MIRA INFORM REPORT

Report No. :	340023
Report Date :	11.09.2015

IDENTIFICATION DETAILS

Name :	K. CHANDRAKANT AND CO INTERNATIONAL PRIVATE LIMITED
Registered Office :	AE/6011, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra
Tel. No.:	91-22-43434242
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	30.05.2011
Com. Reg. No.:	11-218034
Capital Investment / Paid-up Capital :	Rs. 225.558 Million
CIN No.: [Company Identification No.]	U28112MH2011PTC218034
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECK3555D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Diamonds.
No. of Employees :	442 (In Permanent:42 and Contract: 400)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a success of a partnership concern set up in the year 1966 as “K. Chandrakant and Company”. In May 2011 it got reconstituted as a Private Limited Company. It is an established company having a satisfactory track record. Rating sound financial and operational risk profile marked by decent liquidity position of the company. Rating is constrained on high working capital intensity of business and fluctuation of prices and foreign exchange rate in gems and jewellery industry. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings 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	ICRA
Rating	Long term fund based limit = BB+
Rating Explanation	Moderate risk of default
Date	September 2014

Rating Agency Name	ICRA
Rating	Short term fund based limit = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	September 2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Manoj Yadav
Designation :	Accounts and Finance Manager
Contact No.:	91-22-43434242
Date :	05.09.2015

LOCATIONS

Registered Office :	AE/6011, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-43434242 [50 Lines]
Fax No.:	91-22-43434243/ 44
E-Mail :	manoj@kchandrakant.com info@kchandrakant.com
Area :	2300 Sq. ft.
Location :	Owned
Locality :	Commercial
Factory :	Located at: · Surat
Account Finance Office :	Aw/7010, Bharat Diamond Bourse, Bandra Kurla Complec, Bandra (East), Mumbai – 400051, Maharashtra, India
Location :	Owned
Branch Office :	307, Mehta Bhavan, Charni Road, Mumbai – 400004, Maharashtra, India
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Jatin Chandrakant Dosh

Designation :

Director

Address :

198, Veena Apartments,, 301 - 302, Walkeshwar Road,, Mum

Date of Birth/Age :

28.05.1967

Date of Appointment :

30.05.2011

PAN No.:

AADPD1683R

DIN No.:

02924396

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	Company/ LLP Status	Defaulting status
1	U36912MH2010PTC208349	PRITI GEMS EXPORTS PRIVATE LIMITED	Director	28/09/2010	28/09/2010	Active	NO
2	U28112MH2011PTC218034	K. CHANDRAKANT AND CO. INTERNATIONAL PRIVATE LIMITED	Director	30/05/2011	30/05/2011	Active	NO
3	U74999MH2015PTC265331	LEMON GRASS PRODUCTIONS PRIVATE LIMITED	Director	09/06/2015	09/06/2015	Active	NO

Name :

Mr. Vipul Kantilal Shah

Designation :

Director

Address :

71, Purnima Apartment, 7th Floor,, Ridce Road, Walkeshwar,, Mumbai, 400006, Maharashtra, India

Date of Birth/Age :

05.10.1965

Date of Appointment :

30.05.2011

PAN No.:

AAGPS2658N

DIN No.:

02924434

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	Company/ LLP Status	Defaulting status
1	U36912MH2010PTC208349	PRITI GEMS EXPORTS PRIVATE LIMITED	Director	28/09/2010	28/09/2010	Active	NO
2	U67120MH1992PTC069735	ACE REALTIES PRIVATE LIMITED	Director	30/09/2011	08/12/2010	Active	NO
3	U28112MH2011PTC218034	K. Chandrakant & Co. International Private Limited	Director	30/05/2011	30/05/2011	Active	NO

Name :

Mr. Sachin Chandrakant Doshi

Designation :

Director

Address :

Flat No 301, Veena Appartment,, Walkeshwar Road, , Mumbai, 400006, Maharashtra, India

Date of Birth/Age :

21.09.1969

Date of Appointment :

30.05.2011

PAN No.:

AACPD8992L

DIN No.:

03454152

Name :

