MIRA INFORM REPORT

Report Date :

31.12.2014

IDENTIFICATION DETAILS

Name :	N. C. JOHN AND SONS PRIVATE LIMITED
Registered Office :	W 16/329, Vazicherry, P.O.BOX 17, Alleppey – 688001, Kerala
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.08.1943
Com. Reg. No.:	09-000784
Capital Investment / Paid-up Capital :	Rs. 2.000 Millions
CIN No.: [Company Identification No.]	U17239KL1943PTC000784
TAN No.: [Tax Deduction & Collection Account No.]	TVDN00230G
PAN No.: [Permanent Account No.]	AABCN0264H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Coir Yarn, Coir goods, Rubber Mats, Jute Products, Handicrafts, Garments, Rubber Wood Mats.
No. of Employees :	Information declined by the 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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial positon of the company seems to be sound and healthy. Profitability of the company is decent. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based facilities = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	July 2014

Rating Agency Name	ICRA
Rating	Non Fund based facilities = A3+
Rating Explanation	Moderate degree of safety and high credit risk
Date	July 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 DECLINED BY

Name :	Mr. Pramod
Designation :	Finance Head
Contact No.:	91-477-2243796
Date :	29.12.2014

LOCATIONS

Registered Office / Factory:	W 16/329, Vazicherry, P.O.BOX 17, Alleppey – 688001, Kerala, India
Tel. No.:	91-477-2243796 / 98
Fax No.:	91-477-2242375 / 2242375
E-Mail :	ncj@vsnl.com enquiry@ncjohn.com
Website :	http://www.ncjohn.com

DIRECTORS

As on 28.09.2013

Name :

Mr. Alex Joseph

Designation :

Director

Address :

Neroth House, Power House Ward, Alleppey – 688007

Date of Birth/Age :

05.08.1962

Qualification :

B. Com., LLB

Date of Appointment :

29.01.1994

Din No.:

00361259

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	U17239KL1943PTC000784	N C JOHN AND SONS PRIVATE LIMITED	Director	29/01/1994	29/01/1994		Active	NO
2	U15143KL1949PTC000808	NEROTH OIL MILLS CO PRIVATE LTD	Director	27/09/2001	27/09/2001	-	Active	NO
3	U40108KL2013PTC034341	NCN VENTURES PRIVATE LIMITED	Nominee director	18/06/2013	18/06/2013	-	Active	NO
4	U01132KL1958PTC001767	NINANS PRIVATE LTD	Director	28/09/2013	28/09/2013	-	Active	NO

Name :

Mr. Chandy John Rajan

Designation :

Director

Address :

Neroth House, Jubilee Road, Alleppey – 688001

Date of Birth/Age :

16.05.1942

Date of Appointment :

29.01.1994

Din No.:

00361166

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	U63040KL1962PTC001982	JAI HIND TRAVELS PVT LTD	Managing director	27/01/1983	27/01/1983	14/01/2010	Active	NO
2	U01132KL1958PTC001767	NINANS PRIVATE LTD	Director	27/09/1991	27/09/1991	-	Active	NO
3	U17239KL1943PTC000784	N C JOHN AND SONS PRIVATE LIMITED	Director	29/01/1994	29/01/1994	-	Active	NO
4	U20221KL1994PLC008055	ECO WOOD LTD	Director	28/07/1994	28/07/1994	-	Active	NO
5	U17226KL2005PTC018026	COCO TUFTERS PRIVATE LIMITED	Director	21/03/2005	21/03/2005	-	Active	NO
6	U17119KL2005PTC018518	ALAPPUZHA NATURAL FIBRE INFRASTRUCTURE DEVELOPMENT COMPANY PRIVATE LIMITED	Managing director	30/03/2006	30/03/2006	-	Active	NO

Name :

Mr. John Neroth Chandy John

Designation :

Director

Address :

Neroth House, Jubilee Road, Alleppey – 688001

Date of Birth/Age :

21.09.1938

Date of Appointment :

29.01.1994

Din No.:

00363315

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	U01132KL1958PTC001767	NINANS PRIVATE LTD	Director	25/11/1968	25/11/1968	-	Active	NO
2	U17239KL1943PTC000784	N C JOHN AND SONS PRIVATE LIMITED	Director	29/01/1994	29/01/1994	-	Active	NO
3	U20221KL1994PLC008055	ECO WOOD LTD	Director	28/07/1994	28/07/1994	-	Active	NO
4	U91110KL1938NPL001413	COCHIN CHAMBER OF COMMERCE AND INDUSTRY	Director	26/07/2003	26/07/2003	30/11/2007	Active	NO
5	U17226KL2005PTC018026	COCO TUFTERS PRIVATE LIMITED	Director	21/03/2005	21/03/2005	-	Active	NO

Name :

Mr. N John Chacko

Designation :

Director

Address :

Neroth Gardens, Vattayal Ward, Alleppey – 688002

Date of Birth/Age :

02.05.1962

Qualification :

B. Sc., B.E., M. Ch. Engineer

Date of Appointment :

06.05.2005

Din No.:

