MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	REID AND TAYLOR (INDIA) LIMITED
Registered Office :	Marathon Innova IT Park, B2/501 and C – 501, 5^th Floor, Off. G. K. Marg, Lower Parel (West), Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.04.2000
Com. Reg. No.:	11-126018
Capital Investment / Paid-up Capital :	Rs.1345.975 Millions
CIN No.: [Company Identification No.]	U17114MH2000PLC126018
TAN No.: [Tax Deduction & Collection Account No.]	MUMR13430E
PAN No.: [Permanent Account No.]	AACCR2067H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in Manufacturing (In house and outsourced) Fabrics, Ready to Wear Garments and Home Textiles.
No. of Employees :	1250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 62230000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well reputed and established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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.

INFORMATION PARTED BY

Name :	Mr. Sandeep
Designation :	Finance Manager
Contact No.:	91-22-28250797
Date :	03.03.2012

LOCATIONS

Registered Office :	Marathon Innova IT Park, B2/501 and C – 501, 5^th Floor, Off. G. K. Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-28250797
Fax No.:	91-22-24931685
E-Mail :	nihar.avasare@sknl.co.in info@sknl.co.in sandeep.sharma@sknl.co.in
Website :	http://www.bondwithbest.com http://www.sknl.co.in
Location :	Owned
Factory :	Worsted Fabric Complex, Thandavpura, Nanjangud Taluka, Mysore District, Karnataka, India

DIRECTORS

(AS ON 11.08.2011)

Name :	Mr. Nitin Shambhukumar Kasliwal
Designation :	Chairman and Managing Director
Address :	Flat No.1, Kanta, Little Gibbs Road, Malbar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	22.11.1960
Date of Appointment :	19.05.2008
DIN :	00022630
Name :	Mr. Nasser Mukhtar Munjee
Designation :	Director
Address :	Benedict Villa, House No. 471, Saud Vaddo, Chorao Island, Tiswadi 403102, Goa
Date of Birth/Age :	18.11.1952
Date of Appointment :	04.07.2011
DIN :	00010180
Name :	Mr. Amritlal Shah Chunilal
Designation :	Director
Address :	C -1/2, Liyods Garden, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400005, Maharashtra, India
Date of Birth/Age :	16.10.1932
Date of Appointment :	27.09.2010
DIN :	00022612
Name :	Mr. Kunnasagaran Chinniah
Designation :	Director
Address :	12, Country Grove, Singapore – 789967, Singapore
Date of Birth/Age :	10.05.1957
Date of Appointment :	27.09.2010
DIN :	01590108
Name :	Mr. Dara Phirozeshaw Mehta
Designation :	Director
Address :	4^th Floor, South Lands, 177, Colaba Road, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	13.07.1933
Date of Appointment :	14.12.2009
DIN :	00041164
Name :	Mr. Pradeep Panalal Shahi
Designation :	Additional Director
Address :	72A Embassy Apartments, 7^th Floor, Napean Sea Road, Mumbai – 400006, Maharashtra
Date of Birth/Age :	07.01.1953
Date of Appointment :	30.07.2010
DIN :	00066242
Name :	Mr. Anil Kumar Channa
Designation :	Director
Address :	71, Sagar Tarang CHS., 15, K. Abdul Gafur Khan Road, Worli, Mumbai – 400018, Maharashtra
Date of Birth/Age :	01.09.1948
Date of Appointment :	25.08.2008
DIN :	01359682
Name :	Mr. Venkat Subramanian Chandrasekharan Tirumangalakudi
Designation :	Director
Address :	10, 3rd Floor, Devayan Apartment, 17, Rue Pappammal Koil, Ganesh Nagar, Pondicherry – 605003, India
Date of Birth/Age :	30.10.1949
Date of Appointment :	04.07.2011
DIN :	00040526

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Finance Manager
Name :	Mr. Nihar Ravindra Avasare
Designation :	Secretary
Address :	2B/204, Umiyanagar CHS Limited, Off Aarey Road, Near Udipi Vihar Hotel, Goregaon (East), Mumbai -400063, Maharashtra
Date of Birth/Age :	23.06.1980
Date of Appointment :	15.02.2008
PAN No.:	AHYPA2263Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 11.08.2011)

