MIRA INFORM REPORT

Report Date :

16.07.2007

IDENTIFICATION DETAILS

Name :	MAINETTI (INDIA) PRIVATE LIMITED
Registered Office :	138/30, 3^rd Floor, Florida Towers, Nelson Manickam Road, Chennai – 600029, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	02.06.1997
Com. Reg. No.:	18-38312
CIN No.: [Company Identification No.]	U25209TN1997PTC038312
IEC No.:	0497018080
TAN No.: (Tax Deduction & Collection Account No.)	CHEM02312C
Legal Form :	Private limited liability company
Line of Business :	Manufacturers, Traders, Exporters and Importers of Garment Plastic Hangers

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 430000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subjects is a well established and reputed manufacturers and exporters of Plastic Hangers for Garment industry. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	138/30, 3^rd Floor, Florida Towers, Nelson Manickam Road, Chennai – 600029, Tamilnadu
Tel. No.:	91-44-242613701
Fax No.:	91-44-242613702
E-Mail :	info@India.mainetti.com sales@India.mainetti.com balaji@India.mainetti.com
Website :	http://www.mainetti.com
Head Office :	58-D, Sidco Industrial Estate, Ambattur, Chennai 600 098, Tamilnadu, India
Tel. No.:	91-44-26252852
Fax No.:	91-44-26252842
Area :	28,500 sq. ft.
Location :	Leased
Corporate Office :	1012 & 1013, Galleria, DLF City, Phase –4, Gurgaon-122002, India
Tel. No.:	91-124-25050661
Fax No.:	91-124-25050963
E-Mail :	delhi@India.mainetti.com
Factory 1 :	B-II A, Phase II MEPZ, Chennai-600045
Area :	21000 sq. ft.
Location :	Leased
Factory 2 :	7/14 TNHB Industrial Estate, Kondungaiyur, Chennai 600 118, Tamilnadu
Area :	6000 sq. ft.
Location :	Leased

