MIRA INFORM REPORT

Report Date :

18.03.2011

IDENTIFICATION DETAILS

Name :	MEHTA SYNTEX PRIVATE LIMITED
Registered Office :	75/13, Joy Apartments, J B Nagar, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.09.1995
Com. Reg. No.:	11-93080
CIN No.: [Company Identification No.]	U17120MH1995PTC093080
IEC No.:	0307093549
TAN No.: [Tax Deduction & Collection Account No.]	MUMM24475D
PAN No.: [Permanent Account No.]	AAACM6826F/ AAACN1204G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Traders of Yarn

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. No complaints have been heard. It would be advisable to take adequate securities while dealing with the subject.

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

INFORMATION PARTED BY

Name :	Mr. Nalin Mehta
Designation :	Director
Contact No.:	91-9323030041/ 9820059457
Date :	02.03.2011

LOCATIONS

Registered Office :	75/13, Joy Apartments, J B Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-30908583/ 28343350/ 28395029
Mobile No.:	91-9323030041(Mr. Nalin R Mehta)
Fax No.:	91-22-28395029/ 28343350
E-Mail :	mum39@rediffmail.com mehtasyntex@hotmail.com nalinsyntex@email.com
Area :	11000 sq. ft.
Location :	Owned
Factory :	F1/13, MIDC, Tarapur, District Thane – 401506, Maharashtra, India
Tel. No.:	91-2525-325526/ 273312
E-Mail :	nalinsyntex@email.com nalinsyntex@htomail.com
Location :	Owned
Branch and Sales Office :	236, Om Textile Tower, 2^nd Floor, Pur Road, Bhilwara – 311001, Rajasthan, India
Location :	Rented

/DIRECTORS

As on 30.09.2010

Name :	Mr. Sunil R. Mehta
Designation :	Director
Address :	504-A, Oberoi Gardens, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	24.04.1965
Qualification :	Chartered Accountant
Date of Appointment :	26.09.1995
DIN No.:	00367102
Name :	Mr. Manmohan Mehta
Designation :	Director
Address :	102-A, Oberoi Gardens, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	28.08.1968
Qualification :	B. Com
Date of Appointment :	26.09.1995
PAN No.:	AABPM2579D
DIN No.:	00391964
Name :	Mr. Nalin Mehta
Designation :	Director
Address :	Flat No. 604, Greenwoods, Mathuradas Vasanji Road, (Andheri –Kurla Road), Chakala, Andheri (East), Mumbai-400090, Maharashtra, India
Date of Birth/Age :	11.09.1966
Qualification :	B. Com
Date of Appointment :	27.12.2004
PAN No.:	AACPM9947N
DIN No.:	00366687

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ranjit Singh Mehta	1446
Sunil Mehta	34689
Manmohan Mehta	1446
Kalpana Mehta	34689
Total	72270

Equity Share Breakup (Percentage of Total Equity)

(As on 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Traders of Yarn

Products :

Products Descriptions	Item Code No
Doubling and Twisting of Yarn	017112
Wooven Fabrics	017118
Doubling and Twisting of Yarn	064236
Weaving of Textile Fabrics	064389

• Doubling and Twisting of Yarn
• Wooven Fabrics
• Rayon Yarn
• Bright Polyester Yarn
• Synthetic Yarn
• Testurised Yarn

Terms :

Selling :

Credit (10-30 days)

Purchasing :

Credit (45-60 days)

GENERAL INFORMATION

Suppliers :

• Chenraj and Sons (Century Fibres)

98. Zaveri Bazar, Mahajan Gali, 1^st Floor, Mumbai – 400002, Maharashtra, India

• Hussain Fibres (Reliance Industries)

6/8, Hazarat Terrace, 1^st Floor, Flat No.7, Sankali Street, Byculla, Mumbai – 400008, Maharashtra, India

Tel No.:91-22-23452077

• Rahul Rayon (Indian Rayon)

25, Mahakali Chawl, Shop No.7, Pydhonie, Mumbai – 400003, Maharashtra, India

Tel No.:91-22-23424863

• Manikchanand Swaroopchand Gotewale

Naya Bazar, Ajmer

• Pratap Lace Industries

Shahpura House, Behind Purana Mandir, Mayo Link Road, Ajmer

Tel No.: 661144

• Pioneer Embroidaries Limited

VIII Kheri, Kala Amb Trilokp[ur Road, The-Nahan, District – Sirmour, Himachal Pradesh, India

Tel No.:91-1734-325257

• Bhawani Texo-Twist
• Nylon Twine Traders
• Rasiklal and Sons
• Reliance Industries Limited
• Sanathan Textiles Private Limited

Customers :

End Users

• Siyaram Silk Mills Limited

B – 5, Trade World, Kamla City, S. B. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel No.:91-22-66630500

• Grasim Industries Limited

Unit Bhiwani Textile Mills, Post Box No. 4, Bhiwani 127021, Haryana, India

Tel No.:91- 1664-243124

• Rolson Industries (India) Limited

G – 9, MIDC, Tarapur Industrial Area, Boisar, District – Thane, Maharashtra, India

• Veekayem Textile Mills Private Limited

Gala No.113-114, Undyog Bhawan, Sharma Industrial Estate, Goregaon East, Mumbai – 400063, Maharashtra, India

