MIRA INFORM REPORT

Report Date :

27.09.2011

IDENTIFICATION DETAILS

Name :	FINE JEWELLERY MANUFACTURING LIMITED

Registered Office :	Plot No. GJ/12, Seepz Complex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	08.10.2001

Com. Reg. No.:	11-133589

Capital Investment / Paid-up Capital :	Rs. 96.000 Millions

CIN No.: [Company Identification No.]	U36911MH2001PLC133589

TAN No.: [Tax Deduction & Collection Account No.]	MUMF028648

Legal Form :	A Closely held Public Limited Liability Company

Line of Business :	Manufacturer of Jewellery

No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1200000

Status :	Moderate

Payment Behaviour :	Slow But Correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

LOCATIONS

Registered Office / Export Unit :	Plot No. GJ/12, Seepz Complex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-30804080
Fax No.:	91-22-28292728 / 30804168
E-Mail :	finej@fine-jewellery.com
Website :	http://www.fine-jewellery.com

Domestic Unit:	Fine Jewellery (India) Limited Plot No. 14, WICEL, Opposite Seepz, MIDC, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-30813939
Fax No.:	91-22-30813999
E-Mail :	info@fine-jewellery.com

United States :	FJIL, Inc 608, 5^th Avenue, Suite # 405 A, New York – 10020 Tel. No.: 91-212-265 3707 / 7787 Fax No.: 91-212-265 7797 E-Mail : usa@fine-jewellery.com Nirvana Inc. 4923, East, 71^st Street, Tulsa, Oklahoma 74136 Tel No.: 91- 918- 6648471 Fax No.: 91- 918- 6646277

Dubai :	Thangam Jewel LLC, 301, Gold Land Building, Dubai – UAE
Tel. No.:	97 1 42 258019
Mobile :	97 1 42 258019
Fax No.:	97 1 42 260495
E-Mail :	uae@fine-jewellery.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Premkumar Lalitkumar Kothari
Designation :	Chairman and Managing Director
Address :	131-C, Rambha, 66, Nepensea Road, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	18.05.1951
Date of Appointment :	08.10.2001
DIN No.:	00103026

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U99999MH1987PLC043293	Fine Jewellery (India) Limited	Director	29-04-87	29-04-87	Active	NO
2	U39912MH1979PLC020923	M Shashikant Exports Limited	Director	25-03-89	25-03-89	Active	NO
3	U36911MH2001PLC133589	Fine Jewellery Manufacturing Limited	Managing director	08-10-01	08-10-01	Active	NO
4	U36912MH1989GAP053844	Seepz Gems And Jewellery Manufacturers Association	Additional director	26-09-03	26-09-03	Active	NO
5	U91990MH2005NPL154999	All India Gems And Jewellery Trade Federation	Director	08-04-09	22-07-05	Active	NO
6	U40109MH2010NPL203609	Seepz Exporters Energy Saving Association	Director	02-06-10	02-06-10	Active	NO
7	U36912MH2011PTC211948	Fine Jewellery Gold Private Limited	Director	06-01-11	06-01-11	Active	NO

Name :	Mr. Sohil Premkumar Kothari
Designation :	Executive Director
Address :	131-C, Rambha, 66, Nepensea Road, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	11.12.1978
Date of Appointment :	08.10.2001
DIN No.:	00102962

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	U39912MH1979PLC020923	M Shashikant Exports Limited	Director	19-08-00	19-08-00	-	Active	NO
2	U99999MH1987PLC043293	Fine Jewellery (India) Limited	Managing director	01-09-01	01-09-01	-	Active	NO
3	U36911MH2001PLC133589	Fine Jewellery Manufacturing Limited	Director	01-09-08	08-10-01	-	Active	NO
4	U51909MH2002PTC137786	N Jewellery Techniques Private Limited	Director	06-11-02	06-11-02	14-12-07	Active	YES
5	U93090MH2007PTC167858	Three Sixty Degrees Solutions Private Limited	Director	29-11-07	29-11-07	-	Active	NO
6	U36912MH2011PTC211948	Fine Jewellery Gold Private Limited	Director	06-01-11	06-01-11	-	Active	NO

Name :	Mr. Saurabh Surendrabhai Bhow
Designation :	Director
Address :	21, Sumadhur Co-Op. Housing Society, Nr. Manekbaug Society, Ambawadi, Ahmedabad 380015, Gujarat
Date of Birth/Age :	24.07.1956
Date of Appointment :	29.12.1997
DIN No.:	01564598

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U99999MH1987PLC043293	Fine Jewellery (India) Limited	Director	29-12-97	29-12-97	Active	NO
2	U36911MH2001PLC133589	Fine Jewellery Manufacturing Limited	Director	01-09-05	01-09-05	Active	NO

