MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	INDIAN GEM AND JEWELLERY CREATION PRIVATE LIMITED
Registered Office :	25A, Camac Street, Kolkata – 700016, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.11.2006
Com. Reg. No.:	21-111839
Capital Investment / Paid-up Capital :	Rs. 19.305 Millions
CIN No.: [Company Identification No.]	U27205WB2006PTC111839
TAN No.: [Tax Deduction & Collection Account No.]	CALI02454E
PAN No.: [Permanent Account No.]	AABCI6229F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Seller of Gold Jewellery and Other Articles of various Designs/ Specification.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 1206000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears dip in profit of the company during the financial year 2012. However, general financial position of the company appears to be decent. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings at usual trade terms and conditions. Note: Latest financial for the year 2013 is not available with us.

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

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based limit - term loan : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	March 2013

Rating Agency Name	ICRA
Rating	Non Fund based limit – stand by letter of credit : A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	March 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 :	25A, Camac Street, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-32426000/ 22879896/ 22906799
Fax No.:	91-33-22816596
E-Mail :	ca.msaco@gmail.com lsmandco@yahoo.co.in
Website :	http://www.igjcreation.com
Corporate Office :	IGJ Creation Exclusive Showroom 9B, Wood Street, Ground Floor, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-22905000/ 5001
E-Mail :	igjc@igjcreation.com
Stores :	· 106, Vardaan Market, 1st Floor, 25A, Camac Street, Kolkata – 700016, West Bengal, India · South City Mall Shop No. 003, Ground Floor, 375, Prince Anwar Shah Road, Kolkata – 700068, West Bengal, India · Durgapur Shop No. 205, Dreamplex, 1st Floor, City Centre, Durgapur – 713216, West Bengal, India · Sungold Creation Private Limited 109 Vardaan Market, 1st Floor, 25A, Camac Street, Kolkata – 700016, West Bengal, India

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Prayas Dugar

Designation :

Director

Address :

52 A, Block-D, Dugar Empire, New Alipore, Kolkata – 700053, West Bengal, India

Date of Birth/Age :

05.04.1983

Date of Appointment :

17.11.2006

PAN No.:

AFGPD1132H

DIN No.:

00245893

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	U74999WB2005PTC105800	DUGAR DIAMOND TRADING PRIVATE LIMITED	Director	05/10/2005	05/10/2005	-	Active	NO
2	U27205WB2006PTC111839	INDIAN GEM AND JEWELLERY CREATION PRIVATE LIMITED	Director	17/11/2006	17/11/2006	-	Active	NO
3	U63040WB1998PTC087515	DUGAR TOURS AND TRAVELS PRIVATE LIMITED	Director	12/02/2007	12/02/2007	21/05/2007	Active	NO
4	U74994WB2007PTC113789	STAR GOLD JEWELLERY PRIVATE LIMITED	Director	01/03/2007	01/03/2007	-	Active	NO
5	U52399WB2006PTC107246	PUNAM GEM ANDJEWELLERY PRIVATE LIMITED	Director	23/04/2007	23/04/2007	-	Active	NO
6	U52393WB2005PTC106129	DUGAR GEMS PRIVATE LIMITED	Director	23/04/2007	23/04/2007	-	Active	NO
7	U51109WB2007PTC115728	SUN GOLD CREATION PRIVATE LIMITED	Director	11/05/2007	11/05/2007	-	Active	NO

Name :

Mr. Pramod Dugar

Designation :

Director

Address :

52 A, Block-D, Dugar Empire, New Alipore, Kolkata – 700053, West Bengal, India

Date of Birth/Age :

13.12.1960

Date of Appointment :

17.11.2006

PAN No.:

ADDPD0331M

DIN No.:

00983902

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	U36911WB1993PTC059770	INDIAN GEM AND JEWELLERY PRIVATE LIMITED	Director	16/08/1993	16/08/1993	-	Active	YES
2	U63040WB1998PTC087515	DUGAR TOURS AND TRAVELS PRIVATE LIMITED	Director	15/07/1998	15/07/1998	21/05/2007	Active	NO
3	U27205WB2006PTC111839	INDIAN GEM AND JEWELLERY CREATION PRIVATE LIMITED	Director	17/11/2006	17/11/2006	-	Active	NO
4	U74999WB2005PTC105800	DUGAR DIAMOND TRADING PRIVATE LIMITED	Director	02/02/2007	02/02/2007	-	Active	NO
5	U74994WB2007PTC113789	STAR GOLD JEWELLERY PRIVATE LIMITED	Director	01/03/2007	01/03/2007	-	Active	NO
6	U52399WB2006PTC107246	PUNAM GEM & JEWELLERY PRIVATE LIMITED	Director	23/04/2007	23/04/2007	-	Active	NO
7	U52393WB2005PTC106129	DUGAR GEMS PRIVATE LIMITED	Director	23/04/2007	23/04/2007	-	Active	NO
8	U51109WB2007PTC115728	SUN GOLD CREATION PRIVATE LIMITED	Director	11/05/2007	11/05/2007	-	Active	NO

Name :

Mr. Pratik Dugar

Designation :

Director

Address :

52 A, Block-D, Dugar Empire, New Alipore, Kolkata – 700053, West Bengal, India

Date of Birth/Age :

05.08.1987

Date of Appointment :

06.08.2012

PAN No.:

ANIPD2204J

DIN No.:

05309414

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Pramod Dugar	516850
Prayas Dugar	2700
Pratik Dugar	4000
Punam Chand Dugar	2050
Jhankar Devi Dugar	2050
Dugar Gems Private Limited, India	120000
Stargold Jewellery Private Limited, India	232500
Dugar Diamond Trading Private Limited, India	854865
Vihal Enclave Private Limited, India	10000
Adhinath Creation Private Limited, India	5000
Chandra Kumar Trading Private Limited, India	15000
Punam Gem and Jewellery Private Limited, India	146500
Dugar Kalpana	19000
Total	1930515

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	71.68
Directors or relatives of directors	28.32
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader and Seller of Gold Jewellery and Other Articles of various Designs/ Specification.

Products/ Services :

ITC Code No.	Product Descriptions
99611541	Gems and Jewellery

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, SSI Branch Bhowanipore, 'Premlata', 2nd Floor, 39, Shakespeare Sarani, Kolkata - 700017, West Bengal, India

· Union Bank of India, Camac Street Branch, 1/1, Camac Street, Kolkata - 700016, West Bengal, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Long-term maturities of finance lease Obligations7 [Deferred payment credits are secured by hypothecation of vehicles taken on finance lease. The loan carries interest at the rate of 9.75% to 10.15%.]	1.415	0.180
SHORT TERM BORROWINGS
Loans repayable on demand from banks [The above loans has been taken form State Bank of India and secured by hypothecation of entire stock of raw material, stock-in-process, finished goods, receivables, book debts and other current assets of the company, both present and future. Hypothecation]	245.849	199.126
Total	247.264	199.306

Banking Relations :	--
Auditors :
Name :	M S A and Company Chartered Accountants
Address :	15,Gangadhar Babu Lane, Room No. 301, 304, 3rd Floor, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22258485/ 22371854
Fax No.:	91-33-22254393
E-Mail :	ca.msaco@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAGFK3227M
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Star Gold Jewellery Private Limited [U74994WB2007PTC113789] · Dugar Gems Private Limited [U52393WB2005PTC106129] · Dugar Diamond Trading Private Limited [U74999WB2005PTC105800] · Punam Gem and Jewellery Private Limited [U52399WB2006PTC107246] · Sun Gold Creation Private Limited [U51109WB2007PTC115728]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,500,000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,930,515	Equity Shares	Rs. 10/- each	Rs. 19.305 Millions

