MIRA INFORM REPORT

Report Date :

10.07.2013

IDENTIFICATION DETAILS

Name :	S.B. AND T INTERNATIONAL LIMITED
Registered Office :	138, Shreeji Chambers, First Floor, Tata Road No.2, Opera House, Mumbai – 400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.10.1986
Com. Reg. No.:	11-041237
Capital Investment / Paid-up Capital :	Rs.168.500 millions
CIN No.: [Company Identification No.]	L36911MH1986PLC041237
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is in the business of manufacturing and exporting of gem studded jewellery.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 3257000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic fall in its sales turnover and incurred huge loss during 2012. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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

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 DECLINED BY

Name :	Ms. Neha
Designation :	Accounts Executive
Contact No.:	91-22-67421444
Date :	09.07.2013

LOCATIONS

Registered Office :	138, Shreeji Chambers, First Floor, Tata Road No.2, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23636804/ 5/ 67421444
Fax No.:	91-22-23633282
E-Mail :	vipul@sbtindia.com sbtint@vsnl.com
Website :	http://www.sbtindia.com
Factory 1 :	G-3, Gems and Jewellery Complex - I, SEEPZ, Andheri (East), Mumbai - 400 096, Maharashtra, India
Factory 2 :	Plot No.96, Road No.16, MIDC Industrial Area, Andheri (East), Mumbai - 400 096, Maharashtra, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Surendra Kumar Sethi
Designation :	Chairman and Joint Managing Director
Name :	Mr. Varij Sethi
Designation :	Managing Director
Name :	Mr. Ravi Gulab Khubchandani
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	45 Years
Name :	Mr. Martin Feinstein
Designation :	Independent and Non-Executive Director
Name :	Mr. Sunil Barjatiya
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	54 Years
Qualification :	Graduate in Commerce
Committees of Board
Audit Committee :	Mr. Sunil Barjatiya Mr. Ravi Khubchandani Mr. Varij Sethi
Shareholders Grievance Committee :	Mr. Ravi Kubchandani Mr. Martin Feinstein Mr. Sunil Barjatiya
Compensation / Remuneration Committee :	Mr. Ravi Kubchandani Mr. Martin Feinstein Mr. Sunil Barjatiya

KEY EXECUTIVES

Name :	Ms. Neha
Designation :	Accounts Executive
E-Mail :	accounts@sbtdesignsltd.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	323802	1.92
Bodies Corporate	100000	0.59
Sub Total	423802	2.52
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1350000	8.01
Sub Total	1350000	8.01
Total shareholding of Promoter and Promoter Group (A)	1773802	10.53
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1700	0.01
Financial Institutions / Banks	1093316	6.49
Foreign Institutional Investors	109215	0.65
Sub Total	1204231	7.15
(2) Non-Institutions
Bodies Corporate	3213011	19.07
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	4676199	27.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	5533219	32.84
Any Others (Specify)	449538	2.67
Non Resident Indians	446338	2.65
Overseas Corporate Bodies	3200	0.02
Sub Total	13871967	82.33
Total Public shareholding (B)	15076198	89.47
Total (A)+(B)	16850000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	16850000	0.00

BUSINESS DETAILS

Line of Business :

Subject is in the business of manufacturing and exporting of gem studded jewellery.

Products :

Item Code No. (ITC Code)	711319.03
Product Description	Jewellery of Gold, set with Diamond
Item Code No. (ITC Code)	710239.01
Product Description	Cut and Polished Diamonds

PRODUCTION STATUS [AS ON 31.03.2011]

Class of Goods manufactured	Licensed Capacity	Installed Capacity	Actual Production
Gold, Diamonds and Colour Stones Jewellery	Not Applicable	Not Yet ascertained	1785 Pcs

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• The Federal Bank Limited
• Axis Bank Limited
• Union Bank of India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
SHORT-TERM BORROWINGS
From Banks (Secured against hypothecation of Stock and Book Debts)	286.352	282.744
Total	286.352	282.744

