MIRA INFORM REPORT

Report Date :

03.09.2012

IDENTIFICATION DETAILS

Name :	KHUSHBU SALES PRIVATE LIMITED
Registered Office :	12, 4^th Floor, Kalapurnam Complex, Near Municipal Market, C. G. Road, Navrangpura, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.05.1996
Com. Reg. No.:	04-029716
Capital Investment / Paid-up Capital :	Rs.3.550 Millions
CIN No.: [Company Identification No.]	U51100GJ1996PTC029716
IEC No.:	0805008748
TAN No.: [Tax Deduction & Collection Account No.]	AHMK00351B
PAN No.: [Permanent Account No.]	AAACK6182G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trading of PVC Flexible Film and Other PVC Print Media Materials.
No. of Employees :	20 (Approximately) (Office – 10 and Factory – 10)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealing at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B+ (Cash Credit)
Rating Explanation	Having high risk of default regarding timely servicing of financial obligation.
Date	April, 2012

Rating Agency Name	CRISIL
Rating	A4 (Short Term)
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation, it carry high credit risk and susceptible to default.
Date	April, 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.

INFORMATION PARTED BY

Name :	Mr. Ghanshyambhai J. Patel
Designation :	Director
Contact No.:	91-9825032089
Date :	01.09.2012

LOCATIONS

Registered Office :	12, 4^th Floor, Kalapurnam Complex, Near Municipal Market, C. G. Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26565705/ 26560522/ 26562252
Mobile No.:	91-9825032089 (Mr. Ghanshyambhai J. Patel)
Fax No.:	91-79-26562252
E-Mail :	khushbu888_ahm@yahoo.co.in khushbu_9@yahoo.com inquiry@khushbu.co.in gjp@khushbu.co.in
Location :	Owned
Factory :	Block No.28, Baska-Ujeti Road, Village Ujeti, Halol, Panchmahal, India
Location :	Owned
Branch Office :	Located at: · Mumbai · Indore

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. Ghanshyambhai Jayantibhai Patel
Designation :	Director
Address :	6, Vaibhav Gokul Bunglow, B/h. Rajpath Club, Bodakdev, Ahmedabad – 380059, Gujarat, India
Date of Birth/Age :	09.06.1996
Qualification :	Graduate
Experience :	18 years
PAN No.:	ACRPP8625M
Passport No.	J4569273
Date of Appointment :	22.05.1996
DIN No.:	02225033
Name :	Mrs. Kaminiben G Patel
Designation :	Director
Address :	6, Vaibhav Gokul Bunglow, B/h. Rajpath Club, Bodakdev, Ahmedabad – 380059, Gujarat, India
Date of Birth/Age :	24.02.1972
Qualification :	Graduate
Experience :	7 years
PAN No.:	AFJPP8301H
Passport No.	J9194358
Date of Appointment :	16.06.2000
DIN No.:	02225019
Name :	Mr. Jayantilal Joitaram Patel
Designation :	Additional Director
Address :	133-134, Hirabah Part -2, Ghatlodia, Ghatlodia – 380061, Gujarat, India
Date of Birth/Age :	12.07.1946
Qualification :	Intermediate
Experience :	5 years
Pan No.:	AFZPP3961M
Voter ID No.	GJ 11064/424264
Date of Appointment :	15.01.2009
DIN No.:	02519410

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Equity Shares
Ghanshyambhai Jayantibhai Patel	116910
Sitaben Babubhai Patel	100
Subhadraben Jayantilal Patel	1950
Sarmishthaben Manojbhai Patel	100
Kaminiben Ghanshyambhai Patel	32640
Damini Jitendr Patel	100
Hiraben Khachrabhi Patel	200
Jayantilal J. Patel	48000
Total	200000
Names of Shareholders	No. of Preference Shares
Ghanshyambhai Jayantibhai Patel	10000
Kaminiben Ghanshyambhai Patel	10000
Total	20000

(AS ON 31.03.2012)

Names of Allottees	No. of Equity Shares Allotted
Ashwin Ramniklal Parekh	9500
Kirti Ashwin Parekh	6500
Rajeshsingh Gulabsingh Rajput	20000
Chandrakntbhai Darjibhai Patel	15000
Ghanshyambhai J. Patel	42000
Kaminiben G. Patel	33000
Jayantilal J. Patel	9000
Total	135000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trading of PVC Flexible Film and Other PVC Print Media Materials.
Imports :
Products :	PVC Flexible Film
Countries :	China
Terms :
Selling :	Cash and Credit (90 days)
Purchasing :	L/C, Cash and Credit (15 days)

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Installed Capacity
Manufacturer of PVC Flexible Film	12000 MT P.A.

