MIRA INFORM REPORT

Report Date :

10.02.2012

IDENTIFICATION DETAILS

Name :	KARP IMPEX LIMITED (TRF.)
Registered Office :	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
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 16000000
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 – 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

INFORMATION PARTED BY

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

LOCATIONS

Registered Office :	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-40608888
Fax No.:	91-22-40608899
E-Mail :	karp@karpgroup.com
Website :	www.karpgroup.com
Corporate Office :	1141, Prasad Chambers, Opera House, Mumbai - 400 004, Maharashtra, India
Factory :	Karp House, 8/A, Lal Darwaja, Surat – 395 008, Gujarat, India
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Anilkumar Bhikhabhai Virani
Designation :	Managing Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	02.10.1958
Qualification :	B.Com
Date of Appointment :	24.04.1995
DIN No.:	00279789

Other Directorship

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	U27205MH1995PLC158868	Karp Impex Limited (Trf.)	Managing director	24-04-95	24-04-95	-	Active	NO
2	U51100GJ2000PTC037823	Karp Jewellery Private Limited	Director	20-04-00	20-04-00	-	Active	NO
3	U45202GJ2001PLC039548	Laxmi Shops and Warehouses Limited	Director	16-05-01	16-05-01	-	Active	NO
4	U70100MH2005PTC153270	Karp Estate Private Limited	Director	13-05-05	13-05-05	-	Active	NO
5	U29221GJ1991PTC014914	Jyoti CNC Automation Private Limited	Director	22-08-06	22-08-06	12-08-07	Active	NO
6	U72900MH2006PTC164469	Techno Info Software Private Limited	Director	30-09-09	12-06-08	-	Active	NO
7	U70102MH2010PTC207786	Parceria Real Estate Developers Private Limited	Director	17-09-10	17-09-10	-	Active	NO
8	U74900MH2007PTC172092	Sardar Mani Safe Vault Private Limited	Additional director	08-10-10	08-10-10	-	Active	NO
9	U51398MH1984NPL033787	Bharat Diamond Bourse	Director	23-12-10	23-12-10	-	Active	NO
10	U65990MH1990PTC056225	Sanika Assets Managment and Investments Private Limited	Director	17-06-11	17-06-11	-	Active	NO

Name :	Mr. Kishorkumar Bhikhabhai Virani
Designation :	Chairman and Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	28.09.1956
Qualification :	B.E. Mechanical
Date of Appointment :	24.04.1995
DIN No.:	00279641

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27320GJ1989PLC012127	Hi-Tech Investment Castings Limited	Director	17-04-89	17-04-89	Active	NO
2	U27205MH1995PLC158868	Karp Impex Limited (Trf.)	Director	24-04-95	24-04-95	Active	NO
3	U51100GJ2000PTC037823	Karp Jewellery Private Limited	Director	20-04-00	20-04-00	Active	NO
4	U45202GJ2001PLC039548	Laxmi Shops and Warehouses Limited	Director	16-05-01	16-05-01	Active	NO
5	U91110GJ2000NPL039065	Gujarat Hira Bourse	Director	09-03-04	09-03-04	Active	NO
6	U70100MH2005PTC153270	Karp Estate Private Limited	Director	13-05-05	13-05-05	Active	NO
7	U40102GJ2007PLC050211	Jeruz Energy Ventures Limited	Director	21-03-07	21-03-07	Active	NO
8	U45201GJ2007PTC051392	Sooree Infrasystems Private Limited	Director	25-07-07	25-07-07	Under Process of Striking off	NO
9	U36912GJ2010PLC062808	Surat Rough Diamond Sourcing (India) Limited.	Director	04-11-10	04-11-10	Active	NO
10	U40108GJ2007PTC050038	Jeruz Greenpower Private Limited	Director	01-03-11	01-03-11	Active	NO
11	U40107GJ2007PTC049934	Jeruz Magne Gas Private Limited	Director	01-03-11	01-03-11	Active	NO

Name :	Mr. Nirav Anilkumar Virani
Designation :	Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	10.07.1984
Qualification :	BBA
Date of Appointment :	05.12.2005
DIN No.:	00151196

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27205MH1995PLC158868	Karp Impex Limited (Trf.)	Director	05-12-05	05-12-05	Active	NO
2	U45202GJ2001PLC039548	Laxmi Shops and Warehouses Limited	Director	01-11-06	01-11-06	Active	NO
3	U72900MH2006PTC164469	Techno Info Software Private Limited	Director	30-09-09	12-06-08	Active	NO
4	U51398MH1989PTC052848	Karp Diamonds Private Limited	Director	29-09-09	01-12-08	Active	NO
5	U65990MH1990PTC056225	Sanika Assets Managment And Investments Private Limited	Director	17-06-11	17-06-11	Active	NO

