MIRA INFORM REPORT

Report Date :

28.11.2011

IDENTIFICATION DETAILS

Name :	IMPERIAL GARMENTS LIMITED [w.e.f. 31.05.2005]

Formerly Known As :	IMPERIAL GARMENTS PRIVATE LIMITED

Registered Office :	Plot No.29, GTN House, Nagarjuna Hills, Punjagutta, Hyderabad-500 082, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	28.03.2000

Com. Reg. No.:	01-34077

Capital Investment / Paid-up Capital :	Rs.142.060 Millions

CIN No.: [Company Identification No.]	U18101AP2000PLC034077

TAN No.: [Tax Deduction & Collection Account No.]	HYDI00597C

PAN No.: [Permanent Account No.]	AAAGI7216H

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer and seller of Garments and Socks

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 201000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. There appears some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some 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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Plot No.29, GTN House, Nagarjuna Hills, Punjagutta, Hyderabad-500 082, Andhra Pradesh, India
Tel. No.:	91-40-23351582/5 / 43407777
Fax No.:	91-40-23358387 / 23358400
E-Mail :	sharedept@gtindustries.com hyd_patodia@gtnindustries.com

DIRECTORS

As on 26.09.2011

Name :

Mrs. Anjana Patodia

Designation :

Director

Address :

Plot No.145, Road No.03, Banjara Hills, Hyderabad-500 082, Andhra Pradesh, India

Date of Birth/Age :

23.07.1953

Date of Appointment :

07.08.2004

DIN :

00008264

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	U67120WB1979PTC031876	MEGHA INVESTMENTS PRIVATE LIMITED	Director	13/02/1979	13/02/1979	-	Active	NO
2	U65999WB1990PTC048387	FORWARD FINANCE PRIVATE LIMITED	Director	14/02/1990	14/02/1990	-	Amalgamated	NO
3	U65999WB1990PTC048410	EMKAYPEE INVESTMENTS PRIVATE LIMITED	Director	16/02/1990	16/02/1990	-	Active	NO
4	U17300AP1994PLC018701	PERFECT KNITTERS LIMITED	Director	7/11/1994	7/11/1994	22/08/2009	Active	NO
5	U18101AP2000PLC034077	IMPERIAL GARMENTS LIMITED	Director	7/8/2004	7/8/2004	-	Active	NO
6	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	17/12/2005	17/12/2005	-	Active	NO
7	U17116AP2003PLC041256	PERFECT SPINNERS LIMITED	Director	30/06/2006	30/06/2006	-	Active	NO

Name :

Mr. George Joseph Chempakathinal

Designation :

Director

Address :

Flat No.301, Swathi Apartments, 7-1-455/1, Ameerpet, Hyderabad-500 016, Andhra Pradesh, India

Date of Birth/Age :

02.02.1950

Date of Appointment :

31.08.2009

DIN :

00309739

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17300AP1994PLC018701	PERFECT KNITTERS LIMITED	Director	30/10/1995	30/10/1995	Active	NO
2	U18101AP2000PLC034077	IMPERIAL GARMENTS LIMITED	Whole-time director	31/08/2009	31/08/2009	Active	NO
3	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Additional director	28/01/2010	28/01/2010	Active	NO

Name :

Mr. Navin Sancheti

Designation :

Director

Address :

H. No. 3-6-168/4, Hyderguda, Hyderabad – 500029, Andhra Pradesh, India

Date of Birth/Age :

15.08.1975

Date of Appointment :

28.03.2000

DIN :

00062726

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	U18100AP1992PLC014941	SRI RAM SPINNING MILLS LIMITED	Director	29/09/1997	29/09/1997	-	Active	NO
2	U18101AP2000PLC034077	IMPERIAL GARMENTS LIMITED	Director	28/03/2000	28/03/2000	-	Active	NO
3	U65999WB1992PLC055727	GEETTEAN VINIYOG LIMITED	Director	3/12/2001	3/12/2001	30/04/2009	Active	NO
4	U18100AP1992PTC014567	STL ENTERPRISES (INDIA) Private Limited	Managing director	30/09/2006	30/09/2003	-	Active	NO

KEY EXECUTIVE

Name :	Mr. Daga Kumar Surendra
Designation :	Secretary
Address :	102, P and T Colony, Tirumulgiri, Secunderabad-500 015, Andhra Pradesh, India
Date of Birth/Age :	07.07.1968
Date of Appointment :	25.07.2008
PAN :	ACSPD8358A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Equity Shares	No. of Preference Shares
Anjana Patodia	1416900	0
Mahendra Patodia (HUF)	1717500	0
Susheel Kumar Sancheti	100	0
Naveen Kumar Sancheti	100	0
M. Satyanarayana	100	0
V. Raghuram	100	0
C R Gang	100	0
J. Venkateswarlu	100	0
GTN Engineering (India) Limited, India	3105000	650000
Megha Investments Private Limited, India	250000	0
Mahendra Kumar Patodia	100000	0
Jel Finance and Investments Limited, India	4616000	100000
Emkaypee Investments Private Limited, India	0	50000
Total	11206000	800000

