MIRA INFORM REPORT

Report Date :

27.12.2012

IDENTIFICATION DETAILS

Name :	EURO DECOR PRIVATE LIMITED [w.e.f. 09.05.2008]
Formerly Known As :	SUBHNEN DÉCOR PRIVATE LIMITED
Registered Office :	Euro House CTS No. 1406, A 25/6, Chincholi Bunder Road, Behind Inorbit Mall, Malad (West), Mumbai – 400064, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.06.1997
Com. Reg. No.:	11-109078
Capital Investment / Paid-up Capital :	Rs.34.063 Millions
CIN No.: [Company Identification No.]	U20200MH1997PTC109078
TAN No.: [Tax Deduction & Collection Account No.]	MUMS39551B
PAN No.: [Permanent Account No.]	AABCS4248L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Decorative Veneers Plywood’s.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 626000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The latest financials are not made available with the government department. As per previous year’s record, the company has performed well; it has achieved better growth in its sales and profit during 2011. Trade relations are reported to be fair. Business sis active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

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	CRISIL
Rating	SME
Rating Explanation	The credit worthiness of the company is above Average.
Date	August, 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.

INFORMATION PARTED BY

Name :	Mr. S. R. Jadhav.
Designation :	Accounts Manager
Contact No.:	91-22-40605011
Date :	26.12.2012

LOCATIONS

Registered/ Corporate/ Head Office/ Factory 1 :	Euro House CTS No. 1406, A 25-6, Chincholi Bunder Road, Behind Inorbit Mall, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-40605000 (60 Lines)
Fax No.:	91-22-40605001
E-Mail :	mca@mgca.in subhnen@vsnl.com accounts@eurodecor.in jdsonics@eurovitrified.com info@eurodecor.co.in jdsoni@rediffmail.com
Website :	www.subhnen.com www.eurodecor.co.in
Area :	1000 sq. ft.
Located :	Owned
Factory 2 :	Survey No. 265 / 8 / 3 and 285 / 9 /1, Demni Road, Dadra Village, Silvasa – 396191, Union Territory, India
Tel. No.:	91-280-2668871 / 72
Fax No.:	91-280-266885
Factory 3 :	Unit III, Survey No. 474/1, Bachau Dudhai Road, Kutch, Gujarat, India

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Subhash Laljibhai Shah
Designation :	Managing Director
Address :	Flat No. 403, Prime Avenue, Near Nanavati Hospital, Vile Parle (West), Mumbai-400056, Maharashtra, India
Date of Birth/Age :	01.06.1970
Date of Appointment :	01.04.2008
Din No.:	00189982
Name :	Mr. Hansraj Karshan Gala
Designation :	Whole Time Director
Address :	601-A, Priti Palace, Dadabhai Cross, Road No. 3, Vile Parle (West), Mumbai-400056, Maharashtra, India
Date of Birth/Age :	26.11.1964
Date of Appointment :	01.04.2008
Din No.:	00289503
Name :	Mr. Jitendra Popatlal Nandu
Designation :	Whole Time Director
Address :	52, Chandraprabha, Nehru Road, 5^th Floor, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	12.08.1973
Date of Appointment :	01.04.2008
Din No.:	00197392
Name :	Mr. Dhiraj Popatlal Nandu
Designation :	Whole Time Director
Address :	52, Chandraprabha, Nehru Road, 5^th Floor, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	19.10.1966
Date of Appointment :	01.04.2008
Din No.:	00197687
Name :	Mr. Mukesh Bharatiya
Designation :	Additional Director
Address :	Opposite Pabuji Temple Station Road, Sihor – 364240, Gujarat, India
Date of Birth/Age :	17.10.1970
Date of Appointment :	15.11.2009
Din No.:	01111700

KEY EXECUTIVES

Name :	Mr. S. R. Jadhav.
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	6.57
Directors or relatives of directors	33.97
Other top fifty shareholders	59.46
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Decorative Veneers Plywood’s.

