MIRA INFORM REPORT

 

 

Report No. :

491559

Report Date :

15.02.2018

 

 

IDENTIFICATION DETAILS

 

Name :

PALADIYA BROTHERS AND COMPANY

 

 

Registered Office :

25/26, Sarthi Industrial Estate, Nandu Doshi ni Wadi, Vasta Devdi Road, Katargam, Surat- 395004, Gujarat

Tel. No.:

91-261-2531091 / 92 / 93

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Year of Establishment:

30.07.1997

 

 

Capital Investment / Paid-up Capital :

INR 262.077 Million

 

 

TIN No.:

24222702592

 

 

IEC No.:

5297002681

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AADFP1969N

 

 

GSTIN :

24AADFP1969N1ZT

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Processor, Trader, Exporter of Diamond. (Confirmed by management)

 

 

No. of Employees :

500 (Approximately)

 

 

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 :

Paladiya Brothers and Company is a Processor, Trader, Exporter of Diamonds. The concern was started in the year 1997 and is based is Surat, Gujarat. It is an established partnership concern having satisfactory track record.

 

As per the available audited financials of 2017, the concern has witnessed a growth in its growth in its revenue and has reported fair profit margin at 1.39% (approx.)

 

Rating takes into consideration concern’s long established track record of business operation along with adequate capital base and comfortable debt level.

 

However, the rating strength is partially offset by intense competition from organized and  unorganized players in the diamond industry.

 

Trade relations are reported as fair. Business is active. Payment terms are seems to be slow but correct.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

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

CRISIL

Rating

Long term Rating = BB+

Rating Explanation

Moderate risk of default

Date

30.01.2017

 

 

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 15.02.2018

 

 

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. Ketan Dobariya

Designation :

Senior Accountant

Contact No.:

91-9909012128

Date :

12.02.2018

 

 

LOCATIONS

 

Registered Office/ Factory :

25/26, Sarthi Industrial Estate, Nandu Doshi ni Wadi, Vasta Devdi Road, Katargam, Surat- 395004, Gujarat, India

Tel. No.:

91-261-2531091 / 92 / 93

Mobile No.:

91-9909012128 (Mr. Ketan Dobariya)

Fax No.:

91-261-2531094

E-Mail :

paladiyasrt@gmail.com

paladiya.brothers@yahoo.com

Area :

1232 Sq. Mt.

Location :

Owned

 

 

Branch Office :

FC-2120, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India 

Tel. No.:

91-22-33924629

Fax No.:

91-22-40048815

 

 

SOLE PROPRIETOR/PARTNERS

 

Name :

Mr. Dhirubhai Ramjibhai Paladiya

Designation :

Partner

Address :

A-7, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

05.06.1962

Qualification :

SSC

Experience :

33 Years

 

 

Name :

Mr. Virjibhai Ramjibhai Paladiya

Designation :

Partner

Address :

30, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

01.10.1966

Qualification :

S.S.C.

Experience :

31 Years

 

 

Name :

Mr. Sanjaybhai Dhirubhai Paladiya

Designation :

Partner

Address :

A-7, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

05.02.1982

Qualification :

HSC

Experience :

15 Years

 

 

Name :

Mr. Jayeshbhai Dhirubhai Paladiya

Designation :

Partner

Address :

A-7, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

01.03.1987

Qualification :

SSC

Experience :

10 Years

 

 

Name :

Mr. Yogeshbhai Virjibhai Paladiya

Designation :

Partner

Address :

30, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

15.05.1987

Experience :

10 Years

 

 

Name :

Mrs. Vasantben Dhirubhai Paladiya

Designation :

Partner

Address :

A-7, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

15.08.1964

Qualification :

S.S.C.

Experience :

11 Years

 

 

Name :

Mrs. Prabhaben Virjibhai Paladiya

Designation :

Partner

Address :

30, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

01.06.1969

Qualification :

S.S.C.