Names of Shareholders	No. of Shares
S. Kumar Nationwide Limited Jointly with Shri L.N. Somani	1
S. Kumar Nationwide Limited Jointly with Shri Nimesh S. Shah	1
S. Kumar Nationwide Limited Jointly with Shri Ramesh Laddha	1
S. Kumar Nationwide Limited Jointly with Shri Naresh Maheshwari	1
S. Kumar Nationwide Limited Jointly with Shri J.S. Shetty	1
S. Kumar Nationwide Limited, India	100124994
S. Kumar Nationwide Limited Jointly with Shri Ganesh Pai	1
Indivest Pte Limited, Singapore	34472453
Total	134597453

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	25.61
Bodies corporate	74.39
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in Manufacturing (In house and outsourced) Fabrics, Ready to Wear Garments and Home Textiles.

Products :

Product Description	ITC Code
Blended Fabrics	5515
Blended Yarn	5509
Worsted Yarn	5111

Exports :

Products :

· Reid and Taylor Worsted Suiting

· Premium Natural Fiber Suiting

Countries :

· Japan

· Sri Lanka

Imports :

Products :

Raw Materials

Countries :

· Australia

· Sri Lanka

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Fabrics	Mtrs	330.62
Readymade Garments	Pcs	43.11

Licensed Capacity: Not Applicable

Installed capacity# i) Spinning: 12960 Spindles

ii) Weaving : 103 lac mtrs p.a

# (As certified by the Management, being a technical matter)

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Shoppers Stop

No. of Employees :

1250 (Approximately)

Bankers :

· Bank of India,

Bullion Exchange Branch, Mumbai – 400002, Maharashtra, India

· Indian Bank

No.1, Sane Guruji Premises, 386 Veer Savarkar Marg, Opposite Siddhi Vinayak Temple, Mumbai – 400025, Maharashtra, India

· UCO Bank

Flagship Corporate Branch, 1st Floor, Mafatlal Centre, Nariman Point, Mumbai – 400021, Maharashtra, India

· IDBI Bank Limited

· State Bank of India

· Export Import Bank of India

· The Jammu and Kashmir Bank Limited

· State Bank of Indore

· Punjab National Bank

· Indian Overseas Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	658.850	757.380
Working capital loans banks secured	6161.960	3477.574
Loans taken for other fixed assets secured	1.766	4.327
Total	6822.576	4239.281
NOTE: Rupee Term loans from banks are secured by way of parri passu first charge on the Fixed assets and second charge on the current assets of the company. Rupee Term loans have been guaranteed by Managing Director of the Company. Working Capital Advances include interest accrued and due Rs. 70.786 Millions Working capital advances from Banks are secured by hypothecation of Company's inventories and book-debts, present and future and by a second pari passu charge on all fixed assets of the company both present and future. Working Capital advances have been guaranteed by Managing Director of the Company. Equipment Finance Loans from Banks are secured by hypothecation of specific equipment / assets.

Banking Relations :	--
Financial Institution :	· IFCI Limited IFCI Tower, 61 Nehru Place, New Delhi – 110019, India
Auditors :
Name :	Haribhakti and Company Chartered Accountant
Address :	42, Free Press House, 4^th Floor, 215, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN No.:	AAAFH2010F
Parent/ Holding Company :	S. Kumars Nationwide Limited CIN No. : L17120MH1990PLC058361
Wholly Owned Subsidiary :	· SKNL International B.V. · SKNL Europe B.V. · SKNL Italy S.p.A. · SKNL Global Holdings B.V. · SKNL North America B.V. · Leggiuno S.p.A.. · Global Apparel (US) Limited · Global Apparel (France) Limited · Global Apparel (Hong Kong) Limited · 7172931 Canada Limited · Coppley Corp · HMX Poland sp. Z.o.o · HMX Acquisition Corp. · HMX Des Plaines LLC · Quartet Real Estate LLC. · HMX LLC · HMX, DTC Company
Subsidiary :	· SKNL (U. K.) Limited · Marling and Evans Limited · Remala Trading B.V.
Enterprises over which Key Managerial Personnel are able to exercise significant influence :	· Brandhouse Retails Limited · Brandhouse Oviesse Limited · S, Kumars Enterprises (Synfabs) Limited · S.Kumars Textiles Limited · Belmonte Retails Limited · N’Essence Holdings Limited · Anjaneya Holdings Private Limited (Formerly Anjani Finvest Private Limited) · Rosewood Holdings Private Limited · Verve Properties and Investment Private Limited · Ingenious Finance and Investment Private Limited · Natty Finance and Investment Private Limited · S. K. Worsteds Private Limited · Tulja Enterprises Private Limited · Sansar Exim Private Limited · Chamundeshwari Mercantile Private Limited · Maverick Mercantile Private Limited · Anjaneya Foundation · SKNL Foundation

