MIRA INFORM REPORT

Report No. :	307751
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	MITTAL GEMS
Registered Office :	C-801, Sunlit Height Co-Operative Housing Society Limited, Opposite Union Bank Of India, S. V. Road, Dahisar (East), Mumbai – 400068, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	2010
Capital Investment / Paid-up Capital :	Rs.0.832 Million
IEC No.:	Not Available
TIN No.:	27341017582
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer, Exporter and Importer of Diamonds. (Job Work)
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Small Business
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small partnership concern in its field. Its scale of activities are limited. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The concern can be considered small 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

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. Arvind Patel
Designation :	Accountant
Contact No.:	91-9920485073
Date :	12.02.2015

LOCATIONS

Registered Office :	C-801, Sunlit Height Co-Operative Housing Society Limited, Opposite Union Bank Of India, S. V. Road, Dahisar (East), Mumbai – 400068, Maharashtra, India
Tel. No.:	91-22-28972160
Mobile No.:	91-9920485073 (Mr. Arvind Patel)
Fax No.:	Not Available
E-Mail :	Arvindpatel_85acc@yahoo.com
Head Office :	211, Vardhman Industries, Behind Petrol Pump, S. V. Road, Dahisar (East), Mumbai – 400068, Maharashtra, India

PARTNERS

Name :	Mr. Rameshbhai V. Zalavadia
Designation :	Partner
Name :	Mr. Ashok V. Zalavadia
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Arvind Patel
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamonds. (Job Work)
Products :	Diamonds
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Diamond
Countries :	· Hong Kong · Bangkok · Belgium
Imports :
Products :	Diamond
Countries :	· Belgium · London
Terms :
Selling :	Cash, Advance Payment, L/C, Cheque and Credit
Purchasing :	Cash, Advance Payment, L/C, Cheque and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Minda Brothers, Belgium
Name Of The Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Not Divulged

· Evershine Enterprises

· Galaxy Diamonds Laser Sawing and Booting

· J.R.Diam BVBA

· Minda Bros

· Perfect Diamond Process

· Shree Hari Laser

· Shuretal Diam

Customers :

Reference :	Moksh Diamonds
Name of the Person :	Mr. Ramesh K. Patel (Partner)
Contact No.:	91-9322680852
Since How Long Known :	5 Years
Experience :	Product Quality – Good Delivery Behaviour – Good Overall - Good
Maximum Limit Dealt :	Rs.10.000 Millions (Yearly)
Remark :	They give positive response about subject company they are satisfied with their product quality and delivery behavior.

· Diamond's Heritage

· Golcha Enterprises

· Param Exports

No. of Employees :

15 (Approximately)

Bankers :

· Union Bank of India, Dahisar (East), Mumbai – 400068, Maharashtra, India

· HDFC Bank Limited, Dahisar (East), Mumbai – 400068, Maharashtra, India

· Syndicate Bank, Malad (East), Mumbai, Maharashtra, India

· ING Vysya Bank, Opera House, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
HDFC Car Loan	0.822	0.000
Total	0.822	0.000

Banking Relations :	--
Auditors :
Name :	Dalpat Dholria and Company Chartered Accountants
Address :	12, Jivanjyoti, Ground Floor, Carter Road No. 1, Borivali (East), Mumbai – 400066, Maharashtra, India
Memberships :	--
Sister Concerns :	Not Divulged

CAPITAL STRUCTURE

As on 31.03.2014

Particulars	Rs. In Millions
Mr. Rameshbhai V. Zalavadia	0.405
Mr. Ashok V. Zalavadia	0.427
Total	0.832

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		0.832	0.371
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		0.832	0.371
LOAN FUNDS
1] Secured Loans		0.822	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.822	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		1.654	0.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.556	0.104
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	27.479	0.000
	Sundry Debtors	5.471	0.659
	Cash & Bank Balances	0.512	0.576
	Other Current Assets	0.000	0.000
	Loans & Advances	0.267	0.000
Total Current Assets		33.729	1.235
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.631	0.968
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		33.631	0.968
Net Current Assets		0.098	0.267
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1.654	0.371

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	5.303	1.477
		Other Income	4.611	0.000
		TOTAL (A)	9.914	1.477
Less	EXPENSES
		Cost of goods sold	4.837	0.000
		Labour charges	1.161	1.030
		Wages	2.050	0.000
		Clearing & Forwarding	0.016	0.000
		VAT paid	0.058	0.000
		Accounting Fees	0.020	0.008
		Audit Fees	0.013	0.000
		Bank Charges	0.001	0.000
		Consumable Stores & Spares	0.057	0.021
		Conveyance Expenses	0.045	0.013
		Electricity Charges	0.117	0.031
		Factory Rent	0.032	0.014
		Interest on Loan	0.049	0.000
		Insurance Premium	0.027	0.000
		Membership Fees	0.012	0.000
		Professional Fees	0.041	0.000
		Office Expenses	0.050	0.000
		Postage & Stamps Expenses	0.007	0.002
		Printing & Stationery Expenses	0.011	0.002
		Repair & Maintenance Expenses	0.048	0.015
		Staff Welfare Expenses	0.043	0.019
		Telephone charges	0.019	0.007
		Travelling Expenses	0.074	0.000
		VAT Registration charges	0.005	0.000
		Vehicle Expenses	0.056	0.000
		Int. on Partners Capital	0.044	0.007
		Salary to Partners	0.480	0.273
		TOTAL	9.373	1.442
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.541	0.035
Less	DEPRECIATION/ AMORTISATION		0.272	0.003
	PROFIT/(LOSS) BEFORE TAX		0.269	0.032
Less	TAX		0.083	0.000
	PROFIT/(LOSS) AFTER TAX)		0.186	0.032

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	3.51	2.17
Operating Profit Margin (PBDIT/Sales)	(%)	10.20	2.37
Return on Total Assets (PBT/Total Assets}	(%)	0.76	2.39
Return on Investment (ROI) (PBT/Networth)		0.32	0.09
Debt Equity Ratio (Total Debt /Networth)		0.99	0.00
Current Ratio (Current Asset/Current Liability)		1.00	1.28

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Share Capital	0.371	0.832
Reserves & Surplus	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	0.371	0.832
Secured Loans	0.000	0.822
Unsecured Loans	0.000	0.000
Total borrowings	0.000	0.822
Debt/Equity ratio	0.000	0.988

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Sales	1.477	5.303
		259.039

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Sales	1.477	5.303
Profit	0.032	0.186
	2.17%	3.51%

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	No
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 two 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	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	--
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	No
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 & 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.62.14
UK Pound	1	Rs.95.78
Euro	1	Rs.71.05

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUM
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		31

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.