MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	TESSITURA MONTI INDIA PRIVATE LIMITED
Registered Office :	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.01.2001
Com. Reg. No.:	11-130465
Capital Investment / Paid-up Capital :	Rs.350.000 Millions
CIN No.: [Company Identification No.]	U1711MH2001PTC130465
Legal Form :	Private Limited Liability Company
Line of Business :	The principal business of the company is the business of manufacturing of textile.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 3200000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 / Marketing Office :	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-26846961/62
Fax No.:	91-22-26846960
E-Mail :	indomont@vsnl.net marketing@tessituramonti.co.in ravikala@tessituramonti.co.in
Website :	http://tessituramonti.co.in

DIRECTORS

As on 19.09.2011

Name :

Mr. Manuel Ruggero Monti

Designation :

Chairman cum Managing Director

Address :

Cortina D’ Ampezzo Via Pezie N , Pezie 116

Date of Birth/Age :

02.09.1950

Date of Appointment :

15.01.2001

DIN No.:

01349686

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111MH2001PTC130465	TESSITURA MONTI INDIA PRIVATE LIMITED	Director	15/01/2001	15/01/2001	-	Active	NO
2	U74999MH1966NPL013602	THE INDO-ITALIAN CHAMBERS OF COMMERCE AND INDUSTRY	Director	21/07/2003	21/07/2003	-	Active	NO
3	U74900MH2010PTC201802	DIALOGUE TRADING & CONSULTING PRIVATE LIMITED	Director	7/04/2010	7/04/2010	-	Active	NO
4	U17120MH2009PTC196209	Aurora Apparel Private Limited	Director	23/09/2010	12/05/2010	-	Active	NO

Name :

Mr. Paolo Ramira Monti

Designation :

Director

Address :

Maserada Sul Piave Italy Via Saltore

Date of Birth/Age :

28.06.1953

Date of Appointment :

15.01.2001

DIN No.:

01424827

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111MH2001PTC130465	TESSITURA MONTI INDIA PRIVATE LIMITED	Director	15/01/2001	15/01/2001	-	Active	NO
2	U17111KA2005PTC058647	LAGUNA CLOTHING PRIVATE LIMITED	Director	20/09/2005	20/09/2005	-	Active	NO

Name :

Mr. Bruno Sergio Monti

Designation :

Director

Address :

Maserada Sul Piave Italy Via Saltore

Date of Birth/Age :

31.01.1957

Date of Appointment :

15.01.2001

DIN No.:

01639989

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111MH2001PTC130465	TESSITURA MONTI INDIA PRIVATE LIMITED	Director	15/01/2001	15/01/2001	-	Active	NO
2	U17111KA2005PTC058647	LAGUNA CLOTHING PRIVATE LIMITED	Director	20/09/2005	20/09/2005	-	Active	NO
3	U17120MH2009PTC196209	Aurora Apparel Private Limited	Director	23/09/2010	12/05/2010	-	Active	NO

Name :

Mr. Massimo Giorgio Monti

Designation :

Director

Address :

Treviso, Via Maffetti, 12, Italy

Date of Birth/Age :

05.03.1964

Date of Appointment :

15.01.2001

DIN No.:

01424761

Name :

Mr. Shrikrishna Yeshwant Kelkar

Designation :

Whole Time Director

Address :

C/O Mr. K M Salvi , 1182/108, Swapna Mali Colony, Takala, Kolhapur – 416 008, Maharashtra, India

Date of Birth/Age :

11.07.1956

Qualification:

B.Tech

Date of Appointment :

01.04.2007

DIN No.:

01451026

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111MH2001PTC130465	TESSITURA MONTI INDIA PRIVATE LIMITED	Whole-time director	1/04/2007	1/04/2007	-	Active	NO
2	U17120MH2009PTC196209	Aurora Apparel Private Limited	Director	23/09/2010	7/10/2009	5/05/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Madhukar Mayyala Kamath
Designation :	Secretary
Address :	602, Sunflower Royal Complex, Eksar Road, Borivali (West), Mumbai – 400 092, Maharashtra, India
Date of Birth/Age :	27.11.1959
Date of Appointment :	01.11.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
Gruppo Tessile Monti Spa, Italy	33652500
Gruppo Monti Spa, Italy	1347500
Total	35000000

Equity Share Break up (Percentage of Total Equity)

As on 19.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The principal business of the company is the business of manufacturing of textile.

