MIRA INFORM REPORT

Report No. :	493205
Report Date :	23.02.2018

IDENTIFICATION DETAILS

Name :	HEAVEN STAR DIAM
Registered Office :	430/431, Shreeji Aawas Building -2, Sardar Chowk, Minibazar, Varachha Road, Surat-395006, Gujarat
Mobile No.:	91-9825408141 [Dhaneshkumar G. Dhameliya]
Country :	India
Financials (as on) :	31.03.2017
Date of Establishment :	03.09.2016
Capital Investment / Paid-up Capital :	INR 4.755 Million
IEC No.: [Import-Export Code No.]	5216927433
Com Reg. No.:	GUJSR201482
GSTN : [Goods & Service Tax Registration No.]	24AAJFH7337Q1ZR
TIN No.:	24222808868
CST No.:	24722808868
PAN No.: [Permanent Account No.]	AAJFH7337Q
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer, Trader, Exporter of Polished Diamond and Importer of Rough Diamond. [Confirmed by management]
No. of Employees :	16 (Approximately) [In Office – 2 + In Factory - 14]

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Relatively new business
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively new partnership firm established in the year 2016 and it is a manufacturer, trader and dealer of polished diamonds. As per financials of March 2017, the subject has commenced its business operations and has reported low profit margin of 0.57% Rating takes into consideration the subject’ limited track record of business operations along with moderate capital base and average liquidity position. Rating is further constrained on account of subject’s presence in highly competitive and huge working capital requirement industry. Payments seems to be slow. In view of aforesaid, the subject 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

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

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 31-03-2016.

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 23.02.2018.

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. Shaneshkumar Ghanshyambhai Dhameliya
Designation :	Partner
Contact No.:	91-9825404181
Date :	20.02.2018

LOCATIONS

Registered Office/ Factory :	430/431, Shreeji Aawas Building -2, Sardar Chowk, Minibazar, Varachha Road, Surat-395006, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9825408141 [Dhaneshkumar G. Dhameliya]
Fax No.:	Not Available
E-Mail :	heavenstardiam@gmail.com
Area :	450 Sq. Ft.
Location :	Owned

PARTNERS

Name :	Mr. Dhaneshkumar Ghanshyambhai Dhameliya
Designation :	Partner
Address:	B-302, Rever Heaven Apartment, Near Sudama Chowk, Mota Varachha, Surat-394 101, Gujarat, India
Date of Birth:	11.04.1985
Qualification:	10th
Experience:	14 Years (Diamond)
Name :	Mr. Ashokbhai Valjibhai Monapara
Designation :	Partner
Address:	B-65, Sidharthnagar Society, Simada Gam, Taluka Surat City, Surat-394110, Gujarat, India
Date of Birth:	05.02.1975
Qualification:	8th
Experience:	25 Years
Name :	Mrs. Kirtiben Dhaneshkumar Dhameliya
Designation :	Partner
Address:	B-302, Rever Heaven Apartment, Near Sudama Chowk, Mota Varachha, Surat-394 101, Gujarat, India
Name :	Mrs. Sarojben Ashokbhai Monpara
Designation :	Partner
Address:	B-65, Sidharthnagar Society, Simada Gam, Taluka Surat City, Surat-394110, Gujarat, India

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter of Polished Diamond and Importer of Rough Diamond. [Confirmed by management]
Products/ Services :	Polished Diamond Rough Diamond
Brand Names :	Heaven Star
Agencies Held :	Not Available
Exports :
Products :	Diamonds
Countries :	Hong Kong Israel
Imports :
Products :	Rough Diamonds
Countries :	Belgium
Terms :
Selling :	Credit [30 Days]
Purchasing :	Credit [120 Days]

GENERAL INFORMATION

Suppliers :

· Bright Diam BVBA

· Glorious Gems BVBA

· D. Kavya Green Processor

· Jay Jaykar Enterprises

· Jaykar Mark Techno

· Shree Guruchhaya Diamond

· Smile Holidays

· Trishul Engineering

Customers :

Retailers

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Experience :	--
Maximum Limit Dealt :	--
Remark :	--

No. of Employees :

