MIRA INFORM REPORT

Report Date :

06.06.2014

IDENTIFICATION DETAILS

Name :	DEVANS MODERN BREWERIES LIMITED (w.e.f. 19.02.1969)
Formerly Known as :	KASHMIR FRUIT AND CHEMICAL INDUSTRIES LIMITED
Registered Office :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.02.1963
Com. Reg. No.:	07-000273
Capital Investment / Paid-up Capital :	Rs.41.358 Millions
CIN No.: [Company Identification No.]	U15511JK1963PLC000273
PAN No.: [Permanent Account No.]	AAACD5814C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of alcohol, beer, whiskey, vodka, wine, etc.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 1100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from its operations during 2013. However, 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 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	CRISIL
Rating	Long term rating = BB-
Rating Explanation	Have moderate risk of default.
Date	17.01.2014

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 DENIED

MANAGEMENT NON-COOPERATIVE

Contact No.: 91-191-2505365

LOCATIONS

Registered/ Head Office :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir, India
Tel. No.:	91-191-2505365
Fax No.:	91-191-2505254
E-Mail :	dmbjammu@devans.co.in
Website :	www.devans.co.in
Sales and Marketing Office :	S.C.O. 33, 3^rd Floor, Sector – 14, Huda Market, Gurgaon – 122002, Haryana, India
Jaipur Brewery :	SP3-6, RIICO Industrial Area, Keshwana, Rajasthan, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Prem Narain Dewan

Designation :

Managing director

Address :

9, Canal Road, Jammu – 180001, Jammu and Kashmir, India

Date of Birth/Age :

10.01.1956

Date of Appointment :

03.08.2009

DIN No.:

00781297

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Managing director	03/08/2009	01/09/1982	-	Active	NO
2	U51109JK1952PTC000075	DEVSON PRIVATE LIMITED	Director	06/09/1982	06/09/1982	-	Active	NO
3	U15531JK1999PTC001954	DEVANS BEVERAGE PRIVATE LIMITED	Director	16/09/1999	16/09/1999	-	Active	NO

Name :

Mr. Tilak Raj Gupta

Designation :

Director

Address :

37, Hari Nagar, Talab Tillo Road, Jammu – 180001, Jammu and Kashmir, India

Date of Birth/Age :

07.01.1942

Date of Appointment :

30.09.2013

DIN No.:

00781830

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Director	30/09/2013	09/09/1978	-	Active	NO

Name :

Mr. Kewal Rattan Gupta

Designation :

Director

Address :

26-B/B, Gandhi Nagar, Jammu – 180004, Jammu and Kashmir, India

Date of Birth/Age :

06.11.1927

Date of Appointment :

30.09.1991

DIN No.:

00781771

Name :

Mr. Rajesh Dewan

Designation :

Director

Address :

56-B/B, Gandhi Nagar, Jammu – 180004, Jammu and Kashmir, India

Date of Birth/Age :

25.09.1953

Date of Appointment :

30.09.2013

DIN No.:

00781478

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Director	30/09/2013	01/04/1990	-	Active	NO

Name :

Mr. Ved Bhasin

Designation :

Director

Address :

340-C/C, Green Belt Park, Gandhi Nagar, Jammu – 180004, Jammu and Kashmir, India

Date of Birth/Age :

01.05.1929

Date of Appointment :

25.04.1981

DIN No.:

00781732

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Director	25/04/1981	25/04/1981	-	Active	NO
2	U22122JK1987PTC000931	KASHMIR TIMES PRESS PRIVATE LIMITED	Director	22/01/1987	22/01/1987	-	Dormant	NO

KEY EXECUTIVES

Name :	Mr. Vijay Kumar Dewan
Designation :	Secretary
Address :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir, India
Date of Birth/Age :	13.02.1949
Date of Appointment :	09.04.1980
PAN No.:	ABDPD8272F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

NOTE : Shareholders Details Files Attached.

AS ON 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	7.07
Directors or relatives of Directors	76.78
Other top fifty shareholders	16.17
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of alcohol, beer, whiskey, vodka, wine, etc.
Products :	IMFL Spirits Beer

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity
IMFL/Desi Whisky	KL	5299
Beer	KL	103000
Spirit	KL	3000

Particulars	Unit	Actual Production
IMFL	LPL	3334182
Beer	BL	53865934
Spirit	LPL	1076430

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

The Jammu and Kashmir Bank Limited, Chand Nagar, Jammu – 180001, Jammu and Kashmir, India

Facilities :

Secured Loan	As on 31.03.2013 (Rs. in Millions)	As on 31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans banks secured	281.190	112.098
SHORT TERM BORROWINGS
Working capital loans banks secured	552.921	430.146
Total	834.111	542.244

Banking Relations :	--
Auditors :
Name :	A. K. Anand and Company Chartered Accountants
Address :	111/4, Trikuta Nagar, Jammu – 180012, Jammu and Kashmir, India
PAN.:	AIMPG2700K

