MIRA INFORM REPORT

Report Date :

06.03.2013

IDENTIFICATION DETAILS

Name :	VIPPY SPIN PRO LIMITED
Registered Office :	318, City Center, 570, M.G. Road, Indore – 452 001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.04.1992
Com. Reg. No.:	10-007043
Capital Investment / Paid-up Capital :	Rs.58.700 millions
CIN No.: [Company Identification No.]	L01710MP1992PLC007043
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 676000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

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

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	CARE
Rating	Long Term Bank Facility: BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligations it carry moderate credit risk.
Date	March, 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 :	318, City Center, 570, M.G. Road, Indore – 452 001, Madhya Pradesh, India
Tel. No.:	91-731-2546710
Fax No.:	Not Available
E-Mail :	vippyspinpro@dataone.in admin@vippyspinpro.com
Website :	http://www.vippyspinpro.com
Works Office :	14-A, Industrial Area No.1, A.B. Road, Dewas – 455 001, Madhya Pradesh, India
Tel. No.:	91-7272-258251/ 258252/ 405352
Fax No.:	91-7272-400121

DIRECTORS

As on 31.03.2012

Name :	Mr. Piyush Mutha
Designation :	Managing Director
Name :	Mr. Praneet Mutha
Designation :	Director
Date of Birth/ Age:	11.09.1971
Qualification :	M. Com
Experience in specific functional area :	Mr. Praneet Mutha is Master of Commerce (M.Com.) and possess vast experience in the field of Finance and Marketing. He has more than 16 years experience in cotton industry and other industries.
Date of Appointment :	19.12.2000
Name :	Mr. M.L. Jain
Designation :	Director
Name :	Mr. M. Maruthi Rao
Designation :	Director
Name :	Mr. Shailendra K. Jain
Designation :	Director
Name :	Mr. Subhash Kocheta
Designation :	Director
Name :	Mr. K. Raghuram
Designation :	Director
Date of Birth/ Age:	06.09.1969
Qualification :	B.E. in Electronics and MBA
Experience in specific functional area :	Mr. K. Raghuram is Bachelor of Engineering (B.E.) in Electronics and has also done MBA. He has over 22 years vast experience in the field of technical, Commercial, Finance and various other areas.
Date of Appointment :	31.10.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3038308	51.76
Bodies Corporate	102062	1.74
Sub Total	3140370	53.50
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3140370	53.50
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3800	0.06
Sub Total	3800	0.06
(2) Non-Institutions
Bodies Corporate	338056	5.76
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1829719	31.17
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	297162	5.06
Any Others (Specify)	260893	4.44
NRIs/OCBs	259993	4.43
Clearing Members	900	0.02
Sub Total	2725830	46.44
Total Public shareholding (B)	2729630	46.50
Total (A)+(B)	5870000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	5870000	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of Cotton Yarn.

Products :

Item Code No. (ITC Code)	52051110
Product Description	Cotton Yarn

PRODUCTION STATUS (AS ON 31.03.2012):

Particulars	2011-12 Rotors
a) Licensed Capacity	N.A.
b) Installed Capacity	3,168

Particulars	Actual Production M.T.
Cotton Yarn	7816.030
Waste	712.605
Scrap/Others	--
Soya Grits	--

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

· HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
(a) Term loans from Banks
Punjab National Bank-Term loan- II	14.843	25.021
Punjab National Bank-Term loan- III	10.449	14.161
Punjab National Bank-Term loan- IV	37.081	45.830
Punjab National Bank-Term loan- V	11.662	0.000
(b) Vehicle Loan	0.000	0.172
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks
Working capital facilities from Punjab National Bank	170.899	125.938
Total	244.934	211.122

Notes:

LONG TERM BORROWINGS

(a) Term loans

i) Term loan under Technology upgradation fund scheme (TUFS), secured against, (i) Charge by way of equitable mortgage of Land and Building. (ii) first charge land and Building, plant and machinery both present and future. The above said term loans are also collaterally secured by way of personal guarantees of 2 (two) directors/promoters of the Company.

