MIRA INFORM REPORT

Report Date :

17.06.2013

IDENTIFICATION DETAILS

Name :	TESSITURA MONTI INDIA PRIVATE LIMITED
Registered Office :	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.01.2001
Com. Reg. No.:	11-130465
Capital Investment / Paid-up Capital :	Rs. 350.000 Millions
CIN No.: [Company Identification No.]	U17111MH2001PTC130465
TAN No.: [Tax Deduction & Collection Account No.]	KLPT01579E / KLPT01925A / MUMT07261C
PAN No.: [Permanent Account No.]	AABCT3524E
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in weaving, processing, dyeing, importing, exporting, trading of dyed yarn cotton shirting fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 3280000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears an extreme dip in the net profitability during 2012. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for normal business dealings at usual trade terms and condition.

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	Long term rating : BBB+
Rating Explanation	Moderate degree of safety.
Date	March 29, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	March 29, 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 / Marketing Office :	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-26846961-62
Fax No.:	91-22-26846960
E-Mail :	indomont@vsnl.net marketing@tessituramonti.co.in ravikala@tessituramonti.co.in
Website :	http://www.tessituramonti.co.in http://www.monti.co.in
Corporate Office :	Tessitura Monti S.p.A Via Saltore, 10, 31052 Maserada Sul Piave (Treviso), Italy
Tel. No.:	+39 0422 729 290
E-Mail :	montispa@monti.it
Factory :	Gat No.147, Village Tamgaon, Kolhapur-Hupari Road, Kolhapur R S, Kolhapur – 416234, Maharashtra, India
Tel. No.:	91-231-2676935
Fax No.:	91-231-2676828
E-Mail :	info@monti.co.in

DIRECTORS

AS ON 28.09.2012

Name :	Manuel Monti
Designation :	Director
Address :	Cortina D’ Ampezzo Via Pezie N, Italy Localita, Pezie 116
Date of Birth/Age :	02.09.1950
Date of Appointment :	15.01.2001
DIN No.:	01349686
Name :	Massimo Monti
Designation :	Director
Address :	Treviso, Italy, Via Maffetti, 12, Italy
Date of Birth/Age :	05.03.1964
Date of Appointment :	15.01.2001
DIN No.:	01424761
Name :	Paolo Monti
Designation :	Director
Address :	Maserada Sul Piave Italy Via Saltore
Date of Birth/Age :	28.06.1953
Date of Appointment :	15.01.2001
DIN No.:	01424827
Name :	Mr. Shrikrishna Yeshwant Kelkar
Designation :	Whole-time director
Address :	C/O Mr. K M Salvi , 1182/108, Swapna Mali Colony, Takala, Kolhapur – 416008, Maharashtra, India
Date of Birth/Age :	11.07.1956
Date of Appointment :	01.04.2007
PAN No.:	AKEPK5482E
DIN No.:	01451026
Name :	Bruno Monti
Designation :	Director
Address :	Maserada Sul Piave Italy Via Saltore
Date of Birth/Age :	31.01.1957
Date of Appointment :	15.01.2001
DIN No.:	01639989

KEY EXECUTIVES

Name :	Mr. Madhukar Mayyala Kamath
Designation :	Company Secretary
Address :	602, Sunflower Royal Complex, Eksar Road, Borivali (West), Mumbai – 400092, Maharashtra, India
Date of Birth/Age :	27.11.1959
Date of Appointment :	01.11.2002
PAN No.:	AAEPK0938M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Gruppo Tessile Monti Spa, Italy	33652500
Gruppo Monti Spa, Italy	1347500
Total	35000000

AS ON 28.09.2012

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]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in weaving, processing, dyeing, importing, exporting, trading of dyed yarn cotton shirting fabrics.

Products/ Services :

ITC Code No.	Product Descriptions
99612330	The company is engaged in weaving, processing, dyeing, importing, exporting, trading of dyed yarn cotton shirting fabrics.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Dyed Yarn Shirting Fabrics	Linear Meters	16197000	14036000	10403209

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Canara Bank, Prime Corporate Branch - I, Dalamal Towers B Wing, 101, 1st Floor, Free Press Journal Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

Ø Canara Bank, Maker Tower 'F', 20th Floor, 85, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Ø EXIM Bank Limited

