MIRA INFORM REPORT

Report Date :

27.10.2006

IDENTIFICATION DETAILS

Name :	NIRU JEWELS PRIVATE LIMITED
Registered Office :	112/115, The Jewel Tata Road No 2, Opera House Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	06.06.2003
Com. Reg. No.:	11-140764
CIN No.: [Company Identification No.]	U51398MH2003PTC140764
TAN No.: [Tax Deduction & Collection Account No.]	MUMN12011G
PAN No.: [Permanent Account No.]	AABCN8598A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Plain and Diamond Studded Gold and Platinum Jewellery

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 125000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	112/115, The Jewel Tata Road No 2, Opera House Mumbai – 400004, Maharashtra
Tel. No.:	91-22-28990210 / 23684401 / 2 / 3
Mobile No.:	91-9820175055
Fax No.:	91-22-28290859 / 23683658
E-Mail :	nirujewelsnj@yahoo.com
Corporate Office :	Unit No. 704, Tower I Seepz ++, Seepz Sez, Andheri (East), Mumbai - 400096, Maharashtra, India
Tel. No.:	91-22-28290210 / 11
Fax No.:	91-22-28290859

DIRECTORS

Name :	Mr. Darshan Harshad Dave
Designation :	Director
Address :	310, Chandralok ‘A’, 97 Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Casing :	07.072004
Date of Appointment :	06.06.2003
Name :	Mr. Tejas Mukesh Shah
Designation :	Director
Address :	Sagar Vihar, 2^nd Floor, K M Munshi Marg, Chowpatty, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	15.07.1977
Date of Casing :	07.07.2004
Date of Appointment :	06.06.2003
Name :	Mr. Mukesh Jayantilal Shah
Designation :	Director
Address :	2 / B, Sagar Vihar, 45 K M Munshi Marg, Chowpatty, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	12.06.1951
Date of Appointment :	7.07.2004
Name :	Mrs. Gita Mukesh Shah
Designation :	Director
Address :	2 / B, Sagar Vihar, 45 K M Munshi Marg, Chowpatty, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	27.09.1950
Date of Appointment :	07.07.2004
Name :	Mr. Govardhan Govind Vanani
Designation :	Managing Director
Address :	101 – B, 201 – B, Walkeshwar, OM Vikas Co-Operative Housing Society Limited, 105-107, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	07.08.1955
Date of Appointment :	07.08.2003
Name :	Mr. Amit Govardhan Vanani
Designation :	Director
Address :	101 – B, 201 – B, Walkeshwar, OM Vikas Co-Operative Housing Society Limited, 105-107, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	28.12.1979
Date of Appointment :	07.08.2003

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Govardhan Govind Vanani	600000
Mr. Amit Govardhan Vanani	390000
Mr. Mukesh Jayantilal Shah	576000
Mrs. Gita Mukesh Shah	4000

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Plain and Diamond Studded Gold and Platinum Jewellery

GENERAL INFORMATION

No. of Employees :	350
Bankers :	Union Bank of India Overseas Branch Seepz ++, Unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
Facilities :	From Union Bank of India : 07/08/2004 Rs. 10.000 Millions [Hypothecation of Bills] 07/08/2004 Rs. 27.000 Millions [All Machinery, Plant, Vehicles, Capital goods and assets.]

