MIRA INFORM REPORT

Report Date :

10.10.2014

IDENTIFICATION DETAILS

Name :	D. NAVINCHANDRA EXPORTS PRIVATE LIMITED (w.e.f 19.04.2010)
Formerly Known As :	PLATINUM DIAMONDS Private Limited
Registered Office :	GW-8101, 8^th Floor, G-Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.09.2005
Com. Reg. No.:	11-155937
Capital Investment / Paid-up Capital :	Rs. 21.815 Millions
CIN No.: [Company Identification No.]	U51398MH2005PTC155937
TAN No.: [Tax Deduction & Collection Account No.]	MUMD04685C
PAN No.: [Permanent Account No.]	AADCP6855C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Loose Diamonds.
No. of Employees :	6000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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 a well-established and reputed company having satisfactory track record. The company possesses an acceptable financial profile marked by favourable networth base along with working capital intensive operations owing to leveraged capital structure and stretched inventory period. Management has witnessed steady growth in its operations whereas has reported a dip in its net profitability during FY 13. The ratings also take into consideration, the susceptibility to volatility in the prices of rough diamond, foreign exchange fluctuation and increasing competition which may affect the business profile. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of experienced promoters and robust marketing network through its associates, the company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	CARE
Rating	Long term bank facilities: “BBB”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.03.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Mukesh
Designation :	Finance Head
Contact No.:	91-22-66076000
Date :	09.10.2014

LOCATIONS

Registered Office :	GW-8101, 8^th Floor, G-Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-66076000
Fax No.:	91-22-66076099
E-Mail :	account@dnavin.com
Website :	www.dnavin.com
Factory :	4 Factory in Surat
Branch 1 :	2^nd Floor ,Barmi Chambers, 62/2191,Gurudwara Road, Karol Bagh, New Delhi - 100005, Delhi, India
Tel. No.:	91-11-28753081
E-Mail :	manish@dnavin.com
Branch 2 :	Mahalaxmi Gem and Jewellery Mall, 3rd Floor,5-9-224/1 and 2, Opposite Little Flower School, Chirag Ali Lane, Abids, Hyderabad - 500001, Andhra Pradesh, India
Fax No.:	91-40-66660039
E-Mail :	bina@dnavin.com
Branch Office 3:	Also located at · Kolkata, West Bengal, India
Marketing Affiliates:	M/S.Dianco B.V.B.A., Hoveniersstraat 2 Pb 306, 2018, Antwerpn, 10^th Floor,  Belgium
Tel. No.:	00323 232 98 27
Fax No.:	00323231 96 83
E-Mail :	biren@dianco.be
Marketing Affiliates:	Also located at · Dubai Hongkong

DIRECTORS

As on 30.09.2013

Name :

Mr. Samir Shantilal Mehta

Designation :

Director

Address :

902/903- Rajul Apat, 9/Harkness Road, Malbar Hill, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

30.07.1963

Date of Appointment :

06.09.2006

PAN No.:

AACPM5453D

DIN No. :

00244242

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	U51398MH2004PTC149027	D N GEMS PRIVATE LIMITED	Director	24-07-2005	24-07-2005	-	Amalgamated	NO
2	U51398MH2005PTC155937	D. NAVINCHANDRA EXPORTS PRIVATE LIMITED	Director	06-09-2006	06-09-2006	-	Active	NO
3	U74900MH2007PTC170147	INTERJEWEL PRIVATE LIMITED	Whole-time director	01-05-2007	20-04-2007	21-07-2010	Active	NO
4	U52393MH2007PTC174966	IRA DIAMOND JEWELLERY PRIVATE LIMITED	Director	12-10-2007	12-10-2007	-	Amalgamated	NO
5	U74140MH2007PTC175237	V CARE MANAGEMENT SERVICES PRIVATE LIMITED	Director	23-09-2009	31-08-2009	-	Amalgamated	NO
6	U22300MH2008PTC182002	TEAMTECH EIGHTEEN MEDIA PRIVATE LIMITED	Director	23-09-2009	31-08-2009	-	Amalgamated	NO
7	U13209MH2009PTC197129	AARSHAY GEMS PRIVATE LIMITED	Director	18-11-2009	18-11-2009	-	Active	NO
8	U74994MH2004PTC149087	DIANCO CREATIONS PRIVATE LIMITED	Director	27-06-2011	15-03-2011	-	Active	NO