00365727

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	U55102KL1991PTC006013	ALLEPPEY BACKWATER RESORTS PRIVATE LIMITED	Director	25/03/1991	25/03/1991	-	Active	NO
2	U63040KL1962PTC001982	JAI HIND TRAVELS PVT LTD	Director	12/10/1993	12/10/1993	14/01/2010	Active	NO
3	U01119KL1959PTC001829	NEROTH PLANTATIONS PVT LTD	Director	30/11/1993	30/11/1993	-	Active	NO
4	U20221KL1994PLC008055	ECO WOOD LTD	Director	28/07/1994	28/07/1994	-	Active	NO
5	U15143KL1949PTC000808	NEROTH OIL MILLS CO PRIVATE LTD	Director	19/09/2000	19/09/2000	-	Active	NO
6	U01132KL1958PTC001767	NINANS PRIVATE LTD	Director	06/05/2005	06/05/2005	-	Active	NO
7	U17239KL1943PTC000784	N C JOHN AND SONS PRIVATE LIMITED	Director	06/05/2005	06/05/2005	-	Active	NO
8	U91110KL1938NPL001413	COCHIN CHAMBER OF COMMERCE AND INDUSTRY	Director	30/11/2007	30/11/2007	28/10/2008	Active	NO
9	U40108KL2013PTC034341	NCN VENTURES PRIVATE LIMITED	Nominee director	18/06/2013	18/06/2013	-	Active	NO

Name :

Mr. John Chandy Neroth

Designation :

Director

Address :

Neroth House, Lejeneth Ward, Alleppey – 688001

Date of Birth/Age :

28.09.1945

Qualification :

B. E.

Date of Appointment :

29.01.1994

DIN No.:

00365698

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	U01132KL1958PTC001767	NINANS PRIVATE LTD	Director	27/09/1991	27/09/1991	28/09/2013	Active	NO
2	U17239KL1943PTC000784	N C JOHN AND SONS PRIVATE LIMITED	Director	29/01/1994	29/01/1994	-	Active	NO
3	U91200KL1939NPL000034	ASSOCIATED COTTAGE INDUSTRIES AND SHIPPERS UNION	Director	30/09/2003	30/09/2003	30/09/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

SHAREHOLDERS DETAILS FILES ATTACHED.

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	1.60
Directors or relatives of Directors	98.00
Other top fifty shareholders	0.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Coir Yarn, Coir goods, Rubber Mats, Jute Products, Handicrafts, Garments, Rubber Wood Mats

Products :

Product	Item Code
Coir Mats and Mattings	570220.00
Coir Yarn	530810.00
Sisal Mattings	530890.00

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
--	--	--

Remark:

Not Divulged

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
--	--	--

Remark:

Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• State Bank of Travancore, Vazhicherry Branch, Alleppey - 688011,Kerala, India
• Indian Overseas Bank, V S V Buildings, C C N B Road, Alleppey - 688011, Kerala, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans repayable on demand from banks	4.743	3.691
Short-term borrowings
Loans repayable on demand from banks	104.648	102.464
Deposits from shareholders	77.166	65.346
Other loans and advances, others	50.285	61.119
Total	236.842	232.620

Banking Relations :
Auditors :
Name :	Abdul Rahim and Company Chartered Accountant
Address :	Vellakkinar
PAN No.:	AAFFA2712E
Memberships :	--
Collaborators :	--
Subsidiary company:	ECO Wood Limited, India [U20221KL1994PLC008055]
Other related parties :	Ninans Private Limited, India [U01132KL1958PTC001767]

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Share	Rs.100/- Each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Share	Rs.100/- Each	Rs. 2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.000	2.000	2.000
(b) Reserves & Surplus	412.205	370.092	349.740
(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)	414.205	372.092	351.740
(3) Non-Current Liabilities
(a) long-term borrowings	4.743	3.691	31.356
(b) Deferred tax liabilities (Net)	13.320	16.336	13.379
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	18.063	20.027	44.735
(4) Current Liabilities
(a) Short term borrowings	232.099	228.929	161.234
(b) Trade payables	11.180	6.100	19.036
(c) Other current liabilities	12.098	4.329	3.003
(d) Short-term provisions	83.232	54.689	37.727
Total Current Liabilities (4)	338.609	294.047	221.000
TOTAL	770.877	686.166	617.475
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	232.750	241.874	258.317
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	22.928	7.185	1.135
(iv) Intangible assets under development	0.000	0.000	0.000
(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	0.000	0.000	9.218
(e) Other Non-current assets	7.710	7.726
Total Non-Current Assets	263.388	256.785	268.670
(2) Current assets
(a) Current investments	82.027	81.881	62.723
(b) Inventories	230.512	213.550	173.107
(c) Trade receivables	102.503	75.215	57.089
(d) Cash and cash equivalents	23.673	12.036	4.274
(e) Short-term loans and advances	20.518	15.424	28.728
(f) Other current assets	48.256	31.275	22.884
Total Current Assets	507.489	429.381	348.805
TOTAL	770.877	686.166	617.475

