MIRA INFORM REPORT

Report Date :

01.11.2013

IDENTIFICATION DETAILS

Name :	INDIA SHOES EXPORTS PRIVATE LIMITED
Registered Office :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.04.1998
Com. Reg. No.:	18-040339
Capital Investment / Paid-up Capital :	Rs. 88.177 Millions
CIN No.: [Company Identification No.]	U19201TN1998PTC040339
PAN No.: [Permanent Account No.]	AAACI5683A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Footwear.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Farida Group Company one of the biggest exporter of leather and leather goods. It is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ (Long Term)
Rating Explanation	Moderate risk of default.
Date	May 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Naiyer Hussein
Designation :	Accounts Executive
Contact No.:	91-44-45921500
Date :	29.10.2013

LOCATIONS

Registered Office/ Factory :	151/4, Mount Poonamallee High Road, Ramapuram, Chennai – 600089, Tamilnadu, India
Tel. No.:	91-44-22520710/ 22521515/ 22521946/ 22521654/ 22522610/ 45921500
Fax No.:	91-44-22520358
E-Mail :	holding@farida.co.in office@indiashoesexports.in hrd@forida.com
Location :	Owned

DIRECTORS

AS ON 27.09.2012

Name :

Mr. Rafeeque Ahmed Mecca

Designation :

Managing Director

Address :

10 Kothari Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Date of Birth/Age :

17.09.1947

Date of Appointment :

17.04.1998

DIN No.:

00013749

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	L85110TN1979PLC008035	APOLLO HOSPITALS ENTERPRISE LIMITED	Director	29/12/1979	29/12/1979	-	Active	NO
2	U18209TN1981PTC008805	FARIDA CLASSIC SHOES PRIVATE LIMITED	Managing director	09/06/1981	09/06/1981	-	Active	NO
3	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	19/04/1985	19/04/1985	-	Active	NO
4	U18209TN1987PTC014919	DELTA SHOES PRIVATE LIMITED	Managing director	29/09/1987	29/09/1987	-	Active	NO
5	U73100TN1992NPL022530	INDIAN INSTITUTE OF LEATHER PRODUCTS	Director	23/04/1992	23/04/1992	-	Active	NO
6	U19201TN1995PTC030691	BAER SHOES (INDIA) PRIVATE LIMITED	Director	28/03/1995	28/03/1995	25/06/2008	Active	NO
7	U19201TN1998PTC040339	INDIA SHOES EXPORTS PRIVATE LIMITED	Managing director	17/04/1998	17/04/1998	-	Active	NO
8	U19119TN1976PTC007207	FARIDA SHOES PRIVATE LIMITED	Managing director	01/01/2000	01/01/2000	-	Active	NO
9	U19201KA2001PTC029147	KENMORE SHOES PRIVATE LIMITED	Director	19/06/2001	19/06/2001	-	Active	NO
10	U45203TN2001NPL047485	AMBUR ECONOMIC DEVELOPMENT ORGANISATION	Director	23/07/2001	23/07/2001	-	Active	NO
11	U19129TN2004PTC053326	MADISON EXPORTS PRIVATE LIMITED	Director	26/05/2004	26/05/2004	-	Active	NO
12	U19201TN2004PTC053703	ASTON SHOES PRIVATE LIMITED	Managing director	12/07/2004	12/07/2004	-	Active	NO
13	U19112TN2005PTC055152	ARCOT SOLES PRIVATE LIMITED	Director	13/01/2005	13/01/2005	-	Active	NO
14	U74140TN2005PTC055310	FARIDA MANAGEMENT SERVICES PRIVATE LIMITED	Managing director	07/02/2005	07/02/2005	-	Strike off	NO
15	U74210TN2005PTC055311	FARIDA ENGINEERING SERVICES PRIVATE LIMITED	Managing director	07/02/2005	07/02/2005	-	Amalgamated	NO
16	U19116TN2005PTC055503	FARIDA XIEZHAN MOULDS PRIVATE LIMITED	Director	28/02/2005	28/02/2005	-	Amalgamated	NO
17	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	-	Active	NO
18	U19116TN2005PTC056220	AADIL ASHFAQUE AND CO.PRIVATE LIMITED	Director	10/05/2005	10/05/2005	-	Active	NO
19	U19112TN2006PTC058989	JAFRA INSOLES INDIA PRIVATE LIMITED	Director	24/02/2006	24/02/2006	-	Active	NO
20	U93090TN1996NPL035469	INDIAN LEATHER INDUSTRY FOUNDATION	Director	05/08/2006	05/08/2006	-	Active	NO
21	U19201TN2004PTC053247	TOP FONDI SOLES (INDIA) PRIVATE LIMITED	Director	21/08/2007	18/06/2007	-	Amalgamated	NO
22	U19119TN1989PLC016997	AMBUR TANNERY EFFLUENT TREATMENT COMPANY LIMITED	Director	20/06/2007	20/06/2007	-	Active	NO
23	U93000TN2008NPL068574	CHENNAI ENVIRONMENTAL MANAGEMENT COMPANY OF TANNERS	Director	15/07/2008	15/07/2008	-	Active	NO
24	U93090TN1984NPL010934	COUNCIL FOR LEATHER EXPORTS	Additional director	18/12/2010	18/12/2010	-	Active	NO
25	U63090TN2011PTC080447	WESTERN GATEWAY CARGO SERVICES PRIVATE LIMITED	Director	04/05/2011	04/05/2011	-	Active	NO
26	U74999TN1910NPL002343	SOUTHERN INDIA CHAMBER OF COMMERCE AND INDUSTRY	Director	07/09/2011	07/09/2011	-	Active	NO
27	U74999MH1957GOI010918	EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED	Director	13/03/2012	13/03/2012	-	Active	NO
28	U74999TN2012NPL088131	LEATHER SECTOR SKILL COUNCIL	Additional director	24/07/2013	24/07/2013	-	Active	NO