Name :

Mr. Ajesh Navinchandra Mehta

Designation :

Director

Address :

51 Vijaydeep 5th Flr, 31, Ridge Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

08.01.1969

Date of Appointment :

30.09.2008

PAN No.:

AABPM7824R

DIN No. :

01546771

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	U74900MH2007PTC170147	INTERJEWEL PRIVATE LIMITED	Whole-time director	01-05-2007	20-04-2007	21-07-2010	Active	NO
2	U51398MH2005PTC155937	D. NAVINCHANDRA EXPORTS PRIVATE LIMITED	Director	30-09-2008	01-11-2007	-	Active	NO
3	U13204MH2009PTC197130	AYUSH DIAMONDS PRIVATE LIMITED	Director	18-11-2009	18-11-2009	-	Active	NO
4	U74994MH2004PTC149087	DIANCO CREATIONS PRIVATE LIMITED	Director	27-06-2011	15-03-2011	-	Active	NO
5	U99100MH1966GAP013486	THE GEM AND JEWELLERY EXPORT PROMOTION COUNCIL	Director	27-09-2012	27-09-2012	-	Active	NO

Name :

Shantilal Mangalji Mehta

Designation :

Director

Address :

902/903- Rajul Apat, 9/Harkness Road, Malbar Hill, Mumbai- 400006, Maharashtra, India

Date of Birth/Age :

26.05.1933

Date of Appointment :

30.09.2010

PAN No.:

AACPM6039K

DIN No. :

00292950

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	U51900MH1995PTC090506	DIAN STAR DIAMONDS PRIVATE LIMITED	Director	12-07-1995	12-07-1995	21-07-2010	Active	NO
2	U91120MH2005PLC157427	PALANPUR COMMUNITY FOUNDATION	Director	21-11-2005	21-11-2005	-	Active	NO
3	U52393MH2007PTC174966	IRA DIAMOND JEWELLERY PRIVATE LIMITED	Director	12-10-2007	12-10-2007	-	Amalgamated	NO
4	U13209MH2009PTC197129	AARSHAY GEMS PRIVATE LIMITED	Director	18-11-2009	18-11-2009	-	Active	NO
5	U51398MH2005PTC155937	D. NAVINCHANDRA EXPORTS PRIVATE LIMITED	Director	30-09-2010	01-04-2010	-	Active	NO

Name :

Mr. Navinchandra Dalpatlal Mehta

Designation :

Director

Address :

51, Vijaydeep, 5th Floor, 31 Ridge Road, Walkeshwar, Mumbai – 400001, Maharashtra, India

Date of Birth/Age :

05.11.1937

Date of Appointment :

30.09.2010

PAN No.:

AAOPM2667F

DIN No. :

00338276

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	U70100MH1988PTC048360	INTER JEWELS (INDIA) PRIVATE LIMITED	Director	01-08-1989	01-08-1989	-	Amalgamated	NO
2	U36910MH1993PTC072110	INTER JEWELS INTERNATIONAL PRIVATE LIMITED	Director	24-05-1993	24-05-1993	-	Amalgamated	NO
3	U51900MH1973NPL017093	DIAMOND EXPORTERS ASSOCIATION LIMITED	Director	20-07-2002	20-07-2002	-	Active	NO
4	U91110GJ2000NPL039065	GUJARAT HIRA BOURSE	Director	09-03-2004	09-03-2004	-	Active	NO
5	U51398MH1984NPL033787	BHARAT DIAMOND BOURSE	Director	23-12-2010	28-09-2006	30-09-2011	Active	NO
6	U74999MH2007NPL168975	JAIN INTERNATIONAL TRADE ORGANISATION	Director	20-03-2007	20-03-2007	25-09-2012	Active	NO
7	U74900MH2007PTC170147	INTERJEWEL PRIVATE LIMITED	Whole-time director	01-05-2007	20-04-2007	21-07-2010	Active	NO
8	U67190MH2007PTC172391	INDIA DEVELOPMENT AND CONSTRUCTION VENTURE CAPITAL PRIVATE LIMITED	Director	22-12-2008	26-12-2007	-	Active	NO
9	U13204MH2009PTC197130	AYUSH DIAMONDS PRIVATE LIMITED	Director	18-11-2009	18-11-2009	-	Active	NO
10	U51398MH2005PTC155937	D. NAVINCHANDRA EXPORTS PRIVATE LIMITED	Director	30-09-2010	18-03-2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mukesh
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Equity Shareholders	No. of Shares
Samir Shantilal Mehta	5000
Ajesh Navinchandra Mehta	5000
Total	10000