GENERAL INFORMATION

Suppliers :

Name of Suppliers	Address
Canadian Speciality Vinyls	49, 1^st Floor, Rani Jhanshi Road, Jhandbewalan, New Delhi, India
Kinjal Innovation	46, Sardar Patel Nagar, B/h. Telephone Exchange, Navrangpura, Ahmedabad, Gujarat, India
Zibo Dingtian Plastic Company Limited	6, Xinwei Road, Economic Deve. Zone of Zichuan, Zibo, Shandong, China
Zhejiang Hailide New Material Company Limited	Maqiao Indl. Park of Haining, Zhejiang, China
Foshan Gaoming Guanglong Polymer Material Company Limited	138, Bigui Road, Sanzhou Gaoming, Foshan City, Guangdong, China

Customers :

Wholesalers and End Users

Name of Customer	Address
I-Mark	15, Kalpna Society, B/h. Navrangpura Post Office, Navrangpura, Ahmedabad, Gujarat, India
Perfect Sign	201, Ashirwad Paras Complex, Prahladnagar Corporate Road, Opp. Prahladnagar Garden, Ahmedabad, Gujarat, India
Positive Point Graphics Private Limited	B01, Shaswat, Opp. Gujarat Collage, Ellishbridge, Ahmedabad Gujarat, India
Quality Rexine	Plot No.C/7110-5, Yash Complex, GIDC, Vapi, Gujarat, India
Sai Impex	11, Prestige Tower, Indira Complex, Navlakha, Indore, Madhya Pradesh, India
Riddhi Siddhi Enterprise	114, Sanjay Shopping Center, Sanjay Setu Marg, Indore, , Madhya Pradesh, India
Shreeji Advertising Agency	R-59, Zonal-I, M. P. Nagar, Nr. Manik Agency, Bhopal.

No. of Employees :

20 (Approximately) (Office – 10 and Factory – 10)

Bankers :

· HDFC Bank Limited

Navrangpura Branch, Near Mithakhali Six Road, Ahmedabad, Gujarat, India

· HDFC Bank Limited

HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Facilities :

Cash Credit Limit Rs.40.000 Millions and L/C Limit Rs.20.000 Millions.

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Cash Credit and L/C From Bank (Secured against tock and book debts of the company)	55.573	34.613
Term Loan from Finance Companies (Secured against Vehicles)	0.334	0.484
Total	55.907	35.097
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Shareholder and Directors, friends and Relatives	3.228	5.452
From NBFC	2.604	0.000
Unsecured term Loan from NBFC	0.621	0.000
Total	6.453	5.452

Banking Relations :	--
Auditors :
Name :	Raj P. Shah and Company Chartered Accountant
Address :	C/802, Sankalp Apartments, Opposite L. J. Collage, Vastrapur, Ahmedabad – 380015, Gujarat, India
Tel. No.:	91-79-40036616/ 26769858
E-Mail :	rpaghdiwala@gmail.com
PAN No.:	ABIPS3379M
Associates/Subsidiaries :	· K. G. Marketing 544/B, Moti Haman’s Pole, Gheekanta, Ahmedabad – 380001, Gujarat, India Activity: Trading of Cotton Coated Fabrics.

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions
50000	Redeemable Non Cumulative Preference Shares	Rs.10/- each	Rs.0.500 Million
	Total		Rs.13.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
335000	Equity Shares	Rs.10/- each	Rs.3.350 Millions
20000	Redeemable Non Cumulative Preference Shares	Rs.10/- each	Rs.0.200 Million
	Total		Rs.3.550 Millions

RECONCILIATION OF SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE REPORTING PERIOD

Particulars	Opening	Addition (Buy Back)	Closing
Year ended 31.03.2012
No of Equity Shares with voting tight	200000	135000	335000
Amount (Rs. In Millions)	2.000	1.350	3.350
No of Preference Shares	20000	0.000	20000
Amount (Rs. In Millions	0.200	0.000	0.200
Year ended 31.03.2011
No of Equity Shares with voting tight	200000	0.000	200000
Amount (Rs. In Millions)	2.000	0.000	2.000
No of Preference Shares	20000	0.000	20000
Amount (Rs. In Millions	0.200	0.000	0.200

The company has only one class of Equity and Preference Shares having a par value of Rs.10/- per share.

Equity Share Holder is entitled to one vote per Share. The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to approval of the Share Holders in the ensuing Annual General Meeting,

No dividend has been paid during the year and in the previous year. In the event of liquidation of the Company, the holder of Equity shares will be entitled to receive remaining Assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Share Holders.

LIST OF EQUITY SHARES HOLDERS HOLDING SHARES MORE THAN 5%.

Equity Shares of Rs.10/- each fully paid	31.03.2012		31.03.2011
Name	Nos.	% Holding	Nos.	% Holding
Ghanshyam G. Patel	158910	47%	116910	59%
Jayantibhai J. Patel	48000	14%	48000	24%
Kamini G. Patel	656400	20%	32640	16%
Rajeshsingh Gulabingh Rajput	20000	6%	0	0%

No Shares has been Reserved for Issue under the Employee Stock Option (ESOP)

No Share options are outstanding at the end of the year.

