MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	TODAYS WRITING INSTRUMENTS LIMITED	Principal Name 1	Mr. Rajesh Kumar Drolia
Status	Moderate	Principal Name 2	Mr. Ronald Netto
		Registration #
Street Address	Survey No. 251/2, Valsad Falia, Near Jain Temple, Dadra and Nagar Haveli – 396193, Union Territory, Union Territory, India
Established Date	29.04.1992	SIC Code	--
Telephone#	91-260-2668574/ 2668538	Business Style 1	Manufacturer
Fax #	91-260-2668536	Business Style 2	Exporter
Homepage	www.todays.co.in	Product Name 1	Writing Instruments
# of employees	Not Available	Product Name 2	Stationery Products
Paid up capital	Rs. 128,133,000/-	Product Name 3	-
Shareholders	No	Banking	State Bank of India
Public Limited Corp.	No	Business Period	21 Years
IPO	No	International Ins.	--
Public Enterprise	No	Rating	Ca (16)
Related Company
Relation	Country	Company Name	CEO
Subsidiary	-	Today’s Stationery Mart Limited	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	356,646,000	Current Liabilities	632,196,000
Inventories	55,229,000	Long-term Liabilities	1,498,354,000
Fixed Assets	299,473,000	Other Liabilities	90,397,000
Deferred Assets	284,379,000	Total Liabilities	2,220,947,000
Invest& other Assets	41,660,000	Retained Earnings	000
		Net Worth	(1,183,560,000)
Total Assets	1,037,387,000	Total Liab. & Equity	1,037,387,000
Total Assets (Previous Year)	1,919,044,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	577,869,000	Net Profit	1,013,536,000
Sales(Previous yr)	670,089,000	Net Profit(Prev.yr)	343,951,000

MIRA INFORM REPORT

Report Date :

14.05.2013

IDENTIFICATION DETAILS

Name :	TODAYS WRITING INSTRUMENTS LIMITED (w.e.f. 02.11.2011)

Formerly Known As :	TODAY’S WRITING PRODUCTS LIMITED

Registered Office :	Survey No. 251/2, Valsad Falia, Near Jain Temple, Dadra and Nagar Haveli – 396193, Union Territory

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	29.04.1992

Com. Reg. No.:	54-000041

Capital Investment / Paid-up Capital :	Rs. 128.133 Millions

CIN No.: [Company Identification No.]	L74999DN1992PLC000041

TAN No.: [Tax Deduction & Collection Account No.]	SRTT00791A

PAN No.: [Permanent Account No.]	AABCT1487E

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer, Seller, and Exporter of Writing Instruments and Stationery Products.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an established company having a moderate track record. Business is active. Company has huge accumulated losses. Profitability is under pressure. Liquidity position is weak. Payment terms are slow. The company can be considered for business dealings on a safe and secured 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

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/ Factory :	Survey No. 251/2, Valsad Falia, Near Jain Temple, Dadra and Nagar Haveli – 396193, Union Territory, India
Tel. No.:	91-260-2668574/ 2668538
Fax No.:	91-260-2668536
E-Mail :	secretarial@todays-pens.com
Website :	www.todays.co.in

Administrative Office :	201, Hari Om Chambers, B-16, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-66954900/ 66060800
Fax No.:	91-22-66954910
E-Mail :	todays@todays-pens.com

DIRECTORS

As on: 31.03.2012

Name :	Mr. Rajesh Kumar Drolia
Designation :	Chairman
Date of Birth/Age :	52 years
Qualification :	Commerce Graduate

Name :	Mr. Ronald Netto
Designation :	Managing Director
Date of Birth/Age :	52 years

Name :	Mr. Rahul Gupta
Designation :	Independent Director
Date of Birth/Age :	47 years
Qualification :	Commerce Graduate

Name :	Mr. Shreedhar M. Parande
Designation :	Independent Director
Date of Birth/Age :	75 Years
Qualification :	B.SC/M.SC/LLB, LLM.CAIIB, AIB. (London), Diploma in German Language, Certificate in French Language

Name :	Mr. Sunil Agarwal
Designation :	Whole Time Director ( Resigned w.e.f. 14.06.2011)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	% of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1134862	8.86
Sub Total	1134862	8.86
(2) Foreign
Bodies Corporate	456000	3.56
Sub Total	456000	3.56
Total shareholding of Promoter and Promoter Group (A)	1590862	12.42
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	144999	1.13
Insurance Companies	641814	5.01
Sub Total	786813	6.14
(2) Non-Institutions
Bodies Corporate	2674250	20.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4597096	35.88
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2286674	17.85
Any Others (Specify)	877605	6.85
Directors & their Relatives & Friends	20000	0.16
Non Resident Indians	125093	0.98
Clearing Members	4305	0.03
Hindu Undivided Families	402600	3.14
Trusts	300407	2.34
Employees	25200	0.20
Sub Total	10435625	81.44
Total Public shareholding (B)	11222438	87.58
Total (A)+(B)	12813300	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)	12813300	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Seller, and Exporter of Writing Instruments and Stationery Products.

Brand Names :	KIDZ OFFIX MARK PROFILES

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Ball Pen	GRS	1585098
Refills	GRS	138869

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India
Bank of India
HSBC Limited
ICICI Bank Limited
Axis Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Secured loan From Banks	236.600	236.600
Loans repayable on demand from banks
Cash credit	827.400	827.400
Total	1064.000	1064.000
Details of Security The company has mortgaged all its assets both current and fixed assets (both moveable and immovable) to SBI Trusteeship services (SBIT). Vide security trust deed dated 19th March 2008. and accordingly the term lenders ICICI Bank Limited and Axis Bank Limited are secured by first paripassu charge on immovable and movable fixed assets (except those pertaining to the current assets charge in favour of working capital bankers) and second charge on current assets and movable assets. Further, the Immovable assets of Premium Writing Products(PWP) has been charged to the lenders through a guarantee by PWP to the extent of pending transfer of immovable property of PWP . Also, personal gurantee of Mr. Rajesh Kumar Drolia and Mrs. Anita Drolia have been provided except to ICICI Bank Limited. The company has mortgaged all its assets both current and fixed assets (both movable and immovable) to State Bank of India trusteeship services (SBIT) vide security trust deed dated 19th March 2008 and accordingly the working capital lenders State Bank of India, Bank of India, ICICI Bank Limited. and HSBC Bank Limited. are secured by first paripassu charged on all current assets and movable assets (except those pertaining to the charged in favour of term lenders) and second charge on all immovable assets charged in favour of term lenders. Further, the Immovable assets of Premium Writing Products(PWP) has been charged to the lenders through a guarantee by PWP to the extent of pending transfer of immovable property of PWP. Also, personal gurantee of Mr. Rajesh Kumar Drolia and Mrs. Anita Drolia have been provided. Terms of Repayment The repayment schedule of term loans of Rs. 165.800 Millions were rescheduled by CDR cell on restructuring and it was payable @ 3.75 % per quarter commencing from 01.10.2015. The lenders are considering a settlement and on finalisation of the same terms of repayment will change.


Banking Relations :	--

Auditors :
Name :	Ajay Shobha and Company Chartered Accountants

Subsidiary Company:	Today’s Stationery Mart Limited Today’s Infrastructure and Construction Limited Today’s Fluid Technologies Limited

Associate Companies / Firms :	Today’s Petrotech Limited Millennium writing Products Private Limited Premium Writing Products Jaidurga Engineering Company Tirupati Tips Industries

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

12813300	Equity Shares	Rs.10/- each	Rs. 128.133 Millions

Out of above 4125000 Equity Shares of Rs. 10 each are alloted as fully paid up pursuant to the scheme of amalgamation without payment being- received in cash

Particulars	Number of Shares	Rs in Millions
Reconciliation of equity shares and amounts outstanding
At the beginning of the year	12813300	128.133
At the end of the year	12813300	128.133

Terms /rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10. The equity shares have rights, preferences and restrictions which are in accordance provisions of law, in particular the Companies Act, 1956.

