MIRA INFORM REPORT

Report No. :	346657
Report Date :	29.10.2015

IDENTIFICATION DETAILS

Name :	KAY VEE GEMS
Registered Office :	DW 5130, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Tel. No.:	91-22-23681611 / 20860119
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment:	1997
Com. Reg. No.:	BA-70489
Capital Investment / Paid-up Capital :	Rs. 76.990 Million
TIN No.:	27940277530V
IEC No.:	0397024436
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAFK6664N
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Exporter and Importer of Cut and Polished Diamonds.
No. of Employees :	470 (Approximately) (In Office = 10 / In Branch = 170 / In Factory = 200)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 220000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Kay Vee Gems was set up in the year 1997 as a partnership firm between Mr. Ashish V. Dholakia, Mr. Naresh V. Dholakia, Mr. Vallabhbhai J. Dholakia and Mr. Ranchhod P. Dholakia. Kay Vee Gems is engaged in manufacturing, exporting and importing of cut and polished diamonds. The rating on Kay Vee Gems reflects improvement in its financial risk profile marked by growing scale of operations and capital structure along with decent profitability margin. The rating further derive strength from long track record of operation and the partner’s vast experience in the diamond industry. This rating strengths is partially offset firm’s operation in highly fragmented gems and jewellery industry and foreign exchange fluctuation risk. However, trade relations seems to be fair. Business is active. Payment terms are reported to be usually correct. In view of aforesaid, the firm 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 – 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

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Ashish V. Dholakia
Designation :	Partner
Contact No.:	91-9820198849
Date :	20.10.2015

Name :	Mr. Sasi
Designation :	Manager
Contact No.:	91-9820744690
Date :	23.10.2015

LOCATIONS

Registered Office :	DW 5130, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-23681611 / 20860119
Mobile No.:	91-9820198849 (Mr. Ashish V. Dholakia) / 91-9820744690 (Mr. Sasi)
Fax No.:	Not Available
E-Mail :	kayveegems@gmail.com
Area :	292 sq. ft.
Location :	Rented
Locality :	Commercial
Factory :	29-34, Shiv Nagar Society, Near Navsarjan Society, Surat, Gujarat, India
Tel. No.:	91-261.2544632
E-Mail :	kayveegems@yahoo.co.in
Area :	8000 sq. ft.
Location :	Owned
Locality :	Commercial
Branches :	Patwa Building, 1^st floor, Room No.: 2, Varachha Road, Surat, Gujarat, India
Tel. No.:	91-261-2574632
E-Mail :	kayveegems@yahoo.co.in
Area :	2500 sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Ashish V. Dholakia
Designation :	Partner
Address :	15-C, Abhilasha C.H.S., 46 A.K. Marg, Gowalia Tank, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	13.10.1973
Qualification :	B. Tech
Experience :	20 Years
Name :	Mr. Naresh V. Dholakia
Designation :	Partner
Address :	15-C, Abhilasha C.H.S., 46 A.K. Marg, Gowalia Tank, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	03.02.1978
Qualification :	B.A.
Experience :	18 Years
Name :	Mr. Vallabhbhai J. Dholakia
Designation :	Partner
Address :	15-C, Abhilasha C.H.S., 46 A.K. Marg, Gowalia Tank, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	27.03.1952
Qualification :	S.S.C.
Experience :	45 Years
Name :	Mr. Ranchhod P. Dholakia
Designation :	Partner
Address :	15-C, Abhilasha C.H.S., 46 A.K. Marg, Gowalia Tank, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	11.06.1969
Qualification :	S.S.C
Experience :	24 Years

KEY EXECUTIVES

Name :	Mr. Sasi
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Ashish V. Dholakia	40%
Naresh V. Dholakia	40%
Vallabhbhai J. Dholakia	15%
Ranchhod P. Dholakia	5%

