MIRA INFORM REPORT

Report No. :	354133
Report Date :	10.12.2015

IDENTIFICATION DETAILS

Name :	UTTAM GEMS PRIVATE LIMITED
Registered Office :	Upper Ground Floor, Office 15, Diamond World Tower – B, Beside Princess Plaza, Varacha Road, Surat – 395006, Gujarat
Tel. No.:	91-261-23923090
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	08.04.2013
Com. Reg. No.:	04-074396
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U36911GJ2013PTC074396
IEC No.:	5213006841
TAN No.: [Tax Deduction & Collection Account No.]	SRTU00907E
PAN No.: [Permanent Account No.]	AABCU5679H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Exporter of polished and rough diamonds. (Confirmed by management)
No. of Employees :	08 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 5200
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company incorporated in the year 2013 having moderate track. The company possesses weak operational performance due to low profit margin recorded during the year 2015. Further, it has huge external borrowings recorded in the books. However, trade relations are improving. Business is active. Payment terms are reported to be slow but correct. In view of aforesaid, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Anurag
Designation :	Accountant
Contact No.:	91-9987851974
Date :	09.12.2015

LOCATIONS

Registered Office / Factory :	Upper Ground Floor, Office 15, Diamond World Tower – B, Beside Princess Plaza, Varacha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-23923090
Mobile No.:	91-9987851974 (Mr. Anurag)
Fax No.:	Not Available
E-Mail :	kushal_exports@yahoo.com uttamgemspvtltd@gmail.com
Location :	Owned
Locality :	Industrial

DIRECTORS

As on 31.03.2015

Name :

Mr. Rajesh M. Ranka

Designation :

Director

Address :

B 704, Veena Sargam Building, Kandivli West, Mumbai - 400067, Maharashtra, India

Date of Birth/Age :

01.05.1975

Date of Appointment :

08.04.2013

PAN No.:

AGXPR5614A

DIN No.:

02613105

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	U51109MH2009PTC192200	MANMOHAN EXPORTS PRIVATE LIMITED	Director	05/05/2009	05/05/2009	-	Active	NO
2	U36911GJ2013PTC074396	UTTAM GEMS PRIVATE LIMITED	Director	08/04/2013	08/04/2013	-	Active	NO

Name :

Mr. Naveen Kishan Gopal Sharma

Designation :

Director

Address :

202, A Wing, Shankeshwar Building, Padmavati Nagar, Near Maxus Mall, Bhayandar (West), Thane - 401101, Maharashtra, India

Date of Birth/Age :

11.10.1981

Date of Appointment :

08.04.2013

PAN No.:

BATPS4152H

DIN No.:

06468527

MAJOR SHAREHOLDERS

As on 08.10.2014

Names of Shareholders	No. of Shares	% of Holding
Rajesh M Ranka	5000	50.00
Naveen Kishan Gopal Sharma	5000	50.00
Total	10000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 08.10.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Exporter of polished and rough diamonds. (Confirmed by management)
Products :	· Polished Diamonds · Rough Diamonds
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Product :	Polished Diamonds
Countries :	· Dubai · Belgium · United State of America · Hong Kong
Imports :
Product :	· Polished Diamond · Rough Diamond
Countries :	· United State of America · Japan · Dubai · Belgium
Terms :
Selling :	Cash, Cheque and Credit (30/60/90 Days)
Purchasing :	Cash, Cheque and Credit (30/60/90 Days)

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Manmohan Export Private Limited

Name of the Person :

Mr. Rajesh (Director)

Contact No.:

91-9702387929

Since How Long Known :

2.5 Years

Experience :

Payment Behaviour	Market Goodwill	Overall
Excellent	Excellent	Excellent

Maximum Limit Dealt :

Rs.3000.000 Million

Remark :

As Claimed by Mr. Rajesh (Director) that he is fully satisfied with subject company.

Customers :

End Users

Reference :

Yogi Diam

Name of the Person :

Mr. Rohit (Accountant)

Contact No.:

91-9987965027

Since How Long Known :

2.5 Years

Experience :

Product Quality	Delivery Behaviour	Overall
Excellent	Excellent	Excellent

Maximum Limit Dealt :

Not Divulged

Remark :

As claimed by Mr. Rohit (Accountant) that he is fully satisfied with subject company.