Tel No.: 91-22-26851203

• Sanna Syntex Private Limited

Sanjay Building No. 5-B, Galla No.135, Mittal Industrial Estate, Andheri “(East), Mumbai – 400059, Maharashtra, India

• Global Wool Alliance Private Limited

Hamilton B 1^st Floor, Hiranandani Estate, Thane West, Thane – 400607, Maharashtra, India

Tel No.:91-22-25861345

• Shree Mahadeo Cotton Mills Limited

Bhilwara

• Ahuja Textile Private Limited
• Arun Textile
• Bombay Rayon Fashions Limited
• Designer Fabrics Private Limited
• Dura Tex Silk Mills Limited
• First Winner Industries Limited
• Gokul Textile
• Hayward Synthetics Private Limited
• Olive Tex Silk Mills Private Limited
• Orchid Industries Limited
• Pal Synthetics Limited
• Ram Maruti Textile Private Limited
• Sabeena Fabrics Private Limited
• Status Clothing Private Limited
• VHM Industries Limited
• Western Fashion Accessories
• Yuvak Fine Fab Limited

No. of Employees :

Approximately 20 (Office – 4, and Factory – 16)

Bankers :

• Corporation Bank

SME-Marol Branch, Sarhar Bonanza Plaza, Marol, Andheri, Kurla, Andheri (East), Mumbai – 400059, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2010 Rs. in Millions	31.03.2009 Rs. In Millions
From HDFC Bank
Car Loan (Secured by Hypothecation of Vehicles)	0.751	0.088
From Corporation Bank
Term Loan (Secured by Hypothecation of Machinery)	1.636	2.360
From Corporation Bank
Cash Credit (Secured by hypothecation of stock and Receivables)	9.582	6.982
Total	11.969	9.430
UNSECURED LOANS	31.03.2010 Rs. in Millions	31.03.2009 Rs. In Millions
From Directors	0.305	0.668
Inter Corporation Deposits	0.000	0.278
Total	0.305	0.946

Banking Relations :	-
Auditors :
Name :	Kamlesh and Associates Chartered Accountant
Address :	A/2, Poonam, Ground Floor, 45/48, Lallubhai Park, Andheri (West), Mumbai – 400058, Maharashtra, India
Telefax No.:	91-22-26700537
Mobile No.:	91-9821115725
Email :	cakamleshshah@yahoo.com kamleshshah@eth.net
Associates/Subsidiaries :	Nalin Syntex Private Limited 73/13, Joy Apartments, J B Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India Activity: Manufacturing Yarn and Fancy Yarn Bank: State Bank of India – Sakinaka

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital:

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 Millions
50000	Preference Shares	Rs.10/- each	Rs.0.500 Million
	Total		Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
72270	Equity Shares	Rs.10/- each	Rs.0.723 Million

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		0.723	0.723	0.723
2] Share Application Money		2.916	4.391	4.275
3] Reserves & Surplus		6.364	5.157	3.778
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.003	10.271	8.776
LOAN FUNDS
1] Secured Loans		11.969	9.430	7.154
2] Unsecured Loans		0.305	0.946	2.270
TOTAL BORROWING		12.274	10.376	9.424
DEFERRED TAX LIABILITIES		1.982	1.519	1.079
TOTAL		24.259	22.165	19.279
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.828	13.555	9.602
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.377	0.377	0.377
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.759	5.657	4.846
	Sundry Debtors	3.968	3.546	5.645
	Cash & Bank Balances	0.627	0.217	0.303
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.742	2.974	3.543
Total Current Assets		19.096	12.394	14.337
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.764	4.165	4.912
	Other Current Liabilities	0.278	0.000	0.000
	Provisions	0.000	0.000	0.135
Total Current Liabilities		9.042	4.165	5.047
Net Current Assets		10.054	8.229	9.290
MISCELLANEOUS EXPENSES		0.000	0.004	0.010
Preliminary Expenditure		0.000	0.000	0.000
TOTAL		24.259	22.165	19.279

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Operations	37.582	36.213	30.153
		Other Income	0.000	0.000	0.000
		TOTAL (A)	37.582	36.213	30.153
Less	EXPENSES
		Raw Material Consumed	31.030	27.723	23.825
		Manufacturing Expenses	1.997	1.330	0.646
		Payment to and Provision for Employees	2.212	1.415	1.225
		Administrative and Other Expenses	3.100	2.490	1.950
		Decrease/ Increase in stock	[5.347]	[1.180]	[0.598]
		TOTAL (B)	32.992	31.778	27.048
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.590	4.435	3.105
Less	FINANCIAL EXPENSES (D)		1.618	1.654	0.734
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.972	2.781	2.371
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.773	0.592	0.510
	PROFIT BEFORE TAX (E-F) (G)		2.199	2.189	1.861
Less	TAX (H)		0.823	0.640	0.604
	PROFIT AFTER TAX (G-H) (I)		1.376	1.549	1.257
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.970	2.710	1.905
Less	APPROPRIATIONS
		Transfer to General Reserve	0.120	0.120	0.120
		Dividend	0.145	0.144	0.289
		Tax on Dividend	0.025	0.025	0.044
	BALANCE CARRIED TO THE B/S		5.056	3.970	2.709
	Earnings Per Share (Rs.)		19.04	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.66	4.28	4.17
Net Profit Margin (PBT/Sales)	(%)	5.85	6.04	6.17
Return on Total Assets (PBT/Total Assets}	(%)	6.68	8.44	7.77
Return on Investment (ROI) (PBT/Networth)		0.21	0.21	0.21
Debt Equity Ratio (Total Liability/Networth)		2.13	1.42	1.65
Current Ratio (Current Asset/Current Liability)		2.11	2.98	2.84

