MIRA INFORM REPORT

Report Date :

12.06.2013

IDENTIFICATION DETAILS

Name :	RENFRO INDIA PRIVATE LIMITED
Formerly Known As :	KARNIKA HRWITS INTERSOCK PRIVATE LIMITED
Registered Office :	Gat No. 1231 (Part), Sanaswadi, Taluka Shirur Pune – 412 208, Maharashtra.
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.10.1995
Com. Reg. No.:	25-018285
Capital Investment / Paid-up Capital :	Rs.77.605 Millions
CIN No.: [Company Identification No.]	U17118PN1995PTC018285
TAN No.: [Tax Deduction & Collection Account No.]	MUMR13250G
PAN No.: [Permanent Account No.]	AAACK2518C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hosiery and Socks.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 992000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has wipe out its accumulated loss. The financial position seems to be improving. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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	CRISIL
Rating	BBB (Long Term)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	21.05.2013

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/ Factory 1 :	Gat No. 1231 (Part), Sanaswadi, Taluka Shirur Pune-412208, Maharashtra, India
Tel. No.:	91-2137-391600
Fax No.:	91-2137-391666
E-Mail :	vinayak.bapat@renfroindia.com finance@renfroindia.com customercar@renfroindia.com
Website :	www.renfroindia.com
Head Office :	307, Gateway Plaza Hiranandani Garden Adishankaracharya Road Powai Mumbai-400076, Maharashtra, India
Tel. No.:	91-22-25700448
Fax No.:	91-22-25770485
Corporate Office :	609, Mahalaxmi Chembers, 22 Bhulabhai Road, Mumbai-400026, Maharashtra, India
Tel. No.:	91-22-23517185 / 23510499
Fax No.:	91-22-23526067
Factory 2 :	Gat No.350, Village Wadivarh, Taluka Igatpuri, Nashik-422403, Maharashtra, India
Tel No.:	91-2553-306400/99
Fax No.:	91-2553-306408
Sales and Marketing Office :	The Chambers, Office No. 403, Near Ganpati Temple, Viman Nagar, Pune-411014, Maharashtra, India
Tel No.:	91-20-30552300/ 30552308
Fax No.:	91-20-30552356

DIRECTORS

AS ON 14.09.2012

Name :

Mr. Yoginder Chugh Ramachand Pal

Designation :

Chairman cum Managing Director

Address :

6 Bournvelle Apartments 19, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

06.03.1937

Date of Appointment :

06.10.1995

DIN No.:

00106536

Other Directorship

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U92410MH1946PLC004878	INDURI FARM LIMITED	Director	28/05/1979	28/05/1979	Active	NO
2	U17118PN1995PTC018285	RENFRO INDIA PRIVATE LIMITED	Director	6/10/1995	6/10/1995	Active	NO
3	U17303MH1995PTC093343	RENFRO INDIA PRIVATE LIMITED	Director	6/10/1995	6/10/1995	Dormant	NO
4	U15430MH1948PLC006457	CADBURY INDIA LIMITED	Director	1/4/1997	1/4/1997	Active	NO
5	U74999MH2000NPL127870	FRANCHISING ASSOCIATION OF INDIA	Director	21/07/2000	21/07/2000	Active	NO
6	L29112DL1963PLC004084	SHRIRAM PISTONS AND RINGS LIMITED	Director	16/05/2003	16/05/2003	Active	NO
7	L72900MH2000PLC123841	APTECH LIMITED	Director	5/1/2004	5/1/2004	Active	NO
8	L36999KA1999PLC025195	UNITED BREWERIES LIMITED	Director	29/04/2005	29/04/2005	Active	NO
9	U92100MH1989PLC051768	MAYA ENTERTAINMENT LIMITED	Director	19/08/2011	30/05/2011	Active	NO

Name :

Mr. Andrew Lomax Kilby Jr

Designation :

Director

Address :

216, Howard Street, Mount Airy, North Carolina, USA

Date of Birth/Age :

24.01.1951

Date of Appointment :

24.09.2002

DIN No.:

02365929

Name :

Mr. George Michael Bowman

Designation :

Director

Address :

117, Hunting Hill Drive, Mount Airy, North Carolina, USA

Date of Birth/Age :

