MIRA INFORM REPORT

Report No. :	344029
Report Date :	10.10.2015

IDENTIFICATION DETAILS

Name :	BODRA BROTHERS
Registered Office :	Tower – B, Office No – GW6070, Bharat Diamond Bourse, BKC, Bandra-East, Mumbai – 400051, Maharashtra
Tel. No.:	91-22-33927721
Country :	India
Financials (as on) :	31.03.2015 (Provisional)
Date of Incorporation :	19.01.2011
Capital Investment / Paid-up Capital :	Rs. 25.442 Million
IEC No.:	0311037879
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAKFB6567B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Importer and Exporter of Diamond.
No. of Employees :	750 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 70000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is relatively new partnership concern established on January 2011 having satisfactory track. It is the manufacturer, exporter and importer of diamonds. Mr. Bhavesh Bhai Bodra, Partner provided all information of the subject to us. For the financial year ended 2014, concern has reported sales turnover of Rs. 467.000 million as compared to its previous year record of Rs. 63.000 million. Rating also takes into account of concern’s limited track record of operations and risk associated with nature of diamond business. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The concern can be considered for 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 :	Mr. Bhaveshbhai Bodra
Designation :	Partner
Contact No.:	91-9825891595
Date :	05.10.2015

LOCATIONS

Registered Office :	Tower – B, Office No – GW6070, Bharat Diamond Bourse, BKC, Bandra-East, Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-33927721
Mobile No.:	91-9825891595 (Mr. Bhaveshbhai Bodra)
Fax No.:	Not Available
E-Mail :	B4b_bodara@yahoo.in
Factory/ Branch :	303, Khodiyar Krupa Building, Vasta Devi Road, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2530531/32
E-Mail :	B4b_bodara@yahoo.in

PARTNERS

Name :	Mr. Himmatbhai M Bodra
Designation :	Partner
Address :	M/827, Ashirwad Palace, Batar Road, Surat, Gujarat, India
Date of Birth/Age :	14.06.1961
Qualification :	Under Graduate
Experience :	54 Years
Name :	Mr. Vallabhbhai M Bodra
Designation :	Partner
Address :	B-30, Rajdeep Society, Singapore Char Rasta, Katagam, Surat, Gujarat, India
Date of Birth/Age :	01.06.1964
Qualification :	Under Graduate
Experience :	51 Years
Name :	Bhimjibhai M Bodra
Designation :	Partner
Address :	B-23, Radheshyam Society, Singan Pore Char Rasta, Katargam, Surat, Gujarat, India
Date of Birth/Age :	12.04.1966
Qualification :	Under Graduate
Experience :	49 Years
Name :	Bhaveshbhai H Bodra
Designation :	Partner
Address :	M/827, Ashirwad Palace, Batar Road, Surat, Gujarat, India
Date of Birth/Age :	25.03.1984
Qualification :	B.C.A.
Experience :	31 Years

BUSINESS DETAILS

Line of Business :	Importer and Exporter of Diamond.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Diamond
Countries :	Hong Kong
Imports :
Products :	Raw Material
Countries :	Antwerp Dubai
Terms :
Selling :	Cash and Credit (30/60/90 days)
Purchasing :	Cash and Credit (30/60/90 days)

GENERAL INFORMATION

Suppliers :

Reference :	D. Naresh and Company
Name of the Person :	Mr. Dineshbhai (Partner)
Contact No.:	91-9820041597
Since How Long Known :	4 Years
Experience :	Excellent
Maximum Limit Dealt :	Rs. 100.000 Million (P.M.)
Remark :	They satisfied with the subject company. No complaints as such. They are happy with payment behavior and market goodwill.

• Arjav Diamonds NV
• Blue Gems NV
• Diabex N V
• Diacore Belgium NV
• Diarough NV
• EKTA Gems Private Limited
• Gayatri Enterprises
• Perfect Design BVBA
• Genesis Diamonds BVBA
• Rosy Blue NV

Customers :

Reference :	KGK Diamond Private Limited
Name of the Person :	Mr. Vijay Gadia (General Manager)
Contact No.:	91-22-40799977
Since How Long Known :	4 Years
Experience :	Excellent
Maximum Limit Dealt :	Rs. 0.300 Million
Remark :	No complaints. They are satisfied with product quality and delivery behavior.

No. of Employees :

750 (Approximately)

Bankers :

Banker Name	Karnataka Bank
Branch Address	Nariman Point
Person Name (With Designation)	Mr. Chandrashekhar (Branch Manager)
Contact Number	91-22-22049856
Name of Account Holder	Bodra Brothers
Account Number	1012000100629901
Account Since (Date/Year of Account Opening)	Since 2011
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	No Facilities
Account Operation	Not Divulged
Remarks (If any)	Satisfied

Banker Name	Central Bank of India
Branch Address	Bandra-Kurla Complex, Bandra (East), Mumbai, Maharashtra, India
Person Name (With Designation)	Mr. Joseph (Relationship Manager)
Contact Number	Not Divulged
Name of Account Holder	Bodra Brothers
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)	No Facilities
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOAN	As on 31.03.2015
The Varachha Co-Operative Bank Limited	3.753
Total	3.753

Auditors :
Name :	Jhaveri and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Memberships :	--
Collaborators :	--
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2015

PARTNERS FIXED CAPTIAL A/C

Particulars	Rs. In Million
Bhaveshbhai Himmatbhai Bodra	0.010
Bhimjibhai Mohanbhai Bodra	0.010
Himmatbhai Mohanbhai Bodra	0.010
Vallabhai Mohanbhai Bodra	0.010
Total	0.040

