MIRA INFORM REPORT

 

 

Report No. :

322083

Report Date :

13.05.2015

 

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) :

31.03.2014

 

 

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 is an established company having satisfactory track record.

 

The rating reflects company’s healthy financial risk profile marked by decent liquidity position and fair profitability levels of the company.

 

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

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 31-03-2014.

 

 

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

 

 

KEY EXECUTIVES

 

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

 

(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.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

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

31.03.2014

(Rs. In Million)

31.03.2013

(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)

0.000

200.755

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

125.747

167.090

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.)

73.482

9.962

Preshipment Credit in Foreign Currency with HSBC Bank

48.951

151.680

Post Shipment Credit in Foreign Currency with HSBC Bank Limited

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

41.105

0.000

Total

289.285

529.487

 

Auditors :

 

Name :

Pulindra Patel and Company

Chartered Accountants

 

 

Subsidiaries :

·         Diagold Designs Limited

·         Goldiam Jewellery Limited

·         Goldiam USA, Inc.

·         Goldiam Jewels Limited (upto 28th September, 2012)

 

 

Associate :

Goldiam HK Limited

 

 

CAPITAL STRUCTURE

 

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

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

249.460

249.460

249.460

(b) Reserves & Surplus

1481.441

1416.501

1375.172

(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)

1730.901

1665.961

1624.632

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

9.655

9.517

0.000

(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)

9.655

9.517

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

289.285

529.487

207.490

(b) Trade payables

325.546

237.856

229.925

(c) Other current liabilities

28.783

26.787

6.255

(d) Short-term provisions

45.587

26.548

15.012

Total Current Liabilities (4)

689.201

820.678

458.682

 

 

 

 

TOTAL

2429.757

2496.156

2083.314

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

193.567

195.499

94.278

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

3.301

1.486

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

250.298

275.310

319.498

(c) Deferred tax assets (net)

0.000

0.000

7.563

(d)  Long-term Loan and Advances

2.281

2.281

2.035

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

449.447

474.576

423.374

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

733.482

803.251

624.501

(b) Inventories

357.822

336.498

278.782

(c) Trade receivables

773.598

697.601

556.733

(d) Cash and cash equivalents

23.275

127.012

143.282

(e) Short-term loans and advances

92.133

57.218

56.642

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

1980.310

2021.580

1659.940

 

 

 

 

TOTAL

2429.757

2496.156

2083.314

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

1252.705

974.577

915.983

 

 

Other Income

63.807

45.135

66.85

 

 

TOTAL                                     (A)

1316.512

1019.712

982.833

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

948.118

719.180

678.575

 

 

Purchases of Stock-in-Trade

69.012

58.937

98.403

 

 

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

19.013

0.571

-1.702

 

 

Employees benefits expense

19.324

15.648

14.375

 

 

Other expenses

103.896

94.762

65.128

 

 

Exceptional Items

0.000

(18.033)

0.000

 

 

TOTAL                                     (B)

1159.363

871.065

854.779

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

157.149

148.647

128.054

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

8.205

7.097

6.367

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

148.944

141.550

121.687

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

17.114

13.798

13.468

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)               (G)           

131.830

127.752

108.219

 

 

 

 

 

Less

TAX                                                                  (H)

31.867

42.837

23.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

99.963

84.915

85.219

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

844.625

808.296

772.066

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transferred to General Reserve

2.500

5.000

5.500

 

 

Interim Dividend

0.000

24.946

27.441

 

 

Proposed Dividend

29.935

12.473

9.978

 

 

Tax on Interim Dividend

0.000

4.047

4.452

 

 

Tax on Proposed Dividend

5.087

2.120

1.619

 

BALANCE CARRIED TO THE B/S

907.065

844.625

808.296

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

1176.580

922.777

857.202

 

TOTAL EARNINGS

1176.580

922.777

857.202

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

352.635

364.249

334.590

 

 

Components and Stores parts

1.464

1.073

1.522

 

 

Capital Goods

0.056

1.742

2.879

 

TOTAL IMPORTS

354.155

367.064

338.991

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.01

3.40

3.42

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2014

30.09.2014

31.12.2014

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

2870.900

3076.100

 3449.500

Total Expenditure

2662.200

2835.500

3207.700

PBIDT (Excl OI)

208.700

240.600

241.800

Other Income

51.700

764.900

(349.700)

Operating Profit

260.500

1005.500

(107.900)

Interest

13.300

12.800

18.600

Exceptional Items

NA

75.700

NA

PBDT

247.200

1068.400

(126.500)

