MIRA INFORM REPORT

Report No. :	312234
Report Date :	21.03.2015

IDENTIFICATION DETAILS

Name :	K. N. DIAMOND
Registered Office :	5/4299, Soniwad, Bilimora, Navsari-396321, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation:	15.08.1997
Capital Investment / Paid-up Capital :	Rs. 19.558 Million
IEC No.:	Not Available
TIN No.:	24240300554
PAN No.: [Permanent Account No.]	AADFK3167H
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer and Trader of Diamond Jewellery. (Manufacturer done through job work.)
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 56000
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 as 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 – 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	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. Urmil Soni
Designation :	Partner
Contact No.:	91-2634-286002
Date :	19.03.2015

LOCATIONS

Registered Office/Factory :	5/4299, Soniwad, Bilimora, Navsari-396321, Gujarat, India
Tel. No.:	91-2634-286002/288543
Mobile No.:	91-9825121096 (Mr. Urmil Soni)
Fax No.:	91-2634-286002
E-Mail :	info@kndiamond.com
Website :	http://www.kndiamond.com
Location :	Owned

PARTNERS

Name :	Mr. Urmilkumar Rameshchandra Soni
Designation :	Partner
Name :	Mr. Vijaybhai Ishwarlal Soni
Designation :	Partner
Name :	Mr. Kishorbhai Ishwarlal Soni
Designation :	Partner
Name :	Mr. Vinodbhai Kalidas Soni
Designation :	Partner
Name :	Mr. Rameshchandra Maneklal Soni
Designation :	Partner
Name :	Mr. Ishwarlal Maneklal Soni
Designation :	Partner
Name :	Mr. Jayantilal Kikabhai Parekh
Designation :	Partner
Name :	Mr. Manharlal Kikabhai Soni
Designation :	Partner

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Diamond Jewellery. (Manufacturer done through job work.)
Products :	Diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Good
Countries :	USA Australia
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

• Abhay and Company
• Banner Commodities (Impex) Private Limited
• Bhavik impex
• Chintan Gems
• D. Sent Designs
• DGLA Quality Services Private Limited
• Disha Diamond
• Divine Digital
• Fortune Park Galaxy
• Jainam Gems

Reference :	Ritesh Coproration - Ahmedabad
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 :

Wholesalers, Retailers and Manufacturer

• C P Jewellers
• Choksi K M Private Limited
• Jay Jewellery
• Jay Bhavani Diamond
• K.N. Diamond (Australia)
• Krishna Diamond
• Laxmi Diamond Private Limited
• Navneet Jewellers
• Kanji Bhai Jewellers
• Shree Mukt Jewellers

Reference :	Kala Mandir Jewellers – Surat
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

No. of Employees :

20 (Approximately)

Bankers :

• Punjab National Bank

Bank Name	HDFC Bank lIMKTED
Branch	Bilimora, Navsari, Gujarat, 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

Auditors :
Name :	Panthaky and Associates Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Divulged

CAPITAL STRUCTURE

As on: 31.03.2014

Partner Name	Amount (Rs. in Million)
Urmilkumar Rameshchandra Soni	2.017
Vijaybhai Ishwarlal Soni	3.489
Kishorbhai Ishwarlal Soni	1.926
Vinodbhai Kalidas Soni	3.259
Rameshchandra Maneklal Soni	1.370
Ishwarlal Maneklal Soni	2.406
Jayantilal Kikabhai Parekh	2.982
Manharlal Kikabhai Soni	2.109
Total :	19.558