No. of Employees :

08 (Approximately)

Bankers :

Banker Name	Yes Bank Limited
Branch Address	Ground Floor, 396, 410, Lamington Road, Mumbai – 400004, Maharashtra, India
Person Name (With Designation)	Mr. Shabir (Relationship Manager)
Contact Number	91-9769880628
Name of Account Holder	Uttam Gems Private Limited
Account Number	018986700001893
Account Since (Date/Year of Account Opening)	2.5 Years
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	P Jagetia and Company Chartered Accountants
Address :	508, 21 Century Business Center, Ring Road, Surat – 395002, Gujarat, India
PAN No.:	AAFFP8153J
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern :	· Shrenik Diamond Private Limited · Khushboo Diamond Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100
(b) Reserves & Surplus	1.723	0.814
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1.823	0.914
(3) Non-Current Liabilities
(a) long-term borrowings	17.100	17.600
(b) Deferred tax liabilities (Net)	0.027	0.001
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	17.127	17.601
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	2308.750	1571.595
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	0.682	1.100
Total Current Liabilities (4)	2309.432	1572.695
TOTAL	2328.382	1591.210
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.099	0.015
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.011	0.014
Total Non-Current Assets	1.110	0.029
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.011	0.011
(c) Trade receivables	2099.063	1476.711
(d) Cash and cash equivalents	22.129	21.903
(e) Short-term loans and advances	206.069	92.556
(f) Other current assets	0.000	0.000
Total Current Assets	2327.272	1591.181
TOTAL	2328.382	1591.210

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014
	SALES
	Income	5516.906	3810.469
	Other Income	34.892	14.777
	TOTAL	5551.798	3825.246
Less	EXPENSES
	Purchases of Stock-in-Trade	5525.819	3806.746
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	(0.011)
	Employees benefits expense	1.418	0.545
	Other expenses	22.340	16.539
	TOTAL	5549.577	3823.819
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2.221	1.427
Less	FINANCIAL EXPENSES	0.750	0.249
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1.471	1.178
Less/ Add	DEPRECIATION/ AMORTISATION	0.097	0.001
	PROFIT/ (LOSS) BEFORE TAX	1.374	1.177
Less	TAX	0.465	0.363
	PROFIT/ (LOSS) AFTER TAX	0.909	0.814
	Earnings / (Loss) Per Share (Rs.)	90.9	81.4

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014
Current Maturities of Long term debt	NA	NA
Cash generated from operations	NA	NA
Net cash flows from operating activities	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014
Net Profit Margin (PAT/Sales)	(%)	0.02	0.02
Operating Profit Margin (PBDIT / Sales)	(%)	0.04	0.04
Return on Total Assets (PBT/Total Assets}	(%)	0.06	0.07
Return on Investment (ROI) (PBT/Networth)		0.75	1.29
Debt Equity Ratio (Total Debt/Networth)		9.38	19.26
Current Ratio (Current Asset/Current Liability)		1.01	1.01

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	0.100
Reserves & Surplus	0.814	1.723
Net worth	0.914	1.823
long-term borrowings	17.600	17.100
Short term borrowings	0.000	0.000
Total borrowings	17.600	17.100
Debt/Equity ratio	19.256	9.380

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	3810.469	5516.906
		44.783

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	3810.469	5516.906
Profit	0.814	0.909
	0.02%	0.02%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	Yes
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last two years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	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 & 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.

Note:

The registered address of the company has been shifted from the 219, World Diamond Centre, Hathfalia, Haripura, Surat – 395003, Gujarat, India to the present address.

UNSECURED LOANS:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG TERM BORROWINGS
Loans and advances from others	NA	17.600
Total	NA	17.600

INDEX OF CHARGES = NO CHARGES EXIST FOR COMPANY

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.66.75
UK Pound	1	Rs.100.29
Euro	1	Rs.72.89

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	HNA
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		26

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.