MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	LAXMI DIAMOND PRIVATE LIMITED
Registered Office :	416, Prasad Chambers, Opera House, Mumbai-400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
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.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 10000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 normal 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 / Head Office / Factory :	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 29.09.2011

Name :

Mr. Mitesh Chunilal Gajera

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	Company Status	Defaulting status
1	U36910GJ1999PTC035847	SHRADDHA JEWELS PRIVATE LIMITED	Director	01-11-06	01-11-06	Active	NO
2	U36912MH1992PTC068743	LAXMI DIA JEWEL PRIVATE LIMITED	Director	01-11-06	01-11-06	Active	NO
3	U45201GJ1989PLC012793	LAXMI INFRA DEVELOPERS LIMITED	Director	07-05-07	07-05-07	Active	NO
4	U72900MH2000PLC127850	SHREE LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED	Director	07-07-07	07-07-07	Active	NO
5	U36910MH1999PTC120648	LAXMI JEWEL PRIVATE LIMITED	Director	07-07-07	07-07-07	Amalgamated	NO
6	U52390MH2007PTC172584	AMBITION RETAIL PRIVATE LIMITED	Director	24-07-07	24-07-07	Active	NO
7	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Director	20-03-08	20-03-08	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	21-04-03	21-04-03	11-03-10	Active	NO
2	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Director	22-04-06	22-04-06	-	Active	NO
3	U51909GJ2007PTC051274	MILI IRON AND METAL COMPANY PRIVATE LIMITED	Director	05-07-07	05-07-07	02-04-09	Active	NO
4	U17119GJ1992PTC017302	SHRI LAXMI NARAYAN POLYFIBRE PRIVATE LIMITED	Director	19-09-11	29-01-11	-	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	05-08-91	05-08-91	-	Active	NO
2	U36912MH1992PTC068743	LAXMI DIA JEWEL PRIVATE LIMITED	Director	26-09-94	26-09-94	-	Active	NO
3	U36910MH1999PTC120648	LAXMI JEWEL PRIVATE LIMITED	Director	02-07-99	02-07-99	-	Amalgamated	NO
4	U24110GJ1994PLC023372	LAXMI INFRA-STONE LIMITED	Director	22-10-99	22-10-99	-	Active	NO
5	U36911GJ2002PTC040903	PARI JEWEL PRIVATE LIMITED	Director	24-03-03	24-03-03	-	Active	NO
6	U72900MH2000PLC127850	SHREE LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED	Director	20-05-04	20-05-04	-	Active	NO
7	U99999MH1971PTC015201	DHANAMALL SILK MILLS PRIVATE LIMITED	Director	10-01-05	10-01-05	-	Active	NO
8	U36911MH2005PTC153249	GL DIAMOND SOURCING PRIVATE LIMITED	Director	12-05-05	12-05-05	06-02-09	Active	NO
9	U65923MH1993PTC072964	CATURA LEASING AND FINANCE PRIVATE LIMITED	Director	01-11-05	01-11-05	-	Amalgamated	NO
10	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Whole-time director	12-04-06	12-04-06	-	Active	NO
11	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	01-11-06	01-11-06	-	Active	NO
12	U45201GJ1989PLC012793	LAXMI INFRA DEVELOPERS LIMITED	Director	07-05-07	07-05-07	-	Active	NO
13	U45201GJ2007PTC051596	LAX INFRA BUILDCON PRIVATE LIMITED	Director	24-08-07	24-08-07	-	Active	NO
14	U45203MH2010PTC204858	MBA HEIGHTS AND PROPERTIES PRIVATE LIMITED	Director	25-06-10	25-06-10	-	Active	NO
15	U45201GJ2007PTC051275	SHANTI RESIDENCES PRIVATE LIMITED	Director	30-09-11	03-10-10	-	Active	NO
16	U24134GJ2010PLC063117	CREATIVE POLYFILMS LIMITED	Director	02-12-10	02-12-10	-	Active	NO
17	U45200GJ2012PTC069232	SHANTI LIFE SPACE PRIVATE LIMITED	Director	29-02-12	29-02-12	-	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	13-03-92	13-03-92	-	Active	NO
2	U36912MH1992PTC068743	LAXMI DIA JEWEL PRIVATE LIMITED	Director	26-09-94	26-09-94	-	Active	NO
3	U36910MH1999PTC120648	LAXMI JEWEL PRIVATE LIMITED	Director	02-07-99	02-07-99	-	Amalgamated	NO
4	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	16-05-01	16-05-01	-	Active	NO
5	U24110GJ1994PLC023372	LAXMI INFRA-STONE LIMITED	Director	06-05-02	06-05-02	-	Active	NO
6	U36912GJ2003PTC042258	EXCLUSIVE GEMS PRIVATE LIMITED	Director	21-04-03	21-04-03	-	Active	NO
7	U36910MH2004PTC145377	LJ CREATIONS PRIVATE LIMITED	Director	29-03-04	29-03-04	15-04-08	Amalgamated	NO
8	U72900MH2000PLC127850	SHREE LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED	Director	20-05-04	20-05-04	-	Active	NO
