MIRA INFORM REPORT

Report Date :

24.07.2013

IDENTIFICATION DETAILS

Name :	RAJAPALAYAM MILLS LIMITED RAJAPALAIYAM SPINTEXT - A DIVISION OF RAJAPALAYAM MILLS LIMITED
Registered Office :	Rajapalayam Mills Premises, Post Box No.1, P.A.C. Ramaswamy Raja Salai, Rajapalayam – 626117, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.02.1936
Com. Reg. No.:	18-002298
Capital Investment / Paid-up Capital :	Rs.73.800 Millions
CIN No.: [Company Identification No.]	L17111TN1936PLC002298
TAN No.: [Tax Deduction & Collection Account No.]	MRIR00352C
PAN No.: [Permanent Account No.]	AAACR8897F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Cotton Yarn.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 7000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and well established company having a satisfactory track record. The company has performed well during 2013. Trade relations are reported as fair. Business is active. Payment terms are usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and conditions. Note: The financial for the year 2013 is gathered from indirect source

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A3 (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	23.04.2012

Rating Agency Name	ICRA
Rating	BBB- (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	23.04.2012

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 DECLINED

Management Non-cooperative (91-4563-235666)

LOCATIONS

Registered Office/ Factory 1 :	Rajapalayam Mills Premises, Post Box No.1, P.A.C. Ramaswamy Raja Salai, Rajapalayam – 626117, Tamilnadu, India
Tel. No.:	91-4563-235666
Fax No.:	91-4563-236520
E-Mail :	rajacot@ramcotex.com rajacot@vsnl.com
Website :	http://www.rajapalayammills.co.in
Factory Location:	TEXTILE DIVISION · Rajapalayam, Tamilnadu Rajapalaiyam Spintext, P.A.C. Ramasamy Raja Salai, Rajapalaiyam – 626 117, Tamilnadu, India Rajapalaiyam Textiles, Perumalpatti Village – 627753 Tirunelveil District, Tamilnadu, India Andhra Pradesh Gopinenipalem Village, Vatsavi Mandal, Krishna District – 521190, Andhra Pradesh, India TISSUE CULTURE DIVISION Shri Ramco Bio-Tech, Mailanahalli Village, Nelamangala – 526 123, Bangalore Rural District, Karnataka, India

DIRECTORS

As on: 31.03.2012

Name :	Mr. P.R. Ramasubrahmaneya Rajha
Designation :	Chairman
Qualification :	B.Sc.
Name :	Mrs. R. Sudarsanam
Designation :	Managing Director
Name :	Mr. P.R. Venketrama Raja
Designation :	Director
Qualification :	B. Tech., M.B.A.,
Name :	Mr. S. S. Ramachandra Raja
Designation :	Director
Qualification :	B.Sc.,
Name :	Mr. N. K. Ramasuwami Raja
Designation :	Director
Qualification :	B.Sc.,
Name :	Dr. K. T. Krishnan
Designation :	Director
Qualification :	M.D., F.C.C.P.
Name :	Mr. P. S. Jaganatha Raja
Designation :	Director
Name :	Mr. N. R. K. Venkatesh Raja
Designation :	Director
Qualification :	B.E.
Name :	Mr. V.S. Vemban
Designation :	Director
Name :	Mr. A.V. Dharmakrishnan
Designation :	Director
Qualification :	B. Com., ACA.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2014760	27.31
Bodies Corporate	1905440	25.83
Sub Total	3920200	53.15
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3920200	53.15
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2060	0.03
Sub Total	2060	0.03
(2) Non-Institutions
Bodies Corporate	189191	2.56
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1733629	23.50
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1531080	20.76
Sub Total	3453900	46.83
Total Public shareholding (B)	3455960	46.85
Total (A)+(B)	7376160	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	7376160	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarn.

