MIRA INFORM REPORT1

Report Date :

14.08.2013

IDENTIFICATION DETAILS

Name :	GIMATEX INDUSTRIES PRIVATE LIMITED
Registered Office :	202, 2^nd Floor, A Wing, Ramji House, 30, Jambulwadi Kalbadevi Road, Mumbai 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.07.1994
Com. Reg. No.:	11-079863
Capital Investment / Paid-up Capital :	Rs.106.800 Millions
CIN No.: [Company Identification No.]	U17120MH1994PTC079863
TAN No.: [Tax Deduction & Collection Account No.]	MUMB19506E
PAN No.: [Permanent Account No.]	AAACV5657K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarn and Cloth
No. of Employees :	5200 (Approximately) (Office – 200 and Factory – 5000)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. There appears sharp fall in the profitability during the current year. However, general financial position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	LONG TERM BANK FACILITIES : CARE BBB+
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	January, 2013

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 (91-22-22079331)

LOCATIONS

Registered Office/ Mumbai Office :	202, 2^nd Floor, A Wing, Ramji House, 30, Jambulwadi Kalbadevi Road, Mumbai 400 002, Maharashtra
Tel No.:	91-22-22079331/ 4
Mobile No.:	91-9326800006 (Mr. Basantkumar Girdhardas Mohota)
Fax No.:	91-22-22079332
E-Mail :	info@gimatex.co.in mho@gimatex.co.in nimish@gimatex.co.in gimatex@gmail.com accounts@gimatex.co.in
Website :	www.gimatex.co.in
Location :	Owned
Branch Office :	505, Sai Heritage Chs, 5th Floor, Tilak Road, Bhaveshwar Lane, Ghatkopar (East), Mumbai - 400077, Maharashtra, India
Factory 1:	Hinganghat Post Box No.1,Hinganghat – 442301, Maharashtra, India
Tel No.:	91-7153-320969
Fax No.:	91-7153-245158
E-Mail Id :	info@gimatex.co.in
Factory 2:	Wani 7 km. Mile Stone, N. H. No. 7,Village - Wani, Taluka Hinganghat, District Wardha - 442301, Maharashtra, India
Tel No.:	91-7153-320799
Fax No.:	91-7153-256341
E-Mail Id :	info@gimatex.co.in
Dholka Office :	Dholka Near Microwave Tower, Transad Road, Dholka, District Ahmedabad – 387810, Gujarat, India
Tel No.:	91-2714-220075 / 220076
Fax No.:	91-2714-223001
E-Mail Id :	infodholka@gimatex.co.in
Nagpur Office	Nagpur 12, Popular Cloth Market, Gandhibagh, Nagpur 02, Maharashtra, India
Tel No.:	91-712-2768410

DIRECTORS

(AS ON 29.09.2012)

Name :	Mr. Vineetkumar Basantkumar Mohota
Designation :	Director
Address :	Ram Mandir, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	30.05.1981
Date of Appointment :	14.08.2000
DIN No.:	00257059
Name :	Mr. Prashantkumar Basantkumar Mohota
Designation :	Managing Director
Address :	Ram Mandir, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	22.03.1980
Date of Appointment :	06.02.2006
DIN No.:	00268922
Name :	Mr. Basantkumar Girdhardas Mohota
Designation :	Chairman
Address :	Ram Mandir, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	07.04.1957
Date of Appointment :	22.07.2005
DIN No.:	00269026
Name :	Mr. Rameshchand Hansrajji Gandhi
Designation :	Director
Address :	Gandhi Ward, Hinganghat, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	09.06.1951
Date of Appointment :	06.02.2006
DIN No.:	00427698
Name :	Mr. Brajratan Harikisan Bhattad
Designation :	Director
Address :	Ram Mandir, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	01.07.1956
Date of Appointment :	06.02.2006
DIN No.:	00440064
Name :	Mr. Anuragkumar Basantkumar Mohota
Designation :	Director
Address :	Ram Mandir, Wardha- 442301, Maharashtra, India
Date of Birth/Age :	02.07.1987
Date of Appointment :	29.09.2012
DIN No.:	00470393

