1. Summary Information

		Country	India
Company Name	KARAN LETEX LIMITED	Principal Name 1	Mr. Deep Kumar Garg
Status	Satisfactory	Principal Name 2	Mr. Bharat Garg
		Registration #	20-015337
Street Address	13/386, Civil Lines, Kanpur - 208001, Uttar Pradesh, India
Established Date	28.04.1993	SIC Code	--
Telephone#	91-512-2537011/ 2213454	Business Style 1	Manufacturer
Fax #	91-512-2537569/ 2534377	Business Style 2	--
Homepage	http://karanindia.net	Product Name 1	Garments
# of employees	Not Available	Product Name 2	Leather Goods
Paid up capital	Rs.6,696,000/-	Product Name 3	--
Shareholders	Bodies corporate – 58.51% Directors or relatives of directors – 41.49%	Banking	State Bank of India
Public Limited Corp.	NO	Business Period	20 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (41)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	104,885,000	Current Liabilities	132,600,000
Inventories	97,948,000	Long-term Liabilities	55,654,000
Fixed Assets	44,437,000	Other Liabilities	4,867,000
Deferred Assets	0,000	Total Liabilities	193,121,000
Invest& other Assets	2,402,000	Retained Earnings	49,855,000
		Net Worth	56,551,000
Total Assets	249,672,000	Total Liab. & Equity	249,672,000
Total Assets (Previous Year)	212,247,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	621,533,000	Net Profit	8,674,000
Sales(Previous yr)	497,554,000	Net Profit(Prev.yr)	5,402,000

MIRA INFORM REPORT

Report Date :

01.06.2013

IDENTIFICATION DETAILS

Name :	KARAN LETEX LIMITED
Formerly Known As :	KARAN LATEX PRIVATE LIMITED
Registered Office :	13/386, Civil Lines, Kanpur - 208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.04.1993
Com. Reg. No.:	20-015337
Capital Investment / Paid-up Capital :	Rs.6.696 Millions
CIN No.: [Company Identification No.]	U18101UP1993PLC015337
TAN No.: [Tax Deduction & Collection Account No.]	KNPK00246B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Garments and Leather Goods.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 220000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default.
Date	April 2013

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 :	13/386, Civil Lines, Kanpur - 208001, Uttar Pradesh, India
Tel. No.:	91-512-2537011 / 2213454
Fax No.:	91-512-2537569 / 2534377
E-Mail :	deepgarg@karanlatex.com prasantit@rediffmail.com karanind@satyam.net.in info@karanindia.net kn.shridhar@yahoo.co.in prem.a.sinha@sbi.co.in issrivastava@yahoo.co.in lawadvisor7@gmail.com
Website :	http://karanindia.net
Area :	1400 Sq, ft
Location :	Rented
Factory 1 :	Panki Industrial Area, Kanpur - 208001, Uttar Pradesh, India
Area :	15000 Sq, ft
Factory 2 :	59 B, Dada Nagar, Kanpur – 208001, Uttar Pradesh, India

DIRECTORS

As on: 29.09.2012

Name :

Mr. Deep Kumar Garg

Designation :

Whole Time Director

Address :

7/187-B, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh, India

Date of Birth/Age :

01.06.1958

Qualification :

B. Tech (Chem. Engg)

Date of Appointment :

03.03.2003

DIN No.:

00843372

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18101UP1993PLC015337	KARAN LETEX LIMITED	Whole-time director	28/04/1993	28/04/1993	-	Active	NO
2	U65993UP1995PTC017417	KARAN HOLDINGS PRIVATE LIMITED	Director	13/01/1995	13/01/1995	-	Active	NO
3	U74120UP2012PTC049727	GROWTEX CORPORATION PRIVATE LIMITED	Director	04/04/2012	04/04/2012	-	Active	NO

Name :

Mr. Bharat Garg

Designation :

Whole Time Director

Address :

