MIRA INFORM REPORT

Report No. :	347390
Report Date :	30.10.2015

IDENTIFICATION DETAILS

Name :	KHUSHBOO DIAMOND PRIVATE LIMITED
Registered Office :	228, Panchratna, Opera House, Mumbai – 400 004, Maharashtra
Tel. No.:	91-22-23690281
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	24.09.2007
Com. Reg. No.:	11-174434
Capital Investment / Paid-up Capital :	Rs.0.200 million
CIN No.: [Company Identification No.]	U52393MH2007PTC174434
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMK17502C
PAN No.: [Permanent Account No.]	AADCK1753G
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Diamonds.
No. of Employees :	8 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 2007 and it is a trader and importer of diamonds. It is a small company in its field and its scale of activities are limited. Rating is constrained on account of company’s small scale of business operations and small net worth of the company. However, trade relations are reported to be fair. Business is active. Payment terms are slow but correct. The company can be considered for small 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. Nemichand Mohanlal Kawadia
Designation :	Director
Contact No.:	91-9833742801
Date :	26.10.2015

LOCATIONS

Registered Office :	228, Panchratna, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23690281
Mobile No.:	91-9833742801 (Mr. Nemichand Mohanlal Kawadia)
Fax No.:	91-22-66352688
E-Mail :	kushalexports@yahoo.com mah_anita@yahoo.co.in sbazari2003@yahoo.co.in khushboo_dpl@yahoo.com
Head Office :	H. No.6-1946 - B, Office 103, Dalgiya Street, Mahidharpura, Surat – 395 003, Gujarat, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Nemichand Mohanlal Kawadia

Designation :

Director

Address :

Room No.206, B-Wing, New Ostwal Tower, Jasal Partk, Bhayander (East), Thane – 401 105, Maharashtra, India

Date of Birth/Age :

17.02.1972

Date of Appointment :

24.09.2007

PAN No.:

ADGPK1767R

DIN No.:

01590807

Name :

Mr. Mukesh Kumar Gokhroo

Designation :

Director

Address :

703, Radhav Madhav Building, Near Veg Sagar Hotel, Opposite Flyover, Bhayander (West), Thane – 401 105, Maharashtra, India

Date of Birth/Age :

28.02.1985

Date of Appointment :

18.08.2014

DIN No.:

06468742

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36912GJ2013PTC075001	SHRENIK DIAMOND PRIVATE LIMITED	Director	10/05/2013	10/05/2013	-	Active	NO
2	U52393MH2007PTC174434	KHUSHBOO DIAMOND PRIVATE LIMITED	Director	18/08/2014	18/08/2014	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of holding
Nemichand Mohanlal Kawadia	10000	50.00
Ashokkumar Hastimal Kothari	10000	50.00
Total	20000	100.00

AS ON 30.09.2014

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Diamonds.

Products :

Item Code No. (ITC Code)	Product Description
71023910	Polished Diamond
71022990	Rough Diamond

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Diamonds

Countries :

• Hong Kong
• Dubai
• Antwerp

Imports :

Products :

Diamonds

Countries :

• Belgium

Terms :

Selling :

Cheque and Credit

Purchasing :

Cheque and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

8 (Approximately)

Bankers :

Bank Name	IndusInd Bank Limited
Branch	Bandra Kurla Complex, Diamond Bourse Complex, Bandra (East), Mumbai - 400051 Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	P. Jagetia and Company Chartered Accountants
Address :	508, 21^st Century business Centre, Near Udhna Darwaja, Darwaja, Ring Road Surat – 395 002, Gujarat, India
PAN No.:	ACQPJ6105R
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.0.200 Million

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.10/- each	Rs.0.200 million

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	0.200	0.200	0.100
(b) Reserves & Surplus	4.349	3.405	2.296
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.100
Total Shareholders’ Funds (1) + (2)	4.549	3.605	2.496
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.002	0.008
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.002	0.008
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	2898.574	2342.600	2741.898
(c) Other current liabilities	0.213	0.141	0.472
(d) Short-term provisions	1.114	0.756	0.546
Total Current Liabilities (4)	2899.901	2343.497	2742.916
TOTAL	2904.450	2347.104	2745.420
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.038	0.067	0.080
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.006	0.000	0.000
(d) Long-term Loan and Advances	141.834	203.014	209.923
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	141.878	203.081	210.003
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	206.627	67.978	73.916
(c) Trade receivables	2539.561	2062.963	2441.047
(d) Cash and cash equivalents	14.582	10.782	18.133
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	1.802	2.300	2.321
Total Current Assets	2762.572	2144.023	2535.417
TOTAL	2904.450	2347.104	2745.420

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	5437.366	4347.617	6548.206
	Other Income	10.441	16.508	12.720
	TOTAL (A)	5447.807	4364.125	6560.926
Less	EXPENSES
	Cost of Materials Consumed	0.000	0.000	0.000
	Purchases of Stock-in-Trade	5516.588	4257.167	6506.291
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(138.649)	5.938	(25.273)
	Employees benefits expense	2.482	2.297	3.678
	Other expenses	65.292	96.165	73.692
	TOTAL (B)	5445.713	4361.567	6558.388
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2.094	2.558	2.538
Less	FINANCIAL EXPENSES (D)	0.435	0.913	1.422
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1.659	1.645	1.116
Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.038	0.013	0.008
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1.621	1.632	1.108
Less	TAX (H)	0.520	0.523	0.424
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	1.101	1.109	0.684
	Earnings / (Loss) Per Share (Rs.)	NA	55.45	34.20

Expected Sales (2015-2016) : Rs.7000.000 Million

The above information has been parted by Mr. Nemichand Mohanlal Kawadia (Director)

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 operations	NA	NA	NA
Net cash flows from (used in) operations	NA	(29.260)	5.595
Net cash flow from operating activity	NA	(30.768)	(5.179)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.02	0.03	0.01
Operating Profit Margin (PBIDT/Sales)	(%)	0.04	0.06	0.04
Return on Total Assets (PBT/Total Assets}	(%)	0.06	0.07	0.04
Return on Investment (ROI) (PBT/Networth)		0.36	0.45	0.44
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		0.95	0.91	0.92

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	0.200	0.200
Reserves & Surplus	2.296	3.405	4.349
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.100	0.000	0.000
Net worth	2.496	3.605	4.549
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	6548.206	4347.617	5437.366
		(33.606)	25.065

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	6548.206	4347.617	5437.366
Profit	0.684	1.109	1.101
	0.01%	0.03%	0.02%

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	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	Yes
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	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	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

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 and 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.

INDEX OF CHARGES

No Charges Exist for Company.

FIXED ASSETS

• Office equipment
• Computer equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.15
UK Pound	1	Rs.99.36
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	HNA
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		28

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.