MIRA INFORM REPORT

Report Date :

17.05.2013

IDENTIFICATION DETAILS

Name :	K. GIRDHARLAL INTERNATIONAL LIMITED [w.e.f. 13.03.2008]
Formerly Known As :	K. GIRDHARLAL INTERNATIONAL PRIVATE LIMITED
Registered Office :	1003, Panchratna, Opera House, Mumbai-400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.06.2005
Com. Reg. No.:	11-153898
Capital Investment / Paid-up Capital :	Rs.1487.853 Millions
CIN No.: [Company Identification No.]	U36910MH2005PLC153898
VAT / TIN :	27340250894 V
CST / TIN :	27340250894 C
PAN No.: [Permanent Account No.]	AACCK6101F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Diamonds Jewellery.
No. of Employees :	2500 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. It has recorded some growth in its income during 2012. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A – [Long Term Bank Facilities]
Rating Explanation	Adequate degree of safety and low credit risk.
Date	28.02.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Tittes
Designation :	Finance Head Department
Contact No.:	91-22-23637896
Date :	15.05.2013

LOCATIONS

Registered / Head Office :	1003, Panchratna, Opera House, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-23637896
Fax No.:	Not Available
E-Mail :	info@kgirdharlal.com
Website :	http://www.kgirdharlal.com
Location :	Owned
Factory :	K.G. House, Umiya Chowk, A.K. Road, Surat-395008, Gujarat, India
Tel. No.:	91-261-2560001
Fax No.:	91-261-2560002
Sales Office :	1011, Prasad Chambers, Opera House, Mumbai-400004, Maharashtra, India
Tel No.:	91-22-23631513
Sales Overseas Office :	Located At: New York Belgium Dubai Hong Kong China

DIRECTORS

AS ON 30.09.2012

Name :

Mr. Kishore Girdharlal Shah

Designation :

Director

Address :

A/5, Arvind Kung, Opposite A.C. Market, Tardeo, Mumbai-400034, Maharashtra, India

Date of Birth/Age :

01.05.1941

Date of Appointment :

10.06.2005

Din No.:

00200309

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36912MH1999PTC119076	K GIRDHARLAL DIAMONDS (INDIA) PRIVATE LIMITED	Director	24/03/1999	24/03/1999	Active	NO
2	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Whole-time director	25/08/2008	10/06/2005	Active	NO
3	U51909GJ2003PTC042457	ADD VALUE SOLUTIONS PRIVATE LIMITED	Director	03/09/2006	03/09/2006	Active	NO
4	U70101MH2003PTC210816	SURAT ENTERPRISES PRIVATE LIMITED	Director	01/11/2007	01/11/2007	Amalgamated	NO
5	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING (INDIA) LIMITED	Director	04/11/2010	04/11/2010	Active	NO
6	U36911GJ2001PTC039254	SPARKLE DIAM PRIVATE LIMITED	Director	14/08/2012	14/08/2012	Active	NO

Name :

Mr. Parag Kishore Shah

Designation :

Director

Address :

A/5, Arvind Kung, Opposite A.C. Market, Tardeo, Mumbai-400034, Maharashtra, India

Date of Birth/Age :

17.02.1968

Date of Appointment :

10.06.2005

Din No.:

00016400

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	U72200GJ2004PTC043586	LEMON TECHNOLOGIES PRIVATE LIMITED	Director	10/02/2004	10/02/2004	14/02/2008	Active	NO
2	U91110GJ2000NPL039065	GUJARAT HIRA BOURSE	Director	09/03/2004	09/03/2004	-	Active	NO
3	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Whole-time director	25/08/2008	10/06/2005	-	Active	NO
4	U45200GJ2006PTC047855	ADD VALUE PROPERTIES PRIVATE LIMITED	Director	02/03/2006	02/03/2006	-	Active	NO
5	U51909GJ2003PTC042457	ADD VALUE SOLUTIONS PRIVATE LIMITED	Director	03/09/2006	03/09/2006	-	Active	NO
6	U70101MH2003PTC210816	SURAT ENTERPRISES PRIVATE LIMITED	Director	01/11/2007	01/11/2007	-	Amalgamated	NO
7	U80212GJ2007PTC052165	FOUNTAINHEAD EDUCATION PRIVATE LIMITED	Director	15/11/2007	15/11/2007	10/09/2008	Active	NO
8	U80904MH2012NPL233740	THE GEM AND JEWELLERY SKILL COUNCIL OF INDIA	Director	24/07/2012	24/07/2012	-	Active	NO
9	U36911GJ2001PTC039254	SPARKLE DIAM PRIVATE LIMITED	Director	14/08/2012	14/08/2012	-	Active	NO

Name :

Mr. Pintu Vinodkumar Shah

Designation :

Director

Address :

247, Sai Kripa Building, 1st Floor, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

