Nirav Modi’s holding company ANM Enterprises saw profit soar more than 543 times to ₹24.79 crore in FY16, from ₹4.56 lakhs in the year earlier period. In stark contrast, the controversial tycoon’s flagship firm Firestar Diamond Pvt. Ltd. reported a loss of ₹28,788 in FY16, widening slightly from FY15’s loss of ₹27,811.
Firestar Diamond is Mr. Modi’s front company with operations across the U.S., Europe, the Middle East, the Far East and India, according to its website. Nirav Modi and Hemant Bhatt are directors of the firm that employs 1,200 people.
Firestar International Pvt. Ltd., which was the holding company of Firestar Diamond until March 19, 2016, transferred all the shares to ANM Enterprises and ceased to be the holding company, according to a filing with the Registrar of Companies (RoC). Firestar International had reported a net profit of ₹61.06 crore on revenue of ₹1,496 crore for FY14, the last year for which data has been submitted with the RoC.
ANM, according to the RoC filings had a shining year in FY16, with total income increasing by 674 times to ₹32.79 crore.
The company attributed the increase in total income and profitability to sale of investments worth ₹107.26 crore held by the company in the equity shares of Firestar Diamond.
However, ANM’s audit firm said the consolidated financial statements also included the group’s share of profit of ₹107. 26 crore for the year ended March 31, 2016, as considered in the consolidated financial statements, in respect of an associate, whose financial statement had not been audited by it.
‘Unaudited statements’
“These financial statements are unaudited and have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of an associate, is based solely on such unaudited financial statements.” it said.
Mr. Modi holds 99.9% stake in ANM Enterprises, which holds 99.57% stake in Firestar Diamond and 30.34% stake in Firestar International.
ANM Enterprises had invested ₹119.28 crore in Firestar International and the net worth of the shareholding as per latest audited balance sheet stood at ₹852.11 crore.
ANM Enterprises had outstanding debt of ₹89.73 lakh by the end of FY16.
Interestingly, Mr. Modi was reportedly planning to list one of his firms and had plans to raise about ₹1,000 crore. Mr. Modi is a partner in 4 firms and a director in 5 more firms.
