MIRA INFORM REPORT

Report Date :

08.11.2011

IDENTIFICATION DETAILS

Name :	A V THOMAS LEATHER AND ALLIED PRODUCTS PRIVATE LIMITED (w.e.f. 08.11.2002)
Formerly Known As :	A V THOMAS LEATHER AND ALLIED PRODUCTS LIMITED
Registered Office :	22, Marshalls Road, Egmore, Chennai – 600 008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.09.1977
Com. Reg. No.:	18-007377
Capital Investment / Paid-up Capital :	Rs. 59.878 Millions
CIN No.: [Company Identification No.]	U18209TN1977PTC007377
TAN No.: [Tax Deduction & Collection Account No.]	CHEA00398G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Leather Goods, Shoe and Shoe Upper.
No. of Employees :	Around 160 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1731000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/ Factory 1 :	22, Marshalls Road, Egmore, Chennai – 600 008, Tamilnadu, India
Tel. No.:	91-44-28553249/ 22285324/ 28553248
Fax No.:	91-44-28553247
E-Mail :	avtmds@rmcs.sprintrpg.ems.vsnl.net.in avt@avtleather.com
Website :	http://www.avtleather.com
Area :	1850 sq. ft.
Location :	Owned
Factory 2 :	12, Race Course Road, Guindy, Chennai – 600 032, Tamilnadu, India
Branch Office :	118-A, Velachari Road, Guindy, Chennai – 600 032, Tamilnadu, India
Tel. No.:	91-44-32466772-800
Fax No.:	91-44-22201959
E-Mail :	avt@avtleather.com

DIRECTORS

As on 03.08.2010

Name

Mr. Ajit Thomas

Designation

Director

Address

24, Vijayaraghava Road, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/ Age :

07.06.1954

Date of Appointment :

18.06.2001

DIN No.:

00018691

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	U18209TN1977PTC007377	A V Thomas Leather and Allied Products Private Limited	Director	21-09-77	21-09-77	-	Active	NO
2	L51102TN1941PLC000023	A.V. Thomas International Limited	Director	27-09-78	27-09-78	29-01-10	Active	NO
3	L51109KL1935PLC000024	A V Thomas and Company Limited	Whole-time director	01-02-10	27-09-78	-	Active	NO
4	U67120TN1976PLC007167	A V Thomas Investments Company Limited	Director	25-06-80	25-06-80	-	Active	NO
5	L01117TZ1943PLC000117	Neelamalai Agro Industries Limited	Director	31-01-10	18-07-80	-	Active	NO
6	U25199KL1984PLC013414	Midland Latex Products Limited	Director	11-07-84	11-07-84	-	Active	NO
7	L15142TN1986PLC012780	AVT Natural Products Limited	Director	12-03-86	12-03-86	-	Active	NO
8	L01132KL1943PLC000782	The Nelliampathy Tea and Produce Company Limited	Director	31-07-11	18-08-89	-	Active	NO
9	L25191KL1937PLC000691	Midland Rubber and Produce Company Limited	Director	31-07-10	20-03-91	-	Active	NO
10	U33112TN1993PTC026049	Teleflex Medical Private Limited	Director	18-11-93	18-11-93	-	Active	NO
11	U51225TN1993PTC026433	AVT Mccormick Ingredients Private Limited	Director	22-12-93	22-12-93	-	Active	NO
12	U72200TN2000PTC044810	AVT Infotech Private Limited	Director	25-04-01	25-04-01	-	Active	NO
13	U29119TN2002PTC048352	Sermatech Private Limited	Director	25-01-02	25-01-02	29-01-10	Active	NO
14	U74999TN1984PLC010850	A.V. Thomas Exports Limited	Director	02-07-04	02-07-04	-	Active	NO
15	U72300TN1999PTC043754	IQ Tech Private Limited	Director	05-08-04	05-08-04	29-01-10	Active	NO
16	U67120TN2005PTC055674	Ajit Thomas Holdings Private Limited	Director	16-03-05	16-03-05	-	Active	NO
17	U65993TN2005PTC055807	Midland Corporate Advisory Services Private Limited	Director	30-03-05	30-03-05	-	Active	NO
18	U65993MH1996PLC211198	L and T Mutual Fund Trustee Limited	Director	06-07-06	06-07-06	16-06-10	Active	NO
19	U72200TN2003PTC051522	Tekessence Software Solutions Private Limited	Director	25-10-07	25-10-07	16-12-09	Active	NO
20	U15499TN2008PTC065914	AVT Gavia Foods Private Limited	Director	02-01-08	02-01-08	-	Active	NO
21	L72200TN1999PLC054429	Saksoft Limited	Director	06-08-10	31-07-09	-	Active	NO
22	L01131TN1943PLC002723	L.J. International Limited	Director	29-10-09	29-10-09	-	Active	NO