Banking Relations :	Satisfactory
Auditors :	Naresh S. Shah and Company Chartered Accountants
Associates/Subsidiaries :	Ø Gonzalez Global Enterprises - Tiaras, jewelry, wedding jewelry, keepsakes Ø Modi Emporium - Manufacturer and exporter of studded silver jewellery from India Ø Silver Charely Company, Limited - Sterling silver rings, sterling silver earrings, sterling silver necklaces, brass jewelry Ø Seramco Associates - Fashion Jewelry Ø Juwelenlust - Silver jewelry, gemstones, diamonds Ø HJ Exports - Costume / imitation / fashion jewellery. Sterling silver & semi-precious stones jewellery. Ø Hamisama - Ethiopian brown opal Ø Euromar International Group - Export Jewelry in Larimar and Amber Ø Belldandy - Jewelry, house, boat and land Ø CiYi Health Jewelry Factory - Magnetic hematite jewelry, cat eye, semi-precious stone Ø Ho Kwong Pearl Company - Fresh water pearl raw form or jewelry Ø Usacl - Handbags and accessories Ø Esaaks sound - Costume, fashion jewelry, bags and electronic products Ø Infinite Mining Company Limited - Tantalite, lead, iron ore, tin, zinc, gold, platinuin, bismuth, columbite, and any gemstones Ø D. Pravinchandra & Company - Polished diamonds in all shapes/colours/cuts Ø Pierce & Price Pty Limited - Pierce&price is an Australian owned and run fine silver jewelry, body piercing jewelry and new fashion products wholesaler that has been operating out of Sydney, Australia for the past two years. Ø Dech Multi-links Services - Exporting genuine precious stones and gems from Africa to Asia and the rest of the world. Ø KTA (Korea Trading Agency) - Luxury hair pin/mobile phone accessary Ø Mediterranean Import Export - Fine jewellery, natural gemstones, sterling silver jewellery, leather fashion products and costume jewellery. Ø Mirac Foreign Trade Company - Gift, apparel designing and ethnic garments, miniature carpets, bookmarks and handcrafted

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- each	Rs. 1.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1936500	Equity Shares	Rs. 10/- each	Rs. 19.365 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		19.365	18.300
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		13.185	0.203
4] (Accumulated Losses)		0.000	0.000
NETWORTH		32.550	18.503
LOAN FUNDS
1] Secured Loans		32.598	29.188
2] Unsecured Loans		2.634	[7.816]
TOTAL BORROWING		35.232	21.372
DEFERRED TAX LIABILITIES
TOTAL		67.782	39.875
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.536	38.391
Capital work-in-progress		0.150	0.150
INVESTMENT		6.494	5.263
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.282	22.397
	Sundry Debtors	79.227	17.000
	Cash & Bank Balances	0.471	0.426
	Other Current Assets	1.192	1.899
	Loans & Advances	1.248	0.336
Total Current Assets		148.420	42.058
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	124.718	46.135
	Provisions	0.100	0.000
Total Current Liabilities		124.818	46.135
Net Current Assets		23.602	[4.077]
MISCELLANEOUS EXPENSES		0.000	0.148
TOTAL		67.782	39.875

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover [including other income]	99.892	28.355
Profit/(Loss) Before Tax	13.081	0.203
Provision for Taxation	0.100	--
Profit/(Loss) After Tax	12.981	0.203
Total Expenditure	86.811	28.178

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	13.00	0.72
Net Profit Margin (PBT/Sales)	(%)	13.10	0.72
Return on Total Assets (PBT/Total Assets}	(%)	7.03	0.25
Return on Investment (ROI) (PBT/Networth)		0.40	0.01
Debt Equity Ratio (Total Liability/Networth)		4.92	3.65
Current Ratio (Current Asset/Current Liability)		1.19	0.91

LOCAL AGENCY FURTHER INFORMATION

Manufacturer of diamond jewellery of princess and other cut diamonds in white & yellow gold in 14k&18kgold.

