MIRA INFORM REPORT

Report Date :

17.07.2013

IDENTIFICATION DETAILS

Name :	MAHENDRA BROTHERS EXPORTS PRIVATE LIMITED
Registered Office :	CE 7011-15, 7^th Floor, Tower C, Central Wing, Bharat Diamond Bourse, G Block, Bandra Kurla Complex, Bandra (East), Mumabi – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss)
Date of Incorporation :	05.04.2007
Com. Reg. No.:	11-169724
Capital Investment / Paid-up Capital :	Rs.1183.551 Millions (As on 31.03.2011)
CIN No.: [Company Identification No.]	U52393MH2007PTC169724
TAN No.: [Tax Deduction & Collection Account No.]	MUMM31691C
PAN No.: [Permanent Account No.]	AAFCM0246E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cut and Polished Diamonds.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 9900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has achieved better growth in its sales during 2012 but the profits have dipped. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions. Note: The financials of 2012 are collected from indirect source (CARE).

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	April 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.

LOCATIONS

Registered Office :	CE 7011-15, 7^th Floor, Tower C, Central Wing, Bharat Diamond Bourse, G Block, Bandra Kurla Complex, Bandra (East), Mumabi – 400051, Maharashtra
Tel. No.:	91-22-66615600 /23634565
Fax No.:	91-22-66615661
E-Mail :	account@mahendrabrother.com info@mahendrabrother.com mahebros@giasbm01.vsnl.net.in mgassociates@vsnl.com export@mahendrabrothers.com
Website :	www.mahendrabrothers.com
Head Office / Sales Office :	Tower C, Central Wing, CE 7011-15, (8^th fl) G Block, Bharat Diamond Bourse, BKC, Bandra (E), Mumbai 400051, Maharashtra, India
Tel. No.:	91-22-66156000
Fax No.:	91-22-66615633

DIRECTORS

As on 26.09.2012

Name :	Mr. Saunak Jitendra Parikh
Designation :	Whole Time Director
Address :	161-D, Tahnee Heights, 66, Nepeansea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	22.08.1971
Qualification :	B.Com
Date of Appointment :	05.04.2007
DIN No.:	00256316
Name :	Ms. Milan Kavin Parikh
Designation :	Whole Time Director
Address :	15-A, Next to Khatau Condominium, J. Mehta Marg, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	06.07.1963
Qualification :	B.Com
Date of Appointment :	05.04.2007
DIN No.:	00256411
Name :	Mr. Hiten Bagmal Parikh
Designation :	Whole Time Director
Address :	41, Laxmi Vilas, 8 Nepean Sea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	03.09.1956
Qualification :	S.S.C.
Date of Appointment :	05.04.2007
DIN No.:	00292585
Name :	Mr. Raj Hiten Parikh
Designation :	Whole Time Director
Address :	41-Laxmi Vilas, 87 Nepeansea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	21.12.1981
Date of Appointment :	05.04.2007
DIN No.:	00921828

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2012

Names of Shareholders (Equity Share)	No. of Shares
Jitendra Chimanlal Parikh	12040000
Hiten Bagmal Parikh	10514725
Milan Kavin Parikh	10320585
Saunak Jitendra Parikh	7116440
Jitendra Chimanlal Parikh, Trustee of J.C. Family Trust, India	2020000
Hiten Bagmal Parikh, Trustee of Hiten Paikh Family Trust, India	2020000
Raj Hiten Parikh	2651250
Jitendra Chimanlal Parikh, Trustee of Saunak Family Trust, India	5383500
Ketan Bagmal Parikh, Trustee of Milan Family Trust, India	2247250
Hiten Bagmal Parikh, Trustee of Raj Family Trust, India	1767500
Hiten Bagmal Parikh, Trustee of Rishi Family Trust, India	1767500
Rishi Hiten Parikh	2651250
Ignazia Pte Limited, Singapore	2857071
Total	63357071

1% Non-Cumulative Redemption Preference Shares

Names of Shareholders	No. of Shares
Accredut Finance and Investments Private Limited, India	1662530
Saunak J. Parikh – holding as Trustee of Suna Trust, India	13333970
Total	14996500

