MIRA INFORM REPORT

Report Date :

01.01.2015

IDENTIFICATION DETAILS

Name :	ANKIT GEMS PRIVATE LIMITED
Registered Office :	DW 6251/6252, D Tower, G Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.04.2011
Com. Reg. No.:	11-216778
Capital Investment / Paid-up Capital :	Rs.362.600 Millions
CIN No.: [Company Identification No.]	U36912MH2011PTC216778
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAJCA4305Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Diamonds.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 was erstwhile named as M/s Ankit Gems and had commenced its operation as a partnership concern in 1985 and was later converted to a private limited company during FY 2011. It is an established company having satisfactory track. Management has filed form 20B, depicting annual return for Fy14, whereas failed to file any financial statements with the statutory authorities. The company possesses an average financial profile marked by adequate networth base along with moderate capital structure and debt coverage indicators owing to working capital intensive nature of the business. Management has witnessed a heathy growth in its operations during FY 2013. The rating also take into consideration, the risk of volatility in the prices of rough diamonds and exchange rate fluctuations importing volatility to the profitability. However, trade relations seems to be fair. Business is active. Payment terms are reported as usually correct. In view of experienced promoters, the subject 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	CARE
Rating	Long Term Bank Facilities = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	13.11.2013

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 DECLINED BY

Name :	Mr. Kamlesh
Designation :	Accountant
Contact No.:	91-22-43548800
Date :	31.12.2014

LOCATIONS

Registered Office / Head Office :	D Tower, DW 6251/6252, D Tower, G Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-43548800 to 43548898
Fax No.:	91-22-43548899
E-Mail :	accounts@ankitgems.com info@ankitgems.com
Website :	http://www.ankitgems.com
Factory :	Plot No.315, Behind Patel Faliya, Gotalawadi, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2532858 / 2533193
Fax No.:	91-261-2530876
E-Mail :	suratdept@ankitgems.com
Overseas Office 1 :	Hong Kong - Marketing Associate Rm. 403 4/FL., Chevalier House, 45 - 51 Chatham Road South, Tsimshatsui. Kln. H.K.
Tel. No.:	+852-27214642 / 27212642
Fax No.:	+852-27213642
E-Mail :	hk@ankitgems.com
Overseas Office 2 :	Antwerpen - Marketing Associate Hoveniers Straat 30, Box 210, Room No. 422 - 425, 2018, Antwerpen, Belgium
Tel. No.:	+323-2329484
Fax No.:	+323-2329481
E-Mail :	a.c.diam@gmail.com

DIRECTORS

As on 26.09.0014

Name :	Mr. Parvakumar Vasantlal Shah
Designation :	Director
Address :	402, Anganvishala Apartment, Athwalines Surat – 395007, Gujarat, India
Date of Appointment :	27.04.2011
DIN No.:	00774167
Name :	Mr. Pravin Pannalal Shah
Designation :	Director
Address :	201 Abhishek Park – A Apartment, Behind Pooja Abhishek, Near Lal Banglow, Athwalines, Surat – 395007, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	00798301
Name :	Mr. Vasantlal Chandulal Shah
Designation :	Director
Address :	F No. 402, Angan Vishala, Opposite Indoor Stadium, Athwalines Surat – 395007, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	00798334
Name :	Mr. Dilipbhai Amrutlal Soni
Designation :	Director
Address :	6 Pooja Row House, Near Jay Ambe Society, Adajan Patia, Surat – 395009, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	00798359
Name :	Mr. Ankit Arun Shah
Designation :	Director
Address :	92, Urvashi Building, Napeansea Road, Mumbai – 400006, Maharashtra, India
Date of Appointment :	27.04.2011
DIN No.:	01872781
Name :	Mr. Arunbhai Chimanlal Shah
Designation :	Director
Address :	Flat No: 92, 9th Floor, Urvashi Building, 66-L, Jagmohandas Road, Mumbai – 400006, Maharashtra, India
Date of Appointment :	15.06.2011
DIN No.:	01979698
Name :	Mr. Dilip Shah
Designation :	Director
Address :	302, Abhishek Park – A Apartment, Behind Pooja Abhishek, Near Lal Banglow, Athwalines, Surat – 395007, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	02196230
Name :	Mr. Jenish Dilipkumar Shah
Designation :	Director
Address :	302, Abhishek Park – A Apartment, Behind Pooja Abhishek, Near Lal Banglow, Athwalines, Surat – 395007, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	03547958
Name :	Mr. Shreyans Arvindkumar Shah
Designation :	Director
Address :	Flat No.7, C, Waterlook Apartment, Behind Anjansalaka, Athwalines, Surat – 395007, Gujarat, India
Date of Appointment :	15.06.2011
DIN No.:	03548010