DIRECTORS

Name :	Mr. Sanjeev Kumar
Designation :	Managing Director
Address :	Apartment No.402, Block 22, Heltage City, Gurgaon-122002, Haryana
Date of Birth :	20.08.1955
Date of Appointment :	01.04.2004
Date of Ceasing :	31.03.2006
Name :	Mr. Paul Withers
Designation :	Directors
Address :	Suite 1812, Kwong Sanghong Centre, 151, Hoi Bun Road, Kwuntong Kowloon, Hongkong
Date of Appointment :	30.09.2003
Name :	Mr. Paul Tai
Designation :	Directors
Address :	Suite 1812, Kwong Sanghong Centre, 151, Hoi Bun Road, Kwuntong Kowloon, Hongkong
Date of Appointment :	30.09.2003
Name :	Mr. Paras Chandhatia
Designation :	Director
Address :	60, Martin Road, 3.24, Trade Mart, Singapore-239065
Date of Appointment :	30.09.2003
Name :	Mr. Sridharan Balaji
Designation :	Alternate Director to Paras Chandaria
Address :	99, 2^nd Street north Jagannatha Nagar Villivakkam, Chennai – 600049
Date of Appointment :	24.08.2004
Name :	Mr. Yazdi Sam Khambatta
Designation :	Alternate Director to Paul Tai
Address :	R5, Shri Balin Nivas, 6^th Avenue, Anna Nagar, Chennai - 600040
Name :	Mr. Rajesh Menon
Designation :	Alternate Director to Paul Withers
Address :	No 27. Nimhans Qtrs Bangalore-560029
Name :	Mr. Rasiklal L. Shah
Designation :	Director
Address :	22 R A Road, Block D-3, Arihant Apartments, Chennai 600 084, Tamilnadu
Date of Appointment :	02.06.1997
Date of Ceasing :	08.05.2003
Name :	Mr. Rajesh R. Shah
Designation :	Managing Director
Address :	22, R A Road, Block D-3, Arihant Apartments, Chennai-600084
Date of Appointment :	02.06.1997
Date of Ceasing :	08.05.2003
Name :	Mr. Ajay R. Shanghavi
Designation :	Director
Address :	7/192 Pushpa Kunj, Station Road, Wadala, Mumbai 400 031, Maharashtra
Date of Appointment :	02.06.1997
Date of Ceasing :	01.04.2004
Name :	Mr. Antony John Wilde
Designation :	Director
Address :	17A Henoer Syde Park, U.K.
Date of Appointment :	24.09.2001
Date of Ceasing :	30.09.2003
Name :	Mr. Maichael Stakol
Designation :	Director
Address :	49 Queens Garden London W23 DA U.K.
Date of Appointment :	01.07.2000
Date of Ceasing :	01.04.2004
Name :	Mr. Jim Hutchinson
Designation :	Director
Address :	Oxnam Road, Jedburh, Roxburghshire, Scotland, TD8 6NN
Date of Appointment :	30.09.2003
Name :	Mr. Lakshminarayan
Designation :	Alternate to Mr. Jim Hutchison
Address :	No.2/1, Veena Apartments, 27 II, Main Road, R A Puram, Chennai-600028
Date of Appointment :	30.09.2003
Name :	Mr. Mukesh M Shah
Designation :	Director
Address :	Ojas, B/H Liberty, Hotel Navrangpura-380009, Ahmedabad
Date of Appointment :	19.08.1997
Date of Ceasing :	01.02.1999
Name :	Mr. Jatin V Pandya
Designation :	Director
Address :	36, Lokjivan Society, Maninagar East, Ahmedabad – 380009
Date of Appointment :	19.08.1997
Date of Ceasing :	01.02.1999
Name :	Mr. Jayam E A Perumal
Designation :	Director
Address :	11B, Barnes Place, Colombo 7, Sri Lanka
Date of Appointment :	01.02.1999
Date of Ceasing :	24.09.2001
Name :	Mr. Aliastair Mcintosh
Designation :	Director
Address :	23, Recres Road, Broogmy Ferry, DEE DD 52, DQ, Scotland, UK
Date of Appointment :	01.02.1999
Date of Ceasing :	30.06.2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mainetti BV	6673724
Mr. Rasiklal L. Shah	50
Mr. Rasiklal L. Shah and Mrs. Kusumben R. Shah	109100
Mr. Jatin U. Pandya and Mrs. Beena J. Pandya	200
Mr. Ajay P. Shanghavi and Mrs. Archana Ajay Shanghavi	300
Mrs. Priti R. Shah and Mr. Rajesh R. Shah	50050
Mrs. Kusumben R. Shah and Mr. Rasiklal L. Shah	50050
Mrs. Priti R. Shah and Mr. Rajesh R. Shah	90050
Mrs. Shelpa M. Shah and Mr. Mukesh M. Shah	200

Names of Shareholders	No. of Shares
Mainetti Holding B V – Netherlands	2928854
Mauna N V – Netherlands	50
Mainetti Holding B V – Netherlands	1212192
Total	4141096

As on 31.03.2006

Foreign holdings : 100%

BUSINESS DETAILS

Line of Business :	Manufacturers, Traders, Exporters and Importers of Garment Plastic Hangers
Brand Names :	“MAINETTI”
Exports to :	Plastic hangers to Bangladesh, China, Egypt, Germany, Hong Kong, Indonesia, Malaysia, Morocco, Pakistan and Sri Lanka
Imports from :	Hooks and Clips, Corrugated Carbons and plastic Gangers from Singapore, Sri Lanka, Hong Kong and Malaysia
Terms :
Selling :	L/C and credit (30 days)
Purchasing :	Credit (60 days)

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Plastic Hangars	170 millions	150 millions

GENERAL INFORMATION

Customers :	Ø Garment Exporters Ø Accnto Ø Adolfo Dominguez Ø Accor Ø Aeffe Fashion Group Ø Adidas Ø Alain Manou Ø Aigle Ø Alfred Dunner Ø Alberta Ferretti Ø Alfred Sung Ø Alam Ø Ambien Ø Anntay Ø Antonio Fusco Ø Armand Basi Ø Aubade Ø Auchan Ø Aspre Ø Aquascutum Ø Arcadia Group Ø Balmain Ø United Colors o f Benetton Ø Banana Republic Ø Beales Ø Bershka Ø BMB Group Limited Ø Borgofiori Ø Bugatti Ø Brioni Ø Saint Hilaire Ø Burton Ø Bershka Ø BMB Group Limited Ø Bonmar Ø Boscor Ø Burberi Ø Bugatti Ø Cacharel Ø Canali Ø Caramelo Ø Casucci Ø Chanel Ø Choloe Ø Claude Havrey Ø Conbipel Ø Cora Et Moi Ø Calvin Klein Ø Carla Grou Carini Ø Carters Ø Cecil Gee Ø Choise Ø Coccapani Ø Corneliani Ø Crombie Ø Cortef Ø Cyrill Ø Elena Miro Ø Emreco Ø Escada Ø Ellen Tracy
No. of Employees :	209
Bankers :	v Canara Bank, Thousand Lights branch, Chennai – 600006 v The Hong Kong And Shanghai Banking Corporation Limited, 76, Cathedral Road, Chennai-600086, Tamilnadu, India
Facilities :	Credit Limit : Rs. 33.000 millions