LOCAL AGENCY FURTHER INFORMATION

STATEMENT OF TOTAL INCOME

MEHTA SYNTEX PRIVATE LIMITED

FOR THE ASSESSMENT YEAR 2010-11

[RS. IN MILLIONS]

Particulars	Amount	Amount	Amount
Profits and gains of Business or profession
Business 1
Net Profit before tax as per P and L A/c		2.199
Add: Inadmissible expenses and Income not included
Depreciation debited in P and L A/C	0.773
37 Disallowance	0.000
40 Disallowance	[0.114]
Expenses considered under other heads	0.072
43B disallowance	0.044	0.776
		2.976
Less: Deductible Expenditure and Income to be excluded
Keyman Insurance Premium		0.200
Adjusted Profit from Business		2.776
Total Income from Business and profession		2.776
Less: Depreciation as per IT Act		1.498
Income Chargeable under the head “Business and Profession”			1.277
Total Income			1.277
Total Income rounded off u/s 288A			1.277
Tax on Total Income			0.383
Add: Education Cess			0.011
Tax with Cess			0.395
Minimum Alternative Tax		0.340
Tax credit set off u/s 115JAA		0.042
NET Tax			0.352
TDS		0.027
Advance Tax		0.135
Total Prepaid Taxes			0.162
Balance Tax			0.190
Interest u/s 234B		0.013
Interest u/s 234C		0.010	0.023
Net Tax payable			0.213
Self Assessment tax paid			0.213
Balance Tax payable			0.000

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2011 Projection	31.03.2012 Projection
1) Gross Sales
i) Sale (Net of Returns)
a) Domestic Sales	39.261	41.225
b) Exports Sales	0.000	0.000
SUB- TOTAL	39.261	41.225
c) % rise (+) or fall (-) in sale turnover as compared to previous year	5.00%	5.00%
ii) Other Income	0.000	0.000
a) Duty Drawback	0.000	0.000
b) IPRS Claim/ Sale of License	0.000	0.000
c) Commission and Brokerage received	0.000	0.000
SUB- TOTAL	0.000	0.000
iii) TOTAL (i+ii)	39.261	41.225
2) COST OF SALES
i) Raw Material Consumption	26.581	28.846
	67.70%	69.97%
ii) Manufacturing Expenses	2.077	2.160
iii) SUB- TOTAL	28.658	31.006
iv) Add: Opening Stock	10.395	10.000
v) SUB – TOTAL	39.054	41.006
vi) Less: Closing Stock	10.000	10.500
vii) SUB- TOTAL (Total of Cost of Sales)	29.054	30.506
3) Selling General and Administrative	3.224	3.353
% of sales	8.21%	8.13%
4) Payment to and provision of Employees	2.323	2.439
5) Operating Profit (Before Interest and Depreciation)	4.661	4.926
% of Sales	11.87%	11.95%
6) Interest	1.376	1.303
% of Sale	3.50%	3.16%
7) Depreciation	0.820	0.860
8) Operating Profit (After Interest and Depreciation)	2.464	2.762
% of Sale	6.28%	6.70%
9) i) Add: Other non-operating Income
a) Other income	0.000	0.000
b) Interest on Loans etc.	0.000	0.000
c) Sub- Total (INCOME)	0.000	0.000
ii) Less: Other non-operating expenses
a) Other Expenses	0.000	0.000
Sub Total (EXPENSES)	0.000	0.000
iii) Net of Other Non-Operating Income/ Expenses	0.000	0.000
10. Profit Before Tax/ Loss	2.464	2.762
% of Sales	0.06%	0.07%
11) Provision for Taxes	0.739	0.829
12) Net Profit / Loss	1.725	1.934
% of Sales	0.04%	0.05%
Dividend	0.000	0.000
13) Retained Profit	1.725	1.934
RETAINED PROFIT/ NET PROFIT ( % AGE)	100.00%	100.00%

ANALYSIS AND BALANCE SHEET

(RS. IN MILLIONS)

