MIRA INFORM REPORT

Report Date :

27.12.2007

IDENTIFICATION DETAILS

Name :	CREATIVE PORTICO INDIA PRIVATE LIMITED
Formerly Known As :	CREATIVE MOBUS FABRICS PRIVATE LIMITED
Registered Office :	212 Cama Industrial Estate, Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	26.09.1996
Com. Reg. No.:	11-102875
CIN No.: [Company Identification No.]	U17100MH1996PTC102875
TAN No.: [Tax Deduction & Collection Account No.]	MUMC06226D
PAN No.: [Permanent Account No.]	AAACC5458P
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturing of yarn, textiles, fabrics, furnishing fabrics and garments.

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 :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well - established and reputed company. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	212 Cama Industrial Estate, Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra
Tel. No.:	91-22-24962201 / 24920046 / 30482401 / 30482400 / 24984549 / 30480972
Mobile No:	91-9322865997
Fax No:	91-22-24931760/24953502
E-Mail :	manojp@creativegarments.com genival@creativegarments.com raakesh.portico@creativegarments.com
Corporate Office :	A-513, TTC Industrial Area, Mahape, Navi Mumbai – 400 709, Maharashtra
Tel. No.:	91-22-67164100 / 27784444
Fax No.:	91-22-67164150
E-Mail :	helpdesk@porticoindia.com
Factory 1 :	Survey No. 120, Balitha, Koliwada, Muktadand Marg, Village Balitha, Vapi – 396619, Gujarat
Tel. No.:	91-22-56605860

DIRECTORS

Name :	Mr. VijayKumar Jamnadhar Agarwal
Designation :	Director
Address :	93/ B, Maker Tower, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra
Date of Birth/Age :	15.01.1950
Date of Appointment :	19.10.1996
Name :	Mr. Dinesh Sharma
Designation :	Managing Director
Address :	102, Link Garden Co-Op. Hsg, Soc. Ltd., Tower I, Off Link Road, Mumbai – 400 053, Maharashtra
Date of Appointment :	26.09.1996
Name :	Mr. Raghunath D. Sharma
Designation :	Director
Name :	Mr. Alfons Bruno Derumeaux (Belgium)
Designation :	Director
Name /	Mr. Shyamsunder Goenka
Designation :	Director
Address :	Snehdeep Banglow No. 5, jolly Maker Apartment, 95/97, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra
Date of Appointment :	22.11.1996
Name :	Mr. Gopiram S. Goenka
Designation :	Director
Name :	Mrs. Rani Agarwal
Designation :	Director
Address :	99, Sun Flower, Cuffe Parade, Colaba , Mumbai – 400 005, Maharashtra
Date of Birth/Age :	03.04.1954
Date of Appointment :	19.10.1996
Name :	Mr. Birendra Kumar Agarwal
Designation :	Director
Address :	93A, Jolly Maker Apartment – 1, Cuffe Parade, Colaba , Mumbai – 400 005, Maharashtra
Date of Birth/Age :	30.07.1951
Date of Appointment :	23.12.1996
Name :	Mr. Prabha N. Paddukad
Designation :	Director
Address :	403, Lotus Co-Op. Hsg. Soc. B- 1/7, Goverdhan Nagar, Mulund (W), Mumbai – 400080, Maharashtra
Date of Birth/Age :	09.02.1951
Date of Appointment :	30.11.1998
Name :	Mr. Vijay Todi
Designation :	Director
Address :	302, Krishna Park, Vapi Daman Road, Chala, Vapi
Date of Appointment :	29.07.2002
Name :	Mr. Kamalkant Omprakash Agarwal
Designation :	Director
Address :	204, Royal Twins, Vapi – Daman Road, Chala, Vapi – 396 195, Gujarat
Date of Birth/Age :	09.03.1976
Date of Appointment :	01.05.2004
Name :	Smt. Kanchan Sharma
Designation :	Director
Name :	Mr. Pramod Banka
Designation :	Director
Address :	Flat No. 44, Fourth Floor, Malhar Building, A K Vaidya Marg, Goregaon (East) Mumbai – 400 063, Maharashtra
Date of Birth/Age :	25.10.1959
Date of Appointment :	03.04.2006
Directorship in other companies:	CIN of the Company: U1810MH1984PTC033537 Name of the Company: Creative Garments Private limited Designation: Director CIN of the Company: U67120MH1996PTC102710 Name of the company: Creative Global Stock Broking Limited Designation: Director CIN of the Company: U72200MH1982PTC027171 Name of the company: Creative Computer and marketing Private limited Designation: Director CIN of the Company: U74999MH1987PTC044924 Name of the company: Apparel Media Private limited Designation: Director CIN of the Company: U51310MH2002PTC137955 Name of the company: CG Intertrade Private limited Designation: Director CIN of the Company: U3410MGH2004PTC148617 Name of the company: DC Creative Auto Designs Private limited Designation: Director
Name :	Mr. Parmeshwarlal Banka
Designation :	Director
Address :	44, Malhar Tower, Megh Malhar complex, A. K. Vaidya MArg, Goregaon (E), Mumbai- 400 063, Maharashtra
Name :	Mr. Kamalkant Omprakash Agarwal
Designation :	Director
Address :	204, Royal Twins, Vvapi – Daman Road, Chala, Vapi – 396195, Gujarat
Date of Birth/Age :	09.03.1976
Name :	Mr. Arunansu Vijay Agarwal
Designation :	Director
Address :	93/B, Maker tower, Cuffe parade, Mumbai – 400 005, Maharashtra
Date of Birth/Age :	15.06.1986
Date of Appointment :	02.09.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Equity Shares
Ms. Creative Garment Private Limited		8675000
Mr. Vijay Kumar Agarwal		1000
	Total	8676000
Preference shares
Creative Garments Private Limited		10457500
Mrs. Sharmial Nadkarni Ms Kumari Puvisha Nadkarni		32500
Mrs. Sharmila Nadkarni Kumar Mangesh Nadkarni		10000
	Total	10500000
Equity Share Breakup		Percentage of Holding
Bodies Corporate		100.00
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of yarn, textiles, fabrics, furnishing fabrics and garments.
Products :	Ø Furnishing Fabrics Ø Woven Fabrics Ø Woven Upholstery Fabrics

