MIRA INFORM REPORT

Report Date :

08.03.2014

IDENTIFICATION DETAILS

Name :	J L MORISON (INDIA) LIMITED
Registered Office :	Rasoi Court, 20, Sir R.N. Mukherjee Road, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.10.1934
Com. Reg. No.:	21-088167
Capital Investment / Paid-up Capital :	Rs.13.650 Millions
CIN No.: [Company Identification No.]	L51109WB1934PLC088167
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Trader of FMCG Products.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 2900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. General financial position of the company seems to be below average. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BB
Rating Explanation	Moderate risk of default and high credit risk.
Date	31.12.2013

Rating Agency Name	CRISIL
Rating	Short term rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	31.12.2013

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 DECLINED BY

Name :	Mr. Ravindra
Designation :	Account Manager
Contact No.:	91-33-22480114
Date :	07.03.2014

LOCATIONS

Registered Office :	Rasoi Court, 20, Sir R.N. Mukherjee Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22480114/5
Fax No.:	91-33- 22481200
E-Mail :	sohan@jlmorison.com
Website :	www.jlmorison.in
Head Office:	Peninsula Business Park, Tower ‘A’, 8th Floor, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India
Tel. No.:	91-22-6141 0300
Fax No.:	91-22-24950317
Works:	E-95/1, MIDC, Waluj, Near Siemens Factory, Waluj, Auranagabad - 431136, Maharashtra, India
Branch Office:	Located at Mumbai Kolkata New Delhi Chennai

DIRECTORS

As on 31.03.2013

Name :	Mr. Raghu Mody
Designation :	Chairman
Name :	Mr. Varunn Mody
Designation:	Director
Name :	Mr. Atul Tandan
Designation :	Director
Name :	Mr. K. S. BRAR
Designation :	Director (upto 18th May, 2012)
Name :	Mr. Shamsunder Aggarwal
Designation :	Director
Name :	Mr. Sanjay Kothari
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ravindra
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	385	0.03
Bodies Corporate	990704	72.58
Sub Total	991089	72.61
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	991089	72.61
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	107419	7.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	184972	13.55
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	55232	4.05
Any Others (Specify)	26322	1.93
Non Resident Indians	1022	0.07
Directors & their Relatives & Friends	100	0.01
Trusts	25200	1.85
Sub Total	373945	27.39
Total Public shareholding (B)	373945	27.39
Total (A)+(B)	1365034	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	1365034	0.00

BUSINESS DETAILS

Line of Business :

Trader of FMCG Products.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Canara Bank
• Bank of India
• Corporation Bank

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Term Loans Vehicle loans from others	2.866	6.351
Short-term borrowings
Working capital loans from banks	21.823	64.816
Total	24.689	71.167
NOTE: LONG-TERM BORROWINGS Loan taken during the financial year 2011-12 interest @ 8.11% which is payable in 36 monthly installments (principal plus interest) of Rs.0.249 Million respectively from date of the loan. The loan is secured by hypothecation of one vehicle of the Company pertaining to business. Loan taken during the financial year 2010-11 interest @ 10.37% was fully paid during the current financial year. SHORT-TERM BORROWINGS Working capital loans from banks is secured against hypothecation of goods and book debts and equitable mortgage on specific immovable properties of the Company. Average interest rate is in the range of 13.50% to 14.50%

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	Mumbai - 400 059, Maharashtra, India
Solicitors:
Name :	Khaitan and Company
Enterprises where KMP/ Relatives of KMP have significant influence:	Rasoi Limited Hindustan Composites Limited Looklink Finance Limited Pallawi Resources Limited Surdas Trading and Manufacturing Company Limited Pallawi Trading and Manufacturing Company Limited Axon Trading and Manufacturing Company Limited Lotus Udyog Limited Goodpoint Advisory Services and Investments Limited Noble Trading Company Limited Silver Trading and Services Limited Manoj Mody Foundation - (Mr. Raghu Mody and Mr. Varunn Mody - Trustees) JLM Employees Trust - (Mr. Raghu Mody and Mr. Varunn Mody - Trustees)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1365034	Equity Shares	Rs.10/- each	Rs. 13.650 Millions

NOTE:

Rights of Equity Shareholders:

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2013, the amount of per share dividend recognized as distributions to equity shareholders was Rs.1 (31st March, 2012: Rs.1) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Particulars	As at 31st March, 2013 Equity Shares
	Number	Rs. In Millions
Shares outstanding at the beginning of the year	13,65,034	13.650
Shares Issued during the year	--	--
Shares bought back during the year	--	--
Shares outstanding at the end of the year	13,65,034	13.650

Share held by holding/ultimate holding company and / or their subsidiaries / associates:

None of the Equity Shares are held by the holding/ ultimate holding company and/ or their subsidiaries / associates.

