MIRA INFORM REPORT

Report No. :	350395.2
Report Date :	28.11.2015

IDENTIFICATION DETAILS

Name :	RIJIYA BROTHERS
Registered Office :	GW 8010, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra
Tel. No.:	91-22-23683135/36/37
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	1997
Capital Investment / Paid-up Capital :	Rs.308.187 Million
IEC No.:	0397031165
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	AADFR4197A
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer, Exporter and Importer of rough diamonds and polish diamonds.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 is an established partnership concern started in the year 1997 having satisfactory track. Subject is engaged in the business as manufacturer, exporter and importer of rough diamonds and polish diamonds. The concern progressing well. General financial position of the concern is sound and healthy. The rating also takes into consideration promoter’s experience and operating track record of over two decades in the diamond industry. Moreover, this rating strength is partially offset by subject exposure to intense competition from organized and un-organized players in the industry. Trade relations are reported as fair. Business is active. Payments terms are reported as slow but correct. The concern can be considered normal for business dealings at usual trade 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

Rating Agency Name	ICRA
Rating	Long term : BBB-
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	July, 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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Paresh
Designation :	Accounts Head
Contact No.:	91-9820006994

LOCATIONS

Registered Office :	GW 8010, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-23683135/36/37
Mobile No.:	91-9820006994 (Mr. Paresh)
Fax No.:	91-22-23683138
E-Mail :	rijiyabrothers@gmail.com info@rijiyabrothers.com
Area :	900 Sq. ft.
Location :	Rented
Locality :	Commercial
Factory :	Plot No. 1 and 2, Vala Wadi Near Mehta Petrol, Pump Katargram, Surat, Gujarat, India

PARTNERS

Name :	Mr. Vallabhbhai Devrajbhai Rijiya
Designation :	Partner
Address :	38, Vishal Nagar, Vibhag No.1,  Behind Anathbal Ashram,  Katargam Road, Surat-395004, Gujarat, India
Name :	Mr. Gordhanbhai Popatbhai Rijiya
Designation :	Partner
Address :	38, Vishal Nagar, Vibhag No.1,  Behind Anathbal Ashram,  Katargam Road, Surat-395004, Gujarat, India
Name :	Mr. Vinubhai D. Rijiya
Designation :	Partner
Address :	56-57, Shreeji Park Society,  Laxmidas Road  Katargam Road, Surat -395004, Gujarat, India
Name :	Mr. Rajeshbhai Devrajbhai Rijiya
Designation :	Partner
Address :	38, Vishal Nagar, Vibhag No.1,  Behind Anathbal Ashram,  Katargam Road, Surat-395004, Gujarat, India
Name :	Mr. Kalpesh Vallabhbhai Rijiya
Designation :	Partner
Address :	38, Vishal Nagar, Vibhag No.1,  Behind Anathbal Ashram,  Katargam Road, Surat-395004, Gujarat, India

KEY EXECUTIVES

Name :	Mr. Paresh
Designation :	Accounts Head

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of rough diamonds and polish diamonds.
Products :	Rough Diamonds Polish Diamond
Brand Names :	---
Agencies Held :	---
Exports :
Products :	Polished Diamond
Countries :	Hong Kong United States of America Dubai
Imports :
Products :	Rough Diamonds
Countries :	Belgium Dubai
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Dia Gems
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

End Users

Reference :	KBS Creations
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

1500 (Approximately)

Bankers :

Banker Name	Bank of India
Branch Address	BKC Bandra (East) Branch Mumbai, Maharashtra, India
Person Name (With Designation)	Not Available
Contact Number	91-22-66985000 (Ringing)
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

· State Bank of India, BKC Bandra Branch, Mumbai, Maharashtra, India

· Saraswat Bank Co-operative Bank Limited, BKC Bandra (East) Branch Mumbai, Maharashtra, India

Auditors :

Name :

Rashimin Mehta and Company

Chartered Accountants

Address :

Mumbai-400004, Maharashtra, India

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern :

Not Divulged

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Owned :	Rs.308.187 Million
Borrowed :	--
Total :	Rs.308.187 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Partner’s Capital	308.187	256.951	175.534
(b) Reserves & Surplus	0.000	0.000	0.000
(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)	308.187	256.951	175.534
(3) Non-Current Liabilities
(a) long-term borrowings	16.883	34.558	20.277
(b) Deferred tax liabilities (Net)	0.190	0.220	0.220
(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)	17.073	34.778	20.497
(4) Current Liabilities
(a) Short term borrowings	186.596	188.025	136.018
(b) Trade payables	688.631	420.070	509.749
(c) Other current liabilities	1.658	0.785	1.536
(d) Short-term provisions	127.456	104.635	73.848
Total Current Liabilities (4)	1004.341	713.515	721.151
TOTAL	1329.601	1005.244	917.182
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	96.936	97.186	81.123
(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	0.163	0.163	0.163
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.642	5.474	3.284
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	102.741	102.823	84.570
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	725.917	469.282	548.923
(c) Trade receivables	355.281	324.141	214.398
(d) Cash and cash equivalents	15.163	15.817	7.437
(e) Short-term loans and advances	124.643	91.256	60.947
(f) Other current assets	5.856	1.925	0.907
Total Current Assets	1226.860	902.421	832.612
TOTAL	1329.601	1005.244	917.182

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	2629.943	2231.691	1749.792
	Other Income	0.203	0.038	0.078
	TOTAL (A)	2630.146	2231.729	1749.870
Less	EXPENSES
	Cost of Materials Consumed	2305.507	1663.822	1485.195
	Manufacturing Labour Charges	335.924	262.829	256.474
	Change In Inventories	(180.277)	114.101	(160.108)
	Exchange difference (Net) Loss/ (Gain)	(31.840)	17.117	25.138
	Employee Benefit Expenses	14.979	22.283	21.586
	Salary to Partner	7.500	7.500	7.200
	Sales, Administration and Other Expenses	51.198	37.518	29.579
	Exceptional Items	0.033	0.000	(1.276)
	TOTAL (B)	2503.024	2125.170	1663.788
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	127.122	106.559	86.082
Less	INTEREST EXPENSES (D)	23.876	13.955	12.456
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	103.246	92.604	73.626
Less/ Add	DEPRECIATION/ AMORTISATION (F)	17.434	15.037	13.227
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	85.812	77.567	60.399
Less	TAX (H)	29.394	26.917	18.729
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	56.418	50.650	41.670

Expected Sales (2015-2016) : Rs. 2950.000 Million

The above information has been parted by Mr. Paresh (Accounts Head)

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

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT/EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Partner’s Capital	175.534	256.951	308.187
Reserves & Surplus	0.000	0.000	0.000
Net worth	175.534	256.951	308.187
long-term borrowings	20.277	34.558	16.883
Short term borrowings	136.018	188.025	186.596
Total borrowings	156.295	222.583	203.479
Debt/Equity ratio	0.890	0.866	0.660

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1749.792	2231.691	2629.943
		27.540	17.845

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1749.792	2231.691	2629.943
Profit	41.670	50.650	56.418
	2.38%	2.27%	2.15%

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	Yes
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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	--
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	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
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 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.66.11
UK Pound	1	Rs.101.03
Euro	1	Rs.70.77

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	DIV
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		48

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.