MIRA INFORM REPORT

Report Date :

24.09.2012

IDENTIFICATION DETAILS

Name :	KAPO RETAIL PRIVATE LIMITED (w.e.f. 29.12.2007)
Formerly Known As :	KAPO REALTORS PRIVATE LIMITED
Registered Office :	1E, Jhandewalan Extension, Naaz Cinema Comlex, New Delhi – 110055
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.04.2007
Com. Reg. No.:	55-161521
Capital Investment / Paid-up Capital :	Rs.69.999 Millions
CIN No.: [Company Identification No.]	U70102DL2007PTC161521
TAN No.: [Tax Deduction & Collection Account No.]	DELK09739C
PAN No.: [Permanent Account No.]	AADCK1248C
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the business of trading in lifestyle products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

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 is a subsidiary of ‘DLF Brands Limited’. It is an established company having moderate track. Even though the company has achieved some growth in its total income earned during 2011, it has incurred loss. Accumulated losses recorded by the company appears to be increasing over years and has exceeded the networth. However, business is active. Payments are reported to be 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

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 :	1E, Jhandewalan Extension, Naaz Cinema Comlex, New Delhi – 110055, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	grover-rashmi@dlf.in bhargava-sumant@dlf.in
Corporate Office 1 :	15^th Floor, Tower A, Busilding No.5A, DLF Cyber Terraces, DLF Phase – III, Gurgaon - 122002, Haryana, India
Tel. No.:	91-124-4855800
Fax No.:	91-124-4855999
Corporate Office 2 :	8^th Floor, Gateway Tower, DLF Phase – III, N.H. – 8, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4778800
Fax No.:	91-124-4376876
Warehouse	Plot No.15, Dharuhera, Industrial Area, New Delhi – 110055, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Dhiraj Sarna

Designation :

Director

Address :

D-1001, New Friends Colony, New Delhi – 110065, India

Date of Birth/Age :

07.08.1966

Date of Appointment :

29.09.2010

DIN No.:

01039973

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	U74899DL1985PTC021134	TRINITY ELASTOMERS PRIVATE LIMITED	Director	5/6/1985	5/6/1985	-	Under Process of Striking off	NO
2	U74899DL1994PLC059794	SARNA EXPORTS LIMITED	Director	23/06/1994	23/06/1994	-	Active	NO
3	U45203DL1996PTC082767	CORONATION PROJECTS PRIVATE LIMITED	Director	18/10/1996	18/10/1996	2/9/2005	Strike off	NO
4	U17296DL1997PTC087857	S AND S TOWELS INDIA PRIVATE LIMITED	Director	11/6/1997	11/6/1997	-	Strike off	NO
5	U70109DL1996PTC075924	ELEPHANTA ESTATES PRIVATE LIMITED	Director	14/08/2001	14/08/2001	-	Active	NO
6	U45201DL2006PTC147579	FERRAGAMO RETAIL INDIA PRIVATE LIMITED	Additional director	11/9/2008	11/9/2008	-	Active	NO
7	U27310DL2008PTC179369	GIORGIO ARMANI INDIA PRIVATE LIMITED	Director	8/9/2009	8/10/2008	-	Active	NO
8	U70102DL2007PTC161521	KAPO RETAIL PRIVATE LIMITED	Director	29/09/2010	18/03/2010	-	Active	NO
9	U45209DL2007PTC161760	RHEA RETAIL PRIVATE LIMITED	Director	18/03/2010	18/03/2010	-	Active	NO
10	U45209DL2007PTC161789	ISHTAR RETAIL PRIVATE LIMITED	Director	25/08/2010	26/04/2010	-	Active	NO
11	U45400DL2007PTC161528	JUNO RETAIL PRIVATE LIMITED	Director	31/08/2010	31/08/2010	-	Active	NO
12	U74899DL1973PTC006832	JHANDEWALAN ANCILLARIES AND INVESTMENTS PRIVATE LIMITED	Director	28/09/2011	14/01/2011	-	Active	NO
13	U45201DL1988ULT031091	ARIHANT HOUSING COMPANY (A PRIVATE COMPANY WITH UNLIMITED LIABILITY)	Director	22/09/2011	17/01/2011	-	Active	NO
14	U74899DL1988PTC030947	SUKH SANSAR HOUSING PRIVATE LIMITED	Director	23/09/2011	17/01/2011	-	Active	NO
15	U74899DL1988PTC030946	SOLACE HOUSING AND CONSTRUCTION PRIVATE LIMITED	Director	22/09/2011	17/01/2011	-	Active	NO
16	U00000DL1988PTC030949	PUSHPAK BUILDERS AND DEVELOPERS PRIVATE LIMITED	Director	22/09/2011	17/01/2011	-	Active	NO
17	U74899DL1988PTC030950	SUDARSHAN ESTATES PRIVATE LIMITED	Director	28/09/2011	11/2/2011	-	Active	NO
18	U45201DL2006PLC147368	DLF BRANDS LIMITED	Managing director	30/09/2011	30/09/2011	-	Active	NO
19	U20299HR2011PLC042833	MONARK FURNITURE LIMITED	Additional director	21/03/2012	21/03/2012	-	Active	NO
20	U74899DL1955PTC002592	NORTHERN INDIA THEATRES PRIVATE LIMITED	Additional director	26/06/2012	26/06/2012	-	Active	NO

