MIRA INFORM REPORT

Report Date :

01.02.2012

IDENTIFICATION DETAILS

Name :	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED
Registered Office :	Kesharba Market – 2 Gotalwadi, Katrgam, Surat-395004, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.01.1996
Com. Reg. No.:	04-028701
Capital Investment :	Rs.580.044 millions
CIN No.: [Company Identification No.]	U36911GJ1996PLC028701
TAN No.: [Tax Deduction & Collection Account No.]	AHNF00124F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer of Diamond Studded Jewellery

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 9866504
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.

ECGC Country Risk Classification List – September 30, 2011

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

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

LOCATIONS

Registered Office :	Kesharba Market – 2 Gotalwadi, Katrgam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2535055
Fax No.:	91-261-2533435
E-Mail :	companysecretary@su-raj.com fpjd.acc@gmail.com
Corporate Office/ Factory :	Forever House, Opposite Hotel Nest, Off C G Road, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-40214444/ 30075744/ 48
Fax No.:	91-79-26443007
E-Mail :	info@foreverjewel.com

DIRECTORS

As On 30.09.2011

Name :

Mr. Jaikumar Kirankumar Begani

Designation :

Managing Director

Address :

B-112, Eshita Tower, B.H Commerce Collee Narangpura, Ahmedabad-380009, Gujarat, India

Date of Birth/Age :

25.03.1970

Date of Appointment :

31.01.2000

DIN No. :

00336981

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36911GJ1996PLC028701	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED	Managing director	1/12/2010	31/01/2000	-	Active	NO
2	U45201GJ2007PTC050957	FACETS LIFESTYLE PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO
3	U74999GJ2007PLC049850	REVAH CORPORATION LIMITED	Director	21/07/2008	8/8/2007	-	Active	NO

Name :

Mr. Vinay Kantilala Mehta

Designation :

Director

Address :

F 9, Triveni 66, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

28.02.1955

Date of Appointment :

15.09.2005

DIN No. :

00249282

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U99999MH1983PTC080535	BIMEXMA TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	3/2/1986	3/2/1986	-	Active	NO
2	U67120MH1986PTC039256	PRI HOLDINGS PVT. LTD	Director	19/03/1986	19/03/1986	-	Active	NO
3	U01100MH1986PTC039495	VISHNU FARMING PVT LTD	Director	4/10/1988	4/10/1988	-	Active	NO
4	U22120MH1990PTC056299	INDEPENDENT PUBLISHERS PRIVATE LIMITED	Director	23/04/1990	23/04/1990	-	Active	NO
5	U99999MH1990PTC058300	ASHPIN HOLDINGS PRIVATE LIMITED	Director	23/12/1994	23/12/1994	-	Active	NO
6	U22120MH1996PTC103502	BIZMEDIA PRIVATE LIMITED	Director	12/3/1997	12/3/1997	-	Active	NO
7	U70100MH2005PTC152991	GROWFOREVER PROPERTIES PRIVATE LIMITED	Director	30/09/2006	3/5/2005	-	Active	NO
8	U22200MH2005PTC155300	PIXELPRO MANAGEMENT PRIVATE LIMITED	Director	30/09/2006	11/8/2005	-	Active	NO
9	U36911GJ1994PLC022621	SU-RAJ JEWELLERY (INDIA) LIMITED	Director	31/08/2005	31/08/2005	-	Active	NO
10	U36911GJ1996PLC028701	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED	Director	15/09/2005	15/09/2005	-	Active	NO
11	U36900MH1980PLC022385	SU-RAJ DIAMOND INDUSTRIES LIMITED	Director	1/10/2005	1/10/2005	-	Active	NO
12	U99999GJ1995PLC025279	SU-RAJ METALS LIMITED	Director	29/09/2009	25/11/2008	-	Strike off	NO
13	U36910GJ1992PLC018586	SU-RAJ DIAMOND DEALERS LIMITED	Director	30/09/2009	25/11/2008	-	Active	NO

Name :

Mr. Jatin Rajnikant Mehta

Designation :

Director

Address :

12, Kamal Building, 69, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

10.11.1956

Date of Appointment :

17.03.2005

DIN No. :

00017157

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L36910GJ1985PLC015915	SU-RAJ DIAMONDS AND JEWELLERY LIMITED	Director	19/04/2011	10/9/1985	-	Active	NO
2	U36911GJ1996PLC028701	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED	Director	17/03/2005	17/03/2005	-	Active	NO
3	U91120MH2005PLC157427	PALANPUR COMMUNITY FOUNDATION	Director	21/11/2005	21/11/2005	-	Active	NO
4	U99100MH1966GAP013486	THE GEM AND JEWELLERY EXPORT PROMOTION COUNCIL	Director	29/09/2006	29/09/2006	-	Active	NO
5	U36911KA2003PLC031686	CARBON ACCESSORIES LIMITED	Director	29/09/2008	3/10/2007	-	Active	NO
6	U74999GJ2007PLC049850	REVAH CORPORATION LIMITED	Director	21/07/2008	3/10/2007	-	Active	NO
7	U27205KA1991PLC011666	PEAKOK JEWELLERY LIMITED	Director	29/09/2008	10/1/2008	-	Active	NO

