MIRA INFORM REPORT

Report Date :

14.10.2014

IDENTIFICATION DETAILS

Name :	KHAZANA JEWELLERY PRIVATE LIMITED
Registered Office :	252 A, TTK Road, Alwarpet, Chennai – 600018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.03.1992
Com. Reg. No.:	18-022434
Capital Investment / Paid-up Capital :	Rs. 562.531 Millions
CIN No.: [Company Identification No.]	U36999TN1992PTC022434
PAN No.: [Permanent Account No.]	AAACK2564Q
Legal Form :	Private Limited Liability Company
Line of Business :	To carry on the business of goldsmiths, silversmiths jewelers silver platers, electroplaters and to manufacture, repair, alter, gold and silver jewellery of all kinds, cutlery, presents and gifts.
No. of Employees :	Information declined by the management.

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

Maximum Credit Limit :	USD 19000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent Trade relations are 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 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.

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

Management Non-cooperative (91-44-40097700)

LOCATIONS

Registered Office :	252 A, TTK Road, Alwarpet, Chennai – 600018, Tamilnadu, India
Tel. No.:	91-44-42297700
Fax No.:	91-44-42297799
E-Mail :	corporate@khazanajewellery.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Kishore Kumar Jain

Designation :

Managing Director

Address :

62B , EVK Sampath Road, vepery, Chennai – 600007, Tamilnadu, India

Date of Birth/Age :

01.04.1964

Date of Appointment :

01.10.2014

DIN No. :

00051756

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	U36999TN1992PTC022434	Khazana Jewellery Private Limited	Managing director	01/10/2014	30/03/1992	-	Active	NO
2	U51909TN1995PTC030587	KHAZANA JEWELLERY EXPORTS PRIVATE LIMITED	Managing director	01/10/2014	21/03/1995	-	Active	NO
3	U27205TN2004PTC053379	KHAZANA JEWELLERY (INDIA) PRIVATE LIMITED	Director	01/06/2004	01/06/2004	-	Active	NO

Name :

Mr. Ramila Jain

Designation :

Director

Address :

62B , EVK Sampath Road, vepery, Chennai – 600007, Tamilnadu, India

Date of Birth/Age :

25.05.1964

Date of Appointment :

30.11.1998

DIN No. :

00051837

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	U51909TN1995PTC030587	KHAZANA JEWELLERY EXPORTS PRIVATE LIMITED	Director	30/11/1998	30/11/1998	-	Active	NO
2	U36999TN1992PTC022434	Khazana Jewellery Private Limited	Director	30/11/1998	30/11/1998	-	Active	NO
3	U27205TN2004PTC053379	KHAZANA JEWELLERY (INDIA) PRIVATE LIMITED	Director	01/06/2004	01/06/2004	-	Active	NO

Name :

Mr. Pudugramam Narayanaswamy Venkatachalam

Designation :

Director

Address :

Flat No. 3C, Settlur Manor, No.2, Sivaswamy Street, off Dr. Radhakrishan Salai, Mylapore, Chennai – 600004, Tamilnadu, India

Date of Birth/Age :

22.03.1944

Date of Appointment :

12.07.2007

DIN No. :

00499442

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	U72200TN2000PLC044182	LASER SOFT INFOSYSTEMS LIMITED	Director	19/01/2011	30/04/2006	26/04/2011	Active	NO
2	U36999TN1992PTC022434	Khazana Jewellery Private Limited	Director	12/07/2007	12/07/2007	-	Active	NO
3	L99999MH1995PLC094641	Edelweiss Financial Services Limited	Director	25/07/2014	09/08/2007	-	Active	NO
4	U65990MH2005PLC154854	ECL FINANCE LIMITED	Director	22/07/2014	20/12/2007	-	Active	NO
5	U67120AP1994PLC052372	EDELWEISS FINANCE & INVESTMENTS LIMITED	Director	09/09/2014	14/07/2008	-	Active	NO
6	U72200TN2004PTC054445	INDIGO TX SOFTWARE PRIVATE LIMITED	Director	28/04/2010	28/04/2010	07/05/2011	Active	NO
7	L65191TN1954PLC002429	SUNDARAM FINANCE LIMITED	Director	16/09/2014	28/01/2011	-	Active	NO
8	U65991MH2002GOI137867	UTI ASSET MANAGEMENT COMPANY LIMITED	Director	05/01/2012	05/01/2012	-	Active	NO
9	U65991KA2001PTC028827	UTI VENTURE FUNDS MANAGEMENT COMPANY PRIVATE LIMITED.	Nominee director	28/02/2012	28/02/2012	08/07/2013	Active	NO
10	U66020MH2007GOI176785	UTI RETIREMENT SOLUTIONS LIMITED	Director	05/09/2012	13/03/2012	-	Active	NO
11	U45201AP2006PLC078157	Edelweiss Commodities Services Limited	Director	09/09/2014	24/06/2013	-	Active	NO
12	U66010MH2009PLC197336	Edelweiss Tokio Life Insurance Company Limited	Additional director	18/07/2014	18/07/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sanka Indrani
Designation :	Companuy Secretary
Address :	83, Ward No 19, Glenview Area, Coonoor, The Nilgiris – 643101, Tamilnadu, India
Date of Birth/Age :	24.07.1987
Date of Appointment :	07.11.2011
PAN No.:	CYBPS5158L

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Kishore Kumar Jain	10149585
Khazana Jewellery Export Private Limited, India	16157300
Ramila Jain	6185
Total	26313070

Preference shares

Names of Shareholders	No. of Shares
Kishore Kumar Jain	743000
Khazana Jewellery Export Private Limited, India	2251000
Total	2994000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	61.40
Directors or relatives of Directors	38.60
Total	100.00

BUSINESS DETAILS

Line of Business :

To carry on the business of goldsmiths, silversmiths jewelers silver platers, electroplaters and to manufacture, repair, alter, gold and silver jewellery of all kinds, cutlery, presents and gifts.

