MIRA INFORM REPORT

Report Date :

24.06.2011

IDENTIFICATION DETAILS

Name :	KARP IMPEX LIMITED (TRF.)
Registered Office :	1411, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.04.1995
Com. Reg. No.:	11-158868 (New) 04-29133 (Old)
Capital Investment / Paid-up Capital :	Rs.50.000 millions
CIN No.: [Company Identification No.]	U27205MH1995PLC158868 U51100GJ1996PLC029133
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11083C
PAN No.: [Permanent Account No.]	AABCK1823F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Fancy Cut Diamond.
No. of Employees :	Approximately 400 (In office – 50, In factory – 350)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Jayesh Desai
Designation :	Accountant
Contact No.:	91-9892610258

LOCATIONS

Registered Office :	1411, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-40608850/ 40608888
Fax No.:	91-22-40608899
E-Mail :	karp@karpgroup.com
Website :	www.karpgroup.com
Location :	Owned
Factory :	8/ A, Lal Darwaja, Surat – 395 008, Gujarat, India
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Anil Bhikhabhai Virani
Designation :	Managing Director
Address :	51/ A, Laxmi Vilas, Jal Mayur CHS. Limited, 87, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	02.10.1958
Qualification :	B.Com
Experience :	Mr. Anil B. Virani, a Commerce Graduate has a wide experience of over 30 years in the Diamond Trade and is one of the principal promoters of the company. He grew up learning the trade from his father and in a very short period, has imparted new dimension to the diamond business.
Date of Appointment :	24.04.1995
DIN No.:	00279789
Name :	Mr. Kishor Bhikhabhai Virani
Designation :	Chairman and Director
Address :	Shanta Bhuvan, 66, Kumud Wadi, Bhavnagar – 364 002, Gujarat, India
Date of Birth/Age :	28.09.1956
Qualification :	B.E. Mechanical
Experience :	Mr. Kishor B. Virani having 30 years of experience has started his carrier in the Diamond Industry after completing B.E. Mechanical. He is the other principal Promoter of the company and his vision and technological proficiency has enabled the company to develop expertise in the fancy diamond cutting and polishing.
Date of Appointment :	24.04.1995
DIN No.:	00279641
Name :	Mr. Nirav A. Virani
Designation :	Whole Time Director
Address :	51/ A, Laxmi Vilas, Jal Mayur CHS. Limited, 87, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	10.07.1984
Qualification :	BBA
Date of Appointment :	05.12.2005
DIN No.:	00151196
Name :	Mr. Kailash Anil Virani
Designation :	Whole Time Director
Address :	51/ A, Laxmi Vilas, Jal Mayur CHS. Limited, 87, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	30.10.1958
Date of Appointment :	24.04.1995
DIN No.:	01147455
Name :	Mr. Keval Kishore Virani
Designation :	Whole Time Director
Address :	51/ A, Laxmi Vilas, Jal Mayur CHS. Limited, 87, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	30.09.1983
Qualification :	M. Tech.
Date of Appointment :	05.12.2005
DIN No.:	01734130
Name :	Mrs. Neelaben Kishore Virani
Designation :	Whole Time Director
Address :	Shanta Bhuvan, 66, Kumud Wadi, Bhavnagar – 364 002, Gujarat, India
Date of Birth/Age :	05.09.1957
Date of Appointment :	24.04.1995
DIN No.:	01585711
Name :	Mr. Romesh Dutt Kalia
Designation :	Director
Address :	401, Shanti Shilap, Sanskar Mandal Chowk, Bhavnagar – 364 001, Gujarat, India
Date of Birth/Age :	14.02.1942
Date of Ceasing :	31.03.2008

KEY EXECUTIVES

Name :	Mr. Jayesh Desai
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Anil B. Virani	2450000
Kishor B. Virani	2450000
Neela K. Virani	49000
Ashwin G. Kukadia	1000
Kailash A. Virani	49000
Pinal K. Virani	500
Ashmi R. Mody	500
Total	5000000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Directors or relatives of directors	99.98
Others	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Fancy Cut Diamond.

