MIRA INFORM REPORT

Report Date :

01.11.2011

IDENTIFICATION DETAILS

Name :	LAXMI JEWELLERY EXPORTS PRIVATE LIMITED
Registered Office :	Anand Shopping Centre, C G Road, Ahmedabad – 380 009, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.09.1992
Com. Reg. No.:	04-18302
Capital Investment / Paid-up Capital :	Rs.4.625 millions
CIN No.: [Company Identification No.]	U36911GJ1992PTC018302
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Jewellery Items in Gold and Diamond.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 47000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

INFORMATION PARTED BY

Name :	Mr. Nilesh
Designation :	Accountant
Contact No.:	91-79-26448776
Date :	31.10.2011

LOCATIONS

Registered Office/Factory 1 :	Anand Shopping Centre, C G Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26448776
Fax No.:	91-79-40236850
E-Mail :	accounts@laxmijewellery.com ljewellery@yahoo.in brijmohan_saraf@rediffmail.com sagarmehta76@yahoo.com
Website :	http://www.laxmijewellery.com
Location :	Owned
Branch Office 1 / Factory 2 :	Shop No. 318, Regal Arcade, Near Panchratna Building, Opera House, Charni Road, Mumbai - 400004, Maharashtra, India
Tel. No.:	91-22-23805400
Branch Office 2 :	811, Parekh Market, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23669853 / 2380 / 5401

DIRECTORS

As on 30.09.2010

Name :	Mr. Harshit Vipulbhai Mehta
Designation :	Director
Address :	4-Royal Crecent, Near Asopalav Bunglows, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	07.03.1990
Date of Appointment :	01.04.2008
DIN No.:	02125757
Name :	Mr. Umang Vipulbhai Mehta
Designation :	Director
Address :	4, Royal Crecent, Near Asopalav Bunglows, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	23.06.1987
Date of Appointment :	01.04.2006
DIN No.:	01859861

Name :	Mr. Bharatbhai Yashwantrai Mehta
Designation :	Director
Date of Appointment :	17.09.2002
DIN No.:	00552986

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01119GJ1998PTC033775	Laxmi Nursary Private Limited	Director	04-03-98	04-03-98	Active	NO
2	U36911GJ1992PTC018302	Laxmi Jewellery Exports Private Limited	Director	17-09-02	17-09-02	Active	NO

Name :	Mr. Vipulkumar Yashwantrai Mehta
Designation :	Director
Date of Appointment :	17.09.2002
DIN No.:	00553042

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01119GJ1998PTC033775	Laxmi Nursary Private Limited	Director	04-03-98	04-03-98	Active	NO
2	U36911GJ1992PTC018302	Laxmi Jewellery Exports Private Limited	Director	17-09-02	17-09-02	Active	NO

Name :	Mr. Sagar Yashwantrai Mehta
Designation :	Director
Date of Appointment :	26.07.2006
DIN No.:	00595814

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01119GJ1998PTC033775	Laxmi Nursary Private Limited	Director	04-03-98	04-03-98	Active	NO
2	U36911GJ1992PTC018302	Laxmi Jewellery Exports Private Limited	Director	26-07-06	26-07-06	Active	NO

Name :	Mr. Divyesh Yashwantrai Mehta
Designation :	Director
Date of Appointment :	17.09.2002
DIN No.:	00595822

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01119GJ1998PTC033775	Laxmi Nursary Private Limited	Director	04-03-98	04-03-98	Active	NO
2	U36911GJ1992PTC018302	Laxmi Jewellery Exports Private Limited	Director	17-09-02	17-09-02	Active	NO

KEY EXECUTIVES

Name :	Mr. Nilesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Bharat Y Mehta	53500
Vipul Y Mehta	53500
Divyesh Y Mehta	55000
Sagar Y Mehta	50000
Bharat Y Mehta HUF	20000
Yashwantrai M Mehta HUF	50000
Veena B Mehta	20000
Kavita V Mehta	20000
Lalita Y Mehta	10500
Divyesh Y Mehta HUF	10000
Hetal D Mehta	10000
Umang V Mehta	50000
Yashwantrai M Mehta Family Trust	50000
Vipul Y Mehta HUF	10000
Total	462500

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Jewellery Items in Gold and Diamond.
Exports :
Products :	Jewellery Items in Gold and Diamond
Countries :	· Dubai · USA
Imports :
Products :	Materials
Countries :	Hong Kong
Terms :
Selling :	Depend
Purchasing :	Depend

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

40 (Approximately)

Bankers :

· Citi Bank, Panchvati Circle, Ahmedabad, Gujarat, India

· State Bank of India

· HDFC Bank Limited

Facilities :

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Directors and Their Relatives	3.130	3.506
Total	3.130	3.506

Banking Relations :	--
Auditors :
Name :	B M Saraf and Company Chartered Accountants
Address :	201, Swayam Complex, 9/B, Shreyas Colony, Near Stadium Circle, Navrangpura, Ahmedabad – 380 009, Gujarat, India
PAN No.:	ACYPS5884J

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
462500	Equity Shares	Rs.10/- each	Rs.4.625 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		4.625	4.625	4.625
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.072	5.051	3.285
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.697	9.676	7.910
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		3.130	3.506	2.332
TOTAL BORROWING		3.130	3.506	2.332
DEFERRED TAX LIABILITIES		0.000	0.017	0.012
TOTAL		14.827	13.199	10.254
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.569	7.077	1.372
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.007	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.107	23.856	61.599
	Sundry Debtors	123.386	74.452	35.711
	Cash & Bank Balances	41.090	14.107	15.229
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	60.872	60.551	17.249
Total Current Assets		275.455	172.966	129.788
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	229.620	136.524	115.045
	Other Current Liabilities	39.584	30.320	5.861
	Provisions
Total Current Liabilities		269.204	166.844	120.906
Net Current Assets		6.251	6.122	8.882
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14.827	13.199	10.254

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Local Sales	772.478	425.479	443.366
		Export Sales	84.542	32.980	26.959
		Labour Income	91.740	42.955	30.376
		Loss from Theft in Transit	4.790	0.000	0.000
		Discount	0.000	0.003	0.093
		Exchange Rate Fluctuation	0.148	(1.177)	2.737
		Interest Received	0.004	0.000	0.173
		Dividend	0.264	0.228	0.004
		TOTAL	953.966	500.468	503.708
Less	EXPENSES
		Local Purchases	905.794	421.007	522.254
		Import Purchases	10.817	1.939	0.000
		Direct Labour Expenses	37.369	21.141	20.825
		Loss from Theft in Transit	1.790	0.000	0.000
		Administrative Expenses	20.448	16.087	7.989
		Increase / (Decrease) in Stock	(26.251)	37.743	(49.848)
		TOTAL	949.967	497.917	501.220
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		3.999	2.551	2.488
Less/ Add	DEPRECIATION/ AMORTISATION		1.148	0.482	0.419
	PROFIT/LOSS BEFORE TAX		2.851	2.069	2.069
Less	TAX		0.831	0.303	0.972
	PROFIT/LOSS AFTER TAX		2.020	1.766	1.097
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.051	3.285	2.188
	BALANCE CARRIED TO THE B/S		7.071	5.051	3.285
	EARNINGS IN FOREIGN CURRENCY		84.542	32.980	26.959
	Earnings Per Share (Rs.)		4.37	3.82	2.37

Expected Sales (2011-2012) : Rs.1200.000 millions

The above information has been parted by Mr. Nilesh

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.21	0.35	0.22
Net Profit Margin (PBT/Sales)	(%)	0.33	0.45	0.44
Return on Total Assets (PBT/Total Assets}	(%)	1.00	1.15	1.58
Return on Investment (ROI) (PBT/Networth)		0.24	0.21	0.26
Debt Equity Ratio (Total Liability/Networth)		23.28	17.61	15.58
Current Ratio (Current Asset/Current Liability)		1.02	1.04	1.07

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Creditors for Goods	229.620	136.524	115.045

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last two years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	YES
15.	Capital in the business	NO
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	--
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs.60000 millions and is rated amongst the fastest growing  in the world. India ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs.20000.000 millions lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FINANCIAL RESULTS

During the year, the Company has made a Profit of Rs.2.851 millions (Before Tax) on the turnover of Rs.948.760 millions. However Directors do not recommend any dividend during the year and opted the policy of ploughing back of the profit.

FIXED ASSETS

· Air Conditioner

· Office At Mumbai

· Furniture and Fixture

· Motor Car

· Mobile Phone

· Electronic Bike

· Computer

· Xerox Machine

· Kanta (Weigh Scale)

· Polishing Machine

· Fax Machine

· CCD/DVR System (Sony)

· Data Count Machine

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.48.87
UK Pound	1	Rs.78.11
Euro	1	Rs.68.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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	NO
--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		30

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.