KEY EXECUTIVES

Name :	Mr. Kamlesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.0014

Names of Shareholders (Equity Shares)	No. of Shares
Arun Chimanlal Shah	5192825
Dilip Chimanlal Shah	4012638
Ankit Arun Shah	2360375
Vasant Chandulal Shah	1888300
Parva Vasantbhai Shah	944150
Pravin Pannalal Shah	2053526
Dilip Amrutlal Soni	1817489
Mukund Dilip Soni	472075
Shreyans Arvind Shah	2313168
Priyansh Pravinbhai Shah	236036
Jainish Dilipbhai Shah	313168

Names of Shareholders (Preference shares)	No. of Shares
Arun Chimanlal Shah	3025000
Dilip Chimanlal Shah	2337500
Ankit Arun Shah	1375000
Vasant Chandulal Shah	1100000
Parva Vasantbhai Shah	550000
Pravin Pannalal Shah	1196250
Dilip Amrutlal Soni	1058750
Mukund Dilip Soni	275000
Shreyans Arvind Shah	1347500
Priyansh Pravinbhai Shah	137500
Jainish Dilipbhai Shah	1347500
Total	13750000

Equity Share Break up (Percentage of Total Equity)

As on 26.09.0014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diamonds.

Products :

Products Description	ITC Code
Polished Diamonds, Rough Diamonds and Jewellery	99999999

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 :

Payment Behaviour

Market Goodwill

Overall

Remark:

Not Divulged

Customers :

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 :

Product Quality

Delivery Behaviour

Overall

Remark:

Not Divulged

No. of Employees :

Information declined by the management

Bankers :

State Bank of India, State Bank of India, Bharat Diamond Bourse, B.K.C. Bandra(East), Mumbai, Maharashtra - 400051, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Loans repayable on demand	1568.817	1274.134
Total	1568.817	1274.134

The Borrowings from bank above are against:

1. Collateral equitable mortgage of :

a. Offices at Bharat Diamond Bourse, Bandra

b. Factory Premises at Surat

c. Residential flats no. 702,703 owned by Arun C Shah and Meena A Shah

d. 18 Galas owned by Shashwat Stones Private Limited and 2-6 Galas owned by Pravin P. Shah

2. The personal Grantee of, Directors of the company:

a) Shri Arun C Shah

b) Dilip C Shah

c) Ankit A Shah

d) Vasantlal C Shah

e) Parva V. Shah

f) Pravin P Shah

g) Dilip A Shah

h) Mukund D.Shah

i) Shreyansh A. Shah

j) Jainish D. Shah

k) Priyansh P Shah

3. Third party guarantee of

a) Smt. Meena A Shah,

b) Shri Amit A Shah,

c) M/s Aryan Diamonds and

4. Corporate guarantee of:

a) Shashwat Stones Private Limited

5. Primary Security

a) Current and future stock of Rough and Polished Diamonds

b) Exports Receivables of the company, both present and future, ranking pari-passu with other banks

c) Cover under ECIB of ECGC Limited

d) Lien on Fixed Deposits with SBI.

For the packing credit availed from Allahabad bank, other current assets of the company are also given as additional primary security

Banking Relations :
Auditors :
Name :	Chokshi Sanjay Babulal Chartered Accountants
Address :	Navjivan, Commercial Premises Chs, Building No-3, Office No-31, Lamington Road, Mumbai – 400008, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFB6520F
Memberships :	--
Collaborators :	--
Subsidiary Company :	Shashwat Stone Private Limited CIN No.: U36910GJ2005PTC046413
Related Parties :	A.C.Diam Belgium (Company of Director's brother) Ankit Gems HK Limited (Common Directors and shareholders) Saphire Exports Private Limited (Common Directors) Shah Chimanlal Popatlal Parivar Trust (Directors are trustees) Ankit Gems Namibia (Pty) Limited (Earlier known as Crystal Diamond Namibia (Pty) Limited) (Common Directors)

CAPITAL STRUCTURE

As on 26.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
22510000	Equity Shares	Rs.10/- each	Rs.225.100 Millions
17490000	Preference Shares	Rs.10/- each	Rs.174.900 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23603750	Equity Shares	Rs.10/- each	Rs.236.038 Millions
13750000	Preference Shares	Rs.10/- each	Rs.137.500 Millions
	Total		Rs.373.538 Millions

