MIRA INFORM REPORT

Report No. :	305060
Report Date :	28.01.2015

IDENTIFICATION DETAILS

Name :	GLAZE GARMENTS (INDIA) LIMITED

Registered Office :	Village Hussain Pura, Opposite Hotel Amaltas, G T Road, Ludhiana – 141005, Punjab

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	27.01.1998

Com. Reg. No.:	16-021003

Capital Investment / Paid-up Capital :	Rs.22.090 Millions

CIN No.: [Company Identification No.]	U17299PB1998PLC021003

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

PAN No.: [Permanent Account No.]	AAACG8868R

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Rediment Garment.

No. of Employees :	600 (Approximately)

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 290000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by leverage capital structure and thin profitability to be slow but correct. However, trade relations are fair. Business is active. Payments 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

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 : Term Loan : BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	February 2014

Rating Agency Name	ICRA
Rating	Short term : Non fund based limits : A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 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. Rakesh Gupta
Designation :	Account Manager
Contact No.:	91-161-6609135
Date :	27.01.2015

LOCATIONS

Registered Office / Factory:	Village Hussain Pura, Opposite Hotel Amaltas, G T Road, Ludhiana – 141005, Punjab, India
Tel. No.:	91-161-6609135
Fax No.:	91-161-2740500
E-Mail :	rakesh@vgil.com cs@vgil.com
Location :	Owned

DIRECTORS

As on 11.09.2014

Name :

Mr. Anil Kumar Jain

Designation :

Director

Address :

House No. 328/1, Civil Lines, Dr. Sham Singh Road, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

25.06.1954

Qualification :

B.A.

Date of Appointment :

20.01.2005

PAN No.:

ABLPJ0588L

DIN No.:

00467842

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	U18101PB1983PLC005324	VENUS COTSYN (INDIA) LIMITED	Director	02/03/1983	02/03/1983	-	Active	NO
2	U17117PB1999PLC022270	VENUS GARMENTS (INDIA) LIMITED	Whole-time director	01/04/2014	23/02/1999	-	Active	NO
3	U17299PB1998PLC021003	GLAZE GARMENTS (INDIA) LIMITED	Director	20/01/2005	20/01/2005	-	Active	NO
4	U15400PB2007PTC031232	VENUS DIETS Private Limited	Director	27/06/2007	27/06/2007	18/06/2011	Active	NO
5	U51900PB2007PLC031472	UV&W Products Limited	Director	15/11/2007	15/11/2007	-	Active	NO

Name :

Mr. Tarun Jain

Designation :

Director

Address :

House No. 328/1, Civil Lines, Dr. Sham Singh Road, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

14.02.1982

Qualification :

MBA

Date of Appointment :

20.01.2005

PAN No.:

ADHPJ6473G

DIN No.:

00468048

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	U17117PB1999PLC022270	VENUS GARMENTS (INDIA) LIMITED	Director	01/01/2009	08/12/2003	-	Active	NO
2	U18101PB1983PLC005324	VENUS COTSYN (INDIA) LIMITED	Whole-time director	01/08/2013	18/01/2005	-	Active	NO
3	U17299PB1998PLC021003	GLAZE GARMENTS (INDIA) LIMITED	Director	20/01/2005	20/01/2005	-	Active	NO
4	U51900PB2007PLC031472	UV&W Products Limited	Additional director	16/08/2011	15/11/2007	30/09/2011	Active	NO

Name :

Mrs. Sunita Jain

Designation :

Director

Address :

House No. 328/1, Civil Lines, Dr. Sham Singh Road, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

14.04.1958

Qualification :

B.A.

