MIRA INFORM REPORT

Report No. :	312165
Report Date :	27.03.2015

IDENTIFICATION DETAILS

Name :	ATLAS JEWELLERY PRIVATE LIMITED
Registered Office :	Door No. XI/305 H, Near Federal Bank Limited, Opposite Cial, Vappalassery P.O., Nedumbassery, Angamally – 683572, Kerala
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.10.2003
Com. Reg. No.:	09-016547
Capital Investment / Paid-up Capital :	Rs.200.000 Million
CIN No.: [Company Identification No.]	U36911KL2003PTC016547
TAN No.: [Tax Deduction & Collection Account No.]	CHNA04759G
PAN No.: [Permanent Account No.]	AAGCA8260K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject engaged in the business of export and trading in gold, silver, diamond and platinum jewellery and watches.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 570000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has failed to file its latest financial with government department for FY 2014. As per indirect source (i.e. Crisil), the company has fair profit margin during FY 2014. However, trade relations reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings at usual trade terms and conditions, with slight 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 – 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-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January, 2015

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. Bipin
Designation :	Company Secretary
Contact No.:	91-484-2806672
Date :	25.03.2015

LOCATIONS

Registered Office :	Door No. XI/305 H, Near Federal Bank Limited, Opposite Cial, Vappalassery P.O., Nedumbassery, Angamally-683572, Kerala, India
Tel. No.:	91-484-2806672
Mobile No.:	91-9995131111 [Mr. Mathukkara Moothedath Ramachandran]
Fax No.:	Not Available
E-Mail :	gopansyam@vsnl.net
Website :	www.atlasjewellery.com
Corporate Office :	34/561-A, Padivattom NH Bye pass Road, Edappaly, Ernakulam – 682025, Kerala, India
Factory :	Located at: Thrissur
Show Room :	Located at: · Cochin · Trivandrum · Coimbatore

DIRECTORS

AS ON 14.09.2013

Name :	Mr. Mathukkara Moothedath Ramachandran
Designation :	Managing Director
Address :	Mathukkara Moothedath House, Raagamalikapuram, Thrissur – 680004, Kerala, India
Date of Birth/Age :	31.07.1942
Date of Appointment :	16.10.2003
Din No.:	01780579
Name :	Mr. Krishnakumar Trichur Venugopal
Designation :	Director
Address :	Puthenmadathil House, Chettupuzha, P.O. Thrissur – 680621, Kerala, India
Date of Birth/Age :	10.05.1972
Date of Appointment :	11.12.2007
Din No.:	01780587

KEY EXECUTIVES

Name :	Mr. Bipin
Designation :	Company Secretary

MAJOR SHAREHOLDERS

AS ON 14.09.2013

Names of Shareholders	No. of Shares	% of Holding
Mathukkara Moothedath Ramachandran	19999000	100.00
Indira Ramachandran	1000	0.01
Total	20000000	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 14.09.2013

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :

Subject engaged in the business of export and trading in gold, silver, diamond and platinum jewellery and watches.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Jewellery	7108

Brand Names :

ATLAS JEWELLERY

Agencies Held :

Not Divulged

Exports :

Products :

Finished Goods

Countries :

UAE

Imports :

Not Divulged

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Not Divulged
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 :

Company Name :	Not Divulged
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 :

200 (Approximately)

Bankers :

Banker Name :	State Bank of Travancore
Branch :	Trichur Main Branch, Geethanjali, P.B. No. 56, Parammekavu Devaswam Building, Round East, Trichur – 680001, Kerala, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

· South Indian Bank

· Axis Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Million	31.03.2012 Rs. In Million
Long Term Borrowings
Rupee term loans from banks	151.727	0.000
Short Term Borrowings
Loans repayable on demand from banks	812.497	0.000
Total	964.224	0.000

Banking Relations :	--
Auditors :
Name :	Gopan and Syan Chartered Accountant
Address :	37/3980, Azad Road, Kaloor, Ernakulam, Kochi – 682017, Kerala, India
Tel. No.:	91-484-2535530
Mobile No.:	91-9447147520/9447041732
Pan No.:	AABFG9421G
Membership :	--
Others :	· R I Kanth Property Developers Private Limited · Gee El Woollens Limited · Atlasgold Townships (India) Private Limited · Atlas Holiday Private Limited · Atlas Golden Land and Developers Private Limited · Atlas Jewellery India Limited

