MIRA INFORM REPORT

Report No. :	343003
Report Date :	01.10.2015

IDENTIFICATION DETAILS

Name :	M. RUHI EXPORTS
Registered Office :	191, Zaveri Bazar, Kapadia Building No. 11, 3^rd Floor, Mumbai – 400002, Maharashtra
Tel. No.:	91-22-23450624
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment:	2000
Capital Investment / Paid-up Capital :	Rs. 6.828 Million
TIN No.:	Not Available
IEC No.:	0300038194
TAN No.: [Tax Deduction & Collection Account No.]	MUMN13036C
PAN No.: [Permanent Account No.]	ACXPJ8947L
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader and Importer of Diamond and Diamond Studded Jewellery, Gold, Silver Jewellery etc.
No. of Employees :	3 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 2000 as a proprietary concern and it is having moderate track record. Ms. Shefali Vichare, Admin Executive has provided information of the concern to us. Rating is constrained on concern low profit margin and competition faced by concern in diamond and jeweller business and risk associated in foreign exchange fluctuation. However, trade relations are fair. Business is active. Payment terms are Slow but correct. The concern can be considered for business dealings with some 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 – 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 (GENERAL DETAILS)

Name :	Ms. Shefali Vichare
Designation :	Admin Executive
Contact No.:	91-22-33946189
Date :	29.09.2015

LOCATIONS

Registered Office :	191, Zaveri Bazar, Kapadia Building No. 11, 3^rd Floor, Mumbai – 400002, Maharashtra
Tel. No.:	91-22-23450624
Mobile No.:	91-9820234499 (Mr. Nikhil Zaveri)
Fax No.:	Not Available
E-Mail :	Nikhil.zaveri@yahoo.com
Location :	Owned
Locality:	Residential
Branch Office :	10/1409, Gopipura Main Road, Subhash Chouk Opposite Kundan Apartment, Surat - 395001, Gujarat, India
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Nikhil Zaveri
Designation :	Proprietor
Address:	191, Zaveri Bazar, Kapadia Building No. 11, 3^rd Floor, Mumbai – 400002, Maharashtra

KEY EXECUTIVES

Name :	Ms. Shefali Vichare
Designation :	Admin Executive

BUSINESS DETAILS

Line of Business :	Trader and Importer of Diamond and Diamond Studded Jewellery, Gold, Silver Jewellery etc.
Products :	Diamond Diamond Studded Jewellery Gold Jewellery Silver Jewellery
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Diamond Rough Diamond
Countries :	Belgium United Arab Emirates
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Pravin Mohanlal, Mumbai, Maharashtra, India
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 :

Wholesalers, Retailers and Manufacturer

Reference :	Jinal Gems, Mumbai, Maharashtra, India
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 :

3 (Approximately)

Bankers :

Bank Name	Kotak Mahindra Bank Limited
Branch	487, Sanghrajka House, Opera House, Mumbai - 400004, Maharashtra, 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 (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :

Name 1:

R J Kothari and Associates

Chartered Accountants

Adress:

Mumbai, Maharashtra, India

Name 2:

Shah and Company

Chartered Accountants

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs. 6.828 Million
Borrowed :	--
Total :	Rs. 6.828 Million

(Rs. In Million)

Capital Account	Amount
Nikhil Zaveri	6828136.29

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Proprietor’s Capital		6.828	6.248
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		6.828	6.248
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		5.489	0.473
TOTAL BORROWING		5.489	0.473
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		12.317	6.721
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.620	0.738
Capital work-in-progress		0.000	0.000
INVESTMENT		1.279	1.278
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.634	464.168
	Sundry Debtors	339.522	332.770
	Cash & Bank Balances	38.106	17.188
	Other Current Assets	16.923	2.775
	Loans & Advances	23.273	4.398
Total Current Assets		536.458	821.299
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	434.865	744.613
	Other Current Liabilities	28.596	43.937
	Provisions	62.581	28.044
Total Current Liabilities		526.042	816.594
Net Current Assets		10.418	4.705
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		12.317	6.721

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013
SALES
Income	1285.387	1463.070
Other Income	28.319	2.681
TOTAL	1313.706	1465.751
EXPENSES
Cost of Materials Consumed	1203.017	1426.017
Exchange Difference (Import)	103.029	24.013
Octroi charges	0.002	0.032
Stamp Duty	0.023	0.212
Custom Duty	0.344	9.319
Assortment Charges	0.000	0.446
Bank Charges	0.112	0.130
Brokerage Expenses	1.515	1.931
Clearing and Forwarding Expenses	0.032	0.151
Conveyance and Travelling Expenses	0.000	0.005
Labour Charges	4.064	1.940
LEGAL and Professional Fees	0.005	0.030
Registration and Membership	0.003	0.001
Miscellaneous Expenses	0.000	0.000
Motor Car Insurance	0.012	0.011
Printing and Stationer Expenses	0.003	0.005
Professional Charges	0.030	0.035
Rent Expenses	0.100	0.150
Salary	0.203	0.077
Vatav Kasar	0.008	0.003
Vat Difference	0.000	0.162
Clearing and Forwarding Expenses	0.000	0.234
Exchange Difference (Export)	0.063	0.000
Bonus	0.011	0.000
TOTAL	1312.576	1464.904
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1.130	0.847
INTEREST	0.117	0.134
NET PROFIT	0.643	0.695

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.05	0.05
Operating Profit Margin (PBIDT/Sales)	(%)	0.09	0.06
Debt Equity Ratio (Total Debt /Networth)		0.80	0.08
Current Ratio (Current Asset/Current Liability)		1.01	1.01

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	6.248	6.828
Reserves & Surplus	0.000	0.000
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	6.248	6.828
long-term borrowings	0.000	2.744
Short term borrowings	0.473	2.744
Total borrowings	0.473	5.488
Debt/Equity ratio	0.076	0.804

YEAR ON YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	1463.070	1285.387
		(12.145)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	1463.070	1285.387
Profit	0.695	0.643
	0.05%	0.05%

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	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	No
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 two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two years	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.65.74
UK Pound	1	Rs.99.53
Euro	1	Rs.73.79

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KSH
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	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		27

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.