Date of Appointment :

20.01.2005

DIN No.:

00468132

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	U18101PB1983PLC005324	VENUS COTSYN (INDIA) LIMITED	Whole-time director	01/08/2013	27/10/2003	-	Active	NO
2	U17117PB1999PLC022270	VENUS GARMENTS (INDIA) LIMITED	Director	20/01/2005	20/01/2005	-	Active	NO
3	U17299PB1998PLC021003	GLAZE GARMENTS (INDIA) LIMITED	Director	01/04/2009	20/01/2005	-	Active	NO

Name :

Mr. Varun Jain

Designation :

Director

Address :

House No. 328/1, Civil Lines, Dr. Sham Singh Road, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

02.09.1984

Qualification :

MBA

Date of Appointment :

20.01.2005

PAN No.:

AFGPJ9911C

DIN No.:

01367282

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	U17299PB1998PLC021003	GLAZE GARMENTS (INDIA) LIMITED	Director	01/04/2009	01/05/2007	-	Active	NO
2	U15400PB2007PTC031232	VENUS DIETS Private Limited	Director	27/06/2007	27/06/2007	-	Active	NO
3	U51900PB2007PLC031472	UV&W Products Limited	Director	15/11/2007	15/11/2007	-	Active	NO
4	U17117PB1999PLC022270	VENUS GARMENTS (INDIA) LIMITED	Whole-time director	01/10/2011	27/09/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rakesh Gupta
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.09.2014

Names of Shareholders		No. of Shares
Anil Kumar Jain		228800
Anil Kumar Jain and Sons (HUF)		365000
Varun Jain		305040
Sunita Jain		339100
Venus Cotsyn (India) Limited, India		338460
Venus Garments (India) Limited, India		184000
Tarun Jain		242250
Venus Fabrics through Partner Anil Kumar Jain		190100
Shweta Jain		1250
UV and W Products Limited, India		15000
Total		2209000

Equity Share Break up (Percentage of Total Equity)

As on 11.09.2014

Category	Percentage
Bodies corporate	24.33
Directors or relatives of Directors	75.67
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Rediment Garment.

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :
Products :	Finished Good
Countries :	Mexico USA

Imports :
Products :	Machinery
Countries :	China Korea

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :

Groz Spaiz Fabs limited, Punjab, India

Name of the Person :

Mr. Navit Grover – Director

Contact No.:

91-9814040007

Since How Long Known :

6 Years

Maximum Limit Dealt :

Rs. 250.000 Millions Yearly

Experience :

Payment Behaviour	Market Goodwill	Overall
Excellent	Excellent	Excellent

Remark:

As claimed by Mr. Navnit that they are satisfied with subject company.

Customers :

Wholesalers
Retailers

Reference :

Venus Garments, Ludhiana, Punjab, India

Name of the Person :

Mr. Harindarjit Sing (DGM- HR)

Contact No.:

91-161-6609198

Since How Long Known :

20 Years

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
Excellent	Excellent	Excellent

Remark:

As claimed by Mr.Harindar that product quality and delivery behavoiur is good. They are satisfied.

No. of Employees :

600 (Approximately)

Bankers :

Bank Name	State Bank of Patiala
Branch	Commercial Branch, Miller Ganj, Ludhiana - 141003, Punjab, India
Person Name (With Designation)	Mr. Rohit (Relationship Manager)
Contact Number	91-9779584414
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)	Not Divulged
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	8.800	17.513
Short-term borrowings
Loans repayable on demand from banks	196.152	168.713
Total	204.952	186.226

Auditors :
Name :	Krishan Sindwani and Company Chartered Accountants
Address :	Flat No.8, Mai Harkrishan Building, Bank Road, Civil Lines, Ludhiana, Punjab, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFK5545M

Memberships :	--

Collaborators :	--

Associates:	Venus Garments (India) Limited, India [U17117PB1999PLC022270] Venus Cotsyn (India) Limited, [U18101PB1983PLC005324] Venus Fabrics Venus Diets (Private) Limited UV and W Products Limited, [U51900PB2007PLC031472]

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

2395000	Equity Shares	Rs.10/- each	Rs.23.950 Millions
5000	Preference Shares	Rs.10/- each	Rs.0.050 Million
	Total		Rs.24.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2209000	Equity Shares	Rs.10/- each	Rs.22.090 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	22.090	22.090	22.090
(b) Reserves & Surplus	79.437	70.985	64.132
(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)	101.527	93.075	86.222

