MIRA INFORM REPORT

Report Date :

03.12.2013

IDENTIFICATION DETAILS

Name :	FINE JEWELLERY MANUFACTURING LIMITED
Registered Office :	Plot No. GJ/12, Seepz Sez ++ Complex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.10.2001
Com. Reg. No.:	11-133589
Capital Investment / Paid-up Capital :	Rs. 166.000 Millions
CIN No.: [Company Identification No.]	U36911MH2001PLC133589
IEC No.:	2702000053
TAN No.: [Tax Deduction & Collection Account No.]	MUMF028648
PAN No.: [Permanent Account No.]	AAALF5736D / AAACF5736D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamond Studded Gold, Platinum Jewellery etc.
No. of Employees :	400 (160 in Office, 240 in Factory) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating : BB-
Rating Explanation	Moderate risk of default
Date	November 2012

Rating Agency Name	ICRA
Rating	Short term rating : A4
Rating Explanation	Minimal degree of safety and carry very high credit risk.
Date	November 2012

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

Name :	Mr. Sohil Premkumar Kothari
Designation :	Director
Contact No.:	91-22-30804080

LOCATIONS

Registered Office/ Export Unit/ Factory :	Plot No. GJ/12, Seepz Sez ++ Complex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-30804080
Fax No.:	91-22-28292728/ 30804168
E-Mail :	finej@fine-jewellery.com shweta.d@fine-jewellery.com
Website :	http://www.fine-jewellery.com
Location :	Owned
Domestic Unit:	Fine Jewellery (India) Limited Plot No. 14, WICEL, Opposite Seepz, MIDC, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-30813939
Fax No.:	91-22-30813999
E-Mail :	info@fine-jewellery.com
United States :	FJIL, Inc 608, 5^th Avenue, Suite # 405 A, New York – 10020 Nirvana Inc. 4923, East, 71^st Street, Tulsa, Oklahoma 74136
Dubai :	Thangam Jewel LLC, 301, Gold Land Building, Dubai – UAE
Tel. No.:	97 1 42 258019
Fax No.:	97 1 42 260495
E-Mail :	uae@fine-jewellery.com

DIRECTORS

AS ON 10.06.2013

Name :

Mr. Premkumar Lalitkumar Kothari

Designation :

Managing director

Address :

131 - C Rambha, 66, Nepeansea Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

18.05.1951

Qualification :

B.Com

Experience :

35 Years

Date of Appointment :

08.10.2001

PAN No.:

AGQPK9078C

DIN No.:

00103026

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	U99999MH1987PLC043293	FINE JEWELLERY (INDIA) LIMITED	Director	29/04/1987	29/04/1987	-	Active	NO
2	U39912MH1979PLC020923	M SHASHIKANT EXPORTS LIMITED	Director	25/03/1989	25/03/1989	-	Active	NO
3	U36911MH2001PLC133589	FINE JEWELLERY MANUFACTURING LIMITED	Managing director	08/10/2001	08/10/2001	-	Active	NO
4	U36912MH1989GAP053844	SEEPZ GEMS AND JEWELLERY MANUFACTURERS ASSOCIATION	Additional director	26/09/2003	26/09/2003	-	Active	NO
5	U91990MH2005NPL154999	ALL INDIA GEMS AND JEWELLERY TRADE FEDERATION	Director	08/04/2009	22/07/2005	31/03/2013	Active	NO
6	U40109MH2010NPL203609	SEEPZ EXPORTERS ENERGY SAVING ASSOCIATION	Director	02/06/2010	02/06/2010	-	Active	NO
7	U36912MH2011PTC211948	FINE JEWELLERY GOLD PRIVATE LIMITED	Director	06/01/2011	06/01/2011	11/11/2011	Active	NO
8	U80904MH2012NPL233740	THE GEM AND JEWELLERY SKILL COUNCIL OF INDIA	Director	24/07/2012	24/07/2012	-	Active	NO

Name :

Mr. Sohil Premkumar Kothari

Designation :

Director

Address :

131 - C Rambha, 66, Nepeansea Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

11.12.1978

Qualification :

