MIRA INFORM REPORT

Report Date :

28.11.2014

IDENTIFICATION DETAILS

Name :	MINI DIAMONDS (INDIA) LIMITED
Formerly Known As :	KINI GEMS PRIVATE LIMITED
Registered Office :	7-A, Nussar House, Ground Floor, Opposite Panchratna Building, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2014 (Profit and Loss)
Date of Incorporation :	12.02.1987
Com. Reg. No.:	11-042515
Capital Investment / Paid-up Capital :	Rs.34.500 Millions
CIN No.: [Company Identification No.]	L36912MH1987PLC042515
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Suppliers of Diamond Jewellery.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating reflects moderate financial risk profile due to low profitability in the year 2014. Rating also takes into consideration highly competitive industry due to presence of organized and unorganized players. However, trade relations are fair. Business is active. Payments are reported to be 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

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	ICRA
Rating	Long term Fund based facilities B
Rating Explanation	Risk prone credit quality and very high credit risk
Date	February, 2014

Rating Agency Name	ICRA
Rating	Short term fund based facilities A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	February, 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 DENIED BY

Name :	Mr. Ronish Shah
Designation :	Manager
Contact No.:	91-9820483390
Date :	20.11.2014

LOCATIONS

Registered Office :	7-A, Nussar House, Ground Floor, Opposite Panchratna Building, Opera House, Mumbai – 400004, Maharashtra
Tel. No.:	91-22-23671210/23670940
Mobile No.:	91-9820483390 (Mr. Ronish)
Fax No.:	91-22-23649910
E-Mail :	minidiamonds@yahoo.com info@minidiamonds.net
Website :	www.minidiamonds.net
Location :	Owned
Factory:	G-7 Gems and Jewellery, Complex II, Seepz Sez, Andheri(East) Mumbai – 400096, Maharashtra, India

DIRECTORS

As on 31.03.2013

Name :

Mr. Himanshu Kailas Shah

Designation :

Director

Address :

301, Dhavalgiri Gowalia Tank, Nana Chowk, Mumbai – 400036, Maharashtra, India

Date of Appointment :

12.12.1992

PAN No.:

AAFPS3569K

DIN No.:

00410645

Name :

Mr. Upendra Narottamdas shah

Designation :

Managing Director

Address :

40A, Atlas Apartments, Nepensea Road, Mumbai – 400006, Maharashtra, India

Date of Appointment :

01.01.2009

PAN No.:

AADPS4593D

DIN No.:

00748451

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	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Managing director	01/01/2009	12/05/1987	-	Active	NO

Name :

Mr. Dilip Jaswant Shah

Designation :

Director

Address :

103, Sorabhji Apartments, Irla Gautam Lane, NTM Marg, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

05.11.1957

Date of Appointment :

29.09.2012

PAN No.:

AACPS3613R

DIN No.:

01114643

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	U99999MH1997PTC109594	EXECUTIVE GEMS PRIVATE LIMITED	Director	24/07/1997	24/07/1997	-	Active	NO
2	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Director	29/09/2012	24/08/2006	-	Active	NO

Name :

Mr. Sameep Bharat Shah

Designation :

Director

Address :

11, Tribhuvan Road, Tinwala Building, 3^rd Floor, Flat – 31, Mumbai – 400004, Maharashtra, India

Date of Appointment :

30.09.2014

DIN No.:

03612898

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	L36912MH1987PLC042515	MINI DIAMONDS (INDIA) LIMITED	Director	30/09/2014	30/07/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ronish Shah
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Any Others (Specify)	1043300	30.24
Directors/Promoters & their Relatives & Friends	1043300	30.24
Sub Total	1043300	30.24
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1043300	30.24
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	34309	0.99
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2147783	62.25
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	150053	4.35
Any Others (Specify)	74555	2.16
Non Resident Indians	69140	2.00
Hindu Undivided Families	5105	0.15
Clearing Members	310	0.01
Sub Total	2406700	69.76
Total Public shareholding (B)	2406700	69.76
Total (A)+(B)	3450000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	3450000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Suppliers of Diamond Jewellery.

