MIRA INFORM REPORT

Report No. :	305221
Report Date :	02.02.2015

IDENTIFICATION DETAILS

Name :	PERRY IMPEX LIMITED (w.e.f. 03.11.2014)
Formerly Known As :	PERRY IMPEX PRIVATE LIMITED
Registered Office :	1001-1019-1020, 10^th Floor, Prasad Chembers, Opera House, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.07.2010
Com. Reg. No.:	11-205838
Capital Investment / Paid-up Capital :	Rs. 85.000 Millions
CIN No.: [Company Identification No.]	U36911MH2010PLC205838
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMP29306E
PAN No.: [Permanent Account No.]	AAFCP5705P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Processor of Rough Diamond to Polish Diamond.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating is constrained on account of highly fragmented and unorganized diamond industry and increase in external borrowing over previous year. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	ICRA
Rating	Term loans=BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	February, 2014

Rating Agency Name	ICRA
Rating	Short term, fund based facilities=A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February, 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.

LOCATIONS

Registered Office :	1001-1019-1020, 10^th Floor, Prasad Chembers, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-40931111
Fax No.:	91-22-40931199
E-Mail :	info@perryimpex.com
Website :	www.perryimpex.com
Area :	1000 sq. ft.
Location :	Rented
Corporate Office :	404, 4th Floor, ‘B’ Wing, The Capital, Near Bharat Diamond Bourse, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-40931111
Branches :	Located at : India Antwerp USA Surat

DIRECTORS

AS ON 27.09.2014

Name :

Rasik Kumar P. Mangukiya

Designation :

Managing Director

Address :

A-38, Saifee Society, L. H. Road, Surat – 395006, Gujart, India

Date of Birth/Age :

22.05.1978

Date of Appointment :

05.04.2010

DIN No.:

02226186

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	U15122MH2008PTC184230	TANGENT EXIM (INDIA) PRIVATE LIMITED	Director	02/07/2008	02/07/2008	01/04/2011	Active	NO
2	U15510MH2008PTC184476	GRACE NUTRIENTS (INDIA) PRIVATE LIMITED	Director	10/07/2008	10/07/2008	06/01/2011	Active	NO
3	U14200MH2008PTC184491	GREAT MINERALS (INDIA) PRIVATE LIMITED	Director	10/07/2008	10/07/2008	02/04/2011	Active	NO
4	U36911MH2010PLC205838	PERRY IMPEX Limited	Managing director	05/09/2014	22/07/2010	-	Active	NO
5	U36996GJ2013PTC074862	PERRY CREATION PRIVATE LIMITED	Director	03/05/2013	03/05/2013	-	Active	NO
6	U17291MH2013PTC249124	Perrian Lifestyle Private Limited	Director	11/10/2013	11/10/2013	-	Active	NO

Name :

Rameshbhai P. Mangukiya

Designation :

Whole Time Director

Address :

A-38, Saifee Society, L. H. Road, Surat – 395006, Gujart, India

Date of Birth/Age :

25.04.1975

Date of Appointment :

05.09.2010

DIN No.:

02964700

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	U36911MH2010PLC205838	PERRY IMPEX Limited	Whole-time director	05/09/2014	22/07/2010	-	Active	NO
2	U74900PN2012PTC145071	PEACE MEDIA AND ENTERTAINMENT PRIVATE LIMITED	Director	16/10/2012	16/10/2012	-	Active	NO
3	U17291MH2013PTC249124	Perrian Lifestyle Private Limited	Nominee director	11/10/2013	11/10/2013	-	Active	NO

Name :

Vilasben R. Mangukiya

Designation :

Director

Address :

Saifee Society, L. H. Road, Surat – 395006, Gujart, India

Date of Birth/Age :

15.08.1980

Date of Appointment :

25.08.2014

DIN No.:

06957690

KEY EXECUTIVES

Name :	Darshit P. Parikh
Designation :	Secretary
Date of Birth/Age :	20.12.1985
Date of Appointment :	02.09.2014

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2014

Names of Shareholders	No. of Shares
Rameshbhai P. Mangukiya	2970000
Rasik Kumar P. Mangukiya	5525000
Divyaben R. Mangukiya	1000
Vilasben R. Mangukiya	1000
Jiviben P. Mangukiya	1000
Naynben Hiteshbhai Mangukiya	1000
Payal Rankit Mangukiya	1000
Total	8500000

AS ON 27.09.2014

Equity Share Break up (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :	Processor of Rough Diamond to Polish Diamond.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

• Syndicate Bank, IBB Branch, Fort, Mumbai - 400004, Maharashtra, India
• Karnataka Bank Limited, Overseas branch, 104-106, Embassy center, JB Marg, Nariman Point, Mumbai - 400021, Maharashtra, India
• ICICI Bank Limited, Landmark, Race Course Circle, Vadodara - 390007, Gujarat, India
• Indusind Bank Limited, 701 Solitaire Corporate Park, Guru Hargovindji Maharaj Park, Andheri (E), Mumbai - 400093, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan	104.286	5.018
Other loans and advances	1.161	3.646
SHORT TERM BORROWINGS
Term loans from banks	25.134	2.596
Working capital loans from banks	547.685	380.450
Total	678.266	391.710

Auditors :
Name :	S.k. Motani and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
PAN No.:	AAYFS6274Q
Memberships :	Not Available
Collaborators :	Not Available
Related Parties :	Perry Creation Private Limited (CIN No.: U36996GJ2013PTC074862) Perrian Lifestyle Private Limited (CIN No.: U17291MH2013PTC249124)

