MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	SMIT TEXTILE S.P.A.
Registered Office :	Viale Dell' Industria, 135 36015 – Schio (Vi) -It-
Country :	Italy
Financials (as on) :	31.12.2011
Date of Incorporation :	01.04.2010
Legal Form :	Joint stock company
Line of Business :	Manufacture of textile machinery, machinery and systems for auxiliary treatment of textiles, sewing and weaving machines (including spare parts and accessories)
No. of Employees :	from 150 to 175

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Italy	A2	A2

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

ITALY - ECONOMIC OVERVIEW

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but exceptionally high public debt burdens and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 120% of GDP in 2011, and borrowing costs on sovereign government debt have risen to record levels. During the second half of 2011 the government passed a series of three austerity packages to balance its budget by 2013 and decrease its public debt burden. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to address Italy's long-standing structural impediments to growth, such as an inflexible labor market and widespread tax evasion. The international financial crisis worsened conditions in Italy''s labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2011, but in the longer-term Italy''s low fertility rate and quota-driven immigration policies will increasingly strain its economy. The euro-zone crisis along with Italian austerity measures have reduced exports and domestic demand, slowing Italy''s recovery. Italy''s GDP is still 5% below its 2007 pre-crisis level.

Source : CIA

Company Name and address

SMIT TEXTILE S.P.A.

Viale Dell' Industria, 135

36015 - Schio (Vi) -It-

Summary

Fiscal Code	:	04273280281
Legal Form	:	Joint stock company
start of Activities	:	01/04/2010
Equity	:	Over 2.582.254
Turnover Range	:	25.000.000/35.000.000
Number of Employees	:	from 150 to 175

Highlights

For about 80 years the company has been a center for technological research

and a business and management training. Without considering the previous

decades, in 1999 and in 2004 SMIT received the international award for

innovation in mechanical and textile field and only in the last ten years

(from 2000 to 2010) has invested more than € 45,000,000 in technological

research.

In 2010 the corporation merged the businesses of:

SMIT SpA (Schio - Vicenza)

mechanical research and development

electronic research and development (hardware and software)

trial room

high mechanical precision manufacturing

assembly of technical and classic fabrics weaving machines

sale of industrial machinery

service and spare parts for industrial machinery

MICRO TECH srl (Agordo - Belluno)

production of accessories for industrial looms

production of precision mechanical parts

BSB Ltd (Schio - Vicenza)

Logistics

absorbing such marks, their commercial networks and technical know-how,

the equipment, machineries and tools, all employees and consultants, all

contracts in progress, suppliers and customers portfolio.

Its weaving machines are completely "made in Europe".

The company has recently opened a trading company in Shanghai (for looms

and spare parts sales, installation and commissioning of equipment and

technical assistance).

The group has already set up a trading company in India, Mumbai, to be

closer to the market to be able to grasp and better meet customers’ needs.

Performed for all types of applications, its weaving machines can weave

both classic yarns (such as wool, cotton, silk and synthetic fabrics) and

industrial fabrics such as filter and airbag fabrics, conveyor belts, fiber

glass, carbon and steel fibers.

Eighty years of manufacturing tradition at the highest level, know-how,

innovation and a new managerial team have made SMIT TEXTILE SPA a jewel

of the Italian industry and a worldwide leader brand in its field.

In a long-term market growth, this company is pursuing expansion through

synergistic diversification, using its know-how, its network of sales and

service and the capacity of its plants to produce value in adjacent fields.

