MIRA INFORM REPORT

Report Date :

18.04.2011

IDENTIFICATION DETAILS

Name :	SUNJEWELS INTERNATIONAL LIMITED
Registered Office :	Unit No. 116, SDF –IV, Seepz, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.01.1999
Com. Reg. No.:	11-117905
CIN No.: [Company Identification No.]	U51398MH1999PLC117905
TAN No.: [Tax Deduction & Collection Account No.]	MUMS24734D
PAN No.: [Permanent Account No.]	AADCS3647P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of High Quality Diamond and Colour Stone Jewellery

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 535660
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealing 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Vishwas Patkar
Designation :	Accounts Manager
Contact No.:	91-22-30127731
Date :	18.04.2011

LOCATIONS

Registered Office/ Factory :	Unit No. 116, SDF –IV, Seepz, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-30882200
Fax No.:	91-22-66919739
E-Mail :	info@sunjewels.com , accounts@sunjewels.com
Website :	http://www.sunjewels.com
Area:	4500sq.fts
Location:	Owned

DIRECTORS

AS ON 23.08.2010

Name :	Mr. Shishir B Nevatia
Designation :	Director
Address :	33, Vithal Nagar, CHS, 11tj Road, Jvpd, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	07.05.1954
Date of Appointment :	18..01.1999
Name :	Mrs. Kavita S Netatia
Designation :	Director
Address :	33, Vithal Nagar, CHS, 11tj Road, Jvpd, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	02.07.1957
Date of Appointment :	30.03.1999
Name :	Mr. Kapil S Nevatia
Designation :	Director
Address :	33, Vithal Nagar, CHS, 11tj Road, Jvpd, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	16.06.1978
Date of Appointment :	18.01.1999
Name :	Mr. Gopal K Kejriwal
Designation :	Director
Address :	24/76, Birhana Road, Kanpur, Uttar Pradesh- 208001, India
Date of Birth/Age :	24.02.1956
Date of Appointment :	01.01.2007
Name :	Mr. Neeraj S Nevatia
Designation :	Director
Address :	33, Vithal Nagar, CHS, 11tj Road, Jvpd, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	15.02.1982
Date of Appointment :	05.06.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.08.2010

Names of Shareholders	No. of Shares
Shishir B Nevatia	65625
Kavita S Nevatia	65620
Kapil S Nevatia	18750
Bharat Palshetkar	1
Vivek Gaokar	1
Vikram Kadam	1
Rajendra Mohite	1
Mohan Bomera	1
Sunjewels India Private Limited, Mumbai	1200000
Total	1350000

Equity Share Breakup (Percentage of Total Equity)

AS ON 23.08.2010

Category	Percentage
Bodies Corporate (not mentioned above)	88.89
Directors or relatives of directors	11.11
Total	100.000

BUSINESS DETAILS

Line of Business :	Manufacturer of High Quality Diamond and Colour Stone Jewellery
Terms :
Selling :	Cash, Credit (30 days, 60 days, 90 days)
Purchasing :	Cash, Credit (30 days, 60 days, 90 days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Jewellery	Nos.	35000	35000	60116

GENERAL INFORMATION

Customers:

• End Users
• OEM’s

Employees:

100 (Approximately)

Bankers :

Bank of India, SEEPZ BRANCH,MIDC -SEEPZ, Andheri (East), Mumbai - 400096, Maharashtra, India

Facilities:

Cash Credit – Rs.45.000 Millions

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Working Capital Loan from Bank of India	6.739	0.000
Car Loans	4.965	0.000
Total	11.704	0.000

Note:

1. The PSIJPCFC loans from Bank of India are secured by hypothecation of stock, Receivables and other current Asset of the Company.
2. All the loans are further secured by first charge of fixed asses of the Company apart from those financed by the Bank as collateral security.
3. All the loans are further secured by the personal guarantees of Shri Shishir Nevatia, Shri Kapil Nevatia and Shri Neeraj Nevatia Directors of the Company.
4. Car Loans from ICICI bank Limited. are secured against the mortgage of cars

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Intercorperate Deposit	65.940	40.427
Total	65.940	40.427

Banking Relations :

--

Auditors :

Name :

A K Muraka and Company

Chartered Accountant

Address :

A-104, Hemu Classic, Opposite New Era Cinema, Malad (West), Mumbai-400064, Maharashtra, India

Holding Company:

Sunjewels India Private Limited

Associates/Subsidiaries :

Name of Company:	ELEGANZA JEWELLERY LIMITED
Address:	102, SDF IV, Seepz, Andheri (East, Mumbai-400096, Maharashtra, India
Tel No.:	91-22-30882200
Fax No.:	91-22-66919739
E Mail :	info@sunjewels.com
Website:	http://www.sunjewels.com

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
1350000	Equity Shares	Rs.10/- each	Rs.13.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	500.000

Expected Sales (2011-2012) : Rs.600.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		13.500	13.500	11.500
2] Share Application Money		0.000	0.000	10.000
3] Reserves & Surplus		120.415	62.517	16.228
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		133.915	76.017	37.728
LOAN FUNDS
1] Secured Loans		11.704	0.000	0.000
2] Unsecured Loans		65.940	40.427	51.150
TOTAL BORROWING		77.644	40.427	51.150
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		211.559	116.444	88.878
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.842	7.196	6.891
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.869	55.685	66.120
	Sundry Debtors	125.558	65.918	26.856
	Cash & Bank Balances	14.075	5.555	7.693
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.600	4.341	3.114
Total Current Assets		223.102	131.499	103.783
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.539	16.916	19.144
	Other Current Liabilities	7.246	4.757	2.193
	Provisions	0.660	0.651	0.549
Total Current Liabilities		21.445	22.324	21.886
Net Current Assets		201.657	109.175	81.886
MISCELLANEOUS EXPENSES		0.060	0.073	0.090
TOTAL		211.559	116.444	88.878