Banking Relations :	Satisfactory
Auditors :	C Ramasamy & B Srinivasan Chartered Accountants
Address :	37, Alagiri Nagar II Street, Vadapalani, Chennai-600026, Tamilnadu, India
Tel. No.:	91-44-24721056/ 24813578
Telefax No.:	91-44-24819845
E-Mail :	crbsca@gmail.com, crbs@vsnl.com
Holding Company :	Mainetti Holding BV - Netherlands
Associates/Subsidiaries :	Ø Mainetti Pakistan Private Limited Pakistan Manufacturers of Plastic Hangers Ø Mainetti S P A Italy Manufacturers of Plastic and Wooden Hangers
Group Companies :	Ø Mainetti (Bangladesh) Ø Mainetti Plastic Products (Suzhou) Ø Mainetti (Egypt) Ø Mainetti SA (france) Ø Mainetti GULF FZC Ø Mainetti Holland Ø Mauna N V Ø Mainetti Hong Kong Ø Mainetti Indonesia Ø Mainetti SPA Italy Ø Mainetti SPA Technologies Ø Mainetti Malaysia Ø Mainetti Mexico Ø Mainetti Morrocco Ø Mainetti Pakistan Ø Mainetti Peru Ø Mainetti Romania Ø Mainetti Singapore Pte Limited Ø Mainetti Lanka Ø Mainetti Aski San Ve As Ø Mainetti Thailand Ø Mainetti UK Ø Mainetti Canada Ø Mainetti Vietnam

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity shares	Rs. 10/- each	Rs. 80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6673724	Equity shares	Rs. 10/- each	Rs. 66.737 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		66.737	41.411	29.289
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		42.310	15.100	2.592
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.047	56.511	31.881
LOAN FUNDS
1] Secured Loans		57.539	16.066	8.394
2] Unsecured Loans		35.000	68.772	35.994
TOTAL BORROWING		92.539	84.838	44.388
DEFERRED TAX LIABILITIES		11.609	7.388	4.102
TOTAL		213.195	148.737	80.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		178.327	100.599	53.569
Capital work-in-progress		0.000	1.586	0.736
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.403	62.820	41.281
	Sundry Debtors	113.664	82.659	44.084
	Cash & Bank Balances	11.246	22.136	13.126
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.171	11.327	13.712
Total Current Assets		231.484	178.942	112.203
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	195.893	131.894	84.777
	Provisions	0.730	0.509	1.380
Total Current Liabilities		196.623	132.403	86.157
Net Current Assets		34.861	46.539	26.046
MISCELLANEOUS EXPENSES		0.007	0.013	0.020
TOTAL		213.195	148.737	80.371

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	606.112	359.818	240.461
Profit/(Loss) Before Tax	32.481	17.322	13.675
Provision for Taxation	5.271	4.814	5.100
Profit/(Loss) After Tax	27.210	12.508	8.575
Export Value	236.943	39.009	19.313
Import Value	10.422	27.306	14.711
Expenditures :
Depreciation and Financial Charges	26.318	14.000	NA
Other Expenses	520.995	314.497	238.883
Total Expenditure	547.313	328.497	238.883

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	4.49	3.48	3.57
Net Profit Margin (PBT/Sales)	(%)	5.36	4.81	5.69
Return on Total Assets (PBT/Total Assets}	(%)	7.92	6.16	8.21
Return on Investment (ROI) (PBT/Networth)		0.30	0.31	0.43
Debt Equity Ratio (Total Liability/Networth)		2.65	3.48	4.09
Current Ratio (Current Asset/Current Liability)		1.18	1.35	1.30