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014
SALES
Gross Turnover	1207.700
Other Income	NA
TOTAL	NA
EXPENSES	NA
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	111.180
DEPRECIATION/ AMORTISATION	30.413
PROFIT/ (LOSS) BEFORE TAX	80.767
TAX	34.915
PROFIT/ (LOSS) AFTER TAX	45.852
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	190.948
APPROPRIATIONS
Transfer to General Reserve	10.000
Interim Dividend	3.000
Final Dividend Proposed	6.000
Tax on Dividend	1.529
Deferred Tax Asset	(3.010)
Balance Carried to the B/S	221.062
Earnings / (Loss) Per Share (Rs.)	2292.60

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	952.615	792.132
		Other Income	35.157	32.087
		TOTAL	987.772	824.219
Less	EXPENSES
		TOTAL	952.986	814.459
	PROFIT BEFORE TAX		34.786	9.760
Less	TAX		19.718	5.297
	PROFIT AFTER TAX (G-H)		15.068	4.463
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		183.042	183.206
Less	APPROPRIATIONS
		Final Dividend Proposed	4.000	3.000
		Tax on Dividend	0.648	0.463
		Deferred Tax Liability	2.956	0943
	BALANCE CARRIED TO THE B/S		191.060	183.042
	Earnings Per Share (Rs.)		753.4	223.15

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	NA	1.58	0.56
Return on Total Assets (PBT/Total Assets}	(%)	10.80	5.12	1.58
Return on Investment (ROI) (PBT/Networth)		0.19	0.09	0.03
Debt Equity Ratio (Total Debt /Networth)		0.57	0.63	0.55
Current Ratio (Current Asset/Current Liability)		1.50	1.46	1.58

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2.000	2.000	2.000
Reserves & Surplus	349.740	370.092	412.205
Net worth	351.740	372.092	414.205
long-term borrowings	31.356	3.691	4.743
Short term borrowings	161.234	228.929	232.099
Total borrowings	192.590	232.620	236.842
Debt/Equity ratio	0.548	0.625	0.572

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	792.132	952.615	1207.700
		20.260	26.777

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	792.132	952.615	1207.700
Profit	4.463	15.068	45.852
	0.56%	1.58%	3.80%

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	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	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

REVIEW OF OPERATION

The Company achieved a gross turnover of 1207.700 Millions an increase of 31% over last year. The profit before tax grew by 132% from 34.786 Millions to 80.767 Millions in 2013-14. The increase in the net profit mainly attributed to the favourable rates in the foreign currency during the 3 quarters of the year, which the Company efficiently monitered by booking Forward Exchange Contracts.

The Garment Division at Tirupur, which has substantially contributed for Profit and Turnover increase has started out-sourcing Garments from Bangladesh during the year. We are also proceeding towards establishing a Joint venture Company in Bangladesh with local Partnership for both manufacturing procuring and exporting garments.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10350143	25/10/2013 *	125,500,000.00	STATE BANK OF TRAVANCORE	VAYALAR SUKUMARAN BUILDING, ALAPPUZHA, VAZHICHERR Y, KERALA - 688001, INDIA	B96513213
2	10108249	15/02/2014 *	5,000,000.00	INDIAN OVERSEAS BANK	ALLEPPEY BRANCH, CCNB ROAD, ALLEPPEY, KERALA - 68 8011, INDIA	B98672827
3	10108246	25/04/2008	499,200,000.00	INDIAN OVERSEAS BANK	C C N B ROAD, ALLEPPEY, KERALA - 688011, INDIA	A40245292
4	90022189	25/04/2008 *	1,000,000.00	INDIAN OVERSEAS BANK	V.S.V BUILDING, C C N B ROAD, ALLEPPEY, KERALA - 688011, INDIA	A40243420
5	80025137	01/11/1995	1,000,000.00	INDIAN OVERSEAS BANK	C.C.N.B ROAD, ALLEPPEY, KERALA - 688011, INDIA	-
6	90022105	15/02/2014 *	125,000,000.00	INDIAN OVERSEAS BANK	ALLEPPEY BRANCH, CCNB ROAD, ALLEPPEY, KERALA - 68 8011, INDIA	B98672470
7	80025138	25/04/2008 *	33,000,000.00	INDIAN OVERSEAS BANK	C C N B ROAD, ALLEPPEY, KERALA - 688011, INDIA	A40242968
8	90021696	04/02/1986 *	2,000,000.00	INDIAN OVRSEAS BANK	C.C.N.B. ROAD, ALLEPPEY, KERALA - 688011, INDIA	-
9	90021694	11/01/1986 *	13,200,000.00	INDIAN OVRSEAS BANK	C.C.N.B. ROAD, ALLEPPEY, KERALA - 688011, INDIA	-
10	90021687	24/09/1985	1,000,000.00	INDIAN OVRSEAS BANK	C.C.N.B. ROAD, ALLEPPEY, KERALA - 688011, INDIA	-

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments

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.63.75
UK Pound	1	Rs.98.88
Euro	1	Rs.77.32

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

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

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.