MIRA INFORM REPORT

Report No. :	488742
Report Date :	03.02.2018

IDENTIFICATION DETAILS

Name :	OZONE DIAMONDS PRIVATE LIMITED
Registered Office :	Plot No. 22-A, Patel Industrial Co-Operative Society Limited, Near HDFC Bank, Kishna Circle, Balashram, Katargam, Surat – 395004, Gujarat
Tel. No.:	91-261-2484101
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	24.11.2009
Com. Reg. No.:	04-058685
Capital Investment / Paid-up Capital :	INR 2.252 Million
CIN No.: [Company Identification No.]	U36912GJ2009PTC058685
IEC No.:	5209061663
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
GSTIN :	24AABCO2223R1ZD
PAN No.: [Permanent Account No.]	AABCO2223R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing including Jewellery, Musical Instruments, Medical Instruments, Sports Goods, etc. (Registered activity) Manufacturer, Exporter of Polished Diamonds and Importer of Rough Diamonds. (Registered activity and also Confirmed by management)
No. of Employees :	400 (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 incorporated in the year 2009 and it is having satisfactory track records. For the financial year 2017, the company has healthy increased in its revenue from operation but maintained minimal profitability margin of 0.98%. Rating takes into consideration sound financial profile of the company marked by adequate networth base and average debt balance sheet. Further, rating also derives strength form promoters’ experience of more than two decades in diamond market, long standing track records of business operation along with improvement in the revenue as well as profitability profile during the year. However, rating strength is partially offset by low profitability margin reported during the year and highly intense competitive diamond industry. Trade relations are reported as fair. Business is active. Payments are seems to be slow but correct. The company can be considered for business dealings at usual trade terms and condition.

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 (30.06.2017)	Current Rating (30.09.2017)
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	INDIA RATING
Rating	Long Term Rating = BB-
Rating Explanation	Moderate risk of default.
Date	06.02.2017

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 31-03-2016.

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 03.02.2018

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. Ghanshyam
Designation :	Accountant
Contact No.:	91-261-2484101
Date :	31.01.2018

LOCATIONS

Registered Office/ Factory :	Plot No. 22-A, Patel Industrial Co-Operative Society Limited, Near HDFC Bank, Kishna Circle, Balashram, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2484101
Mobile No.:	91-9820081443 (Mr. Ramesh Tulsibhai Bhalani)
Fax No.:	Not Available
E-Mail :	ozonediamonds@yahoo.com rameshbhalani71@gmail.com arvindbhalani67@gmail.com
Area :	8100 Sq. Ft
Location :	Owned
Locality :	Commercial
Branch Office	DC-4080, Bharat Diamond Bourse, G-Block, B.K.C., Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-33927505/ 33927506

DIRECTORS

As on 31.03.2017

Name :

Mr. Ramesh Tulsibhai Bhalani

Designation :

Managing director

Address :

27, Harinandan Society, Near Hirabaug, Varachha Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

18.10.1971

Date of Appointment :

04.03.2013

DIN No. :

00236328

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U36911MH2010PTC203954	VHN DIAMONDS PRIVATE LIMITED	09/06/2010	-
U80904MH2012NPL233740	THE GEM & JEWELLERY SKILL COUNCIL OF INDIA	29/09/2016	-

Name :

Mr. Arvind Tulsibhai Bhalani

Designation :

Whole-time director

Address :

27, Harinandan Society, Near Hirabaug, Varachha Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

01.04.1975

Date of Appointment :

04.03.2013

DIN No. :

02796916

Name :

Mr. Lavji Govindbhai Gujarati

Designation :

Managing director

Address :

71, Shivom Nagara, R. T. O. Road, Bhav Shaher, Bhavnagar – 364003, Gujarat, India

Date of Birth/Age :

15.01.1973

Date of Appointment :

04.03.2013

DIN No. :

02796921

Name :

Mr. Dineshbhai Govindbhai Gujarati

Designation :

Whole-time director

Address :

Plot-G/2, Old-37, Ground Floor, R.S.37/1, FP-21/1, TPS-35, Krishna Row House, Near Devpooja Socitey, Dabholi Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

06.05.1975

Date of Appointment :

04.03.2013

DIN No. :

02796955

Name :

Mr. Kailash Ramesh Patel

Designation :

Director

Address :

E-602, Greenwood, Andheri Kurla Road, Andheri (East), Mumbai-400069, Maharashtra, India

Date of Birth/Age :

06.05.1975

Date of Appointment :

26.03.2015

DIN No. :

07135597

KEY EXECUTIVES

Name :	Mr. Ghanshyam
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders	No. of Shares
Ramesh Bhalani	27500
Lavjibhai Gujarati	8500
Dineshbhai Gujarati	3500
Arvind Bhalani	8500
Arvindbhai Tulsibhai Bhalani	10000
Dineshbhai Govindbhai Gujaratina	19700
Govinbhai Gujarati	50000
Kailas Patel	20000
Lavjibhai Govindbhai Gujarati	20000
Tulsibhai Bhalani	42000
Harshaben Gujarati	5000
Sunitaben Gujarati	5000
Ashaben Bhalani	5000
Rameshbha Tulsibhai Bhalani	100
Shantuben Bhalani	100
Heeraben Jasoliya	100
Naranbhai Jasoliya	100
Naranbhai Jasoliya HUF	100
Total	225200

