MIRA INFORM REPORT

Report Date :

26.11.2013

IDENTIFICATION DETAILS

Name :	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED (w.e.f.17.06.2008)
Formerly Known As :	TAPTI TRADING PRIVATE LIMITED
Registered Office :	4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.11.2007
Com. Reg. No.:	11-175711
Capital Investment / Paid-up Capital :	Rs. 769.680 Millions
CIN No.: [Company Identification No.]	U51900MH2007PTC175711
TAN No.: [Tax Deduction & Collection Account No.]	MUMM34463C
PAN No.: [Permanent Account No.]	AAFCM5990Dz
Legal Form :	Private Limited Liability Company
Line of Business :	Retailing of Garments and Accessories.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 9400000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Marks and Spencer PLC (UK) and Reliance Retail. It is an established company having satisfactory track record. Company has incurred loss from its operation in 2013. However, company networth appears to be strong and healthy. Liquidity position seems to be good. Company is operating on its owned funds. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 :	4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-67673800
Fax No.:	91-22-44771882
E-Mail :	indu.kardam@marks-and-spencer.in ravi.mediratta@marks-and-spencer.in tarun.tandon@marks-and-spencer.in
Website :	http://www.global.marksandspencer.com http://www.marks-and-spencer.in
Head Office :	Infinity Tower C, Ground Floor, Phase-3, Gurgaon - 122002, Haryana, India

DIRECTORS

AS ON 12.09.2013

Name :

Mr. Venugopal Gopinathan Nair

Designation :

Managing director

Address :

A-103, Purva Fairmont, 24^th and 25^th Cross, HSR Layout, 2^nd Sector, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

10.10.1967

Qualification :

M.BA (Marketing), B. Tech (Mechanical)

Experience :

20 Years

Date of Appointment :

24.07.2012

PAN No.:

ADWPN8580H

DIN No.:

00046163

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	U51909KA2005PTC050069	MARKS AND SPENCER (INDIA) PRIVATE LIMITED	Director	16/08/2005	16/08/2005	13/04/2012	Active	NO
2	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Managing director	24/07/2012	16/04/2012	-	Active	NO

Name :

Mr. Rakesh Kumar Gupta

Designation :

Whole-time director

Address :

902, 29 Seawoods Estate, NRI Complex, Nerul, Navi Mumbai – 400706, Maharashtra, India

Date of Birth/Age :

04.11.1963

Date of Appointment :

13.09.2013

DIN No.:

00031074

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	U85100MH1998PTC114935	RELIANCE HOSPITAL MANAGEMENT SERVICES PRIVATE LIMITED	Director	14/05/2005	14/05/2005	30/09/2009	Active	NO
2	U23201MH2007PTC168747	RELIANCE BIOFUELS PRIVATE LIMITED	Director	05/09/2008	11/06/2008	29/08/2009	Strike off	NO
3	U24239MH2007PTC168750	RELIANCE DIAGNOSTICS PRIVATE LIMITED	Director	05/09/2008	11/06/2008	29/08/2009	Strike off	NO
4	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Whole-time director	13/09/2013	15/05/2013	-	Active	NO

Name :

Mr. Thomas Owen Mackay

Designation :

Director

Address :

65, Atbara Road, Teddington, Middlesex, United Kingdom TW119PA

Date of Birth/Age :

30.03.1975

Date of Appointment :

13.09.2013

DIN No.:

03010885

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	U85110KA1998PTC023830	LOGICA PRIVATE LIMITED	Additional director	31/03/2010	31/03/2010	24/07/2012	Active	NO
2	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Director	13/09/2013	11/12/2012	-	Active	NO

Name :

Johannes Gijsbertus Heere

Designation :

Director

Address :

Apartment 512, 50 Bolsover Street, London, United Kingdom

Date of Birth/Age :

22.04.1970

Date of Appointment :

24.07.2012

DIN No.:

03606664

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	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Director	24/07/2012	06/09/2011	Active	NO

Name :

Nicholas Charles Bullock

Designation :

Director

Address :

14 High Road, Ickenham Uxcbridge London UB108LJ United Kingdom

Date of Birth/Age :

25.12.1959

Date of Appointment :

