MIRA INFORM REPORT

Report Date :

07.08.2014

IDENTIFICATION DETAILS

Name :	NEVA GARMENTS LIMITED
Registered Office :	Village Hussainpura, Behind Malhotra Resort, G T Road (West), Ludhiana – 141005, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.09.1979
Com. Reg. No.:	16-004036
Capital Investment / Paid-up Capital :	Rs.20.669 Millions
CIN No.: [Company Identification No.]	U18101PB1979PLC004036
TIN No.:	03021005156
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of thermal wear and readymade garments.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BBB
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	25.07.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3+
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	25.07.2014

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. P. Sharma
Designation :	Not Divulged
Contact No.:	91-161-3044200
Date :	05.08.2014

LOCATIONS

Registered Office/ Factory :	Village Hussainpura, Behind Malhotra Resort, G T Road (West), Ludhiana – 141005, Punjab, India
Tel. No.:	91-161-3294567 / 3044200 (30 Lines)
Fax No.:	91-161-3044258
E-Mail :	acc@nevaindia.com nevacare@nevaindia.com Facebook@nevaindia.com
Website :	http://nevaindia.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Nirmal Kumar Jain

Designation :

Managing Director

Address :

B-328/1, Dr. Sham Singh Road, Civil Lines, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

01.09.1952

Date of Appointment :

01.03.2014

DIN No.:

00193770

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	U18101PB1979PLC004036	NEVA GARMENTS LIMITED	Managing director	01/03/2014	01/01/2002	-	Active	NO
2	U01122HP2003PTC025714	NEVA PLANTATIONS PRIVATE LIMITED	Director	15/01/2003	15/01/2003	-	Active	NO
3	U01119HP2008PTC030944	HERSHY FLORITECH PRIVATE LIMITED	Director	14/08/2008	14/08/2008	-	Active	NO

Name :

Mr. Vishal Jain

Designation :

Director

Address :

B-328/1, Dr. Sham Singh Road, Civil Lines, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

03.08.1975

Date of Appointment :

01.03.2014

DIN No.:

00193777

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	U18101PB1979PLC004036	NEVA GARMENTS LIMITED	Whole-time director	01/03/2014	08/05/2000	-	Active	NO

Name :

Mr. Komal Kumar Jain

Designation :

Director

Address :

B-328/1, Dr. Sham Singh Road, Civil Lines, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

09.09.1952

Date of Appointment :

10.06.1981

DIN No.:

00669804

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	U18101PB1979PLC004036	NEVA GARMENTS LIMITED	Director	10/06/1981	10/06/1981	-	Active	NO
2	U18101PB1990PLC010599	DUKE FASHIONS (INDIA) LIMITED	Managing director	01/09/2009	19/06/1993	-	Active	NO
3	U18109PB2001PTC024675	NEVA CLOTHING CO PRIVATE LIMITED	Director	03/10/2001	03/10/2001	-	Active	NO
4	U74999MH2007NPL168975	JAIN INTERNATIONAL TRADE ORGANISATION	Additional director	03/04/2007	03/04/2007	11/12/2010	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Nirmal Kumar Jain	40190
Rita Jain	235490
Shruti Jain	38970
Nirmal Kumar Jain (HUF)	19560
Harshita Jain	58870
Falit Jain	59130
Niti Jain	156830
Komal Kumar Jain	351900
Kanchan Jain	81000
Kuntal Jain	214500
Nitin Jain	470930
Aruna Goyal	176470
Vishal Jain	208850
Vishal Jain and Sons (HUF)	199510
Total	2312200

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of thermal wear and readymade garments.
Brand Name :	“NEVA”

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel Weat, Mumbai - 400013,

· Maharashtra, India

· Axis Bank, Sme Centre, 5-A, Iind Floor, Surya Tower, Mall Road, Ludhiana - 141005, Punjab, India

