MIRA INFORM REPORT

Report Date :

21.06.2012

IDENTIFICATION DETAILS

Name :	FANCY FITTINGS LIMITED
Formerly Known As :	FANCY FITTINGS PRIVATE LIMITED
Registered Office :	145/259, Minerva Industrial Estate, Sewri Sunder Road, Sewri (East), Mumbai – 400015, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.01.1993
Com. Reg. No.:	11-070323
Capital Investment / Paid-up Capital :	Rs.16.290 Millions
CIN No.: [Company Identification No.]	L74999MH1993PLC070323
TAN No.: [Tax Deduction & Collection Account No.]	MUMF01265F
PAN No.: [Permanent Account No.]	AAACF0537G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Plastic Fasteners and Buckles for the Automobile, Home Appliances, Travel and Sportswear, Garment and Footwear Industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 Office :	145/259, Minerva Industrial Estate, Sewri Sunder Road, Sewri (East), Mumbai – 400015, Maharashtra, India
Tel. No.:	91-22-61389900
Fax No.:	91-22-24143288
E-Mail :	fancy@ffltd.com info@ffltd.com
Website :	http://www.fancyfittings.com
Factory 1:	Unit I: Plot No. D1-D2  Survey No. 55/2-A, Ringanwada Behind Daman Fire Force Station  Nani Daman (U.T.) 396210, India
Factory 2:	Unit III: Plot No. 55/3, 55/3A, 55/3B, 55/4,  Survey No. 55/2-A Ringanwada Behind Daman Fire Force Station Nani Daman (U.T.) 396210, India
Factory 2:	Plot No. 97, 98, 99 and 100, Surat Special Economic Zone, Diamond Park, G.I.D.C, Sachin, Surat - 394 230, Gujarat India
Branch Offices :	Located at: Fittings Division · Mumbai · Delhi Hanger Division · Mumbai · Delhi · Bangalore · Tirupur

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Jayant Navinchandra Parekh

Designation :

Chairman Cum Managing Director

Address :

Fortune Building, 3rd Floor, Plot No. 568, Lady Jahangir Road, Matunga (East), Mumbai – 400019, Maharashtra, India

Date of Birth/Age :

18.10.1961

Date of Appointment :

06.01.1993

DIN No.:

00095406

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	L74999MH1993PLC070323	FANCY FITTINGS LIMITED	Managing director	1/10/2009	6/1/1993	Active	NO
2	U25209MH1993PTC070322	APEKSHA PLASTIC PRODUCTS PRIVATE LIMITED	Director	18/09/2003	18/09/2003	Active	NO
3	U45200MH2004PTC147007	PROMINENT REALTY PRIVATE LIMITED	Additional director	26/07/2007	26/07/2007	Active	NO

Name :

Mrs. Nishita Kirit Shah

Designation :

Whole-time Director

Address :

67/69, Perin Nariman Street, Bhagwan Bhuvan, 4th Floor, Fort, Mumbai – 400001, Maharashtra, India

Date of Birth/Age :

17.08.1964

Date of Appointment :

22.05.2006

DIN No.:

00095423

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	L74999MH1993PLC070323	FANCY FITTINGS LIMITED	Whole-time director	1/10/2011	22/05/2006	Active	NO

Name :

Mr. Anup Kumud Shah

Designation :

Director

Address :

1-8-215/4, Prenderghast Road, Secunderabad – 500003, India

Date of Birth/Age :

09.09.1960

Date of Appointment :

28.06.2001

DIN No.:

00095450

Name :

Mr. Nimesh Kishore Sheth

Designation :

Director

Address :

26/82, Stambh Tirth, Rafi Ahmed Kidwai Road, Wadala, Mumbai- 400031, Maharashtra, India

Date of Birth/Age :

11.02.1969

Date of Appointment :

28.06.2008

DIN No.:

00772973

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	U27200MH1997PTC111034	LOCKSMITHS INDUSTRIES PRIVATE LIMITED	Director	3/10/1997	3/10/1997	-	Active	NO
2	U51900MH2000PTC125243	SEJISHA (INDIA) PRIVATE LIMITED	Director	24/03/2000	24/03/2000	-	Active	NO
3	U72900MH2005PTC155947	XS HEALTHCARE PRIVATE LIMITED	Director	19/09/2005	19/09/2005	6/10/2007	Dormant	NO
4	U45200MH2004PTC147007	PROMINENT REALTY PRIVATE LIMITED	Additional director	26/07/2007	26/07/2007	-	Active	NO
5	L74999MH1993PLC070323	FANCY FITTINGS LIMITED	Director	26/09/2008	28/06/2008	-	Active	NO
6	U67120MH1997PTC110829	OMKAR CAPITAL AND FINANCE COMPANY PRIVATE LIMITED	Director	17/09/2009	17/09/2009	-	Active	NO
7	U36103MH2010PTC206178	KORDIAL MODULAR SYSTEMS PRIVATE LIMITED	Director	1/8/2010	1/8/2010	15/11/2011	Active	NO

Name :

Mr. Piyush Chandrasinh Sampat

Designation :

Director

Address :

402, Jeevan Bharat Society, Plot No. 487, 17th Road, Khar (West), Mumbai-400052, Maharashtra, India

Date of Birth/Age :

02.12.1961

Date of Appointment :

28.06.2008

DIN No.:

01613411

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	U51494MH2007PTC173649	SWARNAMANGAL TRADING COMPANY SYNFAB PRIVATE LIMITED	Director	30/08/2007	30/08/2007	Active	NO
2	L74999MH1993PLC070323	FANCY FITTINGS LIMITED	Director	26/09/2008	28/06/2008	Active	NO

Name :

M. Nishit Mohanlal Dhruva

Designation :

Director

Address :

Dariya Mahal, A Wing, 1st Floor, 80, Napean Sea Road, Mumbai- 400006, Maharashtra, India

Date of Birth/Age :

17.08.1964

Date of Appointment :

28.06.2008

DIN No.:

01641751

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	U67190MH2004PTC146986	MARKRISE CONSULTANTS PRIVATE LIMITED	Director	16/06/2004	16/06/2004	5/1/2009	Active	YES
2	U45200MH2004PTC147007	PROMINENT REALTY PRIVATE LIMITED	Director	17/06/2004	17/06/2004	28/09/2007	Active	NO
3	U24239AP2004PTC042894	ZENARA PHARMA PRIVATE LIMITED	Additional director	6/12/2007	6/12/2007	18/10/2010	Active	NO
4	U67190MH2007PTC172390	ABP REALTY ADVISORS PRIVATE LIMITED	Director	22/12/2008	26/12/2007	15/10/2009	Active	NO
5	L74999MH1993PLC070323	FANCY FITTINGS LIMITED	Director	26/09/2008	28/06/2008	-	Active	NO
6	U45200MH2005PLC158515	BENEFICENT KNOWLEDGE PARKS AND PROPERTIES LIMITED	Director	30/09/2010	16/02/2010	31/01/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Jayant Navinchandra Parekh	584900
Rupam Jayant Parekh	12400
N H Securities Limited, India	274000
Mamta Ketan Parekh	2000
Ami Kartik Parekh	2000
Vinodini Navinchandra	2000
Indumati Vinaychandra	2000
Pramoda Kiritkumar Parekh	2000
Rajani Mahendra Shah	2000
Jyoti Dinesh Parekh	2000
Alpa Hemant Thacker	1000
Amit Dhanki	200
Ancel Crasta	200
Bimal jasvantilal Par	1400
Deven Kantilal Sang	1000
Harshad Rai R Damani	1000
Jayesh K. Sheth	1000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	23.38
Directors or relatives of directors	55.79
Other top fifty shareholders	16.10
Others	4.73
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Plastic Fasteners and Buckles for the Automobile, Home Appliances, Travel and Sportswear, Garment and Footwear Industries.
Product	Product Description	ITC No
	Plastic Fastners, Buckles, Hooks And Locks of Handbags, Soft Luggage, Suitcases, Plastic Hangers, Etc	392640.09

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

Backbay Reclamation Branch, Raheja Chambers, Ground Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	1.485	7.922
Working capital loans banks secured	178.798	77.766
Loans taken for vehicles secured	2.525	0.368
Loans taken for other fixed assets secured	61.094	53.024
Total	243.902	139.080
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans others unsecured	0.421	0.246
Loans directors unsecured	8.000	8.000
Total	8.421	8.246

