MIRA INFORM REPORT

Report Date :

11.10.2011

IDENTIFICATION DETAILS

Name :	GURJAR GEMS PRIVATE LIMITED [w.e.f 30.06.2003]
Formerly Known As :	GURJAR FINANCIAL SERVICES PRIVATE LIMITED
Registered Office :	304, Mani Mahal, 11/21, Mathew Road, Opera House, Charni Road, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.06.1994
Com. Reg. No.:	11-78867
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U67190MH1994PTC078867
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08047E / MUMG04167C
PAN No.: [Permanent Account No.]	AAACG3685L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Exclusive Diamond Jewellery.
No. of Employees :	Not Available

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

Maximum Credit Limit :	USD 11000
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 to be slow. 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

LOCATIONS

Registered / Corporate Office :	304, Mani Mahal, 11/21, Mathew Road, Opera House, Charni Road, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23611439 / 23611879 / 23635125 / 23643190 / 30933810 [Res.]
Fax No.:	91-22-23643190
E-Mail :	atjain@vsnl.com rajesh@gurjargems.com
Website :	http://www.gurjarexports.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Ambalal Tolchand Jain

Designation :

Director

Address :

805-808, Mayfair Gardens, Azad lane, S. V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

25.06.1948

Date of Appointment :

09.06.1994

Din No.:

01073113

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	U67190MH1994PTC078867	GURJAR GEMS PRIVATE LIMITED	Director	09-06-94	09-06-94	-	Active	NO
2	U65993MH2007PTC174016	G R N FINSEC PRIVATE LIMITED	Director	13-09-07	13-09-07	-	Active	NO
3	U18101GJ2007PTC050985	DIESEL FASHION INDIA RELIANCE PRIVATE LIMITED	Director	31-10-08	09-06-08	05-12-08	Active	NO
4	U17100MH1989PTC053477	MONICA TEXTURISING PRIVATE LIMITED	Director	22-09-09	25-02-09	-	Active	NO

Name :

Mr. Sushil Tolchand Jain

Designation :

Director

Address :

601- Green Court, Juhu Galli, Andheri (West), Mumbai-400058, Maharashtra, India

Date of Birth/Age :

01.08.1956

Date of Appointment :

09.06.1994

Din No.:

00174816

Name :

Mr. Rajesh Ambalal Jain

Designation :

Director

Address :

805-808, Mayfair Gardens, Azad lane, S. V. Road, Andheri West, Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

19.02.1974

Date of Appointment :

10.05.2004

Din No.:

00233493

Name :

Mr. Mohan Tolchand Jain

Designation :

Director

Address :

B – 35, Saujanya Apartments, 23, Bhardawadi Road, Andheri [West], Mumbai

Date of Birth/Age :

30.10.1952

Date of Appointment :

22.03.2007

Din No.:

01075674

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ambalal Tolchand Jain	4500
Sushil Tolchand Jain	4750
Sushila Ambalal Jain	6500
Rajesh Ambalal Jain	1000
Paresh Ambalal Jain	250
Suman Sushil Jain	6500
Ruchit Sushil Jain	500
Vinit Sushil Jain	500
Lalchand Tolchand Jain	4000
Aruna Lalchand Jain	4250
Puni Lalchand Jain	250
Shailly Lalchand Jain	250
Rena Kamlesh Jain	2800
Jinesh Mohanlal Jain	650
Nishi Kamlesh Jain	100
Shalini Rajesh Jain	600
Mohan Tolchand Jain	5000
Sumati Mohanlal Jain	5000
Grishma Jinesh Jain	1000
Nilesh Mohanlal Jain	1000
Shweta Paresh Jain	250
Poonam Puni Jain	250
Bhavika Nilesh Jain	100
Total	50000

As on 29.03.2011

Name of Allottee	No. of Shares
Popatlal Tolchand Jain	5000
Indu Popatlal Jain	5000
Total	10000

As on 28.03.2011

Name of Allottee	No. of Shares
Ambalal Tolchand Jain	9000
Sushil Tolchand Jain	9500
Sushila Ambalal Jain	13000
Rajesh Ambalal Jain	2000
Paresh Ambalal Jain	500
Suman Sushil Jain	13000
Ruchit Sushil Jain	1000
Vinit Sushil Jain	1000
Lalchand Tolchand Jain	8000
Aruna Lalchand Jain	8500
Puni Lalchand Jain	500
Shailly Lalchand Jain	500
Rena Kamlesh Jain	5600
Jinesh Mohanlal Jain	1300
Nishi Kamlesh Jain	200
Shalini Rajesh Jain	1200
Mohan Tolchand Jain	10000
Sumati Mohanlal Jain	10000
Grishma Jinesh Jain	2000
Nilesh Mohanlal Jain	2000
Shweta Paresh Jain	500
Poonam Puni Jain	500
Bhavika Nilesh Jain	200
Total	100000

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Exclusive Diamond Jewellery.

