MIRA INFORM REPORT

Report Date :

10.10.2012

IDENTIFICATION DETAILS

Name :	INDIA DENIM LIMITED
Registered Office :	Surva No 145 and 146, Village Dholka, Bagodara Road, District Taluk Dholk, Ahmedabad- 387810, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.05.2005
Com. Reg. No.:	04-046159
Capital Investment / Paid-up Capital :	Rs.104.059 millions
CIN No.: [Company Identification No.]	U17110GJ2005PLC046159
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00805A
PAN No.: [Permanent Account No.]	AABC13751J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Yarn, Polyester Yarn, Cotton Yarn, Textile Yarn, Woolen Yarn and Carpet Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 614000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an subsidiary of Konark Synthetic Limited. It is an established company having moderate track. Reserves of the company appear to be very low. Financial position appears to be improving. The company has recorded a better growth in its total income earned and profits during 2011. Trade relations are reported as improving. 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 :	Surva No 145 and 146, Village Dholka, Bagodara Road, District Taluk Dholk, Ahmedabad- 387810, Gujarat, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	pragneshthakkar_2001@yahoo.com
Administrative Office:	709, M.V. House, Opposite Hatisingh Wadi, Shahibaug Road, Ahmedabad-38004, Gujarat, India
Tel. No.:	91-79-25630901/ 30007389
Fax No.:	91-79-25630901
E-Mail :	accounts@indiadenim.com
Factory:	145-147, Village-Walthera, Taluka-Dholka, District-Ahmedabad-387810, Gujarat, India
Tel. No.:	91-271-4247474
Fax No.:	91-79-22866266
Email:	idl@indiadenim.com

DIRECTORS

As on 24.09.2011

Name :

Mr. Prakashchand Kishorilal Dalmia

Designation :

Managing director

Address :

7^th Floor, Santhusthi Building, Janki Kutir, Juhu, Church Road, Vileparle (West), Mumbai-400049, Maharashtra, India

Date of Birth/Age :

09.07.1954

Date of Appointment :

30.10.2007

DIN No.:

00005813

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	L17200MH1984PLC033451	KONARK SYNTHETIC LIMITED	Managing director	01/07/2012	17/07/1984	-	Active	NO
2	U65990MH1986PTC040869	KAYO INVESTMENTSANDFINANCE PVT LTD	Director	10/09/1986	10/09/1986	-	Active	NO
3	U17100MH1990PTC055288	KONARK SILK MILLS PRIVATE LIMITED	Director	29/09/2007	30/09/1994	-	Amalgamated	NO
4	U51900MH1992PTC067871	FILLMORE TRADING AND INVESTMENT PVT LTD	Director	12/08/2000	12/08/2000	01/02/2011	Active	NO
5	U45200MH1989PTC154095	GOAN REAL ESTATE AND CONSTRUCTION PRIVATE LIMITED	Director	28/08/2003	28/08/2003	-	Active	NO
6	U72200MH2000PTC126070	KONARK REALTECH PRIVATE LIMITED	Director	25/08/2004	25/08/2004	21/01/2008	Active	NO
7	U45201MH2004PTC144704	GOKULDHAM REAL ESTATE DEVELOPMENT COMPANY PRIVATE LIMITED	Director	01/07/2005	01/07/2005	16/08/2010	Active	NO
8	U24239MH1959PTC011443	ANILINE CONSTRUCTION COMPANY PRIVATE LIMITED	Director	30/09/2006	20/05/2006	25/06/2012	Active	NO
9	U45400MH2007PTC171582	KHAIRUN DEVELOPERS PRIVATE LIMITED	Director	12/06/2007	12/06/2007	07/07/2012	Active	NO
10	U17110GJ2005PLC046159	INDIA DENIM LIMITED	Managing director	14/05/2011	30/10/2007	-	Active	NO
11	U45200MH2006PTC161566	ATHENE CONSTRUCTION PRIVATE LIMITED	Director	09/11/2007	09/11/2007	18/07/2012	Active	NO
12	U45200MH2008PTC177455	KONARK INFRATECH PRIVATE LIMITED	Additional director	21/03/2011	21/03/2011	01/09/2011	Active	NO
13	U40101MH2010PTC206540	KONARK GUJARAT PV PRIVATE LIMITED	Additional director	21/03/2011	21/03/2011	01/09/2011	Active	NO

Name :

Mr. Ramniwas Bhavarlal Somani

Designation :

Director

Address :

304, Jeevan Sapana Co op. Hsc, M G Cross Road, Patel Nagar, Kandivali (West), Mumbai-400067, Maharashtra, India

Date of Birth/Age :

03.01.1963

Date of Appointment :

29.04.2009

DIN No.:

00012465

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	U17120MH1998PTC114914	GUDDI IMPEX PRIVATE LIMITED	Director	14/05/1998	14/05/1998	-	Active	NO
2	U51900MH1992PTC067871	FILLMORE TRADING AND INVESTMENT PVT LTD	Director	29/04/2006	29/04/2006	-	Active	NO
3	U45200MH2006PTC161566	ATHENE CONSTRUCTION PRIVATE LIMITED	Additional director	03/05/2006	03/05/2006	09/11/2007	Active	NO
4	U72200MH2000PTC126070	KONARK REALTECH PRIVATE LIMITED	Director	02/03/2007	02/03/2007	-	Active	NO
5	U45200MH2008PTC177455	KONARK INFRATECH PRIVATE LIMITED	Director	07/01/2008	07/01/2008	-	Active	NO
6	U70200MH2008PTC177453	KONARK REALTY PRIVATE LIMITED	Director	07/01/2008	07/01/2008	-	Active	NO
7	U17110GJ2005PLC046159	INDIA DENIM LIMITED	Director	29/04/2009	29/04/2009	-	Active	NO

Name :

Mr. Amitabh Ramswaroop Kejriwal

Designation :

Director

Address :

101, Santhusthi Building, Janki Kutir, Juhu, Church Road, Vileparle (West), Mumbai-400049, Maharashtra, India

Date of Birth/Age :

20.11.1965

Date of Appointment :

30.10.2007

DIN No.:

00005864

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	L17200MH1984PLC033451	KONARK SYNTHETIC LIMITED	Whole-time director	01/04/2010	28/02/1995	-	Active	NO
2	U17100MH1990PTC055288	KONARK SILK MILLS PRIVATE LIMITED	Director	29/09/2007	01/10/2002	-	Amalgamated	NO
3	U17110MH1997PTC111439	EXCEL SYNTHETIC PRIVATE LIMITED	Director	29/09/2007	01/10/2002	-	Amalgamated	NO
4	U17110GJ2005PLC046159	INDIA DENIM LIMITED	Director	18/09/2008	30/10/2007	-	Active	NO
5	U72200MH2000PTC126070	KONARK REALTECH PRIVATE LIMITED	Director	30/09/2011	07/03/2011	-	Active	NO
6	U65990MH1986PTC040869	KAYO INVESTMENTSANDFINANCE PVT LTD	Additional director	25/06/2012	25/06/2012	-	Active	NO

Name :

Mr. Mahendra Surajbhan Agarwal

Designation :

Director

Address :

31216, Garden View, Bhawani Nagar, Maroshi Road, Marol, Andheri (East), Mumbai-400059, Maharashtra, India

Date of Birth/Age :

04.07.1955

Date of Appointment :

25.06.2011

DIN No.:

03555499

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	L17200MH1984PLC033451	KONARK SYNTHETIC LIMITED	Director	26/08/2005	26/08/2005	-	Active	NO
2	U17110GJ2005PLC046159	INDIA DENIM LIMITED	Director	24/09/2011	25/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Kayo Investment and Finance Limited, India	1735900
Konark Synthetics Limited, India	6461000
Amitabh Kejriwal	160000
Smita Kejriwal	94000
Pratibha Green Technologies Private Limited	80000
Prerna Chaudhary	100000
Sarvapriya Bansal	5000
Shiv Kumar Chaudhary	300000
Shryashkar Chaudhary	250000
Snehkar Bansal	2500
Sushma Chaudhary	152500
Trio Mefa Chem Private Limited, India	1065000
Total	10405900

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2011

Category	Percentage
Bodies corporate	89.78
Directors or relatives of Directors	10.22
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Yarn, Polyester Yarn, Cotton Yarn, Textile Yarn, Woolen Yarn and Carpet Yarn.

Products:

ITC Code	Product Description
5205	Cotton Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Overseas Branch Bhadra, Ahmedabad-380014, Gujarat, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	235.297	263.710
Working capital loans banks secured	145.084	88.651
Loans taken for vehicles secured	0.538	0.846
Total	380.919	353.207
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	69.070	26.914
Loans directors unsecured	2.035	16.509
Total	71.105	43.423

Banking Relations :	--
Auditors :
Name :	Raj K. Agarwal and Company Chartered Accountants
Address :	C/502 Shilalekh Society, Opposite Police Stadium Shahibaug, Ahmedabad-380004, India
PAN No.:	AASPA8101E
Holding Company:	Konark Synthetic Limited, India (L17200MH1984PLC033451)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10405900	Equity Shares	Rs.10/- each	Rs.104.059 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		104.059	104.059	104.059
2] Share Application Money		41.600	48.585	37.520
3] Reserves & Surplus		7.999	(5.544)	0.000
4] (Accumulated Losses)		0.000	0.000	(10.012)
NETWORTH		153.658	147.100	131.567
LOAN FUNDS
1] Secured Loans		380.919	353.208	226.301
2] Unsecured Loans		71.105	43.423	49.221
TOTAL BORROWING		452.024	396.631	275.522
DEFERRED TAX LIABILITIES		0.000	1.351	1.351
TOTAL		605.682	545.082	408.440
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		391.919	408.258	112.702
Capital work-in-progress		2.310	16.126	264.853
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	187.731	96.750	18.497
	Sundry Debtors	131.490	103.751	10.364
	Cash & Bank Balances	5.505	4.271	10.185
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	38.329	32.008	41.684
Total Current Assets		363.055	236.780	80.730
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.009	27.310	30.991
	Other Current Liabilities	115.680	88.097	18.894
	Provisions	3.035	0.817	0.123
Total Current Liabilities		151.724	116.224	50.008
Net Current Assets		211.331	120.556	30.722
MISCELLANEOUS EXPENSES		0.122	0.142	0.163
TOTAL		605.682	545.082	408.440

