MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	ROSY JEWELLERY EXPORTS PRIVATE LIMITED
Registered Office :	605 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.03.1991
Com. Reg. No.:	11-060594
Capital Investment / Paid-up Capital :	Rs.3.000 Millions
CIN No.: [Company Identification No.]	U36911MH1991PTC060594
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamond Jewellery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 140000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 slow but correct. The company can be considered normal for small 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/ Factory :	605 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-28290530
Fax No.:	91-22-23634475
E-Mail :	rosy@bom8.vsnl.net.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Mayur Jarmal Kothari

Designation :

Director

Address :

9/26, Shyam Niwas, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

18.05.1956

Date of Appointment :

04.03.1991

Din No.:

00702898

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	U36911TN1988PTC016643	RAJANIKANT SCHNEIDER AND ASSOCIATES PRIVATE LIMITED	Director	20-12-88	20-12-88	Active	NO
2	U36911TN1985PTC012478	RAJANIKANT AND SONS (DIAMOND AND JEWELLERY) PRIVATE LIMITED	Director	21-07-89	21-07-89	Active	NO
3	U36911MH1991PTC060594	ROSY JEWELLERY EXPORTS PRIVATE LIMITED	Director	04-03-91	04-03-91	Active	NO

Name :

Mr. Siddharth Shishir Mehta

Designation :

Director

Address :

51, Kshitij Nepean Sea Road, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

22.09.1976

Date of Appointment :

08.12.1997

Din No.:

01032544

Name :

Mr. Shishir Rajnikant Mehta

Designation :

Director

Address :

51, Kshitij Nepean Sea Road, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

15.11.1953

Date of Appointment :

04.03.1991

Name :

Mr. Jigar Rajen Kothari

Designation :

Director

Address :

8/35, Shyam Niwas, 51, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

16.11.1977

Date of Appointment :

01.06.2009

Din No.:

01593652

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	U36911TN1988PTC016643	RAJANIKANT SCHNEIDER AND ASSOCIATES PRIVATE LIMITED	Director	09-09-98	09-09-98	Active	NO
2	U36911MH1991PTC060594	ROSY JEWELLERY EXPORTS PRIVATE LIMITED	Additional director	01-06-09	01-06-09	Active	NO

Name :

Mrs. Shaila Mayur Kothari

Designation :

Director

Address :

9/26, Shyam Niwas, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.09.1957

Date of Appointment :

08.12.1997

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Shishir Rajnikant Mehta	64100
Hiraben R. Mehta	53000
Sushila S. Mehta	33000
Pushpa J. Kothari	5000
Pushpa J. Kothari and Jormal Kothari	10000
Jormal J. Kothari and Pushpa J. Kothari	1500
Rajen J. Kothari	16000
Rajen J. Kothari and Geeta R. Kothari	10000
Shaila Mayur Kothari	45000
Mayur Jarmal Kothari	40100
Rajnikant and Sons	22300
Total	300000

As on 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diamond Jewellery.

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Installed Capacity
Cut and Polished Diamonds	Cts	3850
Studded Gold Jewellery	Pcs	48550
Studded Platinum Jewellery	Pcs	450
Studded Silver Jewellery	Pcs	1450
Glass Bottle Gold Pendent	Pcs	3000

NOTE:

1. Licensing of capacity is not applicable.

2. The installed capacities are as certified by the management being a technical matter.

ACTUAL PRODUCTION:

Particulars	Actual Production [In Pcs]
Rings	303
Bracelets	6
Pendants	2231
Earrings	1529
Bangles	352
Necklace	6
Nose Pin	6
Single Stud	1

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, International Business Branch, Gen Bhosale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Packing Credit	18.571	17.550
Post Shipment Demand Loan	11.573	12.077
Total	30.144	29.627
NOTE: Primary Security: 1. Secured against hypothecation of inventories and book debts 2. Export orders, letter of credit and bills sent on collection Collateral Security: 1. Pledge of FDR amounting to Rs.9.044 millions 2. Equitable mortgage of residential flat of Mrs. Sushila Mehta and Geeta Kothari 3. Personal guarantee of directors and their family members 4. Hypothecation of moveable machinery.
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Shaila Mayur Kothari	0.122	0.122
Shishir Rajnikant Mehta	0.007	0.007
Total	0.129	0.129

