MIRA INFORM REPORT

Report Date :

05.02.2014

IDENTIFICATION DETAILS

Name :	BEST TEXTILES LIMITED (w.e.f. 29.03.2007)
Formerly Known As :	SPANK MARKETING AND SERVICES PRIVATE LIMITED
Registered Office :	B-85, Okhla Industrial Area, Phase - II, New Delhi – 110 020
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.08.1996
Com. Reg. No.:	55-157651
Capital Investment / Paid-up Capital :	Rs.75.242 millions
CIN No.: [Company Identification No.]	U51390DL1996PLC157651
TAN No.: [Tax Deduction & Collection Account No.]	DELS13634F
PAN No.: [Permanent Account No.]	AABCS5770R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of textiles and value added home fashion products.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 875000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There seems growth in the turnover and profits of the company. However, profitability of the company remains to be low. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Bank Limits-Cash Credit: BB -
Rating Explanation	Have moderate risk of default.
Date	September, 2013

Rating Agency Name	ICRA
Rating	Short Term Fund Based Bank Limits: A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	September, 2013

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

Name :	Mr. Pradeep
Designation :	Accounts Department
Contact No.:	91-11-26387428

LOCATIONS

Registered Office/ Corporate Office :	B-85, Okhla Industrial Area, Phase - II, New Delhi – 110 020, India
Tel. No.:	91-11-26387421-28
Fax No.:	91-11-26387429
E-Mail :	customercare@besttextile.in sales@besttexttiles.in agrawalajayca@gmail.com
Website :	www.besttextile.in
Location :	Owned
Factory 1 :	C-13, Sector-58, Noida, Uttar Pradesh, India
Factory :	Also located at: · Panipat (Haryana) · Madurai (Tamilnadu) · Solapur (Maharashtra) · Bewar (Rajasthan)

DIRECTORS

AS ON 26.07.2013

Name :

Mr. Rakesh Mahajan

Designation :

Director

Address :

EG-24 , Inderpuri New Delhi, India

Date of Birth/ Age :

11.09.1966

Qualification :

CA

Date of Appointment :

25.11.2008

DIN No.:

00804251

PAN No.:

AAIPM9835H

E-Mail :

rakesh_mahajan@besttextiles.in

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	U33112DL2002PTC115269	SMS ORTHO PRIVATE LIMITED	Director	01/06/2002	01/06/2002	-	Dormant	NO
2	U51390DL1996PLC157651	BEST TEXTILES LIMITED	Director	25/11/2008	12/01/2006	-	Active	NO
3	U52190DL2008PLC172820	BEST RETAIL LIMITED	Director	17/01/2008	17/01/2008	31/05/2008	Active	NO
4	U15144DL2008PLC181626	BEST NATURAL RESOURCES LIMITED	Director	26/09/2012	26/09/2012	-	Active	NO

Name :

Mr. Sanjeev Dhawan

Designation :

Managing Director

Address :

111, Bakhtawar Singh Block, Asiad Village, Khelgaon, New Delhi – 110 049, India

Date of Birth/ Age :

13.01.1967

Qualification :

MBA

Experience :

18 Years

Date of Appointment :

05.08.1996

DIN No.:

00808354

PAN No.:

AFQPD0726H

E-Mail :

sanjeev_dhawan@besttextiles.in

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	U51390DL1996PLC157651	BEST TEXTILES LIMITED	Managing director	05/08/1996	05/08/1996	-	Active	NO
2	U33112DL2002PTC115269	SMS ORTHO PRIVATE LIMITED	Managing director	08/05/2002	08/05/2002	-	Dormant	NO
3	U52190DL2008PLC172820	BEST RETAIL LIMITED	Director	17/01/2008	17/01/2008	-	Active	NO
4	U17124MP2008PTC020601	CLC TEXTILE PARK PRIVATE LIMITED	Director	21/04/2008	21/04/2008	-	Active	NO
5	U15144DL2008PLC181626	BEST NATURAL RESOURCES LIMITED	Director	01/08/2008	01/08/2008	-	Active	NO
6	U70100MP2012NPL027877	CHHINDWARA INFRASTRUCTURE PRIVATE LIMITED	Director	02/03/2012	02/03/2012	-	Active	NO
7	U64200DL2012PLC233180	BEST AIR WAVES LIMITED	Managing director	21/03/2012	21/03/2012	-	Active	NO
8	U17122DL2012PLC243245	BEST GLOBAL LIMITED	Managing director	08/10/2012	08/10/2012	-	Active	NO
9	U51909DL2013PLC248736	BEST POLYCHEM LIMITED	Director	27/02/2013	27/02/2013	-	Active	NO

