MIRA INFORM REPORT

Report Date :

03.05.2013

IDENTIFICATION DETAILS

Name :	V S M WEAVES INDIA LIMITED
Formerly Known As :	V.S.P. WEAVES LIMITED
Registered Office :	SF No.334, Sankari Main Road, Kattur, Elanthakuttai Village, Tiruchengode Taluk, Namakkal District- - 638 008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.12.2002
Com. Reg. No.:	18-010398
Capital Investment / Paid-up Capital :	Rs. 47.350 Millions
CIN No.: [Company Identification No.]	U17111TZ2002PLC010398
TAN No.: [Tax Deduction & Collection Account No.]	CHEV05765E
PAN No.: [Permanent Account No.]	AABCV7326C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Seller and Exporter of Grey Cloth and Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in the profitability during 2011-2012. However, general financial position seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 – 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

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 :	SF No.334, Sankari Main Road, Kattur, elanthakuttai village, Tiruchengode Taluk, Namakkal District- - 638 008, Tamilnadu, India
Tel. No.:	91 4288 245500 / 04
Fax No.:	91 4288 245505
E-Mail :	info@vsmweaves.in
Website :	www.vsmweaves.in

DIRECTORS

As on 29.09.2012

Name :

Mr. Sengodagounder Muthusamy

Designation :

Director

Address :

67, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

07.05.1939

Qualification :

HR. Secoundary

PAN No. :

ADEPM5550G

Date of Appointment :

13.12.2002

DIN No.:

01369099

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	U17111TZ1989PLC002487	CHERAN SPINNER LIMITED	Director	21-07-89	21-07-89	03-11-10	Active	NO
2	U17111TZ1995PLC005909	PALLAVA TEXTILE LIMITED	Director	10-03-95	10-03-95	-	Active	NO
3	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Director	13-12-02	13-12-02	-	Active	NO
4	U18101DL2003PTC121197	R M D FABRICS PRIVATE LIMITED	Director	07-07-03	07-07-03	-	Active	NO
5	U17111TZ2005PLC011749	SHRI CHERAN SYNTHETICS INDIA LIMITED	Director	21-04-05	21-04-05	-	Active	NO
6	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	20-05-05	20-05-05	-	Active	NO

Name :

Mr. Vellayagounder Sengodagounder Palanisam

Designation :

Director

Address :

65, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

06.10.1948

Qualification :

HR. Secoundary

PAN No. :

ADIPP1481B

Date of Appointment :

02.04.2007

DIN No.:

01369156

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	U17111TZ1989PLC002487	CHERAN SPINNER LIMITED	Director	21-07-89	21-07-89	03-11-10	Active	NO
2	U17111TZ1995PLC005909	PALLAVA TEXTILE LIMITED	Director	10-03-95	10-03-95	-	Active	NO
3	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Director	02-04-07	13-12-02	-	Active	NO
4	U18101DL2003PTC121197	R M D FABRICS PRIVATE LIMITED	Director	07-07-03	07-07-03	-	Active	NO
5	U17111TZ2005PLC011749	SHRI CHERAN SYNTHETICS INDIA LIMITED	Whole-time director	02-05-12	21-04-05	-	Active	NO
6	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	20-05-05	20-05-05	-	Active	NO

Name :

Mr. Muthusamy Rajammal

Designation :

Director

Address :

67, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

20.04.1951

Qualification :

Secoundary

Date of Appointment :

13.12.2002

DIN No.:

01369201

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	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Director	13-12-02	13-12-02	-	Active	NO
2	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	30-09-10	01-10-09	-	Active	NO

Name :

Mr. Muthusamy Ravichandran

Designation :

Director

Address :

67, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

01.06.1966

Qualification :

Graduation

PAN No. :

ADXPR7514C

Date of Appointment :

01.04.2012

DIN No.:

01369264

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	U17111TZ1995PLC005909	PALLAVA TEXTILE LIMITED	Director	10-03-95	10-03-95	-	Active	NO
2	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Whole-time director	01-04-12	13-12-02	-	Active	NO
3	U18101DL2003PTC121197	R M D FABRICS PRIVATE LIMITED	Director	07-07-03	07-07-03	-	Active	NO
4	U17111TZ2005PLC011749	SHRI CHERAN SYNTHETICS INDIA LIMITED	Director	21-04-05	21-04-05	-	Active	NO
5	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	20-05-05	20-05-05	-	Active	NO

Name :

Mr. Palanisamy Duraisamy

Designation :

Director

Address :

65, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

20.09.1974

Qualification :

Graduation

PAN No. :

ACKPD5056H

Date of Appointment :

01.04.2012

DIN No.:

