MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	SAY INDIA JEWELLERS PRIVATE LIMITED
Registered Office :	Unit No. 701, Block No. 1, Seepz ++, Andheri (East), Mumbai 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.05.1995
Com. Reg. No.:	088038
Capital Investment / Paid-up Capital :	Rs.75.000 millions
CIN No.: [Company Identification No.]	U36910MH1995PTC088038
TAN No.: [Tax Deduction & Collection Account No.]	MUMS41303D
PAN No.: [Permanent Account No.]	AAACM7171K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Jewellery Items and Trader of Diamonds.
No. of Employees :	300 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 766696
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear some losses being incurred by the company in the current year i.e. 2009-10. 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. Pravin
Designation :	Accounts Manager
Contact No.:	91-22-28293201
Date :	21.11.2011

LOCATIONS

Registered Office :	Unit No. 701, Block No. 1, Seepz ++, Andheri (East), Mumbai 400096, Maharashtra, India
Tel. No.:	91-22-28293201 / 02
Fax No.:	91-22-28294205
E-Mail :	sumedh@lilyjewellery.net pravin@yashjewellery.com
Website :	www.lilyjewellery.net
Location :	Owned
Branches :	Conwood House, Yshodham, Gen A K Vaidya Marg, Goregaon(E), Mumbai 400063, Maharashtra, India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Pramod Goenka
Designation :	Director
Date of Birth/Age :	31.12.1961
Date of Appointment :	04.05.1995
DIN No.:	00029243

