MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	JEWELEX INDIA PRIVATE LIMITED PART IX
Formerly Known As :	JEWELEX BOMBAY PRIVATE LIMITED
Registered Office :	124 / C, Mittal Court, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.10.2004
Com. Reg. No.:	11-148938
Capital Investment / Paid-up Capital :	Rs.500.000 Millions
CIN No.: [Company Identification No.]	U36910MH2004PTC148938
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ11921A
PAN No.: [Permanent Account No.]	AABCJ4523H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of all kinds of Diamond Studded Gold Jewellery.
No. of Employees :	About 2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 13000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an well established company having satisfactory track. Directors are reported to be experienced and respectable businessmen. 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 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 :	124 / C, Mittal Court, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22811454/ 22811486
E-Mail :	diamonds@jewelexindia.com shabana@jewelexindia.com
Corporate Office :	Plot No. 56-B, First Floor, Seepz, Andheri [East], Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938505/ 8510/ 28291686/ 28290699
Fax No.:	91-22-66938506/ 28290460
E-Mail :	jewelex@bom2.vsnl.net.in jewelry@jewelexindia.com
Head Office / Factory 1:	G-29, G and J Complex III, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938500 / 8501 / 8502/ 28290700/ 28291686/ 0699
Fax No.:	91-22-28290460
E-Mail :	jewelex@bom2.vsnl.net.in info@jewelexindia.com
Factory 2 :	Unit III, G – 33, G and J Complex No. III, Seepz, Andheri [East], Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938500/ 56938502
Fax No.:	91-22-28290460
E-Mail :	info@jewelexindia.com

DIRECTORS

(AS ON 30.08.2011)

Name :

Mr. Nilesh Pravin Kothari

Designation :

Director

Address :

111B, Atlas Apartments, J. Mehta Road, Walkeshwar, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

11.02.1961

Date of Appointment :

01.10.2004

DIN No.:

00093751 

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	U52393GJ1991PTC057590	JEWELEX MANUFACTURING PRIVATE LIMITED	Director	22/06/1991	22/06/1991	21/01/2008	Active	NO
2	U45200MH1983PTC030851	KOTHARI PROPERTIES PRIVATE LIMITED	Director	1/2/1999	1/2/1999	-	Dissolved	NO
3	U99999MH2000PTC124713	JEWELEX INTERNATIONAL PRIVATE LIMITED	Director	7/3/2000	7/3/2000	1/11/2009	Active	NO
4	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	1/10/2004	1/10/2004	-	Active	NO
5	U36911MH2000PTC129663	ZENSTAR JEWELLERY PRIVATE LIMITED	Director	17/02/2005	17/02/2005	25/01/2008	Converted to LLP and dissolved	NO

Name :

Mr. Anish Piyush Kothari

Designation :

Director

Address :

102, Elcid, 13 – A, Ridge Road, Mumbai 400 006, Maharashtra, India

Date of Birth/Age :

19.11.1965

Date of Appointment :

01.10.2004

DIN No.:

00093706

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	U52393GJ1991PTC057590	JEWELEX MANUFACTURING PRIVATE LIMITED	Director	22/06/1991	22/06/1991	1/3/2010	Active	NO
2	U45200MH1983PTC030851	KOTHARI PROPERTIES PRIVATE LIMITED	Director	1/2/1999	1/2/1999	-	Dissolved	NO
3	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	1/10/2004	1/10/2004	-	Active	NO
4	U45201MH2007PTC173573	GRANDIOSE INFRASTRUCTURE VENTURE ENTERPRISES PRIVATE LIMITED	Director	29/07/2008	24/07/2008	-	Active	NO
5	U74999MH2008PTC185390	GRANDIOSE FERRUM PRIVATE LIMITED	Director	29/09/2009	8/9/2008	-	Active	NO

Name :

Mr. Ashish Piyush Kothari

Designation :

Director

Address :

705, Mangal Kunj – B, 2 Mount Pleasant Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

21.05.1973

Date of Appointment :

10.05.2005

DIN No.:

00093839 

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	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	10/5/2005	10/5/2005	-	Active	NO
2	U36911MH2008PTC180990	OPULENCE CREATIONS PRIVATE LIMITED	Director	9/4/2008	9/4/2008	1/7/2010	Active	NO

KEY EXECUTIVES

Name :	Mrs. Deepti Maheshwari
Designation :	Secretary
Date of Appointment :	01.08.2011
PAN No.:	ALHPM0246Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.08.2011)

Names of Shareholders	No. of Shares
Piyush S Kothari	1850000
Nilesh P Kothari	4825000
Anish Piyush Kothari	4825000
Saryu P Kothari	7250000
Chandra P Kothari	6400000
Pravin S. Kothari	500000
Nisha N Kothari	2425000
Gopika A Kothari	2425000
D J Finance Limited, Mauritius	4500000
Shantaben Shantilal Kothari	15000000
Total	50000000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	9.00
Directors or relatives of directors	91.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of all kinds of Diamond Studded Gold Jewellery.