Banking Relations :	--
Auditors :
Name :	N B Parekh and Associates Chartered Accountants
Address :	A-16, Arihant Owners Colony Vidyavihar-East Mumbai – 400077, Maharashtra, India
PAN No.:	AAJPP9063H
Other Related Parties :	· Zipper (India) Private Limited · Apeksha Plastic Products Private Limited · Fancy Fittings Pty. Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1998000	Equity Share	Rs.10/- each	Rs.19.980 Millions
2000	Preference Shares	Rs.10/- each	Rs.0.020 Million
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1629000	Equity Share	Rs.10/- each	Rs.16.290 Millions

NOTE:

Out of the above 60 lakhs paid up capital were issued as fully paid bonus shares by capitalisation of revaluation reserve

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		16.290	16.290	16.290
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		274.047	255.158	225.148
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		290.337	271.448	241.438
LOAN FUNDS
1] Secured Loans		243.902	139.080	96.424
2] Unsecured Loans		8.421	8.246	0.268
TOTAL BORROWING		252.323	147.326	96.692
DEFERRED TAX LIABILITIES		22.313	21.410	20.083
TOTAL		564.973	440.184	358.213
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		265.049	227.309	208.825
Capital work-in-progress		4.798	16.763	1.277
INVESTMENT		10.630	10.530	11.449
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	211.577	150.393	93.579
	Sundry Debtors	107.331	108.499	78.451
	Cash & Bank Balances	33.117	28.862	20.766
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	95.342	75.902	44.810
Total Current Assets		447.367	363.656	237.606
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	131.270	150.782	80.923
	Other Current Liabilities	22.902	18.507	11.776
	Provisions	8.699	8.899	8.359
Total Current Liabilities		162.871	178.188	101.058
Net Current Assets		284.496	185.468	136.548
MISCELLANEOUS EXPENSES		0.000	0.114	0.114
TOTAL		564.973	440.184	358.213

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	665.732	509.114	450.617
		Other Income	1.919	0.989	1.266
		TOTAL (A)	667.651	510.103	451.883
Less	EXPENSES
		Consumption Materials Changed Inventories	407.490	281.395
		Manufacturing Service costs	75.991	61.171
		Employee Related Expenses	55.104	37.820	382.188
		Administrative, Selling and Other Expenses	50.060	48.569
		TOTAL (B)	588.645	428.955	382.188
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		79.006	81.148	69.695
Less	FINANCIAL EXPENSES (D)		26.045	18.178	16.552
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.961	62.970	53.143
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.471	22.521	20.329
	PROFIT BEFORE TAX (E-F) (G)		28.490	40.449	32.814
Less	TAX (H)		3.902	4.740	4.258
	PROFIT AFTER TAX (G-H) (I)		24.588	35.709	28.556
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		212.975	186.557	166.626
Less	APPROPRIATIONS
		Transfer to General Reserve	2.460	3.592	2.907
		Proposed Dividend	4.887	4.887	4.887
		Tax on Dividend	0.812	0.812	0.831
	BALANCE CARRIED TO THE B/S		229.404	212.975	186.557
	EARNINGS IN FOREIGN CURRENCY		284.896	198.609	182.237
	IMPORTS
		Raw Materials	NA	99.392	50.870
		Stores & Spares	NA	0.000	0.000
		Capital Goods	NA	1.493	0.000
	TOTAL IMPORTS		NA	100.885	50.87
	Earnings Per Share (Rs.)		15.09	21.92	17.53

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.68	7.00	6.32
Net Profit Margin (PBT/Sales)	(%)	4.28	7.94	7.28
Return on Total Assets (PBT/Total Assets}	(%)	3.99	6.84	7.35
Return on Investment (ROI) (PBT/Networth)		0.10	0.15	0.14
Debt Equity Ratio (Total Liability/Networth)		1.43	1.20	0.82
Current Ratio (Current Asset/Current Liability)		2.75	2.04	2.35

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

OPERATIONS

The Company achieved total Turnover of Rs. 664.732 Millions during the year as against total Turnover of Rs. 508.114 Millions during the previous year, which represents increase of about 30.82%. Export Turnover during the year is Rs. 284.896 Millions as against Export Turnover of Rs. 198.609 Millions during the previous year, which represents increase of about 43.44%. Profit after tax during the year was Rs. 24.588 Millions Lac as against Rs. 35.709 Millions during the previous year, which is mainly due to increase on account of raw material cost, interest and salaries and wages.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW

The Plastic Industry is growing at a fast pace. During the year, the industry faced problem of uncertain market conditions due to steep fluctuations in prices of raw materials because of crude oil prices and emergence of unorganised market players. However, despite of all these constraints, the Indian Plastic Industry is growing. The Industry is providing immense scope and vast opportunities in terms of wide varieties of plastic goods and the management anticipates better future of Plastic Industry in the domestic as well as international market in the coming years.

OUTLOOK

The Company's continuous focus on customer satisfaction is generating more and more business for the Company. The Company is expecting to achieve turnover of more than Rs.750.000 Millions during the year 2011-12. The Company is also exploring opportunities to tap new markets.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE ACCOUNTS

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Counter Guarantees given to the bank	1.650	1.650	1.650

FORM 8:

Corporate identity number of the company	L74999MH1993PLC070323
Name of the company	FANCY FITTINGS LIMITED
Address of the registered office or of the principal place of business in India of the company	145/259 Minerva Industrial Estate, Sewri Bunder Road, Sewri (East), Mumbai – 400015, Maharashtra, India fancy@ffltd.com
This form is for	Modification of charge
Charge identification number of the modified	90350300
Type of charge	Immovable Property
Particular of charge holder	State Bank of India’ Backbay Reclamation Branch, Raheja Chambers, Ground Floor, Nariman Point, Mumbai – 400021, Maharashtra, India kamalax_saraf@hotmail.com
Nature of description of the instrument creating or modifying the charge	No instrument. memorandum of entry (recording extension of equitable mortgage by giving oral assent for constructive delivery of title deeds already deposited with SBI)
Date of instrument Creating the charge	28.11.2011
Amount secured by the charge	Rs.367.100 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest As per sanction terms Terms of Repayment As per sanction terms Margin As per sanction terms Extent and Operation of the charge As per sanction terms
Short particulars of the property charged	All present and future goods, book debts and all other movable assets of the borrower including documents of title to goods and other assets, such as book-debts outstanding moneys, receivables, including receivables by way of cash assistance and/or cash incentives under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/ excise duties under the duty drawback credit scheme, or any other scheme bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights and the present and future machineries belonging to or under the control of the company, wherever lying stored and kept whether in India or elsewhere including such goods and other movable assets in course of transit/ shipment/ delivery.
Date of latest modification prior to the present modification	07.10.2011
Particulars of the present modification	Now Present Modification.dt.28.11.2011 a Memo. of entry was executed by SBI, SBI acting as the agent of HDFC Bank and stated that the said oral assent was given with an intent to create further security on the Immovable Property by way of constructive delivery for Extn. of E.M. as and by way of 1st pari passu charge to secure SBI limits from Rs. 314.300 Millions to Rs. 328.000 Millions and HDFC Bank limits of Rs.39.100 Millions Totalling to Rs.367.100 Millions

FIXED ASSETS:

· Leasehold Land

· Freehold Land

· Bangalore Property

· Building

· Plant and Machinery

· Dies and Moulds

· Furniture and Fixture

· Vehicles

· Trade Mark

AS PER WEBSITE DETAILS

Company Profile

Fancy Fittings has moulded the choice of the discerning consumer across the globe while carving a niche for itself in the moulded plastic industry. In the year 1995, it evolved from a private limited company to a public limited company, under the guidance of the dynamic duo Jayant Parekh and late Kirit Shah, with a turnover of over 9.20 million USD Fancy Fittings has three manufacturing units located at Daman, a union territory of India.

A dedicated work force of qualified professionals, state-of-the art machinery and advanced technology assist in transcending the limits of visualization. Their impressive range of products and a customer base of more than 200 satisfied brands are a testimony to it. Quality is the fulcrum which reiterates the company ethos of maintaining high international standards. Fancy Fittings has emerged to be a synonym for dependability.

In the present age, where time is a premium, they meet deadlines without compromising on quality.

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.55.85
UK Pound	1	Rs.87.93
Euro	1	Rs.70.88

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.