15/79, Civil Lines, Kanpur – 208001, Uttar Pradesh, India

Date of Birth/Age :

04.09.1972

Qualification :

B.Com

Date of Appointment :

01.11.2011

DIN No.:

00792192

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18101UP1993PLC015337	KARAN LETEX LIMITED	Whole-time director	01/11/2011	28/04/1993	-	Active	NO
2	U35921UP1986PTC007673	IMPACT MEDIA PRIVATE LIMITED	Director	01/07/2004	01/07/2004	01/11/2012	Active	NO
3	U45201UP2005PTC029984	DIVINITI HOMES PRIVATE LIMITED	Director	13/05/2005	13/05/2005	-	Active	NO
4	U70102UP2009PTC036893	APEX INTERIOR SOLUTIONS PRIVATE LIMITED	Director	27/02/2009	27/02/2009	01/11/2012	Active	NO
5	U74120UP2012PTC049727	GROWTEX CORPORATION PRIVATE LIMITED	Director	04/04/2012	04/04/2012	-	Active	NO
6	U45400UP2012PTC049943	ANADI CORPORATION PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO
7	U45400UP2012PTC049941	PRAKRITI CORPORATION PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO

Name :

Mr. Karan Garg

Designation :

Whole Time Director

Address :

7/187-B, Swaroop Nagar, Kanpur – 208002, Uttar Pradesh, India

Date of Birth/Age :

17.01.1984

Date of Appointment :

01.11.2011

DIN No.:

02630106

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18101UP1993PLC015337	KARAN LETEX LIMITED	Whole-time director	01/11/2011	01/04/2009	-	Active	NO
2	U45400UP2012PTC049941	PRAKRITI CORPORATION PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO
3	U45400UP2012PTC049943	ANADI CORPORATION PRIVATE LIMITED	Director	18/04/2012	18/04/2012	-	Active	NO
4	U65993UP1995PTC017417	KARAN HOLDINGS PRIVATE LIMITED	Director	14/08/2012	14/08/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Deep Kumar Garg	54850
Kusum Rani Garg	32500
Sandhya Garg	12170
Karan Garg	12180
Deep Kumar Sadhya HUF	4000
Karan Holdings Private Limited, India	144300
Vipra Packs (India) Private Limited, India	74800
Bharat Garg	153620
Neetu Garg	2000
Saloni Garg	4000
Geetika Garg	2500
Unistar Multimedia Private Limited, India	20000
Impact Media Private Limited, India	114680
Kay Aar Fastners Limited, India	10000
M.B. Wire Products Private Limited, India	8000
Apex Interior Solutions Private Limited, India	20000
Total	669600

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	58.51
Directors or relatives of directors	41.49
Total	100.000

BUSINESS DETAILS

Line of Business :

Manufacturer of Garments and Leather Goods.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Overseas Branch, 15/54 – B, Virendra Smriti Compound, Civil Courts Road, Civil Lines, Kanpur – 208001, Uttar Pradesh, India
• ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011
Term Loan	5.788
Working Capital (Against hypothecation of entire current assets, 1^st charge on the entire fixed assets both present and future and personal guarantee of directors and pledge of S T D R’s)	39.363
Total	45.151

Banking Relations :	--
Auditors :
Name :	Prakash and Santosh Chartered Accountants
Address :	37/17, Rolland Complex, Westcott Building, The Mall, Kanpur – 208 001, Uttar Pradesh, India
Tel. No.:	91-512-2312981 / 2365114
PAN.:	AABFP0422C

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
669600	Equity Shares	Rs.10/- each	Rs.6.696 Millions

