MIRA INFORM REPORT

Report Date :

09.08.2014

IDENTIFICATION DETAILS

Name :	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED
Registered Office :	CC-9010A, 'C' Tower, Central Wing, 9^th Floor, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.04.2007
Com. Reg. No.:	11-169725
Capital Investment / Paid-up Capital :	Rs. 337.100 Millions
CIN No.: [Company Identification No.]	U36996MH2007PTC169725
TAN No.: [Tax Deduction & Collection Account No.]	MUMA29978E
PAN No.: [Permanent Account No.]	AAGCA2472D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Seller and Trader of Rough and Polished Diamonds.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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 an established company having satisfactory track record. There seems some dip in the turnover of the company during 2013 however net worth of the company is satisfactory general financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. 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 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

N E W S

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 their 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 tat 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “BBB”
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	August, 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 DECLINED BY

Name :	Mr. Ganapathy
Designation :	Finance Head
Contact No.:	91-22-40404444
Date :	08.08.2014

LOCATIONS

Registered Office :	CC9010A, 'C' Tower, Central Wing, 9^th Floor, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India
Tel. No. :	91-22-40404444
Fax No. :	Not Available
E-Mail :	jjshahca@hotmail.com accounts@bluestardiamonds.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Anuj Vasantlal Mehta

Designation :

Director

Address :

Cliff, 14th Floor, 259, B. G. Kher Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

03.10.1955

Date of Appointment :

05.04.2007

PAN No.:

AACPM1675R

DIN No. :

00059854

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U63030MH1994PTC076959	AURO TRAVELS (INDIA) PRIVATE LIMITED	Director	17-03-1994	17-03-1994	Strike off	NO
2	U65990MH1994PTC082435	GLOSSY FINANCIAL SERVICES CONSULTANCY PRIVATE LIMITED	Director	21-01-1995	21-01-1995	Active	NO
3	U74900MH1995PTC086993	AUROSTAR JEWELLERY (INDIA) PRIVATE LIMITED	Director	30-03-1995	30-03-1995	Active	NO
4	U36911MH1995PTC090712	BESSAR DIAMONDS PRIVATE LIMITED	Director	18-07-1995	18-07-1995	Amalgamated	NO
5	U65993MH2006PTC165505	BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED	Director	13-11-2006	13-11-2006	Active	NO
6	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	05-04-2007	05-04-2007	Active	NO
7	U36912MH2007PTC172418	ARISIA JEWELLERY PRIVATE LIMITED	Director	17-07-2007	17-07-2007	Active	NO
8	U45201GJ2004PTC044084	AKSHAR INFRASTRUCTURE PRIVATE LIMITED	Director	31-12-2007	31-12-2007	Active	NO
9	U36911MH2008PTC188710	BLUE STAR DIAMONDS PRIVATE LIMITED	Director	01-04-2009	05-12-2008	Active	NO

Name :

Mr. Arnav Akshay Mehta

Designation :

Director

Address :

10, Kamal Mahal, 17, M.L. Dahanukar Marg, 5th Floor, Car Micheal Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.01.1983

Date of Appointment :

05.04.2007

PAN No. :

AANPM5772G

DIN No. :

00142488

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	U36911MH1995PTC090712	BESSAR DIAMONDS PRIVATE LIMITED	Director	10-04-2006	10-04-2006	-	Amalgamated	NO
2	U74900MH1995PTC086993	AUROSTAR JEWELLERY (INDIA) PRIVATE LIMITED	Director	15-06-2006	15-06-2006	-	Active	NO
3	U45203PY2006PTC002002	AURO DEVELOPERS PRIVATE LIMITED	Director	06-11-2006	06-11-2006	-	Active	NO
4	U65993MH2006PTC165505	BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED	Director	13-11-2006	13-11-2006	-	Active	NO
5	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	05-04-2007	05-04-2007	-	Active	NO
6	U36912MH2007PTC172418	ARISIA JEWELLERY PRIVATE LIMITED	Director	17-07-2007	17-07-2007	-	Active	NO
7	U45201GJ2004PTC044084	AKSHAR INFRASTRUCTURE PRIVATE LIMITED	Director	31-12-2007	31-12-2007	-	Active	NO
8	U36911MH2008PTC188710	BLUE STAR DIAMONDS PRIVATE LIMITED	Director	01-04-2009	05-12-2008	-	Active	NO
9	U36912GJ2010PTC062006	ADMG DIAMOND PRIVATE LIMITED	Director	17-08-2010	17-08-2010	-	Active	NO
10	U36912GJ2010PTC062686	PADMAVATI DIAM PRIVATE LIMITED	Director	04-12-2010	04-12-2010	02-05-2012	Active	NO
11	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING(INDIA) LIMITED.	Director	26-09-2013	26-09-2013	-	Active	NO
12	AAA-2285	BLACK BRYONT REALTORS LLP	Designated Partner	21-03-2012	21-03-2012	-	Active	NO

