MIRA INFORM REPORT

 

 

Report No. :

329814

Report Date :

30.06.2015

 

IDENTIFICATION DETAILS

 

Name :

GOLDIAM INTERNATIONAL LIMITED

 

 

Registered Office :

Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai – 400096, Maharashtra

Tel. No.:

91-22-28291893

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

10.10.1986

 

 

Com. Reg. No.:

11-041203

 

 

Capital Investment / Paid-up Capital :

Rs. 249.460 Million

 

 

CIN No.:

[Company Identification No.]

L36912MH1986PLC041203

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG08508D

 

 

PAN No.:

[Permanent Account No.]

AAACG2271J

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Diamond Studded Gold, Platinum and Silver Jewellery and also Investment Activity.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was established in the year 1986 and it is a manufacturer of Diamond Studded Gold, Platinum and Silver Jewellery. It is an established company having satisfactory track.

 

For the financial year ended 2015, company has reported slight dip in sales turnover profile but it has maintained profitability margins at 9.38%.

 

Rating also takes into consideration company’s sound financial risk profile marked by adequate networth base and debt protection metrics.

 

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

 

In view of sound financial base, the company can be considered for business dealings at usual trade terms and conditions.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

 

 

INFORMATION PARTED BY ((PARTIAL DETAILS)

 

Name :

Ms. Suchita

Contact No.:

91-22-28291893

Date :

11.05.2015

 

 

LOCATIONS

 

Registered Office/ Factory 1:

Gems and Jewellery Complex, MIDC Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India 

Tel. No.:

91-22-28291893

Fax No.:

91-22-28292885

E-Mail :

goldiam@bom2.vsnl.net.in

goldiam@vsnl.com

investorrelations@goldiam.com

rashesh@goldiam.com

kunal@goldiam.com

Website :

www.goldiam.com

 

 

Factory 2:

Santacruz Electric Export Processing Zone, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India

 

 

Diamond Procurement Office :

The Capital, Office No.1107, A Wing, 11th Floor, Plot No.C-70, G-Block, Bandra (East), Mumbai – 400051, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Manhar R. Bhansali

Designation :

Chairman and Managing Director

Date of Birth/Age :

20.09.1941

Qualification :

Under Graduate

Expertise in specific functional area :

Entered in the diamond business more than 4 decades ago. He is having extensive knowledge and experience in Diamond Business and engage in Manufacturing, Trading and Jewellery exports.

 

M. R. Bhansali group is well known group in the Diamond market. He is driving force behind the success of the Company and his contribution to the enhancement of the Indian Gems and Jewellery Industry is unparalleled. Mr. Manhar Bhansali also honored with the prestigious "Pioneer of the year" Award instituted by IDCA (Indian Diamond and Colorstone Association), New York.

Date of Appointment :

10.10.1986

DIN No. :

00058699

 

 

Name :

Mr. Rashesh M. Bhansali

Designation :

Vice Chairman and Managing Director

Qualification :

Bachelors degree in Commerce

Expertise in specific functional area :

Wide Knowledge and experience in the field of diamonds and Jewellery

Date of Appointment :

10.10.1986

 

 

Name :

Mr. Ajay M. Khatlawalal

Designation :

Independent Director

Date of Birth/Age :

02.05.1954

Qualification :

B.SC., LLB, Solicitor

Expertise in specific functional area :

Wide Knowledge and experience in legal and Company matters.

Date of Appointment :

15.10.1994

DIN No. :

00124042

 

 

Name :

Mr. Rajesh G. Kapadia

Designation :

Independent Director

Date of Birth/Age :

02.11.1956

Qualification :

B.com (Hons.) F.C.A. (Fellow Member of Institute of Chartered Accountants of India)

Expertise in specific functional area :

Extensive knowledge and experience in accounts, taxation and company matters.

Date of Appointment :

15.10.1994

DIN No. :

00003272

 

 

Name :

Dr. Raghavachari Srinivasan

Designation :

Independent Director

Date of Birth/Age :

30.05.1931

Qualification :

Ph.D., CAIIB, FIB, Doctorate in Banking and Finance

Date of Appointment :

02.05.2002

Expertise in specific functional area :

Wide experience in Banking and Finance

DIN No. :

00003968

 

 

Name :

Ami Rashesh Bhansali

Designation :

Director

Address :

5th Floor, A-55, Nishika Tower, Khan Abdul, Gaffar Khan Road, Worli, Mumbai - 400018, Maharashtra, India

Date of Appointment :

13.08.2014

 

 

KEY EXECUTIVES

 

Name :

Darshana Jayantilal Patel

Designation :

Chief Financial Officer

Address :

Flat No-304, 3-Floor, B-Wing, Kurarabad Apartment, Co-OP HSG., Kurar Village, Malad (East), Mumbai - 400097, Maharashtra, India

PAN No.:

AZFPP9148J

Date of Appointment :