GENERAL INFORMATION

Employee :	115 (100 in Factory + 15 In Office )
Bankers :	· Standard Chartered Bank 90, M.G. Road, Fort, Mumbai – 400001, Maharashtra · The Bank of Nova Scotia Address: Mittal Towers, ‘B’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra. · State Bank of India Address: overseas Branch, world Trade Centre, Cuff Parade, Mumbai – 400 021, Maharashtra, India

Banking Relations :	Satisfactory
Auditors :
Name :	Ø Karnavat and Company Chartered Account
Address :	2A, Kitab Mahal, 1^st Floor, 192, Dr. D. Naoroji Road, Mumbai – 400001, Maharashtra
Holding Company:	Creative Garment Private Limited
Associates :	Ø Creative Garments Limited Ø Creative Computer & Marketing Private Limited Ø Creative Outwear Limited Ø Creative Textile Mills Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- Each	Rs.105.000 millions
10500000	Preference	Rs.10/- Each	Rs.105.000 millions
		Total	Rs.210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8676000	Equity Shares	Rs.10/- Each	Rs.86.760 millions
10500000	Preference	Rs.10/- Each	Rs.105.000 millions
		Total	Rs.191.760 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		191.760	191.760	191.760
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		132.906	96.121	61.749
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		324.666	287.881	253.509
LOAN FUNDS
1] Secured Loans		416.061	158.888	44.327
2] Unsecured Loans		353.688	99.725	44.775
TOTAL BORROWING		769.749	258.613	89.102
DEFERRED TAX LIABILITIES		13.223	11.300	8.042
TOTAL		1107.638	557.790	350.650
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		221.973	192.139	121.670
Capital work-in-progress		279.607	14.804	0.938
INVESTMENT		25.013	25.022	25.012
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	316.823	182.600	90.500
	Sundry Debtors	292.716	84.454	82.253
	Cash & Bank Balances	4.292	22.223	8.782
	Other Current Assets	32.876	29.022	28.622
	Loans & Advances	179.442	138.971	45.086
Total Current Assets		826.149	457.270	255.243
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	245.104	131.434	52.213
	Provisions	0.000	0.000	0.000
Total Current Liabilities		245.104	131.434	52.213
Net Current Assets		581.045	325.830	203.030
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1107.638	557.790	350.650

