MIRA INFORM REPORT

Report No. :	305932
Report Date :	02.02.2015

IDENTIFICATION DETAILS

Name :	MAX HYPERMARKET INDIA PRIVATE LIMITED

Registered Office :	2nd Floor, (Above Spar Hypermarket), No 39/3 and 44, Bannerghatta Road, Bangalore 560029, Karnataka

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	19.08.2004

Com. Reg. No.:	08-037768

Capital Investment / Paid-up Capital :	Rs. 841.500 Millions

CIN No.: [Company Identification No.]	U52190KA2004PTC037768

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	The subject is engaged in the business of retail.

No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses which has eroded net worth of the company. Profitability of the company is under pressure. Business is active. Payments are reported to be slow. The company can be considered for business dealings on safe and secured trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	07.05.2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Satish
Designation :	Accounts Manage
Contact No.:	91-80-41811600
Date :	31.01.2015

LOCATIONS

Registered Office :	2nd Floor, (Above Spar Hypermarket), No 39/3 and 44, Bannerghatta Road, Bangalore 560029, Karnataka, India
Tel. No.:	91-80-41811600
Fax No.:	91-80-26769616
E-Mail :	jagadish_rao@lifestylestores.com anantha.Murthy@lifestylestores.com
Website :	www.landmarkgroup.in

DIRECTORS

As on 29.09.2014

Name :

Mr. Ramanathan Hariharan

Designation :

Director

Address :

Villa 13, Meadows 5, Street No. 6, PO Box 25030, Dubai, United Arab Emirates 100000

Date of Birth/Age :

24.06.1955

Date of Appointment :

19.10.2004

DIN No. :

00323959

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	U52190KA2004PTC037768	MAX HYPERMARKET INDIA PRIVATE LIMITED	Director	19-10-04	19-10-04	-	Active	NO
2	U52190KA1997PTC046775	LIFE STYLE INTERNATIONAL PRIVATE LIMITED	Director	04-12-13	01-04-05	-	Active	NO
3	U52190KA2005PTC035884	LMG BRANDS INDIA PRIVATE LIMITED	Director	30-06-05	30-06-05	21-03-11	Active	NO
4	U55101KA2005PTC037255	CITYMAX HOTELS (INDIA) PRIVATE LIMITED	Director	18-10-05	18-10-05	01-03-08	Active	NO
5	U92199KA2005PTC037615	CITYMAX HOSPITALITY (INDIA) PRIVATE LIMITED	Additional director	18-01-08	18-01-08	01-03-08	Active	NO

Name :

Mr. Viney Singh

Designation :

Managing Director

Address :

201, Woodva le Apartments, Heather Block, Nandidurg Road, Benson Town, Bangalore – 560 046, Karnataka, India

Date of Birth/Age :

28.11.1959

Date of Appointment :

25.10.2006

DIN No. :

00932145

PAN No.:

AKFPS1364H

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	U52190KA2004PTC037768	MAX HYPERMARKET INDIA PRIVATE LIMITED	Managing director	25-10-12	25-10-06	-	Active	NO
2	U55101KA2005PTC037255	CITYMAX HOTELS (INDIA) PRIVATE LIMITED	Director	30-09-08	11-12-07	12-06-13	Active	NO
3	U92199KA2005PTC037615	CITYMAX HOSPITALITY (INDIA) PRIVATE LIMITED	Director	30-09-08	18-01-08	12-06-13	Active	NO
4	U74999KA2008PTC047025	FOU HOSPITALITY SERVICES PRIVATE LIMITED	Director	03-07-08	03-07-08	-	Strike off	NO

Name :

Ms. Renuka Mukesh Jagtiani

Designation :

Director

Address :

B2, Seagull 8^th Floor, Carmichael Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

11.03.1955

Date of Appointment :

18.01.2012

DIN No.:

00180922

PAN No.:

AFKPJ7680N

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	U52190KA2005PTC035884	LMG BRANDS INDIA PRIVATE LIMITED	Director	30-06-05	30-06-05	21-03-11	Active	NO
2	U52190KA1997PTC046775	LIFE STYLE INTERNATIONAL PRIVATE LIMITED	Director	28-09-12	11-01-12	-	Active	NO
3	U52190KA2004PTC037768	MAX HYPERMARKET INDIA PRIVATE LIMITED	Director	28-09-12	18-01-12	-	Active	NO
4	U52399KA2005PTC037310	SPLASH FASHIONS INDIA PRIVATE LIMITED	Director	30-08-13	21-12-12	-	Active	NO

Name :

Mr. Raghu Rajagopalan

Designation :

Director

Address :

TF – 12A, Balaji Nest, 2^nd Main Basappa Layout, Henur, Bangalore – 560043, Karnataka, India

Date of Birth/Age :

30.05.1964

Date of Appointment :

04.06.2014

DIN No.:

03636397

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	U92100MH2009PTC196165	LANDMARK FILMS INTERNATIONAL PRIVATE LIMITED	Director	19-06-12	10-10-11	-	Strike off	NO
2	U51909KA2005PTC037614	CITYMAX RESTAURANTS PRIVATE LIMITED	Director	28-09-12	10-10-11	-	Strike off	NO
3	U52399KA2005PTC037310	Splash Fashions India Private Limited	Director	19-09-14	10-10-11	-	Active	NO
4	U80904KA2011NPL058386	LANDMARK INSTITUTION FOR SKILLS TRAINING PRIVATE LIMITED	Director	19-09-14	27-05-14	-	Active	NO
5	U55101KA2005PTC037255	CITYMAX HOTELS (INDIA) PRIVATE LIMITED	Director	19-09-14	27-05-14	-	Active	NO
6	U52190KA2005PTC035884	LMG BRANDS INDIA PRIVATE LIMITED	Director	19-09-14	27-05-14	-	Active	NO
7	U92199KA2005PTC037615	CITYMAX HOSPITALITY (INDIA) PRIVATE LIMITED	Director	19-09-14	27-05-14	-	Active	NO
8	U52190KA2004PTC037768	MAX HYPERMARKET INDIA PRIVATE LIMITED	Director	29-09-14	04-06-14	-	Active	NO

KEY EXECUTIVES

Name :	Vidya Sarathy
Designation :	Secretary
Address :	145, 5^th Cross, Vijay Bank Layout, Bilekahalli, Off Banne Rghatta Road, Bangalore – 560076, Karnataka, India
Date of Birth/Age :	22.02.1966
Date of Appointment :	09.07.2012
PAN No.:	AAHPV7051R0

Name :	Mr. Satish
Designation :	Accounts Manage

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

Names of Shareholders		No. of Shares
Jagtiani Wadhumal Mukesh		67790014
Renuka Mukesh Jagtiani		33389098
C S Sekar		5000
Chandras E Karan S		5000
Total		101189112

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2014

Category	Percentage
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	The subject is engaged in the business of retail.

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :	Not Divulged

Imports :	Not Divulged

Terms :
Selling :	Cash and Credit (30-60-90 Days)

Purchasing :	Cash and Credit (30-60-90 Days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

End Users
OEMS

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

100 (Approximately)

Bankers :

· State Bank of India, Specialised Commercial Branch, Krishi Bhavan, I Floor, Hudson Circle, Bangalore – 560 001, Karnataka, India

· IDBI Bank Limited, Specialised Corporate Branch, 102, Shakthi Comforts Tower, K H Road, Bangalore 560027, Karnataka, India

Bank Name	Standard Chartered Bank
Branch	No.112, Serenity, Koramangala Industrial Area, 5th Block, Koramangala, Bangalore - 560095, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash and Credit: Rs. 300.000 Millions
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	494.400	714.500
Short-term borrowings
Working capital loans from banks	0.000	130.000
Total	494.400	844.500

Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Bangalore, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAEFP5579A

Memberships :	--

Collaborators :	--

Enterprises over which individual/s indirectly owing an interest in the Company, exercise significant influence or control:	Lifestyle International Private Limited, India ( Lifestyle) Citymax Hotels Private Limited, India (Citymax Hotels) Citymax Hospitality (India) Private Limited, India (Citymax Hospitality) LMG International, British Virgin Islands (LMG) Max Holdings and Investments Limited, Dubai (Max Holdings)

CAPITAL STRUCTURE

AFTER 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

300000000	Equity Shares	Rs.10/- each	Rs. 3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

116027312	Equity Shares	Rs.10/- each	Rs. 1160.273 Millions

As on 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

300000000	Equity Shares	Rs.10/- each	Rs. 3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

101189112	Equity Shares	Rs.10/- each	Rs. 1011.891 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

300000000	Equity Shares	Rs.10/- each	Rs. 3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

84150000	Equity Shares	Rs.10/- each	Rs. 841.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	841.500	841.500	786.600
(b) Reserves & Surplus	(2007.500)	(933.600)	(405.000)
(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)	(1166.000)	(92.100)	381.600

(3) Non-Current Liabilities
(a) long-term borrowings	494.400	714.500	372.100
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	54.200	53.200	34.100
(d) long-term provisions	77.800	73.100	59.400
Total Non-current Liabilities (3)	626.400	840.800	465.600

(4) Current Liabilities
(a) Short term borrowings	0.000	130.000	77.500
(b) Trade payables	470.600	341.100	375.600
(c) Other current liabilities	2360.500	628.400	365.100
(d) Short-term provisions	80.600	15.800	11.700
Total Current Liabilities (4)	2911.700	1115.300	829.900

TOTAL	2372.100	1864.000	1677.100

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	676.700	637.100	648.000
(ii) Intangible Assets	136.000	25.800	11.200
(iii) Capital work-in-progress	215.500	138.500	78.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	440.400	392.800	330.200
(e) Other Non-current assets	0.600	0.600	0.500
Total Non-Current Assets	1469.200	1194.800	1068.600

