MIRA INFORM REPORT

Report Date :

08.11.2007

IDENTIFICATION DETAILS

Name :	REVASHANKAR GEMS LIMITED
Registered Office :	322, Panchratha, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	03.04.1995
Com. Reg. No.:	11-87127
CIN No.: [Company Identification No.]	U36911MH1995PLC087127
TAN No.: [Tax Deduction & Collection Account No.]	MUMR07367D
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturers, Exporters and Importers of Diamonds

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 810000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Fundamentals are strong and healthy. Business is active. Payments are correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	322, Panchratha, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-3681800 / 3636800
Res. :	91-22-3630258 / 3632688
Fax No.:	91-22-3634261
E-Mail :	rgems@bom5.vsnl.net.in

DIRECTORS

Name :	Mr. Akshay Shankar Pandya
Designation :	Director
Address :	112-A, Paradise Apartments, Charni Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	02.06.1964
Date of Appointment :	03.04.1995
Name :	Mr. Praveen Shankar Pandya
Designation :	Director
Address :	112-A, Paradise Apartments, Charni Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	04.10.1950
Date of Appointment :	03.04.1995
Name :	Mr. Rajiv Shankar Pandya
Designation :	Director
Address :	1401- Pleasant Palace, N. D. Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	02.11.1951
Date of Appointment :	20.03.1996
Name :	Mr. Pratap Shankar Pandya
Designation :	Director
Address :	112-A, Paradise Apartments, Charni Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	21.03.1924
Date of Appointment :	03.04.1995
Name :	Mr. Anand Shankar Pandya
Designation :	Director
Address :	1401 Pleasant Palace 16, N. D. Road, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	26.05.1922
Date of Appointment :	03.04.1995
Name :	Ms. Sangeeta Panyaakshay
Designation :	Director
Address :	112-A, Paradise Apartments, Charni Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	03.07.1970
Date of Appointment :	20.03.1996
Date of Ceasing :	25.03.2005
Name :	Mrs. Alka Rajiv Pandya
Designation :	Director
Address :	1401- Pleasant Palace, N. D. Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	30.12.1958
Date of Appointment :	20.03.1996
Name :	Mrs. Namita Pravin Pandya
Designation :	Director
Address :	112-A, Paradise Apartments, Charni Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	12.07.1955
Date of Appointment :	20.03.1996
Date of Ceasing :	25.03.2005
Name :	Mr. Avinash Praveen Pandya
Designation :	Director
Address :	61-A, Paradise Apartments, 44, N. S. Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	10.07.1979
Date of Appointment :	07.10.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Anandshankar R. Pandya	350000
Pratapshankar R. Pandya	400000
Praveenshankar P Pandya	400000
Rajeevshanka A. Pandya	400000
Namita P Pandya	400000
Namita P Pandya	400000
Alka R. Pandya	400000
Akshayshankar P Pandya	400000
Taraben Anandshankar Pandya	400000
Vidyaben Pratapshankar Pandya	300000
Sangeeta A Pandya	250000
Siddharth P Pandya	250000
Avinash P Pandya	250000
Sychi R Pandya	250000
Shivani R Pandya	250000
Vivek R Pandya	250000

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Importers of Polished Diamonds

Products :

Product Description	ITC Code No.
Polished Diamonds	710239.01

PRODUCTION STATUS

Particulars	Unit	Actual Production
Cut and Polished Diamonds	Carats	94.271.63

GENERAL INFORMATION

Bankers :

Bank of India

Bullion Exchange Branch,

Shaikh Memon Street,

Mumbai – 400002

State Bank of India

Diamond Branch,

Majestic Shopping Centre,

J. S. S. Road, Girgaum,

Mumbai – 400004

ABN AMRO Bank N. V.

14, Veer Nariman Road,

Mumbai – 400021

The Antwerp Diamond Bank N. V.