Activity

Manufacture of textile machinery, machinery and systems for auxiliary treatment of textiles, sewing and weaving machines (including spare parts and accessories)

Legal Data

Legal Form : Joint stock company

Fiscal Code : 04273280281

Chamber of Commerce no. : 95251 of

Chamber of Commerce no. : 376725 of since 25/02/2008

Chamber of Commerce no. : 396340 of

Chamber of Commerce no. : 339258 of since 29/04/2010

V.A.T. Code : 04273280281

Establishment date	: 07/02/2008
Start of Activities	: 01/04/2010
Legal duration	: 31/12/2050
Nominal Capital	: 30.000.000
Subscribed Capital	: 30.000.000
Paid up Capital	: 30.000.000

Members

Gregoric

Luca

Born in Gorizia

(GO)

on 03/08/1967

- Fiscal Code : GRGLCU67M03E098H

Residence:

Scrovegni

, 29

- 35100

Padova

(PD)

- IT -

Position	Since	Shares Amount	% Ownership
Sole Director	03/12/2010

No Prejudicial events are reported

No Protests registered

Companies connected to members *

*checkings have been performed on a national scale.

In this module the companies in which members hold/held positions are listed.

The Members of the subject firm are not reported to be Members in other companies.

Capital Shareholders

Shareholders' list as at date of data collection:

Firm's Style / Name	Seat / Residence	Fiscal Code	Owned Shares	% Ownership
Glencove Corporation Xxxiv Consultadoria E Servicos Lda			12.000.000 .Eur	40,00
Pacific Western Limited			18.000.000 .Eur	60,00

Direct Participations

The Company under review has no participations in other Companies.

Firm's location and structure

In order to carry out its activities the firm uses the following locations:

-

Legal and operative seat

since 29/04/2010

Dell' Industria

, 135

- 36015

- Schio

(VI)

- IT -

PHONE

: 0445699111

FAX	: 0445699358

-

Branch

since 01/04/2010

Valcozzena

, 44

- 32021

- Agordo

(BL)

- IT -

-

Branch

(office)

since 02/11/2010

Degli Scrovegni Enrico

, 29

- 35100

- Padova

(PD)

- IT -

Employees

: 171

Fittings and Equipment for a value of 11.040.000

Eur

Stocks for a value of 9.960.000

Eur

Work in progress for a value of 1.550.000

Eur

Historical Information and/or Firm's Status

COMPANY STYLE MODIFICATIONS:

Former Style	New Style	Changement Date
Gemini Srl	Smit Textile Srl	29/04/2010

EX-MEMBERS / EX-POSITIONS:

Corsi

Giovanni

Born in Padova

(PD)

on 23/03/1971

- Fiscal Code : CRSGNN71C23G224X

Residence:

Dei Borromeo

, 3

- 35137

Padova

(PD)

- IT -

Ex-Postions

Sole Director

CEASINGS/INCORPORATIONS/MERGES:

The firm took over the activity of

Fintex S.r.l. In Liquidazione

Enrico Degli Scrovegni

, 29

, 35131

, Padova

(PD)

- IT -

Fiscal Code: 08523070152

Date

:

26/03/2010

The firm took over the activity of

Glencove Srl

Adelaide Lonigo

, 8/C

, 35030

, Rubano

(PD)

- IT -

Fiscal Code: 03166070247

Date

:

01/04/2010

The firm took over the activity of

Building Services Brianza s.r.l.

Fratelli Ruffini

, 10

, 20100

, Milano

(MI)

- IT -

Fiscal Code: 11365890158

Date

:

24/05/2010

Protests

Protests checking on the subject firm has given a negative result.

Data Base Prejudicial Events Search

Search performed on a National Scale

Prejudicial Events Search Result: NEGATIVE

Search performed on a specialized data base.

Legal Procedures

None reported, standing to the latest received edition of the Official Publications.

Bankers

The firm operates with:

Bank Name	Agency Name	Address	ZIP Code	City	ABI Code	CAB Code
BANCA POP. DI VERONA - BPV-SGSP SPA					5188	0
UNICREDIT BANCA SPA					2008	0

Financial and Economical Analysis

Company's starting of activities dates back to some years ago (2010).

The analysis is based on the latest 3 balance sheets.

Unstable economic results mark the company's financial state of affairs. with a loss in the last financial year. In the last financial year an increase in the turnover has been registered (+74,87%).

A loss is registered as to the operating result (-3,96%).