PARTICULARS	31.03.2011 Projection	31.03.2012 Projection
LIABILITIES
CURRENT LIABILITIES
1) Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
a) From Applicant Bank	11.000	11.000
b) From Other Banks	0.000	0.000
c) (of which BP and BD)	0.000	0.000
Sub Total (A)	11.000	11.000
2)Short Term Borrowings from others	0.000	0.000
3) Sundry Creditors (Trade) under LC	2.388	2.584
(Months’ purchase)	[1.00]	[1.00]
4) Advance payments from customers / Deposits from dealers	0.000	0.000
5) Provision for tax [net of Tax paid]	0.000	0.000
6) Dividend and Dividend Tax payable	0.000	0.000
7) Other statutory liabilities [due within one year]	0.000	0.000
8) Deposits/ Installments of term loans/ DPGs/ debentures, etc [due within one year]	0.660	0.660
9) Other current liabilities and provisions [due within one year]	0.000	0.000
Sub Total (B)	3.048	3.244
10) TOTAL CURRENT LIABILITY	14.048	14.244
TERM LIABILITIES
11) Debentures [not maturing within one year]	0.000	0.000
12) Preference Shares [Redeemable after 1 year]	0.000	0.000
13) Term loans (excluding inststallment payable within one year)	1.727	1.067
14) Deferred Payment credits (excluding installments due within one year)	1.982	1.982
15) Term Deposits (repayable after one year)	0.000	0.000
16) Other Term Liabilities	0.000	0.000
17) TOTAL TERM LIABILITIES	3.709	3.049
18) TOTAL OUTSIDE LIABILITIES	17.758	17.293
NET WORTH
19) Equity Share Capital	0.723	0.723
20) Unsecured Loans	4.021	4.021
21) Capital Reserve	0.000	0.000
22) Profit and loss and other reserve (excluding provisions)	1.428	1.548
23) Surplus (+) or deficit (-) in Profit and Loss Account	6.661	8.475
24) NET WORTH	12.833	14.767
25) TOTAL LIABILITIES	30.591	32.060
ASSETS
CURRENT ASSETS
26) Cash and Bank balance	0.163	0.430
27) Investments (Other than long term investments)	0.000	0.000
i) Government and other Trusts Securities	0.000	0.000
ii) Fixed Deposit with banks	0.173	0.173
28) i) Receivables other than deferred and exports (including bills purchased and discounted by bankers)	4.351	4.569
(Month’s Domestic Sales)	[1.33]	[1.33]
ii) Export Receivables (Including bills purchased / discounted by bankers) (Months’ export sales)	0.000	0.000
29) Installments under deferred receivables (Due within one year)	0.000	0.000
30) Stocks	10.895	11.440
(Months’ Cost of Sales)	[4.50]	[4.50]
i) Raw Material	0.895	0.940
ii) Finished Good	10.000	10.500
31) Advance to Suppliers of merchandise	0.000	0.000
32) Advance payment of taxes	0.000	0.000
33) Other Current Assets (Specify Major Items) (IPRS Claim, interest etc.)	2.000	2.500
34) TOTAL CURRENT ASSETS	17.583	19.113
FIXED ASSETS
35) Gross Block (Land ands building machinery, Furniture and fitting vehicles)	16.410	17.210
36) Depreciation to date	3.402	4.262
37) NET BLOCK	13.0080	12.947
OTHER NON-CURRENT ASSETS
38) Investments/ book debts/ advances deposit which are not Current assets
i) a) Investments in subsidiary companies/ attitudes	0.000	0.000
b) Others	0.000	0.000
ii) Advances to suppliers of capital goods and contractors	0.000	0.000
iii) Deferred receivables (maturity exceeding one year)	0.000	0.000
iv) Security deposit/ tender deposit	0.000	0.000
v) Others
39) Obsolete Stock	0.000	0.000
40) Other non-current assets (Including dues from directors)	0.000	0.000
41) TOTAL OTHER NON- CURRENT ASSETS	0.000	0.000
42) Intangible assets (patents, goodwill, preliminary expenses, bad/ doubtful debts not provided for etc.)	0.000	0.000
43) TOTAL ASSETS	30.591	32.060
	0.000	0.000
44) TANGIBKE NET WORTH	12.833	14.767
45) NET WORKING CAPITAL	3.535	4.869
46) CURRENT RATIO	1.25	1.34
47) TOTAL OUTSIDE LIABILITIES / TANGIBLE NET WORTH	1.38	1.17
TOTAL OUTSIDE LIABILITIES/ AVERAGE NET WORTH	1.87	1.64

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

[RS. IN MILLIONS]

PARTICULARS	31.03.2011 Projection	31.03.2012 Projection
A. CURRENT ASSETS
1) Stock in Trade	10.895	11.440
(Months cost of sales)	(4.50)	(4.50)
2) Receivables other than export and deferred receivables (including bills purchased and discounted by bankers)	4.351	4.569
(Months cost of sales)	(1.33)	(1.33)
3) Export receivables (Including bills purchased and discounted)	0.000	0.000
(Months Export sale)
4) Advances to supplier of merchandise	0.000	0.000
5) Other Current Assets (Including cash and bank balances and deferred receivables due within one year) (Specify major items)	2.336	3.104
6) TOTAL CURRENT ASSETS	17.583	19.113
B.CURRENT LIABILITIES
(Other than Bank borrowings for working capital)
7) Sundry Creditors (Trade)	2.388	2.584
(Months’ purchased)	[1.00]	[1.00]
8) Advance payment form customers/ deposits from dealers	0.000	0.000
9) Statutory liabilities	0.000	0.000
10) Other current liabilities (Specify major items such as: Short term borrowings, unsecured loans, Dividend payable, Installments of TL DPG, Public deposits, Debenture etc.)	0.660	0.660
11) TOTAL	3.048	3.244

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

[RS IN MILLIONS]

