MIRA INFORM REPORT

Report No. :	345768
Report Date :	17.10.2015

IDENTIFICATION DETAILS

Name :	RENAISSANCE JEWELLERY LIMITED
Registered Office :	Plot No. 36 A and 37, SEEPZ, Andheri (East), Mumbai - 400096, Maharashtra
Tel. No.:	91-22-40551200/ 28291019
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	04.12.1989
Com. Reg. No.:	11-054498
Capital Investment / Paid-up Capital :	Rs.190.794 Million
CIN No.: [Company Identification No.]	L36911MH1989PLC054498
IEC No.:	2789000093
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14877C
PAN No.: [Permanent Account No.]	AACCR2148B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Importer of Diamond Studded Jewellery.
No. of Employees :	3500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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 :	RJL was incorporated on December 04, 1989. The company is in the business of manufacturing studded gold, platinum and silver jewellery using polished diamonds, precious and other semi-precious coloured stones. Its product portfolio includes rings, earrings, pendants etc. Subject is a well-established company having satisfactory track record. The ratings continues to factor in the significant experience of promoters in the diamond studded jewellery sector, the company during FY 2014-15 posted constant growth in its sales turnover and profitability of the company. Rating takes into consideration on company fair networth base and satisfactory balance sheet profile backed by it decent debt protection metrics. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of sound operational base backed by decent balance sheet profile, the company 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	March 2014

Rating Agency Name	ICRA
Rating	Non Fund Based Limits = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	March 2014

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. Kuldeep Patil
Designation :	Assistant Finance Manager
Contact No.:	91-22-40551200
Date :	15.10.2015

LOCATIONS

Registered Office/ Factory 1 :	Plot No. 36 A and 37, Seepz, Andheri (East), Mumbai - 400096, Maharashtra, India
Tel. No.:	91-22-40551200/ 28291019
Fax No.:	91-22-66938457/ 28292146
E-Mail :	nimish.zaveri@renjewellery.com hitesh.shah@renjewellery.com dilip@verigold.com investors@renjewellery.com info@renjewellery.com vvchakra@gmail.com kuldeep.patil@renjewellery.com
Website :	http://www.renjewellery.com
Location :	Leased
Locality :	Commercial
Factory 2 :	G-42, G and J Complex - III, SEEPZ, MIDC Marol, Andheri (East), Mumbai - 400096, Maharashtra, India
Factory 3 :	Unit No.156, SDF-V, SEEPZ, Andheri (East), Mumbai – 400096, Maharashtra, India
Factory 4 :	GJ -10, SDF-VII, SEEPZ, Andheri (East), Mumbai – 400096, Maharashtra, India
Factory 5 :	Unit No. 41 and 44, SDF-II, SEEPZ, Andheri (East), Mumbai-400096 Maharashtra, India
Factory 6 :	G-5, G and J Complex – I, SEEPZ, Andheri (East), Mumbai – 400096 Maharashtra, India
Factory 7 :	Unit No. C-3, Plot No. 15, WICEL, MIDC, Andheri - (East), Mumbai – 400096, Maharashtra, India
Factory 8 :	Plot No. 2302, Hill Drive, Talaja Road, Bhavnagar – 364002, Gujarat, India
Factory 9 :	Diamond Division CC-9081, 9/F, “C’ Tower, Central Wing, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Niranjan A. Shah
Designation :	Executive Chairman
Date of Birth/Age :	18.01.1947
Qualification :	SSC
Expertise in specific functional area :	He has over 40 years of experience in the Gems and Jewellery industry having an exposure to the entire range of activities.
Date of Appointment :	01.01.2003
Name :	Mr. Sumit N. Shah
Designation :	Managing Director
Name :	Mr. Hitesh M. Shah
Designation :	Executive Director
Date of Birth/Age :	15.09.1971
Qualification :	B.Com.
Expertise in specific functional area :	Hitesh Shah has over 20 years of experience in gems and Jewellery business. He has earlier worked with Sudiam B. V. BA, Japan as president and was responsible for its operational activities He oversees the finance and accounting functions and merchandising.
Date of Appointment :	01.01.2006
Name :	Mr. Neville R. Tata
Designation :	Executive Director
Date of Birth/Age :	05.09.1973
Qualification :	H.S.C.
Expertise in specific functional area :	Neville Tata has a total work experience of 18 years. Prior to joining us, Mr. Tata has worked with Inter Gold Private Limited as a Production Manager. He oversees the entire operations with relation to production activities.
Date of Appointment :	01.02.2006
Name :	Mr. Veerkumar C. Shah
Designation :	Independent Director
Date of Birth/Age :	01.05.1945
Qualification :	B.Com. and CA
Expertise in specific functional area :	He is a practicing Chartered Accountant having vast experience in the field of Accounts and Audit, Finance and Taxation.
Date of Appointment :	01.02.2006
Name :	Mr. Vishwas V. Mehendale
Designation :	Independent Director
Date of Birth :	17.09.1957
Date of Appointment :	03.04.2007
Qualifications :	B.Com., LL.B. and CA
Expertise in specific functional area :	He is a practicing Chartered Accountant having vast experience in the field of Accounts and Audit, Finance and Taxation.
Name :	Mr. Anil K. Chopra
Designation :	Independent Director
Date of Birth :	07.12.1943
Date of Appointment :	03.04.2007
Qualifications :	B.Sc. (Hon.) – Chemistry and PG Dip. in Management
Expertise in specific functional area :	He has 44 years experience in marketing of durables and non-durables, commercial operations and management of business ethics
Name :	Mr. Arun P. Sathe
Designation :	Independent Director
Date of Birth/Age :	14.10.1939
Qualification :	M.Com., LL.B.
Expertise in specific functional area :	He is one of the leading practicing Lawyers in Tax Tribunal, in the High Court, Supreme Court, mainly in Income Tax, Election Law and Constitutional Matters. He is a member of the Governing Council of Maharashtra Chamber of Commerce, Member of Finance and Taxation Committee of the Chamber and EX member of Finance and Taxation Committee of FICCI and on their expert panel for Tax Laws. He is the President of ITAI Bar Association. He is also connected with various other social and political organizations.
Date of Appointment :	27.05.2010
Name :	Mrs. Madhavi Pethe
Designation :	Independent Director
Date of Birth/Age :	15.12.1963
Qualification :	B.Com. M.Com., Ph.D.
Expertise in specific functional area :	Educationist and currently the Principal of M.L. Dahanukar College of Commerce, she has also done her Ph.D. in Human Resource Development.
Date of Appointment :	07.08.2014

