MIRA INFORM REPORT

Report Date :

12.04.2013

IDENTIFICATION DETAILS

Name :	SHREE RAMKRISHNA EXPORTS PRIVATE LIMITED
Registered Office :	EE-6011, Bharat Diamond Bourse, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400005, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Partnership Concern)
Date of Incorporation :	02.04.2012
Com. Reg. No.:	55-229115
Capital Investment / Paid-up Capital :	Rs.1800.000 Millions (Partnership Concern)
CIN No.: [Company Identification No.]	U36912MH2012PTC229115
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Diamonds.
No. of Employees :	Above 3500 (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 8800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was established as a proprietory concern in 1964 and during 1976 it got converted into a partnership concern. In April 2012, the concern got converted unto a private limited. It has a satisfactory track record. It has established market position in the cut and polished diamond industry. The financial position of the company is good. Performance capability is also high. Trade relations are fair. Business is active. Payment terms are usually correct and as per commitment. The company can be considered for business dealing 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.

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	BBB+ (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	September 04, 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.

INFORMATION PARTED BY

Name :	Mr. Hitesh Italiya
Designation :	Accounts Departments
Contact No.:	91-40405555
Date :	10.04.2013

LOCATIONS

Registered Office :	EE-6011, Bharat Diamond Bourse, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400005, Maharashtra, India
Tel. No.:	91-22-40405555
Fax No.:	91-22-40405500
E-Mail :	law@lemonconsulting.net hitesh.italiya@srkexport.in vishal.jodhani@srkexport.in isha.dada@astuteconsulting.com
Website :	http://www.srkexport.com
Location :	Owned
Factory :	'SRK Empire', 99, Vastadevdi Road, Katargam, Surat - 395004, Gujarat, India
Tel. No.:	91-261-4040555
Fax No.:	91-261-4040550
E-Mail :	surat@srkexport.in

DIRECTORS

As on: 15.03.2012

Name :	Mr. Govindbhai Laljibhai Dholakia
Designation :	Director
Address :	801-A, Tirupati Apartment, Amar Building, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	07.11.1947
DIN No.:	00524146
Name :	Mr. Shreyansh Govindbhai Dholakia
Designation :	Director
Address :	801-A, Tirupati Apartment, Amar Building, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	21.05.1987
DIN No.:	00523418
Name :	Mr. Jayantibhai Vashrambhai Narola
Designation :	Director
Address :	54, Kantareshwar Society, Katar Gam Road, Surat – 395004, Gujarat, India
Date of Birth/Age :	05.06.1964
DIN No.:	00587167
Name :	Mrs. Champaben Govindbhai Dholakia
Designation :	Director
Address :	801-A, Tirupati Apartment, Amar Building, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	23.09.1954
DIN No.:	00524249
Name :	Mr. Rahul Nagjibhai Dholakia
Designation :	Director
Address :	5, Gayatri Nagar Society, 5, Katargam Road, Surat – 395004, Gujarat, India
Date of Birth/Age :	12.12.1971
DIN No.:	00524017
Name :	Mr. Vashrambhai Bhurabhai Narola
Designation :	Director
Address :	54, Kantareshwar Society, Katar Gam Road, Surat – 395004, Gujarat, India
Date of Birth/Age :	21.03.1942
DIN No.:	00523329
Name :	Mr. Arjan Lalji Dholakiya
Designation :	Director
Address :	8/B, Vallabh Nagar Society ,Varachha Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	01.06.1956
DIN No.:	00523491

KEY EXECUTIVES

Name :	Mr. Hitesh Italiya
Designation :	Accounts Departments

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 15.03.2012

Names of Shareholders	No. of Shares
Champaben Govindbhai Dholakia	1000000
Govindbhai Laljibhai Dholakia	3000000
Arjanbhai Lalji Dholakiya	1500000
Jayantibhai Vashrambhai Narola	1500000
Rahulbhai Nagjibhai Dholakia	1000000
Vashrambhai Bhurabhai Narola	1000000
Shreyansh Govindbhai Dholakia	1000000
Total	10000000

As on: 04.08.2012

Names of Allottee	No. of Preference Shares
Govindbhai Laljibhai Dholakia	51895800
Arjanbhai Lalji Dholakiya	16679800
Champaben Govindbhai Dholakia	13966900
Vashrambhai Bhurabhai Narola	2129900
Jayantibhai Vashrambhai Narola	20761100
Rahulbhai Nagjibhai Dholakia	18120900
Shreyansh Govindbhai Dholakia	6445600
Total	130000000

