MIRA INFORM REPORT

Report Date :

11.07.2012

IDENTIFICATION DETAILS

Name :	JOY ALUKKAS JEWELLERY LLC

Formerly Known As :	ALUKKAS JEWELLERY LLC

Registered Office :	New Century City Tower, 9^th Floor, Deira, P O Box 12928,Dubai

Country :	United Arab Emirates

Date of Incorporation :	13.11.1988

Com. Reg. No.:	43636, Dubai

Legal Form :	Limited Liability Company

Line of Business :	Wholesaler and retailer of jewellery and precious stones

No. of Employees :	400

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

United Arab Emirates

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

SUMMARY

Company Name : JOY ALUKKAS JEWELLERY LLC

Previously Known As : ALUKKAS JEWELLERY LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 13^th November 1988

Commercial Registration Number : 43636, Dubai

Trade Licence Number : 217959

Chamber Membership Number : 9635

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Total Workforce : 400

Activities : Wholesaler and retailer of jewellery and precious stones.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Joby Chen, Assistant Finance Manager

COMPANY NAME

JOY ALUKKAS JEWELLERY LLC

PREVIOUSLY KNOWN AS

ALUKKAS JEWELLERY LLC

company ADDRESS

Registered & Physical Address

Building : New Century City Tower, 9^th Floor

Area : Deira

PO Box : 12928

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2522900

Facsimile : (971-4) 2255933

Mobile : (971-50) 6252623

Email : alukkas@alukkas.com / finance@joyalukkas.com / thomas@joyalukkas.com

Please note that subject’s previous address was, Gold Centre, 3^rd Floor, Al Khor Street, Al Ras, Deira, Dubai.

Premises

Subject operates from a large suite of offices and a showroom that are rented and located in the Central Business Area of Dubai.

Branch Office (s)

Location Description

· Hamel Bin Khadim Alghiath Building Rented showroom premises

Al Daghaya Street

Dubai

Tel: (971-4) 2290076

Fax: (971-4) 2269735

· Development Board Building Rented showroom premises

Al Nahda Road

Dubai

Tel: (971-4) 2635270 / 2631573

· Lulu Shopping Mall Rented showroom premises

Al Nahda Road

Dubai

Tel: (971-4) 2988590

Fax: (971-4) 2988580

· Karama Centre Rented showroom premises

Zaabeel Street

Dubai

Tel: (971-4) 3379183

Fax: (971-4) 3379188

KEY PRINCIPALS

Name Nationality Position

· Joy Varghese Alukkas Indian Managing Director

· Jassim Mohamed Ibrahim Abdullah Al Hasawi Emirati Director

· Tommy Joseph - Commercial Manager

· Thomas Sackarya - Finance Manager

· Joby Chen - Assistant Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 13^th November 1988

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 43636, Dubai

Trade Licence No. : 217959 (Expires 26/10/2012)

Chamber Member No. : 9635

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Name of Shareholder (s) Percentage

· Jassim Mohamed Ibrahim Abdullah Al Hasawi 51%

· Joy Varghese Alukkas 49%

AFFILIATED COMPANIES

· Alukkas Gulf FZCO

Gold & Diamond Park

Jebel Ali Free Zone

Dubai

· House of Alukkas LLC

Gold Centre

Al Khor Street

PO Box: 112454

Dubai

Tel: (971-4) 2291300

Fax: 971-4) 2295331

Email: houseofalukkas@hotmail.com

· Alukkas Wedding Centre

Main Road

Angamaly

India

Tel: (91-484) 2452999

Fax: (91-484) 2456299

· Joy Alukkas Traders (India)Pvt Ltd

St Louis Commercial Complex

10/815/28

Erinjery Angadi

Thrissur-680001

India

Tel: (91-487) 2445444

Fax: (91-487) 2446555

· Joy Alukkas Jewellery WLL

PO Box: 1897

Muscat

Oman

Tel: (968) 24797212

Fax: (968) 24797181

· Joy Alukkas Jewellery WLL

PO Box: 22717

Doha

Qatar

Tel: (974) 44786844

Fax: (974) 44786838

· Joy Alukkas Jewellery WLL

PO Box: 3008

Safat

Kuwait

Tel: (965) 22494845 / 22475959

Fax: (965) 22494842

· Joy Alukkas Diamonds LLC

PO Box: 27847

Sharjah

Tel: (971-6) 5749919

Fax: (971-6) 5639626

· Joy Alukkas Jewellery WLL

PO Box: 11492

Manama

Bahrain

Tel: (973-17) 229914

Fax: (973-17) 229924

· Joy Alukkas Jewellery LLC

PO Box: 11659

Ras Al Khaimah

Tel: (971-7) 2283221

Fax: (971-7) 2270207

· Joy Alukkas Jewellery LLC

PO Box: 71659

Abu Dhabi

Tel: (971-2) 6331377

Fax: (971-2) 6319835

· Alukkas Exchange

PO Box: 171468

Dubai

Tel: (971-4) 3535469

Fax: (971-4) 3535683

OPERATIONS

Activities: Engaged in the wholesale and retail of jewellery and precious stones, necklace sets, bangles, bracelets, chains, earrings, pendants, rings and coins.

Import Countries: Europe and the Far East.

Brand Names: MAYOORI, FLORENTINA and ZENINA

Operating Trend: Steady

Subject has a workforce of approximately 400 employees.

FINANCIAL DATA

Mr Joby Chen, Assistant Finance Manager states that the combined turnover for all GCC operations was UAE Dh 1,500,000,000 for the year ending 31^st March 2011.

BANKERS

· Emirates Bank International Ltd

Baniyas Road

Deira

PO Box: 2923

Dubai

Tel: (971-4) 2256256 / 2256900

Fax: (971-4) 2268005 / 2267718

· Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

Fax: (971-4) 2233784

· Standard Chartered Bank

Khalid Bin Waleed Street

PO Box: 999

Dubai

Tel: (971-4) 2520455

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.81
UK Pound	1	Rs.86.53
Euro	1	Rs.68.58

INFORMATION DETAILS

Report Prepared by :

MNL

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	----

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%)

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.