MIRA INFORM REPORT

Report Date :

09.03.2013

IDENTIFICATION DETAILS

Name :	JEWEL STAR
Registered Office :	BW 5141/42/43, 5^th floor, Bharat Diamond Bourse, ‘G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1992
Capital Investment / Paid-up Capital :	Rs.128.749 Millions
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Importer and Exporter of Diamond.
No. of Employees :	110 (Approximately) [In Office 10 + In Factory 100]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 510000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The concern can be considered for normal business dealings at usual trade terms and condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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. Vasant
Designation :	Accountant
Contact No.:	91-22-26755055
Date :	08.03.2013

LOCATIONS

Registered Office :	BW 5141/42/43, 5^th floor, Bharat Diamond Bourse, ‘G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-26755055/66
Fax No.:	Not Available
E-Mail :	jewelstarindia@yahoo.com
Website :	www.info@jewelstar.co.in
Area :	1070 Sq. ft.
Location :	Owned
Factory :	1, Sarita Society, Street No. 1, Nand Kuvar Bagh, Bhav nagar, Gujarat, India

PARTNERS

Name :	Mr. Mahendra B. Patel
Designation :	Partner
Date of Birth/Age :	42 Years
Qualification :	BE
Name :	Mr. Mavaji D. Kashiya
Designation :	Partner
Date of Birth/Age :	60 Years
Qualification :	Higher Secondary
Name :	Mr. Arun M. Kashiya
Designation :	Partner
Date of Birth/Age :	25 Years
Qualification :	B.Com., MBA in Finance

KEY EXECUTIVES

Name :	Mr. Vasant
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Diamond.
Exports :
Products :	Finished Goods
Countries :	· USA · Hong Kong · Belgium
Imports :
Products :	Ruff Diamond
Countries :	· Belgium · Dubai · Hong Kong · Israel
Terms :
Selling :	120 Days DA
Purchasing :	120 Days DA

GENERAL INFORMATION

Suppliers :	Yeedim (Belgium)
Customers :	Wholesalers, Retailers and End Users · Fine Diamond (Belgium)
No. of Employees :	110 (Approximately) [In Office 10 + In Factory 100]
Bankers :	· Axis Bank, Fort DM Road, Mumbai, Maharashtra, India · Standard Chartered Bank, Fort, P M Road, Mumbai, Maharashtra, India
Facilities :	Export Finance Rs.75.000 Millions (From Axis Bank) Export Finance Rs.105.000 Millions (From Standard Chartered Bank)

Banking Relations :	--
Auditors :
Name :	Ashwin K. Agnik and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

As on: 31.03.2012

Capital Investment :
Owned :	Rs.128.749 Millions (Estimated)
Borrowed :	--
Total :	Rs.128.749 Millions (Estimated)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS			31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital			128.749	159.834
2] Share Application Money			0.000	0.000
3] Reserves & Surplus			0.000	0.000
4] (Accumulated Losses)			0.000	0.000
NETWORTH			128.749	159.834
LOAN FUNDS
1] Secured Loans			148.007	72.899
2] Unsecured Loans			0.000	0.000
TOTAL BORROWING			148.007	72.899
DEFERRED TAX LIABILITIES
TOTAL			276.756	232.733
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			50.244	19.565
Capital work-in-progress			0.000	0.000
INVESTMENT			0.025	0.025
DEFERREX TAX ASSETS			0.000	0.058
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		194.455	217.567
	Sundry Debtors		228.069	78.875
	Cash & Bank Balances		2.654	1.840
	Other Current Assets		1.513	0.540
	Loans & Advances		17.979	35.314
Total Current Assets			444.670	334.136
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		202.135	110.099
	Other Current Liabilities		0	0
	Provisions		16.048	10.952
Total Current Liabilities			218.183	121.051
Net Current Assets			226.487	213.085
MISCELLANEOUS EXPENSES			0.000	0.000
TOTAL			276.756	232.733

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Sales	774.566	459.312
		Other Income	0.916	0.794
		TOTAL (A)	775.482	460.106
Less	EXPENSES
		Cost of Sales	594.767	333.882
		Manufacturing labour Charges	122.863	86.846
		Increase Stock of Finished Products	16.586	6.190
		Sales and Administrative Expenses	17.566	12.906
		TOTAL (B)	751.782	439.824
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.700	20.282
Less	FINANCIAL EXPENSES (D)		3.592	3.867
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.108	16.415
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.359	2.622
	PROFIT BEFORE TAX (E-F) (G)		16.749	13.793
Less	TAX (H)		8.420	4.368
	PROFIT AFTER TAX (G-H) (I)		8.329	9.425
	CAPITAL GAIN ON SALE OF LAND AT BHAVNAGAR		0.000	1.159
	PROFIT ON SALE OF PROPERTY UNDER BLOCK OF ASSETS		16.184	1.197
	PROFIT ON SALE OF INVESTMENT		23.136	0.000
	TOTAL DISTRIBUTABLE PROFIT		47.649	11.781
	PROFIT TO RETIRING PARTNERS		9.042	0.000
	PROFIT TRANSFERRED TO PARTNERS CAPITAL ACCOUNT		38.607	11.781

Expected Sales (2012-13) : Rs.900.000 Millions

The above information has been parted by Mr. Vasant.

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	1.07	2.05
Net Profit Margin (PBT/Sales)	(%)	2.16	3.00
Return on Total Assets (PBT/Total Assets}	(%)	3.38	3.90
Return on Investment (ROI) (PBT/Networth)		0.13	0.09
Debt Equity Ratio (Total Debt/Networth)		1.15	0.46
Current Ratio (Current Asset/Current Liability)		2.04	2.76

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	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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
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.

- The diamond jewellery industry in India today may be more than Rs 60000.000 millions and is rated amongst the fastest growing in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 20000.000 Millions lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

TRADE REFERENCE:

· Yeedim (Belgium)

· Fine Diamond (Belgium)

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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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
TOTAL		45

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.