MIRA INFORM REPORT

Report Date :

02.07.2011

IDENTIFICATION DETAILS

Name :	PRIORITY GOLD PRIVATE LIMITED

Registered Office :	Plot No. 121, Street No. 15/18, MIDC, Andheri (East), Mumbai-400 093, Maharashtra

Country :	India

Financials (as on) :	31.03.2011 (Provisional)

Date of Incorporation :	12.01.2011

Com. Reg. No.:	11-212237

Capital Investment / Paid-up Capital :	Rs.0.100 Million

CIN No.: [Company Identification No.]	U28990MH2011PTC212237

IEC NO.:	0311008232

TAN No.: [Tax Deduction & Collection Account No.]	MUMP29088D

PAN No.: [Permanent Account No.]	AAFCP7974G

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Plain Gold Jewellery Comprising Necklaces, Bangles, Pendant Sets, Chains etc.

No. of Employees :	89 [(In Office 6) (In Factory 70) (In Branch 13) (Approximately)]

RATING & COMMENTS

MIRA’s Rating :

RATING

STATUS

PROPOSED CREDIT LINE

New Business

Status :	New Company

Payment Behaviour :	Unknown

Litigation :	--

Comments :	Subject is a new company and yet to commence operation. The management declined to part with the valuation report claiming that its is a personal property of the promoter director. No further details could be made available. It would be advisable to take adequate securities while dealing with the subject.

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

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. Tushar Mehta
Designation :	Director
Date :	28.06.2011

LOCATIONS

Registered Office :	Plot No. 121, Street No. 15/18, MIDC, Andheri (East), Mumbai-400 093, Maharashtra, India
Tel. No.:	91-22-28381818
Fax No.:	91-22-28381616
E-Mail :	tushar@priorityindia.com
Website :	http://www.priorityindia.com
Area :	10000 sq. ft. (Rented) Owned by holding company namely Priority Jewels Private Limited.

Factory :	Door No. 33, Panaimarathur Road, Telungupalayam, Coimbatore, Tamilnadu, India
E-Mail :	jaison@priorityindia.com
Area :	Rented

DIRECTORS

As on 12.01.2011

Name :	Mr. Shailesh Sangani
Designation :	Director
Address :	10-D, Ananta Apartment, Dr. Rajaballi Patel Road, Breach Candy, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	53 Years
Qualification :	B. Com
Experience :	22 Years
IEC No.:	0311008232
Pan No.:	AAFCP7974G

Name :	Mr. Tushar Mehta
Designation :	Director
Address :	B-301, Rising Sun Apartment, Juhu Church Road, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	53 Years
Qualification :	M. Com
Experience :	30 Years

Name :	Mr. Jaison Simon Panakkal
Designation :	Director
Address :	Flat No. 501, 5^th Floor, Horizon Co-operative Housing Society Limited, Raviraj Complex, Off New Link Road, Andheri (West), Mumbai-400053, Maharashtra, India
Date of Birth/Age :	42 Years
Qualification :	B. Com
Experience :	18 Years

Name :	Mrs. Manisha Shailesh Sangani
Designation :	Director
Address :	10-D, Ananta Building, Dr. Rajabally Patel Road, Breach Candy, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	10.04.1963

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.01.2011

Names of Shareholders		No. of Shares
Priority Jewels Private Limited, India		946000
Shailesh Sangani		3900
Manisha Shailesh Sangani		100
Jaison Simon Panakkal		50000

Total		1000000

List of Allottees

As on 07.05.2011

Particular		No. of Shares
Priority Jewels Private Limited, India		940000
Jaison Simon Panakkal		50000

Total		990000

BUSINESS DETAILS

Line of Business :	Manufacturer of Plain Gold Jewellery Comprising Necklaces, Bangles, Pendant Sets, Chains etc.

