MIRA INFORM REPORT

Report Date :

05.06.2013

IDENTIFICATION DETAILS

Name :	ARVIND LIFESTYLE BRANDS LIMITED (w.e.f. 09.06.2008)
Formerly Known As :	PINNACLE RISK ADVISORY SERVICES LIMITED ARVIND TELECOM LIMITED
Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad - 380025, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.02.1995
Com. Reg. No.:	04-024598
Capital Investment / Paid-up Capital :	Rs.200.501 Millions
CIN No.: [Company Identification No.]	U64201GJ1995PLC024598
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00436C
PAN No.: [Permanent Account No.]	AAACH7252A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader, Exporter and Importer of Readymade Garments.
No. of Employees :	3100 (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 6600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Arvind Limited which is the flagship of Lalbhai group. It is well established company having good track record. Company has performed well in 2012. Financially, the company seems to be strong. Liquidity position of the company seem to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB (Long Term Bank Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January 2013

Rating Agency Name	CARE
Rating	A3+ (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	January 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.

INFORMATION PARTED BY

Name :	Mr. Mani Kanban
Designation :	Finance Manger
Contact No.:	91-9845197710
Date :	04.06.2013

LOCATIONS

Registered Office/ Corporate Office :	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India
Tel. No.:	91-79-22203030/ 30138000
Mobile No.:	91-9845197710 (Mr. Manikanban)
Fax No.:	91-79-22200267/ 30138680
E-Mail :	rv.bhimani@arvind.in manikanban@arvindbrands.com
Website :	www.arvindmills.com
Location :	Owned
Warehouse :	Survey No.93, Archakara Halli, No.26/2 and 27/2, Kasaba Hobli, Ramnagar, Bangalore - 560032, Karnataka, India

DIRECTORS

As on: 29.09.2011

Name :	Mr. Suresh Jayaraman
Designation :	Managing Director
Address :	S02, Magnolai No. 170/5, Defence Colony, 5^th Main Indira Nagar, Bangalore-560038, Karnataka, India
Date of Birth/Age :	25.05.1960
Date of Appointment :	01.11.2010
Din No.:	03033110
Name :	Mr. Sajaybhai Shrenikbhai Lalbhai
Designation :	Director
Address :	Lalbaug, Shahibaug, Ahmedabad-388004, Gujarat, India
Date of Birth/Age :	10.04.1954
Date of Appointment :	24.09.2010
Din No.:	00008329
Name :	Mr. Jayesh Kantilal Shah
Designation :	Director
Address :	26, Amaltas Bunglows, Vastrapur, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	25.05.1960
Date of Appointment :	24.09.2010
Din No.:	00008349
Name :	Mr. Munesh Khanna
Designation :	Director
Address :	Beachwood House, Ground Floor, Jussaawala Wadi, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	12.05.1962
Date of Appointment :	24.09.2010
Din No.:	00202521

KEY EXECUTIVES

Name :	Mr. Manikanban
Designation :	Finance Manger

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders	No. of Shares
Lalbhai Realty Finance Private Limited, India	50090
Arvind Brands and Retail Limited, India	20000004
Devanshu S. Desai	1
Ramnik V. Bhimani	1
Jayesh N. Thakkar	1
Hemen H. Joshi	1
Rohit S. Jani	1
Bharat P. Patel	1
Total	20050100

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader, Exporter and Importer of Readymade Garments.

Products :

ITC number of product	Description
620000	Readymade Garments

Exports :

Products :

· Readymade Garments

Countries :

· Middle East

· South Africa

Imports :

Products :

· Readymade Garments

Countries :

· Bangladesh

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Garment*	Pcs.	2000000	1737593

Notes:

1. The Company is exempt from the licensing provisions of the Industrial Development and Regulation) Act 1951.

2. Installed Capacity at Job workers location is as certified by the management and relied upon by the auditors, being a technical matter.

*Garments produced outside the Company by Job workers

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

3100 (Approximately)

Bankers :

State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Near Mahakant Building, Ellisbridge, Ahmedabad - 380006, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Term Loans :

From Banks

530.317

129.957

From Others

5.771

5.989

Working Capital Loans repayable on demand

From Banks

1259.762

847.567

Total

1795.850

983.513

Notes:

a Nature of Security

I Term Loans from Banks are secured by:

i. First charge over the entire fixed assets and second charge over entire stock, receivables and other current assets of the Company both present and future.