Name :	Mr. Viral Premkumar Kothari
Designation :	Executive Director
Address :	131-C, Rambha, 66, Nepensea Road, Mumbai-400096, Maharashtra, India
Date of Birth/Age :	16.06.1983
Date of Appointment :	01.09.2008
DIN No.:	02380318

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U36911MH2001PLC133589	Fine Jewellery Manufacturing Limited	Director	30-09-08	01-09-08	Active	NO
2	U39912MH1979PLC020923	M Shashikant Exports Limited	Director	30-09-10	22-04-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Premkumar Lalitkumar Kothari	1236510
Smita Premkumar Kothari	448800
Sohil Premkumar Kothari	1012130
Dharini Sohil Kothari	20800
Viral Premkumar Kothari	994560
Nilesh Surendra Bhow, USA	642400
M Shashikant Exports Limited, India	3996800
N B Investment Limited, Mauritius	1248000
Total	9600000

AS ON 30.09.2010

Names of Preference Shareholders	No. of Shares
Premkumar Lalitkumar Kothari	440000
Sohil Premkumar Kothari	120000
Viral Premkumar Kothari	440000
Nilesh Surendra Bhow	6000000
Total	7000000

AS ON 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	19.69
Bodies corporate	41.63
Directors or relatives of Directors	38.68
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Jewellery

Products :

Item Code No. (ITC Code)	Product Description
3834	Diamond Studded / Plain Gold and Platinum Jewellery

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Jewellery	Gms	--	--	346254.26

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

² Union Bank of India, Overseas Branch Seepz++, Building No. 2, Gala No. 007, Seepz++ Complex, Marol Industrial Area, Jogeshwari – Vakola Link Road, Andheri (East), Mumbai – 40093, Maharashtra, India

² Punjab National Bank, Offshore Banking Unit, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India

² State Bank of India, Offshore Banking Unit, New Banking Building, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loan from Banks	25.205	64.076
Foreign Currency {US$ 559309 (P.Y.: US$ 1260339)} (Installment falling due in 12 months - Rs. 13.112 millions) Secured by : - Equitable Mortgage of Company's Factory Land and Building; - Hypothecation of Plant and Machinery and other Fixed Assets; and - Personal Guarantee of one of the Directors and Ex-Directors.
Working Capital Facilities from Banks
a ) Pre-shipment Credit
In Indian Rupees	236.044	229.538
In Foreign Currency	130.195	169.681
b ) Post-shipment Credit
In Indian Rupees	118.224	83.174
In Foreign Currency	35.124	28.883
Secured by : - Extension of Equitable Mortgage of Company's Factory Land and Building; - Equitable Mortgage of Residential flat of one of the Ex-Directors; - Hypothecation of Current Assets and second charge on Fixed Assets of the Company; - Corporate Guarantee of two of the Associate concerns; and - Personal Guarantee of two of the Directors and one of the Ex-Directors.
Vehicle Loan from Bank	2.438	3.859
Secured by Hypothecation of Vehicles.
Total	547.230	579.211


Banking Relations :	--

Auditors :
Name :	Kantilal Parekh and Company Chartered Accountant
Address :	606, Om Chambers, Kemps Corner, Mumbai-400036, Maharashtra, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

13000000	Equity Shares	Rs.10/- each	Rs. 130.000 Millions
7000000	6% Cumulative Convertible Preference Shares	Rs. 10/- each	Rs. 70.000 Millions
	Total		Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
	(a) Equity Shares
9600000	Equity Shares	Rs.10/- each	Rs.96.000 Millions
	Of the above : 3600000 nos. (PY. 3600000) shares were allotted as fully paid up Bonus Shares by capitalization of Reserves and Surplus
	(b) Preference Shares
7000000	6% Cumulative Convertible Preference Shares	Rs. 10/- each	Rs. 70.000 Millions
	These preference shares will be converted in one or more tranches into Equity Shares of Rs. 10/- each at the price not lower than the price arrived at as per the pricing guidelines of the erstwhile Controller of Capital issue and to be redeemed at the end of fifteen years from the date of allotment or before at the sole discretion of the Board

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] Equity Share Capital		96.000	96.000	96.000
2] Preference Share Capital		70.000	70.000	70.000
3] Share Application Money		0.000	0.000	0.000
4] Reserves & Surplus		154.304	149.634	148.073
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		320.304	315.634	314.073
LOAN FUNDS
1] Secured Loans		547.230	579.211	521.090
2] Unsecured Loans		0.000	0.000	11.991
TOTAL BORROWING		547.230	579.211	533.081
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		867.534	894.845	847.154

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		162.570	195.330	177.882
Capital work-in-progress		40.000	33.000	23.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	565.163	562.461	572.693
	Sundry Debtors	485.097	409.544	383.914
	Cash & Bank Balances	13.199	14.457	9.005
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.303	17.883	12.502
Total Current Assets		1075.762	1004.345	978.114
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	377.548	313.322	307.309
	Other Current Liabilities	26.067	23.037	23.070
	Provisions	7.183	2.285	3.092
Total Current Liabilities		410.798	338.644	333.471
Net Current Assets		664.964	665.701	644.643