Ø Bank of Baroda

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks [Secured by corporate guarantee of promoter company (holding company) and fellow subsidiary ie Gruppo monti spa.]	675.708	813.687
SHORT-TERM BORROWINGS
Working capital loans from banks	239.517	327.530
Total	915.225	1141.217
Note: LONG-TERM BORROWINGS Term loans from banks are secured by way of first charge, by mortgage of land and buildings, and hypothecation of plant and machinery and movable fixed assets both present and future, whether or not installed, ranking paripassu interse between the bankers and are further secured by corporate guarantee of promoter company (holding company) and fellow subsidiary ie Gruppo monti spa. SHORT-TERM BORROWINGS The Company has working capital facilities with banks. Such facilities are secured by hypothecation of stock of raw materials, stock in process, finished goods and book debts of the Company by way of first charge and second charge by way of mortgage and hypothecation of the assets as stated in note no. 5.2 above, ranking paripassu interse between the bankers and are further secured by corporate guarantee of promoter company (holding company) and fellow subsidiary ie Gruppo monti spa.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	1-8-384 and 385, Third Floor, Gowra Grand, S P Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFD7919A
Holding company :	Ø Gruppo Tessile Monti Spa, Italy
Fellow Subsidiary company :	Ø Tessitura Monti Spa Ø Tessitura Monti Cekia Sro Ø Schoch Reeds India Private Limited [U29269MH2008PTC187568]
Joint venture :	Ø Aurora Apparel Private Limited [U17120MH2009PTC196209] Ø New Island Clothing Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Ø Laguna Clothing Private Limited [U17111KA2005PTC058647] Ø Gruppo Monti Spa

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 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	350.000	350.000
(b) Reserves & Surplus	470.406	464.509
(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	696.399	832.843
(b) Deferred tax liabilities (Net)	82.860	98.300
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	6.543	5.594
(4) Current liabilities
(a) Short term borrowings	239.517	327.530
(b) Trade payables	254.503	253.156
(c) Other current liabilities	243.788	248.089
(d) Short-term provisions	11.558	30.933
TOTAL	2355.574	2610.954
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1186.643	1369.250
(ii) Intangible Assets	3.045	1.789
(iii) Capital work-in-progress	33.475	11.649
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	38.241	38.241
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	32.699	30.428
(e) Other Non-current assets	9.368	11.232
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	643.097	644.051
(c) Trade receivables	227.564	289.959
(d) Cash and cash equivalents	47.378	57.543
(e) Short-term loans and advances	124.554	147.026
(f) Other current assets	9.510	9.786
TOTAL	2355.574	2610.954

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		350.000
2] Share Application Money		0.000
3] Reserves & Surplus		405.101
4] (Accumulated Losses)		0.000
NETWORTH		755.101
LOAN FUNDS
1] Secured Loans		1285.975
2] Unsecured Loans		36.684
TOTAL BORROWING		1322.659
DEFERRED TAX LIABILITIES		118.912
TOTAL		2196.672
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1380.729
Capital work-in-progress		77.011
INVESTMENT		0.000
DEFERREX TAX ASSETS		10.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	494.157
	Sundry Debtors	223.639
	Cash & Bank Balances	38.838
	Other Current Assets	139.343
	Loans & Advances	38.745
Total Current Assets		934.722
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	176.526
	Other Current Liabilities	17.699
	Provisions	11.565
Total Current Liabilities		205.790
Net Current Assets		728.932
MISCELLANEOUS EXPENSES		0.000
TOTAL		2196.672

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2157.150	2215.900	1486.912
		Other Income	NA	10.304	53.718
		TOTAL (A)	NA	2226.204	1540.630
Less	EXPENSES
		Manufacturing and other expenses			1359.595
		Increase/(Decrease) in stock			(89.492)
		TOTAL (B)	NA	1754.764	1270.103
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		389.780	471.440	270.527
Less	FINANCIAL EXPENSES (D)		174.650	193.620	92.355
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		215.130	277.820	178.172
Less/ Add	DEPRECIATION/ AMORTISATION (F)		202.800	193.620	165.485
	PROFIT BEFORE TAX (E-F) (G)		12.330	84.200	12.687
Less	TAX (H)		6.440	24.790	5.608
	PROFIT AFTER TAX (G-H) (I)		5.890	59.410	7.079
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		434.511	375.101	368.022
	BALANCE CARRIED TO THE B/S		440.401	434.511	375.101
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1150.580	1222.188	765.420
	IMPORTS
		Raw Material and processing chemicals		333.370	295.308
		Fabric (Traded)		1.149	0.000
		Capital Goods		70.138	111.984
		Spares, Components etc.		37.112	28.135
	TOTAL IMPORTS		NA	441.769	435.427
	Earnings Per Share (Rs.)		0.17	1.70	0.20

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	2.67	0.46
Net Profit Margin (PBT/Sales)	(%)	0.57	3.80	0.85
Return on Total Assets (PBT/Total Assets}	(%)	0.54	3.29	0.55
Return on Investment (ROI) (PBT/Networth)		0.02	0.10	0.02
Debt Equity Ratio (Total Debt/Networth)		1.14	1.42	1.75
Current Ratio (Current Asset/Current Liability)		1.40	1.34	4.54

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Loans and advances from related parties	20.691	19.156
Total	20.691	19.156

CORPORATE INFORMATION / BACKGROUND

Tessitura Monti India Private Limited is incorporated on 15th January, 2001 in Maharashtra, India and is promoted by Gruppo Tessile Monti Spa of Italy as an Indian subsidiary for manufacturing of cotton yarn shirting fabrics.

The manufacturing facilities are located at Kolhapur, Maharashtra. The Company is engaged in weaving, processing, dyeing, importing, exporting, trading of dyed yarn cotton shirting fabrics.

