MIRA INFORM REPORT

Report Date :

29.07.2013

IDENTIFICATION DETAILS

Name :	N. SATISH EXPORTS PRIVATE LIMITED
Registered Office :	1603, Panchratna 16th Floor, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.04.2011
Com. Reg. No.:	11-216769
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U51909MH2011PTC216769
TAN No.: [Tax Deduction & Collection Account No.]	MUMN19052F
PAN No.: [Permanent Account No.]	AADCN6035C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamonds.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having a moderate track record. The working capital requirement of the company is large. However, trade relations are reported as fair. Business is active. Payment terms are 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B+ (Long Term Rating)
Rating Explanation	High risk of default.
Date	January 08, 2013

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. Nikunj Basnali
Designation :	Account Manager
Contact No.:	91-22-23691188
Date :	27.09.2013

LOCATIONS

Registered Office :	1603, Panchratna 16th Floor, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23691188/ 23612523
Fax No.:	91-22-23641154
E-Mail :	info@nsatish.net nsonline@nsatish.net
Website :	http://nsatish.net
Corporate Office :	AW-4101, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India
Factory :	502, Diamond House, Kesarba Market, Gotalawadi, Surat, Gujarat, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Ramniklal Virchand Shah
Designation :	Director
Address :	403 - A, Chandan Bala ,R. R. J. Marg, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	23.08.1955
Date of Appointment :	27.04.2011
PAN No.:	AAEPS0949N
DIN No.:	03354633
Name :	Mr. Narendra Virchand Shah
Designation :	Director
Address :	201, 2nd Floor, Hamilton Building 52 - A, Laburnam Road, Gamdevi, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	21.08.1950
Date of Appointment :	27.04.2011
PAN No.:	AAEPS0948P
DIN No.:	03354694
Name :	Mr. Miten Narendra Shah
Designation :	Director
Address :	201, 2nd Floor, Hamilton Building, 9 Laburnam Road, Gamdevi, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	31.10.1972
Date of Appointment :	29.09.2012
PAN No.:	AAOPS6623B
DIN No.:	03354615
Name :	Mr. Vikas Jayantilal Shah
Designation :	Director
Address :	1603, Panchratna, 16th Floor, Opera House, Mumbai – 400004, Maharashtra, India
Date of Birth/Age :	27.11.1975
Date of Appointment :	29.09.2012
PAN No.:	AAKPS2149E
DIN No.:	03354830
Name :	Mr. Vinay Jayantilal Shah
Designation :	Director
Address :	Flat No.163, Samrat Ashok Building, No.3, 7th Floor, R.R. Thakkar Marg, Walkeshwar, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	19.09.1970
Date of Appointment :	29.09.2012
PAN No.:	AAPPS3998A
DIN No.:	06456968

KEY EXECUTIVES

Name :	Mr. Nikunj Basnali
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Vikas Jayantilal Shah	10000
Ramniklal Virchand Shah	30000
Narendra Virchand Shah	20000
Miten Narendra Shah	10000
Vinay Jayantilal Shah	10000
Samit Mahendra Shah	10000
Jayantilal Virchand Shah	10000
Total	100000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diamonds.

Products :

Product Description	ITC Code
Polish Diamond Export Sale	71023910

Exports :

Products :

Diamonds

Countries :

• Hong Kong
• USA
• Israel

Imports :

Products :

Ruff Diamonds

Countries :

Belgium

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

State Bank of India, Diamond Branch,D-3,West Core, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012
LONG TERM BORROWINGS
Term loans from banks (Hypothecation charge on Hyundai Verna vehicle together with all accessories and addition to or in the vehicles, whether present or future.)	0.461
Term loans from others (Secured by first charge on Toyota Vehicle together with all accessories and addition thereon.)	0.084
SHORT TERM BORROWINGS
Working capital loans from banks	249.460
Other loans and advances	0.068
Total	250.073

Banking Relations :	--
Auditors :
Name :	Borkar and Muzumdar Chartered Accountants
Address :	21/168 Anand Nagar, Om Co-operative Housing Socitey, Anand Nagar, Lane Off Nehru, Road Vakola, Santacruz East, Mumbai – 400055, Maharashtra, India
PAN No.:	AAAFB3194J
Other Parties where control exists :	OJAS Exports

CAPITAL STRUCTURE

As on: 31.03.2012

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
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000
(b) Reserves & Surplus	190.755
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	200.755
(3) Non-Current Liabilities
(a) long-term borrowings	0.545
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	0.545
(4) Current Liabilities
(a) Short term borrowings	250.491
(b) Trade payables	261.152
(c) Other current liabilities	1.929
(d) Short-term provisions	0.370
Total Current Liabilities (4)	513.942
TOTAL	715.242
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26.354
(ii) Intangible Assets	0.040
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	1.800
(c) Deferred tax assets (net)	0.667
(d) Long-term Loan and Advances	0.730
(e) Other Non-current assets	1.108
Total Non-Current Assets	30.699
(2) Current assets
(a) Current investments	0.000
(b) Inventories	455.414
(c) Trade receivables	221.790
(d) Cash and cash equivalents	6.171
(e) Short-term loans and advances	0.516
(f) Other current assets	0.652
Total Current Assets	684.543
TOTAL	715.242

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012
SALES		1273.443
EXPENDITURE		1241.897
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		58.435
FINANCIAL EXPENSES		26.889
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		31.546
DEPRECIATION/ AMORTISATION		3.758
PROFIT BEFORE TAX		27.788
TAX		9.200
PROFIT AFTER TAX		18.588
Fringe Benefit Tax		(0.667)
Deferred Tax Income		19.255
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	1071.037
TOTAL EARNINGS		1071.037
Earnings Per Share (Rs.)		206.71

Particulars	31.03.2013
Sales Turnover (Approximately)	1100.000

Expected Sales (2013-2014): Rs.1300.000 Millions

The above information has been parted by Mr. Nikunj Basnali

KEY RATIOS

PARTICULARS		31.03.2012
Net Profit Margin (PBT/Sales)	(%)	2.18
Return on Total Assets (PBT/Total Assets}	(%)	3.90
Return on Investment (ROI) (PBT/Networth)		0.14
Debt Equity Ratio (Total Debt/Networth)		1.25
Current Ratio (Current Asset/Current Liability)		1.33

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

(Rs. In Millions)

Particulars	31.03.2012
Current maturities of long-term debt	0.415
Total	0.415

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 two years	Yes
12]	Profitability for last one year	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
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

REVIEW OF OPERATIONS

The company generated Sales Income during the year is Rs. 1273.443 Millions in the very first year and earned profit of Rs. 27.788 Millions in the year. The Board hopes to do better in the coming year The Board appreciates and thanks all the members for showing the confidence in the management and Board, further look ahead for the same support in the years to come.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012
SHORT TERM BORROWINGS
Loans and advances from related parties	0.963
Total	0.963

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10363120	03/11/2012 *	298,000,000.00	STATE BANK OF INDIA	DIAMOND BRANCH, D-3, WEST CORE, BHARAT DIAMOND BOURSE, BANDRA KURLA COMPLEX, BANDRA (East), MUMBAI, MAHARASHTRA - 400051, INDIA	B64554892

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.

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer Equipment
• Computer

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 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.58.91
UK Pound	1	Rs.90.68
Euro	1	Rs.78.22

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.