MIRA INFORM REPORT

Report Date :

04.01.2013

IDENTIFICATION DETAILS

Name :	TACHE JEWELRY PRIVATE LIMITED (w.e.f. 27.12.2004)
Formerly Known As :	TACHE JEWELLERY PRIVATE LIMITED
Registered Office :	Plot No. GJ – 02, Seepz Seepz SEZ, Andheri (East), Mumbai – 400 096, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.02.2003
Com. Reg. No.:	11-138986
Capital Investment / Paid-up Capital :	Rs. 54.368 millions
CIN No.: [Company Identification No.]	U36911MH2003PTC138986
TAN No.: [Tax Deduction & Collection Account No.]	MUMT08622F
PAN No.: [Permanent Account No.]	AABCT7791D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamond studded Gold Jewelry like rings, pendants, earrings, bracelets and necklaces.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1050000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and 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 – 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

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 :	Plot No. GJ – 02, Seepz Seepz SEZ, Andheri (East), Mumbai – 400 096, Maharashtra, India
Tel. No.:	91-22-28293705 / 67779999
Fax No.:	91-22-28293703 / 67779950
E-Mail :	nikhil.khandwala@tachejewellery.com

DIRECTORS

As on 18.07.2012

Name :

Mr. Amish Bipin Choksi

Designation :

Director

Address :

43, Himgiri, 6th floor, Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

26.03.1964

Date of Appointment :

24.04.2007

DIN No.:

00043931

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	U67120MH1982PTC026805	VIOLET INVESTMENT AND TRADING CO PVT LTD	Whole-time director	20/09/1984	20/09/1984	-	Active	NO
2	U99999MH1996PTC097577	C G INTERNATIONAL PRIVATE LIMITED	Director	01/03/2011	23/02/1996	-	Active	NO
3	U27205MH2006PTC165627	C. G. CREATIONS PRIVATE LIMITED	Director	17/11/2006	17/11/2006	03/11/2010	Active	NO
4	U36911MH2003PTC138986	TACHE JEWELRY PRIVATE LIMITED	Director	24/04/2007	24/04/2007	-	Active	NO
5	U36911GJ2010PTC061618	TCG JEWELRY PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO

Name :

Mr. Nikhil Ishwarlal Khandwala

Designation :

Managing Director

Address :

1001, Manju Apartment, Nepeansea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

03.08.1963

Date of Appointment :

24.04.2007

DIN No.:

00446539

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	U36910MH2004PTC145245	SHIVANI JEWELS PRIVATE LIMITED	Whole-time director	22/03/2004	22/03/2004	-	Strike off	NO
2	U99999MH1996PTC097577	C G INTERNATIONAL PRIVATE LIMITED	Director	01/03/2011	01/06/2006	-	Active	NO
3	U27205MH2006PTC165627	C. G. CREATIONS PRIVATE LIMITED	Director	17/11/2006	17/11/2006	03/11/2010	Active	NO
4	U36911MH2003PTC138986	TACHE JEWELRY PRIVATE LIMITED	Managing director	24/04/2007	24/04/2007	-	Active	NO
5	U36911GJ2010PTC061618	TCG JEWELRY PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO

Name :

Mr. Victor Henry Weinman

Designation :

Director

Address :

7, Bretton Ridge Road, Mount Kisco, New York - 10549, USA

Date of Birth/Age :

11.12.1946

Date of Appointment :

26.04.2003

DIN No.:

00558764

Name :

Mr. Ashish Anit Choksi

Designation :

Director

Address :

9, Idar-Oberstein - 55743, Germany

Date of Birth/Age :

10.08.1967

Date of Appointment :

30.09.2008

DIN No.:

02117208

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	U99999MH1996PTC097577	C G INTERNATIONAL PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
2	U36911MH2003PTC138986	TACHE JEWELRY PRIVATE LIMITED	Director	30/09/2008	27/08/2007	-	Active	NO

Name :

Mr. Jacques Joseph Tache

Designation :

Director

Address :

34, Peter Benoitstraat, Antwerp - 2018, Belgium

Date of Birth/Age :

16.06.1968

Date of Appointment :

30.09.2008

DIN No.:

02421425

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	U36911MH2003PTC138986	TACHE JEWELRY PRIVATE LIMITED	Director	30/09/2008	27/08/2007	-	Active	NO

Name :

Mr. Andre Christian Manfred Giloy

Designation :

Director

Address :

Fichtenhof, Idar-Oberstein - 55743, Germany

Date of Birth/Age :

26.04.1965

Date of Appointment :

30.09.2008

DIN No.:

02459957

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	U99999MH1996PTC097577	C G INTERNATIONAL PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
2	U36911MH2003PTC138986	TACHE JEWELRY PRIVATE LIMITED	Director	30/09/2008	27/08/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.07.2012

Names of Shareholders	No. of Shares
Tache Investments S.A., Luxembourg	2749000
C. G. International Private Limited, India	2195000
Meera Nikhil Khandwala	492750
Total	5436750

Equity Share Break up (Percentage of Total Equity)

As on 18.07.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.57
Bodies corporate	40.37
Directors or relatives of Directors	9.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diamond studded Gold Jewelry like rings, pendants, earrings, bracelets and necklaces.