Name :

Mr. Seboti Protibha Lugun

Designation :

Director

Address :

House No.31, Ground Floor, Gautam Nagar, New Delhi, India

Date of Appointment :

14.09.2007

DIN No.:

01768816

PAN No.:

ACWPL2386A

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	U51390DL1996PLC157651	BEST TEXTILES LIMITED	Director	14/09/2007	14/09/2007	-	Active	NO
2	U52190DL2008PLC172820	BEST RETAIL LIMITED	Director	26/05/2008	26/05/2008	-	Active	NO
3	U15144DL2008PLC181626	BEST NATURAL RESOURCES LIMITED	Director	03/10/2011	03/10/2011	-	Active	NO
4	U64200DL2012PLC233180	BEST AIR WAVES LIMITED	Director	21/03/2012	21/03/2012	-	Active	NO
5	U17122DL2012PLC243245	BEST GLOBAL LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO
6	U51909DL2013PLC248736	BEST POLYCHEM LIMITED	Director	27/02/2013	27/02/2013	-	Active	NO

Name :

Mr. Ashok Rawat

Designation :

Director

Address :

A-37, Raj Nagar-II, Palam Colony, New Delhi – 110 045, India

Date of Birth/ Age :

28.04.1971

Qualification :

Graduate

Date of Appointment :

14.09.2007

DIN No.:

01783108

PAN No.:

ADSPR7822E

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	U51390DL1996PLC157651	BEST TEXTILES LIMITED	Director	14/09/2007	14/09/2007	-	Active	NO
2	U52190DL2008PLC172820	BEST RETAIL LIMITED	Director	26/05/2008	26/05/2008	-	Active	NO
3	U15144DL2008PLC181626	BEST NATURAL RESOURCES LIMITED	Director	01/08/2008	01/08/2008	-	Active	NO
4	U64200DL2012PLC233180	BEST AIR WAVES LIMITED	Director	21/03/2012	21/03/2012	-	Active	NO
5	U17122DL2012PLC243245	BEST GLOBAL LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO
6	U51909DL2013PLC248736	BEST POLYCHEM LIMITED	Director	27/02/2013	27/02/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vivek Choudhary
Designation :	Company Secretary
Address :	RZ-101, Street No.4, East Sagar Pur, Delhi – 110 046, India
Date of Appointment :	25.08.2012
PAN No.:	ALKPC4425A
Name :	Mr. Pradeep
Designation :	Accounts Department
Name :	Mr. Shekhar Nigam
Designation :	Cotton / Polyester Yarn Division
E-Mail :	shekharnigam@besttextiles.in
Name :	Mr. Ashok Kundu
Designation :	Fabrics and Cotton Division
E-Mail :	ashok_kundu@besttextiles.in
Name :	Mr. Rajiv Jain
Designation :	Agro Commodities Division
E-Mail :	rajiv_jain@besttextiles.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.07.2013

Note:

Shareholding details file attached.

AS ON 26.07.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies Corporate	11.30
Directors or relatives of directors	88.70
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of textiles and value added home fashion products.
Products :	Blankets/Home Furnishing Items

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

· Oriental Bank of Commerce, Overseas Branch, M-33, Greater Kailash, Part II, New Delhi – 110 048, India (Tel. No.:91-11-29215100)

· HDFC Bank Limited

· Indian Bank, Hyderabad

· Indian Overseas Bank

· Punjab National Bank

· State Bank of India – Mumbai

· State Bank of Saurashtra

Facilities :

Secured Loans :	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks (Hypothecation of stock, book debts and also first charge on all fixed assets of the company)	2.353	16.093
SHORT-TERM BORROWINGS
Loans repayable on demand from banks (Hypothecation of stock, book debts and also first charge on all fixed assets of the company)	207.439	157.838
Total	209.792	173.931

Banking Relations :	--
Auditors :
Name :	Ajay R. Agarwal and Associates Chartered Accountants
Address :	97, Vidhi Apartment, Plot No.116, I.P. Extension, Pataparganj, New Delhi – 110 092, India
Income-tax PAN of auditor or auditor's firm :	ACBPA0068K
Subsidiaries :	Best Retail Limited, India (CIN No.: U52190DL2008PLC172820)