CAPITAL STRUCTURE

AS ON 11.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/-each	Rs.1600.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134597453	Equity Shares	Rs.10/-each	Rs.1345.975 Million

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/-each	Rs.1500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134597500	Equity Shares	Rs.10/-each	Rs.1345.975 Million

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		1345.975	538.389	520.347
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14211.726	12594.012	9482.665
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15557.701	13132.401	10003.012
LOAN FUNDS
1] Secured Loans		6822.576	4239.281	2221.234
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6822.576	4239.281	2221.234
DEFERRED TAX LIABILITIES		17.331	15.251	0.000
TOTAL		22397.608	17386.933	12224.246
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		971.624	849.956	908.758
Capital work-in-progress		2846.533	2186.648	586.314
INVESTMENT		0.010	0.010	0.010
DEFERREX TAX ASSETS		0.000	0.000	1.099
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3565.174	2848.030	1584.853
	Sundry Debtors	5575.109	4864.618	2927.969
	Cash & Bank Balances	487.383	701.303	600.619
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11782.617	7940.237	6833.815
Total Current Assets		21410.283	16354.188	11947.256
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1041.443	572.992	552.428
	Other Current Liabilities	77.309	48.628	42.718
	Provisions	1712.090	1382.249	624.045
Total Current Liabilities		2830.842	2003.869	1219.191
Net Current Assets		18579.441	14350.319	10728.065
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		22397.608	17386.933	12224.246

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	12516.542	9849.378	6526.034
		Other Income	440.358	562.849	388.568
		TOTAL (A)	12956.900	10412.227	6914.602
Less	EXPENSES
		Consumption Materials Changes Inventories	6115.984	4969.511
		Manufacturing Services Costs	674.344	470.730
		Employee Related Expenses	419.994	321.267	4342.814
		Administrative, Selling and Other Expenses	1107.762	844.547
		Restructuring Charges	21.976	21.976
		TOTAL (B)	8340.060	6628.031	4342.814
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4616.840	3784.196	2571.788
Less	FINANCIAL EXPENSES (D)		784.432	514.425	271.202
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3832.408	3269.771	2300.586
Less/ Add	DEPRECIATION/ AMORTISATION (F)		107.418	85.602	158.540
	PROFIT BEFORE TAX (E-F) (G)		3724.990	3184.169	2142.046
Less	TAX (H)		1299.692	1154.785	704.326
	PROFIT AFTER TAX (G-H) (I)		2425.298	2029.384	1437.720
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3741.748	1712.364	274.644
	BALANCE CARRIED TO THE B/S		6167.046	3741.748	1712.364
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	424.731	290.716	197.964
	TOTAL EARNINGS		424.731	290.716	197.964
	IMPORTS
		Raw Materials	206.868	206.722	94.204
		Stores & Spares	14.881	12.229	12.437
		Capital Goods	72.513	19.490	32.542
		Finished Goods	56.851	65.941	92.554
	TOTAL IMPORTS		351.113	304.382	231.737
	Earnings Per Share (Rs.)
	- Basic		18.02	15.51	31.04
	- Diulted		18.02	15.51	30.84