01369280

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	U17111TZ1995PLC005909	PALLAVA TEXTILE LIMITED	Director	10-03-95	10-03-95	-	Active	NO
2	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Whole-time director	01-04-12	13-12-02	-	Active	NO
3	U18101DL2003PTC121197	R M D FABRICS PRIVATE LIMITED	Director	07-07-03	07-07-03	-	Active	NO
4	U17111TZ2005PLC011749	SHRI CHERAN SYNTHETICS INDIA LIMITED	Director	21-04-05	21-04-05	-	Active	NO
5	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	20-05-05	20-05-05	-	Active	NO

Name :

Mr. Palanisamy Palaniammal

Designation :

Director

Address :

65, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

21.10.1953

Qualification :

Secoundary

Date of Appointment :

30.09.2010

DIN No.:

02379355

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	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Director	13-12-02	13-12-02	-	Active	NO
2	U17111TZ2005PTC011820	V S P INDUSTRIES PRIVATE LIMITED	Director	30-09-10	01-10-09	-	Active	NO

Name :

Mr. Ravichandran Muralidharan

Designation :

Director

Address :

65, Sankari, Bye- Pass Road, Pallipalayam, Erode- 638 006, Tamil Nadu, India

Date of Birth/Age :

03.08.1989

Date of Appointment :

29.09.2012

DIN No.:

03524694

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	U17111TZ1995PLC005909	PALLAVA TEXTILE LIMITED	Additional director	16-05-11	16-05-11	30-09-11	Active	NO
2	U17111TZ2005PLC011749	SHRI CHERAN SYNTHETICS INDIA LIMITED	Director	29-09-12	29-08-12	-	Active	NO
3	U17111TZ2002PLC010398	V S M WEAVES INDIA LIMITED	Director	29-09-12	29-08-12	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
V. S. Palanisamy	47860
S. Muthusamy	55225
M. Ravichandran	134910
M. Rajammal	510
P. Duraisamy	131010
P. Palaniammal	10875
R. Sathyadevi	10
R.M.D. Weaving Mills Private Limited, India	90500
AKT Securities Private Limited, India	223
BLSB Financial Services Private Limited, India	335
CSSB Securities Private Limited, India	568
Manak Potfolios Private Limited, India	67
MSSC Infotech Private Limited, India	736
SBBP Financial Services Private Limited, India	223
SDRM Infotech Private Limited, India	234
VMVS Textiles Private Limited, India	112
R. Muralidharan	100
Total	473498

As on 07.02.2013

Names of Allottee	No. of Shares Allotted
Manak Portfolios Private Limited, India	888
BLSB Financial Services Private Limited, India	7111
SBBP Financial Services Private Limited, India	5111
SDRM Infotech Private Limited, India	2444
SKAR Securities (Private Limited, India	7555
VMVS Textiles Private Limited, India	2222
Laxiwas Tradelink Private Limited, India	2777
Funidea Vinimay Private Limited, India	2777
Kotiratan Commonsales	2777
Total	33662

As on 07.02.2013

Names of Allottee	No. of Shares Allotted
Manak Portfolios Private Limited, India	112
BLSB Financial Services Private Limited, India	889
SBBP Financial Services Private Limited, India	889
SDRM Infotech Private Limited, India	556
SKAR Securities Private Limited, India	445
VMVS Textiles Private Limited, India	778
Laxiwas Tradelink Private Limited, India	890
Funidea Vinimay Private Limited, India	890
Kotiratan Commonsales	890
Total	6339

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Seller and Exporter of Grey Cloth and Yarn.

Products :

Description of product or service category	ITC Code
Grey cloth	5205

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Industrial Development Bank of India, 66;Sathy Main Road, Erode - 638003, Tamilnadu, India
• State Bank of India, 12A, Bye Pass Road, Pallipalayam,, ERODE - 638006, Tamilnadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-Term Borrowings
Rupee term loans from banks (Term loans from State Bank of India are secured by First Charge on the entire fixed assets acquired and to be purchased out of term loan. The factory Land 3.80 acres and building 134944 sq.ft at Elanthakuttai, Wind Mill Land 2.70 acres at Levinchipuram, Win)	183.583	114.166
Short-Term Borrowings
Working capital loans from banks (The above Loans are secured by first charge in favour of State Bank of India, on the entire Raw materials, Stock-in-Process, Finished Goods and Receivables and Other Current Assets of the Company. The fixed assets of the Company have also been secured as coll)	183.000	127.635
Total	366.583	241.801

Banking Relations :	--
Auditors :
Name :	T. N. Ramadoss and Company Chartered Accountants
Address :	No:54,Town Railway Station Road, Salem - 636 001, Tamilnadu, India
PAN.:	AAAFT9046R
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	R M D Fabrics Private Limited V S P Industries Private Limited Pallava Textiles Limited Shri Cheran Synthetics Limited