Name

Mr. Dilip Thomas

Designation

Director

Address

9, Lodi Khan Street, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/ Age :

07.08.1958

Date of Appointment :

18.06.2001

DIN No.:

00052185

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	L51102TN1941PLC000023	A.V. Thomas International Limited	Director	19-03-84	19-03-84	-	Active	NO
2	L51109KL1935PLC000024	A V Thomas and Company Limited	Director	08-09-10	25-04-85	-	Active	NO
3	L25191KL1937PLC000979	The Rajagiri Rubber and Produce Company Limited	Director	25-04-85	25-04-85	-	Active	NO
4	L01131TN1943PLC002723	L.J. International Limited	Director	25-04-85	25-04-85	-	Active	NO
5	L01119KL1925PLC000416	The Highland Produce Company Limited	Managing director	01-04-11	25-04-85	-	Active	NO
6	U18209TN1977PTC007377	A V Thomas Leather and Allied Products Private Limited	Director	30-09-87	30-09-87	-	Active	NO
7	U67120TN1976PLC007167	A V Thomas Investments Company Limited	Director	21-08-92	21-08-92	-	Active	NO
8	U92412KA1993PTC014593	Golfware (India) Private Limited	Director	28-07-93	28-07-93	-	Active	NO
9	U36999TN1998PLC041346	Dalp Trading and Manufacturing Limited	Director	30-10-98	30-10-98	-	Active	NO
10	L22213TN1995PLC031845	Universal Print Systems Limited	Director	20-06-00	20-06-00	12-06-08	Active	NO
11	U74999TN1984PLC010850	A.V. Thomas Exports Limited	Director	02-07-04	02-07-04	-	Active	NO
12	U02021TZ2007PTC013547	AVT Wood Products Private Limited	Director	21-03-07	21-03-07	-	Active	NO

Name

Ms. Shanthi Thomas

Designation

Director

Address

24, Vijayaraghava Road, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/ Age :

28.07.1954

Name

Mrs. Priyalatha Thomas

Designation

Director

Address

9, Lodi Khan Street, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/ Age :

15.07.1960

Date of Appointment :

29.02.2002

PAN No.:

AAAPT3406B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 03.08.2010

Names of Shareholders	No. of Shares
Ajit Thomas	493900
Dilip Thomas	492750
Priyalatha Thomas	1150
Total	987800

List of Allottees (Preference Shares)
L.J. International Limited, India	500000
Total	500000

As on 02.03.2011

List of Allottees (Redeemable Preference Shares @ 6% p.a. on or before 10 years)	No. of Shares
A V Thomas and Company Limited, India	1000000
Total	1000000

Equity Share Breakup (Percentage of Total Equity)

As on 03.08.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Leather Goods, Shoe and Shoe Upper.

Products :

Item Code No.	Product Description
420221	Leather Wallets
420221	Leather Goods

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Leather Goods	Nos.	4447144
Shoes and Shoe Upper	Nos.	359096

GENERAL INFORMATION

No. of Employees :

Around 160 (Approximately)

Bankers :

• Indian Bank, Park Town Branch, 53 Raja Muthiah Road, Leather Chennai - 600 003, Tamilnadu, India
• State Bank of India, Commercial Branch, 232 NSC Bose Road, Second Line Beach, Chennai – 600 001, Tamilnadu, India
• CITI Bank N.A., No.2, Club House Road, Annasalai, Chennai – 600 002, Tamilnadu, India
• Bank of Baroda
• State Bank of Travancore
• The South Indian Bank Limited
• HDFC Bank Limited
• Punjab National Bank

Facilities :

SECURED LOANS	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks:
Packing Credit (Secured by hypothecation of inventories and Receivables)	590.393	520.712
Term Loan (Secured by hypothecation of Plant and Machinery)	0.000	2.913
Car Loan (Secured by hypothecation of Motor Car	2.294	4.173
Total	592.687	527.798
UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Employees’ Housing Loan from Housing Development Finance Corporation Limited	0.000	0.272
Total	0.000	0.272

