MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	CARBON CREATION EXPORTS PRIVATE LIMITED (w.e.f. 19.04.2010)
Formerly Known As :	A. KHENI CONSTRUCTIONS PRIVATE LIMITED
Registered Office :	FC-7010, 7^th Floor, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	18.04.2007
Com. Reg. No.:	11-170080
Capital Investment / Paid-up Capital :	Rs.0.100 million
CIN No.: [Company Identification No.]	U74900MH2007PTC170080
PAN No.: [Permanent Account No.]	AAICA1351M
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing of rough diamonds and selling or exporting of polished diamonds.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company possesses a moderate financial profile marked by modest networth base and huge inventory holding period along with slower realizations and high accrued payable leading to weakening the liquidity position. Management has witnessed a better growth in its sales volume, whereas has reported a low profit margin during FY 13. However, trade relations seems to be fair. Business is active. Payment terms are reported as 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20%! Equities came in second with annualized return of 15.5%! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs.10000 mn.

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Lalubhai
Designation :	Accounts Executive
Contact No.:	91-22-40730730
Date :	07.08.2014

LOCATIONS

Registered Office/ Head Office :	FC-7010, 7^th Floor, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-40730730
Fax No.:	91-22-23637498
E-Mail :	General Enquiries: admin@carboncreation.in Sales Enquiries: sales@carboncreation.in mkcoreturn@gmail.com rajhansgroup@rediffmail.com
Website :	http://www.carboncreation.in
Factory 1 :	105, Rajhans Heights, Varachha Road, Surat – 395 006, Gujarat, India
Factory 2 :	Ambika Niwas, Varachha Road, Surat – 395 006, Gujarat, India

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Hiren Kanjibhai Patel

Designation :

Additional Director

Address :

B/86, Trikamnagar 1, L.H. Road, Varachha Road, Surat – 395 006, Gujarat, India

Date of Birth/Age :

25.01.1986

Date of Appointment :

13.01.2010

DIN No.:

02267640

PAN No.:

AWUPP4506G

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	U12000GJ2008PTC053540	MARVELORE MINING AND ALLIED INDUSTRIES PRIVATE LIMITED	Whole-time director	18-08-2012	19-08-2008	-	Active	NO
2	U74900MH2007PTC170080	CARBON CREATION EXPORTS PRIVATE LIMITED	Additional director	13-01-2010	13-01-2010	-	Active	NO
3	U17120GJ2010PTC060470	SHANTI NIKETAN WEAVE TECH PRIVATE LIMITED	Director	19-08-2012	22-11-2010	-	Active	NO
4	U14200MH2008PTC186146	ARCEL MINERALS PRIVATE LIMITED	Director	29-09-2012	10-09-2012	05-02-2014	Active	NO
5	U70102MH2013PTC241102	JAAVI INFRA PRIVATE LIMITED	Director	19-03-2013	19-03-2013	26-06-2013	Active	NO

Name :

Mr. Keyur Himmatbhai Kheni

Designation :

Additional Director

Address :

73, Sadhana Society, Varachha Road, Surat – 395 006, Gujarat, India

Date of Birth/Age :

16.09.1987

Date of Appointment :

13.01.2010

DIN No.:

02128378

PAN No.:

AZKPK5636K

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	U12000GJ2008PTC053540	MARVELORE MINING AND ALLIED INDUSTRIES PRIVATE LIMITED	Managing director	18-08-2012	09-04-2008	-	Active	NO
2	U13209GJ2008PTC053578	RAJHANS MINES AND MINERALS PRIVATE LIMITED	Director	15-04-2008	15-04-2008	-	Under Process of Striking off	NO
3	U45201MH2005PTC156180	HINDVA BUILDERS PRIVATE LIMITED	Director	28-05-2008	28-05-2008	-	Active	NO
4	U40107GJ2008PTC054360	MARVELORE BIO-FUEL (INDIA) PRIVATE LIMITED	Director	01-07-2008	01-07-2008	-	Active	NO
5	U74900MH2007PTC170080	CARBON CREATION EXPORTS PRIVATE LIMITED	Additional director	13-01-2010	13-01-2010	-	Active	NO
6	U45201GJ2004PTC045095	RAJHANS CONSTRUCTIONS PRIVATE LIMITED	Director	01-03-2010	01-03-2010	-	Active	NO
7	U17210GJ2009PTC058134	RIYA TRENDZ PRIVATE LIMITED	Director	06-04-2010	06-04-2010	17-10-2012	Active	NO
8	U17120GJ2010PTC060470	SHANTI NIKETAN WEAVE TECH PRIVATE LIMITED	Director	28-04-2010	28-04-2010	-	Active	NO
9	U15310GJ2010PTC059438	SHANTA G FOODS PRIVATE LIMITED	Director	01-09-2012	01-09-2012	08-03-2014	Active	NO
10	U14200MH2008PTC186146	ARCEL MINERALS PRIVATE LIMITED	Director	29-09-2012	10-09-2012	05-02-2014	Active	NO
11	U70102MH2013PTC241102	JAAVI INFRA PRIVATE LIMITED	Director	19-03-2013	19-03-2013	26-06-2013	Active	NO
12	AAC-4502	WORLD MAGOB HOSPITALITY LLP	Designated Partner	10-07-2014	10-07-2014	-	Active	NO

