MIRA INFORM REPORT

Report Date :

24.08.2013

IDENTIFICATION DETAILS

Name :	EUROTEX INDUSTRIES AND EXPORTS LIMITED
Registered Office :	809, Raheja Chambers, 8^th Floor, 213, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.02.1987
Com. Reg. No.:	11-42598
Capital Investment / Paid-up Capital :	Rs.87.401 Millions
CIN No.: [Company Identification No.]	L17120MH1987PLC042598
TAN No.: [Tax Deduction & Collection Account No.]	MUME05241F
PAN No.: [Permanent Account No.]	AAACE1569M
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Trader of Raw Cotton, Yam and Fabric.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 2500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has in cured loss in the current year. However, trade relation are fair. Business is active. Payment terms slow but correct. The company can be considered for business dealing with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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	ICRA
Rating	Term loan: BB+
Rating Explanation	Moderate risk of default.
Date	March 2013

Rating Agency Name	ICRA
Rating	Short term non fund based limits: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 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.

LOCATIONS

Registered Office / Head Office:	809, Raheja Chambers, 8^th Floor, 213, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22041408 / 66301400
Fax No.:	91-22-22044139 / 22873774
E-Mail :	eurotex@bom3.vsnl.net
Website :	http://www.eurotexpatodia.com
Area:	Owned
Factory :	E-23 and E-1, MIDC, Gokul Shirgaon, Kolhapur - 416234, Maharashtra, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. Krishan Kumar Patodia
Designation :	Chairman and Managing Director
Qualification :	B. Sc. Textiles (Hons)
Date of Appointment :	01.10.1988
Name :	Mr. Hariprasad Siotia
Designation :	Director
Name :	Mr. Gopal Patodia
Designation :	Director
Name :	Mr. Narayan Patodia
Designation :	Managing Director
Name :	Mr. Rajiv Patodia
Designation :	Executive Director
Name :	Mr. A. R. Garde
Designation :	Director
Name :	Mr. Dharam Paul
Designation :	Director
Name :	Mr. D. K. Patel
Designation :	Director
Name :	Mr. V. K. Gupta
Designation :	Director
Name :	Mr. Pratap Padamshi Dundh
Designation :	Director
Name :	Mr. M. L Bagaria
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Rahul Rawat
Designation :	Company Secretary
Address:	809, Raheja Chambers, 8th Floor, 213, Nariman Point, Mumbai – 400021, Maharashtra, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	174935	2.00
Bodies Corporate	5949152	67.99
Any Others (Specify)	0	0.00
Sub Total	6124087	69.99
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6124087	69.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7850	0.09
Financial Institutions / Banks	1380	0.02
Insurance Companies	44650	0.51
Sub Total	53880	0.62
(2) Non-Institutions
Bodies Corporate	212280	2.43
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1842365	21.06
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	454598	5.20
Any Others (Specify)	62655	0.72
Non Resident Indians	62655	0.72
Sub Total	2571898	29.39
Total Public shareholding (B)	2625778	30.01
Total (A)+(B)	8749865	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8749865	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of Raw Cotton, Yam and Fabric.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Spindles	Nos.	61632	--
Knitting Machines	Nos.	24	--
Cotton Yarn	Kgs.	--	7133125
Fabrics	Kgs.	--	211279

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Nairman Point Branch, Jamnalal Bajaj Road

· Bank of India

· IDBI Bank Limited

· Export Import Bank of India

· Punjab National Bank

· State Bank of Patiala

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long term borrowing

Term Loans from Financial Institutions

4.700

4.000

Term Loan from Banks

172.800

228.777

Short term borrowing

Working Capital Facilities from Banks

537.512

423.337

Total

715.012

656.114

Note: Term Loans in (a) (i) and (ii) above are secured by way of first mortgage on immovable properties of the Company, both present and future and a first charge by way of hypothecation of all movable properties of the Company (save and except book debts), both present and future, ranking pari passu intense, and second charge created on some immovable properties at Kolhapur, subject to prior charges created in respect of borrowings from banks.