As on 26.09.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		71.13
Directors or relatives of directors		28.87
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and seller of Garments and Socks

Products:

Item Code No. (ITC Code)	6109
Product Description	T. Shirts, Singlets and Other Vests, Knitted or Crocheted
Item Code No. (ITC Code)	6105
Product Description	Men’s or Boy’s Shirts, Knitted or Crocheted
Item Code No. (ITC Code)	6115
Product Description	Socks

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Installed Capacity [PCS/Per Annum]
Knitted Garments	Nos.	30,00,000
Socks	Pairs	90,000

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Actual Production
Finished Goods - Garments	Nos.	1180556
Finished Goods - Socks	Pairs	102080

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Corporation Bank, 3-6-285, Ground Floor, Ameer Mahal Apartments, Hyderguda, Hyderabad - 500029, Andhra Pradesh, India

Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffee Parade, Mumbai – 400 005, Maharashtra, India

Punjab National Bank

Facilities :

Secured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Term Loans (In Rupees) (a) From a Financial Institution (Under Technology Upgradation Fund Scheme)	79.116	81.439
(b) From a Bank	38.393	38.403
Working Capital Loan from Banks	63.725	68.371
Total	181.234	188.213

Term Loans are secured by first charge on the movable fixed assets and 1st equitable mortgage on immovable properties of the company both present and future, ranking pari-passu, inter-se. among term lenders. However, mortgage security is yet to be created. Further, secured by pari-passu second charge on the current assets of the company both present and future. Further, guaranteed by Mrs. Anjana Patodia (Director) and Mr. M.K.Patodia. Loan from a Bank is additionally secured by the guarantee given by a Body Corporate.

Working Capital Loans as stated above and Non Fund Based limits of Rs.2.427 millions (previous year 2.191 millions) availed from Banks are secured by way of hypothecation of current assets of the Company, both present and future and by second charge over the movable and Immovable fixed assets ranking pari-passu, Inter-se, among working capital Banks and also guaranteed by Mr. M K Patodia. Working Capital Loan from Banks includes, Rs.34.194 millions (Previous year Rs.30.315 millions) taken from Punjab National Bank is further guaranteed by Mrs. Anjana Patodia (Director).

Unsecured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From a Bank* Inter Corporate Deposits	9.810 25.342	17.362 0.00
Total	35.152	17.362
*Guaranteed by two bodies corporate and Mr. M.K. Patodia


Banking Relations :	-

Auditors :
Name :	D. K. Baid and Company Chartered Accountants
Address :	5-8-512, A-12 (2^nd Floor), Abids Shopping Center, Hyderabad - 500 001, Andhra Pradesh, India
Tel. No.:	91-40-23203648
PAN :	ABXPB8709M

Associates :	GTN Industries Limited Perfect Knitters Limited GTN Engineering [India] Limited Emkaypee Investments Private Limited JEL Finance and Investments Limited [Formerly Jubiliant Engineering Limited]

CAPITAL STRUCTURE

As on 26.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11,500,000	Equity Shares	Rs.10/- Each	Rs.115.000 millions
850,000	Preference Shares	Rs.100/- Each	Rs. 85.000 millions
	Total		Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,206,000	Equity Shares	Rs.10/- each	Rs.112.060 Millions
800,000	Preference Shares	Rs.100/- each	Rs. 80.000 millions
	Total		Rs.192.060 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
13,000,000	Equity Shares	Rs.10/- each	Rs.130.000 millions
200,000	12% Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 20.000 millions
	Total		Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,206,000	Equity Shares	Rs.10/- each	Rs.112.060 Millions
200,000	12% Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 20.000 millions
	Preference Share Application Money [Since Allotted]		Rs. 10.000 millions
	Total		Rs.142.060 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		142.060	122.060	87.060
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		[91.605]	(60.587)	(21.247)
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		50.455	61.473	65.813
LOAN FUNDS
1] Secured Loans		181.234	188.213	135.561
2] Unsecured Loans		35.152	17.362	17.188
TOTAL BORROWING		216.386	205.575	152.749
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		266.841	267.048	218.562

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		158.964	176.202	169.686
Capital work-in-progress		0.216	0.216	3.463

