MIRA INFORM REPORT

Report Date :

19.11.2012

IDENTIFICATION DETAILS

Name :	COTTON BLOSSOM INDIA PRIVATE LIMITED
Registered Office :	Shed No.189, Tekic Tea Nagar, Sidco, Mudalipalayam, Tirupur – 641606,Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.06.2004
Com. Reg. No.:	18-011182
Capital Investment/ Paid-up Capital:	Rs.150.000 Millions
CIN No.: [Company Identification No.]	U18101TZ2004PTC011182
IEC No.:	3297024879
TAN No.: [Tax Deduction & Collection Account No.]	CMBC03683B
PAN No.: [Permanent Account No.]	AACCC5046R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture and Exporter of Knitted Garments.
No. of Employees:	6100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (23)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject was established as a partnership firm in the year 1997 and during 2001 it was reconstituted as a private limited company. It is a company having moderate track. There appears huge external borrowings recorded by the company The liquidity position of the company is weak. RBI has defaulted subject company, as on 31 March 2012. Business is however, active. Payments are slow and delayed. The company can be considered for business dealings on a safe and secured 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	CRISIL
Rating	D (Term Loan)
Rating Explanation	Default
Date	25.01.2012

Rating Agency Name	CRISIL
Rating	D (Cash Credit)
Rating Explanation	Default
Date	25.01.2012

Rating Agency Name	CRISIL
Rating	D (Bank Guarantee)
Rating Explanation	Default
Date	25.01.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

Borrowers’ Name :	COTTON BLOSSOM INDIA PRIVATE LIMITED
Address :	189, TEKIC Tea Nagar, SIDCO, Mudalipalayam, Tirupur – 641606, Tamilnadu, India
Name of Individual :	1. Joseph Anthony John 2. Milton Ambrose John 3. Philomena John
Name of Credit Grantors / Bank & Branch:	ICICI Bank, Triupur
Amount (Rs. In Millions) :	Rs.83.390 Millions

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.

INFORMATION PARTED BY

Name :	Mr. Shiv Kumar
Designation :	Account Manager
Contact No.:	91-9952432205
Date :	16.11.2012

LOCATIONS

Registered Office :	Shed No. 189, Tekic Tea Nagar, Sidco, Mudalipalayam, Tirupur – 641606, Tamilnadu, India
Tel. No.:	91-421-2374459 / 2374462
Fax No.:	91-421-2374891
E-Mail :	cotonblossom@cotonblossoms.org ho.accounts@cotonblossom.org pnrdudit@gmail.com
Website :	www.cotonblossoms.org
Area :	54000 sq.ft
Location :	Owned
Factory :	P2, 5^th Cross, SIPCOT Industrial Growth Center, Perundurai Erode – 638052, Tamilnadu, India
Tel. No.:	91-421-237446462/ 2374459/ 2374521/ 2375750
Fax No.:	91-421-2374891
E-Mail :	cotonblossom@satyam.net.in
Area :	60000 sq.ft
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Ms. Philomena John

Designation :

Director

Address :

D. NO.2/351, Mary Land, Kavundampalayam, Perutholuve Village, Tirupur – 641665, Tamilnadu, India

Date of Birth/Age :

03.09.1950

Qualification :

PUC

Date of Appointment :

14.06.2004

Din No.:

00608485

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	U18101TZ2004PTC011182	COTTON BLOSSOM INDIA PRIVATE LIMITED	Director	14/06/2004	14/06/2004	-	Active	NO
2	U17111TZ2005PTC012137	JAYANTHI GARMENTS AND TEXTILES PRIVATE LIMITED	Director	10/08/2006	10/08/2006	-	Active	NO
3	U51909TZ2006PTC012509	GANGOTRI MERCANTILE PRIVATE LIMITED	Additional director	02/07/2007	02/07/2007	-	Active	NO
4	U15400KL2009PTC024683	ATHULYA FOODS PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO

Name :

Mr. Milton Ambrose John

Designation :

Managing Director

Address :

100, AB Tekkekara House, Marappampalayam Pudur, Pongupalayam, Tirupur – 641666,Tamilnadu, India

Qualification :

PUC

Date of Appointment :

14.06.2004

Din No.:

01752925

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	U91110TZ2004PTC010992	TIRUPUR EXPORTERS SOURCE CONSORTIUM PRIVATE LIMITED	Director	18/02/2004	18/02/2004	-	Under Process of Striking off	NO
2	U18101TZ2004PTC011182	COTTON BLOSSOM INDIA PRIVATE LIMITED	Managing director	14/06/2004	14/06/2004	-	Active	NO
3	U51909TZ2006PTC012509	GANGOTRI MERCANTILE PRIVATE LIMITED	Managing director	25/01/2006	25/01/2006	-	Active	NO
4	U17111TZ2005PTC012137	JAYANTHI GARMENTS AND TEXTILES PRIVATE LIMITED	Managing director	10/08/2006	10/08/2006	-	Active	NO
5	U15400KL2009PTC024683	ATHULYA FOODS PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO

Name :

