MIRA INFORM REPORT

Report Date :

05.12.2007

IDENTIFICATION DETAILS

Name :	INTERNATIONAL GOLD COMPANY LIMITED
Registered Office :	G-48, Gem and Jewellery Complex, Seepz, Andheri (East), Mumbai – 400 096, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	22.09.1994
Com. Reg. No.:	11-81352
CIN No.: [Company Identification No.]	U36911MH1994PLC081352
TAN No.: [Tax Deduction & Collection Account No.]	MUMI02321E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Diamonds, Precious Stones and Jewellery of all Varieties.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 670000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position is good. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	G-48, Gem and Jewellery Complex, Seepz, Andheri (East), Mumbai – 400 096, Maharashtra, India
Tel. No.:	91-22-28291783 / 28292695 / 28291370
Fax No.:	91-22-28290371
E-Mail :	intgold@bom3.vsnl.net.in igcl@igcl.co.in

DIRECTORS

Name :	Mr. Harshad Ramniklal Mehta
Designation :	Director
Address :	91/19, Vijaydeep, 31, Ridge Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	15.08.1947
Date of Appointment :	16.12.1997
Name :	Mr. Amar Kishore Kothari
Designation :	Director
Address :	B / 8, Rockside Building, 2^nd Floor, 116, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	08.06.1979
Date of Appointment :	31.08.2002
Name :	Mr. Nalin Udayshankar Rajguru
Designation :	Director
Address :	703, Bhoomi Apartments, Mahavir Nagar, Near Dhanukar Wadi, Kandivali [West], Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	17.03.1944
Date of Appointment :	07.04.1988
Name :	Mr. Akshyakumar Dayanand Sharma
Designation :	Wholetime Director cum Chief Executive Officer
Address :	L -3, C/701, Oakland Park, Yamuna Nagar, Lokhandwala Complex, Andheri [West], Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	09.01.1963
Date of Appointment :	09.05.2003
Name :	Mr. Deval Lakdawala
Designation :	Director
Address :	B-203, Lokhandwala Residency Building, Manjrekar Lane, Off. E. Moses Road, Worli, Mumbai – 400 025, Maharashtra, India
E-Mail:	deval@igcl.co.in
PAN No.:	ABFPL3842D
Date of Appointment :	30.09.2006
Other Directorship Held:	v Luckystar Jewellery Exports (India) Private Limited CIN No.: U36911MH1991PTC063342 v Mediatech India Distribution Private Limited CIN No.: U51395MH2004PTC145137

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Inter Gold (India) Private Limited	88596
Mr. Russell Arunkumar Mehta	1000
Mr. Arunkumar Ramniklal Mehta	479
Mr. Harshad Ramniklal Mehta	4800
Mr. Nalin Rajguru	100
Mr. Amar Kishore Kothari	25
Mr. Hitesh Prakash Mehta	4900

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Diamonds, Precious Stones and Jewellery of all Varieties.

Products :

Item Code No.	Product Description
71131903	Studded Gold Jewellery
71131905	Platinum Jewellery

PRODUCTION STATUS

Particulars	Licensed Capacity	Actual Production
Studded Jewellery	242.49 Kgs.	185943 Nos.
Plain Jewellery	410.8 Kgs.	175383 Nos.

GENERAL INFORMATION

No. of Employees :	2200
Bankers :	v State Bank of India Seepz Branch, Andheri (East), Mumbai – 400 096 v Punjab National Bank Seepz Branch, Andheri (East), Mumbai – 400 096
Facilities :	-

Banking Relations :	Good
Auditors :
Name :	M. M. Nissim And Company Chartered Accountants,
Address :	Barodawala Mansion, B – Wing, 3^rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai – 400016, Maharashtra, India
Tel. No.:	91-22-24949991
Fax No.:	91-22-24949995
E-Mail :	mail@mmnissim.com
Website:	http://www.mmnissim.com
Holding Company:	Shah Mehta Holding Private Limited
Parent Company :	Inter Gold [India] Private Limited
Fellow Subsidiary :	v Josh Diamonds Private Limited v Inter Gold Gems Private Limited v Lucky Star Jewellery Exports (India) Private Limited
Subsidiaries :	Interlink Acquisition Inc. USA
Associates :	v B. Arunkumar and Company v Rosy Blue [India] Private Limited [erstwhile known as Everest Gems Private Limited]

