MIRA INFORM REPORT

Report Date :

24.01.2013

IDENTIFICATION DETAILS

Name :	OPERA CLOTHING PRIVATE LIMITED
Registered Office :	Unit No. 2, A/2, Shah Nahar Industrial Estate, S. J. Marg, Lower Parel (West), Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.07.2008
Com. Reg. No.:	11-184983
Capital Investment / Paid-up Capital :	Rs.4.300 Millions
CIN No.: [Company Identification No.]	U18101MH2008PTC184983
TAN No.: [Tax Deduction & Collection Account No.]	MUMO04818C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Garments.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was established as a partnership firm in the year 1993 with name ‘Opera Clothing’ and during 2008 it got converted into private limited. It is an established company having moderate track record. There appears huge accumulated losses record by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings a secured 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	SHORT TERM RATING : CRISIL A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	31.03.2012

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. Chandrakumar Tarachand Jain
Designation :	Director
Contact No.:	91-9820084455
Date :	19.01.2013

LOCATIONS

Registered Office :	Unit No. 2, A/2, Shah Nahar Industrial Estate, S. J. Marg, Lower Parel (West), Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-24940775/24972414/24982589/40769000/24940775
Mobile No.:	91-9820157588 (Mr. Anilkumar Tarachand Jain) 91-9820084455 (Mr. Chandrakumar Tarachand Jain)
Fax No.:	91-22-24973391
E-Mail :	sanjay@operaclothing.com info@operaclothing.com anil@operaclothing.com incometax@ukgala.com
Website :	http://www.operaclothing.com
Factory 1 :	Kamal House, 663- D.E.Masrani Lane, Halav Pool, Kurla (West), Mumbai - 400 070, Maharashtra, India
Tel. No.:	91-22-25033203 / 2503 1205
Fax No.:	91-22-25032181
Factory 2 :	Plot no.6116, 4th Phase, G.I.D.C., Vapi – 396195, Gujarat, India
Tel. No.:	91-260-2451210 / 2451211 / 12
Factory 3 :	Plot No. 57/1 (14) Kuntha Road, Dunetha, Nani Daman - 396210, Union Territory of Daman and Diu, India
Tel. No.:	91-260-2260276 / 3091463
Fax No.:	91-260-2260278

DIRECTORS

As on 28.09.2012

Name :	Mr. Anilkumar Tarachand Jain
Designation :	Director
Address :	303, 304, Inder Tower, Gokhale Road (S), Dadar (West), Mumbai – 4000025, Maharashtra, India
Date of Birth/Age :	22.12.1966
Date of Appointment :	23.07.2008
DIN No.:	00238671
Voter ID No.:	ZHS1686427
Name :	Mr. Chandrakumar Tarachand Jain
Designation :	Director
Address :	304, Inder Tower, Gokhale Road (S), Dadar (West), Mumbai – 4000025, Maharashtra, India
Date of Birth/Age :	11.01.1971
Date of Appointment :	23.07.2008
DIN No.:	00238826
Voter ID No.:	ZHS1686419
Name :	Mr. Tarachand Kasturchand Jain
Designation :	Director
Address :	1704, Inder Tower, Gokhale Road (S), Dadar (West), Mumbai – 4000025, Maharashtra, India
Date of Birth/Age :	13.03.1934
Date of Appointment :	23.07.2008
DIN No.:	02111285
Voter ID No.:	ZHS1087071
Name :	Mr. Chetankumar Tarachand Jain
Designation :	Director
Address :	303, 304, Inder Tower, Gokhale Road (S), Dadar (West), Mumbai – 4000025, Maharashtra, India
Date of Birth/Age :	22.04.1974
Date of Appointment :	23.07.2008
DIN No.:	00238849
Voter ID No.:	ZHS1087063

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Tarachand Kasturchand Jain	21500
Anilkumar Tarachand Jain	38700
Chandrakumar Tarachand Jain	38700
Chetankumar Tarachand Jain	38700
Kaml Aben Tarachand Jain	12900
Sadhana Anilkumar Jain	25800
Pinky Chandrakumar Jain	25800
Pinky Chetan Jain	25800
Tarachand Kasturchand Jain (HUF)	8600
Anilkumar Tarachand Jain (HUF)	38600
Chandrakumar Tarachand Jain (HUF)	38700
Chetankumar Tarachand Jain (HUF)	38700
Sonam Anilkumar Jain	100
Akash Anilkumar Jain	25800
Sahil Chandrakumar Jain	25800
Ayush Chetankumar Jain	25800
Total	430000

