MIRA INFORM REPORT

Report Date :

21.05.2011

IDENTIFICATION DETAILS

Name :	SILVER SPARK APPAREL LIMITED (w.e.f. 16.09.2003)
Formerly Known As :	RAYMOND TECHNOLOGY SOLUTIONS LIMITED
Registered Office :	New Hind House, Narottam Morarjee Marg, Ballard Estate, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.07.2000
Com. Reg. No.:	11-127831
Capital Investment / Paid-up Capital :	Rs.170.000 millions
CIN No.: [Company Identification No.]	U72900MH2000PLC127831
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Trousers and Jackets.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 720000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Raymond Limited. It is an established company having moderate track. The financial position of the company is improving. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	New Hind House, Narottam Morarjee Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22686000
Fax No.:	91-22-22620052
E-Mail :	uma.ram@raymond.in
Website :	http://www.raymondindia.com
Factory :	SR.# 56, Majara Hosahalli, Behind DIADB Industrial Estate, Veerapur P.O., Doddaballapur, Bangalore – 561 203, Karnataka, India
Tel. No.:	91-80-27630449
Fax No.:	91-80-27630438

DIRECTORS

As on 05.06.2010

Name :	Mr. Gautam Hari V. Singhania
Designation :	Director
Address :	J.K. House, 59 A, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	09.09.1965
Date of Appointment :	20.07.2000
DIN No:	00020088
Name :	Mr. Pradeep Kumar Bhandari
Designation :	Director
Address :	Bungalow No.36, Neelkanth Woods, Enclaves B, Mullah Baug, Tikuji Ni Wadi Road, Thane (West), Thane – 400 610, Maharashtra, India
Date of Birth/Age :	15.08.1957
Date of Appointment :	20.07.2000
DIN No:	00021923
Name :	Mr. Shreyas G. Joshi
Designation :	Director
Address :	Bungalow No.8, Jekegram Pokhran Road No.1, Thane – 400 606, Maharashtra, India
Date of Birth/Age :	09.02.1959
Date of Appointment :	25.06.2004
DIN No:	00024616
Name :	Mr. Sunder Hariharan
Designation :	Managing Director
Address :	Bungalow No.15, Jekegram Pokhran Road No.1, Thane – 400 606, Maharashtra, India
Date of Birth/Age :	26.07.1959
Date of Appointment :	10.02.2004
DIN No:	00020583
Name :	Mr. Satyendra Kumar Singhal
Designation :	Director
Address :	Bungalow No.4, Jekegram Pokhran Road No.1, Thane – 400 606, Maharashtra, India
Date of Birth/Age :	05.06.1951
Date of Appointment :	12.06.2006
Date of Ceasing :	31.01.2011
DIN No:	00066207
Name :	Mr. Desh Deepak Khetrapal
Designation :	Director
Address :	601, 6^th Floor, Palm Beach, 67 A Pochkhanwala Road, Worli, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	05.07.1955
Date of Appointment :	18.12.2008
Date of Ceasing :	06.05.2010
DIN No:	02362633

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.06.2010

Names of Shareholders (Equity Shares)	No. of Shares
Raymond Limited jointly with Gautam Hari V. Singhani	10
Raymond Limited jointly with Balkrishna Kedia	10
Raymond Limited jointly with Pradeep Kumar Bhandari	10
Raymond Limited jointly with Ramchandra A. Prabhudesai	10
Raymond Limited jointly with Suhas B. Godse	10
Raymond Limited jointly with Priti N. Alkari	10
Raymond Limited jointly with Thomas Fernandes	10
Raymond Limited, India	6999930
Total	7000000

Names of Shareholders (Preference Shares)	No. of Shares
Raymond Limited, India	1000000
Total	1000000

As on 05.06.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Trousers and Jackets.

Products :

Item Code No. (ITC Code)	62031100
Product Description	Men’s Suits – 100% wool
Item Code No. (ITC Code)	62031919
Product Description	Men’s Suits – Wool and Polyester Blended
Item Code No. (ITC Code)	62033100
Product Description	Men's Jackets/ Blazer – 100% wool
Item Code No. (ITC Code)	62033990
Product Description	Men's Jackets/ Blazer – Wool and Polyester Blended
Item Code No. (ITC Code)	62034100
Product Description	Men's Trousers – 100% wool
Item Code No. (ITC Code)	62034990
Product Description	Men's Trousers – Wool and Polyester Blended

PRODUCTION STATUS (AS ON 31.03.2010)

Annual Capacity

Particulars	Installed Capacity	Registered
Trousers	1535000	1500000
Jackets	538200	450000