Depreciation

83.300

44.900

52.500

Profit Before Tax

163.900

1023.500

(179.000)

Tax

26.300

230.400

(40.600)

Provisions and contingencies

NA

NA

NA

Profit After Tax

137.600

793.100

(138.400)

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

137.600

793.100

(138.400)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin
(PAT / Sales)

(%)

7.98

8.71

9.30

 

 

 

 

 

Operating Profit Margin
(PBIDT/Sales)

(%)

12.54

15.25

13.98

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.06

5.76

6.16

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.08

0.07

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.17

0.32

0.13

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.87

2.46

3.62

 

 

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

249.460

249.460

249.460

Reserves & Surplus

1375.172

1416.501

1481.441

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1624.632

1665.961

1730.901

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

207.490

529.487

289.285

Total borrowings

207.490

529.487

289.285

Debt/Equity ratio

0.128

0.318

0.167

 

 

 

 

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

915.983

974.577

1252.705

 

 

6.397

28.538

 

 

 

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

915.983

974.577

1252.705

Profit

85.219

84.915

99.963

 

9.30%

8.71%

7.98%

 

 

 

 

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

No

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

No

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)

No

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

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

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

 

 

NATURE OF OPERATIONS

 

 “Parent Company” or the “The Company”, a public limited company, together with its subsidiaries joint venture and associates (hereinafter collectively referred to as the “Group”) operates as a manufacturer of diamond studded Gold, Platinum and Silver Jewellery. The business includes entire chain of marketing, production and distribution of Jewellery all over the world.

 

The Parent Company’s shares are listed for trading on the Bombay Stock Exchange Limited and National Stock

Exchange of India Limited.

 

 

OPERATIONS

 

The operations of the Company have shown improvement as compared to the previous year. The Company has achieved a turnover of Rs.1252.705 Million during the year under report as compared to Rs.974.577 Million during the previous year reflecting a growth of 28.54% over the previous year. The net profit of the company increased by 17.72% from Rs.84.915 to Rs.99.963 Million in the current year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS:

 

The gems and jewellery industry occupies an important position in Indian economy. It is one of the oldest industries in the world and has gone through a transition in the last decade and also a leading foreign exchange earner and also one of the fastest growing industries in the country. The major two segments of the sector in India are gold Jewellery and diamond and this sector is further engaged in sourcing, manufacturing, and processing, which involves cutting, polishing and selling precious gemstone and metals such as diamonds, other precious stones, gold, silver and platinum. Geographically, the US 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. Italy is also one of the world´s largest jewellery fabrication centre. 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.

 

According to the Gem and Jewellery Export Promotion Council (GJEPC) the Indian Gems and Jewellery section for the F.Y 2013-2014 has contributed US$ 34,746.90 million to India's foreign exchange earnings, with a decline of 11 percent as compared to the last year figures. The financial year 2013- 14 saw an increase of 12.65 percent in export of cut and polished diamonds with figures of US$ 19,635 million. The industry also saw an increase of 11.98 percent in imports of rough diamonds with figures of US$ 1,6716 million indicating an increase in cutting, polishing and other manufacturing activities in India. The export of gold jewellery and Gold medallions together for the period April 2013-14 was at US$ 11,045.92 million which shows a decline of 39.50 percent. This was mainly due to the non-availability of the gold limiting the extent of trade for many of the Indian players. The average price for exported gold was lower than previous year adding to the woes of the industry that took a hit and closed at a negative of 11 percent. The coloured gemstones export also dropped by 20.10 percent in this year with figures of US$ 519 million. The Silver jewellery exports had a significant increase by 58.57 percent with figures of US$ 1460 million. Key exporting destinations for Gems and Jewellery in 2013-14 were UAE with 35% of exports valued at US$ 12,195.34 followed by Hong Kong that stood at 28% with value of US$ 9,790.45 and USA at 14% with export value of US$ 4,948.92.

 

 

SEGMENT-WISE PERFORMANCE

 

The Company has two segments viz. jewellery manufacturing and investment activity. The Company has achieved a turnover of Rs. 1274.317 Million in the jewellery segment and of Rs. 41.369 Million in investment activities.

 

OUTLOOK:

 

The outlook for the Gems and Jewellery Industry looks positive. As the Company is always strive for increasing its sales and profit, in coming F.Y 2014-2015 also it will strive for increasing its export by 10 To 20%.

