MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	BSL LIMITED
Registered Office :	26, Industrial Area, P.B. No. 17, Bhilwara – 311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.10.1970
Com. Reg. No.:	17-002266
Capital Investment/ Paid-up Capital:	Rs. 102.922 Millions
CIN No.: [Company Identification No.]	L24302RJ1970PLC002266
Legal Form :	Public Limited Liability Company. The Company’s Share are Listed on Stock Exchange
Line of Business :	Manufacture of Polyester-Viscose, Polyester-Woollen and 100% Woollen Fabrics, Polyester-Wool Blended and 100% Woollen and Worsted yarn.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (38)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution.

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 :	26, Industrial Area, Gandhi Nagar, Post Box No. 17, Bhilwara – 311001, Rajasthan, India
Tel. No.:	91-1482-246801 / 6
Fax No.:	91-1482-246807 / 246157
E-Mail :	accounts@bslsuitings.com info@bslsuitings.com
Website :	www.bslltd.com
Corporate Office :	Bhilwara Towers, A-12, Sector-1, Noida, NCR, Delhi, India
Tel. No.:	91-120-2541810
E-Mail :	contact@bhilwarainfo.com
Factory 1 :	Mandpam, Bhilwara – 31001, Rajasthan, India
Tel. No.:	91-1482- 249101
Fax No.:	91-1482- 249110
E-Mail :	bslmdp@sancharnet.in
Factory 2 :	Village Gorera, Jaisalmer – 345001, Rajasthan, India
Branches :	Mandawa Shikar, 151, Sharat Bose Road, Kolkata-700026, West Bengal India Ph: 91-33- 24658472 / 475 Fax: 91-33-24658476 Email: bsl@gitapath.com 63, Maker Chamber VI, Nariman Point, Mumbai, Maharashtra, India Ph:91-22-22831712-22836664 Email: bsl@bom5.vsnl.net.in 40-41, Community Centre, New Friends Colony, New Delhi-110065, India Ph: 91-11-26831491/26822997

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Arun Churiwal
Designation :	Chairman and Managing Director
Name :	Mr. Ravi Jhunjhunwala
Designation :	Director
Name :	Mr. Shekhar Agarwal
Designation :	Director
Name :	Mr. Salil Bhandhari
Designation :	Director
Name :	Mr. Sushil Kumar Churiwala
Designation :	Additional Director
Name :	Mr. Susil Jhunjhunwala
Designation :	Director
Name :	Mr. A. N. Choudhary
Designation :	Director
Name :	Mr. Nivedan Churiwal
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Praveen Jain
Designation :	CFO and Company Secretary
Name :	Mr. M.C. Maheshwari
Designation :	Vice President (Export)
Name :	Mr. S. Sen Gupta
Designation :	Vice President (Spinning)
Name :	Mr. V. B. Arora
Designation :	Vice President (Marketing)
Name :	Mr. A. K. Mehta
Designation :	Vice-President (Processing and Silk)
Name :	Mr. Manoj Gupta
Designation :	Vice-President (Weaving)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1115865	10.84
Bodies Corporate	4406207	42.81
Sub Total	5522072	53.65
(2) Foreign
Bodies Corporate	287000	2.79
Sub Total	287000	2.79
Total shareholding of Promoter and Promoter Group (A)	5809072	56.44
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	450	--
Financial Institutions / Banks	938787	9.12
Sub Total	939237	9.13
(2) Non-Institutions
Bodies Corporate	614378	5.97
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2195682	21.33
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	652267	6.34
Any Others (Specify)	81532	0.79
Non Resident Indians	81532	0.79
Sub Total	3543859	34.43
Total Public shareholding (B)	4483096	43.56
Total (A)+(B)	10,292,168	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	10,292,168	-

BUSINESS DETAILS

Line of Business :

Manufacture of Polyester-Viscose, Polyester-Woollen and 100% Woollen Fabrics, Polyester-Wool Blended and 100% Woollen and Worsted yarn.