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
550000	Equity shares	Rs.100/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
516499	Equity Shares	Rs.100/- each	Rs.51.650 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
473498	Equity Shares	Rs.100/- each	Rs.47.350 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
S. Muthusamy	55225	11.66%
V.S. Palanisamy	47860	10.11%
M. Ravichandran	135010	28.51%
P. Duraisamy	135010	28.51%
R M D Fabrics Private Limited	90500	19.11%

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		47.350	47.100	47.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		374.968	303.095	206.381
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		422.318	350.195	253.481
LOAN FUNDS
1] Secured Loans		366.583	241.801	202.097
2] Unsecured Loans		69.037	48.324	9.237
TOTAL BORROWING		435.620	290.125	211.334
DEFERRED TAX LIABILITIES		87.262	54.446	43.412
TOTAL		945.200	694.766	508.227
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		608.802	534.328	341.227
Capital work-in-progress		19.869	0.000	1.034
INVESTMENT		2.576	2.576	2.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.527	160.435	106.141
	Sundry Debtors	175.429	166.428	150.140
	Cash & Bank Balances	212.151	47.265	4.544
	Other Current Assets	25.449	6.514	9.206
	Loans & Advances	132.577	105.466	29.764
Total Current Assets		619.133	486.108	299.795
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.045	134.532	118.108
	Other Current Liabilities	233.821	185.555	12.701
	Provisions	6.314	8.159	5.070
Total Current Liabilities		305.180	328.246	135.879
Net Current Assets		313.953	157.862	163.916
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		945.200	694.766	508.227

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1656.257	1425.354	981.032
		Other Income	18.215	10.481	15.694
		TOTAL (A)	1674.472	1435.835	996.726
Less	EXPENSES
		Cost of materials consumed	569.501	650.300
		Purchases of stock-in-trade	653.216	473.467
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	41.548	(32.265)	874.493
		Employee benefit expense	29.328	27.490
		Other expenses	165.950	122.528
		Exceptional items	0.000	(8.250)
		TOTAL (B)	1459.543	1233.270	874.493
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		214.929	202.565	122.233
Less	FINANCIAL EXPENSES (D)		45.200	13.135	22.593
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		169.729	189.430	99.640
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.113	51.575	44.752
	PROFIT BEFORE TAX (E-F) (G)		93.616	137.855	54.888
Less	TAX (H)		32.735	41.141	15.495
	PROFIT AFTER TAX (G-H) (I)		60.881	96.714	39.393
	EARNINGS IN FOREIGN CURRENCY
		Export of Cloth and Garments	83.279	49.269	28.479
	TOTAL EARNINGS		83.279	49.269	28.479
	IMPORTS
		Machinery	0.000	101.654	46.909
		Stores & Spares	2.601	4.190	5.075
		Raw Material	56.157	24.149	13.946
		Chemical	6.383	4.832	1.893
	TOTAL IMPORTS		65.141	134.825	67.823
	Earnings Per Share (Rs.)		128.58	205.34	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.64	6.74	3.95
Net Profit Margin (PBT/Sales)	(%)	5.65	9.67	5.59
Return on Total Assets (PBT/Total Assets}	(%)	7.62	13.51	8.56
Return on Investment (ROI) (PBT/Networth)		0.22	0.39	0.22
Debt Equity Ratio (Total Debt /Networth)		1.03	0.83	0.83
Current Ratio (Current Asset/Current Liability)		2.03	1.48	2.21

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	No

PERFORMANCE:

During the year the performance was good. During the year, sales and conversion charges receipts have increased by Rs.191.053 Millions and Rs.39.850 Millions respectively. However, production of grey cloth has decreased from 121.50 Lakhs Mts to 114.88 Lakhs Mts. With the increase in Manufacturing costs and lower selling price, PBDI/Sales has been decreased to 13.38% from 15.04%. Two fold increases in interest and depreciation costs has drastically depleted the profit before tax to Rs.93.616 Millions as against the profit before tax of Rs.137.855 Millions in the previous year. During the year the company earned cash profit of Rs.136.995 Millions as against Rs.148.289 Millions in the previous year.

FUTURE PROSPECTS:

Effective steps are being taken to sustain the market demand. The Gross revenue is likely to increase substantially in the forthcoming year.

FINANCE:

The company has availed a term loan of Rs.131.517 Millions during the year. Directors do not wish to recommend any dividend, as the funds are required to meet the ongoing project expansion plan.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-Term Borrowings
Intercorporate borrowings	48.037	41.324
Loans and advances from related parties	21.000	7.000
Total	69.037	48.324

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Export bills discounted	9.048	10.258

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Electrical
• Genset
• Humidification
• Substation
• Fire Extinguisher
• Office Equipments
• Weighing Machine
• Furniture
• Vehicles Computer

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.53.74
UK Pound	1	Rs.83.54
Euro	1	Rs.70.72

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	6
--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		47

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.