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		39.493	26.113	9.843

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.664	70.003	20.885
	Sundry Debtors	14.479	14.634	0.549
	Cash & Bank Balances	2.608	1.334	6.319
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.223	25.204	17.603
Total Current Assets		113.974	111.175	45.356
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.890	36.534	4.475
	Other Current Liabilities	9.840	10.047	5.203
	Provisions	0.076	0.077	0.108
Total Current Liabilities		45.806	46.658	9.786
Net Current Assets		68.168	64.517	35.570

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		266.841	267.048	218.562

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	268.128	223.865	94.821
		Other Income	0.095	0.613	0.043
		TOTAL (A)	268.223	224.478	94.864

Less	EXPENSES
		Cost of Material	122.447	118.444	56.158
		Personnel Expenses	59.325	50.141	34.479
		Manufacturing Expenses	60.826	45.060	12.961
		Sales & Distribution Expenses	19.020	16.672	2.957
		Other Expenses	16.496	15.178	10.165
		Loss /(Gain) on Forex Fluctuations	(1.533)	19.532	(4.244)
		Increase/ Decrease in Stock	(3.625)	(16.947)	(12.396)
		TOTAL (B)	272.955	248.080	100.080

	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(4.732)	(23.602)	(5.216)

Less	FINANCIAL EXPENSES (D)		21.219	15.353	10.415

	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(25.9951)	(38.955)	(15.631)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.352	16.221	13.786

	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		(44.303)	(55.176)	(29.417)

Less	TAX (H)		(13.285)	(15.836)	(8.141)

	PROFIT / [LOSS] AFTER TAX (G-H) (I)		(31.018)	(39.340)	(21.276)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(60.587)	(21.247)	0.029

	BALANCE CARRIED TO THE B/S		(91.605)	(60.587)	(21.247)

	EARNINGS IN FOREIGN CURRENCY
	FOB Value of Export		171.250	156.856	58.848
	TOTAL EARNINGS		171.250	156.856	58.848

	IMPORTS
	Stores & Spares		6.682	5.169	2.315
	Capital Goods – Machinery		0.000	8.996	1.094
	TOTAL IMPORTS		6.682	14.165	3.409

	Earnings Per Share (Rs.)		(3.02)	(4.47)	(5.07)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(11.56)	(17.53)	(22.43)

Net Profit Margin (PBT/Sales)	(%)	(16.52)	(24.64)	(31.02)

Return on Total Assets (PBT/Total Assets}	(%)	(16.23)	(19.20)	(13.68)

Return on Investment (ROI) (PBT/Networth)		(0.88)	(0.90)	(0.45)

Debt Equity Ratio (Total Liability/Networth)		5.20	4.10	2.47

Current Ratio (Current Asset/Current Liability)		2.49	2.38	4.63

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW:

During the financial year, the Company has achieved turnover to the tune of Rs.268.128 millions as against Rs. 223.865 millions in the corresponding previous year. However, with the lower margins due to global recession, the Company has incurred net loss before tax of Rs.44.304 millions during the year as against loss before tax of Rs.55.176 millions in the previous year. The Company added new customers and existing customers also have increased their off take resulting in higher turnover.

The Company has incurred losses mainly due to continuing Global recession, subdued market conditions and forex volatility. Presently, both Domestic as well as Export market are showing upward trend and the company expects to achieve higher' capacity utilization with reasonable margins. The Company has set up a unit to manufacture cotton socks and die product has been well accepted in the market. As per the provisions of Section 23 of Sick Industrial Companies (Special Provisions) Act, 1985, Company reported to B1FR on the basis of financials for the year 2008-09 vide its application dated 14^th November, 2009.

The Company has put lot of efforts in developing customers base and incurred substantial, amount in training operators, these efforts will yield results in the coming years. The promoters have infused Rs. 20.000 millions during the year by way of Share Capital of the Company to part finance the losses. The Directors are confident of achieving better results in the future.

Contingent Liabilities : [As on 31.03.2010]

Guarantees issued by banks in normal course of business Rs.0.706 millions [previous year Rs.2.191 millions]
Bills Discounted with the company’s bankers Rs.3.898 millions [previous year Rs.10.085 millions].