Products :

Item Code No. (ITC Code)	710239.01
Product Description	Cut and Polished Diamonds
Item Code No. (ITC Code)	701231.00
Product Description	Rough Diamonds
Item Code No. (ITC Code)	Not available as per ITC(HS) coding system. But as per the Industry classification i.e. NIC based codes, the number is 3831011X
Product Description	Diamond Cutting and sawing with the help of Laser machine

Brand Names :

“MONT BLANC”

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Polished Diamonds	Carat	287250.01

GENERAL INFORMATION

Suppliers :

Name	%
The D.T.C.	16.28
Karp Impex N.V.	6.25
A.B.T. Diamonds Limited	2.63
Park Diam (ISR) Limited	1.87
Belford Int’l Limited	0.49

Customers :

Distributors

Name	%
Hini Star Limited	31.90
Wong Tai (HK) Company	12.06
Bao Shin (HK) Company	11.78
Karp Impex N.V.	9.60
Koex Jewel’s	9.03

No. of Employees :

Approximately 400 (In office – 50, In factory – 350)

Bankers :

• Corporation Bank
• State Bank of India
• State Bank of Indore
• State Bank of Hyderabad, Overseas Branch, Ashok Mahal, 1204, Tulloch Road, Colaba, Mumbai – 400 039, Maharashtra, India
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Bikaner and Jaipur
• Axis Bank Limited, Atlanta, 209, Nariman Point, Mumbai-400021, Maharashtra, India
• Canara Bank Limited
• Andhra Bank Limited
• HDFC Bank Limited
• Union Bank of India
• ING Vysya Bank Limited
• Punjab National Bank
• Bank of India
• Standard Chartered Bank
• Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From Banks
Working Capital Loans
Packing Credit (PC/PCFC)	2583.440	2083.550
Post Shipment Credit (PSC/PSCFC)	3007.281	3918.751
Total	5590.721	6002.301

Note:

The working capital loans are secured against the fixed deposits of Rs. 24.953 Millions (as at 31.03.2009 Rs. 22.994 Millions.) Further, all other working capital facilities are secured by equitable mortgage of office premises (including office premises of Karp Diamonds Private Limited by deposits of title deeds), personal guarantee of four directors of the company, hypothecation of stock-in-trade, book debts, movable and other assets both present and future.)

Banking Relations :

--

Auditors :

Name :

Suresh Surana and Associates

Chartered Accountant

Address 1:

310, Ahura Centre, 82, Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra, India

Tel. No.:

91-22-66515570

Fax No.:

91-22-22875771

E-Mail:

emails@ss.associate.com

Website:

http://www.ss.associates.com

Associates/Subsidiaries :

Name of Unit	Karp Impex HK Limited
Address	Unit 1-2, 10/ F, Tower 2, Harbour Centre, 8, Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Activity	Diamond Traders
Constitution	Limited Company
Date of Establishment	19.02.2003
Bankers Name and address	ICBC (Asia) Limited, Hong Kong

Name of Unit	Karp Impex N.V.
Address	Hovenierstraat, 2018, Antwerpen-1, Belgium.
Activity	Diamond Traders
Constitution	Private Limited Company
Date of Establishment	13.10.2003
Bankers Name and address	State Bank of India, Belgium

Name of Unit	Karp Manufacturing Company
Address	F.P. No.23/A, PAIKI Standard Mill Compound, Opposite Natraj Theatre, Lal Darwaja, Surat, Gujarat, India
Activity	Export/ Import of diamonds
Constitution	Partnership
Date of Establishment	28.04.2003
Bankers Name and address	State Bank of Saurashtra, Overseas Branch, Mumbai – 400 004 State Bank of Indore, Commercial Branch, Mumbai – 400 021 State Bank of Patiala, Commercial Branch, Mumbai – 400 021 State Bank of Bikaner and Jaipur, Overseas Branch, Mumbai – 400 021 Canara Bank, Overseas Branch, Mumbai – 400 021

Name of Unit	Karp Diamonds Private Limited
CIN No.:	U51398MH1989PTC052848
Address	222, Panchratna, Opera House, Mumbai – 400 004, Maharashtra, India
Activity	Diamond Traders
Constitution	Private Limited Company
Date of Establishment	02.08.1989
Bankers Name and address	State Bank of Saurashtra, Overseas Branch, Mumbai – 400 004

Enterprises in which key management personnel have significant influence:

• Park Info Tec
• Karp Jewellery Private Limited

Fellow Subsidiaries :

• Karp NY Inc.

Group Company :

· KARP Suisse (Geneva)

· KARP Jewellery Manufacturing KH Limited (Hong Kong)

· Hini Star Limited (Hong Kong), KARP Impex HK Limited (Hong Kong)

· KARP Jewellery Manufacturing China Limited (China)

· Hini Star Diamonds LLC. (Dubai, U.A.E.)

