MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	PEPS INDUSTRIES PRIVATE LIMITED
Registered Office :	S F No. 192, Uthupalayam Road, Arasur Post Palladam Taluka, Coimbatore - 641407, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.09.1995
Com. Reg. No.:	18-006507
Capital Investment / Paid-up Capital :	Rs. 63.801 Millions
CIN No.: [Company Identification No.]	U17111TZ1995PTC006507
PAN No.: [Permanent Account No.]	AABCP9569P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Spring Interior Mattresses and Bedding Products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 397000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has achieved a significant growth in its sales turnover as well as net profitability during 2012. Overall performance of the company is improving. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered normal for business dealings 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 DECLINED

MANAGEMENT NON-COOPERATIVE [91-80-28525831]

LOCATIONS

Registered Office/ Factory 1 :	S F No. 192, Uthupalayam Road, Arasur Post Palladam Taluka, Coimbatore -641407, Tamilnadu, India
Tel. No.:	91-422-2680890/ 2360892
Fax No.:	91-422-2360892
E-Mail :	ravichandran@ascentcircuits.com pe+sho@restanicindia.com pepsind1@eth.net gshankarram@restonicindia.cpm mala@eth.net kiriti@pepsindia.com
Website :	www.pepsindia.com
Head Office :	V-ID, NGEF Ancillary (I) Estate, Mahadevpura, Bangalore – 560048, Karnataka, India
Tel. No. :	91-80-28525831/ 28524599
Fax No.:	91-80-28525831
Factory 2 :	Godown No. 1,2,3,4,5, Wing B, Behind Radhika Hotel, Gate No. 1354, Pune Saswad Road, Village Wadki, Pune, Maharastra 412308
Factory 3 :	No. 249, Swarn Park Industrial Area, Mundka, Nangloi, New Delhi – 110041, India

DIRECTORS

AS ON 12.09.2012

Name :

Mr. Keshavan Madhavan

Designation :

Managing director

Address :

479, 11^th B Cross, Bell Layout, Vidhyaranyapuram, Bangalore - 560013, Karnataka, India

Date of Birth/Age :

12.07.1953

Date of Appointment :

29.09.2010

PAN No.:

AATPM1021E

DIN No.:

01678629

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	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Managing director	29/09/2010	27/08/2010	Active	NO

Name :

Mr. Shankarram Gopalan

Designation :

Director

Address :

201, Trinity Gole Link Apartments 139/8, Domlur Layout, Bangalore - 560071, Karnataka, India.

Date of Birth/Age :

04.12.1959

Date of Appointment :

14.09.2006

PAN No.:

AIDPG2737M

DIN No.:

00110783

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	U01300TZ1989PTC002484	HOSUR COIR FOAMS PRIVATE LIMITED	Director	24/03/1993	24/03/1993	Active	NO
2	U31200KA1999PTC024700	ASCENT CIRCUITS PRIVATE LIMITED	Director	01/02/1999	01/02/1999	Active	NO
3	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Director	14/09/2006	16/12/2005	Active	NO
4	U17214TZ2010PTC016432	HOSUR MATTRESS INDUSTRIES INDIA PRIVATE LIMITED	Director	13/10/2010	13/10/2010	Active	NO

Name :

Mr. Punyamurthy Manjunath

Designation :

Director

Address :

1282, 13^th Cross Indira Nagar II Stage, Binnamanagar, Bangalore-560038, Karnataka, India.

Date of Birth/Age :

05.02.1960

Date of Appointment :

14.09.2006

PAN No.:

ADKPM0177H

DIN No.:

00900902

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	U01300TZ1989PTC002484	HOSUR COIR FOAMS PRIVATE LIMITED	Director	24/03/1993	24/03/1993	-	Active	NO
2	U31503KA1986PTC007459	TECHNOVA TAPES (INDIA)PRIVATE LIMITED	Director	25/08/1994	25/08/1994	-	Active	NO
3	U31200KA1999PTC024700	ASCENT CIRCUITS PRIVATE LIMITED	Managing director	01/02/1999	01/02/1999	-	Active	NO
4	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Director	14/09/2006	16/12/2005	-	Active	NO
5	U31300KL2008PTC027811	GLOBALWAVE TECHNOLOGIES PRIVATE LIMITED	Director	12/05/2008	12/05/2008	-	Active	NO
6	U17214TZ2010PTC016432	HOSUR MATTRESS INDUSTRIES INDIA PRIVATE LIMITED	Director	13/10/2010	13/10/2010	-	Active	NO
7	U74900KA2011PTC059112	ACE ENVIRO TECH PRIVATE LIMITED	Director	13/06/2011	13/06/2011	18/07/2013	Active	NO
8	U40100TZ2013PTC019623	HOSUR INDUSTRIES POWER SERVICES PRIVATE LIMITED	Director	26/06/2013	26/06/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.09.2012

Names of Equity Shareholders	No. of Shares
Hosur Coir Foams Private Limited, India	285000
P Manjunath	1266103
G. Ram Shankar	1211100
K Madhavan	411000
Sanjana P. Manjunath	469000
Sunaina P. Manjunath	468000
Total	4110203

Names of Preference Shareholders	No. of Shares
P Manjunath	1134960
G. Ram Shankar	1134960
Total	2269920

AS ON 12.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	7.00
Directors or relatives of directors	93.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Spring Interior Mattresses and Bedding Products.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Coir Mattress	Tones	300000	62055

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· HDFC Bank Limited

· Indian Overseas Bank

· AXIS Bank Limited, Corporate Banking Branch, No. 1, Queens Road, Bangalore - 560001, Karnataka, India

· State Bank of India, ITI Ancl Industrial Estate Branch, Mahadevapura, Whitefield Road, Bangalore - 560048, Karnataka, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	6.037	12.037
Other loans and advances	0.696	0.449
SHORT-TERM BORROWINGS
Loans repayable on demand	73.706	59.221
Total	80.439	71.707

Banking Relations :	--
Auditors :
Name :	CSK Prabhu and Company Chartered Accountants
Address :	First Floor, Auditors Association Buildings, No 7, D B Road, R S Puram, Coimbatore – 641002, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AACFC6296Q

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions
3,000,000	Preference Shares	Rs. 10/- each	Rs. 30.000 Millions
	Total		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,110,203	Equity Shares	Rs. 10/- each	Rs. 41.102 Millions
2,269,920	Preference Shares	Rs. 10/- each	Rs. 22.699 Millions
	Total		Rs. 63.801 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	63.801	63.801
(b) Reserves & Surplus	35.492	6.664
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	99.293	70.465
(3) Non-Current Liabilities
(a) long-term borrowings	21.884	17.998
(b) Deferred tax liabilities (Net)	9.099	7.923
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	30.983	25.921
(4) Current Liabilities
(a) Short term borrowings	73.706	59.221
(b) Trade payables	33.326	34.080
(c) Other current liabilities	40.263	40.968
(d) Short-term provisions	21.563	9.059
Total Current Liabilities (4)	168.858	143.328
TOTAL	299.134	239.714
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	91.395	89.139
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.326
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.014	0.014
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	2.530	2.238
(e) Other Non-current assets	2.700	1.200
Total Non-Current Assets	96.639	92.917
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	60.571	39.059
(c) Trade receivables	104.815	70.448
(d) Cash and cash equivalents	11.986	13.415
(e) Short-term loans and advances	18.346	16.812
(f) Other current assets	6.777	7.063
Total Current Assets	202.495	146.797
TOTAL	299.134	239.714

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		63.801
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(9.089)
NETWORTH		54.712
LOAN FUNDS
1] Secured Loans		41.742
2] Unsecured Loans		3.987
TOTAL BORROWING		45.729
DEFERRED TAX LIABILITIES		7.082
TOTAL		107.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		60.744
Capital work-in-progress		0.000
INVESTMENT		0.013
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.588
	Sundry Debtors	54.067
	Cash & Bank Balances	5.368
	Other Current Assets	0.000
	Loans & Advances	21.341
Total Current Assets		103.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.334
	Other Current Liabilities	35.072
	Provisions	6.303
Total Current Liabilities		59.709
Net Current Assets		43.655
MISCELLANEOUS EXPENSES		0.000
OTHER ASSETS		3.111
TOTAL		107.523