PARTNERS CURRENT CAPITAL A/C

Particulars	Rs. In Million
Bhaveshbhai Himmatbhai Bodra	(0.143)
Bhimjibhai Mohanbhai Bodra	7.929
Himmatbhai Mohanbhai Bodra	14.683
Vallabhai Mohanbhai Bodra	2.933
Total	25.402

BHAVESHBHAI HIMMATBHAI BODRA

Particulars	Rs. In Million	Particulars	Rs. In Million
To Cash Withdrawals	2.250	By Balance B/fd	1.164
To Transfer to Savings A/c	0.100	By Captial Introduce	0.050
		By Remuneration from Firm	0.508
To Balance C/fd	(0.143)	By Interest on Capital	0.122
		By Share of Profit during the year	0.363
Total	2.207		2.207

BHIMJIBHAI MOHANBHAI BODRA

Particulars	Rs. In Million	Particulars	Rs. In Million
To Cash Withdrawals	3.900	By Balance B/fd	8.769
To Transfer to Savings A/c	2.250	By Captial Introduce	0.800
		By Remuneration from Firm	2.400
To Balance C/fd	7.929	By Interest on Capital	0.970
		By Capital Introduce	0.050
		By Share of Profit during the year	1.090
Total	14.079		14.079

HIMMATBHAI MOHANBHAI BODRA

Particulars	Rs. In Million	Particulars	Rs. In Million
To Cash Withdrawals	2.247	By Balance B/fd	8.861
To Transfer to Savings A/c	2.250	By Captial Introduce	0.800
		By Remuneration from Firm	6.683
To Balance C/fd	14.683	By Interest on Capital	0.050
		By Capital Introduce	1.697
		By Share of Profit during the year	1.089
Total	19.180		19.180

VALLABHAI MOHANBHAI BODRA

Particulars	Rs. In Million	Particulars	Rs. In Million
To Cash Withdrawals	5.900	By Balance B/fd	8.778
To Transfer to Savings A/c	2.250	By Captial Introduce	0.800
		By Remuneration from Firm	0.050
To Balance C/fd	2.933	By Interest on Capital	0.365
		By Share of Profit during the year	1.090
Total	11.083		11.083

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015 (Provisional)	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Fixed Capital A/c		0.040	0.040	0.040
2] Partners Current Capital A/c		25.402	27.571	8.033
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.442	27.611	8.073
LOAN FUNDS
1] Secured Loans		3.753	0.000	0.000
2] Unsecured Loans		2.680	2.680	1.868
TOTAL BORROWING		6.433	2.680	1.868
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		31.875	30.291	9.941
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.914	8.208	2.823
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	292.325	247.289	83.273
	Sundry Debtors	113.931	58.196	0.000
	Cash & Bank Balances	8.392	2.024	2.282
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.362	1.465	0.718
Total Current Assets		418.010	308.974	86.273
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	395.332	285.843	78.799
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.717	1.048	0.356
Total Current Liabilities		398.049	286.891	79.155
Net Current Assets		19.961	22.083	7.118
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		31.875	30.291	9.941

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015 (Provisional)	31.03.2014	31.03.2013
	SALES
	Income	922.073	467.731	63.101
	Other Income	0.007	0.001	0.005
	TOTAL	922.080	467.732	63.096
Less	EXPENSES
	Cost of goods sold	849.923	404.188	45.897
	Import and export clearer	0.723	0.669	0.162
	Manufacturing expenses	37.071	46.419	13.116
	Account writing charges	0.050	0.050	0.024
	Assortment charges	0.000	0.012	0.059
	Audit fees	0.028	0.028	0.025
	Bank charges and comm.	0.586	0.450	0.106
	Brokerage expenses	2.458	0.071	0.071
	Conveyance	0.032	0.035	0.026
	Insurance block policy	0.259	0.240	0.044
	Interest on loan	0.224	0.245	0.008
	Interest on capital	3.154	1.633	0.328
	Miscellaneous expenses	1.549	1.023	0.185
	Salaries	14.216	4.274	0.259
	Telephone charges	0.050	0.037	0.025
	Travelling expenses	0.531	0.184	0.000
	Rent expenses	0.420	0.420	0.000
	Remuneration to partner	2.908	3.589	1.298
	Total	914.182	463.567	61.633
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	7.898	4.165	1.463
Less/ Add	DEPRECIATION/ AMORTISATION	2.595	1.950	0.748
	PROFIT BEFORE TAX	5.303	2.215	0.715
Less	TAX	1.670	0.693	0.221
	PROFIT AFTER TAX	3.633	1.522	0.494

KEY RATIOS

PARTICULARS		31.03.2015 (Provisional)	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.39	0.32	0.78
Return on Total Assets (PBT/Total Assets}	(%)	26.57	10.03	10.04
Return on Investment (ROI) (PBT/Networth)		0.21	0.08	0.09
Debt Equity Ratio (Total Debt /Networth)		0.25	0.10	0.23
Current Ratio (Current Asset/Current Liability)		1.05	1.08	1.09

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)
Partners Fixed Capital A/c	0.040	0.040	0.040
Partners Current Capital A/c	8.033	27.571	25.402
Net worth	8.073	27.611	25.442
Secured loan	0.000	0.000	3.753
Unsecured loan	1.868	2.680	2.680
Total borrowings	1.868	2.680	6.433
Debt/Equity ratio	0.231	0.097	0.253

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	63.101	467.731	922.073
		641.242	97.137

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	63.101	467.731	922.073
Profit	0.494	1.522	3.633
	0.78%	0.33%	0.39%

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	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 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

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)
Bhaveshbhai H Bondra HUF	0.643
Bhimjibhai M Bodra	0.712
Vallabhbhai M Bodra HUF	1.325
Total	2.680

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. 65.16
UK Pound	1	Rs. 99.78
Euro	1	Rs. 73.33

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	HNA
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	5
--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		41

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.