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2017

Category	Percentage
Promoter – (Individual/ Hindu Undivided Family – Indian)	99.87
Public – (Individual/ Hindu Undivided Family – Indian)	0.13
Total	100.00

BUSINESS DETAILS

Line of Business :

• Manufacturing including Jewellery, Musical Instruments, Medical Instruments, Sports Goods, etc. (Registered activity)

• Manufacturer, Exporter of Polished Diamonds and Importer of Rough Diamonds. (Confirmed by management)

Products :

Item Code No.	Product Description
C13	Manufacturing including Jewellery, Musical Instruments, Medical Instruments, Sports Goods, etc.

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

Finished Goods

Countries :

• South Korea
• USA
• UAE
• Hong Kong
• Belgium

Imports :

Products :

Raw Material

Countries :

• UAE
• Belgium

Terms :

Selling :

Cash, L/C and Credit (30 / 60 Days)

Purchasing :

Cash, L/C and Credit (30 / 60 Days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

• Star Gems DMCC
• Prismdia Limited
• Aaras Diam DMCC
• Diamond Source DMCC
• Sequel Logistics Private Limited
• Bharat Diamond Bourse

Reference :	Prime Diam DMCC
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Wholesalers, Retailers and End Users

• Belleza Jewellery LLC
• Bhavi Diamonds DMCC
• Diasqua Europe BVBA
• Gemwave lnc
• Heera Motilnc
• Horizon Diamonds BVBA
• L M Jewellwery
• Meua Enterprise
• Bhakti lmpex
• Dhanlaxmi Diamond
• JS Diamond
• Savani Diamond

Reference :	Jeel Diam Limited
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

400 (Approximately)

Bankers :

Bank Name	The Karur Vysya Bank Limited
Branch	No. 103 - 114, Silver Plaza Complex, Belgium Square, Ring Road, Surat – 395002, Gujarat, India
Person Name (With Designation)	--
Contact Number	91-261-2422345 (Continuously ringing)
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Loans From Bank - The Karur Vyasya Bank Limited	65.994	0.000
HDFC Bank Limited.- (EBRD)	0.000	34.694
HDFC Bank Limited.- (PCFC)	0.000	11.277
Total	65.994	45.971

Auditors :
Name :	Asodaria Associates Chartered Accountants
Address :	O-17, First Floor, Panchratna Tower, Lambe Hanuman Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-2544446/ 2548601
E-Mail :	aso_asso@yahoo.co.in
Memberships No.:	120549
PAN N Income-tax PAN of auditor or auditor's firm :	AAFEA8432G
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	INR 10/- each	INR 5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
225200	Equity Shares	INR 10/- each	INR 2.252 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.252	2.252	2.250
(b) Reserves & Surplus	47.137	38.261	33.780
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	49.389	40.513	36.030
(3) Non-Current Liabilities
(a) long-term borrowings	103.750	76.521	39.416
(b) Deferred tax liabilities (Net)	0.677	0.517	0.326
(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)	104.427	77.038	39.742
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	268.417	192.121	200.500
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	14.170	9.413	1.509
Total Current Liabilities (4)	282.587	201.534	202.009
TOTAL	436.403	319.085	277.781
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17.835	18.495	17.510
(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	6.010	6.010	6.010
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.623	0.502	0.382
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	24.468	25.007	23.902
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	197.935	231.836	203.729
(c) Trade receivables	205.264	59.356	47.151
(d) Cash and cash equivalents	3.641	1.139	2.277
(e) Short-term loans and advances	5.095	1.747	0.722
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	411.935	294.078	253.879
TOTAL	436.403	319.085	277.781

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	909.879	567.962	529.828
	Other Income	0.035	0.021	0.022
	TOTAL	909.914	567.983	529.850
Less	EXPENSES
	Cost of Materials Consumed	559.757	401.379	462.633
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	32.891	39.062	(45.385)
	Custom Duty	1.511	0.000	0.000
	Polished Diamond Purchase	105.237	0.000	0.000
	Rough Diamond Purchase (Trading)	64.165	15.262	0.000
	Employee benefit expense	22.400	14.591	13.470
	Other expenses	6.849	5.070	3.520
	Manufacturing expenses	94.283	78.545	83.662
	TOTAL	887.093	553.909	517.900
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	22.821	14.074	11.950
Less	FINANCIAL EXPENSES	7.589	5.579	3.306
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	15.232	8.495	8.644
Less/ Add	DEPRECIATION/ AMORTISATION	1.791	1.781	1.716
	PROFIT/ (LOSS) BEFORE TAX	13.441	6.714	6.928
Less	TAX	4.565	2.233	2.182
	PROFIT/ (LOSS) AFTER TAX	8.876	4.481	4.746
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	18.893	14.412	9.742
	Write off During the year	0.000	0.000	0.076
	Balance Carried to the B/S	27.769	18.893	14.412
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	347.128	207.479	150.066
	TOTAL EARNINGS	347.128	207.479	150.066
	Import of CIF	670.177	470.892	468.017
	Earnings / (Loss) Per Share (INR)	39.41	19.90	21.1