GENERAL INFORMATION

Bankers :

• ING Vysya Bank Limited, Patel Chambers, Ground Floor, Sandhurst Bridge, Opera House, Mumbai-400007, Maharashtra, India

• ICICI Bank

• Canara Bank
• Citi Bank

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
ICICI Motor Car Loan [Against Motor Car]	0.139	0.296
Citi Bank Loan [Against security of shares held by the directors]	0.043	0.644
Total	0.182	0.940
Unsecured Loan
From Shareholders and Associates	18.209	14.734
From Others	0.000	0.036
Total	18.209	14.770

Banking Relations :	--
Auditors :
Name :	Mittal Rajeev and Associates Chartered Accountants
Address :	3^rd Floor, Gandhi Mansion, Bomanji Master Lane, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-66542992
Fax No.:	91-22-66352484
E-Mail :	remittal@vsnl.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

After 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160000	Equity Shares	Rs.10/- each	Rs.1.600 Millions

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.500	0.000
3] Reserves & Surplus		2.279	1.317	0.686
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.779	2.317	1.186
LOAN FUNDS
1] Secured Loans		0.182	0.940	1.085
2] Unsecured Loans		18.209	14.770	9.452
TOTAL BORROWING		18.391	15.710	10.537
DEFERRED TAX LIABILITIES		0.000	0.000	0.085
TOTAL		21.170	18.027	11.808
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.200	3.514	3.411
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.034	0.016	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.072	9.139	4.615
	Sundry Debtors	25.608	16.062	8.349
	Cash & Bank Balances	18.981	5.916	3.418
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.458	1.488	0.968
Total Current Assets		58.119	32.605	17.350
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	37.675	15.622	7.883
	Other Current Liabilities	1.351	1.623	0.577
	Provisions	1.157	0.863	0.493
Total Current Liabilities		40.183	18.108	8.953
Net Current Assets		17.936	14.497	8.397
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		21.170	18.027	11.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	119.800	94.700	45.200
		Other Income	0.159	0.324	0.490
		TOTAL	119.959	95.024	45.690
Less	EXPENSES
		Office Expenses
		Administrative Expenses	118.073	93.442	44.639
		Advertising Expenses
		Financial Expenses
		TOTAL	118.073	93.442	44.639
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.886	1.582	1.051
Less/ Add	DEPRECIATION/ AMORTISATION		0.503	0.544	0.635
	PROFIT BEFORE TAX		1.383	1.038	0.416
Less	TAX		0.432	0.379	0.261
	PROFIT AFTER TAX		0.951	0.659	0.155
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.317	0.686	0.537
Add/ Less	SHORT PROVISION FOR TAX		0.011	(0.028)	(0.006)
	BALANCE CARRIED TO THE B/S		2.279	1.317	0.686
	EARNINGS IN FOREIGN CURRENCY		3.139	1.172	NA
	Earnings Per Share (Rs.)		19.01	12.62	3.12

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.79	0.69	0.34
Net Profit Margin (PBT/Sales)	(%)	1.15	1.10	0.92
Return on Total Assets (PBT/Total Assets}	(%)	2.25	2.87	2.00
Return on Investment (ROI) (PBT/Networth)		0.50	0.45	0.35
Debt Equity Ratio (Total Liability/Networth)		21.07	14.60	16.43
Current Ratio (Current Asset/Current Liability)		1.45	1.80	1.94

LOCAL AGENCY FURTHER INFORMATION

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.

PERFORMANCES:

The company has achieved a turnover of Rs.119.800 millions in the current year. The company hopes to increase the turnover during the next financial year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10238698
Corporate identity number of the company	U67190MH1994PTC078867
Name of the company	GURJAR GEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	304, Mani Mahal, 11/21, Mathew Road, Opera House, Charni Road, Mumbai – 400004, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	ING Vysya Bank Limited, Patel Chambers, Ground Floor, Sandhurst Bridge, Opera House, Mumbai-400007, Maharashtra, India
Email	cms@companiesinn.com
Nature of description of the instrument creating or modifying the charge	Mortgage by Deposit of Title Deeds
Date of instrument Creating the charge	21.08.2010
Amount secured by the charge	Rs.20.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest No change Terms of Repayment No change Margin No change Extent and Operation of the charge First charge on the immovable property of the company.
Short particulars of the property charged	I) The immovable property of the company at Unit Nos.B-53 and 54 admeasuring 2204 sq. ft carpet area (Said premises), situated at N and Bhuvan Industrial Premises Co-operative Society Limited, (Cond.. ii) II) Mahakali Caves Road, Shanti Nagar, Andheri (East), C.T.S No.46(Part),Plot No.21,situated at village Mulgaon, Taluka- Andheri, Andheri Dt, Mumbai.
Particulars of the present modification	There is no change in the total limit of Rs.20.000 Millions. The total limit has been additionally secured by the immovable property of the company. All the other terms and conditions are remain same.

FIXED ASSETS:

• Computer
• Furniture and Fixtures
• Motor Car
• Motor Cycle
• Machinery
• Office Equipment
• Plant and Machinery
• Factory Equipments

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.49.07
UK Pound	1	Rs.76.65
Euro	1	Rs.66.17

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	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	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.