Banking Relations :	--
Auditors :
Name :	Suri and Company Chartered Accountants
Address :	No. 3 (Old No.55-A), Chevaliar Sivaji Ganesan Road, (South Boag Road), Thyagarayanagar, Chennai – 600 017, Tamilnadu, India
Tel No.:	91-44-24341140 / 24341150
Fax No.:	91-44-24341170
E mail:	suriche@eth.net
PAN No.:	AABFS5023Q
Subsidiaries :	· A V Thomas Exports Limited CIN No.: U74999TN1984PLC010850 Address: A-8, Dhandeeswarar Nagar, 3^rd Cross Street, Velacherry, Chennai – 600 042, Tamilnadu, India Tel. No. 91-44-22430082 A V Thomas Leather (UK) Limited AVT Leather Inc, USA
Associates:	A V Thomas and Company Limited 174, Thambu Cheety Street, Chennai – 600 001, Tamilnadu, India Tel. No. 91-44-25231892 (Air and Sea Department - Travel agents and clearing and forwarding agents) Neelamalai Agro Industries Limited Address: 27 Mc Nichols Road, Chennai – 600 031, Tamilnadu, India Tel. No. 91-44-29216332 The Neliampathy Tea and Produce Limited (Plantations, Agrochemical, Oil Extractions, Medical Rubber Products, Hospital Supplies, Plant Bio-Technology etc) AVT Natural Products Limited Address: 72/B, Chesney Estates, Ethiraj Salai, Chennai – 600 010, Tamilnadu, India Teleflex Medical Private Limited Address: 59, Rems Street, Kilpauk, Chennai - 600010, Tamil Nadu, India Tel. No. 91-44-26448588 · L.J. International Limited · A.V. Thomas Investments Company Limited · AVT Infotech Private Limited · S.T. Holdings Private Limited · Ajit Thomas Holdings Private Limited · Alina Private Limited · AVT Mc Comic Ingredients Limited · Midland Latex Products Limited · The Highland Produce Company Limited (Cardamom, Allied Products) · The Midland Rubber and Produce Company Limited · A V Thomas International Limited · The Rajagiri Rubber and Produce Company Limited · DALP Trading and Manufacturing Private Limited · Blue Mountain Developments Private Limited · IQ Tech Private Limited · AVT Natural Pte Limited · Heilongjiang AVT Bio-Products Limited (Formerly Tonghe AVT Natural Limited) · AVT Wood Products Private Limited · AVT Gavia Foods Private Limited

CAPITAL STRUCTURE

After 03.08.2010

Authorised Capital : Rs.210.000 millions

Issued, Subscribed & Paid-up Capital : Rs.159.878 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/-each	Rs.10.000 Millions
500000	5% Redeemable Preference Shares	Rs.100/-each	Rs.50.000 Millions
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
987800	Equity Shares (Of the above 889020 shares have been allotted as fully paid-up bonus shares by capitalization from General Reserve)	Rs.10/-each	Rs.9.878 millions
500000	5% Redeemable Preference Shares	Rs.100/-each	Rs.50.000 Millions
	Total		Rs. 59.878 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		59.878	9.878	9.878
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		372.829	347.527	313.592
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		432.707	357.405	323.470
LOAN FUNDS
1] Secured Loans		592.687	527.798	523.078
2] Unsecured Loans		0.000	0.272	0.497
TOTAL BORROWING		592.687	528.070	523.575
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1025.394	885.475	847.045
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		114.131	125.191	141.900
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		12.592	12.106	14.960
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	757.451	744.890	694.290
	Sundry Debtors	203.563	141.520	102.591
	Cash & Bank Balances	11.698	30.756	31.550
	Other Current Assets	0.062	0.106	0.024
	Loans & Advances	183.291	258.288	207.480
Total Current Assets		1156.065	1175.560	1035.935
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	171.437	266.205	184.419
	Current Liabilities	33.739	87.437	70.000
	Provisions	52.218	73.740	91.331
Total Current Liabilities		257.394	427.382	345.750
Net Current Assets		898.671	748.178	690.185
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1025.394	885.475	847.045