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover ( Including Other Income )		987.378	486.743	587.845
Other Income		0.000	0.000	0.000
Total Income		987.378	486.743	587.845
Profit/(Loss) Before Tax		61.586	59.155	49.421
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		61.586	59.155	49.421
Export Value		0.000	267.526	434.087
Expenditures :
	Depreciation & Amortization	22.356	13.240	14.620
	Other Expenditure	903.436	414.348	523.804
Total Expenditure		925.792	427.588	538.424

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	6.23	12.15	8.40
Net Profit Margin (PBT/Sales)	(%)	6.23	12.15	8.40
Return on Total Assets (PBT/Total Assets}	(%)	7.45	9.10	13.11
Return on Investment (ROI) (PBT/Networth)		0.18	0.20	0.19
Debt Equity Ratio (Total Liability/Networth)		3.12	1.35	0.55
Current Ratio (Current Asset/Current Liability)		3.37	3.47	4.88

LOCAL AGENCY FURTHER INFORMATION

Form 8 :-

Corporation identity number or foreign company registrations number of the company	U17100MH1996PTC102875
Name of the company	CREATIVE PORTICO (INDIA) PRIVATE LIMITED
Address	212 Cama IDN Estate sun Mill Compound Lower Parel, Mumbai – 400 013, Maharashtra
This Form is for	Modification of charge
Type of Charges	Immovable property
Particular of the charge holder	State Bank of India Address: overseas Branch, world Trade Centre, Cuff Parade, Mumbai – 400 021, Maharashtra, India Email ID: p.natraj@sbi.co.in
Nature or description of the instrument creating charge	Memorandum of entry
Date of the instrument creating charge	13.06.2007
Amount Secure by the charge	Rs. 325.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interests: NA Terms of repayment: NA Margin: MA Extent and operation of charge: First charge
Short particulars of the property charged (including location of the property)	South side land bearing Survey No. 120 admeasuring 10522 sq.mtrs, and land bearing Survey No. 237 / C admeasuring 304 sq.mtrs. North side land bearing Survey No. 120 admeasuring 10522 sq.mtrs. Both situated in village Balitha, district Valsad, Gujarat, together with all building, structures, erections and fixed plant and machinery thereon.
Particulars of the Property charged	Equitable mortgage created on 22.12.2005 on the immovable properties assets described at Sr. 14 above as additional security to secure the term loan of Rs.75.000 millions granted by SBI, further extended to secure the term loan of Rs.250.000 millions granted by ABN Amro Bank NV. Hence, total amount of charge created on the aforesaid immovable properties stands enhanced from Rs.75.000 millions to Rs.320.000 millions.