Mr. Joseph Anthony John

Designation :

Director

Address :

D. No. 2/337 A, Veppangadu, Mudalipalayam Post, Tirupur – 641606, Tamilnadu, India

Qualification :

PUC

Date of Appointment :

14.06.2004

Din No.:

01753027

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	U18101TZ2004PTC011182	COTTON BLOSSOM INDIA PRIVATE LIMITED	Director	14/06/2004	14/06/2004	-	Active	NO
2	U17111TZ2005PTC012137	JAYANTHI GARMENTS AND TEXTILES PRIVATE LIMITED	Director	10/08/2006	10/08/2006	-	Active	NO
3	U15400KL2009PTC024683	ATHULYA FOODS PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Shiv Kumar
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Philomena	8411840
Milton Ambrose John	3011200
Joseph Anthony John	3523200
Jopyce Elizabeth john	13440
Shakira Wahab	13440
Rosely Milton	13440
Smitha Joseph	13440
Total	15000000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Exporter of Knitted Garments.

Products :

• Garments
• Fabric Processing
• Yarn

Product Description	Knitted Garments
Item Code No. (ITC Code)	61060000

Products :

Exports :

Products :

Knitted Garments

Countries :

· Europe

· USA

Terms :

Selling :

Cash/Credit

Purchasing :

Cash/Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Garments (Garment Division)	Nos	--	--	8097175
Fabric Processing (Dying Division)	Kgs	10675	8500	1592168
Yarn (Spinning Division)	Kgs	25000	18000	2348753

GENERAL INFORMATION

Customers :

Wholesalers/ Retailers

No. of Employees :

6100 (Approximately)

Bankers :

· Bank of Maharashtra, 488, P N Road, Tirupur – 641601, Tamilnadu, India

· Oriental Bank of Commerce, Tirupur Branch, No.8, Bharathi Street, Valipalayam, Triupur – 641601, Tamilnadu, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Rupee term loans banks secured	574.287	697.618
Working capital loans banks secured	59.282	9.780
Deposits secured	35.516	0.000
Hire purchase installment payable secured	9.618	6.734
Other debt secured	600.429	421.139
Interest accrued due other debt secured	6.492	6.586
	1285.624	1141.857

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Loans directors unsecured	47.104	20.817
Total	47.104	20.817

Banking Relations :	--
Auditors :
Name :	P.N. Raghavendra Rao and Company Chartered Accountant
Address :	No. 23/2, Viswa Paradise Apartments, 2^nd Floor, Kalidas Road, Ram Nagar, Coimbatore – 641009
Tel. No.:	91-422-2232440/ 2236997/ 2232129/ 2233288
Fax No.:	91-422-2230375
Pan No.:	AABFP6432E
Subsidiaries :	Gangotri Mercantile Private Limited CIN No. U51909WB1996PTC078147 Jayanthi Garments and textiles Private Limited CIN No. U17111TZ2005PTC012137

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 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		150.000	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		262.874	230.529	178.197
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		412.874	380.529	328.197
LOAN FUNDS
1] Secured Loans		1285.624	1141.857	1097.404
2] Unsecured Loans		47.104	20.817	0.000
TOTAL BORROWING		1332.728	1162.674	1097.404
DEFERRED TAX LIABILITIES		76.837	88.683	78.915
TOTAL		1822.439	1631.886	1504.516
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1184.513	1175.846	1112.715
Capital work-in-progress		13.453	30.400	0.000
INVESTMENT		6.872	5.372	3.754
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	560.460	331.139	286.735
	Sundry Debtors	145.111	116.036	85.662
	Cash & Bank Balances	65.741	47.148	101.312
	Other Current Assets	69.700	79.777	0.542
	Loans & Advances	90.732	118.755	140.708
Total Current Assets		931.744	692.855	614.959
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	203.350	150.276	118.986
	Other Current Liabilities	104.261	65.273	63.256
	Provisions	6.532	57.038	44.670
Total Current Liabilities		314.143	272.587	226.912
Net Current Assets		617.601	420.268	388.047
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1822.439	1631.886	1504.516

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales		1249.457	1241.335
		Other Income		191.030	112.019
		TOTAL (A)	1627.342	1440.487	1353.354
Less	EXPENSES
		Increase/decrease in stock		57.204	(35.714)
		Materials consumption		478.147	495.716
		Manufacturing expense		256.070	219.368
		power and fuel		0.000	40.548
		salaries and wages		285.682	214.602
		Repairs and maintenance		0.000	32.920
		Administrative Expenses		54.998	43.628
		Selling and distribution expenses		27.942	27.989
		TOTAL (B)	1362.747	1160.043	1039.057
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		264.595	280.444	314.297
Less	FINANCIAL EXPENSES (D)		121.477	111.027	117.774
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		143.118	169.417	196.523
Less/ Add	DEPRECIATION/ AMORTISATION (F)		118.367	109.378	102.758
	PROFIT BEFORE TAX (E-F) (G)		24.751	60.039	93.765
Less	TAX (I)		(9.819)	23.738	34.200
	PROFIT AFTER TAX (G-I) (J)		34.570	36.301	59.565
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.636	26.109	25.318
Less	APPROPRIATIONS
		Transfer to General Reserve		40.000	50.000
		Dividend	-	7.500	7.500
		Tax on Dividend		1.274	1.274
	BALANCE CARRIED TO THE B/S		48.206	13.636	26.109
	EARNINGS IN FOREIGN CURRENCY		1178.525	1020.275	1226.812
	IMPORTS
	Raw Materials			114.060	27.894
	Capital Goods and Spares				53.504
	TOTAL IMPORTS			114.060	81.398
	Earnings Per Share (Rs.)		2.31	2.42	3.97