KEY EXECUTIVES

Name :	Mr. G. M. Walavalkar
Designation :	Company Secretary
Name :	Mr. Kuldeep Patil
Designation :	Assistant Finance Manager
SENIOR MANAGEMENT	· Amit Shah (V. P. – Procurement) · Bhupen Shah (V. P. – Procurement) · Dhiren Shah (V. P. – Operations) · Dilip Joshi (V. P. – Finance) · Nikesh Shah (V. P. – Production) · Parag Shah (V. P. – Operations) · Amrish Shah (G. M. – Production) · G. M. Walavalkar (G. M. – Legal and CS) · Hari Mehta (G. M. – Purchase and Stores) · P. K. Sharma (G. M. – Quality- Bridal Division) · Sunil Pansare (G. M. – Production) · Naimesh Shah (G. M. – Corporate Strategy)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11702460	61.34
Bodies Corporate	80	0.00
Any Others (Specify)	2607040	13.66
Trusts	2607040	13.66
Sub Total	14309580	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14309580	75.00
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	521372	2.73
Sub Total	521372	2.73
(2) Non-Institutions
Bodies Corporate	623441	3.27
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1607332	8.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1220158	6.40
Any Others (Specify)	797557	4.18
Non Resident Indians	90997	0.48
Clearing Members	60056	0.31
Trusts	646504	3.39
Sub Total	4248488	22.27
Total Public shareholding (B)	4769860	25.00
Total (A)+(B)	19079440	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	19079440	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a %
1	Niranjan A Shah	26,07,040	13.66
2	Niranjan Family Private Trust	26,07,040	13.66
3	Sumit N Shah	41,71,120	21.86
4	Hitesh M Shah	13,03,520	6.83
5	Pinky Dhiren Shah	7,82,134	4.10
6	Amit C Shah	7,82,133	4.10
7	Bhupen C Shah	7,82,133	4.10
8	Kalpana N Shah	12,74,380	6.68
9	N Kumar Diamond Exports Limited	80	0.00
	Total	1,43,09,580	75.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	Elara India Opportunities Fund Limited	521234	2.73
2	RJL Employee Welfare Trust	646376	3.39
3	Parag S Shah	223329	1.17
4	Master Capital Services Limited	316454	1.66
	Total	1707393	8.95

