MIRA INFORM REPORT

Report Date :

20.05.2013

IDENTIFICATION DETAILS

Name :	KARP IMPEX LIMITED (TRF.)
Registered Office :	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	24.04.1995
Com. Reg. No.:	11-158868
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions (As on 31.03.2011)
CIN No.: [Company Identification No.]	U27205MH1995PLC158868
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11083C
PAN No.: [Permanent Account No.]	AABCK1823F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Trader, Importer and Exporter of Diamonds
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 15640000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. There appears drastic fall in the profitability during the current year recorded by the company. However, the general financial position of the company seems to be good. Performance capacity appears to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	13.05.2013

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.

LOCATIONS

Registered Office :	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-40608888
Fax No.:	91-22-40608899
E-Mail :	karp@karpgroup.com
Website :	www.karpgroup.com
Corporate Office :	1141, Prasad Chambers, Opera House, Mumbai - 400 004, Maharashtra, India
Factory :	Karp House, 8/A, Lal Darwaja, Surat – 395 008, Gujarat, India
Location :	Owned

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Nirav Anilkumar Virani
Designation :	Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	10.07.1984
Qualification :	BBA
Date of Appointment :	05.12.2005
DIN No.:	00151196

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	U27205MH1995PLC158868	KARP IMPEX LIMITED (TRF.)	Director	05-12-05	05-12-05	Active	NO
2	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	01-11-06	01-11-06	Active	NO
3	U72900MH2006PTC164469	TECHNO INFO SOFTWARE PRIVATE LIMITED	Director	30-09-09	12-06-08	Active	NO
4	U51398MH1989PTC052848	KARP DIAMONDS PRIVATE LIMITED	Director	29-09-09	01-12-08	Active	NO
5	U65990MH1990PTC056225	SANIKA ASSETS MANAGMENT AND INVESTMENTS PRIVATE LIMITED	Director	17-06-11	17-06-11	Active	NO
6	AAA-3042	SHANTANA DIAMONDS LLP	Designated Partner	08-12-10	08-12-10	Active	NO

Name :	Mr. Kishorkumar Bhikhabhai Virani
Designation :	Chairman and Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	28.09.1956
Qualification :	B.E. Mechanical
Date of Appointment :	24.04.1995
DIN No.:	00279641

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	U27320GJ1989PLC012127	HI-TECH INVESTMENT CASTINGS LIMITED	Director	17-04-89	17-04-89	-	Active	NO
2	U27205MH1995PLC158868	KARP IMPEX LIMITED (TRF.)	Director	24-04-95	24-04-95	-	Active	NO
3	U51100GJ2000PTC037823	KARP JEWELLERY PRIVATE LIMITED	Director	20-04-00	20-04-00	-	Active	NO
4	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	16-05-01	16-05-01	-	Active	NO
5	U45201GJ1990PTC014201	ALEKHAN CONSTRUCTION PRIVATE LIMITED	Director	03-04-02	03-04-02	26-12-12	Active	NO
6	U91110GJ2000NPL039065	GUJARAT HIRA BOURSE	Director	09-03-04	09-03-04	-	Active	NO
7	U70100MH2005PTC153270	KARP ESTATE PRIVATE LIMITED	Director	13-05-05	13-05-05	-	Active	NO
8	U40102GJ2007PLC050211	JERUZ ENERGY VENTURES LIMITED	Director	21-03-07	21-03-07	-	Active	NO
9	U45201GJ2007PTC051392	SOOREE INFRASYSTEMS PRIVATE LIMITED	Director	25-07-07	25-07-07	-	Under Process of Striking off	NO
10	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING(INDIA) LIMITED.	Director	04-11-10	04-11-10	-	Active	NO
11	U40108GJ2007PTC050038	JERUZ GREENPOWER PRIVATE LIMITED	Director	01-03-11	01-03-11	-	Active	NO
12	U40107GJ2007PTC049934	JERUZ MAGNE GAS PRIVATE LIMITED	Director	01-03-11	01-03-11	-	Active	NO

Name :	Mr. Anilkumar Bhikhabhai Virani
Designation :	Managing Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	02.10.1958
Qualification :	B.Com
Date of Appointment :	24.04.1995
DIN No.:	00279789

