MIRA INFORM REPORT

Report Date :

28.11.2014

IDENTIFICATION DETAILS

Name :	DIAM STAR JEWELLERY (INDIA) PRIVATE LIMITED
Registered Office :	Unit G 8 and G 9, Gems and Jewellery Complex II, Seepz Sez, Andheri (East), Mumbai – 400096, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.03.2002
Com. Reg. No.:	11-135049
Capital Investment / Paid-up Capital :	Rs.19.500 Millions
CIN No.: [Company Identification No.]	U36910MH2002PTC135049
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMD07443C
PAN No.: [Permanent Account No.]	AABCD4778N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Importer of Plain, Studded Gold, Silver, Platinum and Diamond Jewellery etc.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term rating=BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 11, 2014

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Anay
Designation :	Senior Manager Finance
Contact No.:	91-22-66947000
Date :	24.11.2014

LOCATIONS

Registered Office :	Unit G 8 and G 9, Gems and Jewellery Complex II, Seepz Sez, Andheri (East), Mumbai – 400096, Maharashtra, India
Tel. No.:	91-22-66947000
Fax No.:	91-22-28244212
E-Mail :	legal@goldstarjewellery.com gs@goldstarjewellery.com finance@goldstarjewellery.com
Website :	www.goldstarjewellery.com

DIRECTORS

As on 22.09.2014

Name :

Alkesh Satish Shah

Designation :

Director

Address :

4, Aryavarta N D Road, Nepean Sea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

06.02.1970

Date of Appointment :

30.07.2010

DIN No.:

00004149

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	U51398MH1991PTC063336	ROYAL STAR JEWELLERY PRIVATE LIMITED	Director	01/04/2000	01/04/2000	-	Active	NO
2	U51398MH2001PTC132396	GOLD STAR ORNAMENTS PRIVATE LIMITED	Director	19/06/2001	19/06/2001	-	Active	NO
3	U39611MH1990PTC056881	GOLD STAR JEWELLERY Private Limited	Director	29/09/2003	29/09/2003	-	Active	NO
4	U36910MH2004PTC146325	GOLD STAR JEWELLERY DESIGNS PRIVATE LIMITED	Director	09/09/2010	14/05/2004	-	Active	NO
5	U36910MH2004PTC147775	Directi Web Services Private Limited	Director	29/07/2004	29/07/2004	16/12/2009	Active	NO
6	U36911MH2005PTC153513	IVY JEWELLERY PRIVATE LIMITED	Director	26/05/2005	26/05/2005	15/11/2010	Active	NO
7	U36911MH2002PLC138275	DIAMOND INDIA LIMITED	Director	09/09/2006	09/09/2006	27/09/2008	Active	NO
8	U27205MH2006PTC165319	Jouel Sculpt Private Limited	Director	15/09/2008	01/11/2006	15/04/2009	Active	NO
9	U27205MH2006PTC165391	DIA VENTE JEWELLERY PVT. LTD.	Director	15/09/2008	07/11/2006	-	Active	NO
10	U72900MH2005PTC156594	Mindtech Solutions Private Limited	Director	29/09/2007	31/03/2007	01/05/2010	Active	NO
11	U36912MH1989GAP053844	SEEPZ GEMS AND JEWELLERY MANUFACTURERS ASSOCIATION	Director	23/11/2007	23/11/2007	24/09/2010	Active	NO
12	U45300MH2008PTC177709	Gold Star Builders and Developers Private Limited	Director	10/01/2008	10/01/2008	-	Active	NO
13	U27205MH2008PTC181759	Gold Star Centoquattro Jewellery Private Limited	Director	30/04/2008	30/04/2008	06/07/2009	Active	NO
14	U45208MH2008PTC184852	Eternity Habitat Private Limited	Director	21/07/2008	21/07/2008	-	Active	NO
15	U65910MH1995PTC087739	GOLD STAR CORPORATE SOLUTIONS PRIVATE LIMITED	Director	26/02/2009	26/02/2009	01/05/2010	Active	NO
16	U51398MH2008PTC185197	B S Designs Private Limited	Director	03/07/2009	03/07/2009	-	Strike off	NO
17	U45400MH2008PTC186135	DIVYA HABITAT PRIVATE LIMITED	Director	01/05/2010	01/05/2010	-	Active	NO
18	U45200MH2004PTC145604	ETERNITY CONSTRUCTION PRIVATE LIMITED	Director	01/07/2010	01/07/2010	-	Active	NO
19	U67120MH1995PTC092296	DRAVYA FINANCE PRIVATE LIMITED	Director	07/07/2010	07/07/2010	-	Active	NO
20	U36910MH2002PTC135049	DIAM STAR JEWELLERY (INDIA) PRIVATE LIMITED	Director	30/07/2010	30/07/2010	-	Active	NO
21	U36912GJ2010PTC062363	GOLD STAR JEWELS PRIVATE LIMITED	Director	20/09/2010	20/09/2010	-	Active	NO
22	AAA-2642	GOLD STAR FINE JEWELLERY LLP	Designated Partner	28/10/2010	28/10/2010	-	Active	NO