9	U92411GJ1975GAP002711	WEST END SPORTS CLUB LIMITED	Director	29-09-09	15-10-05	-	Active	NO
10	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Whole-time director	12-04-06	12-04-06	-	Active	NO
11	U45201GJ1989PLC012793	LAXMI INFRA DEVELOPERS LIMITED	Director	07-05-07	07-05-07	-	Active	NO
12	U45201GJ2007PTC051275	SHANTI RESIDENCES PRIVATE LIMITED	Director	05-07-07	05-07-07	-	Active	NO
13	U45201GJ2007PTC051596	LAX INFRA BUILDCON PRIVATE LIMITED	Director	24-08-07	24-08-07	-	Active	NO
14	U17110GJ1991PTC015656	BALMUKUND DIAMONDS PRIVATE LIMITED	Director	15-10-07	15-10-07	31-07-08	Active	NO
15	U52390MH2007PTC172584	AMBITION RETAIL PRIVATE LIMITED	Director	30-09-10	04-11-09	-	Active	NO
16	U45201GJ2010PTC059623	SPRING VALLEY REALTY PRIVATE LIMITED	Director	02-03-10	02-03-10	-	Active	NO
17	U45200GJ2012PTC069232	SHANTI LIFE SPACE PRIVATE LIMITED	Director	29-02-12	29-02-12	-	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	Company Status	Defaulting status
1	U17119GJ1991PTC015657	BALMUKUND TEXOFAB PRIVATE LIMITED	Director	16-05-91	16-05-91	Active	NO
2	U36912MH1992PTC068743	LAXMI DIA JEWEL PRIVATE LIMITED	Director	25-09-92	25-09-92	Active	NO
3	U36910MH1999PTC120648	LAXMI JEWEL PRIVATE LIMITED	Director	02-07-99	02-07-99	Amalgamated	NO
4	U24110GJ1994PLC023372	LAXMI INFRA-STONE LIMITED	Director	06-05-02	06-05-02	Active	NO
5	U36911GJ2002PTC040903	PARI JEWEL PRIVATE LIMITED	Director	24-03-03	24-03-03	Active	NO
6	U45209GJ2003PTC042256	EUROCRETE BLOCKS PRIVATE LIMITED	Director	21-04-03	21-04-03	Active	NO
7	U72900MH2000PLC127850	SHREE LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED	Director	20-05-04	20-05-04	Active	NO
8	U99999MH1971PTC015201	DHANAMALL SILK MILLS PRIVATE LIMITED	Director	10-01-05	10-01-05	Active	NO
9	U92411GJ1975GAP002711	WEST END SPORTS CLUB LIMITED	Director	29-09-09	15-10-05	Active	NO
10	U65923MH1993PTC072964	CATURA LEASING AND FINANCE PRIVATE LIMITED	Director	01-11-05	01-11-05	Amalgamated	NO
11	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Managing director	12-04-06	12-04-06	Active	NO
12	U45201GJ1989PLC012793	LAXMI INFRA DEVELOPERS LIMITED	Director	05-01-07	05-01-07	Active	NO
13	U51909GJ2007PTC051274	MILI IRON AND METAL COMPANY PRIVATE LIMITED	Director	05-07-07	05-07-07	Active	NO
14	U45201GJ2007PTC051392	SOOREE INFRASYSTEMS PRIVATE LIMITED	Director	25-07-07	25-07-07	Under Process of Striking off	NO
15	U45201GJ2007PTC051596	LAX INFRA BUILDCON PRIVATE LIMITED	Director	24-08-07	24-08-07	Active	NO
16	U52390MH2007PTC172584	AMBITION RETAIL PRIVATE LIMITED	Director	30-09-10	04-11-09	Active	NO
17	U45201GJ2007PTC051275	SHANTI RESIDENCES PRIVATE LIMITED	Director	29-09-10	09-11-09	Active	NO
18	U24134GJ2010PLC063117	CREATIVE POLYFILMS LIMITED	Director	02-12-10	02-12-10	Active	NO
19	U45200GJ2012PTC069232	SHANTI LIFE SPACE PRIVATE LIMITED	Director	29-02-12	29-02-12	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	01-04-03	01-04-03	-	Amalgamated	NO
2	U36912MH1992PTC068743	LAXMI DIA JEWEL PRIVATE LIMITED	Director	20-10-03	20-10-03	-	Active	NO
3	U36910GJ1999PTC035847	SHRADDHA JEWELS PRIVATE LIMITED	Director	21-10-03	21-10-03	-	Active	NO
4	U36912GJ2003PTC042258	EXCLUSIVE GEMS PRIVATE LIMITED	Director	18-03-04	18-03-04	-	Active	NO
5	U36910MH2004PTC145377	LJ CREATIONS PRIVATE LIMITED	Director	29-03-04	29-03-04	06-02-08	Amalgamated	NO
6	U72900MH2000PLC127850	SHREE LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED	Director	20-05-04	20-05-04	-	Active	NO
7	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Director	12-04-06	12-04-06	-	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	Company Status	Defaulting status
1	U36910GJ1999PTC035847	SHRADDHA JEWELS PRIVATE LIMITED	Director	21-03-02	21-03-02	Active	NO
2	U36911MH2006PTC161091	LAXMI DIAMOND PRIVATE LIMITED	Director	22-04-06	22-04-06	Active	NO
3	U45201GJ2007PTC051275	SHANTI RESIDENCES PRIVATE LIMITED	Director	30-09-11	03-10-10	Active	NO

Name :

Mr. Lalitkumar Dhirajlal Gajera

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 29.09.2011

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

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polished Diamonds.

