MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	KEDIAM-GEM PRIVATE LIMITED
Registered Office :	203, Adinath Apartment, Jadda Khadi, Mahidharpura, Surat 395003, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.03.2007
Com. Reg. No.:	050273
Capital Investment / Paid-up Capital :	Rs.0.100 million
CIN No.: [Company Identification No.]	U52393GJ2007PTC050273
TAN No.: [Tax Deduction & Collection Account No.]	SRTK01976C
PAN No.: [Permanent Account No.]	AADCK0264A
Legal Form :	Private Limited Liability Company
Line of Business :	Supplier of Diamonds Jewellery (Ornaments)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 2396
Status :	Moderate
Payment Behaviour :	Slow
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 as slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	203, Adinath Apartment, Jadda Khadi, Mahidharpura, Surat 395003, Gujarat, India
Tel. No.:	91-261-23680148
Fax No.:	91-261-23672387
E-Mail :	Sbazari2003@yahoo.co.in

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Ajay R Dhupiya
Designation :	Director
Date of Appointment :	19.03.2007
DIN No.:	01302723

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52393GJ2007PTC050273	Kediam-Gem Private Limited	Director	19/03/2007	19/03/2007	-	Active	NO

Name :	Mr. Arjun B Hingar
Designation :	Director
Date of Appointment :	19.03.2007
DIN No.:	01303882

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52393GJ2007PTC050273	Kediam-Gem Private Limited	Director	19/03/2007	19/03/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. Ajay R Dhupiya	5000
Mr. Arjun B Hingar	5000
Total	10000

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 :

Supplier of Diamonds Jewellery (Ornaments)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· UCO Bank

· United Bank of India, Surat, Gujarat, India

· Axis Bank, Mumbai, Maharashtra, India

· ING Vysya Bank, Mumbai

Facilities :

Rs. In Millions

UNSECURED LOAN	31.03.2010	31.03.2009
Mr. Ajay R Dhupiya	0.000	0.780
Mr. Arjun B Hingar	0.200	0.000
Total	0.200	0.780

Banking Relations :	--
Auditors :
Name :	N A M S and Company Chartered Accountant
Address :	5025, World Trade Centre, Raing Road, Surat 395002, Gujarat, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10 each	Rs.0.100 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10 each	Rs.0.100 million

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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.499	0.264	0.123
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.599	0.364	0.223
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.200	0.780	0.730
TOTAL BORROWING		0.200	0.780	0.730
DEFERRED TAX LIABILITIES		0.004	0.003	0.001
TOTAL		0.803	1.147	0.954
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.108	0.085	0.020
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	400.823	601.885	36.789
	Sundry Debtors	951.499	1018.574	327.884
	Cash & Bank Balances	74.905	16.873	14.353
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.116	0.206	0.247
Total Current Assets		1427.343	1637.538	379.273
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1423.488	1636.387	378.258
	Other Current Liabilities	3.070	0.000	0.000
	Provisions	0.104	0.104	0.100
Total Current Liabilities		1426.662	1636.491	378.358
Net Current Assets		0.681	1.047	0.915
MISCELLANEOUS EXPENSES		0.014	0.015	0.019
TOTAL		0.803	1.147	0.954

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	4114.714	2544.835	1448.579
		Other Income	0.000	0.000	0.000
		TOTAL (A)	4114.714	2544.835	1448.579
Less	EXPENSES
		Cost of Goods Sold	4061.531	2514.577	1435.814
		Payment and Benefit to Employee	0.000	0.000	0.600
		Fringe Benefit Tax	0.000	0.030	0.031
		Preliminary / Preoperative Expenses Written Off	0.002	0.002	0.002
		Administrative Expenses	52.711	29.947	11.905
		TOTAL (B)	4114.244	2544.556	1448.352
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.470	0.279	0.227
Less	FINANCIAL EXPENSES (D)		0.110	0.044	0.028
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.360	0.235	0.199
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.020	0.018	0.006
	PROFIT BEFORE TAX (E-F) (G)		0.340	0.217	0.193
Less	TAX (H)		0.106	0.077	0.069
	PROFIT AFTER TAX (G-H) (I)		0.234	0.140	0.124
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.264	0.124	0.000
	BALANCE CARRIED TO THE B/S		0.498	0.264	0.124
	Earnings Per Share (Rs.)		23.50	14.07	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.01	0.01	0.01
Net Profit Margin (PBT/Sales)	(%)	0.01	0.01	0.01
Return on Total Assets (PBT/Total Assets}	(%)	0.02	0.01	0.05
Return on Investment (ROI) (PBT/Networth)		0.56	0.59	0.86
Debt Equity Ratio (Total Liability/Networth)		2382.08	4498.00	1699.95
Current Ratio (Current Asset/Current Liability)		1.00	1.00	1.00

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

The company has earned a profit of Rs. 0.234 million as compared to the previous years profit of Rs. 0.140 million. The amount was carried forward to the balance sheet.

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 mil and is rated amongst the fastest growing  in the world. Indi 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 2000 crore 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.

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.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	2
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.