MIRA INFORM REPORT

Report No. :	501243
Report Date :	06.04.2018

IDENTIFICATION DETAILS

Name :	PREM CORPORATION
Registered Office :	AW-6170-6180, A Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Tel. No.:	91-22-23617126, 23631486
Country :	India
Financials (as on) :	31.03.2018 (Turnover Figure) 31.03.2017 (Detailed Financial)
Date of Establishment :	01.04.1999
Capital Investment / Paid-up Capital :	INR 40.687 Million (As on 31.03.2017)
IEC No.: [Import-Export Code No.]	0388209381
PAN No.: [Permanent Account No.]	AADFP5228Q
GSTN : [Goods & Service Tax Registration No.]	27AADFP5228Q1ZP
Com. Reg No.:	MU000003710
TIN No.:	Not Divulged
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Processor, Manufacturer, Trader and Exporter of Diamond (Manufacturing done through job work) and Importer of rough diamond. (Confirmed by management)
No. of Employees :	12 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 1992 as a Proprietorship concern and later it got converted in to Partnership Firm in the year 1999. It is a processor, manufacturer, trader and exporter of diamond (manufacturing done through job work) and importer of rough diamond. Mr. Amit Desai (Accountant) has provided information about the subject and has claimed that the firm achieved sales turnover of INR 230.000 million for the FY 2018 (Which could not be verified). As per the available financial of 2017, the firm has achieved decent sales turnover which has improved as compared to previous year along with average profit margin. The satisfactory financial profile of the firm is marked by acceptable capital base along with negligible debt level. The rating takes into consideration long established track record of the firm. However, these rating strengths are partially offset by stretched working capital cycle and presence in a highly fragmented and competitive Diamond industry. Business is active. Payment seems to be slow but correct. In view of aforesaid, the firm can be considered for business dealings at usual trade terms and conditions. Note: Earlier when we had prepared report we had erroneously mentioned that Mr. Revjibhai Vimania is a partner but the management has confirmed that the correct name of the partner is Mr. Premjibhai Vastabhai Mania and also claimed that no partner with the name of Mr. Revjibhai Vimania existed in the firm. Further, we had erroneously mentioned that Mr. Ashwin Vimania is the partner but the correct name is Mr. Ashwin Premjibhai Mania.

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 06.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Ashwin Premjibhai Mania
Designation :	Partner
Contact No.:	91-9920963802
Name :	Mr. Amit Desai
Designation :	Accountant
Contact No.:	91-9820332024
Date :	04.04.2018

LOCATIONS

Registered Office :	AW-6170-6180, A Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-23617126, 23631486
Mobile No.:	91-9920963802 (Mr. Ashwin Premjibhai Mania) 91-9820332024 (Mr. Amit Desai)
Fax No.:	91-22-23636341
E-Mail :	premcorporation@yahoo.in
Area :	625 sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Ashwin Premjibhai Mania
Designation :	Partner
Address :	601, Padmanabh Apartment, N.S. Road, No.8, JVPD Scheme, Plot No.43, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Date of Birth/ Age:	17.10.1978
Qualification :	S.YJ.C
Experience :	18 Years
Name :	Mr. Premjibhai Vastabhai Mania
Designation :	Partner
Address :	601, Padmanabh Apartment, N.S. Road, No.8, JVPD Scheme, Plot No.43, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Date of Birth/ Age:	16.10.1953
Qualification :	S.S.C
Experience :	40 Years

KEY EXECUTIVE

Name :	Mr. Amit Desai
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Processor, Manufacturer, Trader and Exporter of Diamond (Manufacturing done through job work) and Importer of rough diamond. (Confirmed by management)
Products :	Diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :
Products :	Rough Diamonds
Countries :	Antwerp – Belgium
Terms :
Selling :	Credit (30 / 60 / 90 /120 Days)
Purchasing :	Credit (30 / 60 / 90 /120 Days)

GENERAL INFORMATION

Suppliers :

• Switnu Diam BVBA
• Diarough N V

Customers :

Wholesalers, Retailers

• Vishindas Holaram
• D. Nitin and Company

No. of Employees :

12 (Approximately)

Bankers :

Banker Name :	IndusInd Bank Limited
Branch :	BKC Branch, Bharat Diamond Bourse, Bandra (East), Mumbai – 400051, Maharashtra, India
Person Name (With Designation) :	--
Contact Number :	91-22-33923940 (Ringing)
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	No Credit limit (Current Account)
Account Operation :	--
Remark :	--

Auditors :
Name :	Ramesh Rajni and Company LLP Chartered Accountants
Address :	Purshottam Building, 1^st Floor, 450, Lamington Road, Opera House, Mumbai – 400004, Maharashtra, India
Tel No.:	91-22-62847171/67708916
Email:	ramrajnco@gmail.com
Membership No.:	48458
Collaborators :	Not Available
Membership :	Not Available
Sister Concern :	--

