MIRA INFORM REPORT

Report Date :

15.07.2011

IDENTIFICATION DETAILS

Name :	SANGHAVI JEWEL PRIVATE LIMITED
Registered Office :	402, Mehta Mahall, 15, Mathew Road, Charni Road, Mumbai-400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.02.2005
Com. Reg. No.:	11-151449
Capital Investment/ Paid-up Capital:	Rs. 49.000 Millions
CIN No.: [Company Identification No.]	U36910MH2005PTC151449
TAN No.: [Tax Deduction & Collection Account No.]	MUMS48165F
PAN No.: [Permanent Account No.]	AAICS7624R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamond Studded Gold Jewellery.
No. of Employees:	Approximately 550

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

INFORMATION PARTED BY

Name :	Mr. Chitranjan
Designation :	Finance Manager
Contact No.:	91-22-66487198
Date :	15.07.2011

LOCATIONS

Registered Office :	402, Mehta Mahall, 15, Mathew Road, Charni Road, Mumbai-400004, Maharashtra, India
E-Mail :	jog.aabid@gmail.com rajan@sanghaviseapz.com
Area :	Owned
Factory :	Plot No. GJ-01, Seepz++, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India
Tel. No.:	91-22-66487000
Fax No.:	91-22-28291956/ 23632033
E-Mail :	marketing@sanghaviseepz.com ranjan@sanghaviseepz.com mgassociates@vsnl.com aabid.jog@gmail.com
Area :	70000 sq.ft (Owned)

DIRECTORS

As on 29.09.2010

Name :	Mr. Chandrakant Ravhandbhai Sanghavi
Designation :	Director
Address :	25/252, Pariki Plot No. 1, Behind Tribhuvan Complex, Athwalines, Surat-395007, Gujarat, India
Date of Birth/Age :	06.12.1951
Date of Appointment :	16.02.2007
DIN No.:	00392409
Name :	Mr. Ketankumar Kantilal Sanghavi
Designation :	Director
Address :	1301, Walkeshwar, Chandanbala RR Thakker Marg, Opposite Ridge Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	01.06.1968
Date of Appointment :	21.02.2005
DIN No.:	00794060
Name :	Mr. Rameschandra Ravchandbhai Sanghavi
Designation :	Director
Address :	3, Sanghavi Bunglow, Near Indoor Stadium, Tribuvan Complex, Ghod Dod Road, District Surat-395002, Gujarat, india
Date of Birth/Age :	29.08.1949
Date of Appointment :	01.04.2005
DIN No.:	00813863
Name :	Mr. Kirtilal R Sanghavi
Designation :	Director
Address :	SY No. 2369/ 7 2369/ 8 EP 251 252 PAIY, Plot 4 B / H Tribhuvan Somplex, Athwalines, Surat-395002, Gujarat, India
Date of Birth/Age :	02.11.1947
Date of Appointment :	01.04.2005
DIN No.:	01037677
Name :	Mr. Vasantlal R Sanghavi
Designation :	Chairman cum Managing Director
Address :	19, Kailesh Niketan, 24 LD Ruparel Marg, Walkeshwar, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	15.10.1946
Date of Appointment :	21.02.2005
Date of Ceasing:	16.05.2009
DIN No.:	01037517

KEY EXECUTIVES

Name :	Mr. Chitranjan
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Sanghvi Exports International Private Limited	4460000
Vasanmtlal Sanghavi	1000
Vasantlal Sanghavi (HUF)	334000
Kirtilal Sanghavi (HUF)	35000
Chandrakant Sanghavi (HUF)	35000
Ramesh Sanghavi	35000
Total	4900000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies Corporate (not mentioned above)	99.98
Directors or relatives of directors	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Diamond Studded Gold Jewellery.
Exports :
Products:	Diamond Studed Gold Jewellery
Countries :	USA
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Actual Production
Studded Jewellery
Gold	Quantity in pieces	276239
Silver	Quantity in pieces	171134
Platinum	Quantity in pieces	703

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

Approximately 550

Bankers :

