MIRA INFORM REPORT

Report Date :

31.05.2007

IDENTIFICATION DETAILS

Name :	J J EXPORTERS LIMITED
Registered Office :	23C, Ashutosh Chowdhury Avenue, Kolkata – 700 019, West Bengal
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	29.12.1972
Com. Reg. No.:	28631
CIN No.: [Company Identification No.]	L17112WB1972PLC028631
TAN No.: [Tax Deduction & Collection Account No.]	CALJ02268A
PAN No.: [Permanent Account No.]	AAACJ6722H
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers and exporters of Indian traditional silk fabrics, embroideries, garments and made ups.

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 2200000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	23C, Ashutosh Chowdhury Avenue, Kolkata – 700 019, West Bengal, India.
Tel. No.:	91-33-24744275 / 24744364
Fax No.:	91-33-24744280 / 24855223
E-Mail :	info@jjexports.com jjemail@vsnl.com
Website :	http://www.jjexports.com
Factory :	Mouza-Gangarampur,Post: Bishnupur, Dist. 24 Pgs (S), West Bengal, India
Tel. No.:	91-33-2480 8686
Factory :	No. 12, 1st Cross, 2nd Block, Industrial Suburb, Gurugunte Palya, Bangalore - 560 022
Tel. No.:	91-80-32928186/23374412
Factory :	No. 21 D II Phase, Peenya Industrial Area, Bangalore - 560 058
Tel. No.:	91-80-32947811
Factory :	A-109 Rajaji Nagar Indl. Estate, Rajajinagar, Bangalore - 560 044
Tel. No.:	91-80-2311 3690
Factory :	24 Petechennappa Industrial Area, Kamakshipalya, Magadi Road, Bangalore - 560 079
Tel. No.:	91-80-23288565
Branches :	Bounsi Road, Bhagalpur - 2
Tel. No.:	91-641-2420829 / 2423431
Branches :	A-108 & 109 Rajaji Nagar, Industrial Estate, Bangalore - 560 044
Tel. No.:	91-80-2335 4206

DIRECTORS

Name :	Mr. S. N. Jhunjhunwala
Designation :	Director
Date of Birth/Age :	70 Years
Qualification :	B.A. (Hons.) In Economics
Experience :	He has been associated with the export of silk fabric since 1966
Other Directorship : :	1) Rajanigandha Apartments Limited 2) Sunita Bonds & Holdings Limited 3) Cegee Films Limited
Name :	Ms. Laxmi Jhunjhunwala
Designation :	Director
Name :	Mr. P. K. Jhunjhunwala
Designation :	Director
Date of Birth/Age :	72 Years
Qualification :	IAS (Retd.)
Experience :	36 Years
Name :	Mr. Rajiv Jhunjhunwala
Designation :	Director
Date of Birth/Age :	46 Years
Qualification :	B. Com.
Experience :	25 Years
Other Directorship : :	Sunita Bonds & Holdings Limited
Name :	Mr. M. L. Gulrajani
Designation :	Director
Date of Birth/Age :	62 Years
Qualification :	Ph.D. (Tech)
Experience :	He is a Professor at NT, Delhi and has got about thirty four years experience of teaching research and development at NT, Delhi. He is a consultant to many Industrial Units and Ministry of Textiles, Govt. of India
Other Directorship : :	Alps Industries Limited Kothari Infotech Limited
Name :	Mr. P. J. Sheth
Designation :	Director
Date of Birth/Age :	73 Years
Qualification :	BE (Mech.) M.Tech (Prodn. Engg.)
Experience :	45 Years
Other Directorship : :	1) Solitaire Machine Tools Limited 2) Shruchi Marketing Limited
Name :	Mr. B. Mitter
Designation :	Director
Date of Birth/Age :	63 Years
Qualification :	B.Sc. FCA from ICAI, FCA from ICA in England and Wales
Experience :	32 Years
Name :	Mr. S. Jalan
Designation :	Director
Name :	Mr. R. P. Todi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S. L. Agrawal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	6583538	71.08%
Domestic Institutional Investors	75375	.81%
NRI's / OCB's	201674	2.18%
Other Body Corporates	812125	8.77%
Indian Public	1589538	17.16%
TOTAL	9262250	100.00%

BUSINESS DETAILS

Line of Business :

Manufacturers and exporters of Indian traditional silk fabrics, embroideries, garments and made ups.