Particulars	31.03.2012
Sales Turnover (Approximately)	1740.000

Expected Sales (2012-2013) : Rs.1850.000 Millions

The above information has been parted by Mr. Shiv

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.12	2.52	4.40
Net Profit Margin (PBT/Sales)	(%)	NA	4.80	7.55
Return on Total Assets (PBT/Total Assets}	(%)	1.17	3.21	5.42
Return on Investment (ROI) (PBT/Networth)		0.06	0.15	0.28
Debt Equity Ratio (Total Liability/Networth)		3.99	3.77	4.03
Current Ratio (Current Asset/Current Liability)		2.97	2.54	2.71

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	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	No
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

REVIEW OF OPERATIONS:

In the financial year 2010-2011 the company has achieved a turnover of Rs.1427.100 Millions on an increase of 14% compared to the previous financial year. However the profitability of the company was affected by increase of power cost on account of severe power cuts prevailing in the state and rise in the freight charges etc.

However, the company on a consolidated basis could report healthy earnings and positive results.

The inherent unique operating model such as in-house dyeing facility could mitigate the current pollution control crisis faced by the garment industry.

The Company as in the past continues to have strong demands for its products. The Directors are optimistic of positive working results in the coming years.

FUTURE OUTLOOK

The Company has a well planned strategy for sustained growth with focus on premium products to accelerate its revenues and margins.

The Company expects good profitable commercial performance in the year to come.

Further by optimizing the capacity utilizations across all the key divisions the company could achieve new production levels.

FINANCE:

The Company has been regular in meeting its obligation towards payment of Principal and Interest to Banks

FORM 8

Corporate identity number of the company	U18101TZ2004PTC011182
Name of the company	COTTON BLOSSOM INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shed No.189, Tekic Tea Nagar, Sidco, Mudalipalayam, Tirupur – 641606,Tamilnadu, India Email: ho.accounts@cotonblossom.org
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10024687
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Oriental Bank of Commerce, Tirupur Branch, No.8, Bharathi Street, Valipalayam, Triupur – 641601, Tamilnadu, India Email: bm0558@obc.co.in
Nature of instrument creating charge	01. Agreement of Term Loan - Loan Doc - 6
Date of instrument Creating the charge	14.05.2012
Amount secured by the charge	Rs. 1638.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: WCTL (Fresh ) of Rs.50.000 Millions - 4.5% above BR ( present BR of the bank is 10.65% ) which works out to 15.16% at present with monthly rests subject to changes in BR/spread from time to time. Term of Payment: Working Capital Limits - repayable on demand Term Loans (existing ) as per repayment schedules agreed from time to time with the bank. WCTL (Fresh ) of Rs.50.000 Millions - 37 months ( monthly Rs.5.47 Millions from June 12 to June 13, monthly Rs.1.000 Millions from July 13 to Sept 14 and monthly Rs.3.100 Millions from Oct 14 to June 15. Margin PC, FDBP, FUDBP, FLC - 10% WCTL - NA Extent and operation of the charge first charge on all stocks, raw materials, semi finished and finished goods, stores and spares not related to plant and mahinery (consumable stores and spares) bills receivable, book debts and all other movables of the borrowers (excluding such movables as are permitted by the bank from time to time) including documents of title to goods and other assets, such as outstanding monies, receivable by way of cash, described in more in agreement by the company with the bank and bank of Maharashtra
Short particulars of the property charged (Including location of the property)	charge over the current assets of the company, plant and machineries and other assets created out of the bank finance with BOM charge over the immovable properties of the company deposited at bank of Maharashtra acting for itself and for oriental bank of commerce as per supplemental memorandum of deposit of title deeds executed earlier modifications and agreement of term loan executed with the bank now
Date of last modification prior to the present modification	24.02.2011
Particulars of the present modification	The overall credit limits extended to the company by both the bankers( Oriental Bank of Commerce Rs.846.000 Millions and Bank of Maharashtra -Rs.792.100 Millions on consortium arrangement basis ) stand at Rs.1638.100 Millions. The modification necessitated in view of the sanction of Rs.50.000 Millions ( its share consortium limit ) by OBC and no change in other credit limits . Other terms and conditions remain same and unchanged

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Vehicles
• Furniture
• Office Equipment
• Other Equipment

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.54.99
UK Pound	1	Rs.87.21
Euro	1	Rs.70.22

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		23

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.