MIRA INFORM REPORT

Report Date :

29.10.2011

IDENTIFICATION DETAILS

Name :	LAXMI DIAMOND PRIVATE LIMITED
Registered Office :	415/416, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.04.2006
Com. Reg. No.:	11-161091
Capital Investment / Paid-up Capital :	Rs. 173.367 Millions
CIN No.: [Company Identification No.]	U36911MH2006PTC161091
TAN No.: [Tax Deduction & Collection Account No.]	MUML06215G
PAN No.: [Permanent Account No.]	AABCL1815G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Polished Diamonds.

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 9000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. 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.

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 / Factory :	415/416, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23696643 / 23696645/ 23677007/ 40502222
Fax No.:	91-22-23670390
E-Mail :	laxmidia@bom3.vsnl.net.in contact_ops@yahoo.co.in
Website:	www.laxmidiamond.com
Location :	Owned
Corporate Office :	New A K Road, Varachha, Surat-395008, Gujarat, India
Tel. No.:	91-261-2542532
Fax No.:	91-261-2541623
E-Mail :	laxmisurat@hotmail.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Mitesh Chunilal Ganeja

Designation :

Director

Address :

21/22 Floor, Suraj Apartments, 71, Bhulabhai Desai Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

10.03.1982

Date of Appointment :

20.03.2008

DIN No.:

01011862

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	U36910GJ1999PTC035847	Shraddha Jewels Private Limited	Director	01/11/2006	01/11/2006	-	Active	NO
2	U36912MH1992PTC068743	Laxmi Dia Jewel Private Limited	Director	01/11/2006	01/11/2006	-	Active	NO
3	U45201GJ1989PLC012793	Laxmi Infra Developers Limited	Director	07/05/2007	07/05/2007	-	Active	NO
4	U72900MH2000PLC127850	Shree Laxmi Infosolutions And Jewellary Limited	Director	07/07/2007	07/07/2007	-	Active	NO
5	U36910MH1999PTC120648	Laxmi Jewel Private Limited	Director	07/07/2007	07/07/2007	-	Active	YES
6	U52390MH2007PTC172584	Ambition Retail Private Limited	Director	24/07/2007	24/07/2007	-	Active	NO
7	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Director	20/03/2008	20/03/2008	-	Active	NO

Name :

Mrs. Sunitaben Chunibhai Gajera

Designation :

Director

Address :

49-50, Vishnu Nagar Society, New A. K. Road, Surat-395001, Gujarat, India

Date of Birth/Age :

12.10.1963

Date of Appointment :

22.04.2006

DIN No.:

00147762

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	U45209GJ2003PTC042256	Eurocrete Blocks Private Limited	Director	21/04/2003	21/04/2003	11/03/2010	Active	NO
2	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Director	22/04/2006	22/04/2006	-	Active	NO
3	U51909GJ2007PTC051274	Mili Iron And Metal Company Private Limited	Director	05/07/2007	05/07/2007	02/04/2009	Active	NO
4	U17119GJ1992PTC017302	Shri Laxmi Narayan Polyfibre Private Limited	Director	19/09/2011	29/01/2011	-	Active	NO

Name :

Mr. Ashokbhai Haribhai Gajera

Designation :

Whole Time Director

Address :

31, Kalpavrukh Apartment, 27, B.G. Kher Marg, Walkeshwar, Mumbai-395001, Maharashtra, India

Date of Birth/Age :

01.06.1965

Date of Appointment :

12.04.2006

DIN No.:

