|
|
(d) Short term provisions |
0.000 |
|
|
Sub Total- Current Liabilities |
50399.282 |
|
|
TOTAL-EQUITY AND LIABILITIES |
86499.756 |
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed assets |
293.186 |
|
|
(b) Goodwill on consolidation |
0.000 |
|
|
(c) Non-current Investments |
14146.616 |
|
|
(d) Deferred tax assets (net) |
0.000 |
|
|
(e) Long Term loans and advances |
1886.405 |
|
|
(f) Other non-current assets |
1206.340 |
|
|
Sub-Total- Non current assets |
17532.547 |
|
2 |
Current assets |
|
|
|
a) Current Investments |
0.000 |
|
|
b) Inventories |
13900.363 |
|
|
c) Trade Receivables |
47717.661 |
|
|
d) Cash and cash equivalents |
651.957 |
|
|
(e) Short term loans and advances |
6697.228 |
|
|
(f) Other current assets |
0.000 |
|
|
Sub-Total- current assets |
68967.209 |
|
|
TOTAL ASSETS |
86499.756 |
Notes:
1. The above standalone unaudited financial results for the
six month period ended September 30, 2014 were reviewed by the Audit Committee
and approved by the Board of Directors at its meeting held on November 14,
2014.
2. In respect of eight subsidiaries having negative net worth, these being
strategic investments, the holding company along with the management of
respective subsidiaries are considering various options for reviving and making
them viable. In view of this the accounts of these subsidiaries as on September
30, 2014 have been prepared on going concern basis and no provision for
impairment is considered. The total investment value of these subsidiaries
amounted to Rs. 548.300 Millions as on September 30, 2014.
3. Due to regulatory restrictions on import of gold and unfavorable INR Vs USD
currency fluctuation, the business of the group was severely impacted: The over
drawn position in the working capital account as on September 30, 2014 amounted
to around Rs. 772.600 Millions which is mainly on account of non servicing
interest. The consortium bankers have assessed enhanced working capital
requirements and the sanctions are awaited.
4. As on date the Company has not paid self assessment tax for the assessment
year 2013-14 totaling around Rs. 233.000 Millions (app.). Besides the income
tax liability, the Company has also to pay TDS totaling around Rs. 16.800
Millions. The Company has applied for enhancement of facilities and expects to
pay the above referred statutory dues shortly on getting disbursement from its
consortium of banks.
5. The Company has sought for rescheduling of repayment of ECB term loan for amount which was due but not paid and has approached LIC for rescheduling NCD repayments as on September 30, 2014 outstabding is as follows :
|
Nature of loan |
Principal Amount |
Interest and Charges |
|
NCB – ICICI |
1.078 |
0.721 |
|
NCD - LIC |
0.117 |
0.215* |
- *Interest in respect of NCD has been since paid.
- Pending above revised repayment schedule, no cash reserve for NCD has been created.
6. Pursuant to the applicability of the Companies Act, 2013, (the Act) from accounting period commencing from April 1, 2014 the company has not recalculated depreciation with reference to the estimated economic lives of fixed assets as prescribed by schedule II to the Companies Act, 2013 or actual useful life of asset whichever is lower. The group is in the process of computing the deprecation based on useful lives of assets. The effect of the same will be given in the subsequent quarters.
In respect of overseas subsidiaries, depreciation is calculated as per
respective accounting policies in line with local laws. Hence, no change in the
method of depreciation is considered.
7. The Company has opted to publish consolidated financial results from the financial year 2013-14. Standalone financial results are available at the website of the Company: www.gitanjaligroup.com Stock Exchanges: www.bseindia.com and www.nseindia.com.
8. The Auditors have without qualifying their limited review report drawn
attention to the Notes No. 2 to 5, stated above.
9. The Company has identified two major reportable segments: Diamond business
and Jewellery business.
10. Except for Audited figures for 12 month period i.e. April 2013 to March
2014, EPS is not annualized.
11. Previous period figures have been regrouped / rearranged, wherever
necessary to conform to the current period's classification.
FIXED ASSETS
- Freehold Land
- Office
Premises
- Plant and
Machinery
- Furniture and
Fixture
- Office
Equipments
- Computers
- Vehicles
- Moulds and
Dies
- Capital
Work-in-Progress
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. 62.20 |
|
|
1 |
Rs. 95.99 |
|
Euro |
1 |
Rs. 71.00 |
INFORMATION DETAILS
|
Information
Gathered by : |
PPT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
TRU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
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 |
|
52 |
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.