MIRA INFORM REPORT

Report Date :

01.03.2011

IDENTIFICATION DETAILS

Name :	DIAGOLD DESIGNS LIMITED
Registered Office :	Plot No.R/1, Cama Industrial Estate, Opposite Bajrang Nagar, Walbhat Road, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.10.2000
Com. Reg. No.:	11-129176
CIN No.: [Company Identification No.]	U36900MH2000PLC129176
IEC No.:	0301056846
TAN No.: [Tax Deduction & Collection Account No.]	MUMD06895A
PAN No.: [Permanent Account No.]	AABCD3716A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Exporters and Importers of Diamond Studded Gold Jewellery.

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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 satisfactory track. There appears to be some losses being incurred by the company continuously in two years. However, 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.

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

LOCATIONS

Registered Office/ Factory :	Plot No.R/1, Cama Industrial Estate, Opposite Bajrang Nagar, Walbhat Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-26850038 / 39 / 40
Fax No.:	91-22-26851289
E-Mail :	diagolddesigns@vsnl.net
Website :	http://diagolddesigns.net
Area :	20000 sq. ft.
Location :	Owned
Branch Office :	201, Regal, Diamond Centre, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23697459
Area :	700 sq. ft.
Location :	Rented

DIRECTORS

As on 03.07.2010

Name :	Mr. Milan Ratilal Mehta
Designation :	Managing Director
Address :	2nd Floor, Jeevan Villa, 351-A, Narayan Dhabhaolkar Marg, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	31.10.1953
Date of Appointment :	03.12.2001
DIN No.:	00017932
Name :	Mr. Manhar Ratilal Bhansali
Designation :	Director
Address :	55/A, Nishika Terrace, Khan Abdul Gaffar Khan Road, Worli – Sea face, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	20.09.1941
Date of Appointment :	16.10.2000
DIN No.:	00058699
Name :	Mr. Rashesh Manhar Bhansali
Designation :	Director
Address :	55/A, Nishika Terrace, Khan Abdul Gaffar Khan Road, Worli – Sea face, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	06.07.1968
Date of Appointment :	16.10.2000
DIN No.:	00057931
Name :	Mr. Nirav Milan Mehta
Designation :	Whole Time Director
Address :	2^nd Floor, Jeevan Villa, 351-A, Narayan Dhabhaolkar Marg, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	07.12.1980
Date of Appointment :	03.12.2001
DIN No.:	00017819
Name :	Mr. Ajay Manaherlal Khatlawala
Designation :	Director
Address :	G-2, Unique Apartments, S.V. Road, IRLA, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Date of Birth/Age :	02.05.1954
Date of Appointment :	03.07.2010
DIN No.:	00124042
Name :	Mr. Rajesh Gordhandas Kapadia
Designation :	Director
Address :	9/C, Dr. Woodlands, 67, Dr. G. Deshmukh Marg, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	02.11.1956
Date of Appointment :	01.03.2005
Date of Ceasing :	17.03.2010
DIN No.:	00003272

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 03.07.2010

Names of Shareholders	No. of Shares
Manhar Ratilal Bhansali	102
Shobhana Bhansali	102
Goldiam International Limited, India	2039658
Milan R. Mehta Jointly with Trupti Mehta	1254600
Trupti Mehta Jointly with Milan Mehta	255000
Nehal Mehta Jointly with Milan Mehta	112200
Nirav Mehta Jointly with Milan Mehta	112200
Ramesh Bhansali Jointly with Ami Bhansali	102
Nirav Mehta Jointly with Sweta Mehta	154565
Sweta Mehta Jointly with Nirav Mehta	71400
Total	3999929

As on 03.07.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]
Bodies corporate	50.99
Directors or relatives of directors	49.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Importers of Diamond Studded Gold Jewellery.

