MIRA INFORM REPORT

Report Date :

10.08.2011

IDENTIFICATION DETAILS

Name :	THE PRINTERS (MYSORE) PRIVATE LIMITED
Registered Office :	Plot No.7-12, Kumbal Godu Industrial Area, Mysore Road, Bangalore – 560 074, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.02.1948
Com. Reg. No.:	08-000521
Capital Investment / Paid-up Capital :	Rs.64.000 Millions
CIN No.: [Company Identification No.]	U22110KA1948PTC000521
TAN No.: [Tax Deduction & Collection Account No.]	BLRT00125G
Legal Form :	Private Limited Liability Company
Line of Business :	Printing and Publishing of Newspapers and Periodicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2803000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and established company having satisfactory track. The company has been successful in wiping of the losses of the previous years. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Plot No.7-12, Kumbal Godu Industrial Area, Mysore Road, Bangalore – 560 074, Karnataka, India
Tel. No.:	91-80-25880340 / 0416 / 8437211/8437501 / 25880251
Fax No.:	91-80-25880426 / 0433 / 8437501 / 25880250
E-Mail :	editorbg.printers@smb.sprintrpg.ems.vsnl.net.in, manorama.a@deccanherald.co.in
Website :	http://www.deccanherald.com
Area :	50000 sq. ft
Location :	Owned
Head/ Corporate/ Administrative Office :	No.75, Mahatma Gandhi Road, Post Box No.5331, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-2558 8999 (16 lines) / 5977 / 7094 / 25880000
Fax No.:	91-80-25587179 / 5587096 / 25880165
E-Mail :	decmet@giasbg01.vsnl.net.in/editor@deccanherald.co.in/ ads@deccanherald.co.in/editorbg.printers@smb.sptintrpg.ems.vsnl.net.in
Website :	http://www.deccanherald.com
Area :	Owned -- 20000 sq. ft
Printing Press :	Ø Plot Nos. 7 to 12, Kumbalgod Industrial Area, 2^nd Phase, Bangalore-560 074, Karnataka, India Tel. No. 91-80 28437211/8437501/8439501/8437682/8437737 Fax No. 91-80-8437501 Ø Plot No. 128, Belur Industrial Area, Belur Village, Bangalore, Pune Highway Road, Dharwad, Karnataka, India Ø Mangalore in Karnataka (Very new unit-operative from August 2000
Branch Office :	Located at: Ø Belgaum Ø Bijapur Ø Davanagere Ø Gulbarga Ø Hassan Ø New Delhi Ø Mumbai Ø Mysore Ø Hubli Ø Secunderabad Ø Kolkata Ø Mangalore Ø Chennai Ø Pune Ø Bangalore

DIRECTORS

As on 21.08.2010

Name :	Mr. Kanekal Nettakallappa Shanth Kumar
Designation :	Chairman and Managing Director
Address :	No. 289/A, Main Road, 8^th Block Jaya Nagar, Bangalore – 560 082, Karnataka, India.
Date of Birth/Age :	14.02.1961
Qualification :	B.A.
Experience :	24 Years
Date of Appointment :	10.07.1986
DIN No.:	00487956
Name :	Mr. Kanekal Nettakallappa Tilak Kumar
Designation :	Joint Managing Director
Address :	173, Subbarama Chetty Road, Basavana Gudi, Bangalore – 560 004, Karnataka, India
Date of Birth/Age :	11.10.1953
Qualification :	BA. (Hons)
Experience :	33 Years
Date of Appointment :	30.11.1983
DIN No.:	00509397
Name :	Mr. Sondekoppa Sundaraswamy Naganand
Designation :	Director
Address :	Kamala No. 50, IA Cross, Raj Mahal Vilas Extension, Meshri Circle, Bangalore - 560 080, Karnataka, India
Date of Birth/Age :	06.09.1957
Date of Appointment :	21.08.2010
DIN No.:	00454719
Name :	Ms. Parul Anant Shah
Designation :	Director
Address :	No.174, Subbaramachetty Road, Basavanagudi, Bangalore – 560 004, Karnataka, India
Date of Birth/Age :	19.03.1954
Qualification :	M.A.
Experience :	3.5 Years
Date of Appointment :	10.11.2006
DIN No.:	01023071
Name :	Mr. Kuldip Nayar
Designation :	Director
Address :	D-No7/2, Vasant Vihar, New Delhi – 110 057, India
Date of Birth/Age :	14.10.1923
Date of Appointment :	29.08.2008
DIN No.:	02261291
Name :	Sulegai Dhondusa Shivaji
Designation :	Additional Director
Address :	27/G, 1^st Main, 4^th Cross, 60 Feet Road, K E B Layout, Sanjaynagar, Bangalore – 560 094, Karnataka, India
Date of Birth/Age :	12.08.1930
Date of Appointment :	19.02.2011
DIN No.:	03495050
Name :	Suluagai Dhondusa Narayanasa
Designation :	Director
Address :	No.10, 11 Cross, VI Main Road, Gandhi Nagar, Bangalore – 560 009, Karnataka, India
Date of Birth/ Age :	09.04.1922
Date of Appointment :	01.05.1981
Date of Ceasing :	21.01.2011
DIN No.:	01879445

