MIRA INFORM REPORT

Report Date :

07.04.2012

IDENTIFICATION DETAILS

Name :	ASIAN STAR COMPANY LIMITED
Registered Office :	114 – C, Mittal Court, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.03.1995
Com. Reg. No.:	086017
Capital Investment / Paid-up Capital :	Rs.106.712 millions
CIN No.: [Company Identification No.]	L36910MH1995PLC086017
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers and Exporters of Cut and Polished Diamonds.
No. of Employees :	2500 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 14716752
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Trade relations are reported as fair. Business is active. Payments are reported to be 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. Manoj
Designation :	Senior Manager in Finance
Contact No.:	91-22-22821886
Date :	05.04.2012

LOCATIONS

Registered Office :	114 – C, Mittal Court, Jamnadas Bajaj Road, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22821886 / 22824257
Fax No.:	91-22-22043747/ 22842427 / 22043743
Email:	secretarial@asianstarco.com astar@vsnl.com manoj@asianstargroup.com
Website :	www.asianstargroup.com
Location:	Owned
Corporate Office:	604 Aman Chambers Queens Road Opera House, Mumbai 400004, Maharashtra, India
Sales and Marketing Office :	704- Aman Chambers, Queens Road, Opera House, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-23613662/ 23648450/ 23695128
Fax No.:	91-22-23647268
E-Mail :	info@asianstarco.com
Manufacturing Plant :	Cut and polished Diamonds 8-1269/70/71, Rangildas Mehta Street, Opposite, Terapanthi Bhavan, Gopipura, Kaji Maidan, Surat, Gujarat – 395 001 Diamond Studded Jewellery Plot No.5, F -11/12, WICEL, opposite SEEPZ, MIDC (Marol) Central Road, Andheri (East), Mumbai – 400 093, Maharashtra Wind Energy Sangli , Maharashtra

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Dinesh T. Shah
Designation :	Chairman [Resigned as Managing Director w.e.f. 27.04.2004]
Date of Birth/Age :	16.01.1940
Qualification :	B.Sc
Date of Appointment :	02.03.1995
Name :	Mr. Vipul P. Shah
Designation :	Director
Date of Birth/Age :	23.09.1967
Qualification :	B.Com
Date of Appointment :	02.03.1995
Name :	Mr. Dharmesh D. Shah
Designation :	Joint Managing Director cum Chief Executive Officer [w.e.f. 01.07.2004]
Name :	Mr. Arvind T. Shah
Designation :	Managing Director cum Chief Executive Officer [w.e.f. 01.07.2004]
Name :	Mr. Priyanshu A. Shah
Designation :	Executive Director
Date of Birth/Age :	14.05.1981
Qualification :	B.Com, A Certified Gemologist from G I A , New York
Date of Appointment :	08.10.2004
Name :	Mr. Bhupendra K. Shroff
Designation :	Director
Name :	Mr. K. Mohanram Pai
Designation :	Director
Name :	Mr. Apurva R. Shah
Designation :	Director
Name :	Mr. Hasmukh B. Gandhi
Designation :	Director [Appointed as Additional Director on 20.10.2003]
Name :	Mr. Milind H Gandhi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Manoj
Designation :	Senior Manager in Finance
Name :	Ms. Sangeetha Sheshadri
Designation :	Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	8,000,000	74.97
Sub Total	8,000,000	74.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8,000,000	74.97
(B) Public Shareholding
(1) Institutions
Insurance Companies	476,756	4.47
Sub Total	476,756	4.47
(2) Non-Institutions
Bodies Corporate	1,735,890	16.27
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	21,524	0.20
Any Others (Specify)	437,030	4.10
Non Resident Indians	99	-
Overseas Corporate Bodies	436,904	4.09
Clearing Members	27	-
Sub Total	2,194,444	20.56
Total Public shareholding (B)	2,671,200	25.03
Total (A)+(B)	10,671,200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	10,671,200	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Cut and Polished Diamonds.

Products :

Product Description	ITC Code
Cut and Polished Diamonds	71023910
Dimond Studded Jewellery	71131930

Exports :

Countries :

· U.S.A.