Products :

Product Description	ITC Code
Jewellery	7113.19

Exports :

Products :

Studded Jewellery

Countries :

· USA

· UAE

· UK

· Japan

· Europe

Imports :

Products :

Diamond Precious and Semi Precious

Countries :

· USA

· UAE

· Thailand

Terms :

Selling :

Cash and Credit [30-120 days]

Purchasing :

L/C and Credit [90 days]

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Actual Production
Jewellery (Gms.)	84,194.60

GENERAL INFORMATION

No. of Employees :

300 [In Office : 25 and In Factory 275] (Approximately)

Bankers :

• Punjab National Bank, SEEPZ Branch, SEZ, Andheri [East], Mumbai-400 096, Maharashtra, India

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Patel [West], Mumbai – 400 013, Maharashtra, India
• ABN Amro Bank N.V.
• Barclays Bank PLC
• The Bank of Nova Scotia

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Punjab National Bank P. C. (*)	52.499	102.221
Punjab National Bank P.S.C. (*)	38.950	37.713
Punjab National Bank P.C.F.C.(*)	71.788	0.000
Punjab National Bank F.O.B.D. (*) (* Secured by hypothecation of Stock, Debtors and Equitable mortgage of Lease hold Land and Factory Building at R-1 Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai - 400063.)	31.292	0.000
HDFC Bank Car Loan I (**)	0.224	0.000
HDFC BANK Car Loan II (**)	0.870	0.000
HDFC BANK Car Loan III (**) (** Motor Car Loans is secured against Motor Cars)	0.384	0.000
Total	196.007	139.934

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Barclays Bank PLC F.O.B.D	0.000	70.780
Total	0.000	70.780

Banking Relations :	--
Auditors :
Name :	Pulindra Patel and Company Chartered Accountants
Address :	307, Gold Mohur Co-Operative Society, 174, Princess Street, Mumbai – 400002, Maharashtra, India
Tel No.:	91-22-22056233
Mobile No.:	91-9322268243
E mail:	Pulindra_patel@hotmail.com
Holding Company:	Goldiam International Limited CIN No.: L36912MH1986PLC041203
Joint Venture / Associates :	Temple Designs LLP Goldiam Jewels SDN BHD
Enterprise over which Key Managerial Personnel has direct control :	Goldiam HK Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3999929	Equity Shares	Rs. 10/- each	Rs.39.999 Millions

Note:

[Of the above 2039658 Equity shares are held by Holding Company Goldiam International 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		39.999	39.215	39.215
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		210.989	222.463	245.547
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.988	261.678	284.762
LOAN FUNDS
1] Secured Loans		196.007	139.934	74.268
2] Unsecured Loans		0.000	70.780	94.003
TOTAL BORROWING		196.007	210.714	168.271
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		446.995	472.392	453.033
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.584	78.564	82.548
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.472	1.252	28.327
DEFERREX TAX ASSETS		1.736	1.028	0.446
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	242.997	157.917	148.343
	Sundry Debtors	263.929	272.729	351.016
	Cash & Bank Balances	7.666	18.682	18.909
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.067	17.371	21.082
Total Current Assets		528.659	466.699	539.350
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	169.419	81.212	197.039
	Other Current Liabilities	0.872	1.147	0.500
	Provisions	0.165	0.152	0.167
Total Current Liabilities		170.456	82.511	197.706
Net Current Assets		358.203	384.188	341.644
MISCELLANEOUS EXPENSES		0.000	7.360	0.068
TOTAL		446.995	472.392	453.033