OPERATIONAL PERFORMANCE:

The turnover during the year increased by 2.65% from Rs. 2157.150 Millions during the previous year to Rs. 2215.900 Millions in the Current Year. Due to recession in Europe, there was less orders from the Customer but the Company is able to achieve the turnover with marginal increase as compared to the last year. However due to continued cost pressures the margin was less and company earned cash profit of Rs 215.130 Millions against Rs 277.820 Millions in the earlier year. Similarly the net profit after tax was at Rs 5.890 Millions against Rs 59.410 Millions during the last year. In order to conserve resources the board is not recommending any dividend.

The Company has shifted part of its requirement of electricity consumption from the existing captive generation to State electricity from MSEB thereby reducing the costing on Power and Fuel. Efforts are still on to avail more power requirements from MSEB by end of the Current Year.

The total numbers of people employed at the end of the period were 818 and indirect employment was at 122 as compared to previous year’s figures of 815 and 117 respectively.

ECONOMIC SCENARIO

The year began with a good note but over the later period got effected by the global slow down. As per IMF report growth in advanced economies slowed to 1.6% in 2011 against 3.2 recorded in 2010. Even the emerging and developing economies like India, China and Brazil recorded slower growth 6.2% in 2011 against 7.5% recorded in 2010. Sovereign debt crisis in Europe effected demand for companies product in the last quarter of 2011-12, affecting the workings. The trend is likely to continue as the growth is expected to be lower in 2012. Indian economy is expected to grow at below 7% in 2012 as compared to 8.6% in 2011.

Cotton prices were fluctuating and this in turn resulted in changing yarn prices. Inflation continued to be in double digit and resultant monetary restrictions resulted in higher interest costs. The company was able to reduce its borrowings by better inventory and receivable management, thereby limiting the cost of this increase. Higher inflation resulted in increase of operating costs thereby reducing the margins.

REVIEW OF OPERATIONS

During the year, The Company’s turnover has increased marginally as compared to the previous year’s turnover. The sales and profit of the Company have been adversely affected by adverse market condition mainly in Europe. Employee’s costs increased from 4.9% to 5.94% due to increase in wages after the long-term settlement and inflationary affect. Finance cost increased from 6.7% to 7.88%, due to increase in interest rates, due to the steps taken by Reserve Bank of India to control inflation. Company has taken steps to reduce the impact of this by reducing the borrowings by better management of working capital.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17111MH2001PTC130465
Name of the company	TESSITURA MONTI INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	401, Trade Avenue, Suren Road, Andheri (East), Mumbai – 400093, Maharashtra, India Email: indomont@vsnl.net
This form is for	Modification of charge
Charge identification number of the modified	90144220
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Canara Bank, Maker Tower 'F', 20th Floor, 85, Cuffe Parade, Mumbai - 400005, Maharashtra, India Email: cb2630@canarabank.com
Nature of description of the instrument creating or modifying the charge	Joint and Composite deed of Mortgage
Date of instrument Creating the charge	19.07.2012
Amount secured by the charge	Rs. 400.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Deed of Hypothecation and sanction letter of bank. Terms of Repayment On Demand Margin As per Deed of Hypothecation and sanction letter of bank. Extent and Operation of the charge First charge on current assets of the company on pari passu basis with Bank of Baroda and Bank of India. Second charge on the Entire Fixed Assets of the company pari passu basis with Bank of Baroda, Bank of India and Exim Bank.
Short particulars of the property charged	All those pieces and parcels of Freehold lands and premises situated in village Tamgaon in Karveer District in state of Maharashtra as referred to in the schedule of deed of mortgage Together with buildings and structure standing on aforesaid lands and all fixed plants and machineries installed on aforesaid lands both present and future as referred to in the schedule of deed of mortgage Whole of the movable plant and machinery all other assets in godowns situated in village Tamgaon and Mudshingi in Kolhapur District as referred to in the schedule of deed of mortgage Immovable property consisting of Unit bearing No. 401, admeasuring about 143.58 sq.mt area situated at registered office address of the Company as referred to in the schedule of deed of mortgage
Date of Modification	02.05.2012
Particulars of the present modification	By the present modification, the charge was created by execution of deed of hypothecation on 02.05.2012 is further enlarge by execution of deed of mortgage for credit facility of Rs.400.000 Millions as under Nature of the facility Modified Limit Fund Based PC/ FDB Rs.300.000 Millions ILC/FLC/(DA/DP Rs.100.000 Millions ------------------------------------------ Total Rs.400.000 Millions

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
In respect of bills of exchange discounted with Bank	412.475	462.210
Income tax demand in respect of earlier years under dispute, pending in appeal before higher authorities. Amount paid there against under protest and included Advance Income Tax (Net of provision) (Rs. 9.578 Millions) previous year (Rs.6.864 Millions). Future cash outflow in respect of earlier years income tax demand are determined only on receipt of judgement / decision pending before various authorities.	16.031	16.031

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Factory building

Ø Plant and equipment

Ø Other plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Motor vehicles

Ø Office equipment

Ø Other equipments

Ø Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 57.74
UK Pound	1	Rs. 90.64
Euro	1	Rs. 77.02

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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

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