MIRA INFORM REPORT

Report Date :

23.11.2006

IDENTIFICATION DETAILS

Name :	HERTEX SILK MILLS PRIVATE LIMITED
Registered Office :	Dhana Singh Compound, J.B. Nagar, A.K. Road, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2003
Date of Incorporation :	03.01.1985
Com. Reg. No.:	11-34978
CIN No.: [Company Identification No.]	U17116MH1985PTC034978
TAN No.: [Tax Deduction & Collection Account No.]	MUMH06864E
PAN No.: [Permanent Account No.]	AAACH2356M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Silk and Grey Fabrics

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 :	New Project
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject has been promoted by resourceful and experienced promoters. In absence of latest financials and business details, it would be difficult to assess current financial status of the company. However, in view of long history of payments, the company can be recorded as normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Dhana Singh Compound, J.B. Nagar, A.K. Road, Andheri (East), Mumbai-400059, Maharashtra
Factory 1 :	Plot No. F2/3, MIDC Tarapur Industrial Area, Boisar, Thane, Maharashtra, India
Tel. No.:	91-22-22093159
Fax No.:	91-22-22085694
Factory 2 :	Plot No. 918, MIDC, Sarigam, Taluka Umargaon, District Valsad, Gujarat, India

DIRECTORS

Name :	S. Gurvinder Singh
Designation :	Director
Address :	25/B, Sterling Apartments, Peddar Road, Mumbai-400026, Maharashtra, India
Date of Birth:	18.12.1962
Date of Appointment :	10.12.1986
Name :	Smt. Ramanjit Kaur
Designation :	Director
Address :	25/B, Sterling Apartments, Peddar Road, Mumbai-400026, Maharashtra, India
Date of Birth :	29.08.1969
Date of Appointment :	01.09.1998
Name :	S. Gurcharan Singh
Designation :	Director
Address :	Flat No. 91, Hill Road, Kshitij Apartments, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth :	05.04.1936
Date of Appointment :	01.10.2003

KEY EXECUTIVES

Name :	Heena Kothari & Company Mumbai-400067
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Smt. Gurpeet Kaur	880
S. Harjinder Singh	1180
Smt. Harbans Kaur	1580
S. Gurcharan Singh	1610
Gurcharan Singh HUF	1600
Harjinder Singh HUF	1600
S. Gurvinder Singh	1600
Harnam Textiles & Machines Private Limited	1600
Dhana Singh Synthetics Private Limited	1600
Smt. Ramanjit Kaur	1600
S. Gurvinder Singh HUF	1600
Daltex Silk Mills Private Limited	10
G. M. Knitting Industries Private Limited	10

BUSINESS DETAILS

Line of Business :	Manufacturers of Silk and Grey Fabrics
Products :	Ø Silk Ø Grey Fabrics

GENERAL INFORMATION

Bankers :	Ø Punjab & Sind Bank Andheri, Kalbadevi Ø Bank Of Baroda Andheri, Sarigam
Facilities :	Unsecured Loan from: Ø G. M. Fabrics Private Limited Ø G. M. International

Banking Relations :	Unknown
Auditors :	K. C. Ajmera Chartered Accountants Deshmukh Building, 3^rd Floor, Deshmukh Lane, V.P. Road, Mumbai-400004, India
Tel. No.:	91-23094295
Sister Concerns :	Ø Harnam Textiles and Machines Private Limited Ø Dhana Singh Synnthetics Private Limited Ø Delltex Silk Mills Private Limited Ø G. M. Knitting Industries Private Limited Ø G. M. Silks Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/-each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16470	Equity Shares	Rs.100/-each	Rs.1.647 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2003	31.03.2002
SHAREHOLDERS FUNDS
1] Share Capital		1.647	1.647
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		7.238	7.240
4] (Accumulated Losses)		0.000	0.000
NETWORTH		8.885	8.887
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		8.120	0.000
TOTAL BORROWING		8.120	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		17.007	8.887
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.456	4.956
Capital work-in-progress		0.000	0.000
INVESTMENT		3.450	3.450
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	0.043	0.058
	Other Current Assets	0.000	0.000
	Loans & Advances	1.048	0.423
Total Current Assets		1.091	0.481
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		0.000	0.000
Net Current Assets		1.091	0.481
MISCELLANEOUS EXPENSES		0.010	0.000
TOTAL		17.007	8.887

