MIRA INFORM REPORT

Report Date :

15^th May, 2006

IDENTIFICATION DETAILS

Name :	MUDRA LIFESTYLE LIMITED
Formerly known as:	MUDRA TEXTILES PRIVATE LIMITED
Registered Office :	156, Shiv Shakti Industrial Estate, III Phase, Andheri Kurla Road, Sakinaka, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	31.03.1997
CIN No.:	U17110MH1997PTC106945
Com. Reg. No.:	11-106945
TAN No.: (Tax Deduction & Collection Account No.)	MUMM21138F
PAN No.: (Permanent Account No.)	AACCM6461E
Legal Form :	A Private Limited Liability Company
Line of Business :	Manufacturer of Textile Products

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. General financial position is moderate. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms and conditions

LOCATIONS

Registered Office/ Head Office/ Factory :	156, Shiv Shakti Industrial Estate, III Phase, Andheri Kurla Road, Sakinaka, Andheri (East), Mumbai-400059, Maharashtra
Tel. No.:	91-22-28592703
Fax No.:	91-22-28506115
E-Mail :	mudrasyn@vsnl.com
Website:	http://www.mudralifestyle.com

DIRECTORS

Name :	Mr. Murari B. Agarwal
Designation :	Manging Director
Address :	703-704, Minaxi Apartments, Filmcity Road, Gokuldham, Goregoan (East), Mumbai-400063
Date of Birth/Age :	14.11.1957
Date of Appointment :	31.03.1997
Name :	Mr. Ravindra B. Agarwal
Designation :	Director
Address :	803-804, Orchid Building, Vasant Valley, Malad (East), Near Din Doshi Depot, Mumbai-400098, Maharashtra
Date of Birth/Age :	20.12.1960
Date of Appointment :	31.03.1997
Name :	Mr. Narendra M. Agarwal
Designation :	Director
Address :	602-A Wing, Eden III, Hiranandani Garden, Powai, Andheri (East), Mumbai-400076, Maharashtra
Date of Birth/Age :	08.01.1961
Date of Appointment :	31.03.1997

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Murarilal B. Agarwal	2,944,901
Mr. Ravindra B. Agarwal	3,320,400
Mr. Narendra M. Agarwal	1,858,389
Mr. Vishwambharlal K. Bhoot	753,090
V. K. Beswal & Company	10
V. K. Beswal H.U.F.	10
Mrs. Ramdulari Garg	10
Mr. Vimal Mithal	10
Mrs. Bindu Garg	10
Mr. Shivhari Garg	10
Mr. Banarsidas Garg	10
Mrs. Neena Garg	10
Total	8,876,860

BUSINESS DETAILS

Line of Business :	Manufacturer of Textile Products
Products :	Shirtings & Suitings, Pyjamas, Skirts etc.

GENERAL INFORMATION

Bankers :

V State Bank of India, Nhava Sheva

V State Bank of India, Daman

V State Bank of India, Sahar Branch

V The Bharat Co-operative Bank, Mumbai

V Central Bank of India

V HDFC Bank

Facilities:

Secured Loans:
(Term loan) State Bank of India	35.003	5.981
Cash Credit- State Bank of India:
In foreign Currency	-	17.876
In INR	116.663	3.624
GE Countrywide Con. Fin. Service	2.710	0.433
Maruti Countrywide Auto Fin. Service	0.162	-
Countrywide Maruti Fin. Service	0.279	-
HDFC Car loan	0.422	-
ICICI Home Finance Co. Ltd.	4.667	-
Total	160.109	27.915
Unsecured loans:
From Directors/ Shareholders	9.963	3.703
From Friends and Relatived	0.827	4.656
Total	10.790	8.359