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U25209TN1997PTC038312
Name of the company	MAINETTI (INDIA) PRIVATE LIMITED
Address	138/30, 3^rd Floor, Florida Towers, Nelson Manickam Road, Chennai – 600029, Tamilnadu
This Form is for	Creation of charge
Type of Charges	Immovable property Any interest in immovable property
Particular of the charge holder	The Hong Kong And Shanghai Banking Corporation Limited, 76, Cathedral Road, Chennai-600086, Tamilnadu, India
Nature or description of the instrument creating charge	Memorandum of entry dated 09.03.2007
Date of the instrument creating charge	09.03.2007
Amount Secure by the charge	Rs.100.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest : Interest shall be payable by the company on the banking facilities as per banks tariff, subject however that the bank shall the right to change the rate of interest after giving notice to the company Terms of repayment : In consideration of banking facilities sanctioned/ to be sanctioned by the bank to the company. The company has hypothecated and charged to the bank by way of exclusive independent charge as a continuing security. The property mentioned in the schedule to memorandum of entry to secure the repayments of the advances together with interest cost and all other charges. Margin The company shall maintain such margin as may be specified by the bank from time to time Extent and operation of the charge In case the company fails to fulfill its obligation under the agreement, the bank shall be entitled to take possession of the hypothecated properties and sell them by public auction or private contract and utilize the precedes in full or part settlement of its claims.
Particulars of the Property charged	As per schedule to memorandum of entry dated 09.03.2007

Name of the company	MAINETTI (INDIA) PRIVATE LIMITED
Presented By	MAINETTI (INDIA) PRIVATE LIMITED
1) Date and description of instrument creating the change	03.02.2006 Equitable mortgage by deposit of title deeds – Letter evidencing deposit of title deeds dated 04.02.2006
2) Amount secured by the charge/amount owing on the securities of charge	Rs.91.200 millions together with interest, costs, charges and other expenses which may be debited to the said accounts from time to time.
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	Equitable mortgage by deposit of title deed so the all the piece and parcel of land and buildings existing and or to be constructed thereon at Plot No.E-13, Extent of property being 7.30 acres at SIPCOT Industrial Park, Pondur, Sriperumbatur Taluk, Kancheepuram District bounded on the North by Alpatan Co South by SIPCOT service road East by Plot No.F-20 and 21 West by SIPCOT Service Road
4) Gist of the terms and conditions and extent and operation of the charge.	The above property has been given as a collateral security for thecredit limits made available to Mainetti (India) Private Limited
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Thousand lights Branch, Chennai-6
6) Date and brief description of instrument modifying the charge	--
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.	--

Trade Reference :

Mr. L G Polymer India Private Limited

#5, Nehro Nagar, Vijaya Complex, I Floor, II Avenue,

Anna Nagar, Chennai - 600040

Mr. G V Narayanan

91-44-26263306

91-9840092450

Reliance Industries Limited

5^th Floor, 501, Anna Shah, Chennai – 600018

Mr. Shrikant

91-44-3312500-06

Website Details :

History

The origins of the Subject Company stem from Northern Italy.

Subject was founded in May 1961 by the Mainetti brothers, Gianni, Luigi, Romeo and Mario.

Mainetti Tecnologie was founded in 1996 in response to the increasing demands of the international organisation that the Group had become.

Today, Romeo is Chairman of Mainetti Tecnologie, the Group’s centre of design excellence.

Mainetti Tecnologie provides all Mainetti companies with unlimited access to an unparalleled source of innovates and design.

The objective of this stand-alone company is to design, develop and manufacture state of the art robotics and automated equipment for the production of garment hangers of the highest quality at the lowest possible cost.

Today Subject is acknowledged world wide as the supplier of superior garment hangers.

From the first Aquilotto hanger through to today’s ultra sophisticated products, Subject has developed and continues to progress at an unequalled rate.

In 1962 Subject created the ‘S’ series coat hanger.

Although developed five decades ago, the ‘S’ range continues to be manufactured in Subject factories in Italy, China and the United Kingdom, and has sold in excess of 500 million pieces since its introduction.

Building on the success of the ‘S’ hanger, Subject introduced many other ground breaking products.

The growth caused by the demand for Subject products prompted the company to transfer its manufacturing activity to Castelgomberto, 30 km north of Vicenza.

Subject continued to be at the forefront of hanger design, manufacture and supply, and by 1972, 60% of the company’s business was exported throughout Northern Europe.

