MIRA INFORM REPORT

Report Date :

25.02.2013

IDENTIFICATION DETAILS

Name :	LAHOTI OVERSEAS LIMITED
Registered Office :	307, Arun Chambers, Tardeo Road, Mumbai - 400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.04.1995
Com. Reg. No.:	11-087643
Capital Investment / Paid-up Capital :	Rs. 58.459 Millions
CIN No.: [Company Identification No.]	L74999MH1995PLC087643
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 :	Exporter of Yarns, Fabrics and also engaged in Power Generation.
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 2500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : (BBB-)
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	September 12, 2012

Rating Agency Name	CRISIL
Rating	Short term rating : (A3)
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	September 12, 2012

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 :	307, Arun Chambers, Tardeo Road, Mumbai - 400034, Maharashtra, India
Tel. No.:	91-22-23516389/ 90/ 56602167/ 68/ 40500100
Fax No.:	91-22-40500150
E-Mail :	ujwal@lahotioverseas.com aadhitya@lahotioverseas.com umesh@lahotioverseas.com lol@vsnl.com corporateadvisories@mail.com
Website :	http://www.lahotioverseas.com
Dhaka Office :	House 540/6, Road 12 (West) Baridhara D.O.H.S, Dhaka, Bangladesh
Coimbatore Office :	2nd Floor, Tirumalai Tower, 723 B, Avinashi Road, Coimbatore – 641018, Tamilnadu, India
Tel. No.:	91-422-2222282
Fax No.:	91-422-2223116

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Ujwal R. Lahoti
Designation :	Chairman
Name :	Mr. Umesh R. Lahoti
Designation :	Managing Director
Name :	Mr. Aadhitiya U. Lahoti
Designation :	Joint Executive Director
Name :	Mr. Pradeep R. Rathi
Designation :	Director
Name :	Mr. Prakash R. Bang
Designation :	Director
Name :	Mr. Vijay Ajgaonkar
Designation :	Director
Name :	Mr. Prem S. Malik
Designation :	Additional Director
Date of Birth/Age :	70 Years
Experience :	45 Years
Date of Appointment :	28.03.2012

KEY EXECUTIVES

Name :	Mr. Aweline Mendes
Designation :	Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	15133925	51.88
Bodies Corporate	2317500	7.94
Sub Total	17451425	59.82
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	17451425	59.82
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	1816332	6.23
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	4369557	14.98
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	593652	2.04
Any Others (Specify)	4940534	16.94
Clearing Members	690534	2.37
Non Resident Indians	4250000	14.57
Sub Total	11720075	40.18
Total Public shareholding (B)	11720075	40.18
Total (A)+(B)	29171500	100.00
© 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)	29171500	0.00

BUSINESS DETAILS

Line of Business :

Exporter of Yarns, Fabrics and also engaged in Power Generation.

Products :

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

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of India

v ICICI Bank Limited

v DBS Bank Limited

v HSBC Limited

v Punjab National Bank

v Citi Bank N.A.

Facilities :

Secured Loans	31.03.2012	31.03.2011
Term loans	(Rs. In Millions)
From banks	0.000	30.000
Working capital Loans	146.356	177.911
Total	146.356	207.911
Note: a) Particulars of Security : i ) Primary: First hypothecation/Mortgage charge on two wind power machine at district Nandurbar, Maharashtra created out of banks finance ii) Collateral: Hypothecation/ mortgage charge on Company’s existing windmill located at Village Salampalayam, erode, Tamilnadu Of the above, installment of Year 2011-12 has been considered as current maturities of long term debts and re-grouped accordingly under Other Current Liabilities in F.Y 2010-11. As entire amount of term loan has been repaid in the F.Y 2011- 12, no amount stands outstanding either as current maturities or as long term liability.