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	602.100	525.100	537.800
(c) Trade receivables	24.000	30.500	0.700
(d) Cash and cash equivalents	193.700	62.600	37.700
(e) Short-term loans and advances	62.500	44.800	32.300
(f) Other current assets	20.600	6.200	0.000
Total Current Assets	902.900	669.200	608.500

TOTAL	2372.100	1864.000	1677.100

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	6997.800	6203.100	4680.200
	Other Income
	TOTAL	6997.800	6203.100	4680.200

Less	EXPENSES	7848.600	6941.700	5272.700

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(850.800)	(738.600)	(592.500)

Less/ Add	DEPRECIATION/ AMORTISATION	223.100	235.100	131.700

	PROFIT/ (LOSS) BEFORE TAX	(1073.900)	(973.700)	(724.200)

Less	TAX	0.000	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	(1073.900)	(973.700)	(724.200)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(3168.000)	(2194.300)	(1470.100)

	Balance Carried to the B/S	(4241.900)	(3168.000)	(2194.300)

	Earnings / (Loss) Per Share (Rs.)	(12.76)	NA	NA

Expected Sales (2014-2015) : Rs.70.000 Millions

The above information has been parted by Mr. Satish

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Total Income)	(%)	(15.35)	(15.70)	(15.47)

Return on Total Assets (PBT/Total Assets}	(%)	(49.80)	(56.43)	(45.31)

Return on Investment (ROI) (PBT/Networth)		0.92	10.57	(1.90)

Debt Equity Ratio (Total Debt /Networth)		(0.42)	(9.17)	1.18

Current Ratio (Current Asset/Current Liability)		0.31	0.60	0.73

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	786.600	841.500	841.500
Reserves & Surplus	(405.000)	(933.600)	(2007.500)
Net worth	381.600	(92.100)	(1166.000)

long-term borrowings	372.100	714.500	494.400
Short term borrowings	77.500	130.000	0.000
Total borrowings	449.600	844.500	494.400
Debt/Equity ratio	1.178	(9.169)	(0.424)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4680.200	6203.100	6997.800
		32.539	12.811

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4680.200	6203.100	6997.800
Profit	(724.200)	(973.700)	(1073.900)
	(15.47%)	(15.70%)	(15.35%)

LOCAL AGENCY FURTHER INFORMATION

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

NOTE: Registered office of the company has been shifted from No.651, CV Naidu Chambers, 11^th Cross Junction, 7^th Block, jayanagar, Kankapura Main Road, Bangalore – 560082, Karnataka, India to the present address w.e.f. 01.08.2009

OPERATIONS

During the year, the Company launched two Hypermarket Stores at Prestige Forum Mall, Chennai and Gaur Central Mall, Ghaziabad. These stores have been well received by the customers. During the year the Company has closed two of its stores at Inorbit Mall, Pune and Ashoka Mall, Hyderabad as these stores were not financially viable. The store at MG Road, Vijayawada was closed subsequently in April 14.

During FY 2014-15, the Company has plans to open approximately 4 new Hypermarkets at different locations across the country. The company has opened its second hypermarket in Mangalore at the Fiza Forum Mall in July 2014 and the balance openings are scheduled in the current/subsequent quarters.

During the FY 2013-14, the Company has mutually agreed with AUCHANHYPER S.A to terminate the licensing arrangement w.e.f. January 10, 2015. Consequently, the Company has entered in to a License arrangement with SPAR International B.V w.e.f. August 1, 2014.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10534595	27/11/2014	580,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	NO 7, M G ROAD, BANGALORE, KARNATAKA - 560001, IND IA	C35795814
2	10413095	18/03/2013	300,000,000.00	STANDARD CHARTERED BANK	NO.112, SERENITY, KORAMANGALA INDUSTRIAL AREA, 5T H BLOCK, KORAMANGALA, BANGALORE, KARNATAKA - 56009 5, INDIA	B71221311
3	10392674	06/12/2012	500,000,000.00	STANDARD CHARTERED BANK	NO.112, SERENITY, KORAMANGALA INDUSTRIAL AREA, 5T H BLOCK, KORAMANGALA, BANGALORE, KARNATAKA - 56009 5, INDIA	B64408388
4	10260853	06/12/2010	650,000,000.00	STANDARD CHARTERED BANK	RAHEJA TOWERS, NO.26 - 27,, M.G. ROAD,, BANGALORE , KARNATAKA - 560001, INDIA	B03461670

FIXED ASSETS

Tangible assets

Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Computer equipments
Other equipments
Leasehold improvements

Intangible assets

Computer software
Licenses and franchise
Franchise

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.61.76
UK Pound	1	Rs.93.13
Euro	1	Rs.70.03

INFORMATION DETAILS

Information Gathered by :	PAT

Analysis Done by :	KAR

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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		18

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.