Terms :
Selling :	Cash and Credit

Purchasing :	L/C

GENERAL INFORMATION

Customers :	Retailers

No. of Employees :	89 [(In Office 6) (In Factory 70) (In Branch 13) (Approximately)]

Bankers :	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India Ratnakar Bank Limited, One Indiabulls Centre, Tower 2, 6^th Floor, Lower Parel, Mumbai-400013, Maharashtra, India State Bank of Hyderabad, Overseas Branch, Colaba, Mumbai-400039, Maharashtra, India Axis Bank Limited Bank of Baroda Ing Vysya Bank Limited

Facilities :	Rs.200.000 Millions (From State Bank of Hyderabad) Rs.150.000 Millions (From Yes Bank Limited) Rs.200.000 Millions (From Ratnakar Bank Limited)


Banking Relations :	--

Auditors :
Name :	M.B. Nayak and Company Chartered Accountant
Address :	401-A, Vertex Vikas, Sir M.V. Road, Near Andheri Railway Station, Andheri (E), Mumbai-400069, Maharashtra, India
Tel. No.:	91-22-26831199
Fax No.:	91-22-26831188

Associates/Subsidiaries :	Priority Jewels Private Limited Address: Level 2, Plot D-6, MIDC, Andheri (E), Mumbai-400093, Maharashtra, India Line of Business: Manufacturing and Marketing of Diamond Studded Gold Jewellery.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

AS ON 31.03.2011 (PROVISIONAL)

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

PROVISIONAL ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.100
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		3.700
TOTAL BORROWING		3.700
DEFERRED TAX LIABILITIES		0.000

TOTAL		3.800

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000

INVESTMENT
DEFERREX TAX ASSETS		0.000
		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	2.300
	Other Current Assets	0.700
	Loans & Advances	0.200
Total Current Assets		3.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		0.000
Net Current Assets		3.200

MISCELLANEOUS EXPENSES		0.600

TOTAL		3.800

PROVISIONAL PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	0.000
		Other Income	0.000
		TOTAL	0.000

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	0.000

	PROFIT BEFORE TAX		0.000

Less	TAX		0.000

	PROFIT AFTER TAX		0.000

	Earnings Per Share (Rs.)		NA

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	0.00

Net Profit Margin (PBT/Sales)	(%)	0.00

Return on Total Assets (PBT/Total Assets}	(%)	0.00

Return on Investment (ROI) (PBT/Networth)		0.00

Debt Equity Ratio (Total Liability/Networth)		37.00

Current Ratio (Current Asset/Current Liability)		0.00

LOCAL AGENCY FURTHER INFORMATION

PROJECTED BALANCE SHEET ANALYSIS

Rs. in Millions

PARTICULAR	31.03.2012 (Projected)	31.03.2013 (Projected)	31.03.2014 (Projected)

ASSETS
Fixed Assets:
Gross Block Less Intangible	10.000	15.000	20.000
Accumulated Depreciation	0.000	1.500	3.000
Revaluation Reserves	0.000	0.000	0.000

Net Block	10.000	13.500	17.000
Capital WIP	0.000	0.000	0.000
Investment	0.000	0.000	0.000

Current Assets:
Inventories
Raw Material
Indigenous
Raw Material	160.000	193.200	212.500
Stock in Progress	0.000	0.000	0.000
Finished Goods	260.000	296.100	326.100
Stores and Spares	0.000	0.000	0.000
Traded Products	0.000	0.000	0.000
Others	0.000	0.000	0.000
Total	420.000	489.300	538.600

Debtors
More than 6 months	0.000	0.000	0.000
Export receivable	0.000	0.000	0.000
Local receivable	400.000	535.000	600.000
Total	400.000	535.000	600.000

Cash and Bank Balance
In Margin Money Account	80.000	100.000	130.000
Cash and Bank Balance	7.500	27.500	19.500

Loans and Advances
Advance Tax / Staff Advance	17.000	42.800	56.000
Suppliers and Others	2.500	7.500	15.000

Others
Of Current Nature	3.000	5.000	10.000
Of Non-Current Nature	0.000	0.000	0.000

Total Current Assets	930.000	1207.100	1369.100

Total Assets	940.000	1220.600	1386.100


LIABILITIES

Capital
Equity	112.500	150.000	150.000
Irredeemable Preferences Shares/ Share Application	0.000	0.000	0.000
Quasi Equity*	37.500	0.000	0.000

