MIRA INFORM REPORT

Report Date :

09.10.2013

IDENTIFICATION DETAILS

Name :	JEWELEX INDIA PRIVATE LIMITED
Formerly Known As :	JEWELEX BOMBAY PRIVATE LIMITED
Registered Office :	401-Trade Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400098, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.10.2004
Com. Reg. No.:	11-148938
Capital Investment / Paid-up Capital :	Rs.500.000 Millions
CIN No.: [Company Identification No.]	U36910MH2004PTC148938
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ11921A
PAN No.: [Permanent Account No.]	AABCJ4523H
Legal Form :	Private Limited Liability Company
Line of Business :	Company is engaged in the business of Processing and Trading of Polished Diamonds.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Latest financial i.e. 2011-12 are not available with us. Form the available financials of 2011. It seems that the financial position of the company appears to be sound. The company is progressing well. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	06.09.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	06.09.2013

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 DECLINED BY

Name :	Ms. P. D’souza
Designation :	Finances Department
Contact No.:	91-22-66938505
Date :	07.10.2013

LOCATIONS

Registered Office :	401-Trade Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400098, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	diamonds@jewelexindia.com shabana@jewelexindia.com
Website :	http://www.jewelexgroup.com
Corporate Office 1 / Factory 1 :	Plot No. 56-B, First Floor, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938505/ 8510/ 28291686/ 28290699
Fax No.:	91-22-66938506/ 28290460
E-Mail :	jewelex@bom2.vsnl.net.in jewelry@jewelexindia.com
Corporate Office 2 :	HE-7010, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-43511000
Fax. No.:	91-22-43511099
Head Office / Factory 2 :	G-29, G and J Complex III, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938500 / 8501 / 8502/ 28290700/ 28291686/ 0699
Fax No.:	91-22-28290460
E-Mail :	jewelex@bom2.vsnl.net.in info@jewelexindia.com
Factory 3 :	Unit III, G – 33, G and J Complex No. III, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66938500/ 56938502
Fax No.:	91-22-28290460
E-Mail :	info@jewelexindia.com

DIRECTORS

As on 27.09.2012

Name :

Mr. Anish Piyush Kothari

Designation :

Director

Address :

102, Elcid, 13 – A, Ridge Road, Mumbai 400 006, Maharashtra, India

Date of Birth/Age :

19.11.1965

Date of Appointment :

01.10.2004

DIN No.:

00093706

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	U52393GJ1991PTC057590	JEWELEX MANUFACTURING PRIVATE LIMITED	Director	22-06-91	22-06-91	01-03-10	Active	NO
2	U45200MH1983PTC030851	KOTHARI PROPERTIES PRIVATE LIMITED	Director	01-02-99	01-02-99	-	Dissolved	NO
3	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	01-10-04	01-10-04	-	Active	NO
4	U45201MH2007PTC173573	GRANDIOSE INFRASTRUCTURE VENTURE ENTERPRISES PRIVATE LIMITED	Director	29-07-08	24-07-08	-	Active	NO
5	U74999MH2008PTC185390	GRANDIOSE FERRUM PRIVATE LIMITED	Director	29-09-09	08-09-08	-	Active	NO

Name :

Mr. Nilesh Pravin Kothari

Designation :

Director

Address :

111B, Atlas Apartments, J. Mehta Road, Walkeshwar, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

11.02.1961

Date of Appointment :

01.10.2004

DIN No.:

00093751 

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	U52393GJ1991PTC057590	JEWELEX MANUFACTURING PRIVATE LIMITED	Director	22-06-91	22-06-91	21-01-08	Active	NO
2	U45200MH1983PTC030851	KOTHARI PROPERTIES PRIVATE LIMITED	Director	01-02-99	01-02-99	-	Dissolved	NO
3	U99999MH2000PTC124713	JEWELEX INTERNATIONAL PRIVATE LIMITED	Director	07-03-00	07-03-00	01-11-09	Active	NO
4	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	01-10-04	01-10-04	-	Active	NO
5	U36911MH2000PTC129663	ZENSTAR JEWELLERY PRIVATE LIMITED	Director	17-02-05	17-02-05	25-01-08	Converted to LLP and dissolved	NO
6	AAA-4887	ZENSTAR JEWELLERY LLP	Body corporate as Designated Partner	19-05-11	19-05-11	01-03-12	Active	NO

Name :