Particulars	31.03.2011 Projection	31.03.2012 Projection
Total Current Assets	17.583	19.113
Current Liabilities (Other than bank borrowing)	3.048	3.244
Working Capital Gap (WCG)	14.535	15.869
Min. Stipulated net working capital i.e. 25% of WCG 25% of total current assets as the method lending being applied (Export receivable to be excluded under both methods)	2.907	3.174
Actual/ projected net working capital	3.535	4.869
Item 3 minus Item 4	11.628	12.695
Item 3 minus Item 5	11.000	11.000
Maximum permissible bank finance	11.000	11.000
Excess borrowings representing Shortfall NWC	0.000	0.000

FUND FLOW STATEMENT

[RS IN MILLIONS]

Particulars	31.03.2011 Projection	31.03.2012 Projection
SOURCES
1) a) Net Profit [after tax]	1.725	1.934
b) Depreciation	0.820	0.860
c) Increase in Partner’s Capital – Deposited From Directors and Shareholders	--	--
d)m Increase in term Liability (Including Public deposited)	--	--
e) Decrease in
i) Fixed Assets	--	--
ii) Other non-current assets	--	--
f) Increase in unsecured loan	0.800	--
g) TOTAL	3.346	2.794
USES
2) a) Net Loss	0.660	0.660
b) Decrease in Term Liabilities [Including Public Deposits]	--	--
c) Increase in
i) Other Non Current Assets	--	--
ii) Fixed Assets [Net]	--	0.800
d) Withdrawals	--	--
d) Decrease in Unsecured Loam	--	--
f) Others – (Statutory Liability)	--	--
g) Increase in Preliminary Expenses	--	--
h) Total	0.660	1.460
3) Long – Term Surplus [+] / Deficit [-]	2.686	1.334
4) Increase/ Decrease in Current Assets [As per details given below]	[1.890]	1.530
5) Increase/ Decrease in Current Liabilities other than bank borrowings.	[5.994]	0.196
6) Increase / Decrease in Working Capital Gap	4.103	1.334
7) Net Surplus [+] / Deficit [-]	[1.418]	0.000
8) Increase / Decrease in Bank Borrowings	1.418	0.000
INCREASE / DECREASE IN NET SALES	1.870	1.963
i) Increase/ Decrease in Stock-in-Trade	[0.864]	0.545
ii) Increase/ Decrease in Receivables
a) Domestic	0.384	0.218
b) Export	--	--
iii) Increase/ Decrease in other Current Assets	[1.411]	0.767
iv) decrease	--	--

------------------------------------------------------------------------------------------------------------------------------

VALUATION REPORT

VALUATION OF INDUSTRIAL ASSETS

LAND

Land

Land is lease hold land form M.I.D.C.

(Lease Period is 95 Years i.e. from 1981 onward)

Name of the Owner

Mehta Syntex Private Limited

Person Contacted

Mr. Nalin Mehta (Director)

Location

Project is located in M.I.D.C. – Tarapur and @ distance of 3 to 4 K.m. form Boidar Railway Station (West)

Land Area

Admeasuring 1000 sq. mtrs.

SITE DEVELOPMENT

Compound Wall

There is 8’.00” feet height stone masonry compound wall along periphery of the Plot. There is C.C. Paving in the compound

Internal Road

There are Internal Tar Roads constructed by M.I.D.C.

Plot Area is 1000 sq. mtrs

There are Various Structures on the Plot Details of Which are as under:

Description	Length X Width	Total Area
East Side of Corridor	64’.00” X 17’.06”	1120.00 sq.ft.
North Side of Corridor	99’.00” X 18’.09”	1856.25 sq.ft.
West Side of Corridor	99’.00” X 106.00”	990.00 sq.ft.
South Side of Corridor	99’.00” X 14’.00”	1386.00 sq.ft.
TOTAL		5352.00 sq.ft.

Size of Terrace of IInd Floor:

47’.09” X 99’.00” X 2 Nos. = 9454.50 sq.ft.

Say = 9455.00 sq.ft.

Details of Structures on Terrace:

Description	Length X Width	Total Area
Staff Quarter	17’.00” X 12’.09”	216.75 sq.ft
Staff Quarter	17’.00” X 12’.09”	216.75 sq.ft.
Staff Quarter	13’.0.” X 15’.03”	202.00 sq.ft.
Staricase Lobby	17’.06” X 10’.09”	188.13 sq.ft.
Toilet Block	11’.00” X 04’.00”	44.00 sq.ft.
TOTAL		867.69 sq.ft.
Say		868.00 sq.ft.

Description	Dimensions	Total Area
Main Building Ground+ 1 Storied R.C.C. Structure	2 X 47’09” X 99”	9455.00 sq.ft.
Structure on Terrace		868.00 sq.ft.
Lean to Roof Shed		5352.00 sq.ft.

VALUATION

Land: Official rate of land in M.I.D.C. Tarapur area is Rs. 2500/- sq.mtrs. however no plots are available with M.I.D.C. Presently only resale transactions are taking place considering present market situation they adipt rate of Rs. 5500/- sq.mtr for valuation land

Land Valuation 1000 X 5500 = Rs. 5.500 Millions

Site Development: Lump sum amount of Rs. 0.300 Million is considered for site development consisting of Levelling of Land, Compound wall etc.

