MIRA INFORM REPORT

Report No. :	347552
Report Date :	03.11.2015

IDENTIFICATION DETAILS

Name :	DEEPAK DIAMONDS PRIVATE LIMITED
Registered Office :	G2-A, Prasad Chembers, Opera House, Mumbai – 400004, Maharashtra
Tel. No.:	91-22-40614061
Country :	India
Financials (as on) :	30.03.2015 [Deepak Diamonds]
Date of Incorporation :	14.07.2014
Com. Reg. No.:	11-256037
Capital Investment / Paid-up Capital :	Rs. 0.100 Million Rs.186.739 Million [Deepak Diamonds – Partnership Concern]
CIN No.: [Company Identification No.]	U14220MH2014PTC256037
IEC No.:	Not Available
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 :	Manufacturer, Exporter and Importer of Diamonds.
No. of Employees :	More than 1200 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 :	Slow but correct
Litigation :	Clear
Comments :	Subject was established on 1^st April, 1992 as a partnership firm later on 14^th July, 2014 it was reconstituted as a private limited company with name of “Deepak Diamonds Private Limited” and its activities has been started from 1^st April 2015. As per the available financial, the rating takes into consideration steady y-o-y growing scale of operations, satisfactory financial profile of the firm along with comfortable debt protection metrics and liquidity. Rating further gain strengths on extensive experienced of the partner’s and decent track record of its operations in gems and diamond industry. The rating strengths are tempered by moderate volatility in profitability margins and highly competitive industry with presence of a large number of players in the organised and unorganised in diamond industry. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. In view of aforesaid, the subject can be considered normal for business dealings at usual trade terms and conditions. Note: The above rating is based on the financials of partnership firm available from the sources.

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	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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Nilesh Pandya
Designation :	Finance Department
Contact No.:	91-22-40614061
Date :	30.10.2015

LOCATIONS

Registered Office :	G2-A, Prasad Chembers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-40614061
Mobile No.:	91-9820871109 (Mr. Vijay) 91-9987447743 (Mr. Nilesh)
Fax No.:	Not Available
E-Mail :	deepakdiamonds@hotmail.com npandya64@yahoo.in vpipalia@hotmail.com
Factory :	G.K. Chambers, 1^st Floor, Gala No.3, Kohinoor Road, Surat – 395006, Gujarat, India

DIRECTORS

Name :	Vijay Parshottambhai Patel
Designation :	Director
Address :	15th Floor, R-7, Enterprise Apartment, Forjet Hill Road, Tardeo, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	01.03.1973
Date of Appointment :	14.07.2014
DIN No.:	01129471
Name :	Savitaben Parshottambhai Patel
Designation :	Director
Address :	212, Enterprise Apartment, Forjett Hill Road, Tardeo, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	05.03.1951
Date of Appointment :	14.07.2014
PAN No.:	AMEPP9124C
DIN No.:	06864206
Name :	Parshottambhai Narayanbhai Patel
Designation :	Director
Address :	212, Enterprise Apartment, Forjett Hill Road, Tardeo, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	12.04.1948
Date of Appointment :	14.07.2014
PAN No.:	AABPP1532D
DIN No.:	06862395

KEY EXECUTIVES

Name :	Mr. Nilesh Pandya
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.05.2014

Names of Shareholders	No. of Shares	%age
Vijay Parshottambhai Patel	4000	40.00
Parshottambhai Narayanbhai Patel	4000	40.00
Savitaben Parshottambhai Patel	2000	20.00
Total	10000	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamonds.
Products :	Diamonds
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Dubai Hong Kong Belgium USA
Imports :
Products :	Raw Material
Countries :	Belgium
Terms :
Selling :	Credit and Depend Against
Purchasing :	Credit and Depend Against

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Single Star, Belgium
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 :

Reference :	Dynamic Impex Private Limited, Hong Kong
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 :

More than 1200 Approximately)

Bankers :

Bank Name	State Bank of India
Branch	Diamond Branch, D Tower Bharat Diamond Bourse, BKC Bandra (East), Mumbai – 400051, Maharashtra, India
Person Name (With Designation)	Mr. Sandeep Sawaznt (Manager)
Contact Number	91-22-26752381
Name of Account Holder	Deepak Diamonds
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	2005
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Export facility (Pre-shipment) :Rs.25.000 Million (Post-shipment) :Rs.125.000 Million
Account Operation	Not Divulged
Remarks (If any)	They gave us positive response about subject company they are satisfied.

Auditors :
Name :	K.P.Bavishi and Company Chartered Accountants
Address :	407, Parekh Market, Kennedy Bridege, Opera House, Mumbai – 400004, Maharashtra, India
E-Mail :	kpbavishi@gmail.com
PAN No.:	AACPB5013C
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

DEEPAK DIAMONDS PRIVATE LIMITED

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.10/- each	Rs.0.100 Million

DEEPAK DIAMONDS

(PARTNERSHIP FIRM)

AS ON 30.03.2015

Capital Investment :
Owned :	Rs.186.739 Million
Borrowed :	--
Total :	Rs.186.739 Million

FINANCIAL DATA

[all figures are in Rupees Million]

DEEPAK DIAMONDS

(PARTNERSHIP FIRM)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.03.2015	31.03.2014	31.03.2013
1] Partner’s Capital Account		186.739	153.692	157.599
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		186.739	153.692	157.599
LOAN FUNDS
1] Secured Loans		285.160	253.952	220.353
2] Unsecured Loans		13.363	23.391	6.224
TOTAL BORROWING		298.523	277.343	226.577
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		485.262	431.035	384.176
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.476	4.399	4.594
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.050
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	62.867	60.179	57.049
	Sundry Debtors	566.540	466.299	429.379
	Cash & Bank Balances	1.177	0.203	2.224
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.928	38.877	18.965
Total Current Assets		645.512	565.558	507.617
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	152.776	123.272	114.385
	Provisions	16.000	15.700	13.700
Total Current Liabilities		168.776	138.972	128.085
Net Current Assets		476.736	426.586	379.532
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		485.262	431.035	384.176

PROFIT & LOSS ACCOUNT

	PARTICULARS	30.03.2015	31.03.2014	31.03.2013
	SALES
	Income	882.218	862.765	853.348
	Other Income	0.003	0.003	0.005
	TOTAL	882.221	862.768	853.353
Less	EXPENSES
	Cost of Goods Sold	813.638	802.984	797.643
	Sales and administrative expense	18.110	15.649	12.131
	Interest on bank loans and other interest	18.632	15.592	15.835
	Interest on Vat refund	(0.067)	(0.203)	0.000
	Interest on Bank Deposits	(0.046)	0.000	0.000
	salary to partner	4.000	4.000	2.700
	TOTAL	854.267	838.022	828.309
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	27.954	24.746	25.044
Less/ Add	DEPRECIATION/ AMORTISATION	1.466	0.729	0.799
	PROFIT/ (LOSS) BEFORE TAX	26.488	24.017	24.245
Less	TAX	8.028	8.000	7.500
	PROFIT/ (LOSS) AFTER TAX	18.460	16.017	16.745

KEY RATIOS

PARTICULARS		30.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.09	1.86	1.96
Operating Profit Margin (PBIDT/Sales)	(%)	3.17	2.87	2.93
Return on Total Assets (PBT/Total Assets}	(%)	4.05	4.21	4.73
Return on Investment (ROI) (PBT/Networth)		0.14	0.16	0.15
Debt Equity Ratio (Total Debt /Networth)		1.60	1.80	1.44
Current Ratio (Current Asset/Current Liability)		3.82	4.07	3.96

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEEPAK DIAMONDS

(PARTNERSHIP FIRM)

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	30.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Capital Account	157.599	153.692	186.739
Reserves & Surplus	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	157.599	153.692	186.739
Secured Loans	220.353	253.952	285.160
Unsecured Loans	6.224	23.391	13.363
Total borrowings	226.577	277.343	298.523
Debt/Equity ratio	1.438	1.805	1.599

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	30.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	853.348	862.765	882.218
		1.104	2.255

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	30.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	853.348	862.765	882.218
Profit	16.745	16.017	18.460
	1.96%	1.86%	2.09%

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
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	Yes
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	Yes
35	Negative Reporting by Auditors in the Annual Report	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 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.65.47
UK Pound	1	Rs.101.06
Euro	1	Rs.72.22

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	KAS
Report Prepared by :	SNT

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	4
--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		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.