B.Com and G.I.A. Graduate

Experience :

15 Years

Date of Appointment :

01.09.2008

PAN No.:

AABPK2538C

DIN No.:

00102962

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	U39912MH1979PLC020923	M SHASHIKANT EXPORTS LIMITED	Director	19/08/2000	19/08/2000	-	Active	NO
2	U99999MH1987PLC043293	FINE JEWELLERY (INDIA) LIMITED	Managing director	01/09/2001	01/09/2001	-	Active	NO
3	U36911MH2001PLC133589	FINE JEWELLERY MANUFACTURING LIMITED	Director	01/09/2008	08/10/2001	-	Active	NO
4	U51909MH2002PTC137786	N JEWELLERY TECHNIQUES PRIVATE LIMITED	Director	06/11/2002	06/11/2002	14/12/2007	Active	NO
5	U93090MH2007PTC167858	THREE SIXTY DEGREES SOLUTIONS PRIVATE LIMITED	Director	29/11/2007	29/11/2007	-	Active	NO
6	U36912MH2011PTC211948	FINE JEWELLERY GOLD PRIVATE LIMITED	Director	06/01/2011	06/01/2011	-	Active	NO

Name :

Mr. Saurabh Surendrabhai Bhow

Designation :

Director

Address :

21, Sumadhur Co-operative Society Near Manek Bag Society, Ambawadi, Ahmedabad - 380015, Gujarat, India

Date of Birth/Age :

24.07.1956

Qualification :

B. Com

Experience :

30 Years

Date of Appointment :

01.09.2005

DIN No.:

01564598

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	Company/ LLP Status	Defaulting status
1	U99999MH1987PLC043293	FINE JEWELLERY (INDIA) LIMITED	Director	29/12/1997	29/12/1997	Active	NO
2	U36911MH2001PLC133589	FINE JEWELLERY MANUFACTURING LIMITED	Director	01/09/2005	01/09/2005	Active	NO

Name :

Mr. Viral Premkumar Kothari

Designation :

Director

Address :

131 - C Rambha, 66, Nepeansea Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

16.06.1983

Qualification :

B.Com, G.I.A. Graduate and a Supply Chain Management Graduate from Michigan University

Experience :

10 Years

Date of Appointment :

30.09.2008

PAN No.:

AHJPK4351M

DIN No.:

02380318

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	U36911MH2001PLC133589	FINE JEWELLERY MANUFACTURING LIMITED	Director	30/09/2008	01/09/2008	-	Active	NO
2	U39912MH1979PLC020923	M SHASHIKANT EXPORTS LIMITED	Director	30/09/2010	22/04/2010	-	Active	NO
3	U36912MH2011PTC211948	FINE JEWELLERY GOLD PRIVATE LIMITED	Managing director	10/11/2011	10/11/2011	26/06/2012	Active	NO

KEY EXECUTIVES

Name :	Ms. Shweta
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 10.06.2013

Names of Equity Shareholders	No. of Shares
Kothari Lalitkumar Premkumar	1236510
Kothari Premkumar Smita	448800
Kothari Premkumar Sohil	1012130
Kothari Sohil Dharini	20800
Kothari Premkumar Viral	994560
Bhow Surendra Nilesh	642400
M. Shashikant Exports Limited, India	3996800
N. B. Investment Limited, Mauritius	1248000
Total	9600000

Names of Preference Shareholders	No. of Shares
Kothari Lalitkumar Premkumar	440000
Kothari Premkumar Sohil	120000
Kothari Premkumar Viral	440000
Bhow Surendra Nilesh	6000000
Total	7000000

AS ON 10.06.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	19.69
Bodies corporate	41.63
Directors or relatives of directors	38.68
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diamond Studded Gold, Platinum Jewellery etc.