KEY EXECUTIVES

Name :	Mr. Nimish Parekh
Designation :	Vice President – Export Marketing
Name :	Mr. C L Parikh
Designation :	AVP - Yarn Sales
Name :	Mr. Girish Kochar
Designation :	AVP - Yarn Sales
Name :	Mr. Dwarkadas Daga
Designation :	General Manager – Fabric Sales
Name :	Mr. G K Rajpuria
Designation :	DGM – Cotton Sales
Name :	Mr. Rajiv Sharma
Designation :	HR Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

SHAREHOLDER DETAILS FILE ATTACHED

(AS ON 29.09.2012)

Category	Percentage
Bodies corporate	76.39
Directors or relatives of directors	15.79
Others	7.82
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Yarn and Cloth

Products :

Products Description	ITC Code
Cotton Yarn	5205
Synthetic Yarn	5509
Fabrics	5208

GENERAL INFORMATION

No. of Employees :

5200 (Approximately) (Office – 200 and Factory – 5000)

Bankers :

· Bank of India, Nagpur Corporate Banking Branch, S V Patel Marg, Kingsway, Nagpur-440001, Maharashtra, India

· Bank of Baroda, Hinganghat Branch, Ram Mandir Ward, Hinganghat – 442301, Maharashtra, India

· Bank of Baroda, Dharampeth Branch, West High Court Road, Nagpur – 440001, Maharashtra, India

· State Bank of India

· Axis Bank Limited

Facilities :

Secured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWING
Term Loan - From Banks	879.420	1028.104
Deferred Sales Tax Loan	29.951	38.167
Loans taken for Vehicles	4.602	7.027
SHORT TERM BORROWING
Term Loan – From Banks	600.495	651.048
Total	1514.468	1724.346

Banking Relations :	--
Auditors :
Name :	Tapdiya Chandna and Company Chartered Accountant
Address :	Bharat Housing Colony, Wardha- 442301, Maharashtra, India
Pan No.:	AAAFT7405J
Related Parties :	· Gima Manufacturing Private Limited · Gima Investment and Securities Private Limited · Prashant Commercial · Prashant Board Mills · Mahalaxmi Enterprises · Anurag Industries · Nidhi Industries · Pranav Enterprises · Balaji Eterprises · Vineet Eterprises · Shrinath Enterprises · Yash Textile Inudustries · Naman Textile Industries · Shriraman Textile Industries · Shrirang Textile Industries · Navshakti Textile Industries · Shripati Textile Industries

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Share	Rs.100/- Each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1068000	Equity Share	Rs.100/- Each	Rs.106.800 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	106.800	106.800
(b) Reserves & Surplus	712.427	708.528
(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)	819.227	815.328
(3) Non-Current Liabilities
(a) long-term borrowings	1080.070	1124.366
(b) Deferred tax liabilities (Net)	117.223	103.048
(c) Other long term liabilities	3.125	2.775
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1200.418	1230.189
(4) Current Liabilities
(a) Short term borrowings	734.442	819.227
(b) Trade payables	766.483	627.514
(c) Other current liabilities	202.971	185.282
(d) Short-term provisions	36.191	59.135
Total Current Liabilities (4)	1740.087	1691.158
TOTAL	3759.732	3736.675
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1656.994	1680.696
(ii) Intangible Assets	0.751	5.655
(iii) Capital work-in-progress	3.142	19.279
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	11.883	11.883
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	8.764	23.172
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1681.534	1740.685
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	884.149	916.090
(c) Trade receivables	767.716	593.354
(d) Cash and cash equivalents	75.657	108.066
(e) Short-term loans and advances	119.612	203.793
(f) Other current assets	231.064	174.687
Total Current Assets	2078.198	1995.990
TOTAL	3759.732	3736.675

