MIRA INFORM REPORT

Report No. :	318157
Report Date :	27.04.2015

IDENTIFICATION DETAILS

Name :	LEO SCHACHTER DIAMONDS INDIA PRIVATE LIMITED
Registered Office :	FE 3011 B, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra – East, Mumbai – 400051, Maharashtra
Tel. No.:	91-22-43459999
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.08.2008
Com. Reg. No.:	11.-185952
Capital Investment / Paid-up Capital :	Rs.23.951 Million
CIN No.: [Company Identification No.]	U36911MH2008PTC185952
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCL5114E
Legal Form :	Private Limited Liability Company
Line of Business :	The Subject is in the business of manufacturing, re-cutting and trading of rough and cut and polished diamonds.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 2000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has progressed well during FY 2014. General financial of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Payments terms are reported to be slow but 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	11.12.2013

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 (General Details)

Name :	Mr. Philip
Designation :	Operating Manager
Contact No.:	91-22-43459999
Date :	17.04.2015

LOCATIONS

Registered Office :	FE 3011 B, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra – East, Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-43459999
Fax No.:	91-22-23631037
E-Mail :	Ido.Kariti@lsdco.com
Website :	http://www.lsdco.com
Locality :	Commercial
Factories :	Located At Botswana Mumbai Bangkok
International Sales Offices:	Located At Ramat Gan New York Hong Kong Toronto Dubai

DIRECTORS

As on 18.09.2014

Name :

Galit Hana Shalev Bieler

Designation :

Director

Address :

Av .De Warens 2, 1203 Geneve, Switzerland

Date of Birth/Age :

26.09.1965

Date of Appointment :

30.09.2009

DIN No.:

02327679

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	U36911MH2008PTC185952	LEO SCHACHTER DIAMONDS INDIA PRIVATE LIMITED	Director	30/09/09	17/11/08	-	Active	NO

Name :

Leonard Moshe Kramer

Designation :

Director

Address :

842 King St, Woodmere New York 11598

Date of Birth/Age :

02.04.1952

Date of Appointment :

10.09.2012

DIN No.:

05283861

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	U36911MH2008PTC185952	LEO SCHACHTER DIAMONDS INDIA PRIVATE LIMITED	Director	10/09/12	24/05/12	-	Active	NO

Name :

Ido Kariti

Designation :

Director

Address :

Flat No. S 2333 And 2334, Kohinoor, Phase-III, Kurla –West, Mumbai – 400070, Maharashtra, India

Date of Birth/Age :

21.02.1975

Date of Appointment :

18.09.2014

DIN No.:

06878135

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	U36911MH2008PTC185952	LEO SCHACHTER DIAMONDS INDIA PRIVATE LIMITED	Director	18/09/14	01/08/14	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Philip
Designation :	Operating Manager

MAJOR SHAREHOLDERS

As on 18.09.2014

Names of Shareholders (Equity Shares)	No. of Shares
Indira Investments Limited, Ebene Mauritius	1738971
LMR Limited, Ebene Mauritius	1
Total	1738972

Names of Shareholders (Preference Shares)	No. of Shares
Rishabh Mody	1000000
Total	1000000

Equity Share Break up (Percentage of Total Equity)

As on 18.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Subject is in the business of manufacturing, re-cutting and trading of rough and cut and polished diamonds.

Products :

Product Description	Item Code No. (ITC Code)
Cut and polished diamonds	71023901

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cheque

Purchasing :

Cheque

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Wholesalers

No. of Employees :

150 (Approximately)

Bankers :

Standard Chartered Bank, Crescenzo, Plot No. C-38 and 39, G Block, Bandra Kurla Complex, Bandra East, Mumbai - 400051,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	1,097.499	1,139.848
Total	1,097.499	1,139.848

Auditors :
Name :	Suresh Surana and Associates LLP Chartered Accountants
Address :	Evershine Millenium Paradise Emp 6, Flat No 402/3 A, Wing Jupitor, 4th Floor, Thakur Village, Kandivali East, Mumbai 400101, Maharashtra, India
PAN No.:	ACLFS1562L
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Indira Investment Limited
Associates :	Kama-Schachter Jewelry Private Limited CIN No.: U65990MH1993PTC072544
Enterprises in which key management personnel have significant influence	Leo Schachter Diamonds Limited Leo Schachter Complete (A division of Leo Schachter Diamond LLC, New York) Leo Schachter International Limited Leo Schachter Diamonds East Limited Leo Schachter Botswana (PTY) Limited Leo Schachter Diamond LLC