Name of the company	CREATIVE PORTICO INDIA PRIVATE LIMITED
Presented By	The Bank Nova Scotia, Nariman Point, Mumbai – 400 021
1) Date and description of instrument creating the change	Agreement of hypothecation of goods and Receivables to secure a demand cash credit / Overdraft / loan dated 20^th June 2002.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.50.000 millions for overdraft / Export Packing Credit / Foreign Bills Discounting Facilities.
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	Hypothecation of company raw materials, work in process, finished goods, (hereinafter referred to as the hypothecated goods”) which expression shall include all products, goods and movable property of any kind belonging to the company which now or hereinafter from time to time during this security shall be brought in, stored or be in or about company’s premises or godown at Vapi or wherever else the same may be as and by way of first charge in favour of the bank. Hypothecation of all company present and future book debts, outstanding, moneys receivables, claims, bills, contracts, engagement, securities, and other right and assets (hereinafter referred to the debts and assets”) as and by way of first Charge in favour of the bank.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest shall be charged at the Prime Lending Rate of the Bank (PLR) which currently at 14% p.a calculated and charged on the daily balance due the Bank until the same is fully liquidated and shall be paid by the company as and when demanded by the bank. All interest rates, fees and commission as applicable to the credit facilities granted by the Bank to the Company are exclusive of interest tax. PLR fees and commission are subject to change at nay time at the sole discretion of the Bank. In the event of any default / untimely repayment by the Company, penal interest will be charges by the Bank at its sole discretion. This will be based on the higher of the bank’s costs of funding the overdue in the interbank call money market plus 4% p.a or the bank‘s prime Lending Rate plus 4% p.a. Margin on goods – The company shall maintain in favour of the bank a margin of 133% between the market value from time to time of the hypothecated goods and the balances due to the bank for the time being. Margin on book debts – As determined by the bank from time to time. Right of entry, take possession of, receive, recover, appoint receiver, sell or realize by public auction or private contract or otherwise dispose of or deal with all or any part of the hypothecated assets reserved in favour of the bank.
5) Name and Address and description of the person entitled to the charge.	The Bank of Nova Scotia Address: Mittal Towers, ‘B’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra.

Name of the company	CREATIVE MOBUS FABRICS PRIVATE LIMITED
Presented By	Standard Chartered Bank 23 – 25, M.G.Road, Fort, Mumbai – 400001, Maharashtra
1) Date and description of instrument creating the change	Agreement of hypothecation of stocks and book debts dated 29.06.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs.80.100 Millions (Export / Pre- shipment/ Post Shipment Finance / Letter of Credit / Guarantee )
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	Hypothecation by way of First Charge to the Bank on : i) All the stock in trade both present and future consisting of raw materials, finished goods in process of manufacturing and other merchandise current assets whatsoever, being movable procedise now or at any time hereafter belonging to the borrower at the borrowers disposal and now or at any time any from time to time hereafter stored or at any other whatsoever in the borrowers possession or occupation or at any other premise or place (all of which hereafter collectively referred to as the said goods) ii) All the present and future book ddebts, outstanding moneys receivable, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any persons, firm, company or body corporate or by the government department or office or any municipal or local or public or semi government body or authority or any body corporate or undertaking or project whatever in the public sector (all) of which herein after collectively referred to as the said debts (The said goods and the said debts wherever the context so required are hereafter collectively referred to as the hypothecated assets
4) Gist of the terms and conditions and extent and operation of the charge.	Limit 1 Rs.1.780 millions or equivalent Rs.80.100 millions whichever is lower Limit Type – Export / Pre Shipment / post shipment finance Description – purchase of trade related merchandise against irrevocable export letters of credit / confirmed orders upto 100 % of FOB value of exports sales. The facility will be in INR or foreign currency Tenor – Upto maximum 270 days Interest – As negotiated from time to time and as per reserve Bank of India guidelines. Limit 1 a : (USD 250000 or equivalent INR 11250000/- whichever lower) – inner limit Limit Type : Letters of credit Description – Issue of irrevocable letter of credit calling for sight / usance for import / local purchase of raw material/ capital equipment and other trade related goods Tenor – upto 180 days. Interest – As negotiated from time to time Limit 1b : (USD 250000 or equivalent INR 11250000/- whichever lower) – inner limit Limit Type : Perfomance / advance payment/ guarantee/ bid bond / security bonds Description – Bank guarantee limit required in favour of various government department, collector of customs, officials bodies and other companies. Tenor – upto 365 days. Shorter tenors permitted Interest – As negotiated from time to time.
5) Name and Address and description of the person entitled to the charge.	Standard Chartered Bank 23 – 25, M.G.Road, Fort, Mumbai – 400001, Maharashtra