Banking Relations :	--
Auditors :
Name :	M.M. Dubey and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiaries :	S B and T Holding Limited S B and T Designs Limited Mimanssa Jewellery (Private) Limited
Promoter :	S.B. and T. Gems Import Inc.
Other Related Parties :	Sethi Mercantile Private Limited FNZ Jewels (Private) Limited Arup Builders and Developers (Private) Limited Swel Jewels

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16850000	Equity Shares	Rs.10/- each	Rs.168.500 millions

PAID-UP CAPITAL INCLUDES:

500000 Equity Shares of Rs.10/- each fully paid up were issued during the year 2008-09 at a premium of Rs.30/- per Share as a purchase Consideration for acquisition of Mimansa Jewellery Private Limited as its 100% subsidiary

The Details of Shareholders holding more than 5% Equity Shares:

Particulars	As at 31^st March, 2012
	No. of Shares	% of holding
i. Mr. Venu Krishnan	1000000	5.93
ii. Mr. Kapil Puri	--	--

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	168.500	168.500
(b) Reserves & Surplus	645.787	922.759
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	814.287	1091.259
(3) Non-Current Liabilities
(a) Long-term borrowings	39.111	15.229
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	2.107	1.789
Total Non-current Liabilities (3)	41.218	17.018
(4) Current Liabilities
(a) Short term borrowings	286.352	282.744
(b) Trade payables	601.025	716.662
(c) Other current liabilities	97.887	69.501
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	985.264	1068.907
TOTAL	1840.769	2177.184
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.149	14.281
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.396	0.396
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	366.719	366.719
(c) Deferred tax assets (net)	0.523	0.281
(d) Long-term Loan and Advances	6.577	6.781
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	387.364	388.458
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	41.634	390.318
(c) Trade receivables	1101.601	1104.551
(d) Cash and cash equivalents	7.318	30.932
(e) Short-term loans and advances	302.375	261.994
(f) Other current assets	0.477	0.931
Total Current Assets	1453.405	1788.726
TOTAL	1840.769	2177.184

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		168.500
2] Share Application Money		0.000
3] Reserves & Surplus		922.577
4] (Accumulated Losses)		0.000
NETWORTH		1091.077
LOAN FUNDS
1] Secured Loans		235.640
2] Unsecured Loans		82.801
TOTAL BORROWING		318.441
DEFERRED TAX LIABILITIES		0.000
TOTAL		1409.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.814
Capital work-in-progress		2.185
INVESTMENT		366.719
DEFERRED TAX ASSETS		0.172
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	440.014
	Sundry Debtors	540.590
	Cash & Bank Balances	30.700
	Other Current Assets	0.000
	Loans & Advances	328.468
Total Current Assets		1339.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	252.923
	Other Current Liabilities	8.297
	Provisions	54.924
Total Current Liabilities		316.144
Net Current Assets		1023.628
MISCELLANEOUS EXPENSES		0.000
TOTAL		1409.518

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	1003.391	1299.649	1286.184
		Other Income	1.511	12.418	4.843
		TOTAL (A)	1004.902	1312.067	1291.027
Less	EXPENSES
		Cost of Material Consumed	1189.444	1224.345	1171.546
		Employee Benefits Expenses	16.396	15.851	12.287
		Other Expenses	17.231	15.320	55.084
		TOTAL (B)	1223.071	1255.516	1238.917
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(218.169)	56.551	52.110
Less	FINANCIAL EXPENSES (D)		57.086	50.488	40.159
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(275.255)	6.063	11.951
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.987	2.322	2.835
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(277.242)	3.741	9.116
Less	TAX (H)		0.243	1.538	5.406
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(276.999)	2.203	3.710
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.380	43.198	41.801
Less	APPROPRIATIONS
		Proposed Dividend	0.000	1.685	1.685
		Dividend Distribution Tax	0.000	0.286	0.286
		Interest on Dividend Distribution Tax	0.000	0.050	0.342
	BALANCE CARRIED TO THE B/S		(233.619)	43.380	43.198
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods (At F.O.B.)	6.695	28.824	65.792
	TOTAL EARNINGS		6.695	28.824	65.792
	Earnings / (Loss) Per Share (Rs.)		(16.44)	0.13	0.22

