MIRA INFORM REPORT
|
Report No. : |
325356 |
|
Report Date : |
30.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ AND COMPANY LIMITED |
|
|
|
|
Registered
Office : |
405, Dharam Palace, 100-103, N S Patkar Marg, Mumbai - 400007,
Maharashtra |
|
Tel. No.: |
91-22-66373500 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
13.04.1982 |
|
|
|
|
Com. Reg. No.: |
11-026903 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 385.820 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1982PLC026903 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS38907B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS0690P |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. Company’s Shares are Listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing,
and processing, which involves cutting, polishing and selling of precious
gemstones and metals such as diamonds, other precious stones, diamond
studded gold, silver and platinum jewellery. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 20380000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is old established company incorporated in the year 1982 and
is having satisfactory track record. From the financial 2015, company have achieved total income of Rs.
2711.8 crore and reported 7.33% topline growth. And company have reported
fair profitability margin from its operations. Rating continues to derive strength from the experience, resourcefulness
and track record of the promoters in the Gems and Jewellery (G & J)
industry and well diversified presence across the globe. However, trade relations are fair. Business is active and payments are
reported to be usually correct. In view of consistent growth in its operation, the company can be
considered for business dealings with usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
17.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
17.10.2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 DECLINED
MANAGEMENT NON CO-OPERATIVE
Tel No.:91-22-66373500/ 67897788
LOCATIONS
|
Registered Office : |
405, Dharam Palace, 100-103, N S Patkar Marg, Mumbai - 400007,
Maharashtra, India |
|
Tel. No.: |
91-22-66373500/ 67897788 |
|
Fax No.: |
91-22-2363 2982 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
HW 7011-13, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai - 400
051, Maharashtra, India |
|
Tel. No.: |
91-22-6789 7788 |
|
Fax No.: |
91-22-2675 5800 |
|
E-Mail : |
|
|
|
|
|
Factories : |
Located at: ·
Opera
House ·
Tardeo ·
Sona
Udyog (Andheri) ·
MIDC
(Andheri) ·
Seepz
(Andheri - Mumbai) · Patna (Bihar) · South Africa & Botswana |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Nihar N. Parikh |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
46 Years |
|
Qualification : |
B. Com |
|
Experience : |
22 Years |
|
Date of Appointment : |
01.10.1992 |
|
|
|
|
Name : |
Mr. Keki M. Mistry |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Dr. B.R. Barwale |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. S. A. Dave |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S. S. Thakur |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Suresh N. Talwar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Minoo R. Shroff |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. H.E. Festus G. Mogae |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Shreyas K. Doshi |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
F. Y. Science |
|
Experience : |
44 Years |
|
Date of Appointment : |
13.04.1982 |
|
|
|
|
Name : |
Mr. Vishal S. Doshi |
|
Designation : |
Group Executive Director |
|
Date of Birth/Age : |
35 Years |
|
Qualification : |
B. Com |
|
Experience : |
35 Years |
|
Date of Appointment : |
01.09.2001 |
KEY EXECUTIVES
|
Name : |
Mr. Kirtilal K. Doshi |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Vishal S. Doshi |
|
Designation : |
Group Executive Director |
|
|
|
|
Name : |
Mr. Sanjay M. |
|
Designation : |
Chief Compliance Officer and Company Secretary |
|
|
|
|
Name : |
Shridhar J. Sawant |
|
Designation : |
Group Chief Financial Officer |
|
|
|
|
Name : |
Mr. Vishal S. Doshi |
|
Designation : |
Group Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2015
|
Category |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
72480234 |
37.57 |
|
|
32250218 |
16.72 |
|
|
104730452 |
54.29 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
104730452 |
54.29 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