13.08.2014

 

 

Name :

Ms. Anita Kate 

Designation :

Company Secretary and Compliance Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

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

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

14198100

56.92

http://www.bseindia.com/include/images/clear.gifSub Total

14198100

56.92

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

14198100

56.92

 

 

 

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

8000

0.03

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

400

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

8400

0.03

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

577391

2.31

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

4090702

16.40

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

2589463

10.38

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

3481940

13.96

http://www.bseindia.com/include/images/clear.gifClearing Members

18565

0.07

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

2700000

10.82

http://www.bseindia.com/include/images/clear.gifMarket Maker

20824

0.08

http://www.bseindia.com/include/images/clear.gifForeign Nationals

1600

0.01

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

369304

1.48

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

15000

0.06

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

355647

1.43

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

1000

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

10739496

43.05

Total Public shareholding (B)

10747896

43.08

 

 

 

Total (A)+(B)

24945996

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

24945996

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Diamond Studded Gold, Platinum and Silver Jewellery and also Investment Activity.

 

 

Products / Services :

Diamond Studded Gold, Platinum and Silver Jewellery and also Investment Activity

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Cash, L/C and Credit

 

 

Purchasing :

Cash, L/C and Credit

 

PRODUCTION STATUS : NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

 

Bank Name

·         The Hongkong and Shanghai Banking Corporation Limited

·         Yes Bank Limited

·         Standard Chartered Bank

·         Punjab National Bank

·         Citibank N.A.

Branch

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Loans repayable on demand - Form Banks

 

 

Preshipment Credit in Foreign Currency with YES Bank Limited

(Secured by first pari passu charge on all the entire current assets of the Company both present and future)

NA

0.000

Preshipment Credit in Foreign Currency with CITI Bank N.A.

NA

125.747

Post Shipment Credit in Foreign Currency with CITI Bank N.A.

(Secured by Pledge in investments in Fixed Monthly Plans (FMP) and other debt mutual fund through Citi Bank N.A.)

NA

73.482

Preshipment Credit in Foreign Currency with HSBC Bank

NA

48.951

Post Shipment Credit in Foreign Currency with HSBC Bank Limited

(Secured by Pledge in investments in other debt mutual funds through HSBC Bank)

NA

41.105

Total

NA

289.285

 

Auditors :

 

Name :

Pulindra Patel and Company

Chartered Accountants

 

 

Subsidiaries

[AS ON 31.03.2014] :
  • Diagold Designs Limited
  • Goldiam Jewellery Limited
  • Goldiam USA, Inc.
  • Goldiam Jewels Limited (upto 28th September, 2012)

 

 

Associate

[AS ON 31.03.2014]:

Goldiam HK Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital : Not Available

 

Issued, Subscribed & Paid-up Capital : Rs.249.460 Million

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

31000000

Equity Shares

Rs.10/- each

Rs.310.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

24945996      

Equity Shares

Rs.10/- each

Rs.249.460 Million

 

 

 

 

 

NOTE

 

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

 

Details to be given for each class of shares separately for Issued, Subscribed and fully paid up and Subscribed but not fully paid up, as applicable.

 

PARTICULARS

Opening

Balance

Closing

Balance

Equity shares with voting rights :

 

 

At the beginning of the year

 

 

– Number of shares

24945996

24945996

– Amount (Rs.) in Million

249.460

249.460

 

 

 

Add : Addition during the year :

 

 

– Number of shares

--

--

– Amount (Rs.) in Million

--

--

 

 

 

Less : Deduction During the year :

 

 

– Number of shares

--

--

– Amount (Rs.) in Million

--

--

 

 

 

Year ended 31 March, 2014 :

 

 

– Number of shares

24945996

24945996

– Amount (Rs.) in Million

249.460

249.460

 

 

 

Year ended 31 March, 2013

 

 

– Number of shares

24945996

24945996

– Amount (Rs.) in Million

249.460

249.460

 

 

Details of shares held by each shareholder holding more than 5% shares:

 

Class of shares / Name of shareholder

As at 31 March, 2014

Number of shares held

% holding in that class of shares

Equity shares with voting rights

 

 

Manhar Bhansali

7103428

28.48%

Rashesh Bhansali

5900000

23.65%

Diajewel N.V.

