MIRA INFORM REPORT

 

 

Report No. :

320932

Report Date :

12.05.2015

 

IDENTIFICATION DETAILS

 

Name :

GITANJALI GEMS LIMITED

 

 

Registered Office :

A-1, 7th Floor, Laxmi Tower, Bandra – Kurla Complex, Bandra (E) Mumbai – 400051, Maharashtra

Tel. No.:

91-22-40354600

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

21.08.1986

 

 

Com. Reg. No.:

11-040689

 

 

Capital Investment / Paid-up Capital :

Rs. 920.655 Million

 

 

CIN No.:

[Company Identification No.]

L36911MH1986PLC040689

 

 

IEC No.:

0388212861

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACG1642F

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer, Trader, Exporter and Distributors of Diamond and Jewellery.

 

 

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

 

Maximum Credit Limit :

USD 80000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

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.

 

 

 

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

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

Tel. No.:

91-22-40354600

 

 

LOCATIONS

 

Registered Office :

A-1, 7th Floor, Laxmi Tower, Bandra – Kurla Complex, Bandra (E) Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-40354600 01

Fax No.:

91-22-40354602

E-Mail :

investors@gitanjaligroup.com

pankhuri@gitanjaligroup.com

Website :

http://www.gitanjaligroup.com

 

 

Factory 1  :

801/802 Prasad Chambers, Opera House, Mumbai-400004, Maharashtra, India

Tel. No.:

91-22-40362222

Fax No.:

91-22-23630363

 

 

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

E-Mail :

investors@gitanjaligroup.com

 

 

Administrative Office :

Building No. 2/101, Jogani Complex, Behind Amar Brass, Manipada Road, Kalina, Santacruz (East), Mumbai-400098, Maharashtra, India

 

 

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

 

 

Factory 3 :

2. Plot No.61, SEEPZ, Andheri (E), Mumbai, Maharashtra, India

 

 

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

 

 

Factory 5 :

Diamond Part 2, 2nd & 3rd floor, opp. Savani Estate, Varachha Road, Surat – 395006, Gujarat, India

 

 

Factory 6 :

Survey NO.1/1, Raviryala Village Road, Maheshwaram Mandal, R.R. District, Hyderabad – 501510, Andhra Pradesh, India

 

 

Factory 7 :

Basement and Ground floor, G-185, EPIP, Sitapura Industrial Area, Jaipur-302022, Rajasthan, India

 

 

Factory 8 :

4th Floor, Pacific Luxury, A Building, Xinya no. 123, Yinjian Road, Shataou Street, Dalou tang, Shiqiao Panyu – 511800 , Guanshou, China

 

 

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

 

 

Name :

Mr. Dhanesh Sheth

Designation :

Non -Executive Director

 

 

Name :

Mr. Swaminathan Sundararajan Mittur

Designation :

Independent Director

 

 

Name :

Mr. S. Krishnan

Designation :

Independent Director

 

 

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

 

 

Audit Committee:

 

Mr. Swaminathan Sundararajan Mittur (Chairman)

Mr. S. Krishnan

Mr. Mehul Choksi

 

 

Stakeholders Relationship Committee :

Mr. Swaminathan Sundararajan Mittur (Chairman)

Mr. S. Krishnan

 

 

Nomination and Remuneration Committee :

 

Mr. Swaminathan Sundararajan Mittur (Chairman)

Mr. S. Krishnan

Mr. Dhanesh Sheth

 

 

Corporate Social Responsibility (CSR) Committee :

Mr. Swaminathan Sundararajan Mittur (Chairman)

Mr. S. Krishnan

Mr. Dhanesh Sheth

 

 

Internal Complaints Committee :

 

Ms. Alpa Talsania (Chairman)

Ms. Pankhuri Warange

Ms. Chetna Jhaveri

 

 

Management Committee :

 

Mr. Mehul Choksi, Chairman

Mr. Dhanesh Sheth

 

 

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

30343018

30.92

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

4251686

4.33

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

34594704

35.26

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

 

 

Total shareholding of Promoter and Promoter Group (A)

34594704

35.26

(B) Public Shareholding

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

 

 

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

864

0.00

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

4865351

4.96

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

5203378

5.30

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

97177

0.10

http://www.bseindia.com/include/images/clear.gifForeign Portfolio Investor ( Corporate)

97177

0.10

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

10166770

10.36

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

 

 