Reserves and Surplus	42.000	126.300	231.100
Intangible Assets	0.000	0.000	0.000
Prem Expenses / Miscellaneous Expenses Not Written Off	0.000	0.000	0.000
Revaluation Reserves	0.000	0.000	0.000
TANGIBLE NETWORTH

Term Liabilities (> 1 Year)
Secured	0.000	0.000	0.000
Deferred Tax Liability / UNS LNS	0.000	0.000	0.000

Current Liabilities
Creditors	720.000	900.000	950.000
Other Liabilities	8.000	7.500	10.000
Provision
Tax and Others	20.000	36.800	45.000
Dividend	0.000	0.000	0.000
Bank Borrowings	0.000	0.000	0.000
Others	0.000	0.000	0.000

LT Liabilities due within 1 year
Total Current Liabilities	748.000	944.300	1005.000

Total Liabilities	940.000	1220.600	1386.100

INCOME STATEMENT

Rs. in Millions

PARTICULAR	31.03.2012 (Projected)	31.03.2013 (Projected)	31.03.2014 (Projected)

Manufacturing Sales
Export	0.000	0.000	0.000
Domestic	4583.300	6111.000	6722.100

Trading Sales
Export	0.000	0.000	0.000
Domestic	0.000	0.000	0.000

Gross Sales	4583.300	6111.000	6722.100
(-) Excise Duty and Sales Tax	0.000	0.000	0.000
Net Sales	4583.300	6111.000	6722.100
Other Operating Income	0.000	0.000	0.000
Total Income	4583.300	6111.000	6722.100

Expenses
Raw Material Consumed
Opening Stock	0.000	160.000	193.200
Purchase of Raw Materials	4774.300	5842.000	6375.600
Closing Stock	160.000	193.200	212.500
	4614.300	5808.800	6356.300

Manufacturing Expenses	100.000	130.500	152.500
Increase / Decrease in WIP	0.000	0.000	0.000
Depreciation	0.000	1.500	1.500

Cost of Production	4714.300	5940.800	6510.300
Increase/ Decrease in Finished Goods	(260.000)	(36.100)	(30.000)

Trading Activity
Opening Stock	0.000	0.000	0.000
Purchase	0.000	0.000	0.000
Closing Stock	0.000	0.000	0.000
Cost of Sales	4454.300	5904.700	6480.300
Gross Profits	129.000	206.300	241.800
Personnel Cost	7.500	8.200	10.000
Selling and Administration	2.500	4.000	5.000
Selling Expenses	0.000	0.000	0.000
Other Expenses	2.000	3.000	0.000
Interest	55.000	70.000	77.000
Operating Profit	62.000	121.100	149.800
Non-Operating Surplus (Deficit)
Profit Before Tax	62.000	121.100	149.800
Provision for Tax and Deferred Tax	20.000	36.800	45.000
Profit After Tax	42.000	84.300	104.800
Dividend
Equity	0.000	0.000	0.000
Preferences	0.000	0.000	0.000
Dividend Tax	0.000	0.000	0.000
Retained Earning	42.000	84.300	104.800
Cash Generation	42.000	85.800	106.300

FINANCIAL TOOL KIT

PARTICULAR	31.03.2012 (Projected)	31.03.2013 (Projected)	31.03.2014 (Projected)

Growth in New Sales (p.a.)	0.00%	33.33%	10.00%
Trading Sales/ Total Sales	0.00%	0.00%	0.00%
Material Cost / Net Mfg. Sales	100.68%	95.05%	94.56%
Manufacturing Cost / Net Sales	0.00%	0.00%	0.00%

Liquidity Ratios
Current Ratio	1.24	1.28	1.36
Quick Ratio	0.66	0.71	0.77
Current Ratio (Excl. TL Instt. As CL)	1.24	1.28	1.36
Turnover Ratios
Inventory (Mths)	1.13	0.99	1.00
Trade Debtors (Mths)
Domestic	1.05	1.05	1.07
Export	0.00	0.00	0.00
Trade Creditors (Mths)	1.81	1.85	1.79

