MIRA INFORM REPORT

Report Date :

05.06.2014

IDENTIFICATION DETAILS

Name :	DUNCANS TEA LIMITED
Registered Office :	Duncan House 31, Netaji Subhash Road, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.09.2012
Date of Incorporation :	24.09.1984
Com. Reg. No.:	21-031938
Capital Investment / Paid-up Capital :	Rs.56.500 Millions
CIN No.: [Company Identification No.]	U51909WB1984PLC031938
PAN No.: [Permanent Account No.]	AABCD0201A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in blending, packeting and selling of Packet Tea and trading of Coffee.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 440000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. As per ROC the date of balance sheet (i.e. financial filed) is shown as 30.09.2013 but the documents related to the financial for the year 2013 are not available from any sources. As per the available financials of September 2012, the reserves of the company seems low further the rating also takes into consideration the low profitability margins inherent in the nature of business, risk associated with volatility in tea prices and stiff competition. However, trade relations are reported to be fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term bank Facilities=BB
Rating Explanation	Moderate risk of default.
Date	15.10.2013

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 DENIED

Management Non Co-operative (91-33-22300962)

LOCATIONS

Registered Office :	Duncan House 31, Netaji Subhash Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-2200962
Fax No.:	91-33-2486021
Corporate Office :	97, Park Street, Block-C, 3^rd Floor, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-2264878 / 5934
Fax No.:	91-33-2457337
Regional Offices :	Located At : · New Delhi · Secunderabad · Kolkata · Ahmedabad

DIRECTORS

AS ON 31.12.2013

Name :

Mr. Shrivardhan Goenka

Designation :

Director

Address :

17D, Alipore Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

09.08.1975

Date of Appointment :

15.02.2012

DIN No.:

00030375

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	U63040WB1994PLC065288	ODYSSEY TRAVELS LIMITED	Director	27/09/1994	27/09/1994	-	Active	NO
2	L35201WB1931PLC006996	STONE INDIA LIMITED	Director	14/08/2013	25/11/1997	-	Active	NO
3	U70100MH1982PTC026710	KAVITA MARKETING PRIVATE LIMITED	Director	26/02/1998	26/02/1998	16/11/2013	Active	NO
4	U74999WB1992PLC055576	CONTINUOUS FORMS (CALCUTTA) LIMITED	Director	02/03/1998	02/03/1998	30/10/2012	Active	NO
5	U51909WB1984PLC031938	DUNCANS TEA LIMITED	Director	15/02/2012	07/06/2002	-	Active	NO
6	L99999MH1987PLC045372	UNIMERS INDIA LIMITED	Director	24/07/2002	24/07/2002	31/01/2009	Active	NO
7	L74140WB1982PLC034422	SHUBH SHANTI SERVICES LIMITED	Director	05/08/2002	05/08/2002	30/10/2012	Active	NO
8	L21011WB1936PLC008726	STAR PAPER MILLS LIMITED	Director	09/09/2002	09/09/2002	-	Active	NO
9	L17120MH1946PLC005227	NRC LIMITED	Director	01/10/2002	01/10/2002	01/06/2007	Active	NO
10	L26942AP1936PLC002379	ANDHRA CEMENTS LIMITED	Director	08/10/2010	27/07/2006	15/02/2011	Active	NO
11	U85110WB2000PTC092469	PALLMALL EDUSYSTEMS AND MEDICARE SERVICES PRIVATE LIMITED	Additional director	28/08/2007	28/08/2007	-	Amalgamated	NO
12	U25190WB1997PLC132965	SKYLARK RUBBER PRODUCTS LIMITED	Additional director	14/06/2008	14/06/2008	-	Amalgamated	NO
13	U85300WB1926GAP005585	INDIAN CHAMBER OF COMMERCE CALCUTTA	Director	26/07/2013	30/06/2008	-	Active	NO
14	L51909WB1943PLC011567	I S G TRADERS LIMITED	Director	30/09/2008	18/07/2008	-	Active	NO
15	U51909WB2008PTC129960	STONE INTERMODAL PRIVATE LIMITED	Director	15/10/2008	15/10/2008	-	Active	NO
16	U51101WB2009PTC132573	FRONTLINE TEA TRADECO PRIVATE LIMITED	Director	10/02/2009	10/02/2009	30/10/2012	Active	NO
17	U45201WB1997PLC086160	DUNCANS AGRO CHEMICALS LIMITED	Director	30/09/2010	30/11/2009	01/11/2013	Active	NO
18	U90000WB2011PTC162800	STONE BIO-TECH PRIVATE LIMITED	Director	20/05/2011	20/05/2011	-	Active	NO
19	L28113WB1994PLC063452	DUNCANS INDUSTRIES LIMITED	Director	20/12/2011	14/11/2011	-	Active	NO

Name :

Mr. Amitava Mondal

Designation :

