MIRA INFORM REPORT

Report Date :

30.06.2012

IDENTIFICATION DETAILS

Name :	SUBIR DIAMONDS PRIVATE LIMITED
Registered Office :	903, Prasad Chambers, Swadeshimills Compound, Opera House, Mumbai-400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.12.1982
Com. Reg. No.:	11-028980
Capital Investment / Paid-up Capital :	Rs.4.600 Millions
CIN No.: [Company Identification No.]	U36912MH1982PTC028980
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37789D
PAN No.: [Permanent Account No.]	AAACS6287Q
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Exporter of Rough and Polished Diamonds.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 350000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for business dealings at usual trade terms and conditions.

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 :	903, Prasad Chambers, Swadeshimills Compound, Opera House, Goregaon, Mumbai-400 004, Maharashtra, India
Tel. No.:	91-22-56346781 / 23631099
Fax No.:	91-22-23682708
E-Mail :	sakshime@hotmail.com
Website :	http://www.grotal.com/SubirDiamonds

DIRECTORS

As on 30.09.2011

Name :

Mr. Nirav Prabodh Mehta

Designation :

Director

Address :

901, Dev Darshan, 50, Ridge Road, Mumbai-400 006, Maharashtra, India

Date of Birth/Age :

02.10.1973

Date of Appointment :

31.10.1994

DIN No.:

00518614

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L51900MH1984PLC034880	PUNIT COMMERCIALS LTD	Director	31-10-94	31-10-94	-	Active	NO
2	U36912MH1982PTC028980	SUBIR DIAMONDS PRIVATE LIMITED	Director	31-10-94	31-10-94	-	Active	NO

Name :

Mrs. Priya Nirav Mehta

Designation :

Director

Address :

901, Dev Darshan, 50, Ridge Road, Mumbai-400 006, Maharashtra, India

Date of Birth/Age :

02.08.1973

Date of Appointment :

01.07.2002

DIN No.:

00519048

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36912MH1982PTC028980	SUBIR DIAMONDS PRIVATE LIMITED	Director	01-07-02	01-07-02	-	Active	NO
2	L51900MH1984PLC034880	PUNIT COMMERCIALS LTD	Director	29-08-02	29-08-02	-	Active	NO

Name :

Mr. Sujit Sureshchandra Mehta

Designation :

Director

Address :

7/A, Vidya Apartments, Siri Road, Loyalka Compound, Chowpatty Band Stand, Mumbai-400 006, Maharashtra, India

Date of Birth/Age :

18.06.1967

Date of Appointment :

04.11.2009

DIN No.:

01718827

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36912MH1982PTC028980	SUBIR DIAMONDS PRIVATE LIMITED	Director	04-11-09	04-11-09	-	Active	NO
2	L51900MH1984PLC034880	PUNIT COMMERCIALS LTD	Director	29-09-10	04-11-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Purnima Prabodh Mehta	38800
Nirav Prabodh Mehta	5640
Punit Commercials Limited	1560
Total	46000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	3.39
Directors or relatives of Directors	96.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Exporter of Rough and Polished Diamonds.

Products :

Product Description	Item Code No. (ITC Code)
Diamonds	710239-01

GENERAL INFORMATION

Suppliers :

Ø Expo Stars

Ø Lavasa Diamonds

Ø Monil Diam

Ø Punit Commercial

Ø Satani Impex

Ø Srimy Jewels

Customers :

Ø A.J. Mehta and Company

Ø Asian Star Company Limited

Ø Diagold Design Private Limited

Ø D. Navinchandra Gems Private Limited

Ø Excel Diamonds Private Limited

Ø Goldstar Jewellery Private Limited

Ø Kay Diamonds NV

Ø Kediam BVBA

Ø Kiran Gems Private Limited

Ø Mala Diamonds

Ø Presto Trade

Ø Rosy Blue India Private Limited

No. of Employees :

Not Available

Bankers :

Ø Oriental Bank of Commerce, Shreejee Chambers, Tata Road No.2, Opera House, Mumbai-400 004, Maharashtra, India

Ø Bank of Baroda

Ø Bank of India

Ø Oriental Bank of Commerce-DDA

Ø Oriental Bank of Commerce-EEFC

Ø State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
i) Packing Credit Loans from Banks	1.067	0.000
ii) Dollar Loans
A) From Banks	0.936	0.000
B) From Others	0.000	9.822
Total	2.003	9.822
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	2.801	4.400
Total	2.801	4.400

Banking Relations :	--
Auditors :
Name :	K. P. Mehta and Company (Kirit P. Mehta) Chartered Accountant
Address :	A/6, 2nd Floor, Vimal Apartment, Above Syndicate Bank, Juhu Lane, Andheri (West), Mumbai-400 058, Maharashtra, India
Tel. No.:	91-22-26702219 / 26253181
Mobile No.:	91-9820229036
Fax No.:	91-22-26252465
E-Mail :	kpmehtaco@yahoo.com
PAN.:	AAGPM0729C
Related Party:	Punit Commercial Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
95000	Equity Shares	Rs.100/- each	Rs.9.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46000	Equity Shares	Rs.100/- each	Rs.4.600 Millions