CAPITAL STRUCTURE

As on 18.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2510000	Equity Shares	Rs.10/- each	Rs.21.500 Million
1000000	Preference Share	Rs.10/- each	Rs.10.000 Million
	Total		Rs.31.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1738972	Equity Shares	Rs.10/- each	Rs.17.390 Million
1000000	Preference Share	Rs.10/- each	Rs.10.00 Million
	Total		Rs.27.390 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1400000	Equity Shares	Rs.10/- each	Rs.14.000 Million
1000000	Preference Share	Rs.10/- each	Rs.10.000 Million
	Total		Rs.24.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1395087	Equity Shares	Rs.10/- each	Rs.13.951 Million
1000000	Preference Share	Rs.10/- each	Rs.10.000 Million
	Total		Rs.23.951 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	23.951	23.951	13.951
(b) Reserves & Surplus	452.139	413.290	293.763
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	120.360	0.000	0.000
Total Shareholders’ Funds (1) + (2)	596.450	437.241	307.714
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	6.636	1.819	1.354
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.991	0.767	0.392
Total Non-current Liabilities (3)	7.627	2.586	1.746
(4) Current Liabilities
(a) Short term borrowings	1,097.499	1,139.848	966.189
(b) Trade payables	1,572.161	1,065.457	552.696
(c) Other current liabilities	5.131	6.990	4.163
(d) Short-term provisions	10.320	0.470	0.135
Total Current Liabilities (4)	2,685.111	2,212.765	1,523.183
TOTAL	3,289.188	2,652.592	1,832.643
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	329.846	104.756	112.143
(ii) Intangible Assets	0.800	0.740	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	0.060	0.060	0.060
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.851	205.336	2.098
(e) Other Non-current assets	0.029	0.022	0.016
Total Non-Current Assets	341.586	310.914	114.317
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1,471.636	1,385.322	776.808
(c) Trade receivables	1,406.738	895.988	892.187
(d) Cash and cash equivalents	3.440	5.849	18.760
(e) Short-term loans and advances	65.335	53.599	30.446
(f) Other current assets	0.453	0.920	0.125
Total Current Assets	2,947.602	2,341.678	1,718.326
TOTAL	3,289.188	2,652.592	1,832.643

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL	4,881.125	3,499.220	3,557.929
Less	EXPENSES		4,805.395	3,467.600	3,477.090
	PROFIT/(LOSS) BEFORE TAX		75.730	31.620	80.839
Less	TAX		26.720	10.294	26.439
	PROFIT/(LOSS) AFTER TAX		49.010	21.326	54.400
	Earnings / (Loss) Per Share (Rs.)		28.86	15.03	39.03

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	2.30	1.19	4.41
Return on Investment (ROI) (PBT/Networth)		0.13	0.07	0.26
Debt Equity Ratio (Total Debt /Networth)		1.84	2.61	3.14
Current Ratio (Current Asset/Current Liability)		1.10	1.06	1.13

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	13.951	23.951	23.951
Reserves & Surplus	293.763	413.29	452.139
Net worth	307.714	437.241	476.090
long-term borrowings	0.000	0.000	0.000
Short term borrowings	966.189	1139.848	1097.499
Total borrowings	966.189	1139.848	1097.499
Debt/Equity ratio	3.140	2.607	2.305

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3,557.93	3,499.22	4,881.13
		(1.650)	39.492

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	3557.929	3499.220	4881.125
Profit	54.4	21.326	49.01
	1.53%	0.61%	1.00%

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

NATURE OF OPERATIONS

The Company was incorporated on 19 August 2008 under the Companies Act, 1956. The Company is in the business of manufacturing, re-cutting and trading of rough and cut and polished diamonds.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10324360	18/11/2011	1,150,000,000.00	Standard Chartered Bank	Crescenzo, Plot No. C-38 & 39, G Block, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051, India	B28283158

*Date of modification Charges

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.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.49

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	DIV
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.