MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	MINI DIAMONDS (INDIA) LIMITED
Formerly Known As :	KINI GEMS PRIVATE LIMITED
Registered Office :	7-A, Nussar House, Ground Floor, Opposite Panchratna Building, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.02.1987
Com. Reg. No.:	042515
Capital Investment / Paid-up Capital :	Rs.34.500 Millions
CIN No.: [Company Identification No.]	L36912MH1987PLC042515
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Suppliers of Diamond Jewellery.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserve of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be 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.

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.

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. Ronish
Designation :	Manager
Contact No.:	91-9820483390
Date :	15.10.2013

LOCATIONS

Registered Office :	7-A, Nussar House, Ground Floor, Opposite Panchratna Building, Opera House, Mumbai – 400004, Maharashtra
Tel. No.:	91-22-23671210/23670940
Mobile No.:	91-9820483390 (Mr. Ronish)
Fax No.:	91-22-23649910
E-Mail :	minidiamonds@yahoo.com info@minidiamonds.net
Website :	www.minidiamonds.net
Location :	Owned
Factory:	G-7 Gems and Jewellery, Complex II, Seepz Sez, Andheri(East) Mumbai – 400096, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :

Mr. Himanshu Kailas Shah

Designation :

Director

Address :

301, Dhavalgiri Gowalia Tank, Nana Chowk, Mumbai – 400036, Maharashtra, India

Date of Appointment :

12.12.1992

PAN No.:

AAFPS3569K

DIN No.:

00410645

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	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Director	12/12/1992	12/12/1992	-	Active	NO
2	U36910MH1991PTC064190	M SURESH EXPORTS PRIVATE LIMITED	Director	04/04/1994	04/04/1994	03/10/2010	Active	NO
3	U36910MH2003PTC141086	ADORA JEWELS (INDIA) PRIVATE LIMITED	Director	27/06/2003	27/06/2003	01/08/2008	Active	NO
4	U27205MH2006PTC163558	C I 2 JEWELLERY PRIVATE LIMITED	Director	04/08/2006	04/08/2006	01/10/2011	Active	NO
5	U36912MH2010PTC201365	MIRRAR JEWELS PRIVATE LIMITED	Director	27/03/2010	27/03/2010	-	Active	NO
6	U36911MH2011PTC216746	NAVVYA JEWELLERY PRIVATE LIMITED	Director	27/04/2011	27/04/2011	-	Active	NO
7	U36912MH2012PTC231285	GOLD LEAF PRIVATE LIMITED	Director	21/05/2012	21/05/2012	-	Active	NO

Name :

Mr. Upendra Narottamdas shah

Designation :

Managing Director

Address :

40A, Atlas Apartments, Nepensea Road, Mumbai – 400006, Maharashtra, India

Date of Appointment :

01.01.2009

PAN No.:

AADPS4593D

DIN No.:

00748451

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	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Managing director	01/01/2009	12/05/1987	-	Active	NO

Name :

Mr. Dilip Jaswant Shah

Designation :

Director

Address :

103, Sorabhji Apartments, Irla Gautam Lane, NTM Marg, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

05.11.1957

Date of Appointment :

29.09.2012

PAN No.:

AACPS3613R

DIN No.:

01114643

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	U99999MH1997PTC109594	EXECUTIVE GEMS PRIVATE LIMITED	Director	24/07/1997	24/07/1997	-	Active	NO
2	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Director	29/09/2012	24/08/2006	-	Active	NO

Name :

Mr. Sameep Bharat Shah

Designation :

Director

Address :

11, Tribhuvan Road, Tinwala Building, 3^rd Floor, Flat – 31, Mumbai – 400004, Maharashtra, India

Date of Birth/Age :

Date of Appointment :

30.09.2011

DIN No.:

03612898

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	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Director	30/09/2011	30/07/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ronish
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Any Others (Specify)	1043300	30.24
Directors/Promoters & their Relatives & Friends	1043300	30.24
Sub Total	1043300	30.24
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1043300	30.24
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	46174	1.34
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2183936	63.30
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	122441	3.55
Any Others (Specify)	54149	1.57
Non Resident Indians	42100	1.22
Hindu Undivided Families	12049	0.35
Sub Total	2406700	69.76
Total Public shareholding (B)	2406700	69.76
Total (A)+(B)	3450000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	3450000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Suppliers of Diamond Jewellery.

