MIRA INFORM REPORT

Report Date :

04.08.2011

IDENTIFICATION DETAILS

Name :	NASHIK VINTNERS PRIVATE LIMITED
Registered Office :	3^rd Floor, A Wing, Todi Estate, Sun Mill Compound, Lower Parel (West), Mumbai 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.02.2003
Com. Reg. No.:	11-139352
Paid-Up Capital :	Rs.113.104 Millions
CIN No.: [Company Identification No.]	U15549MH2003PTC139352
TAN No.: [Tax Deduction & Collection Account No.]	MUMN11125C
PAN No.: [Permanent Account No.]	AABCN7126Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Distributor, Importer and Exporter of all types of Wines.
No. of Employees :	350 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2820000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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.

INFORMATION PARTED BY

Name :	Mr. Ram Chandra
Designation :	Manager in Finance and Accounts
Contact No.:	91-9819752319
Date :	03.08.2011

LOCATIONS

Registered Office/Factory :	3^rd Floor, A Wing, Todi Estate, Sun Mill Compound, Lower Parel (West), Mumbai 400013, Maharashtra
Tel. No.:	91-22-61280606
Fax No.:	91-22-24926064
E-Mail :	shivanic@sulawines.com info@sulawines.com cs@sulawines.com
Website :	www.sulawines.com
Testing Room :	Survey 36/2, Govardhan Village, Off. Gangapur Savargaon Road, Nashik – 422222, Maharashtra, India
Tel. No.:	91-253-2231663/2231720
Fax No.:	91-253-2230151
Area :	100000 Sq. Fts
Location :	Owned

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Suresh A. Samant
Designation :	Chairman
Address :	Carmichael House, Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	24.10.1933
Date of Appointment :	06.03.2003
Name :	Mr. Rajeev S Samant
Designation :	Chief Executive Officer and Managing Director
Address :	Carmichael House, Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	21.01.1967
Qualification :	M.S Industrial Engineering (Stanford University, USA)
Experience :	17 Years
Date of Appointment :	26.02.2003
Name :	Mrs. Sulabha S Samant
Designation :	Director
Address :	Carmichael House, Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	12.08.1938
Date of Appointment :	26.02.2003
Name :	Mr. Dinesh G Vazirani
Designation :	Director
Address :	2^nd Floor, Rusi House, Darabsha Lane, Off Nepean Sea Road, Mumbai-400036, Maharashtra, India
Date of Birth/Age :	13.02.1967
Date of Appointment :	26.02.2003
Name :	Mr. Jaywantsinh M Chudasama
Designation :	Director
Address :	Carmichael House, Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	14.01.1930
Date of Appointment :	03.11.2003
Name :	Mr. Jehangir Adi Moos
Designation :	Director
Address :	Karai Estate, 4^th Floor, A Block, Tardeo Road, Mumbai-400007, Maharashtra
Date of Birth/Age :	21.05.1944
Date of Appointment :	28.09.2005
Name :	Mr. Mohan B Samant
Designation :	Director
Address :	Pratiksha, 7A, Worli Sea Face, Mumbai-400025, Maharashtra
Date of Birth/Age :	15.10.1941
Date of Appointment :	28.09.2005
Name :	Mr. Deepak I Shahdapuri
Designation :	Director
Address :	E – 32, 4^th Floor, Dhanraj Mahal, Spollo Bunder, Near Tajmahal Hotel, Colaba, Mumbai – 400039, Maharashtra, India
Date of Birth/Age :	05.07.1969
Date of Appointment :	05.10.2005
Name :	Mr. Manish Patel
Designation :	Director
Address :	201/A, Shalimar Apt, Kemps Corner, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	21.07.1966
Date of Appointment :	19.07.2007
Name :	Mr. Hank Oberoi
Designation :	Director
Address :	321, Upper Mountain Avenue, Montclair, N.J. – 07043, USA
Date of Birth/Age :	10.02.1961
Date of Appointment :	24.08.2007
Name :	Mr. Sameer Sain
Designation :	Director
Address :	1302, Narrian Terraces, Union Park Road, Bandra (W), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	05.11.1970
Date of Appointment :	24.08.2007
Name :	Mr. Frederic Charles Josse Mutien Ghislain de Mevius Baron
Designation :	Director
Date of Birth/Age :	26.11.1958
Date of Appointment :	24.11.2010

