MIRA INFORM REPORT

Report Date :

30.05.2012

IDENTIFICATION DETAILS

Name :	SOUNDARARAJA MILLS LIMITED (w.e.f. 07.10.1967)
Formerly Known As :	SOUNDARARAJA MILLS PRIVATE LIMITED
Registered Office :	Soundararaja Buildings, G.T. N. Salai, Dindigul - 624005, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.06.1937
Com. Reg. No.:	18-014821
Capital Investment / Paid-up Capital :	Rs. 9.693 Millions
CIN No.: [Company Identification No.]	U17111TZ1937PLC014821
TAN No.: [Tax Deduction & Collection Account No.]	CHES00305E/ CHES16772A
PAN No.: [Permanent Account No.]	AAACS8799R
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Synthetic and Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2800000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well established company having satisfactory track. There appears some accumulated losses recorded by the company. However, financial position of the company appears to be good. Trade relations are reported to be usually mode 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/ Corporate Office :	Soundararaja Buildings, G.T. N. Salai, Dindigul-624005, Tamilnadu, India
Tel. No.:	91-451-2430104 / 2430105
Fax No.:	91-451-2430593
E-Mail :	srmaccounts@soundararaja.com soundaraja@satyam.net.in
Website :	http://www.soundararaja.com
Factory 1 :	Soudararaja Mills Road, Dindigul - 624 003, Tamilnadu, India
Tel. No.:	91-451-2470067
Fax No.:	91-451-2471407
Factory 2 :	Kamarajar Salai, Nedungadu - 609603, Pondicherry State, India
Tel. No.:	91-4368-261293/ 261284
Fax No.:	91-4368-261519
Factory 3 :	Nillakottai Taluk, Dindigul District, Siddargalnatham – 624219, Tamilnadu, India

DIRECTORS

As on 30.07.2011

Name :	Mr. Ranjit Soundarajan
Designation :	Chairman and Managing Director
Address :	36 Vijayashree, Arch Bishop Avenue, Chennai - 600028, Tamilnadu, India
Date of Birth/Age :	16.07.1963
Date of Appointment :	01.07.1985
DIN No.:	00307132

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	U17111TZ1937PLC014821	SOUNDARARAJA MILLS LIMITED	Managing director	21-01-10	01-07-85	-	Active	NO
2	U65993TZ1981PTC014822	K & Y ENTERPRISES PRIVATE LIMITED	Managing director	14-03-86	14-03-86	-	Active	NO
3	U17111TZ1981PTC014823	SOUNDARARAJA SASHA INDUSTRIES PRIVATE LIMITED	Managing director	17-12-86	17-12-86	11-04-07	Active	NO

Name :	Mrs. Sangeetha Soundarajan
Designation :	Executive Director
Address :	Lakshmi Soundara, G.T. N. Salai, Dindigul-624005, Tamilnadu, India
Date of Birth/Age :	09.11.1966
Date of Appointment :	18.02.2008
DIN No.:	02186527

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	U17111TZ1937PLC014821	SOUNDARARAJA MILLS LIMITED	Director	29-09-08	18-02-08	Active	NO
2	U65993TZ1981PTC014822	K & Y ENTERPRISES PRIVATE LIMITED	Director	29-09-08	25-02-08	Active	NO

Name :	Mr. Narayanaraja Muralidharan
Designation :	Director
Address :	SRM Staff Quarter, SR Mills Road, Dingigul-624003, Tamilnadu, India
Date of Birth/Age :	09.05.1959
Date of Appointment :	30.04.2006
DIN No.:	00391413

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	U17111TZ1981PTC014823	SOUNDARARAJA SASHA INDUSTRIES PRIVATE LIMITED	Director	08-09-03	08-09-03	11-04-07	Active	NO
2	U17111TZ1937PLC014821	SOUNDARARAJA MILLS LIMITED	Director	03-08-06	30-04-06	-	Active	NO
3	U65993TZ1981PTC014822	K & Y ENTERPRISES PRIVATE LIMITED	Director	25-08-07	19-03-07	-	Active	NO

Name :	Mr. Venkatram Athinarayanasamy
Designation :	Executive Director
Address :	Old-17, New-25, Krishnarao, Second St. Dindigul-624001, Tamilandu, India
Date of Birth/Age :	08.03.1958
Date of Appointment :	24.06.2010
DIN No.:	03136026

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	U17111TZ1937PLC014821	SOUNDARARAJA MILLS LIMITED	Director	16-09-10	24-06-10	Active	NO

Name :	Mr. Kiran Ranjit Soundarajan
Designation :	Director
Address :	Lakshmi Soundara’ G.T.N. Salai, Dindigul-624005, Tamilnadu, India
Date of Appointment :	24.06.2010
Date of Birth/Age :	08.08.1988
DIN No.:	03164195

