MIRA INFORM REPORT

Report Date :

28.07.2010

IDENTIFICATION DETAILS

Name :	FIRESTONE INTERNATIONAL PRIVATE LIMITED
Registered Office :	1110, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.04.2004
Com. Reg. No.:	11-145478
Capital Investment / Paid-up Capital :	Rs. 509.169 Millions
CIN No.: [Company Identification No.]	U51909MH2004PTC145478
TAN No.: [Tax Deduction & Collection Account No.]	MUMF03569G
PAN No.: [Permanent Account No.]	AAACF7931L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Gold and Diamond Jewelry
No. of Employees :	800 (In Office 200, In Factory 600) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 9550000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings 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. Mohan Basami
Designation :	Senior Finance Manager

LOCATIONS

Registered Office :	1110, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-30019000 / 2132
Fax No.:	91-22-30010147 / 23810287
E-Mail :	info@firestonediamond.com companysecretary@firestonediamond.com
Website :	http://www.firestonediamond.com
Area :	850 Sq. ft.
Location :	Owned
Factory :	Popular House, Plot No. 119, Road No. 18, MIDC, Andheri (East), Mumbai, Maharashtra
Tel. No.:	91-22-66921422
Fax No.:	91-22-66410550
Location :	Rented

DIRECTORS

As on : 13.09.2010

Name :	Mr. Nirav Deepak Modi
Designation :	Director
Address :	4, Groseenor House, 2^nd Floor, Pedder Road, Mumbai – 400023, Maharashtra
Date of Birth/Age :	27.02.1971
Date of Appointment :	01.04.2004
Name :	Mr. Shaymsunder V. Wadhwa
Designation :	Director
Address :	Bunglow No. 5, Vaikunth Society, Sindhi Colony, Chembur, Mumbai – 400071, Maharashtra, India
Date of Birth/Age :	04.03.1964
Date of Appointment :	17.02.2009
Name :	Mr. Himanshu Pravinchandra Trivedi
Designation :	Director
Address :	Flat No. B 27, Shanti Sadan, Shankar Lane, Kandivali (West), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	08.10.1966
Date of Appointment :	17.02.2009

KEY EXECUTIVES

Name :	Mr. Mohan Basami
Designation :	Senior Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 13.09.2010

Names of Shareholders	No. of Shares
Nirav Deepak Modi	14083988
Firestone Trading Private Limited, India	3405977
Neeshal Trading Private Limited, India	533891
Paragon Enterprises Private Limited, India	100286
Paragon Diamond Private Limited, India	100286
NDM Enterprises Private Limited, India	100286
ANM Enterprises Private Limited, India	29933619
Star Diamond Group, Netherlands	176667
Neeshal Enterprises Private Limited, India	840000
Paragaon Merchandising Private Limited, India	595000
Paragaon Jewelry Private Limited, India	130000
Total	50000000

As on : 13.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.03
Bodies corporate	97.17
Directors or relatives of directors	2.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Gold and Diamond Jewelry

Products :

ITC Code No.	Product Description
7102.39	Diamonds
711319.03	Studded Jewelry

Exports :

Products :

Gold Diamond Jewelry

Countries :

• USA
• Hong Kong
• Israel
• UAE
• Belgium

Imports :

Products :

Rough Diamond

Countries :

• Belgium
• Russia

Terms :

Selling :

L/C, Cash / Credit (30 days)

Purchasing :

L/C, Cash / Credit (30 days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rings	Pieces	Refer to Note	Refer to Note	28026
Pendants	Pieces			4538
Earrings	Pieces			1623
Necklaces	Pieces			94
Bracelets	Pieces			339
Bangles	Pieces			1157
Unutilized Goods				893

Note:

The company does not have any license in force which defines the manufacturing capacity of the company and therefore, licensed capacity in not mentioned as required above. Further, considering the nature of products manufactured by the company, installed capacity cannot be quantified in specific terms as number of units produced is variable subject to product mix adopted to meet the customer orders received by the company and therefore, this is cannot disclosed as required.

GENERAL INFORMATION

No. of Employees :

800 (In Office 200, In Factory 600) (Approximately)

Bankers :

• Oriental Bank of Commerce, Shreejee Chambers, Tata Road No. 2, Opera House, Mumbai – 400004, Maharashtra, India
• Punjab National Bank, MID Corporate Branch, Brady House, Fort, Mumbai - 400021, Maharashtra, India
• State Bank of India, Diamond Branch, Mumbai
• Syndicate Bank, Fort Branch, Mumbai
• Axis Bank, Fort Branch, Mumbai
• Dena Bank, Fort Branch, Mumbai
• Union Bank of India, Nariman Point Branch, Mumbai
• Vijaya Bank, Nariman Point Branch, Mumbai
• Canara Bank, Nariman Point

Facilities :

Secured Loan	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Working Capital Loan from Banks Borrowing from banks are secured by way of Equitable Mortgage on Fixed Assets of the Company and Group Companies, Pari Passu first change on Building, Plant and Machineries. Borrowing are further secured by way of colatteral securities provided by Firms under the same management and company owned by key management personal, corporate guarantees provide by the group companies and personal guarantee of the director	6749.389	5255.142
Term Loan – External Commercial Borrowing Borrowing from PNB (International) Limited London is secured by way of Pledge hypothecation of shares of sandberg and silkorski corporation by synergies corporation and personal guarantee of the director	315.980	357.000
Total	7065.369	5612.142
Unsecured Loan
Interest free loan from a Director	1597.068	1166.786
Total	1597.068	1166.786

Banking Relations :	--
Auditors :
Name :	Sampat and Mehta Associated Chartered Accountant
Address :	3, Kapur Mansion, 47, Hughes Road, Mumbai – 400004, Maharashtra, India
Tel No. :	91-22-61411200
Fax No. :	91-22-61411212
Email :	info@sampatmehta.com
Website :	www.sampatmehta.com
Holding Company :	ANM Enterprises Private Limited (Form 10.02.2010)
Associate Company :	Firestone Trading Private Limited
Joint Venture :	Radashir Jewelry Company Private Limited Firestar Diamond Private Limited
Subsidiaries :	Firestone Diamond Private Limited CIN No. U51909MH2006PTC164429 Address – Surat, Gujarat, India Line of Business - Manufacturer and Exporter of Gold Diamond Jewelry Firestone Inc. USA Synergy Corporation, USA Firestone Group Inc. Sandberg and Sikorski Corporation, USA Firestone Diamonds Limited, HK Firestone Jewelery Limited, HK Firestone Diamonds BVBA, Belgium Firestone Holding Limited, HK

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Shares	Rs. 10/- Each	Rs. 500.000 Millions
3,000,000	4% Non Participating, Non Cumulative Redeemable	Rs. 10/- Each	Rs. 30.000 Millions
	Total		Rs. 530.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Shares	Rs. 10/- Each	Rs. 500.000 Millions
916,873	4% Non Participating, Non Cumulative Redeemable	Rs. 10/- Each	Rs. 9.168 Millions
	Total		Rs. 509.169 Millions

Of the above:

• 3500000 Equity Shares of Rs. 10 /- each are allotted as fully paid up pursuant to scheme of amalgamation for consideration other than cash.

• 29933619 equity shares are held by ANM Enterprises Private Limited, the Holding Company

• Redeemable anytime before 16.04.2014 at premium of Rs. 50 per share.
  

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		509.169	210.835	210.835
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1877.202	1565.331	1335.373
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2386.371	1776.166	1546.208
LOAN FUNDS
1] Secured Loans		7065.369	5612.142	4063.972
2] Unsecured Loans		1597.068	1166.786	457.823
TOTAL BORROWING		8662.437	6778.928	4521.795
DEFERRED TAX LIABILITIES		0.000	0.000	3.391
TOTAL		11048.808	8555.094	6071.394
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		104.118	110.847	119.204
Capital work-in-progress		31.352	1.150	12.418
INVESTMENT		586.253	584.382	500.965
DEFERREX TAX ASSETS		6.342	11.498	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3427.876	1758.844	1277.278
	Sundry Debtors	5874.162	4785.550	3601.597
	Cash & Bank Balances	217.046	443.090	354.150
	Other Current Assets	0.000	0.000	73.583
	Loans & Advances	1169.966	1155.263	503.012
Total Current Assets		10689.050	8142.747	5809.620
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	363.096	294.893	363.221
	Provisions	5.211	0.637	7.592
Total Current Liabilities		368.307	295.530	370.813
Net Current Assets		10320.743	7847.217	5438.807
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11048.808	8555.094	6071.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	15689.256	12299.983	9377.916
		Other Income	0.048	0.717	0.283
		TOTAL (A)	15689.304	12300.700	9378.199
Less	EXPENSES
		Raw Material Consumed	14525.321	11328.755	8623.636
		Manufacturing Expenses	43.525	31.036	114.120
		Personnel Expenses	109.143	123.211	124.246
		Operating and Other Expenses	138.542	172.860	140.652
		TOTAL (B)	14816.531	11655.862	9002.654
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		872.773	644.838	375.546
Less	FINANCIAL EXPENSES (D)		467.711	359.492	98.959
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		405.062	285.346	276.587
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.585	37.298	22.762
	PROFIT BEFORE TAX (E-F) (G)		384.477	248.048	253.825
Less	TAX (I)		72.606	18.090	42.582
	PROFIT AFTER TAX (G-I) (J)		311.871	229.958	211.243
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1123.816	893.858	682.615
	BALANCE CARRIED TO THE B/S		1435.687	1123.816	893.858
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15558.168	12090.189	8980.618
		Commission Earnings	14.602	18.015	1.107
	TOTAL EARNINGS		15572.770	12108.204	8981.725
	IMPORTS
		Raw Materials	14620.218	11230.073	6905.335
		Consumables	4.821	3.045	3.326
		Capital Goods	6.605	1.437	6.777
	TOTAL IMPORTS		14631.644	11234.555	6915.438
	Earnings Per Share (Rs.)		12.90	11.40	10.47