Details of shareholders holding more than 5% shares in the Company:

Particulars	As at 31st March, 2013
	No. of Shares held	% of Holding
Hindustan Composites Limited	2,72,800	19.98
Rasoi Limited	2,72,800	19.98
Looklink Finance Limited	1,13,319	8.30
Pallawi Resources Limited	94,600	6.93
Surdas Trading and Manufacturing company Limited	78,742	5.77

Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: Nil

f) Shares reserved for issue under options: Nil

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	13.650	13.650	13.650
(b) Reserves & Surplus	711.161	698.485	699.106
(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)	724.811	712.135	712.756
(3) Non-Current Liabilities
(a) long-term borrowings	2.866	6.351	4.064
(b) Deferred tax liabilities (Net)	10.687	8.913	7.217
(c) Other long term liabilities	3.546	3.553	3.764
(d) long-term provisions	3.054	2.702	1.140
Total Non-current Liabilities (3)	20.153	21.519	16.185
(4) Current Liabilities
(a) Short term borrowings	80.292	206.586	86.589
(b) Trade payables	152.719	198.473	234.595
(c) Other current liabilities	97.756	67.126	60.177
(d) Short-term provisions	2.605	2.487	1.967
Total Current Liabilities (4)	333.372	474.672	383.328
TOTAL	1078.336	1208.326	1112.269
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	288.981	197.945	196.201
(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	0.180
(b) Non-current Investments	221.358	221.358	235.163
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	99.532	60.360	126.530
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	609.871	479.663	558.074
(2) Current assets
(a) Current investments	1.494	0.000	21.174
(b) Inventories	193.445	177.178	127.131
(c) Trade receivables	198.937	297.071	323.672
(d) Cash and cash equivalents	27.230	117.238	31.558
(e) Short-term loans and advances	46.128	134.345	45.996
(f) Other current assets	1.231	2.831	4.664
Total Current Assets	468.465	728.663	554.195
TOTAL	1078.336	1208.326	1112.269

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1139.386	1054.120	1003.534
		Other Income	57.941	20.047	11.409
		TOTAL (A)	1197.327	1074.167	1014.943
Less	EXPENSES
		Purchase of stock in trade	858.057	794.668	761.229
		Changes in inventories of stock in trade	(16.267)	(50.046)	(1.890)
		Employee benefits expense	104.059	91.556	73.975
		Other expenses	210.484	214.469	157.457
		TOTAL (B)	1156.333	1050.647	990.771
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.994	23.520	24.172
Less	FINANCIAL EXPENSES (D)		10.787	12.159	15.016
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.207	11.361	9.156
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.103	8.370	8.331
	PROFIT BEFORE TAX (E-F) (G)		20.104	2.991	0.825
Less	TAX (H)		5.842	2.026	0.742
	PROFIT AFTER TAX (G-H) (I)		14.262	0.965	0.083
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.405	4.026	5.529
Less	APPROPRIATIONS
		Proposed dividend	1.365	1.365	1.365
		Dividend Tax	0.221	0.221	0.221
	BALANCE CARRIED TO THE B/S		16.081	3.405	4.026
	IMPORTS
		Trading
		Edible oil – bulk	211.023	208.068	311.298
		Personal and health care	118.423	218.769	139.251
	TOTAL IMPORTS		329.446	426.837	450.549
	Earnings Per Share (Rs.)		10.45	0.71	0.06

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.19	0.09	0.01
Net Profit Margin (PBT/Sales)	(%)	1.76	0.28	0.08
Return on Total Assets (PBT/Total Assets}	(%)	2.35	0.30	0.09
Return on Investment (ROI) (PBT/Networth)		0.03	0.00	0.00
Debt Equity Ratio (Total Debt /Networth)		0.11	0.30	0.13
Current Ratio (Current Asset/Current Liability)		1.41	1.54	1.45