Experience :

11 Years

 

 

Name :

Mrs. Rashmitaben Sanjaybhai Paladiya

Designation :

Partner

Address :

A-7, Aadarsh Society, Katargam, Surat, Gujarat, India

Date of Birth/Age :

31.03.1983

Qualification :

HSC

Experience :

9 Years

 

 

KEY EXECUTIVES

 

Name :

Mr. Ketan Dobariya

Designation :

Senior Accountant

 

 

BUSINESS DETAILS

 

Line of Business :

Processor, Trader, Exporter of Diamond. (Confirmed by management)

 

 

Products :

Diamonds

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

Polished Diamond

Countries :

·         Hong Kong

·         Dubai

·         United States of America

·         Israel

 

 

Imports :

 

Products :

Rough Diamond

Countries :

·         Belgium

·         Dubai

 

 

Terms :

 

Selling :

Cash L/C and Credit (30/60 Days)

 

 

Purchasing :

Cash L/C and Credit (30/60 Days)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Sheetal Manufacturing Private Limited

Name of the Person :

Mr. Dharmeshbhai Navadiya (Manager)

Contact No.:

91-261-2551353

Since How Long Known :

6 Years

Maximum Limit Dealt :

--

Experience :

Payment Behaviour

Market Goodwill

Overall

Good

Good

Good

Remark:

 

 

He informed that they are satisfied with their payment bahaviour and market goodwill.

 

·         Gem-Blue BVBA

·         Dialux Diamonds DMCC

·         Jewelex Middle East DMCC

·         Sahajanand Technologies Private Limited

 

 

Customers :

Wholesalers and Retailers

 

Reference :

Rosin Jewel Private Limited

Name of the Person :

Mr. Atulbhai Sekhavat (Director)

Contact No.:

91-9820011801

Since How Long Known :

5 Years

Maximum Limit Dealt :

INR 100.000 Million (Yearly)

Experience :

Product Quality

Delivery Behaviour

Overall

Excellent

Excellent

Excellent

Remark:

He informed that they are satisfied with their product quality and delivery behaviour.

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

 

Bank Name

HDFC Bank Limited

Branch

341-350, Poddar Arcade, Khand Bazar, Varachha Road, Surat, Gujarat, India

Person Name (With Designation)

--

Contact Number

91-9377954125 (Continuously Ringing)

Name of Account Holder

--

Account Number

05332320000550 (Not Verified with Banker)

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

 

Bank Name

State Bank of India

Branch

Hari Kamal Building, Near Moti Talkies, PB No.313, Danapith, Begumpura Branch, Surat – 395003, Gujarat, India

Person Name (With Designation)

--

Contact Number

91-261-2422260 (Continuously Ringing)

Name of Account Holder

--

Account Number

56004004788 (Not verified with Banker)

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Term Loan from

 

 

KVBL (Galaxy Machine)

33.441

0.000

SIDBI

4.695

6.699

State Bank of India

1.895

4.347

 

 

 

Hypothecation Loan From

 

 

Kotak Mahindra Prime Limited

8.133

4.772

HDFC Car Loan

2.804

1.888

Yes Bank Car Loan

3.631

0.000

 

 

 

Bills Discounting Facility

 

 

Export Bill Discount (In US$)

109.960

37.315

Export Bill Discount (In INR)

0.000

26.968

 

 

 

PCFC Loan with Karur Vysya bank Limited

81.855

54.420

 

 

 

Total

246.415

136.409

 

Auditors :

 

Name :

DSI and Company

Chartered Accountants

Address :

Near Roghuvir Bunglows, City Light Rood, Surat – 395007, Gujarat, India

Tel. No.:

91-261-2223020 / 2223030

E-Mail :

dsi.surat@gmail.com

Membership No.:

140410

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Sister Concern:

Not Available

 

CAPITAL STRUCTURE

 

Sr

No.

Name of the Partner

Profit / (Loss) Sharing ratio

Opening Balance as on 01.04.2016

Additions / (Deduction) during the year

Interest on Capital

Net profit for the year

Closing Balance as on 31.03.2017

1

Dhirubhai Ramjibhai Paladiya

10%

40.029

(19.187)

2.26

3.946

27.048

2

Vasantben Dhirubhai Paladiya

%

19.324

(2.295)

1.573

1.973

20.575

3

Jayeshbhai Dhirubhai Paladiya

10%

26.870

(2.345)

2.321

3.946

30.792

4

Kinjalben Jayeshbhai Paladiya

5%

5.997

(3.718)

0.467

1.973

4.720

5

Sanjaybhai Dhirubhai Paladiya

15%

30.737

(4.022)

2.524

5.92

35.159

6

Rashmitaben Sanjaybhai Paladiya

5%

16.874

0.028

1.46

1.973

20.335

7

Virjibhai Ramjibhai Paladiya

20%

49.302

(7.218)

4.406

7.893

54.382

8

Prabhaben Virjibhai Paladiya

5%

27.528

(4.410)

