MIRA INFORM REPORT

Report No. :	356037
Report Date :	28.12.2015

IDENTIFICATION DETAILS

Name :	SURAT ROUGH DIAMOND SOURCING INDIA LIMITED
Registered Office :	C/401-403, Diamond World, Kohinoor Road, Mini Bazar, Varachha Road, Surat – 395006, Gujarat
Tel. No.:	91-261-3258292
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.11.2010
Com. Reg. No.:	04-062808
Capital Investment / Paid-up Capital :	Rs. 799.200 Million
CIN No.: [Company Identification No.]	U36912GJ2010PLC062808
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	SRTS10727D
PAN No.: [Permanent Account No.]	AAOCS9292D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of Diamonds, Ruby, Topaz, Emerald, Pearl, Precious or Semiprecious and Natural Stones. (Confirmed by management)
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2010 and it is a trader of diamonds. Subject is an established company having satisfactory track record. For the financial year ended 2014, company possesses above average operational performance and it has maintained fair profitability margins during a year under a review. Rating also takes into account of company’s average financial risk profile marked by low reserves and leverage capital structure of the company. Rating strength partially offset by risk arising out of high competitive nature of diamond industry and volatility of company revenue to forex price fluctuation. Trade relations are reported as fair. Payment terms are reported to be slow but correct. In view of aforesaid, the company can be considered for business dealings at usual trade terms and conditions. Note: Management of the company has not filed its financial with government department for the year 2015 and same are not available from any sources.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

NOT AVAILABLE

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Kiran Jain
Designation :	Company Secretary
Contact No.:	91-9825118222
Date :	23.12.2015

LOCATIONS

Registered Office :	C/401-403, Diamond World, Kohinoor Road, Mini Bazar, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-3258292
Mobile No.:	91-9825118222 (Mr. Kishor Virani)
Fax No.:	Not Available
E-Mail :	admin@srdsil.com
Website :	www.srdsil.com

DIRECTORS

AS ON 31.03.2015

Name :

Mr. Ashit Vasantlal Mehta

Designation :

Managing Director

Address :

Della Faillelaan 19, Antwerpen, 2020, Belgium

Date of Appointment :

02.04.2011

DIN No.:

01785632

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	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	30/09/2008	21/11/2007	-	Active	NO
2	U45201GJ2004PTC044084	AKSHAR INFRASTRUCTURE PRIVATE LIMITED	Director	31/12/2007	31/12/2007	-	Active	NO
3	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING (INDIA) LIMITED	Managing director	02/04/2011	03/11/2010	-	Active	NO
4	U36941GJ2014PTC080519	NIRALI CREATIONS PRIVATE LIMITED	Director	19/08/2014	19/08/2014	-	Active	NO
5	U36911GJ2014PTC080909	SASHME DIAMONDS PRIVATE LIMITED	Director	25/09/2014	25/09/2014	-	Active	NO
6	U70101GJ2014PTC080929	SASHME REALITIES PRIVATE LIMITED	Director	26/09/2014	26/09/2014	-	Active	NO
7	U74140GJ2014NPL081370	SDB DIAMOND BOURSE	Director	28/11/2014	28/11/2014	-	Active	NO
8	AAA-4607	VEDARYA TOWNSHIP LLP	Body corporate as Designated Partner	20/11/2014	20/11/2014	-	Active	NO

Name :

Mr. Arnav Akshay Mehta

Designation :

Director

Address :

10, Kamal Mahal, 17 M.L. Dahanukar Marg., 5^th Floor, Car Micheal Road, Mumbai-400026, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

00142488

Name :

Mr. Arpan Ashit Mehta

Designation :

Director

Address :

Della Faillelaan 19, 2020 Antwerpen, Antwerpen-000000, Belgium

Date of Appointment :

26.09.2013

DIN No.:

02830860

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	U36996MH2007PTC169725	ARJAV DIAMONDS (INDIA) PRIVATE LIMITED	Director	30/09/2010	23/11/2009	-	Active	NO
2	U65993MH2006PTC165505	Blue Star Investments And Financial Service Private Limited	Director	30/09/2010	15/12/2009	-	Active	NO
3	U36912GJ2010PTC062006	ADMG DIAMOND PRIVATE LIMITED	Director	05/11/2015	15/12/2010	-	Active	NO
4	U36912GJ2010PLC062808	SURAT ROUGH DIAMOND SOURCING (INDIA) LIMITED.	Director	26/09/2013	26/09/2013	-	Active	NO

Name :

Mr. Saurabhkumar Jitendrabhai Shah

Designation :

Director

Address :

404, Anmol Complex, Near Sargam Shopping Centre, Parle Point, Surat-395007, Gujarat, India

Date of Appointment :

31.03.2015

DIN No.:

03143851

Name :

Mr. Nimish Ramniklal Mehta

Designation :

Director

Address :

2-B, Ridge Apartment, 2^nd Floor, 18 Ridge Road, Malbar Hill, Mumbai-400006, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

01192536

KEY EXECUTIVES

Name :	Mr. Paresh Naresh Shukla
Designation :	Chief Financial Officer
Address :	Prabhakar Vaity Chawl, Room No. 06, Behind Pranay Nagar, Vajira Naka, Borivali (West), Mumbai, 400091, Maharashtra, India
Date of Appointment :	31.03.2015
PAN No.:	AGPPS6753H
Name :	Kiran Prakash Jain
Designation :	Company Secretary
PAN No.:	AGFPJ9741G
Name :	Isha Ramesh Dada
Designation :	Secretary
Address :	D/7, Divya Vasundhara Flats, Lambe Hanuman Road, Surat-395006, Gujarat, India
Date of Appointment :	29.07.2015
PAN No.:	AMZPD7873M

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Arjav Diamonds (India) Private limited, India	41
K. Girdharlal International Limited, India	1
K P Sanghvi and Sons	1
Akshar Impex Private Limited, India	1
Adesh International Prime Limited, India	10
V D Gems DMCC, United Arab Emirates	10
ADMG Diamond Private Limited, India	30
Blue Star Diamonds Private Limited, India	7
Aurostar Jewellery (India) Private Limited, India	30
Total	131

Names of Preference Shareholders	No. of Shares
ADMG Diamond Private Limited, India	2
Arjav Diamonds (India) Private limited, India	4
Aurostar Jewellery (India) Private Limited, India	2
Blue Star Diamonds Private Limited, India	8
Amrut Exports, India	1
Total	17

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Diamonds, Ruby, Topaz, Emerald, Pearl, Precious or Semiprecious and Natural Stones. (Confirmed by management)
Products :	Diamonds Ruby Topaz Emerald Pearl Precious Semiprecious Natural Stones
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit (30/60/90 Days)
Purchasing :	Cash and Credit (30/60/90 Days)

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 :

End Users and OEM’s

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 :

100 (Approximately)

Bankers :

Banker Name	HDFC Bank Limited
Branch Address	Citi Light Branch, Surat, Gujarat, 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

Auditors :
Name :	NDJ and Company Chartered Accountants
Address :	T-720, Belgium Tower, Opposite Linear Bus Stand, Ring Road, Surat-395002, Gujarat, India
PAN No.:	AAKFN1060F
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Company (As on 31.03.2014) :	Srdsil FZE, United Arab Emirates
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives (As on 31.03.2014) :	Auro Diamonds BVBA, Belgium Arjav Diamonds NV, Belgium Mahima Gems, India Arjav Diamonds (India) Private Limited, India Arjav Manufacturing N.V., Belgium Arjav Associates N.V., Belgium Amdiam N.V., Belgium