KEY EXECUTIVES

Name :	Devabrata Dutta
Designation :	Vice President Marketing
Date of Birth/ Age :	55 Years
Qualification :	Msc and Diploma BM
Experience :	27 Years
Date of Appointment :	26.02.2003
Sales and Marketing Team @ Bangalore :
Name :	Mr. Arvind P.S. Tiwari
Designation :	Assistant Manager – Career Avenues
Name :	Mrs. Bhavya Shree
Designation :	Executive – Career Avenues
Name :	Mr. Snethil Rajamanickam
Designation :	HR Consultant
Name :	Mrs. Sujatha
Designation :	Technical Support

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.08.2010

Names of Shareholders	No. of Shares
Estate of Late Khan Bahdur Bedan Saheb	64
S.D. Shivaji	52
K.N. Guruswamy and Company, India	320
M. Shashikala	4
M. Anuradha	4
S.D. Eswarasa	52
S.D. Muniswamy	48
K.N. Hari Kumar, K.N. Tilak Kumar and K.N. Shanth Kumar	4
Rekha Parashram Giriia Vijay and Usha Krishna Murthy and Vinutha Gurudati	11
M.P. Manjunath	49
K.N. Hari Kumar	516
K.N. Tilak Kumar	516
K.N. Hari Kumar HUF	21
K.N. Tilak Kumar HUF	21
K.N. Shanth Kumar HUF	21
M. Bhakta, Vatsala, Prema B. Moola, Anand Ranga Moola, Ved Mand Moola and Dev Siri Moola	48
Pratibha S. Moola, Siddartha S. Moola, Lakshmi S. Moola and Aparna S. Moola	48
M. Ramesh, Anuradha R. Moola, Sharuna R. Moola, Vivesh R. Moola and Bhavana R. Mooia	48
K.N. Shanth Kumar	516
M.M. Krishna jointly with M. Shashikala	3
M.M. Krishna jointly with M. Anuradha	3
S.D. Aswathnarayanasa, S.D. Nageshwar, S.D. Shivaram, S.D. Krishna Murthy and S.N. Raghavendra	52
Dechu R. Moola, Vishnu R. Moola, Brinda Devi Moola and Maya R. Moola	48
M. Sachin	3
S. Putta Naik	3
Geetha Gowtham, Vaishali, Murari Saranath and Sri Harsha	1
Estate of Late Mkpani	1
Suven M.	1
Urmila Roopkumar	2
Jagadeesh K. Moola	4
M.K. Govardhan Kumar jointly with M. Dharma Vijeth	24
S.D. Narayanasa, S.N. Srinivasa Murthy and S.N. Shiva Shankar	52
Total	2560

As on 21.08.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	12.50
Directors or relatives of directors	65.12
Others	22.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Printing and Publishing of Newspapers and Periodicals.