13334 |
0.01 |
|
|
10218090 |
5.30 |
|
|
31392102 |
16.27 |
|
|
5910 |
0.00 |
|
|
5910 |
0.00 |
|
|
41629436 |
21.58 |
|
|
|
|
|
|
23314356 |
12.09 |
|
|
|
|
|
|
8164827 |
4.23 |
|
|
7659870 |
3.97 |
|
|
7408317 |
3.84 |
|
|
2776951 |
1.44 |
|
|
3365412 |
1.74 |
|
|
779329 |
0.40 |
|
|
442475 |
0.23 |
|
|
39200 |
0.02 |
|
|
4950 |
0.00 |
|
|
46547370 |
24.13 |
|
Total Public shareholding (B) |
88176806 |
45.71 |
|
Total (A)+(B) |
192907258 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
192907258 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing,
and processing, which involves cutting, polishing and selling of precious gemstones
and metals such as diamonds, other precious stones, diamond studded
gold, silver and platinum jewellery. |
|
|
|
|
Brand Names : |
· Arisia · Bhavya · Caro74 · Fiana · Hot diamonds · Lavanya · Lorenzo · Lumé · Mastercut · Sveni · Syntila88 · Trapz · Valina |
|
|
|
|
Agencies Held : |
-- |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
· Andhra Bank · Allahabad Bank · Bank of India · Bank of Baroda · Central Bank of India · Corporation Bank · Export Import Bank of India · ICICI Bank Limited · IDBI Bank Limited. · Karnataka Bank Limited · Oriental Bank of Commerce · Punjab National Bank · Standard Chartered Bank · State Bank of Hyderabad · State Bank of India · State Bank of Patiala · Syndicate Bank · Union Bank of India · Vijaya Bank |
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Facilities : |
|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Rajendra and Company Chartered Accountants |
|
|
|
|
Solicitors : |
|
|
|
Talwar Thakore and Associates Advocates and Solicitors |
|
Address : |
3rd Floor, Kalpataru Heritage, 127, M. G. Road, Fort, Mumbai - 400 001, Maharashtra, India |
|
|
|
|
Associates (AS ON 31.03.2014): |
· Kiara Jewellery Private Limited · Arisia Jewellery Private Limited · Jomard SAS · SWA Trading Limited · Copem and Shrenuj · Trapz, LLC · SHL Gems and Jewellery Limited · K. K. Doshi and Co. · Shrenuj Investments and Finance Private Limited · Prest Impex Private Limited |
|
|
|
|
Subsidiaries (AS ON 31.03.2014):
: |
· Bernies International, LLC · Ithemba Diamonds (Pty) Limited · Uxolo Diamond Cutting Works (Pty) Limited |
|
|
|
|
Wholly owned
subsidiary (AS ON 31.03.2014): |
· Shrenuj Lifestyle Limited · Shrenuj Overseas Ltd · Shrenuj DMCC · Shrenuj Japan Corporation · Shrenuj (Mauritius) Private Limited · Shrenuj Jewellery (Far East) Limited · Shrenuj Botswana (Pty.) Limited · Shrenuj South Africa (Pty) Limited · Shrenuj N.V. · Shrenuj GmbH · Shrenuj Australia Pty. Limited · Lume Group AG · Astral USA, INC. · Shrenuj USA, LLC · Astral Jewels LLC · Astral Holding INC · Alija International Pty Limited · Global Marine Diamonds Company · Simon Golub and Sons INC · Daily Jewellery Ltd.Hong Kong · Intergems H.K. Limited · Shrenuj Shanghai Diamonds Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital : Rs. 450.000 Million
Issued, Subscribed & Paid-up Capital : Rs. 385.820
Million
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
225,000,000 |
Equity shares |
Rs. 2/- each |
Rs. 450.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
96,453,629 |
Equity shares |
Rs. 2/- each |
Rs. 192.910
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
385.820 |
192.910 |
192.910 |
|
(b) Reserves & Surplus |
6747.050 |
6766.710 |
6501.280 |
|
(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) |
7132.870 |
6959.620 |
6694.190 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
2483.750 |
2197.950 |
2011.670 |
|
(b) Deferred tax liabilities (Net) |
64.190 |
96.860 |
91.860 |
|
(c)
Other long term liabilities |
0.860 |
2.390 |
1.290 |
|
(d)
long-term provisions |
75.360 |
68.600 |
31.660 |
|
Total
Non-current Liabilities (3) |
2624.160 |
2365.800 |
2136.480 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
13274.620 |
13155.430 |
12389.560 |
|
(b)
Trade payables |
10285.530 |
13691.510 |
11122.890 |
|
(c)
Other current liabilities |
1199.220 |
597.530 |
372.820 |
|
(d)
Short-term provisions |
154.790 |
211.820 |
179.630 |
|
Total
Current Liabilities (4) |
24914.160 |
27656.290 |
24064.900 |
|
|
|
|
|
|
TOTAL |
34671.190 |
36981.710 |
32895.570 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2326.890 |
2495.680 |
2510.020 |
|
(ii)
Intangible Assets |
0.000 |
9.870 |
15.720 |
|
(iii)
Capital work-in-progress |
0.000 |
2.570 |
