MIRA INFORM REPORT

Report Date :

10.11.2011

IDENTIFICATION DETAILS

Name :	RAYMOND APPAREL LIMITED
Registered Office :	C- 10, Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.10.2006
Com. Reg. No.:	18-61384
Capital Investment / Paid-up Capital :	Rs.363.000 Millions
CIN No.: [Company Identification No.]	U18109TN2006PLC061384
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Marketers of Readymade Garments.
No. of Employees :	175 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 5900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of Raymond Limited. 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. 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 :	C- 10, Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu, India
Tel. No.:	91-44-26241312
Fax No.:	91-44-26254594
E-Mail :	priti.alkari@raymond.in uma.ram@raymond.in
Website :	http://www.raymondindia.com
Head Office :	New Hind, N M Road, Ballard Estate, Mumbai – 400038, Maharashtra, India
Tel No.:	91-22-56609999
Corporate Office :	Raymond Limited Mahindra Towers, 2nd Floor, B Wing, Pandurang Budhkar Marg, Worli, Mumbai – 400018, Maharshtra, India
Tel. No.:	91-22-40349999

DIRECTORS

As on 01.06.2011

Name :

Mr. Aniruddha Deshmukh

Designation :

Director

Address :

Bunglow No.5, Raymond Staff Colony, Jekegram Pokhran Road 1, Thane – 400606, Maharashtra, India

Date of Birth/Age :

24.04.1958

Date of Appointment :

03.01.2007

Date of Ceasing :

29.07.2011

DIN No.:

01389267

Other Directorship :

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
U18109TN2006PLC061384	Raymond Apparel Limited	Director	21/05/2007	3/01/2007	29/07/2011	Active	NO
U18100PN2004PLC140524	Celebrations Apparel Limited	Additional director	28/07/2011	28/07/2011	-	Active	NO

Name :

Mr. Robert Lobo

Designation :

Director

Address :

RH 25, Custom colony, B CHS Limited, Military Road, Marol Andheri (East), Mumbai – 400059, Maharashtra, India

Date of Birth/Age :

25.02.1960

Date of Appointment :

03.01.2007

Date of Ceasing :

29.07.2011

DIN No.:

00074035

Other Directorship :

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
U17120MH2004PLC149276	Raymond Zambaiti Limited	Director	30/03/2005	30/03/2005	-	Active	NO
U18109TN2006PLC061384	Raymond Apparel Limited	Director	21/05/2007	3/01/2007	29/07/2011	Active	NO

Name :

Mr. Hariharan Sunder

Designation :

Director

Address :

5C, Regency Park – B, Eden Woods Complex, Gladys Alvares Marg, Off Pokhran Road No.2, Thane (West), Maharashtra, India

Date of Birth/Age :

26.07.1959

Date of Appointment :

25.09.2010

DIN No.:

00020503

Other Directorship :

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
U17119GJ1991PTC016260	Ruchi Synthetics Private Limited	Director	16/09/1991	16/09/1991	-	Active	NO
U17114GJ1990PTC013677	Dupoint Textiles Private Limited	Director	25/10/1991	25/10/1991	-	Active	NO
U17119GJ1991PTC014853	Shree Jagnath Synthetics Private Limited	Director	16/12/1991	16/12/1991	-	Active	NO
U17119GJ1990PTC014174	Matrilon Textiles Private Limited	Director	1/02/1993	1/02/1993	-	Active	NO
U17110GJ1990PTC013679	Amidhara Synthetics Private Limited	Director	12/11/1994	12/11/1994	-	Active	NO
U17114GJ1990PTC013680	Sabnam Synthetics Private Limited	Director	10/12/1996	10/12/1996	-	Active	NO
U65990GJ2000PTC037226	Intelligent Financial Services Private Limited	Director	21/01/2000	21/01/2000	-	Active	NO

KEY EXECUTIVES

Name :	Mrs. Priti Alkari
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2010

Names of Shareholders	No. of Shares (Equity)
Raymond Limited, India	1998919
Raymond Limited, India / JTLY H Sundar	541
Raymond Limited, India / JTLY Thomas Fernandes	108
Raymond Limited, India / JTLY Priti Alkari	108
Raymond Limited, India / JTLY G M Jain	108
Raymond Limited, India / JTLY Aniruddha Deshmukh	108
Raymond Limited, India / JTLY Robert Lobo	108
Total	2000000
Names of Shareholders	No. of Shares Preference
Raymond Limited, India	3430000
Total	3430000