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	333.672	172.179	125.808
		Other Income	4.781	17.410	0.175
		TOTAL (A)	338.453	189.589	125.983
Less	EXPENSES
		Raw Material Consumed	207.350	92.546	97.133
		Purchase of Traded Goods	7.437	0.002	1.768
		Manufacturing and Other Expenses	63.200	45.374	22.444
		Preliminary Expenses W/off	0.012	0.018	0.018
		Increased / (Decreased) In stock	(6.043)	6.563	(16.204)
		TOTAL (B)	271.956	144.503	105.159
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		66.497	45.086	20.824
Less	FINANCIAL EXPENSES (D)		6.698	4.960	0.307
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		59.799	40.126	20.517
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.666	1.419	1.394
	PROFIT BEFORE TAX (E-F) (G)		58.133	38.707	19.123
Less	TAX (I)		0.200	0.389	0.443
	PROFIT AFTER TAX (G-I) (J)		57.933	38.318	18.680
	PRIOR YEAR ADJUSTMENT		0.035	0.028	0.00
	SHORT PROVISION FOR FBT		0.000	0.000	0.002
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		53.011	14.722	(3.956)
	BALANCE CARRIED TO THE B/S		110.909	53.011	14.722
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	325.929	171.316	117.038
	TOTAL EARNINGS		325.929	171.316	117.038
	IMPORTS
		Raw Materials	133.293	57.474	51.559
		Stores & Spares	1.444	0.000	0.135
	TOTAL IMPORTS		134.737	57.474	51.694
	Earnings Per Share (Rs.)		42.91	28.38	16.24

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	17.12	20.21	14.82
Net Profit Margin (PBT/Sales)	(%)	17.42	22.49	15.20
Return on Total Assets (PBT/Total Assets}	(%)	24.96	27.91	17.28
Return on Investment (ROI) (PBT/Networth)		0.43	0.51	0.51
Debt Equity Ratio (Total Liability/Networth)		0.74	0.82	1.94
Current Ratio (Current Asset/Current Liability)		10.40	5.89	4.74

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sundry Creditors for Goods	1.228	1.347	18.894
Sundry Creditors for Expenses	12.311	15.569	0.250

Note:

The Registered office of the company has been shifted from Vitthal Nagar, CHS Plot No. 33, N S Road, 11, JVPD Scheme, Vile Parle, Mumbai-400049, Maharashtra, India to the present address w.e.f. 01.07.2007

OPERATIONS:

After having undergone challenging times in the financial year 2009-10, the Indian gems and jewellery industry is experiencing an upward trend and the same is being reflected in the performance of the Company. The turnover of the Company during the financial year 2009-10 was f 333.672 Millions as compared to f 172.179 Millions for the previous year and the Company has earned a profit after providing for tax liability of 7 57.933 Millions as compared to a profit of 7 38.317 Millions for the previous year.

Form 8:

Corporate identity number of the company	U51398MH1999PLC117905
Name of the company	SUNJEWELS INTERNATIONAL LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No.116, SDF – IV, SEEPZ, ANDHERI (EAST), MUMBAI – 400093, Maharashtra, INDIA
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge Others
Particular of charge holder	BANK OF INDIA
Nature of instrument creating charge	1.Agreement of Hypothecation of Plant And Machinery Stocks And Book Debts
Date of instrument Creating the charge	23/09/2009
Amount secured by the charge	Rs.45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Stipulated By Bank From Time To Time Terms of Repayment As Stipulated By Bank From Time To Time Margin As Stipulated By Bank From Time To Time Extent and Operation of the charge First Charge(Present And Future)-Total Limit Rs.45.000 Millions 1.Export Packing Credit=Rs.30.000 Millions 2.Gold Loan =Rs.30.000 Millions Max 1+2 =Rs.30.000 Millions 3.Fbp/Fbn/Fbd/Odfobc/=Rs.30.000 Millions Max 1 To 3 Aggregate =Rs.45.000 Millions And/Or As Stipulated By Company From Time To Time Others As Stipulated By Bank From Time To Time And As Per Agreement Attached And As Per Sanction Letter Of The Bank
Short particulars of the property charged	First Charge(Present And Future)=(1)Hyp.Of All Plant and Machines Inc. Automatic and Semi Automatic Diamond Cutting, Polishing and Setting Machines, Dust Collecting Machines, Investment Mixers, Furnace Electro plaing Machines Etc,(Installed Or To Be Installed and Purchased Or To Be Purchased), Furniture and Fixtures, Computers ,Printers, Etc. Hypothecation Of All Stock Raw Materials/Goods/Invetnories Etc .Like Gold Silver, Diamonds, Precious and Semi Precious Stones, Alloys and All Other Raw Materials, Work In Proces, Finished Goods, Ornaments Jewellery Ketp At Borrower Place Or Wherever Else Or In Transit Hypothecation Of All Book Debts and Receivables Including Export Documentary Bills Hypothecation Of All Current, Movable And Fixed Assets

Fixed Assets:

· Furniture and Fittings

· Computer

· Machinery

· Office Equipments

· Furniture and Fittings

· Air Conditioner

· Electrical Installation

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.44.52
UK Pound	1	Rs.72.71
Euro	1	Rs.64.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
TOTAL		48

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.