CAPITAL STRUCTURE

AS ON 27.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,500,000	Equity Shares	Rs. 10/- each	Rs. 85.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	85.000	70.000	70.000
(b) Reserves & Surplus	307.832	181.374	147.448
(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)	392.832	251.374	217.448
(3) Non-Current Liabilities
(a) long-term borrowings	225.682	14.164	11.665
(b) Deferred tax liabilities (Net)	0.000	2.197	0.850
(c) Other long term liabilities	0.100	0.280	0.100
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	225.782	16.641	12.615
(4) Current Liabilities
(a) Short term borrowings	576.801	388.250	241.605
(b) Trade payables	924.469	1517.984	189.104
(c) Other current liabilities	78.815	11.797	2.617
(d) Short-term provisions	43.605	29.123	19.290
Total Current Liabilities (4)	1623.690	1947.154	452.616
TOTAL	2242.304	2215.169	682.679
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	165.187	92.593	9.991
(ii) Intangible Assets	0.590	0.000	0.000
(iii) Capital work-in-progress	25.178	20.655	19.650
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7.763	7.613	24.712
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	8.000	15.112	17.100
(e) Other Non-current assets	0.000	0.000	96.606
Total Non-Current Assets	206.718	135.973	168.059
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	560.732	246.271	135.525
(c) Trade receivables	1282.869	1759.681	358.115
(d) Cash and cash equivalents	84.375	54.684	7.906
(e) Short-term loans and advances	107.610	18.560	13.074
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2035.586	2079.196	514.620
TOTAL	2242.304	2215.169	682.679

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4286.805	3133.570
		Other Income	20.019	23.504
		TOTAL (A)	4306.824	3157.074	NA
Less	EXPENSES
		Cost of Materials Consumed	4202.651	2989.275
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(186.061)	(3.732)
		Employees benefits expense	11.271	13.241
		Other expenses	62.139	27.432
		TOTAL (B)	4090.000	3026.216	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		216.824	130.858	NA
Less	FINANCIAL EXPENSES (D)		66.723	39.948	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		150.101	90.910	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.485	4.366	NA
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		127.616	86.544	NA
Less	TAX (H)		32.000	19.714	NA
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		95.616	66.830	45.090
	Earnings / (Loss) Per Share (Rs.)		11.25	7.86	5.30

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	2.23	2.13	0.00
Operating Profit Margin (PBDIT/Sales)	(%)	5.06	4.18	0.00
Return on Total Assets (PBT/Total Assets}	(%)	5.78	3.96	0.00
Return on Investment (ROI) (PBT/Networth)		0.32	0.34	0.00
Debt Equity Ratio (Total Debt/Networth)		2.04	1.60	1.16
Current Ratio (Current Asset/Current Liability)		1.25	1.07	1.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	70.000	70.000	85.000
Reserves & Surplus	147.448	181.374	307.832
Net worth	217.448	251.374	392.832
long-term borrowings	11.665	14.164	225.682
Short term borrowings	241.605	388.251	576.801
Total borrowings	253.270	402.415	802.483
Debt/Equity ratio	1.165	1.601	2.043

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	3133.570	4286.805
		36.803

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	3133.570	4286.805
Profit	66.830	95.616
	2.13%	2.23%

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 two years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-------------
22]	Litigations that the firm / promoter involved in	------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-------------
26]	Buyer visit details	-------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note: Registered office of the company has been shifted from 42, Shreeji Plaza, 2^nd Floor, Tata Road No.1, Mumbai – 400004, Maharashtra, India to the present address w.e.f.29.08.2012.

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.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10524845	17/09/2014	200,000,000.00	Syndicate Bank	IBB Branch, Fort, Mumbai, Maharashtra - 400004, INDIA	C28511186
2	10522962	12/09/2014	50,000,000.00	Karnataka Bank Ltd.	Overseas branch, 104-106, Embassy center, JB Marg, Nariman Point, Mumbai, Maharashtra - 400021, INDIA	C23966757
3	10466243	12/12/2013	79,500,000.00	ICICI BANK LIMITED	LANDMARK, RACE COURSE CIRCLE, VADODARA, Gujarat - 390007, INDIA	B91990341
4	10445172	31/07/2013	47,000,000.00	INDUSIND BANK LIMITED	701 SOLITAIRE CORPORATE PARK, GURU HARGOVINDJI MAHARAJ PARK, ANDHERI (E), MUMBAI, Maharashtra - 400093, INDIA	B83116814
5	10423631	25/03/2013	200,000,000.00	CENTRAL BANK OF INDIA	BHASKAR MANSION,IST FL,D.B.MARG,, OPERA HOUSE, MUMBAI, Maharashtra - 400004, INDIA	B74396250
6	10264493	18/06/2014 *	200,000,000.00	Karnataka Bank Ltd.	Overseas Branch, 104-106 Embassy Centre,, J. B. Marg, Nariman Point, Mumbai, Maharashtra - 400021,  INDIA	C11159183
7	10259059	18/10/2012 *	150,000,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMAC  HAR MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA	B61158796
8	10259060	17/05/2011 *	150,000,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMAC  HAR MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA	B15048937

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and advances from related parties	120.235	5.500
SHORT TERM BORROWINGS
Others loans and advances	3.982	5.204
Total	124.217	10.704

FIXED ASSETS

• Buildings
• Plant and Equipment
• Vehicles
• Office Equipment
• Computer

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. 61.75
UK Pound	1	Rs. 93.13
Euro	1	Rs. 70.03

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	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		34

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.