MIRA INFORM REPORT

Report No. :	319042
Report Date :	27.04.2015

IDENTIFICATION DETAILS

Name :	HARYANA JEWELLERS PRIVATE LIMITED
Registered Office :	1157/1124, 1st Floor, Kucha Mahajani, Chandni Chowk, Delhi – 110006
Tel No.:	91-11-23993777 / 41390510
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.08.2006
Com. Reg. No.:	11-151479
Capital Investment / Paid-up Capital :	Rs.26.830 Million
CIN No.: [Company Identification No.]	U27205DL2006PTC151479
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Diamond Jewellery.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 330000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The rating is constrained on account of high working capital requirements and low operating profitability. However, these weaknesses are partially offset by the extensive industry experience of the promoters. Also the company has good liquidity position backed by favorable gap between trade receivable and payables. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = B+
Rating Explanation	Risk prone credit and carries very high credit risk.
Date	29.04.2014

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 PARTED BY

Name :	Mr. Aditya Singhal
Designation :	Director
Contact No.:	91-9810535910
Date :	23.04.2015

LOCATIONS

Registered Office :	1157/1124, 1st Floor, Kucha Mahajani, Chandni Chowk, Delhi – 110006, India
Tel. No.:	91-11-23993777 / 41390510
Mobile No.:	91-9810535910 (Mr. Aditya Singhal)
Fax No.:	91-11-23910921
E-Mail :	vijenderjain@gmail.com

DIRECTORS

As on 09.09.2014

Name :

Mr. Aditya Singhal

Designation :

Managing Director

Address :

4, Sukh Vihar, Krishna Nagar, Delhi - 110051, India

Date of Birth/Age :

30.11.1981

Date of Appointment :

01.08.2006

DIN No.:

00713536

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	U27205DL2006PTC151479	HARYANA JEWELLERS PRIVATE LIMITED	Managing director	01/08/2006	01/08/2006	-	Active	NO
2	U17121DL2007PTC167101	MADHAV CLOTHING PRIVATE LIMITED	Additional director	19/03/2013	19/03/2013	-	Active	NO

Name :

Mr. Aman Gupta

Designation :

Director

Address :

47, Sukh Vihar, Krishna Nagar, Delhi - 110051, India

Date of Birth/Age :

04.04.1981

Date of Appointment :

01.02.2008

DIN No.:

01489222

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	U27205DL2006PTC151479	HARYANA JEWELLERS PRIVATE LIMITED	Director	01/02/2008	01/02/2008	-	Active	NO
2	U67120HR2008PTC038070	SHRI HARI BROKING SOLUTIONS PRIVATE LIMITED	Director	01/07/2010	01/07/2010	-	Active	NO
3	U17121DL2007PTC167101	MADHAV CLOTHING PRIVATE LIMITED	Additional director	19/03/2013	19/03/2013	-	Active	NO

Name :

Mr. Ashish Gupta

Designation :

Director

Address :

47, Sukh Vihar, Krishna Nagar, Delhi - 110051, India

Date of Birth/Age :

25.06.1978

Date of Appointment :

01.07.2014

DIN No.:

01490947

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	U51900DL1994PTC063216	JURASSIC REFINERS & JEWELS PRIVATE LIMITED	Director	02/01/2003	02/01/2003	-	Active	NO
2	U27205DL2006PTC151479	HARYANA JEWELLERS PRIVATE LIMITED	Director	01/07/2014	01/07/2014	-	Active	NO
3	U36911DL2013PTC247316	GOLDEN GLOBE GEMS PRIVATE LIMITED	Director	27/08/2014	27/08/2014	-	Active	NO
4	AAC-7864	BULLIONLINE LLP	Designated Partner	07/10/2014	07/10/2014	-	Active	NO

Name :

Mr. Ankit Singhal

Designation :

Director

Address :

H No-4 Sukh Vihar, Delhi - 110051, India

Date of Birth/Age :

02.02.1987

Date of Appointment :

01.02.2008

DIN No.:

02046686

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	U27205DL2006PTC151479	HARYANA JEWELLERS PRIVATE LIMITED	Director	01/02/2008	01/02/2008	-	Active	NO
2	U67190DL2007PTC172073	REMOTE EQUITY PRIVATE LIMITED	Additional director	19/03/2013	19/03/2013	-	Active	NO

MAJOR SHAREHOLDERS

As on 09.09.2014

Names of Shareholders	No. of Shares
Aditya Singhal	25000
Aman Gupta	38392
Amit Singhal	20100
Ankit Singhal	157377
Ashish Gupta	48403
Ashok Kumar Gupta	20200
.Ashok Kumar Gupta (Huf)	20000
Dyal Singhal	300
Hira Devi	92953
Krishna Singhal	20300
Manju Gupta	300
Monika Singhal	20100
Naresh Gupta	60556
Nikita Gupta	20000
Pradeep Gupta	200
Rajendra Kumar Singhal	70200
Renu Gupta	40300
Suresh Chand Singhal	200
Saroj Gupta	53265
Shreya Singhal	90000
Uma Gupta	50300
Vipul Goel	200
Divya Singhal	20000
Anil Kumar Jain	4
Sanjay Kumar Jain	4
Shewta Gupta	40
Anju Jain	100
Madhu Jain	100
Aksh Welfare Trust	100
Vansh Welfare Trust	100
Remote Equity Private Limited	1813954
Total	2683048