ii) The Term loan are repayable as under:

S. No.	Term Loan	No. of Instalment	Periodicity	Instalment (Rs. In millions)
1	Term Loan II	32	Quarterly	2.545
2	Term Loan III	32	Quarterly	0.894
3	Term Loan IV	32	Quarterly	2.187
4	Term Loan V	20	Quarterly	1.610

iii) The Company has not made any default as at the reporting date in repayment of term loan installment and interest.

iv) The Term loan carries interest @ 9.75% (net of interest subvention under TUF Scheme @5% except 4% on T/L No. V)

b) Vehicle Loan HDFC Bank

i) Vehicle loan is secured by hypothecation of vehicle.

ii) Vehicle loan is repayable 36 monthly installment

iii) The Company has not made any default as at the reporting date in repayment of vehicle loan installment and interest.

iv) The vehicle loan carries interest @ 9.25%

SHORT TERM BORROWINGS

(a) Working capital facilities from Punjab National Bank

i) Working capital facilities, fund based of Rs.180.000 millions and non fund based of Rs.10.000 millions (Previous year Rs.130.000 millions and Rs.10.000 millions) is secured by hypothecation of stock of raw material, semi finished goods, work in progress/process, stores and spares, packing materials and books debts. (ii) first pari passu charge on all the Company's current assets. The above said working capital facilities is also collaterally secured by way of (i) personal guarantee of 2 (two) directors of the Company.

ii) The Company has not made any default with respect to working capital facilities as at the reporting date.

iii) Working capital facilities carries interest @ 14.25% while on Packing Credit interest rate is 11.50%

Banking Relations :	--
Auditors :
Name :	Sodani and Company Chartered Accountants
Address :	Dewas, Madhya Pradesh, India
Cost Auditors :
Name :	M. Goyal and Company Cost Accountants
Address :	Jaipur, Rajasthan, India
Other Related Party :	Vippy Industries Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5870000	Equity Shares	Rs.10/- each	Rs.58.700 millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting year

Particulars	March 31, 2012
	Nos.	Amount (Rs. In millions)
Equity
Outstanding at the beginning of the year	5870000	58.700
Issued during the year	0	0.000
Outstanding at the end of the year	5870000	58.700

Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each shareholder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Detail of shareholders holding more than 5% shares in the Company

Name of shareholder	March 31, 2012
	Nos.	%age
Equity shares of Rs.10/- each fully paid
(i) Usha Mutha	681768	11.61%
(ii) Sunita Mutha	468400	7.98%
(iii) Piyush Mutha	521750	8.89%
(iv) Praneet Mutha	521050	8.88%

During the year unpaid allotment money on 21700 shares @ Rs.5/- per shares total Rs.0.108 million received.