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

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

b Rate of Interest and Terms of Repayment

Particulars	Amount In Millions	Range of Interest	Terms of Repayment
State Bank of India	576.317	13.25%	Repayable in quarterly-instalments ranging between 16 to 20 after moratorium of one year from the date of loan
Kotak Mahindra Prime Limited - Hire Purchase Loan	8.540	9% to 11%	Repayable in 48 monthly instalments from the date of release of respective loans

a Nature of Security

Loans from banks are secured by:

i, First charge over entire stocks, receivables and other current assets and second charge over entire fixed assets of the Company both present and future.

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

b Rate of Interest

i. Loans from banks carry interest rates ranging from 11% to 13.5% per annum.

ii. Inter Corporate Deposits carry interest rates ranging from 12.25%- to 13% 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 contact@sorabsengineer.com
Website:	http://www.sorabsengineer.com
Pan No.:	AAAFS5191E
Holding Company :	· Arvind Brands and Retail Limited
Ultimate Holding Company :	· Arvind Limited CIN No.: - L17119GJ1931PLC000093
Fellow Subsidiaries :	· Arvind Products Limited CIN No.:- L17110GJ1986PLC008886 · Arvind Retail Limited · Asman Investment Limited
Joint Venture of Ultimate Holding Company :	· Arvind Murjani Brands Private 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 Capital:

No. of Shares	Type	Value	Amount
20050100	Equity Shares	Rs.10/- each	Rs.200.501 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20050100	Equity Shares	Rs.10/- each	Rs.200.501 Millions

Notes:

a. Reconciliation of Number of Shares

Particulars	As at March 31, 2012
	No. of Shares	Amount in Millions
Balance at the beginning of the year	20050100	200.501
Balance at the end of the year	20050100	200.501

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

20000000 shares of Rs. 40 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

Particulars	As at March 31. 2012
Holding Company - Arvind Brands and Retail limited	20000010

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

Particulars	As at March 31. 2012
Holding Company - Arvind Brands and Retail Limited	20000010 99.75%

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		200.501	200.501	200.501
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1457.522	1323.825	1221.462
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1658.023	1524.326	1421.963
LOAN FUNDS
1] Secured Loans		1795.850	983.513	583.473
2] Unsecured Loans		261.892	53.795	50.072
TOTAL BORROWING		2057.742	1037.308	633.545
DEFERRED TAX LIABILITIES		89.662	59.573	0.000
TOTAL		3805.427	2621.207	2055.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1340.525	1220.988	1087.826
Capital work-in-progress		0.821	4.075	9.422
INVESTMENT		350.154	0.154	0.154
DEFERREX TAX ASSETS		0.000	0.000	13.180
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1396.797	1361.728	639.773
	Sundry Debtors	2185.066	1195.101	589.154
	Cash & Bank Balances	78.163	57.795	39.922
	Other Current Assets	8.159	32.122	0.000
	Loans & Advances	686.826	698.769	468.100
Total Current Assets		4355.011	3345.515	1736.949
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1765.577	1629.664	424.261
	Other Current Liabilities	427.648	262.576	362.287
	Provisions	47.859	57.285	5.475
Total Current Liabilities		2241.084	1949.525	792.023
Net Current Assets		2113.927	1395.900	944.926
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3805.427	2621.207	2055.508

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6755.433	4165.321	2519.829
		Other Income	42.358	36.714	11.448
		TOTAL (A)	6797.791	4202.035	2531.277
Less	EXPENSES
		Cost of materials consumed	417.974	638.371
		Purchases of Stock in Trade	2797.198	1740.670
		Changes In inventories of finished goods, work-in-progress and stock-in-trade	(189.626)	(558.858)
		Employee benefits expense	301.782	216.103
		Other expenses	2865.071	1753.120
		TOTAL (B)	6192.399	3789.406	2380.347
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		605.392	412.629	150.930
Less	FINANCIAL EXPENSES (D)		260.017	122.259	40.752
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		345.375	290.370	110.178
Less/ Add	DEPRECIATION/ AMORTISATION (F)		144.589	115.254	100.930
	PROFIT BEFORE TAX (E-F) (G)		200.786	175.116	9.248
Less	TAX (H)		67.088	72.753	(11.751)
	PROFIT AFTER TAX (G-H) (I)		133.698	102.363	20.999
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		123.824	21.461	0.462
	BALANCE CARRIED TO THE B/S		257.522	123.814	21.461
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	235.937	NA	98.521
	TOTAL EARNINGS		235.937	NA	98.521
	IMPORTS
		Raw Materials	16.329	5.016	13.350
		Accessories	14.125	16.206	9.319
		Finished Goods purchased	165.068	44.963	9.913
	TOTAL IMPORTS		195.522	66.185	32.582
	Earnings Per Share (Rs.)		6.67	5.11	1.05

