MIRA INFORM REPORT

Report Date :

21.12.2012

IDENTIFICATION DETAILS

Name :	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED
Registered Office :	M.B. Raju Estate, Sangadigunta, Guntur – 522 003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.09.2001
Com. Reg. No.:	01-037792
Capital Investment / Paid-up Capital :	Rs.31.500 millions
CIN No.: [Company Identification No.]	U17115AP2001PTC037792
TAN No.: [Tax Deduction & Collection Account No.]	HYDS09677D
PAN No.: [Permanent Account No.]	AAPFS4135D
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in production of Cone and Hank Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 672000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The latest financials of the company are not made available. There appear huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	B+ (Long Term Fund Based Limit)
Rating Explanation	High risk of default.
Date	March 28, 2012

Rating Agency Name	ICRA
Rating	A4 (Short Term Fund Based Limit)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 28, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	M.B. Raju Estate, Sangadigunta, Guntur – 522 003, Andhra Pradesh, India
Tel. No.:	91-863-2224644
Fax No.:	Not Available
E-Mail :	nrkrtexilesguntur@yahoo.co.in
Factory :	Located at: v Rajahmundry v Chebrolu v Jalna

DIRECTORS

As on 27.09.2012

Name :

Mr. Nukala Venkata Venu Gopala Rao

Designation :

Managing Director

Address :

D. No.2-32-2, Lenin Road, Gandhi Nagar, Tenali – 522 201, Andhra Pradesh, India

Date of Birth/Age :

04.01.1959

Date of Appointment :

12.09.2001

DIN No.:

00017924

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TZ1981PTC001044	ARUL MIGU SIVASKTI SPINNING MILLS PRIVATE LIMITED	Managing director	12/06/1991	12/06/1991	-	Active	NO
2	U17115AP2001PTC037792	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED	Managing director	12/09/2001	12/09/2001	-	Active	NO
3	U40300AP2010PTC067856	NRK ENERGY PRIVATE LIMITED	Managing director	07/04/2010	07/04/2010	-	Active	NO
4	U10100AP2010PTC069695	NRK COAL AND WASHERIES PRIVATE LIMITED	Director	27/07/2010	27/07/2010	-	Active	NO

Name :

Mrs. Nukala Lakshmi Kumari

Designation :

Director

Address :

D. No.2-32-2, Lenin Road, Gandhi Nagar, Tenali – 522 201, Andhra Pradesh, India

Date of Birth/Age :

16.01.1960

Date of Appointment :

12.09.2001

DIN No.:

00018118

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111TZ1981PTC001044	ARUL MIGU SIVASKTI SPINNING MILLS PRIVATE LIMITED	Director	12/06/1991	12/06/1991	-	Active	NO
2	U17115AP2001PTC037792	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO

Name :

Mr. Nukala Venkata Naga Sudheer

Designation :

Director

Address :

D. No.2-32-2, Lenin Road, Gandhi Nagar, Tenali – 522 201, Andhra Pradesh, India

Date of Birth/Age :

14.07.1980

Date of Appointment :

12.09.2001

DIN No.:

00018121

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17115AP2001PTC037792	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO
2	U40300AP2010PTC067856	NRK ENERGY PRIVATE LIMITED	Director	07/04/2010	07/04/2010	-	Active	NO
3	U10100AP2010PTC069695	NRK COAL AND WASHERIES PRIVATE LIMITED	Director	27/07/2010	27/07/2010	-	Active	NO

Name :

Mr. Nukala Natraj

Designation :

Director

Address :

D. No.2-32-2, Lenin Road, Gandhi Nagar, Tenali – 522 201, Andhra Pradesh, India

Date of Birth/Age :

11.09.1982

Date of Appointment :

23.03.2008

DIN No.:

02119316

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17115AP2001PTC037792	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED	Director	23/03/2008	23/03/2008	-	Active	NO
2	U40300AP2010PTC067856	NRK ENERGY PRIVATE LIMITED	Director	07/04/2010	07/04/2010	-	Active	NO
3	U10100AP2010PTC069695	NRK COAL AND WASHERIES PRIVATE LIMITED	Director	27/07/2010	27/07/2010	-	Active	NO
4	U67190DL2012PTC245290	ITUS INSURANCE BROKERS PRIVATE LIMITED	Director	26/11/2012	26/11/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Names of Shareholders	No. of Shares
Nukala Venkata Venu Gopala Rao	855000
Nukala Lakshmi Kumari	756000
Nukala Venkata Naga Sudheer	849000
N. Naga Lalitya	60000
Nukala Natraj	630000
Total	3150000

As on 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in production of Cone and Hank Yarn.
Products :	Spinning Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	31.03.2011
Licensed Capacity	Not Applicable
Installed Capacity (No. Spindles)	49800
Production of Yarn	4946696 Kgs.

