MIRA INFORM REPORT

Report No. :	327773
Report Date :	18.06.2015

IDENTIFICATION DETAILS

Name :	RAYBAN SUN OPTICS INDIA PRIVATE LIMITED (w.e.f. 01.04.2014)
Formerly Known As :	RAYBAN SUN OPTICS INDIA LIMITED
Registered Office :	Space 810-811, Road No.20, RIICO Industrial Area, Phase-II, Bhiwadi-301019, District Alwar-301019, Rajasthan
Tel. No.:	91-1493-307600
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	28.05.1990
Com. Reg. No.:	17-008343
Capital Investment / Paid-up Capital :	Rs. 228.414 Million
CIN No.: [Company Identification No.]	U33201RJ1990PTC008343
IEC No.:	0590028596
TAN No.: [Tax Deduction & Collection Account No.]	JPRR02746C
PAN No.: [Permanent Account No.]	AAACB2586M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture and Trade of Frames and Sun Glasses.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 6513000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is subsidiary of “Luxottica US Holding Corp’’ USA. and is having satisfactory track record. As management failed to file the financials documents for the year ended 31.12.2014 to statutory authorities. And the documents are not been available from any sources. During FY 2013, the company achieved Rs. 843.200 Million sales turnover and reported 8.87% top line growth. Further company has shown the profitability margin of 35% backed by its zero debt balance sheet profile. Rating takes into account of company established track record of its business operations backed by its health financial position and financial as well as managerial support from its holding company. Trade relation are fair. Business is active. Payment are reported to be usually correct. In a view of decent financial profile backed by support from its holding company, company can be considered for business dealings with its usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

NOT AVAILABLE

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 31-03-2013.

INFORMATION DECLINED BY

Name :	Ms. Anu Verma
Designation :	Office Executive
Contact No.:	91-124-4545600
Date :	17.06.2015

LOCATIONS

Registered Office :	Space 810-811, Road No.20, RIICO Industrial Area, Phase-II, Bhiwadi-301019, District Alwar-301019, Rajasthan, India
Tel. No.:	91- 1493-307600
Fax No.:	91- 1493-307646
E-Mail :	harvindersingh@in.luxottica.com rayban.india@in.luxottica.com
Corporate Office:	Buiding No-9 B, 7^th Floor, DLF Cyber City, Phase 3, Gurgaon-122001, Haryana, India
Tel. No.:	91-124-4545600

DIRECTORS

AS ON 28.04.2014

Name :

Mr. Rabindra Nath Ghosh

Designation :

Director

Address :

Flat No. 203, Dakhinayan, Plot No. 19, Sector 4, Dwarka, Phase I, New Delhi-110075, India

Date of Birth/Age :

15.01.1943

Date of Appointment :

19.12.2001

DIN No.:

00194250

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	COMPANY/ LLP STATUS	DEFAULTING STATUS
1	U33201RJ1990PTC008343	RAYBAN SUN OPTICS INDIA PRIVATE LIMITED	DIRECTOR	19-12-2001	19-12-2001	ACTIVE	NO
2	U29193MH1981FLC024364	UTC FIRE AND SECURITY INDIA LIMITED	ADDITIONAL DIRECTOR	25-03-2015	25-03-2015	ACTIVE	NO

Name :

Mr. Enrico Mistron

Designation :

Director

Address :

Via Col DI Salce No. 95, Belluno-32100, Italy

Date of Birth/Age :

24.10.1969

Qualification :

Degree in Economics and Commerce

Date of Appointment :

25.09.2002

DIN No.:

00995785

Name :

Mr. Luigi Francavilla

Designation :

Director

Address :

Via Paganini 46, Agordo, Belluno-32021, Italy

Date of Birth/Age :

12.06.1937

Qualification :

Degree in Business Administration

Date of Appointment :

25.09.2002

DIN No.:

00290139

Name :

Mrs. Anshu Gupta

Designation :

Managing director

Address :

B - 203, Park View City - 1, Sohna Road,, Gurgaon, 122001, Haryana, INDIA

Date of Birth/Age :

05.05.1964

Qualification :

B.E (Mechanical ) and Masters in International Business

Experience :

27 Years

Date of Appointment :

01.05.2008

PAN No.:

ABAPG9083C

DIN No.:

02154567

Name :

Mr. Amitabh Sehdev

Designation :

Director

Address :

