MIRA INFORM REPORT
|
Report No. : |
308428 |
|
Report Date : |
18.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHAITYA |
|
|
|
|
Registered
Office : |
CC-2082, Bharat Diamond Bourse C Tower, Bandra-Kurla Complex, Bandra (East),
Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
19.11.1990 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 345.453 Millions |
|
|
|
|
IEC No.: |
0390028991 |
|
|
|
|
PAN No.: |
AAAFC1045P |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
|
|
|
|
Line of Business
: |
Processor and Trader of Diamond. |
|
|
|
|
No. of Employees
: |
130 (Approximately) [In Office 29+ In Factory 100+ In Branch 01] |
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 partnership concern having Moderate track
record. Mr. Harikesh Gupta (Finance Manager) has provided us with all
information. Profitability of the concern seems to be low during 2014. The rating also takes into consideration the CPD (Cut and Polished
Diamond) industry is highly competitive due to fragmented nature of the
industry marked by large presence of unorganized players. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The concern can be considered for the 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
|
Rating Agency Name |
ICRA |
|
Rating |
Long term fund based limits = BB |
|
Rating Explanation |
Have moderate risk of default |
|
Date |
March 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term fund based limits = A4 |
|
Rating Explanation |
Have minimal degree of safety and carry high credit risk. |
|
Date |
March 2014 |
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. Harikesh Gupta |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-40965500 |
|
Date : |
17.02.2015 |
LOCATIONS
|
Registered Office : |
CC-2082, Bharat Diamond Bourse C Tower, Bandra-Kurla Complex, Bandra
(East), Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-40965500/ 40965501 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Area : |
1600 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory : |
30/302, Ashapur Complex, Godaralawadi, Surat, Gujarat, India |
|
Location : |
Leased |
PARTNERS
|
Name : |
Mrs. Seema Shah |
|
Designation : |
Partner |
|
|
|
|
Name : |
Ms. Tanya Shah |
|
Designation : |
Partner |
|
|
|
|
Name : |
Mr. Rajesh Shah |
|
Designation : |
Partner |
KEY EXECUTIVES
|
Name : |
Mr. Harikesh |
|
Designation : |
Finance Manager |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Trader of Diamond. |
|
|
|
|
Products : |
Diamond |
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
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Exports : |
|
|
Products : |
Finished Goods |
|
Countries : |
· Hong Kong · US · UAE · Dubai · Israel · Belgium |
|
|
|
|
Imports : |
|
|
Products : |
Ruff Diamond |
|
Countries : |
Belgium |
|
|
|
|
Terms : |
|
|
Selling : |
Credit (30-60 days) |
|
|
|
|
Purchasing : |
L/C and Cash, Credit (30-60 days) |
GENERAL INFORMATION
|
Suppliers : |
· Soradiam N.V. · Paras Gems |
||||||||||||||||||||||
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|
||||||||||||||||||||||
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Customers : |
Wholesaler and Retailers
· Excellent Facets Inc. · Next Global Limited |
||||||||||||||||||||||
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No. of Employees : |
130 (Approximately) [In Office 29+ In Factory 100+ In Branch 01] |
||||||||||||||||||||||
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|
Bankers : |
|
|
|
|
|
Auditors : |
|
|
Name : |
Sampat Mehta and Associates Chartered Accountants |
|
Address : |
Opera House, Charni Road, Mumbai, Maharashtra, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Sister Concern : |
|
CAPITAL STRUCTURE
(AS ON 31.03.2014)
|
Capital Investment : |
|
|
Owned : |
Rs.345.453 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.345.453 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Partner's Capital |
345.453 |
295.160 |
216.420 |
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH |
345.453 |
295.160 |
216.420 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
593.595 |
401.321 |
194.645 |
|
2] Unsecured Loans |
4.138 |
12.438 |
3.000 |
|