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	U17111TZ1937PLC014821	SOUNDARARAJA MILLS LIMITED	Director	16-09-10	24-06-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.07.2011

Names of Shareholders	No. of Shares
Soundarajan N.	16387
Soundarajan N. HUF – II	4685
Saroja Soundarajan	115709
Ranjit Soundarajan	449931
Kiran R Solundarajan	33748
Yashwant R Soundarajan	33751
Vijayashree	20580
Sujatha Samasekar	20580
Nithyarjuna Traders Private Limited, India	20646
Sasha Traders Private Limited, India`	20646
Soundararaja Sasha Industries Limited, India	200
K and Y Enterprises Private Limited, India	135995
D Saketh Ramasamy	9564
Priya R.	19000
Jayalakshmi V	22559
Indra R	4660
Dhanalkshmir R	1820
Balasubramanian D R	4112
Sujatha D	500
Sudha D	500
Alamelu Achil.Sl.	540
Deivarayan Chetiar Rm. M. Ar. Pr. M	1066
Ghanambal Achi. St. S	1280
Govindarajulu Naidu D.	6124
Kishore Jeevaram	426
Thiagarajan .N	2772
Durairaj.T.A.B	1386
Chakravarthy .D.N	274
Subramanian .RM	1340
Meyyappan .RM	1074
Ravindran.G	3920
Subrahmanyan Chandra Narayanan	266
Subrahmanyan Ramanathan	331

As on 30.07.2011

Equity Share Breakup

Percentage of Holding

Category
Bodies corporate	18.00
Directors or relatives of Directors	71.00
Others	11.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Synthetic and Cotton Yarn.

Products :

Product Description	ITC Code
Cotton Yarn	52.06
Synthetic Yarn	55.09 and 55.10

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Cotton Yarn	Kgs.	2447016.06
Polyester cotton yarn	Kgs	1197061.71
Fibre Yarn	Kgs.	2265719.25
Waste	Kgs	1429292.70

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• IDBI Bank Limited, 3, West Marret Street, Madurai – 625001, Tamil Nadu, India
• State Bank of India, SME Branch, No. 1 Salai Road, Dindigul – 624001, Tamil Nadu, India

Facilities :

Secured Loans	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working Capital Loan form Banks	66.926	136.253
Term Loan from Banks	507.929	838.873
Total	574.855	975.126
Unsecured Loans	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Fixed Deposits	54.125	68.540
Others	0.000	0.100
Total	54.125	68.640

Banking Relations :	--
Auditors :
Name :	Mr. N Balavenkatesan Chartered Accountant
Associates/Subsidiaries :	Soundararaja Textiles Company Soundararaja and Company K and Y Enterprises Private Limited, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
969336	Equity Shares	Rs. 10/- each	Rs. 9.693 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		9.693	9.693	9.693
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		929.933	929.933	546.645
4] (Accumulated Losses)		(223.513)	(225.997)	0.000
NETWORTH		716.113	713.629	556.338
LOAN FUNDS
1] Secured Loans		574.855	975.126	2301.548
2] Unsecured Loans		54.125	68.640	123.245
TOTAL BORROWING		628.980	1043.766	2424.793
DEFERRED TAX LIABILITIES		76.857	76.500	276.500
TOTAL		1421.950	1833.895	3257.631
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		850.665	903.276	2392.772
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.459	0.459	0.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	481.897	719.689	717.843
	Sundry Debtors	56.625	97.541	108.833
	Cash & Bank Balances	25.503	20.603	26.862
	Other Current Assets	2.886	2.015	0.000
	Loans & Advances	119.177	184.123	251.908
Total Current Assets		686.088	1023.971	1105.446
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	59.477	28.331	0.000
	Other Current Liabilities	53.249	63.216	218.838
	Provisions	2.536	2.264	22.549
Total Current Liabilities		115.262	93.811	241.387
Net Current Assets		570.826	930.160	864.059
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1421.950	1833.895	3257.631