PRODUCTION STATUS

Particulars	Production Qty
Trousers:
- Own	427748
- Job Work	597397
Jackets :
- Own	237658
- Job Work	316591
Shirts:
- Own	7212
- Job Work	-

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan from a Bank	233.825	276.325
Working capital loans from a Bank (including foreign currency loans from a Bank Rs. NIL. Previous year Rs.20.885)	91.837	50.235
Loan from a Bank (For a car under Hire Purchase Arrangement)	0.000	0.104
Total	325.662	326.664

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Raymond Limited (the holding company)	150.796	150.796
Total	150.796	150.796

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	2^nd Floor, 252, Veer Sawarkar Road, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-66691000
Facsmile No.:	91-22-66547800/ 66547801
Holding Company :	Raymond Limited, India CIN No.: L17117MH1925PLC001208
Fellow Subsidiaries :	v Raymond Apparel Limited v ColorPlus Fashions Private Limited v Everblue Apparel Limited v Celebrations Apparel Limited v Ring Plus Aqua Limited v Scissors Engineering Products Limited v Pashmina Holdings Limited v R and A Logistics Inc. v J.K. Talabot Limited v Jaykayorg AG v Raymond (Europe) Limited v Raymond Woollen Outerwear Limited v Raymond Europe srl. v J.K. Files (India) Limited v Regency Textiles Portuguesa, Limitada v Solitaire Fashions Limited
Joint Ventures :	v Rayves Automotive Textile Company Private Limited
Other Related Parties where control exists :	v J.K. Ansell Limited v Raymond Zambaiti Limited v Solitaire Fashions Limited v Rose Engineered Products India Private Limited v Raymond Uco Denim Private Limited v UCO General Holding LLC v UCO Spinning Limited v UCO Fabrics Inc. v UCO Sportswear International NV v UCO Tesatura SRL v UCO Tesatura SRL v UCO Raymond Denim Holding NV v UCO Limited LLC

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions
1000000	Redeemable Preference Shares	Rs.100/- each	Rs.100.000 millions
	Total		Rs.200.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 millions
1000000	7% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.100.000 millions
	Total		Rs.180.000 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 millions
1000000	7% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.100.000 millions
	Total		Rs.170.000 millions

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		170.000	170.000	170.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.943	0.000	0.000
4] (Accumulated Losses)		0.000	(20.641)	(39.024)
NETWORTH		179.943	149.359	130.976
LOAN FUNDS
1] Secured Loans		325.662	326.664	401.759
2] Unsecured Loans		150.796	150.796	155.960
TOTAL BORROWING		476.458	477.460	557.719
DEFERRED TAX LIABILITIES		20.831	0.000	0.000
TOTAL		677.232	626.819	688.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		542.388	513.078	540.925
Capital work-in-progress		0.578	2.738	0.169
INVESTMENT		5.400	5.400	5.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories & accumulated costs	114.701	108.369	131.213
	Sundry Debtors	84.040	57.106	101.312
	Cash & Bank Balances	2.323	0.218	2.127
	Other Current Assets	32.315	28.107	33.868
	Loans & Advances	38.884	27.099	30.704
Total Current Assets		272.263	220.899	299.224
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.790	89.714	138.281
	Other Current Liabilities	5.155	11.913	6.490
	Provisions	29.452	13.669	12.252
Total Current Liabilities		143.397	115.296	157.023
Net Current Assets		128.866	105.603	142.201
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		677.232	626.819	688.695

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales, Services and Export Incentives	838.197	868.303	880.749
		Other Income	9.365	7.481	39.813
		TOTAL (A)	847.562	875.784	920.562
Less	EXPENSES
		Material Costs	402.374	392.526	468.271
		Manufacturing Costs	99.006	59.709	71.944
		(Increase)/ Decrease in Finished and Process Stocks and Accumulated Costs	(14.667)	10.206	26.543
		Employment Costs	164.259	173.250	151.103
		Administrative, Selling and General Expenses	81.006	165.992	74.400
		TOTAL (B)	731.978	801.683	792.261
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		115.584	74.101	128.301
Less	INTEREST & FINANCIAL EXPENSES (D)		19.839	20.949	15.893
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		95.745	53.152	112.408
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.952	31.671	29.940
	PROFIT BEFORE TAX (E-F) (G)		63.793	21.481	82.468
Less	TAX (H)		33.209	3.387	8.527
	PROFIT AFTER TAX (G-H) (I)		30.584	18.094	73.941
Add:	Prior Period Adjustments (Net)		0.000	0.289	(0.955)
	Excess/ (Short) provision for tax in respect of earlier years		0.000	0.000	(0.105)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(20.641)	(39.024)	(112.695)
	Transactional Gain for Employee Benefits		0.000	0.000	0.790
	BALANCE CARRIED TO THE B/S		9.943	(20.641)	(39.024)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	550.735	583.277	661.501
		Job work charges	129.046	143.266	75.352
	TOTAL EARNINGS		679.781	726.543	736.853
	IMPORTS
		Capital Goods	45.637	3.435	14.679
		Raw Materials	97.219	94.524	90.399
		Stores & Spares	2.651	4.526	4.042
	TOTAL IMPORTS		145.507	102.485	109.120
	Earnings Per Share (Rs.)		4.37	2.63	10.41

