MIRA INFORM REPORT

 

 

Report No. :

341132

Report Date :

15.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIVAM JEWELS

 

 

Registered Office :

EC– 4030, BDB, BKC – Bandra East, Mumbai – 400051, Maharashtra

 

 

Tel. No.:

91-22-40203333

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.06.2013

 

 

Capital Investment / Paid-up Capital :

Rs.142.170 Million

 

 

IEC No.:

Not Available

 

 

TIN No.:

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Partnership Concern with an unlimited liability of the partners

 

 

Line of Business :

Manufacturer, Exporter and Importer of Real Diamonds.

 

 

No. of Employees :

564 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

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 a relatively newly formed partnership concern, established in the year 2013. It is the manufacturer, exporter and importer of real diamonds. It has a satisfactory track record.

 

Mr. Durgesh from accounts department has provided all the details and informed that the company has achieved healthy sales turnover. The concern has is performing well in the initial performing years. It has achieved a turnover of Rs.5130.000 Million in the year 2015.

 

Trade relations are reported as fair. Business is active. Payments terms are usually correct.

 

The concern can be consider for business dealings at usual trade terms and conditions.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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. Durgesh

Designation :

Accounts Manager

Contact No.:

91-22-40203333

Date :

12.09.2015

 

 

LOCATIONS

 

Registered Office :

EC– 4030, BDB, BKC – (Bandra) East, Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-40203333

Mobile No.:

91-9820025325 (Mr. Ghanshyam)

Fax No.:

91-22-40203300

E-Mail :

accounts@shivamjewels.in

Website :

www.shivamjewels.in

Location :

Rented

Locality :

Commercial

 

 

Factory :

164, Pramukh Darshan Apartment, Opposite Community hall, Vasta Devdi Road, Katargaam, Surat – 395004, Gujarat, India

Fax No.:

91-261-2531801

E-Mail :

surat@shivamjewels.in

Area :

24,000 Sq. ft.

Location :

Owned

 

 

 

PARTNERS

 

Name :

Mr. Ghanshyam Shankar

Designation :

Partner

Date of Birth/Age :

01.06.1963

Qualification :

B Com

 

 

Name :

Mr. Ashwin Shankar

Designation :

Partner

Date of Birth/Age :

23.11.1982

Qualification :

B Com

 

 

Name :

Mr. Nikunj Shankar

Designation :

Partner

Date of Birth/Age :

19.12.1988

Qualification :

BSC

 

 

Name :

Mr. Sanjay Shankar

Designation :

Partner

Date of Birth/Age :

23.12.1982

Qualification :

HSC

 

 

KEY EXECUTIVES

 

Name :

Mr. Durgesh

Designation :

Accounts Manager

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Real Diamonds.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Diamonds

Countries :

·         Hong Kong

·         USA

·         Israel

·         Dubai

 

 

Imports :

 

Products :

Rough Diamonds

Countries :

·         Belgium

·         Israel

·         Dubai

 

 

Terms :

 

Selling :

Cash / L/C / Credit

 

 

Purchasing :

Cash / L/C / Credit

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Arjav Diamonds NV, Belgium

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

  • Arjav Diamonds (I) Private Limited, India
  • Arjav Manufacturing NV
  • Aspeco
  • Blue Star Diamonds Private Limited, India
  • Diambel N.V
  • Diamonds India Limited, India
  • D Navin Chandra BVBA
  • Gem Asia BVBA
  • Gem Blue BVBA
  • Indian Limited
  • Interjewel Europe NV
  • Jaydiam (Israel) Limited, India
  • Komal Gems N.V
  • Prime Diam Limited, India
  • Rosy Blue NV
  • Shah Imexport BVBA
  • Shivani Gems NV
  • SV Gems NV
  • Swadip Gems BVBA
  • Vitraag BVBA
  • Exchange (Gain)/ Loss On Recasting
  • Anmol Gems BVBA

 

 

Customers :

Wholesalers, Retailers, End Users and Manufacturer

Reference :

