MIRA INFORM REPORT

Report Date :

21.12.2013

IDENTIFICATION DETAILS

Name :	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED
Registered Office :	35, 1^st Floor,Commercial Street, Bangalore – 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.12.1979
Com. Reg. No.:	08-003692
Capital Investment / Paid-up Capital :	Rs. 48.640 Millions
CIN No.: [Company Identification No.]	U27205KA1979PTC003692
PAN No.: [Permanent Account No.]	AAACC7207Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Gold, Diamond, Silver jewelry and articles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Management of the company failed to file its latest financial of 2013 with government department. As per of 2012, financial position of company appears to be good. Trade relation reported to be fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealing at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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.

]

LOCATIONS

Registered Office :	35, 1^st Floor,Commercial Street, Bangalore – 560001, Karnataka, India
Tel. No. :	91-80-40001869
Fax No. :	91-80-25589604
E-Mail :	myjeweller@ckcsons.com
Website :	www.ckcsons.com
Corporate Office :	The Touchstone, III Floor, No.2 & 2/1 Main Guard Cross Road, Bangalore - 560001, Karnataka, India
Tel. No. :	91-80-40001869/ 25588731
Fax No. :	91-80-25589604
E-Mail :	myjeweller@ckcsons.com

DIRECTORS

As on 26.09.2012

Name :

Mr. Hayagriv Cotha Venkatachalapathichetty

Designation :

Whole-time director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

26.03.1938

Date of Appointment :

24.12.1979

PAN No.:

AABPH7209R

DIN No. :

00202585

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Whole-time director	24/12/1979	24/12/1979	Active	NO
2	U85110KA1991PTC011807	C. KRISHNIAH CHETTY JEWELLERS PRIVATE LIMITED	Managing director	27/03/1991	27/03/1991	Active	NO
3	U51398KA1993PTC013997	SIGMA GOLD PRIVATE LIMITED	Whole-time director	10/02/1993	10/02/1993	Converted to LLP and dissolved	NO
4	AAA-4107	SIGMA GOLD LLP	Designated Partner	15/03/2011	15/03/2011	Active	NO

Name :

Mr. Vinod Cotha Hayagriv

Designation :

Managing director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

21.01.1960

Date of Appointment :

24.12.1979

PAN No. :

AAGPH7671A

DIN No. :

00202614

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Managing director	24/12/1979	24/12/1979	-	Active	NO
2	U85110KA1991PTC011807	C. KRISHNIAH CHETTY JEWELLERS PRIVATE LIMITED	Director	27/07/2010	27/03/1991	-	Active	NO
3	U51398KA1993PTC013997	SIGMA GOLD PRIVATE LIMITED	Whole-time director	10/02/1993	10/02/1993	-	Converted to LLP and dissolved	NO
4	U93090KA2001NPL028969	YPO BANGALORE CHAPTER	Director	02/05/2001	02/05/2001	20/09/2009	Active	NO
5	U91990MH2005NPL154999	ALL INDIA GEMS AND JEWELLERY TRADE FEDERATION	Director	20/12/2007	20/12/2007	-	Active	NO
6	U74990MH2008NPL188773	GJF EVENTS AND PROMOTIONS FEDERATION	Director	12/04/2009	12/04/2009	01/04/2011	Active	NO
7	U14215KA2010PTC052829	C. KRISHNIAH CHETTY AND SONS MANUFACTURERS PRIVATE LIMITED	Director	27/07/2010	11/03/2010	-	Active	NO
8	U80904MH2012NPL233740	THE GEM AND JEWELLERY SKILL COUNCIL OF INDIA	Director	24/07/2012	24/07/2012	-	Active	NO
9	AAA-4107	SIGMA GOLD LLP	Designated Partner	15/03/2011	15/03/2011	-	Active	NO

Name :

Mr. Ganesh Narayan Cotha

Designation :

Joint Managing director

Address :

06.09.1978

Date of Birth/Age :

"Krishna Prasad "#14/A 1st Main, 1st Block Koramangala, Bangalore - 560034, Karnataka, India

Date of Appointment :

27.07.2010

PAN No. :

AANPG1449C

DIN No. :

