MIRA INFORM REPORT

Report No. :	342088
Report Date :	22.09.2015

IDENTIFICATION DETAILS

Name :	JANANI EXPORTS
Registered Office :	704, Vastushilp Apartments, Pump House, Near Parsi Colony, Andheri (East), Mumbai – 400093, Maharashtra
Tel. No.:	91-22-23676772
Country :	India
Financials (as on) :	31.03.2015
Date of Establishment :	01.04.2004
Capital Investment :	Rs. 124.180 Million
IEC No.:	0302029362
PAN No.: [Permanent Account No.]	AAEFJ3969P
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
No. of Employees :	1002 (03 in Office, 950 in Factory and 49 in Branch) (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

Maximum Credit Limit :	USD 354800
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 2004 as partnership concern and it is the manufacturer, importer and exporter of cut and polished diamonds. It has moderate track record. Mr. Chirag V. Savani (Partner) has provided all information of the subject to us. Rating takes into consideration concern’s modest scale of operations, low profitability margins and moderate working capital cycle during the year 2015. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of experienced promoters, 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	CARE
Rating	Long term Bank facilities = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	September 14, 2015

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. Vipul
Designation :	Accounts Manager
Contact No.:	91-8600347977
Date :	21.09.2015

LOCATIONS

Registered Office :	704, Vastushilp Apartments, Pump House, Near Parsi Colony, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-23676772
Mobile No.:	91-9820321217 (Mr. Chirag V. Savani) 91-8600347977 (Mr. Vipul)
Fax No.:	91-22-26756772
E-Mail :	chiragjanani@gmail.com
Location :	Owned
Branch Office/ Factory :	R.S. No.408, Plot No. 06 to 09, Bambawadi, Near Shaym Marble, Katargam Road, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2538001
Fax No.:	91-261-2538002
E-Mail :	janani4239@gmail.com
Location :	Owned

PARTNERS

Name :	Mr. Chirag V. Savani
Designation :	Partner
Address :	A/5, Rajdeep Nagar-1, Singanpor Char Rasta, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	25.05.1985
Qualification :	Graduate
Experience :	05 Years
Name :	Mr. Babubhai T. Savani
Designation :	Partner
Address :	A-19, Akshardeep Society, Singapor Char Rasta, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	17.12.1958
Experience :	15 Years
Name :	Mr. Popatbhai T. Savani
Designation :	Partner
Address :	35/36, Narayanmuni Society, Near Swami Narayan Gurukul, Ved Gam, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	23.08.1955
Experience :	15 Years
Name :	Mr. Vashrambhai T. Savani
Designation :	Partner
Address :	A/5, Rajdeep Nagar-1, Singanpor Char Rasta, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	08.05.1962
Experience :	15 Years
Name :	Mr. Nitin P. Savani
Designation :	Partner
Address :	35/36, Narayanmuni Society, Near Swami Narayan Gurukul, Ved Gam, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	24.04.1985
Experience :	10 Years
Name :	Mr. Naresh B. Savani
Designation :	Partner
Address :	A-19, Akshardeep Society, Singapor Char Rasta, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	23.11.1984
Experience :	05 Years
Name :	Mr. Nikunj V. Savani
Designation :	Partner
Address :	A/5, Rajdeepnagar Society-1, Singapor Char Rasta, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	11.05.1990
Experience :	05 Years
Name :	Mrs. Asmita J. Savani
Designation :	Partner
Address :	35/36, Narayanmuni Society, Near Swami Narayan Gurukul, Ved Gam, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	03.10.1980
Experience :	01 Year

KEY EXECUTIVES

Name :	Mr. Vipul
Designation :	Accounts Manager

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Cut and Polished Diamonds.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Cut and Polished Diamonds
Countries :	· Hong Kong · Belgium · New York
References :	· Smart Diam · S and S International · Sparkling Jewellery Inc · Hi Star Limited
Imports :
Products :	Rough Diamonds
Countries :	Belgium
References :	· Gemasia B.V.B.A · Pluczenik Diamond Co. NV · Arjav Diamonds · S. V. Gems
Terms :
Selling :	Credit [90 Days and 120 Days]
Purchasing :	Credit [60 Days and 90 Days]

PRODUCTION DETAILS:

Products	Installed Capacity	Actual Production
Processing of Rough Diamonds to High Valued Cut & Polished Diamonds	50,000.00 Carats	40,000.00 Carats

GENERAL INFORMATION

Suppliers :

Reference:	Arjav Diamonds, Antwerp, 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 and Retailers

Reference:	Royal Impex DE-8085A, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India
Name of the Person (Designation):	Mr. Girish Patwa (Senior Accountant)
Contact Number:	91-22-40035888
Since how long known:	10 Years
Maximum limit dealt:	Rs. 50.000 Million to 60.000 Million Yearly
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.

