MIRA INFORM REPORT

Report No. :	304787
Report Date :	23.01.2015

IDENTIFICATION DETAILS

Name :	SJLT SPINNING MILLS PRIVATE LIMITED
Registered Office :	Prince Arcade, No.2E, 2^nd Floor, 22-A Cathedral Road, Chennai – 600 086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.09.2004
Com. Reg. No.:	18-062030
Capital Investment / Paid-up Capital :	Rs.70.000 millions
CIN No.: [Company Identification No.]	U17111TN2004PTC062030
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAICS9451L
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is primarily engaged in producing cotton yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 579000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration intense competition in the highly fragmented nature of the domestic spinning industry which restricts pricing flexibility and the exposure of the group’s earnings to fluctuations in cotton and yarn prices. However, trade relations are fair. Business is active. Payment terms are reported to be 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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	ICRA
Rating	Long Term Rating: Term Loans = B+
Rating Explanation	Have high risk of default.
Date	January, 2014

Rating Agency Name	ICRA
Rating	Short Term: Fund Based Facilities = A4
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	January, 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.

LOCATIONS

Registered Office :	Prince Arcade, No.2E, 2^nd Floor, 22-A Cathedral Road, Chennai – 600 086, Tamilnadu, India
Tel. No.:	91-44-28111644
Fax No.:	91-44-28111643
E-Mail :	accounts@sjlt.in ganravi@gmail.com marketing@sjlt.in
Website :	http://www.sjlt.in
Correspondence Office :	285, Trichy Road, Namakkal – 637 002, Tamilnadu, India
Tel. No.:	91-4286-234477/ 234497/ 230188/ 222938
Fax No.:	91-4286-232813
E-Mail :	sjltindia@dataone.in info@sjlt.in
Factory :	NH-7, Namakkal-Karur Main Road, Pillaikalathur, Paramathi (PO), Paramathi Velur (Tk), District Namakkal – 637 207, Tamilnadu, India
Tel. No.:	91-4286-267687/ 267777/ 267719/ 267729
Fax No.:	91-4286-267717
E-Mail :	mail@sjlt.in
Depots :	Located at: · Tirupur/ Erode (Tamilnadu)

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Veerappan Selvadurai

Designation :

Managing Director

Address :

285, Trichy Road, Namakkal – 637 001, Tamilnadu, India

Date of Birth/Age :

05.01.1956

Date of Appointment :

08.09.2004

DIN No.:

00002241

PAN No.:

ACSPS8512K

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	U23203TZ1996PTC006840	SJLT BOTTLING PLANT PRIVATE LIMITED	Director	11/01/1996	11/01/1996	-	Active	NO
2	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Director	02/08/2001	02/08/2001	-	Active	NO
3	U55209TN2002PTC049634	ANDAMAN HOTELS PRIVATE LIMITED	Director	25/11/2002	25/11/2002	-	Active	YES
4	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Managing director	08/09/2004	08/09/2004	-	Active	NO
5	U14102TZ2006PTC012792	SJLT GRANITES PRIVATE LIMITED	Director	26/05/2006	26/05/2006	-	Active	NO
6	U60210TZ2006PTC012794	SRI JAGATHEESAN LORRY TRANSPORTS PRIVATE LIMITED	Director	26/05/2006	26/05/2006	-	Active	NO
7	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28/02/2007	28/02/2007	16/11/2009	Active	NO

Name :

Mr. Jagatheesan Veerappan

Designation :

Whole-Time Director

Address :

285, Trichy Road, Namakkal – 637 001, Tamilnadu, India

Date of Birth/Age :

19.05.1953

Date of Appointment :

08.09.2004

DIN No.:

00002239

PAN No.:

AATPJ2159E

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	U23203TZ1996PTC006840	SJLT BOTTLING PLANT PRIVATE LIMITED	Director	11/01/1996	11/01/1996	-	Active	NO
2	U23203TZ1996PTC006839	OM SAKTHI BOTTLING PLANT PRIVATE LIMITED	Director	11/01/1996	11/01/1996	-	Active	NO
3	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Managing director	02/08/2001	02/08/2001	-	Active	NO
4	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Whole-time director	08/09/2004	08/09/2004	-	Active	NO
5	U14102TZ2006PTC012792	SJLT GRANITES PRIVATE LIMITED	Director	26/05/2006	26/05/2006	-	Active	NO
6	U60210TZ2006PTC012794	SRI JAGATHEESAN LORRY TRANSPORTS PRIVATE LIMITED	Director	26/05/2006	26/05/2006	-	Active	NO
7	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28/02/2007	28/02/2007	16/11/2009	Active	NO