Products :

Product Description	Item Code
News Papers	5903.10
Periodicals	4902.90
Calendars	4902

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	2009-2010 (Rs.)
Newspapers	Copies	269187854
Periodicals	Copies	4084186
Other Publications	Copies	325000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Canara Bank, Cantonment Branch, No.88, M.G. Road, Bangalore – 560 001, Karnataka, India

v Canara Bank, Prime Corproate Branch, Shankarnarayana Building, No.25, M.G. Road, Bangalore – 560 001, Karnataka, India

Facilities :

Secured Loan	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)	31.03.2007 (Rs. in millions)
Cash Credits	0.000	85.417	40.166	105.410
Term Loans	102.840	130.884	33.604	56.850
Total	102.840	216.301	73.770	162.260

Note:

v Working capital facilities (both fund and non-fund based) are secured by a first charge on the Company’s book debts and inventories and a second charge on the fixed assets of Kumbalagodu Property of the Company. Term Loan from Canara Bank is secured by way of Assets specifically financed and on the Kumbalagodu Property of the Company.

v Term Loan installments falling due during the next twelve months i.e. 01.04.2010 to 31.03.2011 is Rs.22.378 millions

Banking Relations :	--
Auditors :
Name :	K.P. Rao and Company Chartered Accountants
Address :	Poornima, 25, State Bank Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-25587385/25586814
Fax No.:	91-80-25594861
E-Mail:	kprao@airtelmail.in
Memberships :	Confederation of Indian Industry
Related Party :	K. N. Guruswamy and Company Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2560	Equity Shares	Rs.25000/- each	Rs.64.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2560	Equity Shares	Rs.25000/- each	Rs.64.000 Millions

(Of the above, 2520 Equity Shares of Rs.25000/- each were issued as fully paid-up Bonus Shares by capitalization of General Reserves)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		64.000	64.000	64.000	64.000
2] Share Application Money		0.000	0.000	0.000	0.000
3] Reserves & Surplus		636.643	562.211	654.814	532.442
4] (Accumulated Losses)		0.000	0.000	0.000	0.000
NETWORTH		700.643	626.211	718.814	596.442
LOAN FUNDS
1] Secured Loans		102.840	216.301	73.770	162.260
2] Unsecured Loans		0.000	0.000	0.000	0.000
TOTAL BORROWING		102.840	216.301	73.770	162.260
DEFERRED TAX LIABILITIES		0.000	0.000	0.000	0.000
TOTAL		803.483	842.512	792.584	758.702
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		458.255	555.318	387.710	414.766
Capital work-in-progress		1.116	2.429	78.631	0.656
INVESTMENT		0.806	0.802	0.801	0.802
DEFERREX TAX ASSETS		75.908	72.791	25.847	25.096
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	137.088	216.931	124.894	86.341
	Sundry Debtors	321.746	287.940	304.734	319.451
	Cash & Bank Balances	117.254	40.734	67.532	44.853
	Other Current Assets	0.000	0.000	0.000	0.000
	Loans & Advances	192.666	131.524	147.873	96.784
Total Current Assets		768.754	677.129	645.033	547.429
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	135.336	190.646	178.440	126.654
	Other Current Liabilities	60.373	55.763	55.457	51.471
	Provisions	305.647	219.548	111.541	51.922
Total Current Liabilities		501.356	465.957	345.438	230.047
Net Current Assets		267.398	211.172	299.595	317.382
MISCELLANEOUS EXPENSES		0.000	0.000	0.000	0.000
TOTAL		803.483	842.512	792.584	758.702