Equity Share Break up (Percentage of Total Equity)

As on 09.09.2014

Category	Percentage
Bodies corporate	32.00
Directors or relatives of Directors	68.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Diamond Jewellery.
Products :	Jewellery
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit (30 / 60 / 90 Days)
Purchasing :	Cash and Credit (30 / 60 / 90 Days)

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

• Ambika Gems
• Avi Exports
• Bhansali Diamonds
• Galore Manufacturing Co.
• Imagem Jewels
• Kamana Jewels Private Limited
• Kiah Life Style Private Limited
• Kiran Jewels ( India )
• Pankaj Gupta
• Parul Diamonds Private Limited
• Sawan Sukha Jewellers Private Limited

Customers :

• Bela Aggarwal
• Bhasin Jewellers Private Limited
• J.K. Jewels
• Kamna Jewellers
• Kathana Jewels Private Limited
• Khun Khun Jewellers
• L D Sons
• Lustre Stores Private Limited
• Amit Chain and Jewellers

No. of Employees :

100 (Approximately)

Bankers :

Banker Name	Union Bank Of India
Branch Address	Khari Baoli Branch, Khari Baoli, Delhi, Delhi - 110006, 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)	Cash Credit = Rs.26.100 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Term Loan
Banks	1.214	1.823
Total	1.214	1.823

Auditors :
Name :	V. Jain and Company Chartered Accountants
Address :	999, IInd Floor, Kucha Natwa, Chandni Chowk, Delhi – 110006, India
PAN No.:	AAIFV5426H
Memberships :	--
Collaborators :	--
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 09.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2683048	Equity Shares	Rs.10/- each	Rs.26.830 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	26.830	13.691	4.949
(b) Reserves & Surplus	88.314	44.417	15.744
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	21.000	0.000
Total Shareholders’ Funds (1) + (2)	115.144	79.108	20.693
(3) Non-Current Liabilities
(a) long-term borrowings	19.109	25.631	29.772
(b) Deferred tax liabilities (Net)	0.260	0.180	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	19.369	25.811	29.772
(4) Current Liabilities
(a) Short term borrowings	56.046	62.920	31.785
(b) Trade payables	3.306	7.062	9.030
(c) Other current liabilities	0.704	1.154	0.765
(d) Short-term provisions	0.665	0.500	0.460
Total Current Liabilities (4)	60.721	71.636	42.040
TOTAL	195.234	176.555	92.505
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.617	3.462	1.585
(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	0.650	0.600	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	3.267	4.062	1.585
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	181.998	147.723	85.374
(c) Trade receivables	6.845	11.228	2.070
(d) Cash and cash equivalents	2.370	12.609	3.085
(e) Short-term loans and advances	0.075	0.200	0.000
(f) Other current assets	0.679	0.733	0.391
Total Current Assets	191.967	172.493	90.920
TOTAL	195.234	176.555	92.505

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	490.259	392.570
		Other Income	0.000	0.018
		TOTAL (A)	490.259	392.588	334.836
Less	EXPENSES
		Cost of Materials Consumed	469.985	375.352
		Employee Benefits Expenses	1.845	1.201
		Other Expenses	5.688	4.268
		TOTAL (B)	477.518	380.821	333.717
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.741	11.767
Less	FINANCIAL EXPENSES (D)		10.095	9.559
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.646	2.208
Less	DEPRECIATION/ AMORTISATION (F)		0.878	0.829
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		1.768	1.379	1.119
Less	TAX (H)		0.732	0.727	0.452
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		1.036	0.652	0.667
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.424	7.724	7.057
Less	APPROPRIATIONS		0.000	(0.048)	0.000
	BALANCE CARRIED TO THE B/S		9.460	8.424	7.724
	Earnings / (Loss) Per Share (Rs.)		0.39	NA	NA

Expected Sales (2014-2015): Rs.600.000 Million

The above information has been parted by Mr. Aditya Singhal

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.21	0.17	NA
Operating Profit Margin (PBDIT/Sales)	(%)	2.60	3.00	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.91	0.78	1.21
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.05
Debt Equity Ratio (Total Debt /Networth)		0.65	1.12	2.97
Current Ratio (Current Asset/Current Liability)		3.16	2.41	2.16

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	4.949	13.691	26.830
Reserves & Surplus	15.744	44.417	88.314
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	21.000	0.000
Net worth	20.693	79.108	115.144
Long Term borrowings	29.772	25.631	19.109
Short Term borrowings	31.785	62.920	56.046
Total borrowings	61.557	88.551	75.155
Debt/Equity ratio	2.975	1.119	0.653

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	334.836	392.588	490.259
		17.248	24.879

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	334.836	392.588	490.259
Profit	0.667	0.652	1.036
	0.20%	0.17%	0.21%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Deposits	17.895	23.808
SHORT TERM BORROWINGS
Loans repayable on demand
Union Bank Of India-C.C. A/C	50.283	62.920
Others	5.763	0.000
Total	73.941	86.728

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10290027	17/12/2012 *	26,159,000.00	UNION BANK OF INDIA	111/112, KHARI BAOLI, DELHI, Delhi - 110006, INDIA	B68011113
2	10175503	25/06/2012 *	60,000,000.00	UNION BANK OF INDIA	KHARI BAOLI BRANCH,, KHARI BAOLI,, DELHI, Delhi -  110006, INDIA	B43106798

*Date of modification Charges

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.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.49

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SUM
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.