MIRA INFORM REPORT

Report Date :

31.03.2012

IDENTIFICATION DETAILS

Name :	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED
Registered Office :	Ram Tirth Road, Amritsar – 143001, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24-01-2005
Com. Reg. No.:	16-27880
Capital Investment / Paid-up Capital :	Rs.200.000 Millions
CIN No.: [Company Identification No.]	U17110PB2005PTC027880
TAN No.: [Tax Deduction & Collection Account No.]	AMRA10966E
PAN No.: [Permanent Account No.]	AAFCA0627F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Blankets
No. of Employees :	300(Approximately)

RATING & COMMENTS

MIRA’s Rating :

B(29)

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

Maximum Credit Limit :	USD 2100000
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 small business dealing with 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 – April 1, 2010

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

INFORMATION PARTED BY

Name :	Mr. Vimal
Designation :	Accountant
Date :	13.03.2012

LOCATIONS

Registered Office :	Ram Tirth Road, Amritsar – 143001, Punjab, India
Tel. No.:	91-183-2225618/2220782/5094716/3090796
Fax No.:	91-183-5094717
E-Mail :	info@aswm.com rajivkrishankhanna@yahoo.co.in mail@aswm.com
Website :	http://aswm.com
Area :	2000 sq. ft.
Location :	Owned
Factory 1 :	Batala Road, Amritsar, Punjab, India
Tel. No.:	91-183-2263889, 2263903
Factory 2 :	Village Vallah Verka, Bye Pass, Amritsar, Punjab, india
Tel. No.:	91-183-3092600, 5092693
Factory 3 :	Bahalgarh, Sonipat
Tel. No.:	91-130-2381209
Factory 4:	(Garments Division), Bangalore, Karnataka, India
Tel. No.:	91-180-23370293, 23370326

DIRECTORS

AS ON 29.09.2011

Name :	Mr. S. K. Khanna
Designation :	Managing Director and Chairman
Address :	79, The Mall, Amritsar
Date of Birth/Age :	15.8.1923
Date of Appointment :	26.02.2005

Directorship in Other Companies:

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	U17117PB1972PTC003177	REGAL WOOLLEN MILLS PRIVATE LIMITED	Director	22/09/1972	22/09/1972	-	Active	NO
2	U74899DL1975PTC007764	AMRITSAR SWADESHI WOOLLEN MILLS PRIVATE LIMITED	Director	30/03/1995	30/03/1995	-	Active	NO
3	U74999DL1996PTC081995	SWADESHI KOREATEX PRIVATE LIMITED	Director	17/09/1996	17/09/1996	-	Active	NO
4	U17110PB2005PTC027880	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED	Managing director	26/02/2005	26/02/2005	-	Active	NO

Name :	Mr. Raj Krishna Khanna
Designation :	Director
Address :	72, Mount Blanc, Dady Seth Hill Road, August Kranti Marg, Mumbai
Date of Birth/Age :	10.08.1933
Date of Appointment :	24-01-2005

Directorship in Other Companies :

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	U51311MH1972GAP016172	INDIAN WOOLLEN MILLS' FEDERATION	Director	29/06/1983	29/06/1983	-	Active	NO
2	U74899DL1975PTC007764	AMRITSAR SWADESHI WOOLLEN MILLS PRIVATE LIMITED	Managing director	30/03/1995	30/03/1995	-	Active	NO
3	U74999DL1996PTC081995	SWADESHI KOREATEX PRIVATE LIMITED	Director	16/05/1997	16/05/1997	-	Active	NO
4	U17110PB2005PTC027880	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED	Director	24/01/2005	24/01/2005	-	Active	NO

Name :	Mr. Lalit Krishna Khanna
Designation :	Director
Address :	219, Dr. Alagesan Road, Sai Baba Mission, P.O. Coimbatore, Tamil Nadu
Date of Birth/Age :	11.04.1944
Date of Appointment :	24-01-2005

Directorship in Other Companies :

