MIRA INFORM REPORT

Report Date :

29.03.2013

IDENTIFICATION DETAILS

Name :	BRINTONS CARPETS ASIA PRIVATE LIMITED
Registered Office :	Plot No. 414/ 415/ 416, Village Urwade, Taluka Mulshi, District Pune – 412108, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.10.1997
Com. Reg. No.:	11-014590
Capital Investment / Paid-up Capital :	Rs. 340.000 Millions
CIN No.: [Company Identification No.]	U17226PN1997PTC014590
IEC No.:	398048479
TAN No.: [Tax Deduction & Collection Account No.]	PNEB02333C
PAN No.: [Permanent Account No.]	AAACB7059H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Sale of Machine made Axminister Woven Carpets and Spun Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. The company enjoys comfortable financial risk profile. Performance capability of the company is good. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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	ICRA
Rating	Long Term Rating: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	March, 2012

Rating Agency Name	ICRA
Rating	Short Term Rating: A2+
Rating Explanation	Strong degree of safety and low 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 / Corporate Office / Factory :	Plot No. 414/ 415/ 416, Village Urwade, Taluka Mulshi, District Pune - 412108, Maharashtra, India
Tel. No. :	91-20-66758220/22929208/229292216/65101398
Mobile No.:	91-8605013398 [Mr. Sachin Pawar]
Fax No.:	91-20-22929233/ 24101396/66758233
Email :	shreekant@brasia.com gpalbal@brasia.com
Website :	www.brintons.net
Area:	24 Acres
Location :	Owned
Sales Office :	Luhia Jain, IT Park, Kothrud, Pune, Maharashtra, India (w.e.f 01.11.2011)
Overseas Offices :	Located At: Singapore Sanghai Brunei Tamuning Hong Kong Indonesia Japan 1020083 Kazakhstan Seoul Malaysia Philippines Russia, Colombo Korea Taiwan Vietnam

DIRECTORS

As on: 28.09.2012

Name :

Mr. Gururaj Purshottam Albal

Designation :

Managing Director

Address :

Flat No. 19, Durwankur No. 3, S. No. 36/1/Ic/1, Pashan, Pune – 411008, Maharashtra, India

Date of Birth/Age :

14.08.1953

Qualification :

Graduate in Textile Technology

Experience :

36 Years

Date of Appointment :

04.09.2007

PAN No.:

AATPA8277A

DIN No.:

00185820

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17111MH2001PTC130465	TESSITURA MONTI INDIA PRIVATE LIMITED	Director	19/04/2001	19/04/2001	01/04/2007	Active	NO
2	L18101KA1994PLC016554	PAGE INDUSTRIES LIMITED	Director	27/07/2007	30/10/2006	-	Active	NO
3	U17226PN1997PTC014590	BRINTONS CARPETS ASIA PRIVATE LIMITED	Managing director	04/09/2007	04/09/2007	-	Active	NO
4	U72900MH2008PTC181604	ACTIVE DYNAMICS PRIVATE LIMITED	Director	25/04/2008	25/04/2008	21/03/2013	Active	NO

Name :

Mr. Philip Eric Ellis

Designation :

Director

Address :

24 Lady Meadow Close, Denstone, Uttoxester UK 145EY

Date of Birth/Age :

10.09.1955

Date of Appointment :

13.02.2008

DIN No.:

02136581

Name :

Mr. Prakash Shankar Basannavar

Designation :

Director

Address :

S No.126/1A, Kunal Icon Pim, Saudagar Building. D/6, Flat-304, Pune – 411207, Maharashtra, India

Date of Birth/Age :

01.02.1965

Date of Appointment :

28.09.2012

DIN No.:

05214338

KEY EXECUTIVES

Name :	Mr. Harish Ramlal Maheshwari
Designation :	Company Secretary
Address :	O-1/3, Jai Vijayshree CHS, Goregaon (West), Mumbai - 400090, Maharashtra, India
Date of Birth/Age :	03.11.1966
Date of Appointment :	01.04.2008
PAN No.:	AAEPM3453D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Brintons Limited, UK	3399997
Brintons Overseas Holding Limited, UK	3
Total	3400000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Sale of Machine made Axminister Woven Carpets and Spun Yarn.

