MIRA INFORM REPORT

Report No. :	333684
Report Date :	25.07.2015

IDENTIFICATION DETAILS

Name :	KACHHDIYA IMPEX
Registered Office :	D. No. 402, Arunoday Co-operative Housing Society Limited, V. H. Desai Road, Near Maratha Colony, Dahisar (East), Mumbai – 400068, Maharashtra
Tel. No.:	91-22-28284068
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	2006
Capital Investment / Paid-up Capital :	Rs.11.737 Million
IEC No.:	Not Divulged
TIN No.:	Not Divulged
PAN No.: [Permanent Account No.]	AACPK1137G
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer, trader and importer of diamond. (Manufacturing through job work).
No. of Employees :	7 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 incorporated during the year 2006 having a satisfactory track record. General financial position of the concern is sound and healthy. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitment. The concern can considered normal 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 – 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

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. Naresh Ghusabhai Kachhdiya
Designation :	Proprietor
Contact No.:	91-9819550610
Date :	24.07.2015

LOCATIONS

Registered Office :	D. No. 402, Arunoday Co-operative Housing Society Limited, V.H. Desai Road, Near Maratha Colony, Dahisar (East), Mumbai – 400068, Maharashtra, India
Tel. No.:	91-22-28284068
Mobile No.:	91-9819550610 (Mr. Naresh Ghusabhai Kachhdiya)
Fax No.:	Not Available
E-Mail :	kachhdiyaimpex@yahoo.co.in
Area :	1000 Sq. ft.
Location :	Rented
Corporate Office :	No. 26, Beliram Industrial Estate, 3^rd Floor, S.V. Road, Dahisar (East), Mumbai – 400068, Maharashtra, India
Area :	1320 Sq. ft.
Location :	Owned
Branch Office :	FC-1010, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India

SOLE PROPRIETOR

Name :	Mr. Naresh Ghusabhai Kachhdiya
Designation :	Proprietor
Date of Birth/Age :	04.02.1978
PAN No.:	AACPK1137G

BUSINESS DETAILS

Line of Business :	Manufacturer, trader and importer of diamond. (Manufacturing through job work).
Products :	Diamond
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Rough Diamond
Countries :	Belgium
Terms :
Selling :	L/C, Cash
Purchasing :	L/C, Cash

GENERAL INFORMATION

Suppliers :

Company Name :	Vee Diam – Belgium
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Customers :

Retailers

Company Name :	Shah Traders – Mumbai
Name of the Person :	Mr. Chintan Shah (Accounts Department)
Contact No.:	91-9819097377
Since How Long Known :	5 Years
Maximum Limit Dealt :	Rs.6.000 Quarterly
Experience :	Product Quality Delivery Behaviour Good Overall
Remark :	As claimed by Mr. Chintan Shah (Accounts Department) that the subject provide very good cut and polished diamond they are very much satisfied.

No. of Employees :

7 (Approximately)

Bankers :

Banker Name :	Kotak Mahindra Bank
Branch :	L. T. Road, Borivali (West), Mumbai, Maharashtra, India
Person Name (With Designation) :	Mr. Birju (Chief Manager)
Contact Number :	91-9930070344
Name of Account Holder :	Kachhadiya Impex
Account Number :	--
Account Since (Date/Year of Account Opening) :	2012
Average Balance Maintained :	Rs.25.000 million
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	Satisfactory
Remark :	--

Auditors :
Name :	PMPJ and Associates Chartered Accountants
Collaborators :	Not Divulged
Membership :	Not Divulged
Sister Concern :	Harshil Diam Address: D. No. 402, Arunoday Co-operative Housing Society Limited, V.H. Desai Road, Near Maratha Colony, Dahisar (East),Mumbai – 400068, Maharashtra, India

