MIRA INFORM REPORT

Report Date :

01.02.2008

IDENTIFICATION DETAILS

Name :	SHRI LAXMI INFOSOLUTION AND JEWELS PRIVATE LIMITED
Registered Office :	SDF – I Unit L No. 20 and 24, Seepz Sez, Andheri (East), Mumbai – 400 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.07.2000
Com. Reg. No.:	11-127850
CIN No.: [Company Identification No.]	L72900MH2000PLC127850
TAN No.: [Tax Deduction & Collection Account No.]	MUMS44399F
PAN No.: [Permanent Account No.]	AABCD4084D
Legal Form :	Private Limited Liability Company
Line of Business :	Marketer and Developer of Information Technology Products and Services, Software and Hardware Systems.

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profit margin is under pressure. Payments are usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office /Factory :	SDF – I Unit L No. 20 and 24, Seepz Sez, Andheri (East), Mumbai – 400 005, Maharashtra, India
Tel. No.:	91-22-28291515
Fax No.:	91-22-28291515
E-Mail :	laxmidia@bom3.vsnl.net.in account@laxmijewel.com
Location :	Leased

DIRECTORS

Name :	Mr. Lalit Kanodia
Designation :	Director
Address :	1201, Red Rose, CHS Limited, 44 Pockhand Wala Road, Worli, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	03.03.1941
Date of Appointment :	21.07.2001
Name :	Mr. Ashokbhai Haribhai Gajera
Designation :	Director
Address :	31, Kalpavruksh Apartment, 27, B G Kher Marg, Walkeshwar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	01.06.1965
Date of Appointment :	20.05.2004
Name :	Mr. Nitin Bhai Chunibhai Gajera
Designation :	Director
Address :	49-50, Vishnu Nagar Society, New A K Road, Surat – 395 008, Gujarat, India
Date of Birth/Age :	11.06.1984
Date of Appointment :	12.05.2006
Name :	Mr. Vasanthbhai Haribhai Gajera
Designation :	Director
Address :	1 Vrushal Nagar Society, Near Katargam Police Station, Katargam, Surat – 395 004, Gujarat, India
Date of Birth/Age :	01.06.1954
Date of Appointment :	20.05.2004
Name :	Mr. Chunibhai Haribhai Gajera
Designation :	Director
Address :	49-50, Vishnu Nagar Society, New A K Road, Surat – 395 008, Gujarat, India
Date of Birth/Age :	05.07.1960
Date of Appointment :	20.05.2004
Name :	Mr. Rakesh Girdharbhai Gajera
Designation :	Director
Address :	31, Kalpavruksha, 27, B G Kher Marg, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	14.05.1982
Date of Appointment :	11.03.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Samrat Choksi		2500
Mr. Shailesh Gajera		2500
Mr. Babubhai Patel		2500
Mrs. Champaben Vasantbhai Gajera		42500
Mr. Vasantbhai Haribhai Gajera		50000
Mr. Nitinbhai Chunibhai Gajera		50000
Mr. Chunibhai Haribhai Gajera		50000
Mr. Ashokbhai Haribhai Gajera (as a partner of Laxmi Diamond)		250000
Mr. Ashokbhai Gajera		50000
	Total	500000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :

Marketer and Developer of Information Technology Products and Services, Software and Hardware Systems.

GENERAL INFORMATION

No. of Employees :

About 250

Bankers :

Punjab National Bank

Address: Offshore Banking Unit, SEEPZ, Andheri (East), Mumbai – 400 096, Maharashtra, India

UNSECURED LOANS	31.03.2005 (Rs. in millions)	31.03.2004 (Rs. in millions)
From Directors
Shri Ashokbhai H Gajera	6.000	0.000
Shri Chunibhai H Gajera	8.500	0.000
Shri Vasantbhai H Gajera	20.200	0.000
From Others	0.000	0.200
Total	34.700	0.200

Banking Relations :

Satisfactory

Auditors :

Name :

Dinesh Gandhi And Associates

Chartered Accountants

Address :

127, Panchratna, Opera House, Mumbai – 400 004, Maharashtra, India

Associates/Subsidiaries :

Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.716	0.000	0.000
4] (Accumulated Losses)		0.000	[0.923]	[1.246]
NETWORTH		13.716	4.077	3.754
LOAN FUNDS
1] Secured Loans		12.425	0.000	0.000
2] Unsecured Loans		38.700	34.700	0.200
TOTAL BORROWING		51.125	34.700	0.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		64.841	38.777	3.954
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.536	0.707	1.254
Capital work-in-progress		0.000	26.463	0.000
INVESTMENT		12.000	12.000	12.000
DEFERREX TAX ASSETS		0.967	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.268	6.930	0.000
	Sundry Debtors	60.081	0.929	1.538
	Cash & Bank Balances	10.986	9.635	0.873
	Other Current Assets	1.569	0.290	1.935
	Loans & Advances	0.590	0.005	0.039
Total Current Assets		94.494	17.789	4.385
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	76.901	20.852	13.747
	Provisions	0.255	0.000	0.000
Total Current Liabilities		77.156	20.852	13.747
Net Current Assets		17.338	[3.063]	[9.362]
MISCELLANEOUS EXPENSES		0.000	2.670	0.062
TOTAL		64.841	38.777	3.954

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		102.454	0.391	6.362
Other Income		15.153	0.219	0.295
Total Income		117.607	0.610	6.657
Profit/(Loss) Before Tax		8.927	0.323	[0.650]
Provision for Taxation		[0.712]	0.000	0.000
Profit/(Loss) After Tax		9.639	0.323	[0.650]
Export Value		102.454	0.391	6.362
Import Value		0.000	0.000	0.000
Expenditures :
	Raw Material Consumed	80.209	0.000	0.000
	Administrative and Other expenses	0.000	0.000	7.041
	Preliminary Expenses w /off	0.000	0.000	0.030
	Consumption of stores and spares parts	3.015	0.000	0.000
	Increase/(Decrease) in Finished Goods	[2.354]	0.000	0.000
	Salaries, Wages, Bonus, etc.	9.899	0.196	0.000
	Payment to Auditors	0.139	0.000	0.000
	Interest	0.647	0.002	0.028
	Insurance Expenses	0.013	0.006	0.000
	Power & Fuel	4.405	0.000	0.000
	Depreciation & Amortization	5.977	0.076	0.208
	Other Expenditure	6.727	0.005	0.000
Total Expenditure		108.677	0.285	7.307

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	8.19	52.95	[9.76]
Net Profit Margin (PBT/Sales)	(%)	8.71	82.60	[10.21]
Return on Total Assets (PBT/Total Assets}	(%)	6.91	1.74	[11.52]
Return on Investment (ROI) (PBT/Networth)		0.65	0.07	[0.17]
Debt Equity Ratio (Total Liability/Networth)		9.35	13.62	3.71
Current Ratio (Current Asset/Current Liability)		1.22	0.85	0.31

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Corporation identity number or foreign company registrations number of the company	L72900MH2000PLC127850
Name of the company	SHRI LAXMI INFOSOLUTIONS AND JEWELLARY LIMITED
Address	SDF – I Unit LNO 20 and 24, Seepz Sez, Andheri (East), Mumbai – 400 005, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	· Book Debts · Floating Charge
Particular of the charge holder	Punjab National Bank Address: Off Shore Banking Unit, Seepz , Andheri (East), Mumbai – 400 096, Maharashtra, India Email ID: anilahuja@pnboffshore.com
Nature or description of the instrument creating charge	· Packing Credit Agreement (hypothecation) · Agreement of hypothecation of Book Debts · FABC / FAUBC Limits of USD 258000
Date of the instrument creating charge	22.09.2006
Amount Secure by the charge	Rs. 30.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: Rate of Interest are payable for packing Credit and Book Debts – 6 months LIBOR + 2.50% per annum or at such other rate as may be fixed from time to time by the bank Terms of Repayment: On Demand Margin: The borrower has to keep and maintain Margin of 10% of the value of the security offered to the Bank Extent and operation of the charge Punjab National Bank, Offshore Banking Unit , Seepz, Mumbai have enhanced the facilities as under · Packing Credit facilities enhanced from USD 227000 to USD 387000 · Book debts Facilities from USD 113500 to USD 258000 (Equivalent to Enhanced the limits from Rs. 15.000 millions to Rs. 30.000 millions).
Short particulars of the Property charged	· For Packing credit facility, Hypothecation of raw materials, stock in process, finished goods, comprising gold platinum, plain and studded Jewellery, precious and semi precious stones, rough and cut and polished diamonds packing materials , consumables, etc lying at the factory at unit No. 20 /24 , SDF I, in Seepz , Andheri (East), Mumbai – 400 096 or at any other location. · All present and future book debts, outstanding , money receivables, claims, bills, contracts, etc.
Particulars of the present modification	By the present 1^st Modification , Punjab National Bank, Offshore Banking unit, Seepz, Mumbai have enhanced the facilities as under: · Packing Credit facilities enhanced from USD 227000 to USD 387000 · Book debts Facilities from USD 113500 to USD 258000 (Equivalent to Enhanced the limits from Rs. 15.000 millions to Rs. 30.000 millions).

