MIRA INFORM REPORT

Report Date :

23.02.2013

IDENTIFICATION DETAILS

Name :	LAHOTI OVERSEAS LIMITED
Registered Office :	307, Arun Chambers, Tardeo Road, Mumbai - 400034, Maharashtra.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.04.1995
Com. Reg. No.:	11-87643
Capital Investment / Paid-up Capital :	Rs.58.459 Millions
CIN No.: [Company Identification No.]	L7499MH1995PLC087643
TAN No.: [Tax Deduction & Collection Account No.]	MUML04856F/ MUML02121A
PAN No.: [Permanent Account No.]	AAACL2578H
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges
Line of Business :	Exporters of Yarns and Knitted Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2060000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	307, Arun Chambers, Tardeo Road, Mumbai-400034, Maharashtra, India
Tel. No.:	91-22-23516389 / 90 / 56602167 / 68 / 40500100
Fax No.:	91-22-223511930 / 40500150
E-Mail :	lol@vsnl.com corporateadvisories@mail.com
Website :	http://www.lahotioverseas.com

DIRECTORS

Name :	Mrs. Rukmini R Lahoti
Designation :	Chair Person
Name :	Mr. Umesh R Lahoti
Designation :	Managing Director
Name :	Mr. Ujwal R Lahoti
Designation :	Executive Director
Name :	Mr. Pradeep R Rathi
Designation :	Director
Name :	Mr. Arun Godbole
Designation :	Director
Name :	Mr. Prakash R Bang
Designation :	Director
Name :	Mr. Aadhitiya U Lahoti
Designation :	Joint Executive Director
Name :	Mr. Vijay Ajgaonkar
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	15133925	51.51
Bodies Corporate	2317500	7.89
Sub Total	17451425	59.39
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	17451425	59.39
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	1768300	6.02
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4625612	15.74
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1190303	4.05
Any Others (Specify)	4346860	14.79
Non Resident Indians	4345044	14.79
Trusts	1816	0.01
Sub Total	11931075	40.61
Total Public shareholding (B)	11931075	40.61
Total (A)+(B)	29382500	100.00

BUSINESS DETAILS

Line of Business :

Exporters of Yarns and Knitted Fabrics.

Products :

Products Description	ITC Code No.
Trading in Yarn, Fabric and Raw Cotton	520300

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Punjab National Bank

v Citi Bank N.A.

v HSBC Bank Limited

v State Bank of India

v DBS Bank Limited

v Union Bank of India

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
Pre and Post Shipment Credit for Banks (Secured against hypothecation of stock and book debts )	197.007	39.098
Term Loan from Bank	60.000	0.000
Add: Interest Accrued (Secured by way of equitable mortgage Against Wind Power machine at Distt. Nandurbar, Maharashtra	0.020	0.000
Total	257.027	39.098
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
From Others (Inter-corporate deposits)	10.422	0.424
Total	10.422	0.424

Banking Relations :	-
Auditors :
Name :	P.C. Ghadiali and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Name :	Lahoti Navneet and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Subsidiary Companies:	Lahoti Spintex Limited G.Varadan Limited
Associate Companies:	Lahoti Terra Knitfab Limited
Other Related Parties:	PSWare Information Private Limited Sri Lakshmi Exports (Partnership Firm) Kirti Stock Brokers Private Limited Bauble Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs.2/-each	Rs.60.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29,382,500	Equity Shares	Rs.2/-each	Rs.58.765 millions
	Less : Calls in Arrears [211,000 Equity Shares]		Rs .0.306 million
			Rs.58.459 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		58.459	58.459	58.459
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		457.856	409.288	407.885
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		516.315	467.747	466.344
LOAN FUNDS
1] Secured Loans		257.027	39.098	55.198
2] Unsecured Loans		10.422	0.424	0.000
TOTAL BORROWING		267.449	39.522	55.198
DEFERRED TAX LIABILITIES		15.623	16.956	19.406
TOTAL		799.387	524.225	540.948
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.153	96.252	128.347
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		112.770	96.971	81.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	89.164	13.444	46.222
	Sundry Debtors	387.567	235.087	255.566
	Cash & Bank Balances	14.139	39.791	4.219
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	158.337	80.183	107.466
Total Current Assets		649.207	368.505	413.473
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32.997	20.821	32.952
	Other Current Liabilities	50.649	8.333	7.999
	Provisions	17.097	8.349	40.951
Total Current Liabilities		100.743	37.503	81.902
Net Current Assets		548.464	331.002	331.571
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		799.387	524.225	540.948