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1379.299	1181.280	1818.634
		Other Income	2.524	22.675	371.825
		Wind Energy Generation	0.000	0.000	131.270
		TOTAL (A)	1381.823	1203.955	2321.729
Less	EXPENSES
		Consumption materials changes inventories	892.274	607.964	987.801
		Manufacturing service costs	191.900	185.089	631.779
		Contract cost	0.000	0.000	0.000
		Employee related expenses	74.553	118.717	172.359
		Administrative selling other expenses	58.436	(137.289)	114.109
		TOTAL (B)	1217.163	774.481	1906.048
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		164.660	429.474	415.681
Less	FINANCIAL EXPENSES (D)		102.472	274.057	348.550
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		62.188	155.417	67.131
Less/ Add	DEPRECIATION/ AMORTISATION		59.075	60.343	163.726
	Extraordinary items before tax		0.000	(244.785)	0.000
	PROFIT /LOSS BEFORE TAX		3.113	(149.711)	(96.595)
Less	TAX		0.629	0.000	0.290
	PROFIT /LOSS AFTER TAX		2.484	(149.711)	(96.885)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(225.997)	(76.286)	20.599
	BALANCE CARRIED TO THE B/S		(223.513)	(225.997)	(76.286)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	146.361	56.023	161.549
	TOTAL EARNINGS		146.361	56.023	161.549
	IMPORTS
		Raw Materials	0.000	0.000	5.533
		Stores & Spares	0.000	0.854	1.560
	TOTAL IMPORTS		0.000	0.854	7.093
	Earnings /loss Per Share (Rs.)		2.56	(154.44)	(99.95)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.18	(28.11)	(4.17)
Net Profit Margin (PBT/Sales)	(%)	0.23	(9.94)	(5.31)
Return on Total Assets (PBT/Total Assets}	(%)	0.20	(5.44)	(2.76)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.15)	(0.17)
Debt Equity Ratio (Total Liability/Networth)		1.15	1.59	4.79
Current Ratio (Current Asset/Current Liability)		5.95	10.92	4.58

LOCAL AGENCY FURTHER INFORMATION

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	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	--------
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
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	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

Note:

The Registered office of the company has been shifted from No. 8, Old No. 36A, B M Avenue, Chennai-28, Tamilnadu, India to present address w.e.f. 05.09.2008

REVIEW OF OPERATIONS:

The Spinning Industry, particularly in India, continues to face challenges year after year, either in the form of surplus or deficit of inputs or belated state announcements or natural havoc. During the year, the abundant availability of cotton in India and the momentum in weaving industry enabled the Indian spinning industry to achieve reasonable production. However the irregular power supply and excess yarn production escalated the cost of power and resulted in lower margins. The international yarn consumption scenario also remained grim on account of economic and monetary crisis in earlier years. In the field of textiles, your Company was able to achieve an improved performance during the current financial year after considering the disposal of 65,000 spindles in the earlier year (2009-10). Sustained efforts in international marketing also resulted in enhanced exports. Since the Company has disposed off all her Windmills during 2009-10 itself, there will not be any revenue from such segment. The Company has sold one of it property at Chennai during this year, which was converted into stock-in-trade in earlier years.

The Company has achieved an operating profit of Rs. 164.660 Millions during the year as compared to last years Profit of Rs. 229.474 Millions. The education in profit was on account of reduction in production capacity. Your Company was able to reduce its interest burden on term loan obligations with the help of inflows from sale of property at Chennai. After providing for current years depreciation, the Company was able to post a pre-tax profit of Rs.113 Millions on provision for taxes on book profits and deferred taxes, which is a statutory obligation, the results ended in a profit of Rs. 2.484 Millions only. Consequent to reduction in debt servicing obligations and diversification into spinning of blended yarns, the Company hopes to maintain the momentum generated in 2010-11 for years ahead.