5% Non-Cumulative Redemption Preference Shares

Names of Shareholders	No. of Shares
Abhay V Mehta HUF Jt. Ashay Anand Mehta Jt. Ashna Mehta Jt. Rhea Mehta	100
Abhay V Mehta Jt. Anand V. Mehta Jt. Ashumi Abhay Mehta Jt. Vikram M. Mehta HUF	100
Amrish A Dalal Jt. Kunal N. Mehta Jt. Nilesh T. Mehta HUF Jt. Ruma N. Mehta	100
Apurva A. Kothari Jt. Jay K. Parikh Jt. Ketan B. Parikh HUF	100
Bipinchandra G. Shah Jt. Samir B. Shah Jt. Nehal Mehta Jt. Rajesh N. Parikh	100
Charvi A Mehta Jt. Bhavika D. Shah Jt. Chetna S. Mehta Jt. Rekha K. Mehta	100
Dineshchandra C. Mehta Jt. Dineshchandra C. Mehta HUF Jt. Sudha D. Mehta Jt. Shital D. Mehta	100
Indiraben R. Mehta Jt. Vaishali S. Bhansali	100
Indu Suresh Mehta Jt. Rinku S. Mehta Jt. Ruchi J. Parikh Jt. Swati Nipun Mehta	100
Jayantilal S. Shah Jt. Sachin Shah Jt. Samir Kothari HUF Jt. Suresh Kothari HUF	100
Manibhai P. Mehta HUF Jt. Suresh M Mehta Jt. Suresh M Mehta HUF	100
Navinchandra A. Shah Jt. Subhadra N. Shah	100
Nipaben Sureshbhai Mehta Jt. Devila V. Mehta Jt. Vinodchandra H. Mehta Jt. Vinod H. Mehta HUF	100
Parag N. Shah	100
Purvi A. Mehta Jt. Ayush Ajesh Mehta	100
Ramniklal Bhogilal and Company, India	100
Samrat D. Mehta Jt. Namrita S. Mehta Jt. Nija S. Mehta Jt. Usha M. Zaveri	100
Smita H. Mehta	100
Subhadra J. Chodhary Jt. Milan K. Parikh holding in the capacity of Trustee of Aalalay Trust Jt. Milan K. Parikh holding in the capacity of Trustee of KM Family Trust Jt. Milan K. Parikh HUF	100
Vasundhara A Parikh Jt. Chaitali S. Saraiya Jt. Chhayaben B. Saraiya Jt. Shail S. Saraiya	100
Vinod M. Mehta HUF Jt. Jitendra C. Parikh HUF Jt. Milan K. Parikh holding in the capacity of Trustee of Yati Trust Jt. Hiten B. Parikh HUF	100
Mahendra K. Mehta HUF - repesented by Mahendra Merchant – Karta Jt. Kunjalata J. Bhansali Jt. Nalini Bhansali Jt. Neha A. Bhansali	100
Vasanti M. Mehta Jt. Aashumi Asit Mehta Jt. Ashit Mahendra Mehta Jt. Bipin J. Mehta	100
Alka Bharat Mehta Jt. Bharat J. Mehta Jt. Bharat J. Mehta HUF Jt. Parag B. Mehta	25
Hiral Patel Jt. Prerana R. Pathak Jt. Ramesh Pathak Jt. Usha P. Pathak	25
Neha Suraj Shah Jt. Priyanki Mody Jt. Snehalata Bhansali Jt. Sonal Bhansali	25
Neeta A. Mehta Jt. Payal B. Bhansali Jt. Pooja A. Bhansali Jt. Shital A. Bhansali	25
Vikram M. Mehta	25
Niyati Mehta Jt. Aayushi K. Mehta Jt. Kirankumar S. Mehta Jt. Krina K. Mehta	25
Pravina S. Mehta Jt. Niki Viral Mehta Jt. Nita K. Mehta Jt. Milan S. Mehta	25
Shruti M. Mehta Jt. Rashi M. Mehta Jt. Ridhi M. Mehta Jt. Sevantilal Mehta HUF	25
Jitendra C Parikh – Trustee holding on behalf Smaran Trust.	100
Ajay Chaudhari Jt. Angana Chaudhari Jt. Darshan A. Chaudhari Jt. Krishna A. Chaudhari	100
Bagmal K. Mehta HUF Jt. Manoj B. Mehta Jt. Bhadresh B. Mehta Jt. Surekha S. Mehta	100
Total	2800

2% Convertible Preference Shares

Names of Shareholders	No. of Shares
Ignazia Pte Limited, Singapore	39998800
Total	39998800

As on 26.09.2012

Equity Share Break up (Percentage of Total Equity)

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	4.50
Directors or relatives of Directors	71.49
Other top fifty shareholders	24.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cut and Polished Diamonds.