CAPITAL STRUCTURE

AS ON 14.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 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	200.000	20.000	2.500
(b) Reserves & Surplus	(0.761)	(4.332)	(2.671)
(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)	199.239	15.668	(0.171)
(3) Non-Current Liabilities
(a) long-term borrowings	151.727	0.000	0.000
(b) Deferred tax liabilities (Net)	0.331	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)	152.058	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	951.728	2.850	5.974
(b) Trade payables	704.171	0.807	0.000
(c) Other current liabilities	254.049	0.016	0.015
(d) Short-term provisions	0.911	0.000	0.000
Total Current Liabilities (4)	1910.859	3.673	5.989
TOTAL	2262.156	19.341	5.818
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	167.266	0.041	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	8.594	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	40.415	1.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	216.275	1.041	0.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1721.125	0.000	0.000
(c) Trade receivables	32.550	0.000	0.000
(d) Cash and cash equivalents	41.042	1.322	1.925
(e) Short-term loans and advances	251.096	16.910	3.891
(f) Other current assets	0.068	0.068	0.002
Total Current Assets	2045.881	18.300	5.818
TOTAL	2262.156	19.341	5.818

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	TOTAL INCOME	1771.572	42.740	0.000
Less	EXPENSES	NA	44.401	0.196
	NET PROFIT / (LOSS)	3.571	(1.661)	(0.196)
	EARNINGS IN FOREIGN CURRENCY	889.721	42.665	NIL
	CIF VALUE OF IMPORTS	NIL	42.740	NIL
	Earnings / (Loss) Per Share (Rs.)	0.18	(1.61)	(0.78)

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt /Networth)	5.54	0.18	(34.94)
Current Ratio (Current Asset/Current Liability)	1.07	4.98	0.97

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	2.500	20.000	200.000
Reserves & Surplus	(2.671)	(4.332)	(0.761)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	(0.171)	15.668	199.239
long-term borrowings	0.000	0.000	151.727
Short term borrowings	5.974	2.850	951.728
Total borrowings	5.974	2.850	1103.455
Debt/Equity ratio	(34.936)	0.182	5.538

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	0.000	42.740	1771.572
			4,044.998

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	0.000	42.740	1771.572
Profit	(0.196)	(1.661)	3.571
		(3.89%)	0.20%

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	Yes
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	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	Yes
29]	Last accounts filed at ROC	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BACKGROUND:

Subject was incorporated on 16 October 2003 as a private limited company. The registered office of the Company is presently located at Kochi, Kerala, India. The Company is primarily engaged in the business of export and trading in gold, silver, diamond and platinum jewellery and watches.

FINANCIAL RESULTS:

The Directors have pleasure to inform that subject has commenced its retail business during the year and also carried out export activities which resulted into total turnover of Rs. 1771.572 Million for this year against Rs. 42.740 Million of previous year. The Company has posted a net profit of Rs.3.571 Million for the financial year 2012-13 (Previous year loss of Rs.1.661 Million).

OPERATIONS:

Subject has commenced three showrooms at Cochin, Trivandrum and Coimbatore during the year as part of its domestic business activities. Subject could also manage to concentrate export activities which have contributed more than 50% of the total turnover of subject. The Directors are proposing to commence few more showrooms during the upcoming year.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Million	31.03.2012 Rs. In Million
Short Term Borrowings
Loans and advances from related parties	139.231	2.850
Total	139.231	2.850

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10419188	07/09/2013 *	2,450,000,000.00	THE SOUTH INDIAN BANK LIMITED	THRISSUR MAIN BRANCH, P.B. NO. 81, ROUND SOUTH, T HRISSUR, KERALA - 680001, INDIA	B88250204

*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

· Furniture and Fixture

· Office Equipment

· Computer

· 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 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.62.67
UK Pound	1	Rs.93.26
Euro	1	Rs.68.85

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.