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		58.700	58.591	58.591
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		110.192	86.755	66.424
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		168.892	145.346	125.015
LOAN FUNDS
1] Secured Loans		244.934	211.122	201.585
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		244.934	211.122	201.585
DEFERRED TAX LIABILITIES		18.496	20.773	22.340
TOTAL		432.322	377.241	348.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		162.251	180.964	181.783
Capital work-in-progress		8.757	0.000	11.925
INVESTMENT		1.302	1.355	0.430
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	195.999	175.760	116.331
	Sundry Debtors	97.478	81.127	76.749
	Cash & Bank Balances	2.227	2.293	5.895
	Other Current Assets	1.219	0.530	4.628
	Loans & Advances	28.446	14.699	7.870
Total Current Assets		325.369	274.409	211.473
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.323	13.628	43.610
	Other Current Liabilities	35.739	43.297	0.622
	Provisions	20.295	22.562	12.439
Total Current Liabilities		65.357	79.487	56.671
Net Current Assets		260.012	194.922	154.802
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		432.322	377.241	348.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1022.345	887.262	533.953
		Other Income	7.269	4.737	4.040
		TOTAL (A)	1029.614	891.999	537.993
Less	EXPENSES
		Cost of material consumed	795.496	673.247	372.872
		Purchase of Traded Goods	5.288	26.677	20.690
		Change in inventories of finished goods and work in progress	10.246	(19.951)	1.276
		Employees benefits expense	18.530	13.228	11.063
		Other expenses	123.027	123.602	82.231
		Prior period expenditure	0.247	0.040	0.279
		TOTAL (B)	952.834	816.843	488.411
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.780	75.156	49.582
Less	FINANCIAL EXPENSES (D)		16.772	16.793	11.793
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.008	58.363	37.789
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.723	28.149	22.833
	PROFIT BEFORE TAX (E-F) (G)		34.285	30.214	14.956
Less	TAX (H)		10.848	9.882	5.277
	PROFIT AFTER TAX (G-H) (I)		23.437	20.332	9.679
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods (FOB Basis)	43.108	34.479	21.366
	TOTAL EARNINGS		43.108	34.479	21.366
	IMPORTS
		Capital Goods	0.518	10.218	39.303
	TOTAL IMPORTS		0.518	10.218	39.303
	Earnings Per Share (Rs.)		3.99	3.47	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2012 (1^st Quarter)	30.09.2012 (2^nd Quarter)	31.12.2012 (3^rd Quarter)
Net Sales	241.900	211.500	203.500
Total Expenditure	222.300	192.900	182.700
PBIDT (Excl OI)	19.700	18.600	20.800
Other Income	1.900	2.100	1.400
Operating Profit	21.600	20.600	22.200
Interest	8.100	7.600	6.000
Exceptional Items	0.000	0.000	0.000
PBDT	13.500	13.000	16.300
Depreciation	6.400	6.500	6.200
Profit Before Tax	7.000	6.600	10.000
Tax	2.100	2.000	2.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	4.900	4.600	7.200
Extraordinary Items	0.000	0.000	(0.100)
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	4.900	4.600	7.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.28	2.28	1.80
Net Profit Margin (PBT/Sales)	(%)	3.35	3.41	2.80
Return on Total Assets (PBT/Total Assets}	(%)	7.03	6.64	3.80
Return on Investment (ROI) (PBT/Networth)		0.20	0.21	0.12
Debt Equity Ratio (Total Debt/Networth)		1.45	1.45	1.61
Current Ratio (Current Asset/Current Liability)		4.98	3.45	3.73

LOCAL AGENCY FURTHER INFORMATION

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

OPERATIONAL REVIEW

The Company achieved a turnover of Rs.1029.614 millions as against Rs.891.999 millions in the previous financial year, recording an increase of 15.43%. The Profit before Tax of Rs.34.285 millions as against Rs.30.214 millions in the previous financial year, recording an increase of 13.47%. The Profit after tax of Rs.23.437 millions as against Rs.20.332 millions in the previous financial year, recording an increase of 15.27%.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMY-OVERVIEW

The Global Economy growing slowly after economic crises in the year 2008 -2009. European debt crises, political turmoil in Middle East ,along with certain exogenous shock like the Japanese nuclear disaster, has resulted in a sharp global economic slowdown during the 2011-12. The fragility of many of the world's major economies is continuing. Recently the IMF projected that the China would grow 8.2% in year 2012 and 8.3% in 2013, and India would grow 6.9%in 2012 and 7.3% in 2013, and the global economy is expected to grow 3.5 per cent this year, rising to 4.1 per cent in 2013.Prsently the political, economic and social breakdown in Greece is an acute expression of a broader crisis of European and world capitalism.

