MIRA INFORM REPORT

Report Date :

13.03.2012

IDENTIFICATION DETAILS

Name :	DHARMANANDAN DIAMONDS PRIVATE LIMITED
Registered Office :	Bharat Diamond Bourse, FE-7011/12, F Tower, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.08.2007
Com. Reg. No.:	11-173674
Capital Investment / Paid-up Capital :	Rs.80.000 Millions
CIN No.: [Company Identification No.]	U36912MH2007PTC173674
TAN No.: [Tax Deduction & Collection Account No.]	MUMD15331B MUMD12222A
PAN No.: [Permanent Account No.]	AACCD6676J AACCD0906H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Diamonds, Gold and Silver Jewelery, Platinum Jewelery.
No. of Employees :	3000 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 12000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a successor of Dharmanandan Diamonds, a Partnership concern started in the year 1993. It is an established company having satisfactory track. Trade relation 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.

LOCATIONS

Registered Office / Head Office :	Bharat Diamond Bourse, FE-7011/12, F Tower, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-40041001 / 2 / 3 / 4
Fax No.:	91-22-66355533
E-Mail :	info@dharmanandan.com account@dharmanandan.com dharmanandan14@yahoo.com
Website :	www.dharmanandan.com
Location :	Owned
Factory :	Behind Patel Faliya, Gotalawadi, Katargam Road, Surat - 395 004, Gujarat, India
Tel. No.:	91-261-2533777
Fax No.:	91-261-2533775

DIRECTORS

As on 26.07.2010

Name :	Mr. Laljibhai Tulshibhai Patel
Designation :	Chairman cum Managing Director
Address :	52, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	28.11.1955
Date of Appointment :	31.08.2007
DIN No :	01539972
Name :	Mr. Tulsibhai Keshavbhai Patel
Designation :	Director
Address :	57, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	11.07.1950
Date of Appointment :	31.08.2007
DIN No :	01540000
Name :	Mr. Dayalbhai Keshavbhai Patel
Designation :	Director
Address :	56, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	11.03.1954
Date of Appointment :	31.08.2007
DIN No :	01540092
Name :	Mr. Prakashbhai Tulsibhai Goti
Designation :	Director
Address :	12/A, Ramesh Niwas, 51-C, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	28.09.1973
Date of Appointment :	31.08.2007
DIN No :	01540039
Name :	Mr. Sanjaykumar Jerambhai Virani
Designation :	Director
Address :	E-1, Rock View Apartment, Raghavji Road, Mumbai-400036, Maharashtra, India
Date of Birth/Age :	20.02.1976
Date of Appointment :	31.08.2007
DIN No :	01660345
Name :	Mr. Hiteshkumar Laljibhai Patel
Designation :	Director
Address :	52, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	31.05.1979
Date of Appointment :	31.08.2007
DIN No :	01660527
Name :	Mr. Piyushkumar Laljibhai Patel
Designation :	Director
Address :	51-52, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	04.05.1982
Date of Appointment :	31.08.2007
DIN No :	00858190
Name :	Mr. Shailesh Dayalbhai Goti
Designation :	Director
Address :	56, Narayanmuni Nagar, Ved Road, Surat-395004, Gujarat, India
Date of Birth/Age :	09.10.1984
Date of Appointment :	31.08.2007
DIN No :	00858206

KEY EXECUTIVES

Name :	Mr. Jadhav
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.07.2010

Names of Equity Shareholders	No. of Shares
Laljibhai Tulshibhai Patel	1000000
Tulsibhai Keshavbhai Patel	500000
Dayalbhai Keshavbhai Patel	500000
Prakashbhai Tulsibhai Goti	500000
Sanjaykumar Jerambhai Virani	500000
Hiteshkumar Laljibhai Patel	833500
Piyushkumar Laljibhai Patel	778000
Shailesh Dayalbhai Goti	388500
Total	5000000

As on 26.07.2010

Names of Preference Shareholders	No. of Shares
Dharmanandan Industries Limited, India	1000000
Total	1000000