Products :

Item Code No.	Product Description
7113	Gold and Cut Polished Diamond
71131930	Gold and Cut and Polished Diamond

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production (Jewellery) #
Studded Jewellery		Not Applicable	* Not Ascertainable	167828

Note:

* i) Management of the Company is of the opinion that installed capacity is not ascertainable on account of product - mix and different specifications.

ii) Jewellery includes product mix of Gold/ Silver/ Palladium studded jewellery in the form of Bridal Rings, Rings, Earrings, Pendants, Necklace, Bracelets and others.

# iii) Includes - Job Work Production and Production for customer(s) from whom gold is received on a loan basis.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

ABN Amro Bank N. V. , 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai 400 021, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loans taken for vehicles	1.671	0.000
Other loans and advances, others	1.703	0.000
Total	3.374	0.000
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loans and advance from others	0.750	0.750
Total	0.750	0.750

Banking Relations :	--
Auditors :
Name :	M.A. Parikh and Company Chartered Accountants
Address :	Fort, Mumbai – 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFM1433H
Holding Company :	Tache Investments, S.A.
Associated Enterprise :	C.G.International Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs. 10/- each	Rs. 120.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5436750	Equity Shares	Rs.10/- each	Rs. 54.368 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		54.368	71.868	83.383
2] Share Application Money		0.000	0.000	12.167
3] Reserves & Surplus		208.530	162.045	114.481
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		262.898	233.913	210.031
LOAN FUNDS
1] Secured Loans		3.374	0.000	0.000
2] Unsecured Loans		0.750	0.750	0.000
TOTAL BORROWING		4.124	0.750	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		267.022	234.663	210.031
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		121.779	118.821	121.265
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.970	97.432	56.415
	Sundry Debtors	160.450	154.666	80.176
	Cash & Bank Balances	97.836	44.415	49.668
	Other Current Assets	0.023	0.013	2.077
	Loans & Advances	11.504	7.275	2.054
Total Current Assets		345.783	303.801	190.390
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	192.533	184.904	99.592
	Other Current Liabilities	2.198	2.473	0.200
	Provisions	5.809	0.582	1.832
Total Current Liabilities		200.540	187.959	101.624
Net Current Assets		145.243	115.842	88.766
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		267.022	234.663	210.031

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	804.353	654.562	527.928
		Other Income	10.214	9.384	NA
		TOTAL (A)	814.567	663.946	NA
Less	EXPENSES
		Office Expenses	730.885	601.067	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	730.885	601.067	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		83.682	62.879	46.945
Less	FINANCIAL EXPENSES (D)		0.801	0.203	0.101
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		82.881	62.676	46.844
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.477	4.154	4.049
	PROFIT BEFORE TAX (E-F) (G)		78.404	58.522	42.795
Less	TAX (H)		13.258	9.797	6.955
	PROFIT AFTER TAX (G-H) (I)		65.146	48.725	35.840
	Deferred Tax Liability		--	--	7.934
	Transferred to Special Economic Zone Re-investment Allowance Reserve Account		38.000	--	--
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.731	26.507	22.733
Less	APPROPRIATIONS
		Transfer to General Reserve	27.100	62.500	40.000
	BALANCE CARRIED TO THE B/S		12.777	12.731	26.507
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	801.006	648.053	516.195
		Repairs	0.060	0.006	0.001
		Job Work Production	1.493	4.722	8.339
	TOTAL EARNINGS		802.559	652.781	524.535
	IMPORTS
		Raw Materials	649.807	582.844	455.595
		Capital Goods	1.587	1.538	1.059
		Others	3.056	2.777	2.611
	TOTAL IMPORTS		654.450	587.159	459.265
	Earnings Per Share (Rs.)		11.21	6.48	3.77

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.00	7.34	NA
Net Profit Margin (PBT/Sales)	(%)	9.75	8.94	8.10
Return on Total Assets (PBT/Total Assets}	(%)	16.77	13.85	13.73
Return on Investment (ROI) (PBT/Networth)		0.30	0.25	0.20
Debt Equity Ratio (Total Liability/Networth)		0.78	0.81	0.48
Current Ratio (Current Asset/Current Liability)		1.72	1.62	1.87

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 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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS:

The Company made Revenue from operations of Rs.804.353 millions during the year as compared to previous year revenue of Rs.654.562 millions. The Company has continued turnaround and achieved Net Profit after tax of Rs.65.148 millions as compared to Rs.48.724 millions made in the previous year.

As a statutory condition, the Company has debited an amount of Rs.38.000 millions to the Profit and Loss account and credited the corresponding amount to Special Economic Zone Re-investment Allowance Reserve Account, which has to be utilized for specific purposes during the specified period.

During the year, the management had taken various steps including reduction in expenses, streamlining production and improving on productivity in achieving the better results.

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.

FIXED ASSETS:

• Leasehold Land
• Factory Building
• Plant and Machinery
• Electrical Installations
• Furniture and Fittings
• Air Conditioners
• Computers
• Office Equipments
• Vehicles
• Computer Software

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.54.42
UK Pound	1	Rs.88.29
Euro	1	Rs.71.49

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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
TOTAL		45

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.