Name of the company	SHRI LAXMI INFOSOLUTION AND JEWELS PRIVATE LIMITED
Presented By	Punjab National Bank, Offshore Banking Unit, Mumbai
1) Date and description of instrument creating the change	Packing Credit Agreement (hypothecation) dated 10th May 2005 FABC / FAUBC dated 10^th May, 2005 Agreement of hypothecation of book Debts dated 10^th May 2005 (all the three documents constitute a single Charge)
2) Amount secured by the charge/amount owing on the securities of charge	A) Packing Credit facility -US Dollar 227000/- B) FABC / FAUBC Limit -US Dollar 113500/- Book Debts Limit - US Dollar 113500/- Maximum Ceiling -US Dollar 113500/- Total Limit (A + B) -US Dollar 340500/-
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	Punjab National Bank, Offshore Banking Unit, Mumbai have sanctioned the aforesaid limits to the company · By hypothecation of Raw materials, Stock in process, finished goods comprising Gold, Platinum, Plain and Studded Jewellery, precious Stones, Rough and Cut and Polished Diamonds, Packing Materials, consumables, etc lying at the factory at Unit no. 20/24, SDF I, in Seepz, Andheri (East), Mumbai – 400 096, or at any other location as mentioned in the Schedule of security and Margin for packing Credit advances of US Dollar 227000/- from time to time. · To purchase, Collect and / or discount clean or documentary bills from time to time duly drawn or endorsed in favour of the Bank for FABC / FAUBC Limit of USD Dollar 113500/- · All the Company’s present and future book debts, outstanding decrees, money, receivable, claims, bills, contracts, engagement, securities, investments, rights, and other Movable assets shall be hypothecated to the Bank by way of first charge as a continuing Security to the Bank. · The maximum Ceiling for FABC / FAUBC Limit and Book Debts Limit shall not exceed US Dollar 113500/- at any point of time.
4) Gist of the terms and conditions and extent and operation of the charge.	· The Company shall not except with the previous written consent of the bank, sell or dispose of in any manner the hypothecated Assets or any part thereof. They are its absolute property and such assets are free from any prior charges or mortgage, hypothecation, pledge, charge lien, or encumbrance affecting the hypothecated goods or any part thereof. · The interests for the packing credit facility @ 6 months LIBOR +2.00 % per annum or at such other rate as may be fixed by the bank from time to time If the Company fails to export the goods within the stipulated period of 180 days from the date of advance, it shall pay to bank from the very first day interest @2.00% above the normal rate of the Bank per annum. · The overdue interest fro FABC / FAUBC Limit at 2% p.a over and above contracted rate of interest of 6 months LIBOR + 2.00% p.a · All the security shall be insured by the company against fire risk and as and when required by the Bank against war, riot, and civil commotion risk and or any other description to the full market value with the insurance Company as approved by the bank. · The company hereby agreed that 10% Margin as agreed to for each Asset in the Schedule of Security for packing Credit facility shall always be maintained. · The other terms and conditions are stipulated in the agreements.
5) Name and Address and description of the person entitled to the charge.	Punjab National Bank Address: Offshore Banking Unit, SEEPZ, Andheri (East), Mumbai – 400 096, Maharashtra, India
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

FIXED ASSETS:

· Computers

· Furniture and Fixtures

· Electrical Fittings

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.39.39
UK Pound	1	Rs.78.40
Euro	1	Rs.58.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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

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