MIRA INFORM REPORT

Report No. :	342980
Report Date :	01.10.2015

IDENTIFICATION DETAILS

Name :	A B COTSPIN INDIA LIMITED (w.e.f. 24.12.2010)
Formerly Known As :	GANGA COTTEX LIMITED
Registered Office :	53, Homeland Enclaves, Bathinda – 151001, Punjab
Tel. No.:	91-164-2270752
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	23.06.1997
Com. Reg. No.:	16-020118
Capital Investment / Paid-up Capital :	Rs. 24.694 Million
CIN No.: [Company Identification No.]	U17111PB1997PLC020118
IEC No.:	3009018304
TAN No.: [Tax Deduction & Collection Account No.]	AMRA14154A
PAN No.: [Permanent Account No.]	AAACG5789P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of cotton yarn and fabrics.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1997. It is having moderate track record. Rating takes into consideration weak financial position of the company characterized by low profitability and leveraged capital structure in FY14. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings 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 – 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

Rating Agency Name	CRISIL
Rating	Long Term Rating = BB- (Susupended)
Rating Explanation	Inadequate credit quality and high credit risk
Date	June 18, 2015

Reason for Suspension: Absence of Adequate information from company.

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Arun
Designation :	Accountant
Contact No.:	91-8872012702
Date :	29.09.2015

LOCATIONS

Registered Office :	53, Homeland Enclaves, Bathinda – 151001, Punjab, India
Tel. No.:	91-164-2270752
Mobile No.:	91-8872012702
Fax No.:	91-164-2270751
E-Mail :	info@abcotspin.in
Website :	http://www.abcotspin.in
Location :	Owned
Locality :	Commercial
Factory :	Bathind Road, Butu Mandi, Faridkot – 151202, Punjab, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Rahul Goyal

Designation :

Director

Address :

M/S Goyal Industries, Near Railway Line, Raman Distt. Bathinda, Raman – 151301, Punjab, India

Date of Appointment :

15.12.2010

DIN No.:

02633747

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	U18104PB1998PTC038461	HM OVERSEAS PRIVATE LIMITED	Director	22/04/2009	22/04/2009	18/12/2010	Active	NO
2	U24100JK2003PLC002277	APEX FIBRE INDIA LIMITED	Director	01/11/2010	01/11/2010	26/11/2014	Active	NO
3	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	15/12/2010	15/12/2010	-	Active	NO
4	U74140PB2013PTC037116	A B INFRA INVESTMENTS PRIVATE LIMITED	Director	20/02/2013	20/02/2013	30/09/2013	Active	NO
5	U15122DL2012PTC242782	AB SOYA PRIVATE LIMITED	Director	23/10/2013	26/04/2013	-	Active	NO
6	U70101DL2005PTC140561	HOMELAND BUILDWELL PRIVATE LIMITED	Additional director	29/12/2014	29/12/2014	-	Active	NO

Name :

Samita Goyal

Designation :

Director

Address :

# 54 Homeland Enclave, Goniana Road, Bathinda – 151001, Punjab, India

Date of Appointment :

01.07.2011

DIN No.:

03415630

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	U24100JK2003PLC002277	APEX FIBRE INDIA LIMITED	Director	17/03/2011	17/03/2011	15/02/2015	Active	NO
2	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	01/07/2011	01/07/2011	-	Active	NO

Name :

Deepak Garg

Designation :

Director

Address :

The Mall, Goniana – 151201, Punjab, India

Date of Appointment :

26.08.2014

DIN No.:

00843929

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	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	30/09/2014	23/06/1997	-	Active	NO
2	U18202DL2014PTC263955	H A COTSPIN PRIVATE LIMITED	Director	30/12/2014	06/02/2014	-	Active	NO

Name :

Umang Jindal

Designation :

Director

Address :

18, Chander Lok, Pitam Pura, Delhi – 110034, India

Date of Appointment :

12.04.2014

DIN No.:

03084625

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	U55101DL2007PTC159810	V.K.RAJ RESORT PRIVATE LIMITED	Director	02/01/2012	02/01/2012	25/10/2012	Active	NO
2	U15142DL1999PLC242049	SHREE JINDAL SOYA LIMITED	Director	18/06/2012	18/06/2012	-	Active	NO
3	U15209DL2013PTC248011	IS PROTEINS PRIVATE LIMITED	Director	24/10/2013	16/03/2013	-	Active	NO
4	U70101DL2013PTC248017	ISHA LANDBASE PRIVATE LIMITED	Additional director	24/04/2013	24/04/2013	29/04/2013	Active	NO
5	U70101DL2005PTC140561	HOMELAND BUILDWELL PRIVATE LIMITED	Director	20/09/2013	30/05/2013	-	Active	NO
6	U15122DL2012PTC242782	AB SOYA PRIVATE LIMITED	Director	30/09/2014	18/11/2013	-	Active	NO
7	U15549DL2012PTC238566	AB ALCOBEV PRIVATE LIMITED	Director	20/12/2013	20/12/2013	-	Active	NO
8	U17111PB1997PLC020118	A B COTSPIN INDIA LIMITED	Director	30/09/2014	12/04/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Arun
Designation :	Accountant

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Manohar Lal Garg	21000
Deepak Garg	169700
Pooja Garg	60000
Ram Sarup	56000
Ramesh Kumar	8280
Surinder Kumar	7800
Deepak Goyal	150000
Hemant Jindal	208000
Chand Rani	272620
Rahul Goyal	100000
Renu Jindal	456000
Umang Jindal	400000
Kewal Krishan Jindal	200000
Abhey Jindal	200000
Kewal Krishan Jindal (HUF)	80000
Hemant Jindal (HUF)	80000
Total	2469400

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	27.12
Other top fifty shareholders	72.88
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of cotton yarn and fabrics.
Products :	Not Divulged
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	China Malaysia
Imports :
Products :	Machinery
Countries :	Japan
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Suppliers :

Not Divulged

Reference :	R.S. Trading Company – Mumbai, Maharashtra, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesaler, Retailer and End Users

Reference :	Navyug Enterprises – Ludhiana, Punjab, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

200 (Approximately)

Bankers :

Banker Name	Punjab National Bank
Branch Address	Civil Lines, Bathinda, Bathinda – 151001, Punjab, 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)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• State Bank of India, Gonama, Bathinda – 151001, Punjab, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
PNB – Term loan	210.706	252.726
HDFC – Vehicle Loan	0.878	1.327
SHORT TERM BORROWING
PNB CC Limit From Bank	121.670	121.243
PNB CC Limit From Bank	39.995	0.000
State Bank of India – Pledge limit	0.000	99.678
Central Bank of India – Pledge limit	41.998	0.000
Yes Bank Limited – Pledge limit	37.235	0.000
Total	451.604	473.647

Auditors :
Name :	Raj Narain and Company Chartered Accountants
Address :	# 1038, Street No. 10, Ganesha Basti, Bathinda – 151001, Punjab, India
PAN No.:	AAJFR8886J
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
4600000	Equity Shares	Rs.10/- each	Rs. 46.000 Million
400000	Preference Shares	Rs. 10/- each	Rs. 4.000 Million
	Total		Rs. 50.000 Million

Issued, Subscribed Capital:

No. of Shares	Type	Value	Amount
2888400	Equity Shares	Rs.10/- each	Rs. 28.884 Million

Paid-up Capital:

No. of Shares	Type	Value	Amount
2469400	Equity Shares	Rs.10/- each	Rs. 26.654 Million