24.07.2012

DIN No.:

05124798

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	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Director	24/07/2012	30/11/2011	Active	NO

Name :

Mr. Martin Pascal Denis Jean

Designation :

Alternate director

Address :

House 3, Coral Villas 27 Horizon Drive, Chung Hom Kok, Hong Kong

Date of Birth/Age :

13.06.1960

Date of Appointment :

11.12.2012

DIN No.:

06415604

Name :

Mr. Sriram Srinivasan

Designation :

Director

Address :

354, 6^th Main, I Block, Koramangala, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

02.12.1955

Date of Appointment :

04.08.2011

DIN No.:

00473346

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	U51900MH2007PTC175637	RELIANCE-VISION EXPRESS PRIVATE LIMITED	Director	07/07/2010	28/04/2010	Active	NO
2	U51109MH2007PTC176276	RELIANCE-GRANDVISION INDIA SUPPLY PRIVATE LIMITED	Director	07/07/2010	28/04/2010	Active	NO
3	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Director	04/08/2011	08/12/2010	Active	NO
4	U51909MH2006PLC166165	RELIANCE TRENDS LIMITED	Director	04/08/2012	24/03/2012	Active	NO

Name :

Mr. Anurup Singh Pruthi

Designation :

Director

Address :

Flat No. 1202A, 1202B, 1202C, 12^th Floor, Odyssey II Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

24.09.1968

Date of Appointment :

13.09.2013

DIN No.:

06631657

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	U51900MH2007PTC175711	MARKS AND SPENCER RELIANCE INDIA PRIVATE LIMITED	Director	13/09/2013	25/07/2013	Active	NO
2	U51109MH2007PTC176276	RELIANCE-GRANDVISION INDIA SUPPLY PRIVATE LIMITED	Additional director	03/10/2013	03/10/2013	Active	NO
3	U51900MH2007PTC175637	RELIANCE-VISION EXPRESS PRIVATE LIMITED	Additional director	03/10/2013	03/10/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Ravi Mohan
Designation :	Secretary
Address :	C-1/355, C1 Block, Yamuna Vihar, Delhi – 110053, India
Date of Birth/Age :	27.04.1972
Date of Appointment :	15.09.2010
PAN No.:	AGTPM4230H
Name :	Mr. Jatin Luthra
Designation :	Finance Director
Date of Birth/Age :	49 Years
Qualification :	FCA FCS
Experience :	28 Years
PAN No.:	ABBPL4917H
Name :	Luke Banks
Designation :	Head of Buying and Merchandising
Date of Birth/Age :	32 Years
Qualification :	Heriot Watt University, Edinburgh; MSC Fashion Retail Marketing
Experience :	12 Years
Name :	James Munson
Designation :	Head Retail and Marketing
Date of Birth/Age :	34 Years
Experience :	14 Years
Name :	Shalini Naagar
Designation :	Head Human Resources
Date of Birth/Age :	40 Years
Qualification :	Post Graduate, MBA(HR)
Experience :	17 Years
Name :	Maneesh Gaur
Designation :	Head of Property and Projects
Date of Birth/Age :	43 Years
Qualification :	Post Graduate-Hotel Management
Experience :	18 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.09.2013

Names of Shareholders	No. of Shares
Reliance Retail Limited*, India	Class A - 1891302 Class C - 71646036
Marks and Spencer International Holdings Limited, United Kingdom	Class A - 39598 Class B - 731082
Marks and Spencer (Singapore) Investment Pte Limited, Singapore	Class A - 1929900 Class B - 36554100

* Pursuant to the Scheme of Arrangement and Amalgamation as sanctioned by the Bombay High Court, the shares have vested with the Company.

AS ON 12.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Retailing of Garments and Accessories.

