MIRA INFORM REPORT

Report Date :

27.05.2013

IDENTIFICATION DETAILS

Name :	GOLD STAR JEWELLERY PRIVATE LIMITED (w.e.f. 12.03.2010)
Formerly Known As :	GOLD STAR JEWELLERY LIMITED
Registered Office :	Block ’C’, Plot No. 16 P, 17, 28 and 29 (P), Seepz, Andheri (East), Mumbai – 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.06.1990
Com. Reg. No.:	11-056881
Capital Investment / Paid-up Capital :	Rs. 41.900 Millions
CIN No.: [Company Identification No.]	U39611MH1990PLC056881
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08117E
PAN No.: [Permanent Account No.]	AAACG3264B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture and Exporter of Gold Studded Jewellery.
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 3000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as decent. Business is active. Payment are reported to be usually correct and as per commitments. The company can be considered normal for business dealings 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 – 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	CRISIL
Rating	Bank Guarantee: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	29.03.2012

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 :	Block ‘C’, Plot 16P, 17, 28 and 29 (P), Seepz, Andheri (East), Mumbai-400096, Maharashtra, India
Tel. No.:	91-22-26947000
Fax No.:	91-22-28290255 / 28291257
E-Mail :	legal@goldjewellery.com legal@goldstarjewellery.com ashish@goldstarjewellery.com creditcollection@goldstarjewellery.com
Website :	http://www.goldjewellery.com
Branch Office 1 :	7/714, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23646171 / 72 / 73
Fax No.:	91-22-22634544
Email :	admin@rtdiamond.co.in
Branch Office 2 :	269, Kothari House, 2^nd Floor, RMR Road, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23840223 / 224 / 230
Fax No.:	91-22-23840227
Email :	sales@goldstar.co.in
Overseas Office :	Located At: · New York · Hong Kong · Japan

DIRECTORS

As on 26.09.2012

Name :	Mr. Ashish Vinodrai Shah
Designation :	Managing Director
Address :	19/2, Suvarna Nagar, Soni House, N. S. Road No.4, JVPD Scheme, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	04.05.1970
Date of Appointment :	01.05.2009
PAN No.:	AMNPS2341B
DIN No.:	00007729
Name :	Mr. Alkesh Satish Shah
Designation :	Director
Address :	04, Aryavarta ND Road, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	06.02.1970
Date of Appointment :	29.09.2003
PAN No.:	AAHPS1762J
DIN No.:	00004149

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2012

Names of Shareholders	No. of Shares
Satish Ratilal Shah	1951990
Alkesh Satish Shah	515000
Sanjay Satish Shah	420000
Hansaben Satish Shah	145000
Smita Alkesh Shah	47000
Shweta Sanjay Shah	33000
Sanjay Satish Shah	685000
Satish Ratilal Shah	393000
Sayam Sanjay Shah	10
Total	4190000

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 :

Manufacture and Exporter of Gold Studded Jewellery.

Products :

Item Code No.	Product Description
71131910	Manufacture and Exporter of Gold Studded Jewellery

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Seepz Branch, Andheri (East), Mumbai – 400096, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans	42.996	0.000
Rupee term loans from banks	390.451	94.694
Foreign currency term loans from banks	55.403	389.265
Total	488.850	483.959

Banking Relations :	--
Auditors :
Name :	B. J. Shah and Associates Chartered Accountants
Address :	203-A/1, Modern Apartment Sanghani Estate, Garden Lane, Ghatkopar (West), Mumbai - 400086, Maharashtra, India
PAN No.:	AAHPS5959D
Associates :	· Gold Star Diamond Private Limited · Mindtech Solution Private Limited · Gold Star Corporate Solutions Private Limited · Diam Star Jewellery India Private Limited · Gold Star Jewellery Designs Private Limited · Gold Star Centoquattro Jewellery Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