BUSINESS DETAILS

Line of Business :	Exporter and Importer of Cut and Polished Diamonds.
Products :	Cut and Polished Diamonds
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Cut and Polished Diamonds.
Countries :	U.S.A.
Imports :
Products :	Rough Diamonds
Countries :	Belgium
Terms :
Selling :	Credit (30 / 90 / 120 Days)
Purchasing :	OD ; Credit (90 / 120 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Gem Asia BVBA, Hovenierstraat 53, Room 314, Box 49, 2018, Antwerpen, Belgium
Name of the Person :	Mr. Shah (Non-Cooperative)
Contact No.:	00323-2327580
Email Id.:	info@gemasiagroup.com
Since How Long Known :	Last 15 Years
Maximum Limit Dealt :	2014-2015 Rs. 180.000 Million
Experience :	Not Divulged
Remark:	Not Divulged

• Diagem BVBA
• Diambel NV
• Diarough NV
• Dimexon
• Gemasia BVBA
• Glorious Gems BVBA
• Pluczehik Diamond Company NV
• Netal Diam BVBA
• Rasyblue NV
• S V Gems NV
• Vee Diam BVBA

Customers :

Reference 1 :	Aagam Creations, USA
Name of the Person :	Mr. Sujal Shah
Contact No.:	0012137054642
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Reference 2 :

Jewelex India Private Limited

Name of the Person :

Mr. Sameer Mehta (Assistant Vice President)

Contact No.:

91-22-43511100

Since How Long Known :

3 Years

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
Excellent	Excellent	Excellent

Remark:

As claimed by Mr. Sameer Mehta (Assistant Vice President) that he is satisfied with subject company.

• Aagam Cration Inc.
• Adi Impex (HK) Limited
• Amore Jewels Private Limited
• Ankit Diamonds
• Ashesh Brothers
• B. Manji and Company
• C M Diamond (NY) Inc
• Carbon Creation Exports Private Limited
• C. Dinesh and Company Private Limited
• Crystal Gems (HK) Limited
• Diagems Trading Pte. Limited
• D.S.M. Diamonds Pte. Limited
• Jedi Dia (India) Private Limited
• Jewelex India Private Limited
• Maru Gems Limited
• Nivesh Investment Limited
• Offer Mizrahi Dia Private Limited
• PG International (HK) Limited
• Raha Impex HK Limited
• Silver Star Exports

No. of Employees :

470 (Approximately) (In Office = 10 / In Branch = 170 / In Factory = 200)

Bankers :

Bank Name	Bank of India
Branch	Opera House Branch, Hermes House, Opera House, Mumbai – 4000004, Maharashtra, India
Person Name (With Designation)	Mr. Balkrishna Mane (Officer)
Tel. Number	91-22-2394891 / 23679032
Mobile No.:	91-9881236468 / 8879182821
Name of Account Holder	KAY VEE GEMS
Account Number	007620100030771
Account Since (Date/Year of Account Opening)	1997
Average Balance Maintained (If Possible)	Rs. 1.000 Million
Credit Facilities Enjoyed (If any)	Credit Limit = Rs. 120.000 Million
Account Operation	Any one of Partner
Remarks (If any)	As claimed by Mr. Balkrishna Mane (Officer) that he is fully satisfied with subject company financial transaction.

Auditors :

Name :

Ramesh Rajni and Company., Rajni

Chartered Accountants

Address :

1^st Floor, Purshottam Building, 450 Lamington Road, Opera House, Mumbai – 400004, Maharashtra, India

Tel. No.:

91-22-23618386

Mobile No.:

91-9820571560

Fax No.:

91-22-23669708 / 09

E-Mail :

ramrajco@vsnl.com

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

Not Available

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Partner Capital Account :	Rs. 0.015 Million
Partner Current Account :	Rs.76.975 Million
Total :	Rs.76.990 Million

PARTNERS’ FIXED CAPITAL AND CURRENT ACCOUNT SCHEDULE FORMING PART OF BALANCE SHEET

NAME OF THE PARTNERS	SHARE OF PROFIT %	FIXED CAPITAL	OPENING BALANCE	SALARY	SHARE OF PROFIT	NET ADDITIONS/ WITHDRAWAL	CLOSING BALANCE
Shri Ranchodbhai Purshottambhai	5%	0.005	2.875	0.900	0.835	(1.177)	3.433
Shri Ashishbhai Vallabhbhai	40%	0.005	(0.075)	0.900	6.683	(3.563)	3.945
Shri Nareshbhai Vallabhbhai	40%	0.005	10.434	0.900	6.683	(0.449)	17.568
Shri Vallbhbhai Jerambhai	15%		49.480	0.900	2.506	(0.857)	52.028
Total	100%	0.015	62.714	3.600	16.707	(6.046)	76.975

