MIRA INFORM REPORT

Report No. :	313837
Report Date :	24.03.2015

IDENTIFICATION DETAILS

Name :	BUYERS DEN SALES PRIVATE LIMITED
Registered Office :	SCO 8, Sector 26, Chandigarh - 160026
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.11.2002
Com. Reg. No.:	53-025581
Capital Investment / Paid-up Capital :	Rs. 0.172 Million
CIN No.: [Company Identification No.]	U52599CH2002PTC025581
TIN No.:	04410021442
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCB1942K
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject is engaged in the business of trading of Diamond, Gold and Silver Ornaments
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 20000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has taken huge external borrowing, which acts as threatening to the liquidity positon of the company. However, trade relations are fair. Business is active. Payments are reported to be 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 – 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Sunny
Designation :	Manager
Contact No.:	91-172-4530020
Date :	23.03.2015

LOCATIONS

Registered Office :	SCO 8, Sector 26, Chandigarh – 160026, India
Tel. No.:	91-172-4611429/4530020/4530025
Fax No.:	Not Available
E-Mail :	ca_garg_roc@hotmail.com ashokswami@bclhomes.com arma.jewellers@gmail.com ppdesignestate@gmail.com
Website :	http://www.armadiamonds.com

DIRECTORS

As on: 30.09.2014

Name :

Mr. Baldev Chand Bansal

Designation :

Director

Address :

H. No. 253, Sector 7, Panchkula - 134109, Haryana, India

Date of Birth/Age :

26.01.1953

Date of Appointment :

15.11.2002

DIN No.:

00157520

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	U51909PB1995PTC017026	AVRIL TRADERS PRIVATE LIMITED	DIRECTOR	13/09/1995	13/09/1995	-	ACTIVE	NO
2	U74899DL1995PTC074798	CHANDIGARH MALT PRIVATE LIMITED	DIRECTOR	20/12/1995	20/12/1995	28/07/2014	ACTIVE	NO
3	U52599CH2002PTC025581	BUYERS DEN SALES PRIVATE LIMITED	DIRECTOR	15/11/2002	15/11/2002	-	ACTIVE	NO
4	U00082CH2005PLC029291	BCL HOMES LIMITED	DIRECTOR	02/12/2005	02/12/2005	-	ACTIVE	NO
5	U45203CH1990PTC010404	ASHIANA CONSTRUCTIONS PRIVATE LIMITED	DIRECTOR	02/01/2006	02/01/2006	30/06/2012	ACTIVE	NO
6	U26914CH1988PTC008208	MOLI CERAMICS PRIVATE LIMITED	DIRECTOR	01/06/2006	01/06/2006	-	ACTIVE	NO
7	U45200DL2008PTC181970	BLACKSTONE INFRACON PRIVATE LIMITED	DIRECTOR	01/11/2010	01/11/2010	-	ACTIVE	NO
8	U45201DL2005PTC134382	RENAISSANCE BUILDCON COMPANY PRIVATE LIMITED	DIRECTOR	29/09/2011	23/11/2010	-	ACTIVE	NO
9	U70109CH2011PTC033282	SHIVANTHIK INFRA PRIVATE LIMITED	DIRECTOR	27/09/2011	27/09/2011	-	ACTIVE	NO

Name :

Mr. Nishant Bansal

Designation :

Director

Address :

H. No. 253, Sector 7, Panchkula - 134109, Haryana, India

Date of Birth/Age :

25.08.1987

Date of Appointment :

12.05.2008

DIN No.:

02149000

Name :

Mr. Ravi Goyal

Designation :

Director

Address :

H. No. 253, Sector 7, Panchkula - 134109, Haryana, India

Date of Birth/Age :

15.11.1978

Date of Appointment :

12.05.2008

DIN No.:

02195089

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	U00082CH2005PTC029395	DURGA REAL ESTATE PRIVATE LIMITED	Director	20/12/2005	20/12/2005	-	Active	NO
2	U52599CH2002PTC025581	BUYERS DEN SALES PRIVATE LIMITED	Director	12/05/2008	12/05/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sunny
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Names of Shareholders	No. of Shares	Percentage
Baldev Chand Bansal	500	2.90
Ravi Goyal	8120	47.10
Nishant Bansal	8620	50.00
Total	17240	100.00

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 :	Subject is engaged in the business of trading of Diamond, Gold and Silver Ornaments
Products :	Diamond Gold Silver Ornaments
Brand Names :	“Arma Jeweller”
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

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 :

Retailers and Others

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 :

15 (Approximately)

Bankers :

• ING Vysysa Bank Limited, SCO 70-71, Ground Floor, Sector - 8C, Madhya Marg, Sector - 8C, Madhya Marg, Chandigarh - 160018, Punjab, India
• Allahabad Bank, Sector 8, Chandigarh, Chandigarh - 160008, India
• State Bank of India, SME Branch, Sector-17B, Chandigarh, Chandigarh - 160017, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
India Infoline Investment Services Limited (Secured against the assets of the company and personal guarantee of directors))	39.569	50.928
Short-term borrowings
CC Limit from ING Vyasa Bank (Secured Against Stocks & Debtors of the company)	8.176	8.478
Total	47.745	59.406

Financial Institute:	India Infoline Investment Services Limited, IIFL House, Sun Infotech Park, Road No. 16V, Plot No. B-23, Thane Industrial Area, Wagle Estate, Thane - 400604, Maharashtra, India
Auditors :
Name :	Garg Sanjeev and Associates Chartered Accountants
Address :	House No 270, Sector 44 A, Chandigarh-160047, India
Tel. No.:	91- 172-2607931
Mobile No.:	91-9417200368
E-Mail :	garg_ca@hotmail.com
PAN N Income-tax PAN of auditor or auditor's firm :	AAVFS8061J
Memberships :	Not Available
Collaborators :	Not Available
Enterprise over which key Managerial personnel are able to exercise significant influence:	Durga Jewellers

