MIRA INFORM REPORT

Report Date :

23.01.2013

IDENTIFICATION DETAILS

Name :	ARVIND RETAIL LIMITED (w.e.f 09.06.2008)
Formerly Known As :	AAKAR FOUNDATIONWEAR LIMITED
Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.03.2007
Com. Reg. No.:	04-050217
Capital Investment / Paid-up Capital :	Rs. 209.500 Millions
CIN No.: [Company Identification No.]	U18101GJ2007PLC050217
TAN No.: [Tax Deduction & Collection Account No.]	AHMA07047F
PAN No.: [Permanent Account No.]	AAGCA2637Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trade, Retailer and Importer of Readymade Garments
No. of Employees :	1300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. The company is incurring a loss from last two years of operation. However, the company receives good operational and financial support from it’s group company. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

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	CARE
Rating	Short Term Bank Facilities = A2+
Rating Explanation	Strong degree of safety it carry low credit risk.
Date	10.09.2012

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = A-
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	10.09.2012

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.

INFORMATION PARTED BY

Name :	Mr. Manikandan
Designation :	Finance Head
Contact No.:	91-9845197710
Date :	22.01.2013

LOCATIONS

Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India
Tel. No.:	91-79-22208000 / 22203030
Mobile No.:	91-9845197710 (Mr. Manikandan)
Fax No.:	91-79-30138680/ 22200267
E-Mail :	rv.bhimani@arvind.in ananthkrishnamurthy@arvindbrands.com syed@arvindbrands.com manikandan@arvindbrands.com
Website :	www.arvindmills.com
Location :	Owned
Corporate Office :	5^th Floor, 17 M.G. Road, DU Parc Trinity, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-40488775
Fax. No.:	91-80-40488751
Store :	10-3-78/10, Osaman Plaza, Humayu Nagar, Medhipatnam, Hyderabad, Andhra Pradesh, India
Tel. No.:	91-40-23538566

DIRECTORS

As on 29.09.2011

Name :	Mr. Sanjaybhai Shrenikbhai Lalbhai
Designation :	Director
Address :	Lalbaug, Shahibaug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	10.04.1954
Date of Appointment :	31.10.2009
DIN No.:	00008329
Name :	Mr. Jayesh Kantilal Shah
Designation :	Director
Address :	26, Amaltas Bungalows, Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	25.05.1960
Date of Appointment :	31.10.2009
DIN No.:	00008349
Name :	Mr. Munesh Khanna
Designation :	Director
Address :	Beachwood House, Jussawala Wadi, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	12.05.1962
Date of Appointment :	31.10.2009
DIN No.:	00202521
Name :	Mr. Suresh Jayaraman
Designation :	Director
Address :	S02, Magnolat No.170/5, Defence Colony, 5^th Main Indira Nagar, Bangalore – 560038, Karnataka, India
Date of Birth/Age :	25.05.1960
Date of Appointment :	28.10.2010
DIN No.:	03033110

KEY EXECUTIVES

Name :	Mr. Manikandan
Designation :	Finance Head
Name :	K E Venkatachalapathy
Designation :	Secretary
Address :	Flat No.S1, Gold Woods 135/2, Rahat Bagh, C V Raman Nagar, Post Bangalore – 560093, Karnataka, India
Date of Birth/Age :	29.10.1962
Date of Appointment :	01.06.2010
Pan No.:	ABMPV1986B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Lalbhai Realty Finance Private Limited, India	49994
Arvind Brands and Retail Limited, India	20000000
Jagdish Dalal	1
Ramnik V. Bhimani	1
Kajal shah	1
Devanshu Desai	1
Jayesh Thakkar	1
Prakash Makwana	1
TOTAL	20050000

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trade, Retailer and Importer of Readymade Garments
Imports :
Products :	Readymade Garments
Countries :	Bangladesh China
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

1300 (Approximately)

Bankers :

State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Near Mahakant Building, Ellis Bridge, Ahmedabad – 380006, Gujarat, India.

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long term Borrowing

Term Loans:

From Bank

149.393

From Others

2.628

Short term Borrowing

596.730

Working Capital Loans repayable on demand

From Bank

387.310

Total

539.331

596.730

Nature of Security

Term Loans from Banks are secured by:

i. First charge over the entire project assets of the Company both present and future.

ii. Additionally secured by Corporate Guarantee given by Arvind Limited, the ultimate holding company.