The Indian Economy has been adversely affected by the global economic crises created by the sovereign debt crises, political turmoil in Middle East and consequent rise in crude oil prices. Weaking of rupees is continuing the major concern for development of the Indian Economy.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian textile industry is one the largest and older sectors in the country and plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. Indian Textile Industry contributes about 14% to industrial production, 4% to the GDP, and 17% to the Country's export earnings. It provides direct employment to over 35 million people, and it is the second largest provider of employment after agriculture. India has potential to increase to its textiles products share in the world trade form the current level.

The Ministry of Textile has taken various policy initiatives in the last few years to improve the competitiveness of the Indian Textile Industry. Various schemes such as Technology Up gradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks, Development of Mega Cluster, Integrated Skill Development Scheme, and Technology

Mission of Technical Textiles etc. have been launched with the objective of accelerating growth in export and investment in the textile sector.

The Government has been continually supporting the textiles exports sector through various provisions of the Foreign Trade Policy and the other policy initiatives to enable the sector to increase market share in the global textiles market. The Company is engaged in the manufacturing of cotton yearn for different applications by Rotor Spinning. Rotor spinning is economical, since the process is very short, consumes less energy and offer substantial cost benefits in the choice of raw material in comparison to Ring Spinning especially in coarse counts. The company is also engaged in power generation of power through Wind Mills for captive consumption.

SEGMENT WISE PERFORMANCE

The Company generates power through wind mill for captive use. Hence no segment reported.

FUTURE OUTLOOK

This year witnessed a significant slowdown in textiles production due to a combination of factors such as slowdown in demand, high raw martial prices etc. The slowdown in global economic growth is expected to affect the cotton consumption of textile products and demand for cotton fiber domestically and internationally. However the overall scenario of textile and clothing industry looks optimistic and India will continue to be a dominant payer in the textile and clothing market both for export and domestic market and the overall prospects in the long term seems to be encouraging.

FINANCIAL ANALYSIS

The Company achieved a turnover of Rs.1029.614 millions as against Rs.891.999 millions in the previous financial year, recording an increase of 15.43%. The Profit before Tax of Rs.34.285 millions as against Rs.30.214 millions in the previous financial year, recording an increase of 13.47%. The Profit after tax of Rs.23.437 millions as against Rs.20.332 millions in the previous financial year, recording an increase of 15.27%.

CONTINGENT LIABILITIES: (AS ON 31.03.2012)

(To the extent not provided for)

a) Counter Guarantee:

For Rs.6.879 millions given to Punjab National Bank for Guarantee given by them to Custom/DGFT department against which company has given to bank FDR for Rs.0.894 million as margin money.

b) Demand of Entry Tax by commercial tax department Rs.0.244 million for assessment year 2004-05. Case pending with M.P. Tax Tribunal Board Bhopal.

c) Demand of Entry Tax by commercial tax department Rs.0.108 million for assessment year 2005-06. Case pending with M.P. Tax Tribunal Board Bhopal.

d) Demand of Entry Tax by commercial tax department Rs.0.790 million for assessment year 2007-08. Case pending with Additional Commissioner of Commercial Taxes (Appeal) Indore. Company has provided liabilities for Rs.0.321 million in the financial year 2007-08.

e) Demand outstanding of Income Tax Rs.0.165 million for assessment year 1996-97.

FIXED ASSETS:

· Leasehold Land

· Plant and Machinery

· Office equipments

· Furniture fixtures

· Vehicles

· Building and Site Development

· Computers

· Wind Mill

WEBSITE DETAILS:

PROFILE:

Subject was established in 1992 as a Public Limited Company and is listed on Bombay Stock Exchange. It was started with a capacity of 7 MT/day of open end of 100% cotton yarn and now it had reached to 25MT/day that tells their success story since past 19 years.

The factory campus is spread in over 05 acres of land in Dewas which is in close proximity to Indore, a main commercial city in the state of M.P., the major cotton producing area.

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.54.65
UK Pound	1	Rs.82.65
Euro	1	Rs.71.21

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.