KEY EXECUTIVES

Name :	Mr. T. S. Sivaprasad
Designation :	Company Secretary
Address :	4A/53, Kalpataru Estate, Jogeswari – Vikhroli Link Road, Andheri (E), Mumbai – 400093, Maharashtra, India
Date of Birth/Age :	08.10.1962
Date of Appointment :	01.03.2007
Name :	Mr. Deepak Bhatnagar
Designation :	Senior Vice President – Sales
Date of Birth/Age :	49 Years
Qualification :	B.Sc and Diploma in Hotel Management
Experience :	27 Years
Name :	Mr. Ram Chandra
Designation :	Manager in Finance and Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Mr. Rajeev Samant	2283617
Mrs. Sulabha S Samant	122957
Mr. Dinesh G Vazirani	61417
Mr. Suresh A Samant	1510160
Mr. Jehangir A Moos	24566
Mr. Arun V Pathak	24566
Mr. Bharat S Samant	15600
Daisy Damskey	144495
GIA (Sula) Holdings Limited, Mauritius	1818404
Mr. Manish Patel	40201
Mr. Sumeet Gupta	60301
Indivision Ventures I	2368884
Haystack Investments Limited, Mauritius	376305
Anuradha J Chudasama	325833
Ursula G Sumal	425834
ICP Holdings I, , Mauritius	734161
Mohan B Samant and Ashin M Samant	486547
Mohan B Samant and Ruta M Samant	486547
Total	11310395

Equity Share Break-up AS ON 27.09.2010

Category	Percentage of Holding
Foreign Holding	48.12
Directors or Relatives Of Directors	43.95
Others Top 50 Shareholders	7.93
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Distributor, Importer and Exporter of all types of Wines.

Products :

Product Description	ITC Code
Sparkling (Champagne Type) Wine	220410.00
Still Wine	220421.00

Exports :

Products :

• All types of Wines

Countries :

• USA
• Germany
• Dubai
• United Kingdom

Imports :

Products :

• Wines

Countries :

• France
• Italy

PRODUCTION STATUS (As ON 31.03.2010)

Installed Capacity**: 5850000

Actual Production: 2686274

* No industrial license is required

*'*As assessed by the Management being a technical matter.

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• Distributors

No. of Employees :

350 (approximately)

Bankers :

• The Saraswat Co-operative Bank Limited, Gigaum Branch, Girgaum, Mumbai-400004, Maharashtra, India
• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India

Facilities :

SECURED LOANS :	31.03.2010 (Rs. In millions)	31.03.2009 (Rs. In millions)
Cash Credit (secured against hypothecation of the company’s book debts and inventories)	277.478	242.172
Term Loans (secured against hypothecation of plant and machinery and tangible movable property lying at winery, Nashik)	106.974	97.289
Interest accrued and due	0.999	0.706
Vehicle Loans (secured against hypothecation of company’s vehicles)	0.459	0.000
Total	385.910	340.167

UNSECURED LOANS :	31.03.2010 (Rs. In millions)	31.03.2009 (Rs. In millions)
From Directors (Interest Bearing)	15.000	5.000
Others
Sales Tax Deferment A/c under PSI 1993 (Due within one year – Nil (Previous year – Nil)	34.459	34.459
Total	49.459	39.459

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	42, Free Press House, 4^th floor, 215, Nariman Point, Mumbai-400021, Maharashtra, India
Associates / Subsidiaries :	Vitis Hospitality (P) Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20206000	Equity Shares	Rs.10/- each	Rs.202.060 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11310395	Equity Shares	Rs.10/- each	Rs.113.104 Millions

