MIRA INFORM REPORT

Report No. :	307283
Report Date :	12.02.2015

IDENTIFICATION DETAILS

Name :	KOMAL EXPORTS
Registered Office :	301, Sidharth Complex, Above Navrang Khaman, Varachha Road, Surat – 395006, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	2006
Capital Investment :	Rs. 26.160 Millions
IEC No.:	5205031484
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAHFK7408H
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
No. of Employees :	145 (Approximately) [In Office: 35 + In Factory: 100 + In Branch: 10]

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having moderate track record. Management has reported high total outside liabilities to tangible networth ratio during FY 14. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of modest scale of its operations, the concern 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 – 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

Name :	Mr. Haresh Keshavbhai Jasoliya
Designation :	Partner
Contact No.:	91-9909093006
Date :	11.02.2015

LOCATIONS

Registered Office :	301, Sidharth Complex, Above Navrang Khaman, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-2557918
Mobile No.:	91-9909093006 (Mr. Haresh Keshavbhai Jasoliya)
Fax No.:	Not Available
E-Mail :	komal.exports@yahoo.com
Location :	Rented
Branch Office :	DW-6100, Bharat Diamond Bourse, Bandra (East), Mumbai - 400051, Maharashtra, India
Tel. No.:	91-22-40223372
Location :	Rented

PARTNERS

Name :	Mr. Haresh Keshavbhai Jasoliya
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	01.07.1986
Experience :	7 Years
PAN No.:	AFXPJ4972J
Name :	Mr. Pravinbhai Harjibhai Jasoliya
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	08.09.1966
Experience :	25 Years
PAN No.:	AFSPP8582P
Name :	Mr. Keshavbhai Harjibhai Jasoliya
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	19.02.1959
Experience :	25 Years
PAN No.:	AFUPP6392M
Name :	Mr. Hiteshbhai Himatbhai Jasoliya
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	27.04.1885
Experience :	12 Years
PAN No.:	AHZPD3177R
Name :	Mr. Hardik Pravinbhai Jasoliya
Designation :	Partner
Address :	Surat, Gujarat, India
Date of Birth/Age :	02.07.1992
Experience :	7 Years

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Polished Diamond
Countries :	· Hong Kong · USA
Imports :
Products :	Rough Diamond
Countries :	· Antwerp · Dubai
Terms :
Selling :	Credit (90 Days)
Purchasing :	Credit (90 Days/ 120 Days)

GENERAL INFORMATION

Suppliers :

Reference:	Swadip Gems BVBA, Antwerp
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Wholesalers

Reference:	Swaminarayan Diamonds Private Limited
Name of the Person (with Designation):	Mr. Nagji Patel (Director)
Contact Number:	91-9820900043
Since How Long Known:	8 Years
Maximum Limit Dealt:	Rs. 100.000 Millions
Experience :	Product Quality: Excellent Delivery Behaviour: Excellent Overall: Excellent
Remarks :	Mr. Nagjibhai Patel informed that the subject has excellent in quality and delivery behaviour.

No. of Employees :

145 (Approximately) [In Office: 35 + In Factory: 100 + In Branch: 10]

Bankers :

Bank Name:	Corporation Bank
Branch:	Shahpur (Branch), Surat, Gujarat, India
Name of the Person (with Designation):	Mr. Subharao
Contact Number:	91-704333662 91-261-2631451
Name of Account Holder:	KOMAL EXPORTS
Account Number:	018500401130010
Account Since (Date/ Year of A/c Opening):	2 Years
Average Balance Maintained (Optional):	-
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit: Rs. 36.000 Millions
Account Operation:	Not Divulged
Remarks: Mr. Subharao denied to provide his opinion about the subject company.

Bank Name:	Indusind Bank
Branch:	Varachha Branch, Surat, Gujarat, India
Name of the Person (with Designation):	Mr. Pawar
Contact Number:	91-9726855955
Name of Account Holder:	KOMAL EXPORTS
Account Number:	--
Account Since (Date/ Year of A/c Opening):	4 Month Ago
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	Satisfactory
Remarks: Mr. Pawar informed that the subject having satisfactory behaviour with the bank.