Names of 1% Non-Cumulative Redeemable Shareholders	No. of Shares
Samir Shantilal Mehta	1050000
Ajesh Navinchandra Mehta	1050000
Total	2100000

Names of 6% Non-Cumulative Redeemable Preference Shareholders of Series-B	No. of Shares
Navinchandra Dalpatlal Mehta	15000
Ajesh Navinchandra Mehta	10,000
Samir Shantilal Mehta	25000
Total	50000

Names of 6% Non-Cumulative Redeemable Preference Shareholders of Series-C	No. of Shares
Navinchandra Dalpatlal Mehta	10750
Samir Shantilal Mehta	10750
Total	21500

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Loose Diamonds.

Products :

Item Code No. (ITC Code)	Product Description
71023910	Rough and polished Diamonds

Exports :

Products :

Diamonds

Countries :

Asian Countries

Imports :

Products :

Diamonds

Countries :

· Dubai

Hongkong

Terms :

Selling :

Cash, L/C and Credit

Purchasing :

Cash, L/C and Credit

GENERAL INFORMATION

No. of Employees :

6000 (Approximately)

Bankers :

· State Bank of India, Diamond Branch, 1st Floor, Majestic Shopping Centre, 144 Jss Road, Girgaum,, Mumbai - 400004, Maharashtra, India

State Bank of India, Diamond Branch, D-3, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra(East), Mumbai - 400051, Maharashtra, India

Yes Bank

Indusind Bank

Royal Bank of Scotland

Asian Development Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Rupee term loans from banks	273.565	359.558
Foreign currency term loans from banks	1660.394	1324.844
Total	1933.959	1684.402

Banking Relations :	--
Auditors :
Name :	Ramesh Rajni and Company Chartered Accountants
Address :	Purshottam Building,1^st Floor, 4 5 0 Lamington Road, Opera House,Mumbai-400004
Income-tax PAN of auditor or auditor's firm :	AAFFR7782K
Related Parties :	· Dianco Navinchandra D. Mehta Charitable Trust D.Navinchandra Charitable Trust Shantilal Mehta Charitable Trust Dianco Creations Private Limited Dianco BVBA Dianco (HK) Limited Dianco DMCC D.Navinchandra Gems Private Limited CIN No.: U52393MH2000PTC129994

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs. 0.100 Million
2100000	1% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 21.000 Millions
200000	6% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 2.000 Millions
	Total		Rs. 23.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.10/- each	Rs. 0.100 Million
2,100,000	1% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 21.000 Millions
71,500	6% Non-Cumulative Redeemable Preference Shares of Series B and C	Rs.10/- each	Rs. 0.715 Million
	Total		Rs. 21.815 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	21.815	22.585	22.371
(b) Reserves & Surplus	1558.414	1356.061	919.593
(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)	1580.229	1378.646	941.964
(3) Non-Current Liabilities
(a) long-term borrowings	299.420	408.710	595.559
(b) Deferred tax liabilities (Net)	2.705	0.000	0.207
(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)	302.125	408.710	595.766
(4) Current Liabilities
(a) Short term borrowings	1933.959	1684.401	832.301
(b) Trade payables	1603.207	1502.254	1535.800
(c) Other current liabilities	17.746	6.300	133.318
(d) Short-term provisions	2.404	3.391	4.277
Total Current Liabilities (4)	3557.316	3196.346	2505.696
TOTAL	5439.670	4983.702	4043.426
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	395.453	301.617	216.756
(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	57.661	9.916	8.116
(c) Deferred tax assets (net)	0.000	2.601	0.000
(d) Long-term Loan and Advances	71.078	90.148	109.227
(e) Other Non-current assets	0.087	0.838	0.906
Total Non-Current Assets	524.279	405.120	335.005
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2941.528	2714.520	2144.957
(c) Trade receivables	1930.587	1793.299	1522.774
(d) Cash and cash equivalents	26.318	18.130	7.726
(e) Short-term loans and advances	11.305	47.900	21.145
(f) Other current assets	5.653	4.733	11.819
Total Current Assets	4915.391	4578.582	3708.421
TOTAL	5439.670	4983.702	4043.426

