MIRA INFORM REPORT

Report Date :

15.10.2012

IDENTIFICATION DETAILS

Name :	SUPERGEMS JEWELLERY MANUFACTURING PRIVATE LIMITED
Registered Office :	Gala No 703 Building No II, Seepz # Sez, Seepz, Andheri (East), Mumbai – 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.01.1996
Com. Reg. No.:	11-096061
Capital Investment / Paid-up Capital :	Rs.156.051 millions
CIN No.: [Company Identification No.]	U36911MH1996PTC096061
TAN No.: [Tax Deduction & Collection Account No.]	MUMS45598A
PAN No.: [Permanent Account No.]	AABCS9707L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Wholesalers of Fine Jewellery
No. of Employees :	83 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 522000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears to be some accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory/ Godown :	Gala No 703 Building No II, Seepz # Sez, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-28290638/39554859/23638063
Fax No.:	91-22-28290466/23682752
E-Mail :	mumbai.accounts@supergemsgroup.com supergemsjewellery@rediffmail.com mumbai@supergemsgroup.com
Website :	www.grotal.com

DIRECTORS

As on 27.09.2011

Name :

Mr. Nikhil Ambalal Shah

Designation :

Director

Address :

3^rd Floor, Shanti Niwas, 269, Deodhar Road, Matunga (CR), Mumbai – 400019, Maharashtra, India

Date of Birth/Age :

15.02.1938

Date of Appointment :

05.02.1996

DIN No. :

00142223

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	U51400MH1994PTC077969	FABULA TRADING COMPANY PRIVATE LIMITED	Director	26/06/1995	26/06/1995	-	Active	NO
2	U51398MH1996PTC096116	DIAM CIRCLE MANUFACTURING PRIVATE LIMITED	Director	05/02/1996	05/02/1996	-	Active	NO
3	U36911MH1996PTC096061	SUPERGEMS JEWELLERY MANUFACTURING PRIVATE LIMITED	Director	05/02/1996	05/02/1996	-	Active	NO
4	U36910MH2000PTC127019	SUPERGEMS (INDIA) PVT LTD	Director	06/06/2000	06/06/2000	-	Active	NO

Name :

Mr. Anuj Prabhodh Shah

Designation :

Whole Time Director

Address :

10/IV, View Beach, Chowpaty Seaface, Mumbai – 400007, Maharashtra, India

Date of Birth/Age :

14.07.1974

Date of Appointment :

01.04.2005

DIN No. :

00152565

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	U32109MH2004PTC148226	SARTO ELECTRO EQUIPMENTS PRIVATE LIMITED	Director	26/08/2004	26/08/2004	-	Active	YES
2	U36911MH1996PTC096061	SUPERGEMS JEWELLERY MANUFACTURING PRIVATE LIMITED	Director	01/04/2005	01/04/2005	-	Active	NO

Name :

Mr. Rahul Pradip Pari

Designation :

Director

Address :

Flat No 16, Plot No 48, Ajit Building, Road No 2, Sion (East), Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

28.09.1973

Date of Appointment :

31.12.1999

DIN No. :

00142348

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	U36911MH1996PTC096061	SUPERGEMS JEWELLERY MANUFACTURING PRIVATE LIMITED	Director	31/12/1999	31/12/1999	-	Active	NO
2	U51400MH1994PTC077969	FABULA TRADING COMPANY PRIVATE LIMITED	Director	30/05/2000	30/05/2000	-	Active	NO
3	U36910MH2000PTC127019	SUPERGEMS (INDIA) PVT LTD	Director	06/06/2000	06/06/2000	-	Active	NO
4	U51398MH1996PTC096116	DIAM CIRCLE MANUFACTURING PRIVATE LIMITED	Director	08/12/2003	08/12/2003	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Equity Shares
Rajesh V Mehta	100
Fabula Holdings, Mauritious	10000
Supergems M E Limited, UAE	5298555
Nikhil A. Shah	99
Rahul P. Pari	1
Total	5308755

Names of Shareholders	No. of Preference Shares
Supergems M E Limited, UAE	10296349
Total	10296349

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Wholesalers of Fine Jewellery

Products :

Item Code No. (ITC Code)	Product Description
710239.01	Polished Diamonds
711319.03	Studded Jewellery

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Studded Jewellery	Nos	28701

GENERAL INFORMATION

No. of Employees :

83 (Approximately)

Bankers :

Union Bank of India, Overseas Branch, Seepz ++,007 Block No. II, Jogeshwari-Vikhroli Link Road, Marol Indl Area, Andheri, Mumbai - 400096, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Working capital loans banks secured	45.554	8.016
Total	45.554	8.016