Products :

Item Code No. (ITC Code)	Product Description
71131940	Jewellery

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

State Bank of India, Overseas Branch, Chennai – 600001, Tamilnadu, India

Kotak Mahindra Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Term Loan from Banks	851.239	2014.603
Working Capital	6720.000	2599.999
Total	7571.239	4614.602

Banking Relations :	--
Auditors :
Name :	NUK Associates Chartered Accountants
Address :	311, City Centre, 186, Puruswalkam High Road, Chennai – 600010, Tamilnadu, India
PAN No:	FRN006839S
Holding company:	Khazana Jewellery Exports private Limited
Associate:	Khazana Jewellery (India) private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
29170000	Equity Shares	Rs.10/- each	Rs.291.700 Millions
3794000	Preference Shares	Rs.100/- each	Rs.379.400 Millions
	Total		Rs. 671.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26313070	Equity Shares	Rs.10/- each	Rs. 263.131 Millions
2994000	Preference Shares	Rs.100/- each	Rs. 299.400 Millions
	Total		Rs. 562.531 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	562.531	562.531	562.531
(b) Reserves & Surplus	4374.872	2913.106	1311.198
(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)	4937.403	3475.637	1873.729
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	3.496	1.556	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	36.070	28.686	23.044
Total Non-current Liabilities (3)	39.566	30.242	23.044
(4) Current Liabilities
(a) Short term borrowings	7755.997	4772.748	3449.033
(b) Trade payables	19.400	43.033	19.455
(c) Other current liabilities	1970.444	1329.255	862.849
(d) Short-term provisions	8.043	108.428	89.150
Total Current Liabilities (4)	9753.884	6253.464	4420.487
TOTAL	14730.853	9759.343	6317.260
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	288.932	164.457	116.820
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	47.879	21.167	41.063
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.800	0.800	10.800
(c) Deferred tax assets (net)	0.000	0.000	5.494
(d) Long-term Loan and Advances	29.144	9.199	0.724
(e) Other Non-current assets	82.484	62.560	52.804
Total Non-Current Assets	449.239	258.183	227.705
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	13316.304	8752.079	5657.806
(c) Trade receivables	0.000	0.000	0.000
(d) Cash and cash equivalents	888.559	711.861	377.829
(e) Short-term loans and advances	76.751	37.220	53.920
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	14281.614	9501.160	6089.555
TOTAL	14730.853	9759.343	6317.260

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	35126.800	26143.100	18919.300
	Other Income	NA	NA	NA
	TOTAL (A)	NA	NA	NA
Less	EXPENSES
	TOTAL (B)	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2193.900	2414.300	1028.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)	28.800	21.400	24.400
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2165.100	2392.900	1003.900
Less	TAX (I)	703.300	791.000	346.000
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	1461.800	1601.900	657.900
	Earnings / (Loss) Per Share (Rs.)	49.88	54.66	22.45

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.16	6.13	3.48
Net Profit Margin (PBT/Sales)	(%)	6.16	9.15	5.31
Return on Total Assets (PBT/Total Assets}	(%)	14.75	24.57	16.04
Return on Investment (ROI) (PBT/Networth)		0.44	0.69	0.54
Debt Equity Ratio (Total Debt /Networth)		1.57	1.37	1.84
Current Ratio (Current Asset/Current Liability)		1.46	1.52	1.38

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	562.531	562.531	562.531
Reserves & Surplus	1311.198	2913.106	4374.872
Net worth	1873.729	3475.637	4937.403
long-term borrowings	0.000	0.000	0.000
Short term borrowings	3449.033	4772.748	7755.997
Total borrowings	3449.033	4772.748	7755.997
Debt/Equity ratio	1.841	1.373	1.571

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	18919.300	26143.100	35126.800
		38.182	34.364

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	18919.300	26143.100	35126.800
Profit	657.900	1601.900	1461.800
	3.48%	6.13%	4.16%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note:

The Registered office of the company has been shifted 7^th floor KRD Gee Gee Crystal Tower, 92, Radhakrishna Salai, Mylapore, Chennai – 600004, Tamilnadu, India to the present address w.e.f. 21.11.2007

VIEW INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90284194	04/04/2014 *	13,330,000,000.00	State Bank of India	Overseas Branch, No.86.Rajaji Salai, Chennai, Tamil Nadu - 600001, INDIA	C03608148

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from Directors	184.758	158.146
Total	184.758	158.146

FIXED ASSETS

• Land
• Buildings
• Office building
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipments

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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

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. 61.24
UK Pound	1	Rs.98.68
Euro	1	Rs. 77.06

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	TRU

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	5
--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	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		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	--

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.