Banking Relations :	Satisfactory
Auditors :	V. K. Beswal & Associates Chartered Accountant
Address:	408/410, Rewa Chambers, 31 New Marine Lines, Mumbai-400020, Maharashtra
Tel. No.:	91-22-22065656/22095656
Associates:	V Mudra Synthetics Private Limited V M/s. Olive Tex Silk Mills V M/s. Mudra Synthetics Private Limited V M/s. Picanova Fabrics Private Limited V M/s. Mudra Exports (India)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
26,010,000	Equity Shares	Rs. 10 each	Rs. 260.100 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,876,860	Equity Shares	Rs. 10 each	Rs. 88.768 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		88.768	7.063	7.063
2] Share Application Money		-	14.601	9.600
3] Reserves & Surplus		29.965	3.492	1.365
NETWORTH		118.733	25.156	18.028
LOAN FUNDS
1] Secured Loans		160.109	27.915	14.519
2] Unsecured Loans		10.791	8.358	2.884
TOTAL BORROWING		170.900	36.273	17.403
DEFERRED TAX LIABILITIES		3.837	1.436	0.755
TOTAL		293.470	62.865	36.186
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		100.155	20.573	16.160
Capital work-in-progress
INVESTMENT		-	-	-
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	200.139	43.608	28.287
	Sundry Debtors	0.276	0.002	0.001
	Cash & Bank Balances	20.731	5.446	1.216
	Loans & Advances	82.976	22.703	24.020
Total Current Assets		312.122	71.759	53.524
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	114.707	28.841	33.399
	Provisions	4.155	0.710	0.210
Total Current Liabilities		118.862	29.551	33.609
Net Current Assets		193.260	42.208	19.915
MISCELLANEOUS EXPENSES		0.055	0.083	0.111
TOTAL		293.470	62.865	36.186

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	371.348	119.348	92.777
Profit/(Loss) Before Tax	31.323	3.308	2.329
Provision for Taxation	2.450	0.500	0.210
Profit/(Loss) After Tax	28.873	2.808	2.119
Total Expenditure	400.221	122.156	94.896

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	7.77	2.77	2.28
Net Profit Margin (PBT/Sales)	(%)	9.21	2.84	2.92
Return on Total Assets (PBT/Total Assets}	(%)	7.60	3.58	3.34
Return on Investment (ROI) (PBT/Networth)		0.26	0.13	0.13
Debt Equity Ratio (Total Liability/Networth)		2.44	2.62	2.83
Current Ratio (Current Asset/Current Liability)		2.62	2.43	1.59

LOCAL AGENCY FURTHER INFORMATION

About us:

Mudra Lifestyle Limited is a Mumbai based integrated textile company with an annual turnover of over Rs. 100 Crores with core competencies in

• weaving,
• processing and
• garmenting.

Mudra Group started in the year 1986 and has witnessed healthy growth in the last 20 years with a forward integration to fabric processing and garment manufacturing.

Equipped with state-of-art design and manufacturing facilities in and around Mumbai, Mudra Group provides total solution from Weaving to Garmenting.

Fixed Assets:

Land & Building, Plant & Machinery, Electric Installation, Crane, Furniture & Fixture, Office appliances, Computer, Generator, Air conditioners, Fax machine, Zerox machine, Motor Car, Motor Bike

Infrastructure:

Mudra Lifestyle boasts of one of the most modern processing and finishing houses in India. We have facilities spread over 9 units. Our state-of-art machinery includes Sulzer, Picanol, Rapier, Vematex & Somet looms.

We also have two computer aided design studios to develop numerous designs every day.

We have the installed capacity to weave over 12 million metres of grey cloth, process around 30 million metres of grey fabric and make over 1.5 million pieces of garments.

Products:

For Womens

Mudra Lifestyles' range of women's wear includes Skirts, blouses, shirts, trousers, shorts & pyjamas in latest range of designs, colours and patterns. We work actively with our customers to develop special designs to suit their specific requirements

For Mens

Mudra Lifestyle develops trendiest designs of fabrics for Shirtings and suitings at its state of the art design studio. The fabrics are then woven using most modern technologies and undergo specialised treatments and processes to provide durability and comfort to the wearer.

For Kids

Mudra Lifestyle develops trendiest designs of fabrics for shirts, skirts and ensembles at its state of the art design studio. The fabrics are then woven using most modern technologies and undergo specialised treatments and processes to provide durability and comfort to the wearer. Special attention is paid to see that kid's fabrics are made durable to withstand the tough wear & tear.

Business:

In current financial year, the Company has taken over the businesses of M/s. East Coast Polytex, M/s. Mudra Exports (India) and M/s. Mudra Impex on Slump Sale Basis. Takeover of

Partnership firms was done on 1^st October 2004. Shares have been issued instead of cash for the said transaction

Contact Us:

149, Shiv Shakti Industrial Estate,
III Phase, Andheri Kurla Road,
Saki Naka, Andheri (E),
Mumbai - 400059,
Maharashtra,
India.

