MIRA INFORM REPORT

Report Date :

04.02.2013

IDENTIFICATION DETAILS

Name :	TARA JEWELS LIMITED (w.e.f.16.09.2010)
Formerly Known As :	TARA JEWELS PRIVATE LIMITED (w.e.f. 25.03.2009) TARA ULTIMO PRIVATE LIMITED
Registered Office :	Plot No.122, 15^th Road, Near IDBI Bank, M.I.D.C., Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss A/c)
Date of Incorporation :	16.03.2001
Com. Reg. No.:	11-131252
Capital Investment / Paid-up Capital :	Rs.180.000 Millions (As on 31.03.2011)
CIN No.: [Company Identification No.]	U52393MH2001PTC131252
PAN No.: [Permanent Account No.]	AABCT3846M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Diamond and Gold Jewellery.
No. of Employees :	1726 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 8900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having good track. It has achieved healthy growth in its sales turnover during 2012. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments. 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.

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	CARE
Rating	Long Term Rating: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	20.01.2012

Rating Agency Name	CARE
Rating	Short Term Rating: A2
Rating Explanation	Strong Degree of safety and low credit risk.
Date	20.01.2012

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. Amol A. Raje
Designation :	Company Secretary
Contact No.:	91-22-66774461/4444
Date :	02.02.2013

LOCATIONS

Registered Office/ Factory 1 :	Plot No.122, 15^th Road, Near IDBI Bank, M.I.D.C., Andheri (East), Mumbai-400 093, Maharashtra, India
Tel. No.:	91-22-66417888/ 66417805/ 66417777
Fax No.:	91-22-66417888/ 66417712
E-Mail :	amol.raje@tarajewels.co.in rvs@tarajewels.co.in cbcco@vsnl.com
Website :	www.taratail.com
Location :	Owned
Branches/ Factory 2:	29-30, Sub Plot A, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Branch Office :	Located at: · Pune · Mumbai · Goa

DIRECTORS

(AS ON 20.07.2012)

Name :	Mr. Rajeev Vasant Sheth
Designation :	Managing Director
Address :	3 Villa Ramona, 37A, Nepeansea Road, Mumbai- 400 036, Maharashtra, India
Date of Birth/Age :	16.11.1958
Qualification :	B.Com from Mumbai University and Diploma in Gemology from Gemological Institute of America
Experience :	31 years
Date of Appointment :	01.10.2010
DIN No.:	00266460
Name :	Mrs. Alpana Aniruddh Deo
Designation :	Director
Address :	Flat No.60, Apritam Royal Palms Buglow, Aarey Milk Colony, Goregaon (East), Mumbai- 400 064, Maharashtra, India
Date of Birth/Age :	20.12.1974
Date of Appointment :	01.08.2012
DIN No.:	00266523
Name :	Mr. Vikram Vishnukumar Raizada
Designation :	Director
Address :	6, Loral Reef, 55, Chimbai Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	08.05.1966
Qualification :	B.A(Economics) from University of Mumbai and Degree in Business (Marketing) from University of Southern Queensland, Australia
Experience :	20 years
Date of Appointment :	03.09.2010
DIN No.:	03196436
Name :	Ms. Nalini Varadarajan
Designation :	Director
Address :	A/6-3, Shree Ram Nagar, S.V Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	29.08.1964
Date of Appointment :	06.10.2009
DIN No.:	02922199
Name :	Mr. Fern Joy Mallis
Designation :	Additional Director
Address :	40 E 68 ST 5B, New York NY 10021
Date of Birth/Age :	26.03.1948
Date of Appointment :	20.09.2010
DIN No. :	03270532
Name :	Mr. Rajiv Lochan Jain
Designation :	Director
Address :	402, Aralias DLF Golf Links DLF City Phase 5, Gurgaon – 122009, Haryana, India
Date of Birth/Age :	01.01.1951
Date of Appointment :	20.09.2010
DIN No. :	00161022
Name :	Mr. Rakesh Kalra
Designation :	Director
Address :	TNA 023 Trinity Towers, DLF Phase 5, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	11.09.1949
Date of Appointment :	20.09.2010
DIN No. :	00780354
Name :	Mr. Nikkhil Vaidya
Designation :	Director
Address :	506 Vivek Ekta Vivek Chs. Ltd, Off Link Road, IC Colony Extn, Mumbai – 400068, Maharashtra, India
Date of Birth/Age :	05.05.1959
Date of Appointment :	20.09.2010
DIN No. :	02942549
Name :	Mr. Shanti Saroop Khindria
Designation :	Director
Address :	2, Parsons Green Lane, Fulham London, united Kingdom SW64HS
Date of Birth/Age :	12.08.1954
Date of Appointment :	20.09.2010
DIN No. :	03271292