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	13.650	13.650	13.650
Reserves & Surplus	699.106	698.485	711.161
Net worth	712.756	712.135	724.811
long-term borrowings	4.064	6.351	2.866
Short term borrowings	86.589	206.586	80.292
Total borrowings	90.653	212.937	83.158
Debt/Equity ratio	0.127	0.299	0.115

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	1003.534	1054.120	1139.386
		5.041	8.089

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	1003.534	1054.120	1139.386
Profit	0.083	0.965	14.262
	0.01%	0.09%	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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE

Company's decision of addressing needs of the market by formulating different teams focused on different market segments have started paying rich dividends. Clear focus on the expanded portfolio has proved to be a good exercise which resulted into increase in turnover growth as compared to previous year's levels.

The Company has forayed more in developing own brands for a long term sustenance and growth. The Company extended its offering within the existing product categories and introduced new variants under its brand Fresh Valley (Air fresheners). The initial market response has been encouraging for this brand. The new variants launched are Floral, Rajnigandha, Fruity and Mogra. This is in the sync of brand's idea of continuously offering market newness.

Subject own brand Division has primarily focused on developing Baby range products especially catering 0-3 years. The division has shown continuous commitment towards enabling mothers to take better care of their new born babies. There have been a series of new launches addressing needs of mothers. Few of them are Baby Mat, Bottle Warmer+Bag, Single and Double Warmer, Diaper Bag, Growth Set of Feeding Bottles, Wide Mouth Bottle, Softie Sippie Feeding Cup, Wide Mouth Teat, Sippie Feeding Cup, Hair Brush and Comb Set, Baby Rattle, Baby Wipes, Premium Rattle, Teat with Nubs, Spill Free Feeding Cup, Bath Set, Long Handle Sparkle Brush, Digital Thermometer, BPA free Feeding bottle, Baby Booties, Shiny Astro Toothbrush, Shiny Caterpillar Toothbrush, Wonder Wheel Toy etc.

Customers have reacted positively to these products. The trust in the brand name Morisons have gone up manifold for the trade channels.

The division also aggressively tried to communicate the benefits of the brand with mothers by participating in events, Mother, baby and child expo, organizing Smart Mum (JLM's initiative to bring mothers together to interact with each other)

The biggest launch for Life Style Division has been Bigen "Easy N Natural". An innovative product from the house of Hoyu, Japan. This product can be applied on hair by hand, without using a brush, like hair oil. Renowned Indian actress "Juhi Chawla" has been appointed as brand ambassador and decent budget has been allocated to promote the brand in the Indian Market. The initial response is satisfactory.

Life Style Division also extended the portfolio of Coty by Launching Sportivo, Berlin and VIP in the Indian Market. This will strengthen the Brands presence and help JLM in growth.

During the year, the sales of Emoform - R, the toothpaste for inflamed gums and sensitive teeth recorded a good growth. Dental consumables and Morison Happy Smile-teeth whitening pen is a unique product which are continuously on the growth path. Lignotox- the local anesthetic has also become popular widely in a very short time at institutional level and it has been approved by Ministry of Defence.

BUSINESS OUTLOOK

The company continues to invest and build own brands for a long term sustenance and growth. Utilization of the manufacturing facility at Waluj is being constantly evaluated. At the same time, they are evaluating some more options of joining hands with international leading brands.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Loan from Related party	50.000	0.000
Buyers credit arrangements	8.468	141.770
Total	58.468	141.770
Note: Loan taken from M/s Hindustan Composites Limited is payable on demand bearing interest at the rate of 13% p.a. Buyers credit arrangement from bank carry the interest at LIBOR plus 83 basis points.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10349631	27/03/2012	8,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B37565009
2	10063403	30/09/2013 *	194,000,000.00	CANARA BANK	84, MARTHANDA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	B87533238
3	80016543	30/09/2013 *	194,000,000.00	CANARA BANK	MARTHANDA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	B87533550

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013
Guarantee given on behalf of body corporate	2.300
Income tax	17.334
Sales tax matters in dispute (including interest wherever applicable)	1.045
Total	20.679

FIXED ASSETS

Tangible assets

• Land
• Factory Building
• Plant and Machinery and Equipment’s
• Furniture and Fixtures
• Office Equipment’s
• Computers
• Vehicle

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.60.99
UK Pound	1	Rs.102.07
Euro	1	Rs.84.53

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.