09.01.1951

Date of Appointment :

24.09.2002

DIN No.:

02365964

Name :

Mr. Rohit Yogindar Pal

Designation :

Director

Address :

6 Bournvelle Apartments 19, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

08.10.1968

Qualification :

• B Sc Finance and Economics, Clarkson University
• MBA Entrepreneurship, Clarkson University

Experience :

12 Years

Date of Appointment :

24.06.2004

DIN No.:

01799567

Other Directorship

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51900MH1995PTC084782	KARNIK OVERSEAS PRIVATE LIMITED	Director	19/01/1995	19/01/1995	Active	NO
2	U17118PN1995PTC018285	RENFRO INDIA PRIVATE LIMITED	Managing director	24/06/2004	24/06/2004	Active	NO

Name :

Mr. Sreenivas Nagppa

Designation :

Director

Address :

41, Blue Haven, Mount Pleasant Road, Malabar Hill, Mumbai-400 006, Maharashtra, India

Date of Birth/Age :

07.07.1960

Date of Appointment :

21.04.2008

DIN No.:

02077477

Other Directorship

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36991MH1999PTC119874	OFFICE DEPOT RELIANCE SUPPLY SOLUTIONS PRIVATE LIMITED	Managing director	18/11/2008	19/04/2008	31/12/2010	Active	NO
2	U17118PN1995PTC018285	RENFRO INDIA PRIVATE LIMITED	Director	30/09/2008	21/04/2008	-	Active	NO

Name :

Mr. Blakrishna Radhakrishnan Menon

Designation :

Director

Address :

5, Bournville Apartment, Cadbury House, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

23.02.1955

Date of Appointment :

26.08.2010

DIN No.:

01473781

Other Directorship

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74999AP2007PTC054200	LBW CONSULTING PRIVATE LIMITED	Managing director	1/9/2007	30/05/2007	Active	NO
2	U17118PN1995PTC018285	RENFRO INDIA PRIVATE LIMITED	Director	30/09/2010	26/08/2010	Active	NO

Name :

Mr. David Harold Dinkins

Designation :

Director

Address :

1256, Greenhull Road, Mount Airy NC, North Carolina – 28272, USA

Date of Birth/Age :

23.08.1960

Date of Appointment :

04.03.2010

DIN No.:

03040156

Name :

Mr. Susan Connors Bevard

Designation :

Director

Address :

2015, Margaret, Dr. Mount Airy NC, North Carolina – 27030, USA

Date of Birth/Age :

16.09.1965

Date of Appointment :

17.07.2010

DIN No.:

03320994

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.09.2012

Names of Shareholders	No. of Shares
Carely Holdings Private Limited, Mauritius	304388
Aekta Trust, India	103381
Ashok Murlidhar Wadhwa	685218
Simi Khanna	50000
Rohit Yogindar Pal	10
Renfro Corporation USA, USA	2968743
Yoginder Chugh Ramachand Pal	1825746
Ranfro and Cary holding Limited, Mauritius	1822990
TOTAL	7760476

AS ON 14.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	66.00
Directors or relatives of directors	34.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hosiery and Socks.

Products :

DESCRIPTION OF PRODUCT OR SERVICES	ITC NUMBER OF PRODUCT
Knitted Cotton Socks	260

· Socks

· Synthetics and Man-Made Fibers

· Wool

· Jute

· Silk Coir

· Hemp

· Flax

· Yarn and Synthetic Fibre Yarn

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Class of goods	Pairs	34784090	23927573

NOTE:

1. The products manufactured by the Company are not subject to licensing requirements. Accordingly, no disclosures in respect of licensed capacity have been made.

2. The installed capacities in respect of socks have been certified by the management and it is not verified by the auditors.

3. The details of actual production have been taken from the daily stock register maintained as required under the excise rules.

