MIRA INFORM REPORT

Report No. :	312222
Report Date :	14.03.2015

IDENTIFICATION DETAILS

Name :	P.C.CHANDRA AND SONS (INDIA) PRIVATE LIMITED
Registered Office :	127/1 A, B B Ganguly Street, Kolkata - 700012, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.01.1982
Com. Reg. No.:	21-034463
Capital Investment / Paid-up Capital :	Rs.49.999 Million
CIN No.: [Company Identification No.]	U36911WB1982PTC034463
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCP5796L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of all kind of jewels, Jewellary, precious and non-precious stones and ornaments etc.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 4110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s healthy operational risk profile marked by decent liquidity position and sound profitability margins of the company. Trade relations are fair. Business is active. Payment term are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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	CRISIL
Rating	Long Term Rating = BBB+ (Suspended)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	19.12.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2 (Suspended)
Rating Explanation	Strong degree of safety and low credit risk
Date	19.12.2014

Reason for suspension: Absence of requisite information.

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 DENIED BY

Name :	Mr. Sumya Mukharjee
Designation :	General Manager
Contact No.:	91-33-22270298
Date :	13.03.2015

LOCATIONS

Registered Office / Showroom:	127/1 A, B B Ganguly Street, Kolkata - 700012, West Bengal, India
Tel. No.:	91-33-22270298 / 22277221 / 7272 / 9440
Fax No.:	91-33-22270116 / 1787
E-Mail :	bowbazar@pcchandra.com
Website :	http://www.pcchandraindia.com

DIRECTORS

As on 30.09.2014

Name :	Mr. Bijoy Kumar Chandra
Designation :	Director
Address :	P-4. C.I.T. Road, Kolkata – 700014, West Bengal, India
Date of Birth/Age :	04.05.1929
Date of Appointment :	20.01.1982
PAN No.:	ACDPC1186E
Name :	Mr. Arun Kumar Chandra
Designation :	Director
Address :	P-4. C.I.T. Road, Kolkata – 700014, West Bengal, India
Date of Birth/Age :	04.01.1939
Date of Appointment :	20.01.1982
PAN No.:	ACDPC1185H
Name :	Mr. Uday Kumar Chandra
Designation :	Director
Address :	P-4. C.I.T. Road, Kolkata – 700014, West Bengal, India
Date of Birth/Age :	10.11.1954
Date of Appointment :	15.04.1983
PAN No.:	ACDPC4102E
Name :	Mr. Survo Chandra
Designation :	Director
Address :	P-4. C.I.T. Road, Kolkata – 700014, West Bengal, India
Date of Birth/Age :	25.07.1963
Date of Appointment :	02.04.1991
PAN No.:	ACXPC2022P
Name :	Mr. Prasanto Chandra
Designation :	Director
Address :	P-4. C.I.T. Road, Kolkata – 700014, West Bengal, India
Date of Birth/Age :	07.06.1964
Date of Appointment :	04.02.1991
PAN No.:	AAFPC5160D

KEY EXECUTIVES

Name :	Mr. Swarup Kumar Dey
Designation :	Secretary
Address :	44A, Gokul Baral Street, Kolkata – 700012, West Bengal, India
Date of Birth/Age :	19.05.1965
Date of Appointment :	20.01.2005
PAN No.:	ACGPD3141D

MAJOR SHAREHOLDERS

As on 30.09.2014

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	75.00
Directors or relatives of Directors	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of all kind of jewels, Jewellary, precious and non-precious stones and ornaments etc.
Products :	Jewels Jewellary Precious And Non-Precious Stones Ornaments
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 :

Allahabad Bank, Bowbazar Branch, Kolkata - 700012, West Bengal, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
SHORT TERM BORROWINGS
Rupee term loans from banks	0.000	0.124
Working capital loans from banks	145.622	189.304
Total	145.622	189.428