Maturity Profile and Rate of interest on Loans are Set out below:

(Rs. In Millions)

	As on 31.03.2013
Term Loans - From Financial Institutions
Carrying interest rate @3.50% below BPLR	19.128
Carrying interest rate @2.70% above LTMLR	--
Term Loans - From Banks
Interest Rate @ 1.50% below BPLR	22.000
Interest Rate @ 3.50% above Base rate	12.000
Interest Rate @ 0.75% below BPLR	16.000
Total	50.000
Grand Total	69.128

Working Capital Facilities and non-fund limits of Rs. 14.922 millions (Previous Year Rs. 14.422 millions) are secured by way of hypothecation of, both present and future, inventories and book debts as well as by way of mortgage of some immovable properties at Kolhapur and second charge created on Company's immovable and other movable assets.

The above Working Capital Facilities carries interest @ 9.70% to 14.25% (Previous Year 12% to 17.5%)

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates :	Eurospin Industries Limited Patodia Syntex Limited PBM Polytex Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
30000000	Preferences Shares	Rs.10/- each	Rs.300.000 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8749865	Equity Shares	Rs.10/- each	Rs.87.498 Millions
	Less: Allotment Money Receivable		Rs.0.097 Million
	Total		Rs.87.401 Millions

Right of Equity Shareholders

Company has only one class of equity shares of par value Rs.10. The holder of this equity share is entitled to one vote per share. In the event of liquidation of the company the holder of equity share will be entitled to receive any of the remaining assets of the company after distribution of the preferential payments. However, no such preferential amounts exist currently. The distribution will be in proportion to the nos. of equity shares held by the shareholders.

Reconciliation of Shares outstanding at the begnning and at the end of the year

Particulars	As on 31.03.2013
	Numbers	Rs. In Millions
Shares outstanding at the beginning of the year	8749865	87.499
Shares issued during the year	--	--
Shares bought back during the year	--	--
Shares outstanding at the end of the year	8749865	87.499
Shareholders holding more than 5% Shareholding
Name of Shareholder	Shares held Holding	No. of %of Shares held Holding
Patodia Syntex Limited	3707272	42.37
PBMPolytex Limited	2231980	25.51

Note: During previous five years, the company has not issued bonus shares/bought back shares/issued shares for consideration other than cash

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	87.401	87.401
(b) Reserves & Surplus	555.802	574.474
(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)	643.203	661.875
(3) Non-Current Liabilities
(a) long-term borrowings	177.800	233.077
(b) Deferred tax liabilities (Net)	135.711	159.724
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	313.511	392.801
(4) Current Liabilities
(a) Short term borrowings	537.512	423.337
(b) Trade payables	282.413	330.771
(c) Other current liabilities	119.106	78.095
(d) Short-term provisions	26.027	14.505
Total Current Liabilities (4)	965.058	846.708
TOTAL	1921.772	1901.384
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	784.064	856.076
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.137	4.255
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	31.827	31.827
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4.302	16.257
(e) Other Non-current assets	59.178	68.337
Total Non-Current Assets	879.508	976.752
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	762.871	600.895
(c) Trade receivables	158.269	198.196
(d) Cash and cash equivalents	18.006	39.301
(e) Short-term loans and advances	8.696	20.582
(f) Other current assets	94.422	65.658
Total Current Assets	1042.264	924.632
TOTAL	1921.772	1901.384