Name :

Mr. Dipak Kumar Agarwal

Designation :

Director

Address :

B-9/11, Mian Wali New Rohtak Road, Paschim Vihar, New Delhi – 110087, India

Date of Birth/Age :

19.05.1974

Date of Appointment :

29.09.2010

DIN No.:

00740004

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	U25209DL2006PTC156092	SATYA SAI POLYMERS PRIVATE LIMITED	Director	1/12/2006	1/12/2006	-	Active	NO
2	U45201DL2006PTC147579	FERRAGAMO RETAIL INDIA PRIVATE LIMITED	Additional director	12/6/2009	11/9/2008	20/07/2010	Active	NO
3	U27310DL2008PTC179369	GIORGIO ARMANI INDIA PRIVATE LIMITED	Director	8/9/2009	12/4/2009	-	Active	NO
4	U70102DL2007PTC161521	KAPO RETAIL PRIVATE LIMITED	Director	29/09/2010	18/03/2010	-	Active	NO
5	U45209DL2007PTC161760	RHEA RETAIL PRIVATE LIMITED	Managing director	18/03/2010	18/03/2010	-	Active	NO
6	U45400DL2007PTC161528	JUNO RETAIL PRIVATE LIMITED	Director	31/08/2010	31/08/2010	-	Active	NO
7	U45400DL2007PTC162328	ROD RETAIL PRIVATE LIMITED	Director	29/09/2011	10/5/2011	-	Active	NO

Name :

Mr. Giorgio Mario Brandazza

Designation :

Director

Address :

11/4, Via Castello, Luvinate – 21020

Date of Birth/Age :

18.09.1958

Date of Appointment :

29.09.2010

DIN No.:

02895575

KEY EXECUTIVES

Name :	Mr. Sumant Kumar Bhargava
Designation :	Secretary
Address :	Sector – 12C, Flat No. 3129, BS City Bokaro, Jharkhand – 827012, India
Date of Birth/Age :	05.12.1983
Date of Appointment :	04.08.2011
Pan No. :	AQUPB1999D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
DLF Brands Limited, India	9257452
Dipak Agarwal	1
Nishant Malik	1
Rashmi Sharma	1
Sumant Kumar Bhargava	1
Neeraj Parmar	1
Saurabh Gupta	1
Doralcapital S.A, Luxembourg	3967482
Total	13224940

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	30.00
Bodies corporate	70.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of trading in lifestyle products

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India,, Dr. Annie Besant Road, Worli,, Mumbai - 400018, Maharashtra, India

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Other debt unsecured	85.506	55.053
Total	85.506	55.053

Banking Relations :	--
Auditors :
Name :	Walker Chandiok and Company Chartered Accountants
Address :	L-41, Connaught Circus, Delhi – 110001, India
PAN.:	AAAFW2498E
Holding Company :	DLF Brands Limited CIN No.: U45201DL2006PLC147368
Ultimate Holding Company :	DLF Limited CIN No.: L70101HR1963PLC002484
Subsidiaries :	DLF Utilities Limited (Till October 31, 2010) CIN No.: U01300HR1989PLC030646 Beverly Park Maintenance Services Private limited (Till October 31, 2010) CIN No.: U74920HR1999PLC034138 Eros Retail Private Limited CIN No.: U45209DL2007PTC161768 Carreen Builders and Developers Private Limited CIN No.: U45400DL2007PTC165429
Associate :	Doral Capital, SA

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13224940	Equity Shares	Rs.10/- each	Rs.132.249 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6999940	Equity Shares	Rs.10/- each	Rs.69.999 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		69.999	69.999	0.100
2] Share Application Money		48.775	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(82.537)	(40.120)	(8.526)
NETWORTH		36.237	29.879	(8.426)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		85.506	55.053	24.450
TOTAL BORROWING		85.506	55.053	24.450
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		121.743	84.932	16.024
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.024	42.987	20.005
Capital work-in-progress		5.573	0.085	20.416
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		4.257	4.378	4.378
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.565	34.898	22.465
	Sundry Debtors	16.875	2.253	0.000
	Cash & Bank Balances	2.121	1.937	1.779
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.089	20.225	10.653
Total Current Assets		117.650	59.313	34.897
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.205	13.267	61.585
	Other Current Liabilities	19.016	7.799	2.087
	Provisions	0.540	0.765	0.000
Total Current Liabilities		57.761	21.831	63.672
Net Current Assets		59.889	37.482	(28.775)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		121.743	84.932	16.024