C 1 595 First Floor, Cosmos Floors, Palam Vihar, Gurgaon-122017, Haryana, India

Date of Birth/Age :

16.04.1971

Qualification :

B.Sc, MBA

Date of Appointment :

25.04.2012

DIN No.:

03510333

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	Company/ llp status	Defaulting status
1	U33201RJ1990PTC008343	RAYBAN SUN OPTICS INDIA PRIVATE LIMITED	DIRECTOR	25-04-2012	28-07-2011	ACTIVE	NO

Name :

Mr. Michael A Boxer

Designation :

Director

Address :

501, Cold Spring Road, Laurel Hollow Ny, Na, United States of America

Date of Birth/Age :

17.11.1961

Qualification :

Degree in Law

Date of Appointment :

25.04.2012

DIN No.:

05197355

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	Company/ LLP Status	Defaulting status
1	U33201RJ1990PTC008343	RAYBAN SUN OPTICS INDIA PRIVATE LIMITED	Director	25-04-2012	15-02-2012	Active	NO

KEY EXECUTIVES

Name :	Ms. Anu Verma
Designation :	Office Executive
Name :	Mr. Pawan Chhatwal
Designation :	Chief Financial Officer and Commercial Services Head
Name :	Mr. Harvinder Singh
Designation :	Secretary
Address :	C-8, Street 9, New Gobind Pura, Delhi-110051, India
Date of Birth/Age :	27.07.1974
Qualification :	B.Com.(H) LL.B, ACS
Experience :	14 Years
Date of Appointment :	24.06.2006
PAN No.:	APSPS3795R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.04.2014

Names of Shareholders	No. of Shares
Luxottics U S Holdings Corp, USA	22837265
Luxottica Holland B V , Netherlands	1
Sunglass Hut Trading LLC, USA	1
The United States Shoe Corporation, USA	1
Luxottica Sun Corp, USA	1
Arncttc Optic Illusions INC, USA	1
Luxottica Trading and Finance Limited, Ireland	1
Total	22837271

AS ON 28.04.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Trade of Frames and Sun Glasses.

Products :

ITC Code No.	Product Descriptions
90031100	Frames and Mountings for Spectacles, Goggles or the Like, and Parts Thereof

Brand Names :

“RAYBAN”

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

Facilities :

--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Building No.8, 7^th and 8th Floor, Tower-B, DLF Cyber City , Gurgaon-122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAHFP0187A
Memberships :	--
Collaborators :	--
Holding Company :	Luxottica US Holdings Corporation, USA
Fellow Subsidiary Company :	· Luxottica Capital, Italy · Luxottica Tristar (DongGuan) Optical Company Limited, china · Luxottica Trading and Finance Limited, Ireland · Luxottica India Eyewear Private Limited, India (U33110HR2007FTC037390)
Associate :	Luxottica Group S.P.A, Italy

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
34950000	Equity Shares	Rs. 10/- each	Rs. 349.500 Million
5000	Preference Shares	Rs. 100/- each	Rs. 0.500 Million
	Total		Rs. 350.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22837271	Equity Shares	Rs. 10/- each	Rs. 228.373 Million
6270	Add: Forfeited Shares		Rs. 0.041 Million
	Total		Rs. 228.414 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	228.414	244.771	244.771
(b) Reserves & Surplus	2051.097	1999.323	1660.475
(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)	2279.511	2244.094	1905.246
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	69.544	0.000	0.000
(d) long-term provisions	148.167	106.243	136.933
Total Non-current Liabilities (3)	217.711	106.243	136.933
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	107.359	45.544	75.851
(c) Other current liabilities	97.803	37.803	22.521
(d) Short-term provisions	4.635	30.537	15.655
Total Current Liabilities (4)	209.797	113.884	114.027
TOTAL	2707.019	2464.221	2156.206
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	66.345	74.759	79.328
(ii) Intangible Assets	98.452	4.658	19.794
(iii) Capital work-in-progress	0.260	0.089	0.338
(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)	30.977	29.168	34.190
(d) Long-term Loan and Advances	125.015	87.661	103.083
(e) Other Non-current assets	13.983	13.127	555.302
Total Non-Current Assets	335.032	209.462	792.035
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	178.749	144.066	89.307
(c) Trade receivables	249.859	209.624	114.114
(d) Cash and cash equivalents	1876.112	1806.319	1102.993
(e) Short-term loans and advances	5.907	5.715	8.967
(f) Other current assets	61.360	89.035	48.790
Total Current Assets	2371.987	2254.759	1364.171
TOTAL	2707.019	2464.221	2156.206