Name :

Mrs. Israr Ahmed Mecca

Designation :

Director

Address :

10 Kothari Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Date of Birth/Age :

25.01.1972

Date of Appointment :

17.04.1998

DIN No.:

0013799

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U19201TN1998PTC040339	INDIA SHOES EXPORTS PRIVATE LIMITED	Director	17/04/1998	17/04/1998	Active	NO
2	U65993TN1985PTC011781	FARIDA HOLDINGS PRIVATE LIMITED	Director	01/01/2000	01/01/2000	Active	NO
3	U18209TN1995PTC032647	EXETER SHOES PRIVATE LIMITED	Managing director	01/01/2000	01/01/2000	Amalgamated	NO
4	U19201TN2001PTC046498	CHENNAI FOOTWEAR PRIVATE LIMITED	Director	25/01/2001	25/01/2001	Amalgamated	NO
5	U19201TN2005PTC055925	FARIDA PRIME TANNERY PRIVATE LIMITED	Director	11/04/2005	11/04/2005	Active	NO
6	U19201TN2003PTC050177	STANFORD SHOES PRIVATE LIMITED	Director	13/01/2007	13/01/2007	Amalgamated	NO
7	U19200TN2008PTC067408	PAALAR SHOES PRIVATE LIMITED	Director	21/04/2008	21/04/2008	Active	NO
8	U74999TN2012NPL088131	LEATHER SECTOR SKILL COUNCIL	Additional director	24/07/2013	24/07/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Naiyer Hussein
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
M Rafeeque Ahmed Mecca	116281
Farida Holding Private Limited, India	6661199
Farida Classic Shoes Private Limited, India	1109613
Delta Shoe Private Limited, India	232947
Farida Shoes Private Limited, India	232560
Farida Leatherwear Private Limited, India	116280
Aston Shoes Private Limited, India	116280
Farida Primer Tannery Private Limited, India	116280
Kenmore Shoes Private Limited, India	116280
Total	8817720

AS ON 27.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	98.68
Directors or relatives of Directors	1.32
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Footwear.

Products :

Product Description	ITC Code
Shoes	64031910

Exports :

Products :

Finished Goods

Countries :

· UK

· USA

· Saudi Arabia

· Hong Kong

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500 (Approximately)

Bankers :

State Bank of India, Leather and International Branch, MVJ Towers, 177/1, Poonamallee High Road, Kilpauk, Chennai – 600010, Tamilnadu, India [Tel No.: 91-44-26494343]

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Term loans from banks [Hypothecation of Machineries, Stock of Raw Materials, Stocks in progress, Finished Goods, Document of title to goods consumables, stores, spares etc backed by export orders.]	491.446	473.036
Total	491.446	473.036