Products :

Item Code No.	Product Description
71131900	Artcls of othr Prcs mtl w/n Pltd or clad
71023900	Diamond(Othr Thn Indstrl Diamond)Cut Or Otherwise Worked But Not Mounted Or Set

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Uses

No. of Employees :

Not Divulged

Bankers :

• Central Bank of India, Bhaskar Mansion, 1st Floor, 437, Dr Dadasaheb Marg, Opera House, Mumbai - 400004, Maharashtra, India
• Indian Bank, Overseas Branch, Dr. D.N. Road; Fort, Mumbai, Maharashtra, India
• Corporation Bank
• Mumbai Overseas Branch, Bharart Diamond Bourse, BKC, Mumbai - 400051, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Loans repayable on demand from banks (Personal Gurantees of Directors and Others, Hypothecation of Stocks; Collateral Security - Galas owned by other Gurantors)	25.565	8.949
Total	25.565	8.949

Banking Relations :
Auditors :
Name :	V A Parikh and Associates Chartered Accountants
Address :	7-C Nusser House Ground Floor 20 M P Marg Opp Panchratna Opera House, Mumbai, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFV1452B

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3450000	Equity Shares	Rs.10/- each	Rs. 34.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	34.500	34.500
(b) Reserves & Surplus	6.961	5.365
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	41.461	39.865
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.135	0.049
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.135	0.049
(4) Current Liabilities
(a) Short term borrowings	42.967	41.871
(b) Trade payables	190.592	169.048
(c) Other current liabilities	10.451	0.091
(d) Short-term provisions	0.729	0.995
Total Current Liabilities (4)	244.739	212.005
TOTAL	286.335	251.919
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.061	7.237
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5.544	5.456
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	12.605	12.693
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	18.297	69.649
(c) Trade receivables	249.920	167.218
(d) Cash and cash equivalents	5.399	1.203
(e) Short-term loans and advances	0.016	0.016
(f) Other current assets	0.098	1.140
Total Current Assets	273.730	239.226
TOTAL	286.335	251.919

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		34.500
2] Share Application Money		0.00
3] Reserves & Surplus		3.623
4] (Accumulated Losses)		0.000
NETWORTH		38.123
LOAN FUNDS
1] Secured Loans		35.896
2] Unsecured Loans		0.063
TOTAL BORROWING		35.959
DEFERRED TAX LIABILITIES		0.000
TOTAL		74.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.849
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.072
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	167.156
	Sundry Debtors	215.911
	Cash & Bank Balances	0.051
	Other Current Assets	0.000
	Loans & Advances	5.017
Total Current Assets		388.135
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	310.549
	Other Current Liabilities	3.955
	Provisions	0.470
Total Current Liabilities		314.974
Net Current Assets		73.161
MISCELLANEOUS EXPENSES		0.000
TOTAL		74.082

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	294.487	213.613	181.317
		Other Income	0.038	0.000	0.096
		TOTAL (A)	294.525	213.613	181.413
Less	EXPENSES
		Cost of material consumed	104.401	151.816
		Purchases of stock-in-trade	175.494	36.692
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(8.103)	6.201
		Employee benefit expense	5.829	5.290
		Other expenses	10.358	9.743
		TOTAL (B)	287.979	209.742	178.581
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.546	3.871	2.832
Less	FINANCIAL EXPENSES (D)		3.038	1.147	0.679
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.508	2.727	2.153
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.098	0.399	0.053
	PROFIT BEFORE TAX (E-F) (G)		2.410	2.325	2.100
Less	TAX (H)		0.815	0.582	0.714
	PROFIT AFTER TAX (G-H) (I)		1.595	1.742	1.386
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.365	3.623	2.546
Less	APPROPRIATIONS
		Income Ta w/off (A.Y. 2005-06)	0.000	0.000	0.221
		Income Ta w/off (A.Y. 2007-08)	0.000	0.000	0.088
	BALANCE CARRIED TO THE B/S		6.960	5.365	3.623
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	183.660	132.068	182.771
	TOTAL EARNINGS		183.660	132.068	182.771
	IMPORTS
		Raw Materials	34.022	33.914	182.674
	TOTAL IMPORTS		34.022	33.914	182.674
	Earnings Per Share (Rs.)		0.46	0.51	0.40

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013	30.06.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Audited / UnAudited
Net Sales	52.800	23.500	111.200	248.800	362.100
Total Expenditure	51.500	22.500	109.900	245.000	360.300
PBIDT (Excl OI)	1.300	0.900	1.300	0.3.800	1.800
Other Income	0.000	0.000	0.00	000	0.000
Operating Profit	1.300	0.900	1.300	3.800	1.800
Interest	0.600	0.700	0.800	0.800	1.000
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	0.700	0.300	0.500	3.100	0.800
Depreciation	0.300	0.100	0.100	0.500	0.300
Profit Before Tax	0.400	0.200	0.400	2.600	0.600
Tax	0.000	0.000	0.000	0.800	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	0.400	0.200	0.400	1.700	0.600
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	0.400	0.200	0.400	1.700	0.600

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.54	0.82	0.76
Net Profit Margin (PBT/Sales)	(%)	0.81	1.09	1.16
Return on Total Assets (PBT/Total Assets}	(%)	0.84	0.92	0.54
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.06
Debt Equity Ratio (Total Debt /Networth)		1.04	1.05	0.94
Current Ratio (Current Asset/Current Liability)		1.12	1.13	1.23

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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	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.

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.