Leverage Ratios
Debt – Equity	NA	NA	NA
TOL/TNW	5.08	3.42	2.64
TOL/(TNW+QUASI EQUITY)	3.90	3.42	2.64
Interest Coverage	2.13	2.75	2.96
DSCR	1.76	2.23	2.38
Interest/ Borrowings	0.00%	0.00%	0.00%
OPBDDIT	11.70	19.26	22.83

Profit Ability Ratios
Gross Margin	2.81%	3.38%	3.60%
Operating Margin	1.35%	1.98%	2.23%
Net Margin	0.92%	1.38%	1.56%
Return on Capital Employed	12.45%	15.76%	16.44%
Return on Networth	27.18%	30.51%	27.50%
PBDIT	11.70	19.26	22.83
Plough Back Ratio	100.00%	100.00%	100.00%
Payout Ratio	0.00%	0.00%	0.00%

WORKING CAPITAL ASSESSMENT

Rs. in Millions

PARTICULAR	31.03.2012 (Projected)	31.03.2013 (Projected)	31.03.2014 (Projected)

Current Assets
Raw Material	160.000	193.200	212.500
(mths)	(0.42)	(0.40)	(0.40)
Work in Progress	0.00	0.00	0.00
(mths)	--	--	--
Finished Goods	260.000	296.100	326.100
(mths)	(0.70)	(0.60)	(0.60)
Others	0.00	0.00	0.00

Sundry Debtors
Domestic	400.000	535.000	600.000
(mths)	(1.05)	(1.05)	(1.07)
Export	0.00	0.00	0.00
(mths)	--	--	--

Cash and Bank Balance	87.500	127.500	149.500
Advances	19.500	50.300	71.000
Other CA	3.000	5.000	10.000
Total Current Assets	930.000	1207.100	1369.100

Creditors	720.000	900.000	950.000
(mths)	(1.81)	(1.85)	(1.79)
Other CL (Excl. Bank Borrowings)	28.000	44.300	55.000
Total Current Liabilities

WC Gap	182.000	262.800	364.100
25% Margin (Excl. Export Debtors)	232.500	301.800	342.300
Actual / Projected Net WC (CA-CL)	182.000	262.800	364.100

MPBF – I	0.00	0.00	21.800
MPBF – II	0.00	0.00	0.00
MPBF	0.00	0.00	0.00
Excess Borrowing	--	--	--

FUND FLOW ANALYSIS

Rs. in Millions

PARTICULAR	31.03.2012 (Projected)	31.03.2013 (Projected)	31.03.2014 (Projected)
SOURCES OF FUNDS

PAT	42.000	84.300	104.800
Depreciation	0.000	1.500	1.500
Other non cash expenses	0.000	0.000	0.000
Funds from operations

Increase in
Tem Liabilities	0.000	0.000	0.000
Share Capital + Quasi Equity	150.000	0.000	0.000
Share Premium/ Subsidy	0.000	0.000	0.000

Sale of Assets	0.000	0.000	0.000
Depreciation on Revalued Assets	0.000	0.000	0.000
Decrease in Investment and Non CA	0.000	0.000	0.000
Decrease in Net Working Capital	0.000	0.000	0.000

TOTAL SOURCES	192.000	85.800	106.300

USES OF FUNDS

Loss	0.000	0.000	0.000
Depreciation	0.000	0.000	0.000
Other Non Cash Expenses	0.000	0.000	0.000
Funds Lost in Operations	0.000	0.000	0.000

Purchase of Fixed Assets	10.000	5.000	5.000
Increase in Investment and Non CA	97.000	45.800	43.200
Repayment of Term Liability	0.000	0.000	0.000
Dividend Payout	0.000	0.000	0.000
Preliminary Expenses Incurred	0.000	0.000	0.000
Depreciation on Sale of Assets	0.000	0.000	0.000
Increase in Net Working Capital	182.000	80.800	101.300
TOTAL USES	289.000	131.600	149.500