After 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20206000	Equity Shares	Rs.10/- each	Rs.202.060 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13458779	Equity Shares	Rs.10/- each	Rs.134.588 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		113.104	113.104	112.904
2] Warrant Subscription		1.280	0.660	0.660
3] Reserves & Surplus		591.449	563.962	555.063
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		705.833	677.726	668.627
LOAN FUNDS
1] Secured Loans		385.910	340.166	179.950
2] Unsecured Loans		49.459	39.459	34.459
TOTAL BORROWING		435.369	379.625	214.409
DEFERRED TAX LIABILITIES		36.956	27.204	20.864
TOTAL		1178.158	1084.555	903.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		591.994	564.228	385.073
Capital work-in-progress		4.867	6.599	82.089
INVESTMENT		0.080	0.090	0.085
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	486.080	453.447	322.513
	Sundry Debtors	232.285	221.235	203.838
	Cash & Bank Balances	12.574	17.203	18.796
	Other Current Assets	0.930	0.747	0.427
	Loans & Advances	101.850	87.182	95.150
Total Current Assets		833.719	779.814	640.724
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	172.763	165.632	105.329
	Current Liabilities	37.804	54.438	54.145
	Provisions	41.935	46.106	44.597
Total Current Liabilities		252.502	266.176	204.071
Net Current Assets		581.217	513.638	436.653
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1178.158	1084.555	903.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Net Sales / Income from Operations	680.470	533.569	502.720
		Other Income	23.932	5.627	4.341
		TOTAL (A)	704.402	539.196	507.061
Less	EXPENSES
		Raw Materials	158.463	219.608	172.021
		Cost of Traded Goods	37.850	42.065	35.957
		Packing Materials	80.034	60.795	69.690
		Manufacturing Expenses	44.870	32.601	31.848
		Administrative Expenses	30.233	31.335	27.286
		Selling and Distribution Expenses	185.479	125.750	89.341
		Increase/(Decrease) in Stock	(46.331)	(136.415)	(100.729)
		Staff Costs	90.083	86.963	62.666
		TOTAL (B)	580.681	462.702	388.080
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		123.721	76.494	118.981
Less	FINANCIAL EXPENSES (D)		46.926	33.769	15.227
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.795	42.725	103.754
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.617	24.224	13.592
	PROFIT BEFORE TAX (E-F) (G)		45.178	18.500	90.162
Less	TAX (H)		17.690	11.100	31.236
	PROFIT AFTER TAX (G-H) (I)		27.488	7.400	58.926
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		122.471	115.073	NA
	BALANCE CARRIED TO THE B/S		149.959	122.471	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	16.333	21.774	16.735
	IMPORTS
		Raw Materials	21.522	33.616	48.773
		Capital Goods	0.925	9.268	8.418
	TOTAL IMPORTS		22.447	42.884	57.191
	Earnings Per Share (Rs.)
	- Basic		2.43	0.66	6.39
	- Diluted		2.42	0.65	6.38

Particulars	31.03.2011
Sales Turnover (approximately)	800.000

The above information has been parted by Mr. Ramchandra

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.90	1.37	11.62
Net Profit Margin (PBT/Sales)	(%)	6.63	3.46	17.93
Return on Total Assets (PBT/Total Assets}	(%)	3.16	1.37	8.79
Return on Investment (ROI) (PBT/Networth)		0.06	0.03	0.13
Debt Equity Ratio (Total Liability/Networth)		1.02	0.99	0.63
Current Ratio (Current Asset/Current Liability)		3.30	2.92	3.14

LOCAL AGENCY FURTHER INFORMATION

The Details of sundry creditors:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Due to SME’s	--	--	--
Others	172.763	165.632	105.329
Total	172.763	165.632	105.329

BUSINESS PERFORMANCE:

During the year, Sales were Rs. 704.400 millions and profit after tax Rs. 27.500 millions. Sales grew 31% over the previous year, PBIDT by 62%, while PAT grew 272%.

The year began with difficult trading conditions carried over from the previous year, Sales during the first six months were therefore flat, but the second half saw a strong bounce back which allowed us to grow just over 31% over the previous year. This was very creditable considering the overall Indian wine market saw no growth during the financial year

The very difficult twelve months resulted in a number of other Indian wine companies facing severe financial difficulties The Company emerged as India's largest wine producer in the second half of the FY with a market share close to 50% of entire Indian wine sales.

The Company's Domaine Dindori (DD) 100% Export Oriented Unit commenced exports, marking the successful completion of the acquisition process. The Company opened a new Indian restaurant next to there little Italy restaurant in the vineyards Hospitality revenues continued to show strong growth with visitor numbers to the winery crossing 40,000 during the year.

The grape growing season saw tough climatic conditions, with a 50% deficit in monsoon rains. followed by un seasonal November rains during bloom that severely impacted the crop The Company had enough inventory to weather the conditions, but is investing substantially in rainwater harvesting and other water management to minimize impact of erratic monsoons The Company launched its super-premium Rasa Shiraz 2007 during the year, its most expensive limited-edition product, which has been very well received The new Sula Mosaic series of affordable varietal blends was also launched at price paints between Sula a Vineyards and Madera

The Company also launched African Horizon wines from South Africa with brand ownership in India. The Company Commenced production in Karnataka at partner Elite Winery, producing the value range to begin with.

During the year they began exports to three new markets Switzerland, Belgium and Bhutan. The Company also expanded operations to new Domestic markets the Andamans, Uttarkhand and Mahe UT. The Company has been appointed the exclusive Indian importer of Remy Cointreau, one of the world's leading premium spirit and wine producers.

During the year, the Company continued its drive to air-condition all major distributors' warehouses to improve the cold chain, storage conditions and ultimately product quality in the end-consumers' hands.

At year-end they are proud to announce that the Company is now India's largest wine producer and continuing to capture market share, The Management wishes to place on record its heartfelt thanks to all the employees of the Sula family for helping to make this possible Notably, the employees showed great loyalty by adopting a freeze on salaries during the year to help the Company tide over its most difficult period since the commencement of business

COMPANY OVERVIEW

Subject is India’s Largest and No. 1 wine manufacturing company. The company sells its own wines under the premium and economy segments. It is also imports bottled wines and other well known alcoholic beverages.

