MIRA INFORM REPORT

Report Date :

19.08.2014

IDENTIFICATION DETAILS

Name :	SIM JEWELLERY PRIVATE LIMITED
Registered Office :	207, Shree Hari Building, Opposite Saryu Jada Khadi, Mahidharpura, Surat – 395003, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.06.2006
Com. Reg. No.:	04-048395
Capital Investment / Paid-up Capital :	Rs. 0.200 Million
CIN No.: [Company Identification No.]	U52393GJ2006PTC048395
TAN No.: [Tax Deduction & Collection Account No.]	SRTS06514E
PAN No.: [Permanent Account No.]	AAJCS9599Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of diamond necklaces, bangles, rings, earring, nose pin etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 19000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company seems to be low during 2013. However, trade relations are reported as fair. Business is active. Payment terms are 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

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 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 DECLINED BY

Name :	Mr. Manish
Designation :	Manager
Contact No.:	91-9310059600
Date :	18.08.2014

LOCATIONS

Registered Office :	207, Shree Hari Building, Opposite Saryu Jada Khadi, Mahidharpura, Surat – 395 003, Gujarat, India
Tel. No.:	91-261-2431105/ 3024599
Mobile No.:	91-989857600 (Mr. Rajendra Fatehchand Sethia)
Fax No.:	91-261-3024599
E-Mail :	rbksurat@gmail.com mcs_bhopal@rediffmail.com
Overseas Office :	2246 Maccabi Building, 1 Jabotinsky street, Ramat Gan 52520, Israel
Tel. No.:	+972 3 575 2352
Fax No.:	+972 3 5752351
E-Mail :	telaviv@simjewellery.in

DIRECTORS

As on 30.09.2013

Name :

Mr. Rajendra Fatehchand Sethia

Designation :

Director

Address :

6/2154, 1882-84, Sajanand Chamber No.2, Office No.4, 2^nd Floor, Pipla Sheri, Mahiderpura, Surat – 395003, Gujarat, India

Date of Birth/Age :

03.07.1984

Date of Appointment :

06.06.2006

DIN No.:

00238879

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	U52393GJ2006PTC048395	SIM JEWELLERY PRIVATE LIMITED	Director	06-06-2006	06-06-2006	-	Active	NO
2	U72200WB2000PLC091419	DSL TECHNOLOGIES LIMITED	Director	01-01-2009	01-01-2009	10-02-2011	Active	NO

Name :

Mr. Paraskumar Sunderlal Sethia

Designation :

Director

Address :

B/73, Ram Krishna Society, 2^nd Floor, L.H. Road, Surat – 395005, Gujarat, India

Date of Birth/Age :

19.07.1964

Date of Appointment :

08.05.2009

DIN No.:

02650025

KEY EXECUTIVES

Name :	Mr. Manish
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Rajendra Sethia	5000
Jitesh Bothra	5000
Rajendra Sethia HUF	9480
Anju Sethia	200
Raj Kumar Jain	100
Nem Chand Tater	100
Laxmi Devi Tater	100
Raja Sethi	10
Raj Kumar Kochar	10
Total	20000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	98.40
Other top fifty shareholders	1.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of diamond necklaces, bangles, rings, earring, nose pin etc.

GENERAL INFORMATION

Suppliers :

· Ankit Gems Private Limited

Barcodiam Limited

M.K. Diam Company Limited

Amar Jewellers Limited

Naman Gems

Bardia Gems

Barmecha and Impex Private Limited

Sankalp Diam Exports

Chopra Gems

Manibhadra Diam Jewel

Customers :

· Albion Consulting Private Limited

Indulge Jewels

La Solitaire Jewels Private Limited

Nikkamal Jewellers Private Limited

Niru (NY) Limited

Spring Business Solution Private Limited

Vishal Impex

Sky Gems

Sai Ram Gems and Jewellers

Shree Nath Diamonds

No. of Employees :

Not Divulged

Bankers :