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	6573.847	6315.143	5303.247
		Other Income	15.776	92.925	58.326
		TOTAL	6589.623	6408.068	5361.573
Less	EXPENSES
		TOTAL	6139.080	5991.318	5024.001
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		450.543	416.750	337.572
Less	FINANCIAL EXPENSES		114.966	64.216	46.548
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		335.577	352.534	291.024
Less/ Add	DEPRECIATION/ AMORTISATION		35.083	23.009	26.896
Less	EXCEPTIONAL ITEMS		0.248	(67.111)	0.000
	PROFIT/ (LOSS) BEFORE TAX		300.246	396.636	264.128
Less	TAX		97.893	111.086	88.237
	PROFIT/ (LOSS) AFTER TAX		202.353	285.550	175.891
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	4160.613	4401.564	3511.768
		Other Income - Local sale in Dollar	1591.407	1103.598	1395.515
	TOTAL EARNINGS		5752.020	5505.162	4907.283
	IMPORTS
		Raw Materials	4179.563	4287.012	4009.480
		Finished Goods	41.076	264.765	219.097
		Capital Goods	110.883	13.130	9.993
	TOTAL IMPORTS		4331.522	4564.907	4238.570

Particulars	31.03.2014
Sales Turnover (Approximately)	9250.000

Expected Sales (2014-2015): Rs. 12500.000 Millions

The above information has been parted by Mr. Mukesh (Finance Head).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.07	4.46	3.28
Net Profit Margin (PBT/Sales)	(%)	4.57	6.28	4.98
Return on Total Assets (PBT/Total Assets}	(%)	5.58	7.98	6.55
Return on Investment (ROI) (PBT/Networth)		0.19	0.29	0.28
Debt Equity Ratio (Total Debt/Networth)		1.41	1.52	1.52
Current Ratio (Current Asset/Current Liability)		1.38	1.43	1.48

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	22.371	22.585	21.815
Reserves & Surplus	919.593	1356.061	1558.414
Net worth	941.964	1378.646	1580.229
long-term borrowings	595.559	408.710	299.420
Short term borrowings	832.301	1684.401	1933.959
Total borrowings	1427.860	2093.111	2233.379
Debt/Equity ratio	1.516	1.518	1.413

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	5303.247	6315.143	6573.847
		19.081	4.097

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	5303.247	6315.143	6573.847
Profit	175.891	285.550	202.353
	3.32%	4.52%	3.08%

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 four 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	Yes
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	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.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10276081	28/06/2014 *	2,932,000,000.00	STATE BANK OF INDIA	DIAMOND BRANCH, D-3, TOWER, G-BLOCK, BHARAT DIAMOND BOURSE, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	C13252457
2	10213013	29/03/2010	660,000,000.00	STATE BANK OF INDIA	DIAMOND BRANCH, 1ST FLOOR, MAJESTIC SHOPPING CENTRE, 144 JSS ROAD, GIRGAUM, MUMBAI, MAHARASHTRA - 400004, INDIA	A83449652

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	299.420	408.709
Total	299.420	408.709

CHANGE OF ADDRESS

The registered office of the company has been shifted from GW-8101, Bharat Diamond Bourse, G Block, West Wing, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India to the present address w.e.f. 01.01.2014.

OPERATIONS/WORKING RESULTS

During the year, the Company has recorded Revenue from operations of Rs.6573.847 Millions as compared to the Revenue from operation for last year of Rs.6315.143 Millions and also earned Other Income of Rs.15.776 Millions as compared to that of Rs.92.925 Millions for the corresponding previous year. The Company has earned net profit to the tune of Rs.202.353 Millions as compared to profit earned of Rs.285.550 Millions in respect of the corresponding previous year, after making provision for taxation and deferred tax adjustment.

Barring unforeseen circumstances, further improvement in sale and profitability is expected in the current year in view of continued efforts being made. Further the company is taking effective steps to strengthen the profitability and financial soundness of the Company.

CONTINGENT LIABILITIES (AS ON 31.03.2013)

Company has given collateral security of Mehta Mahal Premises (M.V. 5,86,00,000, cost 1,36,87,200) for loans taken by Interjewel Private Limited

FIXED ASSETS

Tangible Assets

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Ships Vessels

Motor Vehicles

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.61.04
UK Pound	1	Rs.98.64
Euro	1	Rs.77.74

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	MRI

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	4
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.