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	U74899DL1975PTC007764	AMRITSAR SWADESHI WOOLLEN MILLS PRIVATE LIMITED	Director	29/03/1995	29/03/1995	-	Active	NO
2	U74999DL1996PTC081995	SWADESHI KOREATEX PRIVATE LIMITED	Director	16/05/1997	16/05/1997	-	Active	NO
3	U17110PB2005PTC027880	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED	Director	24/01/2005	24/01/2005	-	Active	NO

Name :	Mr. Rajiv Krishan Khanna
Designation :	Director
Address :	79, The Mall, Amritsar
Date of Birth/Age :	28.04.1946
Date of Appointment :	24-01-2005

Directorship in Other Companies :

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	U17117PB1972PTC003177	REGAL WOOLLEN MILLS PRIVATE LIMITED	Director	22/09/1972	22/09/1972	-	Active	NO
2	U74899DL1975PTC007764	AMRITSAR SWADESHI WOOLLEN MILLS PRIVATE LIMITED	Director	20/05/1975	20/05/1975	-	Active	NO
3	U74999DL1996PTC081995	SWADESHI KOREATEX PRIVATE LIMITED	Director	17/09/1996	17/09/1996	-	Active	NO
4	U74899DL2001PTC109816	KRISHTEX FELTS PRIVATE LIMITED	Director	27/02/2001	27/02/2001	-	Active	NO
5	U17110PB2005PTC027880	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED	Director	24/01/2005	24/01/2005	-	Active	NO

Name :	Mr. Sachin Khanna
Designation :	Director
Address :	79, The Mall, Amritsar
Date of Birth/Age :	27.09.1974
Date of Appointment :	26.02.2005

Directorship in Other Companies :

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	U74899DL2001PTC109816	KRISHTEX FELTS PRIVATE LIMITED	Director	27/02/2001	27/02/2001	-	Active	NO
2	U17110PB2005PTC027880	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED	Director	26/02/2005	26/02/2005	-	Active	NO
3	U74899DL1975PTC007764	AMRITSAR SWADESHI WOOLLEN MILLS PRIVATE LIMITED	Director	27/09/2008	27/09/2008	-	Active	NO

KEY EXECUTIVE

Name :	Mr. Vimal
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Mr. S. K. Khanna	3000000
Mr. Raj Krishna Khanna	3000000
Mr. Lalit Krishna Khanna	3000000
Mr. Vinod Khanna	1400000
Mr. Vimal Khanna	1400000
Mr. Vijay Khanna	1400000
Mr. Rajiv Khanna	1600000
Mr. Akhil Khanna	600000
Mr. Sachin Khanna	600000
Mr. Amritsar Swadeshi Woollen Mills Private Limited	4000000
TOTAL	20000000

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	20.00
Directors or relatives of directors	8000
Total	100

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Blankets
Products :	Relief Blankets Institutional Blankets Traditional Blankets Mink Blankets Lifestyle Products Garments Fabrics Yarn Readymade Garments for Men’s, Women’s and Kids Garments Shirts Trousers Short and Skirts Coats Vests & Sportswear Jackets
Exports :
Products :	Blankets
Countries :	US, Canada, Australia and Europe
Imports:
Products :	Raw Material
Countries :	Argentina
Terms :
Selling :	L/C
Purchasing :	L/C

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Installed Capacity
Spindles	2584
Power Looms	83

Particulars	Units	Actual Production
Yarn	Kgs	1610422
Cloth	Mts	434823
Blankets, shawls, Garments, etc	Pcs	474235

GENERAL INFORMATION

Customers :

Wholesalers, Retailers

• Columbia Sportswear Company
• Avirex
• Dockers
• Topman
• Dkny
• Old Navy
• Studia Tyures
• Columbia Sportswear
• Carrefour
• Timberland
• Marlboro
• Avirfex
• Topman
• Wallaby
• La Maison Simons etc.