Mr. Niren Kantilal Shah

Designation :

Director

Address :

2001/A, Chandanbala, R.R.Thakkar Marg,, Malabar Hill,, Mumbai, 400006, Maharashtra, India

Date of Birth/Age :

16.03.1970

Date of Appointment :

30.05.2011

PAN No.:

AAPPS5124G

DIN No.:

03454166

Other Directorship :

KEY EXECUTIVES

Name :	Mr. Manoj Yadav
Designation :	Accounts and Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Kantilal Dolchand Shah	1650000
Chandrakant Surajmal Doshi	1650000
Chhabildas Amulakhbhai Shah	1650000
Sanjivkumar Chhabildas Shah	1284800
Niren Kantilal Shah	1100000
Vipul Kantilal Shah	1282600
Jatin Chandrakant Doshi	1282600
Sachin Chandrakant Doshi	1100000
Taha Jewellery FZE, UAE	2555800
Total	13555800

Names of Preference Shareholders	No. of Shares
Kantilal Dolchand Shah	1800000
Chandrakant Surajmal Doshi	1800000
Chhabildas Amulakhbhai Shah	1800000
Sanjivkumar Chhabildas Shah	800000
Niren Kantilal Shah	600000
Vipul Kantilal Shah	800000
Jatin Chandrakant Doshi	800000
Sachin Chandrakant Doshi	600000
Total	9000000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.17
Directors or relatives of directors	86.83
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Diamonds.

Products :

ITC Code No.	Product Descriptions
71021000	Diamonds

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Diamonds

Countries :

USA

Imports :

Products :

Rough Diamonds

Countries :

Belgium

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Swadip Gems BVBA - Belgium
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers, Retails and Others

Reference:	Kiran Gems Private Limited - Mumbai
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

442 (In Permanent:42 and Contract: 400)

Bankers :

Bank Name:	Corporation Bank
Branch:	Bharat Diamond Bourse, C - 1, West Core, G Block, Bandra Kurla Complex, Bandra – (East), Mumbai , Mah Arashtra, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Loans repayable on demand from banks	NA	446.514
Total	NA	446.514

Auditors :
Name :	Sampat Mehta and Associates Chartered Accountants
Address :	C/O Bhansali and Jhaveri, 11 A, Silk House, 630, J S Seth Road, Near Metro, Mumbai - 400002, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFS1266J
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives : (As On 31.03.2014)	· Swadip Gems B.V.B.A · Saral Diamond INC · Bellstar Jewellery LLC · Priti Gems Exports Private Limited · K Chandrakant and Sons · K Chandrakant Exports

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 225.558 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
14,000,000	Equity Shares	Rs. 10/- each	Rs. 140.000 Million
9,000,000	Preference Shares	Rs. 10/- each	Rs. 90.000 Millions
	Total		Rs. 230.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,555,800	Equity Shares	Rs. 10/- each	Rs. 135.558 Million
9,000,000	Preference Shares	Rs. 10/- each	Rs. 90.000 Million
	Total		Rs. 225.558 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	225.558	225.558	216.69
(b) Reserves & Surplus	347.425	319.385	254.237
(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)	572.983	544.943	470.927
(3) Non-Current Liabilities
(a) Long-term borrowings	127.431	129.747	30.000
(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	2.502	2.174	2.542
Total Non-current Liabilities (3)	129.933	131.921	32.542
(4) Current Liabilities
(a) Short term borrowings	511.915	446.514	698.075
(b) Trade payables	803.616	684.928	714.406
(c) Other current liabilities	11.526	3.992	60.254
(d) Short-term provisions	0.000	0.000	30.000
Total Current Liabilities (4)	1327.057	1135.434	1502.735
TOTAL	2029.973	1812.298	2006.204
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	132.593	151.458	166.555
(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	42.105	36.915	0.000
(c) Deferred tax assets (net)	8.641	4.348	2.093
(d) Long-term Loan and Advances	0.529	1.029	29.618
(e) Other Non-current assets	12.723	14.786	0.000
Total Non-Current Assets	196.591	208.536	198.266
(2) Current assets
(a) Current investments	0.000	0.000	34.187
(b) Inventories	811.353	335.237	271.632
(c) Trade receivables	938.100	1212.976	1377.426
(d) Cash and cash equivalents	75.484	52.452	112.735
(e) Short-term loans and advances	8.445	3.097	11.958
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1833.382	1603.762	1807.938
TOTAL	2029.973	1812.298	2006.204