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	19.305	18.170
(b) Reserves & Surplus	281.218	258.119
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	1.000	22.700
Total Shareholders’ Funds (1) + (2)	301.523	298.989
(3) Non-Current Liabilities
(a) long-term borrowings	1.415	0.180
(b) Deferred tax liabilities (Net)	1.957	1.202
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	3.372	1.382
(4) Current Liabilities
(a) Short term borrowings	245.849	199.126
(b) Trade payables	65.719	58.499
(c) Other current liabilities	30.528	16.223
(d) Short-term provisions	0.000	6.540
Total Current Liabilities (4)	342.096	280.388
TOTAL	646.991	580.759
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99.307	67.926
(ii) Intangible Assets	0.040	0.066
(iii) Capital work-in-progress	0.547	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.523	1.523
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	7.662	3.023
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	109.079	72.538
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	509.449	465.483
(c) Trade receivables	5.622	19.845
(d) Cash and cash equivalents	21.593	22.016
(e) Short-term loans and advances	0.935	0.800
(f) Other current assets	0.313	0.077
Total Current Assets	537.912	508.221
TOTAL	646.991	580.759

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		18.170
2] Share Application Money		0.000
3] Reserves & Surplus		242.772
4] (Accumulated Losses)		0.000
NETWORTH		260.942
LOAN FUNDS
1] Secured Loans		191.363
2] Unsecured Loans		0.000
TOTAL BORROWING		191.363
DEFERRED TAX LIABILITIES		0.748
TOTAL		453.053
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		56.359
Capital work-in-progress		0.000
INVESTMENT		1.523
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	437.166
	Sundry Debtors	16.147
	Cash & Bank Balances	3.174
	Other Current Assets	0.000
	Loans & Advances	2.973
Total Current Assets		459.460
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	62.493
	Other Current Liabilities	1.388
	Provisions	0.464
Total Current Liabilities		64.345
Net Current Assets		395.115
MISCELLANEOUS EXPENSES		0.056
TOTAL		453.053

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1005.929	937.427	618.320
		Other Income	1.665	0.476	0.837
		TOTAL (A)	1007.594	937.903	619.157
Less	EXPENSES
		Purchases	929.102	852.377
		(Increase)/ Decrease in inventories of finished goods, work in progress and traded goods	(43.966)	(28.317)
		Employee benefit expenses	7.255	4.671
		Other Expenses	69.979	55.281
		TOTAL (B)	962.370	884.012	585.551
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.224	53.891	33.606
Less	FINANCIAL EXPENSES (D)		35.535	24.380	20.221
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.689	29.511	13.385
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.432	5.572	4.884
	PROFIT BEFORE TAX (E-F) (G)		3.257	23.939	8.501
Less	TAX (H)		1.724	8.591	2.739
	PROFIT AFTER TAX (G-H) (I)		1.533	15.348	5.762
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.856	9.508	3.746
	BALANCE CARRIED TO THE B/S		26.389	24.856	9.508
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	148.305	320.711	0.000
	Earnings Per Share (Rs.)		0.84	8.45	3.17

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.15	1.64	0.93
Net Profit Margin (PBT/Sales)	(%)	0.32	2.55	1.37
Return on Total Assets (PBT/Total Assets}	(%)	0.51	4.13	1.65
Return on Investment (ROI) (PBT/Networth)		0.01	0.08	0.03
Debt Equity Ratio (Total Debt/Networth)		0.82	0.67	0.73
Current Ratio (Current Asset/Current Liability)		1.57	1.81	7.14

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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	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 & 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.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10313104	08/05/2013 *	330,000,000.00	STATE BANK OF INDIA	SSI BRANCH BHOWANIPORE, 'PREMLATA', 2ND FLOOR, 39, SHAKESPEARE SARANI, KOLKATA - 700017, WEST BENGAL, INDIA	B76615095

* Date of charge modification

OPERATIONS

The total Income of the Company during the year was Rs. 1007.594 Millions as against Rs.937.903 Millions in the previous year. The Company has earned a Profit after tax of Rs. 1.533 Millions during the year as compared to Rs. 15.348 Millions during last year.

FIXED ASSETS:

· Buildings

· Other building

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· 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. 62.73
UK Pound	1	Rs. 100.92
Euro	1	Rs. 84.06

INFORMATION DETAILS

Report Prepared by :

BVA

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	3
--LIQUIDITY	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.