Vertex HK Limited, Hong kong

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

  • ALTYN Trading Incorporation
  • Ankit Gems Private Limited, India
  • Arkay Gems
  • Blue Diamonds
  • Brown Gems (HK) Limited, India
  • Cheung Ning Company Limited, India
  • Dani S Diam
  • Deckwell Gold International
  • Dhyan Diam L.L.C
  • Dia-9 DMCC
  • Diacentre
  • Diamonds Direct
  • Diamstar Jewellery (I) Private Limited, India
  • Dimexon Diamonds Limited, India
  • Express Way International India
  • Fai Po (Macao Commercial Offshore)

 

 

No. of Employees :

564 (Approximately)

 

 

Bankers :

 

Banker Name :

State Bank of India

Branch Address :

Diamond Branch BKC Bandra (East), Mumbai, Maharashtra, India

Facilities :

Not Divulged

Person Name :

Mr. Sunil Kothari (Regional Manager)

Contact No.:

91-22-26752300 (Continuously Ringing)

Report :

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

 

Banker Name :

The Saraswat Co-operative Bank

Branch Address :

BKC Bandra East, Mumbai, Maharashtra, India 

Facilities :

Not Divulged

Person Name :

Not Divulged

Contact No.:

91-22-26590965 (Continuously Ringing)

Report :

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

 

Auditors :

 

Name :

V.A. Parikh and Associates

Chartered Accountant

Address :

7/C Nusser House, 20M.P. Road, Opera House, Mumbai – 400004, Maharashtra, India

Tel. No.:

91-22-23698854/23695018

Fax No.:

91-22-23615110

Website :

www.vaparikh.in

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Sister Concern :

Not Available

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2014

                                                                                                                                             (Rs. In Million)

Name of the Partner

Closing Balance

Ashwin D Shanker

33.370

Ghanshyam M Shanker

84.942

Nikunj G Shanker

19.652

Sanjay A Shanker

      4.206

Total

142.170

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2014

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

142.170

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

142.170

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

47.429

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

47.429

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

189.599

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

47.643

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERRED TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

548.837

 

Sundry Debtors
 

 

207.970

 

Cash & Bank Balances
 

 

3.116

 

Loans & Advances
 

 

22.199

Total Current Assets
 

 

782.122

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

625.376

 

Provisions
 

 

14.790

Total Current Liabilities
 

 

640.166

Net Current Assets
 

 

141.956

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

189.599

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2014

 

SALES

 

 

 

 

 

Income

 

 

1054.093

 

 

Other Income

 

 

0.033

 

 

TOTAL            

 

 

1054.126

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

 

 

971.026

 

 

Administrative Expenses

 

 

2.887

 

 

Selling and Distribution Expenses

 

 

29.314

 

 

Financial Expenses

 

 

2.451

 

 

Other Expenses

 

 

0.272

 

 

TOTAL                        

 

 

1005.950

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

 

 

48.176

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

 

4.160

 

 

 

 

 

 

PROFIT BEFORE TAX

 

 

44.016

 

 

 

 

 

Less

TAX                                         

 

 

14.790

 

 

 

 

 

 

PROFIT AFTER TAX

 

 

29.226

 

 

Particulars

 

 

 

31.03.2015

(Audited)

Sales Turnover (Approximately)

 

 

5130.000

 

 

 

 

 

Expected Sales (2015-2016): Above Rs.5000.000 Million

 

The above information has been parted by Mr. Durgesh (Accounts Manager)

 

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

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

 

 

31.03.2014

Net Profit Margin

(PAT/Sales)

(%)

 

 

2.77

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

5.63

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.31

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
 

 

0.33

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

0.18

 

 

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

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)

Yes

16

No. of employees

Yes

17

Details of sister concerns

No

18

Major suppliers

Yes

19

Major customers

Yes

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

No

26

Turnover of firm for last two years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

Yes

29

Profitability for last one year

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

 

FIXED ASSETS

 

·         Machinery

·         Computer

·         Furniture and Fixture

·         Air Conditioner

·         Telephone System

·         Water Treatment Plant

·         Weight balance

 

 

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. 66.37

UK Pound

1

Rs.102.54

Euro

1

Rs.75.32

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

TRI

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILITY

1~10

6

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

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.