MIRA INFORM REPORT

Report Date :

24.12.2013

IDENTIFICATION DETAILS

Name :	NAVRATAN JEWELLERS PRIVATE LIMITED
Registered Office :	No. 87, M. G. Road, Bangalore – 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.03.1993
Com. Reg. No.:	08-014077
Capital Investment / Paid-up Capital :	Rs.9.910 Millions
CIN No.: [Company Identification No.]	U27205KA1993PTC014077
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Dealer and Distributor of all kinds of Jewellery, Ornaments and Utensils made out of Gold, Silver, Diamond and other precious and semi-precious stones or metals.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 2300000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management of the company has failed to file its financials after 2010 with government department. Management denied to provide any information to us. As per previous external borrowing of the company has increased. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be 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 – 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

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

India has been ranked 83^rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158^th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

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 DENIED

Management Non Cooperative. (91-80-41122299)

LOCATIONS

Registered Office :	No. 87, M. G. Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-41122299
Fax No.:	Not Available
E-Mail :	navrathan87@gmail.com emmarjee@gmail.com

DIRECTORS

As on: 30.09.2010

Name :

Mr. Goutham Mangilal Chand

Designation :

Managing director

Address :

No.85, M. G. Road, Bangalore – 560085, Karnataka, India

Date of Appointment :

26.05.1995

DIN No.:

00425725

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	U27205KA1993PTC014077	NAVRATAN JEWELLERS PRIVATE LIMITED	Director	26/05/1995	26/05/1995	-	Active	NO
2	U67120KA1983PLC033577	MATRUKA INVESTMENTS LIMITED	Director	13/04/2007	13/04/2007	-	Active	NO

Name :

Mr. Uttamchand Nirmalkumar

Designation :

Director

Address :

No. 54, Bafna Mansions, Nagarthpet, Bangalore – 560001, Karnataka, India

Date of Appointment :

26.05.1995

DIN No.:

02772600

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	U24231KA1994PTC015733	CONA CHEMICALS PRIVATE LIMITED	Director	01/08/1994	01/08/1994	30/10/2012	Active	NO
2	U27205KA1993PTC014077	NAVRATAN JEWELLERS PRIVATE LIMITED	Managing director	26/05/1995	26/05/1995	-	Active	NO
3	U67120KA1983PLC033577	MATRUKA INVESTMENTS LIMITED	Director	13/04/2000	13/04/2000	-	Active	NO

Name :

Ms. Shakuntala Chainraj Gotawat

Designation :

Director

Address :

No. 54, Bafna Mansions, Nagarthpet, Bangalore – 560001, Karnataka, India

Date of Appointment :

26.05.1995

DIN No.:

02772604

KEY EXECUTIVES

Name :	Mr. M R Gopinath
Designation :	Company Secretary
Address :	Rukmini, 1^st Floor, 252/B, 2^nd C, Main Girinagar, I Phase, Bangalore – 560085, Karnataka, India
Qualification :	M Com., L.L.B.(Spl), F.C.S.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2010

Names of Shareholders	No. of Shares
Goutam Chand	34000
Amrao Bai	210
Shakunthala	810
U. Nirmal Kumar	11990
Prakash Chand and Company, India	10
Susheela Bai	10
Shanthala Rai	10
G. Parasrnal Jain	20
Manju Sajjanraj	2750
Sajjan Raj	16390
Rajcsh Kumar	400
Meena Devi	5000
Pushpa Bai	5000
Goutam Chand HUF	21500
G. Dharmichand (HUF)	500
G. Roopchand (HUF)	500
Total	99100

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Dealer and Distributor of all kinds of Jewellery, Ornaments and Utensils made out of Gold, Silver, Diamond and other precious and semi-precious stones or metals.

GENERAL INFORMATION

Suppliers :

· Amy Diam Vega Jewllery Private Limited

· Arihant Packers and Tools

· Art India, Banglore

· Bharat Export

· Binny's Mumbai

· Brinka Arya India Private Limited

· Chandana Enterprises

· City Computers and Consumables

· Corporation Bank

· Dev and A V Polymers

· Devis Warnam Pack

· Gems View

· Gift Coupan - Tata lndicom

· God's Account

· Gold Club Membership

· Gold Star Overseas

· Hammer Star Jewellery

· Hena Gems

· Jewelex International Private Limited

· Krishna lal Jewels Private Limited

· Malik Industries

Customers :

· Acc Limited

· Aircel Discount Voucher

· Credit Card

· Gift Coupan - Epson India

· The Leela Palace Voucher

· M M Jewellery

· Nirmal Jewellers

· Sodex Ho Pass

· Sundry Parties

No. of Employees :

Information declined by the management.