Subject’s success had not gone unnoticed, and in 1974 it joined a multi national group and embarked on a programme of developing manufacturing sites that ultimately would take them to almost every continent, enjoying world wide prominence.

Scotland was to see the opening of the second Mainetti company in 1974. Mainetti (UK) is the largest manufacturer in the United Kingdom.

Ambitions were not limited to Europe and Subject bought the Canadian company Joy Displays, which would become Mainetti Canada in 1988.

As a new decade started, Subject was ready to introduce another hanger manufacturing company Incomat BV, this time in The Netherlands.

Incomat has also developed its own in house facilities for the manufacture of metal products, primarily nails and steel hooks, and supplies much of the Group’s demand for metal based product.

Further indications of Subject’s broadening interests were evident, when in 1986 the UK operation bought the garment hanger and reclaim business, Dependable Extrusion.

The reclaim business was the company’s earliest steps into the recycling arena.

In the latter part of the decade, Subject established its presence further in Europe when it founded Spain in 1987.

In 1996, Subject acquired Pendy Plastic Products, the garment hanger manufacturing division of Ferguson International Holdings plc.

The challenge of the globalisation of garment manufacturing was met with a programme to introduce Mainetti companies throughout Asia.

Initially in 1987 demand for garment hangers in China was satisfied by exporting hangers to Hong Kong for mainland distribution.

By 1989, the import company was replaced by offices in Hong Kong and manufacturing facilities in Southern China.

Expansion in other parts of Asia continued, with factories in Singapore in 1992 and Sri Lanka in 1993.

Representation in other regions increased further, when in 1993 Mainetti Thailand was established and the following year Mainetti Indonesia opened for business.

With garment production in China continuing to grow, Subject added a further manufacturing site, this time in Shanghai in 1998.

Subject continues to broaden it's network of companies, opening factories to satisfy the demands of the garment producers in Egypt, Morocco, Romania and Turkey and establishing representation in Vietnam.

Like the other Group companies, these companies will offer the same Subject quality, reliability, flexibility, innovation and value for money.

Overview

Subject products carry many of the world's most famous names and finest reputations.

Their ability to meet and surpass their expectations has led them to develop the partnerships, which keep them at the forefront of their industry.

Helping their customers to achieve their aims has been the driving force in the development of their unique business proposition.

From the design and development of automated process technology and injection moulding tools, through hanger design, manufacture, resorting and recycling, every stage is carried out by a Subject company, bringing the control and co-ordination that ensures the highest quality.

Serving an industry which is dynamic and constantly evolving, they are committed to continue to anticipate future needs and to invest in the design, equipment and facilities to retain their position as leaders in their industry.

Vision Statement

"By investing in people, products and processes they will continue to be the premier Garment Hanger Company, committed to being the service driven partner offering unrivalled quality, innovation and exceptional value for money"

Subject manufactures the most versatile and technically advanced range of garment hangers, in the world. Every second of every day Subject manufactures and distributes garment hangers world wide.

Through their network of sister companies across the globe, wherever garments are being produced, there is a Subject company close at hand providing the same quality, reliability, service and exceptional value for money.

Subject achieves its outstanding production performance through continued investment in every aspect of the manufacturing process.

Original & Unique Design

Partnership is the key theme of the Subject in-house design team. Whether developing hangers for their extensive stock range, or working to an exclusive customer design brief, the customer's objectives are their focus, and it is through their close involvement that they are able to deliver design solutions which solve real problems.

Subject's unmatched design facility has developed an incomparable knowledge and expertise in every area, which impacts on garment hanger technology and use.

This cumulative experience is an invaluable customer resource bringing innovative solutions, which take account of the broadest range of functions, as well as style and environmental concerns.

As the clothing company and retail industry continues to develop, new hanger solutions are needed ... it will be their mission to continue to solve customers' problems and anticipate future demands.

From Design to Innovation: a never ending search

The constant search for perfect products is the most crucial feature of Subject's work. This is evident in the range of state of the art solutions they have developed and manufactured over the years.

Their products continue to surpass their customers' expectations, thanks to dedicated machines and tools, which are exclusive to Subject.

When you buy a Subject product, you become part of the company philosophy of continuing improvement in quality, innovation, development and technological research which underpins Subject's wide range of unique products.

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. 40.37
UK Pound	1	Rs. 82.18
Euro	1	Rs. 55.67

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