MIRA INFORM REPORT

Report No. :	345455
Report Date :	17.10.2015

IDENTIFICATION DETAILS

Name :	RIDDHI IMPEX
Registered Office :	Plot No.57, New Mohan Nagar, 3, 4 Floor, Matawadi, L.H. Road, Surat - 395006, Gujarat
Mobile No.:	91-9374726858 (Mr. Ashokbhai Sivabhai Sutaria)
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation:	08.02.2002
Capital Investment / Paid-up Capital :	Rs.39.964 Million (As on 31.03.2014)
TIN No.:	Not Available
IEC No.:	5202005890
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAFFR3007B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Processor of Rough Diamond and Polished Diamond.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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 :	Subject is a partnership concern established in the year 2002. It is into processing or rough and polished diamond. As per the financial of FY 2014, the company has achieved decent sales turnover marked by profit of 1.01%. It has adequate capital structure. Mr. Ashokbhai (Partner) has claimed that the firm has achieved sales turnover of Rs.490.000 Million for the financial year 2015, which is not been verified. Trade relations are fair. Business is active. Payments are usually 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. Ashokbhai Sivabhai Sutaria
Designation :	Partner
Contact No.:	91-9374726858
Date :	14.10.2015

LOCATIONS

Registered Office :	Plot No.57, New Mohan Nagar, 3, 4 Floor, Matawadi, L.H. Road, Surat - 395006, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9374726858 (Mr. Ashokbhai Sivabhai Sutaria)
Fax No.:	Not Available
E-Mail :	lmsutariya@gmail.com
Area :	24000 Sq. Ft.
Locality:	Industrial
Branch Office :	CW 4200, Bharat Diamond Bourse, Bandra (East), Mumbai – 400051, Maharashtra, India

PARTNERS

Name :	Mr. Lallubhai Mithabhai Sutaria
Designation :	Partner
Address :	B-70, Ramkrishna Society,  Matawadi Lambe Hanuman Road,  Surat – 395010, Gujarat, India
Name :	Mr. Bhupatbhai Mithabhai Sutaria
Designation :	Partner
Address :	B-70, Ramkrishna Society,  Matawadi Lambe Hanuman Road,  Surat – 395010, Gujarat, India
Name :	Mr. Manjibhai Mithabhai Sutaria
Designation :	Partner
Address :	B-70, Ramkrishna Society,  Matawadi Lambe Hanuman Road,  Surat – 395010, Gujarat, India
Name :	Mr. Ashokbhai Sivabhai Sutaria
Designation :	Partner
Address :	195, Varsha Society-1, Matawadi  Lambe Hanuman Road,  Surat – 395010, Gujarat, India
Name :	Mr. Hareshbhai Bhimjibhai Sutaria
Designation :	Partner

BUSINESS DETAILS

Line of Business :	Processor of Rough Diamond and Polished Diamond.
Products :	· Rough Diamond · Polished Diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Polish Diamond
Countries :	· Hong Kong · Dubai · United Kingdom
Imports :
Products :	Rough Diamond
Countries :	· Belgium · Dubai
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Glorious Gems
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 and Retailers

Reference :	A.M. Exporters Company Limited
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

· Bri Diam

· Gem Exports Limited

· Allied Jewellary Co.

· Monique Gems Exports Private Limited

· Silicon International

· Sinowin Pacific Limited

· Style Pearl Gem Limited

· Wellgroom Trading Company

· Waihing Company

No. of Employees :

1000 (Approximately)

Bankers :

Bank Name:	Indian Overseas Bank
Branch:	Fort Branch, Elphinstone Building, 2/10, Veer Nariman Road, Fort, Mumbai -400002, Maharashtra, India
Name of the Person (with Designation):	Mr. Dilipkumar (Credit Manager)
Contact Number:	91-22-22622158
Name of Account Holder:	RIDDHI IMPEX
Account Number:	001402000008659
Account Since (Date/ Year of A/c Opening):	5 Years
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	Rs.60.000 Million
Account Operation:	Satisfactory
Remarks: It’s a good account and No negative remarks.