Products :

Item Code No.	Product Description
71131900	Artcls of othr Prcs mtl w/n Pltd or clad
71023900	Diamond(Other Than Indstrl Diamond)Cut Or Otherwise Worked But Not Mounted Or Set

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Divulged

Bankers :

• Central Bank of India, Bhaskar Mansion, 1st Floor, 437, Dr Dadasaheb Marg, Opera House, Mumbai - 400004, Maharashtra, India
• Indian Bank, Overseas Branch, Dr. D.N. Road; Fort, Mumbai, Maharashtra, India
• Corporation Bank
• Mumbai Overseas Branch, Bharart Diamond Bourse, BKC, Mumbai - 400051, Maharashtra, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Loans repayable on demand from banks	53.096	25.565
Total	53.096	25.565

Auditors :
Name :	V A Parikh and Associates Chartered Accountants
Address :	7-C Nusser House Ground Floor 20 M P Marg Opp Panchratna Opera House, Mumbai, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFV1452B

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3450000	Equity Shares	Rs.10/- each	Rs. 34.500 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	34.500	34.500	34.500
(b) Reserves & Surplus	8.745	6.960	5.365
(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)	43.245	41.460	39.865
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.267	0.135	0.048
(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)	0.267	0.135	0.048
(4) Current Liabilities
(a) Short term borrowings	91.383	42.967	41.871
(b) Trade payables	267.170	180.712	169.048
(c) Other current liabilities	22.949	20.331	0.091
(d) Short-term provisions	1.624	0.729	0.995
Total Current Liabilities (4)	383.126	244.739	212.005
TOTAL	426.638	286.334	251.918
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.437	7.061	7.237
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.547	5.544	5.456
(e) Other Non-current assets	0.020	0.000	0.000
Total Non-Current Assets	11.004	12.605	12.693
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	185.643	18.297	69.648
(c) Trade receivables	227.706	249.921	167.218
(d) Cash and cash equivalents	1.426	5.398	1.203
(e) Short-term loans and advances	0.794	0.049	0.016
(f) Other current assets	0.065	0.064	1.140
Total Current Assets	415.634	273.729	239.225
TOTAL	426.638	286.334	251.918

AUDITED FINANCIAL RESULTS (REVIEWED) FOR THE QUARTER ENDED

31^ST MARCH 2014

Sr. No.	Particular	31.03.2014
1.	Net Sales/Income from Operations	947.228
	Other Income	0.000
2.	Expenditure
	Increase and decrease in stock in trade and WIP
	Consumption of raw materials	567.139
	Purchase of trade goods	345.997
	Employee benefits expenses	2.204
	Power and fuel
	Depreciation and amortization expenses	0.825
	Other expenses	28.510
	Total Expenses	944.675
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	2.551
4.	Other Income	8.885
5.	Profit Before Interest and Exceptional Items (3+4)	11.438
6.	Financial Costs	4.226
7.	Profit After Interest but before Exceptional Items (5-6)	7.210
8.	Exceptional Items	0.000
9.	Profit from Ordinary Activities before Tax (7+8)	7.210
10.	Tax Expenses	1.665
11.	Net Profit from Ordinary Activities after Tax (9-10)	5.545

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	434.559	294.487	213.613
		Other Income	0.004	0.038	0.000
		TOTAL (A)	434.563	294.525	213.613
Less	EXPENSES
		Cost of material consumed	28.027	104.401	151.816
		Purchases of stock-in-trade	411.307	175.494	36.692
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(21.209)	(8.103)	6.201
		Employee benefit expense	2.264	6.309	5.290
		Other expenses	6.054	9.808	9.743
		TOTAL (B)	426.443	287.909	209.742
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.120	6.616	3.871
Less	FINANCIAL EXPENSES (D)		4.373	3.038	1.147
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.747	3.578	2.724
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.935	1.098	0.399
	PROFIT BEFORE TAX (E-F) (G)		2.812	2.480	2.325
Less	TAX (H)		1.027	0.815	0.583
	PROFIT AFTER TAX (G-H) (I)		1.785	1.665	1.742
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.960	5.365	3.623
	BALANCE CARRIED TO THE B/S		8.745	6.960	5.365
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	235.042	183.660	132.068
	TOTAL EARNINGS		235.042	183.660	132.068
	IMPORTS
		Raw Materials	172.897	34.022	33.914
	TOTAL IMPORTS		172.897	34.022	33.914
	Earnings Per Share (Rs.)		0.52	0.48	0.51