Expected Sales (2011-12): Rs.16000.000 Millions

The above information has been parted by Mr. Sandeep

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.72	19.49	20.79
Net Profit Margin (PBT/Sales)	(%)	29.76	32.33	32.82
Return on Total Assets (PBT/Total Assets}	(%)	16.64	18.51	16.66
Return on Investment (ROI) (PBT/Networth)		0.24	0.24	0.21
Debt Equity Ratio (Total Liability/Networth)		0.62	0.48	0.34
Current Ratio (Current Asset/Current Liability)		7.56	8.16	9.80

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors due small micro enterprises	6.047	6.467	9.685
- Creditors due Others	1035.396	566.525	542.743
Total	1041.443	572.992	552.428

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last one years	Yes
Profitability for last three years	-----
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

TRADE REFERENCE:

· Shoppers Stop

Year in Retrospect:

In FY 2011, the turnover increased smartly by 27% and Net Profit by 19%. During the year, the company has expanded weaving capacities which helped improve overall operations. The growth in performance was possible due to the string brand image of ‘Reid and Taylor’ and extensive marketing and distribution network.

Current Business Outlook and Plan:

The Company manufactures Reid and Taylor Worsted Suiting and Premium natural fiber suiting. The Company also markets premium Ready-to-Wear Garments under the brand ''Reid and Taylor'' and ''Stephens Brothers''.

Share Capital:

During the year, the Company has allotted 8,07,58,472 Nos. of Equity Shares of Rs.10/- each on 10thSeptember 2010, as fully paid bonus shares to the holders of the existing Equity Shares of the Company, in proportion of 3 (three) Nos. of Equity Share of Rs.10/- each for every 2 (two) existing fully paid up Equity Share held by the them.

Shifting of Registered Office of the Company:

The Registered Office of the Company have been shifted from ‘Avadh’, Shree Ram Mills Premise, G.K. Marg, Worli, Mumbai – 400 018 to B2, 5thFloor, Marathon NextGen, Lower Parel (West), Mumbai – 400 013 with effect from 27-09-2010.

CONTINGENT LIABILITIES:

a) Guarantees:

Particulars	31.03.2011	31.03.2010
	Rs. In Millions
Corporate Guarantees given to the lenders of S. Kumar Nationwide Limited	2750.000	2750.000
In respect of Custom duty availed under EPCG Scheme (Covered by bank Guarantee and Company Bond)	64.784	Nil

b) Claims not acknowledges as debts:

Particulars	31.03.2011	31.03.2010	31.03.2009
	Rs. In Millions
Entry tax liability – disputed	22.299	Nil	54.574
Disputed matters in respect of ESIC	Nil	Nil	0.041
Service tax on export agency commission – disputed	0.094	0.094	0.094
Excise duty on two to top conversion – disputed	43.680	6.821	6.851
Customs CVD duty - disputed	2.116	2.116	2.116

Bankers Charges Report as per Registry

Corporate identity number of the company	U17114MH2000PLC126018
Name of the company	REID & TAYLOR (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Marathon Innova It Park, B2/501 and C-501, 5^th Floor, Off G.K. Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India nihar.avasare@sknl.co.in
This form is for	Creation of Charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	UCO Bank Flagship Corporate Branch, 1st Floor, Mafatlal Centre, Nariman Point, Mumbai – 400021, Maharashtra, India chanchal.uco@gmail.com
Nature of instrument creating charge	Deed of Hypothecation dated 24th December 2011
Date of instrument Creating the charge	24/12/2011
Amount secured by the charge	Rs.1000.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest – Base Rate + 2.50% i.e 13.25% p.a. Terms of Repayment – Total 20 quarterly installments shall be payable in arrears on the last day of each quarter commencing from December 2012. Margin – 25% of the project cost. Extent and Operation of the charge – To secure the repayment of Term Loan of Rs.1000.000 Millions. Deed of Hypothecation dated December 24, 2011.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A subservient charge on all fixed assets of the Company of whatsoever nature and wherever situated (other than Land and Buildings).

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Office Equipments

· Computers

· Furniture and Fixtures

· Vehicles

· System Development

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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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.