Banking Relations :	--
Auditors :
Name :	Chhotalal H. Shah and Company Chartered Accountants
Address :	Damodar Mansion, 1st Floor, 15 A.K. Naik Marg,Fort, Mumbai 400 001, Maharashtra, India
Tel. No.:	91-22-22011787/22019193
Fax No.:	91-22-22053529
E-Mail :	chshah_co@vsnl.net
PAN No.:	AAAFC1492J
Holding company:	Supergems ME Limited, United Arab Emirates
Related Parties:	· Eternity Jewels L.L.C. · Supergems USA Inc. · Superjewels LLC · Jewels L.L.C. · Supergems (India) Private Limited · Sarto Electro Equipments Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6540000	Equity Shares	Rs.10/- each	Rs.65.400 Millions
12460000	Preference Shares	Rs.10/- each	Rs.124.600 Millions
	Total		Rs.190.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5308755	Equity Shares	Rs.10/- each	Rs.53.088 Millions
10296349	Preference Shares	Rs.10/- each	Rs.102.963 Millions
	Total		Rs.156.051 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		156.051	156.051	156.051
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(25.368)	(42.874)	(45.578)
NETWORTH		130.683	113.177	110.473
LOAN FUNDS
1] Secured Loans		45.554	8.016	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		45.554	8.016	0.000
DEFERRED TAX LIABILITIES		2.520	2.427	2.663
TOTAL		178.757	123.620	113.136
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.332	46.482	50.563
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.315	61.180	58.143
	Sundry Debtors	111.688	63.014	54.336
	Cash & Bank Balances	0.827	5.413	9.530
	Other Current Assets	5.112	0.000	0.000
	Loans & Advances	4.417	5.150	6.345
Total Current Assets		240.359	134.757	128.354
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	103.516	55.758	64.810
	Other Current Liabilities	1.441	1.153	0.646
	Provisions	1.108	0.998	0.937
Total Current Liabilities		106.065	57.909	66.393
Net Current Assets		134.294	76.848	61.961
MISCELLANEOUS EXPENSES		0.131	0.290	0.612
TOTAL		178.757	123.620	113.136

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		228.357	174.019
		Other Income		0.073	0.288
		TOTAL (A)	NA	228.430	174.307
Less	EXPENSES
		Materials cost		181.603	129.956
		Manufacturing and other expenses		20.941	21.603
		Exchange differences net		0.016	2.761
		Administrative expenses		18.089	19.255
		TOTAL (B)	NA	220.649	173.575
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	7.781	0.732
Less	FINANCIAL EXPENSES (D)		NA	0.818	2.315
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	6.963	(1.583)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	4.496	5.225
	PROFIT BEFORE TAX (E-F) (G)		NA	2.467	(6.808)
Less	TAX (I)		NA	(0.236)	0.317
	PROFIT AFTER TAX (G-I) (J)		17.493	2.703	(7.125)
	EXCESS/(SHORT) PROVISION OF TAX		0.000	0.000	0.001
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(42.874)	(45.577)	(38.453)
	BALANCE CARRIED TO THE B/S		(25.381)	(42.874)	(45.577)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	327.454	221.836	155.107
	TOTAL EARNINGS		327.454	221.836	155.107
	IMPORTS
		Raw Materials	25.703	0.483	5.182
		Consumables	0.446	0.536	0.705
		Finished Goods – Jewellery	1.083	2.625	2.293
		Capital Goods	1.436	0.000	0.000
	TOTAL IMPORTS		28.668	3.644	8.180
	Earnings Per Share (Rs.)		1.12	0.51	(1.82)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.18	(4.09)
Net Profit Margin (PBT/Sales)	(%)	NA	1.08	(3.91)
Return on Total Assets (PBT/Total Assets}	(%)	NA	1.36	(3.81)
Return on Investment (ROI) (PBT/Networth)		NA	0.02	0.06
Debt Equity Ratio (Total Liability/Networth)		1.16	0.58	0.60
Current Ratio (Current Asset/Current Liability)		2.27	2.33	1.93

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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 two 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	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	------
22]	Litigations that the firm / promoter involved in	------
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U36911MH1996PTC096061
Name of the company	Supergems Jewellery Manufacturing Private Limited
Address of the registered office or of the principal place of business in India of the company	Gala No 703 Building No II, Seepz # Sez, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India Email: mumbai.accounts@supergemsgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10194854
Type of charge	Movable property (not being pledge)
Particular of charge holder	Union Bank of India, Overseas Branch, Seepz ++,007 Block No. II, Jogeshwari-Vikhroli Link Road, Marol Indl Area, Andheri, Mumbai - 400096, Maharashtra, India Email: cbsseepz@unionbankofindia.com
Nature of instrument creating charge	Hypothecation (Goods) Agreement (SD-03)
Date of instrument Creating the charge	23.01.2012
Amount secured by the charge	Rs. 80.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate of 12.15% per annum with monthly rests or at such other revised rate/s as may be prescribed by the bank from time to time. Terms of Repayment On Demand Margin Margin : 25% Extent and Operation of the charge The bank has sanctioned an aggregate amount of Rs.80.000 Millions to the company as under :- Nature of Limit AMOUNT FBP / FDBP / FUDBP................................: Rs.80.000 Millions W/W a) Direct Bills / Bills on Associates……………… : (Rs.64.000 Millions) b) Packing Credit ......................: (Rs.60.000 Millions) c) Gold Loan ............................: (Rs.20.000 Millions) Total Limit ................................ : Rs.80.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of plant and machinery, other fixed assets and movable property both present and future belonging to the borrower which now or hereinafter from time to time during this security shall be Brought in or about the borrower's premises or godown/s at Unit No.703, Block No. II, Seepz++ Complex, Andheri East, Mumbai - 400096 or in the premises hired by the borrower and / or in transit.
Particulars of the present modification	The aggregate amount of Rs.40.000 Millions has enhanced to Rs.80.000 Millions and the said enhanced limit of Rs.80.000 Millions is collaterally secured against hypothecation of plant and machinery, other fixed assets and movable property of the company both present and future.

Fixed Assets:

• Office equipment
• Furniture and fixtures
• Computer system
• Air-conditioners
• Plant and machinery
• Vehicles
• Electric equipment and fittings

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 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.52.70
UK Pound	1	Rs.84.51
Euro	1	Rs.68.16

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.