KEY EXECUTIVES

Name :	Mr. Amol Arvind Raje
Designation :	Company Secretary
Address :	A-503, Urvi Park, Opposite Oswal Park, Pokharan Road No. 2, Thane – 400601, Maharashtra, India
Date of Birth/Age :	08.03.1981
Date of Appointment :	10.05.2010
PAN No.:	AHGPR5072G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 20.07.2012)

Names of Shareholders	No. of Shares
Rajeev Vasant Sheth	14482893
Purnima Rajeev Sheth	14625
Fabrikant H. K. Trading Limited – Hong Kong	3239999
Alpana Anirudh Deo	3
Divya Jewels International Private Limited – India	33600
Aarti Rajeev Sheth	114440
Divya Rajeev Sheth	114440
Total	18000000

(AS ON 01.12.2012)

Names of Allotment	No. of Shares Allotted
A Balachandran	205
A G Mehta (HUF)	404
A H Shah HUF	403
A Joseph Suresh	72
A K Shanmugam	50
A Margaret Maria	50
A Siddappa	72
A Venugopal	72
A. K. Baheti and Sons, India	404
Aagam Bhadresh Sanghvi	404
Aaichuki	404
Aakash Chandrakant Shah	404
Aakash Manish Shah	404
Aalok D Killawala Minita A Killawala	403
Aalok Killawala	205
Aanay Parin Jhaveri	404
Aanchal Chetankumar Shah	403
Aanchal Vikram Jain	404
Aaradhana Paliwal	404
Aarti Bhatia	404
Aarti Deepak Savla	404
Aarti J Sheth	72
Aarti Kanhu Avate	50
Aarti Niraj Shah	404
Aarti P. Modi	404
Aarti Subhashchandra Uopadhyaya	404
Aartiben Vireshkumar Shah	50
Aarushi Khandelwal Rachna Khandelwal Anil Kumar Khandelwal	72
Aashish Kumar Lakhotiya	72
Aashish Kuvavala Manjiri Kuvavala	315
Aashka Snehal Shah Snehal Surendrabhai Shah	404
Aashravi Ashesh Kharidia	404
Aban Rustom Chothia Rustom Behramsha Chothia Farzana Vistasp Batliwala	50
Abbas Yusufbhai Joint	205
Abdul Hakim	50
Abdul Hanan	72
Abdul Javed Majid	116
Abdul Khaliq Abdul Majid Khan	404
Total	9927

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	18.00
Bodies corporate	0.19
Directors or relatives of directors	81.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Diamond and Gold Jewellery.

Products :

Products Description	Item Code No.
Manufacturing of Studded Diamond Gold Jewellery.	7113
Gems and Jewellery	71131930

Products :

· Aqua Diamond

· Baby Cakes Diamond

· Cherished Diamond

· Colours Diamond

· Diamond Key

· Edge Diamond

· Honeydium Diamond

· Huggables Diamond

· Lace Diamond

· Luce Diamond

· Mboss Diamond

· Naturale Diamond

· Prive Diamond

Brand Names :

“TARA JEWELLERS”

Exports :

Products :

Finished Goods

Countries :

· USA

· UK

Imports :

