MIRA INFORM REPORT

RMIRA INFORM REPORT

Report No. :	326956
Report Date :	12.06.2015

IDENTIFICATION DETAILS

Name :	TRIBHOVANDAS BHIMJI ZAVERI AND BROTHERS PRIVATE LIMITED

Registered Office :	Shop No. 2, Nirmal Life Style, LBS Marg, Mulund West, Mumbai – 400080, Maharashtra
Tel. No.:	91-22-25626655

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	13.04.2006

Com. Reg. No.:	11-161138

Capital Investment / Paid-up Capital :	Rs.10.000 Million

CIN No.: [Company Identification No.]	U36911MH2006PTC161138

IEC No.:	Not Available

TIN No.:	27350530879

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 :	To carry on the business of jewellers, goldsmiths, silver smiths, gem and diamond merchants and to manufacturer, make, remake, buy, sell, import, export or otherwise deal in all type of ornaments, jewellery made of any other precious or semi-precious metals and stones.

No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 95000

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is a part of TRIBHOVANDAS BHIMJI ZAVERI GROUP. It is an established company having satisfactory track record. Management has failed to file its financial record with government department for the year 2014. Rating takes into accounts of company’s being a part of one of jewellery houses in India backed by strong brand name in segment and wide spared business networks. As per available financial record of 2013, company reported sound operational performance and it has above average net worth base. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of being part of TBZ Group, the company can be considered for business dealing 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

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 DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 DENIED BY

Name :	Mr. Brijesh
Designation :	Account Department
Contact No.:	91-22-25626655
Date :	12.06.2015

LOCATIONS

Registered Office :	Shop No. 2, Nirmal Life Style, LBS Marg, Mulund West, Mumbai – 400080, Maharashtra, India
Tel. No.:	91-22-25626655 / 25626262
Fax No.:	91-22-67967997
E-Mail :	tax@gawandes.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Hemant Vrajllal Zaveri

Designation :

Director

Address :

701 7th Floor Krishna Apt,, Worli Co Op Hsg Soc Limited Worli R.G. Thadani, Mumbai - 400030, Maharashtra, India

Date of Birth/Age :

10.02.1960

Date of Appointment :

13.04.2006

PAN No.:

AAAPZ0846M

DIN No.:

02550189

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	U36911MH1998PTC116534	TRIBHOVANDAS BHIMJI ZAVERI AND SONS PRIVATE LIMITED	Director	15/09/1998	15/09/1998	-	Active	NO
2	U36911MH2006PTC161138	TRIBHOVANDAS BHIMJI ZAVERI AND BROTHERS PRIVATE LIMITED	Director	13/04/2006	13/04/2006	-	Active	NO
3	U65990MH1979PTC021123	KUSUMBALA INVESTMENT PRIVATE LIMITED	Director	29/09/2012	15/12/2011	-	Active	NO
4	U52300MH2012PTC236790	Dream Gold Jewellery Private Limited	Director	15/10/2012	15/10/2012	-	Active	NO
5	U74999MH2015PTC263038	TRIBHOVANDAS BHIMJI ZAVERI & SONS RETAIL PRIVATE LIMITED	Director	26/03/2015	26/03/2015	-	Active	NO

Name :

Mr. Sagar Subhash Zaveri

Designation :

Director

Address :

82/B,8th Floor, Embassy Apartment, 46-Nepen Sea Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

29.07.1983

Date of Appointment :

14.02.2012

DIN No.:

05203082

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	U36911MH1998PTC116534	TRIBHOVANDAS BHIMJI ZAVERI AND SONS PRIVATE LIMITED	Director	14/02/2012	14/02/2012	-	Active	NO
2	U36911MH2006PTC161138	TRIBHOVANDAS BHIMJI ZAVERI AND BROTHERS PRIVATE LIMITED	Director	14/02/2012	14/02/2012	-	Active	NO
3	U52300MH2012PTC236790	Dream Gold Jewellery Private Limited	Director	15/10/2012	15/10/2012	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Manju Zaveri	25000	25.00
Anita Subhash Zaveri	25000	25.00
Hemant Vrajllal Zaveri	25000	25.00
Sagar Subhash Zaveri	25000	25.00
Total	100000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	To carry on the business of jewellers, goldsmiths, silver smiths, gem and diamond merchants and to manufacturer, make, remake, buy, sell, import, export or otherwise deal in all type of ornaments, jewellery made of any other precious or semi-precious metals and stones.