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	2505.874	1496.685	1985.667
		Export Incentives	125.672	19.387	41.659
		Exchange Rate Gain / (Loss)	11.349	[12.005]	0.000
		Sale of Power	14.460	14.544	17.908
		Other Income	3.623	3.072	5.051
		TOTAL (A)	2660.978	1521.683	2050.285
Less	EXPENSES
		Cost of Sales	2448.089	1393.702	1870.133
		Office, Administrative and Selling Expenses	111.402	86.243	120.986
		Loss on Sale of Fixed Assets	0.000	8.982	0.000
		Loss on Sale of Investments	0.000	1.027	0.000
		TOTAL (B)	2559.491	1489.954	1991.119
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		101.487	31.729	59.166
Less	FINANCIAL EXPENSES (D)		11.426	5.982	12.313
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		90.061	25.747	46.853
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.096	13.326	17.280
	PROFIT BEFORE TAX (E-F) (G)		80.965	12.421	29.573
Less	TAX (H)		23.592	2.804	3.230
	PRIOR PERIOD ADJUSTMENTS		4.903	[1.391]	0.000
	PROFIT AFTER TAX (G-H) (I)		62.276	8.226	26.343
	Excess / [Short] Provision		0.000	0.000	[1.057]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		278.063	276.675	261.858
Less	APPROPRIATIONS
	General Reserve		4.671	0.000	2.218
	Proposed Dividend		11.753	5.876	7.052
	Corporate Dividend Tax		1.997	0.999	1.199
Less	Excess provision for Dividend written back		[0.031]	[0.037]	0.000
	BALANCE CARRIED TO THE B/S		321.949	278.063	276.675
	EARNINGS IN FOREIGN CURRENCY
	FOB Value of Export		2427.093	1442.015	-
	TOTAL EARNINGS		2427.093	1442.015	NA
	Earnings Per Share (Rs.)		2.13	0.33	0.99

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Sales Turnover	959.270	550.360	1088.320	508.260	538.340
Total Expenditure	931.380	526.530	1025.970	452.510	502.090
PBIDT (Excl OI)	27.890	23.830	62.350	55.750	36.250
Other Income	0.130	1.950	0.580	1.750	1.020
Operating Profit	28.020	25.780	62.930	57.500	37.270
Interest	6.430	4.720	5.120	5.530	3.500
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	21.590	21.070	57.810	51.970	33.770
Depreciation	4.990	5.000	5.020	5.400	4.810
Profit Before Tax	16.600	16.070	52.790	46.570	28.960
Tax	4.540	0.000	17.430	12.350	15.100
Reported PAT	12.070	16.070	35.370	34.220	13.860
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	12.070	16.070	35.370	34.220	13.860

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.34	0.54	1.28
Net Profit Margin (PBT/Sales)	(%)	3.23	0.83	1.49
Return on Total Assets (PBT/Total Assets}	(%)	10.28	2.67	5.46
Return on Investment (ROI) (PBT/Networth)		0.16	0.03	0.06
Debt Equity Ratio (Total Liability/Networth)		0.71	0.16	0.29
Current Ratio (Current Asset/Current Liability)		6.44	9.83	5.05

LOCAL AGENCY FURTHER INFORMATION

History:

Subject was incorporated on 24 Apr.'95 as a private limited company and was converted into a public limited company on 26 Apr.'95. The company was promoted by Umesh Lahoti to take over the business of the erstwhile partnership firm Lahoti Exports (a merchant exporter). Lahoti Exports was set up in 1990 to export cotton yarn. The erstwhile partnership firm was exporting cotton yarn to the far-east and middle-east countries like Honkong, South Korea, Srilanka, UAE, etc. In Apr.'96, the company came out with a public issue of 2.000 Millions equity shares of Rs 10 each for cash at a premium of Rs 15 per share aggregating Rs 50.000 Millions, to part-finance the acquisition of Lahoti Exports. Company has bagged the prestigious Award given by TEXPROCIL (The Cotton Textile Export Promotion Council of Govt. of India.) of Gold Trophy for outstanding Export performance in Yarn and Silver Trophy for outstanding export performance in yarn amongst non-quota export for the year 1998-99. Company having its subsidiary company - Goldstate Far East Limited, Hongkong. Company has invested an amount of HK$38, 77,240 towards the share capital.

Financial Performance:

During the year, the Company has recorded a total income of Rs. 2660.977 Millions, against Rs. 1521.683 Millions in the previous year, increase of 74.87%. Net Profit Before Taxation for the financial year ended March, 31, 2010 increased to Rs. 80.965 Millions from Rs. 12.421, which is increased of 551.84% in the previous year.