The operating result is negative (Eur. -2.130.774).

The gross operating margin of the latest financial year is of Eur. 1.317.723 stable if compared to the financial year 2010.

The company has an excellent net worth if compared to its debts, with a low indebtedness (0,53) lower than in 2010.

The management generated equity capital for an amount of Eur. 28.683.722 , with an upward trend.

Total indebtedness was equal to Eur. 22.263.477 (Eur. 6.945.626 was the value of m/l term debts) with no important change.

The company does not exceed in bank credits; payments average period is instead slightly high (104,23 gg.) however still within the sector's average.

Liquidity is good (1,11)

On average trade credits are collected in 56,27 days. , that compared to the sector's average is shorter.

The financial management generated a cash flow of Eur. 1.604.658.

In the last financial year labour cost was of Eur. 5.586.254, with a 14,7% incidence on total costs of production and a 16,42% incidence on sales volumes.

Financial charges have a limited incidence (-0,7%) on sales volume.

Financial Data

Complete balance-sheet for the year

31/12/2011

(in Eur

x 1)

Item Type	Value
Sales	34.029.349
Profit (Loss) for the period	-1.843.839

Complete balance-sheet for the year

31/12/2010

(in Eur

x 1)

Item Type	Value
Sales	19.458.755
Profit (Loss) for the period	91.413

Complete balance-sheet for the year

31/12/2009

(in Eur

x 1)

Item Type	Value
Sales	3.696
Profit (Loss) for the period	751

Complete balance-sheet for the year

31/12/2008

(in Eur

x 1)

Item Type	Value
Sales	36.667
Profit (Loss) for the period	6.037

Balance Sheets

From our constant monitoring of the relevant Public Administration offices, no more recent balance sheets result to have been filed.

- Balance Sheet as at 31/12/2011 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/12/2010 - 12 Mesi - Currency: - Amounts x 1