13.570 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
1163.090 |
1163.090 |
1163.090 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
1775.030 |
1708.330 |
1632.100 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
5265.010 |
5379.540 |
5334.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.030 |
0.030 |
0.150 |
|
(b)
Inventories |
16107.310 |
16429.360 |
13771.530 |
|
(c)
Trade receivables |
12166.750 |
13997.120 |
12516.580 |
|
(d)
Cash and cash equivalents |
472.620 |
600.530 |
758.460 |
|
(e)
Short-term loans and advances |
659.470 |
575.130 |
514.350 |
|
(f)
Other current assets |
|
|
|
|
Total
Current Assets |
29406.180 |
31602.170 |
27561.070 |
|
|
|
|
|
|
TOTAL |
34671.190 |
36981.710 |
32895.570 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
27118.830 |
25265.820 |
22392.980 |
|
|
|
Other Income |
3.000 |
10.820 |
8.620 |
|
|
|
TOTAL (A) |
27121.830 |
25276.640 |
22401.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
21472.440 |
16706.840 |
13864.880 |
|
|
|
Purchases of Stock-in-Trade |
2624.180 |
9050.940 |
8013.350 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
165.070 |
-3351.480 |
-2286.460 |
|
|
|
Employees benefits expense |
402.110 |
408.600 |
378.060 |
|
|
|
Other expenses |
977.430 |
947.880 |
966.090 |
|
|
|
TOTAL (B) |
25641.230 |
23762.780 |
20935.920 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
21472.440 |
16706.840 |
13864.880 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1033.630 |
954.030 |
1005.190 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
446.970 |
559.830 |
460.490 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
132.460 |
66.720 |
63.010 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
314.510 |
493.110 |
397.480 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
109.030 |
141.720 |
92.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
205.480 |
351.390 |
304.980 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
|
|
3,913.660 |
4,608.090 |
|
|
|
Stock in Trade |
|
673.870 |
724.780 |
|
|
|
Finished goods |
|
11,832.420 |
8,430.030 |
|
|
|
Stores, Spares etc. |
|
9.410 |
8.630 |
|
|
TOTAL IMPORTS |
NA |
16,429.360 |
13,771.530 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
Basic |
1.07 |
3.64 |
3.97 |
|
|
|
Diluted |
1.07 |
3.64 |
3.97 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current Maturities of Long term debt |
|
|
|
|
Term Loan from Banks |
|
51.070 |
3.800 |
|
Term Loan from a company |
|
0.860 |
0.930 |
|
Total |
NA |
51.930 |
4.730 |
|
|
|
|
|
|
Cash generated from operations |
NA |
414.950 |
(1,549.380) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
PAT / Total Income |
(%) |
0.76 |
1.39 |
1.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.46 |
5.99 |
6.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.94 |
1.38 |
1.25 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.07 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.21 |
2.21 |
2.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.18 |
1.14 |
1.15 |
Total Liability = Short-term Debt + Long-term Debt + Current Maturities
of Long-term debts
STOCK
PRICES
|
Face Value |
Rs.2/- |
|
|
|
|
Market Value |
Rs.36.90/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
192.910 |
192.910 |
385.820 |
|
Reserves & Surplus |
6501.280 |
6766.710 |
6747.050 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
6694.190 |
6959.620 |
7132.870 |
|
|
|
|
|
|
Long-term borrowings |
2011.670 |
2197.950 |
2483.750 |
|
Short term borrowings |
12389.560 |
13155.430 |
13274.620 |
|
CURRENT MATURITIES OF
LONG-TERM DEBTS |
4.730 |
51.930 |
0.000 |
|
Total
borrowings |
14405.960 |
15405.310 |
15758.370 |
|
Debt/Equity
ratio |
2.152 |
2.214 |
2.209 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2033 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
22392.980 |
25265.820 |
27118.830 |
|
|
|
12.829 |
7.334 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
22392.980 |
25265.820 |
27118.830 |
|
Profit |
304.980 |
351.390 |
205.480 |
|
|
1.36% |
1.39% |
0.76% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
DIAMOND INDUSTRY – INDIA
-
From
time immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement
of the Indian diamond industry was possible only due to combination of the
manufacturing skills of the Indian workforce and the untiring and unflagging
efforts of the Indian diamantaires, supported by progressive Government
policies.