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	485.204	553.933	736.659
		Other Income	1.162	1.222	0.599
		Profit on sale of fixed assets	0.004	0.000	0.000
		TOTAL (A)	486.370	555.155	737.258
Less	EXPENSES
		Cost of Materials	367.848	458.617	640.819
		Purchase for trading	37.873	0.000	0.000
		Employees’ Cost	15.105	20.072	29.163
		Manufacturing Expenses	12.425	6.055	13.791
		Administrative, Selling and Other Expenses	48.053	58.379	19.881
		Voluntary Retirement and Preliminary Expenses w/ off	0.034	0.034	0.034
		Loss on Sale of Investments (Net)	0.000	10.950	2.207
		Share of loss from LLP	1.303	0.000	0.000
		Increase/ Decrease in Stock	0.969	7.005	(9.561)
		TOTAL (B)	483.610	561.112	696.334
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.760	(5.957)	40.924
Less	INTEREST & FINANCIAL EXPENSES (D)		19.733	15.778	15.694
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(16.973)	(21.735)	25.230
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.998	4.354	5.108
	PROFIT BEFORE TAX (E-F) (G)		(20.971)	(26.089)	20.122
Less	TAX (H)		(0.085)	(3.005)	1.454
	PROFIT AFTER TAX (G-H) (I)		(20.886)	(23.084)	18.668
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		116.775	139.859	130.668
Less	APPROPRIATIONS
		Interim Dividend	0.000	0.000	3.922
		Tax on Interim Dividend	0.000	0.000	0.555
		Transfer to General Reserve	0.000	0.000	5.000
	BALANCE CARRIED TO THE B/S		95.889	116.775	139.859
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	476.041	595.518	683.623
	TOTAL EARNINGS		476.041	595.518	683.623
	IMPORTS
		Raw Materials	245.150	222.142	222.142
		Consumable Stores	1.630	0.995	0.995
		Others	0.335	0.933	0.933
	TOTAL IMPORTS		247.115	224.070	224.070
	Earnings Per Share (Rs.)
	- Basic		(5.22)	(5.89)	4.76
	- Diluted		(5.28)	(5.89)	4.76

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(4.29)	(4.16)	2.53
Net Profit Margin (PBT/Sales)	(%)	(4.32)	(4.71)	2.73
Return on Total Assets (PBT/Total Assets}	(%)	(3.46)	(4.78)	4.44
Return on Investment (ROI) (PBT/Networth)		(0.08)	(0.01)	0.07
Debt Equity Ratio (Total Liability/Networth)		1.46	1.12	1.29
Current Ratio (Current Asset/Current Liability)		3.10	5.66	2.73

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The Sales during the year ended 31^st March, 2010 decreased from Rs.553.933 millions to Rs.485.204 millions reflecting a decline of 12.41% over the previous year. The same was due to recession in the International Market. Other Income amounted to Rs.1.162 millions compared to Rs.1.222 millions in the previous year.

The Company is registered as 100% Export Oriented Unit (EOU) with the Development Commissioner, SEEPZ,

Mumbai and the income tax liability has been worked out accordingly.

The Company during the year under review formed a Limited Liability Partnership Firm in the name and style of TEMPLE DESIGNS LLP to carry on the manufacturing and trading activities in the Local market. Initial contribution of the Company to the Capital of the firm was 95%. At present holding of the Company in the said firm is 51%.

The Company decided to exit from the Joint Venture in the Russian Subsidiary Company ‘000 Tiara Jewels’ and joint venture partner has agreed to buy the Company’s Investment at par. All the legal formalities for transfer of shares are expected to be completed in the current financial year.

The Company during the year under review acquired small stake in ‘Goldiam HK Limited’, a Company incorporated in Hong Kong.

RIGHT ISSUE:

The Company issued and allotted 78,429 equity shares of Rs.10/- each at the Premium of Rs.120/- per share to