• Bank of India and Other Two Banks, Seepz Branch, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India
• Union Bank of India, Overseas Branch, Seepz++, Unit No. 007, Block No. II, Seepz++ Complex, Marol Industrial Area, Andheri (East), Mumbai-400096, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Working Capital Facilities
Packing Credit (Foreign Currency Tied up)	418.193	143.014
Packing Credit (Rupee Tied up)	157.584	398.887
Post Shipmpent Credit (Foreign currency Tied up)	63.570	64.752
Post Shipment Credit (Rupee Tied up)	53.093	52.452
(Secured by hypothecation by way of first charge on the company’s current assets, both present and future, on a pari passu basis and by way of second charge on the companies fixed assets both present and future except for leasehold land) Note: The above loans are further secured by way of personal guarantee of the directors as well as by way of corporate guarantee of the Holding Company.
Term Loan (Foreign Currency Tied up) (Secured by way of first charge on all fixed assets, except leasehold of the company, both present and future) (Amount repayable within one year Rs. 10.874 Millions previous year Rs. 36.098 Millions)	10.874	48.346
Vehicles Loan (Secured by hypothecation of vehicle purchased thereunder) (Amount repayable within one year Rs. Nil previous year Rs. 0.211 Million)	0.000	0.211
Total	703.314	707.662
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Directors	0.058	0.058
Shareholders	60.325	60.325
Total	60.383	60.383

Banking Relations :	--
Auditors :
Name :	M A Parikh and Company Chartered Accountant
Address :	Yusuf Building, 2^nd Floor, 43, Mahatma Gandhi Road, Fort, Mumbai-400001, Maharashtra, India
Tel Mo.:	91-22-22043850
Fax No.:	91-22-22874524
E mail:	maparikh@eth.net
Holding Company:	Sangavi Exports International Private Limited U36911MH2007PTC170013
Parent Company:	Prasad Chembers 502, Opera House, Charni Road, Mumbai, Maharashtra, India
Fellow Subsidiaries/ Associates/ Concerns in which Directors of the company have significant influence:	Sanghavi Diamond Inc (N.Y) Snghavi Diamond Inc. (L.A.) Sanghavi Diamonds Private Limited, Mumbai Sanghavi Jewel Tokyo Company Limited Sanghavi Star Retail Private Limited Chandrakant R Sanghavi (HUF) Kirtilal R Sanghavi (HUF) Ramesh R Sanghavi (HUF)
Associates/Subsidiaries :	Sanghavi Export International Private Limited Address: Opera House, Mumbai, Maharashtra, India Line of Business: Manufacturer and Exporter of Polished Diamonds

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4900000	Equity Shares	Rs. 10/- each	Rs. 49.000 Millions

Note:

Out of the above 4460000 (4460000) Equity Shares are held by the Holding Company, Sanghavi Exports International Private Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		49.000	49.000	49.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		529.027	510.965	425.447
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		578.027	559.965	474.447
LOAN FUNDS
1] Secured Loans		703.314	707.662	874.470
2] Unsecured Loans		60.383	60.383	60.383
TOTAL BORROWING		763.697	768.045	934.853
DEFERRED TAX LIABILITIES		12.338	13.422	24.089
TOTAL		1354.062	1341.432	1433.389
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		207.286	214.492	225.522
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	641.656	518.732	683.967
	Sundry Debtors	990.349	1276.648	1106.360
	Cash & Bank Balances	189.901	120.580	153.438
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.766	31.398	21.877
Total Current Assets		1862.672	1947.358	1965.642
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	697.710	806.281	741.274
	Other Current Liabilities	12.889	10.698	13.291
	Provisions	5.297	3.439	3.210
Total Current Liabilities		715.896	820.418	757.775
Net Current Assets		1146.776	1126.940	1207.867
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1354.062	1341.432	1433.389