Buildings: Structure wise Valuation is as under

Description of Item	Areas (In Sq.ft.)	Unit Rate (In Rs.)	Fair Market Value (Rs. in Millions)
Main Building	9455.00	800/-	7.564
Lean to Roof Shed	5352.00	300/-	1.605
Structure on Terrace	868.00	200/-	0.174
Compound Wall, Paving in the compound, Security Cabin, M S Gate Etc.	Lot Sum		0.300
Total			9.643

Machinery and Electrical Installations: Rs. 6.470 Millions

SUMMARY VALUATION OF INDUSTRIAL ASSETS

Description of Item	Fair Market Value (Rs. in Millions)
Land	5.500
Site Development and Building	9.643
Machinery and Electrical Installation	6.470
Total	21.613
Say	Rsa. 21.600 Millions

A) Fair Market Value = RS. 21.600 Millions

B) Distress Sales Value = Rs. 17.300 Millions

VALUATION OF PLANT AND MACHINERY

Description of Machinery	Qty.	No. of Spindle	Fair Market Value (Rs . in Millions)
Cops Winder JC	1`	100	0.150
Two for one Twister Haridas	1	396	0.200
Two for one Twister Haridas	1	396	0.200
Cone Winder Volka	1	60	0.200
Re Winder JC	1	48	0.100
Coning Machine Lisona	1	30	0.200
Hollow Spindle Double JC	1	168 X 2	0.500
Heat Shrinks Packing	1		0.020
Cops Winder Aalidhra	1	100	1.500
ST/PT Aalidhra	1	168/140	1.500
ST/PT Aalidhra	1	168/140	1.500
Erection and Electrical Installation			0.400
		Total	6.470

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. MANMOHAN MEHTA

(Director)

This is to certify that the Net Worth of Mr. Manmohan Mehta as on 31^st March, 2010 was Rs. 3.344 Millions bas on the unaudited Balance Sheet As on 31^st March 2010 produced before them or verification.

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. SUNIL MEHTA

(Director)

This is to certify that the Net Worth of Mr. Manmohan Mehta as on 31^st March, 2010 was Rs. 3.344 Millions based on the unaudited Balance Sheet as at 31^st March, 2010 produced before them for verification.

------------------------------------------------------------------------------------------------------------------------------

TO WHOM SO EVER IT MAY CONCERN

MR. NALIN RANJITSINGH MEHTA

(Director)

This is to certify that Mr. Nalin Mehta residing at L-604 Greenwood, Andheri Kurla Road, Chakala, Andheri (East)l, Mumbai-400093 have a Tangible Networth of Rs. 3.001 Millions as on 31^st March 2010.

------------------------------------------------------------------------------------------------------------------------------

MR. NALIN RANJITSINGH MEHTA

(Director)

STATEMENT OF TOTAL INCOME

Particulars	Rs. In Millions
Income from Salaries
NALINE SYNTEX PRIVATE LIMITED	0.401
Total Salary		0.401
Deductions
Tax on employment u/s 16(iii)		0.003
Income chargeable under the head “Salaries”			0.398
Income from House Property
Self occupied property
Gross annual value u/s 23(2)(a)		NIL
Less: Interest on borrowed capital u/s 24(b) (Schedule1)		0.273
Income from Self occupied property		[0.150]
Income chargeable under the head “House Property”			[0.150]
Capital Gains
Long term Capital Gain expempt u/s 10(38) (Schedule 2)		0.000
Short Term Gain form securities taxable @ 10% (Schedule 3)		0.006
Income chargeable under the head “Capital Gains”			0.006
Income form other sources
Bank Interest		0.001
Income chargeable under the head “Other Sources”			0.001
Gross Total Income			0.256
Deduction under chapter VI-A		0.007
80D:Mediclaimn Policy
Investment u/s 80C, CCC, CCD
PF	0.037
LIC Premium	0.056
Housing loan repayment	0.035
Total Investment – subject to ceiling u/s 80FFE		0.100	0.107
Total Income			0.148
Tax on short term capital	0.006	0.001
Tax on Normal income	0.142	0.003
Tax on Total Income			0.004
Add : Educational Cess			0.000
NET TAX			0.004
TDS (Schedule)		0.010
Total prepaid tax			0.010
Refund Due			0.006

------------------------------------------------------------------------------------------------------------------------------

MR. MANMOHAN MEHTA

(Director)

STATEMENT OF TOTAL INCOME

Particulars	Rs. In Millions
Income from Salaries
Salary as per Form 16 (Schedule)	0.168
Perquisite	0.063
Total Salary		0.232
Deductions
Tax on employment u/s 16(iii)		0.003
Income Chargeable under the head “ Salaries”			0.229
Profits and Gains of Business or Profession/ Business
Net Profit before tax as per P and L A/C		0.396
Add: Inadmissible expenses and Income not included
Depreciation debited in P/L A/C	0.058
Disallowances of expenditure u/s 37 (Schedule)	0.014	0.073
Adjusted Profit form Business		0.469
Total Income from Business and profession		0.469
Less: Depreciation as per IT Act (Schedule)		0.058
Income Chargeable under the head “Business and Profession”			0.411
Income from other sources
Bank Interest		0.002
Income chargeable under the head “Other sources”			0.002
Gross Total Income			0.642
Deductions under chapter VI-A
80G – Donations (Schedule)		0.013
80D – Mediclaim Policy (Schedule)		0.011
Investment u/s 80C, CCC, CCD
PPF	0.010
Tuition Fees/ School Fees	0.024	0.034	0.058
Total Income			0.584
Total Income rounded off u/s 288A			0.584
Tax On Total Income			0.124
Add- Education Cess			0.004
Tax with Cess			0.128
Net Tax			0.128
TDS (Schedule)		0.089
Advance Tax (Schedule)		0.040
Total Prepaid Tax			0.129
Balance Tax			[0.001]
Interest u/s 234C			0.001
Refund Due			0.000

