MIRA INFORM REPORT

Report Date :

03.12.2013

IDENTIFICATION DETAILS

Name :	KHIMJI K.D. & SONS PRIVATE LIMITED [w.e.f. 10.01.2012]
Formerly Known As :	K.D. & SONS PRIVATE LIMITED
Registered Office :	Plot No. 1, Janpath Sriya Square, Bhubaneswar-751001, Orissa
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.12.1992
Com. Reg. No.:	15-003222
Capital Investment / Paid-up Capital :	Rs.27.500 Millions
CIN No.: [Company Identification No.]	U51398OR1992PTC003222
Legal Form :	Private Limited Liability Company
Line of Business :	Retailers of Gold, Silver and Diamond Jewellery along with Artificial Jewellery, Watches and Perfumes.
No. of Employees :	130 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 996700
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be decent. General financial position of the company appears to be sound and healthy. Trade relations are reported as fair. Business is active. Payments terms are usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB – [Long Term]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	30.05.2013

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. Arun
Designation :	Accounts Manager
Contact No.:	91-7873000104
Date :	02.12.2013

LOCATIONS

Registered Office :	Plot No. 1, Janpath Sriya Square, Bhubaneswar-751001, Orissa, India
Tel. No.:	Not Available
Mobile No.:	91-7873000104 [Mr. Arun]
Fax No.:	Not Available
E-Mail :	accounts.kimji@gmail.com pnabbsr@gmail.com
Website :	http://www.khimjijewellers.eodisha.com
Area :	4500 sq. ft.
Location :	Rented
Bhubaneswar Office :	621, Saheed Nagar, Janpath, Bhubaneswar-751007, Orissa, India
Tel No.:	91-674-3017777/ 2543906-910
Fax No.:	91-674-3017766
Email :	customercare@khimjionline.com

DIRECTORS

AS ON 30.09.2013

Name :

Binodroy Khimji Nanda

Designation :

Managing Director

Address :

Nirant NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

26.08.1951

Date of Appointment :

24.12.1992

Din No.:

01501455

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	U51398OR1990PTC002461	KHIMJI DAYABHAI & BROTHERS PRIVATE LIMITED	Director	23/03/1990	23/03/1990	Active	NO
2	U51398OR1992PTC003222	KHIMJI-K.D.& SONS PRIVATE LIMITED	Managing director	24/12/1992	24/12/1992	Active	NO
3	U50100OR2011PTC013906	KHIMJI AUTORIDES PRIVATE LIMITED	Director	15/07/2011	15/07/2011	Active	NO

Name :

Hansa Dinesh Khimji

Designation :

Director

Address :

Plot No. 2132/5131, NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

21.11.1950

Date of Appointment :

24.12.1992

Din No.:

01501458

Name :

Suhagini Binodroy Nanda

Designation :

Director

Address :

Nirant NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

26.08.1953

Date of Appointment :

24.12.1992

Din No.:

01501460

Name :

Mr. Dinesh Chandra Khimji Nanda

Designation :

Director

Address :

Plot No. 2132/5131, NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

12.12.1948

Date of Appointment :

24.12.1992

Din No.:

01501450

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	U51398OR1992PTC003222	KHIMJI-K.D.& SONS PRIVATE LIMITED	Director	24/12/1992	24/12/1992	Active	NO
2	U51398OR1990PTC002461	KHIMJI DAYABHAI & BROTHERS PRIVATE LIMITED	Director	11/09/2006	11/09/2006	Active	NO
3	U50100OR2011PTC013906	KHIMJI AUTORIDES PRIVATE LIMITED	Director	15/07/2011	15/07/2011	Active	NO

Name :

Mr. Mitesh Dinesh Khimji

Designation :

Director

Address :

Plot No. 2132/5131, NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

01.01.1975

Date of Appointment :

11.01.2007

Din No.:

01501453

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	U51398OR1990PTC002461	KHIMJI DAYABHAI & BROTHERS PRIVATE LIMITED	Managing director	30/07/2011	11/09/2006	Active	NO
2	U51398OR1992PTC003222	KHIMJI-K.D.& SONS PRIVATE LIMITED	Director	01/01/2007	01/01/2007	Active	NO
3	U72200OR2009PTC011250	SAIRAM SOFTEK PRIVATE LIMITED	Managing director	29/07/2013	22/10/2009	Active	NO
4	U51398OR2010PTC011801	KHIMJI RETAIL VENTURES PRIVATE LIMITED	Managing director	30/03/2010	30/03/2010	Active	NO
5	U74990MH2008NPL188773	GJF EVENTS AND PROMOTIONS FEDERATION	Director	01/04/2011	01/04/2011	Active	NO
6	U50100OR2011PTC013906	KHIMJI AUTORIDES PRIVATE LIMITED	Managing director	13/09/2012	15/07/2011	Active	NO

Name :

Mr. Sumeet Binodroy Khimji

Designation :

Director

Address :

Nirant NCC Office Lane, Lewis Road, Bhubaneswar-751002, Orissa, India

Date of Birth/Age :

20.10.1980

Date of Appointment :

01.01.2007

Din No.:

01501451

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	U51398OR1990PTC002461	KHIMJI DAYABHAI & BROTHERS PRIVATE LIMITED	Director	11/09/2006	11/09/2006	Active	NO
2	U51398OR1992PTC003222	KHIMJI-K.D.& SONS PRIVATE LIMITED	Director	01/01/2007	01/01/2007	Active	NO
3	U72200OR2009PTC011250	SAIRAM SOFTEK PRIVATE LIMITED	Director	22/10/2009	22/10/2009	Active	NO
4	U51398OR2010PTC011801	KHIMJI RETAIL VENTURES PRIVATE LIMITED	Director	30/03/2010	30/03/2010	Active	NO
5	U50100OR2011PTC013906	KHIMJI AUTORIDES PRIVATE LIMITED	Director	15/07/2011	15/07/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Arun
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Suhagini Binodroy Nanda	35500
Hansa Dinesh Khimji	24500
Binodroy Khimji Nanda	22000
Dinesh Chandra Khimji Nanda	39000
Sumeet Binodroy Khimji	54500
Mitesh Dinesh Khimji	48500
Dinesh Chandra Khimji Nanda HUF	25500
Binodroy Khimji Nanda	25500
TOTAL	275000

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	18.00
Directors or relatives of directors	82.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Retailers of Gold, Silver and Diamond Jewellery along with Artificial Jewellery, Watches and Perfumes.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

MU Jewelers, Mumbai

Customers :

End Users

· Sanket Communication

No. of Employees :

130 [Approximately]

Bankers :

· State Bank of India, SME CCC, Zonal Office, 3^rd Floor, Unit 1, Rajpath, Bhubaneswar-751009, Orissa, India

· Corporation Bank, Main Branch, Bhubaneswar-751001, Orissa, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Loans From Banks
- Term Loan * * Secured by hypothecation of fixed asset of the company. Rate of interest @ 12.90% p.a.	0.000	3.172
- Vehicle Loans ** ** Secured by hypothecation of underlying vehicle. Repayable in monthly equated installments upto 5 years period from the date of respective loan. Interest on these loans ranges from 9.50% p.a. to 10.90% p.a. on monthly reducing basis.	9.907	9.981
Short Term Borrowings
From Bank (Cash Credit) * * Secured by hypothecation of inventory and receivable, both present and future. First charge over the fixed assets acquired out of bank finance (excluding the cost of vehicle purchased out of other bank’s finance.)	109.290	81.363
TOTAL	119.197	94.516
Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Loans and Advances From Related Parties
· Money Loans	13.431	22.156
· Gold Loans	41.510	20.540
TOTAL	54.941	42.696

Banking Relations :	--
Auditors :
Name :	SRB and Associates Chartered Accountants
Address :	5^th Floor, IDCO Tower, Janpath, Bhubaneswar-751022, Orissa, India
Tel. No.:	91-674-2541043/ 2545880
Fax No.:	91-674-2546414
E-Mail :	srbbbsr@rediffmail.com
Associates/Subsidiaries :	· Khimji Retail Ventures Private Limited · Khimji Autorides Private Limited · Maa Ambika Investment

