MIRA INFORM REPORT

Report No. :	354351.2
Report Date :	19.12.2015

IDENTIFICATION DETAILS

Name :	SUNDARAM JEWELLERY
Registered Office :	Unit 26, SDF 1, SEEPZ SEZ, Andheri (East), Mumbai - 400 096, Maharashtra
Tel. No.:	91-22-30882910/ 13/ 14
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	24.12.2004
Capital Investment / Paid-up Capital :	Not Divulged
IEC No.:	0304084981
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	ABAFS9730Q
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer and Exporter of Diamond Jewellery. (Confirmed by Management)
No. of Employees :	90 (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 :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a partnership firm in 2004, and it is engaged in manufacturing, exporting and importing of diamond jewellery. It has satisfactory track record. As per 2015 financial, the concern has reported increase in its sales revenue by 17% against previous year record which further resulted to rise in net profitability by 19%. Further, it has fair capital position. The rating continues to derive strengths from the vast experience of the partners in jewellery business. However, the rating strengths are partially offset by highly intense competitive diamond industry along with risk associated with the legal status of the subject as partnership concern for withdrawal of capital by the partners. Trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of extensive experience of the partners, 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	CARE
Rating	Short Term Bank Facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	22.09.2015

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 (GENERAL DETAILS)

Name :	Mr. Pradeep Agarwal
Designation :	Account Manager
Contact No.:	91-22-30882910
Date :	09.12.2015

LOCATIONS

Registered Office/ Factory :	Unit 26, SDF 1, SEEPZ SEZ, Andheri (East), Mumbai - 400 096, Maharashtra, India
Tel. No.:	91-22-30882910/ 13/ 14
Mobile No.:	Not Available
Fax No.:	91-22-30882916
E-Mail :	accounts@sundaramjewelry.com
Website :	http://www.sundaramjewelry.com
Area :	5000 Sq. Ft.
Location :	Leased
Locality :	Industrial

PARTNERS

Name :	Mrs. Alka Desai
Designation :	Partner
Name :	Mrs. Pallevi Desai
Designation :	Partner
Name :	Mr. Pushpak Desai
Designation :	Partner
Name :	Mrs. Krutika Desai
Designation :	Partner
Name :	Mrs. Silvi P. Desai
Designation :	Partner
Name :	Mr. Vinod Desai
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Pradeep Agarwal
Designation :	Account Manager

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Diamond Jewellery. (Confirmed by Management)
Products :	Diamond Jewellery
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	United State of America Hong Kong United Arab Emirates
Imports :
Products :	Raw Materials
Countries :	Italy Hong Kong United State of America Germany
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Payment Behaviour Market Goodwill Not Divulged Overall
Remark :	Not Divulged

Customers :

Wholesalers, Retailers and Manufacturer

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Product Quality Delivery Behaviour Not Divulged Overall
Remark :	Not Divulged

No. of Employees :

90 (Approximately)

Bankers :

Banker Name :	Union Bank of India
Branch :	Mumbai, Maharashtra, India
Person Name (With Designation) :	Not Available
Contact Number :	Not Available
Name of Account Holder :	Not Available
Account Number :	Not Available
Account Since (Date/Year of Account Opening) :	Not Available
Average Balance Maintained :	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Available
Account Operation :	Not Available
Remark :	Not Available

Auditors :
Name :	V. A. Parikh and Association Chartered Accountants
Address :	Mumbai, Maharashtra, India
Collaborators :	Not Divulged
Membership :	Not Divulged
Sister Concern :	Sundaram Exports

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	Not Divulged
Total :	Not Divulged

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014
PROPRIETORS FUNDS
1] Proprietors capital Account		76.723	67.257
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		76.723	67.257
LOAN FUNDS
1] Secured Loans		79.181	82.358
2] Unsecured Loans		0.000	6.420
TOTAL BORROWING		79.181	88.778
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		155.904	156.035
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.868	12.979
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	48.880	28.112
	Sundry Debtors	152.367	155.380
	Cash & Bank Balances	11.190	2.354
	Other Current Assets	0.000	0.000
	Loans & Advances	10.823	10.613
TOTAL CURRENT ASSETS		223.260	196.459
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000
	Other Current Liabilities	75.742	48.492
	Provisions	5.482	4.911
TOTAL CURRENT LIABILITIES		81.224	53.403
Net Current Assets		142.036	143.056
MISCELLANEOUS EXPENSES		0.000	0.000
DEFERRED TAXATION		0.000	0.000
TOTAL		155.904	156.035

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014
	SALES
		Sales	332.570	284.438
		Other Business Income	0.459	0.505
		Other Income	0.367	0.138
		TOTAL	333.396	285.081
Less	EXPENSES
		Cost of Raw Materials	283.625	237.225
		Office and Administration Expenses	9.525	8.498
		Selling and Distribution Expenses	2.418	5.565
		Other Expenses	0.017	0.108
		TOTAL	295.585	251.396
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		37.811	33.685
Less	FINANCIAL EXPENSES		9.582	9.921
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		28.229	23.764
Less	DEPRECIATION/ AMORTISATION		2.685	2.390
	PROFIT/ (LOSS) BEFORE TAX		25.544	21.374
Less	TAX		5.358	4.500
	PROFIT/ (LOSS) AFTER TAX		20.186	16.874

Expected Sales (2015-2016): Rs.400.000 Million.

The above information has been parted by Mr. Pradeep Agarwal (Account Manager).

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

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
Cash generated from (Used) operations	NA	NA
Cash generated from Operating Activities	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014
Net Profit Margin (PAT / Sales)	(%)	6.06	5.93
Operating Profit Margin (PBIDT/Sales)	(%)	11.36	11.84
Return on Total Assets (PBT/Total Assets}	(%)	16.38	13.70
Return on Investment (ROI) (PBT/Networth)		0.33	0.31
Debt Equity Ratio (Total Debt /Networth)		1.03	1.32
Current Ratio (Current Asset/Current Liability)		2.75	3.68

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	67.257	76.523
Reserves & Surplus	0.000	0.000
Net worth	67.257	76.523
Secured Loans	82.358	79.181
Unsecured Loans	6.420	0.000
Total borrowings	88.778	79.181
Debt/Equity ratio	1.320	1.035

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	284.438	332.570
	--	16.922

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	284.438	332.570
Profit	16.874	20.186
	5.93%	6.07%

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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	No
19	Major customers	No
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 two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
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

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 records 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. 66.42
UK Pound	1	Rs. 99.17
Euro	1	Rs. 72.14

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	HNA
Report Prepared by :	SYL

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	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		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.