00202638

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Managing director	27/07/2010	31/01/1997	Active	NO
2	U03691KA1982PTC004687	DEEPALI CO PRIVATE LIMITED	Managing director	20/09/2010	19/12/1998	Active	NO
3	U85110KA1991PTC011807	C. KRISHNIAH CHETTY JEWELLERS PRIVATE LIMITED	Director	27/07/2010	11/12/1999	Active	NO
4	U14215KA2010PTC052829	C. KRISHNIAH CHETTY AND SONS MANUFACTURERS PRIVATE LIMITED	Director	27/07/2010	11/03/2010	Active	NO
5	U45204KA2012PTC067222	PINEWOOD INFRASTRUCTURE PRIVATE LIMITED	Director	12/12/2012	12/12/2012	Active	NO

Name :

Vishala Cotha Hayagriv

Designation :

Director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

28.10.1941

Date of Appointment :

01.09.1993

PAN No. :

AAFPH8883H

DIN No. :

00202663

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	U51398KA1993PTC013997	SIGMA GOLD PRIVATE LIMITED	Director	10/02/1993	10/02/1993	Converted to LLP and dissolved	NO
2	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Director	01/09/1993	01/09/1993	Active	NO

Name :

Valli Cotha Narayan

Designation :

Director

Address :

"Krishna Prasad "#14/A 1st Main, 1st Block Koramangala, Bangalore - 560034, Karnataka, India

Date of Birth/Age :

10.12.1945

Date of Appointment :

01.09.1993

PAN No. :

AASPV4492K

DIN No. :

00202728

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	U03691KA1982PTC004687	DEEPALI CO PRIVATE LIMITED	Director	20/03/1982	20/03/1982	Active	NO
2	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Director	01/09/1993	01/09/1993	Active	NO
3	U14215KA2010PTC052829	C. KRISHNIAH CHETTY & SONS MANUFACTURERS PRIVATE LIMITED	Director	11/03/2010	11/03/2010	Active	NO

Name :

Triveni Cotha Vinod

Designation :

Director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

27.01.1965

Date of Appointment :

01.09.1993

PAN No. :

AAQPT3658R

DIN No. :

00202702

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Director	01/09/1993	01/09/1993	Active	NO
2	U51398KA1993PTC013997	SIGMA GOLD PRIVATE LIMITED	Director	26/11/1994	26/11/1994	Converted to LLP and dissolved	NO
3	U14215KA2010PTC052829	C. KRISHNIAH CHETTY & SONS MANUFACTURERS PRIVATE LIMITED	Director	11/03/2010	11/03/2010	Active	NO

Name :

Chaitanya Cotha Vinod

Designation :

Director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

24.03.1987

Date of Appointment :

25.03.2005

PAN No. :

AFRPC1277M

DIN No. :

00202759

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Director	25/03/2005	25/03/2005	Active	NO
2	U14215KA2010PTC052829	C. KRISHNIAH CHETTY and SONS MANUFACTURERS PRIVATE LIMITED	Director	11/03/2010	11/03/2010	Active	NO
3	U85110KA1991PTC011807	C. KRISHNIAH CHETTY JEWELLERS PRIVATE LIMITED	Director	27/07/2010	27/07/2010	Active	NO
4	U36991KA2013PTC071297	Red Jasper Retail Private Limited	Director	07/10/2013	07/10/2013	Active	NO
5	U72200KA2011PTC061202	PURPLETAB SOFTWARE SOLUTIONS PRIVATE LIMITED	Additional director	21/10/2013	21/10/2013	Active	NO

Name :

Shreyas Cotha Vinod

Designation :

Whole-time director

Address :

1/34 ,W.H. Hanumanthappa Layout, Ulsoor Road , Bangalore - 560042, Karnataka, India

Date of Birth/Age :

30.03.1989

Date of Appointment :

03.02.2012

PAN No. :

AHQPC8897C

DIN No. :

01489729

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	U27205KA1979PTC003692	C KRISHNIAH CHETTY AND SONS PRIVATE LIMITED	Whole-time director	03/02/2012	01/04/2007	Active	NO
2	U85110KA1991PTC011807	C. KRISHNIAH CHETTY JEWELLERS PRIVATE LIMITED	Director	27/07/2010	27/07/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2012

Names of Shareholders	No. of Shares
Cotha Vinod Hayagriv	3520
Cotha Ganesh Narayan	10800
Cotha Valli Narayan	4000
Cotha Triveni Vinod	2240
Cotha Vinod Hayagriv HUF	480
C.V. Hayagriv and Visala Hayagriv	2000
C. Visala Hayagriv	5120
C.V. Hayagriv – Minor HUF	3520
C.V. Hayagriv – Major HUF	3040
Chaitanya Vinod Cotha	2190
Shreyas Vinod Cotha	2190
C. Vinod Hayagriv and C. Triveni Vinod	20
C. Valli Narayan and C. Ganesh Narayan	5760
C. Ganesh Narayan - HUF	3760
Total	48640

As on 26.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Gold, Diamond, Silver jewelry and articles.

