MIRA INFORM REPORT

Report No. :	336738
Report Date :	13.08.2015

IDENTIFICATION DETAILS

Name :	ROSY BLUE (INDIA) PRIVATE LIMITED (w.e.f. 18.10.2002)
Formerly Known As :	EVEREST GEMS PRIVATE LIMITED
Registered Office :	1608/ 1609, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra
Tel. No.:	91-22-23633671/64286105
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.04.1998
Com. Reg. No.:	11-114312
Capital Investment / Paid-up Capital :	Rs. 659.949 Million
CIN No.: [Company Identification No.]	U36911MH1998PTC114312
IEC No.:	388015748
TAN No.: [Tax Deduction & Collection Account No.]	MUMR10677C/ MUMR13201G
PAN No.: [Permanent Account No.]	AACCR2413B
Legal Form :	Private Limited Liability Company
Line of Business :	Processing and Selling of Diamond.
No. of Employees :	1500 (Approximately)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company incorporated during the year 1998. It has a fine track record. For the financial year 2014, the company has healthy operational activity marked by impressive top line growth along with decent sales turnover, achieved a profitability margin of 1.44%. Further, the company has fine financial risk profile marked by adequate net worth position and favourable gap between trade payable and receivables. Trade relations reported as fair. Business is active. Payments terms are regular. In view of vast experience of the promoters and directors, 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limit = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	December, 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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Harshit
Designation :	Accounts Department
Contact No.:	91-22-67286105
Date :	12.08.2015

LOCATIONS

Registered Office :	1608/ 1609, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23633671/ 67286105
Fax No.:	91-22-23630248
E-Mail :	legal@rosyblue.com mumbai@rosyblue.com
Website :	http://rosyblue.in
Location:	Owned
Locality:	Commercial
Overseas Office :	Belgium Israel UAE Hong Kong Japan USA South Africa China

DIRECTORS

As on 26.09.2014

Name :	Mr. Russell Arunkumar Mehta
Designation :	Managing Director
Address :	25-B, Cliff Co-Operative Housing Society, Ridge Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	06.12.1961
Date of Appointment :	08.12.2010
DIN No.:	00049766
Name :	Mr. Arunkumar Ramniklal Mehta
Designation :	Director
Address :	25-B, Cliff Co-Operative Housing Society, Ridge Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	09.01.1940
Date of Appointment :	01.04.1998
DIN No.:	00049700
Name :	Mr. Rajiv Ramniklal Jhaveri
Designation :	Director
Address :	402, Citadel Building, L.D. Ruparel Marg, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	12.04.1956
Date of Appointment :	03.10.1998
DIN No.:	00049550
Name :	Mr. Bhanuchandra Keshavlal Bhansali
Designation :	Director
Address :	35, Geetanjali, 73/ 75, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	25.01.1933
Date of Appointment :	01.04.1998
DIN No.:	00049800
Name :	Mr. Vishal Dilip Mehta
Designation :	Director
Address :	1 Altamount, 14^th Floor, 9 Altamount Road, Opposite Mukesh Ambani Bunglow, Mumbai – 400027, Maharashtra, India
Date of Birth/Age :	02.04.1980
Date of Appointment :	20.09.2013
DIN No.:	03620492
Name :	Mrs. Manali Jayant Parekh
Designation :	Director
Address :	L, Ajanta, L.D. Ruparel Marg, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	22.07.1963s
Date of Appointment :	26.09.2014
DIN No.:	00446304

KEY EXECUTIVES

Name :	Mr. Phillip Clinton Trott
Designation :	Secretary
Address :	A-14, Purva Co-Operative Housing Society Limited, Ambika Nagar, Goraswadi, Dombivli (East), Mumbai – 421201, Maharashtra, India
Date of Birth/Age :	17.11.1974
Date of Appointment :	18.09.2009
PAN No.:	AWAPT9597H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2014

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 26.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	10.68
Directors or relatives of Directors	89.32
Total	100.00