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		98.450
2] Share Application Money		0.000
3] Reserves & Surplus		522.282
4] (Accumulated Losses)		0.000
NETWORTH		620.732
LOAN FUNDS
1] Secured Loans		1285.353
2] Unsecured Loans		150.515
TOTAL BORROWING		1435.868
DEFERRED TAX LIABILITIES		0.00
OTHER LIABILITY		134.403
TOTAL		2191.003
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1214.775
Capital work-in-progress		108.904
INVESTMENT		12.883
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	570.876
	Sundry Debtors	423.422
	Cash & Bank Balances	41.384
	Other Current Assets	5.549
	Loans & Advances	253.556
Total Current Assets		1294.787
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	368.584
	Other Current Liabilities	73.457
	Provisions	0.000
Total Current Liabilities		442.041
Net Current Assets		852.746
MISCELLANEOUS EXPENSES		1.695
TOTAL		2191.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Gross Revenue	4934.700	4095.200	2834.800
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		376.600	545.400	310.200
Less	FINANCIAL EXPENSES		206.200	126.600	94.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		170.400	418.00	215.300
Less/ Add	DEPRECIATION/ AMORTISATION		148.900	204.100	138.300
	PROFIT BEFORE TAX		21.500	214.700	77.000
Less	TAX		18.900	73.200	5.800
	PROFIT AFTER TAX		2.600	141.500	71.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		447.300	305.800	234.600
	BALANCE CARRIED TO THE B/S		449.900	447.300	305.800
	EARNINGS IN FOREIGN CURRENCY		1621.200	1321.100	509.600
	Earnings Per Share (Rs.)		2.42	140.44	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	0.57	5.79	3.07
Return on Investment (ROI) (PBT/Networth)		0.03	0.26	0.12
Debt Equity Ratio (Total Debt /Networth)		2.21	2.38	2.31
Current Ratio (Current Asset/Current Liability)		1.19	1.18	2.93

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	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

NOTE:

The Registered Office of the company has been shifted from 3^rd Floor, 63 Princes Street, Mumbai, Maharashtra, India, to the present address w.e.f. 01.10.2009.

PERFORMANCE HIGHLIGHTS AND REVIEW:

During the year, turnover of the Company increased by 18.94 % from Rs.4073.600 Millions in the financial year 2010-11 to Rs.4845.100 Millions during the current financial year 2011-12.

Export turnover of the company increased by 22.87 % from Rs.1321.000 Millions in the previous year to Rs. 1623.200 Millions during the year and it constitutes 33.47 % of the total turnover during current year.

The Company has earned Gross Profit of Rs.376.600 Millions for the year 2011-12 which is short by Rs.168.800 Millions as against Gross Profit of Rs.545.400 Millions in the year 2010-11.

Capital expenditure of Rs.110.500 Millions towards Modernization / Upgradation of its plant .It has been financed through internal accruals and term loan taken.

OVERVIEW OF ECONOMY:

The cotton spinning industry faced unprecedented challenges and global recession due to steep decline in cotton price during the year. Also due to flip flop in policy decision of government in relation to export of cotton has caused much volatility in cotton yarn prices with consequential effect on profit margin. On the basis of cotton yarn shortage from value added sector government restricted its export and due to its excess supply and less demand in domestic market cotton yarn prices experienced even steeper decline.

Cotton being a seasonal product need to be stocked for 3 to 4 months requirements. The cotton prices experienced a steep decline in first and second quarter of the financial year, the average cotton price came down to half of the previous year's price in March, 2011 and thus lead to depletion of stock and since our company generally stocks cotton for atleast six months suffered significant losses. The whole of cotton sector suffered as nobody expected such a steep decline.

High volatility in value of rupee as against other currencies resulted in further deterioration in sales realization. Due to exposure of Foreign Currency Loans our company was adversely affected by sharp fluctuation in exchange rates of Rupee against US $ . The short fall in global demand attributed by tough economic conditions in developed economies has not been compensated by surge in domestic demand leading to excess supply situations.

Rise in electricity prices and increase in finance cost due to revision in base rates by RBI and increase in working capital cycle period further reduced margin.

FUTURE OUTLOOK AND PLANS:

Yarn Prices for financial year 2012-13 has started stabilizing and creating a space for profit margin. India has now become second largest producer of cotton. A huge cotton crop expected this year will result in better availability of cotton for textile products.

Indian currency strengthening against USD and other foreign currencies will result in stabilization in textile market and better realization in following year.

The non availability of power in Andhra Pradesh and Tamilnadu has reduced supply of textile products and this will help all manufacturers who have reliable power supply.

The company has investing into high value addition products and diversifying the product portfolio range that will strengthen our performance and customer base.

In responding to robust demand and margin for its weaved products the company is planning to almost double its weaving capacity and taking effective steps to bring down the production cost and overheads. The company is hopeful that these measures would yield good result in future.