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamond Studded Jewellery.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Diamond Studded Jewellery
Countries :	· USA · UK · Hong Kong · Austria
Imports :
Products :	Raw Material
Countries :	· USA · Hong Kong · Germany
Terms :
Selling :	Cash, Advance Payment, L/C and Credit
Purchasing :	Cash, Advance Payment and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Diamond Trading Co. Limited, Hong Kong
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 :

End Users

Reference :	Zale Corporation, USA
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 :

3500 (Approximately)

Bankers :

Bank Name:	State Bank of India
Branch:	SEEPZ, Andheri, Mumbai, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Bank of India

· Punjab National Bank

· Antwerp Diamond Bank N.V

· Central Bank of India

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Working Capital Finance from banks denominated in Foreign Currency	1771.774	2491.495
Working Capital Finance from banks denominated in Indian Currency	4.205	3.571
Total	1775.979	2495.066

Statutory Auditors :
Name :	J. K. Shah and Company Chartered Accountants
Address :	3^rd Floor, Flat No. 14, Al-Karim Manzil, 15, Palton Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22615581/ 22620183
Fax No.:	91-22-22619937
E-Mail :	info@jkshah.co.in
Internal Auditors :
Name :	Jayesh Dadia and Associates Chartered Accountants
Memberships :	--
Collaborators :	--
Subsidiary Company:	· Renaissance Jewelry N.Y. Inc. · Verigold Jewellery (UK) Limited · Renaissance Jewellery Bangladesh Private Limited · N. Kumar Diamond Exports Limited · Verigold Jewellery DMCC
Indirect Subsidiary Company :	· VGJA Inc., – Subsidiary of Renaissance Jewelry N.Y Inc., · Housefull International Limited - Subsidiary of N. Kumar Diamond Exports Limited · Housefull Supply Chain Management Limited – Subsidiary of Housefull International Limited
Associate concerns / Companies / trust under control of key management personnel and relatives:	· Anived Trade Impex Private Limited · Anived Advisors Private Limited (formerly known Vedani Allcomm Impex Private Limited) · Niranjan Holdings Private Limited · Anived Portfolio Managers Private Limited · Renaissance Jewellery Limited – Employee Group Gratuity Trust · RJL – Employee Welfare Trust · Renaissance Foundation · iAlpha Enterprise · Aurelle Jewellery LLP

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
27,000,000	Equity Shares	Rs.10/- each	Rs.270.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19,079,440	Equity Shares	Rs.10/- each	Rs.190.794 Million

Reconciliation of the shares outstanding at the beginning and at the end of the reporting year

Equity shares	March 31, 2015
	No. of Shares	Rs. in Million
At the beginning of the year	19,079,440	190.794
Issued during the year	--	--
Outstanding at the end of the year	19,079,440	190.794

Of the above, 720,000 Equity Shares of Rs.10/- each fully paid-up have been issued during the period of five years immediately preceding the reporting date to RJL – Employee Welfare Trust pursuant to Employee Stock Purchase Scheme (ESPS).

Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of `10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2015, the amount of per share dividend recognized as distributions to equity shareholders was Re.1.00 (March 31, 2014: Re.1.00).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the Company

Equity Shares of Rs.10/- each fully paid up	March 31, 2015
	No. of Shares	%
Niranjan A. Shah	2,607,040	13.66
Sumit N. Shah	4,171,120	21.86
Hitesh M. Shah	1,303,520	6.83
Kalpana N. Shah	1,274,380	6.68
Niranjan Family Private Trust	2,607,040	13.66