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.98	1.87	2.25
Net Profit Margin (PBT/Sales)	(%)	2.45	2.02	2.70
Return on Total Assets (PBT/Total Assets}	(%)	3.56	3.01	4.28
Return on Investment (ROI) (PBT/Networth)		0.16	0.14	0.16
Debt Equity Ratio (Total Liability/Networth)		3.78	3.98	3.16
Current Ratio (Current Asset/Current Liability)		29.02	27.55	15.66

LOCAL AGENCY FURTHER INFORMATION

NATURE OF OPERATIONS :

The company is engaged in the business of purchase and sale of diamonds. The company has manufacturing and export oriented units (EOU) registered with Development Commissioner, SEEPZ, Mumbai for the manufacture and export of Jewellery.

REVIEW OF OPERATIONS :

During the financial year ended 31st March, 2010 the turnover of the Company have been increased from Rs. 12300.700 Millions to 15689.304 Millions. After deducting the Operating and Administrative Expenses amounting to Rs. 15689.304 Millions, the Net Profit (Before Tax) arrived at Rs. 384.477 Millions. After deducting the Provision for Taxation amounting to Rs. 72.606 Millions, the Net Profit (After Tax) came to Rs.311.871 Millions. Adding up the balance brought forward from previous year amounting to Rs. 1123.816 Millions, the Profit available for appropriations arrived at 1435.687 which was the surplus carried forward to the Balance Sheet in the Current Year.

The Directors are hopeful to continue with the enhanced performance in the subsequent year in view of the unprecedented recession coming to an end and having flattering economic conditions prevailing in the country.

FORM 8:

Corporate identity number of the company	U51909MH2004PTC145478
Name of the company	FIRESTONE INTERNATIONAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1110, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge	10127241
Type of charge	Book Debts Movable Property
Particular of charge holder	Oriental Bank of Commerce, Shreejee Chambers, Tata Road No. 2, Opera House, Mumbai – 400004, Maharashtra, India
Nature of instrument creating charge	Bank’s Letter dated 28.07.2009
Date of instrument Creating the charge	28.07.2009
Amount secured by the charge	Rs. 100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be prescribed by the bank Terms of Repayment As may be prescribed by the bank Margin As may be prescribed by the bank Extent and Operation of the charge As may be prescribed by the bank
Short particulars of the property charged	Hypothecation of stocks of rough, semi finished and finished diamonds, Jewellery etc meant for export. Export bills sent through bank. Foreign documentary demand/ Usance bills of exchange being usance of 180 days evidencing export of diamonds, Jewellery accompanied by airway bills/ bill of lading. Bills sent directly to foreign buyer. Copy of invoice airway bil directly consigned to overseas buyer. Advance shall be covered under WTPCG/WTPSG obtained by Bank from ECGC.
Date of instrument modifying the charge	04.12.2008
Particulars of the present modification	Charge reduced from Rs. 340.000 Millions to Rs. 100.000 Millions.

This form is for	Creation of charge
Corporate identity number of the company	U51909MH2004PTC145478
Name of the company	FIRESTONE INTERNATIONAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1110, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Type of charge	Book Debts Movable Property
Particular of charge holder	Oriental Bank of Commerce, Shreejee Chambers, Tata Road No. 2, Opera House, Mumbai – 400004, Maharashtra
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of assets
Date of instrument Creating the charge	23.09.2008
Amount secured by the charge	Rs. 240.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Int @ 2.5% over PLT with a minimum of 11.50% or such other rate as may be prescribed by the bank from time to time Terms of Repayment As may be prescribed by the bank Margin 10% Extent and Operation of the charge Security to secure packing credit limit/FDBP/FUDBP limit Rs. 240.000 Millions. PC fully interchangeable with post shipment facility Others : Nil
Short particulars of the property charged	Hypothecation of stocks of rough, semi finished and finished diamonds, Jewellery etc. Meant for export bills sent through bank. Foreign documentary demand/ Usance bills of exchange being usance of 180 days evidencing export of diamonds, Jewellery accompanied by airway bills/ bill of lading

FIXED ASSETS:

• Software
• Building
• Lease Hold Improvements
• Plant and Machinery
• Computer Hardware
• Vehicles
• Furniture and Fixtures
• Equipments
• Motor Boat

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. 44.94
UK Pound	1	Rs. 72.12
Euro	1	Rs. 63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.