Name of the company	NIRU JEWELS PRIVATE LIMITED
Presented By	--
1) Date and description of instrument creating the change	Term Loan Agreement [Hypothecation of Movable] Dated 07.08.2004 General Term Loan agreement Dated 07.08.2004 [Both the above documents constitute a single charge]
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 27.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The Borrower hereby hypothecates and charges to the Bank all those Machinery / plant / vehicles / capital / goods / assets purchased or to be purchased by the Borrower out of this loan such as Wax Injectors, Casting Machines, Motors , Shafts, refinery equipments, Electrical Dust Collector, Polishing Machines, Computers and peripherals and office equipments etc. whether installed or nor or whether lying loose or in cased or in transit to the borrowers premises or at any time in course of transit to the premises factory of the Borrowers at Unit No. 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096 whatsoever and wherever in the possession or occupation of the Borrower as a security for payment to the Bank of the loan or the balance due to the Bank by the Borrower on the loan account hereunder referred to as the hypothecated assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of BPLR + 1.50 % per annum with monthly rests or at such other rate as may be prescribed by the bank from time to time depending on the changed in the Prime Term landing rate of the bank or on the directives of Reserve Bank of India from time to time or the policy of the Bank for the term Loan facility of Rs. 27.000 millions granted by the Bank to the company. Margin : 25 % Repayment : The term loan is repayable in 12 quarterly instalments of Rs. 2.250 millions each commencing from December, 2004 onwards.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Overseas Branch Seepz ++, unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
6) Date and brief description of instrument modifying the charge	Agreement of Hypothecation of goods and assets Dated 07.12.2005 Agreement of loan for overall limit Dated 07.12.2005 [Both the above documents constitute a single charge]
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	That in pursuance of the said agreement of loan and in consideration of Bank having granted and agreed to grant to the borrower all or some or any of the aforesaid credit facilities for the purposes and subject to the terms and conditions specified and contained in the said agreement of loan and in consideration of premises aforesaid it is hereby agreed and declared that all present and future goods, book debts and all other movable asset of the borrower including documents of title to the goods, outstanding moneys receivables including receivable by way of cash assistance and or cash incentives under the cash inventive scheme or any other claims including claims by way of refund or excise duties under the duty drawback credit scheme or any other scheme bills, invoices documents contract insurance policies, guarantees, engagements, securities investments and rights and the present machinery listed in the schedule hereunto the further machinery belonging to or in the possession or under the control of borrower wherever lying stored and kept and whether in possession of the borrower or of the bank or of any third party whether in India or elsewhere throughout the world [including all such goods, other movable assets an may be in course of shipment transit or deliver] thereinafter referred to as the said goods and assets shall stand hypothecated to the bank by way of first charges subject however to any charge in favour of any third party which may have been notified by the Borrower ad accepted by the Bank as having propriety over its own charge as security for payment and discharge by the Borrower to the Bank on demand of a sum of Rs. 92 millions and all other moneys at any time payable by the borrower to the bank under or in respect of all or some any of the aforesaid credit facilities granted to be granted to the Borrower and also as security for the payment and discharge of all indebtedness whatsoever or liability of the borrower to the Bank in respect of any liability undertaken by the Bank under any letter of credit opened or guarantee or indemnity issued by the Bank of the Borrower or otherwise in respect of any account at any office of the Bank whether in India or elsewhere and whether accrued accruing or contingent and whether solely or jointly with other and any bills of exchange promissory notes instrument at any time drawn made accepted or endorsed by the borrower solely or jointly with others which the bank may discount at become interested in together with all interest, discount, commission, charges costs and expenses payable to or incurred by the Bank in relations thereto Provided however that where the Bank has at the specific request of the Borrower and in the sole discretion communicated in wiring to the borrower and in its sole discretion communicated in writing to the borrower that in respect of any specific item of goods, book debts and other movable assets this chare by way of hypothecation will nor operate such goods book dents and other movable assets shall be deemed as not having been hypothecated to the Bank as stated herein before. As security for payment and discharge by the borrower to the bank of the said sum of Rs. 92.000 millions and interest and costs charges expenses and other monies due and payable by the borrower to the bank under or in respect of the aforesaid credit facilities or any of them the Borrower shall as may be required create in favour of the bank A mortgage in a form satisfactory to the bank of all the borrower’s immovable properties both present and future and A first charge by way of hypothecation and or pledge of the including documents of title to the goods and other assets such as book debts outstanding moneys, receivables including receivables by way of cash assistance and / or cash incentives scheme or any other scheme claims, including claims by way of refund of customs / excise duties under the Duty Drawback credit insurance policies guarantees, engagements, securities investments and right uncalled capital and all machinery present and future of such form satisfactory to the Bank.