Director

Address :

B-133, Survey Park, Santoshpur, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

15.12.1957

Date of Appointment :

20.12.2007

DIN No.:

00053124

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	L35201WB1931PLC006996	STONE INDIA LIMITED	Managing director	15/10/2003	15/10/2003	-	Active	NO
2	U25190WB1997PLC132965	SKYLARK RUBBER PRODUCTS LIMITED	Director	14/01/2004	14/01/2004	-	Amalgamated	NO
3	L26942AP1936PLC002379	ANDHRA CEMENTS LIMITED	Director	22/03/2007	27/07/2006	12/07/2011	Active	NO
4	U51909WB1984PLC031938	DUNCANS TEA LIMITED	Director	20/12/2007	17/12/2007	-	Active	NO
5	U51909WB2008PTC129960	STONE INTERMODAL PRIVATE LIMITED	Director	15/10/2008	15/10/2008	-	Active	NO
6	U90000WB2011PTC162800	STONE BIO-TECH PRIVATE LIMITED	Director	20/05/2011	20/05/2011	-	Active	NO
7	U90000WB2011NPL167279	GREEN SANITATION FOUNDATION	Director	07/09/2011	07/09/2011	-	Active	NO
8	U31104WB2011PTC168722	STONE TECHNOLOGY PRIVATE LIMITED	Director	19/10/2011	19/10/2011	-	Active	NO

Name :

Mr. Maneyapanda Chinnappa Appaiah

Designation :

Director

Address :

Flat No.31, 3^rd Floor, Jassal House, Auckland Square, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

15.12.1957

Date of Appointment :

01.08.2012

DIN No.:

06384318

MAJOR SHAREHOLDERS

AS ON 31.12.2013

Names of Shareholders	No. of Shares
Tekkatte Ramdar Shendy	1
Lal Raisinghani	1
Duncans Industries Limited	9100
Albert Trading Private Limited	271300
Sewand Investments Private Limited	110000
Duncan Brothers and Company Limited	398
ISG Traders Limited	173200
Julex Commercial Company Limited	1000
Total	565000

Equity Share Break up (Percentage of Total Equity)

AS ON 31.12.2013

Category	Percentage
Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in blending, packeting and selling of Packet Tea and trading of Coffee.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

UCO Bank, MID Corporate Branch, 2, India Exchange Place, Kolkata – 700001, West Bengal, India

Facilities :

SECURED LOANS	31.09.2012 Rs. In Millions	31.09.2011 Rs. In Millions
Long Term Borrowings
Term Loans from Others (Loan is secured by exclusive charge on certain intangible assets and personal guarantee)	30.276	30.276
Short Term Borrowings
Working Capital Loans from Banks (Cash Credit facilities from Bank is secured by first charge on current assets and second pari-passu charge on fixed assets of the company and personal guarantee.)	184.160	183.922
Total	214.436	214.198

Banking Relations :	--
Auditors :
Name :	Gandhi Arun and Company Chartered Accountants
Address :	51, Paddapukur Road, 3^rd Floor, Kolkata -700020, West Bengal, India
PAN No.:	AAEFG5051F
Associates :	· I S G Traders Limited · Shubh Shanti Services Limited

CAPITAL STRUCTURE

AS ON 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
699000	Equity Shares	Rs.100/- each	Rs.69.900 Millions
1000	Preference Shares	Rs.100/- each	Rs.0.100 Million
	Total		Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
565000	Equity Shares	Rs.100/- each	Rs.56.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.09.2012	31.09.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	56.500	56.500
(b) Reserves & Surplus	53.995	31.184
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	4.200
Total Shareholders’ Funds (1) + (2)	110.495	91.884
(3) Non-Current Liabilities
(a) long-term borrowings	30.276	30.276
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	3.020	1.423
Total Non-current Liabilities (3)	33.296	31.699
(4) Current Liabilities
(a) Short term borrowings	250.816	241.253
(b) Trade payables	151.661	148.466
(c) Other current liabilities	78.009	86.722
(d) Short-term provisions	7.195	4.928
Total Current Liabilities (4)	487.681	481.369
TOTAL	631.472	604.952
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15.930	10.591
(ii) Intangible Assets	3.377	3.377
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	16.356	13.305
(d) Long-term Loan and Advances	29.001	31.791
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	64.664	59.064
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	197.882	172.139
(c) Trade receivables	202.306	184.935
(d) Cash and cash equivalents	73.959	73.941
(e) Short-term loans and advances	90.058	112.855
(f) Other current assets	2.603	2.018
Total Current Assets	566.808	545.888
TOTAL	631.472	604.952

