MIRA INFORM REPORT

Report Date :

01.09..2014

IDENTIFICATION DETAILS

Name :	RENAISSANCE JEWELLERY BANGLADESH PVT. LTD.

Registered Office :	Plot#107 & 108, Adamjee Export Processing Zone, Adamjee Nagar, Narayangonj,

Country :	Bangladesh

Date of Incorporation :	13.04.2011

Com. Reg. No.:	C-92021

Legal Form :	Private Co

Line of Business :	Subject is mainly engaged in Manufacturer and Exporter of Diamond, Gold and Platinum Jewellery.

No of Employees :	2000

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Bangladesh

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

BANGLADESH - ECONOMIC OVERVIEW

Bangladesh's economy has grown roughly 6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, slow implementation of economic reforms, and the 2008-09 global financial crisis and recession. Although more than half of GDP is generated through the service sector, almost half of Bangladeshis are employed in the agriculture sector with rice as the single-most-important product. Garment exports, the backbone of Bangladesh’s industrial sector and 80% of total exports, surpassed $21 billion last year, 18% of GDP. The sector has remained resilient in recent years amidst a series of factory accidents that have killed over 1,000 workers and crippling strikes that shut down virtually all economic activity. Steady garment export growth combined with remittances from overseas Bangladeshis, which totaled almost $15 billion and 13% of GDP IN 2013, are the largest contributors to Bangladesh’s current account surplus and record foreign exchange holdings.

Source : CIA

IDENTIFICATION DETAILS
Correct company Name	:	Renaissance Jewellery Bangladesh Pvt. Ltd.
Head Office	:	Plot#107 & 108, Adamjee Export Processing Zone, Adamjee Nagar, Narayangonj, Bangladesh.
Tel No	:	88-02-7691104-7, 01678685501
Fax No	:	Nil
E-mail	:	bd.hr@renjewellery.com nirupam.barua@renjewellery.com
Website	:	Nil
Date/ Year of Incorporation	:	13.04.2011
Commercial Production Start	:	01.04.2013
Incorporation No.	:	C-92021
Legal Form (General)	:	Public Listed Co Public (but not listed) Private Co State-owned Co Sole Proprietorships Partnership Not Registered others (please specify) ________________
Legal form (Specific)	:	LTD CORP INC CO others (please specify) ________________
Issuing Authority	:	Registrar of Joint Stock Companies & Firms City Corporation Municipal Administration Union Council Cantonment Board Chief Controller of Import & Export (CCIE)

FINANCIALS- SUMMARY
Year	Turnover/ Sales	Assets	Income
April”2013~March”2014	Tk. 265 Million	Tk. 1167.30 Million	Tk. 13.25 Million
Exchange Rate	USD1-Tk. 77.8200 EUR 1- Tk. 100.2711 GBP 1- Tk.118.5354 AUD 1 - Tk.82.8563 JPY 1 - Tk.0.9286	CAD 1 - Tk.80.1887 SEK 1 - Tk.12.2870 SGD 1 - Tk.65.3045 CNH 1 - Tk.12.8399

Information Parted By

Name	:	Mr. Nirupom Barua
Designation	:	General Manager
Contract No	:	88-01678685501

Locations Details
Operating Address	:	Plot#107 & 108, Adamjee Export Processing Zone, Adamjee Nagar, Narayangonj, Bangladesh.
Tel No	:	88-02-7691104-7, 01678685501
Fax No	:	Nil
E-mail	:	bd.hr@renjewellery.com nirupam.barua@renjewellery.com
Website	:	Nil

Location :

: Owned

Rented

Leased

Area

2400

Sq. ft.

Type of Office :	: Commercial Office Bldg.	Ö		Semi-commercial office Bldg.
	Retail shop		Industrial Park
	Business Center		Home Office
	Residential Bldg.

