MIRA INFORM REPORT

Report Date :

14.09.2012

IDENTIFICATION DETAILS

Name :	DECENT DIA-JEWELS PRIVATE LIMITED
Registered Office :	103, Shreeji Chambers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.03.2010
Com. Reg. No.:	11-200688
Capital Investment / Paid-up Capital :	Rs. 400.000 Millions
CIN No.: [Company Identification No.]	U36911MH2010PTC200688
TAN No.: [Tax Deduction & Collection Account No.]	MUMD17856G
PAN No.: [Permanent Account No.]	AADCD3620M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Diamonds.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a successor “Decent Diamonds” a partnership concern started in the year 1995. It is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term rating A4+
Rating Explanation	This rating are considered to have minimal degree of safety such instruments carry very high credit risk and are susceptible to default.
Date	February 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	103, Shreeji Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23674949/ 23664444
Mobile No.:	91-9820049444 (Mr. Chetan)
Fax No.:	9122-23674807
E-Mail :	piyush@dgapartners.net ceo@decents.in
Website :	http://www.diaccents.com

DIRECTORS

AS ON 08.09.2011

Name :

Mr. Chetan Ramniklal Shah

Designation :

Chairman

Address :

5, 5th Floor, Urmi Building, Worli Sea Face, Mumbai - 400 025, Maharashtra, India

Date of Birth/Age :

46 Years

Qualification :

B Com

Experience :

20 Years

Date of Appointment :

09.03.2010

PAN No.:

AAJPS7227C

DIN No.:

00170011

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65920MH1993PTC074428	NAKSHATRA FINLEASE PRIVATE LIMITED	Managing director	25/03/2003	25/03/2003	-	Active	NO
2	U65910MH2006PTC160539	DECENT SECURITIES AND FINANCE PRIVATE LIMITED	Director	16/03/2006	16/03/2006	13/11/2006	Active	NO
3	U65910MH2006PTC162885	DIACENTER FINANCE AND LEASING PRIVATE LIMITED	Director	28/06/2006	28/06/2006	-	Active	NO
4	U65993MH2006PTC166606	DIA FINANCE AND LEASING PRIVATE LIMITED	Director	29/12/2006	29/12/2006	-	Active	NO
5	U45201MH2007PTC174056	SARTH TOWERS PRIVATE LIMITED	Director	12/09/2007	12/09/2007	-	Active	NO
6	U70102MH2007PTC176904	HEM- CHET HOMES PRIVATE LIMITED	Director	18/12/2007	18/12/2007	-	Active	NO
7	U70102MH2008PTC177248	ADAMAS REAL ESTATE PRIVATE LIMITED	Director	02/01/2008	02/01/2008	-	Active	NO
8	U45202MH2008PTC177399	DIMAR CONSTRUCTION PRIVATE LIMITED	Director	05/01/2008	05/01/2008	-	Active	NO
9	U45202MH2008PTC177420	DIAMAR CONSTRUCTION PRIVATE LIMITED	Director	07/01/2008	07/01/2008	-	Active	NO
10	U33300MH2008PTC179982	D.BENTLEY WATCH & JEWELLERY PRIVATE LIMITED	Director	12/03/2008	12/03/2008	-	Strike off	NO
11	U33300MH2009PTC197787	BRILLARE WATCH PRIVATE LIMITED	Director	11/12/2009	11/12/2009	-	Strike off	NO
12	U45202MH2009PTC198144	HPC REALTY PRIVATE LIMITED	Director	25/12/2009	25/12/2009	-	Active	NO
13	U45201MH2010PTC200334	DIMAR PROPERTIES PRIVATE LIMITED	Director	22/02/2010	22/02/2010	-	Active	NO
14	U36911MH2010PTC200688	DECENT DIA-JEWELS PRIVATE LIMITED	Director	09/03/2010	09/03/2010	-	Active	NO
15	U45200MH2009PTC197958	BEAUTIFUL MINDS REALTY PRIVATE LIMITED	Additional director	15/04/2010	15/04/2010	-	Strike off	NO
16	U45201GJ2010PTC060271	BRILLARE REALTY PRIVATE LIMITED	Director	15/04/2010	15/04/2010	-	Active	NO
17	U74900MH2009PTC196363	ARETE GEMS PRIVATE LIMITED	Director	14/06/2010	14/06/2010	-	Strike off	NO
18	U27200MH1989PTC054265	SHRUTI RE-ROLLERS PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
19	U45206MH2011PTC221887	DIAMAR PROPERTIES PRIVATE LIMITED	Director	12/09/2011	12/09/2011	-	Active	NO
20	U45400MH2012PTC233464	SHAH'S VILLA PRIVATE LIMITED	Director	17/07/2012	17/07/2012	-	Active	NO