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2003	31.03.2002
Sales Turnover [including other income]	0.009	0.005
Profit/(Loss) Before Tax	(0.001)	(0.005)
Provision for Taxation	0.000	0.000
Profit/(Loss) After Tax	(0.001)	(0.005)
Total Expenditure	0.017	0.005

KEY RATIOS

PARTICULARS		31.03.2003	31.03.2002
PAT / Total Income	(%)	(11.11)	(100)
Net Profit Margin (PBT/Sales)	(%)	(11.11)	(100)
Return on Total Assets (PBT/Total Assets}	(%)	(0.01)	(0.09)

LOCAL AGENCY FURTHER INFORMATION

Director’s Report:

The Company acquired an Industrial plot at Industrial Area with a view to restore the Company’s activities. The Company has planned to start factory building construction activity in the ensuing year. During the year, under review, the Company did not undertake any commercial activity. The expenses incurred were purely of administrative nature. The Company is hopeful that things would improve in the ensuing future.

In the absence of the commercial surplus, their directors have abstained from declaring dividend.

Loans and Advances from:

Ø Hamam Syntex Private Limited

Ø USL Shinrai Automobiles Limited

Form 8 Particular for creation or modification of charges

Name of the company	Hartex Silk Mills Private Limited
Presented By	Mr. Gurvinder Singh
1) Date and description of instrument creating the change	Goods Security Agreement dated 02.09.2004 executed by Hartex Silk Mills Private Limited. (Hereinafter referred to as “the Borrower”) in favour of Citibank N.A. ( therein and herein after referred to as “the lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total Working Capital Facilities of Rs.10.000 millions.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	First Exclusive Charge on: The whole of movable assets, including stocks of raw materials, goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to and pertains to, ort may hereafter from time to time during the continuance of this security belong to and pertains to , The Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower’s factory, godowns and/or their premises wherever else the same may be situated, stored or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar movable assets in course of transit or delivery to The Borrower and all of The Borrower’s present and future book debts , outstanding monies, receivables, claims, bills, investments, rights to or on movable properties and movable assets forming part of current assets forming part of current assets which are now due owing or payable or belonging to or pertaining to The Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to The Borrower in course of its business and TOGETHER WITH all benefits, advantages and legal incidence thereof …
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend advance to the company, said credit facilities under agreement and declaration by the Company, inter alia, as follows: 1) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said agreement between the Company and the Lender and to comply with the terms & conditions of the said Agreement. 2) The said current assets hypothecated to the Lender by way of first charge in favour of the bank, as security for and be charged with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. Margin – 32% for stocks and 32% for book debts 3) The company to keep the said assets in marketable and good condition and also insured as provided therein. 4) Power of entry, power to take charge and/ or possession of seize, recover, receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said goods; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citibank N.A. Citigroup Centre Bandra Kurla Complex G-Block, Bandra (East) Mumbai-400051.
6) Date and brief description of instrument modifying the charge	Not Applicable
7) 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.	Not Applicable

Form 8 Particular for creation or modification of charges

Name of the company	Hartex Silk Mills Private Limited
Presented By	Mr. Gurvinder Singh
1) Date and description of instrument creating the change	Term Loan agreement dated 02.09.2004 executed by Hartex Silk Mills Private Limited. (thereinafter referred to as “ the Borrower”) in favour of Citibank N.A. (therein and hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan Facilities aggregating to Rs.88.000 millions.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	1. First Exclusive Charge on fixed assets, movable and immovable plant and machinery, Land and Building both present and future, located at Plot No.F-2/3, MIDC Tarapur Industrial Area, District Thane. Which are now due owing or payable or belonging to or pertaining to The Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to The Borrower in the course of its business and TOGETHER WITH al benefits, advantages and legal incidence thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend/ advance to the company, Credit facilities under the said Loan agreement the Company do hereby, inter alia / declares, as follows: 1) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the Loan agreement between the Company and the Lender and to comply with the terms & conditions of the said Loan Agreement 2) The said Assets hypothecated/ mortgage to the Lender as and by way of first charge as security for and be charged with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. 3) The companies to keep the said goods/ property in marketable and good condition and also insured as provided therein. 4) Power of entry, power to take charge and/ or possession of seize, recover, receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said goods; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citibank N.A. Citigroup Centre Bandra Kurla Complex G-Block, Bandra (East) Mumbai-400051.
6) Date and brief description of instrument modifying the charge	Not Applicable
7) 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.	Not Applicable

