MIRA INFORM REPORT

Report Date :

24.05.2008

IDENTIFICATION DETAILS

Name :	TESSITURA MONTI INDIA PRIVATE LIMITED
Registered Office :	401 Trade Avenue, Suren Road, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	15.01.2001
Com. Reg. No.:	11-130465
CIN No.: [Company Identification No.]	U17111MH2001PTC130465
TAN No.: [Tax Deduction & Collection Account No.]	MUMT07261C / KLPT01925A / KLPT01579E
PAN No.: [Permanent Account No.]	AABCT3524E
Legal Form :	Private Limited Liability Company
Line of Business :	Producing, farming, ginning, spinning, dyeing, wearing, processing, printing, manufacturing of 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 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established Indo - Italian joint venture having satisfactory track. Trade relations are fair. The company is doing well. It’s financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. The company can be regarded as promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	401 Trade Avenue, Suren Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-26846961 / 2684 6861 – 62
Fax No.:	91-22-26846960
E-Mail :	indomont@vsnl.net
Website :	http://tessituramonti.co.in
Marketing Office :	Prince Towers, Unit 202, Door No 25 & 26, College Road, Nungambakkam, Chennai-600006, Tamil Nadu , India
Tel. No.:	91-44-42143993 / 42143994 / 42143995
Fax No.:	91-44-42143996
E-Mail :	marketing@tessituramonti.co.in
Corporate Office :	Lotus House, 5^th Floor, 33-A, New Marine Lines, Mumbai - 400020, Maharashtra, India
Tel. No.:	91-22-22315801 (6 Lines)/5615811/12
Fax No.:	91-22-22315809/56315817
E-Mail :	asil@bom2.vsnl.net.in / indomont@vsnl.net
Administrative Office :	Gat No. 147 Village Tamgaon Kolhapur, Hupri Road, Taluka Kar. Maharashtra, India
Factory :	C/o Amit SPS Industrial Limited, Gate No. 147 and 48, Village Tangavaon, Taluka - Karveer, Kolhapur - Hapari Road, Dist. Kolhapur, Maharashtra
Tel. No.:	91-231-2676106/108/110/935/36
Fax No.:	91-231-2676164/828
E-Mail :	asil@pn3.vsnl.net.in / klp-indomont@sancharnet.in klpmonti@sancharnet.in

DIRECTORS

Name :	Mr. Shrikrishna Kelkar
Designation :	Director
Address :	C/O Mr. K M Salvi , 1182/108, Swapna Mali Colony, Takala, Kolhapur – 416 008, Maharashtra, India
Date of Birth/Age :	11.07.1956
Date of Appointment :	01.04.2007
E-Mail:	klp_indomont@sancharnet.in
Name :	Mr. Massimo Monti
Designation :	Director
Address :	Treviso Via Maffetti P , Coniugato 12
Date of Birth/Age :	05.03.1964
Date of Appointment :	15.01.2001
E-Mail:	massimo.monti@monti.it
Name :	Mr. Franco CArrarini
Designation :	Director
Address :	Verona VLE Nino Bixio N 27 Coniugato 27
Date of Birth/Age :	30.06.1946
Date of Appointment :	17.06.2002
E-Mail:	fc@monti.it
Name :	Mr. Manuel monti
Designation :	Director
Address :	Cortina D A Mpezzo Via Pezie N , Pezie 116
Date of Birth/Age :	02.09.1950
Date of Appointment :	15.01.2001
E-Mail:	mm@monti.it
Name :	Mr. Paolo monti
Designation :	Director
Address :	Maserada Sul Piave TV Via Trevisana Coniugato 7, italy
Date of Birth/Age :	28.06.1953
Date of Appointment :	15.01.2001
E-Mail:	pm@monti.it
Name :	Mr., Shrikrishna Yeshwant Kelkar
Designation :	Director
Address :	C O Mr. K M Salvi , 1182/108 Swapna Mali Colony Takala Kolhapur – 416 008, Maharashtra, India
Date of Birth/Age :	11.07.1956
Date of Appointment :	01.04.2007
E-Mail:	kelkar@tessituramonti.co.in
Name :	Mr. Fabiano Brembilla
Designation :	Director
Address :	Via Barbazan 46 38070 Padergnone TN Italy
Date of Birth/Age :	14.10.1947
Date of Appointment :	31.05.2001
Name :	Mr. Gururaj Albal
Designation :	Director
Address :	79 Revenue Colony Shahu Park Near Rajendra Nagar Water Tank, Kolhapur - , Maharashtra, India
Date of Birth/Age :	14.08.1953
Date of Appointment :	19.04.2001
Name :	Mr. Bruno Monti
Designation :	Director
Address :	Maserada Sul Piave Italy Via Saltore
Date of Birth/Age :	31.01.1957
Date of Appointment :	15.01.2001
Name :	Mr. Bharat P. Shah
Designation :	Director
Address :	223, Maker Tower B, Cuffe Parade, Mumbai - 400005, Maharashtra
Date of Birth/Age :	15/01/2001
Date of Ceasing :	17/06/2002
Name :	Mr. Amit B. Shah
Designation :	Director
Address :	223, Maker Tower B, Cuffe Parade, Mumbai - 400005, Maharashtra
Date of Birth/Age :	15/01/2001
Date of Ceasing :	19/04/2001
Name :	Mr. Marcello B. Tomasi (Foreign)
Designation :	Director
Address :	Italy
Date of Birth/Age :	21/04/1943
Date of Appointment :	15/01/2001
Date of Ceasing :	31/05/2002