Products :

Product Description	ITC Code
Fabrics made of Man Made Fibres	5515
Woollen / Worsted Blended Fabrics	5112
Woollen / Worsted Blended Yarn	5107

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Looms	--	148	--
Worsted Spinning Spindles	--	8768	--
Synthetic Spinning Spindles	--	17136	--
Vortex Spinning Positions	--	400	--
Fabrics Processing	Mtrs. In lac	264	--
Top, Fibre & Yarn Dyeing	MT	1382	--
A. Own Manufacturing
Worsted Yarn	Lac Kg		8.26
PV Yarn	Lac Kg		30.04
Vortex Yam	Lac Kg.		3.25
Fabrics	Lac Mtrs		161.80
Readymade Garments	Lac Nos		0.61
Wind Power	Lac Units		30.94
B. Job Work
Fabrics Processing	Lac Mtrs.	--	243.89
Dying Charges	Lac Kg	--	18.44
Yarn Spinning	Lac Kg	--	1.74

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· Oriental Bank of Commerce

· IDBI Bank Limited

· Union Bank of India

· ICICI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans	750.925	582.402
Working Capital Loans	681.282	531.864
Other Loans	0.524	0.000
Total	1432.731	1114.266
Notes: 1) The Term Loans from Banks are secured by way of joint equitable mortgage / hypothecation of all immoveable and movable existing and future assets of the Company except book debts ranking pari passu subject to prior charge created / to be created in favour of the Company's bankers on stocks of raw materials, semi-finished, finished goods for working capital. 2) Term loans aggregating Rs.89.115 Millions repayable within one year. 3) Bank loans for working capital are secured against hypothecation of stocks of raw materials, finished goods and goods in process. The same is also secured by second charge created/to be created in favour of Company's Bankers by way of joint equitable mortgage on immovable properties of the Company which is ranking pari passu.

Banking Relations :	--
Auditors :
Name :	A.L. Chechani and Company Chartered Accountants
Address :	Bhilwara, Rajasthan, India
Advisor Name :	R.N. Gupta

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
29000000	Equity Shares	Rs.10/- each	Rs. 290.000 Millions
500000	Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 50.000 Millions
	Total		Rs. 340.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10292168	Equity Shares	Rs.10/- each	Rs. 102.922 Millions

Notes:

i) 2920 Equity Shares have been issued at par pursuant to a contract without payment being received in cash.

ii) Equity share capital includes 29,57,469 Shares issued for consideration other than cash, pursuant to Scheme of Amalgamation of erstwhile Bhilwara Processors Limited with the Company as approved by the Hon’ble High Court Rajasthan at Jodhpur.

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		102.922	102.922	73.347
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		528.575	489.945	328.383
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		631.497	592.867	401.730
LOAN FUNDS
1] Secured Loans		1432.731	1114.266	1151.461
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1432.731	1114.266	1151.461
DEFERRED TAX LIABILITIES		103.239	85.402	50.149
TOTAL		2167.467	1792.535	1603.340
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1122.419	968.635	810.669
Capital work-in-progress		14.783	6.946	5.628
INVESTMENT		0.000	0.003	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	764.453	572.602	463.209
	Sundry Debtors	459.237	309.959	312.668
	Cash & Bank Balances	3.236	3.311	4.018
	Other Current Assets	195.338	164.069	132.667
	Loans & Advances	20.381	21.909	20.883
Total Current Assets		1442.645	1071.850	933.445
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	237.799	108.298	45.375
	Other Current Liabilities	130.692	120.463	93.883
	Provisions	43.889	26.138	7.147
Total Current Liabilities		412.380	254.899	146.405
Net Current Assets		1030.265	816.951	787.040
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2167.467	1792.535	1603.340

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2709.234	2177.478	1877.916
		Other Income	1.012	0.712	9.577
		TOTAL (A)	2710.246	2178.190	1887.493
Less	EXPENSES
		Materials	1318.687	905.135	792.606
		Payment to and Provision for Employees	314.145	259.610	172.399
		Operational and Other Expenses	772.227	707.621	697.844
		Increase/(Decrease) in Finished Goods	(43.256)	10.372	(0.671)
		TOTAL (B)	2361.803	1882.738	1662.178
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		348.443	295.452	225.315
Less	FINANCIAL EXPENSES (D)		126.295	110.267	126.430
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		222.148	185.185	98.885
Less/ Add	DEPRECIATION/ AMORTISATION (F)		127.005	123.755	96.393
	PROFIT BEFORE TAX (E-F) (G)		95.143	61.430	2.492
Less	TAX (H)		38.541	23.544	1.990
	PROFIT AFTER TAX (G-H) (I)		56.602	37.886	0.502
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.814	10.579	10.077
Add	BALANCE BROUGHT FROM AMALGAMATING COMPANY		0.000	1.350	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	2.835	0.000	0.000
		Interim Dividend	7.719	0.000	0.000
		Proposed Equity Share Dividend	7.719	7.719	0.000
		Provision for Dividend Tax	1.252	1.282	0.000
		Tax on Interim Dividend	1.282	0.000	0.000
	BALANCE CARRIED TO THE B/S		76.609	40.814	10.579
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1506.652	1193.999	1070.702
	TOTAL EARNINGS		1506.652	1193.999	1070.702
	IMPORTS
		Raw Materials (Wool, Fibre and Silk Yarn)	253.233	163.669	113.602
		Stores & Spares	14.253	13.511	14.456
		Capital Goods	130.502	2.486	1.988
	TOTAL IMPORTS		397.988	179.666	130.046
	Earnings Per Share (Rs.)		5.50	3.68	0.07

