MIRA INFORM REPORT

Report No. :	308070
Report Date :	16.02.2015

IDENTIFICATION DETAILS

Name :	RATNAKALA EXPORTS PRIVATE LIMITED (w.e.f 07.04.2011)
Formerly Known As :	RATNA KALA EXPORTS PRIVATE LIMITED
Registered Office :	DC 7250, Core Cendtre, D Tower, Bharat Diamond Bourse, BKC, Bandra East, Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.06.2009
Com. Reg. No.:	11-192936
Capital Investment / Paid-up Capital :	Rs.72.000 Millions
CIN No.: [Company Identification No.]	U40300MH2009PTC192936
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 :	Manufacturer and trader of diamond.
No. of Employees :	More than 100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects Ratnakalas established position in the diamond industry supported by sound financial base and fair profitability margins of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	11.07.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	11.07.2014

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. Ranchhodbhai Kanjibhai Detroja
Designation :	Director
Contact No.:	91-9819684079
Date :	12.02.2015

LOCATIONS

Registered Office :	DC 7250, Core Cendtre, D Tower, Bharat Diamond Bourse, BKC, Bandra East, Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-40945353
Mobile No.:	91-9819684079 (Mr. Ranchodbhai)
Fax No.:	Not Available
E-Mail :	dilipg@ratnakala.com
Website :	www.ratnakala.com
Branch Office :	316, Prasad Chambers Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23674114
Fax No.:	91-22-23632815

DIRECTORS

As on 30.09.2014

Name :

Mr. Ranchhodbhai Kanjibhai Detroja

Designation :

Director

Address :

202, 2nd Floor, Shanti Vimal Apartment, Sir Pherozeshah Mehta Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

18.08.1958

Date of Appointment :

02.06.2009

DIN No.:

02190066

PAN No.;

ACBPD2966P

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	U40300MH2009PTC192936	RATNAKALA EXPORTS PRIVATE LIMITED	Director	02-06-09	02-06-09	-	Active	NO
2	U26913GJ2009PTC057903	KRISHNA WALL AND GLAZE TILES PRIVATE LIMITED	Director	20-09-09	20-09-09	03-03-14	Active	NO
3	U40300MH2013PTC243131	RATNAKALA POWER GENERATION PRIVATE LIMITED	Director	09-05-13	09-05-13	-	Active	NO
4	U72200GJ2014PTC080615	RATNAKALA SOFTWARE PRIVATE LIMITED	Additional director	15-11-14	15-11-14	-	Active	NO

Name :

Mr. Maheshkumar Ranchhod Detroja

Designation :

Director

Address :

202, 2nd Floor, Shanti Vimal Apartment, Sir Pherozeshah Mehta Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

06.12.1979

Date of Appointment :

01.07.2009

DIN No.:

02699233

PAN No.:

AAVPD9150B

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	U40300MH2009PTC192936	RATNAKALA EXPORTS PRIVATE LIMITED	Director	01-07-09	01-07-09	-	Active	NO
2	U40300MH2013PTC243131	RATNAKALA POWER GENERATION PRIVATE LIMITED	Director	09-05-13	09-05-13	-	Active	NO

Name :

Mr. Hiralal Dhanji Godhani

Designation :

Director

Address :

202, 2nd Floor, Shanti Vimal Apartment, Sir Pherozeshah Mehta Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

05.07.1967

Date of Appointment :

02.06.2009

DIN No.:

02226566

PAN No.:

AGCPG4445M

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	U40300MH2009PTC192936	RATNAKALA EXPORTS PRIVATE LIMITED	Director	02-06-09	02-06-09	-	Active	NO
2	U51900MH2006PTC159898	MONOLINE MERCANTILE COMPANY PRIVATE LIMITED	Director	15-06-10	15-06-10	-	Converted to LLP and dissolved	NO
3	U51900MH2006PTC159773	BIGSHOP MULTITRADE PRIVATE LIMITED	Director	15-06-10	15-06-10	-	Converted to LLP and dissolved	NO
4	U40300MH2013PTC243131	RATNAKALA POWER GENERATION PRIVATE LIMITED	Director	13-05-13	13-05-13	-	Active	NO

Name :

Mr. Rameshbhai Kurjibhai Patel

Designation :

Additional director

Address :

202, 2nd Floor, Shanti Vimal Apartment, Sir Pherozeshah Mehta Road, Vile Parle East, Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

20.11.1958

Date of Appointment :

01.10.2009

DIN No.:

02778516

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	U40300MH2009PTC192936	RATNAKALA EXPORTS PRIVATE LIMITED	Additional director	01-10-09	01-10-09	-	Active	NO
2	U40300MH2013PTC243131	RATNAKALA POWER GENERATION PRIVATE LIMITED	Director	14-06-13	14-06-13	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders (Equity shares)	No. of Shares
Maheshkumar R Detroja	765000
Ranchhodbhai K Detroja	3374900
Hiralal Dhanjibhai Godhani	112500
Vasantbhai Dhanjibhai Godhani	112500
Hargovindbhai Tribhovanbhai Zalariya	50400
Dineshbhai Sundarjibhai Thoriya	17100
Maganbhai Odhavjibhai Kasundra	67500
Shobhanaben R Detroja	100
Total	4500000

Names of Shareholders (Preference shares)	No. of Shares
Maheshkumar R Detroja	500000
Ranchhodbhai K Detroja	100000
Shobhanaben Ranchhodbhai Detroja jointly with Ranchhodbhai Kanjibhai Detroja	2100000
Total	2700000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and trader of diamond.
Products :	Diamond
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit (30-90 Days)
Purchasing :	Cash and Credit (30-90 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