No Money has been received for Share Warrants and Money received towards Share Application during the year and allotted towards Equity Shares and premium thereon is Rs.18.600 Millions.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.550	2.200	2.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		41.300	19.762	16.209
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		44.850	21.962	18.409
LOAN FUNDS
1] Secured Loans		55.907	35.097	30.831
2] Unsecured Loans		6.453	5.452	2.402
TOTAL BORROWING		62.360	40.549	33.233
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		107.210	62.511	51.642
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.689	5.500	13.443
Capital work-in-progress		33.891	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.182	0.167	0.159
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.222	23.509	24.580
	Sundry Debtors	75.160	57.567	52.326
	Cash & Bank Balances	2.117	0.187	0.223
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.811	6.443	2.111
Total Current Assets		99.310	87.706	79.240
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	28.747	29.810	41.200
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.115	1.052	0.000
Total Current Liabilities		30.862	30.862	41.200
Net Current Assets		68.448	56.844	38.040
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		107.210	62.511	51.642

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	301.315	282.357	264.606
		Other Income	0.312	3.028	0.016
		TOTAL (A)	301.627	285.385	264.622
Less	EXPENSES
		Purchases of Stock in Trade	262.907	226.450	248.249
		Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	5.287	1.070	(4.517)
		Employee Benefit Expenses	3.883	5.144	0.000
		Other Expenses	13.239	40.818	12.655
		TOTAL (B)	285.316	273.482	256.387
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.311	11.902	8.235
Less	FINANCIAL EXPENSES (D)		9.442	6.135	3.401
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.869	5.767	4.834
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.795	0.825	0.918
	PROFIT BEFORE TAX (E-F) (G)		6.074	4.942	3.916
Less	TAX (H)		1.786	1.389	1.511
	PROFIT AFTER TAX (G-H) (I)		4.288	3.553	2.405
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.962	5.409	3.004
	BALANCE CARRIED TO THE B/S		NA	8.962	5.409
	IMPORTS
		Raw Materials	5.855	40.344	NA
	TOTAL IMPORTS		5.855	40.344	NA
	Earnings Per Share (Rs.)		12.80	17.77	12.02

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.42	1.24	0.91
Net Profit Margin (PBT/Sales)	(%)	2.02	1.75	1.48
Return on Total Assets (PBT/Total Assets}	(%)	5.84	5.30	4.23
Return on Investment (ROI) (PBT/Networth)		0.14	0.23	0.21
Debt Equity Ratio (Total Liability/Networth)		2.08	3.25	4.04
Current Ratio (Current Asset/Current Liability)		3.22	2.84	1.92

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

NOTE:

The Registered office of the company has been shifted from, 2, Anjani Complex, Near Choice Restaurant Lane, Opposite Crown Hotel, Navrangpuram Ahmedabad – 380009, Gujarat, India, to the present address w.e.f. 31.12.2008

COMPANY OVERVIEW:

The Company was incorporated on 22nd May, 1996 by Mr. Ghanshyambhai J. Patel. The Company is engaged in trading of PVC Flexible Film and other PVC Print Media Materials. The Registered Office of the Company is Situated at 12, 4th Floor, Kalapurnam, Nr. Municipal Market, C G Road, Ahmedabad – 380 009. The Company is selling it’s products throughout whole India. Now Company is planning to do backward integration by setting up a Manufacturing Plant of PVC Flexible Film. The Company has proposed to set up plant at Halol tauka of Panchmahal District of Gujarat. Installed capacity of the plant would be 12,000 MTPA. It would be continuous process plant and will operate for 24 hrs per day. The commercial production will be commenced by April, 2013.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10303982
Corporate identity number of the company	U51100GJ1996PTC029716
Name of the company	KHUSHBU SALES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	4th Floor, No. 12 Kalapurnam, C. G Road, Navarangpura, Ahmedabad – 380009, Gujarat, India India khushbu_9@yahoo.com
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	27.09.2011
Amount secured by the charge	Rs.60.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment on demand Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as stated under item No.15 as security for the due repayment of Rs. 60.000 Millions by the Company including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc. Others Nil
Short particulars of the property charged	Unit No. 12 Adm - 102.29 Sq.mts in the scheme Gem Heer Non Trading Association Constructed on Sub Plot No. 20 and 21 of Government Servant Coop Housing Society Limited, Forming part of FP No. 321+345 and TP Scheme No.3 (Veried) of Mouje Changispur Sub District Ahmedabad - 3 (Memnagar) and Registration District Ahmedabad.
Particulars of the present modification	The Company created a mortgage by deposit of title deeds in respect of its immovable property being lying and situated at Ahmedabad as further security for repayment of monies due and payable under credit facilities of Rs.60.000 Millions sanctioned by the Bank to the Company.

FIXED ASSETS:

· Furniture

· Computer

· Vehicles

· Air Conditioners

· Cycles

· Telephones

· Office

· Office Equipment

· Weight scale

· Refrigerator

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been 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.55.72
UK Pound	1	Rs.87.95
Euro	1	Rs.69.66

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.