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		87.402
2] Share Application Money		0.000
3] Reserves & Surplus		493.876
4] (Accumulated Losses)		0.000
NETWORTH		581.278
LOAN FUNDS
1] Secured Loans		1035.822
2] Unsecured Loans		0.300
TOTAL BORROWING		1036.122
DEFERRED TAX LIABILITIES		181.780
TOTAL		1799.180
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		985.813
Capital work-in-progress		3.848
Assets held for disposal		2.625
INVESTMENT		31.826
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	769.489
	Sundry Debtors	98.480
	Cash & Bank Balances	7.836
	Other Current Assets	81.346
	Loans & Advances	81.074
Total Current Assets		1038.225
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	247.475
	Other Current Liabilities	9.784
	Provisions	5.898
Total Current Liabilities		263.157
Net Current Assets		775.068
MISCELLANEOUS EXPENSES		0.000
TOTAL		1799.180

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operation	2830.437	2575.489	2076.246
		Other Income	5.191	227.609	52.976
		TOTAL (A)	2835.628	2803.098	2129.222
Less	EXPENSES
		Cost of Material consumed	1135.360	1285.110
		Purchase of stock-in-trade	603.519	436.515
		Manufacturing and operating costs	478.242	423.582
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	124.247	97.556
		Employee benefit expenses	195.236	171.723
		Amount Withdrawn from Revaluation Reserve	(0.709)	(2.752)
		Other expenses	99.534	93.156
		TOTAL (B)	2635.429	2504.890	1858.586
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		200.199	298.208	270.636
Less	FINANCIAL EXPENSES (D)		104.917	121.121	110.787
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		95.282	177.087	159.849
Less/ Add	DEPRECIATION/ AMORTISATION (F)		99.459	103.005	102.154
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(4.177)	74.082	57.695
Less	TAX (H)		13.785	(9.285)	0.260
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(17.962)	83.367	57.435
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		133.793	50.426	(7.009)
	BALANCE CARRIED TO THE B/S		115.831	133.793	50.426
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	1745.629	1729.093	1235.710
	TOTAL EARNINGS		1745.629	1729.093	1235.710
	IMPORTS
		Raw Materials	198.131	27.256	151.735
		Stores & Spares	12.697	17.827	5.931
		Capital Goods	0.000	6.717	1.398
	TOTAL IMPORTS		210.828	51.800	159.064
	Earnings Per Share (Rs.)		(2.05)	9.53	2.32

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.63)	2.98	1.10
Net Profit Margin (PBT/Sales)	(%)	(0.15)	2.88	1.16
Return on Total Assets (PBT/Total Assets}	(%)	(0.22)	3.97	1.09
Return on Investment (ROI) (PBT/Networth)		(0.01)	0.11	0.04
Debt Equity Ratio (Total Debt/Networth)		1.11	0.99	1.78
Current Ratio (Current Asset/Current Liability)		1.09	1.09	4.11

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowing
Promoter’s Contribution	0.300	0.300
Total	0.300	0.300

OPERATIONS

During the year the turnover of the company was Rs. 2728.300 Millions as compared to Rs. 2453.900 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Company is having cotton spinning and knitted fabrics manufacturing unit. Textile is the oldest and most important industry with a high employment potential. The textile industry provides jobs for semi-skilled and unskilled labourers, women in particular, on a large scale in the country.

Eurotex has a state of art modern spinning mills manufacturing and exporting cotton yarn all over the world.

SEGMENT OR PRODUCTWISE PERFORMANCE

The Company operates primarily in one business segment viz cotton yarn and knitted fabric and has its production facilities and assets located in India. Hence segment-wise or product-wise performance is not given.

OUTLOOK, RISKS AND CONCERN

The Company has invested substantially in modernization and up gradation of its production facilities and the Company is poised to take maximum advantage of demand in quality goods in post quota regime.

The exchange rate fluctuations, power cost increase due to increase in oil prices and state grid power rates are the risks and the matters of concern and may adversely affect its profitability.