Members on Right Basis on 7^th November, 2009 to meet the working capital requirements of the Company.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36900MH2000PLC129176
Name of the company	DIAGOLD DESIGNS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.R/1, Cama Industrial Estate, Opposite Bajrang Nagar, Walbhat Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India E-Mail: diagolddesigns@vsnl.net
This form is for	Modification of charge
Charge identification number of the modified	90144083
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	Punjab National Bank, SEEPZ Branch, SEZ, Andheri [East], Mumbai-400 096, Maharashtra, India E-Mail: pnbseepz@bol.net.in
Nature of description of the instrument creating or modifying the charge	1. Letter of Continuity 2. Authority to Bank.
Date of instrument Creating the charge	28/10/2010
Amount secured by the charge	Rs.300.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: By this submission the company has created charge on immovable properties to secure bank for Rs.300.000 millions Terms of Repayment: By this submission the company has created charge on immovable properties to secure bank for Rs.300.000 millions Margin: By this submission the company has created charge on immovable properties to secure bank for Rs.300.000 millions Extent and Operation of the charge: Rs.300.000 millions extent and operation of charge on immovable properties on all the piece of land being Plot No.R-1, bearing CTS No.130 of Village Pahadi, Goregaon Division admeasuring 1280.18 Square Yards i.e.1070 Square Meters or thereabouts situated at Cama Industrial Estate, Goregaon (east), Mumbai with Building thereon consisting of Ground + Three Upper Floors and Bounded.
Short particulars of the property charged	Immovable properties on all the piece of land being Plot No.R-1, bearing CTS No.130 of Village Pahadi, Goregaon Division admeasuring 1280.18 Square Yards i.e.1070 Square Meters thereabouts situated at Cama Industrial Estate, Goregaon (east), Mumbai with Building thereon consisting of Ground + Three Upper Floors and Bounded.
Particulars of the present modification	By this submission of modification the company has created charge on immovable properties on all the piece of land being Plot No.R-1, bearing CTS No.130 of Village Pahadi, Goregaon Division admeasuring 1280.18 Square Yards i.e.1070 Square Meters or thereabouts situated at Cama Industrial Estate, Goregaon (east), Mumbai with Building thereon consisting of Ground + Three Upper Floors and Bounded to secure total facilities of Rs.300.000 millions. (Enhanced from Rs.250.000 millions)

Name of the company	DIAGOLD DESIGNS LIMITED
Presented By	DIAGOLD DESIGNS LIMITED
1) Date and description of instrument creating the change	Agreement for Auto Loan dated 30.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.900 Million
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 of Chevrolet Optra Car bearing Engine No. 102311 and Chasis No. 314806
4) Gist of the terms and conditions and extent and operation of the charge.	First and Exclusive charge in favour of the bank Repayment of monthly installment Rs. 0.028 Millions for 36 months On daily payment addition interest of 2 % p.m.
5) Name and Address and description of the person entitled to the charge.	HDFC Bank Limited HDFC Bank House. Senapati Bapat Marg, Lower Patel [West], Mumbai – 400013, 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

This form is for	Modification of charge
Charge identification number of the charge to be modified	90144083
Corporate identity number of the company	U36900MH2000PLC129176
Name of the company	DIAGOLD DESIGNS LIMITED
Address of the registered office or of the principal place of business in India of the company	R -1, Cama Industrial Estate, Opposite Bajrang Nagar, Walbhat Road, Goregaon [East], Mumbai – 400063, Maharashtra, India
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Punjab National Bank, Seepz Branch, SEZ, Andheri [East], Mumbai – 400096, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Hypothecation of movable assets forming part of fixed / block asset. Deed of Hypothecation to secure LC and DA basis Letter of continuity
Date of instrument Creating the charge	09.12.2006
Amount secured by the charge	Rs. 250.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per schedule of bank, along with penal interest in terms of guidelines issued in this regard from time to time. Terms of repayment Repayable on Demand Margin 10 % on Packing Credit Facility 10 % on ILC/ILG Extent operation of the charge Hypothecation of all plant and machinery, furniture and fixture. Electrical equipment and office equipment both present and future to the bank Equitable mortgage in favour of the Bank viz. all the piece of land being Plot No. R 1, bearing CTS No. 130 of Village Pahadi, Goregaon Division adm. 1280.18 sq. yards i.e. 1070 sw. mts. or thereabouts situated at Cama Industrial Estate, Goregaon, Mumbai with building thereon consisting of Group + Three Upper Floors and Bounded.
Short particulars of the property charged	All the piece of land being Plot No. R 1, bearing CTS No. 130 of Village Pahadi, Goregaon Division adm. 1280.18 sq. yards i.e. 1070 sw. mts. or thereabouts situated at Cama Industrial Estate, Goregaon, Mumbai with building thereon consisting of Group + Three Upper Floors and Bounded on North by 18.29 mtr wide Road, on East by Plot No. S 1 of the Estate, on south by 6.1 meters wide excess and on West by Plot No Q/2 of the estate.
Date of latest modification prior to the present modification	27.10.2005
Particulars of the present modification	By present modification the ILC / ILG limits have enhanced from Rs. 30.000 millions to Rs. 50.000 Millions increasing the overall credit facility from Rs. 230.000 Millions to Rs. 250.000 Millions