Equity Share Break up (Percentage of Total Equity)

AS ON 25.09.2010

Category	Percentage
Bodies Corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Readymade Garments.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
Men’s Trousers of Synthetic Fibres	62034300
Men’s Shirts of Cotton	62052002
Men’s Suits of Wool	62031100

GENERAL INFORMATION

No. of Employees :

175 (Approximately)

Bankers :

· Bank of India

M. G. Road, Mumbai – 400 001, Maharashtra

· Bank of Maharashtra

Naupada Branch, Gokhale Road, Thane – 400602, Maharashtra, India

· Bank of Rajasthan Limited

Fort Branch , Mumbai, Maharashtra, India

· Axis Bank Limited

Thane Branch, LBS Road, Thane, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan from Bank
- TUFS (Secured by hypothecation of specified machineries purchased under Technology up gradation fund scheme )	4.435	5.935
- Others (Secured by hypothecation of specified assets at the Brand Stores)	244.710	434.290
Working Capital Advances from Banks (Secured by hypothecation of stocks, book debts and other current assets)	757.441	606.637
Interest Accrued thereon
On Working Capital Loans	0.450	0.418
On Term Loan - TUFS	0.041	0.051
- Other	2.291	3.597
Total	1009.368	1050.928
Unsecured Loans	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Zero coupon fully Convertible Unsecured debentures (These debentures were issued on January 15, 2007 and shall be converted into equity shares of the company anytime after the expiry of 6 months, but before expiry of 60 months at a price which will be decided by board of directors of the company based on an Independent Valuers report )	285.000	285.000
Total	285.000	285.000

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	252, Veer Sawarkar Marg, Shivaji Partk, Dadar, Mumbai – 400028, Maharashtra, India
Related Parties where the control exists :	· Raymond Limited
Subsidiaries :	· Colourplus Fashions Limited
Fellow Subsidiary :	· Silver Spark Apparel Limited · Celebrations Apparel Limited · Raymond Wollen Outerwear Limited · JK Files (India) Limited
Other Related Parties where control exists for the related party stated :	· J. K. Helene Curtis Limited · J. K. Ansell Limited · J. K. Files (India) Limited
Joint Ventures :	· Raymond Zambaiti Limited · Raymond Uco Denim Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
23500000	Equity Shares	Rs.10/- each	Rs.235.000 Millions
5280000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.528.000 Millions
	Total		Rs.763.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
3430000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.343.000 Millions
	Total		Rs.363.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		363.000	363.000	370.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1112.424	886.060	50.000
4] (Accumulated Losses)		0.000	0.000	(726.155)
NETWORTH		1475.424	1249.060	(306.155)
LOAN FUNDS
1] Secured Loans		1009.368	1050.928	59.871
2] Unsecured Loans		285.000	285.000	0.000
TOTAL BORROWING		1294.368	1335.928	59.871
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2769.792	2584.988	(246.284)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		301.786	280.967	0.886
Capital work-in-progress		104.397	169.607	0.000
INVESTMENT		634.452	634.771	0.000
DEFERREX TAX ASSETS		134.433	123.702	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1382.999	1025.725	46.954
	Sundry Debtors	385.069	490.984	10.776
	Cash & Bank Balances	7.548	13.022	2.013
	Other Current Assets	63.134	19.343	0.055
	Loans & Advances	391.288	388.317	0.652
Total Current Assets		2230.038	1937.391	60.450
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	514.603	456.626	241.973
	Other Current Liabilities	91.537	78.261	2.061
	Provisions	29.174	26.563	63.586
Total Current Liabilities		635.314	561.450	307.620
Net Current Assets		1594.724	1375.941	(247.170)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2769.792	2584.988	(246.284)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Export Incentives	4687.927	4062.878	119.838
		Other Income	30.540	237.425	0.085
		TOTAL (A)	4718.467	4300.303	119.923
Less	EXPENSES
		Materials Cost	1956.856	1591.778	101.258
		Manufacturing and Operating Cost	418.297	407.285	0.000
		Increase/(Decrease) in Finished Goods	(104.498)	74.340	101.483
		Employees Cost	406.367	368.786	34.483
		Administrative, Selling and General Expenses	1578.386	1300.890	333.953
		Impairment of fixed Assets	0.000	0.000	7.973
		Exceptional Items	78.654	60.471	0.000
		TOTAL (B)	4334.062	3803.550	579.150
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		384.405	496.753	(459.227)
Less	FINANCIAL EXPENSES (D)		91.987	108.639	7.476
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		292.418	388.114	(466.703)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.781	117.438	37.251
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		215.637	270.676	(503.954)
Less	TAX (H)		(10.727)	(74.263)	1.501
	PROFIT/ LOSS AFTER TAX (G-H) (I)		226.364	344.939	(505.455)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		613.749	268.810	(220.700)
	BALANCE CARRIED TO THE B/S		840.113	613.749	(726.155)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB Basis	65.049	57.738	0.000
	TOTAL EARNINGS		65.049	57.738	0.000
	IMPORTS
		Raw Materials	59.478	33.845	0.000
		Packing Materials	17.317	3.280	0.000
		Merchanting Goods	279.293	73.087	44.298
		Stores	0.030	0.000
	TOTAL IMPORTS		356.118	110.212	44.298
	Earnings/ Loss Per Share (Rs.)		101.18	160.43	(27.32)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.79	8.02	(421.48)
Net Profit Margin (PBT/Sales)	(%)	4.60	6.66	(420.53)
Return on Total Assets (PBT/Total Assets}	(%)	8.51	12.20	(821.63)
Return on Investment (ROI) (PBT/Networth)		0.14	0.22	1.65
Debt Equity Ratio (Total Liability/Networth)		1.31	1.52	(1.20)
Current Ratio (Current Asset/Current Liability)		3.51	3.45	0.20