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	9.800	16.100	34.400	22.100
Total Expenditure	14.800	24.200	33.300	20.000
PBIDT (Excl OI)	(5.000)	(8.100)	1.200	2.000
Other Income	5.700	6.200	15.100	22.700
Operating Profit	0.700	(1.900)	16.300	24.700
Interest	5.400	19.400	12.600	2.700
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	(4.700)	(21.300)	3.700	22.100
Depreciation	0.400	0.500	0.400	0.400
Profit Before Tax	(5.100)	(21.700)	3.300	21.700
Tax	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(5.100)	(21.700)	3.300	21.700
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(5.100)	(21.700)	3.300	21.700

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(27.56)	0.17	0.29
Net Profit Margin (PBT/Sales)	(%)	(27.63)	0.29	0.71
Return on Total Assets (PBT/Total Assets}	(%)	(18.82)	0.21	0.67
Return on Investment (ROI) (PBT/Networth)		(0.34)	0.00	0.01
Debt Equity Ratio (Total Debt/Networth)		0.40	0.27	0.29
Current Ratio (Current Asset/Current Liability)		1.48	1.67	4.24

LOCAL AGENCY FURTHER INFORMATION

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	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	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

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Loan from Directors and relatives parties (Interest Free)	39.111	15.229
Total	39.111	15.229

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.

OPERATIONS

Turnover of the Company is Rs.977.980 millions for the year ended 31^st March, 2012 as compared to Rs.1293.630 millions for the year ended 31^st March, 2011.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian gem and jewellery industry has witnessed a marginal decline of 0.36% in FY 2011--2012 owing to the decrease in trading exports of diamonds. The total gem and jewellery industry exports were recorded at US$42839 million (INR 2048230.000 millions) in FY 2011-12 as compared to US$ 42,995 million (INR 1957350.000 millions) in April 2010 – March 2011. Though in dollar terms there is a marginal drop of 0.36%, the exports mark an increase of 4.6% in rupee value. The gem and jewellery sector accounted for 14% of India’s total merchandise exports in FY 2011-2012.

The growth in the sector was primarily driven by Gold Jewellery which registered an increase of 30% in FY 2012. The exports grew from US$ 12,695 million (INR 577476.700 millions) in 2010-2011 to US$ 16,517 million (INR 794302.600 millions) in 2011-2012.

Cut and Polished Diamonds (CPD) witnessed a decline of 17.30% with exports decreasing from US$ 28,217 million in 2010-2011 to US$ 23,329 million in 2011-2012.

Coloured gemstone exports witnessed an increase of 9.10% in dollar terms with sector recording growth from US$ 314.20 million in 2010-2011 to US$ 342.80 million in 2011-2012.

UAE was the largest exporting destination with 44% of Exports to the market, followed by Hong Kong with 25% and USA with 12% of exports.

There has been a substantial decline in import of polished diamonds during January to March 2012 more than 70% in a month post introduction of 2% duty on C&PD. In the annual figure the decline is 30% in 2011-12 in comparison to previous year. It is expected that the total import of polished diamonds at US$14.3 billion in 2011-12 may eventually come down significantly in 2012-13.

FUTURE OUTLOOK

As industry survey stated, there has been a slowdown in the economy specially in the developed economies and it may continue for sometime due to demand contraction in the developed markets such as the US and the European Union. However, very recent figures and increase in consumer confidence across globe have boosted the industry confidence and experts are hoping for quick revival of consumer demand and growth in industry. All India Gem and Jewellery Trade Federation (GJF) are targeting growth in the forthcoming financial year.