Exports:

In light of the favourable condition in some of the big markets, the Company achieved a better export performance due to consistent and timely supply of quality goods. Looking at the new trend emerging in the markets, the company focused on the value added and specialized items for export from the textile industry.

.

Subsidiary /Associate Companies :

The Company as of March 31, 2010 had two subsidiaries, viz Lahoti Spintex Limited and G.Varadan Limited as wholly owned subsidiaries of Lahoti Overseas Limited. And in addition to these Lahoti Terra Knitfab Limited is the associate company as on 31.03.2010.

Listing

At present the Company's Equity Shares are listed at Bombay Stock Exchange, Mumbai and the Company has paid Listing Fees to the Above Exchange for the year 2010-11.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry structure and development:

The textile industry plays a crucial role in the Indian economy. It has a significant weight in the industrial production. Being a priority sector, the Government has extended Technological Up gradation Fund Scheme for providing necessary impetus to achieve quantum growth in the short term.

Lahoti Overseas Limited is an ISO 9001:2000 certified Company and is mainly engaged in the export trading of cotton yarn in all coarser and fine counts, where the Company has strong presence and leadership. The Company is mainly targeting the export of cotton yarn to Far East Asian countries like South Korea, China, Japan, Hong Kong, Malaysia, Vietnam and also cater to Gulf, Meditarian, European, North and South American as well as Russian market. The Company enjoys the excellent relationship with its overseas customers, which has been built over the years by strictly adhering to delivery schedules maintaining consistent quality and providing prompt after sales service.

In Recognition of the Company's excellent export performance, the Company has received Gold, Silver and Bronze trophies consistently since 1997 from TEXPROCIL (Cotton Textile Export Promotion Council) for excellence in export of cotton yarn. The company 'has received the Prestigious "Gold Trophy" in Merchant Exporters category from TEXPROCIL for the year 2008-2009. Besides above, the Company has .received two "Silver Plaque" award from Govt. of Maharashtra for excellent performance in exports.

OUTLOOK:

The long term objective of the Company is to remain strong player in the cotton export market with strong emphasis on product and market development, value added yarns, customer services and Technology Up gradation. The Company is also continuously improving its operational efficiency, and cost control which alone can improve the bottom line in future in highly competitive environment. Further, the Company is hopeful to get advantage of the overall boom likely to happen for the Indian Textile Industry and will do all out efforts to secure the bigger share of the increasing market in future.

Financial And Operational Performance:

The Company has achieved Sales Turnover of Rs. 2505.874 Millions for the year ended 31st March, 2010 which is higher by 74.87% as compared to the previous year. The Company has paid Key Man Insurance Premium of Rs. 1.282 Millions for the year ended 31s1 March, 2010 as against Rs. 1.308 Millions for the corresponding period ending 31st March, 2009. Profit before tax of the company has increased by 551.84% compared to the previous year.

The ongoing cost reduction measures and efficient operational system implemented by the Company has resulted in better utilization of resources and funds of the Company.

Liquidity and Capital Resources

The net cash outflow from the operating activities at Rs. 179.823 Millions as compared to Rs. 65.356 Millions. Cash inflow in the previous year primarily due to change in working capital. The cash used in investment activity increased from Rs. 4.282 Millions to Rs. 63.420 Millions during the year due to acquisition of new WTG at Nandurbar, Maharashtra. The cash inflow from financial activities at Rs. 217.591 Millions as compared to Rs. 25.502 Millions. Cash used in previous year is primarily due to raising further working capital funds.

Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

a) Income tax matters Rs.4.253millions

b) Bill Discounted Rs.11.791 millions (Previous Year Rs.12.382 millions)

Fixed Assets

• Export Division
• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Motor Car
• Computers

As per Website

Business Description

Lahoti Overseas Limited is an India-based company. The Company is engaged in trading in yarn, fabric and raw cotton. The Company investments in building and property. The Company has two segments: trading and wind power. The Company caters mainly to the needs of export markets. Its product range comprises a variety of cotton yarns, including carded and combed ring spun yarns of coarse and fine counts, ply yarns, special yarns and grey fabrics. The Company offers cotton, synthetic, melange, blended and flex yarns. It also offers woven fabrics, such as numbers ducks, plain, drill, twill, satin, drop cloths and sheeting, and knitted fabrics, such as Single Jersey, Rib, Pique, Interlock and French Terry. The Company’s wholly owned subsidiaries include G Vardan Limited and Lahoti Spintex Limited. For the three months ended 30 June 2010, Lahoti Overseas Limited's revenue totaled RS959.4M up from RS427M. Net income increased 42% to RS12.1M. Revenue reflects a rise in income from operations. Net income was offset by an increase in staff costs, a rise in other expenditure, an increase in interest expenses net, a rise in depreciation expenses and the presence of decrease in stock in trade over an increase.

