MIRA INFORM REPORT

Report Date :

07.11.2012

1. Summary Information

		Country	India
Company Name	J M COMMODITIES LIMITED	Principal Name 1	Mr. Sanjay Mohanlal Jatia
Status	Moderate	Principal Name 2	Mr. Mohanlal Ramgopal Jatia
		Registration #	11-020978
Street Address	701, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Established Date	01.02.1979	SIC Code	--
Telephone#	91-22-22834838	Business Style 1	Trader
Fax #	91-22-22851086	Business Style 2	Importer
Homepage	www.jmcommodities.com	Product Name 1	Yarn
# of employees	Not Available	Product Name 2	Polymers
Paid up capital	Rs. 50,000,000/-	Product Name 3	--
Shareholders	Bodies corporate - 93.12%, Directors or relatives of directors - 6.86%, Other top fifty shareholders - 0.02%	Banking	Standard Chartered Bank
Public Limited Corp.	No	Business Period	33 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	B (31)
Related Company
Relation	Country	Company Name	CEO
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	235,048,000	Current Liabilities	157,540,000
Inventories	59,907,000	Long-term Liabilities	63,151,000
Fixed Assets	15,451,000	Other Liabilities	3,933,000
Deferred Assets	0,000	Total Liabilities	224,624,000
Invest& other Assets	1,238,000	Retained Earnings	37,020,000
		Net Worth	87,020,000
Total Assets	311,644,000	Total Liab. & Equity	311,644,000
Total Assets (Previous Year)	403,657,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	1,046,956,000	Net Profit	12,266,000
Sales(Previous yr)	884,303,000	Net Profit(Prev.yr)	18,803,000

IDENTIFICATION DETAILS

Name :	J M COMMODITIES LIMITED (w.e.f.09.04.2012)
Formerly Known As :	J M TEXTILES LIMITED J.M. TEXTILES PRIVATE LIMITED
Registered Office :	701, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.02.1979
Com. Reg. No.:	11-020978
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U17120MH1979PLC020978
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ11403A
PAN No.: [Permanent Account No.]	AAACJ0264E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader and Importer of Yarn and Polymers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 340000
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 some 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 – 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

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 :	701, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22834838 / 22843825
Fax No.:	91-22-22851086 / 22851086
E-Mail :	ramgopal@vsnl.com srbairagra@jmcommodities.com
Website :	http://www.jmcommodities.com
Singapore Office :	1, Shenton Way, 10-01, Singapore 068 803
Tel. No.:	91-65-63363700
Fax No.:	91-65-63361400

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Sanjay Mohanlal Jatia

Designation :

Managing director

Address :

81, Jatia Sadan, Worli Sea Face, Worli, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

21.08.1967

Qualification :

Graduate

Date of Appointment :

21.12.1987

DIN No.:

00913405

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	L17110MH1981PLC024145	RAMGOPAL POLYTEX LIMITED	Director	31/03/1986	31/03/1986	-	Active	NO
2	U17120MH1979PLC020978	J M COMMODITIES LIMITED	Managing director	21/12/1987	21/12/1987	-	Active	NO
3	U25209MH1969PLC014452	QUALITY PLASTICS LIMITED	Director	14/10/1988	14/10/1988	-	Amalgamated	NO
4	L25204PN1974PLC021891	ARISTOCRAT LUGGAGE LIMITED	Director	14/10/1988	14/10/1988	-	Amalgamated	NO
5	L67120MH1995PLC085704	STARCOM INFORMATION TECHNOLOGY LIMITED	Director	17/02/1995	17/02/1995	08/04/2008	Active	NO
6	U17120MH1979PLC020952	RAMGOPAL TEXTILES LIMITED	Director	21/10/2002	21/10/2002	-	Active	NO
7	U67120MH1995PTC089332	NOSTALGIA FINVEST PRIVATE LIMITED	Director	21/10/2002	21/10/2002	08/03/2008	Active	NO
8	U65990MH1980PTC022255	RAMGOPAL INVESTMENT AND TRADING COMPANY PRIVATE LIMITED	Director	21/10/2002	21/10/2002	-	Active	NO
9	U17120MH1981PLC024146	RAMGOPAL SYNTHETICS LIMITED	Director	21/10/2002	21/10/2002	-	Active	NO
10	U17116MH1980PTC023469	TARAPUR SYNTHETICS PRIVATE LIMITED	Director	21/10/2002	21/10/2002	-	Active	NO
11	U17110MH1985PTC036679	TARAPUR VASTRA UDYOG PRIVATE LIMITED	Director	21/10/2002	21/10/2002	-	Active	NO
12	U25200MH1972PLC015716	ARISTROCRAT MERKETING LIMITED	Additional director	30/09/2007	30/09/2007	-	Active	NO
13	AAA-8477	HELIOS COMMODITIES LLP	Designated Partner	22/03/2012	22/03/2012	-	Active	NO