2.324

1.973

27.414

9

Yogeshbhai Virjibhai Paladiya

20%

23.590

3.147

2.116

7.893

36.745

10

Payalben Yogeshbhai Paladiya

5%

5.416

(2.791)

0.309

1.973

4.907

 

 

 

 

 

 

 

 

 

Total

 

245.665

(42.811)

19.76

39.463

262.077

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2017

 

31.03.2016

31.03.2015

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

262.077

245.665

207.066

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

262.077

245.665

207.066

LOAN FUNDS

 

 

 

1] Secured Loans

246.415

136.409

24.276

2] Unsecured Loans

3.000

0.000

0.000

TOTAL BORROWING

249.415

136.409

24.276

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

511.492

382.074

231.342

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

102.285

61.766

68.842

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.026

0.026

0.026

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

588.649

392.430

409.760

 

Sundry Debtors

296.573

165.386

69.341

 

Cash & Bank Balances

7.951

6.616

3.752

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

38.737

26.084

11.690

Total Current Assets
931.910
590.516
494.543

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors
488.742
257.432
316.504

 

Other Current Liabilities
0.497
0.309
5.228

 

Provisions
33.490
12.493
10.337

Total Current Liabilities
522.729

270.234
332.069

Net Current Assets
409.181

320.282

162.474

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

511.492

382.074

231.342

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

2835.636

1536.162

1252.485

 

Other Income

0.276

0.347

0.092

 

TOTAL

2835.912

1536.509

1252.577

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2656.527

1374.107

1078.538

 

Purchases of Stock-in-Trade

40.500

0.000

0.000

 

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

(224.526)

(32.905)

3.920

 

Manufacturing and Operating Expenses

182.033

91.162

84.058

 

Sales and Administrative Expenses

67.251

44.063

34.132

 

Interest on Partners Capital

19.760

8.118

9.167

 

TOTAL

2741.545

1484.545

1209.815

 

 

 

 

 

 

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

94.367

51.964

42.762

 

 

 

 

 

Less

FINANCIAL EXPENSES

15.798

7.793

3.054

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

78.569

44.171

39.708

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

17.530

11.339

11.806

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

61.039

32.832

27.902

 

 

 

 

 

Less

TAX

21.576

11.632

9.484

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

39.463

21.200

18.418

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

22.155

(97.203)

NA

Net cash flow from operating activity

0.579

(108.835)

NA

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

38.17

39.30

20.21

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

9.56

9.29

18.06

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

66.14

68.38

107.11

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.16

0.13

0.10

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.92

0.84

0.62

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.75

0.62

0.63

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.95

0.56

0.12

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

2.01

1.10

1.60

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.39

0.25

0.33

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

5.97

6.67

14.00

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

1.39

1.38

1.47

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

3.82

3.25

3.27

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

15.06

8.63

8.89

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.77

2.19

1.49

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.65

0.73

0.26

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.25

0.38

0.37

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

0.95

0.56

0.12

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.77

2.19

1.49

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

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

207.066

245.665

262.077

Reserves & Surplus

0.000

0.000

0.000

Net worth

207.066

245.665

262.077

 

 

 

 

Long Term borrowings

24.276

136.409

246.415

Short Term borrowings

0.000

0.000

3.000

Total borrowings

24.276

136.409

249.415

Debt/Equity ratio

0.117

0.555

0.952

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

1252.485

1536.162

2835.636

 

 

22.649

84.592

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

1252.485

1536.162

2835.636

Profit

18.418

21.200

39.463

 

1.47%

1.38%

1.39%

 

 

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 – Legal Form

Yes

3

Locality of the entity

Yes

4

Premises details

Yes

5

Buyer visit details

Yes

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

No

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

No

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

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

FIXED ASSETS

 

  • Factory Building
  • Furniture and Fixture
  • Treasury Safe
  • Plant and Machinery
  • Galaxy Machine
  • RO Plant
  • Laser Machine
  • Bruiting Machine
  • Lathe Machine
  • Ghantee
  • Grinding Machine
  • Saran
  • Microscope
  • Smooth Checker Module
  • Air Conditioner
  • Generator
  • CC TV Camera
  • Electric Weighing Scale
  • Cash Counting Machine
  • Fax Machine
  • Vacum Cleaner
  • Xerox machine
  • Telephone and Intercomm
  • Television
  • Shredder Machine
  • Battery UPS
  • Motor Cars
  • Computer and Printer
  • Water Cleaning Plant

 

 

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.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 64.28

UK Pound

1

INR 89.02

Euro

1

INR 78.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

KJL

 

 

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.