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
990000	Equity Shares	Rs.100/- each	Rs.99.000 Millions
10000	Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
495597	Equity Shares	Rs.100/- each	Rs.49.560 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
990000	Equity Shares	Rs.100/- each	Rs.99.000 Millions
10000	Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
413575	Equity Shares	Rs.100/- each	Rs.41.358 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	41.358	34.862	19.000
(b) Reserves & Surplus	217.229	250.821	261.556
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	5.634	0.000	0.000
Total Shareholders’ Funds (1) + (2)	264.221	285.683	280.556
(3) Non-Current Liabilities
(a) long-term borrowings	281.190	112.098	165.410
(b) Deferred tax liabilities (Net)	26.498	29.682	42.351
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	3.597	2.037	1.088
Total Non-current Liabilities (3)	311.285	143.817	208.849
(4) Current Liabilities
(a) Short term borrowings	552.921	430.146	443.909
(b) Trade payables	190.152	166.322	149.972
(c) Other current liabilities	340.054	356.090	297.876
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	1,083.127	952.558	891.757
TOTAL	1,658.633	1,382.058	1,381.162
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	496.464	449.037	494.014
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	182.189	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.002	0.002	0.002
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.069	34.777	10.745
(e) Other Non-current assets	17.160	21.897	15.097
Total Non-Current Assets	708.884	505.713	519.858
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	298.019	266.970	239.594
(c) Trade receivables	471.830	507.382	493.016
(d) Cash and cash equivalents	37.274	57.347	61.019
(e) Short-term loans and advances	37.304	34.364	59.111
(f) Other current assets	105.322	10.282	8.564
Total Current Assets	949.749	876.345	861.304
TOTAL	1,658.633	1,382.058	1,381.162

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from operations	2,002.581	2,319.998	2,386.303
	Other Income	25.445	29.947	43.160
	TOTAL (A)	2,028.026	2,349.945	2,429.463
Less	EXPENSES
	Cost of Materials Consumed	1,012.875	1,128.203	1,179.199
	Extraordinary Items	0.000	0.000	14.886
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(37.826)	6.738	(12.863)
	Employees benefits expense	112.819	100.607	96.970
	Other expenses	852.960	1,026.873	1,006.890
	TOTAL (B)	1,940.828	2,262.421	2,285.082
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	87.198	87.524	144.381
Less	FINANCIAL EXPENSES (D)	77.513	76.707	77.834
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	9.685	10.817	66.547
Less/ Add	DEPRECIATION/ AMORTISATION (F)	59.452	65.944	74.940
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(49.767)	(55.127)	(8.393)
Less	TAX (I)	(3.183)	(12.669)	1.330
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(46.584)	(42.458)	(9.723)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Export	11.504	15.256	15.256
	TOTAL EARNINGS	11.504	15.256	15.256
	IMPORTS
	Raw Materials	9.482	15.751	17.930
	Capital Goods	0.630	2.524	0.000
	TOTAL IMPORTS	10.112	18.275	17.930
	Earnings / (Loss) Per Share (Rs.)	(113.00)	(145.00)	(51.00)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(2.30)	(1.81)	(0.40)
Net Profit Margin (PBT/Sales)	(%)	(2.49)	(2.38)	(0.35)
Return on Total Assets (PBT/Total Assets}	(%)	(3.37)	(3.99)	(0.61)
Return on Investment (ROI) (PBT/Networth)		(0.18)	(0.19)	(0.03)
Debt Equity Ratio (Total Debt /Networth)		3.15	1.89	2.17
Current Ratio (Current Asset/Current Liability)		0.88	0.92	0.97

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	19.000	34.862	41.358
Reserves & Surplus	261.556	250.821	217.229
Share Application money pending allotment	0.000	0.000	5.634
Net worth	280.556	285.683	264.221
long-term borrowings	165.410	112.098	281.190
Short term borrowings	443.909	430.146	552.921
Total borrowings	609.319	542.244	834.111
Debt/Equity ratio	2.172	1.898	3.157

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)
Revenue from operations	2,386.303	2,319.998	2,002.581
		(2.779)	(13.682)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	2,386.303	2,319.998	2,002.581
Profit After Tax	(9.723)	(42.458)	(46.584)
	(0.41%)	(1.83%)	(2.33%)

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	No
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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10460271	22/11/2013 *	160,000,000.00	JAMMU AND KASHMIR BANK LIMITED	CHAND NAGAR, SRINAGAR, JAMMU AND KASHMIR- 180001,  INDIA	B91473868
2	10418321	11/03/2013	50,000,000.00	THE JAMMU AND KASHMIR BANK LIMITED	B/U CHAND NAGAR, JAMMU, JAMMU AND KASHMIR - 180001  , INDIA	B72765449
3	10376959	03/09/2012	2,000,000.00	THE JAMMU AND KASHMIR BANK LIMITED	CHAND NAGAR, JAMMU, JAMMU AND KASHMIR - 180001, IN  DIA	B58291535
4	10376960	03/09/2012	305,000,000.00	THE JAMMU AND KASHMIR BANK LIMITED	CHAND NAGAR, JAMMU, JAMMU AND KASHMIR - 180001, IN  DIA	B58291642
5	10316955	24/10/2011	12,200,000.00	THE JAMMU AND KASHMIR BANK LIMITED	CHAND NAGAR JAMMU, JAMMU, JAMMU AND KASHMIR - 1800  01, INDIA	B25054461
6	10080479	27/09/2010 *	240,000,000.00	JAMMU AND KASHMIR BANK LTD	JAMMU AND KASHMIR BANK LTD, B/O CHAND NAGAR, JAMM  U, JAMMU AND KASHMIR - 180001, INDIA	A98658396
7	80039976	22/11/2013 *	520,000,000.00	JAMMU AND KASHMIR BANK LIMITED	CHAND NAGAR, JAMMU, JAMMU AND KASHMIR - 180001, IN  DIA	B91473058
8	90324154	05/08/1986 *	1,250,000.00	JAMMU & KASHMIR BANK LTD.	CHAND NAGAR, JAMMIU, JAMMU AND KASHMIR - 180001, I  NDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Laboratory Equipments
• Electronics Fittings
• Furniture and Fixtures
• Office Equipment
• 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.59.30
UK Pound	1	Rs.99.34
Euro	1	Rs.80.70

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.