-
The
area of study of family owned diamond businesses derives its importance from
the huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
-
Gem
& 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 |
10558306 |
30/03/2015 |
937,950,000.00 |
EXPORT-
IMPORT BANK OF INDIA |
CENTRE
ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE, |
C48506109 |
|
2 |
10544498 |
01/01/2015 |
100,000,000.00 |
PUNJAB
NATIONAL BANK |
SEEPZ
BRANCH, ANDHERI - EAST, MUMBAI -
400096, MAHARASHTRA |
C41169939 |
|
3 |
10534875 |
17/11/2014 |
72,000,000.00 |
VIJAYA
BANK |
OVERSEAS
BRANCH,, MAKER CHAMBER IV, NARIMAN POINT |
C35943422 |
|
4 |
10515061 |
19/07/2014 |
50,000,000.00 |
UNION
BANK OF INDIA |
MUMBAI
SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMACH |
C16497604 |
|
5 |
10488984 |
12/04/2014 |
300,000,000.00 |
BANK OF
BARODA |
BANK OF
BARODA, 122, SHEIKH MEMON STREET, TRISHLA |
C03051158 |
|
6 |
10480636 |
17/02/2014 |
870,215.00 |
SARASWAT
CO-OPERATIVE BANK LIMITED |
LAXMAN
ZULLA, 1ST FLOOR,, 50, RANADE ROAD, DADAR, |
B97607543 |
|
7 |
10475847 |
27/01/2014 |
1,616,699.00 |
SARASWAT
CO-OPERATIVE BANK LIMITED |
LAXMAN ZULLA,
1ST FLOOR,, 50, RANADE ROAD, DADAR, |
B95591012 |
|
8 |
10467801 |
21/12/2013 |
170,000,000.00 |
UNION
BANK OF INDIA |
MUMBAI
SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMACH |
B92598143 |
|
9 |
10459206 |
21/10/2013 |
200,000,000.00 |
BANK OF
INDIA |
BHARAT
DIAMOND BOURSE BRANCH, BANDRA KURLA COMPLE |
B89143853 |
|
10 |
10456377 |
07/10/2013 |
1,066,082.00 |
SARASWAT
CO-OPERATIVE BANK LIMITED |
LAXMAN
ZULLA, 1ST FLOOR,, 50, RANADE ROAD, DADAR, |
B88086020 |
|
11 |
10456700 |
30/09/2013 |
752,838.00 |
SARASWAT
CO-OPERATIVE BANK LIMITED |
LAXMAN
ZULLA, 1ST FLOOR,, 50, RANADE ROAD, DADAR, |
B88194261 |
|
12 |
10432531 |
06/06/2013 |
1,000,000.00 |
SARASWAT
CO-OPERATIVE BANK LIMITED |
LAXMAN
ZULLA, 1ST FLOOR,, 50, RANADE ROAD, DADAR, |
B77699031 |
|
13 |
10406081 |
08/02/2013 |
1,120,000,000.00 |
ICICI
BANK LIMITED |
ICICI
BANK, JMC HOUSE, OPP PARIMAL GARDENS, AMBAW |
B68547991 |
|
14 |
10255856 |
15/03/2011
* |
341,550,000.00 |
EXPORT
IMPORT BANK OF INDIA |
FLOOR
21, CENTRE ONE BUILDING, WORLD TRADE CENTRE |
B08457988 |
|
15 |
10042627 |
30/03/2007 |
600,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA (EXIM BANK) |
CENTRE
ONE BUILDING, FLOOR 21,, WORLD TRADE CENTR |
A12827051 |
|
16 |
10008561 |
16/12/2013
* |
15,110,000,000.00 |
BANK OF
INDIA |
BHARAT DIAMOND
BOURSE BRANCH, BANDRA KURLA COMPLE |
B93078780 |
|
17 |
90187118 |
30/09/2013
* |
15,110,000,000.00 |
BANK OF
INDIA |
BHARAT
DIAMOND BOURSE BRANCH, BANDRA KURLA COMPLE |
B87358156 |
UNSECURED LOANS
|
PARTICULARS |
31.03.2014 (Rs.