· State Bank of India, SHB Sunder Nagar, Ludhiana - 141010, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term loan from bank
State Bank of India	0.000	5.195
Axis Bank Limited	17.350	0.000
ICICI Bank Limited (Car Loan)	1.879	0.000
HDFC Bank Limited (Car Loan)	0.321	0.000
Other
BMW Financial Services Limited	0.039	0.000
Short Term Borrowings
Loans repayable on demand
Cash Credit from State Bank of India	134.632	209.672
Cash Credit form Axis Bank Limited	97.661	0.000
Total	251.882	214.867

Notes:

Long Term Borrowings

a. Details of term of repayment for the long term borrowing and security provided in respect of secured long term borrowing

Description	ROI (%)	2013-14	2014-15	2015-16	2016-17	Total
HDFC Bank (Quanto car loan)	10.25	0.151	0.168	0.153	0.000	0.472
Axis Bank Limited (building T/L) )	12.25	5.427	7.236	7.236	1.362	21.261
Axis bank limited (Machinery T/L)	12.25	0.612	0.816	0.700	0.000	2.128
ICICI Bank Limited (Motor Bike)	11.50	0.161	0.181	0.032	0.000	0.374
BMW Financial Services Limited	11.00	0.757	0.039	0.000	0.000	0.796
ICICI Bank Limited (Etios car loan)	10.55	0.196	0.218	0.019	0.000	0.796
ICICI Bank Limited (Indigo car loan)	11.25	0.145	0.163	0.029	0.000	0.337
ICICI Bank Limited (Beat car loan)	10.85	0.130	0.145	0.013	0.000	0.289
ICICI Bank Limited (Audi car loan)	10.15	0.986	1.080	0.000	0.000	2.065

b. Term loan are secured by first charges on the entire fixed assets (movable and immovable) of the company including land and building equitable mortgage of the bank and personally guaranteed by all the directors of the company.

c. ICICI Bank, HDFC Bank and BMW Financial Services Car term loans are secured by hypothecation of car financed and personally guaranteed all directors of the company.

Short Term Borrowings

Cash Credit from bank is secured by first charge on the current assets of company and second charge on the fixed assets of the company and personally guaranteed by all Directors of company.

Banking Relations :	--
Auditors :
Name :	Gupta Vigg and Company Chartered Accountants
Address :	K-101, Kismat Complex, G.T Road, Miller Ganj, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2532297 / 2535156
PAN No.:	AAEFG0353Q
Associates :	· Duke Fashion (India) Limited · Neva Clothing Private Limited · Neva Plantations Private Limited · Kna Exports · Dee Kay Knitwear

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions
15000	Preference Shares	Rs.100/- each	Rs.1.500 Millions
	Total		Rs.26.500 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
2312200	Equity Shares	Rs.10/- each	Rs.23.122 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
1961700	Equity Shares	Rs.10/- each	Rs.19.617 Millions
350500	Equity Shares of Rs.10/- each (Rs.3/- Paid up each)		Rs.1.052 Millions
	Total		Rs.20.669 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	20.669	20.318	19.617
(b) Reserves & Surplus	224.270	181.955	148.541
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	244.939	202.273	168.158
(3) Non-Current Liabilities
(a) long-term borrowings	61.811	30.579	34.728
(b) Deferred tax liabilities (Net)	12.984	13.240	11.874
(c) Other long term liabilities	34.665	27.730	17.471
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	109.460	71.549	64.073
(4) Current Liabilities
(a) Short term borrowings	232.293	209.672	165.002
(b) Trade payables	112.898	104.926	54.456
(c) Other current liabilities	60.115	62.221	58.074
(d) Short-term provisions	0.000	0.470	0.106
Total Current Liabilities (4)	405.306	377.289	277.638
TOTAL	759.705	651.111	509.869
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	131.326	126.495	127.026
(ii) Intangible Assets	1.006	0.562	0.742
(iii) Capital work-in-progress	23.439	0.385	0.385
(iv) Intangible assets under development	8.115	7.272	4.925
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.916	1.187	1.100
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	164.802	135.901	134.178
(2) Current assets
(a) Current investments	0.146	0.200	0.200
(b) Inventories	375.417	306.272	227.100
(c) Trade receivables	190.565	179.567	119.562
(d) Cash and cash equivalents	19.959	18.071	12.597
(e) Short-term loans and advances	6.697	10.154	14.554
(f) Other current assets	2.119	0.946	1.678
Total Current Assets	594.903	515.210	375.691
TOTAL	759.705	651.111	509.869