Particulars	31.03.2013
Sales Turnover (Approximately)	12940.000

The above information has been parted by Mr. Mani Kanban

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.97	2.44	0.83
Net Profit Margin (PBT/Sales)	(%)	2.97	4.20	0.37
Return on Total Assets (PBT/Total Assets}	(%)	3.53	3.83	0.33
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.01
Debt Equity Ratio (Total Debt/Networth)		1.24	0.68	0.45
Current Ratio (Current Asset/Current Liability)		1.94	1.71	2.19

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	1339.013	1231.389
Acceptances	426.564	398.275
Total	1765.577	1629.664	424.261

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 four 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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Intercorporate Deposits
From Related Parties	205.017	53.795
From Others	56.875	0.000
Total	261.892	53.795

CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
Claims against the Company not acknowledged as debts	20.266	20.266
Disputed Demands in respect of
Excise Duty	4.154	4.154
Sales Tax	16.060	13.092
Textile Committee Cess	1.094	1.094

FIXED ASSETS

Tangible Assets:

· Leasehold Improvements

· Plant and Equipments

· Data Processing Equipments

· Office Equipments

· Furniture and Fixtures

· Motor Vehicles

Intangible Assets:

· Licence Brands

· Jobworkers Network

· Vendor’s Network

· Computer Software

AS PER WEBSITE DETAILS

Press Release

PLANET RETAIL EXITS THREE BRANDS

Thursday, Sep 27, 2012, 9:45 IST 

Planet Retail has exited franchise agreements with three fashion brands – departmental store chain Debenhams and fashion brands Nautica and Next – as part of its business restructuring exercise.

The brands have been taken over by textile and apparel major Arvind Limited’s wholly owned subsidiary Arvind Lifestyle Brands Limited

Ramesh Tainwala, chairman, Planet Retail Holdings Private Limited, told DNA Money, “I have just concluded the deal and have transferred all the rights in favour of Arvind Lifestyle Brands.”

He, however, did not share financial details. Industry experts said that the transaction value would not be very large as Planet Retail was not the owner of these brands but a franchisee for India.

“It would be difficult to put a value to the size of a deal of that nature,” said a retail consultant.

As part of the deal, Arvind will absorb all the 300-400 employees associated with the Indian operations of the three brands, Tainwala said.

Arvind Lifestyle Brands, which runs value retail chain Megamart, owns 50% stake in Tommy Hilfiger’s India unit. Its existing portfolio of international fashion apparel brands includes Gant, Arrow, US Polo, Elle and Flying Machine. Tainwala said they were looking for a strategic buyer who had expertise in both manufacturing as well as retailing of fashion brands.

“Our business model was based on 100% imports, which was a key concern for viability of the operations. This hurdle gets mitigated now as Arvind has its own manufacturing base and they can do a better job of retailing,” he said.

Arvind Singhal, chairman, Technopak Advisors Private Limited, said international brands need retailing expertise and financial investments to get traction in the Indian market.“The Debenhams departmental chain, Nautica and Next are very good brands and I think the new partners will do a great job based by leveraging on their expertise,” he said.

Earlier, Planet Retail has given up rights on US fashion brand Guess to Major Brands, which markets Mango and Aldo in India.

Experts said Planet Retail had failed to make a mark for the brands brought in to the Indian market in 2007-08 mainly due to positioning and slowdown.

ARVIND LIFESTYLE BRANDS LIMITED LAUNCHES

ELLE

PREMIUM FRENCH FASHIONWEAR IN INDIA

Arvind Lifestyle Brands Limited in partnership with France’s Lagardère Active Group launched ELLE Fashionwear for women in India today.  This alliance marks the license agreement between Arvind Lifestyle Brands and ELLE – the World’s largest selling Fashion Magazine owned by the French based Lagardère Group.

Months of speculation and buzz finally come to an end as Arvind Lifestyle Brands Limited announced the opening of exclusive ELLE boutiques in Delhi, Bangalore and Chandigarh. Celebrated as the quintessential chic, sexy and feminine French fashion brand, ELLE vows to add on to the much needed high-end fashion repertoire for the style-evolved women in India. ELLE will offer a wide variety of stylish apparels, shoes and bags which are definitely à la mode and desirable. Appreciating the fashion sentiments of urban women, ELLE has crafted the launch collection which is very French yet will compliment Indian women silhouettes.