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

Particulars	Number of Shares	% of holding
Bennett Coleman and Company Limited	844400	6.59

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		128.133	128.133	128.133
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	147.729
4] (Accumulated Losses)		(1311.693)	(298.157)	(101.935)
NETWORTH		(1183.560)	(170.024)	173.927
LOAN FUNDS
1] Secured Loans		1064.000	1064.000	1180.800
2] Unsecured Loans		434.354	429.675	474.107
TOTAL BORROWING		1498.354	1493.675	1654.907
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		314.794	1323.651	1828.834

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		299.473	380.491	452.632
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		41.660	41.660	41.527
DEFERREX TAX ASSETS		284.379	91.247	100.072

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.229	542.929	541.627
	Sundry Debtors	48.238	462.569	519.590
	Cash & Bank Balances	194.392	61.902	21.371
	Other Current Assets	37.288	29.736	0.000
	Loans & Advances	76.728	308.510	414.994
Total Current Assets		411.875	1405.646	1497.582
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	212.125	210.289	187.802
	Other Current Liabilities	420.071	306.163	22.944
	Provisions	90.397	78.941	52.233
Total Current Liabilities		722.593	595.393	262.979
Net Current Assets		(310.718)	810.253	1234.603

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		314.794	1323.651	1828.834

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	577.869	670.089	631.102
		Other Income	16.955	6.778	22.214
		TOTAL (A)	594.824	676.867	653.316

Less	EXPENSES
		Cost of materials consumed	484.879	394.933
		Purchases of traded goods	78.137	74.354
		Changes in inventories	340.612	18.586	775.719
		Employee benefits expense	58.266	52.102
		Other expenses	630.343	246.019
		TOTAL (B)	1592.237	785.994	775.719

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(997.413)	(109.127)	(122.403)

Less	FINANCIAL EXPENSES (D)		113.562	123.521	184.889

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1110.975)	(232.648)	(307.292)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		85.103	82.754	77.234

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1196.078)	(315.402)	(384.526)

Less	TAX (H)		(182.542)	28.549	39.147

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1013.536)	(343.951)	(345.379)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(445.886)	(101.935)	209.444

Less	APPROPRIATIONS
		Adjusted against the balance in General Reserve, to the extent available	0.000	0.000	(34.000)
	BALANCE CARRIED TO THE B/S		(1459.422)	(445.886)	(101.935)

	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	140.986	91.218	31.368
	TOTAL EARNINGS		140.986	91.218	31.368

	IMPORTS
		Raw Materials	5.297	17.271	24.469
		Stores & Spares	14.876	0.000	0.000
		Traded Goods	16.301	14.035	4.149
	TOTAL IMPORTS		36.474	31.306	28.618

	Earnings Per Share (Rs.)		(79.10)	(26.84)	(26.95)

QUARTERLY RESULTS

Particular	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	144.600	126.800	131.600
Total Expenditure	139.200	126.200	141.800
PBIDT (Excl OI)	5.400	0.600	(10.200)
Other Income	0.100	8.100	3.300
Operating Profit	5.500	8.700	(6.800)
Interest	28.300	28.200	28.300
Exceptional Items	0.000	0.000	0.000
PBDT	(22.800)	(19.400)	(35.100)
Depreciation	21.300	0.300	0.600
Profit Before Tax	(44.100)	(19.800)	(35.700)
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(44.100)	(19.800)	(35.700)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(44.100)	(19.800)	(35.700)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(170.39)	(50.82)	(52.86)

Net Profit Margin (PBT/Sales)	(%)	(206.98)	(47.07)	(60.93)

Return on Total Assets (PBT/Total Assets}	(%)	(168.14)	(17.66)	(19.72)