· Hini Star (Bangkok) Limited, (Thailand)

· Hini Star (Taiwan) Limited (Taiwan)

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
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

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		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3289.186	2840.645	2476.581
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3339.186	2890.645	2526.581
LOAN FUNDS
1] Secured Loans		5590.721	6002.301	4341.601
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		5590.721	6002.301	4341.601
DEFERRED TAX LIABILITIES		86.982	73.976	69.676
TOTAL		9016.889	8966.922	6937.858
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		582.968	560.605	531.920
Capital work-in-progress/ Advances for Fixed Assets		50.240	50.240	50.240
INVESTMENT		619.904	445.396	380.527
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4209.039	3360.873	2689.767
	Sundry Debtors	3795.473	4808.808	3464.111
	Cash & Bank Balances	95.765	58.289	45.320
	Other Current Assets	0.073	1.376	0.713
	Loans & Advances	553.919	387.757	291.720
Total Current Assets		8654.269	8617.103	6491.631
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	649.482	521.119	403.278
	Other Current Liabilities	1.696	13.290	[5.568]
	Provisions	239.314	172.013	118.750
Total Current Liabilities		890.492	706.422	516.460
Net Current Assets		7763.777	7910.681	5975.171
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9016.889	8966.922	6937.858

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	11801.161	10995.669	10222.475
		Other Income	351.825	278.260	75.303
		TOTAL (A)	12152.986	11273.929	10297.778
Less	EXPENSES
		Cost of Material	10538.798	10472.746	9365.329
		Employee’s Remuneration and benefits	72.901	54.770	11.496
		Manufacturing and Other Expenses	446.594	360.465	309.621
		Selling and Distribution Expenses	74.191	29.217	11.494
		Increase/ Decrease in Stock	84.268	[481.101]	36.235
		TOTAL (B)	11216.752	10436.097	9734.175
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		936.234	837.832	563.603
Less	FINANCIAL EXPENSES (D)		376.581	378.992	271.975
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		559.653	458.840	291.628
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.293	35.022	33.683
	PROFIT BEFORE TAX (E-F) (G)		522.360	423.818	257.945
Less	TAX (H)		69.222	57.664	65.190
	PROFIT AFTER TAX (G-H) (I)		453.138	366.154	192.755
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1638.655	1284.590	1110.835
Add	Prior year income/ Expenses		7.888	0.000	0.000
Less	Deferred Tax expenses relating to previous year		[11.086]	0.000	0.000
Less	Prior year tax adjustment		[1.400]	[2.089]	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	10.000	19.000
	BALANCE CARRIED TO THE B/S		2087.195	1638.655	1284.590
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11236.355	11310.461	9592.896
	TOTAL EARNINGS		11236.355	11310.461	9592.896
	IMPORTS
		Raw Materials (Rough Diamonds)	6602.899	5767.668	2516.041
		Finished Goods (Polished Diamonds)	3700.611	4720.959	0.000
		Finished Goods (Jewellery)	39.472	0.000	0.000
		Stores & Spares	7.827	2.371	0.954
		Capital Goods	18.328	15.273	3.575
	TOTAL IMPORTS		10369.137	10506.271	2520.570
	Earnings Per Share (Rs.)		90.63	73.23	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.26	3.25	1.87
Net Profit Margin (PBT/Sales)	(%)	4.43	3.85	2.52
Return on Total Assets (PBT/Total Assets}	(%)	5.65	4.62	3.67
Return on Investment (ROI) (PBT/Networth)		0.16	0.15	0.10
Debt Equity Ratio (Total Liability/Networth)		1.94	2.32	1.92
Current Ratio (Current Asset/Current Liability)		9.72	12.20	12.57

LOCAL AGENCY FURTHER INFORMATION

CHANGE OF ADDRESS:

The company changed its registered office from Karp 569/ A, Near Gokulam Dairy, Opposite Ashiyana Apartment, Athwa Lines, Surat – 395 001, Gujarat to Maharashtra and having a new Company Registration Number 158868, of Mumbai R.O.C. was obtained w.e.f. 24.04.1995.

Commitment and Contingent Liabilities not provided for:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (bet of advance) is Rs. 150.414 Millions (Previous year Rs. 151.414 Millions)

b) Disputed income tax demands aggregating to Rs. 9.565 Millions (as at 31^st March 2009 Rs. 10.140 Millions) against which the company has preferred and appeal. The company has deposited refund upto 31^st March 2010 Rs. 7.452 Millions (upto 31 March 2009 Rs. 2.000 Millions) under protest.