Name :

Ms. Hema Chetan Shah

Designation :

Director

Address :

5, 5th Floor, Urmi Building, Worli Sea Face, Mumbai - 400 025, Maharashtra, India

Date of Appointment :

09.03.2010

PAN No.:

AAJPS8892D

DIN No.:

00276879

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U65920MH1993PTC074428	NAKSHATRA FINLEASE PRIVATE LIMITED	Director	25/03/2003	25/03/2003	Active	NO
2	U65910MH2006PTC162885	DIACENTER FINANCE AND LEASING PRIVATE LIMITED	Director	28/06/2006	28/06/2006	Active	NO
3	U45201MH2007PTC174056	SARTH TOWERS PRIVATE LIMITED	Director	12/09/2007	12/09/2007	Active	NO
4	U45202MH2008PTC177420	DIAMAR CONSTRUCTION PRIVATE LIMITED	Director	07/01/2008	07/01/2008	Active	NO
5	U70102MH2008PTC177248	ADAMAS REAL ESTATE PRIVATE LIMITED	Director	18/02/2008	18/02/2008	Active	NO
6	U33300MH2008PTC179982	D.BENTLEY WATCH AND JEWELLERY PRIVATE LIMITED	Director	12/03/2008	12/03/2008	Strike off	NO
7	U33300MH2009PTC197787	BRILLARE WATCH PRIVATE LIMITED	Director	11/12/2009	11/12/2009	Strike off	NO
8	U45201MH2010PTC200334	DIMAR PROPERTIES PRIVATE LIMITED	Director	22/02/2010	22/02/2010	Active	NO
9	U36911MH2010PTC200688	DECENT DIA-JEWELS PRIVATE LIMITED	Director	09/03/2010	09/03/2010	Active	NO
10	U45200MH2009PTC197958	BEAUTIFUL MINDS REALTY PRIVATE LIMITED	Additional director	15/04/2010	15/04/2010	Strike off	NO
11	U74900MH2009PTC196363	ARETE GEMS PRIVATE LIMITED	Director	14/06/2010	14/06/2010	Strike off	NO
12	U45202MH2008PTC177399	DIMAR CONSTRUCTION PRIVATE LIMITED	Director	01/07/2010	01/07/2010	Active	NO
13	U22120MH1996PTC099920	ELECTRA MULTIMEDIA PRIVATE LIMITED	Director	15/06/2011	13/04/2011	Dissolved	NO
14	U45206MH2011PTC221887	DIAMAR PROPERTIES PRIVATE LIMITED	Director	12/09/2011	12/09/2011	Active	NO
15	U70102MH2007PTC176904	HEM- CHET HOMES PRIVATE LIMITED	Additional director	09/02/2012	09/02/2012	Active	NO
16	U45400MH2012PTC233464	SHAH'S VILLA PRIVATE LIMITED	Director	17/07/2012	17/07/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 08.09.2011

Names of Shareholders	No. of Shares
Chetan Ramniklal Shah	30000000
Hema Chetan Shah	10000000
Total	40000000

AS ON 22.03.2012

Names of Allottees	No. of Shares
Chetan R Shah	7 ,500,000
Hema Chetan Shah	2 ,500,000
Total	10,000,000

AS ON 08.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Diamonds.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Syndicate Bank, International Business Branch at 10, Homji Street, Fort, Mumbai – 400023, Maharashtra, India

· Dena Bank, 17/B, Horniman Circle, Fort, Mumbai - 400023 Maharashtra India

Facilities :

Secured Loans		31.03.2011
	(Rs. In Millions)
Working capital loans banks secured		1164.514
Total		1164.514
Note: The above loan has been secured against stock and debtors, charge of office premises and other properties of group companies, and personal guarantee of directors.
Unsecured Loans		31.03.2011
	(Rs. In Millions)
Loans directors unsecured		49.950
Total		49.950

Banking Relations :	--
Auditors :
Name :	Dinesh Gandhi and Associates Chartered Accountants
Address :	301A, Aman Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFD3334L
Firm where family member of shareholders exercise significant influence :	Diacent Export
A Company in which shareholders are shareholder :	· Diacenter Finance and Leasing Private Limited · Dia Finance and Leasing Private Limited · Nakshatra Finlease Private Limited
Company where family member of shareholders exercise significant influence :	· Diva Diamond Private Limited [U36912GJ2009PTC056752] · Krypton Diamond Private Limited [U36912GJ2009PTC055852]

