MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	GOLD STAR CENTOQUATTRO JEWELLERY PRIVATE LIMITED
Registered Office :	G-40, Gem and Jewellery Complex – III, Seepz Andheri (East), Mumbai – 400096
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.04.2008
Com. Reg. No.:	11-181759
Capital Investment / Paid-up Capital :	Rs. 25.000 Millions
CIN No.: [Company Identification No.]	U27205MH2008PTC181759
TAN No.: [Tax Deduction & Collection Account No.]	MUMG13276E
PAN No.: [Permanent Account No.]	AADCG1446Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Studded Gold Jewellery.
No. of Employees :	Group 1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between “GOLD STAR GROUP” and “GYPSOPHILIS LIMITED (ITALIAN). It is an established company having satisfactory track record. External borrowing of the company appears to be increasing over previous year. However, general financial position of the company reported to fair. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	19.09.2013

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. Shekhar
Designation :	Credit Collection
Contact No.:	91-22-66947000
Fax No,:	91-22-28291257
Date :	16.10.2013

LOCATIONS

Registered Office :	G-40, Gem and Jewellery Complex – III, Seepz Andheri (East), Mumbai – 400096, India
Tel. No.:	91-22-66947000
Fax No.:	91-22-28291257
E-Mail :	legal@goldstarjewellery.com
Website :	http://www.goldstarjewellery.com

DIRECTORS

As on: 26.09.2012

Name :	Mr. Ashish Vinod Shah
Designation :	Director
Address :	19/2, Suvarna Nagar, Soc Soni House, NSRD No.2, JVPD Scheme, Vile Parle West, india
Date of Birth/Age :	04.05.1970
Date of Appointment :	06.07.2009
DIN No.:	00007729
Name :	Mr. Vikram Mohandra Advani
Designation :	Director
Address :	1/44, Nanik Nivas, 91, B Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	23.05.1967
Date of Appointment :	06.07.2009
DIN No.:	00012126

KEY EXECUTIVES

Name :	Mr. Shekhar
Designation :	Credit Collection

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 26.09.2012

Names of Shareholders	No. of Shares
Ashish Vinod Shah	495000
Sanjay Satish Shah	4998
Gypsophilis Limited, Cyprus	490000
Satish Ratilal Shah	1
Hansaben Satish Shah	1510001
Total	2500000

Equity Share Break up (Percentage of Total Equity)

As on: 26.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	19.60
Other top fifty shareholders	80.40
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Studded Gold Jewellery.
Exports :
Products :	· Raw material
Countries :	· USA · Europe countries · Far East
Imports :
Countries :	· USA · Hong Kong · Belgium

GENERAL INFORMATION

No. of Employees :

Group 1000 (Approximately)

Bankers :

Bank of India, Seepz Mid Corporate Br, Behind Seepz Service Centre, Marol Industrial Area, Seepz,, Mumbai - 400096, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short term borrowings
From banks	74.844	99.964
Total	74.844	99.964

Banking Relations :	--
Auditors :
Name :	B J Shah and Associates Chartered Accountants
Address :	A-203, Modern Apartment, Garden Lane, L.B.S. Marg, Ghatkoper (West), Mumbai – 400086, Maharashtra, India
PAN No.:	AAHPS5959D
Associates:	Goldstar Jewellery Private Limited Gold star Jewellery Designer Private Limited

CAPITAL STRUCTURE

As on: 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	25.000	9.900	9.900
(b) Reserves & Surplus	34.488	13.486	8.181
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	59.488	23.386	18.081
(3) Non-Current Liabilities
(a) long-term borrowings	104.659	51.930	107.075
(b) Deferred tax liabilities (Net)	3.211	0.000	0.000
(c) Other long term liabilities	5.843	99.776	8.469
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	113.713	151.706	115.544
(4) Current Liabilities
(a) Short term borrowings	75.501	100.650	78.223
(b) Trade payables	70.154	79.553	63.501
(c) Other current liabilities	1.037	0.454	0.255
(d) Short-term provisions	1.700	1.142	0.643
Total Current Liabilities (4)	148.392	181.799	142.622
TOTAL	321.593	356.891	276.247
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	34.480	36.249	37.245
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.808	0.661	0.436
(e) Other Non-current assets	2.640	0.644	1.156
Total Non-Current Assets	38.928	37.554	38.837
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	107.604	102.621	105.526
(c) Trade receivables	136.968	190.580	107.928
(d) Cash and cash equivalents	20.016	17.925	18.544
(e) Short-term loans and advances	18.077	8.211	5.402
(f) Other current assets	0.000	0.000	0.010
Total Current Assets	282.665	319.337	237.410
TOTAL	321.593	356.891	276.247

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	667.299	531.088	373.943
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	641.496	525.783	367.582
	PROFIT BEFORE TAX		25.803	5.305	6.361
Less	TAX		4.801	0.000	0.000
	PROFIT AFTER TAX		21.002	5.305	6.361
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB basis)	577.731	524.789	358.359
	TOTAL EARNINGS		577.731	524.789	358.359
	IMPORTS
		Raw Materials	157.688	179.922	76.610
		Stores & Spares	0.025	0.056	1.258
		Capital Goods	0.269	0.000	0.000
	TOTAL IMPORTS		157.982	179.978	77.868
	Earnings Per Share (Rs.)		8.40	5.36	6.42

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.15	0.99	1.70
Return on Total Assets (PBT/Total Assets}	(%)	8.02	1.49	2.31
Return on Investment (ROI) (PBT/Networth)		0.43	0.22	0.35
Debt Equity Ratio (Total Debt/Networth)		3.02	6.52	10.25
Current Ratio (Current Asset/Current Liability)		1.91	1.76	1.67

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
From parties	104.659	51.930
Short term borrowings
Bank overdraft	0.657	0.686
Total	105.316	52.616

NOTE: The registered office address of the company has been shifted from Plot No.8, Western Industrial Estate, Cepz, Opposite Seepz Main Gate, Andheri East, Mumbai, India to present w.e.f. 01.05.2009

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.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10388981	02/11/2012	20,000,000.00	BANK OF INDIA	SEEPZ MID CORPORATE BR, BEHIND SEEPZ SERVICE CENTRE , MAROL INDUSTRIAL AREA, SEEPZ, MUMBAI, MAHARASHTRA - 400096, INDIA	B62955299
2	10209852	22/03/2010	80,000,000.00	BANK OF INDIA	SEEPZ BRANCH,MIDC SEEPZ, ANDHERI-WEST, MUMBAI, MAHARASHTRA - 400096, INDIA	A82187410

FIXED ASSETS

· Plant and Machinery

· Factory Civil Work

· Furniture and Fixture

· Office Equipment

· Computer

· Electrical Fitting

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. 61.58
UK Pound	1	Rs. 98.51
Euro	1	Rs. 83.49

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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		42

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.