Name :

Mr. Ashit Vasantlal Mehta

Designation :

Director

Address :

Della Faillelaan, 19, Antwerpen, 2020

Date of Birth/Age :

29.04.1957

Date of Appointment :

30.09.2008

DIN No. :

01785632

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	30-09-2008	21-11-2007	Active	NO
2	U45201GJ2004PTC044084	AKSHAR INFRASTRUCTURE PRIVATE LIMITED	Director	31-12-2007	31-12-2007	Active	NO
3	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING(INDIA) LIMITED	Managing director	02-04-2011	03-11-2010	Active	NO

Name :

Mr. Arpan Ashit Mehta

Designation :

Director

Address :

Della Faillelaan, 19, Antwerpen, 2020

Date of Birth/Age :

17.08.1988

Date of Appointment :

30.09.2010

DIN No. :

02830860

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	30-09-2010	23-11-2009	Active	NO
2	U65993MH2006PTC165505	BLUE STAR INVESTMENTS AND FINANCIAL SERVICE PRIVATE LIMITED	Director	30-09-2010	15-12-2009	Active	NO
3	U36912GJ2010PTC062006	ADMG DIAMOND PRIVATE LIMITED	Director	15-12-2010	15-12-2010	Active	NO
4	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING(INDIA) LIMITED.	Director	26-09-2013	26-09-2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Kunal Suresh Karsia
Designation :	Secretary
Address :	A/404, Bijlee Apartment, Devchand Nagar Road, Bhayander (West), Thane – 401101, Maharashtra, India
Date of Birth/Age :	09.09.1985
Date of Appointment :	01.01.2013
PAN No.:	BCEPK2945P
Name :	Mr. Ganapathy
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Akshay Vasantlal Mehta	150000
Anuj Vasantlal Mehta	150000
Arnav Akshay Mehta	214000
Smita Akshay Mehta	214000
Rina Anuj Mehta	214000
Anshul Anuj Mehta	214000
Arjav Diamonds NV, Belgium	32426000
Akshay Vasantlal Mehta (Karta of Akshay Mehta (HUF))	64000
Anuj Vasantlal Mehta (Karta of Anuj Mehta (HUF))	64000
Total	33710000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	96.19
Directors or relatives of Directors	3.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Seller and Trader of Rough and Polished Diamonds.

Products :

Item Code No. (ITC Code)	Product Description
99612960	Electricity generation through wind mills

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Andra Bank Limited, S. No. E-4, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

ICICI Bank Limited, Trans Trade Centre,, Seepz, Midc, Andheri (East), Mumbai - 400093, Maharashtra, India

Bank of India, Opera House Branch, Hermes House, Mama Parmanand Marg, Mumbai - 400004, Maharashtra, India

Standard Chartered Bank, Abhijeet Ii, Gr. Floor, Near Mithakali Six Road, Ahmedabad - 380006, Gujarat, India

Axis Bank Limited, Corporate Banking Br., Bombay Dyeing Mills Compound, Ground Floor, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

ABN Amro Bank N. V., 74, Sakhar Bhavan, 7^th Floor, Nariman Point,, Mumbai - 400021, Maharashtra, India

Central Bank of India, IFB Branch, Ground Floor, Chandermukhi, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks (Fixed Assets i.e. Buildings, Surat Factory, Current Assets, Fixed Deposits, Personal and Corporate Guarantee.)	6947.443	6289.566
Total	6947.443	6289.566

Banking Relations :	--
Financial Institution:	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	Sampat Mehta and Associates Chartered Accountants
Address :	B-501 / 50211, Sarvoday, Western Express Highway, Bandra (East), Mumbai – 400051, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFS1266J
Holding company:	Arjav Diamonds NV, Belgium
Associate:	Amdiam NV
Subsidiary company:	Akshar Infrastructure Private Limited CIN No.: U45201GJ2004PTC044084
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	· ADMG Diamond Private Limited CIN No.: U36912GJ2010PTC062006 Blue Star Diamonds Private Limited CIN No.: U36911MH2008PTC188710 Auro Manufacturing Private Limited CIN No.: U36912GJ2007PTC050022 Aurostar Jewellery (India) Private Limited CIN No.: U74900MH1995PTC086993 Surat Rough Diamond Sourcing (India) Limited. CIN No.: U36912GJ2010PLC062808 Blue Star Investments and Financial Service Private Limited CIN No.: U65993MH2006PTC165505 Blue Star Diamonds (HK) Limited Arjav Diamonds (ME) LLC Antwerp Star Diamonds NV Blue Star Diamonds Botswana (Proprietary) Limited Arjav Manufacturing NV Aurosons Arjav Associates NV