Name :

Ashish Vinod Shah

Designation :

Director

Address :

19/2, Suvarna Nagar Soc., Soni House, NSRD No.2, JVPD Scheme, Vile Parle (W) Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

01.05.1970

Date of Appointment :

01.06.2008

DIN No.:

00007729

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	U51398MH1991PTC063336	ROYAL STAR JEWELLERY PRIVATE LIMITED	Managing director	31/03/2005	31/03/2005	15/03/2010	Active	NO
2	U39611MH1990PTC056881	GOLD STAR JEWELLERY Private Limited	Managing director	01/05/2009	01/04/2005	-	Active	NO
3	U36910MH2004PTC146325	GOLD STAR JEWELLERY DESIGNS PRIVATE LIMITED	Whole-time director	30/09/2005	30/09/2005	-	Active	NO
4	U65910MH1995PTC087739	GOLD STAR CORPORATE SOLUTIONS PRIVATE LIMITED	Director	29/09/2007	31/03/2007	-	Active	NO
5	U36910MH2002PTC135049	DIAM STAR JEWELLERY (INDIA) PRIVATE LIMITED	Director	01/06/2008	01/06/2008	-	Active	NO
6	U51398MH2008PTC185197	B S Designs Private Limited	Director	29/07/2008	29/07/2008	-	Strike off	NO
7	U27205MH2008PTC181759	Gold Star Centoquattro Jewellery Private Limited	Director	06/07/2009	06/07/2009	-	Active	NO
8	U72900MH2005PTC156594	Mindtech Solutions Private Limited	Director	01/05/2010	01/05/2010	-	Active	NO

MAJOR SHAREHOLDERS

As on 22.09.2014

Names of Shareholders	No. of Shares
Alkesh Satish Shah	73280
Satish Ratilal Shah	10200
Shweta Sanjay Shah	710890
Hansaben Satish Shah	421800
Smita Alkesh Shah	633800
Ankur Satish Shah	100000
Sidd Alkesh Shah	10
Aayush Alkesh Shah	10
Sayam Sanjay Shah	10
Total	1950000

As on 22.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Plain, Studded Gold, Silver, Platinum and Diamond Jewellery etc.

Products :

Item Code No. (ITC Code)	Product Description
71131930	Manufacturer of Jewellery and importer

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Banker Name	State Bank of India
Branch Address	SEEPZ, Andheri (East), Mumbai – 400096, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	Bank of India
Branch Address	SEEPZ Mid Corporate Branch, Behind Seepz Service Centre, Marol Industrial Area, Seepz, Andheri (East), Mumbai – 400096, Mahrashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Term Loans	338.244	370.031
Total	338.244	370.031