4. The production figures reported above are in respect of first quality.

GENERAL INFORMATION

Customers :

• Levi’s Socks
• Adidas
• United Colors of Benetton
• Disney
• WB
• Fruit of Loom
• Reebok
• Smartoe
• Dr. Scholl’s
• Polo
• Decathlon
• JD
• Foot Locker
• Walmart
• Mega Mart
• Shoppers Stop

No. of Employees :

150 (Approximately)

Bankers :

• Indusind Bank Limited, 2401 Gen Thimmayya Road, Contonment, Pune - 411001, Maharashtra, India
• Export-Import Bank of India, Centre One Building, Floor-21, Wold Trade Centre Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India
• Axis Bank Limited, 214/215, City Mall, 2nd Floor, University (Ganeshkhind) Road, Pune-411007, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Term loans from banks	3.603	1.291
Rupee term loans from others	24.589	11.835
Foreign currency term loans from others	56.152	19.814
Short Term Borrowings
Working capital loans from banks	23.534	17.873
Loans repayable on demand from banks	13.054	42.625
TOTAL	205.276	126.378
Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Other loans and advances	0.000	7.500
TOTAL	0.000	7.500

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Company Chartered Accountants
Address :	C-401, Fourth Floor, Panchshil Tech Park, Yerawada, Pune-411 006, Maharashtra, India
PAN No:	AALFS0506L
Holding Company :	Renfro Corporation, United States
Fellow Subsidiaries :	Renfro Cary and Holding Limited, Mauritius Renfro Asia Limited, Singapore Renfro Canada, Canada

CAPITAL STRUCTURE

AS ON 14.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
11500000	Equity Shares	Rs.10/- each	Rs.115.000 Millions
19250000	Preference Shares	Rs.10/- each	Rs.192.500 Millions
	TOTAL		Rs.307.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7760476	Equity Shares	Rs.10/- each	Rs.77.605 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	77.605	276.441
(b) Reserves & Surplus	170.451	(98.848)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	84.344	40.440
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	9.203	7.334
(4) Current liabilities
(a) Short term borrowings	36.588	60.498
(b) Trade payables	143.392	146.299
(c) Other current liabilities	171.382	132.774
(d) Short-term provisions	46.655	5.359
TOTAL	739.620	570.297
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	317.388	263.259
(ii) Intangible Assets	2.015	0.469
(iii) Capital work-in-progress	40.989	0.010
(iv) Intangible assets under development	1.389	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	18.147	14.864
(e) Other Non-current assets	5.488	26.715
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	208.815	183.544
(c) Trade receivables	45.739	29.318
(d) Cash and cash equivalents	31.925	2.752
(e) Short-term loans and advances	67.725	49.366
(f) Other current assets	0.000	0.000
TOTAL	739.620	570.297

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		244.630
2] Share Application Money		27.626
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(106.614)
NETWORTH		165.642
LOAN FUNDS
1] Secured Loans		119.254
2] Unsecured Loans		7.733
TOTAL BORROWING		126.987
DEFERRED TAX LIABILITIES		0.000
TOTAL		292.629
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		272.782
Capital work-in-progress		1.351
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	103.564
	Sundry Debtors	11.806
	Cash & Bank Balances	18.923
	Other Current Assets	9.952
	Loans & Advances	50.018
Total Current Assets		194.263
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	80.116
	Other Current Liabilities	84.940
	Provisions	10.711
Total Current Liabilities		175.767
Net Current Assets		18.496
MISCELLANEOUS EXPENSES		0.000
TOTAL		292.629

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	909.465	750.310	592.918
Less	EXPENSES
		Office Expenses
		Administrative Expenses	821.830	704.702	553.917
		Advertising Expenses
		TOTAL	821.830	704.702	553.917
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		87.635	45.608	39.001
Less/ Add	DEPRECIATION/ AMORTISATION		40.118	37.748	32.896
	PROFIT / (LOSS) BEFORE TAX		47.517	7.860	6.105
Less	TAX		0.027	0.095	0.060
	PROFIT / (LOSS) AFTER TAX		47.490	7.765	6.045
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(98.849)	(106.614)	(112.659)
Less	ADJUSTED ON ACCOUNT OF REDUCTION OF SHARES AS PER COURT SCHEME		(98.849)	0.000	0.000
	BALANCE CARRIED TO THE B/S		47.490	(98.849)	(106.614)
	EARNINGS IN FOREIGN CURRENCY		NA	601.312	560.777
	Earnings / (Loss) Per Share (Rs.)		6.12	0.28	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.22	1.03	1.02
Return on Total Assets (PBT/Total Assets}	(%)	6.81	1.38	1.31
Return on Investment (ROI) (PBT/Networth)		0.19	0.04	0.04
Debt Equity Ratio (Total Debt/Networth)		0.49	0.57	0.77
Current Ratio (Current Asset/Current Liability)		0.89	0.77	1.11