GENERAL INFORMATION

No. of Employees :

About 2000 (Approximately)

Bankers :

· Corporation Bank,

Overseas Branch, Earnest House, Nariman Point, Mumbai 400 021, Maharashtra, India

· ABN Amro Bank N V

Brady House, 14, Veer Nariman Road, Mumbai 400 023, Maharashtra, India

· Union Bank of India

Overseas Branch, Union Bhavan, Ground Floor, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021, Maharashtra, India

· Bank of Baroda

International Business Branch, General Bhonsale Marg, Nariman Point, Mumbai 400 021, Maharashtra, India

· United Western Bank Limited

Overseas Branch, Mittal Court, C Wing, 16^th Floor, Naniman Point, Mumbai 400 021, Maharashtra, India

· Axis Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working Capital Loans Banks Secured	2621.206	1449.362
Total	2621.206	1449.362
NOTE: Working capital facilities including in foreign currency Rs.2621.200 Millions (Previous year Rs.1412.100 Millions) Working Capital facilities are secured by hypothecation of all Current Assets including stocks and book debts, equitable mortgage by deposit of title deeds of immovable properties expect land and premises situates at Dahisar and Trade Centre, and guaranteed by all directors.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans Directors Unsecured	233.500	405.000
Other Debt Unsecured	615.380	610.300
Total	848.880	1015.300

Banking Relations :	--
Auditors :
Name :	M. M. Nissim and Company Chartered Accountants,
Address:	Barodawala Mansion, B – Wing, 3^rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24949991
Fax No.:	91-22-24949995
Pan No.:	AAAFM5103E
Email :	mail@mmnissim.com
Website :	http://www.mmnissim.com
Subsidiaries :	· Jewelex International Private Limited · Opulence Creations Private Limited
Associates :	· Jewelex Manufacturing Private Limited · Sparkling Gems and Company · Zenstar Jewellery LLP (Converted from Zenstar Jewellery Private Limited with effect from 16^th November, 2010)

CAPITAL STRUCTURE

(AS ON 30.08.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
105000000	Equity Shares	Rs.10/- each	Rs.1050.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		500.000	500.000	500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2776.135	2210.654	1766.161
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3276.135	2710.654	2266.161
LOAN FUNDS
1] Secured Loans		2621.206	1449.362	2569.794
2] Unsecured Loans		848.880	1015.300	759.900
TOTAL BORROWING		3470.086	2464.662	3329.694
DEFERRED TAX LIABILITIES		0.000	6.210	13.388
TOTAL		6746.221	5181.526	5609.243
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		714.348	664.290	710.283
Capital work-in-progress		8.142	88.762	80.220
INVESTMENT		79.426	19.434	19.433
DEFERREX TAX ASSETS		9.396	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3299.687	2881.922	2920.367
	Sundry Debtors	3462.216	2288.889	1687.599
	Cash & Bank Balances	205.964	167.059	191.602
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	753.382	624.118	768.937
Total Current Assets		7721.249	5961.988	5568.505
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1706.976	1510.908	753.972
	Other Current Liabilities	0.000	0.000	0.061
	Provisions	79.364	42.040	15.165
Total Current Liabilities		1786.340	1552.948	769.198
Net Current Assets		5934.909	4409.040	4799.307
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6746.221	5181.526	5609.243

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales		9561.196	6666.328
		Income from Renewable Energy		14.706	22.607
		Re-Make Charges	12582.030	0.574	1.659
		Exchange Rate Differences (Net)		176.721	(575.362)
		Other Income		19.992	19.828
		TOTAL (A)	12582.030	9773.189	6135.060
Less	EXPENSES
		Raw Materials Consumed		4639.279	3709.435
		Purchase of Polished Diamonds		3053.613	1662.255
		Manufacturing and Other Expenses		692.095	828.753
		Increase in Stock		728.577	(436.371)
		TOTAL (B)	11805.000	9113.564	5764.072
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses and Depreciation)	659.625	370.988
Less	FINANCIAL EXPENSES (D)			113.537	231.369
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			546.088	139.619
Less/ Add	DEPRECIATION/ AMORTISATION (F)			76.514	67.968
	PROFIT BEFORE TAX (E-F) (G)		777.030	469.574	71.651
Less	TAX (H)		154.606	(4.638)	(10.086)
	PROFIT AFTER TAX (G-H) (I)		622.424	472.212	81.737
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1357.154	924.661	849.923
Less	APPROPRIATIONS
		Transfer to General Reserve	20.000	12.000	7.000
		Dividend	6.943	2.719	0.000
		Tax on Dividend	50.000	25.000	0.000
	BALANCE CARRIED TO THE B/S		1902.635	1357.154	924.661
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	8364.104	6234.379	NA
	TOTAL EARNINGS		8364.104	6234.379	NA
	IMPORTS
		Goods	6736.248	3803.826	NA
	TOTAL IMPORTS		6736.248	3803.826	NA
	Earnings Per Share (Rs.)		12.45	9.44	1.63

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.95	4.83	1.33
Net Profit Margin (PBT/Sales)	(%)	NA	4.91	1.17
Return on Total Assets (PBT/Total Assets}	(%)	9.21	7.09	1.14
Return on Investment (ROI) (PBT/Networth)		0.24	0.17	3.16
Debt Equity Ratio (Total Liability/Networth)		1.60	1.48	1.81
Current Ratio (Current Asset/Current Liability)		4.32	3.84	7.24

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.