GENERAL INFORMATION

Suppliers :

v Aashirwad Cotton Corporation

v Asian Engineering Co

v Jayam Associates

v Nataraj Cotton Co ICH

v Ram Traders, Adilabad

v Krishna Textile Mills

v Supriya Spinning Mills Private Limited

v R.R. Enterprises

v Essargee Mills

v Venkata Siva Sai Lakshmi Traders

v Mohit Cotton Company

v Naresh Textiles

v Cauveri Textiles

v Aarbee Associates

v White and Ehite Cotton Trading Co

v CR Engineering

Customers :

v Amravathi Textiles Private Limited

v PEC Limited, Rajam

v Rathi Sales Corporation

v Arun Textiles

v R.T. Enterprises

v Sadma Fashions

v Swastik Enterprises

v NSL Textiles – Inkolu

v Parekh Textiles Private Limited

v Deepika Textiles

No. of Employees :

Not Available

Bankers :

v The Karur Vysya Bank Limited, # 22-4-105, Hema Sudarsana Complex, Lalapet, Near Jinnah Tower, Guntur – 522 003, Andhra Pradesh, India

v Andhra Bank

v HDFC Bank Limited

v Indian Bank

v Oriental Bank of Commerce

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From The Karur Vysya Bank Limited, Guntur
Term Loans	335.285	251.617
Cash Credit (On Hypothecation stocks of cotton in all its forms including Yarn)	347.361	243.520
Loan against Warehouse Bonds	71.477	0.000
Car Loan 1403.717.3155	0.000	0.568
Total	754.123	495.705

The above loans are secured by equitable mortgage of immovable and movable properties and hypothecation of Plant and Machinery of the company. The loans are collaterally secured by the properties belonging to Sri N.V.N Sudheer, Director of the company

The above loans are also secured by the personal guarantee of all Directors.

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Directors and Members	63.004	28.523
Total	63.004	28.523

Banking Relations :	--
Auditors :
Name :	Uma Maheswara Rao and Company Chartered Accountants
Address :	Samata, Brodipet Main Road, Guntur – 522 002, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAAFU4353L
Related Party :	Sri Jagadambica Cotton Company (Proprietor – N.V. Venugopala Rao, Guntur)

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3150000	Equity Shares	Rs.10/- each	Rs.31.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		31.500	4.600	4.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		136.401	87.552	56.042
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		167.901	92.152	60.642
LOAN FUNDS
1] Secured Loans		754.123	495.705	241.089
2] Unsecured Loans		63.004	28.523	25.715
TOTAL BORROWING		817.127	524.228	266.804
DEFERRED TAX LIABILITIES		22.423	13.246	5.486
TOTAL		1007.451	629.626	332.932
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		517.751	379.942	258.696
Capital work-in-progress		0.000	3.138	7.018
INVESTMENT		0.039	0.052	0.052
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	396.487	170.626	45.689
	Sundry Debtors	51.808	22.734	18.083
	Cash & Bank Balances	8.457	9.579	3.897
	Other Current Assets	70.499	82.509	70.453
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		527.251	285.448	138.122
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.590	33.095	28.537
	Other Current Liabilities	3.000	4.164	20.223
	Provisions	0.000	1.695	22.196
Total Current Liabilities		37.590	38.954	70.956
Net Current Assets		489.661	246.494	67.166
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1007.451	629.626	332.932