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Operating Income	1617.530	1822.056	2103.930
		Other Income	1.622	1.708	19.114
		TOTAL (A)	1619.152	1823.764	2123.044
Less	EXPENSES
		Raw Material Consumed	1371.334	1338.808	1696.211
		Stock Differential	[29.815]	70.589	[51.304]
		Employee Remuneration and other Benefits	84.163	92.803	104.431
		Operating and Administrative Expenses	111.886	165.721	117.954
		TOTAL (B)	1537.568	1667.921	1867.292
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		81.584	155.843	255.752
Less	FINANCIAL EXPENSES (D)		53.210	67.660	68.951
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.374	88.183	186.801
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.382	11.332	11.370
	PROFIT BEFORE TAX (E-F) (G)		16.992	76.851	175.431
Less	TAX (H)		[1.069]	[8.667]	15.676
	PROFIT AFTER TAX (G-H) (I)		18.061	85.518	159.755
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		467.815	382.297	222.542
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		485.876	467.815	328.297
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1603.250	1814.413	2098.930
	TOTAL EARNINGS		1603.250	1814.413	2098.930
	IMPORTS
		Raw Materials	1005.777	645.597	798.928
		Consumables	9.959	8.658	7.064
		Capital Goods	3.760	0.210	0.000
	TOTAL IMPORTS		1019.496	654.465	805.992
	Earnings Per Share (Rs.)		3.69	17.45

Particulars	31.03.2011
Sales Turnover (Approximately)	1710.000

Expected Sales (2011-2012) : Rs. 2000.000 Millions

The above information has been parted by Mr. Chitaranjan (Finance Manager)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.12	4.69	7.52
Net Profit Margin (PBT/Sales)	(%)	1.05	4.22	8.34
Return on Total Assets (PBT/Total Assets}	(%)	0.82	3.55	8.01
Return on Investment (ROI) (PBT/Networth)		0.03	0.14	0.37
Debt Equity Ratio (Total Liability/Networth)		2.56	2.84	3.57
Current Ratio (Current Asset/Current Liability)		2.60	2.37	2.59

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	697.710	806.281	741.274

Background:

The Company incorporated on 21^st February, 2005 during the financial year ended 31^st March 2005, has set-up an industrial undertaking at special Economic Zone, Mumbai for manufacture and export of studded jewellery. The commercial production thereat had commenced, effective 3^rd June, 2005. This is the fifth year of operation.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36910MH2005PTC151449
Name of the company	SANGHAVI JEWEL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	402, Mehta Mahall, 15, Mathew Road, Charni Road, Mumbai-400004, Maharashtra, India
This form is for	Creation of Charge
Type of charge	Movable Property Others
Particular of charge holder	Union Bank of India, Overseas Branch, Seepz++, Unit No. 007, Block No. II, Seepz++ Complex, Marol Industrial Area, Andheri (East), Mumbai-400096, Maharashtra, India
Nature of instrument creating charge	D.P. Note and Letter of Hypothecation of Bills Packing Credit Agreement (Both the above Agreements constitutes a single charge)
Date of instrument Creating the charge	08.11.2010
Amount secured by the charge	Rs. 20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1.50% over UBI Base Rate with a minimum of 10% per annum with monthly rests for FDBP/FUDBP/AFDBC facility and Bare Rate + 1.25% i.e. presently 9.75% p.a. with monthly rests for packing credit facility. Terms of Repayment On Demand Margin As per sanction Terms Extent and Operation of the charge To secure Adhoc FDBP/FUDBP/AFDBC facility of Rs. 20.000 Millions W/W packing credit facility of Rs. (20.000 Millions) granted by the Bank to the company.
Short particulars of the property charged	Purchase form or negotiate a Bill or Bills of Exchange drawn or accepted or endorsed against goods and / or merchandise (hereinafter referred to as goods) or shipping or other documents and / or hold such or any other bills or bills or exchange and / or documents for collection on borrower’s account under lien the Bank. The Borrower hereby Hypothecates and created in favour of the Bank by way of First Charge: All those Movable Properties of the Borrower meant or intended for export of goods, such as Gold, Silver, Platinum, Diamond, Precision Stones, Alloys, Consumable and stock in trade including Raw Materials, Semi Finished goods and Finished goods and / or any other goods meant, intend or being manufactured for export lying in the factory or stored at the Borrower’s factory or in sheds whether situate in the main factory shed or godowns at Seepz, Andheri or at shed/ godowns hired by the borrower for storage wherever situate and / or in transit.

