MIRA INFORM REPORT

Report Date :

28.09.2011

IDENTIFICATION DETAILS

Name :	PARTAP INDUSTRIES LIMITED
Registered Office :	Village Beopror, G.T. Road, Tehsil Rajpura, District Patiala – 147 001, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.08.1988
Com. Reg. No.:	16-8614
Capital Investment / Paid-up Capital :	Rs.31.584 millions
CIN No.: [Company Identification No.]	U15142PB1988PLC008614
TAN No.: [Tax Deduction & Collection Account No.]	PTLP12221G
PAN No.: [Permanent Account No.]	AABCP0384Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn, Vegetable Fats and Oils and Denim Fabric.
No. of Employees :	About 300 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 710000
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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office/ Factory :	Village Beopror, G.T. Road, Tehsil Rajpura, District Patiala – 147 001, Punjab, India
Tel. No.:	91-1762-265256 / 265246 / 226544
Fax No.:	91-1762-285246 / 226544
E-Mail :	jpjnco@hotmail.com denim@partapgroup.com
Website :	www.partapindustries.com
Corporate Office 1 :	N.H. – 1, Rajpura Road, Shambhu, Punjab, India
E-Mail :	info@partapindustries.com
Corporate Office 2 :	Hissar Road, Amabala City, Haryana, India
Branch Office :	Located at: · Haryana · Punjab · Himachal Pradesh

DIRECTORS

As on 27.09.2010

Name :	Mr. Sudarshan Paul Bansal
Designation :	Chairman cum Managing Director
Address :	763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India
Date of Birth/Age :	21.06.1954
Date of Appointment :	16.08.1988
DIN No.:	00178378

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	U15143PB1982PTC004848	Ram Partap Oil Extractions Private Limited	Director	12-02-82	12-02-82	Active	NO
2	U15142HR1986PLC025676	Partap Extractions Limited	Managing director	01-04-09	06-10-86	Active	NO
3	U15142PB1988PLC008614	Partap Industries Limited	Managing director	01-04-10	16-08-88	Active	NO
4	U15142PB1994PTC014421	Bhagwati Proteins Private Limited	Managing director	21-06-96	21-06-96	Active	NO
5	U17290PN2009PTC134883	Sudarshan Jeans Private Limited	Director	27-10-09	27-10-09	Active	NO
6	U17299HR2009PTC039803	Sudarshan Denim Private Limited	Director	11-12-09	11-12-09	Active	NO

Name :	Ms. Sunita Bansal
Designation :	Whole Time Director
Address :	763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India
Date of Birth/Age :	12.03.1961
Date of Appointment :	01.04.2000
DIN No.:	00178380

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	U15142PB1988PLC008614	Partap Industries Limited	Whole-time director	01-04-10	01-04-00	Active	NO

Name :	Mr. Sidhharth Bansal
Designation :	Director
Address :	763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India
Date of Birth/Age :	17.03.1986
Date of Appointment :	07.05.2004
DIN No.:	00178382

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	U15142PB1988PLC008614	Partap Industries Limited	Whole-time director	01-04-10	07-05-04	Active	NO
2	U17290PN2009PTC134883	Sudarshan Jeans Private Limited	Director	27-10-09	27-10-09	Active	NO

Name :	Mr. Gautam Bansal
Designation :	Director
Address :	763, Village Nasirpur, Hisar Road, Amabala City, District Ambala – 134 003, Haryana, India
Date of Birth/Age :	11.12.1989
Date of Appointment :	27.09.2010
DIN No.:	02275574

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	U15142HR1986PLC025676	Partap Extractions Limited	Director	22-09-08	08-08-08	Active	NO
2	U17290PN2009PTC134883	Sudarshan Jeans Private Limited	Director	30-09-10	01-12-09	Active	NO
3	U17299HR2009PTC039803	Sudarshan Denim Private Limited	Director	11-12-09	11-12-09	Active	NO
4	U15142PB1988PLC008614	Partap Industries Limited	Director	27-09-10	08-03-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Ram Pratap (HUF)	29600
Ram Pratap Bansal	45500
Sudarshan Paul (HUF)	28800
Sudarshan Paul	93500
Surinder Paul	88600
Satish Kumar Bansal	122000
Kalawanti	93280
Sunita Bansal	65000
Sangeeta Bansal	32400
Savtri Devi	18000
Satpaul Bansal	32500
Ramesh Kumar	17000
Vijay Kaushal	17240
Ashok Kumar	16280
Balraj Sharma	11000
Sanjay Modi	16300
Sushil Kumar	13500
Rakesh Kumar	18100

As on 27.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.50
Bodies corporate	15.00
Directors or relatives of directors	17.00
Other top fifty shareholders	12.00
Others	55.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn, Vegetable Fats and Oils and Denim Fabric.