Return on Investment (ROI) (PBT/Networth)		1.01	1.86	(2.21)

Debt Equity Ratio (Total Debt /Networth)		(1.26)	(8.78)	9.51

Current Ratio (Current Asset/Current Liability)		0.57	2.36	5.69

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

PERFORMANCE

This year was one of great challenge to the Company. While, the key to consolidate the business was the infusion of additional working capital the challenges faced there could not be surmounted totally. While, there was an improvement in the efficiency check on costs, the sales suffered due to the inability to supply on time due to lack of working funds. While the CDR should have resulted in additional working capital the bankers refused to consider working capital at this stage. Hence during the year the Company has achieved net sales Rs.577.869 Millions (previous year Rs. 670.089 Millions) and incurred loss of Rs. 1013.536 Millions (previous year Rs. 343.951 Millions). During the year, the Company has continued its remedial measures which were started since 2009. Continuing the ongoing exercise of aligning the inventory to realistic value necessitated due the massive exercise of business restructuring undertaken by the company further diminution in value to the extent of Rs. 480.000 Millions was factored in the year. Likewise, the Company has also made suitable provisions for debtors for Rs. 382.100 Millions after reviewing and analyzing the same in detailed, considering all factors affecting the debtors. The silver lining has been the exports which moved up from Rs. 91.218 Millions in 2010-11 to 140.986 Millions in 2011-12. The growing trend is likely to continue in the current year.

OUTLOOK

The outlook for the industry despite the difficulties faced by the economy is good. The expectation of FDI in multibrand retail is another area that could result in consolidation in the industry. The Company is expected to strengthen the current phase of restructuring and consolidation during the year and is likely to emerge stronger at the end of the year.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

The new players who entered the industry last year are yet to find their feet and are not able to make any serious inroads in to the share or price points of the existing players. Exports continue to be robust but the disruption and political uncertainties in the middle east has caused some setback for exports. However, the market size is increasing and as such the new players will slowly find a niche segment for themselves.

The general sentiment in the industry is positive about the future prospects and investments in capacity creation and modernization upward of Rs. 2000.000 Millions in committed.

Overall the industry is vibrant and has entered a robust growth phase.

Industry Structure and Development

They have been reviewing the attention of international players in this segment. The interest continues and with the FDI in multi brand retail having been permitted there is intense interest. Coupled with the investment in modernization that is happening in the industry exciting times ahead is the forecast. The M&A opportunities in this industry is likely to see serious activity in next few years.

Writing instruments which are now a medium scale industry is poised to move towards the large scale segment with international market being the focus of all the leading players.

Export

The Company has exported goods worth Rs. 140.986 Millions (previous year Rs. 91.218 Millions) of writing instruments and stationery. The export plan that the company has drawn up last year has stayed it’s course though lack of working capital is a huge set back.

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loan Received from Directors and Relatives	99.291	90.839
Trade Deposits	1.450	3.346
Inter Corporated Deposit	5.175	7.052
Short Term Loans From Banks	328.438	328.438
Total	434.354	429.675

CONTINEGENT LIABILITIES

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
a) Income tax matters disputed in appeal
In all the above matters, the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize	103.283	75.350
b) Bank guarantee
i) Guarantee issued to various government departments and the Company is hopeful to meet its obligations.	12.801	12.801
ii) Corporate guarantee given on behalf of others - covered by indemnity under taking from Today's Petrotech Limited and Today’s Stationery Mart Limited	312.000	312.000

FIXED ASSETS

Freehold Land
Building
Plant and Machinery
Electricals Installations
Moulds
Office Equipments
Computer
Furniture and Fixtures
Vehicles

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. 54.92
UK Pound	1	Rs. 84.44
Euro	1	Rs. 71.32

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		16

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.

MIRA INFORM REPORT

55.229

48.238

194.392

37.288

76.728

411.875

212.125

420.071

90.397

722.593

(310.718)

(170.39)

(206.98)

(168.14)

1.01

(1.26)

0.57

Unit