Products :

Item Code No.	Product Description
50.07	Silk Fabrics

Exports :

Countries :

Middle East, Africa and Europe

PRODUCTION STATUS

Particulars	Unit	Actual Production
Silk Fabrics	1 000 Mts	1701
Cotton/Woolen Fabrics	1 000 Mts	--
Garments & Madeups	1000 Nos.	184
Misc. Handicraft Items	Pcs	--
Marine Products	1000 Kgs.	--
Carpets	1000 Sq. Mtrs.	--

GENERAL INFORMATION

No. of Employees :

400

Bankers :

Indian Overseas Bank

The Federal Bank Limited

Canara Bank

Facilities :

SECURED LOANS	Rs in Millions
TERM LOAN :
In Foreign Currency :
From Financial Institutions	42.650
From Bank	47.357
In Indian Rupee :
From Financial Institutions	1.200
WORKING CAPITAL LOAN FROM BANKS
Packing Credit Loan from Banks - in INR	22.930
Packing Credit Loan from Banks - in Foreign Currencies	153.489
Bills Discounted with Banks - in INR	0.000
Bills Discounted with Banks - in Foreign Currencies	93.609
Cash Credit from Banks	2.737

Banking Relations :	Satisfactory
Auditors :
Name :	Salarpuria Jajodia & Company Chartered Accountants
Address :	7, Chittaranjan Avenue, Kolkata-700072, West Bengal, India
Associates/Subsidiaries :	+ J J Spectrum Silk Limited 23C, Ashutosh Choudhury Avenue, 2^nd Floor, Kolkata – 700 019, West Bengal Tel : 91-33-24744275 / 24744364 Fax : 91-33-24744280 / 24855223 E Mail : jjemail@vsnl.com Website : http://www.jjspectrum.com Manufactures comprehensive range of woven silk for both decorative and personal use. Collection includes Dupion, Taffeta, Dutchess Satin, Organza in plain range, Jacquard and Dobbies. + Pooja Creations Limited A 108 & 109, Rajaji Nagar Industrial Estate, Rajaji Nagar, Bangalore – 560 044, Karnataka Tel No. 91-80-3113691-93 Fax : 91-80-3205341 E Mail : pooja_blr@vsnl.net + Spin International Inc., U.S.A. 237, West 35^th Street, Suite 201A, New York, NY – 10001, USA Tel : 212 967 8071 Fax : 212 967 8360 E Mail : spinindia@aol.com Contact Person : Mr. Sanjay Agarwal + Tanushree Silks Limited + Mysore Rubbers Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity shares	Rs. 10/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1257500	Equity shares	Rs. 10/- each	Rs. 12.575 millions
42500	Equity shares [allotted as fully paid up, pursuant to contract without payment being received in cash]	Rs. 10/- each	Rs. 0.425 millions
5876000	Equity shares [allotted as fully paid up bonus shares by way of capitalisation of reserves]	Rs. 10/- each	Rs. 58.760 millions
2086250	Equity Shares [allotted as fully Paid pursuant to scheme of amalgamation - refer note 6 of schedule "O"]	Rs. 10/- each	RS. 20.863 Millions
	Total		Rs. 92.623 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		92.623	71.760	71.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		480.555	370.121	343.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		573.178	441.881	415.100
LOAN FUNDS
1] Secured Loans		363.972	114.022	58.500
2] Unsecured Loans		0.000	5.597	0.000
TOTAL BORROWING		363.972	119.619	58.500
DEFERRED TAX LIABILITIES
TOTAL		937.150	561.500	473.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		321.955	83.692	88.200
Capital work-in-progress		32.506	5.140	0.000
INVESTMENT		118.609	199.807	229.400
Pre-operative Expenses		2.987	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	275.842	128.177	74.400
	Sundry Debtors	183.967	113.799	67.400
	Cash & Bank Balances	35.246	22.034	21.500
	Other Current Assets	4.129	3.459	0.000
	Loans & Advances	93.918	113.146	74.800
Total Current Assets		593.102	380.615	238.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	55.461	38.858	32.700
	Provisions	76.548	68.896	49.800
Total Current Liabilities		132.009	107.754	82.500
Net Current Assets		461.093	272.861	155.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.400
TOTAL		937.150	561.500	473.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		897.762	690.561	395.600
Other Income		16.229	17.883
Total Income		913.991	708.444	395.600
Profit/(Loss) Before Tax		70.246	85.203	60.200
Provision for Taxation		6.309	26.531	15.700
Profit/(Loss) After Tax		63.937	58.672	44.500
Earnings in Foreign Currency :
	Export Earnings	873.963	666.701	323.228
	Other Earnings	0.000	0.000	4.210
Total Earnings		873.963	666.701	327.438
Imports :
	Raw Materials	287.102	205.576	115.998
	Stores & Spares	10.483	0.000	0.000
	Capital Goods	28.963	0.000	0.000
Total Imports		326.548	205.576	115.998
Expenditures :
	Raw Materials	371.816	257.650	155.400
	Finished Goods Purchased	19.029	145.041	0.000
	Power & Fuel Cost	0.000	0.000	5.900
	[Increase] / Decrease in Stock	[20.970]	[23.995]	0.000
	Other Manufacturing Expenses	160.543	126.929	83.500
	Personal Expenses	80.283	19.220	17.300
	Selling and Administration Expenses	141.959	87.144	52.600
	Miscellaneous Expenses	0.000	0.365	8.300
	Interest & Financial charges	0.000	0.000	2.900
	Depreciation	0.000	0.000	9.500
Total Expenditure		752.660	612.354	335.400