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 100.00 each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99900	Equity Shares	Rs. 100.00 each	Rs. 9.990 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		9.990	9.990	9.990
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		159.569	145.017	129.457
4] (Accumulated Losses)		0.000	0.000	0.0000
NETWORTH		169.559	155.007	139.447
LOAN FUNDS
1] Secured Loans		241.335	194.425	181.067
2] Unsecured Loans		10.000	0.000	0.000
TOTAL BORROWING		251.335	194.425	181.067
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		420.894	349.432	320.514
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.027	23.574	23.248
Capital work-in-progress		0.000	0.000	0.393
INVESTMENT		10.880	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.262	0.258
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	262.515	150.393	150.262
	Sundry Debtors	477.808	406.669	467.956
	Cash & Bank Balances	20.073	27.127	19.160
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.997	22.279	9.226
Total Current Assets		783.393	606.468	646.604
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	391.049	275.147	345.497
	Provisions	7.060	5.734	4.510
Total Current Liabilities		398.109	280.881	350.007
Net Current Assets		385.285	325.587	296.597
MISCELLANEOUS EXPENSES		0.000	0.009	0.018
TOTAL		420.894	349.432	320.514

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		992.871	792.231	805.835
Other Income		2.800	0.000	0.000
Total Income		995.671	792.231	805.835
Profit/(Loss) Before Tax		14.681	16.426	2.601
Provision for Taxation		1.008	0.867	0.352
Profit/(Loss) After Tax		13.660	15.559	2.249
Export Value		NA	779.613	788.778
Import Value		NA	141.657	212.992
Expenditures :
	Raw Material Consumed	833.603
	Consumption of stores and spare parts	10.198
	Increase / Decrease in finished goods, work0in-progress	(15.040)
	Salaries, wages and bonus	82.604
	Managerial Remuneration	2.057	775.805	803.234
	Payment of Auditors	0.111
	Interest	16.723
	Insurance Expenses	0.514
	Power and fuel	5.242
	Depreciation and amortization	4.507
	Other Expenditure	40.471
Total Expenditure		980.990	775.805	803.234

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	1.37	0.27	0.36
Net Profit Margin (PBT/Sales)	(%)	1.48	0.32	0.36
Return on Total Assets (PBT/Total Assets}	(%)	1.82	0.38	0.46
Return on Investment (ROI) (PBT/Networth)		0.09	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		3.83	3.80	2.57
Current Ratio (Current Asset/Current Liability)		1.97	1.84	2.38

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

• Buildings
• Plant & Machinery
• Furniture & Fixtures
• Office Equipments
• Vehicles
• Computers

FORM 8

Name of the company

INTERNATIONAL GOLD COMPANY LIMITED

1) Date and description of instrument creating the change

Working Capital Consortium Agreement

Joint Deed of Hypothecation

Inter-se Agreement

All the above agreement is Dt. 19.09.2001 and executed for the creation of single charge

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 246.000 millions

[Amount in Millions]
	SBI	PNB
Export Packing Credit Hypothecation of stocks and goods	62.500	59.375
Foreign Bills Purchased / discounted	62.500	59.375
Maximum [1] + [2]	125.000	95.000
Letter of Credit	--	20.00
Bank of Guarantee	5.000	1.000
Maximum [3] + [4]	5.000	21.000
Total	130.000	116.000

Inter-se flexibility within the overall fund based limit of Rs. 95 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 whole of current assets of the borrower namely stock of raw materials, stocks in process, semi – finished goods, stores and spares not relating to plant & machinery [Consumable stores & spares, bills receivable and book debts and all other movables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the borrowers factories, premises and godowns situate at G – 48, Gems & Jewellery Complex, Seepz, Andheri [East], Mumbai – 400096 in the State of Maharashtra or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order of delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution and addition

4) Gist of the terms and conditions and extent and operation of the charge.

ROI

1. Packing Credit Limit :

10% p.a. * up to 180 days

13% p.a. * beyond 180 days up to 270 days

2. Foreign Bills Purchased / Discounting Limit

9.5% p.a. * up to NTP / 45 days

10% p.a. * beyond 45 days up to 90 days

12% p.a. * beyond 90 days up to 180 days

25% p.a. * beyond 180 days

* OR at such other rates as may be notified by the consortium banks or Reserve Bank of India from time to time

5) Name and Address and description of the person entitled to the charge.

1. State Bank of India

SEEPZ Branch, Andheri [East], Mumbai – 400096

2. Punjab National Bank

SEEPZ Branch, Andheri [East], Mumbai – 400096

6) Date and brief description of instrument modifying the charge

Agreement of Hypothecation of movable assets forming part of fixed / block assets executed by the company on 23.09.2002

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.