00147819

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	U17119GJ1991PTC015655	Balmukund Weavefab Private Limited	Director	05/08/1991	05/08/1991	-	Active	NO
2	U36912MH1992PTC068743	Laxmi Dia Jewel Private Limited	Director	26/09/1994	26/09/1994	-	Active	NO
3	U36910MH1999PTC120648	Laxmi Jewel Private Limited	Director	02/07/1999	02/07/1999	-	Active	YES
4	U24110GJ1994PLC023372	Laxmi Infra-Stone Limited	Director	22/10/1999	22/10/1999	-	Active	NO
5	U36911GJ2002PTC040903	Pari Jewel Private Limited	Director	24/03/2003	24/03/2003	-	Active	NO
6	U72900MH2000PLC127850	Shree Laxmi Infosolutions And Jewellary Limited	Director	20/05/2004	20/05/2004	-	Active	NO
7	U99999MH1971PTC015201	Dhanamall Silk Mills Private Limited	Director	10/01/2005	10/01/2005	-	Active	NO
8	U36911MH2005PTC153249	Gl Diamond Sourcing Private Limited	Director	12/05/2005	12/05/2005	06/02/2009	Active	NO
9	U65923MH1993PTC072964	Catura Leasing And Finance Private Limited	Director	01/11/2005	01/11/2005	-	Amalgamated	NO
10	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Whole-time director	12/04/2006	12/04/2006	-	Active	NO
11	U45202GJ2001PLC039548	Laxmi Shops And Warehouses Limited	Director	01/11/2006	01/11/2006	-	Active	NO
12	U45201GJ1989PLC012793	Laxmi Infra Developers Limited	Director	07/05/2007	07/05/2007	-	Active	NO
13	U45201GJ2007PTC051596	Lax Infra Buildcon Private Limited	Director	24/08/2007	24/08/2007	-	Active	NO
14	U45203MH2010PTC204858	MBA Heights and Properties Private Limited	Director	25/06/2010	25/06/2010	-	Active	NO
15	U45201GJ2007PTC051275	Shanti Residences Private Limited	Director	30/09/2011	03/10/2010	-	Active	NO
16	U24134GJ2010PLC063117	Creative Polyfilms Limited	Director	02/12/2010	02/12/2010	-	Active	NO

Name :

Mr. Chunibhai Haribhai Gajera

Designation :

Whole Time Director

Address :

67, Adarsh Society, Athwalines, Surat-395001, Gujarat, India

Date of Birth/Age :

05.07.1960

Date of Appointment :

12.04.2006

DIN No.:

00147830

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	U17119GJ1992PTC017302	Shri Laxmi Narayan Polyfibre Private Limited	Director	13/03/1992	13/03/1992	-	Active	NO
2	U36912MH1992PTC068743	Laxmi Dia Jewel Private Limited	Director	26/09/1994	26/09/1994	-	Active	NO
3	U36910MH1999PTC120648	Laxmi Jewel Private Limited	Director	02/07/1999	02/07/1999	-	Active	YES
4	U45202GJ2001PLC039548	Laxmi Shops And Warehouses Limited	Director	16/05/2001	16/05/2001	-	Active	NO
5	U24110GJ1994PLC023372	Laxmi Infra-Stone Limited	Director	06/05/2002	06/05/2002	-	Active	NO
6	U36912GJ2003PTC042258	Exclusive Gems Private Limited	Director	21/04/2003	21/04/2003	-	Active	NO
7	U36910MH2004PTC145377	Lj Creations Private Limited	Director	29/03/2004	29/03/2004	15/04/2008	Amalgamated	NO
8	U72900MH2000PLC127850	Shree Laxmi Infosolutions And Jewellary Limited	Director	20/05/2004	20/05/2004	-	Active	NO
9	U92411GJ1975GAP002711	West End Sports Club Limited	Director	29/09/2009	15/10/2005	-	Active	NO
10	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Whole-time director	12/04/2006	12/04/2006	-	Active	NO
11	U45201GJ1989PLC012793	Laxmi Infra Developers Limited	Director	07/05/2007	07/05/2007	-	Active	NO
12	U45201GJ2007PTC051275	Shanti Residences Private Limited	Director	05/07/2007	05/07/2007	-	Active	NO
13	U45201GJ2007PTC051596	Lax Infra Buildcon Private Limited	Director	24/08/2007	24/08/2007	-	Active	NO
14	U17110GJ1991PTC015656	Balmukund Diamonds Private Limited	Director	15/10/2007	15/10/2007	31/07/2008	Active	NO
15	U52390MH2007PTC172584	Ambition Retail Private Limited	Director	30/09/2010	04/11/2009	-	Active	NO
16	U45201GJ2010PTC059623	Spring Valley Realty Private Limited	Director	02/03/2010	02/03/2010	-	Active	NO