c) Corporate Guarantee given by the company for Karp Manufacturing Company (a firm in which company is a partner having 99% share) Rs. 700.000 Millions (Previous year Rs. 700.000 Millions)

d) The company has filed writ petitioin in the Mumbai High Court against the service tax liability in respect of import of services. The company expects no liability and therefore no provision is made.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27205MH1995PLC158868
Name of the company	KARP IMPEX LIMITED
Address of the registered office or of the principal place of business in India of the company	1411, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra, India E-Mail: karp@karpgroup.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	Axis Bank Limited, Atlanta, 209, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Indenture of Mortgage dated July 20, 2010 executed between Karp Impex and Axis Trustee Services Limited acting security trustee for lenders of Working Capital Facilities aggregating Rs. 6750.000 Millions of Karp Impex Limited
Date of instrument Creating the charge	20.07.2010
Amount secured by the charge	Rs. 6750.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest as may be stipulated by the banks form time to time. Terms of Repayment: On Demand. Margin: As may be stipulated by banks form time to time Extent and Operation of the charge: First pari passu charge on movable properties, current assets and immovable properties of Karp Impex Limited in favour of Axis Trustee Services Limited acting as Security Trustee of lenders of Working Capital Facilities aggregating Rs. 6750.000 Millions of Karp Impex Limited. Others Upon repayment of mortgaged debt, the Mortgage shall recover/ release the said mortgaged property.
Short particulars of the property charged	Immovable properties of the company lying and situated at Gujarat and Maharashtra. The whole of the movable properties of the company including its current assets dated July 20, 2010.

This form is for	Creation of charge
Corporate identity number of the company	U27205MH1995PLC158868
Name of the company	KARP IMPEX LIMITED
Address of the registered office or of the principal place of business in India of the company	1411, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of Hyderabad, Overseas Branch, Ashok Mahal, 1204, Tulloch Road, Colaba, Mumbai – 400 039, Maharashtra, India E-Mail: vlaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	a) Agreement of Hypothecation of Goods and Assets. b) Agreement of Loan for overall limit; and c) Letter regarding the Grant of Individual limit within the overall limit. (Collectively constitute a single charge for Rs.155.000 millions)
Date of instrument Creating the charge	29.12.2008
Amount secured by the charge	Rs.155.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 2.75% below SBHPLR Terms of Repayment: On Demand Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The company hypothecates by way of first charge in favour of the Bank of all the company’s stocks and book debts as described as security for due payment of the FB WC facility of Rs.155.000 millions, together with interest, discount, commission, charges and costs and expenses payable by company to the Bank.
Short particulars of the property charged	Hypothecation of 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 under the Cash Incentives Scheme.

TRADE REFERENCES:

• Hini Star Limited, Hong Kong
• Wong Tai (HK) Company, Hong Kong

FIXED ASSETS:

• Land
• Plant and Machinery
• Computer
• Furniture and Fittings
• Office Equipment
• Electric Installation
• Office Premises
• Factory Building
• Local Vehicle

WEBSITE DETAILS:

Business Model

KARP has created a foundation of pioneering world-class manufacturing excellence and ingenious industry-leading innovation. Complimented by polished grading standards, dynamic sales, efficient distribution and creative marketing, KARP Group, continues to grow market share and establish standards for the industry.

Vision Statement

KARP's vision is to push relentlessly for excellence, to develop innovative and productive concepts, research oriented development planning, to continuously grow through superlative products, and compelling global strategic alliances.

Achievements

KARP is recognized by the Government of India as a Star Trading House. Being one of the most well respected diamond companies in India and in the world, the group has received the most prestigious awards by the Indian Diamond Council (Gems and Jewellery Export Promotion Council) and the Government of India for its export achievements and dedicated services to its customer for the following years.

  KARP Impex Limited

1993-94  National Export Award for Outstanding Performance

1994-95  National Export Award for Outstanding Performance

1995-96  National Export Award for Outstanding Performance

1995-96  GJEPC Awards - 4th in Exports of Cut and Polished Diamonds, DTC   Sightholder Category

1996-97  GJEPC Awards - 2nd in Exports of Cut and Polished Diamonds, DTC   Sightholder Category

1997-98  GJEPC Awards - 1st in Exports of Cut and Polished Diamonds, DTC   Sightholder Category

1998-99  GJEPC Awards - 1st in Exports of Cut and Polished Diamonds, DTC   Sightholder Category

  Hini Star

1996-97  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

1997-98  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

1998-99  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

1999-00  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

2000-01  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

2001-02  GJEPC Award - Highest Importers of Diamonds from India to South   East Asia. Hong Kong

 KARP Jewellery Manufacturing HK Limited

2004  Best of Show Award, 6th Hong Kong Jewellery Design Competition

2005  Best of Merit Award, 7th Hong Kong Jewellery Design Competition

2006  Best of Show Award, 8th Hong Kong Jewellery Design Competition

2007  Best of Show Award, 9th Hong Kong Jewellery Design Competition

2008  Best of Show Award, 10th Hong Kong Jewellery Design Competition

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.72.08
Euro	1	Rs.64.21

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.