By hypothecation agreement executed on 23.09.2002 a first charge on the existing and future movable stock block assets as specified in the schedule of security to the said agreement viz. plant & machinery, furniture and fixtures, office equipments, vehicles and computers including all product goods and movable property of any kind belonging to the borrower which now or hereinafter from time to time during the continuance of this agreement shall be brought in or stored in or about their premises or wherever else was created as security for the total working capital facility of Rs. 246 millions from the consortium of Banks viz. State Bank of India Rs. 130 millions and Punjab National Bank Rs. 116 millions

Name of the company	INTERNATIONAL GOLD COMPANY LIMITED
Presented by	DIRECTOR – Jitendra Jain
1) Date and description of instrument creating the change	Packing credit agreement dated 7^th March, 2000 executed by Inter Gold India Limited hereinafter called the company in favour of Punjab National Bank
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 38.125 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	Hypothecation by way of charge of goods and merchandise including all products goods and movable property inclusive of goods / raw materials purchased / to be purchased and belonging to the company which are brought in / stored in or about the premises, godowns or be in transit, stock in process, finished goods comprising rough, cut & polished diamonds, gold, plain and studded jewellery & platinum jewellery and import documents and any other security acceptable by shareholders of Punjab National Bank
4) Gist of the terms and conditions and extent and operation of the charge.	Margin 10% Interest @ 10% p.a. or such rate as may be fixed by the bank from time to time
5) Name and Address and description of the person entitled to the charge.	Punjab National Bank SEEPZ Branch, Andheri [East], Mumbai – 400096
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company

INTERNATIONAL GOLD COMPANY LIMITED

Presented By

State Bank of India, Seepz Branch, Andheri [East], Mumbai - 400096

1) Date and description of instrument creating the change

Working Capital Consortium Agreement

Joint Deed of Hypothecation

Inter-se Agreement

All the above agreement is Dt. 19.09.2001 and executed for the creation of single charge

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 246.000 millions

[Amount in Millions]
	SBI	PNB
Export Packing Credit Hypothecation of stocks and goods	62.500	59.375
Foreign Bills Purchased / discounted	62.500	59.375
Maximum [1] + [2]	125.000	95.000
Letter of Credit	--	20.00
Bank of Guarantee	5.000	1.000
Maximum [3] + [4]	5.000	21.000
Total	130.000	116.000

Inter-se flexibility within the overall fund based limit of Rs. 95 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 whole of current assets of the borrower namely stock of raw materials, stocks in process, semi – finished goods, stores and spares not relating to plant & machinery [Consumable stores & spares, bills receivable and book debts and all other movables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to

time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the borrowers factories, premises and godowns situate at G – 48, Gems & Jewellery Complex, Seepz, Andheri [East], Mumbai – 400096 in the State of Maharashtra or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order of delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution and addition

4) Gist of the terms and conditions and extent and operation of the charge.

ROI

1. Packing Credit Limit :

10% p.a. * up to 180 days

13% p.a. * beyond 180 days up to 270 days

2. Foreign Bills Purchased / Discounting Limit

9.5% p.a. * up to NTP / 45 days

10% p.a. * beyond 45 days up to 90 days

12% p.a. * beyond 90 days up to 180 days

25% p.a. * beyond 180 days

* OR at such other rates as may be notified by the consortium banks or Reserve Bank of India from time to time

5) Name and Address and description of the person entitled to the charge.

1. State Bank of India

SEEPZ Branch, Andheri [East], Mumbai – 400096

2. Punjab National Bank

SEEPZ Branch, Andheri [East], Mumbai – 400096

6) Date and brief description of instrument modifying the charge

Not Applicable

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.

Not Applicable

Name of the company

INTERNATIONAL GOLD COMPANY LIMITED

Presented By

State Bank of India

Seepz Branch, Andheri (East), Mumbai – 400 096, Maharashtra, India

1) Date and description of instrument creating the change

a) General Agreement for the grant of small industrial advances and hypothecation of movables, book debts and other assets.

b) Ancillary Agreement No. 1

c) Ancillary Agreement No. 3

d) Ancillary Agreement No. 6

All the above agreements are dated 22.03.2000 and executed for the creation of a single charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 83.500 millions

Particulars	Rs. in Millions
Export Packing Credit	25.000
Post shipment Credit	37.500
Letter of Credit and Guarantees	21.000
Total	83.500

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

All present and future goods, book debts and all other movable assets including documents of titles to goods and other assets such as outstanding moneys, receivables, claims, bills, invoices, documents, contracts, engagement securities, investments and rights and the present and future machinery, Raw Material gold Platinum, findings, cut and polished diamonds, semi finished and finished jewellery, Export Receivables, Letter of Credit, Guarantees and hypothecation of entire plant and machinery.