Long Term Sources	19.200	85.800	106.300
Long Term Uses	107.000	50.800	48.200
Long Term Surplus (Deficit)	85.000	35.000	58.100
Short Term Sources	0.000	0.000	0.000
Short Term Uses	0.000	0.000	0.000

Short Term Surplus (Deficit)	0.000	0.000	0.000

Industry Scenario

India is the Largest Gold Market in the world and accounts for almost 600 to 800 Tones of Gold every year. Indians have been using Gold as ornaments in addition to its investment appeal. The unique social customs and rituals in India paves a way for Gold to be an important part of the marriage ceremony. Over a period of last many decades with a young but growing population, India has channeled huge amount of savings into Gold Jewellery. The resale value and ready encashment of Gold has created a very large Market for Gold in India. India accounts for 15% of the Global Gold Market and thus is the Largest Gold consumer in the world. Based on the World Gold Council estimate, India owns 18,000 tones of above ground Gold stock worth approximately $ 800 billion and represents 11% of global stock. Most of this Gold is in the form of Jewellery and ornaments. In the year 2009, Gold Jewellery accounted for around 75% of the total Indian Gold Demand, the remaining being 23% investment demand and 2% being decorative and industrial. Thus the demand of Gold Jewellery is almost of inelastic in India.

Industry Size and structure:

As per the estimates of the World gold Council, The Gold industry in India is highly localized and fragmented. Most of the players are small in size and are constituted as partnerships. The industry is broadly unorganized and works entirely on trust. The transactions are undertaken with parties who are known to each other. The draconian Gold control Act and import restrictions had made Gold as a medium of parallel economy in India. With the abolition of the Act and the liberalization of the Gold imports by Government of India in following years, the reduction of VAT to a very moderate rate of 1% across the country and The Hallmarking provisions have opened up the Gold industry to a more reliable and respectable Industry. The entire industry is now transformed and is getting more organized. It now has more than 50,000 retailers across the country and provides employment to a very large segment of skilled and unskilled workers. Due to its peculiar nature in India, the estimates of its size vary from Rs. 400000.000 millions to 800000.000 millions. In 2009, total Indian Demand reached US$ 19 Billion which is equivalent to 600 tones of Gold. India also exports a sizable amount of Gold and Diamond studded Jewellery.

Outlook:

The Industry is characterized by Entry Barriers, Low differentiation within the industry, supplier’s concentration and high working capital requirement. The combination of low profitability and high working capital requirements are two main features of Gold Jewellery manufacturing comi3anies. Till recently, majority of the Jewellery malcing was hand made by skilled artisans using traditional tools and methods. This is now undergoing a major change with modern casting and Machine work for all kind of Jewellery. Lighter weight /Big look Jewellery is being made in response to the Rising gold Prices. The one sided rise in Gold Prices may make some consumers more cautious but may also induce them to advance their purchases with an anticipation of further price rise. After a tough year in 2008-09, during which the Import of Gold in to India fell drastically, it has regained its momentum from the last year. Over the past ten years, the value of Gold Demand in India has increased at an average rate of 13% p.a. where as country’s real GDP, inflation and Population grew by 6%, 8% and 12% respectively. This clearly shows that the long term trend of Gold Consumption in India is very much intact. In fact, at the end of 2009, Indian consumer’s price expectations were strengthened by the Reserve Bank of India’s purchase of 200 tonnes of Gold from IMF and the transaction reinforced the perception among the local consumers that Gold is a reliable and safe as a monetary asset. However just like any other lifestyle product, Gold also undergoes changes in terms of designs, Fashions and contents. In the present age, better finishing, good modern designs and lighter weight Jewellery is in very good demand and hence new venture proposes to meet this demand.

Strategy:

The Company plans to operate in three major segments in its business:

a) Plain Gold Machine Made Bangles and Chains.

b) Hand Made Jewellery from Kolkata; Rajkot; Coimbatore etc.

c) Bridal sets in Antique Jewellery designs with Kundan; Jadau and Polki.

