MIRA INFORM REPORT

Report No. :	328656
Report Date :	26.06.2015

IDENTIFICATION DETAILS

Name :	OZONE DIAMONDS PRIVATE LIMITED
Registered Office :	Plot No. 22-A, Patel Ind. Co-Operative Society Limited, Near HDFC Bank, Kishna Circle, Balashram, Katargam, Surat – 395004, Gujarat
Tel. No.:	91-261-2484101
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	24.11.2009
Com. Reg. No.:	04-058685
Capital Investment / Paid-up Capital :	Rs. 9.665 Million
CIN No.: [Company Identification No.]	U36912GJ2009PTC058685
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	SRTO00494E
PAN No.: [Permanent Account No.]	AABCO2223R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Diamonds.
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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 established in the year 2009 and it is a manufacturer, exporter and importer of diamonds. It is a established company satisfactory track record. For the financial year ended 2014, company has achieved 37.71% sales turnover growth and it has reported profitability margins at 0.74%. The company possesses sound operational risk profile marked by healthy operating efficiencies along with above average financial base and debt protection metrics of the company. Trade relations are reported as fair. Payment terms are reported to be usually correct. In view of sound operational profile backed by above average financial base, the company can be considered for business dealings at usual trade terms and condition.

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) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Ganshyambhai
Designation :	Accountant
Contact No.:	91-9328132571
Date :	25.06.2015

LOCATIONS

Registered Office :	Plot No. 22-A, Patel Ind. Co-Operative Society Limited, Near HDFC Bank, Kishna Circle, Balashram, Katargam, Surat – 395004, Gujarat, India
Tel. No.:	91-261-2484101
Mobile No.:	91-9328132571 (Mr. Ganshyambhai) 91-9820081443 (Mr. Rameshbhai)
E-Mail :	ozonedimonds@yahoo.com
Factory :	Varachha Road, Surat, Gujarat, India

DIRECTORS

As on 29.09.2014

Name :

Mr. Ramesh Tulsibhai Bhalani

Designation :

Managing director

Address :

27, Harinandan Society, Near Hirabaug, Varachha Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

18.10.1971

Date of Appointment :

04.03.2013

DIN No. :

00236328

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	U36911GJ2004PTC044972	INSPIRE JEWELS PRIVATE LIMITED	Director	01/11/2004	01/11/2004	08/03/2010	Active	NO
2	U36912GJ2009PTC058685	OZONE DIAMONDS PRIVATE LIMITED	Managing director	04/03/2013	24/11/2009	-	Active	NO
3	U36911MH2010PTC203954	VHN DIAMONDS PRIVATE LIMITED	Director	09/06/2010	09/06/2010	-	Active	NO
4	U32109DL2008PTC176894	TEKNOL INDIA PRIVATE LIMITED	Director	08/10/2013	08/10/2013	-	Active	NO

Name :

Mr. Arvind Tulsibhai Bhalani

Designation :

Whole-time director

Address :

27, Harinandan Society, Near Hirabaug, Varachha Road, Surat – 395006, Gujarat, India

Date of Birth/Age :

01.04.1975

Date of Appointment :

04.03.2013

DIN No. :

02796916

Name :

Mr. Lavji Govindbhai Gujarati

Designation :

Managing director

Address :

71, Shivom Nagara, R. T. O. Road, Bhav Shaher, Bhavnagar – 364003, Gujarat, India

Date of Birth/Age :

15.01.1973

Date of Appointment :

04.03.2013

DIN No. :

02796921

Name :

Mr. Dineshbhai Govindbhai Gujarati

Designation :

Whole-time director

Address :

Plot-G/2, Old-37, Ground Floor, R.S.37/1, FP-21/1, TPS-35, Krishna Row House, Near Devpooja Soc., Dabholi Road Surat – 395006, Gujarat, India

Date of Birth/Age :

06.05.1975

Date of Appointment :

04.03.2013

DIN No. :