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.61	2.07	8.03
Net Profit Margin (PBT/Sales)	(%)	7.61	2.47	9.36
Return on Total Assets (PBT/Total Assets}	(%)	7.83	2.93	9.82
Return on Investment (ROI) (PBT/Networth)		0.35	0.14	0.63
Debt Equity Ratio (Total Liability/Networth)		3.44	3.97	5.46
Current Ratio (Current Asset/Current Liability)		1.90	1.92	1.91

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The gross turnover of the company was marginally lower at Rs.838.200 millions as compared to the previous year Rs.868.300 millions.

The company has a profit after tax of Rs.30.600 millions (previous year Rs.18.100 millions). In order to conserve resources of the company, the Director do not recommend any dividend for the year.

The company was successful in retaining its customer in the domestic and export markets and continues its endeavor to attract new customers. The company has met the quality standards set by reputed national and international brands.

JOINT VENTURES:

RAYVES AUTOMOTIVE TEXTILES COMPANY PRIVATE LIMITED

The Company has incurred a loss of Rs.11.651 millions (previous year: Rs.6.608 millions) during the period.

Rayves during the financial year has inducted a third Joint Venture Partner namely Kawashima Selkon Textiles Company Limited (Kawashima) from Japan. Kawashima has brought in funds equivalent to the existing partners and Equity Shares have been allotted to Kawashima. The three partners now hold 33.33% share each in Rayves.

FORM 8:

Corporate identity number of the company	U72900MH2000PLC127831
Name of the company	SILVER SPARK APPAREL LIMITED
Address of the registered office or of the principal place of business in India of the company	New Hind House, Narottam Morarjee Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India E-Mail: uma.ram@raymond.in
This form is for	Modification of charge
Charge identification number of the modified	80006708
Type of charge	Book Debts Movable Property Floating Charge Others (Stock)
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: Sravan.bhandekar@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Fifth Supplemental Letter of Hypothecation of Stocks, Book Debts and Machinery dated March 28, 2011
Date of instrument Creating the charge	28.03.2011
Amount secured by the charge	Rs.769.400 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Mutually agreeable rates. Terms of Repayment: CC - On demand WCDL - Principal amount to be repaid as bullet payment on the maturity date Export Preshipment credit - Liquidation against submission of Export documents Export Postshipment credit - Liquidation against realization of Export documents Margin: 25% Extent and Operation of the charge: First Charge over entire movable Fixed assets and Current Assets both present and future.
Short particulars of the property charged	First Charge over entire movable Fixed assets and Current Assets both present and Future.
Date of latest modification prior to the present modification	17.03.2010
Particulars of the present modification	The working Capital limits has been increased from Rs.140.000 millions to Rs.200.000 millions. Hence the total credit facility has raised from Rs.709.400 millions to Rs.769.400 millions.

