MIRA INFORM REPORT

Report Date :

24.06.2014

IDENTIFICATION DETAILS

Name :	JAYDEEP COTTON FIBRES PRIVATE LIMITED
Registered Office :	C-805, The Imperial Heights, Opposite Big Bazar, 150 Feet Ring Road, Rajkot – 360005, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.09.1997
Com. Reg. No.:	04-032921
Capital Investment / Paid-up Capital :	Rs. 245.000 Millions
CIN No.: [Company Identification No.]	U17119GJ1997PTC032921
PAN No.: [Permanent Account No.]	AAACJ5374P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems some dip in the turnover however, growth in the profitability of the company. General financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered normal for business dealings at usual 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

NEWS

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 = BB+
Rating Explanation	Moderate risk of default
Date	March 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 BY

Name :	Mr. Bharat
Designation :	Accountant
Contact No.:	91-281-2580025
Date :	21.06.2014

LOCATIONS

Registered Office :	C-805, The Imperial Heights, Opposite Big Bazar, 150 Feet Ring Road, Rajkot – 360005, Gujarat, India
Tel. No.:	91-281-2580025
Fax No.:	91-281-2580090
E-Mail :	hjamnadas1.roc@gmail.com info@jaydeepcotton.com jaydeep_cotton@hotmail.com hjamnadas1@gmail.com csroc.mail@hjamnadas.com
Website :	http://www.jaydeepcotton.com
Factory :	8-B, National Highway, Near 66, K V Sub Station, Shpar, Gujarat, India
Tel. No.:	91-2827-252177
Fax No.:	91-2827-253490

DIRECTORS

AS ON: 30.09.2013

Name :

Mr. Arvindkumar Parsotambhai Patel

Designation :

Director

Address :

801, Megh Malhar Apartment, Shree Colony, Opposite Mahatma Gandhi School, City – Rajkot - 360001, Gujarat, India

Date of Birth/Age :

26.09.1966

Qualification :

HSC

Date of Appointment :

01.09.1997

PAN No.:

AGWPP3458M

DIN No.:

00554370

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	U17119GJ1997PTC032921	JAYDEEP COTTON FIBRES PRIVATE LIMITED	Director	01/09/1997	01/09/1997	-	Active	NO
2	U20210GJ2005PTC045667	ADVANCE LAMINATES PRIVATE LIMITED	Director	21/03/2005	21/03/2005	08/10/2007	Active	NO
3	U26942GJ2001PTC039414	MAJOR CEMENT PRIVATE LIMITED	Director	01/02/2012	01/02/2012	-	Active	NO
4	U67120GJ2013PLC074723	PAN CAPITAL SERVICES LIMITED	Director	26/04/2013	26/04/2013	02/06/2014	Active	NO
5	U51909GJ2013PTC074984	PAN EMPIRE INDIA PRIVATE LIMITED	Director	09/05/2013	09/05/2013	-	Active	NO
6	U74992GJ2013PLC076230	PAN MULTI COMMODITY SERVICES LIMITED	Director	29/07/2013	29/07/2013	-	Active	NO

Name :

Mr. Alpeshbhai Vallabhbhai Patel

Designation :

Director

Address :

Flat No.702, Piramid Tower, Bansi Park, Amin Road, Rajkot – 360001, Gujarat, India

Date of Birth/Age :

05.06.1976

Qualification :

HSC

Date of Appointment :

01.09.2007

PAN No.:

AFGPP9978M

DIN No.:

01356260

Name :

Mr. Vallabhbhai Valjibhai Pan

Designation :

Director

Address :

Flat No.703, Piramid Tower, Bansi Park, Amin Road, Rajkot – 360001, Gujarat, India

Date of Appointment :

17.10.1997

PAN No.:

ACXPP9371N

DIN No.:

00554649

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 30.09.2013

Names of Shareholders	No. of Shares (Equity)
Mansukh Parsottambhai Patel (As Karta of Mansukh P. Patel HUF)	2081620
Arvind Parsottambhai Patel (As Karta of Arvind P. Patel HUF)	1550800
Parsottambhai Valjibhai Patel	4200000
Sanjay Vallabhbhai Patel	1800000
Alpeshbhai Vallabhbhai Patel	2600000
Vallabhbhai Valjibhai Pan	1600000
Mansukhbhai Parsottambhai Patel	2318380
Arvindkumar Parsotambhai Patel	3049200
Shobhanaben Mansukhbhai Patel	800000
Total	20000000
Names of Shareholders	No. of Shares (Preference)
Mansukh Parsottambhai Patel (As Karta of Mansukh P. Patel HUF)	1000000
Arvind Parsottambhai Patel (As Karta of Arvind P. Patel HUF)	800000
Sanjay Vallabhbhai Patel	350000
Alpeshbhai Vallabhbhai Patel	400000
Vallabhbhai Valjibhai Pan	600000
Ilaben Arvindkumar Patel	750000
Chirag Mansukhbhai Patel	600000
Total	4500000

Equity Share Break up (Percentage of Total Equity)

AS ON: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton.

Products :

Products Description	Item Code no.
Cotton, Not Carded or Combed	5201
Cotton Bales, Cotton Seeds, Cator Oils	52030000

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India, Commercial Branch, "Noble House", Near Jalaram Petrol Pump, Kalawad Road, Rajkot – 360001, Gujarat, India

· The Lakshmi Vilas Bank Limited, 1^st Floor, Ronak Complex, Gondal Road, Rajkot – 360002, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2013 (Rs. In Millions)	As on 31.03.2012 (Rs. In Millions)
LONG TERM BORROWING
Working capital loans from banks [Hypothecation of Stock]	0.235	1.568
SHORT TERM BORROWING
Loans repayable on demand from banks [Hypothecation of Stock]	1282.090	498.559
Total	1282.325	500.127

Banking Relations :	--
Auditors :
Name :	H. Jamnadas and Company Chartered Accountants
Address :	50 – Janta, Society, Opposite LIC Building, Mahila College Chowk, Tagore Road, Rajkot – 360001, India
PAN No.:	AABFH2320P
Wholly owned Subsidiary :	PAN Valley Resources Limited (Hong Kong)
Associate :	HI - Bond Cement (India) Private Limited [U26940GJ2007PTC050846] PAN Agri Export

CAPITAL STRUCTURE

AS ON: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
4500000	Preference Shares	Rs.10/- each	Rs. 45.000 Millions
	Total		Rs.245.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
4500000	Preference Shares	Rs.10/- each	Rs.45.000 Millions
	Total		Rs.245.000 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	245.000	245.000	200.000
(b) Reserves & Surplus	254.081	191.107	132.908
(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)	499.081	436.107	332.908
(3) Non-Current Liabilities
(a) long-term borrowings	29.052	16.981	76.686
(b) Deferred tax liabilities (Net)	0.263	0.406	0.743
(c) Other long term liabilities	110.349	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	139.664	17.387	77.429
(4) Current Liabilities
(a) Short term borrowings	1282.090	498.559	1119.493
(b) Trade payables	138.684	162.260	236.282
(c) Other current liabilities	43.323	76.729	60.551
(d) Short-term provisions	35.341	58.082	133.067
Total Current Liabilities (4)	1499.438	795.630	1549.393
TOTAL	2138.183	1249.124	1959.730
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	171.225	37.004	36.304
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	11.665	5.870	4.210
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.080	1.000	1.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	15.930	3.744	0.180
(e) Other Non-current assets	7.449	5.505	3.947
Total Non-Current Assets	206.349	53.123	45.641
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	726.227	586.940	1102.888
(c) Trade receivables	904.367	476.087	639.169
(d) Cash and cash equivalents	52.741	49.818	63.981
(e) Short-term loans and advances	121.779	0.000	0.000
(f) Other current assets	126.720	83.156	108.051
Total Current Assets	1931.834	1196.001	1914.089
TOTAL	2138.183	1249.124	1959.730