Internationally designed ELLE Boutiques capture the European appeal of the brand. The flagship BOUTIQUES in Delhi are located in DLF Place Saket and Greater Kailash 1 M-Block market with A BOUTIQUE IN Great India Place, Noida opening soon. In Bangalore the stores are located in the upmarket Phoenix Market City mall in Mahadevpura and Forum Mall in Koramangala. The brand is also being sold through select Shop in shops like Shoppers Stop, Lifestyle, Central and Kapsons.

From Chic Day Dresses to the proverbial Little Black Dress, from smart denim casuals to sassy jumpsuits, ELLE Fashionwear is poised to make runway fashion accessible to the coming of age new Indian women.

As part of their expansion ELLE plans to open around 14 stores in and around Delhi NCR and 6 stores in Bangalore taking the total count to 20 stores in a span of 12 months.

ELLE Fashionwear is being launched in the French Embassy Gardens at the residence of His Excellency Mr. Francois Richier, Ambassador of France to India, who is also co-hosting the event as a gesture to welcome the French brand to India. The brand is being launched with a spectacular fashion show organised by the famous choreographer and Fashion commentator Mr. Prasad Bidapa.

Fabrice A. Plaquevent, CEO, Lagardère Active Enterprises present on the occasion said, “India has been on the global fashion radar for the past few years. India’s contribution towards fashion and increasing fashion consumption is noteworthy. It is indeed our pleasure to be entering into such an interesting market. It is our privilege that we have found an alliance with Arvind Lifestyle Brands Limited, one of the established and renowned apparel companies in India. I’m hopeful that our alliance will be mutually benefiting and our voyage to bring authentic French Fashion to India a notable success.”

On the eve of the ELLE launch, J Suresh, MD and CEO of Arvind Brands and Retail said, “Haute couture and premium western wear are finding a keen audience in the Indian market. People here are now not only eager to indulge in premium fashion but also seek an array of choices of the same. It is an interesting phase for international fashion brands in India and ELLE being a prominent name will add to our repertoire of powerful apparel brands.”

Arvind Lifestyle brand Limited also markets other international labels such as Arrow, Izod, Gant, US Polo. It also operates value retail chain Megamart that has 225 outlets.

ARVIND LIFESTYLE PAYS Rs.550.000 MILLIONS TO RETAIL 3 GLOBAL BRANDS

Mumbai, September 27: 

Arvind Lifestyle Brands, a subsidiary of Arvind Limited, one of the largest players in the apparel brands and retail space, has announced the acquisition of the business operations of British fashion retailers Debenhams and Next and American lifestyle brand Nautica in India from Plant Retail.

Announcing the acquisition, Mr. Sanjay Lalbhai, Chairman and Managing Director of Arvind Limited, said, “These acquisitions will accelerate our growth and contribute to our vision of achieving sales of Rs.50000.000 Millions over the next five years,”

This acquisition assumes importance as the company enters into the department store segment and also the globally fast growing apparel specialty retail segment.

"American sportswear lifestyle brand Nautica makes us the dominant player in the sportswear segment. With this move, we have taken a big step towards strengthening our position in the Indian fashion industry. We have a strong menswear portfolio, which will get further strengthened with Nautica. Debenhams and Next will substantially strengthen our position in Womenswear and Kidswear segment," he said.

The company plans to achieve Rs.5000.000 Millions revenue over the next five years from the current Rs.700.000 Millions by investing Rs.1500.000 Millions into these three brands,” said J. Suresh, Managing Director and CEO, Arvind Lifestyle Brands Limited

Acquisition of Debenhams signals the entry of Arvind into the bridge to luxury department store segment. Arvind plans to increase the current number of Debenhams stores in India from two to eight in the next three years.

Arvind will enter into apparel specialty retail through Next. The company plans to increase to increase the number of Next stores from three to 12 in the next three years.

The licensing arrangement with Nautica will strengthen Arvind’s already strong position in high potential sportswear segment of the market. The company plans to set up additional 30 Nautica stores taking the tally to 41 free standing Nautica stores and 71 shop in shops in the next three years.

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.56.64
UK Pound	1	Rs.86.69
Euro	1	Rs.73.97

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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	-

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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.