Form 8

Corporate identity number of the company	U17111TZ1937PLC014821
Name of the company	SOUNDARARAJA MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Soundararaja Buildings, G.T.N. Salai, Dindigul - 624005, Tamilnadu, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	90297440
Type of charge	Immovable property Book Debts Movable Property
Particular of charge holder	State Bank of India, SME Branch, No. 1 Salai Road, Dindigul – 624001, Tamil Nadu, India Email: ruban.joseph@sbi.co.in
Nature of instrument creating charge	Supplemental Agr. of Hyp of Goods and Assets Form C-2A dt. 09-12-2011 and Letter Regarding the Grant of Individual Limits within the Overall Limit Form C5 Dt. 09-12-2011 - Vide Copy enclosed
Date of instrument Creating the charge	09.12.2011
Amount secured by the charge	Rs. 392.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Working Capital Loan - 3.75% above Base Rate, TLI and TL II - 3.30% above Base Rate, TL III - 3.75% above Base Rate, CTL IV - 4.75% above Base Rate Terms of Repayment For TL I, II and III as per existing schedules: For CTL IV - Four Quarterly Installment of Rs. 10.000 Millions in 2011-12 and 1 Installment of Rs. 6.600 Millions in 2012-13 Margin 25% on Current Assets for Working Capital Loans with a cover period of 60 days for Accounts Receivables; 25% for Bank Guarantee. Extent and Operation of the charge Exclusive Equitable Mortgage over Immovable Properties
Short particulars of the property charged	EM over vacant land (Plot No. 26, 27 and 28- 2320 Sq.ft.) at Indirani Nagar, Balakrishnapuram Village, Dindigul in the Name of SRML. EM over factory land (15.99 acres) and building (26086.69 sq.ft) situated at Sithargal Natham Village, Nillakottai Taluk in the name of SRML. EM over factory land situated at Sithargal Natham Village, Nilakottai Taluk measuring an extent of 28 acress and 8 cents belonging to SRML EM over company's(Unit A)Land(18 ac.29 cents) Bldg (2.75 lac sft) at Nagal Naickenpatti, i) SF 440/2,447/1 (10 ac.49 cents) ii)TS No. 1861/1 C (2 ac. 47 cents), iii) TS No. 1860 and 1861/2 (5 acres 33 cents) EM over Co's (unit B) land (21 acres 77 cents) Bldg (2.50 lac sft) at Nedungadu, Karaikal, R S Nos. 289/1, 158/1, 164/2, 153/2 and 3, 154/2 and 3, 150/3, 165/3B, 150/5&7, 161/8 165/8 and 157/15 EM over Company's administrative office land (2 acres 88 cents) and building (0.020 Million sq.ft.) at Dindigul Town, Municipal VI th ward in T.S. No. 1958A/2, 3, 4 and 5
Date of instrument modifying the charge	30.06.2009
Particulars of the present modification	Limits Revised as Cash Credit - Rs.192.000 Millions, TL-I - Rs. 58.000 Millions, TL-II - Rs, 19.600 Millions, TL-III - Rs, 35.300 Millions, CTL -Rs. 46.600 Millions, LC(Sub Limit of CC) - Rs. 20.000 Millions, BG (WC) 10.000 Millions, CEL Rs. 0.008 Million, FBDN (LC) Rs. 30.000 Millions. - Totalling Rs. 392.300 Millions.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Electrical Machinery

· Furniture and Fittings

· Vehicles

· Live Stock

AS PER WEBSITE

PROFILE:

Soundararaja Mills, Pioneers in the field of Textiles came into existence in the year 1937. Late Sri.G.T.Narayanaswamy Naidu laid the foundation of the mill with a great passion to produce Quality Yarn. From the beginning, they focused to produce fine quality yarn and made every effort to achieve this objective. Today they are the market leader and active worldwide exporter of Synthetic and cotton yarn. 

The success over the years further strengthens the slogan - "Soundararaja In pursuit of Excellence". Further, the Govt. of India has recognized them as a "Star Export House”. The expertise and quality workmanship has won them a notable place in the world of business. They are also into markets that go beyond the borders of India.

The Group Comprises of four independent production centers with an aggregate capacity of 1, 40,000 Ring, Twisting and Airjet Spindles. While the company has grown significantly through the years, the core values of serving the customers both ethically and responsibly has remained the same.

Production Facilities

The production facilities are spread over a build up area of 1,00,000 Square Meters with a workforce of 2000 employees, Producing 8.88 Million Kilograms of polyster and polyster viscose blended yarn and 4.50 Million Kilograms of cotton and polyester cotton blended yarn per annum.

Fact File

Soundararaja is India's Largest producer of Micro Denier Yarns and is one among the Largest in the Polyester/ Viscose segment. At Soundararaja all synthetic waste are entirely converted to "No dyeing guarantee yarn". Thereby, no waste is surplus in the environment.

Testing Facilities:

Quality is the way of life at Soundaraja, no compromise will be made in quality and nothing is left to chance. In conformity with industry norm worldwide the mill has established well equipped quality Assurance Lab for testing Cotton and Yarn. Each unit is equipped with Ultra Modern Scanning instruments such as Uster Fibroglow 380, Uster Unevenness Tester Model UT - 4, Uster Classimat Model IV, Premier Compusorter Model V and Mesdan Splicing Strength Tester.     

Process followed

• The team spares no pain in the selection of quality raw cotton available in the market
• Manual Segregation of contamination from bale cotton before issue to process
• In Blowroom, they are processing through Sieger contamination control system
• Everyday production is analyzed for any defects on both Weaving and Knitting Yarn
• All yarn are cleared by SIRO clearer fitted in most advanced Muratec 21C Autoconer
• All the cones are checked in Ultra Violet Lamp
• In house container stuffing facility available for Dye Cones
• Carton Packing as well as Pallet Packing is done based on customers needs
• They Establish the Quality overseas and in domestic markets by continuous modernization and improving production
• Good work practices and the dedication of the H.R personnel further ensures the same

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. 55.58
UK Pound	1	Rs. 69.73
Euro	1	Rs. 87.14

INFORMATION DETAILS

Report Prepared by :

ACH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--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	Yes
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.