 

 

FINANCIAL PERFORMANCE

 

The resurgence of the global economies and the persistent efforts of the Company to sustain its trade relations besides expanding its base to other markets have helped the Company to show a considerable improvement in its performance during the year as compared to the previous year. The Company has achieved a turnover of Rs.1252.705 Million during the year as compared to Rs.974.577 Million during the previous year reflecting a growth of 28.54% over the previous year. The profit of the Company has increased from Rs.84.915 Million to Rs.99.963 Million.

 

The consolidated turnover of the Company, its Subsidiaries and Joint Ventures has increased from Rs.2656.665 Million in the previous year to Rs.3138.396 Million during the year recording a growth of 18.13%. The consolidated net profit after tax and minority interest and profit and loss on disposal of subsidiary has decreased from Rs.186.596 Million in the previous year to Rs.170.704 Million in the year registering decline growth of 8.52%.

 

 

CONTINGENT LIABILITIES (AS ON 31.03.2014)

 

a) The Company has outstanding performance guarantee of `1591.50 lakhs as on the Balance Sheet date, executed in favour of Deputy Commissioner of Customs (Previous Year `1591.50lakhs).

 

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.

 

 

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2014

 

(Rs. in Million)

 

Sr.

No.

Particular

Quarter Ended

Nine Months Ended

31.12.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014

(Unaudited)

1.

Income from Operations

 

 

 

 

Net Sales / Income from operations (Net of Excise Duty)

344.949

307.613

939.649

 

Other Operating Income

0.000

0.000

0.000

 

Total Income from operations (net)

344.949

307.613

939.649

 

 

 

 

 

2.

Expenses

 

 

 

 

a)     Cost of Material Consumed  

299.058

214.639

730.964

 

b)    Purchase in Stock In Trade

0.650

20.492

40.976

 

c)     Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade

(9.686)

14.528

1.470

 

d)    Employee Benefits Expenses

4.380

5.068

14.057

 

e)     Depreciation and Amortisation Expense

5.251

4.490

18.067

 

f)     Other Expenses

26.369

28.823

83.069

 

Total

326.022

288.040

888.603

3.

Profit/(Loss) From Operations before Other Income, Finance Costs and Exceptional Items (1-2)

18.927

19.573

51.047

4.

Other Income

(34.969)

76.487

46.688

5.

Profit/(Loss) from Ordinary Activities before Finance Costs and Exceptional Item (3+/-4)

(16.043)

96.060

97.735

6.

Finance Costs

1.861

1.280

4.470

7.

Profit/(Loss) from Ordinary Activities after Finance Costs but before Exceptional Items (5+/-6)

(17.903)

94.781

93.264

8.

Exceptional Items

 

 

 

 

Profit on sale of Assets

--

--

--

9.

Profit/(Loss) fit from Ordinary Activities before Tax (7+/-8)

(17.903)

94.781

93.264

10.

Tax Expense

(4.059)

23.043

21.613

11.

Net Profit/(Loss) from Ordinary Activities after Tax (9+/-10)

(13.844)

71.737

71.651

12.

Extraordinary Item (net of expense Rs. Nil Million)

--

--

--

13.

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

(13.844)

71.737

71.651

14.

Share of Profit / (loss) of Associates

--

--

--

15.

Disposal in the stake of subsidiary

--

--

--

16.

Minority interest

--

--

--

17

Net Profit/(loss) after taxes, minority interest and share of profit / (loss) of associates (13+/-14+/-15)

(13.844)

71.737

71.651

18.

Paid-up Equity Share Capital (Face Value of the Share shall be indicated)

249.460

249.460

 

249.460

19.

Reserves Excluding Revaluation Reserves as per  Balance Sheet of Previous Accounting Years

 

 

 

--

20. i

Earnings per share (Before Extraordinary Items) (of Rs. Nil each) (Not Annualised) :

 

 

 

 

a) Basic

(0.55)

3.18

3.18

 

b) Diluted

(0.55)

3.18

3.18

 

 

 

 

 

20. ii

Earnings per share (After Extraordinary Items) (of Rs. Nil each) (Not Annualised) :

 

 

 

 

a) Basic

(0.55)

3.18

3.18

 

b) Diluted

(0.55)

3.18

3.18

 

 

 

 

 

17.

Public Shareholding

 

 

 

 

-Number of Shares

10747896

10747896

10747896

 

- Percentage of Shareholding

43.08

43.08

43.08

18.

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

Nil

Nil

Nil

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

Nil

Nil

Nil

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

Nil

Nil

Nil

 

b) Non Encumbered

 

 

 

 

- Number of Shares

14198100

14198100

14198100

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

100.00

100.00

100.00

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

56.92

56.92

56.92

 

INVESTOR COMPLAINTS (Nos.)