Form 8 Particular for creation or modification of charges

Name of the company	Hartex Silk Mills Private Limited.
Presented By	Mr. Gurvinder Singh
1) Date and description of instrument creating the change	Composite Hypothecation Agreement dated 29.12.2004 executed by Hartex Silk Mills Private Limited. (Hereinafter referred to as “the Company”) in favour of Citibank N.A. (hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total Working capital facilities for Rs. 42.000 millions which is allocated to group including GM Knitting Industries Private Limited, Dhana Singh Synthetics Private Limited, Hartex Silk Mills Private Limited and GM Silks Private Limited.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of movable assets, including plant and machinery, both present and future, stocks of raw materials, goods in process of manufacture, semi-finished goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to and pertains to, or may hereafter from time to time during the continuance of this security belong to and pertains to , The Company and which are or shall or may be brought into stored or be in or upon or about the Company’s factory, godowns and/or their premises wherever else the same may be situated, stored or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar movable assets in course of transit or delivery to The Company and all of the Company’s present and future book debts , outstanding monies, receivables, claims, bills, investments, rights to or on movable properties and movable assets forming part of current and movable fixed assets which are now owing or payable or belonging to or pertaining to the Company or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to the Company in the course of its business and TOGETHER WITH all benefits, advantages and legal incidence thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend/ advance to the company, Credit facilities under agreement and declaration by the Company, inter alia, as follows: 1) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said agreement between the Company and the Lender and to comply with the terms & conditions of the said Agreement 2) The said current assets and movable fixed assets hypothecated to the Lender by way of first exclusive charge created/ to be created in favour of the bank, as security for and be charged with all repayment of the loan with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. Margin 28% for stocks and 46% on receivables 3) The company to keep the said assets in marketable and good condition and also insured as provided therein. 4) Power of entry, power to take charge and/ or possession of seize, recover, receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said goods; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citibank N.A. Citigroup Centre Bandra Kurla Complex G-Block, Bandra (East) Mumbai-400051.
6) Date and brief description of instrument modifying the charge	Deed of Modification dated 03.05.2005 for enhancement of credit facilities.
7) 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 29.12.2004 for securing Rs.42.000 millions against Hypothecation of stocks, book debts and movable fixed assets. The Bank has now enhanced the limits to the company and has executed new Deed of Modification dated 03.05.2005 for enhancing the limits to Rs. 48.000 millions which is an increase of Rs.6.000 millions, and which represents the combined facility offered to GM Knitting Industries Private Limited, Dhana Singh Synthetics Private Limited, Hartex Silk Mills Private Limited, the total facilities are secured by hypothecation and first exclusive charge on stocks, book debts and plant and machinery forming part of current and fixed assets both present and future. All other terms and conditions remain unchanged.