LOCAL AGENCY FURTHER INFORMATION

Financial Results

The turnover of the Company was higher by 15.38% at Rs.4687.900 Millions (Previous Year Rs.4062.900 Millions). The Net Profit after tax was lower at Rs.226.400 Millions (Previous Year Rs.344.939 Millions)

With a view to conserve resources for the Company’s growth plans, the Directors do not recommend dividend on 6% Cumulative Redeemable Preference Shares and the Equity Shares for the year. A sum of Rs.840.100 Millions (Previous Year Rs.613.700 Millions) is carried forward to the Balance Sheet.

Performance

The year was a big challenges as the economy was gradually coming out of the global recession and consumer sentiments showed improvements. The amalgamation of the Company helped enhancing the growth of the brand position and its leadership in the Branded Apparel Business. During the year the Company decided to discontinue with the Brand Zapp and some non performing Stores. However, several initiatives were taken to increase the retail footprint, efficiencies in usage of raw materials and the cost control measures were effectively applied. The Company continues its focus on product innovation and strategic measures to improve the overall performance.

Park Avenue is going through its Twenty fifth year of journey and over a period of past Twenty five years has created a position at the zenith in the Apparel Brands. In the coming years, with a new consumer dynamism and new energy in Indian economy. The Company is focused on operational efficiencies, market serviceability and continues to take steps to improve its market share.

Award

Brand Park Avenue has been awarded as the “Most Admired Men’s Formal wear Brand of the Year” in the recently concluded Indian Fashion Forum 2011.

FORM 8

Name of the company

RAYMOND APPAREL LIMITED

Presented By

Bank of Maharashtra, Naupada Branch, Thane – 400602, Maharashtra, Indi

1) Date and description of instrument creating the change

29.07.2000 Joint deed of hypothecation

2) Amount secured by the charge/amount owing on the securities of charge

Rs.170.000 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

The whole of the current assets of the borrower stocks of raw materials, stocks in process, semi finished and finished goods sores, spares not relating to plant and machinery bills, receivables and book dents and all other movables both which are now lying or stored in or about or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be held in State of Maharashtra or wherever else the same may be borrower or in the course of transit or on high seas or on high seas or an order or delivery howsoever and whosesoever in the possession of the borrower and either by way of substitution or addition and all the fixed assets of the company such as plant and machinery, furniture and fixture office equipment computers, automobiles vehicles and other fixed asset of the company premises any where in India or overseas or wherever in the possession of the borrower or otherwise

4) Gist of the terms and conditions and extent and operation of the charge.