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1^st Qtr	2^nd Qtr	3^rd Qtr
Sales Turnover	213.700	249.300	267.100
Other Income	4.600	2.300	2.900
Total Income	218.300	251.600	270.000
Total Expenditure	172.300	203.800	205.400
Operating Profit	46.000	47.800	64.600
Interest	6.300	6.200	6.800
Gross Profit	39.700	41.600	57.800
Depreciation	15.400	18.300	16.000
Tax	3.000	2.200	3.700
Reported PAT	21.300	21.100	38.100

200606 Quarter 1 –

Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (30.785)million Consumption of Raw Materials Rs 113.035 million Finished Goods Purchases Rs 2.176 million Staff Cost Rs 22.574 million Manufacturing Expenses Rs 31.936 million Other Expenditure Rs 33.347 million Tax Includes Provision for Provision For Tax Rs 2.827 million Fringe Benefit Tax Rs 0.213 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results duly reviewed by the audit committee have been taken on record by the Board of Directors at their meeting held on July 27, 2006 and auditors have performed limited review as required under clause 41 of the listing agreement. 2. Figures for the quarter ended June 30, 2006 are not comparable with the figures of the Corresponding quarter of the previous year as the amalgamation of its subsidiaries J.J.Spectrum Silks Limited And Pooja Creations Limited With the company was given effect to in the Last quarter of the financial year 2005-06, after the scheme was approved by the Hon'ble High Court in January 2006. 3. The Company mainly deals in a single product namely, Fabrics & Accessories. 4. The Net amount of deferred tax being asset as on June 30, 2006, the same has not been created as A Matter of Prudence.

200609 Quarter 2 –

EPS is Basic & Diluted 1. Excludes 13,03,076 shares held as treasury stocks in a trust on behalf of the Company issued under the Scheme of Amalgamation. 2. The above results duly reviewed by the audit committee have been taken on record by the Board of Directors at their meeting held on October 26, 2006 and auditors have performed limited review as required under clause 41 of the listing agreement. 3. The Company mainly deals in a single product namely, Fabrics & Accessories. 4. Figures for half-year/quarter ended September 30, 2006 are not comparable with the figures of the Corresponding half-year/quarter of the previous year as the amalgamation of its subsidiaries JJ Spectrum Silks Limited and Pooja Creations Limited with the Company was given effect to in the Last quarter of the financial year 2005-06. After the scheme was approved by the Honable High Court in January 2006. 5. The Net amount of deferred tax being asset as on September 30, 2006, the same has not been created as a matter of Prudence. 6. No shareholder complaint was received during the quarter under review.