OPERATIONS:

The company performed well. The total income was Rs.12582.030 Millions as against Rs.9773.140 Millions for the previous year. The after tax profit was Rs.622.424 Millions as against Rs.472.212 Millions for the previous year.

SUBSIDIARIES:

The company has two subsidiary companies namely Jewelex International Private Limited holding therein 90,000 Equity Shares representing 60% of the paid up share capital of the company and Opulence Creations Private Limited holding therein 13350 Equity shares representing 53.40% of the paid up share capital of the company.

CONTINGENT LIABILITIES: (AS ON 31.03.2011)

· The company has been allotted 6,000,000 equity shares of Rs.10 each of Diamond India Limited at a premium of Rs.90 each. The company has paid four calls of Rs.10 each, Rs.4 towards share capital and Rs.36 towards share premium. Unpaid calls as at 31^st March 2011 is Rs.60/- per share aggregating to Rs.36.000 Millions (Previous Year Rs.42.000 Millions)

· Estimated value of contracts in capital account not provided for (Net of advance) Rs.116.987 Millions (Previous year Rs. Nil)

· Bank Guarantees issued to the Air Intelligence Unit, customs Department – Rs.3.869 Millions (Previous year Nil)

FORM 8

Corporate identity number of the company	U36910MH2004PTC148938
Name of the company	JEWELEX INDIA PRIVATE LIMITED PART IX
Address of the registered office or of the principal place of business in India of the company	124/C, Mittal Court, Nariman point, Mumbai - 400021, Maharashtra India shabana@jewelexindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90353333
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Corporation Bank, Mumbai Overseas Branch, 1st Floor, Earnest House, Nariman Point, MUMBAI – 400021, Maharashtra, India vlaxman@vsnl.com
Nature of instrument creating charge	a) Supplemental Joint Deed of Hypothecation ; b) Supplemental Working Capital Consortium Agreement ; c) Joint Inter Se Agreement ; and d) Memorandum of Deposit of Title Deeds. (Collectively constitute a single charge for Rs.4485.000 millions).
Date of instrument Creating the charge	17/06/2011
Amount secured by the charge	Rs.4485.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest shall be charged on the outstanding in the said account(s) at such rate or rates as may be determined by the said Banks from time to time. Terms of repayment On Demand Margin As may be stipulated by each of the Member Banks from time to time. Extent and operation of the charge a) Hypothecation of Assets of the Company as specified in Item No. 15 as a Continuing security for the due repayment of following Credit Facilities ; and b) The Company accorded and gave oral consent to Corporation Bank (CB), CB acting for itself as well as agent of other member banks to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as mentioned under Item No 15 Other The charge created herein shall rank pari passu inter se the Banks for all purposes and to all intents without any preference of one over the other or others
Short particulars of the property charged (Including location of the property)	The Whole of the Current Assets of the Borrower namely, Stocks of Raw Materials, Stocks in process, Semi-Finished and Finished Goods, Stores and Spares Hypothecation of movable fixed assets (existing and future) of both units of the Company (other than vehicles) with a net block of Rs.211.800 Millions as on 31.03.2010 Premises No.605 situated at 6th Floor, Aman Chambers, Aman Chambers Premises Co-Operative Society Limited, 113, Mama Parmanand Marg, (formerly Queen's Road), Mumbai-400 004 Premises No.123, 124, 125 on 12th Floor of "C" Wing, of Mittal Court Building situated at Nariman Point, Mumbai Premises (Gala/Unit) No.13, Prabhaevi Industrial Estate on 2nd Floor situated at Veer Savarkar Marg, Prabhadevi, Mumbai - 400 025 Office Premises No.602, admg. 77.7 sq.mtrs. on the 6th floor, in the building known as "Aman Chambers" of Aman Chambers Premises Co-Operative Society Limited Building situated on the Plot No.56B Unit No.11 at Seepz, Andheri (E) within the Village Limits of Vyarawali, Parjapur, Kondivita, Marol Taluka, Andheri Dist. Mumbai Office premises bearing No. HE7010 admg. 6719 sq.ft. Carpet area equivalenet to 9598 sq.ft. saleable/built up are in H Tower, East Wing, 7th floor and 8 numbers of
Date of instrument modifying the charge	14/01/2008
Particulars of the present modification	The Consortium charge shall now stands modified/revised upto Rs.4485.000 millions in favour of the members of Corporation Bank Consortium.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Electrical Fittings

· Furniture & Fixtures

· Office Equipments

· Computers

· Vehicles

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.50.91
UK Pound	1	Rs.81.27
Euro	1	Rs.67.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		62

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.