CAPITAL STRUCTURE

As on 30.09.2014

Authorized Capital:

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs.10/- each	Rs. 2.500 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
17,240	Equity Shares	Rs.10/- each	Rs. 0.172 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.172	0.172	0.172
(b) Reserves & Surplus	6.919	6.590	6.050
(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)	7.091	6.762	6.222
(3) Non-Current Liabilities
(a) long-term borrowings	44.005	55.164	58.717
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.072	0.054	0.038
Total Non-current Liabilities (3)	44.077	55.218	58.755
(4) Current Liabilities
(a) Short term borrowings	8.176	8.478	7.092
(b) Trade payables	9.229	8.250	5.469
(c) Other current liabilities	46.179	44.052	38.334
(d) Short-term provisions	1.897	1.761	1.919
Total Current Liabilities (4)	65.481	62.541	52.814
TOTAL	116.649	124.521	117.791
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.503	3.795	4.349
(ii) Intangible Assets	0.000	0.000	0.000
(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	10.000	10.000	10.000
(c) Deferred tax assets (net)	0.097	0.056	0.054
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.231	0.231	0.231
Total Non-Current Assets	15.831	14.082	14.634
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	97.369	108.212	100.288
(c) Trade receivables	0.000	0.040	0.094
(d) Cash and cash equivalents	0.872	0.818	2.201
(e) Short-term loans and advances	1.448	0.395	0.245
(f) Other current assets	1.129	0.974	0.329
Total Current Assets	100.818	110.439	103.157
TOTAL	116.649	124.521	117.791

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	127.472	132.976	159.334
		Other Income	0.000	0.008	2.000
		TOTAL (A)	127.472	132.984	161.334
Less	EXPENSES
		Cost of Materials Consumed	103.049	107.509	134.428
		Employees benefits expense	3.855	4.496	5.371
		Other expenses	10.035	9.222	7.431
		TOTAL (B)	116.939	121.227	147.230
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.533	11.757	14.104
Less	FINANCIAL EXPENSES (D)		9.204	10.268	10.810
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.329	1.489	3.294
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.795	0.554	0.631
	PROFIT BEFORE TAX (E-F) (G)		0.534	0.935	2.663
Less	TAX (H)		0.186	0.297	1.001
	PROFIT AFTER TAX (G-H) (I)		0.348	0.638	1.662
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.853	4.312	2.691
Less	APPROPRIATIONS
		Provision for Gratuity	0.018	0.017	0.038
		Income Tax	0.003	0.080	0.003
	BALANCE CARRIED TO THE B/S		5.180	4.853	4.312
	Earnings Per Share (Rs.)		20.21	36.99	96.39

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.27	0.48	1.04
Operating Profit Margin (PBIDT/Sales)	(%)	8.26	8.84	8.85
Return on Total Assets (PBT/Total Assets}	(%)	0.50	0.82	2.47
Return on Investment (ROI) (PBT/Networth)		0.08	0.14	0.43
Debt Equity Ratio (Total Debt /Networth)		7.36	9.41	10.58
Current Ratio (Current Asset/Current Liability)		1.54	1.77	1.95

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.172	0.172	0.172
Reserves & Surplus	6.050	6.590	6.919
Net worth	6.222	6.762	7.091
long-term borrowings	58.717	55.164	44.005
Short term borrowings	7.092	8.478	8.176
Total borrowings	65.809	63.642	52.181
Debt/Equity ratio	10.577	9.412	7.359

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from operations	159.334	132.976	127.472
		(16.543)	(4.139)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from operations	159.334	132.976	127.472
Profit	1.662	0.638	0.348
	1.04%	0.48%	0.27%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
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	No

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and Jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

Note: Registered Office of the company has been shifted from “SCO 11, Sector 26, Madhya Marg, Chandigarhut, Chandigarh, India” to the present address w.e.f. 01.08.2010.

PERFORMANCE:

This was eleventh year of operation and company has made profits of Rs. 0.348 Million in current year as compare to Rs. 0.638 Million in previous year.

UNSECURED LOAN

Particular	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
From Directors & Shareholders & Others	4.435	4.235
Total	4.435	4.235

INDEX OF CAHREGS:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10320597	27/10/2011	10,000,000.00	ING VYSYSA BANK LIMITED	SCO 70-71, GROUND FLOOR, SECTOR - 8C, MADHYA MARG, SECTOR - 8C, MADHYA MARG, CHANDIGARH, Punjab - 160018, INDIA	B26588491
2	10299445	30/07/2011	10,000,000.00	Allahabad Bank	Sector 8, Chandigarh, Chandigarh - 160008, INDIA	B17776188
3	10300927	28/06/2011	23,000,000.00	INDIA INFOLINE INVESTMENT SERVICES LIMITED	IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane, Maharashtra - 400604, INDIA	B18320846
4	10300732	28/06/2011	46,000,000.00	INDIA INFOLINE INVESTMENT SERVICES LIMITED	IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane, Maharashtra - 400604, INDIA	B18243949

* Date of charge modification

FIXED ASSETS:

• Furniture & Fittings
• Air Conditioner
• Freezers/ Coolers
• Computers
• Electric Installation
• Car
• Mobile
• Refrigerator
• Generator
• Store Renovation

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.62.29
UK Pound	1	Rs.93.02
Euro	1	Rs.67.36

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	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		27

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.