MIRA INFORM REPORT

Report Date :

02.11.2012

IDENTIFICATION DETAILS

Name :	SANATHAN TEXTILES PRIVATE LIMITED
Registered Office :	192, Jamunalal Bajaj Street, Kolkata – 700 007, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.10.2005
Com. Reg. No.:	21-105863
Capital Investment / Paid-up Capital :	Rs.117.405 Millions
CIN No.: [Company Identification No.]	u17299wb2005ptc105863
TAN No.: [Tax Deduction & Collection Account No.]	cals17128g
PAN No.: [Permanent Account No.]	AAJCS6021P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Textile Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 3900000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A2 (Short Term bank Facilities)
Rating Explanation	Strong degree of safety. It carry low credit risk
Date	December 2011

Rating Agency Name	CARE
Rating	BBB+ (Long Term Bank Facilities)
Rating Explanation	Moderate degree of safety. It carry moderate credit risk
Date	December 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	192, Jamunalal Bajaj Street, Kolkata – 700 007, West Bengal, India
Tel. No.:	91-33-22686462
Fax No.:	Not Available
E-Mail :	pawancs.das@rediffmail.com jayant_bahety@sanathan.com
Website :	www.sanathan.com
Corporate Office :	B-6, Trade World, 1^st Floor, Kamla Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-66343312/ 12/ 14/ 30420121/ 22
Fax No.:	91-22-66663453
E-Mail :	contactus@sanathan.com
Factory :	Survey Plot No.187/4/1/2, Village Surangi, Dapada, Silvassa – 396 230, Dadra and Nagar Haveli, Union Territory, India

DIRECTORS

As on 14.09.2012

Name :

Mr. Paresh Kumar V. Dattani

Designation :

Director

Address :

Ridge Apartments, Ridge Road, Malabar Hills, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

24.07.1960

Date of Appointment :

10.10.2005

DIN No.:

00163591

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17299WB2005PTC105863	SANATHAN TEXTILES PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Active	NO
2	U17299WB2006PTC108821	UNIVERSAL TEXTURISERS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO

Name :

Mr. Dineshkumar Vrajdas Dattani

Designation :

Director

Address :

Bhaveshwar Sagar, 20, Nepean Sea Road, Mumbai – 400 036, Maharashtra, India

Date of Birth/Age :

27.07.1948

Date of Appointment :

10.10.2005

DIN No.:

00163701

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17219WB1987PTC043147	TEXCO FIBRES PRIVATE LIMITED	Director	16/10/1987	16/10/1987	-	Converted to LLP and dissolved	NO
2	U17118WB1984PTC038203	VAJUBHAI INVESTMENTS PRIVATE LIMITED	Director	01/04/2004	01/04/2004	-	Active	NO
3	U17299WB2005PTC105863	SANATHAN TEXTILES PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Active	NO
4	U17299WB2006PTC108821	UNIVERSAL TEXTURISERS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO
5	AAA-8629	TEXCO FIBRES LLP	Designated Partner	30/03/2012	30/03/2012	-	Active	NO

Name :

Mr. Ajay Kumar V. Dattani

Designation :

Director

Address :

F 70, Venus Apartment, R G Thadani Marg, Worli, Mumbai – 400 018, Maharashtra, India

Date of Birth/Age :

23.07.1967

Date of Appointment :

10.10.2005

DIN No.:

00163739

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17299WB2005PTC105863	SANATHAN TEXTILES PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Active	NO
2	U17299WB2006PTC108821	UNIVERSAL TEXTURISERS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO

Name :

Mr. Vallabhdas Vrajdas Dattani

Designation :

Director

Address :

214, Walkeshwar road, Sudama Buliding, 5^th Floor, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

22.08.1942

Date of Appointment :

17.04.2006

DIN No.:

00163794

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17118WB1984PTC038203	VAJUBHAI INVESTMENTS PRIVATE LIMITED	Director	28/11/1984	28/11/1984	-	Active	NO
2	U17219WB1987PTC043147	TEXCO FIBRES PRIVATE LIMITED	Director	14/10/1987	14/10/1987	-	Converted to LLP and dissolved	NO
3	U17299WB2006PTC108821	UNIVERSAL TEXTURISERS PRIVATE LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO
4	U17299WB2005PTC105863	SANATHAN TEXTILES PRIVATE LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO
5	AAA-8629	TEXCO FIBRES LLP	Designated Partner	30/03/2012	30/03/2012	-	Active	NO

Name :

Mr. Anilkumar Vrajdas Dattani

Designation :

Director

Address :

Sadhna Hillway, 5^th Floor, Gamadia Road, Mumbai – 400 026, Maharahstra, India

Date of Birth/Age :

20.04.1958

Date of Appointment :

10.10.2005

DIN No.:

00164175

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17219WB1987PTC043147	TEXCO FIBRES PRIVATE LIMITED	Director	28/02/1994	28/02/1994	-	Converted to LLP and dissolved	NO
2	U17118WB1984PTC038203	VAJUBHAI INVESTMENTS PRIVATE LIMITED	Director	31/12/1999	31/12/1999	-	Active	NO
3	U17299WB2005PTC105863	SANATHAN TEXTILES PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Active	NO
4	U17100MH1954NPL009223	BOMBAY YARN MERCHANTS ASSOCIATION AND EXCHANGE LIMITED	Director	19/09/2008	19/09/2008	-	Active	NO
5	AAA-8629	TEXCO FIBRES LLP	Designated Partner	30/03/2012	30/03/2012	-	Active	NO

MAJOR SHAREHOLDERS

As on 14.09.2012

Names of Shareholders	No. of Shares
Ajay Kumar V. Dattani	3274650
Anil Kumar V. Dattani	1367450
Dinesh Kumar V. Dattani	3376300
Paresh Kumar V. Dattani	3792100
Vajubhai Investment Private Limited, India	3000
Vallabhdas Dattani (HUF)	3000
Sonali Dattani	28000
Dinesh Kumar V. Dattani (HUF)	3000
Geeta Dattani	1500
Samir Dattani	1500
Sweta Dattani	1500
Jayshree Dattani	1500
Jyotsna Dattani	3000
Vallabhdas Dattani	3000
Anil Kumar Dattani (HUF)	23000
Paresh Kumar Dattani (HUF)	38000
Beena Dattani	45000
Mikesh Dattani	25000
Total	11990500

As on 14.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.03
Directors or relatives of directors	99.97
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Textile Yarn.

PRODUCTION STATUS (AS ON 31.03.2011)

Licensed Capacity (Capacity under the Industrial Enterpreneurs memorandum filed with the Government of India and duly acknowledged under the scheme of de-licensing notified by the Government)

Particulars	Unit	Licensed Capacity	Installed Capacity
Tex Yarn	MT	200000	27000
Polyester Oriented Yarn	MT	190000	28000
F.D.Y	MT	90000	8000
Cotton Yarn	MT	9600	4800

Particulars	Unit	Actual Production
Tex Yarn	Kg.	24357357.245
Twist Yarn	Kg.	3006036.61
Polyester Oriented Yarn/ F.D.Y	Kg.	36731871.467
Cotton Yarn	Kg.	3736132.052

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Bank of Baroda, Crowford Market Branch, Dada Manzil 67/69, Mohammed Ali Road, Mumbai – 400 003, Maharashtra, India

v Landesbank Baden – Wurttemberg, Am Hauptbahnof 2, Stuttgart-70173, Germany

Facilities :

Secured Loan	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans secured
Rupee term loans banks	935.521	791.678
Rupee term loans others	248.796	294.055
Working capital loans banks	752.506	321.214
Loans taken for vehicles	8.980	7.650
Total	1945.803	1414.597

Banking Relations :	--
Auditors :
Name :	K. Dattani and Company Chartered Accountants
Address :	37A, Bentick Street, 404, Bentinck Chambers, Kolkata – 700 069, West Bengal
PAN No.:	AAEFK2583L

CAPITAL STRUCTURE

As on 14.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
11990500	Equity Shares	Rs.10/- each	Rs.119.905 millions

As on 31.03.2011

Authorized Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11740500	Equity Shares	Rs.10/- each	Rs.117.405 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		117.405	117.405	117.405
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		859.440	536.623	406.471
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		976.845	654.028	523.876
LOAN FUNDS
1] Secured Loans		1945.803	1414.597	1074.005
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1945.803	1414.597	1074.005
DEFERRED TAX LIABILITIES		42.044	30.514	3.825
TOTAL		2964.692	2099.139	1601.706
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1559.481	1471.510	1203.376
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	838.643	401.809	175.600
	Sundry Debtors	349.525	110.189	157.062
	Cash & Bank Balances	165.427	72.850	33.202
	Other Current Assets	330.517	85.310	70.508
	Loans & Advances	170.852	101.922	57.884
Total Current Assets		1854.964	772.080	494.256
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	209.499	34.799	60.781
	Other Current Liabilities	108.875	52.778	0.000
	Provisions	131.379	57.018	35.431
Total Current Liabilities		449.753	144.595	96.212
Net Current Assets		1405.211	627.485	398.044
MISCELLANEOUS EXPENSES		0.000	0.144	0.286
TOTAL		2964.692	2099.139	1601.706