Bankers :

The Federal Bank Limited, 44 and 45, Residency Road, Bangalore - 560025, Karnataka, India

IDBI Bank Limited

ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
The Federal Bank Limited (Secured against hypothecation of stocks and book debts)	487.683	398.038
IDBl Bank (Short Term Loan)	100.000	0.000
IDBl Bank O D A/C	150.417	0.000
CITI Bank Car Loan	0.203	0.404
lClCl Bank Car Loan	0.117	0.273
The Federal Bank Limited Car Loan	0.105	0.402
Total	738.525	399.117

Banking Relations :	--
Auditors :
Name :	K. Satish and Company Chartered Accountants
Address :	No. 8, II Floor, Sunder Plaza, Bangalore - 560053, Karnataka, India
PAN No.:	AHEPS5221N

CAPITAL STRUCTURE

As on: 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99100	Equity Shares	Rs.100/- each	Rs.9.910 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		9.910	9.910	9.910
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		570.863	501.554	430.877
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		580.773	511.464	440.787
LOAN FUNDS
1] Secured Loans		738.525	399.117	369.092
2] Unsecured Loans		149.253	79.268	79.913
TOTAL BORROWING		887.778	478.385	449.005
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1468.551	989.849	889.792
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.676	9.735	10.259
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		178.913	157.241	137.905
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1059.443	847.541	774.774
	Sundry Debtors	31.692	41.551	61.141
	Cash & Bank Balances	352.799	34.066	26.629
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.343	26.828	12.238
Total Current Assets		1459.277	949.986	874.782
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	161.913	108.409	116.560
	Other Current Liabilities	17.265	12.923	15.239
	Provisions	1.137	5.821	1.357
Total Current Liabilities		180.315	127.153	133.156
Net Current Assets		1278.962	822.833	741.626
MISCELLANEOUS EXPENSES		0.000	0.040	0.002
TOTAL		1468.551	989.849	889.792

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
TOTAL SALES	12648.667	8209.457	6031.240
EXPENSES	NA	NA	NA
NET PROFIT AFTER TAX	69.309	70.677	99.107
Earnings Per Share (Rs.)	699.38	713.19	1000.07

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.55	0.86	1.64
Debt Equity Ratio (Total Debt /Networth)		1.53	0.94	1.02
Current Ratio (Current Asset/Current Liability)		8.09	7.47	6.57

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2010	As on 31.03.2009
Ganapath Raj (HUF)	2.500	2.500
HDFC Bank Limited	54.475	0.000
M Anand Kumar	20.850	0.000
M.Goutham Chand	28.126	26.872
M lndira Bai	20.350	0.000
M. P. Jain	0.000	34.400
Pushpa Bai	7.452	6.996
U. Nirmal Kumar	15.500	8.500
Total	149.253	79.268

FUTURE PROSPECTUS:

The company is trying to improve the operations of the company.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10219733	29/11/2010 *	250,000,000.00	IDBI BANK LIMITED	IDBI BANK LIMITED, NO. 102, SHAKTHI COMFORTS, K. H. ROAD, BANGALORE, Karnataka - 560027, INDIA	B03735917
2	10205505	27/01/2010	60,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	A80098007
3	10080565	07/07/2007	885,000.00	THE FEDERAL BANK LIMITED	44-45, RESIDENCY ROAD, BANGALORE, Karnataka - 560025, INDIA	A29394228
4	80025078	20/04/2012 *	500,000,000.00	THE FEDERAL BANK LIMITED	44 and 45, RESIDENCY ROAD, BANGALORE, Karnataka - 560025, INDIA	B39805379

* Date of charge modification

FIXED ASSETS:

· Computer

· Furniture

· Machinery

· Motor Car

· Office Equipment

· Vehicles

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.

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.61.99
UK Pound	1	Rs.101.37
Euro	1	Rs.84.82

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	RAJ

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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.