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Garments.
Products :	Mens/Boys · Shirts(Spring / Summer, Autumn / Winter) · Cargo and Pants · Bermudas and Shorts · Waist coat · T-shirts · Sweatshirts(Hooded Sweatshirts) · Track · Pants Womens/Girls · Tops(Spring / Summer, Autumn / Winter) · Blouses(Spring / Summer, Autumn / Winter) · Skirts · Shorts and Bermudas · Dresses · Beach wear · Sarongs, Kaftans, Scarves and Stoles
Exports :
Products :	Garments
Countries :	· European Country · USA
Terms :
Selling :	Cash / Credit
Purchasing :	Cash / Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

1500 (Approximately)

Bankers :

State Bank of Patiala, Inder Tower, Gokhale Road(South), Dadar(West), Mumbai - 400013, Maharashtra, India

Facilities :

Cash Credit: Rs.20.000 Millions (State Bank of Patiala)

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long Term Borrowing

Term Loans

From Banks

0.236

0.844

From NBFC

0.289

0.000

Short Term Borrowings

0

0

- Loans repayable on demand from banks

2.384

2.758

- Short term loans and advances from banks

172.734

183.885

Total

175.643

187.487

Details of Security:

Term Loan from Banks and NBFC are secured by way of exclusive first charge created by hypothecation of the assets (vehicles) for which the loans are taken.

Details of Terms of repayment:

Rs. In Millions

			Outstanding Balance
Details of Installments	Period of Loan	Rate of Interest	March 31, 2012	March 31, 2011
i. 35 Monthly installments of Rs. 22,750/- each	Oct 15, 2010 to Aug 15, 2013	8.58%	0.361	0.592
ii. 33 Monthly installments of Rs. 32,250/- each	Oct 5, 2010 to Jul 5, 2013	9.50%	0.482	0.807
iii. 35 Monthly installments of Rs. 18,519/- each	Sept 05, 2011 to Aug 01, 2014	11.76%	0.465	--

Loans repayable on demand from bank includes working capital loans and bank overdraft. Loans and advances from banks includes Packing Credit Foreign Currency Loan, Packing Credit Loan, Drawback Loan and Bills Discounted.

Working Capital Loans are secured against Fixed Deposits, Drawback Loan is secured against drawback receivable. Bank Overdraft and other Short Term Loans and advances from bank are secured by hypothecation of entire stock and book debts, Factory property owned by the directors, movable assets and personal guarantees of directors.

Rate of Interest on the borrowings are as follows:

Rs. In Millions

Particulars	Rate of Interest	Outstanding Balance
Packing Credit Loan	Packing Credit Loan	--
Packing Credit Foreign Currency Loan	LIBOR (6 months) + 0.5%	120.451
Others	Base Rate + 1.85%	54.667

Banking Relations :	--
Auditors :
Name :	UKG and Associates Chartered Accountants
Address :	B/11, West View, L.N. Road, Opposite Swaminarayan Temple, Dadar (East), Mumbai – 400014, Maharashtra, India
PAN.:	AABFU2688R
Enterprise under significant influence of Key Management Personnel or their relatives :	· Prime Clothing · Apex Impex · Kamal Garments

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
495000	Equity Shares	Rs.10/- each	Rs.4.950 Millions
5000	6% Non Cumulative Redeemable Preference Share	Rs 10/- each	Rs.0.050 Million
	Total		Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
430000	Equity Shares	Rs.10/- each	Rs.4.300 Millions

Shareholders holding more than 5 % of Equity Shares:

Name of Share Holder	Shares Held	% holding
Mr. Anilkumar Tarachand Jain	38,700	9.00%
Mr. Chandrakumar Tarachand Jain	38,700	9.00%
Mr. Chetankumar Tarachand Jain	38,700	9.00%
Chandrakumar Tarachand Jain HUF	38,700	9.00%
Chetankumar Tarachand Jain HUF	38,700	9.00%
Anilkumar Tarachand Jain HUF	38,600	8.98%
Mrs. Sadhana Anilkumar Jain	25,800	6.00%
Mrs. Pinky Chandrakumar Jain	25,800	6.00%
Mrs. Pinky Chetan Jain	25,800	6.00%
Mr. Akash Anilkumar Jain	25,800	6.00%
Mr. Sahil Chandrakumar Jain	25,800	6.00%
Mr. Ayush Chetankumar Jain	25,800	6.00%

Aggregate number of shares issued as fully paid up for consideration other than cash during the the period of five years immediately preceding the reporting date

- 50,000 Equity shares of Rs.10/- each fully paid have been issued for consideration other than cash pursuant to Part XI conversion in Financial Year 2008-09.

Reconciliation of the number of Equity Shares outstanding

Particular	No. of Shares	Rs. In Millions
Shares at the beginning of the year	430,000	4.300
Add/Less: Changes during the year	-	-
Shares at the end of year	430,000	4.300

The Company has only one type of equity share. Each equity share is entitled to one voting right only.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all the prefrential amounts. The distribution would be in proportion of the number of equity shares held by the equity shareholders.