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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) Share Capital	190.794	190.794	190.794
(b) Reserves & Surplus	3377.840	3249.089	2858.906
(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)	3568.634	3439.883	3049.700
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.666	21.803	12.907
Total Non-current Liabilities (3)	7.666	21.803	12.907
(4) Current Liabilities
(a) Short term borrowings	1780.345	2685.977	1846.945
(b) Trade payables	1987.740	1740.583	1247.309
(c) Other current liabilities	68.809	73.287	41.448
(d) Short-term provisions	37.623	47.131	43.834
Total Current Liabilities (4)	3874.517	4546.978	3179.536
TOTAL	7450.817	8008.664	6242.143
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	345.065	433.175	416.270
(ii) Intangible Assets	3.491	5.087	5.454
(iii) Capital work-in-progress	3.288	3.224	10.398
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1100.750	1051.553	1050.933
(c) Deferred tax assets (net)	15.211	3.374	2.890
(d) Long-term Loan and Advances	167.502	125.526	112.523
(e) Other Non-current assets	3.039	2.561	5.293
Total Non-Current Assets	1638.346	1624.500	1603.761
(2) Current assets
(a) Current investments	145.260	0.000	0.000
(b) Inventories	2129.851	2482.610	2097.506
(c) Trade receivables	3213.929	3497.180	2302.051
(d) Cash and cash equivalents	230.840	125.945	132.006
(e) Short-term loans and advances	92.018	135.861	73.204
(f) Other current assets	0.573	142.568	33.615
Total Current Assets	5812.471	6384.164	4638.382
TOTAL	7450.817	8008.664	6242.143

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	10603.906	9822.965	7190.074
		Other Income	165.794	6.829	7.409
		TOTAL (A)	10769.700	9829.794	7197.483
Less	EXPENSES
		Cost of Materials Consumed	8449.439	8101.712	5347.254
		Purchases of traded goods	0.000	0.000	0.015
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	347.993	(621.077)	285.469
		Employees benefits expense	386.885	472.263	583.502
		Other expenses	1011.240	1398.695	620.692
		TOTAL (B)	10195.557	9351.593	6836.932
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		574.143	478.201	360.551
Less	FINANCIAL EXPENSES (D)		92.045	81.190	96.345
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		482.098	397.011	264.206
Less/ Add	DEPRECIATION/ AMORTISATION (F)		109.947	68.636	68.407
	PROFIT BEFORE TAX (E-F) (G)		372.151	328.375	195.799
Less	TAX (H)		27.662	57.316	62.121
	PROFIT AFTER TAX (G-H) (I)		344.489	271.059	133.678
	EARNINGS IN FOREIGN CURRENCY
		Exports at F.O.B. Value	10288.569	9648.387	6885.248
	IMPORTS
		Raw materials (Includes Goods in transit)	5077.168	4174.475	2354.250
		Consumable, Tools and Spares	86.297	73.018	59.712
		Capital Goods	8.099	19.882	13.248
	TOTAL IMPORTS		5171.564	4267.375	2427.210
	Earnings Per Share (Rs.)		18.06	14.21	7.01

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from/(used in) operations	1355.961	(519.133)	274.521
Net cash flow from/(used in) operating activity	1268.394	(580.190)	223.923

QUARTERLY RESULTS

PARTICULARS	30.06.2015
Type	1^st Quarter
Net Sales	212.460
Total Expenditure	202.870
PBIDT (Excl OI)	9.590
Other Income	1.129
Operating Profit	10.719
Interest	1.451
Exceptional Items	0.000
PBDT	9.268
Depreciation	1.787
Profit Before Tax	7.481
Tax	2.199
Provisions and contingencies	0.000
Profit After Tax	5.283
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	5.283

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	3.25	2.76	1.86
Operating Profit Margin (PBDIT/Sales)	(%)	5.41	4.87	5.01
Return on Total Assets (PBT/Total Assets}	(%)	5.88	4.72	3.78
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.06
Debt Equity Ratio (Total Liability/Networth)		0.50	0.78	0.61
Current Ratio (Current Asset/Current Liability)		1.50	1.40	1.46

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	Rs. 10/-
Market Value	Rs. 75.80/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	190.794	190.794	190.794
Reserves & Surplus	2858.906	3249.089	3377.840
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	3049.700	3439.883	3568.634
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	1846.945	2685.977	1780.345
Total borrowings	1846.945	2685.977	1780.345
Debt/Equity ratio	0.606	0.781	0.499

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	7190.074	9822.965	10603.906
		36.618	7.950

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	7190.074	9822.965	10603.906
Profit	133.678	271.059	344.489
	1.86%	2.76%	3.25%

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	Yes
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	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	Yes
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 & 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.