Products :

ITC CODE NO.	PRODUCT DESCRIPTIONS
4406.90	Prelam MDF Boards
4407.90	Prelam Particle Boards
4823.90	Decorative Laminates

Exports :

Products :

Decorative Veneers Plywood’s.

Countries :

· South Africa

Malaysia

Singapore

Korea

Imports :

Products :

Raw Materials

Countries :

· China

Malaysia

Singapore

Korea

Europe

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· PDH Asia International Pte Limited, Singapore

Customers :

End Users

· Accenture

· CNBC

· Crisil

· IBM

· East India Hotel

· Godrej Group Companies

· HDFC Bank

· Hyatt Group of Hotels

· ICICI Bank

· Infosys

· Larsen and Toubro (L and T)

· Microsoft

· MTNL

· Reliance Industries Limited

· Reliance Info

· Religare

· United Bank of India

· Tata Group Companies

· Satyam Companies

· Della Technisia Private Limited, Mumbai

· Glaxo India Limited, Mumbai

· Tata Consultancy Services

· Mphasis India Limited, Bangalore

· ABN Amro Bank, Mumbai

· Crediut Agricole Indosuez

· KLES, Belgaon

· Hindustan Lever Limited

· Mascon Global Limited, Bangalore

No. of Employees :

1000 (Approximately)

Bankers :

· The Cosmos Co-operative Bank Limited

Pratik Avenue, 1^st Floor, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India

· Union Bank of India

Branch Vile Parle (East), Mumbai, Maharashtra, India

· Syndicate Bank

· HDFC Bank Limited

· ICICI Bank Limited

Facilities :

SECURED LOAN	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Rupee term loans	102.707	324.331
Loans taken for vehicles	2.936	5.073
Other debts	733.236 (A)	398.504 (B)
Total	838.879	727.908
NOTE: (A) Buyer's Credit Rs.220.285 Millions Cash credit facilities:-Rs.512.951 Millions. (B) Buyer's Credit:-Rs.0 Cash Credit Facilities:-Rs.398.504 Millions.
UNSECURED LOAN	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Rupee term loans	0.366	2.829
Directors loans	32.962	56.229
Other debts	251.454 (A)	257.082 (B)
Total	284.782	316.140
NOTE: (91) From Shareholders and Others Rs.226.035 Millions From Companies:-Rs.25.419 Millions. (B) From Shareholders and Others Rs.246.314 Millions From Companies:-Rs.10.767 Millions.

Banking Relations :	--
Auditors :
Name :	Deepak Maru and Company Chartered Accountant
Address :	2/5, Gajanan Colony, Jawahar Nagar, Goregaon (West), Mumbai – 400062, Maharashtra, India
Tel. No.:	91-22-28791349 / 32489840
PAN No:	AAFFD1247F
Related Parties :	· Euro Flooring Private Limited · Gurukul Enterprises Private Limited · Laxmi Ply and Veneer · Janata Industries · National Ply and Laminates · Euro Multivision Limited · Disti Multimedia and Communication Private Limited · Euro Solo Energy Systems Private Limited · Kevin Impex Private Limited · Nls Enterprises Private Limited · Neelam Metal and Hardware · National Laminates Corporation · Vaman International Private Limited · Euro Ceramics Limited · Kanch Ghar · Euro Merchandise (India) Limited · Laxmi Ply Agency · Subhnen Ply Private Limited · Canbara Construction Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1295000	Equity Shares	Rs.10/- each	Rs.12.950 Millions
405000	6% Non Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.4.050 Millions
4700000	14% Non Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.47.000 Millions
	Total		Rs.64.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
348823	Equity Shares	Rs.10/- each	Rs.3.488 Millions
375500	6% Non Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.3.755 Millions
2682000	14% Non Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.26.820 Millions
	Total		Rs.34.063 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		34.063	34.063	34.063
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		122.519	109.796	104.105
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		156.582	143.859	138.168
LOAN FUNDS
1] Secured Loans		838.879	727.908	457.579
2] Unsecured Loans		284.782	316.140	232.587
TOTAL BORROWING		1123.661	1044.048	690.166
DEFERRED TAX LIABILITIES		4.144	8.882	4.841
TOTAL		1284.387	1196.789	833.175
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		545.943	541.352	378.713
Capital work-in-progress		0.000	0.000	137.126
INVESTMENT		2.953	2.953	2.953
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	614.544	496.732	377.524
	Sundry Debtors	272.875	344.686	189.959
	Cash & Bank Balances	82.209	59.621	39.036
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	162.066	64.754	53.661
Total Current Assets		1131.694	965.793	660.180
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	317.762	219.686	316.575
	Other Current Liabilities	78.441	90.358	25.898
	Provisions	0.000	3.265	3.324
Total Current Liabilities		396.203	313.309	345.797
Net Current Assets		735.491	652.484	314.383
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1284.387	1196.789	833.175