BUSINESS DETAILS

Line of Business :	Processing and Selling of Diamond.
Products :	Diamond
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Dubai Belgium USA
Imports :
Products :	Rough Diamond
Countries :	Russia South Africa Belgium
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesaler, Retailers

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

1500 (Approximately)

Bankers :

• ING Vysya Bank Limited, Patel Chambers, Ground Floor, Sandhurst Bridge, Opera House, Mumbai – 400007, Maharashtra, India
• Oriental Bank of Commerce
• Bank Of India, Bullion Exchange Branch, Mumbai - 400002, Maharashtra, India
• State Bank Of India Diamond Branch,144 JSS Road. Majestic SHOPPING Centre,Girgaum, Mumbai - 400004, Maharashtra, india

Bank Name	Kotak Mahindra Bank
Branch	Patel Chamber (Branch), Opera House, Mumbai, 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

Facilities :

(Rs. In Million)

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Intercorporate borrowings	2.450	0.883
SHORT TERM BORROWINGS
Working capital loans from banks	10,213.244	9,222.022
Total	10,215.694	9,222.905

Auditors :
Name :	M.M. Nissim and Company Chartered Accountants
Address :	Barodawala Mansion, B-Wing, 3^rd Floor, 81, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-24949991
Fax No.:	91-22-24949995
E-Mail :	mail@mmnissim.com
Website :	www.mmnissim.com
PAN No.:	AAAFM5103E
Memberships :	--
Collaborators :	--
Sister Concern :	Inter Gold Gems Private Limited CIN No.: U36911MH1991PTC061736 Conwood Apartments And Resorts Private Limited CIN No.: U74210MH1984PTC033159 Rosy Blue Tradeserve Private Limited CIN No.: U36911MH2006PTC162649 Rosy Blue Jewellery Inc Inter Gold India Private Limited CIN No.: U99999MH1985PTC036278 Devmiti Finvestrade Private Limited CIN No.: U65990MH1995PTC094018 Krishanu Finlease Private Limited CIN No.: U65900MH1995PTC093253 Tinsel Properties Private Limited CIN No.: U45200MH1995PTC084743 International Gold Company Private Limited CIN No.: U36911MH1994PTC081352 Tai Sham Gem Limited, Hong Kong Rosy Blue Foundation CIN No.: U75220MH2010NPL208460

CAPITAL STRUCTURE

As on 26.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
46750000	Equity Shares	Rs.10/- each	Rs.467.500 Million
27500000	Preference shares	Rs.10/- each	Rs.275.000 Million
	Total		Rs.742.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40413183	Equity Shares	Rs.10/- each	Rs.404.132 Million
25750000	Preference shares	Rs.10/- each	Rs.257.500 Million
	Total		Rs.661.632 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
44000000	Equity Shares	Rs.10/- each	Rs.440.000 Million
26000000	Preference shares	Rs.10/- each	Rs.260.000 Million
	Total		Rs.700.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40244895	Equity Shares	Rs.10/- each	Rs.402.449 Million
25750000	Preference shares	Rs.10/- each	Rs.257.500 Million
	Total		Rs.659.949 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	659.949	659.948	659.948
(b) Reserves & Surplus	5,903.276	5,452.589	5,178.924
(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)	6,563.225	6,112.537	5,838.872
(3) Non-Current Liabilities
(a) long-term borrowings	792.407	750.081	772.170
(b) Deferred tax liabilities (Net)	37.163	43.778	48.642
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.743	1.762	2.087
Total Non-current Liabilities (3)	831.313	795.621	822.899
(4) Current Liabilities
(a) Short term borrowings	10,213.244	9,222.022	10,440.290
(b) Trade payables	5,081.419	3,437.157	3,628.714
(c) Other current liabilities	151.917	122.502	333.874
(d) Short-term provisions	56.722	40.505	21.302
Total Current Liabilities (4)	15,503.302	12,822.186	14,424.180
TOTAL	22,897.840	19,730.344	21,085.951
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,476.917	1,477.323	1,507.123
(ii) Intangible Assets	2.280	4.083	4.561
(iii) Capital work-in-progress	75.013	49.619	45.726
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1,482.813	1,398.389	1,173.119
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	518.393	460.471	526.992
(e) Other Non-current assets	33.603	13.129	7.667
Total Non-Current Assets	3,589.019	3,403.014	3,265.188
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	8,865.404	8,161.751	9,597.525
(c) Trade receivables	9,716.377	7,494.541	7,786.593
(d) Cash and cash equivalents	488.605	469.175	246.111
(e) Short-term loans and advances	177.631	157.955	145.059
(f) Other current assets	60.804	43.908	45.475
Total Current Assets	19,308.821	16,327.330	17,820.763
TOTAL	22,897.840	19,730.344	21,085.951