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
150	Equity Shares	Rs. 5400000/- each	Rs. 810.000 Million
50	Preference Shares	Rs. 5400000/- each	Rs. 270.000 Million
			Rs. 1080.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
131	Equity Shares	Rs. 5400000/- each	Rs. 707.400 Million
17	Preference Shares	Rs. 5400000/- each	Rs. 91.800 Million
			Rs. 799.200 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	799.200	799.200	745.200
(b) Reserves & Surplus	129.714	107.559	55.343
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	60.444
Total Shareholders’ Funds (1) + (2)	928.914	906.759	860.987
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	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)	0.000	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	410.923	0.000	0.000
(c) Other current liabilities	0.501	0.652	1.435
(d) Short-term provisions	0.000	0.000	1.688
Total Current Liabilities (4)	411.424	0.652	3.123
TOTAL	1340.338	907.411	864.110
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	21.513	24.041	7.434
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	6.666
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	22.925	22.925	22.925
(c) Deferred tax assets (net)	0.579	1.307	2.111
(d) Long-term Loan and Advances	0.025	0.025	0.025
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	45.042	48.298	39.161
(2) Current assets
(a) Current investments	0.000	580.121	738.037
(b) Inventories	1.754	140.376	33.985
(c) Trade receivables	1230.985	11.643	0.000
(d) Cash and cash equivalents	59.808	65.441	50.875
(e) Short-term loans and advances	1.443	61.366	0.774
(f) Other current assets	1.306	0.166	1.278
Total Current Assets	1295.296	859.113	824.949
TOTAL	1340.338	907.411	864.110

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from Operations	1461.791	33.125	1103.999
	Other Income	17.695	52.660	84.768
	TOTAL	1479.486	85.785	1188.767
Less:	EXPENSES
	Purchases of Stock-in-Trade	1305.996	135.071	1122.733
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	138.622	(106.391)	(33.985)
	Employees benefits expense	0.229	0.347	0.131
	Other expenses	6.060	8.266	17.610
	TOTAL	1450.907	37.293	1106.489
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	28.579	48.492	82.278
Less:	FINANCIAL EXPENSES	0.306	0.485	1.461
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	28.273	48.007	80.817
Less:	DEPRECIATION/ AMORTISATION	2.528	1.430	0.386
	PROFIT/ (LOSS) BEFORE TAX	25.745	46.577	80.431
Less:	TAX	3.590	0.804	24.719
	PROFIT/ (LOSS) AFTER TAX	22.155	45.773	55.712
	EARNINGS IN FOREIGN CURRENCY	1347.661	11.620	NA
	Earnings / (Loss) Per Share (Rs.)
	Basic	169119.00	351232.00	460431.00
	Diluted	149693.00	309274.00	362170.00

Particulars	31.03.2015
Sales Turnover (Approximately)	2000.000 (Increase in Business activity)

The above information has been parted by Mr. Kiran Jain (Company Secretary).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net Cash Flow from (used in) Operations	(604.109)	(184.010)	50.151

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.52	138.18	5.05
Operating Profit Margin (PBIDT/Sales)	(%)	1.96	146.39	7.45
Return on Total Assets (PBT/Total Assets}	(%)	1.96	5.27	9.66
Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.09
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.15	1317.66	264.15

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	745.200	799.200	799.200
Reserves & Surplus	55.343	107.559	129.714
Share Application money pending allotment	60.444	0.000	0.000
Net worth	860.987	906.759	928.914
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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)
Revenue from Operations	1103.999	33.125	1461.791
		(97.000)	4312.954

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from Operations	1103.999	33.125	1461.791
Profit	55.712	45.773	22.155
	5.05%	138.18%	1.52%

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	No
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)	No
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	No
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	Yes
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
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

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.

NOTE: Registered office of the company has been shifted from 6/456, “Life Skills”, Kharadi Sheri, Near Gopal Khaman House, Mancharpura, Surat-395003, Gujarat, India to the present address w. e. f. 18.10.2012

CORPORATE INFORMATION (As on 31.03.2014)

Subject was incorporated in India on November 3, 2010. The Company is primarily engaged in sourcing of diamonds from authorized and approved mining companies or direct source of a mining group company and other cost efficient sources and distribute the same, in the most efficient manner such as tenders, to any legal and registered diamond company, situated anywhere in the world, in a profitable way.

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

• Office building
• Other plant and equipment
• Furniture and fixtures
• Other equipment

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.66.20
UK Pound	1	Rs.98.29
Euro	1	Rs.72.41

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAR
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		41

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.