MIRA INFORM REPORT

Report No. :	319069
Report Date :	28.04.2015

IDENTIFICATION DETAILS

Name :	MALIK JEWELLERS PRIVATE LIMITED
Registered Office :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Tel. No.:	91-11-45629990
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.07.1999
Com. Reg. No.:	55-100792
Capital Investment / Paid-up Capital :	Rs.35.552 million
CIN No.: [Company Identification No.]	U27205DL1999PTC100792
IEC No.:	Not Available
TIN No.:	07460222931
TAN No.: [Tax Deduction & Collection Account No.]	DELM05680D
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of trading of Jewellery
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 630000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for mediocre 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

NOT AVAILABLE

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 (GENERAL DETAILS)

Name :	Mr. Keshav
Designation :	Accountant
Contact No.:	91-11-45629991
Date :	27.04.2015

LOCATIONS

Registered Office :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Tel. No.:	91-11-45629990-99
Mobile No.:	91-9810476777 (Mr. Nitin)
Fax No.:	91-11-45629998
E-Mail :	info@malikjewellers.com
Website :	www.malikjewellers.com
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Yash Paul Sawhney
Designation :	Managing Director
Address :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Date of Birth/Age :	22.04.1952
Date of Appointment :	22.07.1999
DIN No.:	00136267
Name :	Mr. Nitin Sawhney
Designation :	Whole-time Director
Address :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Date of Birth/Age :	21.03.1984
Date of Appointment :	01.05.2002
DIN No.:	00134984
Name :	Mrs. Neelam Sawhney
Designation :	Whole-time Director
Address :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Date of Birth/Age :	12.03.1957
Date of Appointment :	01.04.2001
DIN No.:	00135042
Name :	Shikha Sawhney
Designation :	Director
Address :	5A/13, Tilak Nagar, Opposite Police Station, New Delhi – 110 018, India
Date of Birth/Age :	28.08.1984
Date of Appointment :	01.02.2007
DIN No.:	02396237

KEY EXECUTIVES

Name :	Mr. Keshav
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of holding
Yash Paul Sawhney	1239700	34.87
Neelam Sawhney	896500	25.22
Nitin Sawhney	863500	24.29
Shikha Sawhney	510028	14.35
Yash Paul Sawhney (HUF)	45500	1.27
Total	3555228	100.00

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of trading of Jewellery

Products :

Item Code No. (ITC Code)	Product Description
7113	Gold Jewellery

· Rings

· Earnings

· Necklace

· Bangles and Bracelets

· Bridal Collection

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Cash

Purchasing :

Cash

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers and Retailers

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

40 (Approximately)

Bankers :

Banker Name	Kotak Mahindra Bank Limited
Branch Address	Janakpuri (Branch), New Delhi, Indai
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit: Rs.200.000 million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· HDFC Bank Limited

· ING Vysya Bank Limited, Ground Floor, Block C-1, Plot No.130, Lal Sai Mandir Marg, Janakpuri, New Delhi – 110 058, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
HDFC Car Loan	2.124	2.833
ING Bank Loan	65.927	39.084
Total	68.051	41.917

Banking Relations :	--
Auditors :
Name :	Nayak Sah Mittal and Company Chartered Accountants
Address :	203, Laxman Palace, 19 Veer Savarkar Block, Madhuban Road, Shakarpur, Delhi – 110 092
PAN No.:	AAJFN3286G
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3555228	Equity Shares	Rs.10/- each	Rs.35.552 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	35.552	35.552	35.552
(b) Reserves & Surplus	185.044	174.343	165.296
(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)	220.596	209.895	200.848
(3) Non-Current Liabilities
(a) Long-term borrowings	68.051	41.917	3.472
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	68.051	41.917	3.472
(4) Current Liabilities
(a) Short term borrowings	7.741	9.550	15.500
(b) Trade payables	0.000	0.000	0.000
(c) Other current liabilities	271.365	162.012	150.515
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	279.106	171.562	166.015
TOTAL	567.753	423.374	370.335
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	12.060	14.282	16.492
(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	139.900	0.000	0.000
(c) Deferred tax assets (net)	0.616	0.418	0.123
(d) Long-term Loan and Advances	0.405	0.390	0.390
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	152.981	15.090	17.005
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	400.050	399.512	340.961
(c) Trade receivables	11.638	5.236	4.927
(d) Cash and cash equivalents	2.123	1.464	1.468
(e) Short-term loans and advances	0.961	2.072	5.974
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	414.772	408.284	353.330
TOTAL	567.753	423.374	370.335

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
SALES
	Revenue from Operation	NA	574.887	527.822
	Other Income	NA		0.628
	TOTAL	NA	574.887	528.450
EXPENSES
	TOTAL	NA	545.999	505.814
PROFIT/ (LOSS) BEFORE TAX		NA	13.506	22.636
TAX		NA	4.459	13.795
PROFIT/ (LOSS) AFTER TAX		10.701	9.047	8.841
Earnings / (Loss) Per Share (Rs.)		3.01	2.35	2.00

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	NA	NA	1.67
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.19	6.11
Return on Investment (ROI) (PBT/Networth)		NA	0.06	0.11
Debt Equity Ratio (Total Debt/Networth)		0.34	0.25	0.09
Current Ratio (Current Asset/Current Liability)		1.49	2.38	2.13

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Share Capital	35.552	35.552	35.552
Reserves & Surplus	165.296	174.343	185.044
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	200.848	209.895	220.596
Long Term borrowings	3.472	41.917	68.051
Short Term borrowings	15.500	9.550	7.741
Total borrowings	18.972	51.467	75.792
Debt/Equity ratio	0.094	0.245	0.344

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

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.

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Neelam Sawhney	0.960	2.200
Yash Paul Sawhney	1.370	6.550
Nitin Sawhney	4.911	0.800
Shikha Sawhney	0.500	0.000
Total	7.741	9.550

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10230563	29/08/2014 *	261,334,000.00	ING VYSYA BANK LIMITED	GROUND FLOOR, BLOCK C-1, PLOT NO.130, LAL SAI M LAL SAI MANDIR MARG,JANAKPURI, NEW DELHI, DELHI  - 110058, INDIA	C31290208

* Date of charge modification

FIXED ASSETS

· Air Conditioner

· Battery

· Computer

· Currency Detecting Machine

· Electric Scale

· Electric Fan

· Fax Machine

· Furniture and Fixture

· Furniture and Fixture

· Gold Melting Machine

· Juicer

· Mobile

· Motor Cycle

· Music System

· Mercedes Benz

· Office Equipments

· Paper Shredding Machine

· Polisher

· Refrigerator

· Servo Voltage Stabilizer

· Swift-Car

· Telephone Instruments

· Television

· Toyota Car

· T.V and Cameras

· Ultra Sonic Cleaner

· UPS

· Vacuum Cleaner

· Vehicle

· Vending Machine

· Water Purifier

· Weighing Machine

· Scanner

· Lift

· Showroom Renovation

· Printer

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 records 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.63.19
UK Pound	1	Rs.94.94
Euro	1	Rs.67.66

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
-- PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.