MIRA INFORM REPORT

Report Date :

03.01.2014

IDENTIFICATION DETAILS

Name :	BHATIA SONS JEWELLERS PRIVATE LIMITED
Registered Office :	205, Dariba Kalan, Chandni Chowk, Delhi – 110 006
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	31.05.1996
Com. Reg. No.:	55-079363
Capital Investment / Paid-up Capital :	Rs.5.267 Millions
CIN No.: [Company Identification No.]	U51398DL1996PTC079363
TAN No.: [Tax Deduction & Collection Account No.]	DELB07255D
PAN No.: [Permanent Account No.]	AAACB4449D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Gold and Diamond Jewellery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 32000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit of the company appears to be low during 2013. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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.

LOCATIONS

Registered Office :	205, Dariba Kalan, Chandni Chowk, Delhi – 110 006, India
Tel. No.:	91-11-23274192 / 23266180
Fax No.:	Not Available
E-Mail :	mananmehta.associates@gmail.com saa@airtelmail.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ramesh Bhaita

Designation :

Director

Address :

B-3/392, Paschim Vihar, New Delhi – 110 063, India

Date of Birth/Age :

12.03.1959

Date of Appointment :

05.02.1997

DIN No.:

00231605

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	U74899DL1989PTC038266	SURBEE FINANCE PRIVATE LIMITED	Director	03/11/1989	03/11/1989	12/03/2012	Active	NO
2	U51398DL1996PTC079363	BHATIA SONS JEWELLERS PRIVATE LIMITED	Director	05/02/1997	05/02/1997	-	Active	NO
3	U15541DL1997PTC087474	BHATIA JEWELLERS (INDIA) PRIVATE LIMITED	Director	03/10/1997	03/10/1997	-	Strike off	NO
4	U74899DL1981PTC012155	SURBEE CHIT FUND AND FINANCE PRIVATE LIMITED	Director	30/09/2002	30/09/2002	-	Strike off	NO
5	U51101DL2005PTC132191	BHATIA COMMODITIES PRIVATE LIMITED	Director	18/01/2005	18/01/2005	-	Active	NO
6	U55101DL2005PTC140661	VISHU HOTELS PRIVATE LIMITED	Director	13/09/2005	13/09/2005	-	Strike off	NO
7	U55100DL2012PTC231492	SIRIS 18 HOSPITALITY PRIVATE LIMITED	Director	14/02/2012	14/02/2012	-	Active	NO

Name :

Mr. Vijay Bhatia

Designation :

Director

Address :

B-3/392, Paschim Vihar, New Delhi – 110 063, India

Date of Birth/Age :

01.101951

Date of Appointment :

19.11.2001

DIN No.:

00460721

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	U74899DL1981PTC012155	SURBEE CHIT FUND AND FINANCE PRIVATE LIMITED	Director	13/08/1981	13/08/1981	-	Strike off	NO
2	U51398DL1996PTC079363	BHATIA SONS JEWELLERS PRIVATE LIMITED	Director	19/11/2001	19/11/2001	-	Active	NO
3	U15541DL1997PTC087474	BHATIA JEWELLERS (INDIA) PRIVATE LIMITED	Director	29/09/2002	29/09/2002	-	Strike off	NO
4	U74899DL1989PTC038266	SURBEE FINANCE PRIVATE LIMITED	Director	30/09/2002	30/09/2002	12/03/2012	Active	NO
5	U36911DL2011PTC221638	YEVA DIAMONDS PRIVATE LIMITED	Director	29/06/2011	29/06/2011	-	Active	NO

Name :

Mr. Rajesh Bhatia

Designation :

Director

Address :

B-3/392, Paschim Vihar, New Delhi – 110 063, India

Date of Birth/Age :

19.09.1984

Date of Appointment :

01.06.2011

DIN No.:

03539359

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	U51398DL1996PTC079363	BHATIA SONS JEWELLERS PRIVATE LIMITED	Director	01/06/2011	01/06/2011	Active	NO
2	U36911DL2011PTC221638	YEVA DIAMONDS PRIVATE LIMITED	Director	29/06/2011	29/06/2011	Active	NO
3	U55100DL2012PTC231492	SIRIS 18 HOSPITALITY PRIVATE LIMITED	Director	14/02/2012	14/02/2012	Active	NO

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Vijay Bhatia	30600
Neelam Bhatia	30600
Rakesh Bhatia	30000
Roop Lal Bhatia HUF	60000
Roop Lal Bhatia	30000
Veebha Bhatia	60000
Sunita Bhatia	30000
Ojaswi Traders Investment and Finance Limited, India	30000
Recross Finance and Leasing Private Limited, India	30000
Ashok Sharma	60000
Roopa Corporate Services Private Limited, India	45000
Sheersh Power Instrument Private Limited, India	30000
Subrat Holding Private Limited, India	30000
Virender Aeri	18000
Shree Siyaram Automobiles Private Limited, India	12500
Total	526700

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Bodies corporate	33.70
Directors or relatives of Directors	66.30
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Gold and Diamond Jewellery.
Products and Services :	· Diamond Jewellery · Gold Jewellery

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· HDFC Bank · ICICI Bank · ICICI Bank Mumbai · Punjab National Bank

Banking Relations :	--
Auditors :
Name :	S. C. Mehta and Associates Chartered Accountants
Address :	1E/12, Third Floor, Sewak House, Jhandewalan, New Delhi – 110 055, India
PAN No.:	ACCFS6133J

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
526700	Equity Shares	Rs. 10/- each	Rs.5.267 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	5.267	5.267	0.857
(b) Reserves & Surplus	2.728	2.622	4.887
(c) Money received against share warrants	0.000	0.000	0.000
			0.000
(2) Share Application money pending allotment	0.055	0.055	0.055
Total Shareholders’ Funds (1) + (2)	8.050	7.944	5.799
(3) Non-Current Liabilities
(a) long-term borrowings	7.519	6.922	5.883
(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)	7.519	6.922	5.883
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	9.547	3.317	2.149
(c) Other current liabilities	1.257	0.174	0.100
(d) Short-term provisions	0.168	0.158	0.074
Total Current Liabilities (4)	10.972	3.649	2.323
TOTAL	26.541	18.515	14.005
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.897	0.765	0.233
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.058	0.037	0.019
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	0.955	0.802	0.252
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	21.507	14.832	12.224
(c) Trade receivables	2.047	0.122	0.569
(d) Cash and cash equivalents	1.762	2.454	0.765
(e) Short-term loans and advances	0.000	0.013	0.057
(f) Other current assets	0.270	0.292	0.138
Total Current Assets	25.586	17.713	13.753
TOTAL	26.541	18.515	14.005

PROFIT & LOSS ACCOUNT

Particulars	31.03.2013	31.03.2012	31.03.2011
Profit/Loss for the year	0.107	0.145	0.149

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt /Networth)	0.93	0.87	1.01
Current Ratio (Current Asset/Current Liability)	2.33	4.85	5.92

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	No
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	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS:

During the year subject earned Net Profit after tax of Rs.0.107 Millions. The Directors are making all their efforts and confident of better performance for the following financial year 2013-14.

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.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From Shareholders	7.519	6.922
Total	7.519	6.922

NOTE: No Charges Exist for Company.

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.61.90
UK Pound	1	Rs.102.74
Euro	1	Rs.85.16

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.