Corporate identity number (CIN) Foreign company registration number	U17100MH1996PTC102875
Name of the Company	CREATIVE MOBUS FABRICS PRIVATE LIMITED
Address	212 Cama Industrial Estate, Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra
This form is for	Modification of Charge
Type of Charge	Book Debts Floating Charge
Particulars of the charge holder	Standard Chartered Bank 90, M.G. Road, Fort, Mumbai – 400001, Maharashtra Email :reenabang@rediffmail.com
Nature or description of the instruments creating or modifying the charge	Supplemental deed of hypothecation of stocks and book debts
Amount secured by the charge	Rs.150.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	a) Rate of Margin : Pre and post Shipment Finance / Letter of Credit/ Bonds and Guarantees; Interest / commission : At the rate as negotiated with and agreed by the bank, subject to RBI guidelines. This rate can be change at the description of the Bank without prior notice to the borrower. b) Terms of Repayment: Pre and post shipment finance; Tenor – maximum 1820 days. Letter of credit; Tenor – 180 to 365 days Bonds and guarantees; Tenor – Maximum 365 days c) Margin : As applicable, if any d) Extent and operation of the charge Hypothecation by way of first charge to the bank on: All the stock in trade both present and future All the present and future book debts, outstanding moneys receivables, claims and bills (As more described in the supplemental deed of hypothecation of stocks and book debts attached herewith )
Short Particular of the property charged	Hypothecation by way of first charge to the bank on: All the stock in trade both present and future All the present and future book debts, outstanding moneys receivables, claims and bills (As more described in the supplemental deed of hypothecation of stocks and book debts attached herewith )
Particular of the present modification	By Way of present modification, the charge amount enhanced to Rs. 150.000 Millions. The other terms and conditions shall remain the same.

Fixed Assets

• Land
• Factory Building
• Non Factory Building
• Plant and Machinery

HISTORY

Subject was incorporated on 26^th September, 1996 at Mumbai in Maharashtra having company registration number 102875.

The subject was originally incorporated with the name Creative Mobus Tissus Limited later which was converted into Creative Mobus Fabrics Limited with effect from 18^th October, 1996.

WEB DETAILS ATTACHED

The Creative Group is one of India's largest professionally managed "Apparel and Home Furnishing Export Group" with a turnover of over Rs.3500.000 Millions. The Group currently employs over 8000 people with over 24 plants and has employed some of the best professionals in the country.

In addition to the prestigious ISO 9002 certification, the Creative Group has won several prestigious awards for remarkable performance from The Clothing Manufacturers Association of India, Apparel Export Promotion Council and the Government of India.

Identified with premium bed linen and fashion bedding, Creative Portico is amongst the few vertically integrated manufacturer and exporter of home textiles in India. It is especially well equipped with its infrastructure and design capabilities to cater to the fashion Bedding segment of home textiles and is supplying to some of the high end brands like – Nautica, Dockers, Liz – Claiborne, HSN, QVC, etc

Part of India well – known US $ 120 millions Creative Group, Creative Portico is a company providing efficient and cost effective end to end solutions in home textiles to leading importers in USA and Europe

From top of the line jacquard, dobby and other women woven sheet sets to bed sets, duvet covers, pillows, shams , cushion covers, curtains and upholstery fabrics in yarn dyed and piece dyed 100% cotton or ployster blends, their range in comprehensive.

With rich experience of decade in the international markets, creative portico has been growing at a stedy pace, in terms of sales, technology, customer base and infrastructure.

Vertically Integrated:

Their existing state of art manufacturing facilties are spread over 80000 sq.mtrs. in vapi and Silvassa, about 150 Km from Mumbai . the Vertically integrated manufacturing infrstructrue includes sizing, yarn dyeing, jacquard, Rapier and Airjet weaving, fabric dyeing and finisheing, computerized embroidery and making up the finished bed sets.

Capacity at a glance:

Yarn Dyeing	180 Tonnes per month
Fabric Dyeing and Finishing	1000000 Meters per month
Wide Width Weaving	700000 Meters per month
Made – ups ( sheet Set and Duvet Set)	180000 Sets per month
Embroidery	250 Heads
Apparel width weaving	100000 Meters perm month
Circular Knitting	75 Tonnes Perm month

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.39.39
UK Pound	1	Rs.78.02
Euro	1	Rs.56.77

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
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