Form 8 Particular for creation or modification of charges

Name of the company	Hartex Silk Mills Private Limited.
Presented By	Mr. Gurvinder Singh
1) Date and description of instrument creating the change	Composite Hypothecation Agreement dated 29.12.2004 executed by Hartex Silk Mills Private Limited. (Hereinafter referred to as “the Company”) in favour of Citibank N.A. (hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total Working capital facilities for Rs. 42.000 millions which is allocated to group including GM Knitting Industries Private Limited, Dhana Singh Synthetics Private Limited, Hartex Silk Mills Private Limited and GM Silks Private Limited.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of movable assets, including plant and machinery, both present and future, stocks of raw materials, goods in process of manufacture, semi-finished goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to and pertains to, or may hereafter from time to time during the continuance of this security belong to and pertains to, The Company and which are or shall or may be brought into stored or be in or upon or about the Company’s factory, godowns and/or their premises wherever else the same may be situated, stored or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar movable assets in course of transit or delivery to The Company and all of the Company’s present and future book debts , outstanding monies, receivables, claims, bills, investments, rights to or on movable properties and movable assets forming part of current and movable fixed assets which are now owing or payable or belonging to or pertaining to the Company or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to the Company in the course of its business and TOGETHER WITH all benefits, advantages and legal incidence thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend/ advance to the company, Credit facilities under agreement and declaration by the Company, inter alia, as follows: 5) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said agreement between the Company and the Lender and to comply with the terms & conditions of the said Agreement 6) The said current assets and movable fixed assets hypothecated to the Lender by way of first exclusive charge created/ to be created in favour of the bank, as security for and be charged with all repayment of the loan with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. Margin 28% for stocks and 46% on receivables 7) The company to keep the said assets in marketable and good condition and also insured as provided therein. 8) Power of entry, power to take charge and/ or possession of seize, recover, receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said goods; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citibank N.A. Citigroup Centre Bandra Kurla Complex G-Block, Bandra (East) Mumbai-400051.
6) Date and brief description of instrument modifying the charge	Not Applicable
7) 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.	Not Applicable

Form 8 Particular for creation or modification of charges

Name of the company	Hartex Silk Mills Private Limited.
Presented By	Mr. Gurvinder Singh
1) Date and description of instrument creating the change	Composite Hypothecation Agreement dated 29.12.2004 executed by Hartex Silk Mills Private Limited. (Hereinafter referred to as “the Company”) in favour of Citibank N.A. (hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total Working capital facilities for Rs. 42.000 millions which is allocated to group including GM Knitting Industries Private Limited, Dhana Singh Synthetics Private Limited, Hartex Silk Mills Private Limited and GM Silks Private Limited.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of movable assets, including plant and machinery, both present and future, stocks of raw materials, goods in process of manufacture, semi-finished goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to and pertains to, or may hereafter from time to time during the continuance of this security belong to and pertains to, The Company and which are or shall or may be brought into stored or be in or upon or about the Company’s factory, godowns and/or their premises wherever else the same may be situated, stored or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar movable assets in course of transit or delivery to The Company and all of the Company’s present and future book debts , outstanding monies, receivables, claims, bills, investments, rights to or on movable properties and movable assets forming part of current and movable fixed assets which are now owing or payable or belonging to or pertaining to the Company or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to the Company in the course of its business and TOGETHER WITH all benefits, advantages and legal incidence thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend/ advance to the company, Credit facilities under agreement and declaration by the Company, inter alia, as follows: 1) Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said agreement between the Company and the Lender and to comply with the terms & conditions of the said Agreement 2) The said current assets and movable fixed assets hypothecated to the Lender by way of first exclusive charge created/ to be created in favour of the bank, as security for and be charged with all repayment of the loan with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. Margin 28% for stocks and 46% on receivables 3) The company to keep the said assets in marketable and good condition and also insured as provided therein. 4) Power of entry, power to take charge and/ or possession of seize, recover, receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said goods; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citibank N.A. Citigroup Centre Bandra Kurla Complex G-Block, Bandra (East) Mumbai-400051.
6) Date and brief description of instrument modifying the charge	Deed of Modification dated 18.11.2005 for enhancement of credit facilities.
7) 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 29.12.2004 for securing Rs.42.000 millions further modified for Rs.48.000 millions secured by Hypothecation and first exclusive charge on stocks, book debts and plant and machinery forming part of current and fixed assets both present and future. The Bank has now enhanced the limits to the company and has executed new Deed of Modification dated 18.11.2005 for enhancing the limits to Rs.80.000 millions which is an increase of Rs.32.000 millions, and which represents the combined facility offered to GM Knitting Industries Private Limited, Dhana Singh Synthetics Private Limited, Hartex Silk Mills Private Limited, GM Silks Private Limited and GM Fabrics Private Limited, the total facilities are secured by hypothecation and first exclusive charge on stocks, book debts and plant and machinery forming part of current and fixed assets both present and future. All other terms and conditions remain unchanged.

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.44.87
UK Pound	1	Rs.85.99
Euro	1	Rs.58.15

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	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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