Products :

Products Description	Item Code No.
Cotton Yarn	5205
Tissue Culture Plants	06029909

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Spindles	Nos	125792
Rotors	Nos	3816
Wind Mills	MW	30.70

Particulars	Unit	Actual Production
Yarn	Kgs	13728874
Power from wind Mills	Lakh – KWH	443

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Axis Bank Limited

· Canara Bank

· City Union Bank

· Corporation Bank

· IDBI Bank Limited

· Indian Bank

· Karur Vysya Bank Limited

· Kotak Mahindra Bank Limited

· Punjab and Sind Bank

· State Bank of India

· Tamilnad Mercantile Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loan from Banks	1841.346	2216.538
SHORT TERM BORROWINGS
Loan Repayable on Demand from Banks *	541.579	946.124
Total	2382.925	3162.662
Note: * Loan Repayable on Demand from Banks are secured by pari-passu charge on the current assets of the Company and a second charge on the fixed assets of the Company.

Banking Relations :	--
Auditors 1 :
Name :	M.S. Jagannathan and N. Krishnaswami Chartered Accountants
Address :	Unit - 5, Ground Floor, Abirami Apartments, No.14, V.O.C. Road, Cantonment, Tiruchirappalli – 620001, Tamilnadu, India
Auditors 2 :
Name :	Ramakrishna Raja and Company Chartered Accountants
Address :	1-D, Shanthinikethan, V P Rathinasamy Nadar Road, Madurai - 625002, Tamilnadu, India
Subsidiary Company : (As on 31.03.2012)	· Rajapalayam Spinners Limited
Enterprises over which the above persons exercise significant influences : (As on 31.03.2012)	· Madras Cements Limited · Sri Vishnu Shankar Mill Limited · The Ramaraju Surgical Cotton Mills Limited · Thanjavur Spinning Mill Limited · Ramco Industries Limited · Ramco Systems Limited · Sandhya Spinning Mill Limited · Sri Harini Textiles Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.73.800 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7376160	Equity Shares	Rs.10/- each	Rs.73.762 Millions

a. Issued, Subscribed and fully Paid-up Shares includes 6213850 Equity Shares (PY: 2701270 Equity Shares) of Rs. 10/- each were allotted as fully paid Bonus Shares by Capitalisation of Reserves.

b. Reconciliation of the number of shares outstanding

	As at 31-03-2012
Particulars	No. of Shares	Amount (Rs. In Millions)
Number of shares at the beginning	3512580	35.126
Issued during the Year - Bonus Issue	3512580	35.126
Issued during the Year - Preferential Allotment	351000	3.510
Number of Shares at the end	7376160	73.762

c. Rights / Restrictions attached to Equity Shares

1. There are no special rights attached to equity shares other than those specified under provisions of various Acts.

2. The preferential allotment of 351000 equity shares made on 25.11.2011 are subject to a lock-in period of three years from the date of allotment.

d. List of Shareholders holding more than 5 percent in the Company.

	As at 31-03-2012
Particulars	No. of Shares	% of holding
P.R. Ramasubrahmaneya Rajha	988792	13.41%
P.R. Venketrama Raja	744560	10.09%
Ramco Industries Limited	847360	11.49%
Madras Cements Limited	725600	9.84%

e. Aggregate number of Equity Shares alloted as fully paid up by way of Bonus Shares during the last 5 years : 3512580.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		73.800
2] Share Application Money		0.000
3] Reserves & Surplus		1681.400
4] (Accumulated Losses)		0.000
NETWORTH		1755.200
LOAN FUNDS
1] Secured Loans		2274.800
2] Unsecured Loans		184.700
TOTAL BORROWING		2459.500
DEFERRED TAX LIABILITIES		0.000
TOTAL		4214.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2854.200
Capital work-in-progress		17.700
INVESTMENT		464.500
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	789.600
	Sundry Debtors	367.000
	Cash & Bank Balances	45.100
	Other Current Assets	0.000
	Loans & Advances	822.500
Total Current Assets		2024.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	998.600
	Provisions	147.300
Total Current Liabilities		1145.900
Net Current Assets		878.300
MISCELLANEOUS EXPENSES		0.000
TOTAL		4214.700

