MIRA INFORM REPORT

Report Date :

04.03.2013

IDENTIFICATION DETAILS

Name :	PEE VEE TEXTILES LIMITED
Formerly Known As :	PEE VEE TEXTILES PRIVATE LIMITED
Registered Office :	AT-Jambtahsil-Samudrapur, Jamb – 442305, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.03.1986
Com. Reg. No.:	11-039177
Capital Investment / Paid-up Capital :	Rs.150.000 Millions
CIN No.: [Company Identification No.]	U17110MH1986PLC039177
TAN No.: [Tax Deduction & Collection Account No.]	NGPP01646B
PAN No.: [Permanent Account No.]	AABCP0024F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Poly Viscose Yarns.
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 3400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established company having a satisfactory track record. There appears some dip in the profits during 2012. However, trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.11.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating: A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	26.11.2012

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.

LOCATIONS

Registered Office :	AT-Jamtahsil-Samudrapur, Jamb – 442305, Maharashtra, India
Tel. No.:	91-7151-270145/ 225549/ 225548
Mobile No.:	91-9821344733 (Mr. B. R. Jain) 91-9850334099 (Mr. Paras Munat)
Fax No.:	91-7151-225498/ 225448
E-Mail :	ho@peeveetxtiles.com
Website :	http://www.peeveetextiles.com
SPINNING DIVISION :
Works Tel No.:	91-7151-225449/225548/270145
Sales Tel No.:	91-7151-225380
Fax No.:	91-7151-225448
Email :	info@peeveetextiles.com
WEAVING DIVISION :
Works Tel No.:	91-7151-270090
Sales Tel No.:	91-7151-270090
Fax No.:	91-7151-225448
Email :	naveen@peeveetextiles.com
Mumbai Office:	202, Niranjan, 99, Marine Drive, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-22882169/ 22045823/ 24
Fax No.:	91-22-22045813

DIRECTORS

(AS ON 29.09.2012)

Name :

Mr. Arunkumar Gwaldas Mohota

Designation :

Managing Director

Address :

MT-27-408317, Mohota Garden, N. H. No.7, Hinganghat, Wardha – 442301, Maharashtra, India

Date of Birth/Age :

12.08.1959

Date of Appointment :

01.10.2012

PAN No.:

ACDPM8261E

DIN No.:

01153466

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	Company/ LLP Status	Defaulting status
1	U17120MH1982PLC028369	B A MOHOTA TEXTILES TRADERS LTD	Director	05/10/1982	05/10/1982	Active	NO
2	U17110MH1986PLC039177	PEE VEE TEXTILES LIMITED	Managing director	01/10/2012	27/07/1986	Active	NO
3	U17100MH1988PTC047477	PERFECT SYNTHETICS PRIVATE LIMITED	Director	25/05/1988	25/05/1988	Active	NO
4	U51474MH1993PTC072289	GIRIRAJ TRADING PVT LTD	Director	07/06/1993	07/06/1993	Active	NO
5	U17100MH1998PTC115729	UDAY TEXTILE PROCESSORS PRIVATE LIMITED	Director	10/07/1998	10/07/1998	Active	NO

Name :

Mr. Gwaldas Mathuradasji Mohota

Designation :

Whole-time Director

Address :

MT-27-130-408287, Mohota Garden, National Highway No.7, Hinganghat, Wardha – 442301, Maharashtra, India

Date of Birth/Age :

17.04.1930

Date of Appointment :

01.09.2010

Pan No.:

ACDPM8262H

DIN No.:

00927619

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	Company/ LLP Status	Defaulting status
1	U51474MH1993PTC072289	GIRIRAJ TRADING PVT LTD	Director	07/06/1993	07/06/1993	Active	NO
2	U17110MH1986PLC039177	PEE VEE TEXTILES LIMITED	Whole-time director	01/09/2010	18/06/1994	Active	NO
3	U17120MH1982PLC028369	B A MOHOTA TEXTILES TRADERS LTD	Director	22/08/1994	22/08/1994	Active	NO

Name :

Mr. Subhash Chhotalal Kothari

Designation :

Director

Address :

101-102, Skylark, New Kantwadi Road, Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

13.09.1943

Date of Appointment :

30.01.1993

DIN No.:

01030014

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	Company/ LLP Status	Defaulting status
1	U17110MH1986PLC039177	PEE VEE TEXTILES LIMITED	Director	30/01/1993	30/01/1993	Active	NO
2	U51900MH1968NPL013966	COUNCIL FOR FAIR BUSINESS PRACTICES	Director	31/08/2006	31/08/2006	Active	NO

Name :

Mr. Kasturia Kumar Jatindar

Designation :

Whole-time Director

Address :

Quarter No.A1/3, Pee Vee Textiles Limited, Jam, Wardha – 442305, Maharashtra, India

Date of Birth/Age :

04.03.1951

Date of Appointment :

01.04.2011

PAN No.:

ACCPK9604J

DIN No.:

01030103

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	Company/ LLP Status	Defaulting status
1	U17110MH1986PLC039177	PEE VEE TEXTILES LIMITED	Whole-time director	01/04/2011	01/04/2005	Active	NO

