MIRA INFORM REPORT

Report No. :	308438
Report Date :	18.02.2015

IDENTIFICATION DETAILS

Name :	OOPAL DIAMOND
Registered Office :	Suite, 8^th Floor, B Wing, Laxmi Tower, BKC Bandra East, Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Year of establishment :	1997
Capital Investment / Paid-up Capital :	Rs. 131.792 Millions
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an unlimited liability of the partners.
Line of Business :	Processor of Rough Diamond to Polish Diamond.
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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. Profitability of the concern seems to be low during 2014. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. 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

Rating Agency Name	CARE Rating
Rating	Short term Bank facilities = A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	December 31, 2014

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. Nitin Inankar
Designation :	Accounts Manager
Contact No.:	91-9594210003
Date :	16.02.2015

LOCATIONS

Registered Office :	Suite, 8^th Floor, B Wing, Laxmi Tower, BKC Bandra East, Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-61771111
Mobile No.:	91-9594210003 (Mr. Nitin Inankar)
Fax No.:	91-22-61771112
E-Mail :	nitin@oopaldiamond.com info@oopaldiamond.com
Website :	http://www.oopaldiamond.com
Area :	2500 Sq. ft.
Location :	Owned
Factory :	Opposite City Police Station, Deesa Gujarat, India

PARTNERS

Name :	Mr. Ashish Doshi
Designation :	Partner
Name :	Mr. Shashikant Doshi
Designation :	Partner
Name :	Madam Deepika Doshi
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Nitin Inankar
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Processor of Rough Diamond to Polish Diamond.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Polish Diamond
Countries :	· USA · Israel · Belgium
Imports :
Products :	Rough Diamond
Countries :	· USA · Belgium
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Shah Import Export
Name of the Person :	BVBA – Belgium
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Euro Store Limited, Israel
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

450 (Approximately)

Bankers :

Banker Name	Bank of India
Branch Address	Bharat Diamond Bourse Mid Corporate Branch
Person Name (With Designation)	Badri N Mahapatra (Chief Manager)
Contact Number	91-22-61870735
Name of Account Holder	Oopal Diamond
Account Number	007682600000136, 016782710000003, 007685100000121, 007685100000321
Account Since (Date/Year of Account Opening)	2004
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Rs. 150.000 Millions
Account Operation	Satisfactory
Remarks (If any)	--

Auditors :
Name :	Ramesh Rajni and Company Chartered Accountants
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 131.792 Millions
Borrowed :	--
Total :	Rs. 131.792 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2014-2015): Rs. 1350.000 Millions

The above information has been parted by Mr. Nitin Inankar (Accounts Manager)

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] Partner’s Capital		131.792	124.347	88.329
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		131.792	124.347	88.329
LOAN FUNDS
1] Secured Loans		149.710	149.531	109.931
2] Unsecured Loans		0.231	0.216	0.000
TOTAL BORROWING		149.941	149.747	109.931
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		281.733	274.094	198.260
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.724	9.895	3.684
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.028	0.014	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	476.355	364.677	156.043
	Sundry Debtors	279.429	347.851	204.396
	Cash & Bank Balances	13.980	12.453	4.792
	Other Current Assets	2.986	1.957	1.184
	Loans & Advances	33.509	30.906	33.502
Total Current Assets		806.259	757.844	399.917
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	533.186	493.585	205.006
	Other Current Liabilities	0.092	0.074	0.084
	Provisions	0.000	0.000	0.251
Total Current Liabilities		533.278	493.659	205.341
Net Current Assets		272.981	264.185	194.576
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		281.733	274.094	198.260

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	906.326	909.537	910.360
		Other Income	0.537	0.433	0.377
		TOTAL	906.863	909.970	910.737
Less	EXPENSES
		Cost of goods sold	832.062	840.021	860.065
		Labour Charges	18.716	15.356	7.903
		Sales and Administrative Expenses	24.755	23.384	14.303
		Interest Paid	7.174	11.526	12.933
		Loss on sale assets	0.000	0.057	0.000
		Interest to Partners	10.485	6.699	4.657
		Salary to Partners	1.300	1.300	1.300
		TOTAL	894.492	898.343	901.161
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		12.371	11.627	9.576
Less/ Add	DEPRECIATION/ AMORTISATION		1.253	1.479	0.651
	PROFIT/ (LOSS) BEFORE TAX		11.118	10.148	8.925
Less	TAX		3.820	3.155	2.776
	PROFIT/ (LOSS) AFTER TAX		7.298	6.993	6.149

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.81	0.77	0.68
Return on Total Assets (PBT/Total Assets}	(%)	1.36	1.32	2.21
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.10
Debt Equity Ratio (Total Liability/Networth)		1.14	1.20	1.24
Current Ratio (Current Asset/Current Liability)		1.51	1.54	1.95

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Partners’ Capital	88.329	124.347	131.792
Profit and Loss Account	0.000	0.000	0.000
Net worth	88.329	124.347	131.792
Secured Loans	109.931	149.531	149.710
Unsecured Loans	0.000	0.216	0.231
Total borrowings	109.931	149.747	149.941
Debt/Equity ratio	1.245	1.204	1.138

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	910.360	909.537	906.326
		(0.090)	(0.353)

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	910.360	909.537	906.326
Profit	6.149	6.993	7.298
	0.68%	0.77%	0.81%

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	Yes
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 three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--------------
14]	Estimation for coming financial year	Yes
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	Yes
26]	Buyer visit details	---------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	Yes
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	Yes

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. 62.20
UK Pound	1	Rs. 96.00
Euro	1	Rs. 71.00

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	RAS
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		28

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.