Note: out of the above, 2300 Equity shares are issued for a consideration other than cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		4.600	4.600	4.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		85.060	84.483	84.360
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		89.660	89.083	88.960
LOAN FUNDS
1] Secured Loans		2.003	9.822	2.745
2] Unsecured Loans		2.801	4.400	2.400
TOTAL BORROWING		4.804	14.222	5.145
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		94.464	103.305	94.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.128	0.149	0.176
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.200	0.200	0.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	39.164	85.158	23.957
	Sundry Debtors	83.992	50.005	48.680
	Cash & Bank Balances	7.780	1.335	15.298
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.886	1.592	8.796
Total Current Assets		131.822	138.090	96.731
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.830	34.476	2.369
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.856	0.658	0.633
Total Current Liabilities		37.686	35.134	3.002
Net Current Assets		94.136	102.956	93.729
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		94.464	103.305	94.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	437.197	249.739	191.780
		Other Income	3.680	0.805	6.325
		TOTAL	440.877	250.544	198.105
Less	TOTAL EXPENSES (Including Interest and Depreciation)		440.072	250.396	198.368
	PROFIT BEFORE TAX		0.805	0.147	(0.263)
Less	TAX		0.241	0.025	0.008
	PROFIT AFTER TAX		0.564	0.122	(0.271)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		61.968	61.846	62.114
Less	APPROPRIATIONS
		(Excess) / Short Provision For Income Tax	(0.013)	0.000	(0.003)
	BALANCE CARRIED TO THE B/S		62.545	61.968	61.846
	EARNINGS IN FOREIGN CURRENCY
		Export of C and P Diamonds	58.631	71.538	54.202
		Export of Rough Diamonds	6.956	2.539	7.856
		Recovery of Freight and Insurance	0.110	0.127	0.107
		Foreign Exchange Fluctuation Profit and Loss	2.696	0.450	4.133
	TOTAL EARNINGS		68.393	74.654	66.298
	IMPORTS
		Rough Diamonds	246.935	173.057	89.032
	TOTAL IMPORTS		246.935	173.057	89.032
	Earnings Per Share (Rs.)		12.25	2.67	(5.89)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.13	0.05	(0.14)
Net Profit Margin (PBT/Sales)	(%)	0.18	0.06	(0.14)
Return on Total Assets (PBT/Total Assets}	(%)	0.61	0.11	(0.27)
Return on Investment (ROI) (PBT/Networth)		0.01	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		0.47	0.55	0.09
Current Ratio (Current Asset/Current Liability)		3.50	3.93	32.22

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

FINANCIAL RESULT:

During the year, due to the recession in the Diamond market the company has not been able to maintain its profit earning trend but expect to perform better next year.

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. 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.200.000 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.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36912MH1982PTC028980
Name of the company	SUBIR DIAMONDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	903, Prasad Chambers, Swadeshimills Compound, Opera House, Mumbai-400 004, Maharashtra, India Email: sakshime@hotmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80006774
Type of charge	Book debts Movable property (not being pledge) Stocks and Receivables
Particular of charge holder	Oriental Bank of Commerce, Opera House Branch, Shreeji Chambers, Tata Road No.2, Opera House, Mumbai-400 004, Maharashtra, India Email: emailroc@rediffmail.com
Nature of instrument creating charge	Supplemental Agreement to secure Credit / Loan Facilities
Date of instrument Creating the charge	02.02.2012
Amount secured by the charge	Rs.45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest Rate as agreed between the borrower company and the Bank from time to time. Penal Interest @ 2 % p.a. over and above the normal interest rate in case of default. Terms of Repayment Repayment, as agreed between the borrower company and the Bank from time to time. Margin Margin Rate, as agreed between the borrower company and the Bank from time to time. Extent and Operation of the charge At the request of the borrower company, the Bank has enhanced FDBP/FUDBP Limits upto Rs.45.000 Millions [Sub Limit Packing Credit Rs.10.000 Millions] against Hypothecation of DP/DA, Bills accompanied by airway Bills / Bills of Lading and hypothecation of Stock and Receivables. The Charge stands modified upto Rs.45.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of DP/DA, Bills accompanied by airway Bills / Bills of Lading and hypothecation of Stock and Receivables.
Particulars of the present modification	At the request of the borrower company, the Bank has enhanced FDBP/FUDBP Limits upto Rs.45.000 Millions [Sub Limit Packing Credit Rs.10.000 Millions] against Hypothecation of DP/DA, Bills accompanied by airway Bills / Bills of Lading and hypothecation of Stock and Receivables. The Charge stands modified upto Rs.45.000 Millions

FIXED ASSETS:

Ø Carat Balance

Ø Electrical Equipments

Ø Factory Equipments

Ø Machinery

Ø Office Equipments

Ø Office Furniture and Fixture

Ø Computer

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.56.30
UK Pound	1	Rs.88.06
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

DPTP

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		48

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.