· Indian Overseas Bank, Surat, Gujarat, India

· The Saraswat Co-operative Bank, Gujarat, India

Auditors :
Name :	Bharat Patel and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Particulars	Amount in Million
Ashokbhai Sivabhai Sutaria	9.010
Bhupatbhai Mithabhai Sutaria	6.726
Hareshbhai Bhimjibhai Sutaria	6.740
Lallubhai Mithabhai Sutaria	9.373
Manjibhai Mithabhai Sutaria	8.115
Total	39.964

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		39.964	31.136
2] Share Application Money		0.000	0.000
3] Profit and Loss Account		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		39.964	31.136
LOAN FUNDS
1] Secured Loans		49.832	38.506
2] Unsecured Loans		2.400	0.000
TOTAL BORROWING		52.232	38.506
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		92.196	69.642
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.208	11.410
Capital work-in-progress		0.000	0.000
INVESTMENT		1.067	0.850
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	94.426	64.661
	Sundry Debtors	193.493	79.874
	Cash & Bank Balances	0.264	0.104
	Other Current Assets	0.000	0.000
	Loans & Advances	1.259	0.870
Total Current Assets		289.442	145.509
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	215.150	88.027
	Other Current Liabilities	0.000	0.000
	Provisions	0.520	0.415
Total Current Liabilities		215.670	88.442
Net Current Assets		73.772	57.067
MISCELLANEOUS EXPENSES		0.000	0.000
OTHER ASSETS		6.149	0.315
TOTAL		92.196	69.642

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	408.485	310.575
	Other Income	0.163	0.606
	TOTAL	408.648	311.181
Less	EXPENSES
	Cost of Goods Sold	365.172	271.437
	Account Fee	0.042	0.036
	Audit Fee	0.010	0.010
	BDB Membership	0.154	0.029
	Bank Charges	1.028	0.738
	Bank Loan Interest	3.829	3.904
	Electricity Expenses	0.359	0.322
	Foreign Travel	0.333	0.086
	Insurance Expenses	0.102	0.103
	JGEPC Membership Fee	0.044	0.034
	Legal Fee	0.006	0.006
	Loan Process Charges	0.213	0.261
	Office Expenses	0.040	0.024
	Office Rent Expenses	0.015	0.180
	Professional Tax	0.000	0.006
	Staff Salary	0.432	0.358
	Stationery Expenses	0.002	0.002
	Telephone Expenses	0.015	0.000
	Vatav Kasar	0.000	0.000
	Assorter Salary	0.204	0.174
	Custom Clearing and Forwarding Charge	0.326	0.214
	Exchange Difference	1.449	2.033
	Labour Charges	27.690	25.493
	Laser Machine Operator Salary	0.085	0.132
	Laser Repairing Expenses	0.022	0.041
	Donation	0.000	0.100
	Interest to Partners	1.868	1.403
	Salary To Partners	0.750	0.750
	TOTAL (B)	404.190	307.876
	PROFIT / (LOSS) BEFORE DEPRECIATION AND AMORTISATION	4.458	3.305
Less/ Add	DEPRECIATION/ AMORTISATION	0.291	0.304
	NET PROFIT/ (LOSS)	4.167	3.001

Particulars	31.03.2015
Sales Turnover (Approximately)	490.000

Expected Sales (2015-2016): Rs.550.000 Million

The above information has been parted by Mr. Ashokbhai Sivabhai Sutaria (Partner).

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)	(%)	1.02	0.97
Return on Total Assets (PBT/Total Assets}	(%)	1.39	1.91
Return on Investment (ROI) (PBT/Networth)		0.10	0.10
Debt Equity Ratio (Total Debt/Networth)		1.31	1.24
Current Ratio (Current Asset/Current Liability)		1.34	1.65

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Partners Capital	31.136	39.964
Profit and Loss Account	0.000	0.000
Net worth	31.136	39.964
Secured Loans	38.506	49.832
Unsecured Loans	0.000	2.400
Total borrowings	38.506	52.232
Debt/Equity ratio	1.237	1.307

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	310.575	408.485
		31.525

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	310.575	408.485
Profit	3.001	4.167
	0.97%	1.02%

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	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
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	Yes
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.

UNSECURED LOAN

PARTICULAR	31.03.2014 (Rs. In Million)
Ajay Mishra	1.400
Anandkumar Agrawal	0.100
Sona Jewels	0.500
Sushila Devi	0.400
Total	2.400

FIXED ASSETS

· Bruter Machine

· Computer

· Laser Machine

· Laser Marking System Machine

· Office Furniture

· Safe (Tajori)

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.64.96
UK Pound	1	Rs.100.55
Euro	1	Rs.73.99

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.