16 (Approximately) [In Office – 2 + In Factory - 14]

Bankers :

Bank Name	IndusInd Bank
Branch	Varachha, Surat, Gujarat, India
Person Name (With Designation)	--
Contact Number	--
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)	--

Auditors :

Name :

Hina Gajera and Company

Chartered Accountants

Address :

365, Akar Sport Club, Nana Varachha, Surat – 395006, Gujarat, India

Mobile No.:

91-8849693965

Email :

Hintt1410@gmail.com

Membership No.:

163095

Collaborators :

Not Available

Membership :

Not Available

Sister Concern :

Not Divulged

CAPITAL STRUCTURE

AS ON 31.03.2017

Name of Partner	Balance as at 01.04.2016	Brought in during the year	Interest on capital	Salary to partners	Share in profit	Withdrawals	Balance as at 31.03.2017
Ashokbhai Valjibhai Monpara	0.00	0.130	0.00	0.00	0.019	0.00	0.149
Dhaneshkumar G. Dharneliya	0.00	0.235	0.00	0.00	0.030	0.00	0.265
Kirtiben DhaneshkumarDhameliya	0.00	4.035	0.00	0.00	0.019	0.00	4.054
Sarojben Ashokbhai Monpara	0.00	0.280	0.00	0.00	0.007	0.00	0.287
Total	0.00	4.680	0.00	0.00	0.075	0.00	4.755

FINANCIAL DATA

[all figures are INR 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		31.03.2017
SHAREHOLDERS FUNDS
1] Partners Capital		4.755
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		4.755
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.850
TOTAL BORROWING		0.850
DEFERRED TAX LIABILITIES		0.000
TOTAL		5.605
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.327
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.641
	Sundry Debtors	0.000
	Cash & Bank Balances	0.602
	Other Current Assets	0.000
	Loans & Advances	0.054
Total Current Assets		31.297
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.979
	Other Current Liabilities & Provisions	0.040
Total Current Liabilities		26.019
Net Current Assets		5.278
MISCELLANEOUS EXPENSES		0.000
TOTAL		5.605

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017
	SALES
	Income	13.225
	Other Income	0.863
	Closing stock	18.942
	TOTAL	33.030
Less	EXPENSES
	Rough diamonds consumption	30.772
	Worker wages and salary	0.804
	Job work charges	0.135
	Power and fuel	0.026
	Operational and other expenses	1.151
	TOTAL	32.888
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.142
Less	DEPRECIATION/ AMORTISATION	0.027
	PROFIT/ (LOSS) BEFORE TAX	0.115
Less	TAX	0.040
	PROFIT/ (LOSS) AFTER TAX	0.075

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017
Average Collection Days [Sundry Debtors / Income * 365]	0.00
Inventory Turnover (Operating Income / Inventories)	0.00
Asset Turnover (Operating Income / Net Fixed Assets)	0.43

LEVERAGE RATIOS

PARTICULARS	31.03.2017
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.85
Debt Equity Ratio (Total Liability / Networth)	0.18
Current Liabilities to Networth (Current Liabilities / Net Worth)	5.65
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.07

PROFITABILITY RATIOS

PARTICULARS		31.03.2017
PAT to Sales ((PAT / Sales) * 100)	%	0.57
Return on Total Assets ((PAT / Total Assets) * 100)	%	0.24
Return on Investment (ROI) ((PAT / Networth) * 100)	%	1.58

SOLVENCY RATIOS

PARTICULARS	31.03.2017
Current Ratio (Current Assets / Current Liabilities)	1.16
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.02
G-Score Ratio Financial (Networth / Total Assets)	0.15
G-Score Ratio Debt (Debts / Equity Capital)	0.18
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.16

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

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	No
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 one year	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last one year	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.

UNSECURED LOANS:

Particulars	31.03.2017 INR In Million
Shri Dhaneshbhai G. Dhameliya HUF	0.850
Total	0.850

FIXED ASSETS

• Plant and machinery

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 64.82
UK Pound	1	INR 79.94
Euro	1	INR 90.66

INFORMATION DETAILS

Information Gathered by :	ASK
Analysis Done by :	VVK
Report Prepared by :	GEET

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.