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	3486.370	3056.373	2850.000 [Approx.]
		Other Income	3.072	5.585	NA
		TOTAL (A)	3489.442	3061.958	NA
Less	EXPENSES
		Cost of Materials Consumed	1971.045	1340.568
		Purchases of Stock-in-Trade	1736.002	1492.335
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(476.116)	(63.605)
		Employees benefits expense	19.844	15.993
		Other expenses	139.000	179.875
		TOTAL (B)	3389.775	2965.166	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		99.667	96.792	(Financial and Depreciation Expenses)
Less	FINANCIAL EXPENSES (D)		39.156	40.024
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.511	56.768
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.200	13.705
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		42.311	43.063	36.028
Less	TAX (H)		13.706	13.388	13.907
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		28.605	29.675	22.121
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods calculated on FOB basis		1772.662	2236.697
		Deemed Export of Goods calculated on FOB basis		269.928	129.069
	TOTAL EARNINGS		NA	2042.590	2365.766
	Earnings Per Share (Rs.)		2.11	2.19	0.98

Expected Sales (2015-2016): Rs. 3500.000 Million

The above information has been parted by Mr. Manoj Yadav [Accounts and Finance Manager]

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	0.000	0.000
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	NA	(90.309)	(10.331)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.82	0.97	NA
Operating Profit Margin (PBDIT/Sales)	(%)	2.86	3.17	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.14	2.43	1.80
Return on Investment (ROI) (PBT/Networth)		0.07	0.08	0.08
Debt Equity Ratio (Total Debt/Networth)		1.12	1.06	1.55
Current Ratio (Current Asset/Current Liability)		1.38	1.41	1.20

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	216.690	225.558	225.558
Reserves & Surplus	254.237	319.385	347.425
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	470.927	544.943	572.983
Long-term borrowings	30.000	129.747	127.431
Short term borrowings	698.075	446.514	511.915
CURRENT MATURITIES OF LONG-TERM DEBTS	0.000	0.000	0.000
Total borrowings	728.075	576.261	639.346
Debt/Equity ratio	1.546	1.057	1.116

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	3056.373	3486.370
		14.069

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)
Sales	3056.373	3486.370
Profit	29.675	28.605
	0.97%	0.82%

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

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10311978	11/07/2013 *	1,000,000,000.00	CORPORATION BANK	BHARAT DIAMOND BOURSE, C - 1, WEST CORE, G BLOCK, BANDRA KURLA COMPLEX, BANDRA – (EAST), MUMBAI , MAH ARASHTRA, INDIA	B80231020

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Loans and advances from related parties	NA	129.747
Total	NA	129.747

CHANGE OF ADDRESS:

The Registered Office of the Company has been shifted from 307, Mehta Bhavan, 311, Charni Road, Mumbai – 400004, Maharashtra, India to the present address w.e.f.23.03.2012.

CORPORATE INFORMATION

Subject was incorporated upon conversion of erstwhile firm K Chandrakant and Co into a private limited company under provisions of Part IX of the Companies Act, 1956 with effect from May 30, 2011 vide certificate of incorporation No U28112MH2011PTC218034 2011-12 issued by the Registrar of Companies, Maharashtra, Mumbai. Upon conversion the Company has taken over all the assets and liabilities of the erstwhile firm at its respective book value as on May 28, 2011 and issued Equity Shares to the Partners of the firm against their Fixed / Current capital in the firm.

FIXED ASSETS:

· Land

· Buildings

· Other Building

· Plant and Equipment

· Factory Equipment’s

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Other Equipment’s

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.66.58
UK Pound	1	Rs.102.29
Euro	1	Rs.74.71

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAS
Report Prepared by :	ARC

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	YES
--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	--

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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.