Products/ Services :

ITC Code No.	Product Descriptions
99889020	Jewellry Manufacturing

Exports :

Products :

Diamond Studded Gold, Platinum Jewellery and Cut and Polished Diamonds

Countries :

· UK

USA

Europe

Australia

Canada and Middle East

Trade References :

1. Signet Group Limited

Zenith House, The Hyde, London NW9 6EW, UK

2. Galaxy Jewellers Pty Limited/ Galaxy and Company

P.O. Box 3282, 382 Voortrekker Road, Southfield, Cape Town 8000, South Africa

3. The Genuine Gemstone Company Limited

Unit 2D Eagle Road, Moons Moat, Redditch, Worcesterhire B98 9 HF, UK

4. The Jewellery Group Pty Limited

L 14, 182 Victoria SQ, Adelaide SA 5000, Australia

Imports :

Products :

Casting Powder, Wax Alloy, Machinery Spares, Silver, Colour Stones, Diamonds etc.

Countries :

· Italy

UK

Japan

Germany

USA

Trade References :

1. Legor S.R.L.

Via San Benedetto, 14/34 Z.I. 36050 Bressanvido (Vi), Italy

2. Marcel Robbez Masson

Rue Du Gevaudan, BP 37, 48001, Mende Cedex, France

3. DSD Thai Gems Company Limited

Jewelry Trade Centre, 23^rd Floor, Room No. 919/300-301, North Tower, Silom Road, Bangrak, Bangkok 10500 Thailand

4. Anaya Gems Inc.

31-00 47^th Avenue, 5^th Floor, Long Island City, New York, USA 11101, US

5. Kriss SRL

Via ciell Economia, 22 36100, Vicenza, Italy

Terms :

Selling :

Cash and Credit [30-90 Days]

Purchasing :

Cash and Credit [30-90 Days]

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed and Installed Capacity	Actual Production
Diamond Studded Gold, Platinum Jewellery	Kgs	928.27	239732.173 Gms 55.07 Kgs

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

400 (160 in Office, 240 in Factory) (Approximately)

Bankers :

¯ State Bank of India, Offshore Banking Unit, New Banking Building, Seepz, Andheri (East), Mumbai - 400096, Maharashtra, India

¯ Punjab National Bank, Offshore Banking Unit, Seepz, Andheri (East), Mumbai - 400096, Maharashtra, India

¯ Union Bank of India, Overseas Branch, Seepz Building No.2, Gala No. 007, Seepz+ Complex, M.I.A. Jogeshwari-Vakola Link Road, Mumbai – 400093, Maharashtra, India

Facilities :

· Fund Based : Rs. 282.000 Millions, SLOC : Rs. 35.000 Millions and Forward Contract : Rs. 8.000 Millions [From State Bank of India]

· Fund Based : Rs. 169.000 Millions, Non-Fund Based : Rs. 30.000 Millions [From Union Bank of India]

· Fund Based : Rs. 47.000 Millions, Non-Fund Based : Rs. 70.000 Millions [From Punjab National Bank]

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Foreign currency term loans from banks	0.000	0.008
Other loans and advances	0.793	1.404
SHORT TERM BORROWINGS
Rupee term loans from banks	499.606	537.101
Total	500.399	538.513

Banking Relations :	--
Auditors :
Name :	Kantilal Parekh and Company Chartered Accountants
Address :	606, Om Chambers, 123 August, Kranti Marg, Kemps Corner, Grant Road, Mumbai, Maharashtra, India
Tel No.:	91-22-23677489/ 90
Fax No.:	91-22-23631828
Email :	kantilallparikh@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AAXPP0620J
Associate :	· FJIL Inc · Fine Jewellery (India) Limited [U99999MH1987PLC043293] Address: Plot No. 14, WICEL Compound, MIDC Central Road, Andheri (East), Mumbai – 400093, Maharashtra, India Line of Business: Manufacturer and Exporter of Diamond Studded Gold, Platinum Jewellery · Shashikant Exports Limited [U39912MH1979PLC020923] Address: 301-B, Aman Chambers, Mama Parmanand Marg, Mumbai – 400004, Maharashtra, India Line of Business: Trading of Diamond Studded Jewellery and Cut and Polished Diamonds
Subsidiary company :	Fine Euro