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	106.465	47.052	6.828
		Other Income		1.948	0.000
		TOTAL (A)	106.465	49.000	6.828
Less	EXPENSES
		Cost of goods sold		30.696	4.739
		Personnel cost		0.840	0.000
		General, administrative and selling Expenses		37.953	13.248
		TOTAL (B)	147.863	69.489	17.987
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		Including Financial and Depreciation Expenses	(20.489)	(11.159)
Less	FINANCIAL EXPENSES (D)			8.072	1.295
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(28.561)	(12.454)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			3.033	0.426
	PROFIT / (LOSS)BEFORE TAX (E-F) (G)		(41.398)	(31.594)	(12.880)
Less	TAX (H)		(83.815)	0.000	(4.378)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(42.417)	(31.594)	(8.502)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(40.120)	(8.526)	0.024
	BALANCE / (LOSS) CARRIED TO THE B/S		(82.537)	(40.120)	(8.526)
	IMPORTS
		Trading goods	103.244	29.997	28.827
		Capital Goods	0.000	0.000	26.886
	TOTAL IMPORTS		103.244	29.997	55.713
	Earnings / (Loss) Per Share (Rs.)		(6.06)	(1084.84)	(850.23)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(39.84)	(64.48)	(124.52)
Net Profit Margin (PBT/Sales)	(%)	NA	(67.15)	(188.63)
Return on Total Assets (PBT/Total Assets}	(%)	(24.40)	(30.88)	(23.46)
Return on Investment (ROI) (PBT/Networth)		(1.14)	(1.06)	(1.53)
Debt Equity Ratio (Total Liability/Networth)		3.95	2.57	(10.46)
Current Ratio (Current Asset/Current Liability)		2.04	2.72	0.55

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	Yes

OPERATION

The Company business has grown in the past year and has taken steps to concentrate on its growth plan. Currently, the Company has 9 (Nine) retail stores under the brand name ‘Boggi Milano’ as compared to 5 (Five) stores in the previous year. Further, the Company is looking forward to open another 8 (Eight) stores in the financial year at various metropolitan and mini-metropolitan cities in the India. The Board has made strategies and is taking concrete steps to develop the business of the Company in the coming years.

During the year, the total income of the Company increased to Rs.106.465 Millions from Rs.49.000 Millions in the previous year and the Company has incurred a loss of Rs.42.417 Millions as compared to loss of Rs.31.594 Millions in the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U70102DL2007PTC161521
Name of the company	KAPO RETAIL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1E, Jhandewalan Extension, Naaz Cinema Comlex, New Delhi – 110055, India jain-neeraj@dlf.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10204189
Type of charge	Book debts Movable property (not being pledge) Floating charge Others (All current Assets (including Loans and Advances))
Particular of charge holder	Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India,, Dr. Annie Besant Road, Worli,, Mumbai - 400018, Maharashtra, India delhicadmidoffice@yesbank.in
Nature of instrument creating charge	Supplementary Deed of Hypothecation dated 18.08.2010
Date of instrument Creating the charge	18.08.2010
Amount secured by the charge	Rs.500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment MTL - Repayable in 12 equal quarterly installments after moratorium period of 12 months from the date of first disbursement. Cash Credit - Payable on demand. Working Capital Demand Loan - Bullet repayment of the principal amount at the end of the tenor Margin 75% of Debtors (not more than 90 days old) plus 75 % of Inventories less Creditors. Extent and Operation of the charge Facilities granted to M/s DLF Brands Limited shall be secured by - a) Exclusive charge on all current assets (including Loans and Advances) and all movable fixed assets (including plant and machinery) of the Company (both present and future)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All Current Assets (both present and future) including loans and Advances of the Company (both present and future) All Movable Fixed Assets including Plant and Machinery of the Borrower (both present and future).
Date of instrument modifying the charge	05.01.2010
Particulars of the present modification	The charge Amount is increased for additional Term loan of Rs.100.000 Millions and enhanced Working Capital facilities of Rs.150.000 Millions granted to DLF Brands Limited

FIXED ASSETS

• Office equipments
• Computer equipments
• Furniture fixtures
• Leasehold improvements

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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		16

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.