Name :

Mr. Madan Balkrishna Khurjekar

Designation :

Director

Address :

Agasti 24, Manisha Society, Karve Nagar, Pune-411052, Maharashtra, India

Date of Birth/Age :

28.06.1944

Date of Appointment :

29.04.2008

DIN No. :

02130166

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36911GJ1996PLC028701	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED	Director	30/09/2008	29/04/2008	-	Active	NO
2	U65999WB1987PLC043198	ASHOKA NON FERROUS METALS LIMITED	Director	16/05/2008	16/05/2008	-	Active	NO
3	L36910GJ1985PLC015915	SU-RAJ DIAMONDS AND JEWELLERY LIMITED	Director appointed in casual vacancy	30/01/2010	30/01/2010	-	Active	NO

KEY EXECUTIVE

Name :	Mr. Bhavesh A. Kinkhabwala
Designation :	Secretary
Address :	11/4 Bimanagar Soc., Satellite Road, Ahmedabad-380015, Gujarat, India
Date of Birth :	26.05.1978
Date of Appointment :	10.03.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2011

Names of Shareholders	No. of Shares
Jatin R Mehta (Karta) of Jatin R. Mehta (HUF)	5000
Kohinoor Diamonds Private Limited – India	5000100
Bombay Diamonds Company Private Limited – India	5100
Diadem Investment and Finance Private Limited – India	100
Jain VinayKumar Asish	423918
Su-Raj Diamonds and Jewellery Limited – India	26350000
SJR Commodities and Consultncies Private Limited – India	19797154
Lotus Global Investments Limited – Mauritius	6023029
J. R. Diamonds Private Limited – India	400000
Total	58004401

As On 30.09.2011

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]		11.11
Bodies corporate		88.88
Directors or relatives of directors		0.01
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Diamond Studded Jewellery

Products:

Item Code No. (ITC Code)	Product Description
710239.01	Diamonds
711319.03	Studded Jewellery
711319.01	Plain Jewellery

GENERAL INFORMATION

Bankers :

· HDFC Bank Limited, Ashram Road, Ahmedabad-3800009, Gujarat, India

· Vijaya Bank

· Syndicate Bank

· Punjab National Bank, Large Corporate Branch, Maker Tower E, Cuffe Parade, Mumbai-400005, Maharashtra, India

· Central Bank of India

· Canara Bank

· Bank of India

· State Bank of Mauritius Limited

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Working capital credit facilities from consortium of Banks export packing credit and post shipment advances (the working capital facilities, along with Stand-By Letters of Credit facilities granted by the banks for facilitating procurement of gold are secured by the hypothecations of Inventory and Receivables and Movable Fixed Assets of the company and further collaterally secured by equitable Mortgage of the Immovable property of the Company situated at Ahmedabad and Personal Guarantee of one of the Directors of the company)	447.591	420.598
Term Loan From Bank
Term loan from bank is secured by hypothecations of wind mill (Loan repayment in next 12 months Rs.6.650 millions Previous year Rs.3.325 million)	16.813	23.504
Foreign Currency Loans bank secured	17.123	0.000
Total	481.527	444.102

Banking Relations :	--
Auditors :
Name :	R. C. Reshamwala and Company Chartered Accountant
Associates :	S.J.R Commodities and Consultancies Private Limited Su-Raj Diamonds And Jewellery Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs. 10/- each	Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58004401	Equity Shares	Rs. 10/- each	Rs. 580.044 Millions

Note:

Of the above paid-up capital, Rs.200,000,000 represent 20,000,000 equity shares of Rs.10/- each fully paid-up issued during the year.

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		580.044	380.044	237.424
2] Share Application Money		0.000	0.000	403.900
3] Reserves & Surplus		1886.582	1185.533	754.235
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2466.626	1565.577	1395.559
LOAN FUNDS
1] Secured Loans		481.528	444.102	351.872
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		481.528	444.102	351.872
DEFERRED TAX LIABILITIES		7.964	9.046	8.745
TOTAL		2956.118	2018.725	1756.176
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		150.349	140.534	154.800
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.500	8.500	8.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2913.953	1796.522	1371.880
	Sundry Debtors	6250.315	3586.969	3222.399
	Cash & Bank Balances	492.603	384.694	243.675
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	265.904	189.328	47.121
Total Current Assets		9922.775	5957.513	4885.075
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6982.288	4027.079	3201.761
	Other Current Liabilities	74.089	48.743	75.638
	Provisions	69.129	12.000	14.800
Total Current Liabilities		7125.506	4087.822	3292.199
Net Current Assets		2797.269	1869.691	1592.876
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2956.118	2018.725	1756.176