Name of the company

SANGHAVI JEWEL PRIVATE LIMITED

Presented By

Bank of India and Other Two Banks, Seepz Branch, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India

1) Date and description of instrument creating the change

Agreement of Hypothecation of Plant and Machinery, Stocks and Book Debts dated 20^th July, 2005

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

Fund Based Limit	Rupees in Millions
(i) Export Packing Credit	62.500
(ii) Gold Loan	30.000
Maximum (i) + (ii)	62.500
(ii) FBP/FBN OD Against FOBC	62.500
Total Limit (i) + (ii) + (iii)	125.000
(iv) Inland Guarantee	10.000
Total (i) to (iv)	135.000

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

Bank of Inida, Seepz Branch, Mumbai have sanctioned the aforesaid various Credit Facilities to the Company (the borrower)

(i) By hypothecating all tangible movable Machineries and Plants both present and future. Namely: all types of machines including Automatic and Semi Automatic Diamond Cutting, Polishing and Setting Machines, Dust Collectin Electroplating Machines, Lazor Welding Machines, Tool Room Machines, CAD/ Cam Model Making Machines, Air Cleaning Systems, Air Compressors, Waz Injectors, Vaccum Wax Injectors, Sand Blasting Systems, Air Dryers, Dye Making Machines, Electric Motors, Hot Plates, Air Coolers, Vucanisers, Injection Systems, Mixing Grinding, Melting Machines, Castin Machines, jigs Dyes, and Toools, Welding Machines, Office Equipments, Furniture and Fixtures, Air Conditioners, Computers, Printers, Electrical Installation, Factory Equipments, Refrigerators, Vehicles, and all other types of Machines required for manufacturing of Gold Jewellery and studed Jewellery, as specified inPart A of Schedule II of the Agreement.

(ii) All tangible movable properties and assets both present and future :- namely all stocks of raw material :- Gold, Silver, Diamonds, Findings, Precious and Semi Precious Stones, Alloys. Mounting and Samples, Rubber Moulds, Plaster of Paris and all other Raw Maeterials, Work –in-progress, Finished Goods, Ornaments, Jewellery etc . as specified in Part B fo the Schedule II or the Agreement

(iii) All the present and future book-debts, outstanding, moneys receivables, claims, bill which are now due and owing to the borrower in the course of business.

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

(1) The Interest/ Commission payable on the various Facilities are as applicable form time to time.

(2) The Borrower shall keep and maintain such margin of security in favour of the bank.

i) 25% against raw material, finished goods

ii) 25% against stores

iii) 25% against goods in process

iv) NIL against Book Debts outstanding of 2 or 3 moths

(3) the other term and conditions are stipulated in the Agreement

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

Bank of India and Other Two Banks, Seepz Branch, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India

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

This form is for

Modification of charge

Charge identification number of the modified

80012857

Corporate identity number of the company

U36910MH2005PTC151449

Name of the company

SANGHAVI JEWEL PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Plot No. GJ-01, Seepz++, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India

Type of charge

Book Debts

Movable Property

Others

Particular of charge holder

Bank of India and Other Two Banks, Seepz Branch, Seepz, Andheri (East), Mumbai-400096, Maharashtra, India

Nature of description of the instrument creating or modifying the charge

1) Second Supplemental Joint deed of Hypothecation

Date of instrument Creating the charge

15.02.2008

Amount secured by the charge

Rs. 910.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As per Agreement Attached and as per Sanctioned Letter of The Bank

Terms of Repayment

As per Agreement attached and as per sanction letter of the bank

Margin

As per Agreement attached and as per sanction letter of the bank

Extent and Operation of the charge

First Pari passu charges as per agreement attached as per sanction letter of the bank

Bank	Limit (Rs. In Millions
Bank of India	560.000
Union Bank of In dia	200.000
State Bank of Patialal	150.000
Total	910.000

Others

As Stipulated by Bank form time to time and as per agreement attached and as per sanction letter of the bank

Short particulars of the property charged

First Pari passu charge (present and future) (1) Hypothecation of whole of the current assets i.e. all types of stocks, goods, inventories and spares, bills receivables and book debts.

Date of latest modification prior to the present modification

29.12.2006

Fixed Assets:

· Leasehold Land

· Factory Building

· Plant and Machinery

· Electrical and Other Installation

· Office Equipment

· Furniture and Fixture

· Vehicles

· Computer

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.44.53
UK Pound	1	Rs.71.80
Euro	1	Rs.63.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.