CAPITAL STRUCTURE

AS ON 26.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7524247	Equity Shares	Rs.10/- each	Rs.75.242 millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7524247	Equity Shares	Rs.10/- each	Rs.75.242 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	75.242	44.860	44.860
(b) Reserves & Surplus	103.378	52.142	40.715
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	40.055	15.233	0.000
Total Shareholders’ Funds (1) + (2)	218.675	112.235	85.575
(3) Non-Current Liabilities
(a) Long-term borrowings	2.353	16.093	21.192
(b) Deferred tax liabilities (Net)	0.025	0.046	0.260
(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)	2.378	16.139	21.452
(4) Current Liabilities
(a) Short term borrowings	207.439	157.838	142.323
(b) Trade payables	81.015	53.396	36.308
(c) Other current liabilities	45.527	61.921	72.313
(d) Short-term provisions	24.992	5.848	3.686
Total Current Liabilities (4)	358.973	279.003	254.630
TOTAL	580.026	407.377	361.657
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	49.100	49.824	45.908
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	14.670	14.630	10.130
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.257	0.227	0.121
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	64.027	64.681	56.159
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	260.082	182.647	170.174
(c) Trade receivables	142.834	120.886	111.184
(d) Cash and cash equivalents	25.249	5.342	3.880
(e) Short-term loans and advances	83.943	33.663	19.621
(f) Other current assets	3.891	0.158	0.639
Total Current Assets	515.999	342.696	305.498
TOTAL	580.026	407.377	361.657

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	5045.603	1537.982	939.516
		Other Income	6.054	3.677	0.163
		TOTAL (A)	5051.657	1541.659	939.679
Less	EXPENSES
		Purchases of stock-in-trade	4594.930	1368.400	863.282
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(77.435)	(12.473)	(48.630)
		Employee benefit expense	116.052	61.604	32.527
		Other expenses	204.317	69.376	57.302
		TOTAL (B)	4837.864	1486.907	904.481
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		213.793	54.752	35.198
Less	FINANCIAL EXPENSES (D)		133.238	33.932	21.470
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		80.555	20.820	13.728
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.411	2.802	2.930
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		77.144	18.018	10.798
Less	TAX (H)		25.907	6.592	3.993
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		51.237	11.426	6.805
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		32.242	20.816	14.011
	BALANCE CARRIED TO THE B/S		83.479	32.242	20.816
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	NA	496.526
	TOTAL EARNINGS		NA	NA	496.526
	Earnings/ (Loss) Per Share (Rs.)		6.93	2.55	1.61

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.01	0.74	0.72
Net Profit Margin (PBT/Sales)	(%)	1.53	1.17	1.15
Return on Total Assets (PBT/Total Assets}	(%)	13.65	4.59	3.07
Return on Investment (ROI) (PBT/Networth)		0.35	0.16	0.13
Debt Equity Ratio (Total Debt/Networth)		0.96	1.55	1.91
Current Ratio (Current Asset/Current Liability)		1.44	1.23	1.20

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

Note:

The registered office of the company has been shifted from 15, First Floor, National Park, Behind Vikram Hotel, Lajpat Nagar IV, New Delhi – 110 024 to the present address w.e.f. 10.12.2008.

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10417298	28/02/2013	20,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART - 2, NEW DELHI, DELHI - 110048, INDIA	B72383730
2	10295469	30/06/2011	10,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART II, NEW DELHI, DELHI - 110048, INDIA	B16293730
3	10178338	05/09/2009	8,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH-II (MARKET), NEW DELHI, DELHI - 110048, INDIA	A70891007
4	10067849	13/08/2007	1,000,000.00	ORIENTAL BANK OF COMMERCE	M-33 OVERSEAS BRANCH, GREATER KAILASH PART-II, NEW DELHI, DELHI - 110049, INDIA	A23452089
5	10058975	05/09/2013 *	2,634,800,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH PART-2, NEW DELHI, DELHI - 110048, INDIA	B84569821
6	80016037	03/10/2006 *	9,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, M-33 GREATER KAILASH - II, NEW DELHI, DELHI - 110049, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Air Conditioner

· Building

· Carpets

· Computer

· Cooler

· Vacuum Cleaner

· Vending Machine

· Weighing Scale

· Plant and Machinery

· Dryer Machine

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.62.68
UK Pound	1	Rs.101.97
Euro	1	Rs.84.78

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.