Products :

Item Code No. (ITC Code)	235
Product Description	Dyed Yarn Shirting Fabrics

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity
Dyed Yarn Shirting Fabrics	Linear Meters	16197000	14036000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, 617, Murarji Khimji Building, 1^st Lane, Shahupuri, Kolhapur – 4160003, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	(A)1008.409	1039.119
Working capital loans banks secured	(B)327.530	246.856
Total	1335.939	1285.975
Note: (A) A. Term loans from banks are secured by way of first charge, by mortgage of land and buildings, and hypothecation of plant and machinery and movable fixed assets both present and future, whether or not installed, ranking paripassu interse between the bankers and are further secured by corporate guarantee of promoter company (holding company). (B) B. The Company has working capital facilities with banks. Such facilities are secured by hypothecation of stock of raw materials, stock in process, finished goods and book debts of the Company by way of first charge and second charge by way of mortgage and hypothecation of the assets as stated in note no. 1 above, ranking paripassu interse between the bankers and are further secured by corporate guarantee of promoter company (holding company).
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Foreign currency loans others unsecured	38.312	36.684
Total	38.312	36.684

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	1-8-384 and 385 Third Floor, Gowra Grand, S P Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India
PAN.:	AABFD7919A
Holding Company :	Gruppo Tessile Monti Spa, Italy
Fellow Subsidiaries :	· Tessitura Monti Spa, Italy · Tessitura Monti Cekia Sro, Italy · Schoch Reeds India Private Limited (CIN: U29269MH2008PTC187568)
Entity in which directors have significant influence:	· Laguna Clothing Private Limited, India (CIN: U17111KA2005PTC058647) · Gruppo Monti Spa, Italy
Joint Venture:	· Aurora Apparel Private Limited, India (CIN: U17120MH2009PTC196209) · New Island Clothing Limited, Mauritius

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 Millions

Note: Of the above 33,652,500 Equity Shares of Rs.10/- each are held by the holding company Gruppo Tessile Monti Spa a body a body corporate incorporated outside India

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		350.000	350.000	350.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		464.509	405.101	398.022
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		814.509	755.101	748.022
LOAN FUNDS
1] Secured Loans		1335.939	1285.975	1032.973
2] Unsecured Loans		38.312	36.684	40.980
TOTAL BORROWING		1374.251	1322.659	1073.953
DEFERRED TAX LIABILITIES		98.300	118.912	118.319
TOTAL		2287.060	2196.672	1940.294
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1371.038	1380.729	1354.718
Capital work-in-progress		23.119	77.011	83.623
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		38.241	10.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	644.051	494.157	291.345
	Sundry Debtors	289.959	223.639	124.669
	Cash & Bank Balances	57.809	38.838	96.142
	Other Current Assets	144.857	139.343	0.060
	Loans & Advances	41.878	38.745	102.255
Total Current Assets		1178.554	934.722	614.471
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	247.257	176.526	95.838
	Other Current Liabilities	27.074	17.699	11.810
	Provisions	49.561	11.565	4.870
Total Current Liabilities		323.892	205.790	112.518
Net Current Assets		854.662	728.932	501.953
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2287.060	2196.672	1940.294

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		1486.912	1118.010
		Other Income		53.718	9.919
		TOTAL (A)	2226.200	1540.630	1127.929
Less	EXPENSES
		Manufacturing and other expenses		1359.595	903.196
		Increase/(Decrease) in stock		(89.492)	15.918
		TOTAL (B)	1817.810	1270.103	919.114
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		408.390	270.527	208.815
Less	FINANCIAL EXPENSES (D)		130.570	92.355	70.835
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		277.820	178.172	137.980
Less/ Add	DEPRECIATION/ AMORTISATION (F)		193.620	165.485	151.381
	PROFIT/LOSS BEFORE TAX (E-F) (G)		84.200	12.687	(13.401)
Less	TAX (I)		24.790	5.608	7.672
	PROFIT/LOSS AFTER TAX (G-I) (J)		59.410	7.079	(21.073)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		375.101	368.022	389.095
	BALANCE CARRIED TO THE B/S		434.511	375.101	368.022
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1222.190	765.420	574.868
	TOTAL EARNINGS		1222.190	765.420	574.868
	IMPORTS
		Raw Materials	333.370	295.308	186.540
		Fabric (Traded)	1.149	0.000	0.897
		Capital Goods	70.1	111.983	72.071
		Stores & Spares	37.111	28.135	16.539
	TOTAL IMPORTS		441.730	435.426	276.047
	Earnings/Loss Per Share (Rs.)		1.70	0.20	(0.60)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.67	0.56	(1.87)
Net Profit Margin (PBT/Sales)	(%)	NA	0.85	(1.87)
Return on Total Assets (PBT/Total Assets}	(%)	7.14	1.35	(2.18)
Return on Investment (ROI) (PBT/Networth)		0.10	0.02	(0.02)
Debt Equity Ratio (Total Liability/Networth)		0.40	0.27	0.15
Current Ratio (Current Asset/Current Liability)		3.64	4.54	5.46

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	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
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	Yes
30) Major Shareholders, if available	Yes

OPERATIONAL PERFORMANCE

The turnover during the year increased by 36.57 % from Rs.1630.120 Million during the previous year to Rs.2226.200 Millions in the Current Year. This result is mainly due to increase in production and effect of expansion undertaken during the last year. During the same period the Company earned Cash Profit of Rs.253.030 Millions and net profit of Rs.59.410 Millions as against last previous year figures of Rs.178.180 Millions and Rs.7.080 Millions respectively. As forecasted in the last report, the turnover and margins have strongly improved during the current year. In order to conserve resources the board is not recommending any dividend.

During last year the weaving capacity expansion was completed and relative commercial production was started.