Products :

Item Code No. (ITC Code)	Product Description
71011000	Jewellery

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Bangalore Contonment Branch, No. 143 Commercial Street, Bangalore - 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from banks (Term loan from a bank is secured against first charge onassets of the Company excluding vehicles purchased outof loans from banks and companies)	143.593	174.884
Rupee term loans from others (Loans from related parties are secured against thesecond floating charge against the fixed assets, inventories and other assets of the Company.)	99.800	120.150
Intercorporate borrowings (Term loans from Companies are secured against Motorcars)	1.053	6.508
SHORT TERM BORROWINGS
Loans repayable on demand from banks	535.089	537.185
Total	779.535	838.727

Banking Relations :	--
Auditors :
Name :	B K Ramadhyani and Company Chartered Accountants
Address :	4B, Chitrapur Bhavan, 8^th Main, 15^th Cross, Malleswaram, Bangalore – 560055, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AABFB1153G
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· C Krishniah Chetty and Sons Manufacturers Private Limited C Krishniah Chetty Jewelers Private L imi t e d ("CKCJPL") C Krishniah Chetty and Sons ("CKCS") Deepali Company Private Limited Sigma Gold LLP C Krishnaiah Chetty Foundation ("CKCF")

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs.1000/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
48,640	Equity Shares	Rs.1000/- each	Rs. 48.640 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	48.640	4.864
(b) Reserves & Surplus	551.873	482.971
(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)	600.513	487.835
(3) Non-Current Liabilities
(a) long-term borrowings	244.446	301.542
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	12.954	0.000
Total Non-current Liabilities (3)	257.400	301.542
(4) Current Liabilities
(a) Short term borrowings	535.089	537.185
(b) Trade payables	288.660	233.960
(c) Other current liabilities	424.412	244.265
(d) Short-term provisions	48.732	8.900
Total Current Liabilities (4)	1296.893	1024.310
TOTAL	2154.806	1813.687
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	190.732	229.054
(ii) Intangible Assets	13.577	22.908
(iii) Capital work-in-progress	0.000	0.600
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.001	0.001
(c) Deferred tax assets (net)	17.625	3.886
(d) Long-term Loan and Advances	53.722	30.269
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	275.657	286.718
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1803.455	1413.626
(c) Trade receivables	8.031	42.011
(d) Cash and cash equivalents	41.205	40.753
(e) Short-term loans and advances	26.458	30.579
(f) Other current assets	0.000	0.000
Total Current Assets	1879.149	1526.969
TOTAL	2154.806	1813.687

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.864
2] Share Application Money		0.000
3] Reserves & Surplus		401.421
4] (Accumulated Losses)		0.000
NETWORTH		406.285
LOAN FUNDS
1] Secured Loans		766.868
2] Unsecured Loans		0.000
TOTAL BORROWING		766.868
DEFERRED TAX LIABILITIES		0.000
TOTAL		1173.153
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		187.189
Capital work-in-progress		50.673
INVESTMENT		0.001
DEFERRED TAX ASSETS		1.852
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1257.134
	Sundry Debtors	4.595
	Cash & Bank Balances	18.003
	Other Current Assets	0.000
	Loans & Advances	42.973
Total Current Assets		1322.705
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	283.247
	Other Current Liabilities	90.276
	Provisions	15.744
Total Current Liabilities		389.267
Net Current Assets		933.438
MISCELLANEOUS EXPENSES		0.000
TOTAL		1173.153

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3754.644	3026.136	2286.114
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		169.495	122.901	99.955
Less	TAX		282.173	41.352	33.553
	PROFIT/ (LOSS) AFTER TAX		112.678	81.549	66.402
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		367.910	294.516	246.097
Less	APPROPRIATIONS
		Proposed Dividend Provision	0.000	0.000	9.728
		Tax on Dividend	0.000	0.000	1.616
		Transfer to General Reserve	0.000	8.155	6.640
	BALANCE CARRIED TO THE B/S		480.588	367.910	294.515
	EARNINGS IN FOREIGN CURRENCY		137.326	123.388	129.264
	IMPORTS		18.118	27.605	33.761
	Earnings / (Loss) Per Share (Rs.)		2316.57	16765.83	13651.73