MISCELLANEOUS EXPENSES		0.000	0.814	1.629

TOTAL		867.534	894.845	847.154

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1255.916	1225.083	1304.315
		Other Income	0.684	1.433	0.803
		TOTAL (A)	1256.600	1226.516	1305.118

Less	EXPENSES
		Manufacturing Expenses	21.727	23.800	34.548
		Administrative Expenses	54.348	70.773	42.470
		Raw Material Consumed	936.586	907.676	986.177
		Increase/(Decrease) in Finished Goods	26.668	(1.226)	34.846
		Employees Cost	121.017	120.460	119.886
		Exchange Fluctuation Loss / Gain	7.697	26.476	(74.729)
		TOTAL (B)	1168.043	1147.959	1143.198

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.557	78.557	161.920

Less	FINANCIAL EXPENSES (D)		52.520	50.750	50.730

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		36.037	27.807	111.190

Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.468	25.354	25.077

	PROFIT BEFORE TAX (E-F) (G)		9.569	2.453	86.113

Less	TAX (I)		0.000	0.892	0.802

	PROFIT AFTER TAX (G-I) (J)		9.569	1.561	85.311

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		135.634	134.073	73.694

Less	APPROPRIATIONS
		Dividend on Preference Shares	4.200	0.000	1.243
		Dividend on Equity Shares	0.000	0.000	11.520
		Transfer to General Reserve	0.000	0.000	10.000
		Tax on Dividend	0.698	0.000	2.169
	BALANCE CARRIED TO THE B/S		140.305	135.634	134.073

	EXPORT VALUE		1255.916	1224.442	1300.938

	IMPORTS
		Raw Materials	730.758	220.131	551.028
		Stores & Spares	4.532	5.104	17.366
		Capital Goods	0.280	2.775	5.941
		Others	232.593	667.568	506.469
	TOTAL IMPORTS		968.163	895.578	1080.804

	Earnings Per Share (Rs.)		1.00	0.16	8.89

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.76	0.13	6.54

Net Profit Margin (PBT/Sales)	(%)	0.76	0.20	6.60

Return on Total Assets (PBT/Total Assets}	(%)	0.77	0.19	7.30

Return on Investment (ROI) (PBT/Networth)		0.03	0.01	0.27

Debt Equity Ratio (Total Liability/Networth)		2.99	2.91	2.76

Current Ratio (Current Asset/Current Liability)		2.62	2.97	2.93

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the company achieved a turnover of Rs. 1255.916 Millions and made Net Profit of Rs. 9.569 Millions.

FORM 8

Corporate identity number of the company	U36911MH2001PLC133589
Name of the company	FINE JEWELLERY MANUFACTURING LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. GJ/12, Seepz - Sez ++ Complaex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Punjab National Bank, Offshore Banking Unit, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Nature of instrument creating charge	Packing Credit Agreement (Hypothecation)
Date of instrument Creating the charge	17.09.2010
Amount secured by the charge	Rs. 10.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest : 6 month LIBOR + 3.50% per annum with a minimum of 8% Terms of repayment Packing Credit Adhoc Limit Margin Margin : 10% Extent and operation of the charge Punjab National Bank B/O Offshore Banking Unit Seepz Andheri (East) Mumbai First Charge Holder
Short particulars of the property charged (Including location of the property)	Hypothecation of raw materials, stocks in process, finished goods comprising gold, platinum, plain and studded jewellery, precious and semi precious stones, rough and cut and polished diamonds, packing materials, consumables, etc lying at the factory at Plot Gj-12, Seepz Sez, Andheri (East), Mumbai 400 096. or at any other location

Fixed Assets:

· Land and Building

· Plant and Machinery

· Electrical installation

· Furniture and Fixture

· Office Machinery

· Vehicles

· Computers

WEB SITE DETAILS

OVERVIEW:

Established in 1987, Fine Jewellery was among the first six factories to set up the Jewellery unit in SEEPZ. Fine Jewellery, a technologically- advanced organization driven by the vision to be a leader in the mass produced diamond jewellery segment has now grown into a multi-million dollar enterprise, converting aspirations to reality of diamond jewellery connoisseurs in more than 17 countries such as The United States, UK, Australia and the Middle East.

Background:

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. 49.61
UK Pound	1	Rs. 76.67
Euro	1	Rs. 66.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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.

MIRA INFORM REPORT

565.163

562.461

485.097

409.544

13.199

14.457

0.000

0.000

12.303

17.883

1075.762

377.548

26.067

23.037

7.183

2.285

410.798

664.964

665.701

0.76

0.13

0.76

0.20

0.77

0.19

0.03

0.01

2.99

2.91

2.62

2.97

Unit