The Indian Diamond Industry is witnessing a divergent trend in the demand for cut and polished diamonds and maintaining its Global Presence. The Jewellery Industry is also having its presence felt in the local as well as global market. The Rupees / Dollar fluctuations is having a lot of impact on the performance of the industry and continues to do so in future also because the exports are linked to dollar. The overall demand in the world market is excellent but due to problems faced by the U.S. economy the demand will be sluggish. Revaluation of Yuan of China will have cost bearing effect in the labour market. This will open up the market for Indian Diamond and Jewellery and increase its presence. Currently, the industry is facing a slowdown due to global economic turmoil. At present, the Indian gems and jewellery market is dominated by the unorganized sector; however, the trend is set to change in near future with the branded jewellery market growing at an expected CAGR of more than 41% in the coming years.

The outlook for the Industry and consequently for the Company during the current financial year is disheartening due to the prevailing disturbed scenario in the different parts of the world. The Company is putting a lot of efforts to strengthen its position. In view of the demand for Cut and Polished Diamonds and Diamond Studded Jewellery there is a continuous, growth in diamond business. There is enough potential in the Indian and Overseas market for the Companies engaged in diamond trade and export. The Company’s policy is to maintain goodwill in the market and flawless perfection at all levels. Customer’s satisfaction is the top most priority.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Turnover of the Company is Rs.977.980 millions for the year ended 31^st March, 2012 as compared to Rs.1293.630 millions for the year ended 31^st March, 2011. Net loss for the year ended 31^st March, 2012 is Rs. (276.990) millions against Net Profit Rs.2.200 millions for the year ended 31^st March, 2011.

CONTINGENT LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2012):

a. Documentary bills submitted to banks for discounting / advances amounting to Rs.19.753 millions (P.Y. Rs.21.416 millions)

b. Liabilities against labour cases filed against the Company is meager and therefore, not ascertainable.

c. Company does not have any contingent liability towards Income Tax dues (P.Y. Nil). However they are informed that Income Tax department has gone in appeals in High Court against the order from ITAT in favour of the company.

d. Custom Duty appeals against demand of Rs.6.424 millions on various imports are going on with Custom Authorities.

FIXED ASSETS:

· Office Premises

· Residential Flat

· Factory Building

· Plant and Machinery

· Furniture, Fixture and Fitting

· Equipments

· Vehicles

· Computer System

WEBSITE DETAILS:

PROFILE:

Subject is a 100% EOU in the business of manufacture and export of studded jewellery at SEEPZ (a free trade zone) in Mumbai. The promoters are Mr. Surendra Kumar Sethi and Mr. Varij Sethi with Technical, Financial and Marketing collaboration with S. B. and T. Gem Imports Inc., Houston, USA. The company takes pride in being one of the very few companies that has the entire studded jewellery manufacturing facilities under one roof with a fully computerized inventory management system.

The Company has a proven track record of over a decade, and is a profit making and dividend paying company. The turnover of SB&T has gone up from Rs.259.100 millions in 1994-95 to Rs.1061.300 millions in 2002-2003. The Net profit has gone up from Rs.26.800 millions in 1994-95 to Rs.3460.700 millions in 2002-2003 after writing off of Rs.46.900 millions as one time exceptional extraordinary items pertaining to raw material, stock and diminution in value of investment as per the limited review carried out by International Auditing Firm. The book value was Rs.28 in 1994-1995 on equity of Rs.35.500 millions and now in 2002-2003 it is Rs.57.66 (on Consolidated account) on equity of Rs.135.000 millions. The reserves of the company have gone up from Rs.40.700 millions in 1994-95 to Rs.601.400 millions in 2002-2003.

The Company was incorporated on 14^th October 1986

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.60.07
UK Pound	1	Rs.89.91
Euro	1	Rs.77.43

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.