Mr. Ashish Piyush Kothari

Designation :

Director

Address :

705, Mangal Kunj – B, 2 Mount Pleasant Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

21.05.1973

Date of Appointment :

10.05.2005

DIN No.:

00093839 

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
1	U36910MH2004PTC148938	JEWELEX INDIA PRIVATE LIMITED PART IX	Director	10-05-05	10-05-05	-	Active
2	U36911MH2008PTC180990	OPULENCE CREATIONS PRIVATE LIMITED	Director	09-04-08	09-04-08	01-07-10	Active

KEY EXECUTIVES

Name :	Mrs. Deepti Maheshwari
Designation :	Secretary
Address :	Sanchay, G39, Mig Colony, RS Nagar, Indore – 452011, Madhya Pradesh, India
Date of Appointment :	01.08.2011
PAN No.:	ALHPM0246Q
Name :	Ms. P. D’souza
Designation :	Finances Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Names of Shareholders	No. of Shares
Pravin S. Kothari	862500
Saryu P Kothari	7250000
Nilesh P Kothari	5187500
Nisha N Kothari	2425000
Manti N. Kothari	250000
Mihika N. Kothari	250000
Piyush S. Kothari	1850000
Chandra P. Kothari	6265000
Anish P. Kothari	5690000
Gopika A. Kothari	2425000
Shantaben S. Kothari	16230000
DJ Finance Limited, Mauritius	51315000
Total	100000000

As on 27.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	51.00
Directors or relatives of Directors	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Company is engaged in the business of Processing and Trading of Polished Diamonds.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Corporation Bank, Overseas Branch, Earnest House, Nariman Point, Mumbai 400 021, Maharashtra, India

• ABN Amro Bank N V Brady House, 14, Veer Nariman Road, Mumbai 400 023, Maharashtra, India

• Union Bank of India Overseas Branch, Union Bhavan, Ground Floor, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai 400 021, Maharashtra, India

• Bank of Baroda International Business Branch, General Bhonsale Marg, Nariman Point, Mumbai 400 021, Maharashtra, India

• United Western Bank Limited Overseas Branch, Mittal Court, C Wing, 16th Floor, Naniman Point, Mumbai 400 021, Maharashtra, India

• Axis Bank

• The Royal Bank of Scotland N.V. (acting as lead bank), 4, North Avenue, Level 3, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loans Banks Secured	2621.206	1449.362
Total	2621.206	1449.362

NOTE:

Working capital facilities including in foreign currency Rs.2621.200 Millions (Previous year Rs.1412.100 Millions) Working Capital facilities are secured by hypothecation of all Current Assets including stocks and book debts, equitable mortgage by deposit of title deeds of immovable properties expect land and premises situates at Dahisar and Trade Centre, and guaranteed by all directors.

Banking Relations :	--
Auditors :
Name :	M. M. Nissim and Company Chartered Accountants,
Address:	Barodawala Mansion, B – Wing, 3^rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24949991
Fax No.:	91-22-24949995
Pan No.:	AAAFM5103E
Email :	mail@mmnissim.com
Website :	http://www.mmnissim.com
Subsidiaries :	Jewelex International Private Limited CIN No.:U99999MH2000PTC124713 Opulence Creations Private Limited CIN No.: U36911MH2008PTC180990
Associates :	Jewelex Manufacturing Private Limited CIN No.: U52393GJ1991PTC057590 Sparkling Gems and Company Zenstar Jewellery LLP (Converted from Zenstar Jewellery Private Limited with effect from 16^th November, 2010)

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
105000000	Equity Shares	Rs.10/- each	Rs.1050.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
105000000	Equity Shares	Rs.10/- each	Rs.1050.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		500.000	500.000	500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2776.135	2210.654	1766.161
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3276.135	2710.654	2266.161
LOAN FUNDS
1] Secured Loans		2621.206	1449.362	2569.794
2] Unsecured Loans		848.880	1015.300	759.900
TOTAL BORROWING		3470.086	2464.662	3329.694
DEFERRED TAX LIABILITIES		0.000	6.210	13.388
TOTAL		6746.221	5181.526	5609.243
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		714.348	664.290	710.283
Capital work-in-progress		8.142	88.762	80.220
INVESTMENT		79.426	19.434	19.433
DEFERREX TAX ASSETS		9.396	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3299.687	2881.922	2920.367
	Sundry Debtors	3462.216	2288.889	1687.599
	Cash & Bank Balances	205.964	167.059	191.602
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	753.382	624.118	768.937
Total Current Assets		7721.249	5961.988	5568.505
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1706.976	1510.908	753.972
	Other Current Liabilities	0.000	0.000	0.061
	Provisions	79.364	42.040	15.165
Total Current Liabilities		1786.340	1552.948	769.198
Net Current Assets		5934.909	4409.040	4799.307
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6746.221	5181.526	5609.243