Bankers Charges Report as per Registry

Corporate identity number of the company	U18101AP2000PLC034077
Name of the company	IMPERIAL GARMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.29, GTN House, Nagarjuna Hills, Punjagutta, Hyderabad-500 082, Andhra Pradesh, India
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffee Parade, Mumbai – 400 005, Maharashtra, India Email : eximhro@eximbankindia.cin
Nature of instrument creating charge	A mortgage by delivery and deposit of title deeds over immovable properties situated at Chinthapally Village, Sangareddy Mandal, Medak District, in the State of Andhra Pradesh was created by Imperial Garments Limited (the Borrower) in favour of Export-Import Bank of India(Exim Bank) vide Memorandum of Entry dated April 28 , 2011(MOE) for securing loan of Rs. 90.800 millions ("the Loan") made available to Borrower.
Date of instrument Creating the charge	28.04.2011
Amount secured by the charge	Rs.90.800 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - 12% p.a, payable monthly Terms of Repayment - 32 stepped up installments Margin – 38.94% Extent and Operation of the charge - First pari passu charge on the entire fixed assets and immovable properties and second charge on the entire current assets of the company both present and future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The immovable properties of the Borrower situated at Chinthapally Village, Sangareddy Mandal, Medak District, in the Sate of Andhra Pradesh.

Bankers Charges Report as per Registry

Name of the company	IMPERIAL GARMENTS LIMITED
Presented By	Mr. C R. Garg, Director
1) Date and description of instrument creating the change	Unattested Deed of Hypothecation dated 10^th February 2006 executed by Imperial Garments Limited (therein and hereinafter referred to as the Borrower”) In favour of Export-Import Bank of India (“Exim Bank),
2) Amount secured by the charge/amount owing on the securities of charge	Loan of Rs.90.800 millions together with interest, compound interest, additional interest by way of liquidated damages (in case of default), costs (legal costs on a full indemnity basis), charges, expenses and all other monies payable by the Borrower to Exim Bank under the Loan Agreement dated 10^th February 2006 made between the Borrower and Exim Bank.
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 Borrower’s movable assets, both present and future, briefly described in Schedule Ill to the Deed of Hypothecation, including its moveable plant and machinery, and current assets, both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	(a) The charge created by the aforesaid Deed of Hypothecation shall Operate as a continuing security by way of a pari passu first charge over the Borrower’s moveable fixed assets and pan passu second charge over the Borrower’s current assets for the due repayment by the Borrower to Exim Bank of the Loan of Rs.90.800 millions together with payment of interest, compound interest, additional Interest by way of liquidated damages (in case of default), costs (legal costs on a full indemnity basis), charges. Expenses and all other monies payable by the Borrower to Exim Bank in terms of the said Loan Agreement. (b) The said charge shall rank in the order of priority set out In Schedule IV to the Deed of Hypothecation.
5) Name and Address and description of the person entitled to the charge.	Export-Import Bank of India, Centre One Building, Floor 21 World Trade Centre Complex, Cuffee Parade, Mumbai – 400 005, 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

This form is for	Modification of charge
Charge identification number of the modified	10021210
Corporate identity number of the company	U18101AP2000PLC034077
Name of the company	IMPERIAL GARMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.29, GTN House, Nagarjuna Hills, Punjagutta, Hyderabad-500 082, Andhra Pradesh, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Corporation Bank, 3-6-285, Ground Floor, Ameer Mahal Apartments, Hyderguda, Hyderabad - 500029, Andhra Pradesh, India
Nature of description of the instrument creating or modifying the charge	Supplementary Common Deed of Hypothecation of Movables/Assets/Debts
Date of instrument Creating the charge	27.12.2008
Amount secured by the charge	Rs.67.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest PCL- CC:13.50 p.a PCL:10.00% (subject to revision from time to time ) FDBN :10.00% p.a at present subject to revision from time to time PCL ADHOC :10.75% p.a 2.50% below the bank's COBAR Terms of Repayment Running account repayable on demand subject to annual renewal Margin CC: 25% on stock/book debts PCL-10% on FOB Value Bank Guarantee :10% cash margin Extent and Operation of the charge the charge operates as a security on assets of the Company to the Supplementary deed of hypothecation of movables/assets/debts for due repayment of various credit facilities by the Company
Short particulars of the property charged	the Supplementary Common Deed of Hypothecation of Movables/Assets/Debts
Particulars of the present modification	Renewal of existing credit facilities of Rs.57.000 millions and sanction of ADHOC PCL cum FDBN/B/D of Rs.10.000 millions.

Fixed Assets:

· Free hold Land

· Lease Hold Buildings

· Plant and Machinery

· Computers

· Electrical Installations

· Furniture and Fixtures

· Office Equipment

· Loose Tools

· 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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.

MIRA INFORM REPORT

75.664

70.003

14.479

14.634

2.608

1.334

0.000

0.000

21.223

25.204

113.974

111.175

35.890

36.534

9.840

10.047

0.076

0.077

45.806

46.658

68.168

64.517

(11.56)

(17.53)

5.20

4.10

2.49

2.38

Unit