Name of the company	SILVER SPARK APPAREL LIMITED
Presented By	Mr. H. Sunder, Director
1) Date and description of instrument creating the change	Letter of Hypothecation of Stock, Book Debts and Machinery dated December 31, 2004 executed by Silverspark Apparel Limited hereinafter referred to as ‘ the Borrower’) in favour of HDFC Bank Limited (hereinafter referred to as ‘the Bank’). A copy of the said Letter of Hypothecation is enclosed hereto.
2) Amount secured by the charge/amount owing on the securities of charge	Credit facilities up to a maximum Principal amount of Rs.550.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	A first charge by way of hypothecation on: all the stock-in-trade both present and future consisting of raw materials, finished goods, goods-in-process of manufacturing and other merchandise whatsoever being movable properties now or at anytime hereafter belonging to the borrower or at our disposal and now or at anytime and from time to time hereafter stored or to be stored or brought into or upon or in course of transit to the borrower’s factory or premises or at any other place whatsoever and wheresoever in the borrowers possession or occupation or at any other premises or place (all of which hereinafter collectively referred to as ‘the said goods’); and all the book debts, outstanding moneys, receivable, claims and bills which are now due or owing or which may at anytime hereafter during the continuance of this security become due and owing to the borrower in course of its business by any person, firm, company or body corporate or by the Government Department or office or any Municipal or Local or Public or Semi-Government Body or Authority or any body corporate or undertaking or project whatever in the public sector (all of which hereinafter collectively referred to as ‘ the said debts’); and all the movable plant and machinery both present and future consisting of refer schedule 1, being movable properties, now stored at or being stored or which may hereafter be brought into or stored at or at present installed at Silver Soark Apparel Limited, Sr.# 56, Majara Hosahalli, Bh. KIADB Industrial Estate, Veerpura P.O. Doddaballapur, Bangalore-561023 (brief particulars whereof are set out in the Schedule hereunder written) and also the Plant and Machinery, which may at anytime hereafter belonging to the borrower or Borrower’s disposal and now or at anytime and from time to hereafter or to be stored or into or upon or in course of transit or awaiting transit by any mode of transport to the Borrower’s factory or premises or at any other premises or place (all of which hereinafter collectively referred to as the machinery)
4) Gist of the terms and conditions and extent and operation of the charge.	(i) the security created under the said Letter of Hypothecation is to be a continuing security for the repayment by the Borrower to the Bank all the monies now or at any time or from time to time hereafter due/may become due and owing to the Bank in respect of and under the above said Credit Facilities and interest and commission thereon and all legal and other costs, charges, payments, reimbursements and expenses relating thereto and payable hereunder and incidental to this security or for enforcement thereof; (ii) the Borrower shall not remove or cause or permit to be removed any of the said machinery from the place presently installed/ stored/from the said factory premises save and except the machinery which are absolence; (iii) the Borrower shall at all times during the continuance of this security maintain the said goods, said debts and said machinery of the sufficient quantity and value so as to provide the margin of security as may from time to time be advised by the Bank. (iv) the Borrower has undertaken the said goods in marketable and good condition at its own costs and to insure and keep insured the said goods and machinery and the premises where the records pertaining to the said debts are for the time being stored; (v) the Borrower shall cause a board or boards with the name of the Bank legibly and distinctly printed or written thereon to be placed and at all times maintained in a conspicuous position upon the said machinery or any of them or any part thereof or upon and within factory/Godown/premises or other places where the said machinery and said goods are kept; (vi) the Borrower shall pay all dues, rents, rates, taxes, payment and outgoings in respect of the premises in which the said machinery and the said goods may for the time being lying; (vii) the Borrower declares and guarantees that all the said machinery and all the goods present and future whether now hypothecated in future are and shall be the Borrower’s absolute and unencumbered property with full power of disposition over all such machinery; (viii) any insurance monies received by the Borrower shall be held as the Bank’s exclusive property specifically appropriated to this security; (ix) the Borrower shall furnish and verify all statements, reports, returns, certificates and information from time to time as required by the Bank; (x) the Borrower hereby irrevocably appoints the Bank to be the attorney of the Borrower to do all such acts, deeds and things and execute all such documents as may be required to be executed by the Borrower under the said Deed.
5) Name and Address and description of the person entitled to the charge.	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400 018, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2010 (Rs. in millions)
a) Guarantees given by the Company’s Bankers and Bonds and Letter of undertaking executed by the Company to Government Authorities for purchase under concessional duty/ exemption scheme in respect of (net of obligation completed):
- Capital Goods	1.981
- Raw Materials	44.554
b) Claims against the Company not acknowledged as debts (ESIC Matter)	0.836
c) Excise matters	9.582

FIXED ASSETS:

v Building

v Plant and Machinery

v Electrical Equipments

v Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is a wholly owned subsidiary of Raymond Limited; marking the group's foray into the Global Apparel Outsourcing market. Their unit manufactures suits and formal trousers catering largely to export markets.

They have state-of-the-art manufacturing facilities at the company's Doddaballapur plant, which produces 0.4 million suits, jackets and 2.0 million trousers annually. With a total built-up area of 2,00,000 square feet, the facility houses state-of-the-art manufacturing equipment. Set-up at a total project cost of USD 10 million, the plant's forte lies in the manufacture of jackets, which are at par with highly rated jackets from Italy or Japan. Fully compliant with international quality norms, their facility was audited and approved for commercial production by major American and Japanese menswear buyers.

THEIR UNIT

State-of-the-art manufacturing facilities at the company's Doddaballapur plant enable it to produce 0.4 million suits, jackets and 2.0 million trousers annually. With a total plant built-up area of 2,00,000 square feet, the facility houses specially imported state-of-the-art manufacturing equipment.

Set-up at a total project cost of USD 10 million, the plant's forte lies in the superior creation of jackets at par with the world-class jackets produced in Italy and Japan. Fully compliant with international quality norms, the facility was audited and approved for commercial production by major American and Japanese menswear buyers.

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.44.93
UK Pound	1	Rs.72.92
Euro	1	Rs.64.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.