SOURCES OF FUNDS		31.09.2010
SHAREHOLDERS FUNDS
1] Share Capital		56.500
2] Share Application Money		4.200
3] Reserves & Surplus		41.061
4] (Accumulated Losses)		0.000
NETWORTH		101.761
LOAN FUNDS
1] Secured Loans		241.436
2] Unsecured Loans		41.135
TOTAL BORROWING		282.571
DEFERRED TAX LIABILITIES		0.000
TOTAL		384.332
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.492
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		8.308
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.164
	Sundry Debtors	264.573
	Cash & Bank Balances	71.321
	Other Current Assets	1.484
	Loans & Advances	107.302
Total Current Assets		575.844
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	219.811
	Provisions	19.183
Total Current Liabilities		238.994
Net Current Assets		336.850
MISCELLANEOUS EXPENSES		0.000
PROFIT / LOSS DEBIT BALANCE		27.682
TOTAL		384.332

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.09.2012	31.09.2011	31.09.2010
	SALES
		Income	1,829.440	1,485.002	1,459.467
		Other Income	1.628	1.535	3.074
		TOTAL (A)	1,831.068	1,486.537	1,462.541
Less	EXPENSES
		Cost of Materials Consumed	982.909	828.921
		Purchase of Stock-in-trade	6.582	7.663
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(30.064)	(29.351)
		Employee Benefits Expenses	94.292	80.583
		Other Expenses	700.480	539.122
		TOTAL (B)	1,754.199	1,426.938	1394.742
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.869	59.599	67.799
Less	FINANCIAL EXPENSES (D)		50.739	43.268	57.383
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.130	16.331	10.416
Less	DEPRECIATION/ AMORTISATION (F)		4.772	2.721	2.383
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		76.869	59.599	8.033
Less	TAX (H)		(1.453)	(4.195)	0.621
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		22.811	17.805	7.412
	Earnings Per Share (Rs.)		40.37	31.51	NA

KEY RATIOS

PARTICULARS		31.09.2012	31.09.2011	31.09.2010
PAT / Total Income	(%)	1.25	1.20	0.51
Net Profit Margin (PBT/Sales)	(%)	4.20	4.01	0.55
Return on Total Assets (PBT/Total Assets}	(%)	12.50	10.07	1.37
Return on Investment (ROI) (PBT/Networth)		0.70	0.65	0.08
Debt Equity Ratio (Total Debt /Networth)		2.54	2.96	2.78
Current Ratio (Current Asset/Current Liability)		1.16	1.13	2.41

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.09.2011	31.09.2012
	Rs. In Millions	Rs. In Millions
Share Capital	56.500	56.500
Reserves & Surplus	31.184	53.995
Net worth	87.684	110.495
long-term borrowings	30.276	30.276
Short term borrowings	241.253	250.816
Total borrowings	271.529	281.092
Debt/Equity ratio	3.097	2.544

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.09.2010	31.09.2011	31.09.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,459.467	1,485.002	1,829.440
		1.750	23.194

NET PROFIT MARGIN

Net Profit Margin	31.09.2010	31.09.2011	31.09.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,459.467	1,485.002	1,829.440
Profit	7.412	17.805	22.811
	0.51%	1.20%	1.25%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	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	No
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

OPERATIONS AND PERFORMANCE:

The gross sales of the company for the year ended 30th September, 2012 improved over the previous year around 23%. This increase was mainly due to expansion of distribution channels in the market and launching of new brands. However the company has been able to post significant improvement in Profit before tax for the year ended 30th September, 2012 as compared to previous year. This increase in profit before tax has been possible mainly because of your Company’s greater focus on exploring the niche market for its premium products, better cash flow management as well as very calculative purchase of tea in rising markets.

UNSECURED LOANS:

Particulars	31.09.2012 Rs. In Millions	31.09.2011 Rs. In Millions
Short Term Borrowings
Intercorporate Borrowings	26.700	25.000
Other Loans and Advances	39.956	32.331
Total	66.656	57.331

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10147577	24/02/2009	20,000,000.00	UCO BANK	MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE,, K OLKATA, WEST BENGAL - 700001, INDIA	A58204207
2	10124847	23/09/2008	10,000,000.00	UCO BANK	MID CORPORATE BRANCH (INDIA EXCHANGE), 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA	A47488689
3	80055227	15/05/2003	50,000,000.00	RABO INDIA FINANCE PRIVATE LIMITED	FORBES BUILDING , 2ND FLOOR, CHARANJI RAI MARG, MUMBAI, MAHARASHTRA - 400001, INDIA	-
4	80055226	10/07/2009 *	70,000,000.00	RABO INDIA FINANCE LIMITED	GF/A-03 B, GROUND FLOOR, BUILDING NO. 9, TOWER A, DLF CYBER CITY, PHASE-III, GURGAON, HARYANA - 122002, INDIA	A66820861
5	90250436	28/06/2011 *	180,000,000.00	UCO BANK	FLAFSHIP CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA	B16704553

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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.59.34
UK Pound	1	Rs.99.18
Euro	1	Rs.80.76

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.