MIRA INFORM REPORT

Report Date :

10.06.2013

IDENTIFICATION DETAILS

Name :	GTN ENTERPRISES LIMITED
Registered Office :	Erumathala Post, Alwaye, Ernakulam-683112, Kerala
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.07.1981
Com. Reg. No.:	09-013244
Capital Investment / Paid-up Capital :	Rs. 45.023 millions
CIN No.: [Company Identification No.]	U67120KL1981PLC013244
PAN No.: [Permanent Account No.]	AACCG3607J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Cotton Yarn.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1050000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears an extreme dip in the net profitability during 2012. The external borrowings appear to be huge which acts as a threat to the liquidity. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered normal for business dealings with some caution.

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	CARE
Rating	Long term bank facilities: BB-
Rating Explanation	Moderate risk of default.
Date	17.12.2012

Rating Agency Name	CARE
Rating	Short term bank facilities: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	17.12.2012

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 (PARTIAL DETAILS)

Name :	Mr. Venkat Subramaniam
Designation :	General Manager in Finance
Contact No.:	91-484-3928300
Date :	08.06.2013

LOCATIONS

Registered Office :	Erumathala Post, Alwaye, Ernakulam-683112, Kerala, India
Tel. No.:	91-484-3928300
Fax No.:	91-484-2370812
E-Mail :	cs@gtntextiles.com
Website :	www.gtntextiles.com
Factory :	Located at · Udumalpet, Tamilnadu, India
Head Office :	6^th Floor, Palal Towers, M.G. Road Ravipuram, Cochin-682016, Kerala, India

DIRECTORS

As on 13.08.2012

Name :

Mr. Ankur Patodia

Designation :

Managing Director

Address :

45, Mount Unique, 62 A, Peddar Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

10.11.1973

Qualification :

Bachelor Degree in Arts

Date of Appointment :

01.07.2011

PAN No.:

AAACG8605N

DIN No.:

00003567

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	U01119MH1993PLC074630	PURAV TRADING LIMITED	Director	21-10-93	21-10-93	-	Active	NO
2	U18101KL1998PTC012497	PATSPIN APPARELS PRIVATE LIMITED	Director	27-09-99	27-09-99	-	Active	NO
3	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Managing director	01-07-11	22-10-01	-	Active	NO

Name :

Mr. Binod Kumar Patodia

Designation :

Director

Address :

XXXV 608, Diwans Road, Ernakulam, Kochi-682016, Kerala, India

Date of Birth/Age :

01.01.1945

Qualification :

BE

Date of Appointment :

27.07.1981

PAN No.:

AFUPP3972R

Voter ID No.:

JRW0945253

DIN No.:

00003516

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	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	27-07-81	27-07-81	-	Active	NO
2	U51420WB1981PTC034017	PATODIA EXPORTS AND INVESTMENTS PRIVATE LIMITED	Director	25-04-87	25-04-87	-	Active	NO
3	U17120MH1965PLC015806	HINDUSTAN POLYAMIDES AND FIBRES LIMITED	Director	29-06-89	29-06-89	04-12-12	Active	NO
4	U67120WB1990PTC048375	UMANG FINANCE PRIVATE LIMITED	Director	12-02-90	12-02-90	-	Active	NO
5	U65999WB1990PTC048390	BEEKAYPEE CREDIT PRIVATE LIMITED	Director	14-02-90	14-02-90	-	Active	NO
6	L18101KL1991PLC006194	PATSPIN INDIA LTD	Director	20-09-91	20-09-91	-	Active	NO
7	U67120WB1961PTC025238	MADAN LAL BRIJ LAL PRIVATE LIMITED	Director	31-01-95	31-01-95	04-02-11	Active	NO
8	U45309KL1961SGC001937	KERALA STATE INDUSTRIAL DEVELOPMENT CORPN LIMITED	Director	18-12-96	18-12-96	14-05-07	Active	NO
9	U18101KL1998PTC012497	PATSPIN APPARELS PRIVATE LIMITED	Director	28-09-98	28-09-98	-	Active	NO
10	U74999DL1951PLC161818	THE INDIA THERMIT CORPORATION LIMITED	Director	08-09-01	08-09-01	-	Active	NO
11	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	27-01-03	27-01-03	30-12-06	Amalgamated	NO
12	L18101KL2005PLC018062	GTN TEXTILES LIMITED	Managing director	13-05-10	28-03-05	-	Active	NO
13	L28900MH1958PLC011077	HIND RECTIFIERS LIMITED	Director	18-04-07	18-04-07	-	Active	NO

Name :

Mr. Banwari Lal Singhal

Designation :

Director

Address :

7, Chittaranjan Avenue, 2nd Floor, Kolkata-700072, West Bengal, India

Date of Birth/Age :

15.04.1947

Qualification :

B. Com

Date of Appointment :

21.06.1994

Voter ID No.:

WB22158153379

DIN No.:

00006433

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	L70200TZ1936PLC000001	PRIME URBAN DEVELOPMENT INDIA LIMITED	Director	15-05-88	15-05-88	-	Active	NO
2	U67190WB1990PTC048536	M B CREDIT PRIVATE LIMITED	Director	08-03-90	08-03-90	-	Amalgamated	NO
3	U67120WB1989PTC046638	PRITI CREDIT PRIVATE LIMITED	Director	15-07-92	15-07-92	-	Active	NO
4	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	21-06-94	21-06-94	-	Active	NO
5	U67120WB1995PTC072283	BLS SECURITIES PRIVATE LIMITED	Director	22-06-95	22-06-95	-	Active	NO
6	L18101KL1991PLC006194	PATSPIN INDIA LIMITED	Director	20-06-00	20-06-00	-	Active	NO
7	U65910TZ1996PLC007068	ATL TEXTILE PROCESSORS LIMITED	Director	01-01-05	01-01-05	-	Active	NO
8	L18101KL2005PLC018062	GTN TEXTILES LIMITED	Director	08-04-05	08-04-05	-	Active	NO
9	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	22-11-06	22-11-06	-	Active	NO

Name :

Mr. S Prahalathan Iyer

Designation :

Nominee director

Address :

1303, Wallace Apartment, Sleater Road, Grant Road, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

24.05.1963

Date of Appointment :

18.04.2012

DIN No.:

00281115

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	L18100AP1981PLC003031	PRIYADARSINI LIMITED	Nominee director	22-06-05	22-06-05	29-04-11	Active	NO
2	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Nominee director	18-04-12	18-04-12	-	Active	NO

Name :

Mr. Prakash Chandra Seksaria

Designation :

Director

Address :

8C Link Heights, Panampilly Nagar, Kochi-682036, Kerala, India

Date of Birth/Age :

30.01.1946

Date of Appointment :

13.05.2005

DIN No.:

00003611

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	L18101KL1991PLC006194	PATSPIN INDIA LIMITED	Director	11-10-91	11-10-91	26-03-10	Active	NO
2	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	13-05-05	13-05-05	-	Active	NO

Name :

Mr. Puthenpurayil Narayanan Sukumaran Nair

Designation :

Director

Address :

Nalina Vihar, Karingarapully P. O., Palakkad-678559, Kerala, India

Date of Birth/Age :

03.12.1942

Date of Appointment :

22.02.2001

DIN No.:

00005237

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	U67120KL1981PLC013244	GTN ENTERPRISES LIMITED	Director	22-02-01	22-02-01	-	Active	NO
2	U18101KL1998PTC012497	PATSPIN APPARELS PRIVATE LIMITED	Director	20-04-01	20-04-01	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Venkat Subramaniam
Designation :	General Manager in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.08.2012

Names of Shareholders	No. of Shares
Binod Kumar Patodia	472310
Binod Kumar Patodia HUF	608500
Umang Patodia HUF	392000
Ankur Patodia HUF	360000
Prabha Patodia	580000
Patodia Exports and Investments Private Limited, India	500
Beekaypee Credit Private Limited, India	500
Umang Finance Private Limited, India	500
Umang Patodia Jointly with Binod Kumar Patodia Jointly with Prabha Patodia	555000
Mala Patodia Jointly with Binod Kumar Patodia Jointly with Prabha Patodia	473000
Ankur Patodia Jointly with Binod Kumar Patodia Jointly with Prabha Patodia	650000
Swati Patodia Jointly with Binod Kumar Patodia Jointly with Prabha Patodia	410000
Total	4502310

As on 13.08.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	0.03
Directors or relatives of Directors	99.97
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton Yarn.

Products :

Item Code No. (ITC Code)	Product Description
52050000	Cotton Yarn / Processed Yarn
60062400	Knitted Fabric

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Export-Import Bank of India, Floor 21, Center One Building, World Trade Center, Cuffe Paade, Mumbai - 400005, Maharashtra, India

· State Bank of India

· Central bank of India

· HDFC Bank Limited

· IDBI Bank Limited

· Indian Bank

· Indian Overseas Bank

· Punjab National Bank

· Standard Chartered Bank

· State Bank of Travancore

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long term borrowings
Rupee term loans from banks	398.656	480.350
Term loans from others	278.749	262.645
Long-term maturities of finance lease obligations	2.773	3.874
Short term borrowings
Loans repayable on demand	142.370	272.316
Total	822.548	1019.185

Banking Relations :	--
Auditors :
Name :	M.S. Jagannathanand Visvanathan Chartered Accountants
Address :	6 7A Sri Krishna Kripa, P&T Colony, Koudampalayam, Coimbatore-641030, Tamilnadu, India
PAN No.:	AAEFM3256C
Associate :	· GTN Textiles Limited CIN No.: L18101KL2005PLC018062 · Patspin India Limited CIN No.: L18101KL1991PLC006194
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Beekaypee Credit Private Limited CIN No.: U65999WB1990PTC048390 · Patodia Exports and Investments Private Limited CIN No.: U51420WB1981PTC034017 · Umang Finance Private Limited CIN No.: U67120WB1990PTC048375