4) Gist of the terms and conditions and extent and operation of the charge.

ROI 2% below SBAR min 10% per annum

Margin:

Raw Material and Semi Finished and finished Jewellery	10%
Export Receivables	25%
Letter of credit	10%
Guarantees	10%

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Seepz Branch, Andheri (East), Mumbai – 400 096, Maharashtra, India

6) Date and brief description of instrument modifying the charge

a. Supplementary General Agreement for the grant of /small Industrial Advances and Hypothecation of Goods, Book Debts and other assets

b. Ancillary Agreement No. 1

c. Ancillary Agreement No. 3

d. Ancillary Agreement No. 6

e. Guarantee Agreement for small Industrial Advances

All the above agreements are dated 29.09.2000 and executed for the creation of a single modification.

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.

The original charge was created on 22.03.2000 for Rs. 8.500 millions. Now by the present modification dated 29.09.2000 the limit increased by Rs. 79.000 millions making total to Rs. 162.500 millions are as under:

Nature of Facility	Rs. in Millions
Export Packing Credit	80.000
Post Shipment Credit	7.750
Guarantee	5.000
Total	162.500

Margin:

Raw Material, Semi Finished and Finished Jewellery	10%
Export Receivables	25%
Guarantee	10%

Other terms and conditions remain unchanged.

Corporate identity number (CIN) Foreign company registration number	L36911MH1994PLC081352
Name of the Company	INTERNATIONAL GOLD COMPANY LIMITED
Address	G – 48, Gems and Jewellery Complex, Seepz, Andheri (East), Mumbai – 400 096, Maharashtra, India
This form is for	Creation of Charge
Type of Charge	A charge on: Hypothecation
Particulars of the charge holder	State bank of India Seepz Branch, Andheri (East), Mumbai – 400 096, Maharashtra, India E-Mail: sbi03473@sbi.co.in
Nature or description of the instrument(s) creating or modifying the charge	Form No. C 2 Agreement of hypothecation of goods and assets. Form No. C 1 Agreement of loan overall limit Form No. C 5 Letter within the overall limit.
Date of the instrument creating or modifying the charge	01.11.2006
Amount secured by the charge	Rs. 30.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest: 2.75% Below SBAR (11.00%) i.e. Min 8.25 upto 90 days 1.50% below SBAR (11.00%) i.e. min 9.50% (for the period beyond 90 days) (b) Terms of Repayment Not required in the agreement (c) Margin: EPC: 10% Book Debts / Receivables 25% (d) Extent and operation of the charge: Not required in the agreement (e) Others: PSC-ADHOC – Rs. 30.000 millions All other terms ands conditions as per the sanctioned letter.
Short particulars of the property charged (including location of the property)	All present and future goods book debts and all other movable assets of the borrower including documents of title to the goods, outstanding moneys, receivables including receivables by way of cash assistance and/or cash incentives scheme or any other scheme claims incentives by way of refund of customs/excise duties under the duty drawback credit scheme.

Name of the company	INTERNATIONAL GOLD COMPANY LIMITED
Presented by	DIRECTOR – Nalin Rajguru
1) Date and description of instrument creating the change	Packing credit agreement (Hypothecation) dated 7^th March, 2000 executed by International Gold Company Limited hereinafter called the ‘Company’ in favour of Punjab National Bank
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 38.125 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	Hypothecation by way of charge of goods and merchandise including all products goods and movable property inclusive of goods / raw materials purchased / to be purchased and belonging to the company which are brought in / stored in or about the premises, godowns or be in transit, stock in process, finished goods comprising rough, cut & polished diamonds, gold, plain and studded jewellery & platinum jewellery and import documents and any other security acceptable by shareholders of Punjab National Bank
4) Gist of the terms and conditions and extent and operation of the charge.	Margin 10% Interest @ 10% p.a. or such rate as may be fixed by the bank from time to time
5) Name and Address and description of the person entitled to the charge.	Punjab National Bank SEEPZ Branch, Andheri [East], Mumbai – 400096
6) Date and brief description of instrument modifying the charge	Packing Credit Agreement (Hypothecation) dated 16.11.2000
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.	Packing Credit Limit enhanced from Rs. 38.125 Millions to Rs. 52.500 Millions.

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. 39.43
UK Pound	1	Rs. 81.35
Euro	1	Rs. 57.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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.	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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