MIRA INFORM REPORT

Report No. :	304764
Report Date :	27.01.2015

IDENTIFICATION DETAILS

Name :	SHREE RAM DIAMOND
Registered Office :	A-701, Slitaire, NI Complex, Anand Nagar, Dahisar (East), Mumbai - 400068
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment:	2011
Capital Investment / Paid-up Capital :	Rs.7.112 Millions
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Trader and Importer of Diamond
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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. Trade relations are fair. Business is active. Payment terms are reported to be 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Amit Kumar
Designation :	Partner
Contact No.:	91-9920255009
Date :	22.01.2015

LOCATIONS

Registered Office :	A-701, Slitaire, NI Complex, Anand Nagar, Dahisar (East), Mumbai – 400068, India
Tel. No.:	Not Available
Mobile No.:	91-9920255009 (Mr. Amit Kumar)
Fax No.:	Not Available
E-Mail :	shreeramdiamond@gmail.com
Website :	Not Available
Location :	Owned
Factory Office :	Vardhaman Industrial Estate, Dahisar (East), Mumbai, Maharashtra, India
Location :	Rented

PARTNERS

Name :	Mr. Amit Kumar Patel
Designation :	Partner
Name :	Mr. Ajay Patel
Designation :	Partner
Name :	Mr. Valjibhai Patel
Designation :	Partner

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Importer of Diamond
Products :	Diamonds
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Applicable
Imports :
Products :	Rough Diamonds
Countries :	Belgium
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :

Aalisha Geem - Belgium

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Payment Behaviour	Market Goodwill	Overall
---	---	---
---	---	---

Remark:

Not Available

Customers :

• Wholesales
• Retailers
• Manufacturer

Reference :

M.Shailesh – Bandra (East), Mumbai, India

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Product Quality	Delivery Behaviour	Overall
---	---	---
---	---	---

Remark:

Not Available

No. of Employees :

50 (Approximately)

Bankers :

Bank Name	HDFC Bank
Branch	Dahisar
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 (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Facilities :

---

Auditors :
Name :	P.J. Salot and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

FIXED CAPITAL ACCOUNT
MR. VALJIBHAI N. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		BY BALANCE B\F	0.010
TO BALANCE C\F	0.010
	0.010		0.010

MR. AJAY V. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		BY BALANCE B\F	0.010
TO BALANCE C\F	0.010
	0.010		0.010

MR. AMIT V. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		BY BALANCE B\F	0.010
TO BALANCE C\F	0.010
	0.010		0.010

FIXED CAPITAL ACCOUNT ANNEXURE “A”
NAME OF PARTNER	AMOUNT
Mr. Valjibhai N. Patel	0.010
Mr. Ajay V. Patel	0.010
Mr. Amit V. Patel	0.010
TOTAL	0.030

CURRENT CAPITAL ACCOUNT MR. VALJIBHAI N. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
TO PROPESSION TAX	0.015	BY BALANCE B\F	1.202
TO DRAWINGS	0.104	BY CASH INTRODUCED	0.020
TO SHARE OF FIRM TAX		BY TRF FROM SB A/C	0.500
ADVANCE TAX	0.221	BY SHARE OF FIRM INCOME
INCOME TAX	0.000	REMUNARATION	0.545
		INTEREST	0.181
		NET PROFIT	0.718
TO BALANCE C\F	2.826
	3.167		3.167

CURRENT CAPITAL ACCOUNT MR. AJAY V. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
TO DRAWINGS	0.051	BY BALANCE B\F	1.054
TO TRF TO SB A/C	0.250	BY CASH INTRODUCED	0.020
TO LIC	0.306	BY TRF FROM SB A/C	0.500
TO SHARE OF FIRM TAX		BY SHARE OF FIRM INCOME
ADVANCE TAX	0.214	REMUNARATION	0.529
INCOME TAX	0.000	INTEREST	0.161
		NET PROFIT	0.697
TO BALANCE C\F	2.140
	2.961		2.961

CURRENT CAPITAL ACCOUNT MR. AMIT V. PATEL
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		BY BALANCE B\F	1.118
TO DRAWINGS	0.110	BY CASH INTRODUCED	0.020
TO TRF TO SB A/C	0.050	BY SHARE OF FIRM INCOME
TO SHARE OF FIRM TAX		REMUNARATION	0.528
ADVANCE TAX	0.214	INTEREST	0.127
INCOME TAX	0.000	NET PROFIT	0.697
TO BALANCE C\F	2.116
	2.490		2.490

CURRENT CAPITAL ACCOUNT ANNEXURE “B”
NAME OF PARTNER	AMOUNT
Mr. Valjibhai N. Patel	2.826
Mr. Ajay V. Patel	2.140
Mr. Amit V. Patel	2.116
TOTAL	7.082

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		7.112	3.405
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		7.112	3.405
LOAN FUNDS
1] Secured Loans		10.600	0.000
2] Unsecured Loans		0.000	0.800
TOTAL BORROWING		10.600	0.800
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		17.712	4.205
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.147	3.837
	Sundry Debtors	8.050	27.065
	Cash & Bank Balances	0.244	0.103
	Other Current Assets	0.000	0.000
	Loans & Advances	9.486	2.800
Total Current Assets		20.928	33.805
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.216	29.600
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		3.216	29.600
Net Current Assets		17.712	4.205
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		17.712	4.205

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	131.301	62.750
	Other Income	(8.010)	0.103
	Closing Stock	3.147	3.837
	TOTAL	126.438	66.690
Less	EXPENSES
	Opening Stock	3.837	0.000
	Import	113.665	59.770
	Purchases	0.000	0.561
	Import Expenses	0.074	0.038
	Labour Charges	3.694	2.317
	Audit Fees	0.020	0.015
	Bank Commission	0.071	0.017
	Conveyance	0.015	0.010
	Commission and Brokerage	0.051	0.627
	Interest on TDS	0.001	0.001
	Office Expenses	0.089	0.012
	Professional Fees	0.015	0.010
	Salary	0.000	0.180
	Travelling Expenses	0.434	0.230
	Interest on Capital	0.000	0.093
	Remuneration	0.000	1.776
	Insurance expenses	0.100	0.000
	Interest on VAT	0.001	0.000
	Interest on loan	0.014	0.000
	Subscription	0.057	0.000
	Loan Processing Fees	0.117	0.000
	TOTAL	122.255	65.657
	Net Profit	4.183	1.033

Note : Sole Proprietory 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 (NP/Sales)	(%)	0.03	0.02
Return on Total Assets (PBT/Total Assets}	(%)	0.20	0.03
Return on Investment (ROI) (PBT/Networth)		0.59	0.30
Debt Equity Ratio (Total Debt /Networth)		1.49	0.23
Current Ratio (Current Asset/Current Liability)		6.51	1.14

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	3.405	7.112
Reserves & Surplus	0.000	0.000
Net worth	3.405	7.112
Secured Loans	0.000	10.600
Unsecured Loans	0.800	0.000
Total borrowings	0.800	10.600
Debt/Equity ratio	0.235	1.490

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	62.750	131.301
	---	109.245

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	62.750	131.301
Profit	1.033	4.183
	1.65%	3.19%

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 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	No
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 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.

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.61.50
UK Pound	1	Rs.92.16
Euro	1	Rs.69.62

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	RAS
Report Prepared by :	RCH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.