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		76.990	62.729	63.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		76.990	62.729	63.800
LOAN FUNDS
1] Secured Loans		118.994	103.480	97.521
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		118.994	103.480	97.521
DEFERRED TAX LIABILITIES		0.512	0.147	0.147
TOTAL		196.496	166.356	161.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.510	17.299	17.361
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	228.769	255.408	118.086
	Sundry Debtors	133.318	107.045	66.589
	Cash & Bank Balances	0.917	2.658	0.430
	Other Current Assets	11.853	3.665	2.126
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		374.857	368.776	187.231
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	187.874	219.425	42.741
	Provisions	8.997	0.294	0.383
Total Current Liabilities		196.871	219.719	43.124
Net Current Assets		177.986	149.057	144.107
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		196.496	166.356	161.468

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	813.685	690.794	516.149
	Other Income	0.235	0.210	0.271
	TOTAL (A)	813.920	691.004	516.420
Less	EXPENSES
	COST OF GOODS SOLD
	- Raw Materials Consumed (Schedule - II)	690.093	551.376	373.745
	- Manufacturing Expenses Labour Charges (Schedule - III)	148.172	112.534	65.125
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(91.952)	(31.969)	27.745
	Salary to Partner	3.600	3.600	3.200
	Sales and Administrative Expenses	24.350	20.737	13.821
	TOTAL (B)	774.263	656.278	483.636
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	39.657	34.726	32.784
Less	FINANCIAL EXPENSES (D)	10.849	8.546	8.704
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	28.808	26.180	24.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.784	2.336	2.570
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	26.024	23.844	21.510
Less	TAX (H)	9.317	8.100	6.700
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	16.707	15.744	14.810

The above information has been parted by Mr. Mr. Sasi (Manager)

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.05	2.28	2.87
Operating Profit Margin (PBIDT/Sales)	(%)	4.87	5.03	6.35
Return on Total Assets (PBT/Total Assets}	(%)	6.62	6.18	10.51
Return on Investment (ROI) (PBT/Networth)		0.34	0.38	0.34
Debt Equity Ratio (Total Debt /Networth)		1.55	1.65	1.53
Current Ratio (Current Asset/Current Liability)		1.90	1.68	4.34

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	63.800	62.729	76.990
Reserves & Surplus	0.000	0.000	0.000
Net worth	63.800	62.729	76.990
long-term borrowings	97.521	103.480	118.994
Short term borrowings	0.000	0.000	0.000
Total borrowings	97.521	103.480	118.994
Debt/Equity ratio	1.529	1.650	1.546

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	516.149	690.794	813.685
		33.836	17.790

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	516.149	690.794	813.685
Profit	14.810	15.744	16.707
	2.87%	2.28%	2.05%

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	Yes
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	No
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	No
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	No
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

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.

FIXED ASSETS

SURAT

• Plot at Land at Boradia
• Factory Premises
• Office Premises at Patwa Building
• Factory at Navarang
• Furniture and Fixture
• Motor Car (GJ-5-CD-2520)
• Motor Car (GJ-5-CM-8802) Honda City
• Motor Car (FJ-05-JH-8802) Fortuner
• Electric Weighing Machine
• Acqua Guard Machine
• Laser Machine
• Diamond Scanner Machine
• G Scanner Machine
• Water Filter
• Bruting Machine
• Capacitor Machine
• Furniture (Snehmudra)
• Air Conditioner (S/Mudra)
• Electric Fitting (S/Mudra)

MUMBAI

• Fire Control Equipment
• Air Conditioner
• Computer
• Electric Weighing Machine
• Intercom System
• Motor Car
• Godrej Safe
• Printer Machine

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.65.04
UK Pound	1	Rs.99.58
Euro	1	Rs.71.75

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KAS
Report Prepared by :	SUJ

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
--PROFITABILITY	1~10	4
--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	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		44

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.