KEY EXECUTIVES

Name :	Mr. Madhukar Kamath
Designation :	Secretary
Address :	602 Sunflower Royal Complex, Eksar Road, Borivali (West), Mumbai – 400 092, Maharashtra, India
Date of Birth/Age :	27.11.1959
Date of Appointment :	01.11.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)		No. of Shares
Mr. Monti SPA Grupptessile		33652500
Mr. Simest SPA		1347500
	Total	35000000
Equity Share Break Up		Percentage
Foreign holdings (Foreign institutional investors ) foreign companies foreign financial institutions , non residents or Overseas corporate bodies or others		100 %
Total		100 %

BUSINESS DETAILS

Line of Business :	Producing, farming, ginning, spinning, dyeing, wearing, processing, printing, manufacturing of garments
Products :	Dyed Yarn Shirting Fabric

PRODUCTION STATUS (as on 31.03.2004):-

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Dyed Yarn Shirting Fabrics	M.Tons	6700000	6000000	--
Yarn Dyeing	M. Tons	1440	1440	--
Fabrics	(Meters) Qty	--	--	4386286

GENERAL INFORMATION

No. of Employees :	50
Bankers :	· Export Import Ban Of India , Center One Building , Floor No. 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India · Bank of Baroda, Shahupri, Kolhapur – 416 001, Maharashtra, India · Canara Bank, Nariman Point Branch
Banking Relations :	Good
Auditors :
Name :	Deloitte Haskins Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Tel No.:	91-22-56679000
Holding Company :	Gruppo Tes Sile Monti SFA
Associates/Subsidiaries :	Ø Tessitura Monti SFA Ø Filatura Monti SFA

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs. 10/- each	Rs.350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35000000	Equity shares	Rs. 10/- each	Rs.350.000 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		350.000	350.000	350.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		334.808	251.332	144.342
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		684.808	601.332	494.342
LOAN FUNDS
1] Secured Loans		1082.016	757.743	414.108
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1082.016	757.743	414.108
DEFERRED TAX LIABILITIES		83.618	74.668	33.655
TOTAL		1850.442	1433.743	942.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1114.793	699.694	694.471
Capital work-in-progress		263.560	381.774	39.599
INVESTMENT		0.005	0.005	0.006
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	256.273	168.804	111.076
	Sundry Debtors	154.010	228.203	79.842
	Cash & Bank Balances	50.807	20.372	58.185
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	95.110	54.459	19.473
Total Current Assets		556.200	471.838	268.576
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	80.639	116.925	60.181
	Provisions	3.477	2.643	0.366
Total Current Liabilities		84.116	119.568	60.547
Net Current Assets		472.084	352.270	208.029
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1850.442	1433.743	942.105