200612 Quarter 3 –

1.Excludes 13,03,570 Shares holds as Treasury stocks in a trust on behalf of the Company issued under the scheme of Amalgamation. 2. the above results duly reviewed by the audit committee have been taken on record by the board of directors at their meeting held on 25th January, 2007 and auditors have performed limited review as required under clause 41 of the listing agreement. 3. The company mainly deals in a single product namely, fabrics 8 accessories. 4. Figures for nine months/quarter ended 31st December, 2006 are not comparable with the figures of the corresponding nine months/ quarter of the previous year as the amalgamation of its subsidiaries j.j,spectrum silk Limited and pooja creations Limited with the company was given effect to in the last quarter of the financial year 2005-06, after the scheme was approved by the hon'ble high court in January, 2006. 5. The net amount of deferred tax being an asset as on 31.12.2006, the same has not been created as a matter of prudence. 6. The retirement benefits during the year have been provided on estimated 7. No shareholder Complaint was Received During the quarter under Review.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.47	0.20	0.11
Long Term Debt-Equity Ratio	0.09	0.00	0.00
Current Ratio	1.54	1.68	1.93
TURNOVER RATIOS
Fixed Assets	1.73	4.81	2.87
Inventory	4.40	6.77	5.52
Debtors	5.97	7.57	5.31
Interest Cover Ratio	3.38	14.31	21.76
Operating Profit Margin(%)	17.51	12.78	20.33
Profit Before Interest And Tax Margin(%)	9.36	11.48	17.67
Cash Profit Margin(%)	14.12	8.67	15.12
Adjusted Net Profit Margin(%)	5.97	7.37	12.46
Return On Capital Employed(%)	11.15	15.29	14.04
Return On Net Worth(%)	10.46	11.79	10.98

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.71.10/-
Low	Rs.68.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

J J Exporters is a partnership firm started in 1966. Incorporated in Dec.'72, it became a public limited company in 1973. It was promoted by S N Jhunjhunwala. 

The company's primary activity is the export of silk fabrics. It develops designs for silk fabrics in-house and gets them woven from handloom weavers in Bangalore and Bhagalpur. The yarn used by the weavers is supplied by the company. It has a yarn dyeing facility at Bangalore and a fabric dyeing and finishing facility at Bhagalpur. 

The company came out with a public issue in Feb.'95 at a premium of Rs 60 to part-finance the expenditure in establishing yarn preparatory facilities and in modernising its yarn dyeing facilities at its Bangalore unit, and its fabric dyeing facilities at Bhagalpur. The company is one of the top silk fabric exporters and has won several awards. It is a recognised Trading House. 

The silk fabric is used by garment manufacturers, worldwide. Some of its high-profile customers are Elegance, Germany, Cadena, Spain; and Carnet, Italy. Silk garments are exported by the company directly to fashion houses in Germany and the US. During 2001-02 the Company made a Bonus Shares in the ratio of one share for every 2 shares were alloted to the shareholders.Subject to approval of Shareholders and the Hon High Court of Kolkata Mysores Rubbers Limited will be merged with J J Exporters Limited with effect from 1st April,2002.

BUSINESS

Subject acts as manufacturers and exporters of Indian traditional silk fabrics, embroideries, garments and made ups.

Its’ garment collection comprises of ladies wear such as sequence dresses, blouses, trousers, skirts, shorts, etc. Children wear includes bridesmaid dresses, tops, skirts, etc.

The company manufactures wide range of Matka, Spun, Tussar, Noil in plains, fancy tweeds, plaids and stripes in yarn dyed and fabric dyed category at Bhagalpur unit and wide range of yarn dyed dupion and taffeta plaids, fancy weaves like Organza, tissue, chiffon, ikat, printed and handprinted fabrics at Bangalore Unit.

The company is in trade terms with :

v Aditya Design Computerised Embroidery

v Eshwar Industries

v Sri Raja Rajeshwari Computer Embroidery

v Archana Silks

v S. B. Plastic Industries

v Jalaram Paper Tubes

Fixed Assets

• Freehold Land
• Buildings & Structures
• Plant & Machineries
• Office Equipments
• Electronic Data Processing Machines
• Electrical Installations
• Air Conditioners
• Fire Fighting Equipments
• Furniture & Fittings
• Motor Cars
• Scooter & Cycles
• Weighing Scales