· Manav Gems

The Capital, 910, 9th Floor, C-70, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

· Bhavya Gems

EW-5120, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India

· Vikas Gems

HW-1090, Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India

No. of Employees :

1002 (03 in Office, 950 in Factory and 49 in Branch) (Approximately)

Bankers :

Bank Name:	Bank of India
Branch:	Mama Parmanand Road, Opera House, Mumbai – 400004, Maharashtra, India
Person Name (with Designation):	Mr. B.S. Mane (Relationship Manager)
Contact Number:	91-22-23694891
Name of Account Holder:	Janani Exports
Account Number:	--
Account Since (Date/ Year of A/c Opening):	2012
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	Credit Limit: Rs. 100.000 Million
Account Operation:	Satisfactory
Remarks: They gave us positive response about subject company. They are satisfied with their Banking transaction.

Facilities :

Credit Limit: Rs. 100.000 Million

Auditors :
Name :	Tejas R. Shah Chartered Accountant
Address :	101/104, Rajshree Apartments, Opposite Lalji Mandir, Maniyara Sheri, Mahidharpura, Surat - 395003, Gujarat, India
Tel. No.:	91-261-2608910
E-Mail :	catejasshah@yahoo.co.in
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital Investment :
Owned :	Rs. 124.180 Million
Borrowed :	--
Total :	Rs. 124.180 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		124.180	125.699	95.968
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		124.180	125.699	95.968
LOAN FUNDS
1] Secured Loans		124.765	74.716	48.666
2] Unsecured Loans		24.354	10.068	3.433
TOTAL BORROWING		149.119	84.784	52.099
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		273.299	210.483	148.067
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.374	27.611	25.910
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.819	1.847	1.707
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	224.212	117.332	157.771
	Sundry Debtors	352.424	224.709	104.473
	Cash & Bank Balances	5.922	0.364	0.852
	Other Current Assets	0.219	0.280	0.019
	Loans & Advances	16.010	10.229	4.058
Total Current Assets		598.787	352.914	267.173
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	359.505	167.942	145.457
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.176	3.947	1.266
Total Current Liabilities		361.681	171.889	146.723
Net Current Assets		237.106	181.025	120.450
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		273.299	210.483	148.067

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	1036.869	928.847	668.888
		Other Income	0.673	0.505	0.448
		TOTAL	1037.542	929.352	669.336
Less	EXPENSES
		Cost of Goods sold`	919.715	825.840	583.310
		Direct Expenses	69.477	60.125	53.560
		Administrative Expenses	29.945	27.801	19.514
		TOTAL	1019.137	913.766	656.384
	PROFIT BEFORE INTEREST		18.405	15.586	12.952
Less	FINANCIAL EXPENSES		5.274	4.344	3.807
	NET PROFIT		13.131	11.242	9.145

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.27	1.21	1.37
Return on Total Assets (PBT/Total Assets}	(%)	2.10	2.95	3.12
Return on Investment (ROI) (PBT/Networth)		0.11	0.09	0.10
Debt Equity Ratio (Total Liability/Networth)		1.20	0.67	0.54
Current Ratio (Current Asset/Current Liability)		1.66	2.05	1.82

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

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	95.968	125.699	124.180
Reserves & Surplus	0.000	0.000	0.000
Net worth	95.968	125.699	124.180
Secured Loans	48.666	74.716	124.765
Unsecured Loans	3.433	10.068	24.354
Total borrowings	52.099	84.784	149.119
Debt/Equity ratio	0.543	0.675	1.201

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	668.888	928.847	1036.869
		38.864	11.630

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	668.888	928.847	1036.869
Net Profit	9.145	11.242	13.131
	1.37%	1.21%	1.27%

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	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	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
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. 65.75
UK Pound	1	Rs. 102.17
Euro	1	Rs. 74.38

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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		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.