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13,000,000	Equity Shares	Rs. 10/- each	Rs. 130.000 Millions
7,000,000	Preference Shares	Rs. 10/- each	Rs. 70.000 Millions
	Total		Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,600,000	Equity Shares	Rs. 10/- each	Rs. 96.000 Millions
7,000,000	Preference Shares	Rs. 10/- each	Rs. 70.000 Millions
	Total		Rs. 166.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	166.000	166.000
(b) Reserves & Surplus	224.017	192.140
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	390.017	358.140
(3) Non-Current Liabilities
(a) long-term borrowings	0.793	1.412
(b) Deferred tax liabilities (Net)	1.742	1.419
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	9.332	8.932
Total Non-current Liabilities (3)	11.867	11.763
(4) Current Liabilities
(a) Short term borrowings	499.781	561.896
(b) Trade payables	303.342	284.852
(c) Other current liabilities	27.342	25.023
(d) Short-term provisions	22.680	19.304
Total Current Liabilities (4)	853.145	891.075
TOTAL	1255.029	1260.978
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	125.896	133.816
(ii) Intangible Assets	12.986	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	30.000	43.000
(b) Non-current Investments	0.000	0.766
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	18.446	20.018
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	187.328	197.600
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	530.559	500.648
(c) Trade receivables	503.713	530.235
(d) Cash and cash equivalents	16.869	13.570
(e) Short-term loans and advances	16.560	18.925
(f) Other current assets	0.000	0.000
Total Current Assets	1067.701	1063.378
TOTAL	1255.029	1260.978

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		166.000
2] Share Application Money		0.000
3] Reserves & Surplus		159.569
4] (Accumulated Losses)		0.000
NETWORTH		325.569
LOAN FUNDS
1] Secured Loans		528.063
2] Unsecured Loans		0.772
TOTAL BORROWING		528.835
DEFERRED TAX LIABILITIES		1.530
TOTAL		855.934
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		143.192
Capital work-in-progress		43.000
INVESTMENT		0.766
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	623.570
	Sundry Debtors	487.550
	Cash & Bank Balances	16.463
	Other Current Assets	0.000
	Loans & Advances	27.743
Total Current Assets		1155.326
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	414.908
	Other Current Liabilities	46.452
	Provisions	24.990
Total Current Liabilities		486.350
Net Current Assets		668.976
MISCELLANEOUS EXPENSES		0.000
TOTAL		855.934

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	1454.486	1522.967	1381.057
		Other Income	4.367	15.072	15.178
		TOTAL (A)	1458.853	1538.039	1396.235
Less	EXPENSES
		Cost of materials consumed	1075.933	1214.579	1121.689
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	29.419	(14.542)	(47.488)
		Employee benefit expense	118.027	122.374	145.982
		Other expenses	103.782	91.087	73.460
		TOTAL (B)	1327.161	1413.498	1293.643
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		131.692	124.541	102.592
Less	FINANCIAL EXPENSES (D)		75.290	65.839	48.165
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		56.402	58.702	54.427
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.305	19.670	22.597
	PROFIT BEFORE TAX (E-F) (G)		38.097	39.032	31.830
Less	TAX (H)		6.221	6.460	7.606
	PROFIT AFTER TAX (G-H) (I)		31.876	32.572	24.224
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1448.957	1510.359	1376.871
	IMPORTS
		Raw Materials	465.203	464.462	522.986
		Stores & Spares	0.000	7.636	10.134
		Capital Goods	4.259	620.609	0.055
		Deemed Imports	0.000	0.000	183.117
	TOTAL IMPORTS		469.462	1092.707	716.292
	Earnings Per Share (Rs.)		1.92	1.96	1.46

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.19	2.12	1.73
Net Profit Margin (PBT/Sales)	(%)	2.62	2.56	2.30
Return on Total Assets (PBT/Total Assets}	(%)	3.11	3.21	2.45
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.10
Debt Equity Ratio (Total Debt/Networth)		1.28	1.57	1.62
Current Ratio (Current Asset/Current Liability)		1.25	1.19	2.38