LOCAL AGENCY FURTHER INFORMATION

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

OUTLOOK:

The company foresees strong growth during Financial Year 2012-13. Exports are expected to continue with steady grow rate and investment is being planned for domestic market. Company is working closely with its large export customers to grow share of business. There is increasing focus on gaining domestic market share with pan India distributor network and building up Selling and Marketing team.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10384060
Corporate identity number of the company	U17118PN1995PTC018285
Name of the company	RENFRO INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No. 1231 (Part), Sanaswadi, Taluka Shirur Pune-412208, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	Axis Bank Limited, 214/215, City Mall, 2nd Floor, University (Ganeshkhind) Road, Pune-411007, Maharashtra, India Email: ruchi.joshi@axisbank.com
Nature of description of the instrument creating or modifying the charge	Simple Mortgage Deed (Without Possession)
Date of instrument Creating the charge	21.03.2013
Amount secured by the charge	Rs.101.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit - Base Rate + 3.25% p.a. EPC/PSC - Upto 180 days BR +1.50% From 180 days to 240 days BR + 2.50%, Above 240 days BR + 4% PCFC/PSCFC - LIBOR + 350 bps for others standard commission Terms of Repayment As per terms and conditions of sanction letter as advised by the Bank from time to time Margin Cash Credit - Inventory 25%, Book debts 40% (Covered period: Max. 90 days) EPC: 10% Letter of Credit - 10% in cash/FD pledged to the bank Bank guarantee - 10% Extent and Operation of the charge 1)First Pari Passu Charge on entire current assets of the company both present & Future 2)Second Pari Passu charge on entire fixed assets of the company 3) The Charge has been extended vide this simple mortgage deed dated 21.03.2013 to immovable property as second and pari passu charge with Indus-Ind Bank Limited
Short particulars of the property charged	All that piece and parcel of property admeasuring an area of about 01H 70R out of Gat No. 1231 lying and being situated at Village Sanaswadi, Taluka Shirur, District Pune within the limits of Zilla Parishad, Pune Taluka Panchayat Samiti and Grampanchayat Sanaswadi bounded as On or towards North By Gat no. 1228, On or towards East By Gat no. 1251, On or towards South By Gat No. 1234 On or towards West Approach Road and Gat no. 1231 All that piece and parcel of the property admeasuring an area of about OH26 R out of Gat no. 1228/3B lying and being situated at Village Sanaswadi, Taluka Shirur, District - Pune within the limits of Zilla Parishad, Pune, Taluka Panchayat Samiti and Grampanchayat Sanaswadi, bounded as On or towards North By Gat no. 1228, On or towards East By Gat no. 1251, On or towards South By Gat No. 1231 On or towards West By Gat no. 1228 All that piece and parcel of non-agriculture tenure lying and being at Village Wadivarhe, Taluka Igatpuri, District Nashik within the limits of Zilla Parishad, Nashik, Taluka Panchayat Samiti Igatpuri and Grampanchayat Wadivarhe bearing Gat no. 350 admeasuring total area of 02 H 96.15 R and bounded as On or towards North By Gat no. 350 part, On or towards East By Gaothan Road, On or towards South By Gat no. 350 part, 351, 352, 353, On or towards West By remaining portion of Gat no. 350 sold to Delta Finochem Private Limited Together with all the buildings and structures thereon and all plant and machinery attached to the eath or permanently fastened to anything attached to the earth both present and future.
Particulars of the present modification	By way of modification 1st charge extended on immovable properties of company to Exim Bank and 2nd charge to Indus-Ind Bank ltd and Axis Bank Limited The credit facilities will stand at Rs.101.000 Millions.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Computers and Software

· Furniture and Fitting

· Vehicles

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.58.93
UK Pound	1	Rs.91.80
Euro	1	Rs.78.18

INFORMATION DETAILS

Report Prepared by :

TPT

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.