Products :

Product Description	Item Code
Diamonds	7102.39

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ABN Amro Bank, N V Veer Nariman Point Road, Mumbai, Maharashtra, India

· The Royal Bank of Scotland N.V (Acting as lead bank), 74, Sakhar Bhavan, 7^th Floor, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011
Working Capital Loans Banks Secured	4939.077
Total	4939.077
Includes Pre-shipment credit form Bank Rs.2275.627 Millions; Post –shipment credit form Bank Rs.2663.450 Millions; Total 4939.077 Millions

Banking Relations :	--
Auditors :
Name :	Sampat Mehta and Associates Chartered Accountants
Address :	3, Kapur Mansion, 47, Huges Road, Mumbai - 400067, Maharashtra, India
Tel. No.:	91-22-61411200
Mobile No.:	91-22-61411212
Fax No.:	info@sampatmehata.com
E-Mail :	http://www.sampatmehta.com
PAN.:	AAAFS1266J
Subsidiaries : (As on 31.03.2011)	Mahendra Brother Diamonds Private Limited (MBDPL) Rijay Diamond Exports Private Limited (RDEPL) Aashi Jewels Private Limited (AJPL) Rijay Properties and Developers Private Limited(RPDPL) Saumil Properties and Developers Private Limited (Saumil) Visualise Financial Private Limited (Visualise) MBMG Diamonds Private Limited Diarough South Africa (Pty) Limited
Related Party (As on 31.03.2011)	Parmes Diamonds Exports Private Limited Priceless Properties and Developers Private Limited Uni-Design (Elite) Jewellery Private Limited Uni-Design Jewellery Private Limited Uni-Design Jewellery Private Limited MB Investments Accredut Finance and Investments Private Limited Asmina properties and Developers Private Limited Excellent Make Diamond Ketan Brothers Exports Panvel Holiday Resorts Private Limited Skyhigh Trustee Services Private Limited Universal Diamonds

CAPITAL STRUCTURE

As on 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 Millions
80000000	Preference Shares	Rs.10/- each	Rs.800.000 Millions
	Total		Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
63357071	Equity Shares	Rs.10/- each	Rs.633.570 Millions
14996500	1% Non-Cumulative Redemption Preference Shares	Rs.10/- each	Rs.149.965 Millions
2800	5% Non-Cumulative Redemption Preference Shares	Rs.10/- each	Rs.0.028 Million
39998800	2% Convertible Preference Shares	Rs.10/- each	Rs,399.988 Millions
	Total		Rs.1183.551 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		1183.551	1183.551
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		1300.902	1088.746
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2484.453	2272.297
LOAN FUNDS
1] Secured Loans		4939.077	3593.637
2] Unsecured Loans		2700.254	2720.290
TOTAL BORROWING		7639.331	6313.927
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		10123.784	8586.224
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1439.432	1094.895
Capital work-in-progress		846.178	1114.838
INVESTMENT		145.019	252.196
DEFERREX TAX ASSETS		351.443	482.868
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3856.115	3236.455
	Sundry Debtors	4644.804	3232.052
	Cash & Bank Balances	489.204	394.573
	Other Current Assets	0.000	0.000
	Loans & Advances	865.865	528.220
Total Current Assets		9855.988	7391.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2493.641	1729.019
	Other Current Liabilities	20.618	20.837
	Provisions	0.017	0.017
Total Current Liabilities		2514.276	1749.873
Net Current Assets		7341.712	5641.427
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		10132.784	8586.224