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particulars	31.03.2013	31.03.2012
Amount outstanding in respect of Bills discounted under Export Letter of Credit (Since realized Rs.94.149 millions, Previous Year Rs.103.293 millions)	141.383	225.896
Disputed Statutory claims / levies, including, those pending in court and other claims not acknowledged as debts (excluding interest where not ascertained / demanded) in respect of:
Sales tax	51.561	46.113
Income tax	3.619	21.702
Excise duty	141.179	141.179
Custom duty	13.639	0.531

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2013

(Rs. In Millions)

S. No		Particulars	30.06.2013
			Unaudited
1		Income from operations
		Net Sales/ Income from operations (Net of Excise Duty)	63410.300
		Other operating Income	2196.200
		Total Income from operations (a + b)	65606.500
2		Expenses
		a) Cost of materials consumed	31940.600
		b) Purchase of traded goods	12649.300
		c) Changes in inventories of Finished goods and work in progress & Traded goods	(5320.900)
		d) Employee benefit expense	5254.800
		e) Power and Fuel	6739.800
		f) Depreciation and Amortization Expenses	2399.000
		g) Other Expenses	7228.600
		Total Expenses (a to g)	60891.200
3		Profit / loss from operations before Other Income, Finance Cost & Exceptional Items (1-2)	4715.300
4		Other Income	--
5		Profit / loss before Finance cost & Exceptional Items ( 3+4 )	4715.300
6		Finance Cost	2705.400
7		Profit / loss after Finance cost but before Exceptional Items (5-6)	2009.900
8		Exceptional Items	--
9		Profit / loss from ordinary activities after tax (7-8)	2009.900
10		Tax expense
		a) Current Tax	1152.100
		b) Deferred Tax Liability/ (Asset)	(638.100)
		c) Prior Years Tax Adjustments	--
		Tax expense	514.000
11		Net Profit / loss from ordinary activities after Tax (9-10)	1495.900
12		Extraordinary Items (Net of tax expense)	--
13		Net Profit / loss for the period (11-12)	1495.900
14		Paid up Equity Share Capital ( Face value of Rs. 10/- per equity share )	8740.200
15		Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--
16		Earnings per Rs. 10/- Share
		Basic and diluted EPS before Extraordinary Items (not to be annualized)	1.71
15		Basic and diluted EPS before Extraordinary Items (not to be annualized)	1.71
A	Particulars of Shareholding
1	Public Shareholding
	- Number of Shares		2625778
	- Percentage of Shareholding		30.01%
2	Promoters and Promoter group Shareholding
	a) Pledged / Encumbered
	- Number of Shares		Nil
	- Percentage of Shares ( as a % of the total shareholding of promoters and promoter group )		Nil
	- Percentage of Shares ( as a % of the total share capital of the company )		Nil
	b) Non - encumbered
	- Number of Shares		6124087
	- Percentage of Shares ( as a % of the total shareholding of promoters and promoters group )		100.00%
	- Percentage of Shares ( as a % of the total share capital of the company )		69.99%

INVESTOR COMPLAINTS FOR THE QUARTER ENDED 30.06.2013

Pending at the beginning of the quarter	Received during the quarter	Disposed of during the quarter	Remaining unresolved at the end of the quarter
Nil	2	2	Nil

*Not Required to be shown

Note:

1. The above financial results have been reviewed by the Audit Committee and were there after approved and taken on record at the Board of Directors in their meeting held on 3^rd August 2013. The same were also reviewed by the statutory Auditors of the company.

2. In terms of accounting standard 17, the company operates primarily only in one business segment viz. Cotton yam and has its production facilities and all other assets located in India.

3. The figures for the quarter ended 31^st March 2013 are the balancing figures between the audited figures in respect of the full financial year and the year to date figures upto the third quarter ended 31 December, 2012.

4. Previous periods figures have been regrouped / rearranged wherever necessary to make them comparable to current quarter’s presentation.

FIXED ASSETS

v Land Freehold

v Land Leasehold

v Buildings

v Plant and Machinery

v Electrical Installations

v Office Equipment

v Furniture and Fittings

v Vehicles

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. 64.69
UK Pound	1	Rs. 100.80
Euro	1	Rs. 86.30

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.