Products :

Product Description	ITC Code
Cotton Yarn	2351
Denim Fabric	2353

PRODUCTION STATUS (As on 31.03.2010)

LICENCED / INSTALLED CAPACITY

Spinning Unit : 5955 M. Tons Production of Cotton Spinning

Denim Unit : 200 Lacs Meters Production of Denim Fabrics

PRODUCTION OF FINISHED GOODS

Particulars	Quantity (M.T.)
Cotton Yarn (Spinning Unit)	4350.036
Cotton Waste (Spinning Unit)	368.880
Denim Fabric (In Mtrs.)	14740768.00
Denim Hard Waste	359.168

GENERAL INFORMATION

Suppliers :

· Ams International, Panchkula

· Anurag Electricals, Delhi

· B K Sales Corporation, Samana

· Dilip Kumar Sharma and Associates

· Ganpati Art Press

· J K Supplies and Solutions

· Plaza Industries, Ahmedabad

· Shri Balaji Roadways Private Limited

Customers :

· Ankit Services Private Limited, Baddi

· D H Textiles, Ludhiana

· S R Enterprises, Delhi

· Sadana Feed, Samana

· Tarlochan Singh and Company, Ludhiana

No. of Employees :

About 300 Approximately

Bankers :

· Bank of Baroda

Kacheri Road, Ambala City – 134 003, Haryana, India

· Punjab National Bank

o Nicholson Road, Ambala Cantt – 133 001, Haryana, India

o Sadar Bazar, Ambala Cantt, Punjab, India

· ICICI Bank

· HDFC Bank Limited

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Bank of Baroda (MTL – 1 A/c No.177)	4.066	12.666
Bank of Baroda (MTL – 2 A/c No.339)	0.000	1.664
Bank of Baroda (MTL – 3 A/c No.366)	60.706	91.307
Bank of Baroda (MTL – 4 A/c No.446)	94.699	115.899
Bank of Baroda (MTL – 5 A/c No.1437)	129.139	68.974
Bank of Baroda (MTL – Baddi A/c No.343)	0.000	3.021
Bank of Baroda (Cash Credit Account No.54)	17.665	36.510
Bank of Baroda (Cash Credit Baddi Account No.134)	0.000	0.683
ICICI Bank (TATA 207)	0.037	0.145
HDFC Bank (Car Loan)	1.113	1.383
Interest Accrued and Due (BOB TLs)	0.000	2.958
Total	307.425	335.210

Note

· Working Capital Loan from Bank of Baroda is secured by Hypothecation of Inventories, debtors and on the personal guarantee of directors, First Charge on the factory land, building and machinery.

· Term Loan from Bank of Baroda is secured by Hypothecation of Plant and Machinery. First charge on factory land, building, plant and machinery and personal guarantee of the directors.

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Directors and Shareholders	21.522	17.448
Total	21.522	17.448

Banking Relations :	--
Auditors :
Name :	Kant Goyal and Associates Chartered Accountants
Address :	Opposite Peer (Sector-7), Bal Bhawan Road, Ambala City – 134 003, Haryana, India

CAPITAL STRUCTURE

As on 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
5507800	Equity Shares	Rs.10/- each	Rs.55.078 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
2134900	Equity Shares (Fully Paid-up)	Rs.10/- each	Rs.21.349 millions
3372900	Equity Shares (Partly Paid-up)	Rs.2.5/- each	Rs.8.432 millions
	Total		Rs.29.781 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
5507000	Equity Shares	Rs.10/- each	Rs.55.070 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
2134800	Equity Shares	Rs.10/- each	Rs.21.348 millions
3372900	Equity Shares	Rs.2.50/- each	Rs.8.432 millions
	Calls in Advance		Rs.1.804 millions
	Total		Rs.31.584 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		31.584	31.584	31.584
2] Share Application Money		11.060	21.060	17.560
3] Reserves & Surplus		135.929	103.108	71.443
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		178.573	155.752	120.587
LOAN FUNDS
1] Secured Loans		307.425	335.210	339.627
2] Unsecured Loans		21.522	17.448	12.925
TOTAL BORROWING		328.947	352.658	352.552
DEFERRED TAX LIABILITIES		16.793	10.766	9.974
TOTAL		524.313	519.176	483.113
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		465.415	454.150	396.129
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		20.190	0.000	6.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.242	24.154	57.797
	Sundry Debtors	16.667	16.954	17.709
	Cash & Bank Balances	2.623	2.099	2.444
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.320	56.920	44.469
Total Current Assets		125.852	100.127	122.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	54.435	25.095	32.467
	Other Current Liabilities	11.895	6.473	8.044
	Provisions	21.054	3.904	1.564
Total Current Liabilities		87.384	35.472	42.075
Net Current Assets		38.468	64.655	80.344
MISCELLANEOUS EXPENSES		0.240	0.371	0.140
TOTAL		524.313	519.176	483.113