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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10325104	19/12/2011	35,000,000.00	STATE BANK OF INDIA	SEEPZ BRANCH, ANDHERI (EAST), MUMBAI - 400096, MAHARASHTRA, INDIA	B28543262
2	10087320	07/03/2008 *	43,000,000.00	STATE BANK OF INDIA	OFFSHORE BANKING UNIT, NEW BANKING BUILDING, SEEPZ, ANDHERI (EAST), MUMBAI - 400096, MAHARASHTRA, INDIA	A35028968
3	80013741	07/03/2008 *	110,000,000.00	STATE BANK OF INDIA	OFFSHORE BANKING UNIT, NEW BANKING BUILDING, SEEPZ, ANDHERI (EAST), MUMBAI - 400096, MAHARASHTRA, INDIA	A36298198
4	10021493	11/04/2012 *	641,000,000.00	STATE BANK OF INDIA (AS A LEAD BANK FOR CONSORTIUM )	SEEPZ BRNACH, ANDHERI (EAST), MUMBAI - 400096, MAHARASHTRA, INDIA	B37606340
5	80010893	04/09/2006 *	110,000,000.00	STATE BANK OF INDIA	OFFSHORE BANKING UNIT, NEW BANKING BUILDING, SEEPZ, ANDHERI (EAST), MUMBAI - 400096, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Other loans and advances	0.175	24.795
Total	0.175	24.795

OPERATIONS

During the year the company achieved a turnover of Rs. 1458.853 Millions and made Net Profit of Rs. 31.876 Millions.

ABOUT THE COMPANY

Subject is a part of Fine Group of Companies - established in 1987 is one of the first six factories to set up a jewellery unit in Seepz, Mumbai. FJML is accredited with Star Exporter Award by the Central Government and is a proud recipient of 'The Best Employer Award in Seepz' for the last three consecutive years.

BUSINESS OPERATIONS

FJML is one of the leading manufacturers and exporters of diamond studded gold and platinum jewellery. The company owns two patented diamond setting techniques namely, Mystere and Mystique. There are more than 26 patents in this concept. FJML offers diamond studded gold jewellery, diamond studded platinum jewellery, precious metals ranging from 5 kt upto 18 kt gold in yellow, white, green and pink gold platinum 900/950, diamond weighs from less than 10 ct points upto 1 carat and above to cater to a wide range of customer needs.

FJML generates almost 100% of its total income from exports. The exports generated from its SEZ based in Mumbai, Maharashtra stood at around Rs. 1510.400 Millions during FY12, registering a y-o-y growth of 9.7%. FJML has presence in almost 25 countries globally tapping regions such as the US, UK, Australia and ME. The share of top five regions stood at around 88% of the total exports, with UK being the leading market accounting for 36% share, followed by the US at 21% in FY12.

MANUFACTURING / DISTRIBUTION FACILITIES

The company operates through three factories, two located in SEEPZ, Mumbai and a third in MIDC, Mumbai in Maharashtra with total employee strength of 800 people. Out of which, 600 employees are dedicated to export operations. The state-of-the-art manufacturing facilities are spread out over 66,000 sq. ft. with an installed capacity to produce 750000 pieces per annum. FJML's strong distribution network is spread across New York, Antwerp, Dubai, Hong Kong and Mumbai.

Being a company driven by, dedicated and committed to quality, it has developed an in-house training programme for its artisans The programme trains 100 artisans every year to produce products tc highest quality standards.

CSR INITIATIVES

· Providing loans to employees for their children's studies and for any medical emergencies arising in the family.

Awarding (one time) scholarship to the employees children who have scored distinction.

Providing monetary help to employee's family in case of his / her death

TRADE REFERENCES:

1. Mr. Satish Doshi

Elegant Collections

Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India

Tel No.: 91-22-66400909

2. Mr. Rajeev Pandya

Shankar Jewels

Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India

Tel No.: 91-22-40398888

3. Mr. Sanjay Kothari

Gem and Jewellery Council

Bandra Kurla Complex, Mumbai, Maharashtra, India

Tel No.: 91-22-26524791

FIXED ASSETS:

¯ Land

¯ Buildings

¯ Factory building

¯ Plant and equipment

¯ Furniture and fixtures

¯ Vehicles

¯ Office equipment

¯ Computer software

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. 62.23
UK Pound	1	Rs. 102.14
Euro	1	Rs. 84.64

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.