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1153.778	822.429	672.573
		Other Income	2.422	20.561	0.443
		TOTAL	1156.200	842.990	673.016
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1114.704	806.862	628.734
		Advertising Expenses
		Financial Expenses
		TOTAL	1114.704	806.862	628.734
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		41.496	36.128	44.282
Less/ Add	DEPRECIATION/ AMORTISATION		32.028	26.396	18.737
	PROFIT / (LOSS) BEFORE TAX		9.468	9.732	25.545
Less	TAX		(4.739)	4.041	1.830
	PROFIT / (LOSS) AFTER TAX		14.207	5.691	23.715
	Earnings / (Loss) Per Share (Rs.)		40.73	32.45	--

Expected Sales (2012-13): Rs.1500.000 Millions

The above information has been parted by Mr. S. R. Jadhav.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.23	0.68	3.52
Net Profit Margin (PBT/Sales)	(%)	0.82	1.18	3.80
Return on Total Assets (PBT/Total Assets}	(%)	0.56	0.65	2.45
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.18
Debt Equity Ratio (Total Liability/Networth)		9.70	9.44	7.50
Current Ratio (Current Asset/Current Liability)		2.86	3.08	1.91

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors due others	317.762	219.686	316.575
Total	317.762	219.686	316.575

Sr. No.	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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

TRADE REFERENCE:

· PDH Asia International Pte Limited, Singapore

· Della Technisia Private Limited, Mumbai

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U20200MH1997PTC109078
Name of the company	EURO DECOR PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Euro House, CTS No. 1406, A25/6, Chincholi Bunder Rd,Behind Inorbit Mall, Malad (W), Mumbai - 400064, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	The Cosmos Co-Operative Bank Limited Pratik Avenue, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India e-mail id: suhas.chikode@cosmosbank.in
Nature of instrument creating charge	First Supplemental Deed of Hypothecation of Stocks, Book Debts and Machinery
Date of instrument Creating the charge	11.06.2010
Amount secured by the charge	Rs. 794.589 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest - cash credit: 12.50 % p.a. Cheque purchase: 18% p.a. Terms of Repayment - Cash Credit: On Demand (review within 12 months) Cheque Purchase: On Demand (review within 12 months) Term Loan: 66 months; EMI of Rs. 2.582 millions p.m. for first 24 months and Rs. 5.039 millions p.m. for next 36 months Letter of Credit: On Demand (review within 12 months) Bank Guarantee: On Demand (review within 12 months) Margin - Cash Credit: 25% in Banks favour Term Loan: 25 % in Banks favour Letter of Credit: 10% in Banks favour Bank Guarantee: 25% in Banks favour Extent and Operation of the charge - The charge will operate to the extent of Rs. 794.589 millions on the security offered by the Company for the limit sanctioned by the bank. Others – Cash Credit: 350.000 millions Letter Of Credit: 255.000 millions Term Loan: 186.354 millions Bank Guarantee: 1.735 millions Cheque Purchase: 1.500 millions ----------------- Total 794.589 millions
Particulars of the property charged	Description of the mortgaged property/ies: Survey No. 265/6, 265/8/3, 265/7/2, 265/9/1, 265/9/2, Demni Road, Dadra village, Silvassa All its stock in trade, raw materials, goods in process, semi-manufactured and manufactured goods, semi-finished products hereunder written or at any time hereafter belonging to or at the disposal of the borrowers or that may be held by any party anywhere to the order and disposition of the borrower or that may be held by any part anywhere to the order and disposition of the borrowers and which are now stored or being stored or which may hereafter from time to time be stored at or brought into or lying or be in the borrowers premises godowns or any other places whatsoever at 265/6, 265/8/3, 265/7/2, 265/9/1, 265/9/2, Demni Road, Dadra, Silvassa or elsewhere in India All the present and future book debts, outstanding moneys, receivables, claims, bills in action, contracts, engagements and securities which are now due and qwing or which may at any time hereafter during the continuance of the security become due and qwing to the borrower howsoever. All the borrowers movable machinery plant and equipment with their accessories and spare parts belonging hereafter to the borrower which are installed and/or being installed or to be installed hereafter and/or brought in, stored or be in about the premises warehouses or godowns of the borrowers at 265/6, 265/7/2, 265/9/1, 265/9/2, 265/8/3, or wherever else in India and more specifically attached as Annexure herewith.
Particulars of the present modification	By present modification the cash credit limit has been enhanced from Rs. 250.000 Millions to Rs. 350.000 Millions and Letter of Credit limit has been enhanced from Rs. 195.000 Millions to Rs. 255.000 Millions. Overall limit of the Charge has been enhanced from Rs. 634.589 millions to Rs. 794.589 million

CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE BOOKS OF ACCOUNTS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Letter of Credit	158.000	108.286
Bank Guarantees	1.734	1.734
Joint Guarantee given to the Banks for the loans taken by the Euro Merchandise (India) Limited, (a group Company)	162.000	162.000
Collateral Guarantee given to the Banks for the loans taken by the Euro Ceramics Limited, (a group Company)	3490.277	3490.277
Sales Tax demand raised by Kerala Sales Tax Department pertaining to financial years 1999-00 and 2000-01 for which writ petition is filed before Honble High Court of Kerala.	0.966	0.966
Total	3812.977	3763.263

· Income Tax demand raised by CIT(A) pertaining to financial year 2004-05 for which writ petition was filed with Honble ITAT Rs.20.525 Millions has been set aside by the Honble ITAT and the same is referred back to CIT(A) for fresh adjudication.

· Excise Duty demand raised by Commissioner Central Excise Vapi along with penalty for the period April 2002 to May 2005 Rs.205.113 Millions which was pending before Honble CESTAT has been set aside by the Honble CESTAT and the same is referred back to the Commissioner for fresh adjudication.

· The Company has imported various Capital Goods under the Export Promotion Capital Goods Scheme (EPCG), of the Government of India, through various licenses, at concessional rates of Custom Duty on an undertaking to fulfill quantified exports within a period of eight years from the date of the respective licenses. The Custom Duty so saved amounts to Rs.24.074 Millions and the corresponding Export Obligation to be fulfilled is Rs.24.075 Millions as on the Balance Sheet date. If the said export is not made within the stipulated time period, the company is required to pay the said saved Custom Duty together with interest @15% p.a. Formal discharge from the obligation by the appropriate authorities is in progress in respect of the Licenses of which Export Obligation is entirely fulfilled by the close of the year.

FIXED ASSETS:

· Land - Freehold

· Building

· Plant and Machinery

· Electrical Installations

· Office Equipments

· Computers

· Vehicle

· Furniture and Fixtures

· Office Premises

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.54.96
UK Pound	1	Rs.88.68
Euro	1	Rs.72.45

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	4
--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		42

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.