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: (As on 31.03.2010)

(a) The Company has outstanding performance guarantee of Rs.8.993 millions as on the Balance sheet date executed in favour of Assistant Commissioner of Customs

(b) In respect of Joint Venture: No Contingent Liability.

(c) The company has demand in respect of Income Tax Rs.0.577 million for the Assessment Year 2004-2005 and Rs.0.516 million for the Assessment Year 2006-2007

FIXED ASSETS

· Land

· Factory Building

· Air Conditioner

· Computer

· Electrical Installation

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Vehicles

WEBSITE DETAILS:

PROFILE:

They introduce theirselves as manufacturers and exporters of exquisite diamond and color stone studded gold and silver jewelry from India and Hong Kong. The parent company Goldiam International Limited is one of the pioneers of Jewellery Manufacturing from Seepz ( Mumbai ) with a setup since 19 years. Goldiam having well established presence USA markets, DIAGOLD forayed into the international jewelry business in 2002. with a clear focus on medium to high end Jewellery in other alternate markets namely Middle East, UK, Europe, Russia, Japan, South Africa.  With the setup in Hongkong they have added another dimension to the product development and manufacturing capabilities. The state-of–the-art infrastructure ensures excellent craftsmanship, superior merchandise at competitive margins. They aim to bring enthusiasm, glamour, beauty and goodwill of real diamonds into consumer’s lives.

The product line consists of 10000+ designs, in RINGS, EARRINGS, PENDANTS, BRACELETS, BANGLES and NECKLACES. Diagold manufactures the above in gold as well as in platinum/silver /palladium. The continuous commitment of the management along with 800 skilled workers (India and HK) has enabled them to approach the new age markets with a positive and aggressive attitude. With marketing offices in Los Angeles, New York, Dubai, Auckland(NZ) and Moscow  they are geographically positioned to serve the clients.

They offer the widest range of exclusive collection and generic collections from Micro pave, Soliel, Three stone, Princess Cut Invisible, The Dancing Diamonds, Karat – Carat (Solitaire Collection), Bridal Collection, Circle of Love, Valentine Collection, Trios, Male Metal (Men’s Jewelry),Cocktail rings and many more to select from. With a new set-up of Machine made Seamless Wedding bands they are proud to be in the league of a very few manufacturers(Only 2 in India) who can offer this product  The company’s in house Product Development team based in Mumbai and Hong Kong turns up with an entire new collection every quarter, to cope up with the upcoming trends and development in the Jewelry Industry on an international inclination.

The structure of the organization enables them to be responsive to the needs of the clients. The pursuit in research and development and an encouraging attitude towards innovativeness moves them towards the goal to  be among the top global leaders in the fine jewelry manufacturing industry, with outstanding product and product development, built on an intense passion for innovation, creativity, technical advancement and visionary thinking.

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.45.18
UK Pound	1	Rs.72.78
Euro	1	Rs.62.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		44

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.