As on 19.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
22510000	Equity Shares	Rs.10/- each	Rs.225.100 Millions
17490000	Preference Shares	Rs.10/- each	Rs.174.900 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22510000	Equity Shares	Rs.10/- each	Rs.225.100 Millions
13750000	Preference Shares	Rs.10/- each	Rs.137.500 Millions
	Total		Rs.362.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	362.600	337.500
(b) Reserves & Surplus	1,027.817	651.743
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1,390.417	989.243
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.643	1.995
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.643	1.995
(4) Current Liabilities
(a) Short term borrowings	1,697.969	1,519.450
(b) Trade payables	2,715.914	2,340.973
(c) Other current liabilities	62.447	39.921
(d) Short-term provisions	5.099	21.289
Total Current Liabilities (4)	4,481.429	3,921.633
TOTAL	5,872.489	4,912.871
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	173.867	178.779
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	92.181	49.779
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.101	2.912
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	269.149	231.470
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	4,193.246	3,325.067
(c) Trade receivables	1,321.500	1,287.364
(d) Cash and cash equivalents	17.014	34.334
(e) Short-term loans and advances	17.296	13.942
(f) Other current assets	54.284	20.694
Total Current Assets	5,603.340	4,681.401
TOTAL	5,872.489	4,912.871

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL	9,841.092	7,857.288
Less	EXPENSES		9,246.715	7,403.356
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		594.377	453.932
Less	FINANCIAL EXPENSES AND DEPRECIATION / AMORTISATION		204.988	97.385
	PROFIT/(LOSS) BEFORE TAX		389.389	356.547
Less	TAX		127.131	115.886
	PROFIT/(LOSS) AFTER TAX		262.258	240.661
	EARNINGS IN FOREIGN CURRENCY		170.356	NA
	Earnings Per Share (Rs.)		4.70	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	6.74	7.33
Return on Investment (ROI) (PBT/Networth)		0.28	0.36
Debt Equity Ratio (Total Debt /Networth)		1.22	1.54
Current Ratio (Current Asset/Current Liability)		1.25	1.19

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Share Capital	337.500	362.600
Reserves & Surplus	651.743	1027.817
Net worth	989.243	1390.417
long-term borrowings	0.000	0.000
Short term borrowings	1519.450	1697.969
Total borrowings	1519.450	1697.969
Debt/Equity ratio	1.536	1.221

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	7,857.288	9,841.092
		25.248

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales		7,857.288	9,841.092
Profit		356.547	389.389
		4.54%	3.96%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT DETAILS NOT AVAILABLE

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last two 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	No
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 706-709, Prasad Chambers, Opera House, Mumbai – 400004, Maharashtra, India to the present address w.e.f. 31.10.2011

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.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Loans repayable on demand from others	129.152	245.316
Total	129.152	245.316

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10489292	28/03/2014	110,000,000.00	STATE BANK OF INDIA	STATE BANK OF INDIA, BHARAT DIAMOND BOURSE, B.K.C . BANDRA(EAST), MUMBAI, MAHARASHTRA - 400051, INDIA	C03160124
2	10478787	31/12/2013	65,000,000.00	STATE BANK OF PATIALA	4-5, CENTER POINT BUILDING, ANDHERI KURLA ROAD, J B NAGAR, ANDHERI EAST MUMBAI, MAHARASHTRA - 400059, INDIA	B96852504
3	10419446	23/03/2013	125,000,000.00	STATE BANK OF INDIA	DIAMOND BRANCH, D/3, WEST CORE, G BLOCK,, BHARAT DIAMOND BOURSE, BKC, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA	B73089310
4	10315972	15/09/2011	1,145,600,000.00	STATE BANK OF INIDA	DIAMOND BRANCH,1ST FLOOR,MAJESTIC SHOPPING CENTRE, 144, JAGANNATH SHANKAR SHETH MARG, GIRGAUM,, MUMBAI, MAHARASHTRA - 400004, INDIA	B24670374
5	10286963	04/09/2014 *	2,449,000,000.00	STATE BANK OF INDIA	DIAMOND BRANCH,D-3,WEST CORE BHARAT DIAMOND BOURSE, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA	C23670052

* Date of charge modification

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 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.63.33
UK Pound	1	Rs.98.58
Euro	1	Rs.77.00

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
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	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.