Name of the company	NIRU JEWELS PRIVATE LIMITED
Presented By	--
1) Date and description of instrument creating the change	Packing credit agreement Dated 07.08.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The Borrower hereby hypothecates and charges to the Bank all those Machinery / plant / vehicles / capital / goods / assets purchased or to be purchased by the Borrower out of this loan such as Wax Injectors, Casting Machines, Motors , Shafts, refinery equipments, Electrical Dust Collector, Polishing Machines, Computers and peripherals and office equipments etc. whether installed or nor or whether lying loose or in cased or in transit to the borrowers premises or at any time in course of transit to the premises factory of the Borrowers at Unit No. 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096 whatsoever and wherever in the possession or occupation of the Borrower as a security for payment to the Bank of the loan or the balance due to the Bank by the Borrower on the loan account hereunder referred to as the hypothecated assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 6.5 % per annum for the packing credit limit of Rs. 5.000 Millions granted by the Bank to the company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Overseas Branch Seepz ++, unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
6) Date and brief description of instrument modifying the charge	Agreement of Hypothecation of goods and assets Dated 07.12.2005 Agreement of loan for overall limit Dated 07.12.2005 [Both the above documents constitute a single charge]
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	That in pursuance of the said agreement of loan and in consideration of Bank having granted and agreed to grant to the borrower all or some or any of the aforesaid credit facilities for the purposes and subject to the terms and conditions specified and contained in the said agreement of loan and in consideration of premises aforesaid it is hereby agreed and declared that all present and future goods, book debts and all other movable asset of the borrower including documents of title to the goods, outstanding moneys receivables including receivable by way of cash assistance and or cash incentives under the cash inventive scheme or any other claims including claims by way of refund or excise duties under the duty drawback credit scheme or any other scheme bills, invoices documents contract insurance policies, guarantees, engagements, securities investments and rights and the present machinery listed in the schedule hereunto the further machinery belonging to or in the possession or under the control of borrower wherever lying stored and kept and whether in possession of the borrower or of the bank or of any third party whether in India or elsewhere throughout the world [including all such goods, other movable assets an may be in course of shipment transit or deliver] thereinafter referred to as the said goods and assets shall stand hypothecated to the bank by way of first charges subject however to any charge in favour of any third party which may have been notified by the Borrower ad accepted by the Bank as having propriety over its own charge as security for payment and discharge by the Borrower to the Bank on demand of a sum of Rs. 92 millions and all other moneys at any time payable by the borrower to the bank under or in respect of all or some any of the aforesaid credit facilities granted to be granted to the Borrower and also as security for the payment and discharge of all indebtedness whatsoever or liability of the borrower to the Bank in respect of any liability undertaken by the Bank under any letter of credit opened or guarantee or indemnity issued by the Bank of the Borrower or otherwise in respect of any account at any office of the Bank whether in India or elsewhere and whether accrued accruing or contingent and whether solely or jointly with other and any bills of exchange promissory notes instrument at any time drawn made accepted or endorsed by the borrower solely or jointly with others which the bank may discount at become interested in together with all interest, discount, commission, charges costs and expenses payable to or incurred by the Bank in relations thereto Provided however that where the Bank has at the specific request of the Borrower and in the sole discretion communicated in wiring to the borrower and in its sole discretion communicated in writing to the borrower that in respect of any specific item of goods, book debts and other movable assets this chare by way of hypothecation will nor operate such goods book dents and other movable assets shall be deemed as not having been hypothecated