MIRA INFORM REPORT

Report No. :	343948
Report Date :	09.10.2015

IDENTIFICATION DETAILS

Name :	ZEST CORPORATION
Registered Office :	D-601, Juhu Vishal, N.S. Road No.5, JVPD Scheme, Vile Parle (West), Mumbai 400049, Maharashtra
Tel. No.:	91-22-28201005/ 26879371/ 72
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation:	15.10.2004
Capital Investment / Paid-up Capital :	Rs.23.775 Million
TIN No.:	Not Available
IEC No.:	0305007343
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAFZ3323P
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturing, Trading and Exporting of Gold and Diamond Studded Jewellery.
No. of Employees :	20 (Approximately)=(In Office-5)+(In Branch-15)

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 :	Zest Corporation was established in the year 2004 as a partnership concern. It is engaged into manufacturing, trading and exporting of gold and diamond studded jewellery. The rating reflects on account of Y-O-Y growth in scale of operation and negligible debt along with above average debt protection metrics. The rating continues to factor in the strengths derived from experience of partners in the gems and jewellery industry. However, the rating continues to be constrained by the small capitalization and working capital intensive nature of operations. The rating further continues to be constrained by presence in the highly fragmented gems and jewellery industry. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of aforesaid, the concern can be considered for the 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 – 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 :	Ms. Sarita
Designation :	Accounts Department
Date :	06.10.2015
Name :	Mr. Samir T. Kakadia
Designation :	Partner
Contact No.:	91-9820292258

LOCATIONS

Registered Office :	D-601, Juhu Vishal, N.S. Road No.5, JVPD Scheme, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Tel. No.:	91-22-28201005/ 26879371/ 72
Mobile No.:	91-9833414244 (Mr. Bharat Bhai) 91-9820292258 (Mr. Samir T. Kakadia)
Fax No.:	Not Available
E-Mail :	accounts@zestcorporation.com
Area :	1000 (Approximately) sq. ft.
Location :	Owned
Factory :	E-8, Wicel Colony, Opposite Seepz Road, MIDC, Andheri (East), Mumbai 400093, Maharashtra,, India
E-Mail :	accounts@zestcorporation.com
Area :	5000 sq. ft.
Location :	Rented
Branch Office :	Shop No.205, 2^nd Floor, Building No.2581/82, Beadonpura Karol Bagh, Delhi – 110005, India
E-Mail :	delhi@zestcorporation.com
Area:	300 sq. ft.
Location :	Rented

PARTNERS

Name :	Mr. Samir T. Kakadia
Designation :	Partner
Address :	Golden Meadons Private Limited, A/9 Ambuj House Annexe, Altamount Road, Cumbala Hill, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	05.04.1970
Qualification :	T.Y.B.Com
Experience :	20 Years
Name :	Mr. Pravin T. Kakadia
Designation :	Partner
Address :	A/9 Ambuj House Annexe, Altamount Road, Cumbala Hill, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	07.10.1962
Qualification :	T.Y.B.Com
Name :	Mr. Mahesh Laljibhai Navadia
Designation :	Partner
Address :	Plot No.75/B, Sarita Society, Bhavnagar Para, Bhavnagar – 364003, Gujarat, India
Date of Birth/Age :	09.01.1977
Qualification :	T.Y.B.Com
Name :	Mr. Ganesh Khodabhai Navadia
Designation :	Partner
Address :	601, Juhu Vishal CHS, Building No.1, Cross Road No.5, J.V.P.D. Scheme, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	10.07.1974
Qualification :	T.Y.B.Com

KEY EXECUTIVES

Name :	Ms. Sarita
Designation :	Accounts Department

BUSINESS DETAILS

Line of Business :	Manufacturing, Trading and Exporting of Gold and Diamond Studded Jewellery.
Products :	Gold and Diamond Studded Jewellery
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Jewellery
Countries :	Kuwait
Imports :	Not Divulged
Terms :
Selling :	Credit (30 Days)
Purchasing :	Credit (30 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
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 End Users