The Company has shifted part of its requirement of electricity consumption from the existing captive generation to State electricity from MSEB thereby reducing the costing on Power and Fuel. Efforts are also being made to avail more power requirements MSEB by end of the Current Year. Company also installed a coal fired boiler of 15 tons which will help in substantial reduction of cost of steam generation as earlier the more expensive furnace oil based boilers were used.

The total numbers of people employed at the end of the period were 815 and indirect employment was at 117 as compared to previous year’s figures of 747 and 117 respectively.

ECONOMIC SCENARIO

The year was marked by an increase in raw cotton prices to all time high and consequent increase in the yarn prices. Beginning of the year saw revival of demand. But the increase in cotton prices and other input costs during the year brought pressure on the margins and due to user resistance all cost increase were not passed on to the customers. By the beginning of current year cotton prices had started softening along with yarn prices. The customers are still hesitant to place order on a large scale, thereby bringing in uncertainty in the textile chain.

Inflation continued to be in double a digit which has resulted in increased interest rates to 4 to 5% higher than prevailing in the last year. This is likely to put further burden on the costs.

REVIEW OF OPERATIONS

During the last year operations have improved with higher production and turnover. Demand for companies products were good during the year, though higher cotton prices put pressure on the margins. Strengthening Euro has helped in maintaining the margins. Production of fabrics went up to 10.40 Million meters against 7.41 Million metres during the previous year showing an increase of 40%. Production cost increased by 34% and finance costs increased by 41%. In spite of increase in oil prices, the power and fuel cost was under control due to partial shift to grid power and starting of coal fired boiler as mentioned earlier.

FORECAST

The cost pressures are expected to continue during the current year. Substantial hike in interest rates will increase the finance costs. The new long term wage agreement is due during the year, which is expected to result in to raise of labour costs. Overall uncertainty in the world markets are also expected to add to the problems. The company is taking all possible steps to handle the cost pressures. The commissioning of Coal fired boiler and Grid power will help to reduce power costs. The new joint ventures will help to keep the margins better.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)
In respect of Bills of Exchange discounted with Bank	462.209
Income Tax Demand in respect of earlier years under dispute, pending in appeal before higher authorities. A mount paid there against under protest and included under Schedule 11 “Advance Payment of Income Tax (Net of provision)” (Rs.6.863 Millions) previous year (Rs.2.066 Millions)	16.031

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111MH2001PTC130465
Name of the company	TESSITURA MONTI INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400 093, Maharashtra, India Email: indomont@vsnl.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90144216
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, 617, Murarji Khimji Building, 1^st Lane, Shahupuri, Kolhapur – 4160003, Maharashtra, India Email: shahup@bankofbaroda.com
Nature of instrument creating charge	Supplemental Composite Agreement of Hypothecation of Goods, Book-debts, Moveable Machinery and Vehicles
Date of instrument Creating the charge	14.09.2011
Amount secured by the charge	Rs.350.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest On the Packing Credit @ the rate of 1.00% above Base rate upto 240 days and 2.00% penal interest above 240 days and On Cash credit limit 4.25% above Base Rate i.e. 15.00 p.a. at present with monthly rests. Terms of Repayment 12 months Margin 25% on the stocks, book-debts and other movables and shall provide margins of 10% in respect of Packing Credit facility. Extent and Operation of the charge Extend to Working Capital limits under line of credit of Rs. 350.000 Millions, together with interest, additional interest, further interest by way of liquidated damages, compound interest, commitment charges, commission, Premia on pre-payment, cost, charges, expenses and other moneys payable by the Company to the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stocks and book debts pn pari passu basis with Canara Bank and Bank of India. 2nd pari passu charge on the fixed assets of the company with Canara Bank and Bank of India. Corporate Guarantee of M/s. Grouppo Tessile Monti Spa, for the limit up to Rs. 250.000 Millions. For the enhance limit Corporate Guarantee of M/s. Gruppo Monti Spa, Italy Corporate Guarantee of Tessitura Monti Spa, Italy for the initial limit of Rs. 150.000 Millions.
Date of instrument modifying the charge	17.10.2008
Particulars of the present modification	By this modification additional Rs.100.000 Millions working capital limits also secured and now the charge is extend to total increased limit of Rs.350.000 Millions. This Agreement shall be supplemental to the principal Composite agreement of hypothecation of goods, book-debts, machinery, vehicles, spares and all types of movables dated 11.2.2002, 14.6.2005, 21.6.2007 and 17.10.2008

FIXED ASSETS:

• Freehold Land
• Plant and Machinery
• Vehicles
• Building
• Furniture and Fixture
• Office Equipments and Others
• Computer Software

AS PER WEBSITE DETAILS

COMPANY

Subject in the Indian state of Maharashtra, in the town of Kolhapur, equipped with highly modern plants for dyeing the yarn, warping, sizing, and weaving with 221 looms; will provide work for 750 employees in a covered area of 20,000 square meters; the production of 10 million meters of shirt material per year is intended principally for the markets of primary interest for the mother company and can support the demand for fabrics from the far-east markets.

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.56.42
UK Pound	1	Rs.87.37
Euro	1	Rs.69.95

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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		45

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.