CAPITAL STRUCTURE

AS ON 31.03.2017

Capital Investment :
Owned :	INR 40.687 Million
Borrowed :	--
Total :	INR 40.687 Million

FINANCIAL DATA

[all figures are INR Million]

Particulars	31.03.2018
Sales Turnover (Approximately)	230.000

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

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017	31.03.2016
EQUITY AND LIABILITIES
1] Partner’s Capital		40.687	11.591
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		40.687	11.591
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		16.016	0.920
TOTAL BORROWING		16.016	0.920
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		56.703	12.511
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.446	4.949
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	117.043	45.164
	Sundry Debtors	18.471	3.257
	Cash & Bank Balances	0.788	37.982
	Other Current Assets	0.000	0.000
	Loans & Advances	0.754	0.741
Total Current Assets		137.056	87.144
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	84.719	79.428
	Other Current Liabilities	0.000	0.000
	Provisions	0.080	0.154
Total Current Liabilities		84.799	79.582
Net Current Assets		52.257	7.562
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		56.703	12.511

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	199.518	182.230
	Other Income	0.000	0.008
	TOTAL	199.518	182.238
Less	EXPENSES
	Cost of good sold	100.311	129.075
	Manufacturing charges	84.506	39.644
	Audit Fees	0.070	0.075
	Bank Commission	0.069	0.037
	Conveyance Expenses	0.048	0.048
	Electricity Expenses	0.149	0.154
	Export Commission	0.981	0.909
	Export Clearing Charges	0.011	0.033
	Foreign Travelling	0.115	0.000
	Import clearing charges	0.113	0.062
	Late payment TDS Interest	0.000	0.000
	Membership Fees	0.081	0.025
	Office Maintenance	0.147	0.169
	Office Expenses	0.161	0.175
	Professional Fees	0.045	0.048
	Printing and Stationary	0.002	0.000
	Salary	1.677	1.931
	Shop and Establishment Expenses	0.001	0.000
	telephone Expenses	0.034	0.032
	Remuneration to partners	2.400	2.400
	Jewellers block insurance policy	0.067	0.086
	Income Tax	2.350	2.091
	TOTAL	193.338	176.994
	PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION AND AMORTISATION	6.180	5.244
Less	FINANCIAL EXPENSES	0.517	0.034
	PROFIT / (LOSS) BEFORE, DEPRECIATION AND AMORTISATION	5.663	5.210
Less/ Add	DEPRECIATION/ AMORTISATION	0.503	0.561
	NET PROFIT/ (LOSS)	5.160	4.649

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Average Collection Days (Sundry Debtors / Income * 365 Days)	33.79	6.52
Account Receivables Turnover (Income / Sundry Debtors)	10.80	55.95
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	308.27	224.61
Inventory Turnover (Operating Income / Inventories)	0.05	0.12
Asset Turnover (Operating Income / Net Fixed Assets)	1.39	1.06

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.71	0.87
Debt Equity Ratio (Total Liability / Networth)	0.39	0.08
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.48	6.95
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.11	0.43
Interest Coverage Ratio (PBIT / Financial Charges)	11.95	154.24

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016
Net Profit Margin ((PAT / Sales) * 100)	%	2.59	2.55
Return on Total Assets ((PAT / Total Assets) * 100)	%	3.65	5.05
Return on Investment (ROI) ((PAT / Networth) * 100)	%	12.68	40.11

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Current Ratio (Current Assets / Current Liabilities)	1.36	1.08
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.20	0.52
G-Score Ratio Financial (Networth / Total Assets)	0.29	0.13
G-Score Ratio Debt (Debts / Equity Capital)	0.39	0.08
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.36	1.08

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2016	31.03.2017
	INR In Million	INR In Million
Partner’s Capital	11.591	40.687
Reserves & Surplus	0.000	0.000
Net worth	11.591	40.687
Secured Loan	0.000	0.000
Unsecured Loan	0.920	16.016
Total borrowings	0.920	16.016
Debt/Equity ratio	0.079	0.394

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	182.230	199.518
		9.487

NET PROFIT MARGIN

Net Profit Margin	31.03.2016	31.03.2017
	INR In Million	INR In Million
Sales	182.230	199.518
Profit	4.649	5.160
	2.55%	2.59%

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	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	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	No
26	Turnover of firm for last two 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 records 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	INR
US Dollar	1	INR 65.06
UK Pound	1	INR 92.06
Euro	1	INR 80.37

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	VAR
Report Prepared by :	RKI

SCORE FACTORS

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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.