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		6.696	5.916	5.916
2] Share Application Money		0.000	7.800	0.000
3] Reserves & Surplus		49.855	34.174	28.771
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		56.551	47.890	34.687
LOAN FUNDS
1] Secured Loans			45.151	24.509
2] Unsecured Loans			0.000	0.000
TOTAL BORROWING		55.654	45.151	24.509
DEFERRED TAX LIABILITIES		0.467	0.541	0.225
TOTAL		112.672	93.582	59.421
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.437	24.751	15.617
Capital work-in-progress		0.442	0.000	0.000
INVESTMENT		1.960	1.856	1.902
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.948	82.105	78.909
	Sundry Debtors	68.382	67.491	26.602
	Cash & Bank Balances	14.767	18.169	9.300
	Other Current Assets	1.073	0.000	0.000
	Loans & Advances	20.663	17.875	13.741
Total Current Assets		202.833	185.640	128.552
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	113.898	107.119	73.982
	Other Current Liabilities	18.702	9.371	10.520
	Provisions	4.400	2.175	2.148
Total Current Liabilities		137.000	118.665	86.650
Net Current Assets		65.833	66.975	41.902
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		112.672	93.582	59.421

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	621.533	497.554	319.205
		Other Income	2.390	0.889	0.359
		Export Incentive	16.732	16.334	11.493
		Interest	--	0.208	0.322
		Income from Mutual Funds	--	0.075	0.054
		Profit on Sales of Assets	--	0.000	0.056
		Profit on Foreword Currency	--	0.315	0.000
		TOTAL (A)	640.655	515.375	331.489
Less	EXPENSES
		Cost of Goods Sold	--	412.613	260.367
		Cost of materials consumed	525.866	--	--
		Changes in inventories of finished goods, work-in-progress and stock in trade	0.287	--	--
		Employee benefit expense	29.970	--	--
		Payment to Auditors	0.084	--	--
		Insurance expenses	4.471	--	--
		Inward Freight and Charges	--	14.826	8.452
		Packing and Stores Consumed	--	9.128	6.401
		Director Remuneration	--	5.700	4.200
		Selling and Other Expenses	--	23.415	16.615
		Other Expenses	58.760	35.431	25.978
		TOTAL (B)	619.438	501.113	322.013
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.217	14.262	9.476
Less	FINANCIAL EXPENSES (D)		3.579	2.690	2.857
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.638	11.572	6.619
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.638	3.679	2.436
	PROFIT BEFORE TAX (E-F) (G)		13.000	7.893	4.183
Less	TAX (H)		4.326	2.491	1.282
	PROFIT AFTER TAX (G-H) (I)		8.674	5.402	2.901
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		16.028	10.626	7.725
	BALANCE CARRIED TO THE B/S		24.702	16.028	10.626
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.097	1.193	0.590
	TOTAL EARNINGS		1.097	1.193	0.590
	IMPORTS
		Capital Goods	111.424	105.259	68.370
	TOTAL IMPORTS		111.424	105.259	68.370
	Earnings Per Share (Rs.)		12.95	9.13	4.90

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.35	1.05	0.88
Net Profit Margin (PBT/Sales)	(%)	2.09	1.59	1.31
Return on Total Assets (PBT/Total Assets}	(%)	3.83	3.75	2.90
Return on Investment (ROI) (PBT/Networth)		0.23	0.16	0.12
Debt Equity Ratio (Total Debt/Networth)		0.98	0.94	0.71
Current Ratio (Current Asset/Current Liability)		1.48	1.56	1.48

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	Yes
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	No
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