Factory:

Address	:	Plot#107 & 108, Adamjee Export Processing Zone, Adamjee Nagar, Narayangonj, Bangladesh.
Tel No	:	88-02-7691104-7, 01678685501
Fax No	:	Nil

Location :

Owned

Rented

Leased

Area

25000

Sq. ft.

Branches:

Address	:	Kowloon, Hong Kong
Tel No	:	Nil
Fax No	:	Nil

Employee:

No. of Employees	In Office	:	40	In Factory	:	1960
	In Branch:	:	-	Total	:	2000
Details:

OWNERSHIP/SHAREHOLDERS

Names of Shareholders	No. of Share
Mr. Sumit Shah	100
Renaissance Jewellery (Rep by Mr. Hitesh Shah)	1479266

DIRECTORS

Name	Designation
Mr. Hitesh Shah	Managing Director
Mr. Sumit Shah	Director

MANAGEMENT

Name	:	Mr. Nirupom Barua
Job Description	:	General Manager
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	88-01678685501

Name	:	Mr. Omer
Job Description	:	Officer
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	88-01678685500

BUSINESS OPERATIONS

Nature of Activity :	Manufacturer	Ö	Trader	Dealer	Distributor

	Exporter	Ö	Importer	Services	Others

Range of Products

Products	:	Diamond, Gold and Platinum Jewellery
Production Capacity	:	N/A
Last Year Production	:	N/A

Trading Terms

Purchasing Terms:	L/C	Ö	Cash		Others
	Credit :		30 days		60 days	Ö	90 days			days

Selling Terms :	L/C	Ö	Cash		Others
	Credit :		30 days		60 days	Ö	90 days			days

DETAILED DATA

Trade Reference & Related Parties	:	Overseas Clients			:	N/A	Local Clients	:	N/A
		Overseas Suppliers			:	N/A	Local Suppliers	:	N/A
Trade Markets	:	Exports			:	N/A
		Imports			:	China, Hong Kong, India

Brand Name			:	N/A
Certified			:	N/A
Auditors			:	N/A
Operation Status			:	Active
Member			:	N/A

CAPITAL STRUCTURE

Authorized Capital	:	Tk. 35 Crore
Paid-up Capital	:	Tk. 14,79,36,600	No. of Shares	:	14, 79,366	Share Value	:	Tk.100.00Each
Main Assets	:	Tk. 1167.30 Million

FINANCIAL STATEMENT- DETAILED

The subject company don’t submit update full financial figure to local registry office.

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

Sister Concerns	:	Nil
Subsidiary	:	Nil
Name of The Group	:	Nil

BANKING

Bank Name	:	Standard Chartered Bank Ltd.
Bank Address	:	Motijheel Branch. Dhaka, Bangladesh.

Bank Name	:	Exim Bank Ltd.
Bank Address	:	Motijheel Branch. Address: Sharif Mansion, 56-57, Motijheel C/A, Dhaka. Phone: 9568534, 9552800, 9568093, 9554988, 9554988, Dir-9553778 Email: motijheel@eximbankbd.com Fax: 880-2-9569983

ADVERSE DATA MONITORING

Dishonored Checks	:	No Record Found
Debt	:	No Record Found
Litigation	:	Clear
Performance Defaults	:	No Record Found
Adverse Local Media Coverage/ Adverse Filling History	:	No Record Found

SITE VISIT COMMENTARY

Our representative visited the subject company Head Office which is situated atPlot#107 & 108, Adamjee Export Processing Zone, Adamjee Nagar, Narayangonj, Bangladesh. The subject company General Manager Mr. Nirupom Barua given us all information. Is situated at commercial area which is a well decorated modern office.

GENERAL COMMENTS

Established in Apr. 2011, Subject is mainly engaged in Manufacturer & Exporter. Having been in operation for several years, Subject maintains acceptable business volume. Subject enjoys some recognition and impact in the line.

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds. It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C. India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	SHG

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	--

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%)

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.