As on: 11.04.2012

Names of Allottee	No. of Equity Shares
Govindbhai Laljibhai Dholakia	2400000
Arjanbhai Lalji Dholakiya	1200000
Champaben Govindbhai Dholakia	800000
Vashrambhai Bhurabhai Narola	800000
Jayantibhai Vashrambhai Narola	1200000
Rahulbhai Nagjibhai Dholakia	800000
Shreyansh Govindbhai Dholakia	800000
Total	8000000

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Diamonds.
Exports :
Products :	Finished Goods
Countries :	Far East USA Australia
Imports :
Products :	Raw Materials
Countries :	Belgium Israel
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Retailers and End Users
No. of Employees :	Above 3500 (Approximately)
Bankers :	ING Vysya Bank Limited, Patel Chambers, Sandhurst Bridge, Opera House, Mumbai – 400007, Maharashtra, India Tel. No.: 91-22-23877304 Bank of India, Bharat Diamond Bourse Br.,D-2/D-4, Ground Floor, West Core, "G" Block, B.K.C, Bandra (East), Mumbai - 400051, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address :	Mumbai, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
130000000	Preference Shares	Rs.10/- each	Rs.1300.000 Millions
	Total		Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 Millions
130000000	Preference Shares	Rs.10/- each	Rs.1300.000 Millions
	Total		Rs.1480.000 Millions

SHREE RAMKRISHNA EXPORT

(Partnership Concern)

Partner Funds	Rs. In Millions
Fixed	100.000
Current	1700.000
Total	1800.000

FINANCIAL DATA

[all figures are in Rupees Millions]

SHREE RAMKRISHNA EXPORT

(Partnership Concern)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Partner Capital		1800.000	1868.202	1536.743
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		406.961	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2206.961	1868.202	1536.743
LOAN FUNDS
1] Secured Loans		3480.426	3365.661	2031.723
2] Unsecured Loans		575.434	0.000	0.000
TOTAL BORROWING		4055.860	3365.661	2031.723
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6262.821	5233.863	3568.466
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1199.680	417.695	390.512
Capital work-in-progress		0.000	213.486	0.000
INVESTMENT		168.461	93.461	3.461
DEFERREX TAX ASSETS		1.408	1.655	1.939
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4032.308	3560.650	2829.288
	Sundry Debtors	2816.322	2259.815	1214.460
	Cash & Bank Balances	85.163	116.366	64.951
	Other Current Assets	3.009	2.368	2.847
	Loans & Advances	1216.899	671.748	415.079
Total Current Assets		8153.701	6610.947	4526.625
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2623.364	1725.316	1045.106
	Other Current Liabilities
	Provisions	637.065	378.065	308.965
Total Current Liabilities		3260.429	2103.381	1354.071
Net Current Assets		4893.272	4507.566	3172.554
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6262.821	5233.863	3568.466

SHREE RAMKRISHNA EXPORT

(Partnership Concern)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	21579.918	16693.571	13748.758
		Other Income	5.106	4.257	186.241
		TOTAL (A)	21585.024	16697.828	13934.999
Less	EXPENSES
		Cost of Materials	18622.761	15546.480	11621.500
		Employees remuneration and benefit	67.406	108.244	89.630
		Manufacturing and other Expenses	1031.842	715.050	551.228
		Selling and Distribution Expenses	359.813	345.913	257.944
		Remuneration to Partner	4.500	4.500	4.500
		Increase/ (Decrease) in Stock	395.695	(746.405)	722.238
		TOTAL (B)	20482.017	15973.782	13247.040
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1103.007	724.046	687.959
Less	FINANCIAL EXPENSES (D)		141.647	84.570	125.929
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		961.360	639.476	562.030
Less/ Add	DEPRECIATION/ AMORTISATION (F)		145.867	73.214	67.397
	PROFIT BEFORE TAX (E-F) (G)		815.493	566.262	494.633
Less	TAX (H)		259.246	179.784	160.366
	PROFIT AFTER TAX (G-H) (I)		556.247	386.478	334.267
Less/ Add	PRIOR PERIOD ITEM		(1.021)	(0.071)	0.427
Less/ Add	EXCESS/ (SHORT) PROVISION FOR INCOME TAX RELATING TO EARLIER YEARS (NET)		(2.028)	(0.052)	0.051
	BALANCE AVAILABLE FOR TRANSFER TO PARTNERS CAPITAL ACCOUNT		553.197	386.355	334.745
	Earnings Per Share (Rs.)		NA	NA	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	30550.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.58	2.31	2.40
Net Profit Margin (PBT/Sales)	(%)	3.78	3.39	3.60
Return on Total Assets (PBT/Total Assets}	(%)	8.72	8.06	10.06
Return on Investment (ROI) (PBT/Networth)		0.37	0.30	0.32
Debt Equity Ratio (Total Debt/Networth)		1.84	1.80	1.32
Current Ratio (Current Asset/Current Liability)		2.50	3.14	3.34