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

25146375

25.63

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

21624352

22.04

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

3258302

3.32

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

3329948

3.39

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

445788

0.45

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

603386

0.61

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

1964762

2.00

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

316012

0.32

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

53358977

54.38

Total Public shareholding (B)

63525747

64.74

Total (A)+(B)

98120451

100.00

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

0

0.00

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)

98120451

100.00

 

 

 

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

 

 

Exports :

 

Products :

Diamond

Countries :
  • USA
  • UK
  • Belgium
  • Italy
  • Middle east
  • Thailand
  • China Japan

 

 

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 :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

3000 (Approximately)

 

 

Bankers :
  • Allahabad Bank
  • Andhra Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Catholic Syrian Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • EXIM Bank
  • ICICI Bank Limited
  • IDBI Bank
  • Indian Overseas Bank
  • IndusInd Bank Limited
  • Jammu and Kashmir Bank Limited
  • Karnataka Bank Limited
  • Karur Vysya Bank
  • Lakshmi Vilas Bank Limited
  • Oriental Bank of Commerce
  • Punjab and Sind Bank
  • Punjab National Bank
  • Standard Chartered Bank
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Mauritius
  • Syndicate Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Bonds / Debentures

0.000

156.250

Other Loans from Banks - ECB

5959.058

5667.937

 

 

 

SHORT TERM BORROWINGS

 

 

Working Capital Facilities from Banks

42151.338

23825.461

Total

48110.396

29649.648

 

 

 

Auditors :

 

Name :

Ford, Rhodes, Parks and Company

Chartered Accountants

Address :

Sai Commercial Building, 312/313, 3rd Floor, BKS Devshi Marg, Govandi (East), Mumbai – 400088, Maharashtra, India

Tel. No.:

91-22-67979819 / 67979823

Fax No.:

91-22-67979822

E-Mail :

frptax@vsnl.com

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary :
  • eGitanjali Limited (Formerly known as Mehul Impex Limited)
  • Gitanjali Exports Corporation Limited
  • Gitanjali Brands Limited
  • Hyderabad Gems SEZ Limited
  • Gitanjali Infratech Limited
  • Gitanjali Lifestyle Limited
  • Gitanjali Jewellery Retail Limited
  • Nashik Multi Services SEZ Limited
  • Gitanjali Ventures DMCC
  • Samuels Jewelers Inc.
  • Gitanjali USA Inc.
  • MMTC Gitanjali Limited
  • Decent Securities and Finance Private Limited
  • Eureka Finstock Private Limited
  • Gitanjali Capital Private Limited
  • N and J Finstock Private Limited
  • Decent Investment and Finance Private Limited
  • Aston Luxury Group Limited

 

 

Step Down Subsidiary :

 
  • Tri-Star Worldwide LLC
  • Shubhlavanyaa Jewel crafts Private Limited
  • Asmi Jewellery India Limited
  • Gili India Ltd. Step Down Subsidiary
  • D'Damas Jewellery (India) Private Limited
  • Nakshatra Brands Limited
  • Spectrum Jewellery Limited
  • Mobilenxt Teleservices Private Limited
  • Maya Retail Limited
  • Diamlink Inc
  • Alfred Terry Limited (Formerly Alfred Terry Holdings Limited
  • LJOW Holdings, LLC
  • Gitanjali Resources BVBA
  • GGL Diamond LLC
  • Leading Jewels of Japan K.K.
  • Leading Singapore Jewels Pte Limited
  • Blue SRL
  • Leading Italian Jewels SRL
  • Aston Diamond Resources SA Proprietary Limited
  • Abbeycrest ( Thailand) Limited
  • Diamlink Jewellery Inc
  • Jewelery Marketing Company LLC
  • Crown Aim Limited

 

 

Particulars of Enterprises Under Common Control of The Key Management Personnel where there are transactions

 
  • Priyanka Gems Private Limited
  • Partha Gems L.L.P.
  • Lustre Industries Private Limited.(Formerly known as Lustre Manufactures Private Limited.)
  • Rohan Diamonds Private Limited
  • Evergold Jewels Private Limited.(Formerly known as Trans Expo Trade Private Limited)
  • The Next Diamond Company
  • Mozart Trading Private Limited (Formerly known as Mozart Investment Private Limited)
  • Gitanjali Gold and Precious Limited
  • Touchstone
  • Diamond Creations
  • Diminco Diamond India Private Limited (Formerly known as Prism Bullion Private Limited)
  • Mast Jewellery Distributions Private Limited
  • Verite Company Limited
  • Ivida Technologies Private Limited (Step down subsidiary for part of the year)