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		961.382	724.302
Other Income		0.000	0.000
Total Income		961.382	724.302
Profit/(Loss) Before Tax		166.520	150.489
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		166.520	150.489
Export Value		578.430	628.300
Expenditures :
	Interest	40.702	24.426
	Depreciation & Amortization	91.860	73.520
	Other Expenditure	662.299	475.866
Total Expenditure		794.861	573.812

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	17.32	20.77	NA
Net Profit Margin (PBT/Sales)	(%)	17.32	20.77	NA
Return on Total Assets (PBT/Total Assets}	(%)	8.61	9.69	NA
Return on Investment (ROI) (PBT/Networth)		0.24	0.25	NA
Debt Equity Ratio (Total Liability/Networth)		1.71	1.46	0.96
Current Ratio (Current Asset/Current Liability)		6.61	3.95	4.44

LOCAL AGENCY FURTHER INFORMATION

FORM:-

Corporation identity number or foreign company registrations number of the company	U17111MH2001PTC130465
Name of the company	TESSITURA MONTI INDIA PRIVATE LIMITED
Address	401, Trade Avenue Suren Road, Andheri (West), Mumbai – 400 093, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	Immovable Property
Particular of the charge holder	Export Import Ban Of India Address: Center One Building , Floor No. 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Nature or description of the instrument creating charge	Indenture of mortgage dated 03.04.2007 was executed by the company with intent to create legal mortgage in favour of Exim Bank over the company immovable properties situate at taluka Karveer
Date of the instrument creating charge	03.04.2007
Amount Secure by the charge	Rs. 200.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : 9% p.a payable with monthly rest on 20^th day of each month in each year subject to reset of Interest , in accordance with provision of the loan agreement dated 16.09.2005 Terms of repayment: Rupee Loan shall be repaid by the borrower in 36 substantially equal quarterly installments, commencing on December 20, 2006 or such other date closer to that date as may be advised by exim bank at the time of making disbursement. Extent and operation of the Charge The charge created under the aforesaid indenture of mortgage shall rank as a first charge
Short Particulars of the Property charged	The whole of the Company immovable properties situated at taluka Karveer, more particularly described in the schedule I of the indenture of mortgage.
Particulars of the present modification	With the present modification of indenture of mortgage dated 3^rd April 2007, the term loan of Rs. 200.000 millions is the further secured by way of first legal mortgage in favor of Exim Bank of India over the company following immovable properties All piece and parcels ofl ands situated at Village mouje Tamgaon and mouje Mudhsingi Taluka Karaveer District Kolhapur more particularly described in Schedule I to the above Indenture of Mortgage.

Name of the company

TESSITURA MONTI INDIA PRIVATE LIMITED

Presented By

Canara bank , Nariman Point , Mumbai – 21

1) Date and description of instrument creating the change

Common hypothecation Agreement dated 12.12.2002

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 141.000 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

Stock of goods such as raw materials , goods in process , finished goods and manufactured goods and other items of stock in trade and stores , spares, components, plant and machinery more Furnitures and fixtures and all other movables goods and properties of every description of the company wherever situated whether at the company factories places or business godowns or in transit or in the custody of processors , warehouse agents or others or wherever else including in the course of delivery, more particularly described ion schedule 2 to agreement.

All book debts outstanding moneys bills receivables claims bills contracts securities, investment , cash gold silver Jewellery rights and assets and rights relating to or in properties of whatsoever nature.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of Interest on PC / FDB @ 8% p.a

Margin : 50%

The aforesaid assets are given as security to secure the following facilities granted by the bank

Nature of facility	Amount (In millions)
Letter of credit (LLC / FLC)	10.000
DGP / Term Loan	95.000
Sublimit FLC (DP)	(95.000)
Guarantee	10.000
Packing credit / FDB / FBE	26.000

The stocks and book debts are given as prime security on pari passu basis with bank of Baroda for security working capital limits.

The fixed assets i.e. plant and machinery are given as a collateral security on second charge pari passu basis with Bank of Baroda for working capital facilities and as a prime security for term loan limit.

5) Name and Address and description of the person entitled to the charge.

Canara bank

Nariman point

Mittal Tower, C Ground Floor,

Nariman Point , Mumbai – 400 021

6) Date and brief description of instrument modifying the charge

· Supplemental common hypothecation agreement and

· Agreement fro opening inland irrecoverable letter of credit

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.