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2013	31.12.2012	31.12.2011
	SALES
		Income	843.222	774.517	499.671
		Other Income	0.000	0.000	145.055
		TOTAL (A)	843.222	774.517	644.726
Less	EXPENSES
		Cost of Materials Consumed	168.807	135.334	120.093
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(3.105)	(12.135)	29.996
		Employees benefits expense	68.294	68.775	59.241
		Other expenses	128.483	51.891	53.113
		TOTAL (B)	362.479	243.865	262.443
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		480.743	530.652	382.283
Less	FINANCIAL EXPENSES (D)		2.016	1.750	2.884
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		478.727	528.902	379.399
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.579	26.049	26.295
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		444.148	502.853	353.104
Less	TAX (H)		146.564	164.004	114.452
	PROFIT/ LOSS AFTER TAX (G-H) (I)		297.584	338.849	238.652
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6.716	14.190	14.173
	TOTAL EARNINGS		6.716	14.190	14.173
	IMPORTS
		Raw Materials	261.655	125.781	64.113
	TOTAL IMPORTS		261.655	125.781	64.113
	Earnings Per Share (Rs.)		12.41	13.85	9.75

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.12.2013	31.12.2012	31.12.2011
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
Net Profit Margin (PAT / Sales)	(%)	35.29	43.75	47.76
Operating Profit Margin (PBDIT/Sales)	(%)	57.01	68.51	76.51
Return on Total Assets (PBT/Total Assets}	(%)	16.60	20.65	16.64
Return on Investment (ROI) (PBT/Networth)		0.19	0.22	0.19
Debt Equity Ratio (Total Liability/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		11.31	19.80	11.96

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	244.771	244.771	228.414
Reserves & Surplus	1660.475	1999.323	2051.097
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1905.246	2244.094	2279.511
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	499.671	774.517	843.222
		55.005	8.871

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	499.671	774.517	843.222
Profit	238.652	338.849	297.584
	47.76%	43.75%	35.29%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

FINANCIAL PERFORMANCE

During the year revenue from operations increased from Rs. 609.900 million in the previous year to Rs. 691.700 million in the current year registering a growth of 13.4% as compared to last year primarily due to increase in sale of manufactured goods during the year. Profit for the year has decreased to about 12.20% from last year i.e. from Rs. 338.800 million in the previous year to Rs. 297.600 million in the current year. Such decrease in Profit is caused due to discontinuation of trademark fees, steep volatility in foreign exchange during the year which resulted in foreign exchange loss and related increase in duty and SAP implementation cost. The accrual for C form demand by sales tax authorities also considerably impacted the profitability during the year. The Directors expect that profitability will improve in the year ahead.

The Directors do not recommend any dividend for the period.

OPERATIONS

The collection of indigenous manufactured sunglasses and optical frames were introduced with the new styles and models during the year. The demand for Optical framesgrew significantly. The Company introduced rimless optical frames and frames with multiple colour finishes. During the year the technologiesfor double color painting on frames and to manufacture half rim and rimless frames were adopted which helped in improving the product mix of the locally manufactured product in line with the market demand. In order to further improve the quality of the product, automation of soldering stations was implemented.

During the year, the five year exclusive License and Distribution Agreement dated 22 April, 2008 entered by the Company and with Luxottica Group S.p.A. (Luxottica) expired on 21 st April, 2013. Luxottica renewed the License agreement for another period of five years with respect to exclusive manufacturing rights and resell for the Indian eyewear product under the brand Ray Ban. The Company migrated into new Enterprise Resource Program namely SAP for Finance and Control function which will surely bring business efficiencies. There is plan to introduce SAP across all functions in future. Export of un-plated raw frames to Luxottica Group companies. continued on limited scale.

FUTURE PROSPECTS

The Company is in the process of introducing some new models of locally manufactured optical frames in the year 2014. The Company is exploring the possibility of simplifying the processes and the material flow in the manufacturing area in order to achieve more flexibility and improved services.

The Directors expect a steady growth in sales and improved profitability in 2014.

FIXED ASSETS:

Tangible Assets

· Land

· Building

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Leasehold Improvements

Intangible Assets

· Computer Software

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. 63.85
UK Pound	1	Rs. 101.00
Euro	1	Rs. 72.46

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAS
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		50

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.