Name :

Mr. Vasantbhai Haribhai Gajera

Designation :

Managing Director

Address :

1, Vrushal Nagar Society, Near Katargam Police Station, Katargam, Surat-395008, Gujarat, India

Date of Birth/Age :

01.06.1954

Date of Appointment :

12.04.2006

DIN No.:

00147855

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	U17119GJ1991PTC015657	Balmukund Texofab Private Limited	Director	16/05/1991	16/05/1991	-	Active	NO
2	U36912MH1992PTC068743	Laxmi Dia Jewel Private Limited	Director	25/09/1992	25/09/1992	-	Active	NO
3	U36910MH1999PTC120648	Laxmi Jewel Private Limited	Director	02/07/1999	02/07/1999	-	Active	YES
4	U24110GJ1994PLC023372	Laxmi Infra-Stone Limited	Director	06/05/2002	06/05/2002	-	Active	NO
5	U36911GJ2002PTC040903	Pari Jewel Private Limited	Director	24/03/2003	24/03/2003	-	Active	NO
6	U45209GJ2003PTC042256	Eurocrete Blocks Private Limited	Director	21/04/2003	21/04/2003	-	Active	NO
7	U72900MH2000PLC127850	Shree Laxmi Infosolutions And Jewellary Limited	Director	20/05/2004	20/05/2004	-	Active	NO
8	U99999MH1971PTC015201	Dhanamall Silk Mills Private Limited	Director	10/01/2005	10/01/2005	-	Active	NO
9	U92411GJ1975GAP002711	West End Sports Club Limited	Director	29/09/2009	15/10/2005	-	Active	NO
10	U65923MH1993PTC072964	Catura Leasing And Finance Private Limited	Director	01/11/2005	01/11/2005	-	Amalgamated	NO
11	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Managing director	12/04/2006	12/04/2006	-	Active	NO
12	U45201GJ1989PLC012793	Laxmi Infra Developers Limited	Director	05/01/2007	05/01/2007	-	Active	NO
13	U51909GJ2007PTC051274	Mili Iron And Metal Company Private Limited	Director	05/07/2007	05/07/2007	-	Active	NO
14	U45201GJ2007PTC051392	Sooree Infrasystems Private Limited	Director	25/07/2007	25/07/2007	-	Under Process of Striking off	NO
15	U45201GJ2007PTC051596	Lax Infra Buildcon Private Limited	Director	24/08/2007	24/08/2007	-	Active	NO
16	U52390MH2007PTC172584	Ambition Retail Private Limited	Director	30/09/2010	04/11/2009	-	Active	NO
17	U45201GJ2007PTC051275	Shanti Residences Private Limited	Director	29/09/2010	09/11/2009	-	Active	NO
18	U24134GJ2010PLC063117	Creative Polyfilms Limited	Director	02/12/2010	02/12/2010	-	Active	NO

Name :

Mr. Nitinbhai Chunibhai Gajera

Designation :

Director

Address :

49-50, Vishnu Nagar Society, New A. K. Road, Surat-395008, Gujarat, India

Date of Birth/Age :

11.06.1984

Date of Appointment :

12.04.2006

DIN No.:

00147866

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	U36910MH1999PTC120648	Laxmi Jewel Private Limited	Director	01/04/2003	01/04/2003	-	Active	YES
2	U36912MH1992PTC068743	Laxmi Dia Jewel Private Limited	Director	20/10/2003	20/10/2003	-	Active	NO
3	U36910GJ1999PTC035847	Shraddha Jewels Private Limited	Director	21/10/2003	21/10/2003	-	Active	NO
4	U36912GJ2003PTC042258	Exclusive Gems Private Limited	Director	18/03/2004	18/03/2004	-	Active	NO
5	U36910MH2004PTC145377	Lj Creations Private Limited	Director	29/03/2004	29/03/2004	06/02/2008	Amalgamated	NO
6	U72900MH2000PLC127850	Shree Laxmi Infosolutions And Jewellary Limited	Director	20/05/2004	20/05/2004	-	Active	NO
7	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Director	12/04/2006	12/04/2006	-	Active	NO

Name :

Mrs. Sarojben Ashokbhai Gajera

Designation :

Director

Address :

31, Kalpavruksha Apartments, 27, B. G. Kher Marg, Walkeshwar, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

27.08.1969

Date of Appointment :

22.04.2006

DIN No.:

00743941

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	U36910GJ1999PTC035847	Shraddha Jewels Private Limited	Director	21/03/2002	21/03/2002	-	Active	NO
2	U36911MH2006PTC161091	Laxmi Diamond Private Limited	Director	22/04/2006	22/04/2006	-	Active	NO
3	U45201GJ2007PTC051275	Shanti Residences Private Limited	Director	30/09/2011	03/10/2010	-	Active	NO

Name :

Mr. Lalitkumar Dhirajlal Gajeja

Designation :

Director

Address :

43-44, Kantareshwar Society, Behind Ananbd Ashram, Katargam, Surat-395004, Gujarat, India

Date of Birth/Age :

03.05.1972

Date of Appointment :

04.07.2007

DIN No.:

01624264

Name :

Mr. Samrat Ajay Chokshi

Designation :

Director

Address :

204, Virat Apartments, Dwalibag, Athwagate, Surat-395001, Gujarat, India

Date of Birth/Age :

18.01.1978

Date of Appointment :

04.07.2007

DIN No.:

01627380

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Vasantbhai Harijbhai Gajera	4500000
Ashokbhai Harijbhai Gajera	4900000
Chunibhai Harijbhai Gajera	3660000
Nitinbhai Chunibhai Gajera	700000
Bhavnaben Vasantbhai Gajera	350000
Sarojben Ashokbhai Gajera	750000
Sunitaben Chunibhai Gajera	140000
Rakesh G Gajera (Repatriable)	2336740
Total	17336740

Equity Share Breakup (Percentage of Total Equity)

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polished Diamonds.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Processed Polished Diamones	Carats	463722.48
Studded Jewellery	Gms	Nil

GENERAL INFORMATION

Bankers :

· State Bank of Saurashtra, 1^st Floor, Diamond Queen, 198, Rajaram Mohan Roy Marg, Girgaon, Mumbai – 400004, Maharashtra, India

· State Bank of India, Diamond Branch, 1^st Floor, Majestic Shopping Centre, Majestic Shopping Centre, 144, J.S.S. Road, Girgaon, Mumbai-400004, Maharashtra, India

· Bank of India-Lead Bank and 3 Others Seepz Mid Corporate Branch, Behind Seepz Service Centre Building, Marol Industrial Area, Seepz, Mumbai-400096, Maharashtra, India

Facilities:

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Diamond Division From Banks (Secured by mortgage of various office and factory premises, Land, Machinery, Hypothecation of stocks, receivables, lein on fixed deposit receipts, personal guarantee of all directors and their relative and corporate guarantee forms subsidiary)	4642.620	4959.253
Power Division From Banks (Secured by Mortgage of Land, Wind Mill and Lien on Fixed deposit receipts, personal guarantee of all directors and their relative and corporate guarantee forms subsidiary)	44.873	72.464
Total	4687.493	5031.717
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors/ Share Holders	587.178	903.082
Total	587.178	903.082
Note: Entire amount of unsecured loan are from Directors / shareholders Unsecured loan include credit on account of revaluation reserve of Rs. 211.071 Millions (net of depreciation) as on date of registration under Part-IX.