2^nd Floor, Engineering Centre,

9 Mathew Road, Opera House,

Mumbai – 400004

Facilities :

SECURED LOAN	RS IN MILLIONS
Secured Loan from Banks	392.618
Secured Loan from HDFC Bank	0.887
Secured Loan from ICICI Bank	0.720
Total	394.225
Note : The above loans are secured against Stock in Trade, Book debts and also guaranteed by some of the Directors in their personal capacity. Secured loan from HDFC Bank and ICICI Banks are secured against hypothecation of Motor Car, Amount Rs. 0.663 Million

Banking Relations :	Satisfactory
Auditors :
Name :	Raj Jendra and Company Chartered Accountants
Associates/Subsidiaries :	Shankar Jewels Limited Shangold India Limited Nagsh Collection Diamond India Corporation

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
51,00,000	Equity Shares	Rs. 10/- each	Rs. 51.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		51.000	51.000	51.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		150.641	138.805	126.322
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		201.641	189.805	177.322
LOAN FUNDS
1] Secured Loans		394.226	232.715	169.537
2] Unsecured Loans		25.737	28.533	27.116
TOTAL BORROWING		419.963	261.248	196.653
DEFERRED TAX LIABILITIES		0.966	0.953	0.938
TOTAL		622.570	452.006	374.913
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.072	13.048	11.420
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.269	14.407	13.672
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	348.976	368.065
	Sundry Debtors	422.000	337.794
	Cash & Bank Balances	7.554	4.955	602.192
	Other Current Assets	0.000	0.000
	Loans & Advances	43.487	31.621
Total Current Assets		822.017	742.435	602.192
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	217.063	312.568	252.488
	Provisions	12.725	5.375
Total Current Liabilities		229.788	317.943	252.488
Net Current Assets		592.229	424.492	349.704
MISCELLANEOUS EXPENSES		0.000	0.059	0.117
TOTAL		622.570	452.006	374.913

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
Sales Turnover		898.682	754.779	554.075
Other Income		1.928	0.057	--
Total Income		900.610	754.836	554.075
Profit/(Loss) Before Tax		19.048	16.962	17.434
Provision for Taxation		7.212	4.540	3.305
Profit/(Loss) After Tax		11.836	12.422	14.129
Earnings in Foreign Currency :
Total Earnings		387.296	753.867	NA
Imports :
	Raw Materials	672.978	590.413
Total Imports		672.978	590.413	NA
Expenditures :
	Manufacturing Expenses	791.805	726.311	0.000
	Administrative and Other Expenses	26.431	23.035	0.000
	Directors Remuneration	1.314	1.110	3.923
	Interest	13.391	12.797	16.480
	Preliminary Expenses W / off	0.058	0.058	0.000
	Depreciation & Amortization	2.200	2.069	0.000
	Other Expenses	0.000	0.000	0.284
Total Expenditure		835.199	765.380	20.687

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	1.31	1.65	2.55
Net Profit Margin (PBT/Sales)	(%)	2.12	2.25	3.15
Return on Total Assets (PBT/Total Assets}	(%)	2.28	2.25	2.84
Return on Investment (ROI) (PBT/Networth)		0.09	0.09	0.10
Debt Equity Ratio (Total Liability/Networth)		3.22	3.05	2.53
Current Ratio (Current Asset/Current Liability)		3.58	2.34	2.39

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

• Land
• Building
• Plant and Machinery
• Office Equipments
• Vehicles
• Furniture and Fixture
• Computers
• Software

Bankers Charges Report as per Registry

Name of the company

REVASHANKAR GEMS LIMITED

Presented By

BANK OF INDIA, BULLION EXCHANGE BRANCH, MUMBAI

1) Date and description of instrument creating the change

Joint Deed of Hypothecation

Dated 3^rd March, 2003

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 273.500 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Current Assets of the Borrower namely, Stocks of Raw Materials, Stock in Process, Semi finished and finished goods i.e. rough, cut and polished diamonds, stores and spares, bills receivable and book debts and all other movables, both present and future whether now lying loose or in cases or which may at any time during the continuance of the security or be in or about of the borrowers factories, premises and godowns situate at Mumbai in the State of Maharashtra or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or deliver, howsoever and wheresoever in the possession of the borrower and either by way of substitution or addition.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest shall be charged at such rate/ rates as may be determined by the following Banks from time to time for the facilities granted by the said Banks as under :

Name of the Bank	Pre-Shipment	Post – Shipment	Total
Bank of India	44.500	75.500	120.000
State Bank of India	41.000	76.000	117.000
ABN AMRO Bank N. V.	8.000	12.000	20.000
The Antwerp Diamond Bank N. V.	6.600	9.900	16.500
Total	100.100	173.400	273.500

5) Name and Address and description of the person entitled to the charge.

