MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	BHADIYADRA GEMS
Registered Office :	1, Shreeji Plaza, 1^st Floor, Tata Road No. 1, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.01.1993
Capital Investment / Paid-up Capital :	Rs. 112.989 Millions
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAFB1561H
Legal Form :	Partnership Concern with an unlimited liability of the partners.
Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
No. of Employees :	950 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of experienced promoters, the company can be considered 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = “B+”
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	July 01, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = “A4”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	July 01, 2014.

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

Name :	Mr. Sunil Nilwate
Designation :	Accounts Manager
Contact No.:	91-22-23694461
Date :	11.12.2014

LOCATIONS

Registered Office :	1, Shreeji Plaza, 1^st Floor, Tata Road No. 1, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23694461
Mobile No.:	91-9819897971 (Mr. Mukesh R. Bhadiyadra)
Fax No.:	91-22-40040406
E-Mail :	bhadiyadragems@gmail.com
Location :	Owned
Factory :	1^st Floor, Siddeshwar Building, Near Siddhkutir, Kapodra, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-3261766
Fax No.:	91-261-2574157
Location :	Owned
Sales Office :	Located At : Mumbai, Maharashtra, India

PARTNERS

Name :	Mr. Mukesh R. Bhadiyadra
Designation :	Partner
Address :	205, 2^nd Floor, Mankar House, Dhus Wadi, Zhawba Wadi, Thakurdwar, Mumbai – 400002, Maharashtra, India
Date of Birth/Age :	01.04.1972
Qualification :	SSC
Experience :	21 Years
Name :	Mr. Dhiraj R. Bhadiyadra
Designation :	Partner
Address :	B-23/24, Sai Ashish Society, 2 Near Chandni Chowk, Piplod, Surat – 395006, Gujarat, India
Date of Birth/Age :	01.06.1977
Qualification :	HSC
Experience :	16 Years
Voter ID No.:	THP3027679
Name :	Mr. Jitesh B. Kajavadra
Designation :	Partner
Address :	60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	12.12.1982
Qualification :	HSC
Experience :	11 Years
Name :	Mr. Sanjay B. Kajavadra,
Designation :	Partner
Address :	60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	11.01.1981
Qualification :	HSC
Experience :	12 Years
Voter ID No.:	UGH1450733
Name :	Mr. Bhagvan K. Kajavadra
Designation :	Partner
Address :	60, Panchdev Society, Behind Shirdidham Society, Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	03.08.1953
Qualification :	SSC
Experience :	36 Years

KEY EXECUTIVES

Name :	Mr. Sunil Nilwate
Designation :	Accounts Manager
Name :	Mr. Piyush
Designation :	Accounts Department

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Cut and Polished Diamonds
Countries :	USA Hong Kong Belgium UAE Israel Sri Lanka
Imports :
Products :	Rough and Polished Diamonds
Countries :	Belgium UAE USA Hong Kong
Terms :
Selling :	Credit (30, 60 and 90 Days)
Purchasing :	Credit (30, 60 and 90 Days)

GENERAL INFORMATION

Suppliers :	Genesis Diamond BVBA – Belgium
Customers :	Kil International – Hong Kong Prime Gems – Thailand
No. of Employees :	950 (Approximately)
Bankers :	ICICI Bank Limited, 396/410, Shamitha Terrace, Lamington Road, Opera House, Mumbai, Maharashtra, India
Facilities :	--

Auditors :
Name :	Rajpara and Company Chartered Accountant
Tel. No.:	91-261-2544446/2548601
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As On 31.03.2014

Capital Investment :
Owned :	Rs. 112.989 Millions
Borrowed :	--
Total :	Rs. 112.989 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner’s Capital		112.989	100.188
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		112.989	100.188
LOAN FUNDS
1] Secured Loans		96.813	107.735
2] Unsecured Loans		2.772	2.564
TOTAL BORROWING		99.585	110.299
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		212.574	210.487
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33.274	33.540
Capital work-in-progress		0.000	0.000
INVESTMENT		0.026	0.026
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	117.954	167.353
	Sundry Debtors	255.265	257.829
	Cash & Bank Balances	3.202	2.269
	Other Current Assets	0.000	0.000
	Loans & Advances	17.585	19.232
Total Current Assets		394.006	446.683
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	207.535	269.530
	Other Current Liabilities	0.000	0.000
	Provisions	7.197	0.232
Total Current Liabilities		214.732	269.762
Net Current Assets		179.274	176.921
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		212.574	210.487

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	802.514	710.633
		Other Income	(12.791)	57.675
		TOTAL	789.723	768.308
Less	EXPENSES
		Rough Diamond Purchase	6.437	0.000
		Polish Diamond Purchase	159.817	121.759
		Raw Material Consumed	520.586	535.759
		Manufacturing and Other Expenses	65.416	78.895
		Administrative Expenses	7.197	5.630
		Interest on Partner’s Capital	3.000	3.000
		Salary to Partner	1.875	3.000
		TOTAL	764.328	748.043
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		25.395	20.265
Less	FINANCIAL EXPENSES		12.135	7.926
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		13.260	12.339
Less/ Add	DEPRECIATION/ AMORTISATION		4.673	4.257
	NET PROFIT		8.587	8.082

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	1.07	1.13
Operating Profit Margin (PBDIT/Sales)	(%)	3.21	2.85
Return on Total Assets (PBT/Total Assets}	(%)	2.01	1.68
Return on Investment (ROI) (PBT/Networth)		0.08	0.08
Debt Equity Ratio (Total Liability/Networth)		0.88	1.10
Current Ratio (Current Asset/Current Liability)		1.83	1.66

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	100.188	112.989
Reserves & Surplus	0.000	0.000
Net worth	100.188	112.989
Secured Loan	107.735	96.813
Unsecured Loan	2.564	2.772
Total borrowings	110.299	99.585
Debt/Equity ratio	1.101	0.881

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	710.633	802.514
		12.929

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	710.633	802.514
Profit	8.082	4.673
	1.14%	0.58%

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 two years	Yes
12]	Profitability for last two 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	Yes
18]	Major customers	Yes
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	No
25]	Conduct of the banking account	----------------
26]	Buyer visit details	-----------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

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. 62.44
UK Pound	1	Rs. 98.15
Euro	1	Rs. 77.38

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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.