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	0.41	0.57	0.82
Operating Profit Margin (PBITD/Sales)	(%)	1.87	2.25	1.81
Return on Total Assets (PBT/Total Assets}	(%)	0.66	0.87	0.92
Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.06
Debt Equity Ratio (Total Debt /Networth)		2.11	1.04	1.05
Current Ratio (Current Asset/Current Liability)		1.08	1.12	1.13

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	34.500	34.500	34.500
Reserves & Surplus	5.365	6.960	8.745
Net worth	39.865	41.460	43.245
long-term borrowings	0.000	0.000	0.000
Short term borrowings	41.871	42.967	91.383
Total borrowings	41.871	42.967	91.383
Debt/Equity ratio	1.050	1.036	2.113

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	213.613	294.487	434.559
		37.860	47.565

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	213.613	294.487	434.559
Profit	1.742	1.665	1.785
	0.82%	0.57%	0.41%

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	No
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)	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

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.

MANAGEMENT DISCUSSION AND ANALYSIS:

a) Industry Structure and Developments:

The lndian gem and jewellery industry has witnessed a marginal decline of 0.96% in Fy 2012-2013 owing to the decrease in trading exports of diamonds. The total gem & jewellery industry exports were recorded at us$ 42839 million (Rs. 204823.000 million) in FY 2012-13 as compared to Us$ 42995 million (Rs.1957350.00 million) in April 2011 - March 20.12. Though terms there in dollar is a marginal drop ol0.36%, the exports mark an increase of 4,6% in Rupee value. The gem and jewellery sector accounted for 14% of lndia,s total merchandise exports in FY 2012-2013.

The growth in the sector was primarily driven by Gold Jewellery which registered an increase of 30% in FY 13. The exports grew from us$ 12695 million (Rs. 577476.700 million) in 2011-2012 to us$ 16517 million (Rs 794302.600 million) in 2012-2013.

Cut and Polished Diamonds (CPD) witnessed a decline of 17.3% with exports decreasing from US$ 28217 million in 2011- 2012 to US$ 23329 million in 2012-2013.

coloured gemstone exports witnessed an increase oI9.10% in dollar terms with sector recording growth from US$ 314.20 million in 2011-2012 to US$ 342.80 mi ion in 2O12-2013.

UAE was the largest exporting destination with 44% of Exports to the market, followed by Hong Kong with 25% and USA with 12% of exports.

An increase in import figures of rough diamonds indicates stable growth of trade at the manufacturing level and growth in exports. There has been a substantial decline in import of polished diamonds during January to March 2012 more than 70%. in a month post introduction of 2% duty on C&PD. ln the annual figure the decline is 30% in 2012-13 in comparison to previous year. It is expected that the total import of polished diamonds at US$14.3 bn in 2012-13 may eventually come down significantly in 2013-14

FUTURE OUTLOOK:

As industry survey staied, there has been a slowdown in the economy specially in the developed economies and it may continue for some time due to demand contraction in the developed markets such as the US and the European Union, However, very recent figures and increase in consumer confidence across globe have boosted the industry confidence and experts are hoping for quick revival of consumer demand and growth in industry. All lndia Gem and Jewellery Trade Federation (GJF) are targeting growth from US $ 16.79 billion to US $ 26.23 billion by the year 2013.

lndia possesses the world's most competitive gems and jewellery market due to its low cost of production and availability of skilled labour. As per the new research report "lndian Gems and Jewellery Market - Future Prospects to 2011", highly skilled and low cost manpower, along with strong government support in the form of incentives and establishment of SEZs, has been the major driver for the lndian gems and jewellery market. The market also plays a vital role in the lndian economy as it is a leading foreign exchange earner and accounts for more than 12% of lndia's total exports. Currently the lndian market remains highly fragmented, but is rapidly transforming into an organized sector.