-

UNSECURED LOANS

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Interest free loan from related parties repayable on demand	4.366	190.911
Total	4.366	190.911

CORPORATE INFORMATION

Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacture of diamond studded jewellery which is majorly exported to countries like USA, Hong Kong, etc.

AWARDS/RECOGNITION

The Company has always strived for the best quality and designs and has been consistently receiving recognition by various Trade Organizations and Councils, for its’ performance and achievements. Following are some of the awards/recognition received by the Company in the past:

· GJEPC Award for outstanding Export Performance under the category “Studded Precious Metal Jewellery Exports”, in 2012

· GJEPC Award for topping the export performance under the category “Studded Precious Metal Jewellery Exports from EPZ/EOU Complexes” in 2011

· Emerging India Awards 2009

· GJEPC Award for being the largest exporter of studded precious metal Jewellery in 2008

· Wal-Mart’s ‘International Supplier of the Year’ Award

· SEEPZ-SEZ Star 2000-2001 Award

MANAGEMENT’S DISCUSSION AND ANALYSIS

ABOUT THE COMPANY

Renaissance Jewellery Limited (RJL) is engaged in the business of design, manufacturing and sales of various types of Jewellery comprising silver, gold, platinum, jewellery studded with diamonds and other precious and semi precious stones. The jewellery products include rings, pendants, earrings, bracelets, necklaces and bangles.

Categories under which the products are sold are Diamond fashion, Diamond Bridal and Gemstones. Starting its operations in India almost 2 decades ago, the Company has today evolved as a truly global Company with sales in USA, Canada, Hong Kong, UK, Australia, UAE and India. The Company has subsidiaries in the USA, UK, Bangladesh and UAE to assist the sale of its products in these geographies. The Company sells its Jewellery products to large retailers, specialty jewellery chains and through online portals.

The design of these products is centralized in Mumbai. The Company has manufacturing facilities spread across 3 principal locations: Mumbai, Bhavnagar (Gujarat) and Bangladesh with a total area of 190,000 sq. feet engaging over 4300 manpower. The Company believes that these locations provide cost effective skilled workers. The Company has invested in building adequate infrastructure across these locations. These locations are well equipped to manage the rising designing and manufacturing requirements of the Company without incurring substantial capital expenditure.

Apart from the core Jewellery business, they have their own Home Retail Brand “House Full” that sells readymade furniture across 38 stores and through its online presence delivering to 36 cities across India. While the Jewellery business feeds into the consumer demands of fashion jewellery globally, the House Full business caters to the growing consumer demand in the home retail segment in India.

GENERAL INDUSTRY OUTLOOK:

According to IMF, India will be the world’s fastest growing economy for the second consecutive year in 2016 at 7.5%, while its 2016 global economy growth forecast is 3.8%. The Gems and Jewellery sector in India plays a significant role in the Indian economy, contributing around 6-7% of the country’s GDP. One of the fastest growing

sectors, it is extremely export oriented and labour intensive.

The government of India has declared the sector as a focus area for export promotion based on its potential for growth and value addition. The government has recently undertaken various measures to promote investments and to upgrade technology and skills to promote brand India in the international market. The Gems and Jewellery Skill Council of India is planning to train over four million persons till 2022 as the sector is facing shortage of skilled manpower. The council aims to train, skill and enhance 4.07 million people by 2022.

According to a report by Research and Markets, the sector in India is expected to grow at a CAGR of 16.0% over the period 2014-2019. The domestic gems and Jewellery industry had a market size of $40 billion in 2013, and has the potential to grow to $80 billion by 2018. India exports 95% of the world’s diamonds, as per statistics from the Gems and Jewellery Export Promotion Council (GJEPC) and contributed ~$40 billion to the country’s foreign exchange earnings in FY2014.

The sector is witnessing changes in consumer preferences, as the westernisation of lifestyle is responsible for changes in the buying habits of the consumer. Consumers are demanding new designs and varieties in jewellery, and branded jewellers are able to fulfill their changing demands better than the local unorganised players. Increase in per capita income has led to an increase in sales of jewellery, as jewellery is a status symbol in India.

Factors that remain a concern for India’s Jewellery exporters include any deterioration of consumer spending abroad due to a decline of real wages and rough diamond supply disruptions that lead to higher prices. Similarly, volatile gold prices would have a negative impact on the profitability of retailers.