Name :

Mr. Mohanlal Ramgopal Jatia

Designation :

Director

Address :

81, Jatia Sadan, Worli Sea Face, Worli, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

13.10.1938

Qualification :

Graduate

Date of Appointment :

01.02.1979

DIN No.:

01598982

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	U17120MH1979PLC020978	J M COMMODITIES LIMITED	Director	01/02/1979	01/02/1979	-	Active	NO
2	L17110MH1981PLC024145	RAMGOPAL POLYTEX LIMITED	Director	28/03/1981	28/03/1981	-	Active	NO
3	L25204PN1974PLC021891	ARISTOCRAT LUGGAGE LIMITED	Director	14/10/1988	14/10/1988	-	Amalgamated	NO
4	U25209MH1969PLC014452	QUALITY PLASTICS LIMITED	Director	14/10/1988	14/10/1988	-	Amalgamated	NO
5	L99999MH1983PLC029186	ESSJAY SYNTHETICS LIMITED	Director	07/05/1994	07/05/1994	-	Active	YES
6	L67120MH1995PLC085704	STARCOM INFORMATION TECHNOLOGY LIMITED	Director	17/02/1995	17/02/1995	08/04/2008	Active	NO
7	U17110MH1985PTC036679	TARAPUR VASTRA UDYOG PRIVATE LIMITED	Director	23/05/2003	23/05/2003	-	Active	NO
8	U17116MH1980PTC023469	TARAPUR SYNTHETICS PRIVATE LIMITED	Director	23/05/2003	23/05/2003	-	Active	NO
9	U17120MH1981PLC024146	RAMGOPAL SYNTHETICS LIMITED	Director	03/10/2006	03/10/2006	-	Active	NO
10	U51109MH2009PTC197085	SSZ COMMODITIES PRIVATE LIMITED	Director	24/12/2010	24/12/2010	29/06/2012	Active	NO
11	AAA-1736	GREENLAND HOLDINGS LLP	Designated Partner	05/07/2010	05/07/2010	-	Active	NO

Name :

Sarwan Kumar Lihala

Designation :

Additional director

Address :

Bungalow No. 7, Magnum Tower, Lokhandwala Complex, 4 Bungalows, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

26.03.1962

Qualification :

Graduate

Date of Appointment :

31.10.2009

DIN No.:

02803520

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	Company/ LLP Status	Defaulting status
1	L17110MH1981PLC024145	RAMGOPAL POLYTEX LIMITED	Additional director	01/09/2009	01/09/2009	Active	NO
2	U17120MH1979PLC020978	J M COMMODITIES LIMITED	Additional director	31/10/2009	31/10/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Mohanlal Ramgopal Jatia	3200
Ramgopal Investment and Trading Company Private Limited, India	149600
Sanjay Mohanlal Jatia	400
Sudhir M. Jatia	300
Sharad S. Jatia	100
Sanjay M. Jatia	12500
Sanjay M. Jatia	14400
Sanjay M. Jatia	3500
Ramgopal Synthetics Limited, India	46000
Ramgopal Textiles Limited, India	120000
Tarapur Synthetics Private Limited, India	150000
Total	500000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	93.12
Directors or relatives of directors	6.86
Other top fifty shareholders	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Yarn and Polymers.

Products :

ITC Code	Product Descriptions
54024400	Spandex Yarn

Plastic :

Ø HDPE
PP
LLDP
PBC

Textile Raw Material :

Ø 100% Polyester spurn yarn
POY
PFY
Spandex Yarn

Viscose Rayon Filament Yarn

Steel and Metal :

Ø Iron Ore
Pig Iron
Ferroy Alloys
Deformed Bars
Wire Rods
Round Bars
HR Coils
CR Coils
Galvanised Coils
Seamless Pipes
Stainless Steel Pipes
Steel Billets

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Standard Chartered Bank, SME Credit, 23-25 M G Road, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	12.547	52.330
Loans taken for vehicles secured	9.594	0.000
Total	22.141	52.330
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans others unsecured	37.017	54.131
Interest accrued due other debt unsecured	3.993	7.085
Total	41.010	61.216

