MIRA INFORM REPORT

Report No. :	354427
Report Date :	15.12.2015

IDENTIFICATION DETAILS

Name :	DIVINE GEMS
Registered Office :	101 to 104, Jamnasmruti Building, Nandu Doshi Ni Wadi, Near Police Chowki, Katargam Road, Surat – 395004, Gujarat
Tel. No.:	91-261-2533591
Country :	India
Financials (as on) :	31.03.2015
Year of establishment :	2011
Capital Investment / Paid-up Capital :	Rs. 12.812 million
IEC No.:	5211026811
TAN No.: [Tax Deduction & Collection Account No.]	AAHFD8201F
PAN No.: [Permanent Account No.]	SRTD04576F
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Importer of Diamonds. (Confirmed by management)
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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 an established partnership concern having satisfactory track. For the financial year ended 2015, the company has healthy operational activity marked by decent sales turnover and profit earnings. Further, the concern has satisfactory financial base along with low debt levels. Business is active. Payments are usually correct. The concern 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 – 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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. Kalpesh
Designation :	Manager
Contact No.:	91-9898318686
Date :	11.12.2015

LOCATIONS

Registered Office/ Factory :	101 to 104, Jamnasmruti Building, Nandu Doshi Ni Wadi, Near Police Chowki, Katargam Road, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2533591
Mobile No.:	91-9898318686 (Mr. Kalpesh)
Fax No.:	Not Available
Email:	divinegems@gmail.com kmoradiya@hotmail.com amb.surat@gmail.com
Area:	2500 sq. Ft.
Location:	Owned
Locality:	Industrial

PARTNERS

Name :	Mr. Kalpeshbhai V. Moradiya
Designation :	Partner
Address:	77, Bhumipuja Society, Near Govindji, Hall, Dabholi Road, Katargam, Surat – 395004, Gujarat, India
Age:	27 Years
Qualification:	11^th
Name :	Mr. Mukeshbhai B. Moradiya
Designation :	Partner
Address:	77, Bhumipuja Society, Near Govindji, Hall, Dabholi Road, Katargam, Surat – 395004, Gujarat, India
Age:	38 Years
Qualification:	B.com
Name :	Mr. Vitthalbhai K. Moradiya
Designation :	Partner
Address:	77, Bhumipuja Society, Near Govindji, Hall, Dabholi Road, Katargam, Surat – 395004, Gujarat, India
Age:	52 Years
Qualification:	5th
Name :	Mr. Vipulbhai B. Moradiya
Designation :	Partner
Address:	77, Bhumipuja Society, Near Govindji, Hall, Dabholi Road, Katargam, Surat – 395004, Gujarat, India
Age:	29 Years
Qualification:	10th
Name :	Mr. Sanjaybhai V. Moradiya
Designation :	Partner
Address:	77, Bhumipuja Society, Near Govindji, Hall, Dabholi Road, Katargam, Surat – 395004, Gujarat, India
Age:	29 Years
Qualification:	10th

KEY EXECUTIVES

Name :	Mr. Kalpesh
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamonds. (Confirmed by management)
Products :	Diamonds
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	USA
Imports :
Products :	Raw Material
Countries :	Dubai Belgium
Terms :
Selling :	Cash, L/C and Credit (30/60 Days)
Purchasing :	Cash, L/C and Credit (30/60 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Diamond Trading NV, Belgium
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesalers, Retailers and End Users

Reference :

Rupali Gems, Ahmedabad, Gujarat

Name of the Person :

Mr. Kamlesh (Proprietor)

Contact No.:

91-9426562756

Since How Long Known :

4 Years

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behavior	Overall
Good	Good	Good

Remark:

They gave us positive response about subject company they are satisfied with their product quality and delivery behavior.

No. of Employees :

125 (Approximately)

Bankers :

• Bank of India, Swaminarayan Mandir Road, Rampura, Surat, Gujarat, India
• HDFC Bank Limited
• Kotak Mahindra Bank

Banker Name	Yes Bank Limited
Branch Address	Ground Floor, Mangal deep, Ring Road, Landmark, Near Mahavir Hospital, Near RTO, Surat – 395001, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	91-261-6629000 (Continuously Ringing)
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)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	Corporation Bank Limited
Branch Address	Ring Road, Surat, Gujarat, India
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)	Overdraft – Rs. 20.000 million (not confirmed from Bank)
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	R.M. Bhungaliya and Company Chartered Accountants
Address :	Diamond, Mahidharpura, Surat, Gujarat, India
Mobile No.:	91-9574992360
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	---

CAPITAL STRUCTURE

As on: 31.03.2015

Capital Investment :
Owned :	Rs. 12.812 million
Borrowed :	--
Total :	Rs. 12.812 million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1} Partner Capital		12.812	16.334	6.806
2] Share Application Money		0.000	0.000	0.00
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.812	16.334	6.806
LOAN FUNDS
1] Secured Loans		18.706	12.671	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		18.706	12.671	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		31.518	29.005	6.806
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.153	5.491	4.411
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.418	0.389	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.522	11.290	10.041
	Sundry Debtors	14.961	34.070	8.833
	Cash & Bank Balances	0.283	0.148	0.379
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.045	3.615	0.000
Total Current Assets		48.811	49.123	19.253
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.864	25.998	16.858
	Other Current Liabilities	0.000	0.000	0.000
	Expenses Payable	0.000	0.000	0.000
Total Current Liabilities		21.864	25.998	16.858
Net Current Assets		26.947	23.125	2.395
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		31.518	29.005	6.806

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	96.362	80.120	48.827
		Other Income	0.032	0.435	0.000
		TOTAL	96.394	80.555	48.827
Less	EXPENSES
		Raw Materials Consumed	80.392	64.761	41.791
		Increase Decrease in Stock	(9.526)	(3.204)	(4.560)
		Purchases of Stock-in-Trade	2.488	0.000	0.000
		Direct Expenses	16.780	14.000	8.891
		Administrative Expense	2.299	1.950	1.585
		TOTAL	92.433	77.507	47.707
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		3.961	3.048	1.120
	FINANCIAL EXPENSES		2.438	1.636	0.027
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.523	1.412	1.093
	DEPRECIATION/ AMORTISATION		0.739	0.837	0.784
	NET PROFIT		0.784	0.575	0.309

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.81	0.72	0.63
Operating Profit Margin (PBIDT/Sales)	(%)	4.11	3.80	2.29
Return on Total Assets (PBT/Total Assets}	(%)	1.48	1.05	1.31
Return on Investment (ROI) (PBT/Networth)		0.06	0.04	0.05
Debt Equity Ratio (Total Debt /Networth)		1.46	0.78	0.00
Current Ratio (Current Asset/Current Liability)		2.23	1.89	1.14

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Partner Capital	6.806	16.334	12.812
Reserves & Surplus	0.000	0.000	0.000
Net worth	6.806	16.334	12.812
Secured Loan	0.000	12.671	18.706
Unsecured Loan	0.000	0.000	0.000
Total Loan	0.000	12.671	18.706
Debt/Equity ratio	0.000	0.776	1.460

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	48.827	80.120	96.362
		64.090	20.272

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	48.827	80.120	96.362
Profit	0.309	0.575	0.784
	0.63%	0.72%	0.81%

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	Yes
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	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
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 8th Century B.C.  India, in fact, remained undisputed leader till 18th 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 30th 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.

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.66.99
UK Pound	1	Rs.101.78
Euro	1	Rs.73.47

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	TRI
Report Prepared by :	MTN

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	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.