Name :	Mr. Kailash Anil Virani
Designation :	Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea 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 Kishor Virani
Designation :	Whole Time Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea 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

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27205MH1995PLC158868	Karp Impex Limited (Trf.)	Whole-time director	05-12-05	05-12-05	Active	NO
2	U45202GJ2001PLC039548	Laxmi Shops and Warehouses Limited	Director	01-11-06	01-11-06	Active	NO
3	U40108GJ2007PTC050038	Jeruz Greenpower Private Limited	Director	01-03-11	01-03-11	Active	NO
4	U40107GJ2007PTC049934	Jeruz Magne Gas Private Limited	Director	01-03-11	01-03-11	Active	NO

Name :	Mrs. Neelaben Kishor Virani
Designation :	Whole Time Director
Address :	Jai Mayur Co-Operative Housing Society Limited, 51, Laxmi Vilas, 87, Nepensea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	05.09.1957
Date of Appointment :	24.04.1995
DIN No.:	01585711

KEY EXECUTIVES

Name :	Mr. Jayesh Desai
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Anilkumar Bhikhabhai Virani	2450000
Kishorkumar Bhikhabhai Virani	2450000
Neela Kishor Virani	49000
Ashwin Govindbhai Kukadia	1000
Kailash Anil Virani	49000
Pinal Kishor Virani	500
Ashmi Rahul Mody	500
Total	5000000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.98
Other top fifty shareholders	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)	710231.00
Product Description	Rough Diamonds

Brand Names :

“MONT BLANC”

GENERAL INFORMATION

No. of Employees :

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

Bankers :

· State Bank of Saurashtra, 1^st Floor, Diamond Queen, 198, Raja Ram Mohan Roy Marg, Girgam, Mumbai – 400 004, Maharashtra, India

· ING Vysya Bank Limited, Patel Chambers, Ground Floor, Sandhurst Bridge, Opera House, Mumbai – 400 007, Maharashtra, India

· 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

· 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 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Working capital loans banks secured
Packing credit (PC/PCFC)	2570.505	2583.440
Post shipment credit (PSC/PSCFC)	3124.996	3007.281
Total	5695.501	5590.721

Notes

The working capital loans are secured against the fixed deposits of Rs.26.143 millions (as at 31/03/2010 Rs.24.953 millions). Further, all other working capital facilities are secured by equitable mortgage of office premises (including office premises of M/s. Karp Diamonds Private Limited by deposit of title deeds), personal guarantees of four directors of the Company, hypothecation of stock-in-trade, book debts, movables and other assets both present and future.)

Banking Relations :

--

Auditors :

Name :

Suresh Surana and Associates

Chartered Accountants

Address 1:

310, Ahura Centre, 82, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

Tel. No.:

91-22-66515570

Fax No.:

91-22-22875771

E-Mail:

emails@ss.associate.com

Website:

http://www.ss.associates.com

PAN No.:

AAQFS7647M

Associates :

Karp Impex N.V (from 16.12.2010)

Subsidiaries :

Name of Unit	Karp Impex N.V. (till 15.12.2010)
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 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

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 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

Enterprise in which Key management personnel have significant influence :

· Park Info Tec

· Karp Jewellery Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3860.195	3289.186	2840.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3910.195	3339.186	2890.645
LOAN FUNDS
1] Secured Loans		5695.501	5590.721	6002.301
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		5695.501	5590.721	6002.301
DEFERRED TAX LIABILITIES		89.772	86.982	73.976
TOTAL		9695.468	9016.889	8966.922
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		681.209	582.968	560.605
Capital work-in-progress/ Advances for Fixed Assets		19.863	50.240	50.240
INVESTMENT		537.674	619.904	445.396
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5978.851	4209.039	3360.873
	Sundry Debtors	4209.034	3795.473	4808.808
	Cash & Bank Balances	82.720	95.765	58.289
	Other Current Assets	0.334	0.073	1.376
	Loans & Advances	481.302	553.919	387.757
Total Current Assets		10752.241	8654.269	8617.103
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	786.212	270.512	521.119
	Other Current Liabilities	1235.428	380.666	13.290
	Provisions	273.879	239.314	172.013
Total Current Liabilities		2295.519	890.492	706.422
Net Current Assets		8456.722	7763.777	7910.681
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9695.468	9016.889	8966.922

