MIRA INFORM REPORT

Report No. :	347345
Report Date :	31.10.2015

IDENTIFICATION DETAILS

Name :	RAGHUNANDAN IMPEX
Registered Office :	C-4, 3rd Floor, Bardoliya Plot, Gotalawadi Katargam Road, Surat – 395004, Gujarat
Tel. No.:	91-261-2532711
Country :	India
Financials (as on) :	31.03.2015
Date of Establishment :	01.02.2011
Capital Investment :	Rs. 8.615 Million
IEC No.:	5210041239
TAN No.: [Tax Deduction & Collection Account No.]	SRTR05386D
PAN No.: [Permanent Account No.]	AAMFR8559H
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer and Importer of Rough Diamonds.
No. of Employees :	60 (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 is an established partnership concern started in the year 2011 having moderate track record. Subject is engaged in the business as a manufacturer and importer of rough diamonds. The concern has shown significant growth in its turnover and profit during FY2014. However, the rating is constrained by low profit margins, susceptibility to volatile diamond prices and strong competition from the organized as well as unorganized player in the industry. Further, the rating also takes into consideration concern’s small track of business operations. Their trade relations are reported as fair. Business is active. Payments are slow but correct. 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

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. Mihir Gabani
Designation :	Business Development Manager
Contact No.:	91-9537170550
Date :	30.10.2015

LOCATIONS

Registered Office :	C-4, 3rd Floor, Bardoliya Plot, Gotalawadi Katargam Road, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2532711
Mobile No.:	91-9537170550 [Mr. Mihir Gabani]
Fax No.:	Not Available
E-Mail :	raghunandanexports@live.in mihirgabani@gmail.com
Website :	http://raghunandanexports.wix.com
Area :	600 Sq. ft.
Location :	Owned
Locality :	Commercial
Factory :	Raghuvir Complex, 7, 3^rd and 4^th Floor, Bardoliya Plot, Gotalawadi Katargam Road, Surat – 395004, Gujarat, India
Area :	1500 Sq. ft.
Location :	Owned
Locality :	Industrial

PARTNERS

Name :	Mr. Vallabhbhai G. Gabani
Designation :	Partner
Date of Birth/Age :	08.02.1970
Name :	Mr. Nareshbhai G Gabani
Designation :	Partner
Date of Birth/Age :	30.04.1976
Name :	Mr. Naranbhai G Gabani
Designation :	Partner
Date of Birth/Age :	03.04.1965
Name :	Mr. Dharmesh D. Patel
Designation :	Partner
Date of Birth/Age :	26.11.1984
Name :	Mr. Dhanjibhai G. Patel
Designation :	Partner
Date of Birth/Age :	08.09.1959
Name :	Mr. Sandeep V Patel
Designation :	Partner
Date of Birth/Age :	17.07.1984

KEY EXECUTIVES

Name :	Mr. Mihir Gabani
Designation :	Business Development Manager

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of Rough Diamonds.
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :
Products :	Rough Diamonds
Countries :	Belgium
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference:	Chintan Gems, Belgium
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers, Retailers and End Users

Reference:	B.G. Star
Name of the Person (Designation):	Mr. Bharat [Partner]
Contact Number:	91-9374712563
Since how long known:	3 Years
Maximum limit dealt:	Not Divulged
Experience:	Product Quality = Good Delivery Behaviour = Good Overall = Good
Remark	They gave us positive response about subject company. They are satisfied with their product quality and delivery behaviour.

No. of Employees :

60 (Approximately)

Bankers :

Bank Name:	Axis Bank Limited
Branch:	Digvijay Tower, Opposite St. Xaviers School, Ghod Dod Road, Surat – 395001, Gujarat, India
Person Name (with Designation):	Mr. Kaushal [Manager]
Contact Number:	91-9998690539
Name of Account Holder:	Raghunandan Impex
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	8 Years
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Satisfactory
Remarks: Banker gave us positive response about subject company they are satisfied with their banking transaction.

Auditors :
Name :	AAP and Company Chartered Accountants
Address :	L16-17, Agrasen Point, Opposite Maharaja Arcade, Citi Light, Surat, Gujarat, India
Mobile No.:	91-9825977566
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital Investment :
Owned :	Rs. 8.615 Million
Borrowed :	--
Total :	Rs. 8.615 Million

FINANCIAL DATA

[all figures are in Rupees Million]

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		8.615	4.758	3.836
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.576	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.615	5.334	3.836
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		5.910	4.792	4.325
TOTAL BORROWING		5.910	4.792	4.325
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		14.525	10.126	8.161
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.675	0.794	0.284
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.045	0.045	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	68.263	37.518	23.170
	Sundry Debtors	0.000	1.966	0.000
	Cash & Bank Balances	1.511	0.887	1.498
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.183	0.178	0.000
Total Current Assets		69.957	40.549	24.668
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	54.338	30.072	15.808
	Provisions	1.814	1.190	0.983
Total Current Liabilities		56.152	31.262	16.791
Net Current Assets		13.805	9.287	7.877
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14.525	10.126	8.161

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Sales	128.080	90.251	63.197
		Other Income	0.004	0.634	0.336
		TOTAL	128.084	90.885	63.533
Less	EXPENSES
		Cost of Goods sold	103.500	72.208	50.007
		Material and Traders Expenses	0.186	0.290	0.289
		Power and Fuel Expenses	0.996	0.841	0.859
		Salary and Wages Factory	12.595	9.546	6.714
		Soing ad Curfing Labour Expenses	0.994	0.840	0.795
		Cust. Clearing and for Expenses	0.106	0.061	0.055
		Donation	0.116	0.000	0.000
		Interest to Partner	0.360	0.400	0.361
		Interest on Loan	0.575	0.519	0.239
		Remuneration to Partners	1.200	0.860	0.747
		Salary and Wages office	3.902	3.719	2.195
		Saran Manjai Expenses	0.169	0.145	0.154
		Travelling Expenses	0.560	0.375	0.491
		Other Expenses	1.958	0.371	0.180
		TOTAL	127.217	90.175	63.086
	PROFIT BEFORE DEPRECIATION AND AMORTISATION		0.867	0.710	0.447
Less/ Add	DEPRECIATION/ AMORTISATION		0.119	0.132	0.043
	NET PROFIT		0.748	0.578	0.404

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.58	0.64	0.64
Return on Total Assets (PBT/Total Assets}	(%)	1.06	1.40	1.62
Return on Investment (ROI) (PBT/Networth)		0.09	0.11	0.11
Debt Equity Ratio (Total Liability/Networth)		0.69	0.90	1.13
Current Ratio (Current Asset/Current Liability)		1.25	1.30	1.47

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)
Partners Capital	3.836	4.758	8.615
Reserves & Surplus	0.000	0.576	0.000
Net worth	3.836	5.334	8.615
Secured Loans	0.000	0.000	0.000
Unsecured Loans	4.325	4.792	5.910
Total borrowings	4.325	4.792	5.910
Debt/Equity ratio	1.127	0.898	0.686

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	63.197	90.251	128.080
		42.809	41.915

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	63.197	90.251	128.080
Net Profit	0.404	0.578	0.748
	0.64%	0.64%	0.58%

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	No
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	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	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 65.22
UK Pound	1	Rs. 99.93
Euro	1	Rs. 71.67

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	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	NO
--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.