Name :

Mr. Chinnusamy Sureshbabu

Designation :

Director

Address :

285, Trichy Road, Namakkal – 637 001, Tamilnadu, India

Date of Birth/Age :

03.04.1976

Date of Appointment :

26.10.2005

DIN No.:

00002288

PAN No.:

ACSPS8502M

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	U17115TN2001PTC047542	SJLT TEXTILES PRIVATE LIMITED	Whole-time director	02/08/2001	02/08/2001	-	Active	NO
2	U17111TN2004PTC062030	SJLT SPINNING MILLS PRIVATE LIMITED	Director	26/10/2005	26/10/2005	-	Active	NO
3	U01730TZ2003PTC010632	POPPYS KNITWEAR PRIVATE LIMITED	Director	28/02/2007	28/02/2007	16/11/2009	Active	NO

Name :

Ms. Jagadeesan Bhuvaneswari

Designation :

Director

Address :

285, Trichy Road, Namakkal – 637 001, Tamilnadu, India

Date of Birth/Age :

18.06.1983

Date of Appointment :

20.10.2004

DIN No.:

00002290

PAN No.:

AHMPB1256C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
V. Jagatheesan	2736436
V. Selvadurai	3564536
J. Padmavathi	319804
V. Sankarammal	10000
C. Suresh Babu	19804
S. Lalitha	129804
S. Savitha	19804
J. Sindoori	19804
S. Sujitha	19804
J. Bhuvaneswari	160204
Total	7000000

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in producing cotton yarn.

Products :

Item Code No. (ITC Code)	Product Description
52071000	Cotton Yarn

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name	Vijaya Bank
Branch Address	Ram Building, 145, Trichy Road, Namakkal – 637 002, Tamilnadu, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

• Corporation Bank, Namakkal Branch, Namakkal – 637 001, Tamilnadu, India
• State Bank of India Namakkal Branch, Namakkal – 637 001, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks (Term loans from SBI, Vijaya Bank, SBM and Reliance Capital secured by first charge on all movable and immovable properties of the company)	81.498	88.458
SHORT-TERM BORROWINGS
Working capital loans from banks (Cash Credit from Vijaya Bank is secured by way of first charge on Stock, Debtors outstanding of the company. Loan from LIC is secured by pledge of Key man policy.)	209.849	289.545
Borrowing from government semi-government bodies (Loan from LIC is secured by way of first charge on keyman insurance policy)	7.628	7.628
Total	298.975	385.631

Banking Relations :	--
Auditors :
Name :	L. Vijayan Chartered Accountant
Address :	104, State Bank, Colony, Trichy Road, Namakkal – 637 001, Tamilnadu, India
PAN No.:	AAKPV8068P
Memberships :	Not Available
Collaborators :	Not Available
Associates :	SJLT Textiles Private Limited BS Enterprises Om Sakthi Granites SJLT Granites SJS Granites Sri Jagatheesan Lorry Transport

