MIRA INFORM REPORT

Report No. :	330699
Report Date :	07.07.2015

IDENTIFICATION DETAILS

Name :	MANIK CHAND NAND KISHORE JEWELLERS PRIVATE LIMITED
Registered Office :	1^st Floor, Ganga Bhawan, Opposite Deorah College, G.S. Road, Ulubari, Guwahati – 781 007, Assam
Tel. No.:	91-361-2454346/ 47
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.09.2011
Com. Reg. No.:	02-010690
Capital Investment / Paid-up Capital :	Rs.2.933 million
CIN No.: [Company Identification No.]	U51900AS2011PTC010690
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Ornaments and Jewellery.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 9400
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating takes into consideration, subjects moderate financial risk profile marked by weak liquidity position and relatively low profitability of the subject. Rating takes into consideration low reserves level and huge external borrowing taken by the company which may act as a threat to liquidity position of the company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. Subject 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 – 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	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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Deepak Kumar Soni
Designation :	Director
Contact No.:	91-9706016661
Date :	06.07.2015

LOCATIONS

Registered Office :	1^st Floor, Ganga Bhawan, Opposite Deorah College, G.S. Road, Ulubari, Guwahati – 781 007, Assam, India
Tel. No.:	91-361-2454346/ 47
Mobile No.:	91-9706016661 (Mr. Deepak Kumar Soni)
Fax No.:	Not Available
E-Mail :	singhiconsult@gmail.com mnjcare@gmail.com
Website :	http://www.manikchandjewellers.com

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Deepak Kumar Soni

Designation :

Director

Address :

3A, Ragini Apartment, P-22, Lake Town, Kolkata – 700 089, West Bengal, India

Date of Birth/Age :

12.12.1984

Date of Appointment :

15.09.2011

DIN No.:

00671798

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36911WB2003PTC097320	MANIK CHAND JEWELLERS AND SONS PRIVATE LIMITED	Director	25/11/2003	25/11/2003	-	Active	NO
2	U51909WB2008PTC126283	MANIK CHAND MARKETING PRIVATE LIMITED	Director	30/05/2008	30/05/2008	-	Active	NO
3	U51900AS2011PTC010690	MANIK CHAND NAND KISHORE JEWELLERS PRIVATE LIMITED	Director	15/09/2011	15/09/2011	-	Active	NO

Name :

Mr. Nand Kishor Soni

Designation :

Director

Address :

2^nd Floor, ABC House, T.R. Phukan Road, Fancy Bazar, Guwahati – 781 001, Assam, India

Date of Birth/Age :

02.09.1958

Date of Appointment :

15.09.2011

DIN No.:

03610792

Name :

Mrs. Nirmala Devi Soni

Designation :

Director

Address :

K.C Road, Fancy Bazar, Guwahati – 781 001, Assam, India

Date of Birth/Age :

15.03.1963

Date of Appointment :

01.04.2013

DIN No.:

06671831

Other Directorship :

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Deepak Kumar Soni	5000
Nand Kishor Soni	5000
Abhishek Jain	100
Ajay Kumar Jain	100
Chiranji Lal Jain	100
Dhana Lal Pukhraj (HUF)	100
Nemichand Gangwal	100
Padam Chand Jain	100
Parasmal Patodia	100
Pukhraj Jain	100
Rajesh Kumar Gangwal (HUF)	100
Sarala Devi Jain	100
Saroj Jain	100
Sunita Jain	100
Nirmala Devi Soni	282120
Total	293320

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.59
Other top fifty shareholders	0.41
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Ornaments and Jewellery.
Products :	Ornaments and Jewellery
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit (30/ 60/ 90 days)
Purchasing :	Cash and Credit (30/ 60/ 90 days)

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

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	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Reference :

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	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

50 (Approximately)

Bankers :

Banker Name	Union Bank of India
Branch Address	Guwahati, Assam, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

State Bank of India, Fancy Bazar Traders Branch, Akshay Plaza, 2^nd Floor, M.G. Road, Fancy Bazar – 781 001, Guwahati, Assam, India

Facilities :

