MIRA INFORM REPORT

Report Date :

22.11.2012

IDENTIFICATION DETAILS

Name :	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED
Registered Office :	Tirumala Complex,1st Floor, 4/2, Brodipet, Guntur – 522002, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.04.2005
Com. Reg. No.:	01-045993
Capital Investment / Paid-up Capital :	Rs. 122.500 Millions
CIN No.: [Company Identification No.]	U17110AP2005PTC045993
TIN No.:	28390225189
PAN No.: [Permanent Account No.]	AAICS9427J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarns
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Reserve of the company appears to be insufficient. And external borrowing is more than networth. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loan : (ICRA) D
Rating Explanation	This rating are in default or are expected to be in default soon.
Date	February 2012

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 :	Tirumala Complex,1st Floor, 4/2, Brodipet, Guntur – 522002, Andhra Pradesh, India
Tel. No.:	91-863-2234599 / 6535259
Fax No.:	91-863-2234589
E-Mail :	dsc_director@rediffmail.com md@slpspinningmills.com ed@slpspinningmills.com gm@slpspinningmills.com accounts@slpspinningmills.com marketing@slpspinningmills.com stores@slpspinningmills.com
Website :	http://www.slpspinningmills.com
Factory :	Chebrolu Donka (towards Tenali) Narakoduru, Chebrolu, Guntur – 522212, Andhra Pradesh, India
Tel. No.:	91-863-2534402
Fax No.:	91-863-2534401

DIRECTORS

AS ON 09.09.2011

Name :

Venkata Seshagiri Rao Tripuramallu

Designation :

Chairman

Address :

D. No. 7-1-46, Station Road, Sattenapalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

15.06.1942

Date of Appointment :

26.04.2005

DIN No.:

00052909

Name :

Mr. Venkata Apparao Kothuri

Designation :

Vice Chairman

Address :

D. No. 3-25-6, Plot No. B1-52 Lane, Ravindra Nagar, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

12.10.1946

Date of Appointment :

26.04.2005

DIN No.:

00052870

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	U63022AP1997PTC027498	POPULAR COLD STORAGE PRIVATE LIMITED	Director	01/08/1999	01/08/1999	Active	NO
2	U01135AP2004PTC044850	VIJAYADURGA AGRO FARMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	Active	NO
3	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
4	U63020AP2010PTC070266	VASAVIRATNA COLD STORAGE PRIVATE LIMITED	Managing director	03/09/2010	01/09/2010	Active	NO

Name :

Mr. Surya Prakasa Rao Desu

Designation :

Managing director

Address :

D. No. 5-62-9a, 6/19, Brodipet, Guntur – 522002, Andhra Pradesh, India

Date of Birth/Age :

05.08.1957

Date of Appointment :

26.04.2005

DIN No.:

00052877

Name :

Mr. Venkata Bhaskara Rao Kunala

Designation :

Director

Address :

D. No. 3-11-9, Vasavi Nilayam, Old Pattabhipurma, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

26.08.1966

Date of Appointment :

26.04.2005

DIN No.:

00052927

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	U01135AP2004PTC044850	VIJAYADURGA AGRO FARMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	Active	NO
2	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
3	U63020AP2010PTC070266	VASAVIRATNA COLD STORAGE PRIVATE LIMITED	Director	01/09/2010	01/09/2010	Active	NO

Name :

Mr. Surya Prakasa Rao Tadikamalla

Designation :

Director

Address :

D. No. 3-14-24, Old Pattabhipuram, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

12.06.1952

Date of Appointment :

26.04.2005

DIN No.:

00052860

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	U63022AP1992PTC014663	SIVASAI COLD STORAGE PRIVATE LIMITED	Managing director	11/08/1992	11/08/1992	Active	NO
2	U24230AP1994PTC019088	MITOTECH PHARMACEUTICALS PRIVATE LIMITED	Director	05/01/1995	05/01/1995	Active	NO
3	U74999AP1996PTC024486	SAI SIVAM COLD STORAGE PRIVATE LIMITED	Managing director	01/07/1996	01/07/1996	Active	NO
4	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
5	U63022AP2005PTC046100	SARWANI COLD STORAGE PRIVATE LIMITED	Whole-time director	04/05/2005	04/05/2005	Active	NO
6	U63020AP2010PTC071486	UMAMAHESWARA COLD STORAGE PRIVATE LIMITED	Director	02/12/2010	02/12/2010	Active	NO
7	U63022AP2012PTC081522	SRAWANI COLD STORAGE PRIVATE LIMITED	Director	21/06/2012	18/06/2012	Active	NO

Name :