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	679.300	851.300	717.200
Total Expenditure	599.800	774.300	657.200
PBIDT (Excl OI)	79.500	77.000	60.000
Other Income	0.500	0.200	0.300
Operating Profit	80.000	77.200	60.300
Interest	43.800	42.500	44.500
Exceptional Items	0.000	0.000	0.000
PBDT	36.200	34.700	15.800
Depreciation	34.900	32.900	33.300
Profit Before Tax	1.300	1.800	(17.500)
Tax	(0.100)	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	1.400	1.800	(17.500)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	1.400	1.800	(17.500)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.09	1.74	0.03
Net Profit Margin (PBT/Sales)	(%)	3.51	2.82	0.13
Return on Total Assets (PBT/Total Assets}	(%)	3.71	3.01	0.14
Return on Investment (ROI) (PBT/Networth)		0.15	0.10	0.01
Debt Equity Ratio (Total Liability/Networth)		3.09	2.31	3.23
Current Ratio (Current Asset/Current Liability)		3.50	4.20	6.38

LOCAL AGENCY FURTHER INFORMATION

EXPORTS

The Company’s Export turnover during the year was Rs. 1558.300 Millions. During the year, the export performance of the company was satisfactory and Company has been able to increase its volume and per meter price realization resulting into higher profitability during the year.

EXPANSIONS

WEAVING

The Company has installed 12 new Weaving Machines of Picanol, Belgium. The Machines have started giving value added products from 1st September, 2010.

NEW TECHNOLOGY IN SPINNING

In the Spinning Department, the Company has introduced new generation of Technology from Japan. The Vortex Spinning is producing better quality of yarn.

OUT LOOK FOR COMPANY’S ACTIVITIES

The Company is focusing more on Exports markets by getting better price realisation and developing new products and exploring new markets in various continents for Fabric and Yarn businesses. New Domestic markets are also being explored as well as Institutional Sales.

NEW EXPANSION PLANS

In the Current Year, the Company plans to install 20 Toyota Airjet Weaving Machines, and is modernising its weaving and processing divisions. It also plans to double its Vortex Spinning capacity. The Total Capital Expenditure will be Rs.400.000 Millions. The Expansions will be funded through Term Loans and Internal Accruals.

These Expansions will improve overall profitability of the Company.

WIND POWER PROJECT

The Company’s Wind Power Project at Jaisalmer had generated 30.94 Lac units during the year, as against 35.06

Lac units last year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian Textile Industry plays very important role in their Country’s Economy. The Indian Textile Industry is one of the largest in the world with a massive raw material and textile-manufacturing base and also currently India has the second highest spindleage in the world after China. Indian Economy is largely dependent on the textile manufacturing and trade in addition to other major industries about 30 per cent of the exchange earning are on account of export of textiles and clothing alone.

In line with its aspiration of ongoing growth, BSL is investing its resources in core business. It is also taking initiatives of investing in new technologies that help meet changing aspiration of millions of Indian and overseas customers. These strategies and initiatives are aimed to ensure that BSL delivers long-term growth and creates unprecedented value for its stakeholders.

Financial year 2010-11 was a strong year for its upstream textile business. During the year company’s performance was better. The turnover increased from Rs. 2180.200 Millions to Rs.2717.800 Millions which reflects a growth of 24.66%. During the year the export has increased in terms of volume and per meter price realization.

THREATS AND OUTLOOK:

After the Global recession the world economies are now coming out of the recession but the business environment is very challenging as customers are cutting down on inventory level & making pricing competitive. Highly fluctuating Raw Material Prices of Polyester and Viscose on one hand and only northward Wool and Silk Prices on the other are putting continuous challenges.