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	741.260 [Gross]	489.177 [Gross]	240.555
		Other Income	NA	NA	8.876
		TOTAL (A)	NA	NA	249.431
Less	EXPENSES
		Raw Material Consumed			164.792
		Power and Fuel			1.816
		Exchange Fluctuation			0.000
		Employee Cost			15.123
		Administrative and Selling Expenses			43.651
		Adjustment due to increase/ decrease in stock			(1.216)
		TOTAL (B)	NA	NA	224.166
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				25.265
Less	FINANCIAL EXPENSES (D)				3.288
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		48.642	27.519	21.978
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.043	4.022	2.977
	PROFIT BEFORE TAX (E-F) (G)		43.599	23.497	18.999
Less	TAX (H)		NA	7.745	11.928
	PROFIT AFTER TAX (G-H) (I)		NA	15.752	7.071
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	134.621	116.748	0.000
	Earnings Per Share (Rs.)		NA	3.83	1.72

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	2.83
Net Profit Margin (PBT/Sales)	(%)	NA	NA	7.90
Return on Total Assets (PBT/Total Assets}	(%)	14.58	9.82	11.58
Return on Investment (ROI) (PBT/Networth)		0.44	0.33	0.35
Debt Equity Ratio (Total Debt/Networth)		0.96	1.10	0.84
Current Ratio (Current Asset/Current Liability)		1.20	1.02	1.73

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	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	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10404035	27/06/2013 *	212,600,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, NO.1, QUEENS ROAD, BANGALORE - 560001, KARNATAKA, INDIA	B80126030
2	90003034	03/12/1996	25,000,000.00	STATE BANK OF INDIA	KTDC BUILDINGS, ERNAKULAM, TAMILNADU, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Deposits from others	13.015	3.625
Loans and advances from related parties	2.136	1.887
Total	15.151	5.512

FINANCIAL RESULTS:

The Directors state that the Company achieved a turnover (Gross) of Rs.741.260 Millions as against Rs.489.177 Millions in the previous year and achieved a Net Profit of Rs.43.599 Millions as against Net Profit of Rs.23.497 Millions in the previous year (after charging Depreciation of Rs.5.043 Millions as against Rs.4.022 Millions in the previous year). The Directors are making sincere efforts to improve the performance of the Company.

BUSINESS PROSPECTS:

The Company is every effort to increase the distribution and manufacturing facilities. Earnest effort are also being taken to cut down cost and overheads

FIXED ASSETS:

· Land

· Buildings

· Factory building

· Other building

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

PRESS RELEASE

PEPS INDUSTRIES EXTENDS PACT WITH RESTONIC CORPORATION

MARCH 08, 2012

Peps Industries extended its pact with Restonic Corporation of USA for the next 25 years. The president of Restonic Corporation had visited India on the occasion of signing the MoU.

A review about Peps Mattresses, the technology used, the quality standards and products will throw some insight into the understanding of the strength behind partnership. The Peps sleep solutions also meet the benchmark defined by Restonic Corporation, USA for its Restonic range of products.
Peps Spine Guard Mattress is one of the special mattress product release in the market

The technology is patented and uniquely delivered in its product range. Some of the features of the products include: individually pocketed inner springs that absorbs weight and compress independently, so that you will feel your partner's movement a lot, less. The reinforcement in the middle helps reduce the back strain significantly. The Restonic range of mattress includes the normal top range, euro top range and the pillow top range.

The Peps mattress is certified by Entomology Center Cambridge, under AATCC 147/30/1424 standards. The Peps range of products is crafted from materials and components of highest quality standards and certifications. The products are delivered with care to exceed the customer expectations. The mattress is internationally certified for no odor, no fungus, no dust mite and no bacteria.

The manufacturing facility is built in a 15 acre industrial campus in Coimbatore. The world class manufacturing facility comprises machineries from Germany, Sweden and USA. Peps is India's only manufacturer of sleep systems that match exact quality and technology benchmarks of Restonic Corporation of USA. Peps' unique expertise and insights of Indian consumer strengthen an already formidable partnership.

The peps range of mattresses are available at the exclusive mattress store - The Great Sleep Store, part of the Peps Retail initiative.

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. 60.80
UK Pound	1	Rs. 91.95
Euro	1	Rs. 80.37

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.