Press Release

Lahoti Overseas Ltd Recommends Dividend

Aug 12, 2011

Lahoti Overseas Ltd announced that the Board of Directors of the Company at its meeting held on August 12, 2011, inter alia, has recommended Final Dividend at 20% for the financial year 2010-2011.

Press Release

Lahoti Overseas Ltd Announces Resignation Of Chairperson

Feb 17, 2011

Lahoti Overseas Ltd announced that Mrs. Rukmini Rambilas Lahoti, Chairperson and Mr. Arun Ramkrishna Godbole, Director of the Company have resigned from the Board of the Company due to their Pre-occupation with other personal matters. The Board has accepted their resignation with effect from February 17, 2011.

Press Release

Lahoti Overseas' director and chairperson resigns

Accord Fintech (India): 17 February 2011

[What follows is the full text of the news story.]

India, Feb. 17 -- Lahoti Overseas has informed that Rukmini Rambilas Lahoti, Chairperson and Arun Ramkrishna Godbole, director of the company have resigned from the board of the company due to their pre-occupation with other personal matters. The board has accepted their resignation with effect from February 17, 2011.The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech

Quarterly Unaudited Financial (Provisional) Results for the period ended 31st March, 2011
 
  Rs. in Millions 

Particular	Year to date figures for the period ended
	31.03.2011
	Unaudited
Net Sales/ Income form operation	3106.216
Other Income	4.408
Expenditure
Increase / Decrease in stock	23.818
Employees cost	7.299
purchase	2745.763
Other expenditure	159.498
Keyman Insurance Premium	0.000
Interest (Net)	21.794
Profit before depreciation and tax	152.452
Depreciation	20.405
Profit / Loss from ordinary activities before tax	132.047
Less: extra ordinary items	19.336
Profit / loss before tax	112.711
Provision for taxation
Current tax	32.036
Deferred tax	6.063
Net profit/ Loss	74.612
Paid up equity share capital (face value of equity shares of Rs. 2/- each)	58.765
Reserves excluding revaluation reserves	--
Earning per shares (in Rs) Basic/ Diluted	2.55
Call in arrears	3.06
Aggregate of non promoter share holding
No. of shares	11926075
% AGE of share holding	40.59%
Promoters and Promoter Group Shareholding	17456425
a) Pledged/Encumbered
- Number of Shares	4339400
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	24.86%
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	14.77%
b) Non Encumbered
- Number of Shares	13117025
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	75.14%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	44.64

Statement of Assets and Liabilities as on 31.03.2011

Rs. in Millions

Particular	Six month ended on 31^st March, 2011 [Unaudited]
Shareholders Fund:
Capital	58.459
Reserves and Surplus	554.239
Loan Funds:	228.271
Total	840.969
Fixed Assets	127.297
Investments	242.210
Current Assets, Loans and Advances
Inventories	65.346
Sundry Debtors	305.260
Cash and Bank Balances	9.143
Other Current Assets	172.360
Less :Current Liabilities and Provisions
Liabilities	48.612
Provisions	32.036
Net Current Assets	471.461
Misc. Expenditure [not written off or adjusted ]	0.000
Profit and loss account	0.000
Total	840.969

Audited Segment wise revenue, results and capital employed

Rs. In million

Particular	3 months ended on 31.03.2011 [Unaudited]	Year to date figures for current period ended on 31.03.2011 [Unaudited]
Segment Revenue
Export Division	505.412	3081.804
Wind Power Division	4.599	28.820
Total	510.011	3110.624
Segment Results
Export Division	[1.056]	91.223
Wind Power Division	7.211	5.184
Total	6.155	96.407
Less : Interest	5.530	21.794
Total Profit Before tax	0.625	74.612
Capital Employed
Export Division	527.691	527.691
Wind Power Division	63.320	63.320
Total	591.011	591.011

Notes:

• The above results have been reviewed by audit committee and approved by board of directors in its meeting held on 13^th May, 2011 and limited review of the same has been carried out by the statutory auditors of the company
• Figures for the previous periods have been regrouped/rearranged/recast to make them comparable with the figures of the current period.
• The company has not received any investors complaints during the quarter ended 31^st March, 2011. There were no complaints at the beginning and at the end of the quarter.

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.54.43
UK Pound	1	Rs.83.20
Euro	1	Rs.71.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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