MIRA INFORM REPORT

Report Date :

05.12.2011

IDENTIFICATION DETAILS

Name :	SARIN TECHNOLOGIES INDIA PRIVATE LIMITED
Registered Office :	Sanox Centre, Ground Floor, Mani Mahal, 11/21, Mathew Road, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	22.03.2004
Com. Reg. No.:	11-145225
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U74210MH2004PTC145225
TAN No.: [Tax Deduction & Collection Account No.]	MUMS38206A
PAN No.: [Permanent Account No.]	AAHCS9683F
Legal Form :	Private Limited Liability Company
Line of Business :	Developer and Manufacturer of Technological Equipment and Software to the Diamond Industry.
No. of Employees :	(Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 480000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Sanox Centre, Ground Floor, Mani Mahal, 11/21, Mathew Road, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-66555555/ 56555513/ 56555555/56555566
Fax No.:	91-22-66655566
E-Mail :	Taruna@sarinindia.com sarin@rarinindia.com

DIRECTORS

As on 30.06.2011

Name :

Mr. Daniel Benjamin Glilnert

Designation :

Director

Address :

Meshek 41, Moshave Ben Shemen, Israel – 73115

Date of Birth/Age :

20.02.1951

Date of Appointment :

22.03.2004

DIN No.:

01942059

Name :

Ms. Uzi Yosef Levami

Designation :

Director

Address :

26 Galgal Hamazalot ST. Hod Sharon, Israel

Date of Birth/Age :

25.12.1951

Date of Appointment :

27.05.2009

DIN No.:

02607220

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74210MH2004PTC145225	Sarin Technologies India Private Limited	Director	30/09/2009	27/05/2009	-	Active	NO

Name :

Mr. Eyal Mashiah

Designation :

Director

Address :

1 Meidor Yaakov ST. Petah Tiqwa, Israel

Date of Birth/Age :

27.11.1960

Date of Appointment :

27.05.2009

DIN No.:

02601243

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74210MH2004PTC145225	Sarin Technologies India Private Limited	Director	30/09/2009	27/05/2009	-	Active	NO

Name :

Mr. David Block

Designation :

Director

Address :

30, Gilad Apartment 44864, Cochav Yair, Israel

Date of Birth/Age :

06.05.1974

Date of Appointment :

29.04.2011

DIN No.:

03431581

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74210MH2004PTC145225	Sarin Technologies India Private Limited	Director	30/06/2011	29/04/2011	-	Active	NO

KEY EXECUTIVES

Name :	Oded Ben Shmuel
Designation :	Manager
Address :	Flat No. 2801, 28^th Floor, Avarsekar Heights, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	04.03.1975
Date of Appointment :	01.04.2010
Income Tax PAN No.:	AXIPB0418L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares
Sarin Technologies Limited, Israel	10000
Sarin Colour Technologies Limited, Israel	1
Total	10001

Equity Share Break up (Percentage of Total Equity)

As on 30.06.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Developer and Manufacturer of Technological Equipment and Software to the Diamond Industry.
Products :	Services and Annual Maintenance Contracts

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
Address :	Lodha Excelus, 1^st Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India
Tel. No.:	91-22-39986000
Fax No.:	91-22-39986000
PAN.:	AADFB6889R
Holding Company :	Sarin Technologies Limited
Fellow Subsidiaries :	Galatea Limited, Israel

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10001	Equity Shares	Rs.10/- each	Rs.0.100 Million

Note :

Of the above shares, 99.99% are held by Sarin Technologies Limited, Israel, the holding company and balance by its nominee.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		121.049	77.470	58.465
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		121.149	77.570	58.565
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES
TOTAL		121.149	77.570	58.565
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		63.531	42.761	7.065
Capital work-in-progress		6.252	0.000	0.208
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.725	1.684	2.829
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.623	0.937	11.021
	Sundry Debtors	33.512	43.238	36.711
	Cash & Bank Balances	63.793	36.944	29.594
	Other Current Assets	23.239	11.111	22.288
	Loans & Advances	10.387	9.738	8.819
Total Current Assets		133.554	101.968	108.433
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.899	26.590	27.570
	Other Current Liabilities	37.828	37.418	20.672
	Provisions	19.186	4.835	11.728
Total Current Liabilities		84.913	68.843	59.970
Net Current Assets		48.641	33.125	48.463
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		121.149	77.570	58.565

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	276.733	155.038	148.035
		Other Income
		TOTAL	276.733	155.038	148.035
Less	EXPENSES
		Office Expenses	192.661	113.318	96.286
		Administrative Expenses
		Advertising Expenses
		TOTAL	192.661	113.318	96.286
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		84.072	41.720	51.749
Less/ Add	DEPRECIATION/ AMORTISATION		17.532	6.821	1.862
	PROFIT BEFORE TAX		66.540	34.899	49.887
Less	TAX		22.961	15.894	17.878
	PROFIT AFTER TAX		43.579	19.005	32.009
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		74.470	55.465	23.456
	BALANCE CARRIED TO THE B/S		118.049	74.470	55.465
	EARNINGS IN FOREIGN CURRENCY
		Service Charges	58.512	46.217	70.646
	TOTAL EARNINGS		58.512	46.217	70.646
	IMPORTS
		Purchase of traded goods	4.377	1.657	2.971
		Purchase of Plant and Machinery	25.809	36.534	0.370
	TOTAL IMPORTS		30.186	38.191	3.341
	Earnings Per Share (Rs.)		4357.00	1900.00	3201.00

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	15.74	12.26	21.62
Return on Total Assets (PBT/Total Assets}	(%)	33.76	24.11	43.19
Return on Investment (ROI) (PBT/Networth)		0.54	0.44	0.85
Debt Equity Ratio (Total Liability/Networth)		0.70	0.88	1.02
Current Ratio (Current Asset/Current Liability)		1.57	1.48	1.81

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

The Company was incorporated on 22 March 2004 as a subsidiary of Sarin Technologies Limited, Israel (“Sarin Israel” of “the holding company”)

The Company’s principal activity is to render pre-sale and post-sale technical support services in connection with machinery equipment, tools, accessories, equipment products, parts and materials to the customers of Sarin Israel engaged in the diamond, gem and jewellery industry in India. The Company’s principal places of business in India are at Mumbai and Surat. The Company also provides services in the nature of diamond scanning and laset sawing with help of state-of-the-art scanning machines. Further, the Company also trades in spares parts imported from its holding company.

FIXED ASSETS

· Leasehold Improvement

· Office Equipment

· Plant and Machinery

· Computers

· Furniture and Fixtures

· Vehicles

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.51.35
UK Pound	1	Rs.80.51
Euro	1	Rs.69.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	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
-	NB	New Business	-

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.