Tel.: +91 - 22 - 2859-2703 / 5691-6321
Fax: +91 - 22 - 2850-6115
email: contact@mudralifestyle.com

FORM NO. 8 Registration No of Company: 11-106945 THE COMPANIES ACT, 1956 Nominal Capital: FORM NO. 8 Filing Fees: Particulars of Charges created by a company registered in India (Pursuant to sections 125/127/135) Name of the Company Mudra Textiles Private Limited Presented by State Bank of India, Ingl, Finance Branch, Andheri (East), Mumbai
Date and description of instrument creating the change	Agreement of loan for overall limit F C-1 Agreement of Hypothecation of goods and assets F C-2 Letter regarding the grant of individual limits within the overall limit F C-5 All the above agreements are dated 10.06.2002 and executed for the creation of a single charge
Amount secured by the charge/amount owing on the securities of charge	Rs. 16.000 millions only Demand Cash Credit: Rs. 7.500 millions (Hypo. Of Stocks & bookdebts) Medium Term Loan: Rs. 8.500 millions One time import LC: Rs. (8.000 millions) (Capital goods) Total Rs. 16.000 millions
Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypo. Of the borrower entire goods, movable & other assets present & future including documents of title to goods and other assets such as bookdebts, outstanding moneys, receivables, including receivables way of cash assistance and/or cash incentives scheme or any other scheme. Claims including claims by way refund of customes/excise duties under the Duty drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, all machinery present & future of such for satisfactory to the bank. Machinery such as Wamate Weaving Machines, Sulzer Projectile, Dooms Warping Machine, Rishwin Make 125 KVA Service Controlled Stabilizer
Gist of the terms and conditions and extent and operation of the charge.	R.O.I. DCC: 2.25% over SBAR at present 13.75% p.a. MTL: 1.75% over SBMTLR at present 13.75% p.a. One time Import LC – As per FEDAI Rules Repayment – Term Loan 20 Qtrly. Installments of Rs. 0.425 million each Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 40% Bookdebts/ Receivables: 40% Land & Building/ Plant & Machinery: Avg. 50%
Name and Address and description of the person entitled to the charge.	State Bank of India Industrial Finance Branch Andheri (East) Mumbai-400069
Date and brief description of instrument modifying the charge	Supplementary Agreement of loan for increase in the overall limit (Form C 2-A) Supplementary Agreement of Hypothecations of goods and assets for increase in overall limit Letter regarding the grant of individual limits within the overall limit (Form C 5) All the above agreements are dated 14.02.2005 and executed for the creation of a single modification
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 1.6.2002 for Rs. 16.000 millions. Firstly modified on 1.6.2002 by giving an additional collateral security. Secondly modified on 3.11.2003 for Rs. 3.500 millions. Thirdly modified on 3.11.2003 by giving an additional collateral security. Now by the present modification Dated 14.2.2005 the limit increased from Rs. 35.400 millions to Rs. 70.200 millions. The increased limits are as follows: Demand Cash Credit Rs. 50.000 million (Sub limit for Bookdebts) (Rs. 35.000 million) Term Loan I Rs. 4.200 million Term Loan II Rs. 16.000 million One time letter of credit (Rs. 10.100 million) Import Total Rs. 70.200 million Rate of Interest: Demand Cash Credit: 2.50% over SBAR presently 12.75% p.a. Term Loan II : 2% over SBAR presently 12.25% p.a. One Time Letter of Credit (Import) (As per FEDAI Rules) Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 33.33% Bookdebts/ Receivables: 50% Land & Building/ Plant & Machinery: 10%
Name of the Company Mudra Textiles Private Limited Presented by State Bank of India, Ingl, Finance Branch, Andheri (East), Mumbai
Date and description of instrument creating the change	Agreement of loan for overall limit F C-1 Agreement of Hypothecation of goods and assets F C-2 Letter regarding the grant of individual limits within the overall limit F C-5 All the above agreements are dated 10.06.2002 and executed for the creation of a single charge
Amount secured by the charge/amount owing on the securities of charge	Rs. 16.000 millions only Demand Cash Credit: Rs. 7.500 millions (Hypo. Of Stocks & bookdebts) Medium Term Loan: Rs. 8.500 millions One time import LC: Rs. (8.000 millions) (Capital goods) Total Rs. 16.000 millions
Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypo. Of the borrower entire goods, movable & other assets present & future including documents of title to goods and other assets such as bookdebts, outstanding moneys, receivables, including receivables way of cash assistance and/or cash incentives scheme or any other scheme. Claims including claims by way refund of customes/excise duties under the Duty drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, all machinery present & future of such for satisfactory to the bank. Machinery such as Wamate Weaving Machines, Sulzer Projectile, Dooms Warping Machine, Rishwin Make 125 KVA Service Controlled Stabilizer
Gist of the terms and conditions and extent and operation of the charge.	R.O.I. DCC: 2.25% over SBAR at present 13.75% p.a. MTL: 1.75% over SBMTLR at present 13.75% p.a. One time Import LC – As per FEDAI Rules Repayment – Term Loan 20 Qtrly. Installments of Rs. 0.425 million each Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 40% Bookdebts/ Receivables: 40% Land & Building/ Plant & Machinery: Avg. 50%
Name and Address and description of the person entitled to the charge	State Bank of India Industrial Finance Branch Andheri (East) Mumbai-400069
Date and brief description of instrument modifying the charge	No instruments. Memorandum of deposits for creation of charge for Term Loan/ Overall limit dated 1.6.2002
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 1.6.2002 for Rs. 16.000 millions. Now by present modification dated 1.6.2002 the company offered an additional security over its immovable properties are as under: ALL THAT piece of land thereon known as Surve No. 222, Plinth F Row, Raj Rajeshwari compound, P.O. Sonali, Tal. Bhiwandi, Dist. Thane-421302, Maharashtra, Admeasuring 1031.19 mtrs. of thereabout and structure thereon bounded as follows, that is to say: On or towards North: 30 ft. wide private road within survey No. 222 On or towards South: 5 ft. wide lane within survey No. 222 On or towards East: Open area in Hissa 6, Survey No. 196 On or towards West: 30 ft. wide private road within survey No. 222