The designing for all the above products will be in-house as well as sources from outside by working closely with the plain gold jewellery retailers and manufacturers. In the first phase, the products will be focused for the South Indian Market and subsequently will be introduced to the North and then the East Indian Market.

India, though a very vast market is also very diverse in terms of consumer tastes and preferences. Each region in the country differs from the other markets and hence the manufacturing of Jewellery was also regional to a great extent. The Retailers also could not expand beyond their own surroundings and traditional client base. However, last ten yeas have seen a major change in the Indian society. Spread of education, television, internet, shopping malls, overseas travels, flow of easy money etc. are resulting in to some new trends and a strong unified” demand base across the country is being created. This trend is evident in many aspects like clothing, shoes, and food habits. The Jewellery Business is also now changing wherein a Retail Jeweller is now required to stock a large variety of Products and Designs to satisfy the consumers. This obviously means that they need to source the diverse range from many different vendors and regions. Similarly the manufacturers are also now able to sell their products pan India and need wider distribution channels and reach. These market conditions have reached a stage wherein there is a Gap between demands of the retailers and the capabilities of the suppliers. Many Jewellers lack the knowledge, reach and infrastructure to buy from multiple vendors across the country and man manufacturers lack the selling capabilities as they are good only at making of Jewellery. It is precisely this GA that the company desires to fulfill by intelligent positioning the company between these two elements. It intends to procure from a large vendor base from all over India, maintain an initial sample line of designs and provide all the verities to the retail Jeweller under one roof with an assurance of good quality and timely deliveries. This Business Plan will be medium to low Margin with a large volume in terms of sales. With the normal payment cycle n t exceeding beyond a month, the capability of the company to do six or seven turn around of its initial investment t can bring in a strong ROI.

The means to achieve the above goals includes:

a) An independent Design studio and employing Designers on retainer-ship basis.

b) Strong and Experienced marketing and Business Promotion team

c) Good distribution and service network to reach all its customers

d) Establishment of a pilot manufacturing plant to begin with leading to production of many machine ma e products in house.

e) Management of Gold Price volatility.

Business Model and Competitive Analysis:

The Company plans to cater to a niche business segments, namely, business to business. The major portion of sales in the first year is expected from the supply to Big Jewellers/Chain Stores across South India and subsequently all over India. The Company envisages total sales of Rs.4580.000 millions for the current year and the company as on date has achieved sales of Rs.75.000 millions.

B to B Business:

PJPL has a ready clientele of more than 300 top Jewellers across India. In the course of the last two years PJPL has opened regional offices in Delhi, Kolkata, Ahmadabad, Patiala, Bhopal, Chennai and a branch office in Zaveri Bazar, Mumbai. These offices are manned by trained staff and are engaged in servicing Jewellery retailers across the region. PJPL keeps ready stock of products at all these offices and offers off-the-shelf deliveries to clients. For the South India Market, PJPL has employed three senior sales staff who regularly visits clients in Chennai, Karnataka, Kerala and Andhra Pradesh. PJPL has focused during the last six months on broad basing and further expanding its client base across non metros and interior Indian Market. This entire ready infrastructure can easily be made available to Priority Gold to achieve its objectives.

Inter firm comparison:

There is a large number of jewellery wholesalers in India located in major metros. However, most of them form part of the unorganised market and not much information is available about them as the industry is very secretive. The traditional big players in the industry are Emerald Gold, Prakash Gold Palace, Chain and Chain, Sangam Chain etc. Whereas companies like Tanishq, TBZ, Pc Chandra, Joy Alukkas, PC Jewellers etc. Etc. are major players in to direct retailing.