MR. MANMOHAN MEHTA

(Director)

CAPITAL A/C

Particulars		Amount Rs. In Millions	Particulars	Amount Rs. In Millions
To TDS From Remuneration	0.010
To TDS From Fees	0.079	0.89	By Balance Brought Forward	2.474
To Drawing		0.129	By Profit for the year	0.396
To Insurance		0.001	By Remuneration for the year - NSPL	0.168
To Professional Tax		0.003	By Interest on PPF Fund	0.003
To School Fees Paid		0.024	By Interest Income	0.002
To Interest on Loan		0.085	By Profit on Sale of Agriculture Land	0.325
To Advance Tax Paid		0.040	By Provident Fund Contribution	0.021
To Loss on sale of Motor Car		0.000
To Mediclaim Insurance		0.011
To Balance C/fd.		3.008
Total		3.390	Total	3.390

BALANCE SHEET

(RS. IN MILLIONS)

SOURCES OF FUNDS		31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		3.008	2.487
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		3.008	2.487
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		3.008	2.488
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.986	8.154
Capital work-in-progress		0.000	0.000
INVESTMENT		0.773	0.706
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	1.137	0.429
	Other Current Assets	0.000	0.000
	Loans & Advances	0.475	1.049
Total Current Assets		1.612	1.478
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	10.363	7.851
	Provisions	0.000	0.000
Total Current Liabilities		10.363	7.851
Net Current Assets		[8.751]	[6.373]
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		3.008	2.487

PROFIT & LOSS ACCOUNT

(RS. IN MILLIONS)

PARTICULARS		31.03.2008	31.03.2007
Professional Fees		0.800	0.800
Interest Received		0.000	0.001
Dividend Received		0.000	0.003
Total Income		0.800	0.804
Profit/(Loss) Before Tax		0.396	0.350
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		0.396	0.350
Expenditures :
	Books and Periodicals	0.003	0.002
	Service Tax	0.000	0.087
	Business Promotion Expenses	0.002	0.002
	Legal and Professional Fees	0.000	0.056
	Salaries	0.084	0.106
	Telephone Expenses	0.017	0.026
	Traveling and Conveyance	0.092	0.049
	Motor Car Expenses	0.051	0.018
	Depreciation & Amortization	0.058	0.000
Total Expenditure		0.404	0.454

-------------------------------------------------------------------------------------------------------------------------

NALIN SYNTEX PRIVATE LIMITED

(RS. IN MILLIONS)

BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.995	0.995	0.995
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20.171	18.925	17.740
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		21.166	19.920	18.735
LOAN FUNDS
1] Secured Loans		24.257	19.793	19.750
2] Unsecured Loans		0.239	0.114	0.176
TOTAL BORROWING		24.496	19.907	19.926
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		45.662	39.827	38.660
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.589	14.458	14.568
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.075	0.075	0.075
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.943	15.817	16.338
	Sundry Debtors	7.461	7.782	9.887
	Cash & Bank Balances	0.760	0.339	0.077
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.183	8.285	8.123
Total Current Assets		34.347	32.223	34.425
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.381	6.148	10.307
	Other Current Liabilities	0.757	0.676
	Provisions	0.211	0.105	0.105
Total Current Liabilities		7.349	6.929	10.412
Net Current Assets		26.998	25.294	24.013
MISCELLANEOUS EXPENSES		0.000	0.000	0.004
TOTAL		45.662	39.827	38.660

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	49.495	55.151	64.374
		Other Income	0.000	0.000	0.000
		TOTAL (A)	49.495	55.151	64.374
Less	EXPENSES
		Increase/(Decrease) in Stock	3.949	(6.494)	1.774
		Raw Material Consumed	34.899	50.736	50.827
		Manufacturing Expenses	0.363	0.242	0.465
		Payments to and Provision for Employees	1.543	1.635	1.447
		Administrative Expenses	1.966	2.504	2.304
		Selling and Distribution Expenses	1.205	1.011	1.490
		TOTAL (B)	43.925	49.634	58.307
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.570	5.517	6.067
Less	FINANCIAL EXPENSES (D)		2.880	2.880	3.548
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.690	2.637	2.519
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.934	0.917	0.801
	PROFIT BEFORE TAX (E-F) (G)		1.756	1.720	1.718
Less	TAX (H)		1.221	0.466	0.567
	PROFIT AFTER TAX (G-H) (I)		0.535	1.254	1.151
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
Less	APPROPRIATIONS
		Premium on Preference Shares	0.095	0.095	0.095
		Dividend	0.090	0.090	0.090
		Tax on Dividend	0.015	0.015	0.015
	BALANCE CARRIED TO THE B/S		0.335	1.054	0.951
	Earnings Per Share (Rs.)		5.38	12.60	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.08	2.27	1.78
Net Profit Margin (PBT/Sales)	(%)	3.55	3.12	2.67
Return on Total Assets (PBT/Total Assets}	(%)	3.32	3.68	3.51
Return on Investment (ROI) (PBT/Networth)		0.08	0.09	0.09
Debt Equity Ratio (Total Liability/Networth)		1.50	1.35	1.61
Current Ratio (Current Asset/Current Liability)		4.67	4.65	3.31