CONTINGENT LIABILITIES

i) Bank guarantees issued by banks to excise authorities is Rs.2.202 millions (previous year Rs.2.202 millions)

ii) Outstanding export obligation under EPCG scheme is Rs. 31.285 millions (previous year Rs.31.285 millions) and on account of acquisition of 100% EOU unit is Rs. 24.965 millions (previous year Rs. 27.464 millions).

iii) Corporate guarantee provided to bank for contractual obligation of grape farmers amounting to Rs. 27.500 millions (previous year Rs. 23.100 millions).

iv) There is a disputed liability of Rs. 199.961 millions demanded by the Maharashtra State Excise Department for the excise duty allegedly collected by the Company from its customers hut not remitted to the Government after the remissjon of excise duty by the State Government. In reply to the demand notice. The Company has filed an appeal with the State Excise Department. The Company does not expect any liability on this account.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10008532
Corporate identity number of the company	U15549MH2003PTC139352
Name of the company	NASHIK VINTERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1 and 2, Matulya Centre, C Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental letter of hypothecation of stocks, book debts and machinery
Date of instrument Creating the charge	29.05.2009
Amount secured by the charge	Rs. 150.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the bank from time to time. Terms of Repayment CC – on demand Margin As may be stipulated by the bank from time to time. Extent and Operation of the charge Charge on Stock, book debts & machinery - both present & future as mentioned in supplemental hypothecation agreement Others
Short particulars of the property charged	Charge on Stock, book debts & machinery - both present & future as mentioned in supplemental hypothecation agreement
Date of latest modification prior to the present modification	09.04.2008
Particulars of the present modification	Present charge by way of Hypothecation Charge on stocks, book debts and movable plant and machinery has been extended for enhanced limits of the company from Rs. 120.000 Millions to Rs. 150.000 Millions

FORM 8

Corporate identity number of the company	U15549MH2003PTC139352
Name of the company	NASHIK VINTERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	3^rd Floor, A Wing, Todi Estate, Sun Mill Compound, Lower Parel (West), Mumbai 400013, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	The Saraswat Co-operative Bank Limited, Gigaum Branch, Girgaum, Mumbai-400004, Maharashtra, India Email: njbhatia@rediffmail.com
Nature of instrument creating charge	Supplemental Recording Letter Evidencing Deposit of Title Deeds
Date of instrument Creating the charge	28.10.2010
Amount secured by the charge	Rs. 200.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As determined by the bank from time to time Terms of repayment On demand Margin As determined by the bank from time to time Extent and operation of the charge Second Pari passu charge on immovable property for Non Fund base :Cash Credit: Rs 200.000 millions Other The Saraswat Co-op Bank Limited has first exclusive charge basis for the term loan upto Rs 113.431 millions and on second pari passu charge basis for the cash credit limit, bank guarantee limit and letter of credit limit upto Rs 217.000 millions and HDFC bank has on second pari passu charge basis of the credit facilities upto Rs 180.000 millions
Short particulars of the property charged (Including location of the property)	Mortgage of all the piece and parcel of the land bearing NA Gat no 35/2 alongwith the construction made thereon of village Govardhane Tal and Dist Nashik Mortgage of all the piece and parcel of the land bearing NA gat no 36/2 alongwith the construction made thereon of village Govardhane, Tal and District Nashik Mortgage of all the piece and parcel of the NA property bearing Gat no 90 along with the construction made thereon of factory building , cold storage godown, office building and security office residential quarters and other structures standing thereto of village Jaulke Wani Tal Dindori and Dist Nahsik Together with all the buildings and structures thereon ,fixtures, fittings, and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future.
Date of instrument modifying the charge	29.06.2010
Particulars of the present modification	Joint mortgage by deposit of title deeds of immovable properties belonging to the borrower and lying and being at the Borrowers place of business at Gat no 35/2 and Gat no 36/2, Govardhan Nashik and Gat No 90 at Village Jaulke Wani, Tal Dindori, Nashik for Cash Credit: Rs 200.000 millions

FIXED ASSETS:

• Land – Freehold
• Building
• Plant and Machinery
• Electric Fittings
• Refrigerator
• S. S. Tanks
• Generator Set
• Laboratory Equipment
• Furniture and Fixture
• Vehicles
• Office Equipment
• Computer
• Oak Barrels

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.44.38
UK Pound	1	Rs.72.21
Euro	1	Rs.62.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.