COMPANY PERFORMANCE

The Company’s revenue from operations for the Home Retail business for FY’15 was 720.100 Million as compared to Rs.1127.100 Million. the previous year. 23% of the revenues came from online sales and the balance was through the physical stores. The principal warehouse of the Company suffered a setback with a fire destroying the inventory stored there. Whereas the loss on account of the fire was insured, the inventory could not be replenished for a couple of months. The Company earned an EBIDTA of Rs.43.300 Million (EBIDTA margin of 6%) and ended with a marginal loss of Rs.7.300 Million against a PAT of Rs.15.600 Million the previous year.

The Company’s average transaction size for store sales was Rs.13100. The same for online sales is Rs.74000.000 Million. The average weekly sales for online has doubled to Rs.3.200 Million leading to an annualized sale of Rs.165.000 Million for FY15.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

[RS. IN MILLION]

PARTICULARS	Quarter Ended 30.06.2015
	(Unaudited)
Income from Operations
Net Sales/Income from Operations	2122.694
Other Operating Income	1.909
Total Income from operations (net)	2124.603
Expenses
(a) Cost of material consumed	1693.205
(b) Changes in inventories of finished goods, work in progress and stock in trade	17.502
(c) Employee benefit expenses	83.120
(d) Foreign Exchange (Gain)/ Loss	(9.889)
(e) Depreciation and amortization expenses	17.872
(f) Other Expenses	234.871
Total Expenses	2036.681
Profit from Operations before Other Income, Finance costs and Exceptional item	87.922
Other Income	1.402
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	89.324
Finance costs	14.512
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	74.812
Exceptional item	0.000
Profit/ Loss from Ordinary Activities before tax	74.812
Tax Expenses [including Deferred Tax and net of MAT credit]	21.986
Net Profit/ Loss from Ordinary Activities after tax	52.826
Extraordinary Items	0.000
Net Profit for the period	52.826
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	190.794
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	--
Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualized)
Basic	2.77
Diluted	2.77
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	4769860
Percentage of Shareholding	25.00
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--
Non - encumbered
- Number of Shares	14309580
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00
- Percentage of Shares (as a % of the total share capital of the company)	75.00

	Particulars	Quarter Ended 30.06.2015
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	1
	Received during the quarter	1
	Disposed of during the quarter	2
	Remaining unresolved at the end of the quarter	0

NOTES:

1) The above unaudited Financial Results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on July 31, 2015. The Statutory Auditors have carried out a Limited Review of the above results.

2) The Company is engaged primarily in the business of 'Manufacture and sale of Jewellery' and hence there is no separate reportable segment within the criteria defined under Accounting Standard (AS) -17 'Segment Reporting'.

3) Figures for the quarter ended March 31, 2015 is the balancing figure between the audited figure in respect of the financial year ended March 31, 2015 and the unaudited figures for nine months ended December 31, 2014.

4) Previous period/year's figures have been regrouped/rearranged wherever necessary.

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
Claims against the Company not acknowledged as debts:
i) Guarantees given to banks against credit facilities extended to indirect subsidiary company	170.000	170.000
ii) Penalty levied by the Custom Authorities	0.311	0.311
iii) Income Tax demand disputed in appeal: Disputed by the Department	6.272	9.258
iv) Disputed demand by Custom Authorities	2132.224	2132.224
(The contingent liabilities, if materialised, shall entirely be borne by the Company, as there is no likely reimbursement from any other party.) The Company has received a demand of Customs Duty along with the penalty amounting to Rs.1675.490 Million from the Commissioner of Customs, Chhatrapati Shivaji International Airport, Mumbai (Customs), alleging that the import of finished jewellery for remaking is not a permitted activity for an unit in SEEPZ SEZ and hence chargeable to Customs duty. Further, the Commissioner has also preferred an appeal to CESTAT for levy of interest of Rs.228.367 Million along with penalty amounting of Rs.228.367 Million on the said Customs Duty considering the issue is currently sub judice ad under litigation in the Bombay High Court, management has disclosed the demand of Rs.2132.224 Million as a contingent liabilities.

FIXED ASSETS:

· Factory buildings

· Other buildings

· Plant and equipment’s

· Furniture and fixtures

· Vehicles

· Computers

· Office Equipment

· Leasehold Improvements

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. 64.82
UK Pound	1	Rs. 100.41
Euro	1	Rs. 74.50

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	KAS
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.