MIRA INFORM REPORT

Report Date :

25.11.2014

IDENTIFICATION DETAILS

Name :	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED
Registered Office :	CC9010A, 'C' Tower, Central Wing, 9^th Floor, Bharat Diamond Bourse, Bandra Kurla Complex, Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
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 :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company is good. 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term bank facilities : “BBB+”
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	19^th September, 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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No. 91-22-40404444)

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. :	91-22-23630202
E-Mail :	jjshahca@hotmail.com

DIRECTORS

As on 27.09.2014

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	Date of cessation	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	U36941GJ2014PTC080519	NIRALI CREATIONS PRIVATE LIMITED	Director	19/08/2014	19/08/2014	-	Active	NO
13	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	Date of cessation	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
4	U36941GJ2014PTC080519	NIRALI CREATIONS PRIVATE LIMITED	Director	19/08/2014	19/08/2014	-	Active	NO
5	U36911GJ2014PTC080909	SASHME DIAMONDS PRIVATE LIMITED	Director	25/09/2014	25/09/2014	-	Active	NO
6	U70101GJ2014PTC080929	SASHME REALITIES PRIVATE LIMITED	Director	26/09/2014	26/09/2014	-	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	Date of cessation	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 :	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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2014

Names of Shareholders	No. of Shares
Arjav Diamonds NV, Belgium	32426000
Arnav Akshay Mehta	428000
Anuj Vasantlal Mehta	578000
Anuj Vasantlal Mehta (Karta of Anuj Mehta (HUF))	64000
Akshay Vasantlal Mehta	150000
Akshay Vasantlal Mehta (Karta of Akshay Mehta (HUF))	64000
Total	33710000

As on 27.09.2014

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

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

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	31.03.2014 (Rs. In Millions)	31.03.2013 (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.)	6761.057	6947.443
Total	6761.057	6947.443

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 · Blue Star Investments and Financial Service Private Limited · CIN No.: U65993MH2006PTC165505 · Blue Star Diamonds (HK) Limited · Arjav Diamonds (ME) LLC · Arjav Associates NV · Antwerp Star Diamonds NV · Blue Star Diamonds Botswana (Proprietary) Limited · Arjav Manufacturing NV · Amdiam NV · Aurosons · Suashish Diamonds Botswana (Pty) Limited
Associate :	· Surat Rough Diamond Sourcing (India) Limited. CIN No.: U36912GJ2010PLC062808
	·
Subsidiary Company :	Akshar Infrastructure Private Limited CIN No.: U45201GJ2004PTC044084

CAPITAL STRUCTURE

As on 31.03.2014

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	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	337.100	337.100	149.800
(b) Reserves & Surplus	4033.052	3858.607	2909.602
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	975.997
Total Shareholders’ Funds (1) + (2)	4370.152	4195.707	4035.399
(3) Non-Current Liabilities
(a) long-term borrowings	41.723	63.062	52.754
(b) Deferred tax liabilities (Net)	102.805	82.583	11.581
(c) Other long term liabilities	6.083	6.083	0.000
(d) long-term provisions	0.000	0.571	1.013
Total Non-current Liabilities (3)	150.611	152.299	65.348
(4) Current Liabilities
(a) Short term borrowings	6761.057	6947.443	6289.566
(b) Trade payables	4072.447	5792.017	5143.559
(c) Other current liabilities	27.345	27.837	49.702
(d) Short-term provisions	0.000	0.050	0.000
Total Current Liabilities (4)	10860.849	12767.347	11482.827
TOTAL	15381.612	17115.353	15583.574
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	966.934	1018.601	509.981
(ii) Intangible Assets	0.390	0.045	0.074
(iii) Capital work-in-progress	1.296	0.000	634.886
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	226.118	74.013	55.668
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	614.383	544.223	442.399
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1809.121	1636.882	1,643.008
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2463.853	3390.474	3479.549
(c) Trade receivables	10137.104	9444.785	7702.668
(d) Cash and cash equivalents	857.948	1033.357	1219.329
(e) Short-term loans and advances	63.586	1609.855	1539.020
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	13522.491	15478.471	13940.566
TOTAL	15331.612	17115.353	15583.574

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	NA	17915.493	22101.399
		Other Income	NA	NA
		TOTAL	NA	NA	22101.399
Less	EXPENSES
		TOTAL	NA	NA	21659.057
	PROFIT/ (LOSS) BEFORE TAX		NA	NA	442.342
Less	TAX		NA	NA	143.913
	PROFIT/ (LOSS) AFTER TAX		235.174	293.760	298.429
	EARNINGS IN FOREIGN CURRENCY		15545.359	14257.515	15771.945
	Earnings / (Loss) Per Share (Rs.)		6.98	8.71	19.92

KEY RATIOS

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Return on Investment (ROI) (PBT/Networth)	NA	NA	0.11
Debt Equity Ratio (Total Debt/Networth)	1.56	1.67	1.57
Current Ratio (Current Asset/Current Liability)	1.25	1.21	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	149.800	337.100	337.100
Reserves & Surplus	2909.602	3858.607	4033.052
Share Application money pending Allotment	975.997	0.000	0.000
Net worth	4035.399	4195.707	4370.152
long-term borrowings	52.754	63.062	41.723
Short term borrowings	6289.566	6947.443	6761.057
Total borrowings	6342.320	7010.505	6802.780
Debt/Equity ratio	1.572	1.671	1.557

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

.

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	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	5.148	20.435
Loans and advances from others	36.575	42.523
Other loans and advances, others	0.000	0.104
Total	41.723	63.062

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.

CORPORATE INFORMATION

The company ‘was incorporated upon conversion of erstwhile firm Messrs 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.

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.

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.661.78
UK Pound	1	Rs.96.78
Euro	1	Rs.76.59

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis done by :	SUM
Report Prepared by :	SNT

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		47

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.