Secured Loans	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Tata Capital Financial Services Limited (Secured by hypothecation of Equipment Financed) Terms of Repayment – Equal Monthly Installments	0.014	0.000
Total	0.014	0.000

Banking Relations :	--
Financial Institution :	Tata Capital Financial Services Limited
Auditors :
Name :	Khaitan Agarwal and Company Chartered Accountants
Address :	Sanmati Plaza, 2^nd Floor, Opposite IDBI, G.S. Road, Guwahati – 781 005, Assam, India
Tel. No.:	91-361-2458997
E-Mail :	tibrewalajay@yahoo.co.in khaitansandeep@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAJFK8468P
Memberships :	Not Available
Collaborators :	Not Available
Enterprises owned or significantly influenced by key management and/ or their relatives :	Manik Chand Marketing Private Limited Manik Chand Jewellers and Sons Private Limited

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital : Rs.20.000 million

Issued, Subscribed & Paid-up Capital : Rs.15.433 million

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
293320	Equity Shares	Rs.10/- each	Rs.2.933 million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
293320	Equity Shares	Rs.10/- each	Rs.2.933 million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	2.933	0.100	0.100
(b) Reserves & Surplus	0.354	(0.034)	(0.015)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3.287	0.066	0.085
(3) Non-Current Liabilities
(a) Long-term borrowings	0.014	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.014	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	14.393	0.000	0.000
(b) Trade payables	22.417	0.004	0.000
(c) Other current liabilities	2.849	0.000	0.004
(d) Short-term provisions	0.030	0.000	0.000
Total Current Liabilities (4)	39.689	0.004	0.004
TOTAL	42.990	0.070	0.089
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.738	0.000	0.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.728	0.000	0.000
(e) Other Non-current assets	0.000	0.032	0.000
Total Non-Current Assets	3.466	0.032	0.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	38.308	0.000	0.000
(c) Trade receivables	0.004	0.000	0.000
(d) Cash and cash equivalents	1.201	0.038	0.046
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	0.011	0.000	0.043
Total Current Assets	39.524	0.038	0.089
TOTAL	42.990	0.070	0.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	121.244	0.000	0.000
		Other Income	NA	0.000	0.000
		TOTAL	NA	0.000	0.000
Less	EXPENSES
		Other Expenses	NA	0.019	0.015
		TOTAL	NA	0.019	0.015
	PROFIT/ (LOSS) BEFORE TAX		0.667	(0.019)	(0.015)
Less	TAX		0.280	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		0.387	(0.019)	(0.015)
	Earnings/ (Loss) Per Share (Rs.)		1.32	(1.90)	(1.50)

Particulars	31.03.2015
Sales Turnover	150.000

The above information has been parted by Mr. Deepak Kumar Soni (Director).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt	0.164	0.000	0.000
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.32	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.55	(27.14)	(16.85)
Return on Investment (ROI) (PBT/Networth)		0.20	(0.29)	(0.18)
Debt Equity Ratio (Total Debt /Networth)		4.43	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.00	9.50	22.25

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	0.100	2.933
Reserves & Surplus	(0.015)	(0.034)	0.354
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	0.085	0.066	3.287
Long-term borrowings	0.000	0.000	0.014
Short term borrowings	0.000	0.000	14.393
Current maturities of long-term debts	0.000	0.000	0.164
Total borrowings	0.000	0.000	14.571
Debt/Equity ratio	0.000	0.000	4.433

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from Operations	0.000	0.000	121.244

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from Operations	0.000	0.000	121.244
Profit	(0.015)	(0.019)	0.387
			0.32%

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

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

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWINGS
Loans and advances from related parties	14.393	0.000
Total	14.393	0.000

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10545310	29/11/2014	20,000,000.00	STATE BANK OF INDIA	FANCY BAZAR TRADERS BRANCH, AKSHAY PLAZA, 2^ND FLOOR, M.G. ROAD, FANCY BAZAR – 781 001, GUWAHATI, ASSAM, INDIA	C41540105

FIXED ASSETS:

· Tools and Equipments

· Furniture and Fixtures

· Computers

· Vehicles

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 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.63.58
UK Pound	1	Rs.99.11
Euro	1	Rs.70.29

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SAN
Report Prepared by :	SMN

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	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.