Expected Sales (2017-2018) : INR 950.000 Million

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

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	NA	NA	NA

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	82.34	38.15	32.48
Account Receivables Turnover (Income / Sundry Debtors)	4.43	9.57	11.24
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	175.03	174.71	158.19
Inventory Turnover (Operating Income / Inventories)	0.12	0.06	0.06
Asset Turnover (Operating Income / Net Fixed Assets)	1.28	0.76	0.68

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.89	0.87	0.87
Debt Equity Ratio (Total Liability / Networth)	2.10	1.89	1.09
Current Liabilities to Networth (Current Liabilities / Net Worth)	5.72	4.97	5.61
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.36	0.46	0.49
Interest Coverage Ratio (PBIT / Financial Charges)	3.01	2.52	3.61

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	0.98	0.79	0.90
Return on Total Assets ((PAT / Total Assets) * 100)	%	2.03	1.40	1.71
Return on Investment (ROI) ((PAT / Networth) * 100)	%	17.97	11.06	13.17

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.46	1.46	1.26
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.76	0.31	0.25
G-Score Ratio Financial (Networth / Total Assets)	0.11	0.13	0.13
G-Score Ratio Debt (Debts / Equity Capital)	46.07	33.98	17.52
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.46	1.46	1.26

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

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	2.250	2.252	2.252
Reserves & Surplus	33.780	38.261	47.137
Net worth	36.030	40.513	49.389
Long Term borrowings	39.416	76.521	103.750
Short Term borrowings	0.000	0.000	0.000
Total borrowings	39.416	76.521	103.750
Debt/Equity ratio	1.094	1.889	2.101

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	529.828	567.962	909.879
		7.197	60.201

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	529.828	567.962	909.879
Profit	4.746	4.481	8.876
	0.90%	0.79%	0.98%

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	Yes
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	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

PERFORMANCE REVIEW, OPERATION AND PROSPECTS:

The gross revenue from operations for the financial year was INR 909.879 Million as against INR 567.962 Million for the previous financial year. The profit after tax increased to INR 8.876 Million as compared to INR 4.481 Million for the previous financial year. The directors have initiated various measures to improve the performance of the company and hopeful that current year performance will improve further.

UNSECURED LOAN

Unsecured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Loans From Directors. Their Relafives and Members:
Arvindbhai Tulsibhai Bhalani (HUF)	3.231	2.508
Arvind Tulsibhai Bhalani	3.773	3.636
Dineshbhai Govindbhai Gujarati	1.469	1.924
Dineshbhai Govindbhai Gujarati (HUF)	4.778	2.826
Govindbhai Ganeshbhai Gujarati	2.049	0.384
Harshaben L Gujarati	0.951	0.623
Heeraben Naranbhai Jasoliya	0.825	0.744
Kailas Ramesh Patel	1.906	3.373
Lavjibhai Govindbhai Gujarati	1.503	2.033
Lavjibhai Govindbhai Gujarati (HUF)	2.615	0.000
Naranbhai Gagjibhai Jasoliya	0.762	0.537
Naranbhai Gagjibhai Jasoliya (HUF)	2.902	0.666
Ramesh T. Bhalani (HUF)	1.833	1.654
Shantuben Tulsibhai Bhalani	2.793	2.521
Tulsibhai Devjibhai Bhalani	3.101	1.018
Ramesh Tulsibhai Bhalani	3.265	6.103
Total	37.756	30.550

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G45351061	100101457	THE KARUR VYSYA BANK LIMITED	29/05/2017	-	-	106500000.0	NO. 103 - 114, SILVER PLAZA COMPLEX, BELGIUM SQUARE, RING ROAD, SURAT – 395002, GUJARAT, INDIA
2	G33587080	100072674	THE KARUR VYSYA BANK LIMITED	30/12/2016	-	-	106500000.0	NO. 103 - 114, SILVER PLAZA COMPLEX, BELGIUM SQUARE, RING ROAD, SURAT – 395002, GUJARAT, INDIA
3	G42167171	10570634	HDFC BANK LIMITED	05/05/2015	26/06/2015	17/04/2017	50000000.0	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI – 400013, MAHARASHTRA, INDIA

FIXED ASSETS

• Computer
• Factory Building
• Furniture
• Plant and Machinery
• Telephone System
• Weighing Balance
• Air Conditioner
• CCTV Camera
• Electrical Equipment
• Motor Car
• Motor Car Honda City
• Television
• Lift
• Water Filter

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 63.75
UK Pound	1	INR 89.38
Euro	1	INR 78.75

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	PRS
Report Prepared by :	SUJ

SCORE FACTORS

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

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.