Mr. Siva Sankara Rao Karumuri

Designation :

Director

Address :

Plot No. 11, Kanchan Towers, Pattabhipuram, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

15.01.1960

Date of Appointment :

26.04.2005

DIN No.:

00052864

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	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
2	U63022AP1997PTC027498	POPULAR COLD STORAGE PRIVATE LIMITED	Director	03/10/2009	03/10/2009	Active	NO

Name :

Mr. Ambareesh Tripuramallu

Designation :

Director

Address :

D. No. 7-1-46, Station Road, Sattenapalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

01.07.1966

Date of Appointment :

26.04.2005

DIN No.:

00052889

Name :

Venkata Durga Malleswara Rao Tripuramallu

Designation :

Director

Address :

D. No. 7-1-46, Station Road, Sattenpalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

17.06.1965

Date of Appointment :

26.04.2005

DIN No.:

00052903

Name :

Venkataramana Sikhakolanu

Designation :

Whole-time director

Address :

D. No. 7-1-18, Station Road, Sattenpalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

18.03.1979

Date of Appointment :

26.04.2005

DIN No.:

01681021

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 09.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	33.29
Other top fifty shareholders	66.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarns

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Spindles	No. of Kgs	24960	24960	2111195

Note: The Installed Capacity are as per certification given by the management

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Specialised Commercial Branch, Kannavarithota, Guntur – 522004, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	234.477	227.249
Working capital loans banks secured	142.424	77.609
Loans taken for vehicles secured	0.724	0.334
Total	377.625	305.192
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	5.354	36.347
Total	5.354	36.347

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	10-3-21, Sambasivapet, Guntur, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AADFB8032G

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
700,000	Equity Shares	Rs. 100/- each	Rs. 70.000 Millions
525,000	Preferences Shares	Rs. 100/- each	Rs. 52.500 Millions
	Total		Rs. 122.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
700,000	Equity Shares	Rs. 100/- each	Rs. 70.000 Millions
525,000	Preferences Shares	Rs. 100/- each	Rs. 52.500 Millions
	Total		Rs. 122.500 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		122.500	70.000	67.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		77.642	38.227	21.538
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		200.142	108.227	89.038
LOAN FUNDS
1] Secured Loans		377.625	305.192	128.796
2] Unsecured Loans		5.354	36.347	11.172
TOTAL BORROWING		382.979	341.539	139.968
DEFERRED TAX LIABILITIES		38.144	24.506	13.652
TOTAL		621.265	474.272	242.658
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		361.396	343.561	190.982
Capital work-in-progress		11.311	9.904	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.970	53.954	20.619
	Sundry Debtors	37.631	9.940	13.701
	Cash & Bank Balances	23.536	5.918	2.115
	Other Current Assets	13.378	6.621	11.936
	Loans & Advances	48.829	84.560	49.472
Total Current Assets		323.344	160.993	97.843
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.782	29.328	8.488
	Other Current Liabilities	1.267	0.651	33.472
	Provisions	14.737	10.207	4.207
Total Current Liabilities		74.786	40.186	46.167
Net Current Assets		248.558	120.807	51.676
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		621.265	474.272	242.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	497.345	208.367	165.313
		Other Income	13.020	8.198	12.884
		TOTAL (A)	510.365	216.565	178.197
Less	EXPENSES
		Raw material consumed		109.059	90.690
		Payment and benefit to employees		7.588	4.442
		Manufacturing, Selling, Administrative and Other Expenses		33.060	29.423
		Taxes and Licenses		0.533	0.205
		Decrease of stocks		1.585	0.061
		TOTAL (B)	442.874	151.825	124.821
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial and Depreciation Expenses)	64.740	53.376
Less	FINANCIAL EXPENSES (D)			20.687	18.920
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			44.053	34.456
Less/ Add	DEPRECIATION/ AMORTISATION (F)			10.510	10.121
	PROFIT BEFORE TAX (E-F) (G)		67.491	33.543	24.335
Less	TAX (H)		27.446	16.855	11.166
	PROFIT AFTER TAX (G-H) (I)		40.045	16.688	13.169
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		38.226	21.538	8.369
	BALANCE CARRIED TO THE B/S		N.A.	38.226	21.538
	IMPORTS
		Capital Goods	11.912	37.975	0.000
	Earnings Per Share (Rs.)		32.69	24.65	19.51

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.85	7.71	7.39
Net Profit Margin (PBT/Sales)	(%)	13.57	16.10	14.72
Return on Total Assets (PBT/Total Assets}	(%)	9.86	6.65	8.43
Return on Investment (ROI) (PBT/Networth)		0.34	0.31	0.27
Debt Equity Ratio (Total Liability/Networth)		2.29	3.53	2.09
Current Ratio (Current Asset/Current Liability)		4.32	4.01	2.12

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	No
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

FINANCIAL RESULTS:

During the year the Company has noted tremendous growth with comparison of last financial year of the Company. The Company has made the turnover of Rs. 510.365 Millions against the last year of Rs 216.565 Millions and recorded a profit before taxation of Rs. 67.491 Millions.

