MIRA INFORM REPORT

Report No. :	508287
Report Date :	11.05.2018

IDENTIFICATION DETAILS

Name :	MAHI IMPEX
Registered Office :	104, Gopinathji Building, Bhojabhai Nisheri, Mahidharpura, Surat - 395003, Gujarat
Tel. No.:	91-261-2609580
Country :	India
Financials (as on) :	31.03.2018 (Profit and Loss A/c - Provisional)
Year of Establishment:	August, 2016
Capital Investment / Paid-up Capital :	INR 6.066 Million (As on 31.03.2017)
TIN No.:	24220902942
IEC No.: [Import-Export Code No.]	5216918523
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	ABDFM2900R
GSTN : [Goods & Service Tax Registration No.]	24ABDFM2900R1Z5
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Trader and Importer of Diamond (Confirmed by management)
No. of Employees :	15 (Approximately)

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 :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a partnership concern established in the year 2016 and it is engaged as manufacturer, trader and importer of diamonds. As per the available financials of March 2017, the concern has achieved sales turnover of INR 55.780 Million from its first year of its business operation and has clocked very low profit margin of 0.46% during the year. Further, as per provisional figures of March 2018, the subject has achieved sales turnover of INR 81.46 million followed by net profit of 0.374 million Rating gets constrained on account of limited track record of its business operations and moderate capital base. Payment seems to be slow but correct. In view of aforesaid, the subject can be considered for business dealing 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

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 12.05.2018

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. Paresh Lukhi
Designation :	Partner
Contact No.:	91-9825492013
Date :	08.05.2018

LOCATIONS

Registered Office / Factory :	104, Gopinathji Building, Bhojabhai Nisheri, Mahidharpura, Surat - 395003, Gujarat, India
Tel. No.:	91-261-2609580
Mobile No.:	91-9825492013 (Mr. Paresh Lukhi)
Fax No.:	Not Available
E-Mail :	mahiimpex8@gmail.com
Area :	1000 Sq. Ft.
Location :	Rented
Locality :	Commercial

PARTNERS

Name :	Mr. Paresh Lukhi
Designation :	Partner
Address.:	904-Shree Darshan Palace, Arihant Park, Lal Darwaja, Surat – 395003, Gujarat, India
Name :	Mr. Manjibhai Lukhi
Designation :	Partner
Address.:	904-Shree Darshan Palace, Arihant Park, Lal Darwaja, Surat – 395003, Gujarat, India
Name :	Mr. Jigar Gabani
Designation :	Partner
Address.:	B/7, Anand Shopping Center, Shubhash Lane, Near Vaishnodevi Mandir, Malad – East, Mumbai – 400097, Maharashtra, India
Name :	Mr. Kalyanbhai Gabani
Designation :	Partner
Address.:	B/7, Anand Shopping Center, Shubhash Lane, Near Vaishnodevi Mandir, Malad – East, Mumbai – 400097, Maharashtra, India

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Importer of Diamond (Confirmed by management)
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Available
Imports :
Products :	Rough Diamonds
Countries :	· Belgium · Israel
Terms :
Selling :	Others (RTGS, NEFT)
Purchasing :	Others (RTGS, NEFT)

GENERAL INFORMATION

Suppliers :

Reference:	Jayvidiam (Israel) Limited
Name of the Person (Designation):	Mr. Smitesh Tejani (Director)
Contact Number:	91-9725439748
Since how long known:	9 Months
Maximum limit dealt:	Not Divulged
Experience:	Payment Behaviour = Good Market Goodwill = Good Overall = Good
Remark	As claimed by Mr. Smitesh Tejani (Director) that the subject company payment behavior and market goodwill is good.

Customers :

End Users, Manufacturers

Reference:	Shraddha Gems
Name of the Person (Designation):	Mr. Dinesh (Partner)
Contact Number:	91-9925814007
Since how long known:	13 months
Maximum limit dealt:	Not Divulged
Experience:	Product Quality Good Delivery Behaviour = Good Overall = Good
Remark	As claimed by Mr. Dinesh (Partner) that the subject company quality and delivery behavior is satisfactory.