UNSECURED LOAN DETAILS

(Rs. In Millions)

PARTICULARS	31.03.2012	31.03.2011
LONG TERM BORROWING
LOANS AND ADVANCES
From Directors	84.900	0.000
From Others	81.196	51.068
SHORT TERM BORROWING
LOANS AND ADVANCES
From Directors	37.099	93.662
From Others	96.849	74.517
Total	300.044	219.247

CONTINGENT LIABILITY

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Bank guarantees given for Loans of related parties	174.195	174.195
Outstanding balance	6.551	102.848
Disputed statutory dues
Service Tax	1.207	1.207
Sales Tax	0.028	0.028

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10153813	06/04/2013 *	296,800,000.00	BANK OF INDIA	NAGPUR MID CORPORATE BRANCH, S V PATEL MARG, KINGSWAY, NAGPUR, Maharashtra - 440001, INDIA	B74241746
2	10121139	22/08/2008	80,000,000.00	BANK OF BARODA	RAM MANDIR WARD, HINGANGHAT, Maharashtra - 442301,  INDIA	A45122124
3	10114060	16/07/2008	100,000,000.00	Axis Bank Limited	M.G. HOUSE, RABINDRANATH TAGORE MARG, CIVIL LINES, NAGPUR, Maharashtra - 440001, INDIA	A42006205
4	10058253	18/06/2007	45,000,000.00	BANK OF BARODA	HINGANGHAT BRANCH, RAM MANDIR WARD, HINGANGHAT, Maharashtra - 442301, INDIA	A18096073
5	10059580	28/05/2007	150,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, N.G.N. VAIDYA MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA	A18910893
6	10058231	16/05/2007	100,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, N.G.N. VAIDYA MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA	A18202143
7	10053622	09/05/2007	100,000,000.00	UTI BANK LIMITED	SANSKRUTIC SANKUL, RANI JHANSI SQUARE, SITABULDI, NAGPUR, Maharashtra - 440012, INDIA	A16043903
8	10044119	13/03/2007	50,000,000.00	BANK OF BARODA	HINGANGHAT BRANCH, RAM MANDIR WARD, HINGANGHAT, Maharashtra - 442301, INDIA	A13130257
9	10027474	21/11/2006	50,000,000.00	BANK OF INDIA	CORPORATE BANKING BRANCH, KINGSWAY, NAGPUR, NAGPUR, Maharashtra - 440001, INDIA	A07345226
10	10008668	19/06/2013 *	2,696,429,000.00	BANK OF BARODA	HINGANGHAT BRANCH, RAM MANDIR WARD, NAGPUR, Maharashtra - 442301, INDIA	B79491106
11	10008669	19/06/2013 *	2,696,429,000.00	BANK OF BARODA	DHARAMPETH BRANCH, WEST HIGH COURT ROAD, NAGPUR,  Maharashtra - 440001, INDIA	B79491247
12	80036145	06/06/2008 *	100,000,000.00	BANK OF INDIA	NAGPUR CORPORATE BANKING BRANCH, KINGSWAY, S.V. PATEL MARG, NAGPUR, Maharashtra - 440001, INDIA	A41456724
13	90158315	16/02/2004	50,000,000.00	BANK OF BARODA	HINGANGHAT BRANCH, WARDHA, Maharashtra, INDIA	-
14	90160577	09/05/2003	192,300,000.00	BANK OF BARODA	HINGANGHAT BRANCH, WARDHA, Maharashtra, INDIA	-
15	90158091	09/05/2003 *	50,000,000.00	BANK OF BARODA	HINGANGHAT BRANCH, WARDHA, Maharashtra, INDIA	-
16	90158059	09/05/2003 *	30,000,000.00	BANK OF BARODA	HINGANGHAT BRANCH, WARDHA, Maharashtra, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Factory Building
• Non Factory Building
• Plant and Machinery
• Electrical Installation
• General Equipments
• Computer
• Furniture and Fixture
• Motor Car
• Cycle
• Motor Lorries and Fixture
• Scooter

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.61.43
UK Pound	1	Rs.95.08
Euro	1	Rs.81.78

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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

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

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

RATING EXPLANATIONS

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

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