MIRA INFORM REPORT

Report Date :

06.06.2012

IDENTIFICATION DETAILS

Name :	EVEREADY SPINNING MILLS PRIVATE LIMITED (w.e.f. 24.11.2011)

Formerly Known As :	MANI SPINNING MILLS PRIVATE LIMITED (w.e.f. 03.04.2008) FISHER SPINNING MILL INDIA PRIVATE LIMITED

Registered Office :	12, Jothi Theatre Road, Tirupur, Coimbatore District – 641 601, Tamilnadu

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	01.07.2005

Com. Reg. No.:	18-011949

Capital Investment / Paid-up Capital :	Rs.216.000 millions

CIN No.: [Company Identification No.]	U17111TZ2005PTC011949

PAN No.: [Permanent Account No.]	AAACF9159Q

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of Cotton Yarn.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 4589000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. The company has been successful in wiping off the accumulated looses of previous years. Financial position of the company appears to be good. 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. Note: Eveready Spinning Mills Private Limited amalgamated with Mani Spinning Mills Private Limited w.e.f. 3^rd November, 2011. The name of the amalgamated company has been changed as Eveready Spinning Mills Private Limited w.e.f. 24.11.2011.

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

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

LOCATIONS

Registered Office/ Corporate Office :	12, Jothi Theatre Road, Tirupur, Coimbatore District – 641 601, Tamilnadu, India
Tel. No.:	91-421-2201388, 2201488, 2201688
Fax No.:	91-421-2232688
E-Mail :	accounts@evereadygroups.com
Website :	http://evereadygroups.com

Mills :	Kottaiyur, Thadicombu - 624 709, Dindigul, Tamilnadu, India
Tel. No.:	91-4551-260372
Fax No.:	91-4551-260053
E-Mail :	evereadymills@touchtelindia.net

DIRECTORS

As on 07.12.2011

Name :

Appayapalayam Subramaniam Ramaswamy

Designation :

Managing Director

Address :

Old No.23, New No.12, Kannapiran Colony, B.S. Sundaram Road, Tirupur – 641601, Tamilnadu, India

Date of Birth/Age :

12.09.1949

Qualification :

Matriculation

Experience :

26 Years

Date of Appointment :

01.07.2005

DIN No.:

00023662

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ1988PTC002248	Eveready Spinning Mills Private Limited	Managing director	01-09-88	01-09-88	Amalgamated	NO
2	U17111TZ1993PTC004363	Mani Spinning Mills Private Limited	Managing director	26-04-93	26-04-93	Amalgamated	NO
3	U17111TZ2005PTC011949	Eveready Spinning Mills Private Limited	Managing director	01-07-05	01-07-05	Active	NO
4	U51909TZ2006PTC012921	Eveready Exports India Private Limited	Director	12-07-06	12-07-06	Active	NO
5	U17111TZ2012PTC017768	Mani Spinning Mills Private Limited	Managing director	10-01-12	10-01-12	Active	NO
6	U40100TZ2012PTC018320	Saravana Wind Farm Private Limited	Director	01-06-12	01-06-12	Active	NO

Name :

Subramaniam Thilagavathy

Designation :

Director

Address :

Old No.23, New No.12, Kannapiran Colony, B.S. Sundaram Road, Tirupur – 641601, Tamilnadu, India

Date of Birth/Age :

19.02.1956

Date of Appointment :

01.07.2005

DIN No.:

00023680

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ1988PTC002248	Eveready Spinning Mills Private Limited	Director	01-09-88	01-09-88	Amalgamated	NO
2	U17111TZ1993PTC004363	Mani Spinning Mills Private Limited	Director	26-04-93	26-04-93	Amalgamated	NO
3	U17111TZ2005PTC011949	Eveready Spinning Mills Private Limited	Director	01-07-05	01-07-05	Active	NO
4	U51909TZ2006PTC012921	Eveready Exports India Private Limited	Director	12-07-06	12-07-06	Active	NO
5	U17111TZ2012PTC017768	Mani Spinning Mills Private Limited	Director	10-01-12	10-01-12	Active	NO
6	U40108TZ2012PTC018312	Mani Cotton Textiles Wind Farm Private Limited	Managing director	31-05-12	31-05-12	Active	NO

Name :

Subramaniam Chandrakumar

Designation :

Managing Director

Address :

Old No.23, New No.12, Kannapiran Colony, B.S. Sundaram Road, Tirupur – 641601, Tamilnadu, India

Date of Birth/Age :

22.05.1979

Qualification :

B.A. (Corp)

Experience :

12 Years

Date of Appointment :

01.11.2007

DIN No.:

00023699

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ1993PTC004363	Mani Spinning Mills Private Limited	Managing director	26-08-99	26-08-99	Amalgamated	NO
2	U17111TZ1988PTC002248	Eveready Spinning Mills Private Limited	Managing director	26-08-99	26-08-99	Amalgamated	NO
3	U17111TZ2005PTC011949	Eveready Spinning Mills Private Limited	Managing director	01-11-07	01-07-05	Active	NO
4	U51909TZ2006PTC012921	Eveready Exports India Private Limited	Managing director	01-11-07	12-07-06	Active	NO
5	U17111TZ2012PTC017768	Mani Spinning Mills Private Limited	Managing director	10-01-12	10-01-12	Active	NO
6	U40108TZ2012PTC018313	Cheran Textiles Wind Farm Private Limited	Managing director	31-05-12	31-05-12	Active	NO

Name :

Subramaniam Saravanakumar

Designation :

Whole-Time Director

Address :

Old No.23, New No.12, Kannapiran Colony, B.S. Sundaram Road, Tirupur – 641601, Tamilnadu, India

Date of Birth/Age :

26.07.1984

Qualification :

B.B.A

Experience :

9 Years

Date of Appointment :

01.11.2007

DIN No.:

00023703

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17111TZ1993PTC004363	Mani Spinning Mills Private Limited	Director	04-12-02	04-12-02	Amalgamated	NO
2	U17111TZ1988PTC002248	Eveready Spinning Mills Private Limited	Whole-time director	01-11-07	04-12-02	Amalgamated	NO
3	U17111TZ2005PTC011949	Eveready Spinning Mills Private Limited	Whole-time director	01-11-07	01-07-05	Active	NO
4	U51909TZ2006PTC012921	Eveready Exports India Private Limited	Whole-time director	01-11-07	12-07-06	Active	NO
5	U17111TZ2012PTC017768	Mani Spinning Mills Private Limited	Whole-time director	10-01-12	10-01-12	Active	NO
6	U40108TZ2012PTC018313	Cheran Textiles Wind Farm Private Limited	Director	31-05-12	31-05-12	Active	NO
7	U40108TZ2012PTC018312	Mani Cotton Textiles Wind Farm Private Limited	Director	31-05-12	31-05-12	Active	NO
8	U40100TZ2012PTC018320	Saravana Wind Farm Private Limited	Managing director	01-06-12	01-06-12	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.12.2011

Names of Shareholders		No. of Shares
A.R. Subramaniam		6600000
S. Thilagavathy		3000000
S. Chandrakumar		6000000
S. Saravanakumar		6000000
Total		21600000

As on 07.12.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton Yarn.

Products :

Item Code No. (ITC Code)	52071000.00
Product Description	Cotton Yarn

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Unit - I
i) Spindles	Nos.	36,000

Unit - II
i) Spindles	Nos.	33,840
ii) Rotors	Nos.	720

Unit - III
i) Spindles	Nos.	30240
ii) Knitting machine	Nos.	17

Particulars	Unit	Actual Production
Unit - I
- Yarn	Kgs	72,74,034
- Yarn Home Consumption For Knitted Fabric	Kgs	7,61,806
- Knitted Fabric	Kgs	7,59,288
- Waste	Kgs	27,07,072

Unit - II
- Yarn	Kgs	46,94,623
- Yarn Transfer From Unit - I	Kgs	18,000
- OE Yarn	Kgs	18,48,484
- Yarn Home Consumption For Knitted Fabric	Kgs	1,50,050
- Knitted Fabric	Kgs	1,49,834
- Waste	Kgs	17,45,922
- Waste - OE Division	Kgs	8,40,146

Unit - III
- Yarn	Kgs	43,94,053
- Yarn Home Consumption For Knitted Fabric	Kgs	14,03,845
- Knitted Fabric	Kgs	14,03,717
- Waste	Kgs	15,67,657

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of Travancore, Tirupur Branch, 32, R.F. Road, Tirupur – 641 601, Tamilnadu, India

v State Bank of Bikaner and Jaipur, Tirupur

v State Bank of Mysore, Tirupur

v State Bank of Indore, Coimbatore

v State bank of Patiala, Coimbatore

v ICICI Bank Limited, Coimbatore

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	1212.978	867.534
Working capital loans banks secured	1061.811	239.616
Total	2274.789	1107.150

Unsecured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Loans directors unsecured

50.470

30.480

Total

50.470

30.480


Banking Relations :	--

Auditors :
Name :	T.R. Ramanathan Chartered Accountant
Address :	No.343, B.S. Sundaram Road , Tirupur - 641 601, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	ACSPR0567R