No. of Employees :

300 (Approximately)

Bankers :

• Union Bank of India, Chowk Fuwara, Amritsar
• Punjab and Sind Bank
• Punjab National Bank

Facilities :

SECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
Working Capital Loans: (Secured by hypothecation of stocks, Stores, Book Debts etc.)
Union Bank of lndia	112.662	87.546
Canara Bank	0.000	23.270
Punjab and Sind Bank	28.441	5.585
Machinery Term Loans: (Secured by hypothecation of Machinery)
Union Bank of lndia	0.000	1.207
Motor Vehicles Loans: ( Secured by hypothecation of motor Vehicles)	0.025	0.335
TOTAL	141.127	117.943

UNSECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
From Directors, Shareholders, their relatives and concern in which Directors are interested, etc.	99.946	140.653
TOTAL	99.946	140.653

Banking Relations :	--
Auditors :
Name :	R L Mehra And Company Chartered Accountant
Address :	M.M. Malviya Road, Amritsar – 143001, Punjab, India
Tel No.:	91-183-229114 / 503603
Associates/ Subsidiaries :	· Aswm Spinning Mills · Swadeshi Udyog · Swadesh Korteks

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 10/- Each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- Each	Rs.200.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		319.755	15.633	14.411
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		519.755	215.633	214.411
LOAN FUNDS
1] Secured Loans		141.127	117.943	194.789
2] Unsecured Loans		99.946	140.653	64.450
TOTAL BORROWING		241.073	258.596	259.239
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		760.828	474.229	473.650
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		525.836	227.097	233.135
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.110	0.111	0.111
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	171.637	185.954	164.500
	Sundry Debtors	90.388	99.818	99.531
	Cash & Bank Balances	5.187	4.138	5.630
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.047	32.807	39.183
Total Current Assets		303.259	322.717	308.844
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	54.102	71.196	65.463
	Other Liabilities	0.000	0.000	0.000
	Provisions	14.775	4.500	3.200
Total Current Liabilities		68.877	75.696	68.663
Net Current Assets		234.382	247.021	240.181
MISCELLANEOUS EXPENSES		0.500	0.000	0.223
TOTAL		760.828	474.229	473.650

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	341.900	316.500	452.900
		Other Income	17.424	22.600
		TOTAL	359.324	339.100	452.900
Less	EXPENSES
		Office Expenses
		Administrative Expenses	348.927	336.577	449.287
		Advertising Expenses
		TOTAL	348.927	336.577	449.287
	PROFIT BEFORE TAX		10.397	2.522	3.613
Less	TAX		3.375	1.300	NA
	PROFIT AFTER TAX		7.022	1.223	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	135.294	94.309	211.982
	TOTAL EARNINGS
	IMPORTS
		Purchase	21.475	43.158	10.097
		Stores and Accessories	2.065	0.530	1.034
	TOTAL IMPORTS		23.540	43.688	11.131
	Earnings Per Share (Rs.)		0.36	0.06	--

Expected Sales (2010-2011) : Rs.350.000 Millions

Expected Sales (2011-2012) : Rs.400.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.95	0.36	NA
Net Profit Margin (PBT/Sales)	(%)	3.04	0.79	--
Return on Total Assets (PBT/Total Assets}	(%)	1.25	0.46	NA
Return on Investment (ROI) (PBT/Networth)		0.02	0.01	NA
Debt Equity Ratio (Total Liability/Networth)		0.59	1.55	1.53
Current Ratio (Current Asset/Current Liability)		4.40	4.26	4.50

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	--
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FINANCIAL RESULTS AND AFFAIRS OF THE COMPANY:

The total turnover of the company during the year is Rs.341.900 millions as compared to Rs.316.500 millions during the previous year. Net Profit during he year under consideration is Rs.10.400 millions as compared to profit of Rs. 2.522 millions of the previous year. The profitability has increased by 400% approximately.

Future Prospects of the Company

The Board of Directors strongly believe that the Mega Project will bring better efficiency and cost effectiveness and will result in economies of scale, The production capacities will increase three times and the production lines will be well synchronised and systematic, This project will have a gestation period of about 24 months.