PRODUCTION STATUS [AS ON 31.03.2010]

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

GENERAL INFORMATION

No. of Employees :

Not Available

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 Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Working Capital Loans	4483.373	4687.493
Total	4483.373	4687.493
Unsecured Loan
Loans directors	95.169	587.178
Total	95.169	587.178

Banking Relations :	--
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
Associates :	· Laxmi Dia Jewel Private limited, India [U36912MH1992PTC068743] · Laxmi Diamond (HK) Limited, Hong Kong · Shree Laxmi Info Solution and Jewellery Limited
Subsidiaries :	· Suberi Bros. LLC, USA · Komal Gmes NV, New Zealand · Dhanamall Silk Mills Private Limited [U99999MH1971PTC015201]

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17336740	Equity Shares	Rs.10/- each	Rs.173.367 Millions

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		173.367	173.367	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2552.006	2079.413	1381.542
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2725.373	2252.780	1531.542
LOAN FUNDS
1] Secured Loans		4483.373	4687.493	5031.717
2] Unsecured Loans		95.169	587.178	903.082
TOTAL BORROWING		4578.542	5274.671	5934.799
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7303.915	7527.451	7466.341
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		848.960	816.395	815.316
Capital work-in-progress		1.187	0.000	0.012
INVESTMENT		209.729	209.481	206.846
DEFERREX TAX ASSETS		4.865	86.730	295.191
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3443.586	1984.072	2862.144
	Sundry Debtors	6997.278	5301.789	4775.289
	Cash & Bank Balances	383.453	80.282	3.869
	Other Current Assets	322.558	364.567	130.976
	Loans & Advances	353.909	390.761	517.066
Total Current Assets		11500.784	8121.471	8289.344
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5055.379	1586.044	1217.567
	Other Current Liabilities	78.879	59.427	53.128
	Provisions	127.352	61.387	870.137
Total Current Liabilities		5261.610	1706.858	2140.832
Net Current Assets		6239.174	6414.613	6148.512
MISCELLANEOUS EXPENSES		0.000	0.232	0.464
TOTAL		7303.915	7527.451	7466.341

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES		19012.173 [Gross Revenue]	14563.961	10609.659
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			671.194	(739.050)
Less/ Add	DEPRECIATION/ AMORTISATION		NA	72.856	73.964
	PROFIT / (LOSS) BEFORE TAX			598.338	(813.014)
Less	TAX			227.611	(296.205)
	PROFIT / (LOSS) AFTER TAX		472.593	370.727	(516.809)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14333.784	11407.157	8707.689
	IMPORTS
		Raw Materials		6136.490	3448.725
		Finished Goods	13976.580	3648.322	4183.947
		Capital Goods		102.158	7.699
	TOTAL IMPORTS		13976.580	9886.970	7640.371
	Earnings / (Loss) Per Share (Rs.)		27.25	21.38	(73.83)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	NA	4.11	(7.66)
Return on Total Assets (PBT/Total Assets}	(%)	NA	6.69	(8.93)
Return on Investment (ROI) (PBT/Networth)		NA	0.27	(0.53)
Debt Equity Ratio (Total Liability/Networth)		3.61	3.10	5.27
Current Ratio (Current Asset/Current Liability)		2.19	4.79	3.87

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 millions 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.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10015571
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
Type of charge	Immovable Property
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 Email: kamalax_saraf@hotmail.com
Nature of description of the instrument creating or modifying the charge	Indenture of mortgage
Date of instrument Creating the charge	18.10.2011
Amount secured by the charge	Rs.4920.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Sanction Terms Terms of Repayment As Per Sanction Terms Margin As Per Sanction Terms Extent and Operation of the charge As Per Sanction Terms
Short particulars of the property charged	The whole of the current assets 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 movables and Book debts and all other movables plant and machinery.
Date of latest modification prior to the present modification	24.09.2011
Particulars of the present modification	Now by the present modification Dated.18.10.2011 an indenture of mortgage was executed by the lead bank of SBI consortium acting for itself and behalf of members of SBI consortium namely SBB and J, SBP, SBP, SBM, DB, AB, ABL, CB, SBH, BOI, SBT, ADBN. V. and Corporation Bank by way of registered mortgage over the immovable properties to secure the credit facilities of Rs. 4920.000 millions.

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.50.90
UK Pound	1	Rs.81.27
Euro	1	Rs.67.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--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		45

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.