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	U36910MH1995PTC088038	Say India Jewellers Private Limited	Managing director	04/05/1995	04/05/1995	-	Active	NO
2	U15990MH1987PTC044777	Conwood Investments Private Limited	Director	21/03/1996	21/03/1996	-	Amalgamated	NO
3	U45200MH1978PTC020735	Conwood Construction Company Private Limited	Director	01/04/1999	01/04/1999	-	Amalgamated	NO
4	U99999MH1992PLC066700	Schreiber Dynamix Dairies Limited	Director	09/06/2001	09/06/2001	-	Active	NO
5	U36911MH2004PTC144344	Lily Jewellery Private Limited	Director	03/02/2004	03/02/2004	-	Active	NO
6	U45201MH2004PTC144704	Gokuldham Real Estate Development Company Private Limited	Director	25/02/2004	25/02/2004	01/09/2009	Active	NO
7	U65990MH1994PTC080250	Dynamix Securities and Holdings Private Limited	Director	28/06/2004	28/06/2004	-	Active	NO
8	U36910MH2005PTC150740	Rolly Jewellery Private Limited	Director	19/01/2005	19/01/2005	-	Active	NO
9	U36100MH2005PTC156430	Dania Oro Jewellery Private Limited	Director	29/09/2005	29/09/2005	-	Active	NO
10	U55101MH2004PTC149876	Almanac Hotels Private Limited	Additional director	08/12/2005	08/12/2005	-	Dormant	NO
11	U55101MH2004PTC149219	Goan Hotels And Clubs Private Limited	Director	12/12/2005	12/12/2005	30/07/2009	Active	NO
12	U74899MH1991PTC170072	Astalakshmi Financial And Investment Services Private Limited	Director	30/09/2006	31/12/2005	-	Active	NO
13	U55200MH1983PTC031709	Consort Hotels Private Limited	Director	29/09/2006	17/01/2006	02/04/2008	Active	NO
14	U24239MH1959PTC011443	Aniline Construction Company Private Limited	Director	30/09/2006	20/05/2006	21/02/2008	Active	NO
15	U27200MH1946PLC005069	The Crescent Iron And Steel Corporation Limited	Director	30/09/2006	06/07/2006	-	Active	NO
16	U45200MH1988PTC047902	Kalpataru Plaza Private Limited	Director	06/07/2006	06/07/2006	-	Active	NO
17	U70101MH1989PTC052891	Hiracon Properties Private Limited	Director	30/09/2006	06/07/2006	-	Active	NO
18	U45200MH1986PTC039169	Priya Constructions Private Limited	Director	29/09/2006	06/07/2006	02/04/2008	Active	NO
19	U45200MH1990PTC056103	Hillside Constructions Company Private Limited	Director	06/07/2006	06/07/2006	02/04/2008	Active	NO
20	U70100MH1982PTC092727	Excon Developers Private Limited	Director	06/07/2006	06/07/2006	02/04/2008	Active	NO
21	U55200MH1993PTC075524	Dynamix Clubs And Resorts Private Limited	Director	30/09/2006	06/07/2006	02/04/2008	Active	NO
22	U45200MH1989PTC154095	Goan Real Estate And Construction Private Limited	Director	06/07/2006	06/07/2006	02/04/2008	Active	NO
23	U70100MH1979PTC021291	Eversmile Properties Private Limited	Director	06/07/2006	06/07/2006	02/01/2009	Active	NO
24	U45202MH1982PTC026216	Yj Realty Private Limited	Director	30/09/2006	08/07/2006	-	Active	NO
25	U01110MH1994PTC083103	Maldunge Retreat And Farming Private Limited	Director	29/09/2006	14/08/2006	-	Active	NO
26	U01110MH1994PTC078964	Maldunge Farming And Agro Produce P Limited	Director	14/08/2006	14/08/2006	-	Active	NO
27	U70100MH1979PTC020933	Conwood Construction and Developers Private Limited	Director	30/12/2006	14/08/2006	-	Active	NO
28	U01110MH1994PTC077262	Dynamix Floriculture Private Limited	Director	29/09/2006	14/08/2006	22/06/2009	Active	YES
29	U27205MH2006PTC165520	Yash Jewellery Private Limited	Director	13/11/2006	13/11/2006	-	Active	NO
30	U70100MH2004PTC149602	D B Hospitality Private Limited	Director	15/11/2006	15/11/2006	07/03/2009	Active	NO
31	U55101MH2006PTC165933	Dynamix Developers Private Limited	Director	01/12/2006	01/12/2006	-	Active	YES
32	U70102MH2006PTC165917	Kusegaon Realty Private Limited	Director	01/12/2006	01/12/2006	14/07/2008	Active	NO
33	U51219MH2006PTC166097	Sahyadri Horticulture Private Limited	Director	08/12/2006	08/12/2006	14/07/2008	Active	NO
34	U36911RJ2006PTC023478	Lakha Gems Private Limited	Director	15/12/2006	15/12/2006	-	Active	NO
35	U01119MH2006PTC166319	Sahyadri Grape Plantation Private Limited	Director	19/12/2006	19/12/2006	14/07/2008	Active	NO
36	U01119MH2006PTC166452	Sahyadri Organic Farming Private Limited	Director	22/12/2006	22/12/2006	14/07/2008	Active	NO
37	U55101MH2007PTC166968	Yadgar Hotels Private Limited	Director	11/01/2007	11/01/2007	14/07/2008	Active	NO
38	U70102MH2007PTC166974	Man Chandak Developers Private Limited	Director	12/01/2007	12/01/2007	14/07/2008	Active	NO
39	U51909MH2007PTC166973	Yash Fruit Trading and Packaging Private Limited	Director	12/01/2007	12/01/2007	14/07/2008	Active	NO
40	L70200MH2007PLC166818	D B Realty Limited	Director	13/08/2007	10/02/2007	07/03/2009	Active	NO
41	U45200MH1982PTC026500	Eversmile Construction Company Private Limited	Director	29/09/2007	19/05/2007	01/04/2008	Active	NO
42	U99999MH1975PTC018511	Conwood Agencies Private Limited	Director	29/09/2007	19/05/2007	02/04/2008	Active	NO
43	U55101MH1997PTC107571	BD And P Hotels (India) Private Limited	Additional director	29/09/2007	29/09/2007	10/06/2008	Active	NO
44	U36911MH2007PTC175044	Dynamix Chains Manufacturing Private Limited	Director	29/09/2008	18/10/2007	-	Active	NO
45	U70102MH2007PTC176761	Conwood Realty Private Limited.	Director	13/12/2007	13/12/2007	11/03/2010	Active	NO
46	U45200MH2004PTC144751	Trident Estates Private Limited	Director	30/09/2008	08/02/2008	07/12/2009	Active	NO
47	U52393MH2008PTC178687	Magic Jewellery Private Limited	Director	09/02/2008	09/02/2008	-	Active	YES
48	U74210MH1992PTC068584	Indocon Developers Private Limited	Additional director	04/03/2009	01/04/2008	-	Active	NO
49	U51900MH1989PTC052409	Cogent Jewellery Private Limited	Director	27/05/2008	27/05/2008	-	Active	NO
50	U45200MH2008PTC181214	Modern Hi-Tech Developers Private Limited	Director	30/09/2009	09/07/2008	-	Active	NO
51	U92120MH2008PTC185498	Milan Theatres Private Limited	Director	05/08/2008	05/08/2008	-	Active	NO
52	U74120MH2010PTC202350	Astoria Agro And Allied Industries Private Limited	Director	23/04/2010	23/04/2010	-	Active	NO
53	U93090MH2010PTC210667	Nascent Jewellery Private Limited	Additional director	10/01/2011	10/01/2011	-	Active	NO
54	U01403MH2010PTC208645	Indocon Agro And Allied Activities Private Limited	Additional director	15/01/2011	15/01/2011	-	Active	NO