TOTAL
BORROWING |
597.733 |
413.759 |
197.645 |
|
|
|
|
|
|
DEFERRED TAX LIABILITIES |
1.130 |
0.580 |
0.000 |
|
|
|
|
|
|
TOTAL |
944.316 |
709.499 |
414.065 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
47.686 |
37.546 |
35.926 |
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.233 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
882.051 |
816.830 |
473.611 |
|
Sundry Debtors |
752.909 |
509.092 |
364.478 |
|
Cash & Bank Balances |
0.226 |
6.808 |
4.739 |
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances and Deposits |
9.418 |
10.966 |
17.429 |
|
Total
Current Assets |
1644.604 |
1343.696 |
860.257 |
|
|
|
|
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
Sundry Creditors |
747.974 |
671.743 |
482.351 |
|
Other Current Liabilities / Duty and Taxes |
0.000 |
0.000 |
0.000 |
|
Provisions |
0.000 |
0.000 |
0.000 |
|
Total
Current Liabilities |
747.974 |
671.743 |
482.351 |
|
|
|
|
|
|
Net
Current Assets |
896.630 |
671.953 |
377.906 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
TOTAL |
944.316 |
709.499 |
414.065 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3043.945 |
2060.295 |
1598.323 |
|
|
|
Other Income |
2.299 |
17.927 |
29.144 |
|
|
|
TOTAL |
3046.244 |
2078.222 |
1627.467 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
2728.251 |
1934.777 |
1486.568 |
|
|
|
Labour Charges |
123.966 |
48.098 |
57.380 |
|
|
|
Import Duty |
1.391 |
1.507 |
0.000 |
|
|
|
Bank Charges |
9.860 |
6.930 |
6.284 |
|
|
|
Bank Interest |
36.215 |
15.173 |
14.606 |
|
|
|
Export Freight |
1.964 |
1.801 |
1.368 |
|
|
|
Brokerage Expenses |
2.867 |
2.056 |
2.636 |
|
|
|
Keyman Insurance Premium |
0.617 |
4.852 |
1.662 |
|
|
|
Foreign Travelling Expenses |
3.054 |
1.842 |
1.737 |
|
|
|
Society Maintenance |
0.649 |
0.829 |
0.762 |
|
|
|
Salary and Allowance |
4.088 |
3.703 |
3.823 |
|
|
|
Provident Fund |
0.191 |
0.192 |
0.168 |
|
|
|
Audit Fees |
2.576 |
0.393 |
0.320 |
|
|
|
Diamond Grading Charges |
15.884 |
16.454 |
11.362 |
|
|
|
Other Expenses |
84.284 |
18.442 |
17.414
|
|
|
|
TOTAL |
3015.857 |
2057.049 |
1606.090 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
30.387 |
27.173 |
21.377 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2.576 |
1.856 |
0.312 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
27.811 |
25.317 |
21.065 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
0.91 |
0.94 |
1.32 |
|
|
|
|
|
|
|
Operating Profit Margins
(PBTIT / Sales) |
(%) |
1.00 |
1.03 |
1.34 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.64 |
1.40 |
2.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.07 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt
/Networth) |
|
1.73 |
1.40 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.20 |
2.00 |
1.78 |
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 |
216.420 |
295.160 |
345.453 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net
worth |
216.420 |
295.160 |
345.453 |
|
|
|
|
|
|
Secured Loans |
194.645 |
401.321 |
593.595 |
|
Unsecured Loans |
3.000 |
12.438 |
4.138 |
|
Total
borrowings |
197.645 |
413.759 |
597.733 |
|
Debt/Equity
ratio |
0.913 |
1.402 |
1.730 |
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 |
1598.323 |
2060.295 |
3043.945 |
|
|
|
28.904 |
47.743 |
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 |
1598.323 |
2060.295 |
3043.945 |
|
Profit |
21.065 |
19.317 |
27.811 |
|
|
1.32% |
0.94% |
0.91% |
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 |
Yes |
|
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 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 |
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 |
Yes |
|
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 |
Yes |
|
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 |
TRADE REFERENCE:
· Rosy Blue India Private Limited
· Dhanera Diamonds
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,
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 : |
RAS |
|
|
|
|
Analysis done by
: |
HNA |
|
|
|
|
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 |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILITY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.