 

 

CAPITAL STRUCTURE

 

After:  29.09.2014

 

Authorized Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

98120451

Equity Shares

Rs.10/- each

Rs. 981.205 Million

 

 

 

 

 

As on 31.03.2014

 

Authorized Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

92065491

Equity Shares

Rs.10/- each

Rs. 920.655 Million

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

Unaudited

30.06.2014

Unaudited

30.09.2014

Unaudited

31.12.2014

Type

1st Quarter

2nd Quarter

3rd Quarter

Revenue

15,261.640

15,357.260

17,523.080

Other Income

82.230

(113.280)

1,201.090

Total Income

15,343.870

15,243.980

18,724.170

Expenditure

(14,155.270)

(13,930.150)

(16,628.950)

Interest

(1,098.890)

(1,221.250)

(1,690.380)

PBDT

89.710

92.590

404.840

Depreciation

(8.660)

(8.830)

(8.990)

PBT

81.0500

83.760

395.850

Tax

(1.350)

(1.470)

(1.530)

Net Profit

79.690

82.280

394.320

 

 

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 Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

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 Million)

(Rs. In Million)

(Rs. In Million)

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 Million)

(Rs. In Million)

(Rs. In Million)

Sales

77554.710

103806.651

73430.346

Profit

2583.390

2651.616

(226.521)

 

3.33%

2.55%

(0.31%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

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

No

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

 

 

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 Million as against Rs. 103997.877 Million

• Net Loss as on March 31, 2014 is Rs. 226.521 Million as against profit of Rs. 2651.616 Million 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 Million. 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 Million, 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 Million)

31.03.2013

(Rs. in Million)

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, 
MUMBAI, MAHARASHTRA - 400023, INDIA

C41450941

3

10528438

08/10/2014

40,000,000.00

BANK OF MAHARASHTRA

NARIMAN POINT OVERSEAS BRANCH, MITTAL COURT, "A" 
WING GROUND FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400051, INDIA

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, 
INDIA

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 - 
400030, INDIA

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 Million (Previous year: Rs.31538.000 Million) 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 Million. 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 favourable.

 

d)    Disputed Income Tax : Rs.135.256 Million (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. 173.046 Million. The Company had filed appeals with the tribunal against the said demand. The appeals were decided in favour of the company. In the meantime, the company received notice u/s 153A of the Income Tax Act, 1961, and on completion of assessment for 2 years, demand for 135.256 Million was received. The Company has filed appeals against the said assessment orders and appeals are pending before CIT (A).

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ON 31.12.2014

 

[RS. IN MILLIONS]

 

Particulars

 

3 Months Ended

9 Months Ended

31.12.2014

 

30.09.2014

 

31.12.2014

 

Unaudited

Unaudited

Unaudited

1

Income from Operations

 

 

 

 

(a) Net sates/income from operations (Net of excise duty)

34497.127

24711.089

79936.903

 

(b) Other Operating Income

0.000

0.000

0.000

 

Total income from operations (net)

34497.127

24711.089

79936.903

2

Expenses

 

 

 

 

(a) Cost of materials consumed

37846.088

22596.890

79237.498

 

(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

(8296.747)

(2665.167)

(12948.352)

 

(d) Employee benefits expense

778.032

768.880

2164.187

 

(e) Depreciation and Amortization Expenses

92.937

104.923

272.145

 

(f) Other Expenses

1965.289

1202.352

4171.665

 

Total expenses

2385.599

22007.878

72897.143

3

Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)

2111.528

2703.211

7039.760

4

Other Income

1549.778

(262.449)

1374.622

5

Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)

3661.306

2440.762

8414.382

6

Finance Costs

2698.041

2222.059

7001.038

7

Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)

963.265

218.703

1413.344

8

Exceptional items

(1.395)

24.414

(78.992)

9

Profit/ (Loss) from ordinary activities before tax (7+8)

961.878

243.117

1334.352

10

Tax expenses

(8.289)

48.983

62.702

11

Net Profit / (Loss) from ordinary activities after tax (9-10)

970.167

194.134

1271.650

12

Extraordinary item (net of tax expense)

-

-

-

13

Net Profit / (Loss) for the period (11-12)

970.167

194.134

1271.650

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 annualized):

-

-

-

 