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	7948.008	9046.036	7011.614
		Other Income
		TOTAL (A)	7948.008	9046.036	7011.614
Less	EXPENSES
		Office Expenses	7746.288	8821.117	6691.304
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	7746.288	8821.117	6691.304
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		201.720	224.919	320.310
Less	FINANCIAL EXPENSES (D)		98.773	129.791	58.788
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		102.947	95.128	261.522
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.040	5.802	4.547
	PROFIT BEFORE TAX (E-F) (G)		96.907	89.326	256.975
Less	TAX (H)		33.933	31.127	90.317
	PROFIT AFTER TAX (G-H) (I)		62.974	58.199	166.658
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4626.777	7449.891	5561.621
	TOTAL EARNINGS		4626.777	7449.891	5561.621
	Earnings Per Share (Rs.)		0.26	2.91	8.33

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.79	0.64	2.38
Return on Total Assets (PBT/Total Assets}	(%)	4.55	7.19	13.15
Return on Investment (ROI) (PBT/Networth)		0.19	0.20	0.77
Debt Equity Ratio (Total Debt/Networth)		2.62	1.18	3.59
Current Ratio (Current Asset/Current Liability)		1.28	1.50	1.23

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	200.000	245.000	245.000
Reserves & Surplus	132.908	191.107	254.081
Net worth	332.908	436.107	499.081
long-term borrowings	76.686	16.981	29.052
Short term borrowings	1,119.493	498.559	1,282.090
Total borrowings	1,196.179	515.540	1,311.142
Debt/Equity ratio	3.593	1.182	2.627

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)
Total Income	7,011.614	9,046.036	7,948.008
		29.015	(12.138

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	7,011.614	9,046.036	7,948.008
Profit/(Loss) After Tax	166.658	58.199	62.974
	2.38%	0.64%	0.79%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATION AND PROSPECTS :

During current year of operations, the company has achieved Revenue from Operation and Other Income of Rs. 7948.008 Millions during the previous year. The Company has earned profit of Rs. 201.720 Millions before depreciation and Interest. The Company has earned Profit of Rs. 96.907 Millions after providing for depreciation and interest.

This contunied progress of the company is the result of the Directors’ vision, perseverance and consistent efforts. The Company is resolute to keep this growth story unrelenting in the coming years and as a part of it the company has expanded its wings of operations at international levels. The Company, during the F.Y. 2012 - 13, has incorporated a Wholly owned Subsidiary named PAN Valley Resources Limited at Hong Kong.

Moreover, the company has also diversified its business operations and entered into the business of generation, transmission and distribution of Power through solar energy. The company has set up a Seperate Division named PAN Power, being a properitory division of the company, which is under construction during the previous year. Management expects to commence Power Division in coming financial year as early as possible. The prospects of the Company’s business are bright and positive.

UNSECURED LOAN

Particulars	As on 31.03.2013 (Rs. In Millions)	As on 31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Deposits from directors	0.000	0.820
Deposits from shareholders	0.000	9.964
Deposits from others	28.817	0.000
Other loans and advance	0.000	4.629
Total	28.817	15.413

Note:

The Registered Office of the company has been shifted from 306/308, Ajanta Complex, Gondal Road, Rajkot – 360002, Gujarat, India to the present address w.e.f. 01.08.2012.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10140963	03/03/2012 *	1,686,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "NOBLE HOUSE", NEAR JALARAM PETROL PUMP, KALAWAD ROAD., RAJKOT - 360001, GUJARAT, INDIA	B36469369
2	10158903	03/03/2012 *	1,686,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "NOBLE HOUSE", NEAR JALARAM PETROL PUMP, KALAWAD ROAD,, RAJKOT - 360001, GUJARAT, INDIA	B36470763
3	90109737	23/01/1998	1,900,000.00	DENA BANK	PARA BAZAR BRANCH, PARA BAZAR, RAJKOT - 360001, GUJARAT, INDIA	-
4	90113139	20/05/1998 *	8,100,000.00	DENA BANK	PARA BAZAR BRANCH, PARA BAZAR, RAJKOT -  360001, GUJARAT, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· 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. 60.19
UK Pound	1	Rs. 102.56
Euro	1	Rs. 81.91

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.