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Operation	2006.800	2205.656	2236.857
		Other Income	9.415	45.861	3.333
		TOTAL (A)	2016.215	2251.517	2240.190
Less	EXPENSES
		(Increase)/ Decrease in Stock	1889.606	(39.263)	47.670
		Material Consumed		1217.959	1291.111
		Refinishing and other Labour Charges		266.995	250.640
		Purchase of finished goods		192.212	146.777
		Employees’ cost		178.616	149.881
		Other Expenses		301.037	227.946
		TOTAL (B)	1889.606	2117.556	2114.025
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		126.609	133.961	126.165
Less	INTEREST AND BANK CHARGES (D)		62.289	63.543	52.884
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		64.320	70.418	73.281
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.159	23.005	24.476
	PROFIT BEFORE TAX (E-F) (G)		44.161	47.413	48.805
Less	TAX (H)		12.300	7.700	13.745
	PROFIT AFTER TAX (G-H) (I)		31.861	39.713	34.305
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		56.726	26.792	8.265
Less	APPROPRIATIONS
		Dividend on Equity Shares @ 50%	4.939	4.939	4.939
		Dividend on Preference Shares	0.685	0.000	0.000
		Tax on Dividend	0.934	0.840	0.839
		Transfer to General Reserve	20.000	4.000	10.000
	BALANCE CARRIED TO THE B/S		62.029	56.726	26.792
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods calculated on FOB basis	1722.529	1844.341	1888.978
	TOTAL EARNINGS		1722.529	1844.341	1888.978
	IMPORTS
		Components and Spares	1.931	0.380	1.311
		Capital Goods	4.069	1.023	10.560
		Leather	187.640	215.904	337.543
		Embellishment	120.033	72.623	107.447
		Chemicals	1.911	5.496	11.339
		Packing Material	42.113	39.462	23.735
	TOTAL IMPORTS		357.697	334.888	491.935
	Earnings Per Share (Rs.)		31.56	40.20	34.73

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.58	1.76	1.53
Net Profit Margin (PBT/Sales)	(%)	2.20	2.15	2.18
Return on Total Assets (PBT/Total Assets}	(%)	3.48	3.65	4.14
Return on Investment (ROI) (PBT/Networth)		0.10	0.13	0.15
Debt Equity Ratio (Total Liability/Networth)		1.96	2.67	2.69
Current Ratio (Current Asset/Current Liability)		4.49	2.75	3.00

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The company has achieved an operating income of Rs.2006.800 Millions during the year compared to Rs.2205.700 Millions in the previous year. The company has earned a profit of Rs.44.161 Millions after providing Rs.20.159 Millions for depreciation.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90295950
Corporate identity number of the company	U18209TN1977PTC007377
Name of the company	A V THOMAS LEATHER AND ALLIED PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	22, Marshalls Road, Egmore, Chennai – 600 008, Tamilnadu, India
Type of charge	Book Debts Immovable Property
Particular of charge holder	Indian Bank, Park Town Branch, 53, Raja Muthiah Road, Chennai – 600 003, Tamilnadu, India
Nature of description of the instrument creating or modifying the charge	Agreement Ceding Pari Passu Charge
Date of instrument Creating the charge	22.07.2008
Amount secured by the charge	Rs. 305.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Original Agreements Terms of Repayment As per Original Agreements Margin As per Original Agreements Extent and Operation of the charge As per Original Agreements
Short particulars of the property charged	The securities viz. movable and immovable assets already provided the bank continue to be extended for the present limit of Rs. 305.000 Millions
Date of latest modification prior to the present modification	19.01.2007

Name of the company	A V THOMAS LEATHER AND ALLIED PRODUCTS LIMITED
Presented By	Mr. Ajit Thomas
1) Date and description of instrument creating the change	Goods Security Agreement Dated 22.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Working Capital Facility of RS.80.000 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	Pari - Passu Charge on all present and future stock and book debts of the company. Pari – Passu Charge on all plant and machinery and all office equipment of the company including computers, air conditioners furniture and fixture and all the movable assets of the company both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest rate of 7.25% per annum on cash credit Penal interest @ 4.00% per annum over prime lending rate on over dues, delays, default of any monies payable.
5) Name and Address and description of the person entitled to the charge.	CITI Bank NA No.2, Club House Road, Chennai – 600002.
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

FIXED ASSETS:

v Building

v Plant and Machinery

v Furniture and Fixtures

v Electrical Installation

v Office Equipment

v 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 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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		66

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.