29.04.1974

Date of Appointment :

10.06.2005

Din No.:

00149119

Name :

Mr. Piyush Vinodkumar Shah

Designation :

Director

Address :

247, Sai Kripa Building, 1st Floor, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

01.04.1979

Date of Appointment :

02.11.2010

Din No.:

00087175

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36900MH2000PTC128794	HERITAGE JEWELS PRIVATE LIMITED	Director	20/09/2000	20/09/2000	Active	NO
2	U36911GJ2001PTC039254	SPARKLE DIAM PRIVATE LIMITED	Director	18/04/2003	18/04/2003	Active	NO
3	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Director	30/09/2010	10/06/2005	Active	NO
4	U36912GJ1995PTC027887	FACETS GEMS POLISHING WORKS PRIVATE LIMITED	Director	06/06/2008	06/06/2008	Active	NO

Name :

Mr. Rashmikant Natwarlal Shah

Designation :

Director

Address :

102, Niraj Apartment, 70, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

11.09.1964

Date of Appointment :

10.06.2005

Din No.:

00708523

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36912MH1999PTC119076	K GIRDHARLAL DIAMONDS (INDIA) PRIVATE LIMITED	Director	24/03/1999	24/03/1999	Active	NO
2	U36900MH2000PTC128794	HERITAGE JEWELS PRIVATE LIMITED	Director	20/09/2000	20/09/2000	Active	NO
3	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Whole-time director	25/08/2008	10/06/2005	Active	NO

Name :

Mr. Yogesh Natwarlal Shah

Designation :

Director

Address :

102, Niraj Apartment, 70, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

09.10.1967

Date of Appointment :

10.06.2005

Din No.:

00087231

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Whole-time director	25/08/2008	10/06/2005	Active	NO
2	U45200GJ2006PTC047855	ADD VALUE PROPERTIES PRIVATE LIMITED	Director	02/03/2006	02/03/2006	Active	NO
3	U70101MH2003PTC210816	SURAT ENTERPRISES PRIVATE LIMITED	Director	01/11/2007	01/11/2007	Amalgamated	NO

Name :

Mr. Vinodkumar Gautamlal Shah

Designation :

Additional Director

Address :

2, Bhaswan Bldg.,247, Walkeshwar Road, Banganga, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

09.06.1950

Date of Appointment :

01.04.2010

Din No.:

03175185

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U36910MH2005PLC153898	K.GIRDHARLAL INTERNATIONAL LIMITED	Director	30/09/2010	01/04/2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Tittes
Designation :	Finance Head Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Kishore Girdharlal Shah	136333	14850000
Parag Kishore Shah	170543	13513500
Vinod Gautamlal Shah	46350	5098500
Rashmikant Natwarlal Shah	152817	16780500
Dinesh Mohanlal Shah	110700	16780500
Yogesh Natwarlal Shah	198883	12177000
Pintu Vinodkumar Shah	90000	9900000
Natwarlal Shah	135267	9900000
Brill Diam Company Limited, Hong Kong	182700	26410000
Meeta Parag Shah	2213	22131176
Nika Yogesh Shah	5466	--
Kokilaben V. Shah	2053	--
Sonal P. Shah	1867	--
Sangita R. Shah	2933	--
Shobhnaben K. Shah	2240	--
Manoramaben D. Shah	1866	--
Nishil N. Shah	267	--
Nishita N. Shah	267	--
Shenil N. Shah	267	--
Sheryl N. Shah	267	--
Rushita R. Shah	267	--
Sanya R. Shah	267	--
Viraj R. Shah	267	--
TOTAL	1244100	147541176

AS ON 30.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	15.00
Directors or relatives of directors	85.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamonds Jewellery.
Exports :
Products :	Diamonds
Imports :
Products :	Diamonds
Terms :
Selling :	L/C / Cash and Credit
Purchasing :	L/C / Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Diamonds	--	Not Applicable	Not Applicable	Not Applicable
Electricity Generation From Windmills	KW	Not Applicable	1600	Not Applicable

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

2500 [Approximately]

Bankers :

• ABN Amro Bank N.A., Sakhar Bhavan, 4^th Floor, Nariman Point, Mumbai-400021, Maharashtra, India
• Royal Bank of Scotland
• HDFC Bank
• State Bank of India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan From Banks	3792.257	3013.197
TOTAL	3792.257	3013.197