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		935.595	876.006	805.98
		Other Income		11.777	1.502	2.161
		TOTAL (A)		947.372	877.508	808.141
Less	EXPENSES
		Cost of Materials Consumed		327.127	378.159	297.843
		Purchase of Stock-in-trade		18.665	21.91	39.166
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(24.223)	(86.565)	(25.645)
		Employee Benefits Expenses		150.189	129.828	110.711
		Other Expenses		389.833	337.581	275.03
		Excise duty on stock		(16.246)	3.805	12.441
		TOTAL (B)		845.345	784.718	709.546
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			102.027	92.790	98.595
Less	FINANCIAL EXPENSES (D)			37.413	36.863	24.504
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			64.614	55.927	74.091
Less	DEPRECIATION/ AMORTISATION (F)			9.206	9.015	7.87
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			55.408	46.912	66.221
Less	TAX (H)			15.946	16.116	21.884
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			39.462	30.796	44.337
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			136.162	107.552	65.111
Less	APPROPRIATIONS
			Income tax earlier year	0.302	0.186	(0.104)
			Transfer to General Reserve	2.487	2.000	2.000
	BALANCE CARRIED TO THE B/S			172.835	136.162	107.552
	Earnings Per Share (Rs.)			19.27	15.40	226.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.17	3.51	5.49
Net Profit Margin (PBT/Sales)	(%)	5.92	5.36	8.22
Return on Total Assets (PBT/Total Assets}	(%)	7.61	7.29	13.12
Return on Investment (ROI) (PBT/Networth)		0.23	0.23	0.39
Debt Equity Ratio (Total Debt /Networth)		1.20	1.19	1.19
Current Ratio (Current Asset/Current Liability)		1.47	1.37	1.35

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	19.617	20.318	20.669
Reserves & Surplus	148.541	181.955	224.270
Net worth	168.158	202.273	244.939
long-term borrowings	34.728	30.579	61.811
Short term borrowings	165.002	209.672	232.293
Total borrowings	199.730	240.251	294.104
Debt/Equity ratio	1.188	1.188	1.201

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	805.980	876.006	935.595
		8.688	6.802

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	805.980	876.006	935.595
Profit	44.337	30.796	39.462
	5.50%	3.52%	4.22%

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	Yes
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	Yes

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From directors and shareholders	21.354	11.870
From others	20.868	13.514
Total	42.222	25.384

FINANCIAL HIGHLIGHTS AND PERFORMANCE

The Company achieved Gross Revenue Rs.935.595 Millions (Previous Year Rs.876.006 Millions) representing an Increase of approximately 6.80% over the corresponding period of previous year and Profit before tax of Rs.55.407 Millions (Prev. Year Rs.46.912 Millions). Net Profit after Tax Rs39.462 Millions (Prev. year Rs.30.796 Millions.)

CURRENT AND FUTURE OUTLOOK

The Outlook for the current year is encouraging. Company has opened various franchises well spread out in all major cities of India and has also started online trading during the year. The company's main product i.e. 'Neva Thermal Wear "is doing extremely well in the domestic market with its product Active wear, Ncva Modal, and Bermuda. The sales value and volume growth is robust and the outlook for the current year remains strong across traditional trade and modern retail sales channels.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10445168	30/07/2013	60,000,000.00	HDFC Bank Limited	HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	B83114785
2	10375250	27/06/2014 *	52,832,000.00	Axis Bank	Sme Centre, 5-A, Iind Floor, Surya Tower, Mall Road, Ludhiana, Punjab - 141005, India	C12958591
3	90182864	30/05/2014 *	410,000,000.00	State Bank of India	Industrial Finance Branch,, Golden Tower, Ludhiana, Punjab - 141003, India	C08873705

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.34
UK Pound	1	Rs.103.44
Euro	1	Rs.81.96

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		48

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.