As on 21.03.2011

List of Allotees

Names of Equity Shareholders	No. of Shares
Nirmalaben Laljibhai Patel	400000
Rashmitaben Hiteshbhai Patel	561500
Dharaben Laljibhai Patel	617000
Manjulaben Dayalbhai Patel	60000
Komalben Shaileshbhai Patel	361500
Total	2000000

As on 15.09.2011

List of Allottees

Names of Equity Shareholders	No. of Shares
Laljibhai Tulshibhai Patel	60000
Hiteshkumar Laljibhai Patel	63000
Piyushkumar Laljibhai Patel	63000
Tulsibhai Keshavbhai Patel	9000
Prakashbhai Tulsibhai Goti	24000
Dayalbhai Keshavbhai Patel	24000
Shaileshbhai Dayalbhai Patel	42000
Sanjaykumar Jerambhai Virani	15000
Total	300000

As on 15.12.2011

List of Allottee

Names of Equity Shareholders	No. of Shares
Laljibhai Tulshibhai Patel	110000
Hiteshkumar Laljibhai Patel	115500
Piyushkumar Laljibhai Patel	115500
Tulsibhai Keshavbhai Patel	16500
Prakashbhai Tulsibhai Goti	44000
Dayalbhai Keshavbhai Patel	44000
Shaileshbhai Dayalbhai Patel	77000
Sanjaykumar Jerambhai Virani	27500
Total	550000

As on 26.07.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Diamonds, Gold and Silver Jewelery, Platinum Jewelery.

Products :

ITC CODE	PRODUCT
710231 00	Rough Diamonds
710239 10	Polished Diamonds
711319 10	Wind Energy Studded Jewelery

Exports :

Products :

· Diamonds

· Gold and Silver Jewelery

· Platinum Jewelery

Countries :

· Belgium

· USA

· Hong Kong

Imports :

Products :

Raw Materials

Countries :

Belgium

Terms :

Selling :

Cash and Credit (30 days and 60 days)

Purchasing :

Cash and Credit (30 days and 60 days)

GENERAL INFORMATION

Customers :

Wholesaler, Retailers and End Users

No. of Employees :

3000 (Approximately) (In Office + In Factory)

Bankers :

· State Bank of India, Diamond Branch, 1^st Floor, Majestic Shopping Centre, Girgaon, Opera House, Mumbai-400004, Maharashtra, India

· Dena Bank, Overseas Branch, 17B, Hornimam Circle, Fort, Mumbai - 400023, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working Capital Loans Banks Secured	4452.023	3020.277
Loans Taken for Other Fixed Assets Secured	43.523	75.151
Loans Taken for Vehicles Secured	12.159	4.265
Total	4507.705	3099.693
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans Subsidiaries Unsecured	545.718	21.958
Loans Directors Unsecured	764.569	811.440
Total	1310.287	833.398

Banking Relations :	--
Auditors :
Name :	Rajiv N Shah and Associates Chartered Accountants
Address :	A-001, Shreenath Darshan, Off Factory Lane, Borivali (West), Mumbai-400092, Maharashtra, India
PAN No.:	AAFPS01156E
Wholly Owned Subsidiaries :	· DDL Investment Limited
Step in Subsidiary :	· Dharam Creation HK Limited
Other Related Party :	· Divine Equity Research Private Limited · Gunjan Exports · Dharm Exim · Karpasa Exports Private Limited · Dharmanandan Industries Limited