Products/ Services :

ITC Code No.	Product Descriptions
62179090	Apparels
33049900	Beauty or Make up-others

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building No. 8, 7^th and 8th Floor, Tower - B, DLF Cyber City, Gurgaon - 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAEFP5579P
Joint venture :	· Reliance Retail Limited [U17120MH1998PLC114010] Marks and Spencer, Plc
Subsidiary Company :	Supreme Tradelinks Private Limited [U51311RJ2002PTC017552]
Joint Venturer :	Spencer India Private Limited
Fellow Subsidiary of Holding Company :	Marks and Spencer India Private Limited [U51909KA2005PTC050069]
Subsidiary of Holding Company :	Marks and Spencer Singapore Investments Pte Limited
Holding Company :	Marks and Spencer International Holdings Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares [Class A]	Rs. 10/- each	Rs. 50.000 Millions
48450000	Equity Shares [Class B]	Rs. 10/- each	Rs. 484.500 Millions
93100000	Equity Shares [Class C]	Rs. 5/- each	Rs. 465.500 Millions
	Total		Rs. 1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3859800	Equity Shares [Class A]	Rs. 10/- each	Rs. 38.598 Millions
37285182	Equity Shares [Class B]	Rs. 10/- each	Rs. 372.852 Millions
71646036	Equity Shares [Class C]	Rs. 5/- each	Rs. 358.230 Millions
	Total		Rs. 769.680 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	769.680	595.100	595.100
(b) Reserves & Surplus	1581.447	1175.380	1201.341
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	370.400	0.000
Total Shareholders’ Funds (1) + (2)	2351.127	2140.880	1796.441
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	317.782	203.040	120.353
(d) long-term provisions	12.282	13.850	7.503
Total Non-current Liabilities (3)	330.064	216.890	127.856
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	317.181	187.440	296.775
(c) Other current liabilities	178.138	76.590	58.383
(d) Short-term provisions	18.798	9.630	10.481
Total Current Liabilities (4)	514.117	273.660	365.639
TOTAL	3195.308	2631.430	2289.936
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	769.090	449.930	230.283
(ii) Intangible Assets	24.920	37.010	38.822
(iii) Capital work-in-progress	25.159	25.810	7.662
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	516.000	516.000	516.003
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	646.964	416.210	419.210
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1982.133	1444.960	1211.980
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1047.372	942.680	550.993
(c) Trade receivables	17.313	9.350	2.668
(d) Cash and cash equivalents	73.743	166.810	471.719
(e) Short-term loans and advances	74.747	67.630	52.576
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1213.175	1186.470	1077.956
TOTAL	3195.308	2631.430	2289.936

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3551.680	2768.670	1945.360
		Other Income	21.140	25.060	34.220
		TOTAL	3572.820	2793.730	1979.580
Less	EXPENSES
		TOTAL	3747.410	2819.690	2070.900
	PROFIT/ (LOSS) BEFORE TAX		(174.590)	(25.960)	(91.320)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(174.590)	(25.960)	(91.320)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(364.620)	(338.660)	(247.340)
	BALANCE CARRIED TO THE B/S		(539.210)	(364.620)	(338.660)
	IMPORTS
		Traded Goods	872.590	814.110	530.976
		Capital Goods –Tangible Assets	43.080	12.470	3.950
	TOTAL IMPORTS		915.670	826.580	534.926
	Earnings/ (Loss) Per Share (Rs.)		(2.55)	(0.44)	(1.53)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(4.89)	(0.93)	(4.61)
Net Profit Margin (PBT/Sales)	(%)	(4.92)	(0.94)	(4.69)
Return on Total Assets (PBT/Total Assets}	(%)	(6.58)	(1.24)	(5.17)
Return on Investment (ROI) (PBT/Networth)		(0.07)	(0.01)	(0.05)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.36	4.34	2.95

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	No
24]	Banking facility details	No
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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONAL REVIEW:

The Company experienced another year of continuous growth, fueled by ongoing innovation and investment in product, marketing and retail space.

The Company opened 6 new retail outlets and at year end was operating from 29 retail outlets. The Company also saw satisfactory improvement in like for like sales and the gross sales grew on a year to year basis by 28%.

The Company continues its march towards being a leading player in retailing of apparel and similar products and in making “Marks and Spencer’ a preferred brand in the Indian market.

FIXED ASSETS:

· Furniture and fixtures

Office equipment

Computer equipments

Other equipments

Leasehold improvements

Computer software

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. 62.58
UK Pound	1	Rs. 101.42
Euro	1	Rs. 84.70

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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

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