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	U27205MH1995PLC158868	KARP IMPEX LIMITED (TRF.)	Managing director	24-04-95	24-04-95	-	Active	NO
2	U51100GJ2000PTC037823	KARP JEWELLERY PRIVATE LIMITED	Director	20-04-00	20-04-00	-	Active	NO
3	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	16-05-01	16-05-01	-	Active	NO
4	U70100MH2005PTC153270	KARP ESTATE PRIVATE LIMITED	Director	13-05-05	13-05-05	-	Active	NO
5	U29221GJ1991PLC014914	JYOTI CNC AUTOMATION LIMITED	Director	22-08-06	22-08-06	12-08-07	Active	NO
6	U72900MH2006PTC164469	TECHNO INFO SOFTWARE PRIVATE LIMITED	Director	30-09-09	12-06-08	-	Active	NO
7	U70102MH2010PTC207786	PARCERIA REAL ESTATE DEVELOPERS PRIVATE LIMITED	Director	17-09-10	17-09-10	-	Active	NO
8	U74900MH2007PTC172092	SARDAR MANI SAFE VAULT PRIVATE LIMITED	Additional director	08-10-10	08-10-10	-	Active	NO
9	U51398MH1984NPL033787	BHARAT DIAMOND BOURSE	Director	23-12-10	23-12-10	-	Active	NO
10	U65990MH1990PTC056225	SANIKA ASSETS MANAGMENT AND INVESTMENTS PRIVATE LIMITED	Director	17-06-11	17-06-11	-	Active	NO
11	AAA-2668	SHANTABANA IMPEX LLP	Designated Partner	01-11-10	01-11-10	-	Active	NO

Name :	Mr. Kailash Anil Virani
Designation :	Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	30.10.1958
Qualification :	HSC
Date of Appointment :	24.04.1995
Date of Cessation :	29.04.2013
DIN No.:	01147455
Name :	Mrs. Nilaben Kishor Virani
Designation :	Whole Time Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	05.09.1957
Qualification :	B. Com.
Date of Appointment :	24.04.1995
Date of Cessation :	29.04.2013
DIN No.:	01585711
Name :	Mr. Keval Kishor Virani
Designation :	Whole Time Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	30.09.1983
Qualification :	M. Tech.
Date of Appointment :	05.12.2005
DIN No.:	01734130

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	U27205MH1995PLC158868	KARP IMPEX LIMITED (TRF.)	Whole-time director	05-12-05	05-12-05	Active	NO
2	U45202GJ2001PLC039548	LAXMI SHOPS AND WAREHOUSES LIMITED	Director	01-11-06	01-11-06	Active	NO
3	U40108GJ2007PTC050038	JERUZ GREENPOWER PRIVATE LIMITED	Director	01-03-11	01-03-11	Active	NO
4	U40107GJ2007PTC049934	JERUZ MAGNE GAS PRIVATE LIMITED	Director	01-03-11	01-03-11	Active	NO
5	AAA-3042	SHANTANA DIAMONDS LLP	Designated Partner	08-12-10	08-12-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Anilkumar Bhikhabhai Virani	2450000
Kishorkumar Bhikhabhai Virani	2450000
Neela Kishor Virani	49000
Ashwin Govindbhai Kukadia	1000
Kailash Anil Virani	49000
Pinal Kishor Virani	500
Ashmi Rahul Mody	500
Nirav Anil Virani	111000
Keval Kishore Virani	111000
TOTAL	5222000

AS ON 28.03.2013

Names of Allottees	No. of Shares
Nirav Anil Virani	89200
Keval Kishore Virani	89200
TOTAL	178400

AS ON 28.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Importer and Exporter of Diamonds

Products :

Item Code No. (ITC Code)	710239.01
Product Description	Cut and Polished Diamonds
Item Code No. (ITC Code)	710231.00
Product Description	Rough Diamonds

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad, Overseas Branch, Ashok Mahal, 1204, Tulloch Road, Colaba, Mumbai-400039, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working capital loans banks secured
Working Capital Loans Secured	5695.501	5590.721
TOTAL	5695.501	5590.721

Banking Relations :	--
Financial Institute :	Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address 1:	310, Ahura Centre, 82, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-66515570
Fax No.:	91-22-22875771
E-Mail:	emails@ss.associate.com
Website:	http://www.ss.associates.com
PAN No.:	AAQFS7647M
Subsidiaries (AS ON 31.03.2011) :	· Karp Impex N. V. (till 15.12.2010) · Karp Diamonds Private Limited · Karp MFG. Company (a partnership firm) · Karp Impex HK Limited
Associates (AS ON 31.03.2011):	· Karp Impex N.V (from 16.12.2010)

CAPITAL STRUCTURE

AFTER 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5222000	Equity Shares	Rs.10/- each	Rs. 52.220 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5400400	Equity Shares	Rs.10/- each	Rs. 54.004 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3860.195	3289.186
4] (Accumulated Losses)		0.000	0.000
NETWORTH		3910.195	3339.186
LOAN FUNDS
1] Secured Loans		5695.501	5590.721
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		5695.501	5590.721
DEFERRED TAX LIABILITIES		89.772	86.982
TOTAL		9695.468	9016.889
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		681.209	582.968
Capital work-in-progress/ Advances for Fixed Assets		19.863	50.240
INVESTMENT		537.674	619.904
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5978.851	4209.039
	Sundry Debtors	4209.034	3795.473
	Cash & Bank Balances	82.720	95.765
	Other Current Assets	0.334	0.073
	Loans & Advances	481.302	553.919
Total Current Assets		10752.241	8654.269
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	786.212	270.512
	Other Current Liabilities	1235.428	380.666
	Provisions	273.879	239.314
Total Current Liabilities		2295.519	890.492
Net Current Assets		8456.722	7763.777
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		9695.468	9016.889