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	17534.810	9012.700	6607.571
		Other Income	79.440	6.803	15.724
		TOTAL (A)	17614.250	9019.503	6623.295
Less	EXPENSES
		Cost of Materials	16696.844	8438.531	6178.699
		Labour and Direct Cost	103.210	50.005	48.102
		Administrative and Selling Expenses	186.932	165.873	159.853
		Loss on sale of fixed assets	0.000	0.000	24.416
		Employee Related Expenses	108.974	0.000	0.000
		TOTAL (B)	17095.960	8654.409	6411.070
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		518.290	365.094	212.225
Less	FINANCIAL EXPENSES (D)		131.764	161.243	62.797
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		386.526	203.851	149.428
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.247	21.144	18.021
Less	PRIOR PERIOD ITEMS BEFORE TAX		1.675	0.000	0.000
	PROFIT BEFORE TAX		365.604	182.707	131.407
Less	TAX		64.555	12.301	23.302
	PROFIT AFTER TAX		301.049	170.406	108.105
Less	EARILER YEAR INCOME TAX		0.000	0.019	(4.657)
Add	EXCESS PROVISION OF FBT WRITTEN BACK		0.000	0.000	0.000
Add	EARILER YEAR DEPRICIATION WRITTEN BACK		0.000	0.000	0.314
Less	PRIOR PERIOD INCOME/EXPENSE		0.000	0.370	1.404
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		483.667	313.650	201.978
	BALANCE CARRIED TO THE B/S		784.716	483.667	313.650

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.70	1.89	1.63
Net Profit Margin (PBT/Sales)	(%)	2.08	2.03	1.99
Return on Total Assets (PBT/Total Assets}	(%)	3.62	2.99	2.61
Return on Investment (ROI) (PBT/Networth)		0.14	0.12	0.09
Debt Equity Ratio (Total Liability/Networth)		3.08	2.89	2.61
Current Ratio (Current Asset/Current Liability)		1.39	1.46	1.48

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND PROSPECTS

The total income from operations during the year was Rs.1,7535.400 millions as against Rs. 9019.500 millions for the previous year, recording an increase of 94%. The net profit increased by 84% to Rs.314.400 millions during the year, as against Rs. 170.400 millions in the previous year.

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 20000.000 millions 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.

Form : 8

Corporate identity number of the company	U36911GJ1996PLC028701
Name of the company	FOREVER PRECIOUS JEWELLERY AND DIAMONDS LIMITED
Address of the registered office or of the principal place of business in India of the company	Kesharba Market – 2 Gotalwadi, Katrgam, Surat-395004, Gujarat, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Immovable Property Current Assets
Particular of charge holder	Punjab National Bank, Large Corporate Branch, Maker Tower E, Cuffe Parade, Mumbai-400005, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	(1) Fourth Supplemental Joint Deed of Hypothecation dated 05.03.2010 executed by Company in favour of Punjab National Bank and Other consortium members. (2) Second Extension of Memorandum of Entry in favour of PNB Consortium dated 05.03.2010 executed by Company for Equitable Mortgage.
Date of instrument Creating the charge	05.03.2010
Amount secured by the charge	Rs. 7920.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The company shall pay interest to the banks at such rate or rates as may be notified by the banks form time to time Terms of Repayment The company shall on demand pay the outstanding balance due to each of the banks Margin As advised by the banks form time to time Extent and Operation of the charge (1) Company has hypothecated all its current assets comprising of stocks, stock in process, book debts, finished goods etc.to secure monies payable in respect of banking facilities agreed to be granted by Banks (Punjab National Bank, Vijaya Bank, Syndicate Bank, Central Bank of India, Canara Bank, Bank of India and State Bank of Mauritius Limited) to Company upto a total limit of Rs.7920.000 millions (2) Company has extended equitable mortgage on immovable property by deposit of title deeds to secure the Bank Loan
Short particulars of the property charged	Borrowers current assets viz. stocks, stocks in trade raw materials goods in process, semi manufactured and manufactured goods,s emi finished & finished products, all the present and future book debts, etc The Plot of Land together with construction thereon known as "Forever House" situated at Mouje Changispur at City Taluka in Registration District Ahmedabad and Sub-District Ahmedabad-3 (Memnagar)
Date of latest modification prior to the present modification	08.12.2008
Particulars of the present modification	(1) The banking facilities are further modified vide Fourth Supplemental Joint Deed of Hypothecation dated 05.03.2010 increasing the total limits from Rs. 3775.000 millions to Rs. 7920.000 million (2) The Company has redeposited Title Deeds as and by way of equitable mortgage by deposit of title deeds by way of constructive delivery of its immovable property comprised of Plot of Land together with Construction thereon of "Forever House", Ahmedabad.

FIXED ASSETS:

· Land

· Office Equipments

· Plant and Machinery

· Computer and Peripherals

· Vehicles

· Air Condition and Equipments

· Furniture and Fixtures

· Electrical Equipments

· Building

· Wind Mill Project

· Trade Marks and Copy Rights

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. 49.68
UK Pound	1	Rs. 78.17
Euro	1	Rs. 65.51

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.