The net profit after tax is Rs. 40.045 Millions. The Directors of the company are of the view that the performance or the company would further improve in the next financial year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17110AP2005PTC045993
Name of the company	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Tirumala Complex,1st Floor, 4/2, Brodipet, Guntur – 522002, Andhra Pradesh, India Email: dsc_director@rediffmail.com
This form is for	Modification of charge
Charge identification number of the modified	80002621
Type of charge	Immovable property Any interest in immovable property Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, Specialised Commercial Branch, Kannavarithota, Guntur – 522004, Andhra Pradesh, India Email: sbi.13483@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Form C1A: Supplemental agreement of loan for increase in the overall limit 2. Form C2A: Supplemental agreement of hypothecation of goods and assets for increase in the overall limit 3. Form C5: Letter regarding the grant of individual limits within the overall limit 4. SME-7: Memorandum for recording extension of mortgage by deposit of title deeds
Date of instrument Creating the charge	12.12.2011
Amount secured by the charge	Rs. 651.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC : 4.25% above BR, present rate 14.25% TL I : 5.25% above BR, present rate 15.25% TL II-V :4.75% above BR, present rate 14.75% SLC : 5.25% above BR, present rate 15.25% Terms of Repayment CC : Repayable on Demand Term Loan: Repayable on installments as more particularly described in loan documents. Margin raw materials:25% Stock-in-process: 25% Finished goods: 25% Consumable Stores and spares: 25% receivables(Cover period 60 days): 40% EPC Stocks : 10% LC: 25% Extent and Operation of the charge Hypothecation of stocks, receivables and all other chargeable current assets and extension of equitable mortgage of land admeasuring Ac.8.23 cents situated at D.No.124/8 of 0.45 cents, D.No.124/9 of 0.60 cents, D.No.125/1 of Ac.2.39 cents, D.No.125/2 of Ac.1.38 cents, D.No.125/3 of Ac.1.39 cents, D.No.127/3 of Ac.2.02 cents, Chebrolu, Guntur Dist and super structures constructed thereon and plant and machinery erected therein.
Short particulars of the property charged	Hypothecation of stocks, receivables and all other chargeable current assets of the Company. Extension of equitable mortgage of land admeasuring Ac.8.23 cents situated at D.No.124/8 of 0.45 cents, D.No.124/9 of 0.60 cents, D.No.125/1 of Ac.2.39 cents, D.No.125/2 of Ac.1.38 cents And D.No.125/3 of Ac.1.39 cents, D.No.127/3 of Ac.2.02 cents, Chebrolu, Guntur Dist and super structures constructed thereon and plant and machinery erected therein.
Date of latest modification prior to the present modification	09.03.2011
Particulars of the present modification	The overall limits enhanced from Rs. 629.100 Millions to Rs. 651.600 Millions as detailed below: CC (Hypothecation): Rs. 150.000 Millions (enhanced from 90.000 Millions) , SLC : Rs.17.500 Millions (enhanced from Rs 15.000 Millions) , CC(Ad hoc) Cancelled: Rs 50.000 Millions, LC : Rs. 20.000 Millions (enhanced from Rs 10.000 Millions), TL-I: Rs 114.000 Millions, TL-II: Rs 29.500 Millions, TL-III: Rs 120.000 Millions, TL-IV:Rs 33.000 Millions, TL-V: Rs 120.000 Millions, EPCG BG: Rs 5.400 Millions, FC: Rs 2.200 Millions, BD: Rs 40.000 Millions : No Change, Hence total limits after the present modification is Rs. 651.600 Millions.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

a) Estimated amount of contracts remaining to be executed on capital account not provided for - Rs.103.001 Millions

FIXED ASSETS:

Ø Land

Ø Non-Factory Buildings

Ø Factory Buildings

Ø Plant and Machinery

Ø Electrical Installation

Ø Furniture and Fixture

Ø Lab Testing Equipment

Ø Office Equipment

Ø Vehicles

Ø Plantations

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 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. 55.20
UK Pound	1	Rs. 87.79
Euro	1	Rs. 70.43

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

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

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

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

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

RATING EXPLANATIONS

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

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