CAPITAL STRUCTURE

AFTER 08.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Shares	Rs. 10/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Share	Rs.10/- each	Rs. 500.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
45,000,000	Equity Shares	Rs. 10/- each	Rs. 450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Share	Rs.10/- each	Rs. 400.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		400.000
2] Share Application Money		0.000
3] Reserves & Surplus		10.510
4] (Accumulated Losses)		0.000
NETWORTH		410.510
LOAN FUNDS
1] Secured Loans		1164.514
2] Unsecured Loans		49.950
TOTAL BORROWING		1214.464
DEFERRED TAX LIABILITIES		0.037
TOTAL		1625.011
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.850
Capital work-in-progress		0.000
INVESTMENT		35.111
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	219.046
	Sundry Debtors	1548.707
	Cash & Bank Balances	71.466
	Other Current Assets	0.000
	Loans & Advances	22.455
Total Current Assets		1861.674
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	269.036
	Other Current Liabilities	0.263
	Provisions	5.325
Total Current Liabilities		274.624
Net Current Assets		1587.050
MISCELLANEOUS EXPENSES		0.000
TOTAL		1625.011

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income
		Other Income
		TOTAL	3113.850
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	3098.006
	PROFIT BEFORE TAX		15.844
Less	TAX		5.334
	PROFIT AFTER TAX		10.510
	BALANCE CARRIED TO THE B/S		10.510
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1311.115
	Earnings Per Share (Rs.)		0.26

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	0.34
Return on Total Assets (PBT/Total Assets}	(%)	0.56
Return on Investment (ROI) (PBT/Networth)		0.04
Debt Equity Ratio (Total Liability/Networth)		3.63
Current Ratio (Current Asset/Current Liability)		6.78

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DIAMOND INDUSTRY – INDIA

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

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

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

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

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

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. 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 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 total income of the company for the first year of operation is Rs.3111.850 Millions

The profit after tax for the current year is Rs. 10.510 Millions

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U36911MH2010PTC200688
Name of the company	DECENT DIA-JEWELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	103, Shreeji Chambers, Opera House, Mumbai - 400004, Maharashtra, India Email ID: piyush@dgapartners.net
This form is for	Modification of charge
Charge identification number of the modified	10232401
Type of charge	Immovable Property Book Debts Movable Property Others (Current Assets)
Particular of charge holder	Dena Bank, 17/B, Horniman Circle, Fort, Mumbai - 400023 Maharashtra India Email ID: ovrbmy@denabank.co.in
Nature of description of the instrument creating or modifying the charge	1.Memorandum of creation of equitable mortgage
Date of instrument Creating the charge	03.07.2012
Amount secured by the charge	Rs. 1700.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As stipulated by each bank's sanction terms Terms of Repayment As may be specified by the bank from time to time. Margin As stipulated by each bank's sanction terms Extent and Operation of the charge 1)First pari passu charge created by way of hypothecation on moveable properties & current assets of the Company, 2)Pari passu charge created by way of mortgage on immovable property of Decent Dia-jewels Private Limited (erstwhile partnership firm - Decent Diamonds), in favour of Dena Bank, Syndicate Bank, Union Bank of India and Axis Bank Limited, as security for repayment of financial facilities granted by these banks to Decent Dia-jewels Private Limited to secure the revised credit limit of Rs.1700.000 Millions
Short particulars of the property charged	Moveable properties of the Company, more particularly described in Schedule I to the Second Supplemental Joint Deed of Hypothecation. Current assets of the Company, more particularly described in Schedule I to the Second Supplemental Joint Deed of Hypothecation. Office Premises bearing No.103, Shreeji Chambers Premises Co Operative Society Limited, Tata Road No.2, Opposite Prasad Chambers, Opera House, Mumbai-400004, belonging to Decent Dia-jewels Private Limited Property No. 201 and 202. adm about 656.22 sq mtrs, 2nd Flr, Shreeji Building, alongwith undivided property share adm about 190.22 sq mtrs in the land underneath the said Building and constituting the southern portion of the land of Final Plot No.122 paikee of T.P. scheme no. 3 (Katargam) (R.S. No.309 paikee and 310 paikee of Moje:Katargam) (City Survey Nondh No.3640 of Ward:Katargam); situated in the Katargam.. .. Area of City Surat, Taluka; City: (Choryasi) District; Surat
Particulars of the present modification	By the present Second modification the total fund based & non fund based working capital limits has been increased from Rs.1200.000 Millions to Rs.1700.000 Millions by extension of equitable mortgage and extension of hypothecation over the hypothecated assets to cover the total revised limits of Rs.1700.000 Millions. Additional Security by way of Mortgage of Property situated at Surat. By the consent of all the parties Dena Bank is designated and recognised as the lead Bank of the consortium.

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. 55.44
UK Pound	1	Rs. 89.31
Euro	1	Rs. 71.62

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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

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.