MIRA INFORM REPORT

Report No. :	322214
Report Date :	15.05.2015

IDENTIFICATION DETAILS

Name :	VIJAY GEMS AND JEWELLERY
Registered Office :	No.24, 5^th Cross, Gandhi Nagar, Bangalore – 560009, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.04.2011
Capital Investment :	Rs.24.851 Million
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Importer of Diamond and Studded Diamond Jewellery.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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 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

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 :	Ms. Tulsi
Designation :	Accounts Department
Contact No.:	91-80-22373051
Date :	12.05.2015

LOCATIONS

Registered Office/ Factory :	No.24, 5^th Cross, Gandhi Nagar, Bangalore – 560009, Karnataka, India
Tel. No.:	91-80-22373051/ 52
Fax No.:	91-80-22373051
E-Mail :	vijaygems1@gmail.com accunts@vijaygems.in

PARTNERS

Name :	Mr. Sunil Kumar Surana
Designation :	Partner
Name :	Mr. Deepak V. Jain
Designation :	Partner
Name :	Mr. Bharat V. Jain
Designation :	Partner
Name :	Mr. Kishan Kumar Surana
Designation :	Partner
Name :	Mr. Prashna Kumar Surana
Designation :	Partner
Name :	Mr. Vinay Kumar
Designation :	Partner
Name :	Mrs. Sankuntal Surana
Designation :	Partner
Name :	Mrs. Asha Kishankumar
Designation :	Partner

KEY EXECUTIVES

Name :	Ms. Tulsi
Designation :	Accounts Department

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamond and Studded Diamond Jewellery.
Products :	· Diamond · Studded Diamond Jewellery
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	Belgium
Imports :
Products :	Raw Material
Countries :	Belgium
Terms :
Selling :	Cash, Advance Payment, L/C, Credit and Cheque
Purchasing :	Cash, Advance Payment, L/C, Credit and Cheque

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

· Antique Exim Private Limited

· Decent Diamonds Private Limited

· S. Goutamchand and Company

· Eurostar Diamonds Traders NV

· Rosyblue NV

· Binnys Designer Diamond Jewellery

· Fabula Trading Company Private Limited

· Imagem Jewels

· Kiah Life Style Private Limited

· Priority Jewels Private Limited

· Mayan Diamonds

· Sri Krishna Diamonds

· Niharika Jewellery

· Prince Gems and Jewellery Private Limited

· Raj Diamonds

Customers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

· Reliance Jewels Limited

· Amar Jewellers

· Challani Jewellery Mart

· Swarna Laxmi Jewellers

· Unique Jewels

· Sunny Diamonds

· Rishab Gems

· Prathap Jewellers

· Arya Diamonds

· Shree Sai Gold Palace

· Zaveri Brothers Jewellery

· Lakshmi Gold Kazaana Private Limited

· JNR Jewellery

· Asok Diamonds

· Aura Jewels

No. of Employees :

80 (Approximately)

Bankers :

Bank Name:	Kotak Mahindra Bank
Branch:	10/7, Umiya Landmark, Lavelle Road, Bangalore – 560001, Karnataka, India
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· HDFC Bank Limited

· Axis Bank

Auditors :
Name :	Gautamchand and Company Chartered Accountants
Address :	Brigade Towers, Bangalore, Karnataka, India
Memberships :	--
Collaborators :	--
Sister Concerns:	· Vijay Gems · Sri Krishna Diamonds

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs. 24.851 Million
Borrowed :	--
Total :	Rs. 24.851 Million

FINANCIAL DATA

[all figures are in Rupees Million]

Particulars	31.03.2015
Sales Turnover (Approximately)	2500.000

The above information has been parted by Ms. Tulsi

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		24.851	88.180
2] Share Application Money		0.000	0.000
3] Profit and Loss Account		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		24.851	88.180
LOAN FUNDS
1] Secured Loans		88.401	2.725
2] Unsecured Loans		22.927	6.669
TOTAL BORROWING		111.328	9.394
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		136.179	97.574
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.812	8.418
Capital work-in-progress		0.000	0.000
INVESTMENT		30.016	30.015
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1406.796	1297.993
	Sundry Debtors	509.874	411.384
	Cash & Bank Balances	31.992	13.018
	Other Current Assets	1.864	6.476
	Loans & Advances	256.946	107.610
Total Current Assets		2207.472	1836.481
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2114.995
	Other Current Liabilities	1.115
	Provisions	1.011
Total Current Liabilities		2117.121	1777.340
Net Current Assets		90.351	59.141
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		136.179	97.574

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	2214.231	2843.023
		Other Income	56.484	62.655
		TOTAL	2270.715	2905.678
Less	EXPENSES
		Cost of Goods Sold	2021.645	2716.659
		Manufacturing Expenses and Direct Expenses	38.541	0.000
		Assortment Charges	3.146	0.184
		Bank Charges	2.442	0.000
		Clearing and Maintenance	0.203	0.106
		Exchange Fluctuation Loss	123.755	86.775
		Mobile and Telephone Charges	0.304	0.171
		Salary	7.628	4.420
		Finance Charges	2.476	1.279
		Interest to Partners	2.915	8.767
		Salary to Partners	5.760	5.760
		Inadmissible Expenses	5.265	0.061
		Other Expenses	32.670	65.017
		TOTAL	2246.750	2889.199
	PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION		23.965	16.479
Less	DEPRECIATION/ AMORTISATION		2.257	1.462
	NET PROFIT/ (LOSS)		21.708	15.017

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.98	0.53
Return on Total Assets (PBT/Total Assets)	(%)	0.98	0.81
Return on Investment (ROI) (PBT/Networth)		0.87	0.17
Debt Equity Ratio (Total Debt/Networth)		4.48	0.11
Current Ratio (Current Asset/Current Liability)		1.04	1.03

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	88.18	24.851
Profit and Loss Account	0.000	0.000
Net worth	88.180	24.851
Secured Loans	2.725	88.401
Unsecured Loans	6.669	22.927
Total borrowings	9.394	111.328
Debt/Equity ratio	0.107	4.480

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	2843.023	2214.231
		(22.117)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	2843.023	2214.231
Profit	15.017	21.708
	0.53%	0.98%

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 three years	Yes
12]	Profitability for last two 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	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 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.

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.63.84
UK Pound	1	Rs.100.65
Euro	1	Rs.72.88

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	SUB
Report Prepared by :	NKT

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.