· Belgium

· Japan

· United Kingdom

· Iceland

· Western Europe

· Asia – Pacific

Terms :

Selling :

Cash, Credit (30-60 Days)

Purchasing :

Cash, Credit (30-60 Days)

PRODUCTION STATUS

AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Generation	Actual Production
Jewellery	Pcs.	240000	90000	--	72457
Windmill	KW	--	11500	22079512	--
Manufactured Goods (Including Manufactured by others on job work basis)	Carats	--	--	--	529452.40

GENERAL INFORMATION

Customers :

· Wholesaler

· Retailers

· End Users

No. of Employees :

2500 Approximately

Bankers :

· Bank of India

· Canara Bank

· Corporation Bank

· Central Bank of India

· State Bank of Hyderabad

· HDFC Bank

· Standard Chartered Bank

· Bank of Baroda

· Bank of Maharashtra

· State Bank of Patiala

· Development Credit Bank Limited

· Canara Bank

· IndusInd Bank Limited

· ING Vysya Bank Limited

· Andhra Bank

· State Bank of Indore

· State Bank of Travancore

· Syndicate Bank

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Working Capital Loan from Banks Secured by a. Fixed Deposit b. Hypothecation of Stock in Trade and Book Debts c. Hypothecation of Premises at Mumbai and Surat d. Guaranteed by some of the Directors in their personal capacity All loans are repayable within one year	5637.462	4881.976
Term Loan from Banks Secured by a. Fixed Deposits b. First charge on windmill, all related equipments, systems and accessories at Kerala and Tamilnadu c. Equitable mortgage of the land covered under the windmill project at Kerala and Tamilnadu Loan repayable within one year Rs.58.171 millions	295.428	343.399
Total	5932.890	5225.375
UNSECURED LOAN
Loan from Directors	452.400	398.900
Total	452.400	398.900

Banking Relations :	--
Auditors :
Name :	V. A. Parikh and Associates Chartered Accountants,
Subsidiaries :	· Asian Star Company Limited (U.S.A.) · Inter Gems DMCC, Dubai, UAE · Asian Star Jewels Private Limited, Mumbai, India · Asian Star Trading (Hong Kong) Limited, Hong Kong

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10 each	Rs.150.000 millions
50000000	Redeemable Cumulative Preference Shares	Rs. 10 each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10671200	Equity Shares	Rs. 10 each	Rs.106.712 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		106.712	106.712	358.712
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3572.476	3343.684	3092.718
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3679.188	3450.396	3451.430
LOAN FUNDS
1] Secured Loans		5932.890	5225.375	5075.996
2] Unsecured Loans		452.400	398.900	195.000
TOTAL BORROWING		6385.290	5624.275	5270.996
DEFERRED TAX LIABILITIES		255.091	249.846	233.046
TOTAL		10319.569	9324.517	8955.472
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1498.287	1419.295	1454.342
Capital work-in-progress		6.005	31.417	12.852
INVESTMENT		38.670	39.533	130.614
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3257.448	3096.171	2688.450
	Sundry Debtors	4426.477	4079.422	3890.327
	Cash & Bank Balances	914.176	833.921	750.412
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	977.931	1151.564	503.877
Total Current Assets		9576.032	9161.078	7833.066
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	438.502	1083.734	178.902
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	360.923	243.072	296.500
Total Current Liabilities		799.425	1326.806	475.402
Net Current Assets		8776.607	7834.272	7357.664
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10319.569	9324.517	8955.472

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Service	14559.183	13421.227	12550.092
		Other Income	(8.564)	73.120	2.343
		TOTAL (A)	14550.619	13494.347	12552.435
Less	EXPENSES
		Cost of Materials	12460.480	11593.226	10491.047
		Manufacturing Expenses	1169.164	924.445	956.633
		Purchase of Polished Diamonds / Jewellery	298.850	293.793	449.435
		TOTAL (B)	13928.494	12811.464	11897.115
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		622.125	682.883	655.320
Less	FINANCIAL EXPENSES (D)		171.619	236.439	263.138
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		450.506	446.444	392.182
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.712	76.348	66.142
	PROFIT BEFORE TAX (E-F) (G)		376.794	370.096	326.040
Less	TAX (H)		123.180	84.435	135.974
	PROFIT AFTER TAX (G-H) (I)		253.614	285.661	190.066
	Short Provision of Tax of Earlier Years		0.000	(4.360)	(0.042)
	Prior Year of Establishment Expenses		(0.018)	(0.071)	(0.794)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1565.500	1412.908	1277.490
Less	APPROPRIATIONS
		Transfer to General Reserve	20.000	20.000	20.000
		Transfer to Capital Redemption Reserves	0.000	78.372	0.000
		Paid / Proposed Dividend on Preference Shares	0.000	4.598	7.560
		Dividend on Equity Shares	21.342	21.342	21.342
		Tax on Dividend	3.462	4.326	4.912
	BALANCE CARRIED TO THE B/S		1774.292	1565.500	1412.906
	EARNINGS IN FOREIGN CURRENCY
		Diamonds Exported	10657.174	10975.019	9415.934
		Jewellery Exported	2.949	1.402	52.439
	TOTAL EARNINGS		10660.123	10976.421	9468.373
	IMPORTS
		Rough Diamonds	5920.815	6602.216	5157.435
		Gold Mountings	43.973	23.391	24.296
		Alloy	5.289	3.033	1.248
		Polished Diamonds (Jewellery Division)	0.000	4.398	0.000
		Colour Stone	0.056	0.000	0.000
	TOTAL IMPORTS		5970.133	6633.038	5182.979
	Earnings Per Share (Rs.)		23.76	25.85	16.90