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL (A)		32,797.593	26,341.927	34,064.852
Less	EXPENSES
		TOTAL (B)		31,465.377	25,137.442	32,718.631
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1,332.216	1,204.485	1,346.221
Less	FINANCIAL EXPENSES (D)			575.569	694.757	680.389
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			756.647	509.728	665.832
Less	DEPRECIATION/ AMORTISATION (F)			75.300	76.567	74.890
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			681.347	433.161	590.942
Less	TAX (H)			208.485	137.422	226.350
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			472.862	295.739	364.592
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			3874.545	3578.806	3214.214
	BALANCE CARRIED TO THE B/S			4347.407	3874.545	3578.806
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	25814.529	19789.244	25482.422
	TOTAL EARNINGS			25814.529	19789.244	25482.422
	Earnings / (Loss) Per Share (Rs.)			7.17	0.73	0.91

Particulars	31.03.2015
Sales Turnover (Approximately)	32500.000

Expected Sales (2015-2016): Rs. 32500.000 Million

The above information has been parted by Mr. Harshit (Account Department)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	1.726	1.390	167.887
Cash generated from operations	N.A	N.A	N.A
Net cash flow from operating activity	(120.222)	2766.014	(512.043)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.44	1.12	1.07
Operating Profit Margin (PBIDT/Sales)	(%)	4.06	4.57	3.95
Return on Total Assets (PBT/Total Assets}	(%)	3.19	2.37	2.97
Return on Investment (ROI) (PBT/Networth)		0.10	0.07	0.10
Debt Equity Ratio (Total Debt /Networth)		1.68	1.63	1.95
Current Ratio (Current Asset/Current Liability)		1.25	1.27	1.24

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	659.948	659.948	659.949
Reserves & Surplus	5178.924	5452.589	5903.276
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	5838.872	6112.537	6563.225
long-term borrowings	772.170	750.081	792.407
Short term borrowings	10440.290	9222.022	10213.244
Current maturities of long-term debts	167.887	1.390	1.726
Total borrowings	11380.347	9973.493	11007.377
Debt/Equity ratio	1.949	1.632	1.677

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)
Sales	34064.852	26341.927	32797.593
		(22.671)	24.507

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	34064.852	26341.927	32797.593
Profit	364.592	295.739	472.862
	1.07%	1.12%	1.44%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOANS:

(Rs. In Million)

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
LONG TERM BORROWINGS
Intercorporate deposits	789.957	749.198
Total	789.957	749.198

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10452303	14/09/2013	300,000,000.00	ING Vysya Bank Limited	Patel Chambers,Ground Floor, Sandhurst Bridge, Opera House,, Mumbai, Maharashtra - 400007, India	B86364916
2	90155417	29/03/2012 *	11,850,000,000.00	The Royal Bank of Scotland N.V. (acting as Lead Bank)	7th Floor, Sakhar Bhavan,, Nariman Point,, Mumbai, Maharashtra - 400021, India	B37977451

*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.64.82
UK Pound	1	Rs.101.00
Euro	1	Rs.71.82

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	TRI
Report Prepared by :	RKI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	YES
--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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.