- Balance Sheet as at 31/12/2009 - 12 Mesi - Currency: - Amounts x 1

Years

2011

2010

2009

BALANCE SHEET ACCOUNTS

ASSETS
CREDITS VS PARTNERS
. Deposits not yet withdrawn
. Deposits already withdrawn
Total credits vs partners
FIXED ASSETS
. INTANGIBLE FIXED ASSETS
. . Start-up and expansion expenses
. . Research,develop. and advert.expens.	1.191.475	534.051
. . Industrial patent rights	20.056.585	4.735.461
. . Concessions,licenses,trademarks,etc.	1.940.918	1.958.777
. . Goodwill	1.658.288	274.102
. . Assets in formation and advance paymen.
. . Other intangible fixed assets
. Total Intangible Fixed Assets	24.847.266	7.502.391
. TANGIBLE FIXED ASSETS
. . Real estate	5.186	5.466
. . Plant and machinery	8.508.680	9.319.744
. . Industrial and commercial equipment	2.530.963	2.905.384
. . Other assets	788.789	832.444
. . Assets under construction and advances		21.143
. Total Tangible fixed assets	11.833.618	13.084.181	19.062
. FINANCIAL FIXED ASSETS
. . Equity investments	120.000
. . . Equity invest. in subsidiary companies	120.000
. . . Equity invest. in associated companies
. . . Equity invest. in holding companies
. . . Equity invest. in other companies
. . Financial receivables	699
. . . . Within 12 months	699
. . . . Beyond 12 months
. . . Receivab due from subsidiaries
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from assoc.comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . . Receivables due from third parties	699
. . . . Within 12 months	699
. . . . Beyond 12 months
. . Other securities
. . Own shares
. . . Total nominal value
. Total financial fixed assets	120.699
Total fixed assets	36.801.583	20.586.572	19.062
CURRENT ASSETS
. INVENTORIES
. . Raw materials and other consumables	1.141.213	967.659
. . Work in progress and semimanufactured	421.123	418.564
. . Work in progress on order	1.553.582	1.620.597
. . Finished goods	6.815.624	5.596.174
. . Advance payments	26.591	28.502
. Total Inventories	9.958.133	8.631.496
. CREDITS NOT HELD AS FIXED ASSETS
. . Within 12 months	7.014.236	4.223.449	370
. . Beyond 12 months		915.204
. . Trade receivables	5.318.660	2.320.798
. . . . Within 12 months	5.318.660	2.320.798
. . . . Beyond 12 months
. . Receivables due from subsid. comp.	92.257
. . . . Within 12 months	92.257
. . . . Beyond 12 months
. . Receivables due from assoc. comp.	2.000	615.204
. . . . Within 12 months	2.000
. . . . Beyond 12 months		615.204
. . Receivables due from holding comp.
. . . . Within 12 months
. . . . Beyond 12 months
. . Fiscal Receivables	493.071	960.421
. . . . Within 12 months	493.071	960.421
. . . . Beyond 12 months
. . Receivables for anticipated taxes	582.519	25.740
. . . . Within 12 months	582.519	25.740
. . . . Beyond 12 months
. . Receivables due from third parties	525.729	1.216.490
. . . . Within 12 months	525.729	916.490
. . . . Beyond 12 months		300.000
. Total Credits not held as fixed assets	7.014.236	5.138.653	370
. FINANCIAL ASSETS
. . Equity invest. in subsidiary comp.
. . Equity invest. in associated companies
. . Equity invest. in holding companies
. . Other equity investments
. . Own shares
. . . Total nominale value
. . Other securities
. Total Financial Assets
. LIQUID FUNDS
. . Bank and post office deposits	12.021	11.421
. . Checks
. . Banknotes and coins	2.002	8.610
. Total Liquid funds	14.023	20.031	99
Total current assets	16.986.392	13.790.180	469
ADJUSTMENT ACCOUNTS
. Discount on loans	17.866
. Other adjustment accounts		31.462
Total adjustments accounts	17.866	31.462
TOTAL ASSETS	53.805.841	34.408.214	19.531
LIABILITIES
STOCKHOLDERS' EQUITY
. Capital stock	30.000.000	12.000.000	10.000
. Additional paid-in capital
. Revaluation reserves
. Legal reserve	521.112	429.698	302
. Reserve for Own shares
. Statute reserves
. Other reserves		2	-1
. Accumulated Profits (Losses)	6.449	6.449	5.735
. Profit( loss) of the year	-1.843.839	91.413	751
. Advances on dividends
. Partial loss of the year Coverage
Total Stockholders'Equity	28.683.722	12.527.562	16.787
RESERVES FOR RISKS AND CHARGES
. . Reserve for employee termination indem.	1.512	1.270
. . Taxation fund, also differed
. . Other funds
Total Reserves for Risks and Charges	1.512	1.270
Employee termination indemnities	2.394.065	2.573.132
ACCOUNTS PAYABLE
. . . . Within 12 months	15.317.851	15.900.666	2.744
. . . . Beyond 12 months	6.945.626	2.666.267
. . Bonds
. . . . Within 12 months
. . . . Beyond 12 months
. . Convertible bonds repayable
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to shareholders for financing
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to banks	4.115.160	3.681.504
. . . . Within 12 months	4.115.160	3.681.504
. . . . Beyond 12 months
. . Due to other providers of finance
. . . . Within 12 months
. . . . Beyond 12 months
. . Advances from customers	1.329.820	1.164.689
. . . . Within 12 months	1.329.820	1.164.689
. . . . Beyond 12 months
. . Trade payables	7.746.526	5.571.532
. . . . Within 12 months	7.746.526	5.571.532
. . . . Beyond 12 months
. . Securities issued
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to subsidiary companies
. . . . Within 12 months
. . . . Beyond 12 months
. . Due to associated companies	331.197	3.440.193
. . . . Within 12 months		3.440.193
. . . . Beyond 12 months	331.197
. . Due to holding companies	240.000
. . . . Within 12 months	240.000
. . . . Beyond 12 months
. . Due to the tax authorities	735.668	512.295
. . . . Within 12 months	735.668	512.295
. . . . Beyond 12 months
. . Due to social security and welfare inst.	776.344	652.326
. . . . Within 12 months	776.344	652.326
. . . . Beyond 12 months
. . Other payables	6.988.762	3.544.394
. . . . Within 12 months	374.333	878.127
. . . . Beyond 12 months	6.614.429	2.666.267
Total accounts payable	22.263.477	18.566.933	2.744
ADJUSTMENT ACCOUNTS
. Agio on loans
. Other adjustment accounts	463.065	739.317
Total adjustment accounts	463.065	739.317
TOTAL LIABILITIES	53.805.841	34.408.214	19.531