Name :	Mr. Ariez Tata
Designation :	Director
Date of Birth/Age :	11.02.1970
Date of Appointment :	06.01.2004

Name :	Mr. Nayan Pansare
Designation :	Director
Date of Birth/Age :	17.03.1952
Date of Appointment :	31.03.2006

KEY EXECUTIVES

Name :	Mr. Pravin
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Yash Jewellery Private Limited, Andheri, Mumbai	726975
Ariez Tata	12748
Basil Dubb, London	10270
Cogent Jewellery Private Limited, Lower Parel, Mumbai	1
Fine Diamonds Limited, Opera House, Mumbai	1
Manav Trading (India) Private Limited, Opera House, Mumbai	1
Vaishali Gems, Opera House, Mumbai	1

AS ON 30.09.2010

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]		1.37
Bodies corporate		96.93
Directors or relatives of directors		1.70
Other top fifty shareholders
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Jewellery Items and Trader of Diamonds.
Exports :
Countries :	USA, Hong Kong, China
Terms :
Selling :	L/C, Cash, Credit (30-60 Days)
Purchasing :	Cash, Credit (30-60 Days)

PRODUCTION STATUS

Particulars	Unit	Actual Production **
Jewellery (Gold and Silver Studded)	Pieces
Rings	Pieces	33282
Earrings	Pieces	13219
Pendents	Pieces	106049
Bracelets	Pieces	1953
Necklaces	Pieces	1178
Bangles	Pieces	294
Zinc Models	Pieces	--
Lobster	Pieces	1
Chain	Pieces	2064
Set (Ring + Earring + Pendant)	Pieces	--
Semi Finished Gold and Silver Jewellery	Pieces	--

Note:

** Excludes Production on job work basis

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

· Wholesaler

· Retailers

· End Users

No. of Employees :

300 Approximately

Bankers :

· State Bank of Bikaner and Jaipur, P M Road Branch, Fort, Mumbai, Maharashtra, India

· State Bank of India, Diamond Branch, Majestic Shopping Centre, Mumbai 400004, Maharashtra, India