NOTE: Balance Sheet For The Year 2012 Is Not Available, Only Profit And Loss Account Is Available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	20439.700	15250.508	10440.772
		Other Income
		TOTAL (A)	20439.700	15250.508	10440.772
Less	EXPENSES
		Office Expenses
		Administrative Expenses	19132.400	14350.310	9592.381
		Advertising Expenses
		TOTAL (B)	19132.400	14350.310	9592.381
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1307.300	900.198	848.391
Less	FINANCIAL EXPENSES (D)		1030.900	451.900	416.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		276.400	448.298	431.591
Less/ Add	DEPRECIATION/ AMORTISATION (F)		95.500	101.400	64.100
	PROFIT BEFORE TAX (E-F) (G)		180.900	346.898	367.491
Less	TAX (H)		28.200	59.069	100.141
	PROFIT AFTER TAX (G-H) (I)		152.700	287.829	267.350
Add	PRIOR PERIOD INCOME / EXPENSES		NA	0.000	1.861
	BALANCE CARRIED TO THE B/S		NA	287.829	269.211
	EARNINGS IN FOREIGN CURRENCY		NA	NA	10411.622
	IMPORTS
		Raw Materials	NA	6929.139	5742.517
		Finished Goods	NA	3382.302	2439.402
		Consumable, Stores and Tools	NA	3.650	3.311
		Capital Goods	NA	12.083	11.529
	TOTAL IMPORTS		NA	10327.174	8196.759
	Earnings Per Share (Rs.)		1.29	4.54	4.25

Note: The financials of 2012 are collected from indirect source (CARE).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.75	1.89	2.56
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.07	3.83
Return on Investment (ROI) (PBT/Networth)		NA	0.14	0.16
Debt Equity Ratio (Total Debt /Networth)		NA	3.07	2.78
Current Ratio (Current Asset/Current Liability)		NA	3.92	4.22

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	Yes

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 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.

Note:

The registered office of the company has been shifted from 611, Panchatratna, Mama Parmanad Marg, Opera House, Mumbai – 400 004, Maharashtra, India to present address w.e.f. 25.04.2013

BACKGROUND

Subject was incorporated upon conversion of erstwhile firm Messrs Mahendra Brother into a private limited company under provision of Part IX of the companies Act,1956 with effect from April 5,2007 vide certificate of incorporation No U52393MH2007PTC169724 issued by the Registrar of Company, Maharashtra, Mumbai. Upon conversion, the company has taken over all the assets and liabilities of the erstwhile firm at its respective book value as on April 4, 2007 and issued Equity Shares to the Partners of the firm against their fixed / current capital in the firm.

The company is predominantly engaged in manufacturing and sales of polished diamonds.

AMALGAMATION OF COMPANY:

Hon;ble High court of Mumbai vide its order dated 29^th October, has approved the Scheme of Amalgamation of its 100% subsidiary company companies Mahendra Brother Diamonds Private Limited, Rijay Diamonds Exports Private Limited, Rijay Properties and Developers Private Limited, Saumil Properties and Developers Private Limited, Ashi Jewels Private Limited, and Visualise Financials private limited with company. Pursuant to the said Scheme and in accordance with the said orders of the concerned Hogh Courts, the entire business and undertakings including all the assets and liabilities of transferor companies stand transferred to and vested with the company form April 1, 2010. The scheme has accordingly been given effect to in the current financial statements, AUDITORS: M/s Sampat Mehta and Associates, Chartered Accountants, Mumbai, [Firm Registration No.109038W] the statutory auditors of the company will retire at the conclusion of the ensuing Annual General Meeting, and being eling eligible, offers themselves for re-appointment. The company has received a certificate from the auditors u/s. 224(1B) of the companies Act, 1956 to the effect that their re-appointment if made, will be within the limit prescribed. PUBLIC APPRECIATION: the Directors place on record their deep appreciation and sincere gratitude to the Bankers of the company and to various Department of central and State Government(s) and the employee of the company for their valuble assistance and support.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2011
Loans directors unsecured	686.131
Other debt unsecured	(A)2014.123
Total	2700.254
(A) includes: from shareholders Rs.1138.945 Millions from relatives of directors Rs.875.175 Millions

FIXED ASSETS:

• Building
• Plant and Machinery
• Equipment
• Furniture and Fixtures
• Computer
• Vehicles

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.59.39
UK Pound	1	Rs.89.90
Euro	1	Rs.77.73

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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

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.