Banking Relations :	--
Auditors :
Name :	Akber Rifa and Company Chartered Accountants
Address :	C-8, Orchid, Manor Apartment, Diwan Rama Road, Purasawalkam, Chennai – 600084, Tamilnadu, India
PAN No.:	AAUFA5645D
Holding Company :	Farida Holdings Private Limited CIN No.: U65993TN1985PTC011781
Associates :	· Arcot Soles Private Limited CIN No.: U19112TN2005PTC055152 · Aston Shoes Private Limited CIN No.: U19201TN2004PTC053703 · Delta Shoes Private Limited CIN No.: U18209TN1987PTC014919 · Farida Classic Shoes Private Limited CIN No.: U18209TN1981PTC008805 · Farida Leatherware Private Limited CIN No.: U18209TN1992PTC022111 · Farida Prime Tannery Private Limited CIN No.: U19201TN2005PTC055925 · Farida Shoes Private Limited CIN No.: U19119TN1976PTC007207 · Jafra Insoles India Private Limited CIN No.: U19112TN2006PTC058989 · Kenmore Shoes Private Limited CIN No.: U19201KA2001PTC029147 · Mercury Shoes Private Limited CIN No.: U22121TN1994PTC029120 · Paalar Shoes Private Limited CIN No.: U19200TN2008PTC067408

CAPITAL STRUCTURE

AS ON 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
9200000	Equity Shares	Rs.10/- each	Rs.92.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8817720	Equity Shares	Rs.10/- each	Rs.88.177 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8817720	Equity Shares	Rs.10/- each	Rs.88.177 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	88.177	88.177
(b) Reserves & Surplus	163.698	151.894
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	251.875	240.071
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	5.120	3.603
(c) Other long term liabilities	60.586	3.214
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	65.706	6.817
(4) Current Liabilities
(a) Short term borrowings	491.446	473.036
(b) Trade payables	185.548	220.796
(c) Other current liabilities	31.854	19.364
(d) Short-term provisions	3.211	4.537
Total Current Liabilities (4)	712.059	717.733
TOTAL	1029.640	964.621
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	129.824	118.510
(ii) Intangible Assets	10.664	10.497
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	13.521	13.667
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.249	2.894
(e) Other Non-current assets	2.300	0.000
Total Non-Current Assets	157.558	145.568
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	550.116	436.112
(c) Trade receivables	201.429	135.895
(d) Cash and cash equivalents	18.400	16.181
(e) Short-term loans and advances	97.933	230.293
(f) Other current assets	4.204	0.572
Total Current Assets	872.082	819.053
TOTAL	1029.640	964.621

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		77.100
2] Share Application Money		0.000
3] Reserves & Surplus		111.659
4] (Accumulated Losses)		0.000
NETWORTH		188.759
LOAN FUNDS
1] Secured Loans		411.762
2] Unsecured Loans		3.214
TOTAL BORROWING		414.976
DEFERRED TAX LIABILITIES		3.320
TOTAL		607.055
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.741
Capital work-in-progress		0.000
INVESTMENT		0.161
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	373.640
	Sundry Debtors	66.079
	Cash & Bank Balances	19.596
	Other Current Assets	3.320
	Loans & Advances	172.279
Total Current Assets		634.914
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	81.868
	Other Current Liabilities	0.000
	Provisions	35.893
Total Current Liabilities		117.761
Net Current Assets		517.153
MISCELLANEOUS EXPENSES		0.000
TOTAL		607.055

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1137.614	849.926
		Other Income	118.507	111.054
		TOTAL	1256.121	960.980	1262.404
Less	EXPENSES
		TOTAL	1240.070	948.612	1248.409
	PROFIT BEFORE TAX		16.051	12.368	13.995
Less	TAX		4.247	3.802	2.040
	PROFIT AFTER TAX		11.804	8.566	11.955
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1099.578	816.036	1000.674
	IMPORTS
		Consumables stores			0.170
		Capital goods			4.452
	TOTAL IMPORTS		NA	NA	4.622
	Earnings Per Share (Rs.)		1.34	0.97	1.55

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.94	0.89	0.95
Net Profit Margin (PBT/Sales)	(%)	1.41	1.46	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.58	1.30	1.93
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.07
Debt Equity Ratio (Total Debt/Networth)		1.95	1.97	2.20
Current Ratio (Current Asset/Current Liability)		1.22	1.14	5.39

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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

PERFORMANCE

The company has made a Turnover of Rs.1256.121 Millions (including other income) when compare to the previous year turnover of Rs. 960.980. The Total expenditures is to Rs.1240.070 Millions when compare to the previous expenditure of Rs.948.612 Millions. During the current year the company has made profit before taxation of Rs. 16.051 Millions.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

Intangible Assets

· Goodwill

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. 61.41
UK Pound	1	Rs. 98.29
Euro	1	Rs. 84.12

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.