MIRA INFORM REPORT

Report No. :	488591
Report Date :	30.01.2018

IDENTIFICATION DETAILS

Name :	STAR RAYS

Registered Office :	Shivam Chambers, Khand Bazaar, Varachha Road, Surat -395006, Gujarat
Tel. No.:	91-22-40304444

Country :	India

Financials (as on) :	31.03.2017

Year of Establishment:	1980

Capital Investment / Paid-up Capital :	Not Divulged

CST/ TIN No.:	27480356256

IEC No.:	0888017049

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAMFS1942B

GSTIN/UIN :	Not Divulged

Legal Form :	Partnership Concern with an Unlimited Liability of the Partners

Line of Business :	Manufacturer and Exporter of Diamond. (Confirmed by management)

No. of Employees :	800 (Approximately)

RATING & COMMENTS

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

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is a partnership concern established in the year 1980 and is having satisfactory track record. The concern is a manufacturer and exporter of diamond. Mr. Sameer (Senior Accountant) has claimed that the concern has achieved a sales turnover of INR 15430.000 million for the financial year 2017. The rating continues to factory in favorably the domain expertise and long standing experience of the promoters in the cut and polished diamonds (CPD) industry supported by well established distribution network and presence in the e-commerce domain which provides the firm easier access to diversified global market. Payment terms are seems to be usually correct. The concern can be considered for business dealings at usual trade 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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

India

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	ICRA
Rating	Long term loans = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	26.08.2016

Rating Agency Name	ICRA
Rating	Short term loan = A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	26.08.2016

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 30.01.2018

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. Sameer
Designation :	Senior Accountant
Contact No.:	91-22-40304444
Date :	27.01.2018

LOCATIONS

Registered Office :	Shivam Chambers, Khand Bazaar, Varachha Road, Surat -395006, Gujarat, India
Tel. No.:	Not Available
Fax No.:	91-261-2554445
E-Mail :	accounts@starrays.com info@starrays.com
Website :	http://www.starrays.com
Location :	Owned
Locality:	Commercial

Marketing Office 1:	Bharat Diamond Bourse (BDB), DW2031/32, Second Floor, D-Tower, West Wing, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-40304444
Fax No.:	91-22-23634585
Location :	Owned

Marketing Office 2:	71 West, 47^th Street, Suite-1300, New York, 10036

PARTNERS

Name :	Mr. Vikesh Rameshkumar Shah
Designation :	Partner
Address :	404, Meghmayur Apartment, Opposite Lourd S Convent Schoolathwa Lines, Surat - 395007,Gujarat

Name :	Mr. Aalok Rajendrakumar Shah
Designation :	Partner
Address :	9-B, Ravitej Apartment,Opposite Lourds Convent Schoolathwa Lines , Surat-395007,Gujarat, India

Name :	Mr. Ritesh Rameshkumar Shah
Designation :	Partner
Address :	404, Meghmayur Apartment, Opposite Lourd S Convent Schoolathwa Lines, Surat - 395007,Gujarat

Name :	Mr. Rajendrakumar Dalpatlal Shah
Designation :	Partner
Address :	9-B, Ravitej Apartment, Opposites Lourds Convent School, Athwalines, Surat – 395005, Gujarat, India

Name :	Mr. Dilipkumar Babulal Mehta
Designation :	Partner
Address :	402-502, Dharam Palace, B/H Umra Jakat Naka, Parle Point, Surat -395005, Gujarat, India

Name :	Mr. Mahendrakumar Dalpatlal Shah
Designation :	Partner
Address :	403, Platinum Residency, Opposite V.T. Choksi Law College, Athwa Lines, Surat - 395007,Gujarat, India

Name :	Mr. Krupesh Rameshkumar Shah
Designation :	Partner
Address :	404, Meghmayur Apartment, Opposite Lourd S Convent Schoolathwa Lines, Surat - 395007,Gujarat

Name :	Mr. Priyank Mahendrakumar Shah
Designation :	Partner
Address :	403, Platinum Residency, Opposite V.T. C, Hoksi Law Collegeathwa Lines, Surat - 395007,Gujarat, India

Name :	Mr. Sohil Rajendrakumar Shah
Designation :	Partner
Address :	9-B, Ravitej Apartment,Opposite Lourds Convent Schoolathwa Lines , Surat-395007,Gujarat, India

Name :	Mr. Pratik Jitendrakumar Shah
Designation :	Partner
Address :	183/A, Nav Shantinagar Co-Operative Housing Socety Limited,98, Nepean Sea Road Mumbai - 400006,Maharashtra, India

Name :	Mr. Jitendrakumar Dalpatlal Shah
Designation :	Partner
Address :	183/A, Nav Shantinagar Housing Society, 98, Nepeansea Road, Mumbai-400006, Maharashtra, India

KEY EXECUTIVES

Name :	Mr. Sameer
Designation :	Senior Accountant

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Diamond. (Confirmed by management)

Products :	Diamond

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :
Products :	Polished Diamond
Countries :	Japan China

Imports :
Products :	Rough Diamond
Countries :	Israel Belgium

Terms :
Selling :	L/C, Cheque, Credit and Others (RTGS)

Purchasing :	L/C, Cheque, Credit and Others (RTGS)

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers and Retailers

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

No. of Employees :

800 (Approximately)

Bankers :

Bank Name	Bank of India
Branch	Bandra-Kurla Complex, Mumbai, Maharashtra, 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 :	Bakul Sandeep and Company Chartered Accountants
Address :	Surat, Gujarat, India

Memberships :	Not Available

Collaborators :	Not Available

Sister Concern:	Not Divulged

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	Not Divulged
Total :	Not Divulged

FINANCIAL DATA

[all figures are in INR Million]

Particulars

31.03.2017

Sales Turnover (Approximately)

15430.000

Expected Sales (2017-2018): INR 16000.000 Million (Due to business growth)

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

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

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	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)	Yes
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	No
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 one year	Yes
27	Reasons for variation <> 20%	Yes
28	Estimation for coming financial year	Yes
29	Profitability for last three years	No
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

NOTE: As confirmed by the management registered office of the concern has been shifted from 301/ 302 Pramukh Chambers, Opposite Jeevan Parivar Nanpura, Surat - 395001, Gujarat, India to present address

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 63.54
UK Pound	1	INR 89.82
Euro	1	INR 78.86

INFORMATION DETAILS

Information Gathered by :	KMN

Analysis Done by :	NYT

Report Prepared by :	SUD

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.