to the Bank as stated herein before. As security for payment and discharge by the borrower to the bank of the said sum of Rs. 92.000 millions and interest and costs charges expenses and other monies due and payable by the borrower to the bank under or in respect of the aforesaid credit facilities or any of them the Borrower shall as may be required create in favour of the bank A mortgage in a form satisfactory to the bank of all the borrower’s immovable properties both present and future and A first charge by way of hypothecation and or pledge of the including documents of title to the goods and other assets such as book debts outstanding moneys, receivables including receivables by way of cash assistance and / or cash incentives scheme or any other scheme claims, including claims by way of refund of customs / excise duties under the Duty Drawback credit insurance policies guarantees, engagements, securities investments and right uncalled capital and all machinery present and future of such form satisfactory to the Bank.
Name of the company	NIRU JEWELS PRIVATE LIMITED
Presented By	Union Bank of India Overseas Branch Seepz ++,Mumbai
1) Date and description of instrument creating the change	Memorandum of Deposit of Title Deeds Made on 09.08.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 42.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Equitable mortgage by way of deposit of title deeds in respect of company’s immovable property viz. Unit No. 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096 and adm 6638.52 sq. ft. The tower mentioned is located in land known as Plot F – 1, in the Santacruz Electrics Exports Processing Zone within the village limits of Vyarvali Andheri containing by adm 421105 sq. mtrs or thereabouts together with fixed plant and machinery or the building and structures thereon together with fixed plant and machinery and all the plant and machinery furniture and fixture office equipments computers casting machinery chairs and tables, wax injection machines etc and also stock of gold, silver platinum and other material semi finished r finished goods form lying in Unit No 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096
4) Gist of the terms and conditions and extent and operation of the charge.	The security as stated in Column No. 3 above has been taken to secure the due repayment to Union Bank of India of all amounts advanced or to be advanced and of all the amount under various facilities granted or to be granted by the Bank to the extent of Rs. 42.000 millions to the company together with interest, compound interest and or additional interest in case of defanlt exchange flections costs charges, expenses etc.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Overseas Branch Seepz ++, Unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA
Name of the company	NIRU JEWELS PRIVATE LIMITED
Presented By	--
1) Date and description of instrument creating the change	Packing credit agreement Dated 07.08.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The Borrower hereby hypothecates and charges to the Bank all those Machinery / plant / vehicles / capital / goods / assets purchased or to be purchased by the Borrower out of this loan such as Wax Injectors, Casting Machines, Motors , Shafts, refinery equipments, Electrical Dust Collector, Polishing Machines, Computers and peripherals and office equipments etc. whether installed or nor or whether lying loose or in cased or in transit to the borrowers premises or at any time in course of transit to the premises factory of the Borrowers at Unit No. 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096 whatsoever and wherever in the possession or occupation of the Borrower as a security for payment to the Bank of the loan or the balance due to the Bank by the Borrower on the loan account hereunder referred to as the hypothecated assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 6.5 % per annum for the packing credit limit of Rs. 5.000 Millions granted by the Bank to the company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Overseas Branch Seepz ++, unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA
Name of the company	NIRU JEWELS PRIVATE LIMITED
Presented By	Union Bank of India Overseas Branch Seepz ++
1) Date and description of instrument creating the change	Packing credit agreement Dated 07.08.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 10.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Purchase from or negotiate a Bill or Bills or exchange drawn or accepted or endorsed against goods and merchandise or shipping or other documents and or hold such or any other bill or bills of exchange or documents for collection on the borrowers account under lien to the Bank.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 6.5 % per annum for the packing credit limit of Rs. 5.000 Millions granted by the Bank to the company.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Overseas Branch Seepz ++, unit Block No. II, Seepz ++ Complex, Marol Industrial Area, Jogeshwari, Vikhroli Link Road, Andheri East Mumbai 400096
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

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	Indian Rupees
US Dollar	1	Rs.44.93
UK Pound	1	Rs.85.71
Euro	1	Rs.57.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
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
TOTAL		45

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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