· Andhra Bank, Special Corporate Finance Br, 16-B Earnest House, 16th Floor, NCPA, Nariman Point, Mumbai 400021, Maharashtra, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
Andhra Bank
Working Capital Facilities : Rupee tied-up (Secured by first charge by way of hypothecation of entire current assets of the Company, both present and future, on pari-passu basis with State Bank of Bikaner and Jaipur. Further the loan is collaterally secured on a pari-passu basis with State Bank of Bikaner and Jaipur, by way of mortgage of Company's land and factory building thereon and hypothecation of fixed assets, both present and future. Two of the Directors of the Company have given their personal guarantee to the Bank, securing the repayment of the loan.)	326.933	299.739
State Bank Bikaner and Jaipur
Working Capital Facilities: Rupee tied-up (Secured by first charge by way of hypothecation of entire current assets of the Company, both present and future on pari-passu basis with Andhra Bank, Further, the loan is collaterally secured on a pari-passu basis with Andhra Bank, by way of mortgage of Company's land and factory building thereon and hypothecation of fixed assets, both present and future. Two of the Directors of the Company have given their personal guarantee to the Bank, securing the repayment of the loan.) [Includes interest accrued and due Rs. 1.604 millions]	314.917	421.031
HDFC Bank Limited
Car Loan (Secured by hypothecation of Vehicles purchased thereunder) [Installments due for repayment within a period of twelve months Rs. 0.439 million]	0.440	1.339
TOTAL	642.290	722.109
UNSECURED LOAN
Holding Company	133.705	0.000
Shareholders	63.583	170.461
Director	31.700	30.681
Other Company	0.000	29.000
TOTAL	228.988	230.142

Banking Relations :	--
Auditors :
Name :	M A Parikh and Company Chartered Accountant
Address :	Yusuf Building, 2^nd Floor, Mahatma Gandhi Road, Fort, Mumbai 400001, Maharashtra, India
Holding Company:	Yash Jewellery Private Limited Note: The said company became Holding Company during the year and was an associate in the previous year. Classification and disclosures in the current and previous year have been made accordingly.
Associates :	Avanti Jewellery Limited, UK
Fellow Subsidiary :	· Dania Oro Jewellery Private Limited · Dynamix Chains Mfg. Private Limited · Roily Jewellery Private Limited · Lily Jewelers Private Limited · RD 42 Inc. Note- The said companies became fellow subsidiary companies during the year and were associates in the previous year. Classification and disclosures in the current and previous year have been made accordingly.

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 100 each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 100 each	Rs.75.000 millions

Note- Out of the above equity shares, 7.26,975 equity shares are held by Yash Jewellery Private Limited, the Holding Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	1600.000

Expected Sales (2011-2012) : Rs.2000.000 millions

The above information has been parted by Mr. Pravin

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		75.000	65.000	65.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		116.674	129.208	119.187
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		191.674	194.208	184.187
LOAN FUNDS
1] Secured Loans		642.290	722.109	765.685
2] Unsecured Loans		228.988	230.142	229.864
TOTAL BORROWING		871.278	952.251	995.549
DEFERRED TAX LIABILITIES		0.000	13.470	15.267
TOTAL		1062.952	1159.929	1195.003
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		133.517	88.078	101.805
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		18.415	18.415	35.019
DEFERREX TAX ASSETS		4.685	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	260.208	280.183	256.444
	Sundry Debtors	826.174	1006.483	876.875
	Cash & Bank Balances	76.918	33.342	42.214
	Other Current Assets	0.000	0.000	7.357
	Loans & Advances	91.457	244.279	189.669
Total Current Assets		1254.757	1564.287	1372.559
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	339.679	496.390	282.001
	Other Current Liabilities	8.743	14.461	3.374
	Provisions	0.000	0.000	29.005
Total Current Liabilities		348.422	510.851	314.380
Net Current Assets		906.335	1053.436	1058.179
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1062.952	1159.929	1195.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES		1045.769	1562.486	1357.709
Less	EXPENSES		1095.929	1544.832	1340.707
	PROFIT BEFORE TAX		(50.160)	17.654	17.002
	PROFIT AFTER TAX		(32.504)	10.021	10.604
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	514.774	1441.109	1259.449
	IMPORTS
		Raw Materials	327.406	273.181	188.976
		Stores & Spares	9.473	3.313	6.613
		Capital Goods	0.145	0.000	3.150
	TOTAL IMPORTS		337.024	276.494	198.739
	Earnings Per Share (Rs.)		(45.90)	15.42	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	(4.79)	1.12	1.25
Return on Total Assets (PBT/Total Assets}	(%)	(3.61)	1.06	1.15
Return on Investment (ROI) (PBT/Networth)		(0.26)	0.09	0.09
Debt Equity Ratio (Total Liability/Networth)		6.36	7.60	7.19
Current Ratio (Current Asset/Current Liability)		3.60	3.06	4.36