Name :

Mr. Manish Pravinbhai Kheni

Designation :

Director

Address :

54, Brijkutir, 67, Nepean Sea Road, Walkeshwar, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

24.08.1977

Date of Appointment :

01.04.2012

DIN No.:

00110562

PAN No.:

AJCPJ3115A

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	U45201GJ2004PTC045095	RAJHANS CONSTRUCTIONS PRIVATE LIMITED	Director	07-12-2004	07-12-2004	01-03-2010	Active	NO
2	U70100MH2005PTC155574	HINDVA ESTATE PRIVATE LIMITED	Director	01-11-2006	01-11-2006	31-03-2010	Active	NO
3	U45201MH2005PTC156180	HINDVA BUILDERS PRIVATE LIMITED	Director	01-11-2006	01-11-2006	02-06-2008	Active	NO
4	U45400MH2007PTC170081	SAMAK CONSTRUCTIONS PRIVATE LIMITED	Director	18-04-2007	18-04-2007	18-12-2007	Active	NO
5	U51909MH2007PTC170074	3B SEMICONDUCTORS PRIVATE LIMITED	Director	18-04-2007	18-04-2007	12-08-2010	Active	NO
6	U45400MH2007PTC170075	A. KHENI DEVELOPER PRIVATE LIMITED	Director	18-04-2007	18-04-2007	-	Active	NO
7	U74900MH2007PTC172092	SARDAR MANI SAFE VAULT PRIVATE LIMITED	Director	03-07-2007	03-07-2007	-	Active	NO
8	U74900MH2007PTC170080	CARBON CREATION EXPORTS PRIVATE LIMITED	Director	01-04-2012	01-04-2012	-	Active	NO
9	U70102MH2013PTC241102	JAAVI INFRA PRIVATE LIMITED	Director	19-03-2013	19-03-2013	-	Active	NO

Name :

Mr. Jitesh Manjibhai Patel

Designation :

Director

Address :

C-13, Amrut Villa, Laxman Nagar Society, Varachha Road, Surat – 395 006, Gujarat, India

Date of Birth/Age :

31.07.1977

Date of Appointment :

01.04.2012

DIN No.:

00105490

PAN No.:

AJCPJ3115A

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	U45201GJ2004PTC045095	RAJHANS CONSTRUCTIONS PRIVATE LIMITED	Director	07-12-2004	07-12-2004	01-03-2010	Active	NO
2	U92120GJ2006PTC049677	RAJHANS CINE WORLD Private Limited	Director	07-06-2007	07-06-2007	29-01-2010	Active	NO
3	U45201MH2005PTC156180	HINDVA BUILDERS PRIVATE LIMITED	Director	28-05-2008	28-05-2008	-	Active	NO
4	U40107GJ2008PTC054360	MARVELORE BIO-FUEL (INDIA) PRIVATE LIMITED	Director	01-07-2008	01-07-2008	-	Active	NO
5	U74900MH2007PTC170080	CARBON CREATION EXPORTS PRIVATE LIMITED	Director	01-04-2012	01-04-2012	-	Active	NO

Name :

Mr. Vipulbhai Patel Manjibhai

Designation :

Director

Address :

C-13-14, Laxman Nagar Society, L.H. Road, Surat – 395 006, Gujarat, India

Date of Birth/Age :

04.08.1972

Date of Appointment :

01.04.2012

DIN No.:

02224369

PAN No.:

AJCPJ3115A

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	U45201MH2005PTC156180	HINDVA BUILDERS PRIVATE LIMITED	Director	02-11-2009	02-11-2009	21-12-2009	Active	NO
2	U74900MH2007PTC170080	CARBON CREATION EXPORTS PRIVATE LIMITED	Director	01-04-2012	01-04-2012	-	Active	NO
3	U45400MH2007PTC170075	A. KHENI DEVELOPER PRIVATE LIMITED	Director	21-03-2013	21-03-2013	-	Active	NO
4	U70102MH2013PTC241102	JAAVI INFRA PRIVATE LIMITED	Director	30-11-2013	26-06-2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Lalubhai
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Names of Shareholders	No. of Shares	% of Holding
Keyur Himmatbhai Kheni	2500	25.00
Hiren Kanjibhai Patel	1000	10.00
Manish Kheni	2500	25.00
Vipul Patel	2500	25.00
Jitesh Patel	1500	15.00
Total	10000	100.00