Banking Relations :	--
Statutory Auditors :
Name :	P. C. Ghadiali and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Internal Auditors :
Name :	Lahoti Navneet and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates :	v Lahoti Terra Knitfab Limited
Subsidiaries :	v Lahoti Spintex Limited v G. Varadan Limited
Other Related Parties:	v PS Ware Information Private Limited v Sri Laxmi Exports (Partnership Firm) v Kirti Stock Brokers Private Limited v Bauble Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

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

Issued :

No. of Shares	Type	Value	Amount
29,382,500	Equity Shares	Rs. 2/- each	Rs. 58.765 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29,171,500	Equity Shares	Rs. 2/- each	Rs. 58.343 Millions
211000	Add: Forfeited Shares		Rs. 0.116 Million
	Total		Rs. 58.459 Millions

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year:

Particulars	31.03.2012
Equity shares with voting rights	Number of shares	Rs. in millions
Opening Balance	29,382,500	58,458,586
Less : Shares Forfeited	211,000	--
Closing Balance	29,171,500	58,458,586

(ii) Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	31.03.2012
Equity shares with voting rights	Number of shares	% holding in that class of shares
Ujwal R Lahoti	3,823,000	13.11
Umesh R Lahoti	4,484,000	15.37
Jayashri U Lahoti	2,375,500	8.14
Manjushri Umesh Lahoti	1,934,500	6.63
Rukmini R Lahoti	1,522,000	5.22
Kirti Stock Brokers Private Limited	1,610,000	5.52
Billion Way Garment Limited	4,250,000	14.57

(iii) Details of forfeited shares:

Class of shares	31.03.2012
	Number of shares	Amount originally paid up Rs. in millions
Equity shares with voting rights	211,000	0.116

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		58.459	58.459	58.459
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		567.338	507.318	457.856
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		625.797	565.777	516.315
LOAN FUNDS
1] Secured Loans		146.356	207.911	257.027
2] Unsecured Loans		0.422	0.422	10.422
TOTAL BORROWING		146.778	208.333	267.449
DEFERRED TAX LIABILITIES		20.880	22.043	15.623
TOTAL		793.455	796.153	799.387
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		111.842	127.297	138.153
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		182.236	240.316	112.770
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.884	68.494	89.164
	Sundry Debtors	279.877	290.372	387.567
	Cash & Bank Balances	39.667	9.324	14.139
	Other Current Assets	47.731	12.691	0.000
	Loans & Advances	129.339	129.067	158.337
Total Current Assets		589.498	509.948	649.207
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.453	26.193	32.997
	Other Current Liabilities	59.167	39.862	50.649
	Provisions	15.501	15.353	17.097
Total Current Liabilities		90.121	81.408	100.743
Net Current Assets		499.377	428.540	548.464
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		793.455	796.153	799.387

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2335.544	3084.597	2657.355
		Other Income	16.982	(14.997)	3.623
		TOTAL (A)	2352.526	3069.600	2660.978
Less	EXPENSES
		Purchases of stock-in-trade	2081.147	2747.973
		Changes in inventories of finished goods, work-in progress and stock-in-trade	(24.389)	20.670
		Employee benefits expense	9.008	7.562
		Other expenses	155.856	152.048
		TOTAL (B)	2221.622	2928.253	2559.491
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		130.904	141.347	101.487
Less	FINANCIAL EXPENSES (D)		16.501	21.938	11.427
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		114.403	119.409	90.060
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.739	20.405	9.095
	PROFIT BEFORE TAX (E-F) (G)		94.664	99.004	80.965
Less	TAX (H)		24.986	35.921	18.689
	PROFIT AFTER TAX (G-H) (I)		69.678	63.083	62.276
	Excess provision for Dividend written back		3.880	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		366.656	321.949	278.063
Less	APPROPRIATIONS
		Transfer to General Reserve	5.226	4.732	4.671
		Dividend	11.669	11.753	11.753
		Tax on Dividend	1.893	1.952	1.997
		Excess provision for Dividend written back	0.000	(0.061)	(0.031)
	BALANCE CARRIED TO THE B/S		421.426	366.656	321.949
	EARNINGS IN FOREIGN CURRENCY
		FOB value of export	2167.386	2944.238	2427.093
	Earnings Per Share (Rs.)		2.38	2.16	0.33