Banking Relations :	--
Auditors :
Name :	Rungta and Associates Chartered Accountants
Address :	504, Rainbow Chambers, S V Road, Kandivali West, Mumbai – 400067, Maharashtra, India
Tel. No.:	91-22-28625153 / 5129
Mobile No.:	91-9820354138
E-Mail :	pawankumar.rungta@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	ADHPR0232P

CAPITAL STRUCTURE

AFTER 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs. 100/- each	Rs. 50.000 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		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		37.020	24.753	6.540
4] (Accumulated Losses)		0.000	0.000	(0.590)
NETWORTH		87.020	74.753	55.950
LOAN FUNDS
1] Secured Loans		22.141	52.330	62.407
2] Unsecured Loans		41.010	61.216	112.631
TOTAL BORROWING		63.151	113.546	175.038
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		150.171	188.299	230.988
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.451	2.531	2.844
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.238	4.494	21.245
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.907	176.870	122.671
	Sundry Debtors	193.292	187.363	132.771
	Cash & Bank Balances	16.035	16.211	16.079
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.721	16.188	56.745
Total Current Assets		294.955	396.632	328.266
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	154.374	193.127	106.588
	Other Current Liabilities	3.166	15.358	11.940
	Provisions	3.933	6.873	2.839
Total Current Liabilities		161.473	215.358	121.367
Net Current Assets		133.482	181.274	206.899
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		150.171	188.299	230.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1046.956	884.303	588.215
		Other Income	15.437	26.201	5.498
		TOTAL (A)	1062.393	910.504	593.713
Less	EXPENSES
		Consumption materials changes inventories	116.963	(54.198)	0.000
		Manufacturing service costs	863.067	896.290	635.544
		Employee related expenses	2.329	1.655
		Administrative selling other expenses	50.594	25.778	32.966
		Increase/ (Decrease) in stocks	0.000	0.000	(89.432)
		TOTAL (B)	1032.953	869.525	579.078
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29.440	40.979	14.635
Less	FINANCIAL EXPENSES (D)		13.136	17.397	10.359
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.304	23.582	4.276
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.678	0.337	0.313
	PROFIT BEFORE TAX (E-F) (G)		15.626	23.245	3.963
Less	TAX (H)		3.360	4.442	1.293
	PROFIT AFTER TAX (G-H) (I)		12.266	18.803	2.670
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.213	(0.590)	(3.260)
	BALANCE CARRIED TO THE B/S		30.479	18.213	(0.590)
	Earnings Per Share (Rs.)		24.53	37.61	5.34

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.15	2.07	0.45
Net Profit Margin (PBT/Sales)	(%)	1.49	2.63	0.67
Return on Total Assets (PBT/Total Assets}	(%)	5.03	5.82	1.20
Return on Investment (ROI) (PBT/Networth)		0.18	0.31	0.07
Debt Equity Ratio (Total Liability/Networth)		2.58	4.40	5.30
Current Ratio (Current Asset/Current Liability)		1.83	1.84	2.70

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	No

Note: The registered address of the company has been shifted from 401, Arcadia Nariman Point, Mumbai – 400021, Maharashtra, India to the present w.e.f.01.01.2011

FINANCIAL RESULTS:

During the year, the total income of the Company amounted to Rs.1062.391 Millions compared to Rs.910.502 Millions in the previous year. After providing Depreciation and Tax, Profit for the year was Rs.12.266 Millions as against Rs.18.803 Millions in the previous year.

OPERATIONS:

During the year, the turnover has increased considerably from Rs. 884.303 Millions to Rs.1046.955 Millions. The Company mainly concentrated on trading activities during the year. The company mainly imported Steel, Spandex yarn, plastic etc., and sold in the local market. The turnover has increased considerably due to improvement in the Indian Economy. The management of the Company is hopeful that the trend will improve further and hopeful of making better profits in future years.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

a) Guarantees issued by the Bank in favour of Customs Authorities Rs. Nil (Previous Year Rs. 0.991 Million).

b) Disputed Sales Tax dues re-imbursable to companys consignment agent Rs. 0.644 Million (excluding interest) (Previous Year Rs. 0.644 Million).

c) On account of liabilities which may arise due to non-compliance with the provisions of certain fiscal statutes. - Amount unascertainable.

d) Dismissal of certain workers for misconduct by participating in strike declared to be illegal and prohibited by the State Government under Industrial Dispute Act, 1948, the Company has filed an application with the Industrial Tribunal for approval of the said dismissal. Amount unascertainable.

FIXED ASSETS:

Ø Computers

Ø Office Equipments

Ø Motor Car

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 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. 54.60
UK Pound	1	Rs. 87.31
Euro	1	Rs. 69.86

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.