MIRA INFORM REPORT

 

 

Report No. :

344189

Report Date :

08.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MONA GEMS

 

 

Registered Office :

507, Millenium Trade Centre, Thobha Sheri, Mahidharpura, Surat – 395003, Gujarat

Mobile No.:

91-9321670026 [Mr. Bhagchand Jain]

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Year of Establishment :

May 2006

 

 

Capital Investment :

Rs. 0.745 Million

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Hindu Undivided Family [HUF]

 

 

Line of Business :

Trader, Exporter and Importer of Diamonds.

 

 

No. of Employees :

6 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established Hindu Undivided Family started in the year 2006 having moderate track record.

 

It is engaged in the business as trading, exporting and importing of diamonds.

 

The rating takes into consideration firm low profit margin and risk associated with diamond industry.

 

Trade relations are reported as fair. Business is active. Payments are reported as slow but correct.

 

The HUF can be considered for business dealings with some caution.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – 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

 

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 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Bhagchand Jain

Designation :

Karta

Contact No.:

91-9321670026

Date :

06.10.2015

 

 

LOCATIONS

 

Registered Office :

507, Millenium Trade Centre, Thobha Sheri, Mahidharpura, Surat – 395003, Gujarat, India

Tel. No.:

Not Available

Mobile No.:

91-9321670026 [Mr. Bhagchand Jain]

Fax No.:

Not Available

E-Mail :

bcjain007@gmail.com

Area :

350 Sq. ft.

Location :

Owned

Locality :

Commercial

 

 

MEMBERS

 

Name :

Mr. Bhagchand Jain

Designation :

Karta

 

 

Name :

Mrs. Sheela Jain

Designation :

Member

 

 

Name :

Master Aksh Jain

Designation :

Member

 

 

BUSINESS DETAILS

 

Line of Business :

Trader, Exporter and Importer of Diamonds.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

 

Products :

Polished Diamonds

Countries :

·         Israel

·         Bangkok

 

 

Imports :

 

Products :

Rough Diamonds

Countries :

Belgium

 

 

Terms :

 

Selling :

Cash, Cheque and Credit [30 Days, 60 Days and 90 Days]

 

 

Purchasing :

Cash, Cheque and Credit [30 Days, 60 Days and 90 Days]

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

B Mahesh and Company

Name of the Person (Designation):

Mr. Bharatbhai [Partner ]

Contact Number:

91-9825134021

Since how long known:

7 Years

Maximum limit dealt:

--

Experience:

Payment Behaviour = Excellent

Market Goodwill = Excellent

Overall = Excellent

Remark

As claimed by Mr. Bharatbhai [Partner] that he is fully satisfied with subject company.

 

 

Customers :

End Users

 

Reference:

Chandan Gems

Name of the Person (Designation):

Mr. Sanad [Partner]

Contact Number:

91-22-23634315

Since how long known:

5 Years

Maximum limit dealt:

--

Experience:

Product Quality = Good

Delivery Behaviour = Excellent

Overall = Excellent

Remark

As claimed by Mr. Sanad (Partner) that he is satisfied with subject company.

 

 

No. of Employees :

6 (Approximately)

 

 

Bankers :

Bank Name:

Axis Bank Limited

Branch:

Millennium Trade Centre, Surat, Gujarat, India

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 A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks: Not Divulged

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Gohil and Associates

Chartered Accountants

Address :

Surat, Gujarat, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Related Party :

Aksh Diamonds Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Capital Investment :

 

Owned :

Rs. 0.745 Million

Borrowed :

--

Total :

Rs. 0.745 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

PARTICULARS

 

 

 

31.03.2015

Sales Turnover (Approximately)

 

 

2000.000

 

 

 

[Due to more orders]

 

The above information has been parted by Mr. Bhagchand Jain (Karta)

 

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2014

31.03.2013

SHAREHOLDERS FUNDS

 

 

 

1] Capital

 

0.745

0.486

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

0.745

0.486

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

0.000

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

0.745

0.486

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.000

0.001

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

2.468

2.468

 

Sundry Debtors
 

495.466

392.030

 

Cash & Bank Balances
 

6.117

2.559

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

10.178

12.058

Total Current Assets
 

514.229

409.115

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 

 

Other Current Liabilities
 

 

 

 

Provisions
 

 

 

Total Current Liabilities
 

513.484

408.630

Net Current Assets
 

0.745

0.485

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

0.745

0.486

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

 

2079.328

1506.472

 

 

Other Income

 

0.953

0.780

 

 

TOTAL                                    

 

2080.281

1507.252

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods sold

 

2039.528

1495.273

 

 

Selling and Administrative Expenses

 

40.169

11.620

 

 

TOTAL                                    

 

2079.697

1506.893

 

 

 

 

 

 

PROFIT BEFORE DEPRECIATION AND AMORTISATION

 

0.584

0.359

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

0.000

0.001

 

 

 

 

 

 

NET PROFIT

 

0.584

0.358

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)
 

0.03

0.02

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

0.11

0.09

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.78

0.74

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.00

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.00

1.00

 

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particulars

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

Capital

0.486

0.745

Reserves & Surplus

0.000

0.000

Net worth

0.486

0.745

 

 

 

Secured Loans

0.000

0.000

Unsecured Loans

0.000

0.000

Total borrowings

0.000

0.000

Debt/Equity ratio

0.000

0.000

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

 

1506.472

 

2079.328

 

2000.000 [Gross]

 

 

38.026

(3.815)

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

Sales

1506.472

2079.328

Profit

0.358

0.584

 

0.02%

0.03%

 


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

Yes

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

No

10

Date of Birth of Proprietor / Partners / Directors

No

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)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

Yes

19

Major customers

Yes

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

Yes

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%

Yes

28

Estimation for coming financial year

No

29

Profitability for last two years

Yes

30

Major shareholders, if available

No

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

DIAMOND INDUSTRY – INDIA

 

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

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

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

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

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

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

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

 

-            Gem & 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.

 

 

 

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         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. 65.26

UK Pound

1

Rs. 99.53

Euro

1

Rs. 73.47

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILITY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

28

 

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.