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008	31.03.2007
	SALES
		Circulation Revenue	1929.256	1869.060	1784.588	1670.563
		Other Income
		TOTAL	1929.256	1869.060	1784.588	1670.563
Less	EXPENSES
		Office Expenses	1806.511	1949.921	1608.735	1549.595
		Administrative Expenses
		Advertising Expenses
		TOTAL	1806.511	1949.921	1608.735	1549.595
	PROFIT/ (LOSS) BEFORE TAX		122.745	(80.861)	175.853	120.968
Less	TAX		40.825	(46.067)	53.481	56.720
	PROFIT/ (LOSS) AFTER TAX		81.920	(34.794)	122.372	64.248
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(65.377)	(30.583)	(152.955)	(217.204)
Less	APPROPRIATIONS
		Transfer to General Reserve	7.000	0.000	0.000	0.000
		Proposed Dividend	6.400	0.000	0.000	0.000
		Tax on Dividend	1.088	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		2.055	(65.377)	(30.583)	(152.956)
	EARNINGS IN FOREIGN CURRENCY
		Advertisement	0.778	1.321	1.984	0.908
		Royalty	0.000	0.000	0.000	0.086
	TOTAL EARNINGS		0.778	1.321	1.984	0.994
	IMPORTS
		Raw Materials	545.265	561.362	481.460	497.337
		Consumables	2.252	31.986	24.206	23.598
		Components and spare parts used for maintenance of plant and machinery	5.144	3.045	4.738	3.617
		Capital goods	0.000	126.492	29.395	0.000
	TOTAL IMPORTS		552.661	722.885	539.799	524.552
	Earnings Per Share (Rs.)		32000	(13591)	47802	41576

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	4.25	(1.86)	6.86	3.85
Return on Total Assets (PBT/Total Assets}	(%)	10.00	(6.56)	17.03	12.57
Return on Investment (ROI) (PBT/Networth)		0.18	(0.13)	0.24	0.20
Debt Equity Ratio (Total Liability/Networth)		0.86	1.08	0.58	0.66
Current Ratio (Current Asset/Current Liability)		1.53	1.45	1.86	2.38

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF PERFORMANCE:

During the financial year 2009-10, the Company’s total turnover for the year was Rs.1929.300 millions (Previous year Rs.1869.100 millions) comprising of Rs.1285.800 millions (previous Year Rs.1270.900 millions) from Advertisement and Rs.611.400 millions (Previous Year Rs.572.600 millions) from Circulation. Balance of Rs.32.100 millions (Previous Year Rs.25.600 millions) constituted other revenue.

The company has achieved a growth of 3.22% in the revenue during the year 2009-2010 as compared to the previous year. Advertisement revenue posted a growth of 1.17% (Rs.14.876 millions) compared to the previous year 2008-09. There was decline in revenue for first few months of the year as most businesses while down-sizing and trimming costs due to recession were quick to curtail their advertisement budgets. However in the later months starting from November 09 Advertisement, revenue showed impressive double digit growth and achieved over all growth of 1.17% for the year.

Circulation revenue posted a growth of 78 % (Rs.38.831 millions) compared to the previous year 2008-09.

The production expenses have reduced to Rs.900.000 millions as against Rs.1087.400 millions during the previous year. This is mainly due to decrease in the newsprint prices during the year.

AWARDS AND RECOGNITIONS:

During the year, the company has been awarded the coveted membership of ‘WAN IFRA International Newspaper Colour Quality Club 2010-12’ for Deccan Herald printed at Bangalore. The International Newspaper Colour Quality Club is the only worldwide quality printing competition for Newspapers being conducted by WAN-IFRA headquartered in Germany By achieving this membership, the company has demonstrated the ability to print International Standards (ISO) bench marked by WAN IFRA,

The INCQC quality initiative helps ensure the readers and advertisers to receive high print quality product.

FUTURE PROSPECTS:

The Company is confident of sustaining and improving the growth achieved during the year, in the coming years also.