Details of credit facilities

Facility	Bank of Maharashtra	BOR Limited
Cash credit	20.4	13.6
Demand Loan	81.6	54.4

Interest commission as per RBI / HO Rules

Security to cover principal amount together with interest cost, charges expenses etc.

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Navpada Branch,

Gokhale Road,

Thane – 400602

Bank of Rajasthan Limited

Fort Branch

Mumbai

Axis Bank Limited

Thane Branch, LBS Road, Thane, Maharashtra, India

6) Date and brief description of instrument modifying the charge

06.05.2005

Joint deed of hypothecation

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.

Original charge was created n 29.07.2000 for a sum of Rs.170.000 millions in aggregate

First modification enhanced the charge form Rs.170.000 millions to Rs.242 millions on 29.10.2001 including the charge of the Bank Consortium aggregating Rs.222 millions

Second Modification enhanced the charge from Rs.242 millions to Rs.285.4 millions on 28.02.2002 being registered with ROC on 21.03.2002 as document no 251

By present modification

By a joint deed of hypothecation the borrower hypothecates by way of first charge all such assets as are more particularly described in para 2 of the Joint Deed of Hypothecation dated 06.05.2005 to secured aggregate working capital facilities of Rs. 360 millions in favour of the Bank consortium as per following :

Details of credit facilities

Facility	Bank of Maharashtra	Axis Bank Limited	HDFC Bank Limited
Cash credit Hyp of Stocks and Goods	46.800	72.000	36.000
Working capital Demand loan Hyp of Book debts	187.200	18.000	0.000

Corporate identity number of the company	U51109MH1948PLC006460
Name of the company	RAYMOND APPAREL LIMITED
Address of the registered office or of the principal place of business in India of the company	New Hind House, N M Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge) Others movable plant and machinery
Particular of charge holder	Bank of Maharashtra Address: Naupada Branch, Gokhale Road, Thane – 400602, Maharashtra, India Email: bom110@mahabank.co.in
Nature of instrument creating charge	Composite deed of hypothecation
Date of instrument Creating the charge	28.08.2008
Amount secured by the charge	Rs.253.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest BPLR - 2.5% PRESENTLY 11% with monthly rests on the Term Loan under TUFS. Terms of repayment Moratorium of 24 months. Repayment from 25th month from date of first disbursement at Rs.2.642 millions p.m. i.e. within 8 years after moratorium. Margin 32.74% Extent and operation of the charge Security to cover principal, interest, cost, charges, expenses etc. Security shall be continuing security and shall extend to movables described column no.14. Others Term Loan is to finance the project having outlay of Rs.377.000 millions. Equitable mortgage to be created pertaining to plot / land admeasuring 120000 sq mtrs at MIDC, Talegaon and office/ factory/ canteen/ Warehousing and other buildings to be constructed thereon.
Short particulars of the property charged (Including location of the property)	First exclusive charge of hypothecation of movable assets, consumable stores, spares, as per Schedule III & IV being Tangible Furniture and Fixtures, Office Equipments, Electrical Equipments acquired for plant at Talegaon, Pune for suits, Jackets and Trousers, installations/ improvements to leasehold properties - present and future, tools, equipments, articles installed/ lying loose/ in cases at various sites/ shops, or in transit or held to the order/ disposition of the borrower company

FIXED ASSETS

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Improvements to Leasehold Premises

· Office equipment

· Computers

· Motor Vehicles

· Computer Software

WEB SITE DETAILS

Subject is one of the apparel companies in India. The company offers a range of fabric through various brands, such as Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Notting Hill and Zappl. Its product range includes men's shirts, suits, trousers, jackets, ties and accessories. Its accessories include cufflinks, belts, socks, shoes and leather bags. In addition, it operates through a network of brand stores and multi-brand outlets. The company also has a design studio that provides various designing solutions.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.78
UK Pound	1	Rs.80.11
Euro	1	Rs.68.82

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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		67

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.