02796955

KEY EXECUTIVES

Name :	Mr. Ganshyambhai
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

Names of Shareholders	No. of Shares
Ramesh Bhalani	27500
Lavjibhai Gujarati	8500
Dineshbhai Gujarati	3500
Arvind Bhalani	8500
Arvindbhai tulsibhai Bhalani	10000
Dineshbhai Govindbhai Gujarati	20000
Govinbhai Gujarati	50000
Kailas Patel	20000
Lavjibhai Govindbhai Gujarati	20000
Tulsibhai Bhalani	42000
Harshaben Gujarati	5000
Sunitaben Gujarati	5000
Ashaben Bhalani	5000
Rameshbha Tulsibhai Bhalani	100
Shantuben Bhalani	100
Total	225200

As on 29.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Diamonds.
Products :	Diamonds
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Belgium Dubai Hong Kong South Korea Singapore Newyork
Imports :
Products :	Raw Material
Countries :	Belgium Dubai
Terms :
Selling :	Cash, L\C and Credit
Purchasing :	Cash, L\C and Credit

PRODUCTION STATUS : Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Blue Gems , Belgium
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Gangwoon Sangsa, South Korea
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

450 (Approximately)

Bankers :

Banker Name	HDFC Bank
Branch Address	Katargam, Surat – 395004, Gujarat, India
Person Name (With Designation)	Mr. Siddharth Mehta
Contact Number	91-9328867736
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

Banker Name	HDFC Bank
Branch Address	Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	PC FC – Rs. 35.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	Corporation Bank
Branch Address	BKC Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	044401601000099
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
LONG TERM BORROWINGS
HDFC Bank Limited		0.113
HDFC bank Limited		0.449
Total	NA	0.562

Auditors :
Name :	Asodaria Associates Chartered Accountants
Address :	O-17, First Floor, Panchratna Tower, Lambe Hanuman Road, Surat – 395006, Gujarat, India
Tel. No.:	91-261-2544446 / 2548601
E-Mail :	aso_asso@yahoo.co.in
PAN No.	AAFEA8432G
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 9.665 Million

As on 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
225200	Equity Shares	Rs. 10/- each	Rs. 2.252 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

[PROVISIONAL BALANCE SHEET]

SOURCES OF FUNDS		31.03.2015
SHAREHOLDERS FUNDS
1] Share Capital		9.665
2] Share Application Money		0.000
3] Reserves & Surplus		2.252
4] Share Premium		19.368
NETWORTH		31.285
LOAN FUNDS
1] Secured Loans		0.174
2] Unsecured Loans		39.242
TOTAL BORROWING		39.416
DEFERRED TAX LIABILITIES		0.098
TOTAL		70.799
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.510
Capital work-in-progress		0.000
INVESTMENT		6.010
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	203.729
	Sundry Debtors	47.151
	Cash & Bank Balances	2.277
	Other Current Assets	0.000
	Loans & Advances	2.105
Total Current Assets		255.262
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	199.900
	Other Current Liabilities	0.417
	Provisions	0.738
Total Current Liabilities		201.055
Net Current Assets		54.207
PROFIT AND LOSS A/C		(6.928)
TOTAL		70.799

SOURCES OF FUNDS	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.252	2.250
(b) Reserves & Surplus	29.110	25.661
(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)	31.362	27.911
(3) Non-Current Liabilities
(a) long-term borrowings	29.575	27.901
(b) Deferred tax liabilities (Net)	0.098	0.076
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	29.673	27.977
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	130.180	120.813
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	8.403	1.764
Total Current Liabilities (4)	138.583	122.577
TOTAL	199.618	178.465
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18.851	15.594
(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	3.360	1.680
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.382	0.118
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	22.593	17.392
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	111.696	109.069
(c) Trade receivables	60.079	46.679
(d) Cash and cash equivalents	3.253	2.598
(e) Short-term loans and advances	1.975	2.678
(f) Other current assets	0.022	0.049
Total Current Assets	177.025	161.073
TOTAL	199.618	178.465

