MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	OM GEMS PRIVATE LIMITED
Registered Office :	B-2, Three Shards, Near Balashram, Bambawadi, Katargam, Surat – 395004, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.01.2011
Com. Reg. No.:	04-063655
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U36911GJ2011PTC063655
TAN No.: [Tax Deduction & Collection Account No.]	SRTO00549D
PAN No.: [Permanent Account No.]	AABCO4489P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Diamonds.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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. Profit margin of the company is low. However, general financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payment terms are reported to be slow but 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 – 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

NOT AVAILABLE

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. Jayesh Rupabara
Designation :	Accountant
Contact No.:	91-261-2536601
Date :	30.12.2014

LOCATIONS

Registered Office/ Factory :	B-2, Three Shards, Near Balashram, Bambawadi, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2536600/ 01/ 02
Fax No.:	91-261-2536600
E-Mail :	dbr.surat@gmail.com account@omgemspvtltd.com
Location :	Rented
Locality :	Industrial

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Sandipkumar Balvantbhai Sonani

Designation :

Director

Address :

70, Ashok Nagar - 2, Katargam Singanpore Road, Surat - 395004, Gujarat, India

Date of Birth/Age :

18.12.1985

Date of Appointment :

13.01.2011

DIN No.:

03342677

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	U36911GJ2011PTC063655	OM GEMS PRIVATE LIMITED	Director	13/01/2011	13/01/2011	Active	NO
2	U36911GJ2012PTC072538	OZ DESIGNS PRIVATE LIMITED	Director	01/11/2012	01/11/2012	Active	NO

Name :

Mr. Balvantbhai Jerambhai Sonani

Designation :

Director

Address :

70, Ashok Nagar - 2, Katargam Singanpore Road, Surat - 395004, Gujarat, India

Date of Birth/Age :

01.06.1962

Date of Appointment :

01.10.2011

DIN No.:

03606644

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	U36911GJ2011PTC063655	OM GEMS PRIVATE LIMITED	Director	01/10/2011	01/10/2011	Active	NO
2	U36911GJ2012PTC072538	OZ DESIGNS PRIVATE LIMITED	Director	01/11/2012	01/11/2012	Active	NO

Name :

Mr. Dipakbhai Shamjibhai Goti

Designation :

Director

Address :

B-901, Akshar Plaza, Opposite Sarita Sagar Sankul, Adajan, Surat - 395009, Gujarat, India

Date of Birth/Age :

23.08.1985

Date of Appointment :

06.12.2013

DIN No.:

06755767

KEY EXECUTIVES

Name :	Mr. Jayesh Rupabara
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Sandipkumar Balvantbhai Sonani	125000	50.00
Balvantbhai Jerambhai Sonani	125000	50.00
Total	250000	100.00

AS ON 30.09.2014

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

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Diamonds.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Diamonds
Countries :	Belgium
Imports :
Products :	Rough Diamonds
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

500 (Approximately)

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· Bank of India

Gopipura Branch, Surat, Gujarat, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans From Financial Institutes HDFC Bank Car Loan	0.427	0.935
Total	0.427	0.935
LONG-TERM BORROWINGS The Company has taken Term Loans of Rs. 1.500 Millions from HDFC Bank Limited for purchase of New Cars. Term Loan is repayable in 36 EMI. First EMI commencing from 11.01.2013. Term Loan is secured against hypothecation of New Car obtained under term loan agreement. Loans and advances include those advances which are in the nature of loans.

Banking Relations :	--
Auditors :
Name :	DBR and Associates Chartered Accountants
Address :	U-26, Diamond World, Sardar Chowk, Mini Bazar, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-2100227
E-Mail :	dbr.surat@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAIFD7473N
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.500	2.500	0.100
(b) Reserves & Surplus	7.070	4.210	1.374
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	9.570	6.710	1.474
(3) Non-Current Liabilities
(a) Long-term borrowings	6.043	8.126	3.741
(b) Deferred tax liabilities (Net)	0.178	0.134	0.145
(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)	6.221	8.260	3.886
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	304.490	483.521	266.975
(c) Other current liabilities	0.619	0.577	0.154
(d) Short-term provisions	10.110	2.985	1.329
Total Current Liabilities (4)	315.219	487.083	268.458
TOTAL	331.010	502.053	273.818
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11.359	11.760	8.504
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.247	0.229	0.211
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.017	0.829	0.002
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	11.623	12.818	8.717
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	73.662	195.880	117.955
(c) Trade receivables	242.733	289.996	145.370
(d) Cash and cash equivalents	1.728	2.287	0.947
(e) Short-term loans and advances	1.215	1.002	0.808
(f) Other current assets	0.049	0.070	0.021
Total Current Assets	319.387	489.235	265.101
TOTAL	331.010	502.053	273.818

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
TURNOVER	633.344	835.531	179.591
NET PROFIT	4.272	4.140	2.076

Expected Sales (2014-2015): Rs. 500.000 Millions

The above information has been parted by Mr. Jayesh Rupabara [Accountant]

KEY RATIOS

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Debt Equity Ratio (Total Debt/Networth)	0.63	1.21	2.54
Current Ratio (Current Asset/Current Liability)	1.01	1.00	0.99

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.100	2.500	2.500
Reserves & Surplus	1.374	4.210	7.070
Net worth	1.474	6.710	9.570
Long-term borrowings	3.741	8.126	6.043
Short term borrowings	0.000	0.000	0.000
Total borrowings	3.741	8.126	6.043
Debt/Equity ratio	2.538	1.211	0.631

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Turnover	179.591	835.531	633.344
		365.241	(24.199)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Turnover	179.591	835.531	633.344
Net Profit	2.076	4.140	4.272
	1.16%	0.50%	0.67%

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	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]	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 & 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

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
From Directors	5.616	7.191
Total	5.616	7.191

CHANGE OF ADDRESS:

The Registered Office of the Company has been shifted from 1st Floor, Shree Shraddha Complex, Near Godhani Circle, Bambawadi, Katargam, Surat – 395004, Gujarat, India to the present address.

CORPORATE INFORMATION

Subject is a Private Limited Company Incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of Manufacturing, Cutting and Polishing of Diamonds.

FINANCIAL RESULTS:

This is the 4th year of the incorporation of their company. The company has made the turnover of Rs. 633.344 Millions as compared to the turnover of Rs. 835.531 Millions and the net profit of Rs. 4.272 Millions as compared to Rs. 4.140 Millions of preceding financial year.

During the year the turnover of the company decreases by 24.20 % due to international recession in their diamond Industries, slowing down of the economy has severely impacted the sales during the current year. As they know in all over the world their diamond industry is passing through a very critical position there is a low demand and stiff competition, increase in labour cost it become very difficult for our company to achieve a good financial results.

However, the directors are quite hopeful that the target will be achieved by taking necessary steps to improve the financial results by way of prudent management with increased productivity and control of cost. The directors are very positive about increased business and growth coupled with increased profitability in coming years.

FIXED ASSETS:

· Air Conditioner

· CCTV Camera

· Intercom

· Plant &Machinery

· Printer

· Telephone

· Weighing Scale

· Elec. Fittings

· Furniture & Fixtures

· Office Equipment

· Water Filter

· Computer

· Mercedes Benz

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. 63.65
UK Pound	1	Rs. 99.14
Euro	1	Rs. 77.60

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	BVA

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.