Auditors :
Name :	P.K. Mitra and Company Chartered Accountants
Address :	18, R.N.Mukherjee Road, Kolkata – 700001, West Bengal, India
PAN No.:	AAEFP0670K
Memberships :	--
Collaborators :	--
Associate :	P.C. Chandra (Jewellers) Private Limited P.C. Chandra Juels International Private Limited P.C. Chandra Global Jewellery Private Limited P. C. Chandra Gems Private Limited P.C. Chandra Jewellery Apex Private Limited Goldlite India Private Limited P.C. Chandra Holdings Private Limited D.I. Jewels Private Limited P.C. Chandra Financial Services Private Limited P.C. Chandra Estates Private Limited Kolkata Equity Holding Private Limited. Emco General Plastic Industries Private Limited S T Evia Realtors Private Limited Chandras Realtors Private Limited P.C. Chandra Exports Private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
499988	Equity Shares	Rs.100/- each	Rs.49.999 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	49.999	49.999	49.999
(b) Reserves & Surplus	1,388.106	1,157.979	871.964
(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)	1,438.105	1,207.978	921.963
(3) Non-Current Liabilities
(a) long-term borrowings	132.648	105.964	346.228
(b) Deferred tax liabilities (Net)	1.886	1.327	1.066
(c) Other long term liabilities	2.645	2.610	126.014
(d) long-term provisions	513.688	363.688	229.688
Total Non-current Liabilities (3)	650.867	473.589	702.996
(4) Current Liabilities
(a) Short term borrowings	485.038	487.270	223.846
(b) Trade payables	56.180	68.343	12.767
(c) Other current liabilities	403.833	329.134	167.058
(d) Short-term provisions	116.015	179.055	163.055
Total Current Liabilities (4)	1,061.066	1,063.802	566.726
TOTAL	3,150.038	2,745.369	2,191.685
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	74.348	48.861	38.939
(ii) Intangible Assets	0.058	0.077	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	31.453	31.453	31.453
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	524.692	376.933	244.284
(e) Other Non-current assets	2.527	3.790	5.054
Total Non-Current Assets	633.078	461.114	319.730
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2,324.644	2,057.705	1,694.405
(c) Trade receivables	12.012	10.216	10.236
(d) Cash and cash equivalents	47.768	32.085	39.662
(e) Short-term loans and advances	132.536	184.249	127.652
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2,516.960	2,284.255	1,871.955
TOTAL	3,150.038	2,745.369	2,191.685

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
SALES AND RELATED INCOME / GROSS REVENUE	4707.226	4774.630	4102.661
EXPENSES	NA	NA	NA
PROFIT/(LOSS) BEFORE TAX	346.701	465.331	414.572
TAX	116.015	150.000	134.000
PROFIT/(LOSS) AFTER TAX	230.127	315.070	280.259
Earnings / (Loss) Per Share (Rs.)	460.27	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	11.12	17.15	19.19
Return on Investment (ROI) (PBT/Networth)		0.24	0.39	0.45
Debt Equity Ratio (Total Debt /Networth)		0.43	0.49	0.62
Current Ratio (Current Asset/Current Liability)		2.37	2.15	3.30

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	49.999	49.999	49.999
Reserves & Surplus	871.964	1157.979	1388.106
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	921.963	1207.978	1438.105
Long Term borrowings	346.228	105.964	132.648
Short Term borrowings	223.846	487.270	485.038
Total borrowings	570.074	593.234	617.686
Debt/Equity ratio	0.618	0.491	0.430

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
Sales	4,102.661	4,774.630	4,707.226
		16.379	(1.412))

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	4,102.661	4,774.630	4,707.226
Profit	280.259	315.070	230.127
	6.83%	6.60%	4.89%

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	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Deposits from directors	53.889	31.205
Intercorporate deposits	29.050	25.050
Deposits from others	49.709	49.709
SHORT TERM BORROWINGS
Deposits from shareholders	339.416	297.842
Total	472.064	403.806

OPERATIONS:

The performance of the Company was satisfactory though there was turmoil in the gold market due to fluctuation in gold price. From the operating results, it is observed that Net Profit of the Company has decreased compared to last year. During the year Company has no export as the export market condition was not good.

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

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.62.57
UK Pound	1	Rs.93.57
Euro	1	Rs.65.95

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		50

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.