(a) Basic

9.93

1.91

12.88

 

(b) Diluted

9.93

1.91

12.88

16.ii

Earnings per share (after extraordinary items) of Rs.10/- each (not annualized)

 

 

 

 

(a) Basic

9.93

1.91

12.88

 

(b) Diluted

9.93

1.91

12.88

 

 

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

- Number of shares

63513945

63010497

63513945

 

- Percentage of shareholding

64.73

64.22

64.73

2

Promoters and Promoter group shareholding

 

 

 

 

a) Pledged / Encumbered

15048555

11229370

15048555

 

- Number of shares

43.48

31.98

43.48

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

15.34

11.44

15.34

 

- Percentage of shares (as a % of the total Share Capital of the Company)

 

 

 

 

b) Non Encumbered

 

 

 

 

- Number of shares

19557951

23880584

19557951

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

56.52

68.02

56.52

 

- Percentage of shares (as a % of the total Share Capital of the Company)

84.66

24.34

84.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B

INVESTOR COMPLAINTS (During the year

Opening

Additions

Disposals

Closing

 

Pending at the beginning of the quarter

0

13

13

0

 

 

STANDALONE SEGMENT WISE REPORTING REVENUE, RESULTS AND CAPITAL EMPLOYED

 

Particular

Quarter Ended

Half Year Ended

 

31.12.2014

[Unaudited]

30.09.2014

[Unaudited]

31.12.2014

[Unaudited]

 

 

 

 

Segment Revenue

 

 

 

Segment - Diamond

10208.121

9420.730

28008.941

Segment - Jewellery

25293.988

16590.049

54874.291

Segment – Others

36.032

36.641

193.868

Total

35538.141

26047.420

83077.100

Less: Inter Segment Revenue

1041.014

1336.331

3140.197

Net Sales / Income from Operations

34497.127

24711.089

79936.903

 

 

 

 

Segment Results

 

 

 

Profit / (Loss ) before tax and interest from each segment

 

 

 

Segment - Diamond

254.058

231.222

861.192

Segment - Jewellery

3429.717

2219.855

7646.096

Segment – Others

(22.469)

(10.315)

(92.906)

Total

3661.306

2440.762

8414.382

Less

 

 

 

Interest

2698.041

2222.059

7001.038

Total Profit Before Exceptional Item and Tax

963.265

218.703

1413.344

 

 

 

 

Capital Employed

 

 

 

Segment - Diamond

13398.484

12806.410

13398.484

Segment - Jewellery

27994.358

27028.363

27994.358

Unallocated net assets

409.596

581.466

409.596

Total

41802.438

40416.239

41802.438

 

 

 

 

B) SECONDARY SEGMENT (BY GEOGRAPHICAL SEGMENT)

Particular

Quarter Ended

Half Year Ended

 

 

 

 

 

 

 

 

Segment Revenue India

16529.132

8536.861

33638.437

Rest of the world

17967.995

16174.228

46298.466

Total Revenue

34497.127

24711.089

79936.903

 

 

 

 

1. The above standalone unaudited financial results for the nine month period ended December 31, 2014 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on February 12, 2015.


2. In respect of eight subsidiaries having negative networth, 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 December 31, 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 Million as on December 31, 2014.


3. The business of the group continues to be impacted due to regulatory restrictions on import of gold & unfavorable INR Vs USD currency fluctuation. The consortium bankers have assessed enhanced working capital requirements and the sanctions are awaited with modified terms. The group's over drawn position in the working capital account as on December 31, 2014 amounted to around Rs.792.100 Million which is mainly on account of non-servicing of interest and charges.


4. As on date the group has not paid self-assessment tax for the assessment year 2013-14 totaling around Rs. 240.400 Million (appx). Besides the income tax liability, the group has also to pay TDS totaling to Rs 18.600 Million.


5. Cash reserve remains to be created by the company against Non - Convertible debentures maturing during the year.


6. The Company has sought for rescheduling of repayment of ECB term loan with IDBI. The Reserve Bank of India has given in principal approval for rescheduling. Approval from IDBI is awaited.


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 6, 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
  • Factory Building
  • 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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

No 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. 63.85

UK Pound

1

Rs. 98.47

Euro

1

Rs. 71.51

 

 

INFORMATION DETAILS

 

Information Gathered by :

PPT

 

 

Analysis Done by :

RSM

 

 

Report Prepared by :

MTN

 

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

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

 

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

 

--

 

 

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.