MIRA INFORM REPORT

Report No. :	346026
Report Date :	19.10.2015

IDENTIFICATION DETAILS

Name :	KOSHIYA BROTHERS
Registered Office :	4^th Floor, A-402, Prince Diamond Apartment, Bambawadi, Katargam, Surat-395004, Gujarat
Tel. No.:	91-261-2537999
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	July, 2010
Capital Investment / Paid-up Capital :	Rs.5.323 Million
IEC No.:	5211027426
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AALFK4423C
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Processor and Trader of Rough and Polished Diamond
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in July 2010 as a partnership concern and it is the processor and trader of rough and polish diamond. It has moderate track. Mr. Gautam, (Accountant) has provided all information of the subject to us and claimed that the concern has achieved sales turnover of Rs.85.000 million for the year 2014-15 which is not verified. Further, according to available financials of the year 2014, management has witnessed an improvement in its business profile by growth in its sales revenue as well as net profitability but reported low profit margins and has modest scale of its operations. Moreover, rating remains constrained on account of concern’s limited track record of operations and highly intense competitive diamond industry along with risk associated with the legal status of the subject as partnership concern for withdrawal of capital by the partners. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of the aforesaid, the concern can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Gautam
Designation :	Accountant
Contact No.:	91-9033128621
Date :	16.10.2015

LOCATIONS

Registered Office/ Factory :	4^th Floor, A-402, Prince Diamond Apartment, Bambawadi, Katargam, Surat-395004, Gujarat, India
Tel. No.:	91-261-2537999
Mobile No.:	91-9033128621 (Mr. Gautam)
Fax No.:	91-9825545591
E-Mail :	suhagiyagautam@yahoo.in
Area :	Owned
Location :	Commercial

PARTNERS

Name :	Mr. Parvinbhai Koshiya
Designation :	Partner
Date of Birth/Age :	48 Years
Qualification :	SSC
Experience :	45 Years
Name :	Mr. Alpeshbhai Koshiya
Designation :	Partner
Date of Birth/Age :	40 Years
Qualification :	HSC
Experience :	30 Years
Name :	Mrs. Arunaben Koshiya
Designation :	Partner
Date of Birth/Age :	43 Years
Qualification :	SSC
Name :	Ms. Jagruti Koshiya
Designation :	Partner
Date of Birth/Age :	38 Years
Qualification :	B.com

KEY EXECUTIVES

Name :	Mr. Gautam
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Processor and Trader of Rough and Polished Diamond
Products :	Rough and Polished Diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Ruff Diamond
Countries :	· Belgium · Dubai
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Simplex Claim NN – Antwerp. Belgium
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 :

Retailers and End Users

Reference :

Pari Impex

Name of the Person :

Mr. Pankaj (Partner)

Contact No.:

91-261-2530026

Since How Long Known :

5 Years

Maximum Limit Dealt :

--

Experience :

Product Quality	Delivery Behaviour	Overall
Excellent	Good	Excellent

Remark:

Mr. Pankaj gave positive response about subject company in product quality and delivery behavior

No. of Employees :

70 (Approximately)

Bankers :

Banker Name	Axis Bank Limited
Branch Address	Katargam (Branch), Surat
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)	Current Account Only
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	Tejas Shah and Company Chartered Accountants
Address :	Maider Pura, Surat - 395003, Gujarat, India
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Capital Investment :
Owned :	Rs.5.323 Million
Borrowed :	--
Total :	Rs.5.323 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		5.323	4.543
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		5.323	4.543
LOAN FUNDS
1] Secured Loans		3.021	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		3.021	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		8.344	4.543
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.785	30.501
	Sundry Debtors	6.422	2.100
	Cash & Bank Balances	0.302	0.071
	Other Current Assets	0.000	0.000
	Loans & Advances	0.000	0.000
Total Current Assets		34.509	32.672
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000
	Other Current Liabilities	25.851	27.939
	Provisions	0.314	0.190
Total Current Liabilities		26.165	28.129
Net Current Assets		8.344	4.543
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		8.344	4.543

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	84.614	29.865
	Other Income	0.000	0.811
	TOTAL	84.614	30.676
Less	EXPENSES
	Cost of Goods Sold	72.491	25.775
	Direct expense	8.067	3.397
	Selling and Distribution expense	0.017	0.000
	Indirect expense	3.641	1.428
	TOTAL	84.216	30.600
	NET PROFIT	0.398	0.076

Particulars	31.03.2015
Sales Turnover (Approximately)	85.000

Expected Sales (2015-2016): Rs.90.000 Million

The above information has been parted by Mr. Gautam (Accountant).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Return on Total Assets (PBT/Total Assets}	(%)	1.15	0.023
Return on Investment (ROI) (PBT/Networth)		0.07	0.02
Debt Equity Ratio (Total Debt /Networth)		0.57	0.00
Current Ratio (Current Asset/Current Liability)		1.32	1.16

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	4.543	5.323
Reserves & Surplus	0.000	0.000
Net worth	4.543	5.323
long-term borrowings	0.000	3.021
Short term borrowings	0.000	0.000
Total borrowings	0.000	3.021
Debt/Equity ratio	0.000	0.568

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	29.865	84.614	85.000
		183.322	0.456

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	29.865	84.614
Profit	0.076	0.398
	0.25%	0.47%

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 two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
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

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.64.97
UK Pound	1	Rs.100.55
Euro	1	Rs.73.99

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	HEE
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.