Hire Purchase Loan from Others are secured by hypothecation of related vehicles.

Rate of Interest and Terms of Repayment

Particulars	Amount in Rs.	Range of Interest	Terms of Repayment
Bank of Baroda	169.393	13.50%	Repayable in 17 quarterly instalments starting from the year 2011-12
Kotak Mahindra Prime Limited - Hire Purchase Loan	4.162	9 to 11%	Repayable in 48 monthly instalments from the date of release of respective loans

Nature of Security

Loans from banks:

1. Rs. 47,561,164 is secured by first charge over entire stocks, receivables .and other current assets an extension charge over the entire fixed assets of the Company both present and future
2. Rs. 339,748,665 is secured by first charge over entire stocks, receivables and other current assets an first pari passu charge over the entire fixed assets (except project assets) of the Company both preset and future.
3. Both the above loans are additionally secured by Corporate Guarantee given by Arvind Limited, the ultimate holding company,

b Rate of Interest

1. Loans from banks carry interest @ 13% per annum
2. Inter Corporate Deposit carries interest rates ranging from 13.25% to 15% per annum

Banking Relations :	--
Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	909, ATMA House, Opposite Reserve Bank of India, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26584304
Fax No.:	91-79-26589710
E-Mail :	sseahm@hotmail.com
Website :	www.sorabsengineer.com
Pan No. :	AAAFS5191E
Holding Company :	Arvinf Brands and Retail Limited
Fellow Subsidiaries :	Arvind Lifestyle Brands Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20950000	Equity Shares	Rs.10/- each	Rs.209.500 Millions

a. Reconciliation of Number of Shares

Particulars	No. of Shares	Amount in Rs.
Balance at the beginning of the year	20,050,000	200.500
Add :
Shares Issued during the year Balance at the end of the year	900,000	9.000
Balance at the end of the year	20,950,000	209.500

b. Shares allotted as fully paid up pursuant to contracts) without payment being received in cash (during 5 years immediately preceding March 31, 2012)

20,000,000 shares of Rs. 10 each were allotted. as fully paid up in April, 2009 pursuant to the scheme of arrangement without payment being received In cash

c. Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of shares referred to as equity shares having a par value of Rs. 10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

d. Shares held by Holding Company and their Subsidiaries

Particulars	March 31. 2012
Holding Company - Arvind Brands and Retail Limited	20,200,006
Fellow subsidiary - Arvind Lifestyle Brands Limited	700,000

e. Details of Shares held by Shareholders holding more than 5% of the aggregate shares in the Company

Particulars	Number	% of Holding
Holding Company - Arvind Brands and Retail Limited	20,200,000	96.42%

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		209.500	200.500	200.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		637.806	318.029	320.001
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		847.306	518.529	520.501
LOAN FUNDS
1] Secured Loans		539.331	596.730	353.068
2] Unsecured Loans		78.865	315.669	212.747
TOTAL BORROWING		618.196	912.399	565.815
DEFERRED TAX LIABILITIES		0.000	11.823	5.564
TOTAL		1465.502	1442.751	1091.880
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1170.486	1012.304	877.508
Capital work-in-progress		0.083	34.900	8.875
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		46.468	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1429.874	1245.380	955.050
	Sundry Debtors	80.000	52.942	11.921
	Cash & Bank Balances	60.232	11.442	19.330
	Other Current Assets	0.285	0.000	0.000
	Loans & Advances	469.593	381.168	221.371
Total Current Assets		2039.984	1690.932	1207.672
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1612.617	956.182	818.135
	Other Current Liabilities	160.184	332.122	177.762
	Provisions	18.718	8.081	6.278
Total Current Liabilities		1791.519	1296.385	1002.175
Net Current Assets		248.465	394.547	205.497
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1465.502	1441.751	1091.880

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Revenue from operations (Net)	5062.909
		Other Income	22.753
		TOTAL (A)	5085.662
Less	EXPENSES
		Purchases of Stock in Trade	3608.937
		Changes in Inventory of stock-in-trade	(198.663)
		Employee benefits expense"	328.053
		Other expenses	1270.840
		TOTAL (B)	5009.167
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.495
Less	FINANCIAL EXPENSES (D)		139.102
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(62.607)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		116.906
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(179.513)
Less	TAX (H)		(58.290)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(121.223)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.029
	BALANCE CARRIED TO THE B/S		(103.194)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4.924
	TOTAL EARNINGS		4.924
	IMPORTS
		Finished Goods Purchases	27.378
	TOTAL IMPORTS		27.378
	Earnings / (Loss) Per Share (Rs.)
	Basic		(6.04)
	Diluted		(6.04)