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	535.108	345.593	59.783
		Other Income	2.127	0.356	1.027
		TOTAL (A)	537.235	345.949	60.810
Less	EXPENSES
		Consumption materials changes inventories	364.126	235.604	50.829
		Manufacturing service costs	56.366	40.953
		Employee related expenses	20.743	13.280
		Administrative selling other expenses	10.230	10.451
		TOTAL (B)	451.465	300.288	50.829
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		85.770	45.661	9.981
Less	FINANCIAL EXPENSES (D)		42.605	19.956	7.882
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.165	25.705	2.099
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.939	20.419	7.433
	PROFIT BEFORE TAX (E-F) (G)		15.226	5.286	(5.334)
Less	TAX (I)		1.683	0.818	0.065
	PROFIT AFTER TAX (G-I) (J)		13.543	4.468	(5.399)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5.544)	(10.012)	(4.613)
	BALANCE CARRIED TO THE B/S		7.999	(5.544)	(10.012)
	Earnings Per Share (Rs.)		1.30	0.43	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.52	1.29	(8.88)
Net Profit Margin (PBT/Sales)	(%)	2.84	1.53	(8.92)
Return on Total Assets (PBT/Total Assets}	(%)	2.02	0.82	(2.76)
Return on Investment (ROI) (PBT/Networth)		0.10	0.04	(0.04)
Debt Equity Ratio (Total Liability/Networth)		3.93	3.49	2.47
Current Ratio (Current Asset/Current Liability)		2.39	2.04	1.61

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	Yes
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

REVIEW OF OPERATIONS

During the year, the Company achieved a gross Turnover of Rs. 535.107 Millions as against Rs. 345.593 Millions in the previous year. The Profit after tax stood to Rs. 13.542 Millions as against Profit of Rs. 4.469 Millions in the previous year.

The company is putting all hard efforts to neutralize cost increase and improve margin improvement in manufacturing yield/ usage and expenses control to increase the profitability.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Estimated amount of Contracts remaining to be executed on capital accounts - Rs. 92.108 Millions (Previous year Rs. 92.108 Millions), Advance given Rs. 9.524 Millions (Previous years Rs. 9.524 Millions).

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17110GJ2005PLC046159
Name of the company	INDIA DENIM LIMITED
Address of the registered office or of the principal place of business in India of the company	Surva No 145 and 146, Village Dholka, Bagodara Road, District Taluk Dholk, Ahmedabad- 387810, Gujarat Email: pragneshthakkar_2001@yahoo.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of India, Overseas Branch Bhadra, Ahmedabad-380014, Gujarat, India Email: dipak.parmar@sbi.co.in
Nature of instrument creating charge	Agreement of Hypothecation of Goods and Assets DTD. 29^th June, 2011
Date of instrument Creating the charge	29.06.2011
Amount secured by the charge	Rs.20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest The rate of interest as may be determined by bank from time to time on the basis of internal credit rating accorded to the borrower as per prescribe rate of bank or RBI Terms of Repayment Finance by way of credit facility of overdrafts, demand loan, loans, cash credits,( by way of pledge lock and key type, factory type or nundy type or by way of hypothecation or in any other form including working capital term loan) term loan( including funding of interest or in any other form granted as part of rehabilitation packages) pre shipment and post shipment credits, opening of letter of credit, issuing of guarantees including deferred payment guarantees and indemnities, negotiation Extent and Operation of the charge The charge extends to the whole of India over the assets as described in agreement of hypothecation of goods and assets
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All present and future goods, book debts and all other movable assets of the borrower including document of title of goods, outstanding receivables, including receivable by way of cash assistance And incentive under the cash incentive scheme or any other scheme including claim by way of refund of custom / excise duties under the drawback credit scheme or any other scheme, bills, invoices, doc Contracts, insurance policies, guarantees, engagements, securities, inventory and rights and the present machinery listed in the schedule hereunto

FIXED ASSETS:

• Land and Site Development
• Road and Building
• Plant and Machinery
• Vehicles
• Furniture and Fixtures
• Office Equipment
• Computer

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.52.38
UK Pound	1	Rs.84.00
Euro	1	Rs.67.99

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.