Bankers Charges Report as per Registry

Corporate identity number of the company	U22110KA1948PTC000521
Name of the company	THE PRINTERS (MYSORE) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.7-12, Kumbal Godu Industrial Area, Mysore Road, Bangalore – 560 074, Karnataka, India E-Mail: vijayamg@deccanherald.co.in
This form is for	Modification of charge
Charge identification number of the modified	80002932
Type of charge	Book Debts Movable Property
Particular of charge holder	Canara Bank, Cantonment Branch, No.88, M.G. Road, Bangalore – 560 001, Karnataka, India E-Mail: krishnamurthyhn@gmail.com
Nature of description of the instrument creating or modifying the charge	Letter from Bank
Date of instrument Creating the charge	04.07.2011
Amount secured by the charge	Rs.486.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest as Applicable From Bank (CC-Rs.230.000 millions/ CDB-Rs.6.000 millions/ LC-Rs.40.000 millions/ BG-Rs.5.000 millions/ TL-II-Rs.145.500 millions/ CCMS-Rs.10.000 millions/Fresh TL-III-Rs.50.000 millions) Terms of Repayment: Repayable on Demand Margin: Margin As applicable From Bank Extent and Operation of the charge: 100% Till the Closure of the Loan
Short particulars of the property charged	Equitable Mortgage of Property at Plot Nos.7, 8, 9(p), 10, 11 and 12(P) at Kumbalgod Industrial Area, III Phase, in Sy.No.103(P) and 104(P) of Kumbalgod village, Kengeri Hobli Bangalore belonging to the Company.
Particulars of the present modification	TL-I of Rs.89.500 millions Closed. Total Limit Reduced From Rs.576.000 millions to Rs.486.500 millions. (CC-Rs.230.000 millions/ CDB-Rs.6.000 millions/ LC-Rs.40.000 millions/ BG-Rs.5.000 millions/ TL-II-Rs.145.500 millions/ CCMS-Rs.10.000 millions/ Fresh TL-III-Rs.50.000 millions). All other Terms, conditions and Securities continues for the Reduced Limit of Rs.486.500 millions.

This form is for	Modification of charge
Charge identification number of the modified	80002932
Corporate identity number of the company	U22110KA1948PTC000521
Name of the company	THE PRINTERS (MYSORE) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot Nos. 7-12, Kumbalgodu Industrial Area, Mysore Road, Bangalore-560 074, Karnataka, India.
Type of charge	Immovable Property
Particular of charge holder	Canara Bank, Cantonment Branch, No. 88 M. G. Road, Bangalore-560001, Karnataka, India
Email	krishnamurthyhn@gmail.com
Nature of description of the instrument creating or modifying the charge	Letter Evidencing Deposit of Title Deeds
Date of instrument Creating the charge	30.08.2010
Amount secured by the charge	Rs.576.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as Applicable From Bank (CC-Rs.230.000 Millions / CDB-Rs.6.000 Millions / LC-Rs.40.000 Millions / BG-Rs.5.000 Millions / TL-I-Rs.89.500 Millions / TL-II-Rs.145.500 Millions / CCMS-Rs.10.000 Millions /Fresh TL-III-Rs.50.000 Millions ) Terms of Repayment Repayable on Demand Margin Margin As Applicable Extent and Operation of the charge 100% Till the Closure of the Loan
Short particulars of the property charged	Equitable Mortgage of Property at Plot Nos.7, 8 ,9 (p), 10, 11 and 12(P) at Kumbalgod Indl. area, III Phase,in Sy.No.103(P) and 104(P) of Kumbalgod village, Kengeri Hobli Bangalore belonging to the Company.
Particulars of the present modification	Fresh TL of Rs.50.000 Millions given. Total Limit increased from Rs.526.000 Millions to Rs.576.000 Millions. (CC-Rs.230.000 Millions / CDB-Rs.6.000 Millions / LC-Rs.40.000 Millions / BG-Rs.5.000 Millions / TL-I-Rs.89.500 Millions / TL-II-Rs.145.500 Millions / CCMS-Rs.10.000 Millions /Fresh TL-III-Rs.50.000 Millions ).Ex of Eq Motg of Property at Plot Nos.7,8,9(P),10,11 and 12(P) at Kumbalgod Indl. area, III Phase, in Sy.No.103(P) and 104(P) of Kumbalgod village, Kengeri Hobli Bangalore given All other terms, conditions and Securities continues for the Increased limit of Rs.576.000 Millions .

FIXED ASSETS:

· Land (Freehold and Leasehold)

· Buildings (On freehold land and On leasehold land)

· Plant and Machinery

· Furniture and Office Equipment

· Motor Vehicles

· Electrical Installation

· EDP Installation

· Inter Telecom

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.45.17
UK Pound	1	Rs.73.72
Euro	1	Rs.64.26

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	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
-	NB	New Business	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.