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	3726.137	2813.414
		Other Income	21.223	21.484
		TOTAL (A)	3747.360	2834.898
Less	EXPENSES
		Cost of goods sold	2318.302	1744.753
		Employee cost	235.364	206.931
		Operating and administrative expenses	991.293	757.816
		TOTAL (B)	3544.959	2709.500
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		202.401	125.398
Less	FINANCIAL EXPENSES (D)		105.340	21.867
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		97.061	103.531
Less/ Add	DEPRECIATION/ AMORTISATION (F)		91.700	72.731
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		5.361	30.800
Less	TAX (H)		7.333	10.799
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(1.972)	20.001
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.001	0.000
	BALANCE CARRIED TO THE B/S		18.029	20.001
	Earnings /(Loss) Per Share (Rs.)
	Basic		(0.10)	1.00
	Diluted		(0.10)	1.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.38)	(0.05)	0.71
Net Profit Margin (PBT/Sales)	(%)	(3.55)	0.14	1.09
Return on Total Assets (PBT/Total Assets}	(%)	(5.59)	0.20	1.48
Return on Investment (ROI) (PBT/Networth)		0.21	0.01	0.06
Debt Equity Ratio (Total Liability/Networth)		2.84	4.26	3.01
Current Ratio (Current Asset/Current Liability)		1.14	1.30	1.21

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Rs. In Millions

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Other than micro enterprises and small enterprises	1612.617	956.182	818.135
Total	1612.617	956.182	818.135

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	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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

COMPANY BACKGROUND:

Subject is engaged in the business of retailing Apparels. Subject is the pioneer of Apparel Value retailing business in India, under the umbrella brand "Megamart". Megamart today is the largest player in the Branded Apparel Value- Retailing concept. With more than 200 small format stores and four Large Format stores Megamart operates more than 690,000 square feet of Retail space across India.

OPERATION

The company has posted a sales turnover of Rs.5062.909 millions during the year. The operating profit before interest and depreciation stands at Rs.76.495 millions.

CONTINGENT LIABILITIES:

Rs. In Millions

Particular	31.03.2012	31.03.2011
Claims against the Company not acknowledged as Debt	200.000	200.000

Note: It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceeding.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Short term Borrowing
From Ultimate Holding Company	78.865	64.669
From Fellow Subsidiary	0.000	250.000
Total	78.865	314.669

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U18101GJ2007PLC050217
Name of the company	ARVIND RETAIL LIMITED
Address of the registered office or of the principal place of business in India of the company	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India Email : rv.bhimani@arvind.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10190135
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Near Mahakant Building, Ellis Bridge, Ahmedabad – 380006, Gujarat, India Email : c.s@sbi.co.in
Nature of instrument creating charge	Joint deed of hypothecation dated 11th February 2011
Date of instrument Creating the charge	11.02.2011
Amount secured by the charge	Rs.650.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: SBI - Cash Credit - 5.00% above the base rate, presently at 12.50% p.a with monthly rest. The rate of interest is liable to change whenever there is a revision in base rate. BOB - 3.50% above BR Margin: Working Capital SBI BOB Finished goods 30% 30% Receivables 40% 40% LC 15% -- Extent and Operation of the charge: As per BOB's CRA:ADV:CST I:17:502 dated 05.10.2010 and Joint Deed of Hypothecation Dated 11.02.2011
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari - passu charge on the entire stock of Raw Materials, Stocks in Process, Finished goods, Stores and Spares, goods in transit, receivables and other current assets of the Company First pari - pasu charge over entire fixed assets (except project assets) of the Company located at stores / offices and other places.
Date of instrument modifying the charge	29.09.2010
Particulars of the present modification	The charge is extended to cover additional loan as per BOB's letter No. CRA:ADV:CST I:17:502 dated 05.10.2010 and Joint Deed of Hypothecation Dated 11.02.2011

FIXED ASSETS

• Brand value
• Computer software
• Data processing equipments
• Electrical equipments
• Furniture and fixtures
• Leasehold improvement
• Office equipments
• Plant and machineries
• 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.53.51
UK Pound	1	Rs.84.85
Euro	1	Rs.71.43

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.