MIRA INFORM REPORT

Report No. :	496582
Report Date :	19.03.2018

IDENTIFICATION DETAILS

Name :	K LALJI IMPEX
Registered Office :	SY No.: 435, A/3 Paiky, Plot No 317, Padasha Building, Behind Patel Falia Gotalawadi, Katargam, Surat – 395004, Gujarat
Mobile No.:	91-7878785865 (Mr. Ravi) 91-9825356313 (Mr. Himmat)
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment:	06.02.2016
Capital Investment / Paid-up Capital :	INR 5.267 Million
TIN / CST / VAT No.:	24722706045
IEC No / Central Custom Duty.: [Import-Export Code No.]	5216908285
TAN No.: [Tax Deduction & Collection Account No.]	SRTK05010F
PAN No.: [Permanent Account No.]	AAQFK1762K
GSTN : [Goods & Service Tax Registration No.]	24AAQFK1762K1Z0
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Processor and Importer of Diamonds. (Confirmed by management)
No. of Employees :	100 (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 :	K Lalji Impex is a processor and importer of diamonds. The concern was started in February 2016 and is based in Surat, Gujarat. It is an established partnership concern having satisfactory track records. For the financial year ended 2017, the concern has achieved healthy operational revenue and reported fair profit margin at 1.13% (approx.) General financial position of the concern seems to be normal and acceptable for business dealings. However, the rating strength is partially offset by strong competition from organised and un-organised players in diamond industry Trade relations are reported to be fair. Business is active. Payment terms are seems to be slow but correct. In view of aforesaid, the concern can be considered for business at usual trade terms and condition. Note: Site visit was conducted at the address which you have provided. Our executive has successfully traced the concern at the given address but security guard didn’t allow our executive to enter into premises. However, he confirmed existence of concern at the given address As per our executive observation, it is a two storey building. Locality of the premises appears to be commercial and area seems to be upmarket. Name board of the concern was not sighted at the given premises. Landmark of the area is near “Gotalawadi”

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 31-03-2016.

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 19.03.2018

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. Ravi Goti
Designation :	Accountant
Contact No.:	91-7878785865
Date :	17.03.2018

LOCATIONS

Registered Office / Factory :	SY No.: 435, A/3 Paiky, Plot No 317, Padasha Building, Behind Patel Falia Gotalawadi, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-7878785865 (Mr. Ravi) 91-9825356313 (Mr. Himmat)
Fax No.:	Not Available
E-Mail :	k.laljiimpex@gmail.com carahulrajesh@hotmail.com
Locality :	Commercial

PARTNERS

Name :	Mr. Himmatbhai P. Goti
Designation :	Partner
PAN No.:	ANLPG8708R
Name :	Mr. Mukesbhai P. Goti
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Ravi Goti
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Processor and Importer of Diamonds. (Confirmed by management)
Products :	“Diamonds”
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Available
Imports :
Products :	Rough Diamond
Countries :	Belgium Dubai
Terms :
Selling :	Advance Payment, Credit (30 Days)
Purchasing :	Advance Payment, Credit (30 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Rosy Blue
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

• Veediam Bvba
• Globle Security
• Janani Export
• Jay Traders
• N C Tools
• Madhav Traders
• Navnidhi Gems
• Neelam Export
• Patel Grinding Works
• Priya Enterprise
• Shiva Die Work
• Shree Harkrushna Electricals
• Shree Valamram Diamonds
• Shree Vishvakarma Sales Agency
• Shreeji Traders and Electric
• T S Gems
• Universal Technology

Customers :

Wholesalers, Retailers

Reference :	Dharmi Gems
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

• A Jogani Export Private Limited
• Chirag Diamonds
• Gautam Gems
• Gopani Gems
• Khwaish Gems
• Omkar Gems
• Roshan Impex
• Sethia Gems
• Vinay Gems and Jewelery Limited

No. of Employees :

100 (Approximately)

Bankers :

Bank Name	Axis Bank Limited
Branch	Ground Floor, Harikrishna Exports, A-19, Patel Industrial Co-operative Estate Society Limited, Near Annath Ashram, Katargam, Surat – 395004, Gujarat, India
Person Name (With Designation)	--
Contact Number	91-261-2487444 (Ringing)
Name of Account Holder	--
Account Number	916020028455132
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
MICR Code	395211008
IFS Code	UTIB0001440
Remarks (If any)	--