Products :

Diamond

Countries :

· Israel

· Belgium

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

1726 (Approximately)

Bankers :

· Punjab National Bank,

Offshore Banking Unit, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India

· State Bank of India

Seepz Branch, Andheri (East), Mumbai – 400096, Maharashtra, India

· Central Bank of India,

Industrial Finance Branch, Chander Mukhi, Ground Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

· Axis Bank Limited,

Nariman Point Branch, Atlanta Ground Floor, Nariman Point, Mumbai-400021, Maharashtra, India

· Union Bank of India,

Overseas Branch, Seepz, Block No II., Jogeshwari-Vikhroli Link Road, Marol Industrial Area, Andheri, Mumbai-400096, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	1920.942	1451.882
Hire purchase installment payable secured	9.966	3.986
Total	1930.908	1455.868

Banking Relations :	--
Auditors :
Name :	C. B. Chhajed and Company Chartered Accountants
Address :	DGP House, Ground Floor, 88-C, Old Prabhadevi Road, Mumbai – 400025, Maharashtra, India
PAN No.:	AAAFC3565E
Subsidiaries :	· Fabricant Tara International LLC. · Tara Jewels Holding Inc. · Tara (Hong Kong) Limited (from 16.09.2010) · Tara China Jewelery Limited (from 16.09.2010) · Tara Jewels Honduras (from 17.01.2011)
Related Parties :	· Tara (Hong Kong) Limited (Up to 15.09.2010) · F T Diamonds · Divya Jewels International Private Limited · Divya Real Estate Private Limited · Aarti Jewellers Private Limited · Karan Arjun Jewellery Private Limited · Tara Duniya Corporation

CAPITAL STRUCTURE

(AS ON 20.07.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		180.000	118.474
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2033.112	1674.313
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2213.112	1792.787
LOAN FUNDS
1] Secured Loans		1930.908	1455.868
2] Unsecured Loans		77.397	77.438
TOTAL BORROWING		2008.305	1533.306
DEFERRED TAX LIABILITIES		10.669	13.944
TOTAL		4232.085	3340.037
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		658.255	591.931
Capital work-in-progress		18.607	0.000
		10.808	16.212
INVESTMENT
DEFERREX TAX ASSETS		49.018	7.516
		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3903.194	2879.915
	Sundry Debtors	2354.991	1200.462
	Cash & Bank Balances	234.533	248.447
	Other Current Assets	0.000	0.000
	Loans & Advances	139.798	155.630
Total Current Assets		6632.516	4484.454
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3072.442	1701.198
	Other Current Liabilities	71.764	40.680
	Provisions	24.807	18.198
Total Current Liabilities		3169.013	1760.076
Net Current Assets		3463.503	2724.378
MISCELLANEOUS EXPENSES		31.894	0.000
TOTAL		4232.085	3340.037

NOTE: The Balance Sheet for the year 2012 is not available only Profit and Loss A/c is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	12799.017	10931.126	7859.549
		Other Income	15.717	12.155	17.451
		TOTAL (A)	12814.734	10943.281	7877.000
Less	EXPENSES
		Cost of Materials Consumed	5010.068	5132.912
		Purchases of Stock-in-trade	5894.157	5304.944
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(333.646)	(1358.095)	7223.429
		Employee Benefit Expenses	352.196	289.475
		Other expenses	653.964	641.854
		Prior Period Expenses	1.459	0.000
		TOTAL (B)	11578.198	10011.090	7223.429
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1236.536	932.191	653.571
Less	FINANCIAL EXPENSES (D)		429.194	303.922	248.510
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		807.342	628.269	405.061
Less/ Add	DEPRECIATION/ AMORTISATION (F)		132.984	118.061	107.180
	PROFIT BEFORE TAX (E-F) (G)		674.358	510.208	297.881
Less	TAX (H)		167.167	112.972	52.574
	PROFIT AFTER TAX (G-H) (I)		507.191	397.236	245.307
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	1221.284	970.679
Less	APPROPRIATIONS		NA	217.617	0.000
Add	AVAILMENT OF MAT CREDIT OF EARLIER YEAR		NA	0.000	5.298
	BALANCE CARRIED TO THE B/S		NA	1400.903	1221.284
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	8734.785	7674.774
		Freight	NA	7.097	8.051
	TOTAL EARNINGS		NA	8741.882	7682.825
	IMPORTS
		Raw Materials	NA	1949.631	2299.932
		Stores & Spares	NA	47.356	31.973
		Capital Goods	NA	29.357	132.709
	TOTAL IMPORTS		NA	2026.344	2464.614
	Earnings Per Share (Rs.)		28.18	22.19	13.80