Auditors :
Name :	B J Shah and Associates Chartered Accountants
Address :	203 / A /1, Modern Apartment, Garden Lane, Ghatkopar (West), Mumbai – 400086, Maharashtra, India
PAN No.:	AAHPS5959D
Memberships :	---
Collaborators :	---
Associates :	Gold Star Jewellery Private Limited, India Gold Star Corporate Solutions Private Limited, India Mindtech Solotion Pv Limited, India Gold Star Jewellery Designs Private Limited, India Gold Star Centoquattro Jewellery Private Limited, India Gold Star Diamond Private Limited, India Jouel Sculpt Private Limited, India Gold Star Independence Llc, United States Gold Star Jewellery Llc, United States

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/-each	Rs.20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1950000	Equity Shares	Rs.10/-each	Rs.19.500 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	19.500	19.500	19.500
(b) Reserves & Surplus	828.540	756.701	717.125
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	848.040	776.201	736.625
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.110	0.219	0.307
(c) Other long term liabilities	4.004	10.963	14.613
(d) long-term provisions	0.148	0.144	0.377
Total Non-current Liabilities (3)	4.262	11.326	15.297
(4) Current Liabilities
(a) Short term borrowings	358.964	373.772	352.984
(b) Trade payables	454.297	171.678	300.087
(c) Other current liabilities	6.009	1.485	1.968
(d) Short-term provisions	11.811	1.214	6.936
Total Current Liabilities (4)	831.081	548.150	661.975
TOTAL	1683.383	1335.676	1413.897
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	28.594	33.205	34.647
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	87.515	87.515	87.515
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.654	10.011	2.677
(e) Other Non-current assets	2.620	4.010	5.881
Total Non-Current Assets	128.383	134.741	130.720
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	333.495	285.375	259.802
(c) Trade receivables	1128.775	471.345	931.250
(d) Cash and cash equivalents	56.994	124.121	71.641
(e) Short-term loans and advances	34.267	315.444	18.710
(f) Other current assets	1.469	4.650	1.774
Total Current Assets	1555.000	1200.936	1283.177
TOTAL	1683.383	1335.676	1413.897

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME	2182.376	1786.242	1386.901
Less	EXPENSES	2070.646	1726.766	1329.098
	PROFIT/ (LOSS) BEFORE TAX	111.730	59.476	57.803
Less	TAX	39.890	19.900	18.792
	PROFIT/ (LOSS) AFTER TAX	71.840	39.576	39.011
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	3518.343	3655.510	1209.981
	Others	9.171	0.000	0.000
	TOTAL EARNINGS	3527.514	3655.510	1209.981
	IMPORTS
	Raw Materials	1508.481	1408.045	370.896
	Components and Stores parts	16.426	17.803	0.057
	Capital Goods	2.950	7.141	0.660
	TOTAL IMPORTS	1527.857	1432.989	371.613
	Earnings / (Loss) Per Share (Rs.)	36.84	20.30	20.01

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	3.29	2.22	2.81
Return on Total Assets (PBT/Total Assets)	(%)	7.00	4.77	4.36
Return on Investment (ROI) (PBT/Networth)		0.13	0.08	0.08
Debt Equity Ratio (Total Liability/Networth)		0.42	0.48	0.48
Current Ratio (Current Asset/Current Liability)		1.87	2.19	1.94

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	19.500	19.500	19.500
Reserves & Surplus	717.125	756.701	828.540
Net worth	736.625	776.201	848.040
long-term borrowings	0.000	0.000	0.000
Short term borrowings	352.984	373.773	358.964
Total borrowings	352.984	373.773	358.964
Debt/Equity ratio	0.479	0.482	0.423

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1386.901	1786.242	2182.376
		28.794	22.177

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1386.901	1786.242	2182.376
Profit	39.011	39.576	71.840
	2.81%	2.22%	3.29%

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	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

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10061439	29/10/2012 *	538,900,000.00	State Bank of India	SEEPZ, ANDHERI (EAST), Mumbai, Maharashtra - 400096, INDIA	B61644811

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties	20.720	3.741
Total	20.720	3.741

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.

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 records 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.61.91
UK Pound	1	Rs.97.12
Euro	1	Rs.76.92

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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		47

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.