Note: The financial for the year 2013 is gathered from indirect source

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	73.762	35.126
(b) Reserves & Surplus	1495.177	1447.093
(c) Money received against share warrants	0.000	0.000
	0	0
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1568.939	1482.219
(3) Non-Current Liabilities
(a) long-term borrowings	1854.116	2231.126
(b) Deferred tax liabilities (Net)	340.080	406.176
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	44.189	47.100
Total Non-current Liabilities (3)	2238.385	2684.402
(4) Current Liabilities
(a) Short term borrowings	733.009	1488.881
(b) Trade payables	214.505	185.468
(c) Other current liabilities	410.033	421.991
(d) Short-term provisions	47.151	193.449
Total Current Liabilities (4)	1404.698	2289.789
TOTAL	5212.022	6456.410
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3119.606	3278.345
(ii) Intangible Assets	1.213	2.595
(iii) Capital work-in-progress	2.811	12.408
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	441.720	389.053
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	356.500	582.368
(e) Other Non-current assets	118.068	118.588
Total Non-Current Assets	4039.918	4383.357
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	591.249	1180.190
(c) Trade receivables	320.622	405.192
(d) Cash and cash equivalents	38.189	63.812
(e) Short-term loans and advances	119.931	258.256
(f) Other current assets	102.113	165.603
Total Current Assets	1172.104	2073.053
TOTAL	5212.022	6456.410

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		Income	3446.600
		Other Income	135.800
		TOTAL (A)	3582.400
Less	EXPENSES
		Raw Materials	56.400
		Power & Fuel Cost	1680.900
		Employee Cost	292.200
		Other Manufacturing Expenses	343.700
		Selling and Admin Expenses	164.700
		Miscellaneous Expenses	160.900
		TOTAL (B)	2698.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		883.600
Less	FINANCIAL EXPENSES (D)		264.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		618.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		281.300
	PROFIT BEFORE TAX (E-F) (G)		337.500
Less	TAX (H)		99.800
	PROFIT AFTER TAX (G-H) (I)		237.700
	Earnings Per Share (Rs.)		32.23

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	3272.309	3260.131
		Other Income	199.095	109.492
		TOTAL (A)	3471.404	3369.623
Less	EXPENSES
		Cost of Materials Consumed	1705.834	1544.737
		Changes in Inventories of Finished Goods and Work-in-progress	147.124	(253.183)
		Employee Benefit Expenses	293.932	293.138
		Other Expenses	706.078	789.943
		TOTAL (B)	2852.968	2374.635
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		618.436	994.988
Less	FINANCIAL EXPENSES (D)		370.618	285.078
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		247.818	709.910
Less/ Add	DEPRECIATION/ AMORTISATION (F)		300.755	321.107
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(52.937)	388.803
Less	TAX (H)		(66.096)	120.100
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		13.159	268.703
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.398	96.931
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	280.000
		Dividend	7.376	26.344
		Tax on Dividend	1.197	4.274
		Platium Jubilee Dividend	0.000	26.344
		Tax on Platinum Jubilee Dividend	0.000	4.274
	BALANCE CARRIED TO THE B/S		28.984	24.398
	EARNINGS IN FOREIGN CURRENCY
		Export on Yarn	718.046	805.439
		Export on Fabrics	5.559	8.936
	TOTAL EARNINGS		723.605	814.375
	IMPORTS
		Raw Materials	294.956	445.712
		Stores & Spares	7.380	11.777
		Capital Goods	72.988	37.822
	TOTAL IMPORTS		375.324	495.311
	Earnings Per Share (Rs.)		1.84	38.25

