MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	MANIRATNAM GEMS PRIVATE LIMITED
Registered Office :	Chhajer Sadan, Near Chaman Singh Lodha School, Outside Nehru Gate, Beawar - 305901, Rajasthan
Country :	India
Financials (as on) :	31.03.2012 (Summarized)
Date of Incorporation :	04.11.2008
Com. Reg. No.:	17-027680
Capital Investment/ Paid-up Capital:	Rs.0.100 Million
CIN No.: [Company Identification No.]	U36911RJ2008PTC027680
IEC No.:	0308079086
TAN No.: [Tax Deduction & Collection Account No.]	JDHM08708A
PAN No.: [Permanent Account No.]	AAFCM7852C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Diamonds and Jewellery
No. of Employees:	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management has failed to file its financials with the government department for the year 2012. Mr. Mukesh Agarwal, Auditor has provided us all information but the financials are not verified. As per previous year’s record, the financial strength appeared to be moderate. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Mukesh Agarwal
Designation :	Auditor
Contact No.:	91-9413934410
Date :	13.04.2013

LOCATIONS

Registered Office :	Chhajer Sadan, Near Chaman Singh Lodha School, Outside Nehru Gate, Beawar - 305901, Rajasthan, India
Tel. No.:	Not Available
Mobile No.:	91-9413934410 (Mr. Mukesh Agarwal)
Fax No.:	Not Available
E-Mail :	muneshchhajer@yahoo.co.in
Factory:	78-B, Ratnadeep Building, Off. No. 8, JSS Road, Opposite Aryan High School, Mumbai, Maharashtra, India
Branch Office:	Papadwala Building, Off No. 202, 2^nd Floor, Bhojabhaini Sheri, Surat - 395003, India

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Mahendra Chhajer
Designation :	Director
Address :	Chhajer Sadan, Near, Chaman Singh Lodha School Beawar 305901, Rajasthan, India
Date of Birth/Age :	26.07.1971
Date of Appointment :	04.11.2008
Din No.:	02328632
Name :	Mr. Manoj Chopra
Designation :	Director
Address :	Chopra Bhavan Near Chaman Singh Lodha School Beawar 305901, Rajasthan, India
Date of Birth/Age :	10.09.1967
Date of Appointment :	04.11.2008
Din No.:	02367380

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mr. Mahendra Chhajer	5000
Mr. Manoj Chopra	5000
Total	10000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Exporter and Importer of Diamonds and Jewellery

Products :

ITC NUMBER OF PRODUCT	DESCRIPTION OF PRODUCT OR SERVICES
710239	Diamonds and Jewellery

Exports :

Products :

Finished Goods

Countries :

Hong Kong

Imports :

Products :

Raw Materials

Countries :

· Hong Kong

· Belgium

· Israel

· New York

GENERAL INFORMATION

No. of Employees :

25 (Approximately)

Bankers :

Indusind Bank, Opera House, Mumbai, Maharashtra, India

Tel No.: 91-22-43457300

Facilities :

Unsecured Loans	As on 31.03.2012 Rs. in millions	As on 31.03.2011 Rs. in millions
Loans directors unsecured	NA	0.011
Total	NA	0.011

Banking Relations :	--
Auditors :
Name :	Mukesh Agarwal Chartered Accountant
Address :	Shivam, Near Mahadeao Chattri, Beawar – 305901, Rajasthan, India
Tel No.;	91-1462-258410
Email:	camukesh_agarwal@yahoo.in
Pan No.:	AAIFM6783G

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

SUMMARIZED FIGURE

Particular	31.03.2012
SHAREHOLDERS FUNDS
Share Capital	0.100
Reserves & Surplus	3.636
Deferred Tax Liabilities	0.002
Current Liabilities	2944.427
Provisions	0.634
APPLICATION OF FUNDS
Fixed Assets [Net Block]	0.008
Inventories	200.734
Sundry Debtors	2152.545
Cash & Bank Balances	11.558
Other Current Assets	0.003

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2.318	0.684
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2.418	0.784
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.011	0.022
TOTAL BORROWING		0.011	0.022
DEFERRED TAX LIABILITIES		0.002	0.002
TOTAL		2.431	0.808
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.010	0.016
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	151.875	63.404
	Sundry Debtors	1514.052	1211.729
	Cash & Bank Balances	4.524	18.354
	Other Current Assets	0.000	0.000
	Loans & Advances	116.726	0.131
Total Current Assets		1787.177	1293.618
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1783.114	1292.046
	Other Current Liabilities	0.891	0.517
	Provisions	0.756	0.270
Total Current Liabilities		1784.761	1292.833
Net Current Assets		2.416	0.785
MISCELLANEOUS EXPENSES		0.005	0.007
TOTAL		2.431	0.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4461.337	4343.232	3071.480
		Other Income	6.387	3.049
		TOTAL (A)	4467.724	4346.281	3071.480
Less	EXPENSES
		Office Expenses	4465.747	4344.629	0.009
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4465.747	4344.629	0.009
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.977	1.652	NA
Less	FINANCIAL EXPENSES (D)		0.015	0.000	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.962	1.652	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.004	0.006	NA
	PROFIT BEFORE TAX (E-F) (G)		1.958	1.646	0.822
Less	TAX (H)		0.640	0.012	0.253
	PROFIT AFTER TAX (G-H) (I)		1.318	1.634	0.569
	IMPORTS
		Raw Materials	4482.809	4488.137	NA
	TOTAL IMPORTS		4482.809	4488.137	NA
	Earnings Per Share (Rs.)		131.80	163.40	57.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.03	0.04	0.02
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.09	0.06
Return on Investment (ROI) (PBT/Networth)		NA	0.68	1.05
Debt Equity Ratio (Total Debt/Networth)		NA	0.01	0.03
Current Ratio (Current Asset/Current Liability)		NA	1.00	1.00

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	Yes
10]	Designation of contact person	Yes
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	No
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

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 60.000 Millions 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 20.000 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.

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 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. 54.44
UK Pound	1	Rs. 83.78
Euro	1	Rs. 71.33

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI		NO
--EPF		NO
TOTAL		27

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.