The outlook for textile industry is very optimistic. It is expected that Indian textile industry would continue to grow at an impressive rate.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As On 31.03.2011)

Rs. In Millions

Bills discounted with Banks	122.978
Guarantees given by the Company's Bankers	15.938
Claims against the Company not acknowledged as debts	1.552
Excise duty demand disputed by the Company	2.388
Sales Tax demand of Erstwhile BSL Wulfing Limited, disputed by the company	3.164
Estimated value of contracts remaining to be executed on Capital Accounts	61.797

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Vehicles
• Office and Other Equipments
• Computer software
• Enabling assets

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30^th SEPTEMBER, 2011

(Rs. in Millions)

Sr. No.	Particulars	Quarter Ended 30.09.2011 (Un-Audited)	Half Year Ended 30.09.2011 (Un-Audited)
1	(a) Net Sales/ Income from operations	851.300	1530.600
	(b) Other Operating Income	--	--
	Total Income	851.300	1530.600
2	Expenditure
	a) Decrease/(Increase) in stock in trade and work in progress	135.200	30.400
	b) Consumption of raw materials	316.400	724.900
	c) Purchase of traded goods	13.500	24.500
	d) Employees cost	95.500	183.800
	e) Depreciation	32.900	67.800
	f) Power, Fuel & Water	62.700	124.100
	g) Other expenditure	151.000	286.400
	Sub Total	807.200	1441.900
3	Profit from Operations before other Income, Interest and Exceptional Items (1-2)	44.100	88.700
4	Other Income	0.200	0.700
5	Profit before Interest and Exceptional Items (3+4)	44.300	89.400
6	Interest	42.500	86.300
7	Profit after Interest but before Depreciation and Exceptional Item (5-6+2e)	34.700	70.900
8	Profit after Interest but before Exceptional Item (5-6)	1.800	3.100
9	Exceptional items	--	--
10	Profit/(Loss) from Ordinary Activities before tax (8-9)	1.800	3.100
11	Tax Expenses
	a) Current Tax	--	--
	b) Deferred Tax	--	--
	c) Earlier Year's	--	(0.100)
	Total Tax Expenses	--	(0.100)
12	Profit/(Loss) from Ordinary Activities after tax (10-11)	1.800	3.200
13	Extraordinary Items (Net of Taxation)	--	--
14	Net Profit/ (Loss) for the period (12-13)	1.800	3.200
15	Paid-up Equity Share Capital (Face value Rs. 10)	102.900	102.900
16	Reserves excluding Revaluation reserves	--	--
17	Earning per Shares (Before & After Extra ordinary Items)
	Basic/ Diluted EPS (Rs.)	0.17	0.31
18	Public shareholding
	- Number of shares	4483096	4483096
	- Percentage of shareholding	43.56	43.56
19	Promoters and promoter group Shareholding
	a) Pledged/Encumbered (Number of shares)	NIL	NIL
	b) Non-encumbered (Number of shares)	5809072	5809072
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
	- Percentage of shares (as a % of the total share capital of the company)	56.44	56.44

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in Millions)

Sr. No.	Particulars	Quarter Ended 30.09.2011 (Un-Audited)	Half Year Ended 30.09.2011 (Un-Audited)
1	Segment Revenue
	a) Textile	848.200	1521.700
	b) Wind Power	3.100	8.900
	Total	851.300	1530.600
	Less : Inter Segment Revenue	--	--
	Net Sales / Income from Operations	851.300	1530.600
2	Segment Results Profit /(Loss) before Tax and interest from each segment
	a) Textile	43.200	84.200
	b) Wind Power	1.100	5.200
	Total	44.300	89.400
	Less : a) Interest	42.500	86.300
	b) Other un-allocable expenditure net of unallocable income	--	--
	Total Profit / (Loss) before tax	1.800	3.100
3	Capital Employed
	a) Textile	2136.900	2136.900
	b) Wind Power	82.300	82.300
	Total	2219.200	2219.200

STATEMENT OF ASSETS AND LIABILITIES (UN-AUDITED)

(Rs. in Millions)

Particulars	As on 31.09.2011
1. Shareholder’s Funds:
a) Capital	102.900
b) Reserves and Surplus	511.400
2. Loan Funds	1501.700
3. Deferred Tax Liability	103.200
Total	2219.200
4. Fixed Assets (Net Block)	1122.700
5. Current Assets, Loans and Advances
a) Inventories	755.000
b) Sundry Debtors	550.900
c) Cash and Bank Balances	6.100
d) Other Current Assets	202.200
e) Loans and Advances	21.900
Less: Current Liabilities and Provisions
a) Liabilities	406.800
b) Provisions	32.800
Total	2219.200

Notes:

1. The above financial results were reviewed by the Audit Committee and thereafter were taken on record by the Board of Directors at their meeting held on 2^nd November, 2011 at Noida (Uttar Pradesh)

2. The figures of the previous year/ quarter have been regrouped / recast wherever necessary

3. On adoption of AS-30 of ICAI, Reserve and Surplus include Hedging Reserve towards adverse foreign currency fluctuation of Rs. 20.300 Millions.

4. During the quarter ended 30^th September, 2011, 14 complaints were received from various shareholders and all have been resolved.

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. 50.22
UK Pound	1	Rs. 78.63
Euro	1	Rs. 65.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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.