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
275000	Equity Shares	Rs.100/- each	Rs.27.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	27.500	27.500	27.500
(b) Reserves & Surplus	221.680	149.713	85.999
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	249.180	177.213	113.499
(3) Non-Current Liabilities
(a) long-term borrowings	9.907	13.153	14.856
(b) Deferred tax liabilities (Net)	(0.576)	0.371	0.945
(c) Other long term liabilities	44.715	1.231	0.210
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	54.046	14.755	16.011
(4) Current Liabilities
(a) Short term borrowings	164.231	124.059	143.175
(b) Trade payables	379.331	211.851	207.799
(c) Other current liabilities	50.364	37.321	17.741
(d) Short-term provisions	35.533	33.034	14.385
Total Current Liabilities (4)	629.459	406.265	383.100
TOTAL	932.685	598.233	512.610
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99.500	97.323	83.394
(ii) Intangible Assets	1.613	2.688	4.479
(iii) Capital work-in-progress	0.277	0.000	5.609
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	5.880	5.880	0.280
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.035	2.916	3.785
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	112.305	108.807	97.547
(2) Current assets
(a) Current investments	3.090	29.100	20.000
(b) Inventories	621.998	324.541	331.336
(c) Trade receivables	3.885	2.901	5.667
(d) Cash and cash equivalents	118.023	88.016	24.873
(e) Short-term loans and advances	73.344	44.480	33.162
(f) Other current assets	0.040	0.388	0.025
Total Current Assets	820.380	489.426	415.063
TOTAL	932.685	598.233	512.610

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3575.667	3238.023	2095.090
		Other Income	7.512	2.198	0.835
		TOTAL (A)	3583.179	3240.221	2095.925
Less	EXPENSES
		Purchase of stock in trade	3542.817	2956.277	2080.637
		Employee benefits expenses	44.585	32.247	14.084
		Other expenses	151.799	114.802	78.226
		Changes in inventories of stock in trade	(297.458)	6.795	(144.526)
		TOTAL (B)	3441.743	3110.121	2028.421
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		141.436	130.100	67.504
Less	FINANCIAL EXPENSES (D)		16.497	17.380	12.852
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		124.939	112.720	54.652
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.176	16.463	12.527
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		106.763	96.257	42.125
Less	TAX (H)		34.797	32.543	14.191
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		71.966	63.714	27.934
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.000
	IMPORTS		0.000	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)		261.70	231.69	101.58

Expected Sales (2013-14) : Rs.4000.000 Millions.

The above information has been parted by Mr. Arun.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.00	1.97	1.33
Net Profit Margin (PBT/Sales)	(%)	2.99	2.97	2.01
Return on Total Assets (PBT/Total Assets}	(%)	11.52	16.25	8.31
Return on Investment (ROI) (PBT/Networth)		0.43	0.54	0.37
Debt Equity Ratio (Total Debt/Networth)		0.70	0.77	1.39
Current Ratio (Current Asset/Current Liability)		1.30	1.20	1.08

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	Yes
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	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10326097	17/08/2012 *	25,000,000.00	STATE BANK OF INDIA	SMECCC, BHUBANESWAR - 751001, ORISSA, INDIA	B59501023
2	10108025	21/03/2013 *	138,400,000.00	STATE BANK OF INDIA	SMECCC, ZONAL OFFICE(3RD FLOOR), UNIT -1, RAJPATH, BHUBANESWAR - 751009, ORISSA, INDIA	B74171919
3	10037324	23/08/2006	12,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	A10893220
4	90079663	22/07/2000 *	4,500,000.00	UNION BANK OF INDIA	MAIN BRANCH, BHUVNESHWAR, ORISSA, INDIA	-
* Date of charge modification

NOTE:

The registered office of the company has been shifted from Plot No. 2132/5131/B, NCC Office Lane, Lewis Road, Bhubaneswar, Orissa, India to the present address w.e.f.10.03.2007.

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.

- 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 –

- Gem and Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FIXED ASSETS:

· Land Free Hold

· Building

· Plant and Machinery

· Vehicles

· Office Equipment’s

· Furniture and Fixtures

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.62.23
UK Pound	1	Rs.102.14
Euro	1	Rs.84.64

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.