Products :	Ornaments Jewellery Precious or Semi-Precious Metals

Brand Names :	--

Agencies Held :	--

Exports :	Not Divulged

Imports :	Not Divulged

Terms :
Selling :	Not Divulged

Purchasing :	Not Divulged

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
Experience :	Not Divulged
Maximum Limit Dealt :	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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Not Divulged

No. of Employees :

Information denied by management

Bankers :

Axis Bank Limited, Credit Management Centre, Unit No.6, Corporate Park, Sion Trombay Road, Chembur, Mumbai - 400071, Maharashtra, India
UTI Bank Limited, Fort Branch, Sir P.M. Road, Fort, Mumbai - 400001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Million	31.03.2012 Rs. In Million
LONG TERM BORROWINGS
Car Loan From Bank	0.799	1.108
SHORT TERM BORROWINGS
Cash Credit Facility with Axis Bank Limited	60.619	43.386
Bank Overdraft	3.162	0.000
Total	64.580	44.494

Notes:

Long Term Borrowings

Car loans are secured against the respective vehicles for which the loans have been availed.

The repayment is as per schedule provided by the bankers.

Short Term Borrowings

Secured by hypothecation of stock, book debts and collaterally secured by mortgage of property owned by the company and personal guarantee of some of the directors of the company.


Auditors :
Name :	Gawande and Associates Chartered Accountants
Address :	801, Mahalaxmi Chambers, 22 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
PAN No.:	AADFG2763P

Memberships :	--

Collaborators :	--

Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

100000	Equity Shares	Rs.100/- each	Rs.10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

100000	Equity Shares	Rs.100/- each	Rs.10.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000	10.000
(b) Reserves & Surplus	23.133	19.563	15.382
(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)	33.133	29.563	25.382

(3) Non-Current Liabilities
(a) long-term borrowings	29.916	25.247	15.213
(b) Deferred tax liabilities (Net)	0.205	0.141	0.076
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.600	1.400	0.000
Total Non-current Liabilities (3)	30.721	26.788	15.289

(4) Current Liabilities
(a) Short term borrowings	63.781	43.386	46.288
(b) Trade payables	99.138	61.061	60.603
(c) Other current liabilities	44.364	44.706	30.604
(d) Short-term provisions	0.527	0.099	9.965
Total Current Liabilities (4)	207.810	149.252	147.460

TOTAL	271.664	205.603	188.131

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.840	13.432	13.712
(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	20.438	15.306	7.096
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	37.278	28.738	20.808

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	196.815	155.863	141.734
(c) Trade receivables	28.438	9.251	8.081
(d) Cash and cash equivalents	0.925	3.874	3.206
(e) Short-term loans and advances	8.208	7.877	14.302
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	234.386	176.865	167.323

TOTAL	271.664	205.603	188.131

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011

INCOME	NA	NA	NA

EXPENSES	NA	NA	NA

PROFIT/(LOSS) BEFORE TAX	NA	NA	NA

TAX	NA	NA	NA

PROFIT/(LOSS) AFTER TAX	3.570	4.181	2.395

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	19.563	15.382	12.987

BALANCE CARRIED TO THE B/S	23.133	19.563	15.382

Earnings / (Loss) Per Share (Rs.)	35.70	41.81	NA

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars

31.03.2013

31.03.2012

31.03.2011

Current Maturities of Long term debt

0.299

0.345

4.973

Cash generated from operations

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt /Networth)	2.84	2.32	2.42

Current Ratio (Current Asset/Current Liability)	1.13	1.19	1.13

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	10.000	10.000	10.000
Reserves & Surplus	15.382	19.563	23.133
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	25.382	29.563	33.133

Long Term borrowings	15.213	25.247	29.916
Short Term borrowings	46.288	43.386	63.781
Current Maturities of Long term debt	4.973	0.345	0.299
Total borrowings	66.474	68.978	93.996
Debt/Equity ratio	2.619	2.333	2.837

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	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)	No
16	No. of employees	No
17	Details of sister concerns	No
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	No
26	Turnover of firm for last three years	No
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	No
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Million	31.03.2012 Rs. In Million
LONG TERM BORROWINGS
From Director	0.000	0.423
From Other	29.117	23.716
Total	29.117	24.139

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10063229	26/03/2014 *	110,000,000.00	AXIS BANK LIMITED CFB BRANCH	AXIS BANK LIMITED CFB BRANCH, GR FL,BOMBAY DYING COMPOUND, P B MARG,WORLI, MUMBAI, Maharashtra - 400025, INDIA	C04371126

*Date of modification Charges

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.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

· Printer

· Air Conditioner

· Diamond Cleaner

· Motor car

· Refrigerator

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.63.89
UK Pound	1	Rs.98.90
Euro	1	Rs.72.31

INFORMATION DETAILS

Information Gathered by :	PPT

Analysis Done by :	KAR

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO

TOTAL		41

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.

RMIRA INFORM REPORT

Unit