Products :

Item Code No. (ITC Code)	57029210
Product Description	Machine made woven woolen carpets
Item Code No. (ITC Code)	99611631
Product Description	Spun Yarn

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, Kothrud,, Pune - 411038, Maharashtra, India
• Bank of Baroda, CFS Mantri Court Ambedkar Road, Pune, Maharashtra, India
• Allahabad Bank, Laxmi Road, Kunte Chowk, Pune, Maharashtra, India.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks	77.342	49.408
Cash credit facilities	44.547	40.083
Cash/export credit facilities	132.007	113.903
Total	253.896	203.394
Term loans from banks Out of the above, term loans amounting to Rs. 32.674 Millions are repayable in quarterly installments of Rs 4.183 Millions each. Term loans amounting to Rs. 28.416 Millions are repayable in monthly installments of Rs. 1.250 Millions each. Interest is leviable @ 3% over base rate (current base rate is 10%). Loans are secured by equitable mortgage on factory land and building; exclusive first charge on other fixed assets viz. plant and machinery, computer systems, furniture and fittings and vehicles; and second charge on current assets of the Company. Cash credit facility is secured by exclusive hypothecation charges over entire current and future stocks, book debts and current assets of the Company and second on movable and immovable fixed assets. It carries interest @ base rate plus 3% (current base rate is 10%) Cash / export credit facility is secured by first pari passu charge on stock of raw material, imported / indigenous components, stores and spares, stock in process, packing material and finished goods etc. and book debts both present and future of the Company and second pari passu charge on fixed assets. It carries interest @ 3.50% p.a. plus Libor for export credit facility in foreign currency (USD), for export credit facility in INR @ base rate plus 0.75% minus 2% (subsidy for carpet industry), for cash credit @ base rate plus 4% (current base rate is 10%).

Banking Relations :	--
Auditors :
Name :	B. B. S. R. and Company Chartered Accountant
Address :	703 Godrej Cassstlemaine, 7th Floor, Bund Garden Road, Pune – 411001, Maharashtra, India
PAN.:	AAAFB9852F
Holding Company :	Brintons Limited, United Kingdom Brintons Carpet Limited, United Kingdom
Fellow Subsidiary company :	Brintons Carpet Manufacturing ( Suzhou ) Limited, China

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3400000	Equity Shares	Rs.100/- each	Rs. 340.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3400000	Equity Shares	Rs.100/- each	Rs. 340.000 Millions

Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs 100 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are 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.

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

Name of Shareholder	No. of shares	% of Holding
Brintons Limited, UK	3399997	99.99

Of the above shares, 1,753,557 shares are allotted as fully paid-up shares pursuant to contract for consideration other than cash.

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		340.000	340.000	340.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		594.898	487.789	429.556
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		934.898	827.789	769.556
LOAN FUNDS
1] Secured Loans		253.896	203.394	147.839
2] Unsecured Loans		0.000	0.000	54.320
TOTAL BORROWING		253.896	203.394	202.159
DEFERRED TAX LIABILITIES		17.875	18.517	18.847
TOTAL		1206.669	1049.700	990.562
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		451.848	412.731	466.317
Capital work-in-progress		1.354	1.731	3.648
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		14.756	11.707	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	306.929	217.977	203.522
	Sundry Debtors	848.891	538.492	369.370
	Cash & Bank Balances	1.496	19.166	17.195
	Other Current Assets	2.598	1.197	0.000
	Loans & Advances	72.449	85.243	68.354
Total Current Assets		1232.363	862.075	658.441
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	367.731	142.069	86.262
	Other Current Liabilities	66.191	62.456	28.274
	Provisions	59.730	34.019	23.308
Total Current Liabilities		493.652	238.544	137.844
Net Current Assets		738.711	623.531	520.597
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1206.669	1049.700	990.562

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2009
	SALES
		Income	1166.901	1060.108	924.770
		Other Income	189.118	112.662	58.110
		TOTAL (A)	1356.019	1172.770	982.880
Less	EXPENSES
		Operating Expenses	1111.951	1011.612	872.580
		TOTAL (B)	1111.951	1011.612	872.580
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		244.068	161.158	110.300
Less	FINANCIAL EXPENSES (D)		25.188	17.711	5.080
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		218.880	143.447	105.220
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.129	59.298	71.480
	PROFIT BEFORE TAX (E-F) (G)		164.751	84.149	33.740
Less	TAX (H)		57.642	25.916	(1.830)
	PROFIT AFTER TAX (G-H) (I)		107.109	58.233	35.570
	EARNINGS IN FOREIGN CURRENCY		1094.474	923.530	624.068
	IMPORTS
		Raw Materials			399.755
		Capital Goods	653.059	483.166	26.149
		Others			24.430
	TOTAL IMPORTS		653.059	483.166	450.334
	Earnings Per Share (Rs.)		31.50	17.13	10.46

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.89	4.96	3.62
Net Profit Margin (PBT/Sales)	(%)	14.12	7.94	3.65
Return on Total Assets (PBT/Total Assets}	(%)	9.78	6.60	3.00
Return on Investment (ROI) (PBT/Networth)		0.17	0.10	0.04
Debt Equity Ratio (Total Debt /Networth)		0.27	0.25	0.26
Current Ratio (Current Asset/Current Liability)		2.49	3.61	4.78

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	Yes
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

NOTE:

The registered office of the company has been shifted from Sant Singh Mokha’s Bunglow, 60 Anand Park, Street No.2, Aundh, Pune – 411 007, India to the present address w.e.f. 28.07.1999

OPERATIONAL PERFORMANCE:

The turnover during the year increased by 10.07%, from Rs. 10600.108 Millions during the previous year to Rs 1166.901 Millions in the Current Year. The Company has earned Cash Profit of Rs. 218.879 Millions and net profit of Rs. 107.109 Millions as against previous year figures of Rs. 143.447 Millions and Rs. 58.233 Millions respectively. As forecasted in the last report, the turnover and margins have strongly improved during the current year. In order to conserve resources the board has not recommended any dividend.