Banking Relations :

Satisfactory

Auditors :

Name :

Ramesh Rajni and Company

Chartered Accountant

Address :

1^st Floor, Purshottam Building, 450, Lamington Road, Mumbai-400004, Maharashtra, India

Tel. No.:

91-22-23669708/ 23669709/ 23618386

Fax No.:

91-22-23631810

E-Mail :

ramrajco@vsnl.com

PAN No.:

AAFFR7782K

Enterprises Over which key management personal and relatives of such personal is able to exercise significant influence:

· Komal Gems NV

· Shraddha Jewels Private Limited

· Laxmi Technologies

· Laxmi Techno Vision Private Limited

· Katura Leasing and Finance Private Limited

· Shree Laxmi Infrastructure Private Limited

· Laxmi Infra Developer Limited

· Shanti Enterprises

· Milli Star NY Inc.

· New S Chem Limited

· Shantaben Haribhai Gajera Charital Trust.

Associates:

· Shree Laxmi Info Solution and Jewellery Limited

· Laxmi Dia Jewel Private limited, India

· Laxmi Jewel BVBA, Belgium

· Laxmi Diamond (HK) Limited, Hong Kong

· International Jewellery Mfg. Co. Limited, Thailand

Subsidiaries :

· Dhanamall Silk Mills Private Limited

CIN No.: U99999MH1971PTC015201

· Laxmi Jewels Inc, USA

· Suberi Bros. LLC, USA

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Share	Rs. 10/- each	Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Share	Rs. 10/- each	Rs. 70.000 Millions
10336740	Equity Shares	Rs. 10/- each	Rs. 103.367 Millions
	Total		Rs. 173.367 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		173.367	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2079.412	1381.542	1898.351
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2252.779	1531.542	2048.351
LOAN FUNDS
1] Secured Loans		4687.493	5031.717	4378.475
2] Unsecured Loans		587.178	903.082	597.128
TOTAL BORROWING		5274.671	5934.799	4975.603
DEFERRED TAX LIABILITIES		0.000	0.000	2.575
TOTAL		7527.450	7466.341	7026.529
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		816.395	815.316	846.567
Capital work-in-progress		0.000	0.012	12.712
INVESTMENT		209.480	206.846	206.846
DEFERREX TAX ASSETS		86.730	295.191	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1984.072	2862.144	2404.878
	Sundry Debtors	5301.789	4775.289	4330.247
	Cash & Bank Balances	80.282	3.869	108.273
	Other Current Assets	364.567	130.976	52.985
	Loans & Advances	390.761	517.066	419.314
Total Current Assets		8121.471	8289.344	7315.697
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1586.044	1217.567	902.842
	Other Current Liabilities	59.427	53.128	76.507
	Provisions	61.387	870.137	376.640
Total Current Liabilities		1706.858	2140.832	1355.989
Net Current Assets		6414.613	6148.512	5959.708
MISCELLANEOUS EXPENSES		0.232	0.464	0.696
TOTAL		7527.450	7466.341	7026.529

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Turnover	14563.961	10609.659	11396.248
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		671.194	[739.050]	518.322
Less/ Add	DEPRECIATION/ AMORTISATION		72.856	73.964	79.631
	PROFIT BEFORE/ LOSS TAX		598.338	[813.014]	438.691
Less	TAX		227.611	[296.205]	116.041
	PROFIT/ LOSS AFTER TAX		370.727	[516.809]	322.650
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11407.157	8707.689	8850.332
	TOTAL EARNINGS		11407.157	8707.689	8850.332
	IMPORTS
		Raw Materials	6136.490	3448.725	3920.260
		Finished Goods	3648.322	4183.947	3982.469
		Capital Goods	102.158	7.699	13.107
	TOTAL IMPORTS		9886.970	7640.371	7915.836
	Earnings Per Share (Rs.)		21.38	[73.83]	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Return on Total Assets (PBT/Total Assets}	(%)	6.69	[8.93]	5.37
Return on Investment (ROI) (PBT/Networth)		0.27	[0.53]	0.21
Debt Equity Ratio (Total Liability/Networth)		3.10	5.27	3.09
Current Ratio (Current Asset/Current Liability)		4.79	3.87	5.40

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 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 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.