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 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	70.000	70.000	70.000
(b) Reserves & Surplus	127.627	103.755	91.427
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	5.000	2.000	2.000
Total Shareholders’ Funds (1) + (2)	202.627	175.755	163.427
(3) Non-Current Liabilities
(a) Long-term borrowings	147.508	122.865	161.876
(b) Deferred tax liabilities (Net)	30.376	30.832	21.977
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	177.884	153.697	183.853
(4) Current Liabilities
(a) Short term borrowings	217.477	297.173	119.866
(b) Trade payables	136.160	119.277	77.588
(c) Other current liabilities	80.401	65.678	73.492
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	434.038	482.128	270.946
TOTAL	814.549	811.580	618.226
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	492.029	407.143	403.025
(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	0.000
(b) Non-current Investments	0.170	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	492.199	407.143	403.025
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	113.063	169.667	58.939
(c) Trade receivables	153.381	146.620	51.263
(d) Cash and cash equivalents	5.893	6.971	18.346
(e) Short-term loans and advances	50.002	81.156	86.618
(f) Other current assets	0.011	0.023	0.035
Total Current Assets	322.350	404.437	215.201
TOTAL	814.549	811.580	618.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Turnover	944.951	736.619	542.168
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		143.820	119.486	50.843
Less	INTEREST & FINANCIAL EXPENSES		33.729	37.354	47.386
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		110.091	82.132	3.457
Less/ Add	DEPRECIATION/ AMORTISATION		74.718	60.729	58.225
	PROFIT/ (LOSS) BEFORE TAX		35.373	21.403	(54.768)
Less	TAX		11.501	9.075	(20.501)
	PROFIT/ (LOSS) AFTER TAX		23.872	12.328	(34.267)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		103.755	91.427	125.694
	BALANCE CARRIED TO THE B/S		127.627	103.755	91.427
	EARNINGS IN FOREIGN CURRENCY
		Exports of Yarn/Fabrics-FOB	11.763	58.629	14.987
	TOTAL EARNINGS		11.763	58.629	14.987
	Earnings / (Loss) Per Share (Rs.)		3.41	1.76	(0.46)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	4.34	2.64	(8.86)
Return on Investment (ROI) (PBT/Networth)		0.17	0.12	(0.34)
Debt Equity Ratio (Total Debt/Networth)		1.80	2.39	1.72
Current Ratio (Current Asset/Current Liability)		0.74	0.84	0.79

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	70.000	70.000	70.000
Reserves & Surplus	91.427	103.755	127.627
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	2.000	2.000	5.000
Net worth	163.427	175.755	202.627
Long Term borrowings	161.876	122.865	147.508
Short Term borrowings	119.866	297.173	217.477
Total borrowings	281.742	420.038	364.985
Debt/Equity ratio	1.724	2.390	1.801

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Turnover	542.168	736.619	944.951
		35.865	28.282

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Turnover	542.168	736.619	944.951
Profit	(34.267)	12.328	23.872
	(6.32%)	1.67%	2.53%

LOCAL AGENCY FURTHER INFORMATION

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

The registered office of the company has been shifted from No.12/4, New Giri Road, First Street, T. Nagar, Chennai – 600 017, Tamilnadu to the present address w.e.f. 10.04.2013.

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	66.010	34.407
Total	66.010	34.407

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10471215	31/12/2013	73,200,000.00	VIJAYA BANK	RAM BUILDING, 145 TRICHY ROAD, NAMAKKAL, TAMILNADU - 637002, INDIA	B93902013
2	10400986	11/01/2013	45,000,000.00	VIJAYA BANK	NAMAKKAL BRANCH, NAMAKKAL, TAMILNADU - 637001, INDIA	B67240184
3	10299919	27/06/2011	43,000,000.00	CORPORATION BANK	NAMAKKAL BRANCH, NAMAKKAL, TAMILNADU - 637001, INDIA	B17963786
4	10084716	28/06/2014 *	458,600,000.00	VIJAYA BANK	RAM BUILDING, 145 TRICHY ROAD, NAMAKKAL, TAMILNADU - 637002, INDIA	C11548310
5	80035077	13/07/2005	28,000,000.00	THE SOUTH INDIAN BANK	INDUSTRIAL FINANCE BRANCH, 110 RAHEJA TOWERS ANNA  SALAI, CHENNAI, TAMILNADU - 600002, INDIA	-
6	90001927	13/07/2005	80,000,000.00	STATE BANK OF MYSORE	INDUSTRIAL FINANCE BRANCH, NO. 576;ANNA SALAI ;TEYNAMPET, CHENNAI, TAMILNADU - 600006, INDIA	-
7	90001915	29/05/2014 *	130,000,000.00	STATE BANK OF INDIA	# 2 DR. SANKARAN ROAD, NAMAKKAL, TAMINADU - 637001, INDIA	C09712878

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Factory Equipments

· Vehicles

· Office Equipment

· Computer Equipments

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 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.61.69
UK Pound	1	Rs.93.33
Euro	1	Rs.71.49

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	SMN

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
-- PROFITABILITY	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.