Reference :	Not Divulged
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 :

20 (Approximately)=(In Office-5)+(In Branch-15)

Bankers :

Bank Name	State Bank of Patiala
Branch	Ground Floor, Seepz, Andheri (East), Mumbai – 400096, 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 :

Pulindra Patel and Company

Chartered Accountants

Address :

307, Gold Mohar Society, 3^rd Floor, 174 Princes Street, Above India ATR Studio, Mumbai – 400002, Maharashtra, India

Tel. No.:

91-22-28293455

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Name:	Patdiam
Address:	AE2072, Bharat Diamond Bource, Bandra-Kurla Complex, Bandra (East), Mumbai – 400061, Maharashtra, India
Line of Business:	Diamond
Name:	Patdiam Jewellery
Address:	Unit.102,1 ST Floor, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Line of Business:	Diamond Jewellery

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Owned :	Rs.23.775 Million
Borrowed :	--
Total :	Rs.23.775 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		23.775	16.401	12.317
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		23.775	16.401	12.317
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.767	0.000	4.713
TOTAL BORROWING		0.767	0.000	4.713
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		24.542	16.401	17.030
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.691	0.756	0.669
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.141	23.772	26.321
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	2.598	2.629	0.600
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.520	1.749	1.304
	Trade Receivables	60.418	23.473	5.115
Total Current Assets		99.677	51.623	33.340
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	7.981	1.950	0.611
	Short Term Provisions	2.763	1.417	0.330
	Trade Payables	68.082	32.611	16.038
Total Current Liabilities		78.826	35.978	16.979
Net Current Assets		20.851	15.645	16.361
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24.542	16.401	17.030

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	283.438	122.638	22.735
	Other Income	0.030	0.015	0.001
	TOTAL	283.468	122.653	22.736
Less	EXPENSES
	Cost of Materials Consumed	254.632	103.040	19.909
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.386)	1.366	(6.302)
	Employees benefits expense	3.038	2.537	1.271
	Other expenses	21.145	9.384	6.129
	TOTAL	271.429	116.327	21.007
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	12.039	6.326	1.729
Less	FINANCIAL EXPENSES	0.007	0.006	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	12.032	6.320	1.729
Less	DEPRECIATION/ AMORTISATION	0.491	0.222	0.146
	PROFIT/ (LOSS) BEFORE TAX	11.541	6.098	1.583
Less	TAX	4.167	2.014	0.301
	NET PROFIT FOR THE YEAR	7.374	4.084	1.282

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.60	3.33	5.64
Operating Profit Margin (PBIDT/Sales)	(%)	4.25	5.16	0.00
Return on Total Assets (PBT/Total Assets}	(%)	11.58	11.81	4.75
Return on Investment (ROI) (PBT/Networth)		0.49	0.37	0.13
Debt Equity Ratio (Total Debt /Networth)		0.03	0.00	0.38
Current Ratio (Current Asset/Current Liability)		1.25	1.43	1.54

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)
Share Capital	12.317	16.401	23.775
Reserves & Surplus	0.000	0.000	0.000
Net worth	12.317	16.401	23.775
long-term borrowings	0.000	0.000	0.000
Short term borrowings	4.713	0.000	0.767
Total borrowings	4.713	0.000	0.767
Debt/Equity ratio	0.383	0.000	0.032

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	22.735	122.638	283.438
		439.424	131.118

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	22.735	122.638	283.438
Profit	1.282	4.084	7.374
	5.64%	3.33%	2.60%

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	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	Yes
18	Major suppliers	No
19	Major customers	No
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	Yes
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	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 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.65.15
UK Pound	1	Rs.99.78
Euro	1	Rs.73.32

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KSH
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
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	5
--CREDIT LINES	1~10	5
--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	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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.