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4997500	Equity Shares	Rs.10/- each	Rs. 49.975 Millions
250	Preference Shares	Rs.100/- each	Rs. 0.025 Millions
	Total		Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4502310	Equity Shares	Rs.10/- each	Rs. 45.023 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		45.023	45.023	45.023
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		217.369	196.493	124.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		262.392	241.516	169.723
LOAN FUNDS
1] Secured Loans		822.548	1019.185	1149.630
2] Unsecured Loans		4.040	6.620	9.680
TOTAL BORROWING		826.588	1025.805	1159.310
DEFERRED TAX LIABILITIES		149.784	138.690	74.522
TOTAL		1238.764	1406.011	1403.555
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		933.577	933.474	1022.667
Capital work-in-progress		0.707	1.275	1.050
INVESTMENT		0.036	0.036	0.036
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	243.918	297.562	306.987
	Sundry Debtors	206.058	196.875	107.265
	Cash & Bank Balances	54.950	101.429	43.999
	Other Current Assets	0.093	0.067	0.756
	Loans & Advances	151.070	111.861	105.818
Total Current Assets		656.089	707.794	564.825
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	165.296	63.255	146.397
	Other Current Liabilities	183.930	155.700	38.626
	Provisions	2.419	17.613	0.000
Total Current Liabilities		351.645	236.568	185.023
Net Current Assets		304.444	471.226	379.802
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1238.764	1406.011	1403.555

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1554.095	1523.402	1409.253
		Other Income	5.103	2.613	42.373
		TOTAL (A)	1559.198	1526.015	1451.626
Less	EXPENSES
		Cost of materials consumed	824.133	727.324
		Purchases of stock-in-trade	143.599	183.889
		Employee benefit expense	75.260	61.993
		Other expenses	264.617	227.398
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	16.193	(26.763)
		TOTAL (B)	1323.802	1173.841	1244.577
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		235.396	352.174	207.049
Less	FINANCIAL EXPENSES (D)		106.585	100.980	100.884
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		128.811	251.194	106.165
Less/ Add	DEPRECIATION/ AMORTISATION (F)		86.375	82.911	83.635
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		42.436	168.283	22.530
Less	TAX (H)		11.094	65.042	4.710
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		31.342	103.241	17.820
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		51.448	47.700	39.282
Less	APPROPRIATIONS		NA	99.493	9.402
	BALANCE CARRIED TO THE B/S		NA	51.448	47.700
	EARNINGS IN FOREIGN CURRENCY		803.090	906.861	721.217
	IMPORTS
		Raw Materials	343.035	188.356
		Components and Spare Parts	3.572	2.176
		Capital Goods	38.925	0.000
	TOTAL IMPORTS		385.532	190.532	NA
	Earnings / (Loss) Per Share (Rs.)		6.96	22.93	3.96

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.01	6.77	1.23
Net Profit Margin (PBT/Sales)	(%)	2.73	11.05	1.60
Return on Total Assets (PBT/Total Assets}	(%)	2.67	10.25	1.42
Return on Investment (ROI) (PBT/Networth)		0.16	0.70	0.13
Debt Equity Ratio (Total Debt/Networth)		3.15	4.25	6.83
Current Ratio (Current Asset/Current Liability)		1.87	2.99	3.05

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

PERFORMANCE REVIEW

The textile industry has been facing a major challenge during past two years or so, in coping up with uncertainties arising from unexpected events led by external factors far beyond its control. While FY 2010-11 showed signs of recovery after prolonged crisis which emanated from earlier global meltdown. Fiscal 2011-12 witnessed disastrous effects of unrealistic movements in raw material and finished goods prices from the very beginning of the year. In fact, the industry’s nightmare started before the year set-in, but the adversities could have been far lesser had the government not taken hasty and miscalculated policy decisions relating to export of cotton yarns and cotton. These unfair actions reversed the price trends for the first time in industry’s history, breaking the correlation of prices between cotton yarn and cotton to the detriment of the spinning sector.

MODERNISATION AND EXPANSION PLANS

During the year, the Board has implemented a modernization and expansion project at a cost of Rs. 94.200 millions at its facilities located at Udumalpet, Tamilnadu under the Restructured Technology Upgradation Fund Scheme (TUFS), Ministry of Textiles, Government of India.

With this, the compact spindle capacity has been enhanced from 14400 to 31200, within the total installed capacity of 45120 spindles

UNSECURED LOAN

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Long term borrowings
Public deposits	0.750	1.440
Short term borrowings
Public deposits	3.290	5.180
Total	4.040	6.620

FIXED ASSETS

v Tangible Assets

· Land

· Buildings

· Factory building

· Plant and Equipment

· Factory equipments

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Other equipments

v 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 records 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] 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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.