MIRA INFORM REPORT

Report Date :

07.07.2014

IDENTIFICATION DETAILS

Name :	JINDAL TEXOFAB LIMITED
Registered Office :	Pushpawati, Building No. 2, 2^nd Floor, Chandanwadi, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.02.1991
Com. Reg. No.:	11-060530
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U17100MH1991PLC060530
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ09138D
PAN No.: [Permanent Account No.]	AAACJ0922F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Home Furnishing Items.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is a well-established company having moderate track record. The company possesses a weakening financial profile as evident in delays in debt servicing by the company in the recent time frame, owing to working capital intensive nature of its operations resulting in high gearing levels of the company. Management has reported a low profit margin which may affect the business profile during FY 14. However, Business is active. Payment terms are reported as slow. In view of long track record of operations and steady performance of the group companies, the subject can be considered for business dealings on a safe and secured 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Cash Credit Limit: “D”
Rating Explanation	Default or expected to be in default soon
Date	May, 2014

Rating Agency Name	ICRA
Rating	Term Loan: “D”
Rating Explanation	Default or expected to be in default soon
Date	May, 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 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Vikram Oza
Designation :	Director of Jindal Worldwide Limited
Contact No.:	91-9925029892
Date :	05.07.2014

LOCATIONS

Registered Office :	Pushpawati, Building No. 2, 2^nd Floor, Chandanwadi, Mumbai – 400002, Maharashtra, India
Tel. No. :	Not Available
Mobile No. :	91-9925029892 (Mr. Vikram Oza)
Fax No. :	Not Available
E-Mail :	csjindal@jindaltextiles.com vikram@jindalonline.com
Location :	Owned
Location :	Commercial
Factory :	Unit – 2, 723, GIDC, Phase 5, Vatva, GIDC, Ahmedabad – 382445, Gujarat, India
Tel. No.:	91-79-40269300

DIRECTORS

As on 27.09.2013

Name :

Mr. Gyansingh Prabhatsingh Sisodia

Designation :

Whole-time director

Address :

26, Mahalaxami Tenement, Isanpur, Ahmedabad – 380006, Gujarat, India

Date of Appointment :

01.04.2006

DIN No. :

01967212

Name :

Mr. Raghav Kailash Agrawal

Designation :

Director

Address :

12, Ashwamegh Bunglows, Satellite Road, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

20.04.1988

Date of Appointment :

28.09.2011

DIN No. :

02264149

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	U01135GJ1995PTC026330	RITU ORCHARDS PRIVATE LIMITED	Director	27/09/2008	12/07/2008	25/04/2011	Active	NO
2	U17110MH1979PLC056832	JINDAL SYNTHETICS LIMITED	Director	30/09/2008	18/07/2008	18/01/2011	Active	NO
3	U17119GJ2002PTC040740	JINDAL SR HOME FASHIONS PRIVATE LIMITED	Director	27/09/2008	19/07/2008	-	Active	NO
4	U17114GJ1985PTC007914	ROHAN INDUSTRIAL ENTERPRISES PRIVATE LIMITED	Director	18/09/2009	21/07/2008	25/04/2011	Active	NO
5	U17110GJ1999PTC035926	JINDAL (INDIA) POLYTEX PRIVATE LIMITED	Director	27/09/2008	22/07/2008	20/04/2011	Active	NO
6	U17100MH1996PTC100218	SHIV SHAKTI PETROFIL PRIVATE LIMITED	Director	30/09/2008	11/09/2008	20/04/2011	Active	NO
7	U99999MH1984PLC107293	AMITARA INDUSTRIES LIMITED	Director	30/09/2008	16/09/2008	27/08/2009	Active	NO
8	U65910MH1996PLC103510	TARACHAND IMPEX LIMITED	Director	30/09/2008	17/09/2008	25/08/2009	Active	NO
9	U52321GJ2008PTC055320	DEEPSHIKHA EXIM PRIVATE LIMITED	Director	24/10/2008	24/10/2008	26/02/2011	Active	NO
10	U55110GJ1996PTC031149	AMITARA RESORTS PRIVATE LIMITED	Director	28/09/2011	18/01/2011	-	Active	NO
11	U17100MH1991PLC060530	JINDAL TEXOFAB LIMITED	Director	28/09/2011	18/04/2011	-	Active	NO
12	U17110GJ2005PTC046229	GAYATRI WEAVERS PRIVATE LIMITED	Director	07/09/2013	24/09/2012	-	Active	NO
13	U17120GJ2013PTC074353	SHIKHA WEAVERS PRIVATE LIMITED	Director	05/04/2013	05/04/2013	-	Active	NO
14	U17290GJ2013PTC073198	AMITARA GREEN HI-TECH TEXTILES PARK PRIVATE LIMITED	Additional director	01/02/2014	01/02/2014	-	Active	NO
15	U18109GJ2014PTC079207	JINDAL DENIM (INDIA) PRIVATE LIMITED	Additional director	03/06/2014	03/06/2014	-	Active	NO