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales (Net of Returns)	1090.903	771.503	655.999
		Miscellaneous Income	0.218	1.612	0.141
		Closing Stock (Finished Goods and WIP)	34.898	8.425	27.887
		TOTAL	1126.019	781.540	684.027
Less	EXPENSES
		Opening Stock (Finished Goods and WIP)	8.425	27.887	45.211
		Raw Material Consumption	736.585	500.339	427.369
		Manufacturing Expenses	186.939	116.311	108.904
		Personnel Expenses	15.745	11.111	10.076
		Administrative Expenses	13.545	5.285	4.586
		Selling and Distribution Expenses	4.047	3.659	6.280
		TOTAL	965.286	664.592	602.426
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		160.733	116.948	81.601
Less	FINANCIAL EXPENSES		27.146	27.491	32.835
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		133.587	89.457	48.766
Less/ Add	DEPRECIATION/ AMORTISATION		70.084	51.831	38.340
Less	PRIOR PERIOD EXPENDITURE		0.571	0.882	0.972
	PROFIT BEFORE TAX		62.932	36.744	9.454
Less	TAX		20.000	4.100	1.000
	PROFIT AFTER TAX		42.932	32.644	8.454
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		73.386	41.725	34.326
Add	MAT CREDIT ENTITLEMENT		0.000	0.000	0.970
Less	APPROPRIATIONS
		Provision for DEF Tax Liab	6.027	0.792	1.822
		Prior Period Tax Adjustment	2.583	0.191	0.203
	BALANCE CARRIED TO THE B/S		107.708	73.386	41.725
	EARNINGS IN FOREIGN CURRENCY
		Direct Export	1.046	0.000	0.000
		Deemed Export	0.000	13.359	12.206
	TOTAL EARNINGS		1.046	13.359	12.206
	IMPORTS
		Raw Materials	15.949	13.449	39.347
		Components & Spares Parts	3.797	0.000	2.090
		Plant and Machinery	62.967	13.552	0.000
	TOTAL IMPORTS		82.713	27.001	41.437
	Earnings Per Share (Rs.)		7.80	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.81	4.18	1.24
Net Profit Margin (PBT/Sales)	(%)	5.77	4.76	1.44
Return on Total Assets (PBT/Total Assets}	(%)	10.64	6.63	1.82
Return on Investment (ROI) (PBT/Networth)		0.35	0.24	0.08
Debt Equity Ratio (Total Liability/Networth)		2.33	2.49	3.27
Current Ratio (Current Asset/Current Liability)		1.44	2.82	2.91

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND OUT LOOK FOR THE CURRENT YEAR

There is a remarkable growth in sales and profits of the Company, which will continue. The Management is hopeful that the current year the Company is likely to achieve more targets as set by it. Even though ups and downs in the textile industry, the Company will continue to maintain its progress.

SUBSIDIARY COMPANY

Sudershan Jeans Private Limited, a Company under the same Management became subsidiary on 03- 02-2010 upon investment in equity shares. Sudarshan Jeans Private Limited is no more subsidiary of subject with effect from 08-06-2010.