CAPITAL STRUCTURE

As on 07.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21600000	Equity Shares	Rs.10/- each	Rs.216.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21600000	Equity Shares	Rs.10/- each	Rs.216.000 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		216.000	168.000	168.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		931.304	0.000	0.000
4] (Accumulated Losses)		0.000	(39.341)	(109.561)
NETWORTH		1147.304	128.659	58.439
LOAN FUNDS
1] Secured Loans		2274.789	1107.150	1128.406
2] Unsecured Loans		50.470	30.480	31.109
TOTAL BORROWING		2325.259	1137.630	1159.515
DEFERRED TAX LIABILITIES		0.000	18.827	39.640

TOTAL		3472.563	1285.116	1257.594

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1898.730	692.092	886.753
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.210	0.105	0.105
DEFERRED TAX ASSETS		2.861	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1088.282	527.404	146.634
	Sundry Debtors	338.752	139.303	119.179
	Cash & Bank Balances	69.688	95.291	21.367
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	408.931	149.284	132.017
Total Current Assets		1905.653	911.282	419.197
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	264.996	298.975	40.079
	Provisions	70.281	19.508	8.623
Total Current Liabilities		335.277	318.483	48.702
Net Current Assets		1570.376	592.799	370.495

MISCELLANEOUS EXPENSES		0.386	0.120	0.241

TOTAL		3472.563	1285.116	1257.594

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3315.903	1554.342	1258.982
		Other Income	NA	16.996	56.757
		TOTAL	NA	1571.338	1315.739

Less	EXPENSES
		Office Expenses	NA	1215.095	1001.636
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	1215.095	1001.636

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		542.193	356.243	314.103

Add/ (Less)	INCOME / (EXPENSES) OF EARLIER YEARS		0.473	0.281	(0.509)

Less	INTEREST		131.910	87.619	107.773

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		410.756	268.905	205.821

Less/ Add	DEPRECIATION/ AMORTISATION		252.562	208.612	270.349

	PROFIT/ (LOSS) BEFORE TAX		158.194	60.293	(64.528)

Less	TAX		41.214	(9.927)	(18.928)

	PROFIT/ (LOSS) AFTER TAX		116.980	70.220	(45.600)

	EARNINGS IN FOREIGN CURRENCY		10.150	4.046	46.652

	IMPORTS
		Spares	15.313	6.457	5.826
		Capital Goods	150.722	0.000	18.714
	TOTAL IMPORTS		166.035	6.457	24.540

	Earnings/ (Loss) Per Share (Rs.)		5.42	4.18	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	4.47	(3.47)

Net Profit Margin (PBT/Sales)	(%)	4.77	3.88	(5.13)

Return on Total Assets (PBT/Total Assets}	(%)	4.16	3.76	(4.94)

Return on Investment (ROI) (PBT/Networth)		0.14	0.47	(1.10)

Debt Equity Ratio (Total Liability/Networth)		2.32	11.32	20.67

Current Ratio (Current Asset/Current Liability)		5.68	2.86	8.61

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	No
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 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	Yes
30) Major Shareholders, if available	Yes

FINANCIAL RESULTS:

During the year, the company has registered a turnover of Rs.3315.903 millions as compared to Rs.1554.342 millions showing an increase of 113.29% over the previous year turnover. The increase in turnover mainly due to increase in the unit rate per kg of yarn, 10% increase in the volume of sales and also the turnover booked by the transferor company due to merger during the year as explained later in this report. The Company earned profit before depreciation, interest and tax or Rs.542.193 millions as against previous year amount of Rs.356.243 millions. Net profit increased to 116.980 millions in the current year from Rs.70.220 millions of previous year.

The Director have immense pleasure to inform that the Company is in the process of establishing one another unit Fourth in its series with 17280 Ring Spindles and 800 OE Rotors. The new project will comprise mainly Imported Rieter machines along with Murata Link coner and is expected to commence its commercial production during the first week of February, 2012.

Pursuant to the scheme of amalgamation of Eveready Spinning Mills Private Limited with Mani Spinning Mills Private Limited as sanctioned by the Hon'ble High Court of Judicature at Chennai on the 3^rd November, 2011, the assets and Liabilities of erstwhile Eveready stand transferred to and vested with Mani Spinning Mills Private Limited with effect from the appointed date i.e., 01.04.2010. The name of the amalgamated Company has been changed as "Eveready Spinning Mills Private Limited" with effect from 24.11.2011.