· ICICI Bank Limited

Kotak Mahindra Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loan - Banks
Rupee – ICICI Bank Car Loan	0.293	0.538
Total	0.293	0.538

Banking Relations :	--
Auditors :
Name :	S. Kumar Rakhecha and Company Chartered Accountants
Address :	3018-19, Trade House, Opposite Fire Brigade, Ring Road, Surat – 395002, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	ABTPR7384N
Group Company :	Sim Diam Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.10/- each	Rs. 0.200 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	0.200	0.200	0.200
(b) Reserves & Surplus	3.516	0.023	(2.773)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	1.092	1.092	0.442
Total Shareholders’ Funds (1) + (2)	4.808	1.315	(2.131)
(3) Non-Current Liabilities
(a) long-term borrowings	4.042	3.683	10.640
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	4.042	3.683	10.640
(4) Current Liabilities
(a) Short term borrowings	1.170	(1.552)	0.568
(b) Trade payables	323.099	253.498	86.416
(c) Other current liabilities	0.000	0.000	0.002
(d) Short-term provisions	1.602	0.980	0.401
Total Current Liabilities (4)	325.871	252.926	87.387
TOTAL	334.721	257.924	95.896
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.804	1.604	0.811
(ii) Intangible Assets	0.063	0.052	0.058
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.065	0.016	0.000
(d) Long-term Loan and Advances	50.827	0.657	0.000
(e) Other Non-current assets	0.013	0.018	0.000
Total Non-Current Assets	52.772	2.347	0.869
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	140.134	114.404	44.713
(c) Trade receivables	140.380	140.124	49.090
(d) Cash and cash equivalents	0.412	0.163	0.286
(e) Short-term loans and advances	1.023	0.859	0.402
(f) Other current assets	0.000	0.027	0.536
Total Current Assets	281.949	255.577	95.027
TOTAL	334.721	257.924	95.896

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	776.521	NA	218.753
Less	EXPENSES
		TOTAL	772.247	NA	217.358
	PROFIT/ (LOSS) BEFORE TAX		4.274	NA	1.395
Less	TAX		0.781	NA	0.000
	PROFIT/ (LOSS) AFTER TAX		3.493	2.796	1.395
	EARNINGS IN FOREIGN CURRENCY		0.000	130.497	US $ 2462407.88
	Earnings / (Loss) Per Share (Rs.)		174.65	139.79	69.75

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.45	NA	0.64
Return on Total Assets (PBT/Total Assets}	(%)	1.28	NA	1.45
Return on Investment (ROI) (PBT/Networth)		0.89	NA	(0.65)
Debt Equity Ratio (Total Debt/Networth)		1.08	1.62	(5.26)
Current Ratio (Current Asset/Current Liability)		0.87	1.01	1.09

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	0.200	0.200	0.200
Reserves & Surplus	(2.773)	0.023	3.516
Share Application money pending allotment	0.442	1.092	1.092
Net worth	(2.131)	1.315	4.808
long-term borrowings	10.640	3.683	4.042
Short term borrowings	0.568	(1.552)	1.170
Total borrowings	11.208	2.131	5.212
Debt/Equity ratio	(5.260)	1.621	1.084

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two 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	Yes
18]	Major customers	Yes
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	No
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.

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Loans and Advances from Related Parties
Other – Anju Sethia	0.077	0.070
Others
Nem Chand Tater	0.752	0.679
Prabhat Sethi	0.265	0.000
Raaja Sethi	0.307	0.000
Raj Kumar Jain	0.277	0.250
Raj Kumari Kochar	0.686	0.619
Laxmi Devi Tater	1.385	1.250
Raaja Sethi (Loan A/c)	0.000	0.277
SHORT TERM BORROWINGS
Loans repayable on demand
Banks – ICICI Bank A/c No.3510	1.170	(1.552)
Total	4.919	1.593

FIXED ASSETS

Tangible Assets

· Office Equipments

· Air Conditioner

· Computer Equipments

· Other Equipments

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Computer Software

· Brands/ Trade Marks

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.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	MRI

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	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	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		27

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.