FORM 8

Corporate identity number of the company	U15142PB1988PLC008614
Name of the company	PARTAP INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Beopror, G.T. Road, Tehsil Rajpura, District Patiala – 147 001, Punjab, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10202833
Type of charge	Others · Corporate Guarantee
Particular of charge holder	Punjab National Bank Nicholson Road, Ambala Cantt – 133 001, Haryana, India
Nature of description of the instrument creating or modifying the charge	Agreement of Guarantee. Rs.310.000 millions
Date of instrument Creating the charge	07.04.2011
Amount secured by the charge	Rs.310.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest As per Bank's prevailing rates Terms of repayment Repayment on non-payment of principal plus interest by Sudarshan Jeans Private Limited Margin N.A. Extent and operation of the charge 100% Others Guarantee by the Company to secure due repayment of credit facilities granted to Sudarshan Jeans Private Limited by Punjab National Bank, Nicholson Road, Ambala Cantt.
Short particulars of the property charged	Corporate Guarantee by the Company to Bank for due repayment of Credit Facilities enjoyed by Sudarshan Jeans Private Limited aggregating to Rs.310.000 millions.
Particulars of the present modification	Company stood Guarantee for due repayment of Credit Facilities enjoyed by Sudarshan Jeans Private Limited aggregating to Rs.310.000 millions Corporate Guarantee enhanced from Rs.170.000 millions to Rs.310.000 millions [Comprising - Enhanced CC Limit Rs.22.500 millions plus Existing Term Loan Rs.160.000 millions plus Fresh Term Loan Rs.127.500 millions]. Other Terms and conditions remain same.

CONTINGENT LIABILITIES (As on 31.03.2010)

· Claim against the company not acknowledged as debts Rs -Nil (Previous Year - Nil)

· Estimated amount of contracts remaining to be executed on capital accounts - Nil (Previous Year - Nil)

· Other money for which the company is contingent liable - Nil (Previous Year Nil).

· Indemnity Bond given to Commissioner of Customs, Ludhiana for import of Capital Goods valuing Rs.152.000 millions

· Guarantee given to bank for loan taken by M/s Sudarshan Jeans (Private) Limited of Rs.170.000 millions. (Previous Year Nil).

1. Indemnity Bond given to Commissioner of Customs, Ludhiana for import of Capital Goods valuing Rs.152.000 millions.
2. Counter Indemnity Bond given to Bank of Baroda, Ambala City for Rs.12.425 millions in lieu of bank guarantee issued for import of capital goods under the EPCG Scheme.

FIXED ASSETS

· Spinning Unit – I

· Spinning Unit – II

· Denim Unit – I

· Denim Unit – II

· Baddi Plant

WEB DETAILS

Profile

Partap Group was established in 1970’s as a manufacturer of solvent extracted oil in the state of Punjab and Haryana under the inspiring vision and leadership of Late Sh. Ram Partap Bansal. The group experienced steady and significant growth in the field of Oil industry. With an objective to serve today’s diverse and innovative market needs, the group broadened its operations in the field of Textile. The management seeks leadership through investment and innovation in the most contemporary business activities. Leveraging on the state of the art technologies, the group opted for the latest techniques in the textile domain, with no time the vision personified into reality with the continually evolving product line comprising of Garmenting, Denim Fabric, Knitted Fabric, various Yarns, and many more.....

Very soon, the group matched the market needs and commenced its journey to be recognized as a leader amongst leaders. Partap Group’s growth has been founded on a consistent philosophy that to be able to deliver the range and quality of product that the customers demand and the scale and nationwide presence to do so competitively.

Sharing knowledge has been at the heart of Partap Group’s management approach. The knowledge sharing initiative is designed to speed up the flow of best practices and techniques around the world.
Partap Group is contributing to shape the future of textile. The goal is to be more than just successful. It is to be admired for their culture and quality, service and management standards that it implies. Nothing less will do.

Why Partap Group?

· Only manufacturer to have complete in-house product chain from Raw Cotton Ginning to final Garmenting

· Backed by highly experienced promoters with about 40 years experience.

· Impeccable financial track record.

· End to End solution provider that cuts down the manufacturing time and cost.

· State of the Art machinery incorporates the latest textile technology.

· Products stand out from the rest in terms of quality, color options and finishing

· Experience in making designs and fabrics exactly according to the client’s specifications

· Production, quality and packaging procedures are at par with the international standards

· Well received products in retails and bulk market in India and Overseas.

Environmental Policies

Partap Group commits itself to continually improve their environmental managements, it strives to go beyond the requirements of the applicable environmental laws and regulations through:

· Optimizing usage of cotton, energy, chemicals and water

· Adopting preventive strategies to reduce the generation of effluents, waste and air emission

· Maximizing the recycling of inevitable wastes

· Encouraging suppliers and buyers to become environmentally responsible.

· Maintaining a safe working environment

· Increasing the green cover

· Training employees on environmental issues

Quality Control

The Q.C. divisions in all their units are equipped with the latest equipments and techniques of testing all the material from the raw cotton stage to the finished Garmenting. The facilities are the best in the Industry.
Strict quality control is maintained at all levels and the personal are well qualified and trained in their jobs. All staff is required to follow strict quality control measures to bring out the optimum level of performance.

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.49.18
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--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	-

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.