Banking Relations :	--
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address :	13 Floor, Bakhtawar, 228, Nariman Point, Mumbai-400021, Maharashtra, India
PAN No:	AAQFS7647M
Associates/Subsidiaries :	K Girdharlal Diamonds (India) Private Limited [U36912MH1999PTC119076] K. Girdharlal (Hong Kong) Limited K. Girdharlal Inc., United States SPARKLE DIAM PRIVATE LIMITED N. M. Shah and Bros. (Partnership Firm) Fountainhead Education Private Limited Facets Gems Polishing Works Private Limited Vardhman Infrastructure Private Limited K. G. Exports (Partnership Firm) Aspeco N.V., Belgium K. Girdharlal DMCC, Dubai KG Creation, France BLH KG Diamonds (China) Company Limited Add Value Solutions Private Limited Spectacolour Diamonds (Partnership Firm) L Emon Technologies Private Limited [U30007AP2002PTC038455] Heritage Jewels Private Limited [U36900MH2000PTC128794]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
148500000	Preferences Shares	Rs.10/- each	Rs.1485.000 Millions
	TOTAL		Rs.1505.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1244100	Equity Shares	Rs.10/- each	Rs.12.441 Millions
147541176	Preferences Shares	Rs.10/- each	Rs.1475.412 Millions
	TOTAL		Rs.1487.853 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		1487.853	1487.853	1487.589
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1973.959	1759.557	1554.952
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3461.812	3247.410	3042.541
LOAN FUNDS
1] Secured Loans		3792.257	3013.197	3202.333
2] Unsecured Loans		1369.326	1504.721	1519.757
TOTAL BORROWING		5161.583	4517.918	4722.090
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		8623.395	7765.328	7764.631
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		376.504	290.721	135.591
Capital work-in-progress		9.622	5.784	63.654
INVESTMENT		2516.043	2269.226	2053.615
DEFERREX TAX ASSETS		16.926	22.150	9.695
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4847.244	3281.775	3189.623
	Sundry Debtors	3233.159	2328.009	2922.295
	Cash & Bank Balances	15.673	43.492	32.334
	Other Current Assets	46.597	21.970	0.227
	Loans & Advances	551.921	552.268	824.652
Total Current Assets		8694.594	6227.514	6969.131
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2886.381	1032.242	1453.730
	Other Current Liabilities	93.379	5.565	8.741
	Provisions	10.534	12.260	4.584
Total Current Liabilities		2990.294	1050.067	1467.055
Net Current Assets		5704.300	5177.447	5502.076
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8623.395	7765.328	7764.631

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	10483.780	8815.799	8268.035
		Other Income	161.346	88.660	155.282
		TOTAL (A)	10645.126	8904.459	8423.317
Less	EXPENSES
		Cost of materials consumed	8835.088	5731.376
		Purchases of stock-in-trade	1917.970	1652.949
		Employee benefit expense	43.103	41.456	7962.307
		Other expenses	798.601	611.432
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1449.034)	391.683
		TOTAL (B)	10145.728	8428.896	7962.307
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		499.398	475.563	461.010
Less	FINANCIAL EXPENSES (D)		148.373	109.957	176.847
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		351.025	365.606	284.163
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.975	21.886	16.404
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		301.050	343.720	267.759
Less	TAX (H)		86.648	81.388	61.725
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		214.402	262.332	206.034
	EARNINGS IN FOREIGN CURRENCY
		FOB Basis	9651.369	7178.975	7076.795
	IMPORTS
		Raw Materials	9281.926	6904.435	6511.878
		Components and Spare Parts	3.655	1.384
		Capital Goods	75.183	47.728
	TOTAL IMPORTS		9360.764	6953.547	6511.878
	Earnings / (Loss) Per Share (Rs.)
	- Basic		172.33	210.86	--
	- Diluted		172.33	210.86	--

Particulars	31.03.2013
Sales Turnover [Approximately]	11000.000

The above information has been parted by Mr. Tittes.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.01	2.95	2.45
Net Profit Margin (PBT/Sales)	(%)	2.87	3.90	3.23
Return on Total Assets (PBT/Total Assets}	(%)	3.32	5.27	3.77
Return on Investment (ROI) (PBT/Networth)		0.09	0.11	0.09
Debt Equity Ratio (Total Debt/Networth)		1.49	1.39	1.55
Current Ratio (Current Asset/Current Liability)		2.90	5.93	4.75

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	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	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

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.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Loans and Advances From Directors	1099.701	1229.201
Loans and Advances From Others	269.362	275.520
Loans Repayable on Demand	0.263	0.000
TOTAL	1369.326	1504.721

FINANCIAL RESULTS:

The Total Income from operations for the year is Rs.10645.100 Millions as compared to Rs. 8904.400 Millions during the previous year. Net Profit after tax is Rs.214.400 Millions as compared to Rs. 262.300 Millions during the previous year. There was an increase in the turnover but decrease in profit after tax due to rise in cost of materials consumed as compared to last year.

FIXED ASSETS:

• Building
• Plant and Machinery
• Windmill Plant and Machinery
• Electrical Installation
• Furniture and Fixtures
• Computers
• 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 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.54.77
UK Pound	1	Rs.83.31
Euro	1	Rs.70.46

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.