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		4.300	4.300	4.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	5.700
4] (Accumulated Losses)		(14.536)	(21.296)	(12.218)
NETWORTH		(10.236)	(16.996)	(2.218)
LOAN FUNDS
1] Secured Loans		175.643	187.487	170.042
2] Unsecured Loans		2.298	23.637	34.350
TOTAL BORROWING		177.941	211.124	204.392
DEFERRED TAX LIABILITIES		2.653	0.000	0.000
TOTAL		170.358	194.128	202.174
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.344	89.368	47.803
Capital work-in-progress		51.922	43.177	61.101
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.833	104.548	46.717
	Sundry Debtors	90.265	111.868	126.973
	Cash & Bank Balances	6.704	6.333	6.872
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.906	16.388	21.905
Total Current Assets		164.708	239.137	202.467
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	103.596	132.372	96.178
	Other Current Liabilities	15.385	21.097	11.065
	Provisions	16.635	24.085	1.954
Total Current Liabilities		135.616	177.554	109.197
Net Current Assets		20.092	61.583	93.270
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		170.358	194.128	202.174

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	585.995	568.511	494.992
		Other Income			10.961
		TOTAL	585.995	568.511	505.953
Less	EXPENSES
		Office Expenses
		Administrative Expenses	576.582	516.229	514.013
		Advertising Expenses
		TOTAL	576.582	516.229	514.013
	PROFIT / (LOSS) BEFORE TAX		9.413	7.282	(8.060)
	TAX		2.653	22.949	5.894
	PROFIT / (LOSS) AFTER TAX		6.760	(14.777)	(13.955)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(26.996)	(12.218)	1.736
	BALANCE CARRIED TO THE B/S		(20.236)	(26.996)	(12.218)
	EARNINGS IN FOREIGN CURRENCY
		Sale of Goods	484.280	460.120	384.444
	TOTAL EARNINGS		484.280	460.120	384.444
	TOTAL IMPORTS		NA	6.391	0.000
	Earnings / (Loss) Per Share (Rs.)		15.72	(34.37)	(32.45)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.15	(4.75)	(2.76)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(1.63)
Return on Total Assets (PBT/Total Assets}	(%)	3.43	(4.50)	(3.22)
Return on Investment (ROI) (PBT/Networth)		(0.92)	(0.43)	3.63
Debt Equity Ratio (Total Liability/Networth)		(30.63)	(22.87)	(141.38)
Current Ratio (Current Asset/Current Liability)		1.36	1.35	1.85

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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	Yes
34]	External Agency Rating, if available	Yes

OPERATIONS:

During the year the sales of the Company has increased by 3% (approx) as compared to sales of the previous year in spite of the slow-down in the USA and European markets.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Bills Discounted with Banks	47.248	65.557
Bank Guarantees'	0.222	0.197
Income Tax Demand	1.847	--
Interest on IT Demand*	9.695	9.369

Note:

* For the tax liability of the firm the Company has made an application for waiver of interest with the Chief Commisioner of Income Tax and the same is under consideration, the company's management is confident that the same will be granted and hence no provision is made for the same.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Short Term Borrowings
- Loan from Directors	1.906	3.022
- Loan from Share holders	0.392	0.615
- Other loans and advances	0.000	20.000
Total	2.298	23.637
Loans and advances from directors, shareholders and others being repayable on demand do not have any specified repayment schedule and do not carry any interest obligation.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U18101MH2008PTC184983
Name of the company	OPERA CLOTHING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 2, A/2, Shah Nahar Industrial Estate, S. J. Marg, Lower Parel (West), Mumbai – 400025, Maharashtra, India E-Mail Id : champak@ukgala.com
This form is for	Creation of charge
Type of charge	Others (Corporate Guarantee)
Particular of charge holder	State Bank of Patiala, Inder Tower, Gokhale Road(South), Dadar(West), Mumbai – 400013, Maharashtra, India E-mail Id : jjk@jjkandco.com
Nature of instrument creating charge	Deed of Guarantee.
Date of instrument Creating the charge	16.08.2011
Amount secured by the charge	Rs.20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest At present the rate of interest will be charged at a rate of 2.00% above Base Rate the effective rate will be 11.50% p.a. with monthly rests. (Present rate of Base Rate is 9.50%) Terms of Repayment On being called upon by Bank. Margin On being called upon by Bank. Extent and Operation of the charge On being called upon by Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	On being called upon by Bank.

FIXED ASSETS:

· Land

· Building

· Computer

· Plant and Machinery

· Vehicles

· Furniture and Fixture

· Electric Equipment

· Office Equipment

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.53.77
UK Pound	1	Rs.85.14
Euro	1	Rs.71.57

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	1
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

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.