BUSINESS AND PERFORMANCE

The figures for the year under review are not comparable with the figures for the previous year as the figures for the current year include the operating results of J. J. Spectrum Silk Limited and Pooja Creations Limited merged with the company w.e.f. 1.4.2005 in terms of the scheme of amalgamation approved by the Hon'ble High Court of Kolkata vide its order dt. 19.01.2006. The performance of the company however suffered a setback during the year under review. The Sales Turnover of the company for the year is down at Rs. 897.762 Millions as compared to the combined turnover the company, J. J. Spectrum Silk Limited and Pooja Creations Limited of Rs. 1014.769 Millions in the previous year. Profit before tax is down at Rs. 70.247 Millions as compared to the combined PBT of the company, J. J. Spectrum Silk Limited and Pooja Creations Limited of Rs. 108.486 Millions in the previous year. Significantly higher raw material prices and lower sales realisation were the main reasons for the lower profitability during the year. Due to industrial relation problem, the production at company's unit J. J. Spectrum Silk at Gangarampur was impacted adversely for nearly two months including closure of the factory from 25th September, 2005 to 25th October, 2005. 

CURRENT YEAR'S OUTLOOK 

As per information received, the Spring crop of silk cocoons in China seem to be good and the prices have softened from the peak that it had reached. The increase in the raw material price affected not only the profitability but also discouraged some customers from using silk fabric. With the softening of the prices this situation should improve. 

Moreover, lower depreciation charges and interest costs on term loan in company's unit J.J.Spectrum Silk would add to the profit of the current year. New EOU unit detailed in the following paragraph and the garment unit at Bangalore would add to the sales and profits of the company. On the whole, barring unforeseen circumstances the Directors hope to achieve better performance in the current year. 

MODERNIZATION CUM EXPANSION PROGRAMME 

The Directors are pleased to inform that the company has set up a 100% export oriented unit at the adjacent premises of company's unit J. J. Spectrum Silk at Mouza Gangarampur, Post Bishnupur, Dist 24 Parganas (S), West Bengal to manufacture Dupion and tafetta. The construction work and installation of Plant and Machinery is in very advanced stage and the commercial production of the first phase is expected to commence shortly. 

The Company is also setting up a DTA unit at Bangalore for manufacture of garments to cater the needs of local market in India. The company is installing 150 sewing machines in the first phase. The machines have arrived at the site and the installation of the same is in progress. The commercial production is expected to commence in about a month's time. In the second phase the company will add another 150 machines. 

AMALGAMATION 

During the year under review J.J.Spectrum Silk Limited and Pooja Creations Limited were amalgamated with the company. The scheme of amalgamation was approved by the Hon'ble High Court of Kolkata vide its order dtd.19.01.2006. In terms of the scheme 20,86,250 Equity shares of Rs. 10/each were allotted to the shareholders of J.J.Spectrum Silk Limited in the ratio of one share of the company for every eight shares of J.J.Spectrum Silk Limited held by the shareholders of J.J.Spectrum Silk Limited as on 17th Feb,2006, the record date fixed for the purpose. 

Profile

Subject is the Largest Producers and Exporters of Farm Fresh Chicken White Shell Eggs in South India. Having state-of-the art chicken farms maintained in very good Bio-security  conditions. Taken care by round the clock health specialists. Their team of experts are well experienced in this field. The eggs are picked, well cleaned and packed hygienically.

PRODUCTS

TABLE EGGS: FARM FRESH INDIAN CHICKEN WHITE SHELL TABLE EGGS.

PACKING: 30 EGGS IN A PAPER TREY, 12 TREYS IN A CARTON BOX, 1312 BOXES IN A 40 ft Hi Cu REEFER CONTAINER FOR EXPORTS

NUTRIENTS	UNIT	WHOLE EGG	EGG WHITE	EGG YOLK
Mass	g	50	33	17
Kj		331	68	263
Protein	g	6.25 (13%)	3.4 (11%)	2.85 (17.5%
Total Fat	g	5.01 (12%)	-	5.01 (32.5%)
Minerals	g	0.5 (1%)	0.4 (0.8%)	1 (2%)
Water	g	37 (74%)	29 (88%)	8 (48%)
One egg of 50-55 g contains 30 - 33ml albumin and 20 -22ml egg yolk.

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.40.54
UK Pound	1	Rs.80.21
Euro	1	Rs.54.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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/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

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