KEY EXECUTIVES

Name :	Mr. Budhraj Dharmichand Jain
Designation :	Company Secretary
Address :	A-204, Sealand Tower, Jesal Park, Bhyander (East), Mumbai – 401105, Maharashtra, India
Date of Birth/Age :	01.09.1969
Date of Appointment :	11.01.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Arunkumar Gwaldas Mohota	1551000
B. A. Mohota Textiles Trader Private Limited, India	3745500
Perfect Synthetic Limited, India	3743248
Gwaldas Mathuradasji Mohota	1725000
Sarladevi Gwaldasji Mohota	1525100
Aartidevi Arunkumar Mohota	750752
Sneha Mohota	12000
Adarsh Kumar Mohota	1110000
Arunkumar Gwaldasji Mohota	376900
Gwaldasji Mathuradasji Mohota	444500
Giriraj Trading Private Limited, India	16000
Total	15000000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Bodies corporate	50.03
Directors or relatives of directors	49.97
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Poly Viscose Yarns.

Products :

Products Description	Item Code No.
Synthetic Yarn	55099100
Cotton Yarn	52071000
Grey Fabric	55141110

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad

Corporate Finance Branch, 11-C, Mittal Tower, 210 Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans from Banks	1201.145	1000.844
Loans repayable on demand from Banks	453.757	382.485
Total	1654.902	1383.329

Banking Relations :	--
Auditors :
Name :	Tapdiya Chandra and Company Chartered Accountant
Address :	Bharat Housing Society, Jai Road, Civil Lines, Warda-442001, Maharashtra, India
PAN No.:	AAMPT7891E
Associates	· B A Mohota Textiles Traders Limited CIN No.: U17120MH1982PLC028369 · Perfect Synthetics Private Limited CIN No.: U17100MH1988PTC047477 · Giriraj Trading Private Limited CIN No.: U51474MH1993PTC072289 · Uday Textile Processors Private Limited CIN No.: U17100MH1998PTC115729

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 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		150.000	150.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		702.844	605.268	427.596
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		852.844	755.268	502.596
LOAN FUNDS
1] Secured Loans		1654.902	1383.329	1303.515
2] Unsecured Loans		218.730	170.041	119.484
TOTAL BORROWING		1873.632	1553.370	1422.999
DEFERRED TAX LIABILITIES		114.347	96.035	93.804
TOTAL		2840.823	2404.673	2019.399
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1883.176	1442.919	1373.910
Capital work-in-progress		3.123	65.699	1.661
INVESTMENT		0.008	0.008	0.008
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	566.470	545.611	287.608
	Sundry Debtors	510.524	498.823	355.657
	Cash & Bank Balances	4.517	3.532	9.638
	Other Current Assets	217.456	235.568	0.000
	Loans & Advances	31.293	15.367	157.565
Total Current Assets		1330.260	1298.901	810.468
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	121.185	148.202	80.094
	Other Current Liabilities	176.926	183.025	72.968
	Provisions	77.633	71.627	13.586
Total Current Liabilities		375.744	402.854	166.648
Net Current Assets		954.516	896.047	643.820
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2840.823	2404.673	2019.399

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4499.454	4190.213	2911.238
		Other Income	(7.430)	(3.721)	57.060
		TOTAL (A)	4492.024	4186.492	2968.298
Less	EXPENSES
		Cost of Materials Consumed	2955.697	2802.738
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	11.997	(205.133)	2558.165
		Employee Benefit Expense	190.159	172.104
		Other Expenses	785.724	703.281
		TOTAL (B)	3943.577	3472.990	2558.165
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		548.447	713.502	410.133
Less	FINANCIAL EXPENSES (D)		153.771	109.000	101.366
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		394.676	604.502	308.767
Less/ Add	DEPRECIATION/ AMORTISATION (F)		227.799	199.334	177.089
	PROFIT BEFORE TAX (E-F) (G)		166.877	405.168	131.678
Less	TAX (H)		54.115	135.018	42.938
	PROFIT AFTER TAX (G-H) (I)		112.762	270.150	88.740
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		499.100	321.600	245.810
Less	APPROPRIATIONS
		Proposed Dividend	15.000	15.000	11.250
		Corporate Tax on Dividend	2.400	2.700	1.688
		Capitalised During the year (Bonus Issue	--	75.000
	BALANCE CARRIED TO THE B/S		594.462	499.050	321.612
	Earnings Per Share (Rs.)		7.52	18.01	11.83

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.51	6.45	2.99
Net Profit Margin (PBT/Sales)	(%)	3.71	9.67	4.52
Return on Total Assets (PBT/Total Assets}	(%)	5.19	14.78	16.25
Return on Investment (ROI) (PBT/Networth)		0.20	0.54	0.26
Debt Equity Ratio (Total Debt/Networth)		2.20	2.06	2.83
Current Ratio (Current Asset/Current Liability)		3.54	3.22	4.86

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

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and Advances from others	218.730	170.041
Total	218.730	170.041

REVIEW OF OPERATIONS

The Financial year was challenging for the entire Textile Industry.