· OEMS

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 :

More than 100 (Approximately)

Bankers :

State Bank of India,Diamond Branch, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans taken for fixed assets	0.431	2.431
Short-term borrowings
Rupee term loans from banks	100.000	29.500
Foreign currency term loans from banks	677.996	720.326
Total	778.427	752.257

Banking Relations :	--
Auditors :
Name :	Gaurang Gunvanthray Shah Chartered Accountant
Address :	Mumbai, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAGPS7886J
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs. 45.000 Millions
2700000	Preference Shares	Rs.10/- each	Rs. 27.000 Millions
	Total		Rs. 72.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs. 45.000 Millions
2700000	Preference Shares	Rs.10/- each	Rs. 27.000 Millions
	Total		Rs. 72.000 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	72.000	72.000	51.000
(b) Reserves & Surplus	1222.921	1036.308	667.245
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	210.000
Total Shareholders’ Funds (1) + (2)	1294.921	1108.308	928.245
(3) Non-Current Liabilities
(a) long-term borrowings	11.037	156.148	167.302
(b) Deferred tax liabilities (Net)	2.443	1.418	1.283
(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)	13.480	157.566	168.585
(4) Current Liabilities
(a) Short term borrowings	777.996	749.826	549.737
(b) Trade payables	1311.884	885.254	1852.568
(c) Other current liabilities	32.542	2.793	2.010
(d) Short-term provisions	90.635	82.000	59.591
Total Current Liabilities (4)	2213.057	1719.873	2463.906
TOTAL	3521.458	2985.747	3560.736
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	224.749	219.718	237.806
(ii) Intangible Assets	0.110	0.183	0.304
(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	1.026	0.525	0.525
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	16.748	14.607	14.589
(e) Other Non-current assets	0.000	59.686	59.674
Total Non-Current Assets	242.633	294.719	312.898
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1533.987	1214.414	1971.812
(c) Trade receivables	1494.938	1198.424	934.443
(d) Cash and cash equivalents	133.188	40.865	165.357
(e) Short-term loans and advances	113.498	235.532	174.543
(f) Other current assets	3.214	1.793	1.683
Total Current Assets	3278.825	2691.028	3247.838
TOTAL	3521.458	2985.747	3560.736

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	6669.480	6126.451	4812.554
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	325.073	317.140	249.490
Less/ Add	DEPRECIATION/ AMORTISATION	45.567	54.708	57.328
	PROFIT/ (LOSS) BEFORE TAX	279.506	262.432	192.162
Less	TAX	92.893	82.369	53.175
	PROFIT/ (LOSS) AFTER TAX	186.613	180.063	138.987
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	508.308	328.245	189.258
	Balance Carried to the B/S	694.921	508.308	328.245
	Earnings / (Loss) Per Share (Rs.)	5.92	NA	NA

Expected Sales (2014-2015): Rs.7000.000 Millions

The above information has been parted by Mr. Ranchhodbhai Kanjibhai Detroja

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.80	2.94	2.89
Return on Total Assets (PBT/Total Assets}	(%)	7.94	8.79	5.40
Return on Investment (ROI) (PBT/Networth)		0.22	0.24	0.21
Debt Equity Ratio (Total Debt /Networth)		0.61	0.82	0.77
Current Ratio (Current Asset/Current Liability)		1.48	1.56	1.32

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	51.000	72.000	72.000
Reserves & Surplus	667.245	1036.308	1222.921
Share Application money pending allotment	210.000	0.000	0.000
Net worth	928.245	1108.308	1294.921
long-term borrowings	167.302	156.148	11.037
Short term borrowings	549.737	749.826	777.996
Total borrowings	717.039	905.974	789.033
Debt/Equity ratio	0.772	0.817	0.609

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4812.554	6126.451	6669.480
		27.301	8.864

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4812.554	6126.451	6669.480
Profit	138.987	180.063	186.613
	2.89%	2.94%	2.80%

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	No
18]	Major customers	No
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

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 and 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.

OUTLOOK FOR THE CURRENT YEAR

The Indian economy grew at 4.7% in FY 13-14. The global economy grew by about 2.1% in 2013.Most market analysts expect india's GDP growth between 5.5% and 5.7%in F Y 14 15 The new government at the Centre has initiated several measures to achieve this growth rate. The Company's products are sold in US and Europe. While US economy is picking up , growth in EU nations remains flat.

Indian economy in FY 13-14, continued to face several adverse factors like high rate of inflation, high fuel prices, high interest rates and firming of the rupee. The Company's operations are impacted by firming of rupee leading to high import costs and less exports realization. About 75% of the Company's revenues are from exports. In spite of these adverse factors, the Company has performed creditably in higher sales, exports and profits for the FY 13-14.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans and advances from others	10.606	153.717
Total	10.606	153.717

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10367248	25/09/2014 *	1,128,400,000.00	STATE BANK OF INDIA	DIAMOND BRANCH,D/3,WEST CORE,BHARAT DIAMOND BOURSE , BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MA HARASHTRA - 400051, INDIA	C29775608

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

Intangible assets

· Computer software

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.62.14
UK Pound	1	Rs.95.78
Euro	1	Rs.71.05

INFORMATION DETAILS

Information Gathered by :	PAT
Analysis Done by :	KAR
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		50

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.