Name :

Mr. Anjay Kumar Agarwalla

Designation :

Director

Address :

71, Monalisa Apartment, Ambawadi, Ahmedabad – 380006, Gujarat, India

Date of Appointment :

30.09.1995

DIN No. :

02347943

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	U17100MH1991PLC060530	JINDAL TEXOFAB LIMITED	Director	30/09/1995	30/09/1995	-	Active	NO
2	U24100MH1996PLC101391	CAMBAY CHEM LIMITED	Director	05/03/2002	05/03/2002	-	Amalgamated	NO
3	U17119GJ1996PLC030472	AXCEL COMPUTECH TRAINING CENTRE LIMITED	Director	01/09/2004	01/09/2004	13/02/2009	Active	NO
4	U24114MH1992PTC065834	ROHAN DYES AND INTERMEDIATES LIMITED	Director	01/10/2007	01/10/2007	05/12/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Kailash Agrawal	100	0.01
Saroj Agrawal	100	0.01
Raghav K. Agrawal	999400	99.94
Gyansingh P. Sisodiya	100	0.01
Anjay B. Agrawal	100	0.01
Amrita Khetan	100	0.01
Satish Khetan	100	0.01
Total	1000000	100.00

As on 27.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	99.94
Other top fifty shareholders	0.06
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Home Furnishing Items.
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End users

No. of Employees :

200 (Approximately)

Bankers :

· Indian Bank, Ahmedabad Main Branch, 74, Swastik Society, Off. C. G. Road, Navrangpura, Ahmedabad - 380009, Gujarat, India

The Karur Vysya Bank Limited, Motilal Center Ashram Road, Ahemdabad - 380009, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Long Term Loans – From Banks From – Indian Bank
Term Loan Machinery (Hypothecation on Machinery) Phase 1	16.927	27.445
Term Loan Phase 2	15.768	3.553
(Hypothecation of new machinery proposed in project) (Current Maturity Rs. 6.600 Millions deducted Previous Year Rs. 7.698 Millions)
SHORT TERM BORROWINGS
Short Term Loans – From Banks Cash Credit Loan – Indian Bank (Hypothecation of Current assets)	42.162	40.532
Total	74.857	71.530

Banking Relations :	--
Auditors :
Name :	Mehra Anil and Associates Chartered Accountants
Address :	2-E, Suryarath, Panchwati, Ahmedabad – 380006, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AAPPM5021L
Parent Company :	Jindal Worldwide Limited
Group Companies :	· Jindal SR Homefashion Private Limited Texcellances Overseas

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 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	10.000	10.000	10.000
(b) Reserves & Surplus	33.938	33.094	32.900
(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)	43.938	43.094	42.900
(3) Non-Current Liabilities
(a) long-term borrowings	32.695	30.998	33.880
(b) Deferred tax liabilities (Net)	(2.789)	(3.928)	0.000
(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)	29.906	27.070	33.880
(4) Current Liabilities
(a) Short term borrowings	151.167	252.124	227.991
(b) Trade payables	25.479	27.271	26.830
(c) Other current liabilities	9.251	7.078	8.995
(d) Short-term provisions	0.442	0.782	0.315
Total Current Liabilities (4)	186.339	287.255	264.131
TOTAL	260.183	357.419	340.911
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	114.213	106.360	115.903
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	4.457
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	5.572	2.403	4.324
Total Non-Current Assets	119.785	108.763	124.684
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	26.292	45.020	35.748
(c) Trade receivables	31.077	39.937	40.807
(d) Cash and cash equivalents	6.381	6.642	9.270
(e) Short-term loans and advances	76.648	157.057	130.402
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	140.398	248.656	216.227
TOTAL	260.183	357.419	340.911