ANIL B VIRANI (GUARANTOR)

CAPITAL ACCOUNT

PARTICULAR	31.03.2010 (Rs. in Millions)	PARTICULAR	31.03.2010 (Rs. in Millions)
To Household / GNRl Expense	1.832	By Balance	384.909
To Rent / Elct/ Tele/ ETC	0.398	By Net Income	7.319
To Professional Tax	0.002
To Income Tax	0.042	By Profit From REG. Firm
To Wealth Tax	0.140	Park Infotech	0.007
To LIC	0.000	Shanty Enterprise	12.976
To TDS Remuneration	0.179
To TDS Rent	0.040
To TDS Interest	0.069
Net Loss REG Firm VBROS	0.000
Net Loss Park Infotech 2009	0.003
Profit Revrse Park Info 2009	0.015
To Bank Commission	0.003
To Net Capital	402.488

TOTAL	405.211	TOTAL	405.211

BALANCE SHEET

LIABILITIES	31.03.2010 (Rs. in Millions)	ASSETS	31.03.2010 (Rs. in Millions)
		Fixed Assets	54.773
Anil B Virani	402.488	Investment in Shares	356.979
Loans and Advances	689.378	Other Investment	439.451
Other Liabilities	0.066	Loans and Advances	94.227
		Cash on Hand	0.212
		Bank Balances	143.971
		Deposit A/C	1.105
		Jewellery	1.214

TOTAL	1091.932	TOTAL	1091.932

INCOME AND EXPENDITURE ACCOUNTS

PARTICULAR	31.03.2010 (Rs. in Millions)	PARTICULAR	31.03.2010 (Rs. in Millions)
To Varanis	0.005	By Bank Interest	0.010
		By Dividend	1.965
		By Interest	0.685
		By Remuneration	0.900
		By Rent Income (Unit HSE)	0.300
		By Assets P/L	3.464
By Net Income / Loss	7.319

TOTAL	7.324	TOTAL	7.324

NETWORTH STATEMENT OF MR. SHAILESH SANGANI

Particular	Rs. in Millions
Fixed Assets – Annexure A	4.938
Investment – Annexure B	84.148
Current Assets – Annexure C	57.265
Total	146.351

Less: Unsecured Loans – Annexure D	52.817
Current Liabilities – Annexure E	0.023
Net Worth	93.511

MR. SHAILESH SANGANI	RS. IN MILLIONS

ANNEXURE A - FIXED ASSETS

Air Conditioner	0.170
Flat at New Delhi	4.316
House Hold Goods	0.452
TOTAL	4.938

ANNEXURE: B — INVESTMENTS
Investment:
MEP UTI 1995	0.010
P.P.F	2.118
Jewellery	0.192
Residential premises — Ananta	60.419

Mutual Funds:
HDFC Long term Advance Fund	0.040
Reliance Tax Saver Growth Plan	0.030
Principal Personal Tax Saver Fund	0.040

Bonds:
Rural Electrification Limited	5.000

Shares:
ABB Limited	0.197
Alstom Projects	0.124
Amber Exports Private Limited	0.077
Areva	0.346
BGR Energy Systems Limited	0.029
BHEL	0.416
Crompton Greaves Limited	0.044
Edeiweiss Capital	0.007
Excel Laser Tech Private Limited	0.250
Gitanjali Laser House Private Limited	0.070
Gitanjali GE	0.019
Gitanjali Impex Private Limited	0.050
HDFC Bank Limited	0.517
Housing Dev Fin. Company	0.172
ICICI Bank Limited	0.277
Indus Ind Bank	0.029
Infra Dev Finance	0.079
Just Lifestyle Private Limited	0.315
Kotak Bank	0.251
Larsen and Toubro Limited	0.915
Met Life India Private Limited	1.200
NTPC Limited	0.116
Power Grid	0.081
Priority Jewels Private Limited	5.450
Priority Marketing Private Limited	0.000
Priority Retail Ventures Private Limited	0.050
Prism Sec un ties Services Limited	0.500
PTC India	0.013
Reliance	0.581
Reliance Petro	0.144
Reliance Power Limited	2.988
Siemens Limited	0.208
State Bank of India	0.597
Tata Steel	0.079
Thermax Limited	0.063
Xcaliber Laser System Private Limited	0.001
Xcaliber Laser System Private Limited	0.043
TOTAL	84.148

ANNEXURE: C - CURRENT ASSETS
Share Application	0.550

Bank Balance:
Axis Bank Limited	0.042
Bank of Baroda	0.018
Ing Vysya Bank Limited	0.093
Cash in Hand	0.100