Banking Relations :	--
Auditors :
Name :	Chokshi and Chokshi Chartered Accountants
Address :	15/17, Raghavji ‘B’ Building, Ground Floor, Raghavji Road, Gowalia Tank, Off Kemps Corner, Mumbai-400036, Maharashtra, India
Pan No.:	AAAFC2633B

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32.700	32.609	32.513
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.700	35.609	35.513
LOAN FUNDS
1] Secured Loans		30.144	29.627	29.572
2] Unsecured Loans		0.129	0.129	3.479
TOTAL BORROWING		30.273	29.756	33.051
DEFERRED TAX LIABILITIES		0.070	0.079	0.017
TOTAL		66.043	65.444	68.581
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.689	1.917	1.365
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.033	0.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.584	30.376	39.085
	Sundry Debtors	32.949	53.350	45.562
	Cash & Bank Balances	6.325	0.870	1.001
	Other Current Assets	2.554	2.526	3.312
	Loans & Advances	2.325	2.222	2.227
Total Current Assets		76.737	89.344	91.187
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.689	24.948	23.065
	Other Current Liabilities	0.000	0.074	0.102
	Provisions	0.694	0.828	0.834
Total Current Liabilities		12.383	25.850	24.001
Net Current Assets		64.354	63.494	67.186
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		66.043	65.444	68.581

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES			84.229	89.325
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			3.102	3.996
Less	FINANCIAL EXPENSES			2.491	2.839
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	0.611	1.157
Less/ Add	DEPRECIATION/ AMORTISATION			0.338	0.281
	PROFIT BEFORE TAX			0.273	0.876
Less	TAX			0.178	0.307
	PROFIT AFTER TAX		0.533	0.095	0.569
Less	PRIOR PERIOD EXPENSES		NA	0.000	0.135
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.000	0.079
	BALANCE CARRIED TO THE B/S		NA	0.095	0.513
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	83.763	88.949
	IMPORTS
		Raw Materials	NA	0.500	3.753
	Earnings Per Share (Rs.)		1.77	0.32	1.90

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	NA	0.32	0.98
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.30	0.95
Return on Investment (ROI) (PBT/Networth)		NA	0.01	0.02
Debt Equity Ratio (Total Liability/Networth)		1.19	1.56	1.61
Current Ratio (Current Asset/Current Liability)		6.20	3.46	3.80

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.

FINANCIAL RESULTS:

During the year the company has earned profit of Rs.0.533 million after tax.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90152820
Corporate identity number of the company	U36911MH1991PTC060594
Name of the company	ROSY JEWELLERY EXPORTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	605 Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Type of charge	Book Debts Movable Property [not being pledge] Others
Particular of charge holder	Bank of Baroda, International Business Branch, Gen Bhosale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India Email: sudeep.kumar@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods, book debts, moveable machinery and vehicles
Date of instrument Creating the charge	03.03.2011
Amount secured by the charge	Rs.49.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per RBI directives and bank's guidelines issued from time to time ( export packing credit/ PCFC and post shipment credit [ FBP/UFBP/PSDL/FCBP/FCBD]) Terms of Repayment Export packing credit (PC/ PCFC) Post shipment credit (FBP/ UFBP/ PSDL/FCBD) Direct bill/parcels Inland bank guarantee(performance/ financial) Margin 10% on stocks 10% on book debts 10% in case of PSDL 25% by way of FDR in case of B.G. Extent and Operation of the charge Bank of Baroda b/o Nariman Point Branch Foreshore Building Mumbai first charge holder
Short particulars of the property charged	Hypothecation of goods, book debts, movable machinery and vehicles
Date of latest modification prior to the present modification	08.10.2007
Particulars of the present modification	Charge increased from Rs.41.000 Millions to Rs.49.000 Millions.

FIXED ASSETS:

· Factory Building

· Plant and Machinery

· Furniture and Fittings

· Electrical Fittings

· Tools and Equipments

· Air Conditioners

· Vehicles

· Lab Equipments

· Computer

· Telephone

· Fridge

· Aqua Guard

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	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.