The lndian Diamond industry is witnessing a divergent trend in the demand for cut and polished diamonds and maintaining its Global Presence. The Jewellery industry is also having its presence felt in the local as well as global market. The new Government and its economic policies will have an impact on the economic reforms and also on the Gem and Jewellry industry. The Rupees / Dollar fluctuations is having a lot of impact on the performance of the industry and continues to do so in future also because the exports are linked to dollar. The overall demand in the world market is excellent but due to problems faced by the U.S. economy the demand will be sluggish until and unless there is improvement in the oil price. Revaluation of Yuan of China will have cost bearing effect in the Iabour market. This will open up the market for lndian Diamond and Jewellery and increase its presence. The cash flow of the company is very encouraging with the significant growth in terms of turnover as well as profitability. Currently, the industry is facing a slowdown due to global economic turmoil. But due to various government efforts and incentives coupled with private sector initiatives, the indian gems and jewellery sector is expected to grow at a CAGR of around 14% from 2009 to 2012. At present, the lndian gems and jewellery market is dominated by the unorganized sector; however, the trend is set to change in near future with the branded jewellery market growing at an expected CAGR of more than 41% in the coming four years.

The outlook for the Industry and consequently for the company during the current financial year is reasonably good, subject however, to the effects of prevailing disturbed scenario in the different parts of the world. The Company is putting a lot of efforts to strengthen its financial position by increasing its working capital, so as to expand its operations and export business ln view of the demand for Cut and Polished Diamonds and Diamond Studded Jewellery there is a continuous, growth in diamond business. There is enough potential in the lndian and Overseas market for the Companies engaged in diamond trace and export The company's policy is to maintain goodwill in the market and f lawless perfection at all levels. Customer satisfaction the top most priority.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Loans and advances from related Parties	38.287	17.402
Total	38.287	17.402

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10324737	21/05/2014 *	80,000,000.00	Corporation Bank	Mumbai Overseas Branch, Bharart Diamond Bourse, B  KC, Mumbai, Maharashtra - 400051, INDIA	C12707568

Note: * Date of charge modification

STANDALONE UNAUDITED FINANCIAL RESULTS (REVIEWED) FOR THE QUARTER ENDED

30^th SEPTEMBER 2014

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended on 30.09.2014	Quarter Ended on 30.09.2013
1.	Net Sales/Income from Operations	351.229	245.222
	Other Income	10.014	0.785
2.	Expenditure
	Increase and decrease in stock in trade and WIP	0.000	0.000
	Consumption of raw materials	338.944	240.204
	Purchase of trade goods	0.000	0.000
	Employee benefits expenses	0.565	0.550
	Power and fuel
	Depreciation and amortization expenses	0.261	0.084
	Other expenses	19.819	3.784
	Total Expenses	359.589	244.622
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	1.654	1.385
4.	Other Income	0.000	0.000
5.	Profit Before Interest and Exceptional Items (3+4)	1.654	1.385
6.	Financial Costs	1.290	1.086
7.	Profit After Interest but before Exceptional Items (5-6)	0.364	0.299
8.	Exceptional Items
9.	Profit from Ordinary Activities before Tax (7+8)	0.364	0.299
10.	Tax Expenses	0.000	0.000
11.	Net Profit from Ordinary Activities after Tax (9-10)	0.364	0.299
12.	Paid-up Equity Share Capital (Face Value of Re.1/- Each)	34.500	34.500
13.	Reserves Excluding Revaluation Reserve
14.	Basic and Diluted Earning Per Share (EPS) (Rs. 1)-Not Annualised
	a) Basic EPS after extraordinary items
	b) diluted EPS after extraordinary items	0.010550725	0.008666667
15.	Public Shareholding
	-Number of Shares	2387900	2387900
	- Percentage of Shareholding	69.21	69.21
19.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)
	b) Non Encumbered
	- Number of Shares	1062100	1062100
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100	100
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	30.76%	30.76%

FIXED ASSETS

Tangible assets

• Plant and Equipment
• Furniture and Fixtures
• Office Equipment
• Computer Equipments
• Other Equipments

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.61.86
UK Pound	1	Rs.97.69
Euro	1	Rs.77.37

INFORMATION DETAILS

Information Gathered by :	NAY
Analysis done by :	SUM
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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		30

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.