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	4235.990	3705.040	3110.770
Total Expenditure	4047.040	3561.030	2993.810
PBIDT (Excl OI)	188.950	144.010	116.960
Other Income	(1.660)	0.780	(0.880)
Operating Profit	187.290	144.790	116.080
Interest	32.800	38.800	28.040
Exceptional Items	0.000	0.000	0.000
PBDT	154.490	105.990	88.040
Depreciation	19.770	20.080	20.230
Profit Before Tax	134.720	85.910	67.810
Tax	43.730	24.360	19.730
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	90.990	61.550	48.080

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.74	2.11	1.51
Net Profit Margin (PBT/Sales)	(%)	2.58	2.75	2.59
Return on Total Assets (PBT/Total Assets}	(%)	3.40	3.49	3.51
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.09
Debt Equity Ratio (Total Liability/Networth)		2.02	2.08	1.73
Current Ratio (Current Asset/Current Liability)		11.97	6.90	16.47

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	438.502	1083.734	178.902

FINANCE

The Company is availing working capital requirements from consortium of bankers. The Company has also availed term loan from banks for windmill projects.

GLOBAL ECONOMIC SCENARIO

INDUSTRY OVERVIEW

There was a remarkable improvement in the overall global economic scenario as the world continued on a path to regain economic stability, reducing the fears of double-dip recession that some had forecast in 2009. The IMF, in its World Economic Outlook estimates that the global economy grew by 4.2% in 2010, higher than what was forecast in the previous year. The recovery was aided by the continuation of stimulus measures adopted by developed as well as emerging economies. Increased liquidity in the developed economies impacted sentiments and boosted consumption as well as investments. Emerging markets continued to grow on the back of domestic consumption and improved export demand.

The momentum of growth has clearly shifted to emerging economies, particularly east and south Asia where China and India continue to lead. India maintained its growth momentum on the foundation of relatively strong fundamentals of the economy. Strong domestic consumption and buoyant exports enabled Indian GDP to grow around 8.5 % during 2010-11. However, the economic crisis of Greece and the turmoil in Middle East and North African region continues to be a concern for the global economy. Also, inflation has emerged as a new global economic challenge driven by substantial rise in the prices of almost all commodities, impacting almost all the sectors.

The global Gems and Jewellery (G and J) Industry has undergone a significant transformation. Traditional African countries that were predominantly into mining have now moved up the value chain by increasing their share in diamond processing and marketing. China is fast emerging as one of the biggest markets for both gold jewellery as well as diamond jewellery. India continues to be the largest consumer of gold. India is also the third largest consumer of polished diamonds, besides being the largest diamond cutting and polishing centre in the world, accounting for 90% of the world's share by pieces. Domestic demand in India is growing rapidly backed by rise in disposable income, overall improved confidence in the economy and change in perception of gold and Jewellery from an investment option to a fashion statement. The US market, which is the world's largest market, is also showing signs of steady recovery. India's exports to the US increased by about 50% during the year. The G and J Industry has traditionally been a leading foreign exchange earner for the country, accounting for over 16% of total foreign exchange earned this year. According to The Gems and Jewellery Export Promotion Council (GJEPC), the total gems and jewellery exports during the year 2010-11 increased to US $ 43.14 billion from US $ 29.36 billion in 2009-10, signifying an increase of 47%. In terms of the export basket, cut and polished diamonds continued to account for over 65% of the total basket, followed by gold jewellery.