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	392.902	302.083	322.992
		Other Income	13.002	13.429	9.725
		TOTAL (A)	405.904	315.512	332.717
Less	EXPENSES
		Cost of Materials Consumed	270.753	197.455	201.493
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	1.102	(0.047)
		Employees benefits expense	13.782	10.643	9.284
		Other expenses	97.462	81.377	96.147
		TOTAL (B)	381.997	290.577	306.877
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.907	24.935	25.840
Less	FINANCIAL EXPENSES (D)		8.938	9.836	7.579
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.969	15.099	18.261
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.062	13.586	16.586
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2.907	1.513	1.675
Less	TAX (H)		1.580	0.835	0.523
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1.327	0.678	1.152
	Earnings Per Share (Rs.)		1.33	0.68	1.15

Particulars	31.03.2014
Sales Turnover (Approximately)	410.000

The above information has been parted by Mr.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.33	0.21	0.35
Net Profit Margin (PBT/Sales)	(%)	0.74	0.50	0.52
Return on Total Assets (PBT/Total Assets}	(%)	1.12	0.42	0.50
Return on Investment (ROI) (PBT/Networth)		0.07	0.04	0.04
Debt Equity Ratio (Total Debt/Networth)		4.18	6.57	6.10
Current Ratio (Current Asset/Current Liability)		0.75	0.87	0.82

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	10.000	10.000	10.000
Reserves & Surplus	32.900	33.094	33.938
Net worth	42.900	43.094	43.938
long-term borrowings	33.880	30.998	32.695
Short term borrowings	227.991	252.124	151.167
Total borrowings	261.871	283.122	183.862
Debt/Equity ratio	6.104	6.570	4.185

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	322.992	302.083	392.902
		(6.474)	30.064

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	322.992	302.083	392.902
Profit	1.152	0.678	1.327
	0.36%	0.22%	0.34%

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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
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

LITIGATION DETAILS

HIGH COURT OF BOMBAY
CASE DETAILS
BENCH:- BOMBAY
STAMP NO:- SJL/340/2012	FAILING DATE:- 10/09/2012	REG. NO.: SJ/340/2012	REG. DATE: 10/09/2012
Main Matter
LODGING NO: SSL/1685/2012		REG. NO.: SS/1694/2012
PETITIONER: SIDDHI CHEM PRIVATE LIMITED RESPONDENT: JINDAL TEXOFAB LIMITED PETN. ADV : DINESH P. SHAH (0) DISTRICT: MUMBAI
BENCH: SINGLE STATUS: TRANSFERRED CATEGORY: SUMMONSES FOR JUDGEMENT TRANSFER DATE: 03/10/2012 STAGE: TRANSFERRED TO CITY CIVIL COURT

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10441697	19/07/2013	10,000,000.00	INDIAN BANK	74, ETERNIA COMPLEX, SWASTIK SOCIETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	B81360059
2	10441419	14/06/2013	10,000,000.00	INDIAN BANK	74, ETERNIA COMPLEX, SWASTIK SOCIETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	B81358483
3	80022817	24/12/2013 *	335,500,000.00	INDIAN BANK	AHMEDABAD MAIN BRANCH, 74, SWASTIK SOCIETY, OFF. C. G. ROAD, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	B93324382

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
From Bodies Corporates	103.677	211.558
Credit Balance in Bank Current Accounts	5.328	0.034
Total	109.005	211.592

OPERATION

During the year, the Company’s turnover and profit was Rs. 392.902 Millions and Rs. 1.327 Millions respectively against Rs. 302.083 Millions and Rs. 0.678 Million respectively in the previous year.

FIXED ASSETS

· Plant and M/C

Land

Building

Electrical Installation

Air conditioner

Vehicles

Furniture and Fixtures

Office Equipment

Computer

Effulent Treat Plant

Laboratory Equipment

Screen Capital

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.59.79
UK Pound	1	Rs.102.66
Euro	1	Rs.81.32

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUB
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	2
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		17

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.