In Million) |
31.03.2013 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
From Directors |
241.170 |
251.520 |
|
Inter Corporate Deposits (from Companies under same management) |
770.200 |
672.000 |
|
Loans and Advances from Share Holders |
33.500 |
0.000 |
|
SHORT TERM BORROWINGS |
|
|
|
From Related
parties |
|
|
|
Shareholders |
1.700 |
18.000 |
|
Inter Corporate Deposits |
0.000 |
80.800 |
|
Fixed
Deposits |
17.000 |
23.500 |
|
|
|
|
|
Total |
1063.570 |
1045.820 |
OUTLOOK [AS ON
31.03.2014]
The overall economic situation is now
brightened. The pickup is slow but the prices remain firm and the demand for
larger sized diamonds is showing a positive upward trend. The prices of
superior quality diamonds have plateaued but we expect the demand to improve.
The sentiments in EU have improved resulting in higher demand. The US market is
expected to perform well during the year. Demand in India is again on the rise
and is likely to maintain an upward trend. Markets in Japan and China will
continue to perform well during the year. Sales of jewellery products will be
affected due to merger of large format retailers in the US. However, it will be
compensated by higher growth in other regions. The demand in the lower priced
jewellery is expected to rise at a higher rate, with improvement in margins as
well.
ECONOMIC
SCENARIO AND OUTLOOK [AS ON 31.03.2014]
The year witnessed divergent growth globally, led by strengthening of the US economy, uneven and subdued growth in the Euro area and Japan, coupled with a slowdown in developing & emerging markets.
In the Domestic Market, growth continued to be muted with the second successive year of sub 5% GDP growth. The year saw steep currency depreciation in an environment where industrial activity remained in contraction mode, consumption demand continued to weaken, while lackluster capital goods production pointed to stalled investment demand.
With sluggish growth across the larger
economy, further compounded by high consumer inflation and weak sentiment, market growth across luxury
products moderated throughout the year in both volume and value terms. The
discretionary categories and premium segments were particularly under pressure.
The operating context for the year was challenging, given the backdrop of a
market slowdown, a volatile input cost environment and heightened competitive
intensity.
The Company’s performance for the year 2013-14 has to be viewed in the context of aforesaid economic and market environment.
The long term prospects for the diamonds and jewellery market remain positive. To meet the continuing expansion in growth and demand, the Company continues to invest in strengthening its manufacturing and marketing infrastructure.
High
cost of borrowing and delays in securing government approvals have dampened
corporate investments while high
inflation has impacted consumer confidence resulting in reduced spending. Domestic
demand is likely to revive this fiscal year but the recovery will remain week
so long as investment demand does not pickup. With a clear mandate to
the Government in place, a strong revival is anticipated in the Indian market.
FIXED ASSETS:
· Buildings
· Plant & Equipment
· Office Equipment’s
· Furniture and Fixtures
· Vehicles
· Computer
· Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.97.80 |
|
Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ARC |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
50 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.