MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	ARVIND LIFESTYLE BRANDS LIMITED [w.e.f. 09.06.2008]
Formerly Known As :	PINNACLE RISK ADVISORY SERVICES LIMITED
Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad-380025, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.02.1995
Com. Reg. No.:	04-024598
Capital Investment / Paid-up Capital :	Rs.200.501 Millions
CIN No.: [Company Identification No.]	U64201GJ1995PLC024598
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00436C
PAN No.: [Permanent Account No.]	AAACH7252A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of retailing apparels.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 5600000
Status :	Recently Commence Business
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Though the company was incorporated in the year 1995. The company has recently commenced its commercial operation from the year 2009-10. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

NOTES :

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

INFORMATION DECLINED BY

Name :	Mr. Sudhir
Designation :	Finance Manager
Date :	28.12.2011

LOCATIONS

Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad-380025, Gujarat, India
Tel. No.:	91-79-22208108
Fax No.:	Not Available
E-Mail :	rv.bhimani@arvind.in

DIRECTORS

As on 29.09.2011

Name :

Mr. Suresh Jayaraman

Designation :

Managing Director

Address :

S02, Magnolai No. 170/5, Defence Colony, 5^th Main Indira Nagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

25.05.1960

Date of Appointment :

28.10.2010

Din No.:

03033110

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U64201GJ1995PLC024598	ARVIND LIFESTYLE BRANDS LIMITED	Managing director	01-11-10	28-10-10	Active	NO
2	U18101GJ2007PLC050217	ARVIND RETAIL LIMITED	Managing director	01-11-10	28-10-10	Active	NO
3	U52609GJ2007PLC051974	ARVIND BRANDS AND RETAIL LIMITED	Director	23-09-11	22-02-11	Active	NO

Name :

Mr. Sajaybhai Shrenikbhai Lalbhai

Designation :

Director

Address :

Lalbaug, Shahibaug, Ahmedabad-388004, Gujarat, India

Date of Birth/Age :

10.04.1954

Date of Appointment :

31.10.2009

Din No.:

00008329

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L17119GJ1931PLC000093	ARVIND LIMITED	Managing director	01-01-10	17-03-79	-	Active	NO
2	L14100GJ1979PLC003439	AMOL DICALITE LIMITED	Director	29-03-82	29-03-82	-	Active	NO
3	U65910GJ1981PTC004521	ANIMESH HOLDINGS PRIVATE LIMITED	Director	10-07-93	10-07-93	-	Active	NO
4	U65990GJ1980PTC003888	ANANYA INVESTMENTS PRIVATE LIMITED	Director	15-05-98	15-05-98	-	Active	NO
5	U34100GJ1978PLC003127	MAHINDRA GUJARAT TRACTOR LIMITED	Nominee director	18-12-99	18-12-99	30-10-07	Active	NO
6	L24230GJ1972PLC002126	TORRENT PHARMACEUTICALS LIMITED	Director	23-01-03	23-01-03	-	Active	NO
7	U80302KA2005NPL036676	CENTER FOR STUDY OF SCIENCE TECHNOLOGY AND POLICY	Director	25-08-05	25-08-05	28-08-08	Active	NO
8	U64201GJ1995PLC024598	ARVIND LIFESTYLE BRANDS LIMITED	Director	24-09-10	31-10-09	-	Active	NO
9	U18101GJ2007PLC050217	ARVIND RETAIL LIMITED	Director	24-09-10	31-10-09	-	Active	NO
10	U52609GJ2007PLC051974	ARVIND BRANDS AND RETAIL LIMITED	Director	23-09-11	22-02-11	-	Active	NO

Name :

Mr. Jayesh Kantilal Shah

Designation :

Director

Address :

26, Amaltas Bunglows, Vastrapur, Ahmedabad-380015, Gujarat, India

Date of Birth/Age :

25.05.1960

Date of Appointment :

31.10.2009

Din No.:

00008349

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U30006GJ1985PLC008289	SYNTEL TELECOM LIMITED	Director	22-11-93	22-11-93	01-04-10	Active	NO
2	U70102KA1994PTC015339	FIRENZE PROPERTIESANDINVESTMENTS PRIVATE LIMITED	Director	03-08-94	03-08-94	-	Active	NO
3	U31100GJ1995PTC024599	ARYA OMNITALK WIRELESS SOLUTIONS PRIVATE LIMITED	Director	01-08-96	01-08-96	01-06-11	Active	NO
4	L51505HP1993PLC031724	LS INDUSTRIES LIMITED	Director	27-08-97	27-08-97	07-05-09	Active	NO
5	U65910GJ1981PLC004408	ASMAN INVESTMENTS LIMITED	Director	21-03-01	21-03-01	01-04-10	Active	NO
6	L17119GJ1931PLC000093	ARVIND LIMITED	Whole-time director	01-10-11	20-11-02	-	Active	NO
7	U72200GJ1988PLC010830	E-INFOCHIPS LIMITED	Director	03-12-04	03-12-04	-	Active	NO
8	U67120GJ1995PLC025303	ANAGRAM SHARES REGISTRY LIMITED	Director	01-08-07	01-08-07	01-04-10	Active	NO
9	U65920MH1989PLC053909	EDEL FINANCE COMPANY LIMITED	Director	01-01-08	01-01-08	06-12-10	Active	NO
10	U66990GJ1995PLC025267	EDELWEISS COMTRADE LIMITED	Director	01-01-08	01-01-08	15-12-10	Active	NO
11	U67120GJ1994PLC022633	EDELWEISS STOCK BROKING LIMITED	Director appointed in casual vacancy	21-01-08	21-01-08	29-12-10	Active	NO
12	U65910GJ1993PLC020228	EDELWEISS FINANCIAL ADVISORS LIMITED	Director	29-09-08	19-02-08	15-02-11	Active	NO
13	U80212GJ2008PLC052901	ANAGRAM KNOWLEDGE ACADEMY LIMITED	Director	01-04-08	01-04-08	-	Active	NO
14	U29100GJ2008PLC053226	ARVIND ACCEL LIMITED	Director	20-04-08	20-04-08	-	Active	NO
15	U45201GJ2008PLC055771	ARVIND INFRASTRUCTURE LIMITED	Director	27-01-09	27-01-09	-	Active	NO
16	U64120PN2003PTC018154	ARYA OMNITALK RADIO TRUNKING SERVICES PRIVATE LIMITED	Director	05-09-09	05-09-09	-	Active	NO
17	U64201GJ1995PLC024598	ARVIND LIFESTYLE BRANDS LIMITED	Director	24-09-10	31-10-09	-	Active	NO
18	U18101GJ2007PLC050217	ARVIND RETAIL LIMITED	Director	24-09-10	31-10-09	-	Active	NO
19	U65923GJ2009PLC058506	ANAGRAM I-BROKING LIMITED	Director	06-11-09	06-11-09	01-04-10	Under Process of Striking off	NO
20	L17110GJ1986PLC008886	ARVIND PRODUCTS LIMITED	Director	25-09-10	25-01-10	-	Active	NO
21	U25119MH2010FTC200484	BAYER MALIBU POLYMERS PRIVATE LIMITED	Director	26-02-10	26-02-10	-	Active	NO
22	L15140GJ1985PLC007845	ADI FINECHEM LIMITED	Director	30-08-10	01-04-10	-	Active	NO
23	U52609GJ2007PLC051974	ARVIND BRANDS AND RETAIL LIMITED	Director	23-09-11	22-02-11	-	Active	NO
24	U74140GJ2011PTC068131	AMPLUS CAPITAL ADVISORS PRIVATE LIMITED	Director	08-12-11	08-12-11	-	Active	NO
25	U37200GJ2011PTC068339	ARVIND ENVISOL PRIVATE LIMITED	Director	22-12-11	22-12-11	-	Active	NO

Name :

Mr. Munesh Khanna

Designation :

Director

Address :

Beachwood House, Ground Floor, Jussaawala Wadi, Juhu, Mumbai-400049, Maharashtra, India

Date of Birth/Age :

12.05.1962

Date of Appointment :

31.10.2009

Din No.:

00202521

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24110MH1993PLC070713	INDOFIL INDUSTRIES LIMITED	Director	17-08-07	06-04-07	-	Active	NO
2	U51909MH2007PTC170716	LEADING AGE TRADING PRIVATE LIMITED	Director	01-09-07	01-09-07	01-09-07	Active	NO
3	L17119GJ1931PLC000093	ARVIND LIMITED	Director	31-07-08	27-10-07	-	Active	NO
4	U67120MH1995PTC084237	CAPTION INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED	Director	01-11-07	01-11-07	-	Active	NO
5	U65910GJ1993PLC020228	EDELWEISS FINANCIAL ADVISORS LIMITED	Director	29-09-08	19-02-08	25-05-09	Active	NO
6	U45400MH2007PTC175585	YOUTH PROPERTIES PRIVATE LIMITED	Director	15-03-08	15-03-08	-	Active	YES
7	U24130MH1994PLC142451	GARWARE BESTRETCH LIMITED	Additional director	17-11-08	17-11-08	25-03-09	Active	NO
8	U17113MH1975PLC018620	GARWARE ELASTOMERICS LIMITED	Additional director	17-11-08	17-11-08	25-03-09	Active	NO
9	U65999MH2009PTC189564	RESONUS ADVISORS PRIVATE LIMITED	Director	14-01-09	14-01-09	-	Active	NO
10	U64201GJ1995PLC024598	ARVIND LIFESTYLE BRANDS LIMITED	Director	24-09-10	31-10-09	-	Active	NO
11	U18101GJ2007PLC050217	ARVIND RETAIL LIMITED	Director	24-09-10	31-10-09	-	Active	NO
12	U65999MH2010FTC208856	ASHMORE-CENTRUM INDIA OPPORTUNITIES INVESTMENT ADVISERS PRIVATE LIMITED	Director	11-10-10	11-10-10	-	Active	NO
13	U85191MH2011NPL216343	SOLUTIONS INDIA FOR SOCIAL DEVELOPMENT	Director	16-04-11	16-04-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sudhir
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Lalbhai Realty Finance Private Limited, India	50090
Arvind Brands and Retail Limited, India	20000004
Devanshu S. Desai	1
Ramnik V. Bhimani	1
Jayesh N. Thakkar	1
Hemen H. Joshi	1
Rohit S. Jani	1
Bharat P. Patel	1
Total	20050100

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of retailing apparels.
Brand Names :	· ARROW · GANT · U. S. POLO

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Installed Capacity	Actual Production [In Nos.]
Garment*	Pcs.	1000000	878557

NOTE:

1. * Includes garments produced outside the company by job workers.

2. The company is exempt from the licensing provision of the industrial development and regulation act 1951.

3. Installed capacity is as certified by the management and relied upon by the auditors, being a technical matter.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Near Mahakant Building, Ellisbridge, Ahmedabad-380006, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
From Banks Cash Credit and Other Facilities	583.139	0.000
From Financial Institutions	0.334	0.000
Total	583.473	0.000
Unsecured Loan
From Holding Company	50.072	0.000
Total	50.072	0.000

Banking Relations :	--
Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	909, Atma House, Opposite Reserve Bank of India, Ashram Road, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26584304
Fax No.:	91-79-26589710
E-Mail :	sseahm@hotmail.com contact@sorabsengineer.com
Website:	http://www.sorabsengineer.com
Pan No.:	AAAFS5191E
Holding Company:	Arvind Limited [L17119GJ1931PLC000093]
Fellow Subsidiaries:	· Arvind Products Limited · Arvind Retail Limited · Asman Investment Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20050100	Equity Shares	Rs.10/- each	Rs.200.501 Millions

NOTE:

1. Above shares are held by Arvind Limited, the holding company.

2. Of the above shares 20000000 equity shares of Rs.10/- each are allotted as fully paid up pursuant to the scheme of arrangement to Arvind Limited, the holding company without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		200.501	0.501	0.501
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1221.462	0.462	0.323
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1421.963	0.963	0.824
LOAN FUNDS
1] Secured Loans		583.473	0.000	0.000
2] Unsecured Loans		50.072	0.000	3.750
TOTAL BORROWING		633.545	0.000	3.750
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2055.508	0.963	4.574
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1087.826	0.007	0.008
Capital work-in-progress		9.422	0.000	0.000
INVESTMENT		0.154	0.000	0.500
DEFERREX TAX ASSETS		13.180	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	639.773	0.000	0.000
	Sundry Debtors	589.154	0.000	0.000
	Cash & Bank Balances	39.922	1.543	0.454
	Other Current Assets	0.000	0.000	0.020
	Loans & Advances	468.100	0.099	3.698
Total Current Assets		1736.949	1.642	4.172
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	424.261	0.686	0.047
	Other Current Liabilities	362.287	0.000	0.000
	Provisions	5.475	0.000	0.059
Total Current Liabilities		792.023	0.686	0.106
Net Current Assets		944.926	0.956	4.066
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2055.508	0.963	4.574