12.12.2002-

Original charge for Rs. 141.000 millions

(Regd. On 06.01.2003 – D. No. 24)

Now vide above referred agreement the various credit facilities granted by the bank increased from Rs. 141.000 millions to Rs. 155.000 millions to secure the following limits:-

Facility	Enhanced limit (Rs. in millions)
PC/ FDB	50.000
Term Loan	95.000
LLC / FLC (DP)	5.000
Guarantee	5.000
Total	155.000

The enhanced limits are secured as under:

Hypothecation on pari passu with Bank Of Baroda on company present and future stocks of raw materials , semi finished goods , consumables stores packing materials , goods in transit finished goods situated at company factory at Gat No. 147, Village Tam gaon , Kolhapur – 416 234 or elsewhere or in transit or in the custody of warehouse agents / processors or C and F agents and all present and future book debts outstanding money bills receivables, claim , bills contract securities and investment and such other goods belonging for the company more particularly described in part C of Annexure II to the supplemental common hypothecation agreement.

Hypothecation of plant and machinery and other fixed assets as per list enclosed with the supplemental common hypothecation agreement on pari passu with the Bank Of Baroda and Exim Bank.

Interest, margin and other terms and condition as specified by bank from time to time.

BUSINESS:-

Subject is engaged in to carry on the business of directly or indirectly business of producing, farming, ginning, spinning, dyeing, wearing, processing, printing, manufacturing of garments, knitting, marketing, distributing, trading, dealing, buying, selling, importing, exporting and other related activities of cotton and all types of natural artificial, synthetic fibres, yarns, fabrics and textile products

FIXED ASSTES:

· Freehold Land,

· Plant And Machinery,

· Vehicles,

· Building,

· Furniture And Fixture And

· Office Equipments

WEBSITE DETAILS:

Bruno, Eversio and Venerio Monti took over the hemp and cotton hand-weaving activity that has been started by their father Giorgio in the second half of the 19TH century and set about industrialising it. From that day to this there has been a continuous thread, which can be defined as “total quality” ; the excellence of the product, the continuous search for new inspiration and innovative ideas, and constant attention to technology.

With the advent of new machines, production increased and diversified. The new range included furnishing fabrics and textiles for the home. Cotton and hemp yarns gave them colour, style and comfort.

During the First World War the Piave became a battlefield. The Monti brothers were called up and the little company went through a period of uncertainty and tension, supported only by the determination to keep on producing and to maintain the security of employment in a district that had become largely dependent on Tessitura Monti.

The rise of consumerism

The company production was further developed, and in the 1920s it grew still further thanks to the purchase of new looms. This was the moment for the company to enter the wholesale market. Care for the final product, which had always been a basic element of the company’s philosophy, now became even more important, and the Monti family focused on greater integration of the whole production cycle.

This led among other things to installation of new systems including decatizing in the 1930s, forming the starting point for the company’s finishing activities. Developments in customer taste led to the finishing sector assuming even greater importance in later years, with more attention being paid to fundamental aspects such as quality, pleasing texture, colour fastness and the aesthetic appearance of the fabric.

The acquisition of the Montebello plant was a major step forward in the company’s industrial development, with cotton spinning and twisting being added to its activities. The company now covered the full production cycle, making it independent of suppliers. Departments were set up for dying on the reel, adapting the production cycle to the new needs of textile technology.

The first ready-made clothing companies introduced their shirt collections in Italy. Mass-produced garments started to appear on the market, competing with the tailor-made variety. Not only white shirts but also stripes, prints, checks and tartans expressed the same desire for enjoyment and renewal that was permeating the society.

To satisfy the demands of the se companies that were taking ever-larger share of the market, Monti expanded and reorganised its production facilities. During the 1960s Fratelli Monti S.p.A. was producing 46,00 square meters of fabric a day.

Solid foundations

Today the small family firm has become an international holding company, Gruppo Tessile Monti S.p.A., which controls Filatura Monti S.p.A. and Tessitura Monti S.p.A., still run by the family. With an annual turnover of more than 100 million euros, almost two thirds of it from exports, a daily output of more than 80,000 meters of fabric and almost 6,500 kilos of yarn, the holding employs nearly 1,000 people in the two factories at Maserada Montebelluna.