Note: Balance Sheet for the year 2012 is not available, only Profit and Loss Account is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	18626.531	12102.170	11801.161
		Other Income	2.387	642.491	351.825
		TOTAL (A)	18628.918	12744.661	12152.986
Less	EXPENSES
		Cost of material Consumed	14129.628	9670.625	11208.865
		Purchases of stock in trade	2249.834	2482.026
		Employee related expenses	125.400	96.404
		Other expenses	1171.684	604.853
		Changes in inventories of finished goods, work in progress and stock in trade	22.219	(1090.155)
		Prior Period Items	0.000	(4.356)
		TOTAL (B)	17698.765	11759.397	11208.865
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		930.153	985.264	944.121
Less	FINANCIAL EXPENSES (D)		676.319	271.465	376.581
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		253.834	713.799	567.540
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.574	41.871	37.292
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		204.260	671.928	530.248
Less	TAX (H)		78.065	100.918	81.707
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		126.195	571.010	448.541
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2658.206	2087.196	1638.655
	BALANCE CARRIED TO THE B/S		2784.401	2658.206	2087.196
	IMPORTS
		Raw Materials	NA	10207.285	6602.900
		Stores & Spares	NA	10.515	7.827
		Capital Goods	NA	49.615	18.328
		Finished Goods (Polished Diamonds)	NA	2471.397	3700.611
		Finished Goods (Jewellery)	NA	0.000	39.472
	TOTAL IMPORTS		NA	12738.812	10369.138
	Earnings Per Share (Rs.)		25.20	113.33	90.63

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.68	4.48	3.69
Net Profit Margin (PBT/Sales)	(%)	1.10	5.55	4.49
Return on Total Assets (PBT/Total Assets}	(%)	NA	5.88	5.74
Return on Investment (ROI) (PBT/Networth)		NA	0.17	0.16
Debt Equity Ratio (Total Debt /Networth)		NA	1.46	1.67
Current Ratio (Current Asset/Current Liability)		NA	4.68	9.72

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)	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CORPORATE INFORMATION

Subject is a closely held limited Company having its registered office at Maharashtra and incorporated on 24 April 1995 under the Companies Act, 1956. The Company is engaged in the business of manufacturing, trading, import and export of diamonds.

FORM 8

Corporate identity number of the company	U27205MH1995PLC158868
Name of the company	KARP IMPEX LIMITED (TRF.)
Address of the registered office or of the principal place of business in India of the company	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India karp@karpgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10235674
Type of charge	Immovable property
Particular of charge holder	Axis Trustee Services Limited Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India debenturetrustee@axistrustee.com
Nature of description of the instrument creating or modifying the charge	First Supplemental Indenture of Mortgage.
Date of instrument Creating the charge	18.10.2012
Amount secured by the charge	Rs. 8500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest as may be stipulated by the bank from time to time Terms of repayment On Demand. Margin As may be stipulated by Bank from time to time. Extent and operation of the charge The Mortgagor Company created a registered mortgage in respect of its assets as described in Item No.15, in favour of Axis Trustee Services Limited ("Security Trustee") acting for the benefit of the Consortium Lenders, as security for repayment of the credit facilities of Rs. 8500.000 Millions granted by the Consortium Lenders with all interest, additional interest, costs, expenses, charges, commissions and all other moneys payable there under. Others Upon repayment of mortgaged debt, the Mortgagee shall recovery /release the said mortgaged property
Short particulars of the property charged	Immovable properties bearing "Karp", 1407, Opposite Asiana Apartments, Near Gokulam Dairy, Athwa Lines, Surat, Gujarat admeasuring 370.39 sq. mts.
Date of last modification prior to the present modification	28.09.2012
Particulars of the present modification	The charge shall now stand revised up to Rs. 8500.000 Millions in favour of Axis Trustee Services Limited ("the Security Trustee") for the benefit of lenders, namely: AXIS, PNB, HDFC, CAN, BOI, AB, UBI, ING, CORP, SCB, EXIM, YES, IDBI, SBH, SBM, SBBJ, SBP, ICICI Bank Limited and Societe Generate against the security of the immovable property/ies of the Company being lying and situated at Surat (Gujarat).

FIXED ASSETS

· Land

· Plant and Machinery

· Computer

· Furniture and Fittings

· Office Equipment

· Electric Installation

· Office Premises

· Factory Building

· Local Vehicle

WEBSITE DETAILS

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.

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. 55.04
UK Pound	1	Rs. 83.60
Euro	1	Rs. 70.68

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
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	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.