Bank of India

Bullion Exchange Branch,

Shaikh Memon Street,

Mumbai – 400002

State Bank of India

Diamond Branch,

Majestic Shopping Centre,

J. S. S. Road, Girgaum,

Mumbai – 400004

ABN AMRO Bank N. V.

14, Veer Nariman Road,

Mumbai – 400021

The Antwerp Diamond Bank N. V.

2^nd Floor, Engineering Centre,

9 Mathew Road, Opera House,

Mumbai – 400004

6) Date and brief description of instrument modifying the charge

Dated 22^nd November, 2005

• Second supplemental joint deed of hypothecation
• Second supplemental working capital consortium agreement
• Second supplemental inter – se agreement

[All the above documents constitute a single modification of the original charge]

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The original charge dated 3^rd March, 2003 for Rs. 273.500 Millions has been modified from time to time as under :

On 15^th November, 2003 the total limit was enhanced from Rs. 273.500 Millions to Rs. 387.000 Millions as under :

Name of the Bank	Pre-Shipment	Post – Shipment	Total	Rate of Interest
Bank of India	52.000	88.000	140.000	As advised by Banks from time to time
State Bank of India	45.000	92.000	137.000
ABN AMRO Bank N. V.	28.000	42.000	70.000
The Antwerp Diamond Bank N. V.	16.000	24.000	40.000
Total	141.000	246.000	387.000

The above aggregate facilities of Rs. 387.000 Millions are secured against hypothecation by way of first charge in favour of the Bank :

All the singular the Borrower’s stocks of raw materials, semi finished goods, plant and machinery, stores and spares bills receivables, book debts and all other movables of the borrowers including document of title of goods and others assets such as outstanding moneys, receivables, including receivables by way of cash assistance and / or cash including under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs, excise duties under the Duty Drawback Credit scheme or any other scheme bills, invoices, documents, contracts, engagements, securities, investments and right both present and future of the borrower being and lying in the borrower premises or godowns at Mumbai rented premises or Godown at or whether lying loose and in cases or otherwise used in the business of the borrower at the said site or elsewhere and or in transit, now belonging to or that may at any time during the continuance of the said facilities and this security belonged to the borrower or that may be held by any party to the disposition of the borrower.

Vide this modification the security of the hypothecated assets created as per the Joint Deed of Hypothecation dated 03.03.2003, shall with effect from 22.11.2005 constitute a continuing security by way of first charge in favour of the said banks for the repayment and discharge by the borrower to the said banks at Mumbai on demand of all the balances outstanding from time to time due on or in respect of the enhanced revised facilities aggregating to Rs. 540.000 Millions mentioned hereunder :

Name of the Bank	Existing			Revised			Total
	EPC	PSC	Total	EPC	PSC	Adhoc EPC / PSC
Bank of India	52.000	88.000	140.000	60.000	100.000	32.000	192.000
State Bank of India	45.000	92.000	137.000	55.000	100.000	31.000	186.000
ABN AMRO Bank N. V.	28.000	42.000	70.000	35.000	52.500	17.500	105.000
The Antwerp Diamond Bank N. V.	16.000	24.000	40.000	19.000	28.500	9.500	57.000
Total	141.000	246.000	387.000	169.000	281.000	90.000	540.000

And all costs, charges and expenses and other moneys payable in respect of the said facilities.

The security created under the Joint Deed of Hypothecation and as modified by the Supplemental Deed of Hypothecation shall rank pari passu in all respects without any preferences or priorities of one over the other to all intents and for all purposes.

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	Indian Rupees
US Dollar	1	Rs.39.34
UK Pound	1	Rs.82.66
Euro	1	Rs.57.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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