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PBT/Sales)	(%)	4.51	4.06	4.37
Return on Total Assets (PBT/Total Assets}	(%)	7.93	6.79	6.62
Return on Investment (ROI) (PBT/Networth)		0.28	0.25	0.25
Debt Equity Ratio (Total Debt/Networth)		1.28	1.72	1.89
Current Ratio (Current Asset/Current Liability)		1.45	1.49	3.40

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	No
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 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	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	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	Yes
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	10382819	30/08/2012	180,000,000.00	ING VYSYA BANK LIMITED	22,GROUND FLOOR, ING VYSYA HOUSE, M.G.ROAD, BANGALORE - 560001, KARNATAKA, INDIA	B60586476
2	10382816	30/08/2012	620,000,000.00	ING VYSYA BANK LIMITED	22,GROUND FLOOR, ING VYSYA HOUSE, M.G.ROAD, BANGALORE - 560001, KARNATAKA, INDIA	B60585189
3	10077300	14/11/2007	1,997,000.00	PUNJAB NATIONAL BANK	NO.143,DEVIDOSS BUILDING, COMMERCIAL STREET, BANGALORE - 560001, KARNATAKA, INDIA	A27589639
4	10006338	01/06/2009 *	10,000,000.00	PUNJAB NATIONAL BANK	NO.143,DEVIDOSS BUILDING, COMMERCIAL STREET, BANGALORE - 560001, KARNATAKA, INDIA	A64081144
5	90192504	27/02/2002	9,500,000.00	PUNJAB NATIONAL BANK	BANGALORE CANTONMENT, BANGALORE - 560001, KARNATAKA, INDIA	-
6	90191515	17/01/2000 *	3,500,000.00	CANARA BANK	91 INFANTRY ROAD, BANGALORE - 560001, KARNATAKA, INDIA	-
7	90190801	25/06/1991	290,250.00	CANARA BANK	SHIVAJINAGAR BRANCH, BANGALORE, KARNATAKA, INDIA	-
8	90190578	10/03/1990	1,200,000.00	CANARA BANK	SHIVAJI NAGAR BRANCH, BANGALORE - 560001, KARNATAKA, INDIA	-
9	90193258	27/11/1986	2,000,000.00	CANARA BANK	SHIVAJI NAGAR BRANCH, BANGALORE - 560001, KARNATAKA, INDIA	-
10	90190027	25/01/1986	140,000.00	CANARA BANK	SHIVAJINAGAR, BANGALORE, KARNATAKA, INDIA	-
11	90189934	17/01/1985	95,000.00	CENTRAL BANK OF INDIA	SHIVAJI NAGAR BRANCH, BANGALORE - 560001, KARNATAKA, INDIA	-
12	90189882	28/03/1984	72,000.00	CANARA BANK	SHIVAJINAGAR BRANCH, BANGALORE, KARNATAKA, INDIA	-
13	90189870	19/12/1983	90,000.00	CENTRAL BANK OF INDIA	COMMERCIAL STREET, BANGALORE, KARNATAKA, INDIA	-
14	90189863	27/10/1983	30,000.00	CANARA BANK	SHIVAJI NAGAR BRANCH, BANGALORE - 560001, KARNATAKA, INDIA	-
15	90189846	28/04/1983	250,000.00	CANARA BANK	SHIVAJINAGAR BRANCH, BANGALORE, KARNATAKA, INDIA	-

* Date of charge modification

BACKGROUND:

The Company was incorporated as a Private Limited Company. The Company carries the business of manufacturing and selling of Gold, Diamond, Silver jewelry and articles.

PERFORMANCE OF THE COMPANY:

During the year the Company has recorded net sales of Rs. 3754.644 Millions as against the Previous Year net sales of Rs. 3026.136 Millions and Profit before tax of Rs. 169.495 Millions as against the previous year Rs. 122.901 Millions.

FIXED ASSETS

v Tangible Assets

Plant and equipment

Factory equipments

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Computer equipments

Other equipments

Leasehold improvements

v Intangible Assets

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 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.62.24
UK Pound	1	Rs.101.81
Euro	1	Rs.84.88

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.