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4624.259	3123.141	2602.268
		Other Income		4.663	1.206
		TOTAL (A)	4624.259	3127.804	2603.474
Less	EXPENSES
		Raw Materials Consumed		2362.188	2065.241
		Manufacturing And Operating Costs		245.463	204.253
		Increase/Decrease in stock	4000.334	(3.681)	(22.226)
		Employment Costs		41.690	31.268
		Administrative, Selling and other Expenses		66.446	49.044
		Directors Remuneration		7.200	3.150
		Auditors Remuneration		0.225	0.188
		Loss on sale of Fixed Assets		0.027	--
		Preliminary Expenses W/off		0.142	0.142
		TOTAL	4000.334 (Including Financial Expenses)	2719.700	2331.060
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			408.104	272.414
Less	FINANCIAL EXPENSES (D)			53.090	49.893
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		623.925	355.014	222.521
Less/ Add	DEPRECIATION/ AMORTISATION (F)		205.350	164.550	97.150
	PROFIT BEFORE TAX (E-F) (G)		418.575	190.464	125.371
Less	TAX (H)		95.758	60.312	20.554
	PROFIT AFTER TAX (G-H) (I)		322.817	130.152	104.817
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods calculated on F.O.B. basis	314.980	60.351	52.248
	TOTAL EARNINGS		314.980	60.351	52.248
	IMPORTS
		Capital Goods	45.202	107.771	364.018
		Manufacturing Goods (Including raw – materials and spares)	263.093	35.050	111.720
	TOTAL IMPORTS		308.295	142.821	475.738
	Earnings Per Share (Rs.)		27.50	11.09	8.93

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.98	4.16	3.97
Net Profit Margin (PBT/Sales)	(%)	NA	6.09	4.81
Return on Total Assets (PBT/Total Assets}	(%)	12.26	8.48	7.38
Return on Investment (ROI) (PBT/Networth)		0.43	0.29	0.24
Debt Equity Ratio (Total Liability/Networth)		2.50	2.38	2.23
Current Ratio (Current Asset/Current Liability)		4.12	5.33	5.14

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----
22]	Litigations that the firm / promoter 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	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Bankers Charges Report as per Registry

Corporate identity number of the company	U17299WB2005PTC105863
Name of the company	SANATHAN TEXTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	192, Jamunalal Bajaj Street, Kolkata – 700 007, West Bengal, India E-Mail: pawancs.das@rediffmail.com
This form is for	Modification of charge
Charge identification number of the modified	10026551
Type of charge	Book Debts Immovable Property Movable Property Equitable Mortgage by Deposit of Title Deeds
Particular of charge holder	Bank of Baroda, Crowford Market Branch, Dada Manzil 67/69, Mohammed Ali Road, Mumbai – 400 003, Maharashtra, India E-Mail: crawfo@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	1. Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles. 2. Supplemental memorandum of entry for extension of mortgage by deposit of title deeds dated 07.04.2012 3. Sanction letter dated 31.03.2012
Date of instrument Creating the charge	07.04.2012
Amount secured by the charge	Rs.4959.300 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2% above Base Rate of the Bank per annum with monthly rests, on the Term Loan limit at the rate of 1.75% above Base Rate of the Bank per annum with monthly rests. Terms of Repayment 1. Non-Fund based and Cash Credit-12months 2. PFY Division:- Term Loan II-27 quarterly installments, Term Loan III and IV-28 quarterly installments, Cash Credit-12 months. 3. POY Division:- Term Loan II-30 quarterly installments, Term Loan III-27 quarterly installments, Term Loan IV-40 quarterly installment. 4. Cotton Division: - Term Loan I-32 quarterly installments, Term Loan II-32 quarterly installments. 5. CP Plant Division: - Term Loan I and II-32 quarterly installments. Margin Varies From 10% To 30% As Per Sanctioned Letter. Extent and Operation of the charge The charge is operative on current assets, movable fixed assets (except machinery financed by Landes Bank Baden-Wuerttemberg, Germany) and immovable property of the company as detailed in the instruments of charge dated 07.04.2012.
Short particulars of the property charged	Extension of equitable mortgage of flat no 9c, c wing, ridge apartments, ridge road, malabar hills, mumbai-400006. Extension of charge of all current and fixed assets both present & future of the company except machinery financed by Landesbank Baden-Wuerttemberg, Germany. Mortgage of property at 15^th floor admeasuring 542.96 sq. mtrs. (carpet area) alongwith 9 car parkings in Trade World Building D wing of Kamla Mill Compound, SB Marg, Lower Parel West, Mumbai 400013 Personal Guarantee of directors.
Date of latest modification prior to the present modification	19.09.2011
Particulars of the present modification	Revision of Credit Limit to Rs.4959.300 millions By Way of Grant Fresh Term Loan

Fixed Assets:-

v Land

v Building

v Electrical Installation

v Water Softening Plant

v Air Compressor

v Office Equipments

v Hoist lift

v Air Ventilators

v Auto Conner

v Blow Room

v Ring Frames

v Telecom Equipments

v Transformer

v Cone Testing Machine

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 rceived 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.53.77
UK Pound	1	Rs.86.77
Euro	1	Rs.69.71

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.