Auditors :
Name :	Rahul and Rajesh Chartered Accountants
Address :	740, Golden Point, Near Telephone Bhavan, Ring Road, Surat - 395002, Gujarat, India
Tel No.:	91-261-2402476
Mobile No.:	91-9925042402
Membership No.:	120937
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

CAPITAL ACCOUNT OF HIMMATBHAI P. GOTI

Particulars	INR in Million	Particulars	INR in Million
To Professional Tax	0.050	By Opening Balance	0.045
To Capital Withdrawal	1.702	By Net Profit	0.576
To Closing Balance	2.593	By Capital Introduce	2.675
		By Interest On Partners Capital	0.076
		By Remuneration To Partners	0.973
Total	4.345	Total	4.345

CAPITAL ACCOUNT OF MUKESHBHAI P. GOTI

Particulars	INR in Million	Particulars	INR in Million
To Professional Tax	0.050	By Opening Balance	0.045
To Capital Withdrawal	0.175	By Net Profit	0.576
To Closing Balance	2.674	By Capital Introduce	1.225
		By Interest On Partners Capital	0.080
		By Remuneration To Partners	0.973
Total	2.899	Total	2.899

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017
SHAREHOLDERS FUNDS
1] Share Capital		5.267
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		5.267
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		5.267
APPLICATION OF FUNDS
Fixed Assets [Net Block]		3.514
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.525
	Sundry Debtors	18.016
	Cash & Bank Balances	5.287
	Other Current Assets	0.000
	Loans & Advances	1.224
Total Current Assets		140.052
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	137.719
	Other Current Liabilities	0.000
	Provisions	0.580
Total Current Liabilities		138.299
Net Current Assets		1.753
MISCELLANEOUS EXPENSES		0.000
TOTAL		5.267

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017
	SALES
	Income	101.742
	Other Income	4.720
	TOTAL	106.462
Less	EXPENSES
	Cost of Materials Consumed	74.991
	Direct Expenses	23.257
	Administrative Expenses	4.663
	Interest on Partners Capital	0.156
	Remuneration to Partners	1.945
	TOTAL	105.012
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1.450
Less	FINANCIAL EXPENSES	0.010
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1.440
Less/ Add	DEPRECIATION/ AMORTISATION	0.287
	NET PROFIT	1.153

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

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017
Average Collection Days (Sundry Debtors / Income * 365 Days)	64.63
Account Receivables Turnover (Income / Sundry Debtors)	5.65
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	670.31
Inventory Turnover (Operating Income / Inventories)	0.01
Asset Turnover (Operating Income / Net Fixed Assets)	0.41

LEVERAGE RATIOS

PARTICULARS	31.03.2017
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.96
Debt Equity Ratio (Total Liability / Networth)	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	26.26
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.67
Interest Coverage Ratio (PBIT / Financial Charges)	145.00

PROFITABILITY RATIOS

PARTICULARS		31.03.2017
Net Profit Margin ((PAT / Sales) * 100)	%	1.13
Return on Total Assets ((PAT / Total Assets) * 100)	%	0.80
Return on Investment (ROI) ((PAT / Networth) * 100)	%	21.89

SOLVENCY RATIOS

PARTICULARS	31.03.2017
Current Ratio (Current Assets / Current Liabilities)	1.01
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.18
G-Score Ratio Financial (Networth / Total Assets)	0.04
G-Score Ratio Debt (Debts / Equity Capital)	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.01

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 – Legal Form	Yes
3	Locality of the entity	Yes
4	Premises details	Yes
5	Buyer visit details	Yes
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	Yes
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	Yes
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	No
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

FIXED ASSETS

• Computer and Printer
• Plant and Machinery
• Furnitures and Fittings

OBSERVATION FORM

COMPANY NAME: K LALJI IMPEX

ADDRESS: SY NO.: 435, A/3 PAIKY, PLOT NO 317, PADASHA BUILDING, BEHIND PATEL FALIA GOTALAWADI, KATARGAM, SURAT – 395004, GUJARAT, INDIA

CONTACT NO: 91-7878785865

PERSON TO WHOM WE MET: BUILDING SECURITY GUARD (NAME NOT DIVULGED)

NAME BOARD: NOT SIGHTED

LOCATION: EASY

LANDMARK (IF ANY): GOTALAWADI

TOTAL FLOORS OF THE BUILDING: 2

LOCALITY: COMMERCIAL

AREA: UPMARKET

PROOF OF VISIT: PHOTOGRAPH

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 and 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 64.99
UK Pound	1	INR 90.83
Euro	1	INR 80.58

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	DIV
Report Prepared by :	KJL

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	NO
--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.