The unprecedented price fluctuation in the cotton and cotton yarn in global and domestic markets affected the industry adversely as well as realization. In spite of all these head winds the company was able to increase the total turnover to Rs.4490.000 Millions i.e. an increase of 7% over FY 2010-11 in line with the ongoing expansion project. The exports were at Rs.1520.000 Millions.

The Company also managed to maintain a decent performance in spite of adverse market conditions through various initiatives like quality improvement, up gradation to modern technology, capacity expansion, identifying the right product mix, identifying the right market and various cost reduction initiatives.

The company’s focus continues to be on increasing volumes and improving operational efficiencies in every sphere of its business operations.

OUTLOOK AND OPPORTUNITES:

Countries across the globe witnessed economic turmoil through most part of 2011. USA had issues of debt and growing unemployment. Euro zone crisis was spreading day by day with its ill effects harming the world, at large. Asia too had its own challenges. But, China and India emerged as the hope for rest of the world. However, towards the fag end of 2011, the global economy witnessed some encouraging signs of moderate growth as the threats from the above mentioned factors were milder than expected.

The Indian economy witnessed a slowdown in 2011-12, largely owing to global factors combined with domestic challenges like tightening of monetary policy, high inflation, weakening industrial growth and investment. India’s industrial production witnessed a 2.80% growth during the year.

The Indian textile and apparel industry is estimated to be worth USD 75 bn in 2011-12 with almost 65% of the total textile and apparel production being consumed domestically. It accounts for about 14% of India's total industrial production and contributes to nearly 10% of total exports. It provides direct employment to about 35 million people and another 56 million are engaged in allied activities. It accounts for nearly 4% of India’s GDP. The Indian textile industry is expected to expand from USD 75 bn to USD 200 bn by 2020.

The industry holds a significant position in India by catering to the most basic its needs – clothing. The Indian textiles industry is integrated in terms of being extensively engaged in the procurement of raw materials right up to the final production of the actual textile product.

Robust retail boom in domestic market owing to favourable consumer demographics and increasing consumption coupled with rising per capita income and disposable incomes provides huge growth opportunities India’s share of the global textile industry is expected to grow from 4.3% in 2011 to 8% by 2020.

The Company’s businesses benefited from strong demand recovery and better realization.

The Company is trying to expand its market share by focusing on quality up gradation, modernisation, diversification, cost reduction and new product development through increased thrust on Research and Development as also improving customer services.

The management has been doing its best to achieve greater productivity, which ultimately would result in competitive production cost. The various technologies up gradation schemes pursued by the Company and diversification into grey fabric are a complement to these efforts.

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	10358819
Corporate identity number of the company	U17110MH1986PLC039177
Name of the company	PEE VEE TEXTILES LIMITED
Address of the registered office or of the principal place of business in India of the company	At-Jambtahsil-Samudrapur, Jamb – 442305, Maharashtra, India ho@peeveetextiles.com
Type of charge	Immovable property
Particular of charge holder	State Bank of Hyderabad Corporate Finance Branch, 11-C, Mittal Tower, 210 Nariman Point, MUMBAI – 400021, Maharashtra, India narimanponit@sbhyd.co.in
Nature of description of the instrument creating or modifying the charge	An Indenture of Mortgage (English Mortgage) was created by the company on 16th July, 2012 in favour of State Bank of Hyderabad (SBH) in respect of company's immovable properties situated at Jamb-442305, Samudrapur, Dist Wardha, Maharashtra, first charge on pari passu basis (present and future) alongwith other term lenders for additional term loan of Rs.100.000 Millions sanctioned to the company under TUFs by SBH.
Date of instrument Creating the charge	16/07/2012
Amount secured by the charge	Rs.100.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Fresh Term Loan of Rs.100.00 Millions at 3.75% above state bank of Hyderabad base rate i.e. presently 14.25% p.a. (floating) with monthly rests. Terms of Repayment The repayment shall be in 24 structured quarterly installments i.e. 10 installment at Rs.3.000 Millions each and 14 installments of Rs.5.000 Millions each commencing at the end of moratorium period of two Years. Margin 34.21% Extent and Operation of the charge The first charge is on pari passu basis with IDBI and SBI.
Short particulars of the property charged	All those company's immovable properties situated at Survey No 43/1,43/2, 44, 41/2, 41/3, 41/4, 41/5, 42, 45, 51 and 364 within the village limits of Jamb-442305 Taluka and registration sub-district Samudrapur, District and registration district Wardha, Maharashtra.
Particulars of the present modification	SBH RTL of Rs.100.000 Millions TUFs sanctioned to the company originally secured by way of hypothecation dated 09.05.2012 is now additionally secured by way of joint mortgage created on 16/07/2012 on first charge on pari passu basis in respect of company's immovable properties situated at Jamb – 442305, Samudrapur, District Wardha, Maharashtra.

FIXED ASSETS:

· Land

· Factory Building

· Water Supply and Management System

· Temple

· Temporary Structure

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computer

· Other Assets

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.54.48
UK Pound	1	Rs.82.72
Euro	1	Rs.71.27

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--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
DEFAULTER
--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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.