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	12267.213	11801.161	10995.669
		Other Income	408.654	351.825	278.260
		TOTAL (A)	12675.867	12152.986	11273.929
Less	EXPENSES
		Consumption materials changes inventories	11044.190	10640.485	10438.187
		Manufacturing service costs	341.646	337.879
		Employee related expenses	90.404	68.701
		Administrative selling other expenses	281.387	169.688
		Prior period items	(4.356)	(7.888)
		TOTAL (B)	11753.271	11208.865	10438.187
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		922.596	944.121	835.742
Less	INTEREST FINANCIAL CHARGES (D)		206.029	376.581	378.992
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		716.567	567.540	456.750
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.871	37.292	35.022
	PROFIT BEFORE TAX (E-F) (G)		674.696	530.248	421.728
Less	TAX (H)		103.686	81.707	57.664
	PROFIT AFTER TAX (G-H) (I)		571.010	448.541	364.064
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2087.196	1638.655	1284.591
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	10.000
	BALANCE CARRIED TO THE B/S		2658.206	2087.196	1638.655
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11064.503	11236.355	11310.461
	TOTAL EARNINGS		11064.503	11236.355	11310.461
	IMPORTS
		Raw Materials (Rough Diamonds)	NA	6602.899	5767.668
		Finished Goods (Polished Diamonds)	NA	3700.611	4720.959
		Finished Goods (Jewellery)	NA	39.472	0.000
		Stores & Spares	NA	7.827	2.371
		Capital Goods	NA	18.328	15.273
	TOTAL IMPORTS		NA	10369.137	10506.271
	Earnings Per Share (Rs.)		115.00	90.63	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.50	3.69	3.23
Net Profit Margin (PBT/Sales)	(%)	5.50	4.49	3.84
Return on Total Assets (PBT/Total Assets}	(%)	5.90	5.74	4.60
Return on Investment (ROI) (PBT/Networth)		0.17	0.16	0.15
Debt Equity Ratio (Total Liability/Networth)		2.04	1.94	2.32
Current Ratio (Current Asset/Current Liability)		4.68	9.72	12.20

LOCAL AGENCY FURTHER INFORMATION

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. India 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.

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.

FORM 8

Corporate identity number of the company	U27205MH1995PLC158868
Name of the company	KARP IMPEX LIMITED (TRF.)
Address of the registered office or of the principal place of business in India of the company	GE – 3051, ‘G’ Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	ING Vysya Bank Limited Patel Chambers, Ground Floor, Sandhurst Bridge, Opera House, Mumbai – 400 007, Maharashtra, India E-Mail : giridharvvrn@ingvysyabank.com
Nature of description of the instrument creating or modifying the charge	Deed of General Hypothecation.
Date of instrument Creating the charge	05.01.2012
Amount secured by the charge	Rs.200.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest PSL/EBRD : As per RBI/Bank guidelines from time to time. PCL/PCFC : As per RBI/Bank guidelines from time to time. Terms of repayment PSL/EBRD : On Demand PCL/PCFC : On Demand Margin PSL/EBRD : Nil PCL/PCFC : 10% Extent and operation of the charge First pari passu charge on the current assets of the company with other Consortium Member Banks. First pari passu charge on the movable assets of the company with other Consortium Member Banks. Others PSL/EBRD : Rs.120.000 millions. PCL/PCFC : Rs.80.000 millions Interchangeability from PCL to PSL permitted up to 100% of PCL Limit. Interchangeability from PSL to PCL permitted up to 25% of PSL limit.
Short particulars of the property charged	· The whole of the current assets of the company namely stocks of raw materials, stocks in process, semi-finished goods, stores and spares not relating to Plant and machinery (consumable stores and spares), bills receivable and book debts and all other assets and movables both present and future. · The whole of the movable assets of the company (other than the current assets) including but not limited to the movable machinery, consumable stores and spares relating to plant and machinery, equipment, vehicles, computers, furniture, fixtures wherever situated at various locations or whether in transit.

FIXED ASSETS

· Land

· Plant and Machinery

· Computer

· Furniture and Fittings

· Office Equipment

· Electric Installation

· Office Premises

· Factory Building

· Local Vehicle

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.49.29
UK Pound	1	Rs.78.10
Euro	1	Rs.65.59

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.