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015
	SALES
		Income	529.828
		Other Income	0.022
		TOTAL	529.850
Less	EXPENSES
	Cost of Goods Sold		417.248
	Advertisement Expenses		0.004
	Angadia Expenses		0.027
	Audit Fees		0.029
	Bank Charges		0.589
	Commission Expenses		0.256
	Computer Expenses		0.003
	Director’s Remuneration		2.400
	Donation Expenses		0.622
	Electricity Expenses – (BDB-AC)		0.035
	Electricity Expenses – (BDB)		0.011
	Employers Contribution to ESI		0.034
	Employers Contribution to PF		0.081
	Foreign Bank Charges		0.079
	Foreign Travel Expenses		0.424
	GIA Certification Expenses		0.431
	Other Expenses		98.955
	Total		521.228
	PROFIT BEFORE DEPRECIATION		8.622
Less/ Add	DEPRECIATION		1.694
	NET PROFIT		6.928

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	463.350	336.445
	Other Income	0.017	0.009
	TOTAL (A)	463.367	336.454
Less	EXPENSES
	Cost of Materials Consumed	366.133	254.756
	Rough Diamond Purchase (Trading)	18.987	11.888
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	-5.614	14.185
	Manufacturing Expenses	61.068	39.060
	Employees benefits expense	8.909	6.427
	Other expenses	3.203	1.759
	TOTAL (B)	452.686	328.075
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	10.681	8.379
Less	FINANCIAL EXPENSES (D)	3.060	2.166
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	7.621	6.213
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.607	2.353
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	5.014	3.860
Less	TAX (H)	1.583	1.231
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	3.431	2.629
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (J)	6.310	3.681
	Balance Carried to the B/S (I+J)	9.741	6.310
	IMPORTS		345.939
	Earnings / (Loss) Per Share (Rs.)	15.25	11.69

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.30	0.74	0.78
Operating Profit Margin (PBIDT/Sales)	(%)	NA	2.31	2.49
Return on Total Assets (PBT/Total Assets}	(%)	2.54	2.55	2.18
Return on Investment (ROI) (PBT/Networth)		0.22	0.16	0.14
Debt Equity Ratio (Total Debt/Networth)		1.26	0.94	1.00
Current Ratio (Current Asset/Current Liability)		1.27	1.28	1.31

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	336.445	463.350	529.828
		37.719	14.347

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	336.445	463.350	529.828
Profit	2.629	3.431	6.928
	0.78%	0.74%	1.31%

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOANS

PARTICULAR	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
LONG TERM BORROWINGS
Arvindbhai Tulshibhai Bhalani (HUF)		1.887
Arvindbhai Tulshibhai Bhalani		0.420
Ashaben A. Bhalani		0.211
Dineshbhai Govindbhai Gujarati (HUF)		2.956
Dineshbhai Govindbhai Gujarati		0.127
Govindbhai G. Gujarati		2.528
Harshaben L. Gujarati		0.380
Kailash Rameshbhai Patel		2.958
Lavjibhai Govindbhai Gujarati (HUF)		2.273
Lavjibhai Govindbhai Gujarati		0.080
Rameshbhai Tulshibhai Bhalani		1.029
Rameshbhai Tulshibhai Bhalani (HUF)		3.230
Shantuben T. Bhalani		5.531
Sunitaben D. Gujarati		0.434
Tulsibhai D. Bhalani		4.969
Total	NA	29.013

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10570634	05/05/2015	50,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C54253976

* Date of charge modification

FIXED ASSETS (As on 31.03.2014)

• Computer
• Factory Building
• Furniture
• Plant and Machinery
• Safe
• Telephone Systems
• Weighing Balance
• Air Conditioner
• CCTV Camera
• Electrical Equipment
• Vehicle

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 8th Century B.C.  India, in fact, remained undisputed leader till 18th 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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 30th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

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. 63.61
UK Pound	1	Rs. 99.79
Euro	1	Rs. 71.17

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	TRU

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
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.