FINANCIAL DATA

[All figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS			31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partner Capital			19.558	12.940
2] Share Application Money			0.000	0.000
3] Reserves & Surplus			0.000	0.000
4] (Accumulated Losses)			0.000	0.000
NETWORTH			19.558	12.940
LOAN FUNDS
1] Secured Loans			15.312	13.155
2] Unsecured Loans			23.448	24.734
TOTAL BORROWING			38.760	37.889
DEFERRED TAX LIABILITIES			0.000	0.000
TOTAL			58.318	50.829
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			4.085	4.588
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		39.396	32.648
	Sundry Debtors		22.339	27.917
	Cash & Bank Balances		0.072	0.302
	Other Current Assets		0.000	0.000
	Deposits		0.922	0.922
Total Current Assets			62.729	61.789
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		8.302	15.095
	Other Current Liabilities		0.195	0.453
	Provisions
Total Current Liabilities			8.497	15.548
Net Current Assets			54.232	46.241
MISCELLANEOUS EXPENSES			0.000	0.000
TOTAL			58.318	50.829

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Sales	100.346	108.667
		Other Income	10.952	0.622
		VAT Account (Sales)	0.694	0.815
		TOTAL	111.992	110.104
Less	EXPENSES
		Cost of Materials Consumed	84.654	92.430
		Job Work	3.287	2.599
		Packing Expenses	0.103	0.137
		Vat Account	0.345	0.490
		Advising Expenses	1.062	0.527
		Audit Fees	0.028	0.027
		Bank Charges	0.096	0.105
		Certification Charges	0.654	0.407
		Computer Expenses	0.021	0.016
		Computer Service Charges	0.016	0.007
		Courier Charges	0.125	0.051
		Depreciation Charges	0.632	0.732
		Design Expense	0.213	0.023
		Donation (80)	0.000	0.027
		Donation Expense	0.000	0.027
		Electricity Charges	0.125	0.103
		Exhibition Charges	0.812	0.313
		Export Expenses	0.228	0.315
		Freight and octrees	0.001	0.000
		Gem and Jewellery Export Promotion	0.017	0.000
		Gold Loan Service Charges	0.011	0.011
		Hallmarking Expenses	0.003	0.000
		Municipal Tax	0.000	0.005
		Insurance Premium	0.173	0.193
		Interest Expanse	0.000	0.002
		Interest on Bank	1.957	1.809
		Interest on Car Loan	0.012	0.030
		Interest to Partner capital	1.492	1.245
		Interest to Unsecured Loan	2.272	3.790
		Legal and Professional Fees	0.060	0.047
		Partner Remuneration	1.100	1.500
		Petrol and Repairing	0.088	0.110
		Printing and Stationery	0.075	0.156
		Professional Tax	0.006	0.016
		Rent Expenses	0.100	0.100
		Repairing and Maintained	0.173	0.104
		Salary Expenses	1.040	0.945
		Shop Expense	0.086	0.057
		Stamping Charges of Electronic	0.002	0.000
		Subscripting Fees	0.004	0.000
		telephone Charges	0.174	0.046
		Traveling Expenses	0.138	0.029
		Vat Tax	0.349	0.315
		TOTAL	101.734	108.846
	NET PROFIT		10.258	1.258

Expected Sales (2014-2015): Rs.105.000 Million

The above information has been parted by Mr. Urmil Soni (Partner)

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 (PAT / Sales)	(%)	10.22	1.16
Return on Total Assets (PBT/Total Assets}	(%)	15.35	1.90
Return on Investment (ROI) (PBT/Networth)		0.52	0.10
Debt Equity Ratio (Total Debt /Networth)		1.98	2.93
Current Ratio (Current Asset/Current Liability)		7.38	3.97

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Partner Capital	12.940	19.558
Reserves & Surplus	0.000	0.000
Net worth	12.940	19.558
Secured Loan	13.155	15.312
Unsecured Loan	24.734	23.447
Total borrowings	37.889	38.759
Debt/Equity ratio	2.928	1.982

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	108.667	100.346
		(7.657)

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	108.667	100.346
Profit	1.258	10.258
	1.16%	10.22%

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	No
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	Yes
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	Yes
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 & 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:

· Air Condition

· Vehicle

· Mobile

· Computer

· TV

· 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 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.62.42
UK Pound	1	Rs.92.99
Euro	1	Rs.67.29

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUB
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.