MIRA INFORM REPORT

Report Date :

18.12.2013

IDENTIFICATION DETAILS

Name :	JAGDISH JEWELLERS PRIVATE LIMITED
Registered Office :	Adalat Bazar, Patiala – 147 001, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.02.2006
Com. Reg. No.:	16-029673
Capital Investment / Paid-up Capital :	Rs.0.416 million
CIN No.: [Company Identification No.]	U45202PB2006PTC029673
Legal Form :	Private Limited Liability Company
Line of Business :	Retailer of Gold and Kundan Jewellery.
No. of Employees :	40 (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

Maximum Credit Limit :	USD 384000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management failed to file its financials for the year 2013 with the Government Department. Whereas profit and loss statement for the year 2012 is also not available with us. As per balance sheet statement for the year 2012 the company seems to be normal for business dealings. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with great 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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. Manoj Singla
Designation :	Director
Contact No.:	91-9815016584
Date :	02.12.2013

LOCATIONS

Registered Office :	Adalat Bazar, Patiala – 147 001, Punjab, India
Tel. No.:	91-175-2216584 / 5003960 / 2215670
Mobile No.:	91-9815016584 (Mr. Manoj Singla)
Fax No.:	91-175-5003960
E-Mail :	jagdishjewellers@rediffmail.com bansalca@sify.com
Area :	3000 sq. ft.
Location :	Owned
Retail Showroom :	SCO-2441/42, Sector 22C, Chandigarh – 160 022, India

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Susham Jagdish Chand Singla

Designation :

Managing Director

Address :

1, Head Post Office Road, Patiala – 147 001, Punjab, India

Date of Birth/Age :

09.09.1963

Qualification :

Diploma in Export-Import

Date of Appointment :

10.02.2006

DIN No.:

01190653

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	U45202PB2006PTC029673	JAGDISH JEWELLERS PRIVATE LIMITED	Managing director	10/02/2006	10/02/2006	-	Active	NO
2	U70100PB2006PTC029709	JAGIDISH LAND AND PROJECTS PRIVATE LIMITED	Director	15/02/2006	15/02/2006	-	Active	NO

Name :

Mr. Manoj Jagdish Chand Singla

Designation :

Director

Address :

1, Head Post Office Road, Patiala – 147 001, Punjab, India

Date of Birth/Age :

17.10.1964

Qualification :

Under Graduate

Date of Appointment :

10.02.2006

DIN No.:

01198564

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	U45202PB2006PTC029673	JAGDISH JEWELLERS PRIVATE LIMITED	Director	10/02/2006	10/02/2006	-	Active	NO
2	U70100PB2006PTC029709	JAGIDISH LAND AND PROJECTS PRIVATE LIMITED	Managing director	15/02/2006	15/02/2006	-	Active	NO
3	U65921PB2013PTC038080	JK FINANCE PRIVATE LIMITED	Director	07/11/2013	07/11/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Susham Jagdish Chand Singla	20000
Manoj Jagdish Chand Singla	20000
Axiom Teximpex Private Limited, India	1600
Total	41600

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	96.15
Others	3.85
Total	100.00

BUSINESS DETAILS

Line of Business :	Retailer of Gold and Kundan Jewellery.
Terms :
Selling :	Cash and Credit (30/ 60 days)
Purchasing :	Cash and Credit (30/ 60 days)

GENERAL INFORMATION

Suppliers :	· Prem Jewellers, Patiala
Customers :	Retailers and End Users · Jewelex India
No. of Employees :	40 (Approximately)
Bankers :	· The Karur Vysya Bank Limited, SCO 8-9, Leela Bhawan Market, Opposite DC Residence, Patiala – 147 001, Punjab, India · ICICI Bank Limited · HDFC Bank Limited · State Bank of Patiala · Oriental Bank of Commerce · Axis Bank Limited · India Bank, Patiala, Punjab, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Sanjeev M. Bansal and Associates Chartered Accountants
Address :	SCO 27-A, First Floor, Budha Dal Complex, Patiala – 147 001, Punjab, India
PAN No.:	ABFFS4550H
Associates/Subsidiaries :	Jagdish Land and Projects Private Limited, Rajbahar Road Line of business: Real Estate V.K. Gupta and Associates, Adalat Bazar Road Line of business: Central AC Market