PERFORMANCE

This was the Nineteenth financial year of the company after incorporation. The turnover of the company is Rs.621.533 Millions as compared to last year Rs. 497.554 Millions during the period the company has gain a net profit of Rs.8.674 Millions as compared to last year Rs.5.402 Millions. The directors expect that the performance of the company in the current financial year will be quite satisfactory. The directors will continue in their endeavor to improve the working of the Company.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U18101UP1993PLC015337
Name of the company	KARAN LETEX LIMITED
Address of the registered office or of the principal place of business in India of the company	13/386, Civil Lines, Kanpur - 208001, Uttar Pradesh, India E-mail: lawadvisor7@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10078885
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others (Current Assets and Fixed Assets.)
Particular of charge holder	State Bank of India, Overseas Branch, 15/54 – B, Virendra Smriti Compound, Civil Courts Road, Civil Lines, Kanpur – 208001, Uttar Pradesh, India E-mail: v1maheshwari@rediffmail.com
Nature of instrument creating charge	(i) Sanction Letter (ii) Letter of Arrangement (SME-1) (iii) Supplemental Agreement of Loan Cum Hypothecation (SME-4) (iv) Memorandum for recording creation of mortgage by deposit of title deeds (SME-5)
Date of instrument Creating the charge	09.04.2013
Amount secured by the charge	Rs.88.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest FBWC/SLC- As per SBI Exporters Gold Card scheme, presently at Base Rate i.e. 9.70 percent per annum. Terms of Repayment FBWC- Repayable on Demand. Margin 25 percent on Raw Material Imported 25 percent on Raw Material Indigenous 50 percent on Semi Finished Goods 25 percent on Finished Goods 100 percent on Stores and Spares Extent and Operation of the charge The Company's assets are Hypothecated and mortgaged to secure credit facility aggregating to Rs. 88.000 Millions granted by the Bank to the Borrowers:- EPC* Rs. 45.000 Millions FBP* Rs. 25.000 Millions Stand by limit Rs. 14.000 Millions CEL (Forward Contract) Rs. 4.000 Millions Total Rs. 88.000 Millions * Both ways interchangeability of Rs. 15.000 Millions between EPC and FBP.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary Security:- Hypothecation of entire current assets present and future, consisting of raw material, stock in process, finished goods, stores, spares, consumable, good in transit, book debts document of title and goods and all other current assets. Export documents evidencing title to goods. Collateral Security:- - Lien on STDR of Rs. 6.200 Millions. - Lien of Mutual Funds (NAV Rs. 1.500 Millions) - Hypothecation of entire fixed assets of the Company. - Keyman Policies from Kotak Mahindra Insurance in the name of Director of the Company Mr. Deep Kumar Garg and Mr. Bharat Garg. - Khata No. 233 of Arazi No. 530 area 0.3120 Hectare at Village Fattehpur Roshnai, Pargana and Tehsil Akbarpur District Rama Bai Nagar (Kanpur Dehat) in the name of karan Letex Limited. East- Arazi No. 531 West- Arazi No. 523 North- Chak Road South- Arazi No. 529 - Khata No. 794 of part of Arazi No. 523 area 0.4410 Hectare out of which 1/2 part 0.2205 Hectare (Sold) at Village Fattehpur Roshnai, Pargana and Tehsil Akbarpur District Rama Bai Nagar (Kanpur Dehat) East- Arazi No. 530 West- Part of Arazi No. 523 North- Chak Road South- Arazi No. 522 and 524 - Arazi No. 502 and half part of 523 situated at Village Arya Nagar, Fattepur Roshnai, Kanpur Dehat admeasuring 0.5685 Hectares in the name of Anadi Corporation Private Limited.
Date of instrument modifying the charge	05.12.2011
Particulars of the present modification	Overall limit enhanced from Rs. 68.400 Millions to Rs. 88.000 Millions. Therefore, the total amount of charge secured against hypothecation of stocks, book debts and entire assets of the company and immovable property etc. has now been enhanced from Rs. 68.400 Millions to Rs. 88.000 Millions.

FIXED ASSETS

· Air Conditioner

· Land

· Computer

· Cycle

· Electric Equipment

· Fax machine

· Fire Equipment

· Furniture and Fixture

· Generator

· Machinery

· Motor Car

· Office Equipments

· Telecommunication Equipment

· Tube Well

· Electric Fittings

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.56.50
UK Pound	1	Rs.86.01
Euro	1	Rs.73.68

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		41

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.