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	339.679	496.390	282.001

NATURE OF OPERATIONS

The Company is engaged in the business of manufacture of Studded Jewellery and trading of Jewellery Products, Cut and Polished Diamonds, Precious and Semi-Precious Stones and other related items.

The manufacturing operations of the Company are carried on from the undertakings situated at:

· AA-1, Caina Industrial Estate, Walbhat Road, Goregaon East, Mumbai - 400063.

· Block I, Unit No. 701, Seepz ++, Special Economic Zone, MIDC, Andheri (East), Mumbai- 400096.

The trading operations arc carried on from:

· The Trading Division situated at Special Economic Zone (SEZ), Mumbai.

· Outside SEZ, more particularly of cut and polished diamonds.

Note:

Registered office of the company has been shifted from AAR / 1 Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai 400063, Maharashtra, India to the present address w.e.f. 21.02.2011

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Furniture and Fixtures

· Computer

· Vehicle

FORM 8

Corporate identity number of the company	U36910MH1995PTC088038
Name of the company	SAY INDIA JEWLLERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 701, Block No. 1, Seepz ++, Andheri (East), Mumbai 400096, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Others
Particular of charge holder	Andhra Bank, Special Corporate Finance Br, 16-B Earnest House, 16th Floor, NCPA, Nariman Point, Mumbai 400021, Maharashtra, India Email: bmmum1128@andhrabank.co.in
Nature of instrument creating charge	Composite Agreement dated 16th May, 2009 and RF 255 B dated 16th May, 2009
Date of instrument Creating the charge	16.05.2009
Amount secured by the charge	Rs. 540.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 2.50% below the Bank's Prime Lending Rate with a minimum of 9.75% per annum with quarterly rests for value received. Terms of repayment 3 months Margin Margin @10% Extent and operation of the charge The Bank has sanctioned the total adhoc Packing Credit of Rs.40 millions against hypothecation of the current assets of the company including the stocks of raw materials, SIP, Finished goods, store and Spares in the factory and other stock points. Book debts, export receivables etc and mortgage of Factory Land and Building of plot bearing No. AA/1, Cama Industrial Estate, Goregaon East, Mumbai on pari passu basis.
Short particulars of the property charged (Including location of the property)	Hypothecation of the current assets of the company including the stocks of raw materials, SIP, Finished goods, store and Spares in the factory and other stock points. Book debts, export receivables etc and mortgage of existing constructed Factory Building on plot bearing No. AA/1 adm 820.32 s mts or ther about at Cama Industrial Estate, Goregaon East, Mumbai.
Date of instrument modifying the charge	26.06.2006
Particulars of the present modification	An additional charge was created on 16-05-2009 toward the additional limits sanctioned by way of Adhoc Packing Credit of Rs. 40 millions on pari passu basis.

Check List by Info Agents	Available in Report (Yes / No)
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 three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations 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, if 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 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.51.71
UK Pound	1	Rs.81.42
Euro	1	Rs.69.89

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	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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.