MIRA INFORM REPORT

Report Date :

23.07.2011

IDENTIFICATION DETAILS

Name :	GODHANI GEMS PRIVATE LIMITED
Registered Office :	512 -A, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Date of Incorporation :	02.06.2011
Com. Reg. No.:	218207
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U74999MH2011PTC218207
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Rough and Polished Diamonds.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a successor of Godhani Gems, a partnership concern started in the year 1995. It is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In absence of financials, the company can be considered for business dealings with some caution.

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. Prabhakar
Designation :	Accountant
Contact No.:	91-22-23671851
Date :	21.07.2011

LOCATIONS

Registered/ Head Office :	512 A, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23671851/ 23671852/ 53/ 40405454
Fax No.:	91-22-23635115
E-Mail :	godhanigems_accounts@yahoo.com godhanigems_mum@yahoo.com info@godhanigems.com bhavesh@godhanigems.in godhanigems@yahoo.com
Website :	http://www.godhanigems.com
Location :	Owned
Factory/ Branch Office :	231, Pajava Falia, Gotala Wadi, Green Lines, Surat, Gujarat, India
Tel. No.:	91-261-2532451
Fax No.:	91-261-2533460
Marvin Impex B.V.B.A :	Office 151, Hoveniersstraat 30, Box 194, Antwerpen 2018, Belgium.
Tel. No.:	+32 3 337 3880
Fax No.:	+32 3 337 3881
Marvin Impex INC.	2nd West , 46th Street, Suite No 1108, New York NY 10036, U.S.A
Tel. No.:	+1 212 944 9212
Fax No.:	+1 212 944 9164

DIRECTORS

Name :	Mr. Vinod Godhani
Designation :	Director
Name :	Mr. Ramesh Godhani
Designation :	Director
Name :	Mr. Bharat Narola
Designation :	Director
Name :	Mrs. Bhavita Godhani
Designation :	Director
Name :	Mrs. Reshmaben Godhani
Designation :	Director
Name :	Mr. Sudhirbhai G. Patel
Designation :	Director
Name :	Mr. Jagdishkumar B. Narola
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Prabhakar
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Ramesh Godhani	1985000
Vinod Godhani	1750000
Bhavita Godhani	500000
Reshmaben Godhani	500000
Bharat Narola	250000
Sudhirbhai G. Patel	7500
Jagdishkumar B. Narola	7500
Total	5000000

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Rough and Polished Diamonds.
Exports :
Products :	Cut and Polished Diamond
Countries :	· USA · Belgium · Japan · Israel
Imports :
Products :	Rough Diamond
Countries :	· Belgium · Dubai · UK
Terms :
Selling :	Credit (30-60-90 days)
Purchasing :	Credit (30-60-90 days)

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	800 (Approximately)
Bankers :	· State Bank of India Diamond Branch, Gurgaon, Mumbai, Maharashtra, India
Facilities :	CC – Rs.12.500 Millions

Banking Relations :	--
Auditors :
Name :	Rashmin Mehta and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

NEW COMPANY

Expected Sales (2011-12): Rs.6000.000 Millions

TURNOVER OF PARTNERSHIP CONCERN

Particulars	31.03.2011	31.03.2010
Sales Turnover	5070.000	4500.000

The above information has been parted by Mr. Prabhakar.

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE:

· K A International

· Monidium

WEBSITE DETAILS:

COMPANY PROFILE:

Godhani Gems has been flourishing its business since 1995* and became the most eminent manufacturer and supplier of big diamonds in the gem and jewellery market.

With its latest technology for manufacturing of Round, Princess and Marquise diamonds of 18 cent to 10 Carat of attractive D to M color which denotes IF to I3 clarity.

Godhani Gems has mainly emphasized in manufacturing of big diamonds of trendy varieties and best qualities at reasonable rate.

Godhani Gems believes that value addition by manufacturing of quality products achieving optimum yield is the most appropriate path to growth in the Diamond Business. The company does not believe in making short term profits by selling rough. In line with this philosophy, Godhani gems has set up state of the art manufacturing facilities to process the rough diamonds and manufacture polished diamonds of the highest possible quality.

Godhani Gems is a partnership company engaged in the business of manufacture and export of polished diamonds. The company was started in 1995 by Mr. Vinodbhai Godhani and has steadily grown into a leading manufacturer / exporter of polished diamonds. The sales office of Godhani Gems is in Mumbai while the manufacturing facilities are situated in Surat.

The young and dynamic management team of Godhani Gems is focused on value creation and has been constantly working towards improving its competitive edge through improvements in its processes, both at the factory as well as in the market place.

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.44.37
UK Pound	1	Rs.72.34
Euro	1	Rs.63.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.