------------------------------------------------------------------------------------------------------------------------------

Further growth plans underway in PFY

The company has pursued various growth opportunities in PFY. As a part of a well carved out strategy, the Company is pursuing various projects for variety yarn. The Company is also augmenting the capacity rationalization of various utilities and balancing facilities. These facilities will be completed in a phased manner and besides raising capacity, will pare production costs significantly.

Business Performance

The year has been year of significance and successful operations. The revenue for the year was higher at Rs.37.382 Millions as against Rs. 36.213 Millions in the previous years. This has largely been due to improved quality Product in the Product Mix, with effective management focus on costs and experience. This was also possible due to Company’s consultancy services in the field of textile and optimum utilization of available capital and human resources. The company expects to bring more funds at lower cost for better liquidity in the coming years.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10086204
Corporate identity number of the company	U17120MH1995PTC093080
Name of the company	MEHTA SYNTEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	75/13, Joy Apartments, J B Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
Type of charge	Book Debts Movable Property Immovable Property Others
Particular of charge holder	Corporation Bank SME-Marol Branch, Sarhar Bonanza Plaza, Marol, Andheri, Kurla, Andheri (East), Mumbai – 400059, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of Title Deeds- Continuity Letter. Supplemental Common deed of hypothecation (All the agree4ments constitute a single charge)
Date of instrument Creating the charge	17.04.2009
Amount secured by the charge	Rs. 14.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As stipulated by bank form time to time Terms of Repayment As stipulated by bank form time to time Margin As stipulated by bank form time to time Extent and Operation of the charge First Charge (Present and Future)- Total Limit Rs. 14.500 Millions (Cash Credit – Rs. 9.500 Millions, Import/ Inland LC Cum BG- Rs. 1.500 Millions, Term Loan Rs. 3.500 Millions and / or as stipulated by bank from time to time Others As stipulated by bank from time to time and as per agreement.
Short particulars of the property charged	First charge (Present and future) 1) Hypothecation of all Stocks/ goods/ inventory including brought under L.C. 2) Hypothecation of all book debts and receivables. 3) Hypothecation of all current, movable and fixed assets 4) EMG of Plot bearing No. F-1/13, Admeasuring are of 1000 sq. mtrs situated in the industrial area known as “Tarapur Industrial Area” situated at kolwade, Palghar, Thane constructed on the place and parcel of non agricultural land bearing plot No. F 1/13 of village kolwade, Taluka- Palghar and District Thane

Corporate identity number of the company	U17120MH1995PTC093080
Name of the company	MEHTA SYNTEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	75/13, Joy Apartments, J B Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property All Current and Fixed Assets
Particular of charge holder	Corporation Bank SME-Marol Branch, Sarhar Bonanza Plaza, Marol, Andheri, Kurla, Andheri (East), Mumbai – 400059, Maharashtra, India adlalwani@rediffmail.com
Nature of instrument creating charge	Memorandum of Deposit of Title Deeds Common Deed of Hypothecation of Movable/ Assets/ Debts (All the above agreement constitute a single charge)
Date of instrument Creating the charge	04.01.2008
Amount secured by the charge	Rs.12.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: As Stipualted by Bank From Time to Time Terms of Repayment: As Stipualted by Bank From Time to Time Margin: As Stipualted by Bank From Time to Time Extent and Operation of the charge: First Charge (Present and Future) As Stipualted by Bank From Time to Time, Total Limit Rs.12.500 Millions Credit – Rs.7.000 Millions, Import/ Inland LC Cum BG – Rs.1.500 Millions, Term Loan Rs.4.000 Millions Others: As Stipualted by Bank From Time to Time and as per agreement attached and as per sanction letter of the Bank.
Particulars of the property charged	First Charge (Present and Future) Hypothecation of all Stock/ Goods/ Inventory Including Brought under LC Hypothecation of Book debts and Receivable Hypothecation of all current Movable and fixed assets EMG of Plot Bearing No. F – 1/13, Admeasuring Area of 1000 Sq. Mtrs. Situated in the Industrial Area known as “Tarapur Industrial Area” Situated at Kolwade, Palghar, Thane Construction on the place and parcel of Non Agricultural Land Bearing Plot No.F1/13 of Village Kolwade, Taluka-Palghar and District - Thane

FIXED ASSETS:

• Building
• Plant and Machinery – Rs.4.469 Millions
• Land and Building – Rs.3.890 Millions
• Furniture and Fixture – Rs.0.527 Million
• Other Assets – Rs.0.716 Million
• Office Equipment
• Computers
• 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 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.45.24
UK Pound	1	Rs.72.57
Euro	1	Rs.63.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.