MIRA INFORM REPORT

Report No. :	340415
Report Date :	12.09.2015

IDENTIFICATION DETAILS

Name :	J V EXPORTS
Registered Office :	DC-8030, D Centre, Bharat Diamond Bourse, B.K.C., Bandra (East), Mumbai – 400057, Maharashtra
Tel. No.:	91-22-42646630
Country :	India
Financials (as on) :	31.03.2015
Year of establishment :	1997
Capital Investment / Paid-up Capital :	Rs.84.325 Million
IEC No.:	0396075452
TIN No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAFJ4642D
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter, Importer of Cut and Polished diamond.
No. of Employees :	1015 (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 was established in the year 1997 as a partnership concern and it is having satisfactory track record. Mr. Vinay, Accounts Manager of the concern has provided the information to us. The concern shown healthy operational base backed by its established track record and sound experience of the partners. Trade relations are fair. Business is active. Payments are reported to be usually correct. In a view aforesaid, the concern can be considered for the business dealings at usual 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. Vinay
Designation :	Accounts Manager
Contact No.:	91-22-42646630
Date :	09.09.2015

LOCATIONS

Registered Office :	DC-8030, D Centre, Bharat Diamond Bourse, B.K.C., Bandra (East), Mumbai – 400057, Maharashtra, India
Tel. No.:	91-22-42646630
Fax No.:	91-22-23638160
E-Mail :	Jv_exports@yahoo.com
Area :	314 Sq ft
Location :	Owned
Locality:	Commercial
Factory :	304/305, Hira-Panna Market, Katargaon Varachhan Raod, Surat – 395001, Gujarat, India
Area :	600 Sq ft
Location :	Owned
Branch Office :	26/A, Pratik Archid , Opera House, Mumbai – 400004, Maharashtra, India
Area :	80 Sq ft
Location :	Owned

PARTNERS

Name :	Mr. Vaghgibhai K Vadsak
Designation :	Partner
Name :	Mr. Arvindbhai K Vadsak
Designation :	Partner
Name :	Mr. Vitthal K Vadsak
Designation :	Partner
Name :	Mr. Jaisukh K Vadsak
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Vinay
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter, Importer of Cut and Polished diamond.
Products :	Cut and Polished diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Diamond
Countries :	USA Belgium Hong Kong Dubai
Imports :
Products :	Diamond
Countries :	Belgium
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Arjun Diamond
Name of the Person :	Antwerp Branch, Belgium
Contact No.:	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 :	C M Diamond
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 :

10 (Approximately)

Bankers :

Banker Name	Central Bank of India
Branch Address	B D B Branch BKC Bandra (East), Mumbai, Maharashtra, India
Person Name (With Designation)	Mr. Adil (Manager)
Contact Number	91-22-40234407
Name of Account Holder	J V EXPORTS
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	2009
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	PCFC: Rs. 30.000 Million EBRD Rs. 30.000 Million
Account Operation	Good
Remarks (If any)	Banker gave us positive response about subject company they are satisfied with their banking transaction.

Auditors :
Name :	Ramesh Rajni and Company Chartered Accountants
Address :	Laxmi Tower, Bandra (East), Mumbai, Maharashtra, India
Memberships :	--
Collaborators :	--
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital Investment :
Owned :	Rs.84.325 Million
Borrowed :
Total :	Rs.84.325 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		84.325	84.313	63.735
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		84.325	84.313	63.735
LOAN FUNDS
1] Secured Loans		58.077	9.363	61.432
2] Unsecured Loans		6.050	4.725	2.425
TOTAL BORROWING		64.127	14.088	63.857
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		148.452	98.401	127.592
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.211	29.499	28.572
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.139	0.139	0.262
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	239.278	197.170	249.098
	Sundry Debtors	88.715	71.624	55.613
	Cash & Bank Balances	2.124	3.038	2.062
	Other Current Assets	0.884	0.715	0.579
	Loans & Advances, Deposits	0.862	1.400	1.742
Total Current Assets		331.863	273.947	309.094
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	244.685	203.330	209.889
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.076	1.854	0.447
Total Current Liabilities		244.761	205.184	210.336
Net Current Assets		87.102	68.763	98.758
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		148.452	98.401	127.592

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	899.551	776.575	614.350
	Other Income	2.590	0.117	0.165
	TOTAL	902.141	776.692	614.515
Less	EXPENSES
	Cost of Goods Sold	784.070	691.579	529.117
	Manufacturing Expenses	72.059	46.118	49.966
	Sales and Administrative Expenses	26.879	16.569	17.577
	Salary to partners	4.400	4.400	3.400
	Bank Interest	1.773	1.877	2.684
	Income Tax	3.047	4.077	2.669
	Prior Period Expenses	0.000	0.002	0.000
	Deferred Tax Expense/ (Income)	0.000	0.123	(0.292)
	TOTAL	892.228	764.745	605.121
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	9.913	11.947	9.394
Less/ Add	DEPRECIATION/ AMORTISATION (	8.117	4.315	3.082
	NET PROFIT	1.796	7.632	6.312

Expected Sales (2015-2016) : Rs.750.000 Million

The above information has been parted by Mr. Vinay

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

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.20	0.98	1.03
Return on Total Assets (PBT/Total Assets}	(%)	0.46	2.52	1.87
Return on Investment (ROI) (PBT/Networth)		0.02	0.09	0.10
Debt Equity Ratio (Total Debt /Networth)		0.76	0.17	1.00
Current Ratio (Current Asset/Current Liability)		1.32	1.31	1.45

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	63.735	84.313	84.325
Reserves & Surplus	0.000	0.000	0.000
Net worth	63.735	84.313	84.325
Secured Loans	61.432	9.363	58.077
Unsecured Loans	2.425	4.725	6.050
Total borrowings	63.857	14.088	64.127
Debt/Equity ratio	1.002	0.167	0.760

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	614.350	776.575	899.551
		26.406	15.836

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	614.350	776.575	899.551
Profit	6.312	7.632	1.796
	1.03%	0.98%	0.20%

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	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)	No
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	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	No
25	Last accounts filed at ROC, if applicable	No
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	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 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.

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.66.39
UK Pound	1	Rs.102.59
Euro	1	Rs.74.90

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAS
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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.