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs. 11.737 Million
Borrowed :	--
Total :	Rs. 11.737 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Proprietors Capital		11.737	9.035
2] Share Application Money		0.000	0.000
3] Profit and Loss		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		11.737	9.035
LOAN FUNDS
1] Secured Loans		5.559	0.791
2] Unsecured Loans		6.578	5.678
TOTAL BORROWING		12.137	6.469
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		23.874	15.504
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.959	8.326
Capital work-in-progress		0.000	0.000
INVESTMENT		8.195	5.006
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	172.033	35.411
	Sundry Debtors	25.375	8.930
	Cash & Bank Balances	1.441	1.909
	Other Current Assets	0.000	0.000
	Loans & Advances	7.835	4.201
Total Current Assets		206.684	50.451
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	194.984	41.707
	Other Current Liabilities	12.931	6.526
	Provisions	0.049	0.046
Total Current Liabilities		207.964	48.279
Net Current Assets		(1.280)	2.172
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		23.874	15.504

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	207.260	137.860
		Other Income	0.004	0.000
		TOTAL	207.264	137.860
Less	EXPENSES
		Cost of Goods Sold	185.075	126.129
		Labour Charges	7.596	2.862
		Account Charges	0.030	0.025
		Audit Fees	0.019	0.019
		Bank (Import) Charges	0.040	0.000
		Bank Charges	0.008	0.007
		Clearing and Forwarding Expenses	0.194	0.054
		Conveyance Expenses	0.048	0.038
		Duplicate Certificates	0.001	0.000
		Electricity Expenses	0.117	0.033
		Handling Charges	0.003	0.000
		Insurance Expenses	0.034	0.030
		Interest on OD A/c	1.627	0.601
		Interest on Loan	0.163	1.503
		Mobile Expenses	0.008	0.007
		Printing and Stationery	0.016	0.013
		Salary and Wages	0.888	0.774
		Sundry Expenses	0.019	0.000
		Other Expenses	7.264	2.549
		TOTAL	203.150	134.644
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		4.114	3.216
Less	DEPRECIATION/ AMORTISATION		0.224	0.250
	NET PROFIT/ (LOSS)		3.890	2.966

Expected Sales (2015-2016): Rs.25.000 Million

The above information has been parted by Mr. Naresh

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)	(%)	1.88	2.15
Return on Total Assets (PBT/Total Assets)	(%)	1.74	5.05
Return on Investment (ROI) (PBT/Networth)		0.33	0.33
Debt Equity Ratio (Total Debt/Networth)		1.03	0.72
Current Ratio (Current Asset/Current Liability)		0.99	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	9.035	11.737
Reserves & Surplus	0.000	0.000
Net worth	9.035	11.737
Secured Loans	0.791	5.559
Unsecured Loans	5.678	6.578
Total borrowings	6.469	12.137
Debt/Equity ratio	0.716	1.034

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	137.860	207.260
		50.341

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	137.860	207.260
Profit	2.966	3.890
	2.15%	1.88%

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	Yes
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	Yes
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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last two years	Yes
30	Major shareholders, if available	No
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 LOANS

PARTICULAR	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Bhanubhai M.Zalavadiya	0.100	0.100
Bharatbhai Kachhadia	0.400	0.400
Doshi Investments	1.700	1.884
Ghusabhai K.Kachhadiya	0.500	0.500
Ghushabhai Kachhadiya (HUF)	0.030	0.030
Hardas P. Kachadiya	0.479	0.200
Harshil Diam	0.000	0.300
Hardik Harendra Shah	1.000	0.000
Jatin Sevantilal Doshi	0.319	0.000
Jitesh Kachadiya	0.160	0.160
Kanchan Hardas Kachadiya	0.045	0.045
Kantilal Chaturdas Patel	0.900	0.100
Madhavji Bhai Shavjibhai Hirapara	0.200	0.200
Star Diamond(Loan)	0.200	0.200
Tamanna N.Kachhdiya	0.426	0.000
Valjibhai S.Davara	0.119	0.119
Yogesh Motilal	0.000	1.440
Total	6.578	5.678

FIXED ASSETS

· Car

· Air Condition

· Computer

· Scooter

· Machinery

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.63.89
UK Pound	1	Rs.99.10
Euro	1	Rs.70.12

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.