CAPITAL STRUCTURE

After 26.07.2011

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.88.500 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs. 90.000 Millions
1000000	Preference Shares	Rs. 10/- each	Rs. 10.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions
1000000	Preference Shares	Rs. 10/- each	Rs.10.000 Millions
	Total		Rs.80.000 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		80.000	60.000	60.000
2] Share Application Money		600.000	530.000	0.000
3] Reserves & Surplus		2298.652	1330.212	971.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2978.652	1920.212	1031.842
LOAN FUNDS
1] Secured Loans		4507.705	3099.693	2927.736
2] Unsecured Loans		1310.287	833.398	1162.211
TOTAL BORROWING		5817.992	3933.091	4089.947
DEFERRED TAX LIABILITIES		0.000	111.374	101.203
TOTAL		8796.644	5964.677	5222.992
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1477.056	1413.692	1297.380
Capital work-in-progress		205.750	66.268	42.500
INVESTMENT		477.754	24.668	0.720
DEFERREX TAX ASSETS		24.884	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4034.602	1985.708	1174.274
	Sundry Debtors	4999.545	4421.286	3592.085
	Cash & Bank Balances	138.602	137.707	74.984
	Other Current Assets	16.821	9.296	0.000
	Loans & Advances	241.244	113.721	70.471
Total Current Assets		9430.814	6667.718	4911.814
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2659.080	2148.954	999.131
	Other Current Liabilities	9.115	10.115	10.175
	Provisions	151.905	49.167	20.764
Total Current Liabilities		2820.100	2208.236	1030.070
Net Current Assets		6610.714	4459.482	3881.744
MISCELLANEOUS EXPENSES		0.486	0.567	0.648
TOTAL		8796.644	5964.677	5222.992

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	19359.400	12678.500	8700.260
		Other Income
		TOTAL (A)	19359.400	12678.500	8700.260
Less	EXPENSES
		Office Expenses	18744.920	12094.500	8355.550
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	18744.920	12094.500	8355.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		614.480	584.000	344.710
Less	FINANCIAL EXPENSES (D)		129.020	141.630	169.040
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		485.460	442.370	175.670
Less/ Add	DEPRECIATION/ AMORTISATION (F)		60.930	52.780	48.470
	PROFIT BEFORE TAX (E-F) (G)		424.530	389.590	127.200
Less	TAX (H)		24.600	31.220	77.760
	PROFIT AFTER TAX (G-H) (I)		449.130	358.370	49.440
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		490.210	131.840	82.400
	BALANCE CARRIED TO THE B/S		939.340	490.210	131.840
	EXPORT VALUE		NA	11330.050	8179.360
	IMPORTS
		Diamonds	NA	11245.430	6126.720
	TOTAL IMPORTS		NA	11245.430	6126.720
	Earnings Per Share (Rs.)		56.14	59.73	--

Expected Sales (2011-2012) : Rs.25000.000 Millions

The above information has been parted by Mr. Jadhav.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.32	2.83	0.57
Return on Total Assets (PBT/Total Assets}	(%)	3.89	4.82	2.05
Return on Investment (ROI) (PBT/Networth)		0.14	0.20	0.12
Debt Equity Ratio (Total Liability/Networth)		2.90	3.20	1.00
Current Ratio (Current Asset/Current Liability)		3.34	3.02	4.77

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry creditors
Creditors due small micro enterprises	0.000	0.000	999.131
Creditors due others	2659.080	2148.954
Total	2659.080	2148.954	999.131

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.

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	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	No
16) Details of sister concerns	No
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	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Note:

Registered Office of the company has been shifted from “G-14, Prasad Chambers, Opera House, Mumbai – 400 004, Maharashtra, India” to “1014-16, Prasad Chambers, Mumbai-400004, Maharashtra, India” w.e.f. 01.12.2008. The Registered address of the company has been again shifted from “1014-16, Prasad Chambers, Mumbai-400004, Maharashtra, India” to the Present address

TURNOVER AND PROFITS

During the financial year ended March 31, 2011 the Sales and Other income of the company increased from Rs. 12678.500 Millions to Rs. 19359.400 Millions achieving a growth by 52.69%. The Net Profit after tax stood at Rs. 449.130 Millions as against Rs. 358.370 Millions in the previous year indicating an increase by 25.33%.