Operations:

The company has earned gross revenues of Rs. 14563.961 Millions during the year. After providing an expenditure of Rs. 14193.234 Millions, the company has earned net profit after tax of Rs. 370.727 Millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36911MH2006PTC161091
Name of the company	LAXMI DIAMOND PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	416, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10015571
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, Diamond Branch, 1^st Floor, Majestic Shopping Centre, Majestic Shopping Centre, 144, J.S.S. Road, Girgaon, Mumbai-400004, Maharashtra, India kamalax_saraf@hotmail.com
Nature of instrument creating charge	a) Supplemental Working Capital Consortium Agreement b) Supplemental Joint Deed of Hypothecation Both the above agreement constitute a single modification.
Date of instrument Creating the charge	24.09.2011
Amount secured by the charge	Rs. 4.920 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest/ Commission shall be payable as may be stipulated from time to time by the individual member banks of state bank of India consortium. Terms of Repayment As per sanction terms Margin As per sanction terms Extent and Operation of the charge With the merger of State Bank of Saurashtra and State Bank of Indore with State Bank of India, The limits sanctioned by State Bank of Saurashtra and State of Indore have been taken over by State Bank of India. Further the limits sanctioned by State Bank of Indore have been taken over by corporation bank as state in the recitals. Others Not Applicable.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The whole of the current asses of the company namely stock of raw materials, comprising of rough cut and polished diamonds and precious stones and gems stocks in process, semi finished goods and finished goods viz. polished diamonds stores and gems stores and spares not relating to plant and machinery (consumable stores and spares), bills, receivables and book debts and all other movable and book debts and all other movbales plant and machinery.
Date of instrument modifying the charge	02.08.2006
Particulars of the present modification	Now by the present modification Dated 24.09.2011 with the merger of SB Saurashtra And SB Indore with SBI, The limits sanctioned by SB Saurashtra and SB Indore have been taken over by SBI. Further, the limits sanctioned by SB Indore (now SBI) have been over by corporation bank in terms of which, the total limit of working capital facilities sanctioned to the borrower remains unchanged at Rs. 4920.000 Millions.

Corporate identity number of the company	U36911MH2006PTC161091
Name of the company	LAXMI DIAMOND PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	416, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
This form is for	Modification of charge
Type of charge	Equitable mortgage or mortgage of property by deposition the title deeds
Particular of charge holder	State Bank of Saurashtra Overseas Branch, 1^st Floor, Diamond Queen, 198, Rajaram Mohan Roy Marg, Girgaon, Mumbai – 400004, Maharashtra, India vlaxman@vsnl.com
Amount secured by the charge	Rs. 142.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	The above goods, debts and assets shall be the security by way of first charge for payment and discharge by the Borrower to the bank on demand a sum of Rs. 142 Millions
Description of the property charged indicating whether it is a charged on	Stock in trade Plant and Machinery Book debts
Particulars of the property charged	All present and future goods book debts and all other movable assets of the borrower including documents of title to the goods, outstanding moneys, receivable including receivables by way of cash assistance and / or cash incentives under the Cash Incentive Scheme or any other.
Charge identification number of the charge to be modified	10015617
Brief description of the instrument modifying the charge under section 135	Memorandum of Entry
Date of instrument modifying the charge	02.08.2006
Particulars of the present modification	The company created a mortgage by deposit of title deeds in respect of its immovable properties namely : Unit No. 317 adm. 250 sq. ft.

Fixed Assets

· Office and Residential Premises

· Furniture, Fixture and Electric Fittings

· Plant, Machinery and Equipments

· Computer

· Vehicles

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. 48.82
UK Pound	1	Rs. 78.57
Euro	1	Rs. 69.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
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	NO
--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.