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales		9561.196	6666.328
		Income from Renewable Energy		14.706	22.607
		Re-Make Charges	12582.030	0.574	1.659
		Exchange Rate Differences (Net)		176.721	(575.362)
		Other Income		19.992	19.828
		TOTAL (A)	12582.030	9773.189	6135.060
Less	EXPENSES
		Raw Materials Consumed		4639.279	3709.435
		Purchase of Polished Diamonds		3053.613	1662.255
		Manufacturing and Other Expenses		692.095	828.753
		Increase in Stock		728.577	(436.371)
		TOTAL (B)	11805.000	9113.564	5764.072
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses and Depreciation)	659.625	370.988
Less	FINANCIAL EXPENSES (D)			113.537	231.369
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			546.088	139.619
Less/ Add	DEPRECIATION/ AMORTISATION (F)			76.514	67.968
	PROFIT BEFORE TAX (E-F) (G)		777.030	469.574	71.651
Less	TAX (H)		154.606	(4.638)	(10.086)
	PROFIT AFTER TAX (G-H) (I)		622.424	472.212	81.737
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1357.154	924.661	849.923
Less	APPROPRIATIONS
		Transfer to General Reserve	20.000	12.000	7.000
		Dividend	6.943	2.719	0.000
		Tax on Dividend	50.000	25.000	0.000
	BALANCE CARRIED TO THE B/S		1902.635	1357.154	924.661
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	8364.104	6234.379	NA
	TOTAL EARNINGS		8364.104	6234.379	NA
	IMPORTS
		Goods	6736.248	3803.826	NA
	TOTAL IMPORTS		6736.248	3803.826	NA
	Earnings Per Share (Rs.)		12.45	9.44	1.63

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.95	4.83	1.33
Net Profit Margin (PBT/Sales)	(%)	NA	4.91	1.17
Return on Total Assets (PBT/Total Assets}	(%)	9.21	7.09	1.14
Return on Investment (ROI) (PBT/Networth)		0.24	0.17	3.16
Debt Equity Ratio (Total Debt /Networth)		1006	0.91	1.47
Current Ratio (Current Asset/Current Liability)		4.32	3.84	7.24

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	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	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	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 124/C, Mittal Court, Nariman point, Mumbai - 400021, Maharashtra India to 401-Trade Centre, Bandra Kurla Complex, Mumbai – 400051, Maharashtra India w.e.f. 07.05.2012

The registered office of the company has been against shifted from 401-Trade Centre, Bandra Kurla Complex, Mumbai – 400051, Maharashtra India to present address w.e.f. 22.08.2012

CONTINGENT LIABILITIES: (AS ON 31.03.2011)

· The company has been allotted 6,000,000 equity shares of Rs.10 each of Diamond India Limited at a premium of Rs.90 each. The company has paid four calls of Rs.10 each, Rs.4 towards share capital and Rs.36 towards share premium. Unpaid calls as at 31^st March 2011 is Rs.60/- per share aggregating to Rs.36.000 Millions (Previous Year Rs.42.000 Millions)

· Estimated value of contracts in capital account not provided for (Net of advance) Rs.116.987 Millions (Previous year Rs. Nil)

· Bank Guarantees issued to the Air Intelligence Unit, customs Department – Rs.3.869 Millions (Previous year Nil)

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2011	As on 31.03.2010
Loans Directors Unsecured	233.500	405.000
Other Debt Unsecured	615.380	610.300
Total	848.880	1015.300

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90353333	17/08/2012 *	5,850,000,000.00	THE ROYAL BANK OF SCOTLAND N.V. (ACTING AS LEAD BANK)	4, NORTH AVENUE, LEVEL 3, MAKER MAXITY, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA	B56418536

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Electrical Fittings
• Furniture and Fixtures
• Office Equipments
• 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 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.61.69
UK Pound	1	Rs.99.20
Euro	1	Rs.83.69

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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		54

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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