Quarter Ended on

31.12.2014

Pending at the beginning of the quarter

Nil

Received during the quarter

4

Disposed of during the quarter

4

Remaining unresolved at the end of the quarter

Nil

 

NOTE

 

1. The above Unaudited results for the quarter ended 31st December, 2014 have been subjected to "Limited Review" by the Statutory Auditors of the Company and have been reviewed by the Audit Committee and were approved and taken on record by the Board of Directors of the Company at its meeting held on February 12, 2015.

 

2. Consolidated financial statements of the Company, its subsidiaries and Joint ventures have been prepared in accordance with Accounting Standards on Consolidated Financial Statements (AS 21) and Financial Reporting of Interests in Joint venture (AS-27) issued by The Institute of Chartered Accountants of India.

 

3. Effective from April 0l, 2014,the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act 2013. Due to above depreciation charge for the period ended December 31, 2014 is higher by Rs. 3.291 Million, and in the case of consolidated results Rs. 5.127 Million. Further, based on transitional provision provided in Note 7(b) of Schedule II an amount of Rs. 0.642 Million (net of Deferred Tax) has been adjusted with the retained earnings, and in the case of consolidated results Rs. 2.685 Million.

 

4. Depreciation for the period ended on December 31, 2014, includes impairment loss of Rs. 2.762 Million and Rs. 2.781 Million for the consolidated results.

 

5. Tax Expenses includes Current Tax & Deferred Tax for the quarter & period ended on 31st December, 2014.

 

6. The figures of previous periods are regrouped / rearranged wherever considered necessary to correspond with current period presentation.

 

7. The figures in Rs. Million are rounded off to two decimals.



SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT

 

(Rs. in Million)

 

Sr.

No.

PARTICULARS

Quarter Ended

Nine Months Ended

31.12.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014

(Unaudited)

A.

Primary Segment

 

 

 

1

Segment Revenue 

 

 

 

 

a)     Jewellery

349.080

315.921

952.538

 

b)    Investment

(38.966)

68.132

33.799

 

Total

310.114

384.053

986.337

 

Less: Inter Segment Revenue

--

--

--

 

Net sales/ Income from operation

310.114

384.053

986.337

 

 

 

 

 

2

Segment Results

 

 

 

 

Profit/ (loss) before tax and interest

 

 

 

 

a)     Jewellery

23.849

28.487

67.239

 

b)    Investment

(39.329)

67.947

32.720

 

Total

(15.480)

96.434

99.959

 

 

 

 

 

 

Less: Interest

1.860

1.280

4.470

 

Other un-allocable expenditure (Net)

0.562

0.373

2.224

 

 

 

 

 

 

Total Profit Before Tax

(17.903)

94.781

93.264

 

 

 

 

 

3

Capital Employed

 

 

 

 

a)     Jewellery

592.916

796.102

592.916

 

b)    Investment

1172.423

1024.595

1172.423

 

c)     Unallocated Assets / (Liabilities)

44.142

2.629

44.142

 

Total

1809.481

1823.326

1809.481

 

 

 

 

 

B

Secondary Segment

 

 

 

1

Segment Revenue

 

 

 

 

Within India

0.126

0.594

1.710

 

Exports outside India

23.723

27.893

65.529

 

Total Revenue

23.849

28.487

67.239

 

 

 

 

 

2

Segment Assets

 

 

 

 

Within India

18.292

28.130

18.292

 

Exports outside India

1367.706

1391.503

1367.706

 

Total Assets

1385.998

1419.633

1385.998

 

 

 

 

 

3

Segment Liabilities

 

 

 

 

Within India

--

---

---

 

Exports outside India

793.082

623.532

793.082

 

Total Liabilities

793.082

623.532

793.082

 

1.     The company has identified two reportable segments viz, Jewellery manufacturing and investment activity. segment have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems.

 

2.     The company has identified geographic segments as its secondary segments. geographic segments of the company are mainly local market in India and exports out of India.

 

3.     The capital employed in the respective segments is worked out after considering the operating assets and liabilities that are directly attributable to the segment as well as allocated to the segments on a reasonable basis.

 

 

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 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.64.20

UK Pound

1

Rs.100.03

Euro

1

Rs.71.91

 

 

INFORMATION DETAILS

 

Information Gathered by :

MNJ

 

 

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

--PROFITABILIRY

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.