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	1046.500	1166.200	1503.200
Total Expenditure	995.800	1110.800	1445.900
PBIDT (Excl OI)	50.700	55.500	57.300
Other Income	1.000	1.500	1.900
Operating Profit	51.700	56.900	59.200
Interest	5.600	10.600	10.400
Exceptional Items	0.000	0.000	0.000
PBDT	46.100	46.300	48.800
Depreciation	4.200	4.200	4.200
Profit Before Tax	41.900	42.100	44.600
Tax	13.400	11.300	13.600
Provisions and Contingencies	0.000	0.000	0.000
Reported PAT	28.500	30.800	31.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	28.500	30.800	31.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.96	2.06	2.34
Net Profit Margin (PBT/Sales)	(%)	4.05	3.21	3.05
Return on Total Assets (PBT/Total Assets}	(%)	13.50	15.54	10.28
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.16
Debt Equity Ratio (Total Debt/Networth)		0.23	0.37	0.52
Current Ratio (Current Asset/Current Liability)		6.54	6.26	6.44

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 LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	0.422	0.422
Total	0.422	0.422

RESULTS OF OPERATIONS

During the year, the Company has recorded a total income of Rs. 2352.526 Millions, against Rs. 3069.601 Millions in the previous year, with the decrease of 23.36% due to change in the government policies in Cotton export and recession in European countries. Accordingly Net Profit before Taxation for the financial year ended March, 31, 2012 had also been decreased to Rs. 94.664 Millions from Rs. 99.003 Millions which is decreased of 22.28% in the previous year. However, the Profit after Tax increased from Rs. 63.093 Millions to Rs. 69.678 Millions an increase of 10.45%.

MANAGEMENT DISCUS SION 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 9001:2008 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 markets. 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 & 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 “Bronze Trophy” in Merchant Exporters category from TEXPROCIL for the year 2010-2011. Besides above, the Company has received Business World International Business Award for Category – “Best Export House” 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 Upgradation. 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 good times likely to come for the Indian Textile Industry and will do all out efforts to secure the bigger share of the increasing market in future.

The Company has taken proactive steps by opening Liaison office in Bangladesh which is emerging to be one of the big markets for Cotton Textiles. This will help the Company establish closer ties with the buyers and improve its services in this upcoming and potential market. Further the Company has given emphasis on better services and closer interaction with the buyers which has resulted in good growth in the overall profitability of the Company. The Company expects much better sales and profits for the F.Y. – 2012-13.

FINANCIAL AND OPERATIONAL PERFORMANCE

During the year, the Company has recorded a total income of Rs. 2352.526 Millions, against Rs. 3069.601 Millions in the previous year, with the decrease of 23.36%. Net Profit before Taxation for the financial year ended March, 31, 2012 decreased to Rs. 94.664 Millions from Rs. 99.003 Millions which is decreased of 22.28% in the previous year.

However, the Profit after Tax increased from Rs. 63.093 Millions to Rs. 69.678 Millions an increase of 10.45%. 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.

CONTINGENT LIABILITIES:

a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. NIL (Previous Year Rs. NIL).

b) Claims not acknowledged by the Company relating to cases contested by the Company:

(Rs. in millions)

	31.03.2012	31.03.2011
Sales Tax Matter	Nil	0.300
Income Tax Matter (Pending before Appellate Authorities in respect of which the Company is in appeal)	23.166	37.598

FIXED ASSETS

v Export Division

v Land

v Building

v Plant and Machinery

v Furniture and Fixtures

v Motor Car

v Computers

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

INFORMATION DETAILS

Report Prepared by :

BVA

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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.