In terms of geographical markets, the UAE emerged as the biggest market for Indian G and J, accounting for more than 47% of total exports, followed by Hong Kong at 22% and the USA at 11% of the total value of exports.

Polished Diamond

The highest growth in the industry came from the cut and polished segment. Exports of cut and polished diamonds during the year grew from US $ 18.24 billion in 2009-10 to US $ 28.25 billion in 2010-11, registering a

growth of 55%. India continues to be the leading diamond processor in the world accounting for nearly 90% of world's share in terms of pieces, over 80% in terms of carats and 55 % in terms of value. With a legacy of many years' leadership, workers have a unique combination of skills and experience that is one of the best in the world. When combined with a costadvantage, India provides the best solution in diamond processing in terms of quality, cost and timeline that is hard to beat. With the advent of technology, old cutting and polishing wheels are replaced by hi-tech cutting and polishing machines. Today, India is not only known for its proficiencies in processing the smallest diamond but is also known for the largest fancy shapes.

Diamond Jewellery

The diamond jewellery segment has been witnessing steady growth over the last few years. The segment grew at the rate of 30% during the year, with a forecast of 20% growth for the year 2011-12. (Source GJEPC). Traditionally, India has been recognised as the largest diamond polishing centre of the world. Since the past few years there is a growing acceptability of Indian Jewellery on the global front. India is gaining prominence as a sourcing destination for high quality designer jewellery. The key drivers for growth in the domestic market are increasing disposable income, conscious marketing efforts and a growing youth population with the urge to spend on jewellery. In India, a visible shift is seen in consumers' perception in the last couple of years. Inherent gold consumers in India have gradually started diversifying a part of their investment to the diamond jewellery segment. Diamond studded platinum jewellery has been the latest fashion trend globally and this trend is fast catching in India. According to the Platinum Guild International (India), the total number of outlets selling platinum jewellery in India increased from 12 in 2001 to over 300 in 2010. By 2015, this number is estimated to increase to over 1000. Branding is another trend that is shaping the Indian jewellery market. Research expects organised retail to grow, with the change in buying preference of the increasing young population for whom quality, reliability and style of jewellery are becoming important.

Business overview

This year Asian Star celebrates 40 successful years in the industry. Asian Star Company Limited is one of the world's leading diamantaires and a Diamond Trading Company Sightholder. The Company is fully integrated with presence across the value chain – from rough processing to jewellery retailing.

Financial overview

The Company continued its momentum of growth and delivered consistent results during the year. The turnover of the Company at Rs.14550.600 millions, scaled a new peak during FY 10-11 registering a growth of 8.4% over previous year. With sustained focus and improved business efficiencies, the Company's profit after tax excluding other income has increased by 23.44% to Rs.262.200 millions from Rs.212.400 millions in previous year. With this sound performance, company's reserves have increased to Rs.3570 millions with book value at Rs.345 per share.

Future outlook

The G and J industry is heading towards a promising future. With an extremely good year in 2010, the industry is very positive and hopeful to build on recent revival and upswing in overall economic sentiment. According to a FICCI report, the G and J industry in India is expected to grow to US $ 100 billion by the year 2015. The domestic Indian market is also expected to swell to US $ 35 – 40 billion by 2015, growing at a CAGR of 13% . Emerging trends like hand-crafted, couture and ensemble jewellery, though still in a nascent stage, are fast becoming popular. Growing desire and aspiration for diamond jewellery among the Indian customers, particularly those in the age bracket of 20-40 year and with high disposable incomes, augurs well for the G and J Industry. The demand for gold has not been affected in spite of a steep rise in prices, which goes on to demonstrate that demand in India is still driven by investment and tradition factor. Consumer confidence has increased with the government's initiative of Hallmarking and Certification. Hallmarking under Bureau of Indian standards (BIS) protects consumers from adulteration of precious metal. With such consumer-centric initiatives from the government, demand for gold and gold jewellery is set to maintain its strong momentum of growth. Though the overall outlook for the industry is positive, the sovereign crisis in Greece, natural disaster in Japan and political upheavals in the Middle East may have its negative impact on the global economic environment.

FIXED ASSETS:

· Goodwill

· Land

· Office premises

· Factory Premises

· Plant and machinery

· Vehicles

· Furniture and Fixtures

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

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.51.04
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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.