Corporation Bank, Rock Ford Branch, Udhna, Surat, Gujarat, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Surat Peoples Bank Loan		1.725
Total	37.460	1.725

Auditors :
Name :	C G Patwa and Associates Chartered Accountants
Address :	2^nd Floor, Mahavir Chamber, Opposite Bhagunagar, Matawadi, Surat - 395006, Gujarat, India
Mobile No.:	91-8264181408/ 9426152429
Income-tax PAN of auditor or auditor's firm :	AAHFC7124N
Memberships :	--
Collaborators :	--
Sister Concerns:	Hariom Synthetics Address: Diamond Nagar, Kamrej Road, Surat, Gujarat, India Line of Business: Manufacturing of Grey Cloth.

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs. 26.160 Millions
Borrowed :	--
Total :	Rs. 26.160 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Partners Capital		26.160	8.758	9.354
2] Share Application Money		0.000	0.000	0.000
3] Profit and Loss Account		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.160	8.758	9.354
LOAN FUNDS
1] Secured Loans		37.460	1.725	0.421
2] Unsecured Loans		3.972	0.637	0.421
TOTAL BORROWING		41.432	2.362	0.842
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		67.592	11.120	10.196
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.750	3.756	2.235
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.310	0.114	0.088
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	132.503	79.312	25.509
	Sundry Debtors	34.595	16.319	1.758
	Cash & Bank Balances	0.135	2.933	1.146
	Other Current Assets	0.000	0.000	0.323
	Loans & Advances	4.260	0.658	0.406
Total Current Assets		171.493	99.222	29.142
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	107.479	91.469
	Other Current Liabilities	1.364	0.447	21.228
	Provisions	0.118	0.056	0.041
Total Current Liabilities		108.961	91.972	21.269
Net Current Assets		62.532	7.250	7.873
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		67.592	11.120	10.196

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	274.183	135.592	91.015
		Other Income	0.083	0.025	0.004
		TOTAL (A)	274.266	135.617	91.019
Less	EXPENSES
		Purchase	296.330	180.605	0.000
		Material Consumed	0.000	0.000	83.984
		Direct Expenses	15.142	0.000	4.636
		Administrative Expenses	4.192	2.057	4.385
		Selling and Distribution Expenses	0.188	0.059	0.000
		Indirect Expenses	1.817	3.187	0.000
		Increase/ (Decrease) in Stock	(53.191)	(53.803)	(4.541)
		TOTAL (B)	264.478	132.105	88.464
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.788	3.512	2.555
Less	FINANCIAL EXPENSES (D)		3.740	1.133	1.068
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.048	2.379	1.487
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.998	0.660	0.390
	NET PROFIT/ (LOSS) (E-F) (G)		5.050	1.719	1.097

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.84	1.27	1.21
Operating Profit Margin (PBDIT/Sales)	(%)	3.57	2.59	2.81
Return on Total Assets (PBT/Total Assets}	(%)	2.87	1.67	3.50
Return on Investment (ROI) (PBT/Networth)		0.19	0.20	0.12
Debt Equity Ratio (Total Debt/Networth)		1.58	0.27	0.10
Current Ratio (Current Asset/Current Liability)		1.57	1.08	1.37

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Partners Capital	9.354	8.758	26.160
Reserves & Surplus	0.000	0.000	0.000
Net worth	9.354	8.758	26.160
Secured Loans	0.421	1.725	37.460
Unsecured Loans	0.421	0.637	3.972
Total borrowings	0.842	2.362	41.432
Debt/Equity ratio	0.090	0.270	1.584

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	91.015	135.592	274.183
		48.978	102.212

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	91.015	135.592	274.183
Profit	1.097	1.719	5.050
	1.21%	1.27%	1.84%

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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
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 LOAN

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Keshavbhai Harajibhai Loan		0.637
Total	3.972	0.637

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.62.15
UK Pound	1	Rs.94.72
Euro	1	Rs.70.33

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	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		32

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.