(3) Non-Current Liabilities
(a) long-term borrowings	28.879	39.034	43.206
(b) Deferred tax liabilities (Net)	6.891	8.107	7.709
(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)	35.770	47.141	50.915

(4) Current Liabilities
(a) Short term borrowings	196.152	168.713	138.617
(b) Trade payables	154.666	228.026	129.391
(c) Other current liabilities	23.242	19.756	14.725
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	374.060	416.495	282.733

TOTAL	511.357	556.711	419.870

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	48.384	52.692	55.447
(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	1.286	1.286	1.286
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.699	0.699	0.699
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	50.369	54.677	57.432

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	189.158	136.734	97.038
(c) Trade receivables	255.409	349.500	249.998
(d) Cash and cash equivalents	13.839	13.644	10.558
(e) Short-term loans and advances	2.454	1.823	4.536
(f) Other current assets	0.128	0.333	0.308
Total Current Assets	460.988	502.034	362.438

TOTAL	511.357	556.711	419.870

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1091.312	952.738	905.503
	Other Income	0.135	2.437	3.243
	TOTAL (A)	1091.447	955.175	908.746

Less	EXPENSES
	Cost of Materials Consumed	934.450	832.394	768.333
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(32.718)	(21.531)	(3.030)
	Employees benefits expense	79.602	50.659	61.735
	Other expenses	49.783	40.903	34.629
	TOTAL (B)	1031.117	902.425	861.667

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	60.330	52.750	47.079

Less	FINANCIAL EXPENSES (D)	45.854	38.136	34.048

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	14.476	14.614	13.031

Less/ Add	DEPRECIATION/ AMORTISATION (F)	3.416	3.706	3.746

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	11.060	10.908	9.285

Less	TAX (I)	2.621	4.083	2.713

	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	8.439	6.825	6.572

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	14.190	27.604
	TOTAL EARNINGS	0.000	14.190	27.604

	Earnings / (Loss) Per Share (Rs.)	3.82	3.09	2.97

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.77	0.72	0.73

Operating Profit Margin (PBIDT/Sales)	(%)	5.53	5.54	5.20

Return on Total Assets (PBT/Total Assets}	(%)	2.17	1.96	2.22

Return on Investment (ROI) (PBT/Networth)		0.11	0.12	0.11

Debt Equity Ratio (Total Debt /Networth)		2.22	2.23	2.11

Current Ratio (Current Asset/Current Liability)		1.23	1.21	1.28

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	22.090	22.090	22.090
Reserves & Surplus	64.132	70.985	79.437
Net worth	86.222	93.075	101.527

long-term borrowings	43.206	39.034	28.879
Short term borrowings	138.617	168.713	196.152
Total borrowings	181.823	207.747	225.031
Debt/Equity ratio	2.109	2.232	2.216

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	905.503	952.738	1091.312
		5.216	14.545

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	905.503	952.738	1091.312
Profit	6.572	6.825	8.439
	0.73%	0.72%	0.77%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

YEAR IN RETROSPECT

During the year the Company achieved the Sales and other Income of Rs. 1091.447 Millions as against Rs. 955.175 Millions during the previous year. After providing depreciation and amortized expenses of Rs. 3.416 Millions (previous year Rs. 3.706 Millions), Tax Rs. 3.838 Millions (previous year Rs. 3.685 Millions) and Deferred Tax Assets of Rs. (1.216) Millions (previous year Deferred Tax Liabilities Rs. 0.398 Million) the Company earned profit of Rs. 8.438 Millions (previous year Rs. 6.825 Millions).

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	2.200	3.720
Loans and advances from directors	1.667	0.473
Loans and advances from others	2.329	0.054
Other loans and advances	13.883	17.274
Total	20.079	21.521

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10316633	19/10/2011	28,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B24919219
2	90173977	22/03/2013 *	320,000,000.00	STATE BANK OF PATIALA	COMMERCIAL BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B72359482

* Date of charge modification

FIXED ASSETS

Tangible assets

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Other 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 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.61.46
UK Pound	1	Rs.92.77
Euro	1	Rs.69.03

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	KAR

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--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	--

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.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit