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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

505080

Report Date :

20.04.2018

 

 

IDENTIFICATION DETAILS

 

Name :

NAROLA BROTHERS

 

 

Registered Office :

303, 3rd Floor, Shree Hari Building, Nandu Doshi Ni Wadi, Katargam, Surat – 395004, Gujarat

Mobile No.:

91-9825105404 (Mr. Tushar Narola)

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Establishment:

11.04.2015

 

 

Com. Reg. No.:

NV/C/KATARGAM/317874

 

 

Capital Investment / Paid-up Capital :

INR 10.631 Million

 

 

TIN No.:

24222705550

 

 

CST No.:

24722705550

 

 

IEC No.:

[Import-Export Code No.]

5215006997

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

24AALFN7670A1ZC

 

 

PAN No.:

[Permanent Account No.]

AALFN7670A

 

 

Service Tax No.:

NZ/C/KATARGAM/317874

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Processor and Importer of Diamonds. (Confirmed by management)

 

 

No. of Employees :

30 (Approximately) (In Office 10 / In Factory 20)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory 

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a partnership concern established in the year 2015. It is a processor and importer of diamonds.

 

As per the financial of 2017, the concern has achieved a massive growth in its revenue as compared to the previous year’s revenue and has reported an average net profit margin of 1.06%.

 

The concern possesses satisfactory financial position marked by sufficient capital base along with comfortable debt balance sheet profile.

 

Furthermore, the subject’s customer (D. S. Exports and Simoni Gems) have given positive feedback and are satisfied with the subject’s product quality and delivery behaviour. Supplier (D. N Diamond) has also given positive feedback and is satisfied with the subject’s payment behaviour. Subject’s bank (Axis Bank Limited, State Bank of India and Karur Vysya Bank) have also given positive feedback and are satisfied with the subject’s banking transaction.

 

However, rating strengths are partially offset by susceptibility of its operations to foreign exchange fluctuation risk marked by intense competition from organized and unorganized players in the industry.

 

Payment seems to be slow but correct.

 

In view of aforesaid, the concern can be considered for business dealings at usual trade terms and condition.

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 20.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Tusharbhai Bhikhabhai Narola

Designation :

Partner

Contact No.:

91-9825105404

 

 

LOCATIONS

 

Registered Office / Factory :

303, 3rd Floor, Shree Hari Building, Nandu Doshi Ni Wadi, Katargam, Surat – 395004, Gujarat, India

Tel. No.:

91-261-2535404

Mobile No.:

91-9825105404 (Mr. Tushar Narola)

Fax No.:

Not Available

E-Mail :

narolatushar@yahoo.com

narola7670@shreyas9.com

Area :

1445 sq. ft.

Location :

Owned

Locality :

Commercial

 

 

PARTNERS

 

Name :

Mr. Tusharbhai Bhikhabhai Narola

Designation :

Partner

Address :

B/31, Gayatri Parivar Society - 3, D.K. Nagar Ni Bajuma, Katagam, Surat – 395004, Gujarat, India

Date of Birth/Age :

07.09.1978

Qualification :

B.Sc

PAN No.:

ADVPN1435C

Experience :

11 Years

 

 

Name :

Mr. Chimanbhai Vallabhbhai Narola

Designation :

Partner

Address :

B/48, Gayatri Parivar Society - 3, D.K. Nagar Ni Bajuma, Katagam, Surat – 395004, Gujarat, India

Date of Birth/Age :

01.06.1973

Qualification :

S.S.C.

Experience :

15 Years

 

 

Name :

Mr. Pankaj Arvindbhai Bhatia

Designation :

Partner

Address :

126, Mahavanand Society, Singanpore Road, Katargam, Surat – 395004, Gujarat, India

Date of Birth/Age :

28.01.1989

Qualification :

B.Sc

Experience :

7 Years

 

 

Name :

Mrs. Manjuben Tusharbhai Narola

Designation :

Partner

Address :

B/31, Gayatri Parivar Society - 3, D.K. Nagar Ni Bajuma, Katagam, Surat – 395004, Gujarat, India

Date of Birth/Age :

08.10.1975

Qualification :

S.S.C.

Experience :

2 Years

 

 

Name :

Mrs. Rekhaben Chimanbhai Narola

Designation :

Partner

Address :

B/48, Gayatri Parivar Society - 3, D.K. Nagar Ni Bajuma, Katagam, Surat – 395004, Gujarat, India

Date of Birth/Age :

14.01.1976 

Qualification :

H.S.C.

Experience :

2 Years

 

 

Name :

Mr. Rakshit Chimanbhai Narola

Designation :

Partner

Address :

B/48, Gayatri Parivar Society - 3, D.K. Nagar Ni Bajuma, Katagam, Surat – 395004, Gujarat, India

Date of Birth/Age :

10.05.1998

Qualification :

H.S.C.

Experience :

1 Years

 

 

 

 

KEY EXECUTIVE

 

Name :

Mr. Ram Lochawala

Designation :

Finance Manager 

 

 

BUSINESS DETAILS

 

Line of Business :

Processor and Importer of Diamonds. (Confirmed by management)

 

 

Products :

Diamonds

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

 

Products :

Rough Diamond

Countries :
  • Belgium
  • United Arab Emirates
  • Russia

 

 

Terms :

 

Selling :

Cash and Credit (30 days)

 

 

Purchasing :

Credit (60 / 90 / 120 Days)

 

 

PRODUCTION STATUS

 

Particulars

Installed Capacity

Actual Production

Cut and Polish Diamonds

6000 CRT

5262.53 CRT

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

D.N. Diamond 

Address :

411, 412, 413, HDC Hatfalia, Mahidharpura, Surat, Gujarat, India

Name of the Person :

Mr. Naresh Bhai 

Contact No.:

91-9825123481

Since How Long Known :

2.5 Years

Maximum Limit Dealt :

--

Experience :

 

Payment Behaviour

Market Goodwill

Overall

Good

Good

Good

Remark:

They gave us positive response about subject concern, they are satisfied with their payment behaviour and market Goodwill.

 

 

Reference :

Nishal Gemas

Address :

201-Raj Chambers, Hat Falia, Hirapura, Surat – 395003, Gujarat, India

Name of the Person :

Mr. Ashokbhai Bhanshali

Contact No.:

91-9825141025

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

He denied to provide feedback about subject concern.

 

  • B. Chetan and Company
  • B.K. Freighy Forwarders Private Limited
  • Bhayani Engineering Company
  • Bhoomi Engineering Works
  • Diyora and Bhanderi Corporation
  • Gem-Blue Bvba
  • Gia India Laboratory Private Limited
  • J.B. Enterprises
  • Jay Krishna Laser
  • KGK Diamonds Bvba
  • Life Diamond Processors
  • M.R. Diamond
  • Patel traders
  • Nishal Gems
  • Vatam Impex
  • Yash Diam

 

 

Customers :

Wholesalers, Retailer

 

Reference :

Simoni Gems

Address :

201, Aadinath Building, Jada Khadi, Mahidharpura, Surat – 395001, Gujarat, India

Name of the Person :

Mr. Sanjaybhai

Contact No.:

91-9376938000

Since How Long Known :

2.5 Years

Maximum Limit Dealt :

--

Experience :

Product Quality

Delivery Behaviour

Overall

Good

Good

Good

Remark:

They gave us positive response about subject concern, they are satisfied with their product quality and delivery behaviour.

 

 

Reference :

D.S. Exports 

Address :

6/1346, 302, 3rd Floor, Kohinoor Chambers, Jada-Khadi, Mahidharpura, Surat, Gujarat, India

Name of the Person :

Mr. Dineshbhai  (Accountant)

Contact No.:

91-9374235673

Since How Long Known :

About 3 Years

Maximum Limit Dealt :

--

Experience :

 

Product Quality

Delivery Behaviour

Overall

Good

Good

Good

Remark:

They gave us positive response about subject concern, they are satisfied with their product quality and delivery behaviour.

 

  • Aarush Gems
  • B.Nirav and Company
  • Hardik Gems
  • Kala Jewels
  • Kamla trade met
  • Laxmi Enterprise
  • P. Hitesh and Company
  • Sanyan Exports
  • Shree hari Krishna Diamond
  • Som Diam
  • Starlight Diamonds
  • Variya Gems
  • Vruddhi Gems

 

 

 

No. of Employees :

30 (Approximately) (In Office 10 / In Factory 20)

 

 

Bankers :

Bank Name

Axis Bank Limited

Branch

J R Square, Mamta Park – 1, Kapodara, Varachha Main Road, Surat – 395006, Gujarat, India

Person Name (With Designation)

Mr. Sanjaybhai Beladiya (Relationship Manager)

Contact Number

91-9909980642

Name of Account Holder

Narola Brothers

Account Number

916020029067444

IFSC Code:

UTIB0002083

Account Since (Date/Year of Account Opening)

18.06.2016

Average Balance Maintained (If Possible)

3900307.63 (01.09.2017 to 02.03.2018 )

Credit Facilities Enjoyed (If any)

--

Account Operation

Satisfactory

Type of Account :

Current Account

Remarks (If any)

Banker gave us positive response about subject concern. They are satisfied with their banking transaction.

 

 

Bank Name

State Bank of India

Branch

Shop No. 11, To 14, Ground Floor, Laxmi Enclave, Near Gajera School, Katargam, Surat – 395004, Gujarat, India

Person Name (With Designation)

Mr. Ashwinbhai (Relationship Manager)

Contact Number

7600059137

Name of Account Holder

Narola Brothers

Account Number

34918706998

IFSC Code:

SBIN0005588

Account Since (Date/Year of Account Opening)

08.05.2015

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Type of Account :

Current Account

Account Operation

Satisfactory

Remarks (If any)

Banker gave us positive response about subject concern. They are satisfied with their banking transaction.

 

 

Bank Name

Karur Vysya Bank

Branch

Ground Floor, X1-2, K.N. Park Society, Near Navjeevan Circle, Udhna Magdalla Main Road, Surat – 395017, Gujarat, India

Person Name (With Designation)

Anilbhai Jaydev (Relationship Manager)

Contact Number

91-9824831575 / 9825836276

Name of Account Holder

Narola Brothers

Account Number

2215135000003103

Account Since (Date/Year of Account Opening)

25.04.2016

IFSC Code:

KVBL0002215

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

Machinery Loan

Type of Account :

Current Account

Account Operation

Satisfactory

Remarks (If any)

Banker gave us positive response about subject concern. They are satisfied with their banking transaction.

 

 

Facilities :

Secured Loans

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Karur Vysya Bank Loan

1.974

0.000

Total

1.974

0.000

 

 

Auditors :

 

Name :

LNG and Company

Chartered Accountants

Address :

3rd Floor, Sakshi House, Opposite Jiandhara Hotel, Near Gitanjali, Varachha Road, Surat – 395006,  Gujarat, India

Tel. No.:

91-261-2544009

E-Mail :

info@lngca.com

Membership No.:

129805

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Sister Concern:

Not Available

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Name of Partners’

Share

(%)

Opening Balance

Credit

Interest

Remuneration

Profit

Total

Debit

Closing Balance

Chimanbhai Vallabhbhai Narola

2.965

3.510

3.510

0.434

0.300

0.465

7.674

1.113

6.561

Tusharbhai Bhikhabhai Narola

1.113

1.800

1.800

0.159

0.300

0.697

4.070

--

4.070

Total

4.078

5.310

5.310

0.593

0.600

1.162

11.744

1.113

10.631

 

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

SHAREHOLDERS FUNDS

 

 

 

1] Partners’ Capital

 

10.631

4.078

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

10.631

4.078

LOAN FUNDS

 

 

 

1] Secured Loans

 

1.974

0.000

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

1.974

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

12.605

4.078

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

2.145

0.279

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 
44.643
0.979

 

Sundry Debtors
 
25.097
0.000

 

Cash & Bank Balances
 
7.699
2.262

 

Other Current Assets
 
1.811
0.611

 

Loans & Advances
 
0.486
0.031

Total Current Assets
 
79.736
3.883

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors
 
0.000
0.013

 

Other Current Liabilities
 
68.523
0.000

 

Provisions
 
0.753
0.071

Total Current Liabilities
 
69.276
0.084

Net Current Assets
 
10.460
3.799

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

12.605

4.078

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

109.368

1.564

 

Direct Income:

 

0.000

0.000

 

Exchange Rate Of Difference

 

2.788

0.000

 

Indirect Income:

 

 

 

 

FD Interest

 

0.006

0.000

 

Kasar Vatva

 

0.001

0.000

 

TOTAL

 

112.163

1.564

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Raw Materials Consumption

 

103.969

0.000

 

Purchases of Stock-in-Trade

 

5.585

0.000

 

Increase/(Decrease in Stock)

 

(11.749)

0.000

 

 

 

 

 

 

DIRECT EXPENSES:

 

 

 

 

Diamond Brutter Wheel Expenses

 

0.165

0.000

 

Diamond Scan and Plan Expenses

 

0.274

0.000

 

Die and Mould Expenses

 

0.126

0.000

 

Electricity Bill Expenses

 

0.864

0.353

 

Factory Expenses

 

0.000

0.064

 

Laser Charges

 

0.895

0.000

 

Polish Grading Expenses

 

1.622

0.000

 

Rent Expenses

 

0.000

0.120

 

Saran Manjai Expenses

 

0.107

0.035

 

Worker Salary Expenses

 

3.333

0.830

 

 

 

 

 

 

INDIRECT EXPENSE:

 

 

 

 

Agency Charges

 

0.028

0.000

 

Account Fees

 

0.000

0.004

 

Audit Fees

 

0.015

0.000

 

Bank Charges

 

0.033

0.003

 

Brokerage Expenses

 

0.051

0.000

 

Clearing and Forwarding Charges

 

0.083

0.000

 

Conveyance Expenses

 

0.028

0.000

 

Foreign Travelling Expenses

 

0.177

0.000

 

Gjepc Certificate Fees

 

0.013

0.000

 

Income Tax

 

0.012

0.000

 

Insurance Expenses

 

0.009

0.000

 

Loan processing Charges

 

0.074

0.000

 

Miscellaneous Expenses

 

0.000

0.016

 

Office Expenses

 

0.059

0.000

 

Office Staff Salary

 

2.489

0.000

 

Partner Remuneration

 

0.600

0.000

 

Printing and Stationery Expenses

 

0.006

0.001

 

Professional Fees

 

0.014

0.001

 

Professional tax

 

0.056

0.000

 

Repair and Maintenance Expenses

 

0.013

0.000

 

Store and Consumable Expenses

 

0.041

0.000

 

Telephone Bill Expenses

 

0.004

0.005

 

Partners’ Capital Interest

 

0.000

0.092

 

Travelling  expenses

 

0.014

0.000

 

TOTAL

 

109.010

1.524

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

3.153

0.040

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

0.798

0.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

2.355

0.040

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

1.193

0.000

 

 

 

 

 

 

NET PROFIT

 

1.162

0.040

 

 

The above information has been parted by Mr. Tusharbhai Bhikhabhai Narola (Partner)

 

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

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

Average Collection Days

(Sundry Debtors / Income * 365 Days)

 

83.76

0.00

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

 

4.36

0.00

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

 

0.00

0.00

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

 

0.07

0.04

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

 

1.47

0.14

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

 

0.87

0.02

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

 

0.19

0.00

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

 

6.52

0.02

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

 

0.20

0.07

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

 

3.95

0.00

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

 

31.03.2017

31.03.2016

Net Profit Margin

((PAT / Sales) * 100)

%

 

1.06

2.56

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

 

1.42

0.96

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

 

10.93

0.98

 

 

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

Current Ratio

(Current Assets / Current Liabilities)

 

1.15

46.23

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

 

0.51

34.57

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

 

0.13

0.98

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

 

0.19

0.00

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

 

1.15

46.23

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

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2016

31.03.2017

 

INR In Million

INR In Million

Partners’ Capital

4.078

10.631

Reserves & Surplus

0.000

0.000

Share Application money pending allotment

0.000

0.000

Net worth

4.078

10.631

 

 

 

Secured Loan

0.000

1.974

Unsecured Loan

0.000

0.000

Total borrowings

0.000

1.974

Debt/Equity ratio

0.000

0.186

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2016

31.03.2017

 

INR In Million

INR In Million

Sales Turnover

1.564

109.368

 

6,892.839

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2016

31.03.2017

 

INR In Million

INR In Million

Sales

1.564

109.368

Profit

0.040

1.162

 

2.56%

1.06%

 

 

 

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

Yes

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

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

 

 

FIXED ASSETS:

 

  • Air Conditioner 
  • Machinery
  • Computer

 

 

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.

 

 

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 records 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

INR

US Dollar

1

INR 65.68

UK Pound

1

INR 93.98

Euro

1

INR 81.30

 

 

INFORMATION DETAILS

 

Information Gathered by :

SPR

 

 

Analysis Done by :

NYT

 

 

Report Prepared by :

SUJ

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

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.