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2519.829	0.000	0.000
		Other Income	11.448	0.893	0.279
		TOTAL (A)	2531.277	0.893	0.279
Less	EXPENSES
		Raw Material Consumption	302.763	0.000	0.000
		Cost of Goods Sold	948.057	0.000	0.000
		Employee Cost	156.122	0.000	0.000
		Operating and Administrative Expenses	1091.372	0.705	0.030
		Increase / Decrease in Stocks	(117.967)	0.000	0.000
		TOTAL (B)	2380.347	0.705	0.030
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		150.930	0.188	0.249
Less	FINANCIAL EXPENSES (D)		40.752	0.001	0.001
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		110.178	0.187	0.248
Less/ Add	DEPRECIATION/ AMORTISATION (F)		100.930	0.000	0.000
	PROFIT BEFORE TAX (E-F) (G)		9.248	0.187	0.248
Less	TAX (H)		(11.751)	0.047	0.054
	PROFIT AFTER TAX (G-H) (I)		20.999	0.140	0.194
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.462	0.322	0.128
	BALANCE CARRIED TO THE B/S		21.461	0.462	0.322
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	98.521	0.000	0.000
	IMPORTS
		Raw Materials	13.350	0.000	0.000
		Accessories	9.319	0.000	0.000
		Finished Goods	9.913	0.000	0.000
	TOTAL IMPORTS		32.582	0.000	0.000
	Earnings Per Share (Rs.)		1.05	2.79	3.88

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.83	15.68	69.53
Net Profit Margin (PBT/Sales)	(%)	0.37	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.33	11.34	5.93
Return on Investment (ROI) (PBT/Networth)		0.01	0.19	0.30
Debt Equity Ratio (Total Liability/Networth)		1.00	0.71	4.68
Current Ratio (Current Asset/Current Liability)		2.19	2.39	39.36

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors	424.261	0.686	0.047

NOTE: The registered office of the company has been shifted from AAA House, Pital Premises, Naroda Road, Ahmedabad-380025, Gujarat, India to the present address w.e.f. 24.10.2008.

COMPANY BACKGROUND:

Subject is engaged in the business of retailing Apparels. Subject is the pioneers of Apparel Value retailing business in India. With close to 100 stores panning the length and breadth of the country, Subject showcases some of the best known international brands, the likes of ARROW, GANT, U. S. POLO apart from their very own FLYING MACHINE.

OPERATIONS:

The company has posted a sales turnover of Rs.2519.829 Millions during the year. The operating profit before interest and depreciation stands at Rs.150.930 Millions.

CONTINGENT LIABILITIES: [AS ON 31.03.2010]

1. Bills discounted Rs.68.155 Millions

2. Claims against the company not acknowledged as debts Rs.14.102 Millions

3. Demands in dispute: Excise Duty Rs.4.154 Millions, Sales Tax Rs.13.092 Millions, Textile Committee Cess Rs.1.094 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U64201GJ1995PLC024598
Name of the company	ARVIND LIFESTYLE BRANDS LIMITED
Address of the registered office or of the principal place of business in India of the company	Arvind Mills Premises, Naroda Road, Ahmedabad-380025, Gujarat, India
Type of charge	Book Debts Movable Property [not being pledge] Others
Particular of charge holder	State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Near Mahakant Building, Ellisbridge, Ahmedabad-380006, Gujarat, India
Email	rm2.ahm@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Joint deed of hypothecation dated 6th September 2011
Date of instrument Creating the charge	06.09.2011
Amount secured by the charge	Rs.1539.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest SBI - Cash Credit - 3.00% above the base rate. The rate of interest is liable to change whenever there is a revision in base rate. BOB - 3.00% above Base Rate Margin Working Capital SBI BOB Raw Materials 30% 30% SIP 30% 30% Finished goods 30% 30% Receivable 40% 40% EPC/FBD 10% LC 10% Extent and Operation of the charge As per State Bank of India sanction letter CBA/CPC/MKV/07 dated 25.08.11 and Bank of Baroda Sanction Letter CRA: ADV:CST:1:18:169 dated 27.08.2011 and Joint Deed of Hypothecation Dated 06.09.2011
Short particulars of the property charged	First pari - passu charge on the entire current assets of the Company (including Stocks of Raw Materials, Stock-in-process, Semi Finished and Finished Goods, Store and Spares) present and future First pari - passu charge on consumable stores and spares and Book Debts both present and future Second Pari passu charge on the entire movable plant and machineries of the Company (excluding such movables as may be permitted by the Banks from time to time, present and future wherever situate.

FIXED ASSETS:

Intangible Assets:

· Licence Brands

· Jobworkers Network

· Vendor’s Network

· Computer Software

Tangible Assets:

· Leasehold Improvements

· Plant and Machineries

· Data Processing Equipments

· Office Equipments

· Furniture and Fixtures

· Motor Vehicles

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.53.21
UK Pound	1	Rs.83.32
Euro	1	Rs.69.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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	-

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

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