MEMORANDUM ACCOUNTS

Third party goods

Investment accounts

Risk accounts

Civil and fiscal norms relation

PROFIT AND LOSS ACCOUNTS

VALUE OF PRODUCTION
. Revenues from sales and services	34.029.349	19.458.755	3.696
. Changes in work in progress	1.222.009	5.737.717
. Changes in semi-manufact. products	-67.015	1.562.654
. Capitalization of internal work
. Other income and revenues	689.180	1.412.097	9.881
. . Contributions for operating expenses
. . Different income and revenues	689.180	1.412.097	9.881
Total value of production	35.873.523	28.171.223	13.577
PRODUCTION COSTS
. Raw material,other materials and consum.	19.591.889	17.632.339	1.924
. Services received	7.971.471	4.720.800	2.737
. Leases and rentals	1.164.224	844.987
. Payroll and related costs	5.586.254	4.072.979
. . Wages and salaries	3.768.812	2.615.116
. . Social security contributions	1.711.302	1.280.535
. . Employee termination indemnities	92.670	81.032
. . Pension and similar
. . Other costs	13.470	96.296
. Amortization and depreciation	3.448.497	1.331.322	7.500
. . Amortization of intangible fixed assets	2.144.890	676.931
. . Amortization of tangible fixed assets	1.288.837	642.787	7.500
. . Depreciation of tangible fixed assets
. . Writedown of current receiv.and of liquid	14.770	11.604
. Changes in raw materials	-173.554	-826.259
. Provisions to risk reserves
. Other provisions
. Other operating costs	415.516	104.417	734
Total production costs	38.004.297	27.880.585	12.895
Diff. between value and cost of product.	-2.130.774	290.638	682
FINANCIAL INCOME AND EXPENSE
. Income from equity investments
. . In subsidiary companies
. . In associated companies
. . In other companies
. Other financial income	829	32	70
. . Financ.income from receivables
. . . Towards subsidiary companies
. . . Towards associated companies
. . . Towards holding companies
. . . Towards other companies
. . Financ.income from secur. t.f.assets
. . Financ.income from secur. cur.assets
. . Financ.income other than the above	829	32	70
. . . - Subsidiary companies
. . . - Associated companies
. . . - Holding companies
. . . - Other companies	829
. Interest and other financial expense	-237.925	-55.737
. . Towards subsidiary companies
. . Towards associated companies
. . Towards holding companies
. . Towards other companies	237.925
Total financial income and expense	-237.096	-55.705	70
ADJUSTMENTS TO FINANCIAL ASSETS
. Revaluations
. . Of equity investments
. . Of financ.fixed assets not repres.E.I.
. . Of securities incl.among current assets
. Devaluation
. . Of equity investments
. . Of financial fixed assets (no equity inv)
. . Of securities included among current ass
Total adjustments to financial assets
EXTRAORDINARY INCOME AND EXPENSE
. Extraordinary income
. . Gains on disposals
. . Other extraordinary income
. Extraordinary expense			-1
. . Losses on disposals
. . Taxes relating to prior years
. . Other extraordinary expense			-1
Total extraordinary income and expense			-1
Results before income taxes	-2.367.870	234.933	751
. Taxes on current income	-524.031	143.520
. . current taxes	32.748	169.260
. . differed taxes(anticip.)	-556.779	-25.740
. Net income for the period	-1.843.839	91.413	751
. Adjustments in tax regulations pursuance
. Provisions in tax regulations pursuance
. Profit (loss) of the year	-1.843.839	91.413	751