MANAGEMENT DISCUSSION AND ANALYSIS:

a) Industry Structure and Developments:

The Indian gems and jewellery industry had witnessed a marginal decline of .36% in F.Y. 2011-2012 owing to the decrease in trading exports of diamonds. The total Gems and jewellery industry exports were recorded at US$ 42839 millions (INR 2048230.000 Millions) in FY 2011-12 as compared to US $ 42995 million (INR 1957350.000 Millions) in April 2010 – March 2011. Though in dollar terms there is marginal drop of 0.36%, the exports mark an increase of 4.6% in rupee value. The gem and jwellery sector accounted for 14% if India’s Total Merchandise exports in FY 2011-2012.

The Growth Sector was primarily driven by Gold Jewellery which registered an increase of 30% in FY – 12. The Exports grew from US$ 12695 million (INR 577476.700 Millions) in 2010-2011 to US$ 16517 million (INR 794302.600 Millions) in 2011-2012.

Cut and polished diamonds (CPD) witnessed a decline of 17.3% with exports decreasing from US$ 28217 million in 2010-2011 to US$ 23329 million in 2011-2012.

Coloured gemstone exports witnessed an increase of 9.10% in dollar terms with sector recording growth from US$ 314.20 million in 2010-2011 to US$ 3472.80 million in 2011-2012.

UAE was the largest exporting destination with 44% of Exports to the market, followed by Hong Kong with 25% and USA with 12% of exports.

An increase in Import figures of rough diamonds indicates stable growth of trade at the manufacturing level and growth in exports.

There has been substantial decline in import of polished diamonds during January to March 2012 more than 70% in a month post introduction of 2% duty on C and PD. In the annual figure the decline is 30% in 2011-12 in comparison to previous year. It is expected that total Import of polished diamonds at US$ 14.3bn in 2011-12 may eventually come down significantly in 2012-13.

FUTURE OUTLOOK:

As industry survey stated, there has been a slowdown in the economy specially in the developed economies and it may continue for sometime due to demand contraction in the developed markets such as the US and the European Union,. However, very recent figures and increase in consumer confidence across globe have boosted the industry confidence and experts are hoping for quick revival of consumer demand and growth in industry. All India Gem and Jewellery Trade Federation (GJF) are targeting growth from US $ 16.79 billion to US $ 26.23 billion by the year 2012.

India possesses the world's most competitive gems and jewellery market due to its low cost of production and availability of skilled labour. As per the new research report “Indian Gems and Jewellery Market - Future Prospects to 2011”, highly skilled and low cost manpower, along with strong government support in the form of incentives and establishment of SEZs, has been the major driver for the Indian gems and jewellery market. The market also plays a vital role in the Indian economy as it is a leading foreign exchange earner and accounts for more than 12% of India’s total exports. Currently the Indian market remains highly fragmented, but is rapidly transforming into an organized sector.

The Indian Diamond Industry is witnessing a divergent trend in the demand for cut and polished diamonds and maintaining its Global Presence.

The Jewellery Industry is also having its presence felt in the local as well as global market. The new Government and its economic policies will have an impact on the economic reforms and also on the Gem and Jewellery Industry. The Rupees / Dollar fluctuations is having a lot of impact on the performance of the industry and continues to do so in future also because the exports are linked to dollar. The overall demand in the world market is excellent but due to problems faced by the U.S. economy the demand will be sluggish until and unless there is improvement in the oil price. Revaluation of Yuan of China will have cost bearing effect in the labour market. This will open up the market for Indian Diamond and Jewellery and increase its presence. The cash flow of the company is very encouraging with the significant growth in terms of turnover as well as profitability. Currently, the industry is facing a slowdown due to global economic turmoil. But due to various government efforts and incentives coupled with private sector initiatives, the Indian gems and jewellery sector is expected to grow at a CAGR of around 14% from 2009 to 2012. At present, the Indian gems and jewellery market is dominated by the unorganized sector; however, the trend is set to change in near future with the branded jewellery market growing at an expected CAGR of more than 41% in the coming four years.

The outlook for the Industry and consequently for the Company during the current financial year is reasonably good, subject however, to the effects of prevailing disturbed scenario in the different parts of the world. The Company is putting a lot of efforts to strengthen its financial position by increasing its working capital so as to expand its operations and export business. In view of the demand for Cut and Polished Diamonds and Diamond Studded Jewellery there is a continuous, growth in diamond business. There is enough potential in the Indian and

Overseas market for the Companies engaged in diamond trade and export. The Company's policy is to maintain goodwill in the market and flawless perfection at all levels. Customer's satisfaction is the top most priority.

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Loans and advances from director	17.402	32.922
Total	17.402	32.922

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10324737	08/03/2013 *	70,000,000.00	CORPORATION BANK	MUMBAI OVERSEAS BRANCH, BHARART DIAMOND BOURSE, BKC, MUMBAI, MAHARASHTRA - 400051, INDIA	B74375601

Note: * Date of charge modification

FIXED ASSETS

Tangible assets

• Plant and equipment
• Furniture and fixtures
• Office equipment
• Computer equipments
• Other equipments

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.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.