MIRA INFORM REPORT

Report Date :

12.07.2012

IDENTIFICATION DETAILS

Name :	SIROYA JEWELLERS LLC
Registered Office :	The Gold Center, 1^st Floor, Suite 27 Al Khor Street New Gold Souq, Deira PO Box 16067 Dubai
Country :	United Arab Emirates
Financials (as on) :	31.12.2011
Date of Incorporation :	06.11.1992
Com. Reg. No.:	42492, Dubai
Legal Form :	Limited Liability Company - LLC
Line of Business :	Retailers of jewellery
No. of Employees :	65

RATING & COMMENTS

MIRA’s Rating :

A

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)
UAE	A2	A2

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

SUMMARY

Company Name : SIROYA JEWELLERS LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 6^th November 1992

Commercial Registration Number : 42492, Dubai

Trade Licence Number : 229396

Chamber Membership Number : 25536

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Total Workforce : 65

Activities : Retailers of jewellery

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : H R Banfna, Finance Manager

COMPANY NAME

SIROYA JEWELLERS LLC

ADDRESS

Registered & Physical Address

Building : The Gold Center, 1^st Floor, Suite 27

Street : Al Khor Street

Area : New Gold Souq, Deira

PO Box : 16067

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2265678 / 2254254

Facsimile : (971-4) 2251840

Email : siroya@emirates.net.ae

Premises

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

Branch Office (s)

Location Description

· Hamil Bin Khadim Al Ghaith Building Rented retail outlet

Al Khaleej Street

Dubai

Tel: (971-4) 2261313

Fax: (971-4) 2251840

· Mirza Hussain Al Fardan Building Rented retail outlet

Al Mussalla Street

Bur Dubai

Dubai

Tel: (971-4) 3511001

Fax: (971-4) 3511002

KEY PRINCIPALS

Name Position

· Chandra Prakash Siroya Managing Director

· Ashok Siroya Director

· Sanjay Siroya Director

· H R Banfna Finance Manager

· Rajesh Jain Commercial Manager

· Jayan Thakkar Sales Manager

LEGAL FORM & OWNERS

Date of Establishment : 6^th November 1992

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 42492, Dubai

Trade Licence No. : 229396 (Expires 30/10/2012)

Chamber Member No. : 25536

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Name of Shareholder (s) Percentage

· Sheikh Majid Hamad Al Qassimi 51%

· Chandra Prakash Siroya 25%

· Ashok Siroya 12%

· Sanjay Siroya 12%

AFFILIATED COMPANIES

· Happy Umbrella FZC

Ras Al Khaimah

· Belgium Diamond Jewellery LLC

Dubai

· Kunal Gold Industrial Factory Ltd

Dubai

· Al Basti International

Dubai

· Bali Bullion Trading FZC

Hamriyah

Sharjah

· Bullion & Gems Trading FZC

Hamriyah

Sharjah

OPERATIONS

Activities: Retailers of jewellery, specialising in 21K & 22K jewellery pieces, as well as dealing in rough, cut and

polished diamonds, precious stones like emeralds and rubies.

Subject also provides custom made jewellery items and handmade bangles.

Import Countries: Bahrain, India, Italy, Turkey, Singapore and Malaysia.

Operating Trend: Steady

Subject has a workforce of 65 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/10: Year Ending 31/12/11:

Total Sales UAE Dh 323,000,000 UAE Dh 329,500,000

Local sources consider subject’s financial condition to be Good.

The above figures were provided by Mr H R Banfna, Finance Manager

BANKERS

· Standard Chartered Bank

Khalid Bin Waleed Street

Mankhool Branch

PO Box: 999

Dubai

Tel: (971-4) 2520455

· Habib Bank Ltd

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Siroya Jewellers LLC specialises in 21K & 22K jewellery pieces, as well as dealing in rough, cut and polished diamonds, precious stones like emeralds and rubies.

The company is owned by members of the Siroya family who have many years experience in the jewellery industry and are respected businessmen in the local community.

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.55.36
UK Pound	1	Rs.85.95
Euro	1	Rs.67.87

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.