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
55,000,000	Equity Shares	Rs.10/- each	Rs. 550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33,710,000	Equity Shares	Rs.10/- each	Rs. 337.100 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	337.100	149.800	290.800
(b) Reserves & Surplus	3,858.607	2,909.602	2,497.913
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	975.997	160.000
Total Shareholders’ Funds (1) + (2)	4,195.707	4,035.399	2,948.713
(3) Non-Current Liabilities
(a) long-term borrowings	63.062	52.754	52.871
(b) Deferred tax liabilities (Net)	82.583	11.581	16.669
(c) Other long term liabilities	6.083	0.000	0.000
(d) long-term provisions	0.571	1.013	1.760
Total Non-current Liabilities (3)	152.299	65.348	71.300
(4) Current Liabilities
(a) Short term borrowings	6,947.443	6,289.566	2,130.534
(b) Trade payables	5,804.342	5,143.559	3,825.738
(c) Other current liabilities	27.837	49.702	1.489
(d) Short-term provisions	0.050	0.000	0.000
Total Current Liabilities (4)	12,779.672	11,482.827	5,957.761
TOTAL	17,127.678	15,583.574	8,977.774
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,018.601	509.981	266.622
(ii) Intangible Assets	0.045	0.074	0.131
(iii) Capital work-in-progress	0.000	634.886	306.688
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	74.013	55.668	55.010
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	544.223	442.399	384.707
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1,636.882	1,643.008	1,013.158
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3,390.474	3,479.549	3,667.712
(c) Trade receivables	9,457.110	7,702.668	3,345.164
(d) Cash and cash equivalents	1,033.357	1,219.329	319.940
(e) Short-term loans and advances	1,609.855	1,539.020	631.800
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	15,490.796	13,940.566	7,964.616
TOTAL	17,127.678	15,583.574	8,977.774

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	17915.493
		Other Income	NA
		TOTAL	NA	22101.399	10601.109
Less	EXPENSES
		TOTAL	NA	21659.057	10445.196
	PROFIT/ (LOSS) BEFORE TAX		NA	442.342	155.913
Less	TAX		NA	143.913	27.872
	PROFIT/ (LOSS) AFTER TAX		293.760	298.429	128.041
	EARNINGS IN FOREIGN CURRENCY		14257.515	15771.945	7580.715
	Earnings / (Loss) Per Share (Rs.)		8.71	19.92	4.40

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	1.35	1.21
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.97	1.81
Return on Investment (ROI) (PBT/Networth)		NA	0.11	0.05
Debt Equity Ratio (Total Debt/Networth)		1.67	1.57	0.74
Current Ratio (Current Asset/Current Liability)		1.21	1.21	1.34

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	290.800	149.800	337.100
Reserves & Surplus	2497.913	2909.602	3858.607
Share Application money pending allotment	0.000	975.997	0.000
Net worth	2,788.713	4,035.399	4,195.707
Long-term borrowings	52.871	52.754	63.062
Short term borrowings	2130.534	6289.566	6947.443
Total borrowings	2,183.405	6,342.320	7,010.505
Debt/Equity ratio	0.783	1.572	1.671

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

.

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.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10399624	07/01/2013	8,640,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BA LLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B66371352

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	26.528	16.100
Loans and advances from others	36.430	36.550
Other loans and advances, others	0.104	0.104
Total	63.062	52.754

CHANGE OF ADDRESS

The registered office of the company has been shifted from 314, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India to the present address w.e.f. 26.08.2013.

GENERAL INFORMATION ABOUT COMPANY

The Company was incorporated upon conversion of erstwhile firm Arjav Diamonds (India) into a private limited company under provisions of the Part IX of the Companies Act, 1956 with effect from April 5, 2007 vide certificate of incorporation No U36996MH2007PTC169725 issued by the Registrar of Companies, Maharashtra, Mumbai. Upon conversion the Company has taken over all the assets and liabilities of the erstwhile firm at its respective book value as on April 4, 2007 and issued Equity Shares to the Partners of the firm in lieu of their Fixed / Current capital in the firm.

With effect from April 1, 2009 Bessar Diamonds Private Limited, a Company registered under the Companies Act, 1956 having certification of incorporation no. U36911MH1995PTC090712 amalgamated into the Company vide order No. 363 and 364 dated September 24, 2010 of the Honourable High Court of Mumbai. Due to limitation of time this order was expired and was re validated with effect from February 8, 2012.

The Company is predominantly engaged in trading / manufacturing and sales of rough and polished diamonds.

FIXED ASSETS

v Tangible Assets

Buildings

Plant and equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

v Intangible Assets

Computer Software

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.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	4
--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		45

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.