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.64	0.38	7.97
Net Profit Margin (PBT/Sales)	(%)	9.79	(1.62)	11.93
Return on Total Assets (PBT/Total Assets}	(%)	6.92	(1.11)	6.42
Return on Investment (ROI) (PBT/Networth)		0.19	(0.03)	0.26
Debt Equity Ratio (Total Liability/Networth)		1.40	2.36	3.01
Current Ratio (Current Asset/Current Liability)		1.77	0.83	0.91

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	No
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	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

Deposits

12.770

14.588

SHORT TERM BORROWINGS

Loan Repayable on Demand from Banks

174.016

500.000

Deposits

16.989

37.031

Loan from Related Parties

0.425

5.726

Total

204.200

557.345

Notes:

a) Term Loan from Banks are secured by pari-passu charge on the fixed assets of the Company and a second charge on the current assets of the Company.

b) The Term Loans from Banks are repayable in quarterly installments. The year wise repayment of Term Loans are as follows:

(Rs. In Millions)

Year	31-03-2012
2012-13	-
2013-14	381.208
2014-15	357.200
2015-16	376.800
2016-17	355.700
2017-18	217.354
2018-19	144.292
2019-20	8.792
	1841.346

(As on 31.03.2012)

FINANCIAL RESULTS:

The financial results for the year ended 31st March, 2012 after charging all expenses but before deducting finance cost and depreciation have resulted in operating profit of Rs. 618.436 Millions.

After deducting Rs. 370.618 Millions towards finance cost and providing Rs. 300.755 Millions towards Depreciation, the Net Loss for the year is Rs. (52.937) Millions. Considering reversal of Deferred Tax Liability of Rs. 66.096 Millions and adding the surplus of Rs. 24.398 Millions brought forward from the previous year, the Directors propose to appropriate the total sum of Rs. 37.557 Millions

EXPORTS

On the export front during the year, they have made direct export of Cotton Yarn / Fabrics for a value of Rs. 723.600 Millions as against Rs. 814.400 Millions of the previous year.

The Directors are thankful to Mitsubishi Corporation, Doko Spinning Company Limited, and Unitika Limited, Japan for their continued support and efforts for promotion of exports to Japan and other countries.

PROSPECTS FOR THE CURRENT YEAR

The Central Government's frequent interventions in the form of imposition and removal of quantitative restrictions on export of raw cotton as well as cotton yarn without taking a comprehensive view of demand and supply requirements of various segments of textile industry has resulted in high volatility in cotton prices during the cotton season 2011-12. The cotton prices still ruling high at uneconomical levels.

The yarn prices are stagnant due to recessionary trend in both domestic and global markets. The power cut imposed in Tamilnadu to the extent of 75% is severely affecting the operations of the Company. The Government of Tamilnadu has also announced the increase in power tariff by more than 30%.

The increase in wages, power cost, fuel prices and interest cost and the increase in the power cuts in recent period definitely pose a challenge. While the cost of major inputs are increasing steeply, the yarn price has not increased. The Directors are therefore unable to predict the profitability of the Company in the current year. However, the Company is maintaining high standards of Quality Yarn, cost effective production and stringent waste control measures. These measures strengthened the Company to withstand the challenges in the current scenario.

WIND MILL

The Wind Mill Division with an installed capacity of 30.70 MW is working satisfactorily. The Division has generated 527 Lakhs Kwh as compared to 443 Lakhs Kwh of the previous year. The full benefit of windmills purchased during September, 2010 with the capacity of 8.80 MW has accrued during the year. The income during the year from the Wind Mill Division was Rs. 225.000 Millions as against Rs. 176.900 Millions of previous year.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Liability on guarantees given by the bankers	2.900	3.600
Liability on guarantees given by the bankers	5939.400	6139.00

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Electrical Machinery

· Furniture and Office Equipments

· Vehicles

· Loose Tools

Intangible Assets

· Computer software

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.59.69
UK Pound	1	Rs.91.66
Euro	1	Rs.78.69

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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

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

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

RATING EXPLANATIONS

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

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