BACKGROUND

Subject was incorporated on 21 October 1997 as a 100% export oriented unit ('EOU'). During the current year, the Company has deregistered itself from being an EOU. The entire share capital of the Company is held by Brintons Limited, UK and Brintons Overseas Holding Limited.

The Company manufactures and sells Axminster Carpets. In 2003, the Company commenced the manufacture and sale of spun yam. A substantial portion of BRASIA's production is sold to Brintons Limited UK and the remainder is sold in the local market. The manufacturing facility of BRASIA is located at Pirangut, Pune.

The Company also renders IT enabled design, planning and estimation services to Brintons Limited, UK in connection with manufacture of carpets.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17226PN1997PTC014590
Name of the company	BRINTONS CARPETS ASIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 414/ 415/ 416, Village Urwade, Talluka Mulshi, District Pune – 412108, Maharashtra, India gpalbal@brasia.com
This form is for	Modification of charge
Charge identification number of the modified	10385086
Type of charge	Immovable Property Any interest in immovable property
Particular of charge holder	Punjab National Bank, Kothrud,, Pune - 411038, Maharashtra, India udaybhat@pnb.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of entry
Date of instrument Creating the charge	08.02.2013
Amount secured by the charge	Rs. 100.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest PC - BR+0.75% and PCFC - LIBOR + 3.50% (excluding with holding tax) per annum or such other rate as may be fixed from time to time by the Bank. Rate of Interest for CC - BR+2.50% per annum Terms of Repayment On demand Margin For cash credit facility: 1. Stocks - Various raw materials viz manufacturing material, raw materials including excisable raw materials, stock in process, semi finished goods, finished goods (including bought out finished goods) viz any other securities acceptable to Bank - 25% 2. Book Debts - 40% For packing credit facility: 10% on raw material, finished goods, stock in process, packing material, consumables Extent and Operation of the charge First pari passu charge on the current assets of the company alongwith bank of baroda and second pari passu charge on movable fixed assets and immovable properties alongwith bank of baroda, operates as a continuing security for due payment/repayment by the borrower of the secured obligations ( repayment of all monies including the principal sums, interest, cost charges, expenses and other monies payable by the borrower )
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1.All that piece and parcel of land bearing Gat no. 414, admeasuring 1 Hectare 83 Ares or thereabout and assessed at Rs 3.22, laying being and situated at village Urwade, Taluka Mulshi District Pune and within the limits of Grampanchayat of Urwade , Taluka Mulshi District Pune in the jurisdiction of Sub Registrar, Mulshi, District Pune 2.All that piece and parcel of land bearing Gat no. 415, admeasuring 1 Hectare 80 Ares or thereabout and assessed at Rs 3.25, laying being and situated at village Urwade, Taluka Mulshi District Pune and within the limits of Grampanchayat of Urwade , Taluka Mulshi District Pune in the jurisdiction of Sub Registrar, Mulshi, District Pune 3.All that piece and parcel of land bearing Gat no. 416, admeasuring 6 Hectare 35 Ares or thereabout and assessed at Rs 3.69, laying being and situated at village Urwade, Taluka Mulshi District Pune and within the limits of Grampanchayat of Urwade , Taluka Mulshi District Pune in the jurisdiction of Sub Registrar, Mulshi, District Pune Together with easements appurtenant thereto and together with buildings / structures/ standing or to be constructed hereafter on all aforesaid lands and fixtures and fittings annexed thereto and also together with all fixed plants and machineries ,installed / to be installed thereon both present and future and also as stated in agreement.
Particulars of the present modification	By this modification the immovable property mentioned in 2nd Schedule of mortgage deed is provided as additional security for working capital facilities of Rs. 100.000 Millions availed from Punjab National Bank Kothrud Branch Pune, on 2nd Paripassu charge basis (i.e on paripassu basis with Bank of Baroda, CFS Branch for its working capital facilities of aggregate limits of Rs. 150.000 Millions already subsisting .) all other terms and conditions remains the same as per original form

FIXED ASSETS:

• Land
• Building
• Plant and machinery
• Furniture and fixtures
• Vehicles
• Computer Equipments

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. 54.39
UK Pound	1	Rs. 82.32
Euro	1	Rs. 69.54

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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		55

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.