2700000

10.82%

Equity shares with differential voting rights

--

--

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

249.460

249.460

249.460

(b) Reserves & Surplus

1548.898

1481.441

1416.501

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1798.358

1730.901

1665.961

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

11.022

9.655

9.517

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

11.022

9.655

9.517

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

441.790

289.285

529.487

(b) Trade payables

278.745

325.546

237.856

(c) Other current liabilities

18.971

28.783

26.787

(d) Short-term provisions

50.138

45.587

26.548

Total Current Liabilities (4)

789.644

689.201

820.678

 

 

 

 

TOTAL

2599.024

2429.757

2496.156

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

159.784

193.567

195.499

(ii) Intangible Assets

5.477

0.000

0.000

(iii) Capital work-in-progress

15.011

3.301

1.486

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

346.204

250.298

275.310

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

2.051

2.281

2.281

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

528.527

449.447

474.576

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

719.731

733.482

803.251

(b) Inventories

369.668

357.822

336.498

(c) Trade receivables

809.553

773.598

697.601

(d) Cash and cash equivalents

49.985

23.275

127.012

(e) Short-term loans and advances

121.560

92.133

57.218

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

2070.497

1980.310

2021.580

 

 

 

 

TOTAL

2599.024

2429.757

2496.156

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

1189.427

1252.705

974.577

 

 

Other Income

78.625

63.807

45.135

 

 

TOTAL                                    

1268.052

1316.512

1019.712

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

914.145

948.118

719.180

 

 

Purchases of Stock-in-Trade

45.669

69.012

58.937

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(1.009)

19.013

0.571

 

 

Employees benefits expense

18.181

19.324

15.648

 

 

Other expenses

125.896

103.896

94.762

 

 

Exceptional Items

0.000

0.000

(18.033)

 

 

TOTAL                                    

1102.882

1159.363

871.065

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

165.170

157.149

148.647

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

6.215

8.205

7.097

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

158.955

148.944

141.550

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

23.542

17.114

13.798

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX 

135.413

131.830

127.752

 

 

 

 

 

Less

TAX                                                     

31.442

31.867

42.837

 

 

 

 

 

Less / Add

EXTRAORDINARY ITEMS

(7.570)

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

111.541

99.963

84.915

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

907.065

844.625

808.296

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transferred to General Reserve

NA

2.500

5.000

 

 

Interim Dividend

NA

0.000

24.946

 

 

Proposed Dividend

NA

29.935

12.473

 

 

Tax on Interim Dividend

NA

0.000

4.047

 

 

Tax on Proposed Dividend

NA

5.087

2.120

 

BALANCE CARRIED TO THE B/S

NA

907.065

844.625

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

NA

1176.580

922.777

 

TOTAL EARNINGS

NA

1176.580

922.777

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

352.635

364.249

 

 

Components and Stores parts

NA

1.464

1.073

 

 

Capital Goods

NA

0.056

1.742

 

TOTAL IMPORTS

NA

354.155

367.064

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.47

4.01

3.40

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

 

31.03.2013

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

78.212

(68.218)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

9.38

7.98

8.71

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

13.89

12.54

15.25

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.05

6.06

5.76

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.08

0.08

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.25

0.17

0.32

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.62

2.87

2.46

 

STOCK PRICES

 

Face Value

Rs.10.00/-

Market Value

Rs.26.25/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

249.460

249.460

249.460

Reserves & Surplus

1416.501

1481.441

1548.898

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1665.961

1730.901

1798.358

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

529.487

289.285

441.790

Total borrowings

529.487

289.285

441.790

Debt/Equity ratio

0.318

0.167

0.246

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

974.577

1252.705

1189.427

 

 

28.538

(5.051)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

974.577

1252.705

1189.427

Profit

84.915

99.963

111.541

 

8.71%

7.98%

9.38%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

----

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

---

33

Market information

---

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem and Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10541968

20/11/2014

250,000,000.00

CITI BANK N.A.

FIRST INTERNATIONAL FINANCIALS CENTRE (FIFC),, PL 
OT NO. C- 54 & 55, G- BLOCK, BKC, BANDRA (E), MUMB 
AI, MAHARASHTRA - 400051, INDIA

C39916648

2

10213510

30/06/2011 *

200,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR. 
ANNIE BESANT ROAD, WORLI,, MUMBAI, MAHARASHTRA - 
400018, INDIA

B16756264

 

 

* Date of charge modification

 

 

CONTINGENT LIABILITIES (AS ON 31.03.2014)

 

a) The Company has outstanding performance guarantee of Rs.159.150 Million as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year Rs.159.150 Million).

 

b) The Municipal Corporation of Greater Mumbai has preferred an appeal in the High Court of Judicature at Bombay against the order of Small Causes Court rejecting the claim of Municipal Corporation of Greater Mumbai for an amount of Rs. 13.697 Million (Previous year Rs. 13.697 Million) on account of property tax.

 

c) The Company has executed Bank Guarantee of Rs. 325.000 Million (Previous year Rs. 325.000 Million) favouring The Hongkong and Shanghai Banking Corporation Limited Mumbai for its wholly owned subsidiary, Goldiam Jewellery Limited, Mumbai.

 

FIXED ASSETS

 

Tangible Assets

·         Factory Building

·         Office Premises

·         Furniture and Fixture

·         Office Equipment

·         Plant and Machinery

·         Computers

·         Vehicles

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         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.63.92

UK Pound

1

Rs.100.41

Euro

1

Rs.70.41

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SNT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

48

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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.