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of manufacturing of rough diamonds and selling or exporting of polished diamonds.
Exports :
Products :	· Polished Diamond
Countries :	· Israel · USA · Hong Kong
Imports :
Products :	· Raw Diamond
Countries :	· Belgium · Hong Kong
Terms :
Selling :	L/C, Cheque and Credit
Purchasing :	L/C, Cheque and Credit

GENERAL INFORMATION

Customers :

Others

No. of Employees :

200 (Approximately)

Bankers :

ING Vysya Bank, BKC Branch

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Term loans from banks	6.139	0.000
Total	6.139	0.000

Banking Relations :	--
Auditors :
Name :	Mehta Kothari and Company Chartered Accountants
Address :	213/215, Jolly Bhavan No.1, 10, New Marine Lines, Mumbai – 400 020, Maharashtra, India
PAN No.:	AAAFM5736F
Sister Concerns :	· M. Kantilal Exports · R. Vipul and Company · Hindva Estate Private Limited · A. Kheni Developer Private Limited · Pinal Diam.

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 million

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	0.100	0.100	0.100
(b) Reserves & Surplus	31.306	16.785	3.393
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	128.195	0.000	0.000
Total Shareholders’ Funds (1) + (2)	159.601	16.885	3.493
(3) Non-Current Liabilities
(a) Long-term borrowings	28.105	0.000	0.130
(b) Deferred tax liabilities (Net)	0.000	0.035	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	15.550	9.350	1.800
Total Non-current Liabilities (3)	43.655	9.385	1.930
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	903.644	998.394	268.065
(c) Other current liabilities	1.885	2.480	0.351
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	905.529	1000.874	268.416
TOTAL	1108.785	1027.144	273.839
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.619	3.498	0.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	8.187	0.795	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)	0.455	0.000	0.000
(d) Long-term Loan and Advances	9.034	4.557	0.000
(e) Other Non-current assets	0.000	0.015	0.024
Total Non-Current Assets	37.295	8.865	0.024
(2) Current assets
(a) Current investments	1.548	0.000	0.000
(b) Inventories	696.490	679.617	264.598
(c) Trade receivables	341.847	267.465	9.036
(d) Cash and cash equivalents	4.372	0.648	0.063
(e) Short-term loans and advances	27.233	70.469	0.118
(f) Other current assets	0.000	0.080	0.000
Total Current Assets	1071.490	1018.279	273.815
TOTAL	1108.785	1027.144	273.839

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1459.831	1373.462	26.062
		Other Income
		TOTAL (A)	1459.831	1373.462	26.062
Less	EXPENSES
		Office Expenses	1431.988	1352.157	20.838
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1431.988	1352.157	20.838 (Including Interest and Depreciation)
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.843	21.305
Less	INTEREST COST (D)		0.628	0.047
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.215	21.258
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.159	0.281
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		22.056	20.977	5.224
Less	TAX (H)		7.535	7.585	1.800
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		14.521	13.392	3.424
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		16.785	3.393	(0.031)
	BALANCE CARRIED TO THE B/S		31.306	16.785	3.393
	EARNINGS IN FOREIGN CURRENCY		1299.098	1329.197	NA
	IMPORTS
		Raw Materials	975.405	1212.993	NA
	TOTAL IMPORTS		975.405	1212.993	NA
	Earnings / (Loss) Per Share (Rs.)		1452.09	1339.23	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.99	0.98	13.14
Net Profit Margin (PBT/Sales)	(%)	1.51	1.53	20.04
Return on Total Assets (PBT/Total Assets}	(%)	2.00	2.04	1.91
Return on Investment (ROI) (PBT/Networth)		0.14	1.24	1.50
Debt Equity Ratio (Total Debt/Networth)		0.18	0.00	0.04
Current Ratio (Current Asset/Current Liability)		1.18	1.02	1.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	3.393	16.785	31.306
Share Application money pending allotment	0.000	0.000	128.195
Net worth	3.493	16.885	159.601
long-term borrowings	0.130	0.000	28.105
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.130	0.000	28.105
Debt/Equity ratio	0.037	0.000	0.176

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	26.062	1373.462	1459.831
		5169.979	6.288

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	26.062	1373.462	1459.831
Profit	3.424	13.392	14.521
	13.14%	0.98%	0.99%

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]	PAN of Proprietor/Partner/Director, if available	Yes
32]	Date of Birth 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.

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Loans and advances from directors	21.966	0.000
Total	21.966	0.000

Notes:

· The registered office of the company has been shifted from 809, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra to the present address w.e.f. 17.04.2013.

· No Charges Exist for Company.

OPERATION:

During the year the company did well. The directors expect that the company will achieve new heights in the ensuing year.

AMALGAMATION:

During the year company has acquired business of Carbon Creation a partnership firm by taking over all its assets and liabilities at its existing carrying value. Company has paid capital a/c balances of all partners of partnership firm as a consideration for amalgamation.

FIXED ASSETS:

· Buildings

· Plant and Equipment

· Vehicles

· Office Equipment

· Computer Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		28

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.