DIAMOND AND JEWELLERY

The Company is making conscientious efforts in addressing the large market opportunities end users with a view to obtaining optimum value addition to its products and with the motto of providing most reasonable and guaranteed products to its customers to their umpteen satisfaction to the customers world-wide that exist in the diamond as well as jewelry Segment both in India and abroad. India, China, Israel and Belgium are the leading players in the diamond cutting and polishing industry. India exports 95% of world’s diamonds. And Dharmanandan on the strength of its most modern and latest plant and machinery installed in all its factories and with the use of advanced technology boasts of a one of the key players in the Industry. Exports of Gems and jewelry has over a period of last one year seen an unforeseen price hike in all categories of diamonds all across the globe. The diamond Industry has never seen a huge demand rally in the history of diamond business world-wide. The prices of and demand for all types of diamonds have shot up incredibly in the span of past six months. Large opportunities continue to exist in global trade by converting diamonds into jewelry before exports in the process of value addition. In a bid to spread its wings in all parts of the world and with the purpose of making the products of the Company accessible everywhere, the Company has not only come forward with strategic acquisitions and takeovers of entities dealing in like businesses having good reputation and sizeable business on hand and most trustworthy and strong customer base in the countries like USA, Belgium and Hong Kong. In addition, the Company has also made marketing tie ups with various parties in the far-east countries and is also actively looking for such types of arrangements in India as well. Further, the directors are pleased to announce that the company is doing extremely well with its E-business module through its subsidiaries. And the Company has also commenced full fledged 24-hour call centre for the product information awareness and dealing its goods for the benefit of the global customers the performance of which is overwhelming. The Company has quality sourcing facilities accruing to competitive prices and consistent market demand. Modern processing facilities are located at Surat, Gujarat with three operational polishing units, a workforce of around 3200 people and monthly production of 41,000 to 42,000 Carats of Cut and Polish Diamonds. The Company engages in an end-to-end diamond processing chain which begins with Assortment, Planning, Cleaving, Sawing, Cutting and finally Polishing which is more clearly shown in the chart given here below following stringent and ultra-modern quality control devices and measures. Diamond export countries include the U.S., Hong Kong, Belgium, Japan, Middle East, Fareast, Europe, Thailand and Singapore.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36912MH2007PTC173674
Name of the company	DHARMANANDAN DIAMONDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Bharat Diamond Bourse, FC-7011/12, F Tower, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India E-mail : dharmanandan14@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10091658
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Diamond Branch, 1^st Floor, Majestic Shopping Centre, Girgaon, Opera House, Mumbai-400004, Maharashtra, India E-mail : kamalax_saraf@hotmail.com
Nature of instrument creating charge	No Instruments, Deed of Mortgage.
Date of instrument Creating the charge	21.10.2011
Amount secured by the charge	Rs.6500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As mentioned in the respective consortium banks sanction letters. Terms of repayment As mentioned in the respective consortium banks sanction letters. Margin As mentioned in the respective consortium banks sanction letters. Extent and operation of the charge As mentioned in the respective consortium banks sanction letters.
Short particulars of the property charged (Including location of the property)	All and singular the borrowers stocks of raw materials, semi finished and finished goods, stores and spares not relating to the plant and machinery (consumable stores and spares) bills receivables, book debts and all other movables of the borrower but including documents of title to goods and other assets, such as outstanding moneys, receivables including receivables by way of cash assistance and/or cash including under the cash incentive scheme or any other scheme claims, scheme or any other scheme, bills, invoices, documents, contracts, engagements, investments and rights both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the borrowers factories, premises and godowns situated at Mumbai and Surat in the state of Maharashtra and Gujarat or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever’s in the possession of the borrower and either by way of substitution.
Date of instrument modifying the charge	21.10.2011
Particulars of the present modification	Memorandum of entry was executed by State Bank of India (SBI), SBI acting for itself and as an agent of the Royal Bank of Scotland, Union Bank of India, Dena Bank, IDBI Bank Limited., Antwerp Diamond Bank N.V., Central Bank of India, State Bank of Patiala, Bank of Baroda, Bank of India and Yes Bank limited By way of an equitable mortgage by way of first charge by deposit of title deeds over the immovable Property to secure its extended limits of Rs.6500.000 Millions

FIXED ASSETS

- Plant and Machinery

- Computer Systems

- Furniture and Fixtures

- Vehicles

- Office Premises

- Land

- Factory Building

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. 49.94
UK Pound	1	Rs.78.25
Euro	1	Rs.65.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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		46

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.