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
4190000	Equity Shares	Rs.10/- each	Rs.41.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		41.900	41.900	41.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		711.121	655.064	627.626
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		753.021	696.964	669.526
LOAN FUNDS
1] Secured Loans		488.850	483.959	430.823
2] Unsecured Loans		181.303	50.778	188.188
TOTAL BORROWING		670.153	534.737	619.011
DEFERRED TAX LIABILITIES		25.128	13.633	14.271
TOTAL		1448.302	1245.334	1302.808
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		228.588	189.311	163.242
Capital work-in-progress		0.000	0.000	38.066
INVESTMENT		10.375	9.373	8.373
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1321.239	1067.093	854.529
	Sundry Debtors	1035.133	606.353	888.265
	Cash & Bank Balances	44.758	62.783	37.383
	Other Current Assets	32.575	59.711	42.589
	Loans & Advances	71.656	81.595	30.771
Total Current Assets		2505.361	1877.535	1853.537
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1235.962	807.874	749.542
	Other Current Liabilities	41.765	22.346	1.323
	Provisions	18.295	0.665	9.545
Total Current Liabilities		1296.022	830.885	760.410
Net Current Assets		1209.339	1046.650	1093.127
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1448.302	1245.334	1302.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	5099.483	3907.755	2789.917
Less	EXPENSES
		Office Expenses	5014.629 (Including Depreciation)	3874.596 (Including Depreciation)
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)			2759.570
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				30.347
Less/ Add	DEPRECIATION/ AMORTISATION (F)				25.413
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		84.854	33.159	4.934
Less	TAX (H)		28.798	5.721	(17.929)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		56.056	27.438	22.863
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		532.662	505.224	482.361
	BALANCE CARRIED TO THE B/S		588.718	532.662	505.224
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods	2769.188	2220.973	1618.872
	TOTAL EARNINGS		2769.188	2220.973	1618.872
	IMPORTS
		Raw Materials	1345.593	1018.115	836.370
		Consumable Stores and Spares	13.459	22.137	16.083
		Capital Goods	1.735	11.012	8.583
	TOTAL IMPORTS		1360.787	1051.264	432.921
	Earnings / (Loss) Per Share (Rs.)		13.38	6.55	5.46

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.10	0.70	0.82
Return on Total Assets (PBT/Total Assets}	(%)	3.10	1.60	0.24
Return on Investment (ROI) (PBT/Networth)		0.11	0.05	0.01
Debt Equity Ratio (Total Debt/Networth)		0.89	0.77	0.92
Current Ratio (Current Asset/Current Liability)		1.93	2.26	2.44

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	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

PERFORMANCE

The company’s total income has increased from Rs. 3907.755 millions to Rs. 5099.483 millions. The increase was mainly due to the rigorous marketing and the efforts of the management. The profit after tax is Rs.56.056 millions as compared to a profit after tax of Rs.27.438 millions in the previous year.

OUTLOOK

The director anticipates that the company shall increase its turnover and profitability in the current financial year. The company is focusing on the growth of the company and reducing the cost.

UNSECURED LOAN

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Loans and advances from related parties	181.303	50.778
Total	181.303	50.778

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U39611MH1990PTC056881
Name of the company	GOLD STAR JEWELLERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Block ’C’, Plot No. 16 P, 17, 28 and 29 (P), Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India E-mail: legal@goldstarjewellery.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others (Current Assets, Stock, Plant and Machinery.)
Particular of charge holder	State Bank of India, Seepz Branch, Andheri (East), Mumbai – 400096, Maharashtra, India E-mail: sbi.03473@sbi.co.in
Nature of instrument creating charge	Agreement of hypothecation of goods and assets Form C. 2 Letter regarding the grant of individual limits within the overall limit Form C. 5
Date of instrument Creating the charge	28.02.2013
Amount secured by the charge	Rs. 40.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per SBI Guidelines from time to time. Terms of Repayment Repayment on demand. Margin Raw Materials - 10%, Stock in process - 10%, Finished Goods - 10%, Any others (specify) - 10%. Extent and Operation of the charge Security to cover principal amount together with interest, costs, charges and expenses etc. Corporate guarantee to Royal Star Jewellery Private Limited. Others Stand by Limit - Rs. 40.000 millions. All other terms and conditions as per the sanctioned letter and loan agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the present and future goods, books debts and all other moveable assets of the borrower including documents of title to goods, outstanding moneys, receivables including receivables by way of cash assistance and/or cash incentives under the Cash Incentive Scheme or any other Scheme claims including claims by way of refund of customs/excise duties under the Duty Drawback Credit Scheme or any other Scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and right and the present machinery listed in the Schedule hereunto and all future machinery belonging to or in the possession or under the control of the borrower wherever lying stored and kept and whether in possession of the borrower or of the Bank or of any Third party

CONTINGENT LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2012)

1. Contingent liability on account of Bank Guarantees of Rs. 51.500 millions (previous year Rs. 51.500 millions) issued to Nova Scotia Bank for gold procurement on loan basis on behalf of the Company is not accounted for.

2. The company has given third party corporate guarantee in favor of one of its associate concerns, M/s. Diam Star Jewellery (India) Private Limited to the extent of Rs. 470.000 millions, not accounted for.

3. The company has filed an appeal before the Honorable Mumbai High Court against order of Income Tax Tribunal for A.Y. 2002-03. The disputed amount of tax is Rs. 1.853 millions.

4. The company has received a draft Order AY 2008-09 wherein the Income Tax Department proposed additions totaling to Rs.25.000 millions and raised the tax Demand of Rs. 9.595 millions as a consequences of the order of Transfer Pricing Officer u/s 92CA(3) of the IT Act. The company has filed on appeal before Dispute Resolution Panel against said order.

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Factory equipments
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Copyrights, patents and other operating rights

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.55.61
UK Pound	1	Rs.83.98
Euro	1	Rs.71.94

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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.