The Company Installed Elite Compact System for 76320 Spindles this year in addition to the existing 3024 Spindles which results in almost 80% of the total capacity as high value added compact Spindles. During the year the Company also added 10 Wind Mills of 850 KW each totally 8.50 MW capacity to the present 22.45 MW thereby enhancing its total Wind power generation capacity to 30.95 MW to cope up their entire consumption of power even after the new project put to run.

The Directors of the Company are hopeful of giving a satisfactory performance during the ensuing year inspite of the severe general global economic recession which resulted in slow down of export market of yarn, volatility in the Foreign Exchange rates, unstable government policies like sudden ban on cotton yarn export, withdrawal of export benefits, high mounting increased interest rates etc., uncertainty in power supply, pollution related problems and consequential closure of dyeing houses and high value stocks of cotton held at the opening of the year. Due to the above reasons the directors would like to retain the earnings of the year under consideration and hence no recommendation for dividend has been made.

FINANCE:

During the year, the Company availed Fresh Term loan of Rs.182.043 millions for import of Compact Spindles and 2 Nos. Murata Autoconer under TUF scheme and another sum of Rs.278.966 millions towards 10 Wind Turbine Generators. The repayment obligation towards the existing and the new term loans has been met promptly. The Company has judiciously utilised the working capital limits that were sanctioned by the Banks during the year under consideration.

SCHEME OF AMALGAMATION OF EVEREADY SPINNING MILLS (PRIVATE) LIMITED WITH THE COMPANY

(a) Pursuant to the Scheme of Amalgamation of Eveready Spinning Mills (Private) Limited with Mani Spinning Mill India Private Limited, sanctioned by the Honble High Court of Judicature at Madras on the 3^rd Day of November 2011, and on the Scheme become effective, the assets and liabilities of Eveready Spinning Mills (Private) Limited stand transferred to and vested with Mani Spinning Mills (Private) Limited with effect from the appointed date, i.e., 1^st April 2010.

(b) The Scheme of Amalgamation has accordingly been given effect to in these financial Statements.

(c) The core business of Erstwhile Eveready viz., manufacturing of cotton yarn, is the same as that of Mani. Shareholders and Directors of both Erstwhile Eveready and Mani are the same, and there is synergy between these two Companies in the areas of ownership, management and control.

(d) Towards consideration, for each share held in the Transferor Company, the equity shareholders of Erstwhile Eveready has been allotted 48 Lakhs equity shares of the face value of Rs.10/- each, in the merged Transferee Company, and these newly issued shares rank pari passu with the existing equity shares of Transferee.

(e) The Amalgamation has been accounted for as merger using Purchase Method as laid out in AS 14 (Accounting for Amalgamations) issued by the Institute of Chartered Accountants of India. The amalgamation has resulted in transfer of assets, liabilities and reserves of Erstwhile Eveready to Mani in accordance with the terms of the Scheme sanctioned by the Court.

Contingent liabilities are not provided for:

Particulars

31.03.2011

(Rs. in millions)

(a) Fringe Benefit Tax

0.768

(b) Service Tax on Goods Transport Operations

0.000

Bankers Charges Report as per Registry

Corporate identity number of the company	U17111TZ2005PTC011949
Name of the company	MANI SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12, Jothi Theatre Road, Tirupur, Coimbatore District – 641 601, Tamilnadu, India E-Mail: accounts@evereadygroups.com
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	State Bank of Travancore, Tirupur Branch, 32, R.F. Road, Tirupur – 641 601, Tamilnadu, India E-Mail: tirupur@sbt.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of deposits of title deeds on 21^st day of September 2011.
Date of instrument Creating the charge	21.09.2011
Amount secured by the charge	Rs.119.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 4% above SBT base rate. Effectively 12% p.a. (Floating) with reset of interest every 2 year from the date of first disbursement. Terms of Repayment: Repayable in 28 quarterly installments of Rs.4.250 millions each commencing from the 15^th month of first disbursement. Interest charges have to be paid then and there. Margin: 40% Extent and Operation of the charge: The charge operates as security for the due repayment of all monies due from the company including all interest, compound interest, penal interest, costs, charges, expenses and all other moneys due to the said Bank.
Short particulars of the property charged	7.90 acres of Industrial land in Sy.No.154/2, 154/4A, 154/4B, 154/4C, 1019, 1023 and 1078 in Thappakundu and Sankarandampalayam Villages Theni and Dharapuram Taluk, Theni and Tirupur District together with all improvements including the buildings existing and/or to be constructed thereon.

FIXED ASSETS:

v Freehold Land

v Factory Building

v Plant Machinery

v Furniture Fixtures

v Motor Vehicles

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.55.56
UK Pound	1	Rs.85.52
Euro	1	Rs.69.50

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.