Name of the Company Mudra Textiles Private Limited Presented by State Bank of India, Ingl, Finance Branch, Andheri (East), Mumbai
Date and description of instrument creating the change	Agreement of loan for overall limit F C-1 Agreement of Hypothecation of goods and assets F C-2 Letter regarding the grant of individual limits within the overall limit F C-5 All the above agreements are dated 10.06.2002 and executed for the creation of a single charge
Amount secured by the charge/amount owing on the securities of charge	Rs. 16.000 millions only Demand Cash Credit: Rs. 7.500 millions (Hypo. Of Stocks & bookdebts) Medium Term Loan: Rs. 8.500 millions One time import LC: Rs. (8.000 millions) (Capital goods) Total Rs. 16.000 millions

Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypo. Of the borrower entire goods, movable & other assets present & future including documents of title to goods and other assets such as bookdebts, outstanding moneys, receivables, including receivables way of cash assistance and/or cash incentives scheme or any other scheme. Claims including claims by way refund of customes/excise duties under the Duty drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, all machinery present & future of such for satisfactory to the bank. Machinery such as Wamate Weaving Machines, Sulzer Projectile, Dooms Warping Machine, Rishwin Make 125 KVA Service Controlled Stabilizer
Gist of the terms and conditions and extent and operation of the charge.	R.O.I. DCC: 2.25% over SBAR at present 13.75% p.a. MTL: 1.75% over SBMTLR at present 13.75% p.a. One time Import LC – As per FEDAI Rules Repayment – Term Loan 20 Qtrly. Installments of Rs. 0.425 million each Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 40% Bookdebts/ Receivables: 40% Land & Building/ Plant & Machinery: Avg. 50%
Name and Address and description of the person entitled to the charge	State Bank of India Industrial Finance Branch Andheri (East) Mumbai-400069
Date and brief description of instrument modifying the charge	No instruments. Memorandum of deposits for creation of charge for Term Loan/ Overall limit where the initial charge is created by way of mortgage by deposit of title deeds. (Form C 10) dated 3.11.2003
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 1.6.2002 for Rs. 16.000 millions. Now by present modification dated 1.6.2002 the company offered an additional security over its immovable properties are as under: ALL THAT piece of land thereon known as Surve No. 222, Plinth F Row, Raj Rajeshwari compound, P.O. Sonali, Tal. Bhiwandi, Dist. Thane-421302, Maharashtra, Admeasuring 1031.19 mtrs. of thereabout and structure thereon bounded as follows, that is to say: On or towards North: 30 ft. wide private road within survey No. 222 On or towards South: 5 ft. wide lane within survey No. 222 On or towards East: Open area in Hissa 6, Survey No. 196 On or towards West: 30 ft. wide private road within survey No. 222

Name of the Company Mudra Textiles Private Limited Presented by State Bank of India, Ingl, Finance Branch, Andheri (East), Mumbai
Date and description of instrument creating the change	Agreement of loan for overall limit F C-1 Agreement of Hypothecation of goods and assets F C-2 Letter regarding the grant of individual limits within the overall limit F C-5 All the above agreements are dated 10.06.2002 and executed for the creation of a single charge
Amount secured by the charge/amount owing on the securities of charge	Rs. 16.000 millions only Demand Cash Credit: Rs. 7.500 millions (Hypo. Of Stocks & bookdebts) Medium Term Loan: Rs. 8.500 millions One time import LC: Rs. (8.000 millions) (Capital goods) Total Rs. 16.000 millions

Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypo. Of the borrower entire goods, movable & other assets present & future including documents of title to goods and other assets such as bookdebts, outstanding moneys, receivables, including receivables way of cash assistance and/or cash incentives scheme or any other scheme. Claims including claims by way refund of customes/excise duties under the Duty drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, all machinery present & future of such for satisfactory to the bank. Machinery such as Wamate Weaving Machines, Sulzer Projectile, Dooms Warping Machine, Rishwin Make 125 KVA Service Controlled Stabilizer
Gist of the terms and conditions and extent and operation of the charge.	R.O.I. DCC: 2.25% over SBAR at present 13.75% p.a. MTL: 1.75% over SBMTLR at present 13.75% p.a. One time Import LC – As per FEDAI Rules Repayment – Term Loan 20 Qtrly. Installments of Rs. 0.425 million each Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 40% Bookdebts/ Receivables: 40% Land & Building/ Plant & Machinery: Avg. 50%
Name and Address and description of the person entitled to the charge	State Bank of India Industrial Finance Branch Andheri (East) Mumbai-400069
Date and brief description of instrument modifying the charge	NA
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

Name of the Company Mudra Textiles Private Limited Presented by State Bank of India, Ingl, Finance Branch, Andheri (East), Mumbai
Date and description of instrument creating the change	Agreement of loan for overall limit F C-1 Agreement of Hypothecation of goods and assets F C-2 Letter regarding the grant of individual limits within the overall limit F C-5 All the above agreements are dated 10.06.2002 and executed for the creation of a single charge
Amount secured by the charge/amount owing on the securities of charge	Rs. 16.000 millions only Demand Cash Credit: Rs. 7.500 millions (Hypo. Of Stocks & bookdebts) Medium Term Loan: Rs. 8.500 millions One time import LC: Rs. (8.000 millions) (Capital goods) Total Rs. 16.000 millions

Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypo. Of the borrower entire goods, movable & other assets present & future including documents of title to goods and other assets such as bookdebts, outstanding moneys, receivables, including receivables way of cash assistance and/or cash incentives scheme or any other scheme. Claims including claims by way refund of customes/excise duties under the Duty drawback Credit Scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, all machinery present & future of such for satisfactory to the bank. Machinery such as Wamate Weaving Machines, Sulzer Projectile, Dooms Warping Machine, Rishwin Make 125 KVA Service Controlled Stabilizer
Gist of the terms and conditions and extent and operation of the charge.	R.O.I. DCC: 2.25% over SBAR at present 13.75% p.a. MTL: 1.75% over SBMTLR at present 13.75% p.a. One time Import LC – As per FEDAI Rules Repayment – Term Loan 20 Qtrly. Installments of Rs. 0.425 million each Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 40% Bookdebts/ Receivables: 40% Land & Building/ Plant & Machinery: Avg. 50%
Name and Address and description of the person entitled to the charge	State Bank of India Industrial Finance Branch Andheri (East) Mumbai-400069
Date and brief description of instrument modifying the charge	Supplementary Agreement of loan for increase in the overall limit (Form C 2-A) Supplementary Agreement of Hypothecations of goods and assets for increase in overall limit Letter regarding the grant of individual limits within the overall limit (Form C 5) All the above agreements are dated 14.02.2005 and executed for the creation of a single modification
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 1.6.2002 for Rs. 16.000 millions. Firstly modified on 1.6.2002 by giving an additional collateral security. Secondly modified on 3.11.2003 for Rs. 3.500 millions. Thirdly modified on 3.11.2003 by giving an additional collateral security. Now by the present modification Dated 14.2.2005 the limit increased from Rs. 35.400 millions to Rs. 70.200 millions. The increased limits are as follows: Demand Cash Credit Rs. 50.000 million (Sub limit for Bookdebts) (Rs. 35.000 million) Term Loan I Rs. 4.200 million Term Loan II Rs. 16.000 million One time letter of credit (Rs. 10.100 million) Import Total Rs. 70.200 million Rate of Interest: Demand Cash Credit: 2.50% over SBAR presently 12.75% p.a. Term Loan II : 2% over SBAR presently 12.25% p.a. One Time Letter of Credit (Import) (As per FEDAI Rules) Margin: Raw materials: 25% Stocks in Process: 40% Finished goods: 33.33% Bookdebts/ Receivables: 50% Land & Building/ Plant & Machinery: 10%

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 records 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.45.30
UK Pound	1	Rs.78.45
Euro	1	Rs.54.88

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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