Deposits:
MTNL	0.006
Electricity	0.030

Loans and Advances:
AditI S. Sangani	5.000
Anamika Creations	0.400
Delip Choudhary	0.116
Excel Laser Technologies Private Limited	0.085
Gili India Limited	0.138
Jilaba Software Private Limited	0.500
Just Life Style Private Limited	18.945
Priority Jewel Private Limited C/A	0.057
Priority Jewel Private Limited	16.289
Priority Retail Venture Private Limited	0.012
Ramnik Pahari	0.250
Ritesh Manshi	0.050
S. Balagee	3.000
Singari Nityanand Trinath	0.200
Tushar A. Mehta	0.700
Bhupendra FT. Sangani	2.594

Prepaid Taxes:
Advance tax AY 2007-08	0.045
Advance tax AY 2008-09	4.190
Self assessment tax AY 2006-07	0.047
Self assessment tax AY 2008-09	0.464
Self assessment tax AY 2009-10	1.100
TDS on Bond Int. AY 2005-06	0.000
TDS on Salary AY 2006-07	0.424
TDS on Salary AY 2007-08	0.895
TDS en Salary AY 2008-09	0.703
TDS AY 2009-10	0.221
TOTAL	57.265

ANNEXURE - D UNSECURED LOANS

Arihanta Diamonds	1.500
Gunvant J, Mehta	2.000
Jabiben D. Modi	0.500
Jay Enterprise	7.000
Manisha Sangani	30.367
Manish Corporation	1.500
Manish Trading Corporation	1.500
Mehul Choksi	6.950
Sanjay Gems	1.500
TOTAL	52.817

ANNEXURE E – CURRENT LIABILITIES
Gili India Limited	0.023
TOTAL	0.023

IMMOVABLE PROPERTY LANDS

NAME OF THE VILLAGES OR TALUKA WHERE THE LANDS ARE SITUATED TOGETHER WITH SURVEY NO.	VILLAGE-VEVJI, TALUKA-TALASARI, DIST. THANE, MAHARASHTRA
Ancestral of self acquired	Self acquired
If encumbered, to what extent	Nil
Extent in acres (wet/dry)	30% share of 24 acre plot
Market value per acre (In Rs.)	Cost Rs.33333 per acre
Total Value (In Rs.)	Cost Rs.0.240 million

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10279304
Corporate identity number of the company	U28990MH2011PTC212237
Name of the company	PRIORITY GOLD PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 121, Street No. 15/18, MIDC, Andheri (East), Mumbai-400 093, Maharashtra, India
Type of charge	Book Debts Others
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
Email	shareholders@yesbank.in
Nature of description of the instrument creating or modifying the charge	Exclusive charge on all current assets, both present and future, more specifically mentioned in the Schedule forming part of the Supplemental Deed of Hypothecation dated 30th April 2011
Date of instrument Creating the charge	30.04.2011
Amount secured by the charge	Rs.150.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: YBL Base Rate + 5.5% p.a. Terms of Repayment On Demand by Lender Margin SBLC / Bank Guarantee: 10% Cash Margin Cash Credit: 25% on (Stock and Book Debt < 45 days) Extent and Operation of the charge Exclusive charge on all current assets (more specifically mentioned in Supplemental Deed of Hypothecation)
Short particulars of the property charged	Exclusive charge on all current assets (more specifically mentioned in Supplemental Deed of Hypothecation dated 30.04.2011)
Particulars of the present modification	SBLC/ Bank Guarantee, Cash Credit Limit (Sub limit of SBLC/ Bank Guarantee) facilities aggregating to Rs. 100.000 Millions have been Enhanced, Revised and Modified to Rs. 150.000 Millions.

Trade References:

Joy Alukkas Jewellers Private Limited, Kerala , Mr. Suresh, Mobile No.: 91-9447777918
Om Jewelles, Mumbai, Mr. Bhavin, Mobile No.: 91-9820643678
Talwarsons, Chandigarh, Mr. Anil Talwar, Mobile No.: 91-9876373737

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 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.44.58
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

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.

MIRA INFORM REPORT

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