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	90171476
Corporate identity number of the company	U17110PB2005PTC027880
Name of the company	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ram Tirth Road, Amritsar – 143001, Punjab, India
Type of charge	Book Debts Movable Property Floating Charge Immovable Property
Particular of charge holder	Union Bank of India, Chowk Fuwara, Amritsar – 143001, Punjab, India
Nature of description of the instrument creating or modifying the charge	1. Working Capital Consortium Agreement 2. Joint Deed of Hypothecation
Date of instrument Creating the charge	28.08.2010
Amount secured by the charge	Rs.280.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement. Terms of Repayment As per Agreement. Margin As per Bank Norms. Extent and Operation of the charge 100%
Short particulars of the property charged	First charge on all types of stocks & book debts of the company on pari passu basis in favour of Union Bank of India, Chowk Fuvara, Amritsar and Punjab & Sind Bank, Hall Bazar, Amritsar. Equitable mortgage on Factory Land & Building bearing khasra No.60 measuring 8446.87 sq.yds situated at Gawal Mandi, Ram Tirath Road, Amritsar in favour of Union Bank of India, Chowk Fuwara, Amritsar. Equitable mortgage on properties of the company bearing khasra No. 11/1, 10 15/1 (5-11), 6/2/1(1-17), 6/2/2 (0-3),15/2 (2-9), 153/14/2, 7/2 (3-14 ), 7/1(3-04), 14/1(4-00) situated at Verka Bye Pass, Amritsar valued at Rs. 45.20 Lacs plus superstructure thereon in favour of Punjab & Sind Bank, Hall Bazar, Amritsar. The charge on equitable mortgages of immovable properties with Union Bank of India & Punjab & Sind Bank is shared on parri passu basis to the extent of exposure of the member banks in the corsortium. The limits of Union Bank of India are also secured by Factory Building and Land measuring 65K- 15M (8 .218 Acres) situated at Verka,vallah Bye Pass Road, comprising of Khasra Nos. 153/ 18 ( 8-0 ), 153/9(7-8), 153/12(8-0), 153/13(8-0), 153/8 (7-16), 153/19(8-0), 153/17(8-0), 153/25(1-5 ) , 154/20/3 (2-4), 21/1 (1-2), 153/6/1(6-0) Total Area 65 Kanals and 15 Marlas.
Particulars of the present modification	Details Of Revised Limits Are As Under:- Ubi- Rs.205.000 Millions , Psb:-75.500 Millions Total= Rs.280.500 Millions. For Details Of Limits, See First Schedule Enclosed Herewith.

Name of the company	AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMITED
Presented By	Sh. S. K. Khanna, Director
1) Date and description of instrument creating the change	Hypothecation (Goods) Agreements dated 15.02.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs.14.700 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All Plant and Machinery purchased or to be purchased including milling I scouring Machines, Automatic, Simmet / Dornier Sulzer Locms, Combined Raising and Sheering Line, Stenter Machine, Rotary Press, Dyeing Machines, Mangle Machine, open width Rope, Hydro Extractor Machine with accessories and any other machinery purchased Dr to be purchased with the abovesaid Term Loan.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 10.75Y. p. a. with Monthly rests or at such other rate as may be prescribed by the Bank from time to time. Operation:100 %..
5) Name and Address and description of the person entitled to the charge.	Union Bank of India, Chowk Fuwara,Amritsar.
6) Date and brief description of instrument modifying the charge	Memorandum dated 23.11.2005
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The above limit is further secured by way of Factory Building and Land measuring 65K-15M (8.21B Acres) situated at Verka, Vallah Bye Pass Road, comprising of Khasra Nos.153/18(8-0),153/9(7-8), 153/12(8-0),153/13(8-0), 153/8(7-16),153/19(8-0), 153/17(8-0),153/25(1-5), 154/20/3(2-4),21/1(1-2), 153/611(6-0) Total Area 65 Kanals and 15 MarIas.

Trade Reference:

· LA Maison Simons

· Columbia Sportswear Company

FIXED ASSETS:

• Land
• Factory Building
• Office Building
• Plant And Machinery
• Furniture And Fittings
• Motor Vehicles
• Computers
• Transportation Vehicles
• Motor Bikes and Scooters

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.51.15
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.