Finally it lies in the dedication to technological innovation, seen as a means of obtaining results that anticipate the demands of the market. This philosophy leads to the choice of natural fibres of the best quality; linen and cotton which, through the skill of the craftsmen and the most advanced technology, are used to make poplin, zypher, haircord, jacquard and many other fabrics, in which the workmanship enhances the natural characteristics of the fibres so as to give wearer a sensation of well- being and comfort. At the same time, however, the company has always devoted great attention to the welfare of its workforce, a part of a family tradition that has never been abandoned. Hence the numerous ventures that the Monti brothers carried out in parallel with the development of the company. These range from the training courses within the company to purchasing small properties for members of personnel. The Monti brothers have always shown that they are family business in the widest and most complete sense of the term.

The company has its own stylists and designers who create the two collections that Tessitura Monti presents each year, with a vast range of prints and weaves in wide variety of colours. These range from classic fabrics – always present in the collection – to the most innovative proposals developed in response to the latest fashion trends.

The company also creates exclusive sample ranges for famous stylists and prestigious fashion houses, becoming their trusted partners in the choice of colours, patterns and fabrics. This collaboration between the company and its most important customers leads to a product that combines the creativeness and flair of fashion with the refinement of Monti fabrics. A few years ago company introduced a line of very high quality double twisted fabrics, under the name of “I Dogi”, further reinforcing Tessitura Monti’s presence in the top sector of the market. This is complemented by “Wash and Go” line of cotton fabrics which thanks to their special finish require no ironing. This feature is particularly interesting for foreign markets where Wash and Go has been a great success.

International expansion

Today, the company products are distributed in over 80 countries, ranging from Europe (still the companies main market) to America and Australia. This market penetration can be seen in the constant growth of turnover. The success on foreign markets is due not only to prestige of the “Made in Italy” label but also to the winning commercial strategy. The company offers top-range products to a market that is becoming more and more demanding in terms of quality and support, with agents in all markets devoting particular attention to customers.

Two new plants will be opened in 2003 to meet the needs of the markets where the company is present. The company in the city of Kolhapur in the Indian state of Maharashtra will have the very latest equipment for dying the yarn, warping, sizing and waving, with 80 weaving machines. The plant will provide work to 350 people in a covered area of 20,000 square meters, with a planned production of 6 million meters of shirting per year for markets including Far East.

In Europe, Tessitura Monti Cechia is being set up in the Prague region. This plant will produce 1.7 million meters of shirting per year, with particular attention to achieving the same high quality as the Maserada plant in Italy.

The company in the Indian state of Maharashtra, in the town of KOLHAPUR, equipped with highly modern plants for dyeing the yarn, warping, sizing, and weaving with 80 looms; will provide work for 350 employees in a covered area of 20,000 square meters; the production of 6 million meters of shirt material per year is intended principally for the markets of primary interest for the mother company and can support the demand for fabrics from the far-east markets.

PRESS RELEASE:-

Italian textile major sets up facility in India

Our Bureau

MUMBAI, April 18

TESSITURA Monti India Pvt Ltd, part of Tessitura Monti, a textile major in Italy, has set up a project in Kolhapur, Maharashtra that will produce 16,500 metres of fabric a day.

According to a press release, the project is expected to bridge the gap in weaving and finishing capacities in Indian industry.

The plant made its first shipment of finished products on March 1, 2003. The weaving machines will be able to produce 5.8 million metres of fabric per year. The fabric is mainly fine count shirting fabric with stripes and checks. The plant was inaugurated in the presence of the State Minister for Public Health, Mr Digvijay Khanvilkar, and Chairman, Tessitura Monti India Pvt. Ltd, Mr Manuel Monti.

The plant also has a modern effluent treatment plant to treat the discharge from the yarn dyeing plant, a waste heat recovery boiler and heat exchangers for exhaust gases and recycling of cooled water.

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.42.84
UK Pound	1	Rs.84.78
Euro	1	Rs.67.32

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	6
--PROFITABILIRY	1~10	6
--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

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