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.96	3.63	3.11
Net Profit Margin (PBT/Sales)	(%)	5.27	4.67	3.79
Return on Total Assets (PBT/Total Assets}	(%)	NA	6.99	5.87
Return on Investment (ROI) (PBT/Networth)		NA	0.23	0.17
Debt Equity Ratio (Total Debt/Networth)		NA	0.91	0.86
Current Ratio (Current Asset/Current Liability)		NA	2.09	2.55

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors
- Creditors Due Others	Not Available	3072.442	1701.198
Total	Not Available	3072.442	1701.198

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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

UNSECURED LOANS

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Deposits related parties unsecured	77.397	77.438
Total	77.397	77.438

NOTE

The Registered office of the company has been shifted from Plot No.29 (P) and 30 (P) Sub, Andheri (East), Mumbai-400 096, Maharashtra, India to the present address w.e.f.28.03.2009.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs. In Millions

Description	31.03.2012	31.03.2011	31.03.2010
Claims against the Company not acknowledged as debts in respect of :
a. Custom Duty matter pending in Appeal	NA	3.401	2.314
b. Property Tax	NA	0.342	0.342
Bills Discounted	NA	2035.897	1017.820
Total	NA	2039.640	1020.476

FORM 8

Corporate identity number of the company	U52393MH2001PLC131252
Name of the company	TARA JEWELS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.122, 15^th Road, Near IDBI Bank, M.I.D.C., Andheri (East), Mumbai-400 093, Maharashtra, India Email: amol.raje@tarajewels.co.in
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others Tangible machineries, Furniture, Current Assets
Particular of charge holder	Axis Bank Limited, Nariman Point Branch, Atlanta Ground Floor, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation of Current Assets (Stock and Book Debts) {DOH} dated 08.08.2012
Date of instrument Creating the charge	08.08.2012
Amount secured by the charge	Rs. 150.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest As per Sanction Letter No. AXIS/CO/MC-II/VS/0360/12-13 dated 07.08.2012 or as stipulated by Bank from time to time. Terms of Repayment As per Sanction Letter No. AXIS/CO/MC-II/VS/0360/12-13 dated 07.08.2012 or as stipulated by Bank from time to time. Margin As per Sanction Letter No. AXIS/CO/MC-II/VS/0360/12-13 dated 07.08.2012 or as stipulated by Bank from time to time. Extent and Operation of the charge Bank granted Adhoc Stand by Letter of Credit (SBLC) limit of Rs.150.000 Millions. The Limit is secured by subservient charge on all present and future stock of RM, SIP, FG, and Other Current Assets being Movable properties stored at Co's factory or premises or in transit and O/s, Monies, Receivables, Claims and Bills which are due and owing to the Company in course of its business.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subservient charge on present and future stock of RM, SIP, FG, and Other Current Assets stored at Company's factory or premises or in transit and O/s, Monies, Receivables, claims etc. due and owing to Company.

FIXED ASSETS:

· Building

· Vehicles

· Air conditioners

· Computers

· Electric installations

· Silver models

· Furniture and fixtures

· Office equipments

· Plant and machinery

· Factory equipments

· Flat

· Ship

· Goodwill

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 millions 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.

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 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.53.32
UK Pound	1	Rs.84.60
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.