No. of Employees :

15 (Approximately)

Bankers :

Bank Name	IndusInd Bank
Branch	Ground Floor, G4, Mangaldeep Complex, Hirabagh Circle, Varcha Branch, Kapodadara, Surat - 395006, Gujarat, India
Person Name (With Designation)	--
Contact Number	91-261-2574383 (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)	--

Auditors :
Name :	S. P. Parikh and company Chartered Accountant (Mr. Sanyam Parikh – Proprietor)
Address.:	Surat, Gujarat, India
Membership No.:	165627
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

As on 31.03.2017

Capital Investment :
Owned :	INR 6.066 Million
Borrowed :	--
Total :	INR 6.066 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017
SHAREHOLDERS FUNDS
1] Partner’s Capital		6.066
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		6.066
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		6.066
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.008
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.486
	Sundry Debtors	44.529
	Cash & Bank Balances	0.348
	Other Current Assets	0.003
	Loans & Advances and Deposits	0.040
Total Current Assets		64.406
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.332
	Other Current Liabilities and Provisions	0.016
Total Current Liabilities		58.348
Net Current Assets		6.058
MISCELLANEOUS EXPENSES		0.000
TOTAL		6.066

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2018 (Provisional)
	SALES
	Income	81.464
	Other Income	0.500
	TOTAL	81.964
Less	EXPENSES
	Cost of goods sold	80.226
	Partners Remuneration	0.000
	Audit fess	0.005
	Direct expense	0.007
	Aangadiya Expense	0.005
	Assortment Expense	0.055
	Bank commission	0.033
	Brokerage Expense	0.014
	Foreign Travelling expense	0.831
	Office rent expense	0.102
	Salary Expense	0.154
	Tea and Refreshment expense	0.010
	Other expense	0.136
	TOTAL	81.578
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	0.386
Less	FINANCIAL EXPENSES	0.012
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.374
Less/ Add	DEPRECIATION/ AMORTISATION	0.000
	NET PROFIT	0.374

	PARTICULARS	31.03.2017
	SALES
	Income	55.780
	Other Income	2.281
	TOTAL	58.061
Less	EXPENSES
	Cost of goods sold	56.805
	Partners Remuneration	0.320
	Selling and Administration expense	0.632
	Audit fess	0.005
	TOTAL	57.762
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	0.299
Less	FINANCIAL EXPENSES	0.234
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	0.065
Less/ Add	DEPRECIATION/ AMORTISATION	0.001
	NET PROFIT	0.064

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

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2018	31.03.2017
Average Collection Days (Sundry Debtors / Income * 365 Days)	NA	291.38
Account Receivables Turnover (Income / Sundry Debtors)	NA	1.25
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	NA	374.81
Inventory Turnover (Operating Income / Inventories)	NA	0.02
Asset Turnover (Operating Income / Net Fixed Assets)	NA	37.37

LEVERAGE RATIOS

PARTICULARS	31.03.2018	31.03.2017
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	NA	0.91
Debt Equity Ratio (Total Liability / Networth)	NA	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	NA	9.62
Fixed Assets to Networth (Net Fixed Assets / Networth)	NA	0.00
Interest Coverage Ratio (PBIT / Financial Charges)	94.50	1.28

PROFITABILITY RATIOS

PARTICULARS		31.03.2018	31.03.2017
Net Profit Margin ((PAT / Sales) * 100)	%	0.46	0.11
Return on Total Assets ((PAT / Total Assets) * 100)	%	NA	0.10
Return on Investment (ROI) ((PAT / Networth) * 100)	%	NA	1.06

SOLVENCY RATIOS

PARTICULARS	31.03.2018	31.03.2017
Current Ratio (Current Assets / Current Liabilities)	NA	1.10
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	NA	0.77
G-Score Ratio Financial (Networth / Total Assets)	NA	0.09
G-Score Ratio Debt (Debts / Equity Capital)	NA	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	NA	1.10

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	--
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	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last about one year and 8 months	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two 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 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 67.38
UK Pound	1	INR 91.39
Euro	1	INR 79.89

INFORMATION DETAILS

Information Gathered by :	TEJ
Analysis Done by :	NSG
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.