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS IS NOT AVAILABLE (PARTNERSHIP CONCERN)

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
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 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	No
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	No
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 8th Century B.C.  India, in fact, remained undisputed leader till 18th 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 30th 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.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U36912MH2012PTC229115
Name of the company	SHREE RAMKRISHNA EXPORTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	EE-6011, Bharat Diamond Bourse, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400005, Maharashtra, India E-mail: law@lemonconsulting.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10353037
Type of charge	Uncalled share capital Immovable property Any interest in immovable property Book debts Movable property (not being pledge) Calls made but not paid Goodwill Patent, license under a patent Trademark Copyright or license under a copyright
Particular of charge holder	Bank of India, Bharat Diamond Bourse Br.,D-2/D-4, Ground Floor, West Core, "G" Block, B.K.C, Bandra (East), Mumbai - 400051, Maharashtra, India E-mail: BharatDiamondBourse.MumbaiNorth@bankofindia.co.in
Nature of instrument creating charge	Indenture of Mortgage
Date of instrument Creating the charge	15.01.2013
Amount secured by the charge	Rs.8650.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Stipulated in Sanction Letters of respective Consortium Banks. Terms of Repayment As Stipulated in Sanction Letters of respective Consortium Banks. Margin As Stipulated in Sanction Letters of respective Consortium Banks. Extent and Operation of the charge As Stipulated in Sanction Letters of respective Consortium Banks. The charge amongst the member Banks of BOI Consortium is on the first pari passu basis. Others Revised Facilities and Limits 1) BOI Rs.1160.000 Millions 2) SBI Rs.1080.000 Millions 3) Sarswat Rs.180.000 Millions 4) SBP Rs.680.000 Millions 5) SBBJ Rs.980.000 Millions 6) AB Rs.470.000 Millions 7) RBS Rs.610.000 Millions 8) IVBL Rs.710.000 Millions 9) ADB Rs.290.000 Millions 10) YBL Rs.220.000 Millions 11) IBL Rs.49 Millions 12) CRB Rs.45 Millions 13)HDFC Rs.450.000 Millions 14) SCB Rs.880.000 Millions Total Rs.8650.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A) The whole of the current assets of the borrower namely, stocks of raw materials comprising of rough, ut and polished diamonds and precious stones and gems, stocks in process,semi-finished and finished goods viz, polished diamonds, stores and gems, stores and spares bills, receivables and book debts and all other movables (including Diamonds Evaluation System and Planner Machines and laser machinery and other plant and machinery), both present and future, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter 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 Borrower's factories, premises and godowns situted at Mumbai in the State of Maharashtra and Surat in the State of 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 in the possession of the borrower and either by way of substitution or addition. B) Simple mortgage of Immovable Properties (1) Office Unit No.1504 in Panchratna, (2) Office No. EC 6100, (3) Office No.EE 6011, (4) Office No.EE 6012 all (2) (3) and (4) in Bharat Diamond Bourse details as per Annexure II. C) a) all that Goodwill of the Borrower's business and all its Licences and Registrations in respect of all its business activities And b) all that money that may hereafter be received in respect of any shares existing or that may hereafter be issued by the borrower or any shares that may hereafter be created upon any increase in the share capital of the Borrower either upon application or allotment or in payment of calls as hereinbefore provided and all other monies in respect of the uncalled capital of the Borrower. Details as per Copy of Indenture of Mortgage.
Date of instrument modifying the charge	02.04.2012
Particulars of the present modification	1) BOI is Designated as Lead Bank of Consortium.2) IBL, CRB, HDFC, SCB are inducted as member of BOI Consortium. 3)The Principal Amt. of Charge on Hypothecated Assets and Mortgage Property Known as "Panchratna" is enhanced from Rs.4440.000 Millions to 8650.000 Millions 4) Additional Security taken by way of Equitable Mortgage of Properties Known as "BDB Property I, II and III" to secure the entire Amt. of Charge of Rs.8650.000 Millions.

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 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 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.54.53
UK Pound	1	Rs.83.60
Euro	1	Rs.71.33

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
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	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.