RATIOS	Value Type	as at 31/12/2011	as at 31/12/2010	as at 31/12/2009	Sector Average
COMPOSITION ON INVESTMENT
Rigidity Ratio	Units	0,68	0,60	0,98	0,18
Elasticity Ratio	Units	0,32	0,40	0,02	0,80
Availability of stock	Units	0,19	0,25	n.c.	0,24
Total Liquidity Ratio	Units	0,13	0,15	0,02	0,48
Quick Ratio	Units	0,00	0,00	0,01	0,03
COMPOSITION ON SOURCE
Net Short-term indebtedness	Units	0,53	1,27	0,16	3,25
Self Financing Ratio	Units	0,53	0,36	0,86	0,19
Capital protection Ratio	Units	0,02	0,03	0,36	0,63
Liabilities consolidation quotient	Units	0,61	0,33	n.c.	0,19
Financing	Units	0,78	1,48	0,16	3,80
Permanent Indebtedness Ratio	Units	0,71	0,52	0,86	0,36
M/L term Debts Ratio	Units	0,17	0,15	n.c.	0,11
Net Financial Indebtedness Ratio	Units	0,14	0,29	n.c.	0,63
CORRELATION
Fixed assets ratio	Units	1,03	0,86	0,88	1,75
Current ratio	Units	1,11	0,87	0,17	1,21
Acid Test Ratio-Liquidity Ratio	Units	0,46	0,32	0,17	0,81
Structure's primary quotient	Units	0,78	0,61	0,88	1,03
Treasury's primary quotient	Units	0,00	0,00	0,04	0,06
Rate of indebtedness ( Leverage )	%	187,58	274,66	116,35	516,42
Current Capital ( net )	Value	1.668.541	-2.110.486	-2.275	422.465
RETURN
Return on Sales	%	4,72	7,31	223,24	3,35
Return on Equity - Net- ( R.O.E. )	%	-6,43	0,73	4,47	5,13
Return on Equity - Gross - ( R.O.E. )	%	-8,26	1,88	4,47	14,77
Return on Investment ( R.O.I. )	%	-3,96	0,84	3,49	4,16
Return/ Sales	%	-6,26	1,49	18,45	4,11
Extra Management revenues/charges incid.	%	n.c.	31,45	110,12	28,57
Cash Flow	Value	1.604.658	1.422.735	8.251	122.482
Operating Profit	Value	-2.130.774	290.638	682	144.752
Gross Operating Margin	Value	1.317.723	1.621.960	8.182	241.990
MANAGEMENT
Credits to clients average term	Days	56,27	42,94	n.c.	111,85
Debts to suppliers average term	Days	104,23	139,85	n.c.	128,30
Average stock waiting period	Days	105,35	159,69	n.c.	80,43
Rate of capital employed return ( Turnover )	Units	0,63	0,57	0,19	1,08
Rate of stock return	Units	3,42	2,25	n.c.	4,45
Labour cost incidence	%	16,42	20,93	n.c.	19,12
Net financial revenues/ charges incidence	%	-0,70	-0,29	1,89	-1,08
Labour cost on purchasing expenses	%	14,70	14,61	n.c.	19,02
Short-term financing charges	%	1,07	0,30	n.c.	2,68
Capital on hand	%	158,12	176,83	528,44	91,91
Sales pro employee	Value	195.570	100.302		198.432
Labour cost pro employee	Value	32.104	20.994		35.779

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.57
UK Pound	1	Rs.87.90
Euro	1	Rs.71.53

INFORMATION DETAILS

Report Prepared by :

SDA

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	--

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%)

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.