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	987.274	630.801	668.404
		Other Income	12.987	22.207	23.696
		TOTAL (A)	1000.261	653.008	692.100
Less	EXPENSES
		Cost of Goods Sold	622.184	415.561	505.133
		Manufacturing Expenses	119.242	76.451	65.179
		Administrative Expenses	34.024	19.461	14.457
		Selling Expenses	20.341	15.882	14.090
		Bad Debts	0.000	0.000	1.000
		Provision for Diminution in the value of investments	0.014	0.000	0.000
		Loss on Sale of Assets	0.079	0.007	0.000
		TOTAL (B)	795.884	527.362	599.859
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		204.377	125.646	92.241
Less	INTEREST & FINANCIAL EXPENSES (D)		64.100	37.601	36.256
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		140.277	88.045	55.985
Less/ Add	DEPRECIATION/ AMORTISATION (F)		67.212	40.188	42.603
	PROFIT BEFORE TAX (E-F) (G)		73.065	47.857	13.382
Less	TAX (H)		24.227	16.460	4.194
	PROFIT AFTER TAX (G-H) (I)		48.838	31.397	9.188
	EXCESS/ (SHORT) PROVISION IN EARLIER YEARS		0.011	0.113	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.052	0.042	0.054
Less	APPROPRIATIONS
		Transferred to General Reserve	48.900	31.500	9.200
	BALANCE CARRIED TO THE B/S		0.001	0.052	0.042
	EARNINGS IN FOREIGN CURRENCY		USD 1103204.10	USD 407623.10	Nil
	Earnings Per Share (Rs.)		90.26	68.25	19.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.88	4.81	1.33
Net Profit Margin (PBT/Sales)	(%)	7.40	7.59	2.00
Return on Total Assets (PBT/Total Assets}	(%)	6.99	7.19	3.37
Return on Investment (ROI) (PBT/Networth)		0.44	0.52	0.22
Debt Equity Ratio (Total Liability/Networth)		5.09	6.11	5.57
Current Ratio (Current Asset/Current Liability)		14.03	7.33	1.95

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

REVIEW OF OPERATIONS:

The company has recorded a profit after tax of Rs.48.838 millions during the year as against Rs.31.397 millions of previous year. During the year, the company had achieved a turnover of Rs.987.274 millions as against the turnover of Rs.630.802 millions in the previous year.

The Company has effected direct Exports of 268686 Kgs Cotton Yarn (Previous Year 134719 Kgs) and realized Rs.50.143 millions (Previous Year Rs.18.943 millions) besides indirect export in valuing in Rs.71.786 millions (Previous Year Rs.108.008 millions) through Merchant Exporter. This has enabled the company to meet its Export Obligations under EPCG Scheme.

FUTURE OUTLOOK:

The future of the Textile Industry is dependant on the International market conditions and the fluctuation of Dollar against Rupee. However, The Company is hopeful of doing good business in the ensuing years.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17115AP2001PTC037792
Name of the company	SRI NUKALA RAMA KOTESWARA RAO TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	M.B. Raju Estate, Sangadigunta, Guntur – 522 003, Andhra Pradesh, India E-Mail: nrkrtextilesguntur@yahoo.co.in
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property (not being pledge)
Particular of charge holder	The Karur Vysya Bank Limited, # 22-4-105, Hema Sudarsana Complex, Lalapet, Near Jinnah Tower, Guntur – 522 003, Andhra Pradesh, India E-Mail: guntur@kvbmail.com
Nature of description of the instrument creating or modifying the charge	Machinery Loan Agreement Confirmation of Title Deeds Demand Promissory Note Sanction/Renewal of credit facilities Resolution
Date of instrument Creating the charge	29.03.2012
Amount secured by the charge	Rs.13.400 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1% over and above the Base Rate of the Bank as applicable from time to time Terms of Repayment: Term Loan repayable on 74 monthly installments commencing from April, 2012. Margin: 15% Extent and Operation of the charge: fully on securities
Short particulars of the property charged	Hypothecation of all the Plant and Machineries, fixtures, tools, etc installed and to be installed at the Company's mills at Rajahmundry and Chebrolu. Hypothecation of machineries purchased and to be purchased out of bank finance Equitable Mortgage of land admeasuring Ac. 7.00 cents out of Ac. 18.26 cents in S. No.184/2 and 191/2, situated at Lalacheruvu, Rajahmundry urban mandalam, East Godavari District nearest D.No.71-10-25 Equitable Mortgage of land admeasuring Ac. 12.05 cents situated at D. No. 163/1, 164/6, 171/1, 2, 3 and 4, 172/1, Chebrolu, Guntur along with building. TLM (TUF) Hypothecation of new 2 no.s of Ring Frames MW Coimbatore out of Bank finance.

FIXED ASSETS:

v Freehold Land

v Buildings

v Plant and Machinery

v Electrical Equipment

v Furniture and Fittings

v Computer

v Vehicles

v Office Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.54.84
UK Pound	1	Rs.89.11
Euro	1	Rs.72.47

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.