MIRA INFORM REPORT

Report No. :	350404
Report Date :	24.11.2015

IDENTIFICATION DETAILS

Name :	MARUTI DIAMOND
Registered Office :	408-410, Krink Tower, Mini Bazar, Varachha Road, Surat – 395006, Gujarat
Tel. No.:	91-261-2555649
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment :	2001
Capital Investment :	Rs.28.731 Million
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	SRTM00877C
PAN No.: [Permanent Account No.]	AAHFM6071G
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Processor of Rough Diamond to Polish Diamond (Processing is done through Job work).
No. of Employees :	30 (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 :	Maruti Diamond was established in the year 2001 as a partnership concern and it is engaged into processor of rough diamonds to polish diamonds. The rating takes into accounts on concern’s established track record of business operations marked by decent industrial experience of the partner’s and decent cliental list. Rating is constrained on concerns by concentrated revenue profile, elongated working capital cycle and concerns presence in the highly fragmented and competitive gems and jewellery industry. However, trade relation seems to be fair. Business is active. Payments terms are slow slow but correct. In view of aforesaid, the company can be considered for business dealing with 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 – 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

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. Nitesh Manjibhai Vaghasiya
Designation :	Partner
Contact No.:	91-9825833147
Date :	21.11.2015

LOCATIONS

Registered Office :	408-410, Krink Tower, Mini Bazar, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-2555649
Mobile No.:	91-9825833147 (Mr. Nitesh Manjibhai Vaghasiya)
Fax No.:	Not Available
E-Mail :	marutid@yahoo.com
Location :	Owned
Locality :	Commercial

PARTNERS

Name :	Ms. Rekha Niteshbhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	37 Years
Qualification :	10th
Name :	Mr. Nitesh Manjibhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	40 Years
Qualification :	SSC
Name :	Mr. Laxman Savjibhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	48 Years
Qualification :	7th
Name :	Mr. Manjibhai Savjibhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	58 Years
Qualification :	3^rd
Name :	Mr. Khodabhai Savjibhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	50 Years
Qualification :	2^nd
Name :	Mr. Ketanbhai Khodabhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	30 Years
Qualification :	12^th
Name :	Mr. Sanjaybhai Laxmanbhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	30 Years
Qualification :	F.Y. B. Com
Name :	Ms. Gauriben Laxmanbhai Vaghasiya
Designation :	Partner
Date of Birth/Age :	40 Years

BUSINESS DETAILS

Line of Business :	Processor of Rough Diamond to Polish Diamond (Processing is done through Job work).
Brand Names :	--
Agencies Held :	--
Exports :
Products :	--
Countries :	--
Imports :
Products :	Rough Diamond
Countries :	Belgium
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Simpex Diamond, Belgium

· Vee Diam BVBA

· Gemasia BVBA

Customers :

Wholesalers, Retailers and End Users

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Nimesh Corporation, Surat

· Hardik Gems, Surat

· Manthan Diamonds, Surat

· P.G. Gems , Surat

· P. Hitesh and Company, Surat

· Symphony Gems Int, Surat

No. of Employees :

30 (Approximately)

Bankers :

Bank Name:	Saraswat Co-operative Bank Limited
Branch:	B-101, Yash Plaza, Ground Floor, Opposite Dhanmal Silk Mills, Main Varachha Road, Surat-395006, Gujarat, India
Person Name (with Designation):	Mr. P.C. Nabar (Branch Manager)
Contact Number:	91-9825128580
Name of Account Holder:	Maruti Diamond
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	31.12.2007
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Overdraft =Rs.15.000 Million
Account Operation:	Good
Remarks: They gave us positive response about subject company. They are satisfied with their banking transaction.

· Axis Bank Limited

Facilities :

--

Banking Relations :	--
Auditors :
Name :	Mr. Tejas Shah Chartered Accountant
Address :	Gujarat, India
Tel. No.:	91-9374726661
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Account	Amount in million
Ms. Gauriben Laxmanbhai Vaghasiya	0.949
Mr. Ketanbhai Khodabhai Vaghasiya	2.417
Mr. Khodabhai Savjibhai Vaghasiya	5.460
Mr. Laxman Savjibhai Vaghasiya	4.144
Mr. Manjibhai Savjibhai Vaghasiya	7.976
Mr. Nitesh Manjibhai Vaghasiya	2.773
Ms. Rekha Niteshbhai Vaghasiya	1.851
Mr. Sanjaybhai Laxmanbhai Vaghasiya	3.161
Total	28.731

FINANCIAL DATA

[all figures are in Rupees Million]

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	120.000
	(Due to Market Fluctuation)

The above information has been parted by Mr. Nitesh Manjibhai Vaghasiya (Partner)

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
SHAREHOLDERS FUNDS
1] Capital Account		28.731
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		28.731
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.587
TOTAL BORROWING		0.587
DEFERRED TAX LIABILITIES		0.000
TOTAL		29.318
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.399
Capital work-in-progress		0.000
INVESTMENT		1.525
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.287
	Sundry Debtors	23.131
	Cash & Bank Balances	(13.974)
	Other Current Assets	0.000
	Loans & Advances	0.654
Total Current Assets		40.098
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.505
	Other Current Liabilities	0.000
	Provisions	0.199
Total Current Liabilities		22.704
Net Current Assets		17.394
MISCELLANEOUS EXPENSES		0.000
TOTAL		29.318

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014
	SALES
		Income	155.996
		Other Income	0.123
		TOTAL	156.119
Less	EXPENSES
		Cost of material consumed	126.328
		Clearing and Forwarding/ Import	0.081
		Exchange Difference/ Import	3.651
		Labour Payment Account	12.164
		Angadia Expenses	0.022
		Account Salary	0.030
		Audit Fees	0.011
		Bank Charges	0.213
		Bank Processing Charges	0.082
		Bank Interest	1.873
		Commission	0.120
		Demat and Other Charges	0.038
		Electric Bill	0.696
		Foreign Travelling Expenses	0.328
		Interest Expenses	0.013
		Insurance Charges/ Bldg	0.004
		Jewellers Block Policy	0.091
		Laser Soing Expenses	0.028
		Laser Salary	0.392
		Laser Maintenance Charges	0.004
		Membership Fee	0.012
		Motorcar Insurance	0.030
		Motorcar Expenses	0.036
		Municipal Tax	0.011
		Office Expenses	0.034
		Office Maintenance	0.011
		Office Rent	0.030
		Profession Tax	0.002
		Profession Fees	0.018
		Partner’s Interest	2.361
		Partner’s Salary	2.547
		Salary	1.333
		Sarin Maintenance Charges	0.078
		Telephone Bill	0.017
		Travelling Expenses	0.028
		T.D.S. / Charges	0.001
		Profit/ Loss on sale of como	0.662
		TOTAL	153.380
	NET PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION		2.739
Less/ Add	DEPRECIATION/ AMORTISATION		1.190
	NET PROFIT/ (LOSS)		1.549

KEY RATIOS

PARTICULARS		31.03.2014
Net Profit Margin (PAT / Sales)	(%)	0.99
Return on Total Assets (PBT/Total Assets}	(%)	3.07
Return on Investment (ROI) (PBT/Networth)		0.05
Debt Equity Ratio (Total Liability/Networth)		0.02
Current Ratio (Current Asset/Current Liability)		1.77

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015 (Gross)
	(Rs. In Million)	(Rs. In Million)
Sales	155.996	120.000
		(23.075)

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	No
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	Yes
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	Yes
28	Estimation for coming financial year	No
29	Profitability for last one year	Yes
30	Major shareholders, if available	No
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 & 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 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. 66.35
UK Pound	1	Rs. 100.66
Euro	1	Rs. 70.47

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAS
Report Prepared by :	IND

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	4
--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	NO
--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.