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41600	Equity Shares	Rs.10/- each	Rs.0.416 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		0.416
2] Share Application Money		0.000
3] Reserves & Surplus		95.509
4] (Accumulated Losses)		0.000
NETWORTH		95.925
LOAN FUNDS
1] Secured Loans		24.938
2] Unsecured Loans		88.263
TOTAL BORROWING		113.201
DEFERRED TAX LIABILITIES		0.000
TOTAL		209.126
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.972
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.617
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	197.806
	Sundry Debtors	0.779
	Cash & Bank Balances	3.827
	Other Current Assets	1.058
	Loans & Advances	24.291
Total Current Assets		227.761
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.420
	Other Current Liabilities	2.250
	Provisions	13.554
Total Current Liabilities		25.224
Net Current Assets		202.537
MISCELLANEOUS EXPENSES		0.000
TOTAL		209.126

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.400	0.400	0.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		46.693	30.890	13.049
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		47.093	31.290	13.449
LOAN FUNDS
1] Secured Loans		18.491	12.717	23.362
2] Unsecured Loans		81.866	74.510	61.424
TOTAL BORROWING		100.357	87.227	84.786
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		147.450	118.517	98.235
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.641	5.693	7.007
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	1.358
DEFERRED TAX ASSETS		0.570	0.430	0.216
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	152.940	124.766	86.778
	Sundry Debtors	0.540	2.001	7.024
	Cash & Bank Balances	1.849	1.797	4.377
	Other Current Assets	1.358	1.358	0.000
	Loans & Advances	14.418	11.315	9.273
Total Current Assets		171.105	141.237	107.452
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.038	14.334	10.518
	Other Current Liabilities	0.747	2.076	1.535
	Provisions	10.085	12.440	5.764
Total Current Liabilities		28.870	28.850	17.817
Net Current Assets		142.235	112.387	89.635
MISCELLANEOUS EXPENSES		0.004	0.007	0.019
TOTAL		147.450	118.517	98.235

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
NET PROFIT/ (LOSS)	15.804	17.840	6.627

KEY RATIOS

PARTICULARS	31.03.2012
Debt Equity Ratio (Total Debt/Networth)	1.18
Current Ratio (Current Asset/Current Liability)	9.03

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Debt Equity Ratio (Total Debt/Networth)	2.13	2.79	6.30
Current Ratio (Current Asset/Current Liability)	5.93	4.90	6.03

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	No
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	Yes
18) Major customers	Yes
19) Payments terms	Yes
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	No
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.

- 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 and 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	10276428	28/12/2011 *	150,000,000.00	THE KARUR VYSYA BANK LIMITED	SCO 8-9, LEELA BHAWAN MARKET, OPPOSITE DC RESIDENCE, PATIALA, PUNJAB - 147001, INDIA	B31812589
2	10251851	15/10/2010	2,500,000.00	STATE BANK OF PATIALA	CHOWK FORT, PATIALA, Punjab - 147001, INDIA	B00066332
3	10173061	10/07/2009	23,000,000.00	STATE BANK OF PATIALA	CHOWK FORT, PATIALA, PATIALA, PUNJAB - 147001, INDIA	A68705300

* Date of charge modification

FIXED ASSETS:

· Safe

· Air Conditioner

· Fax Machine

· Weighing Scale

· Machine

· Generator

· Scooter

· Stablizers

· Cycle

· Other Assets

· Shutter Siren

· Photostate Machine

· Water Filter

· Camera

· Exaust/Ceiling Fan

· Printer

· Mobile Phone

· Water Pump

· Vaccum Cleaner

· TVS Victor

· Invertor

· Note Counting Machine

· Machinery

· Honda City V Tech

· Scorpio

· Cars

· Computer

· Electric Fittings

· Furniture and Fitting

· Building

· Security Camera System

· Heating System

· Music System

· Water Dispenser

· Car Optra

· Car Tata Safari

· Paper Shedder

· DVD Player

· Sony TV

· Freze

· LCD

· Telephone

· Television

· Earning Gun Machine

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.61.96
UK Pound	1	Rs.101.14
Euro	1	Rs.85.33

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	SMN

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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	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.