AFTER 30.09.2014

Authorised Capital: Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital: Rs. 24.694 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	26.654	26.654	9.914
(b) Reserves & Surplus	112.009	107.302	36.856
(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)	138.663	133.956	46.770
(3) Non-Current Liabilities
(a) long-term borrowings	316.539	318.545	386.844
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	73.189	73.188	73.189
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	389.728	391.733	460.033
(4) Current Liabilities
(a) Short term borrowings	240.898	220.921	138.727
(b) Trade payables	25.835	27.107	40.877
(c) Other current liabilities	2.623	7.727	3.764
(d) Short-term provisions	8.634	6.945	4.474
Total Current Liabilities (4)	277.990	262.700	187.842
TOTAL	806.381	788.389	694.645
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	363.239	409.291	448.265
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	8.972	1.064	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.050	0.050	0.050
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.115	0.613
(e) Other Non-current assets	3.934	4.036	3.426
Total Non-Current Assets	376.195	414.556	452.354
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	272.909	273.567	161.689
(c) Trade receivables	94.810	26.507	23.229
(d) Cash and cash equivalents	52.039	42.449	37.180
(e) Short-term loans and advances	10.428	31.310	20.193
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	430.186	373.833	242.291
TOTAL	806.381	788.389	694.645

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	998.975	866.555	221.164
	Other Income	4.139	6.151	0.241
	TOTAL	1003.114	872.706	221.405
Less	EXPENSES
	Cost of Materials Consumed	685.259	582.933	292.437
	Purchases of Stock-in-Trade	68.788	90.505	0.944
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(19.518)	(63.760)	(125.591)
	Employees benefits expense	40.175	40.490	11.066
	Other expenses	122.428	95.868	20.087
	TOTAL	897.132	746.036	198.943
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	105.982	126.670	22.462
Less	FINANCIAL EXPENSES	46.124	63.349	10.313
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	59.858	63.321	12.149
Less/ Add	DEPRECIATION/ AMORTISATION	53.718	59.043	11.952
	PROFIT BEFORE TAX	6.140	4.278	0.197
Less	TAX	1.433	0.793	0.000
	PROFIT AFTER TAX	4.707	3.485	0.197
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	7.038	3.553	3.355
	BALANCE CARRIED TO THE B/S	11.745	7.038	3.553
	Earnings Per Share (Rs.)	1.91	1.41	0.08

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operation	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.47	0.40	0.09
Operating Profit Margin (PBIDT/Sales)	(%)	10.61	14.62	10.16
Return on Total Assets (PBT/Total Assets}	(%)	0.77	0.54	0.03
Return on Investment (ROI) (PBT/Networth)		0.04	0.03	0.00
Debt Equity Ratio (Total Debt /Networth)		4.02	4.03	11.24
Current Ratio (Current Asset/Current Liability)		1.55	1.42	1.29

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	9.914	26.654	26.654
Reserves & Surplus	36.856	107.302	112.009
Share Application money pending allotment	0.000	0.000	0.000
Net worth	46.770	133.956	138.663
long-term borrowings	386.844	318.545	316.539
Short term borrowings	138.727	220.921	240.898
Current Maturities of Long Term Debt	0.000	0.000	0.000
Total borrowings	525.571	539.466	557.437
Debt/Equity ratio	11.237	4.027	4.020

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	221.164	866.555	998.975
		291.816	15.281

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	221.164	866.555	998.975
Profit	0.197	3.485	4.707
	0.09%	0.40%	0.47%

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	No
11	Pan Card No. of Proprietor / Partners	No
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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
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	Yes
32	Litigations that the firm/promoter involved in	-----
33	Market information	-----
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Unsecured loan	104.955	64.492
Total	104.955	64.492

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10562223	13/05/2015 *	180,000,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, BATHINDA, BATHINDA, Punjab - 151001,  INDIA	C60127099
2	10536511	27/05/2014	50,000,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, BATHINDA, BATHINDA, Punjab - 151001,  INDIA	C36900702
3	10536513	27/05/2014	1,123,500.00	PUNJAB NATIONAL BANK	CIVIL LINES, BATHINDA, BATHINDA, Punjab - 151001,  INDIA	C36901718
4	10472383	04/01/2014	508,500,000.00	PUNJAB NATIONAL BANK	CIVIL LINES BRANCH, BATHINDA, Punjab - 151001, INDIA	B94315025
5	10472381	03/01/2014	508,500,000.00	PUNJAB NATIONAL BANK	CIVIL LINES BRANCH, BATHINDA, Punjab - 151001, INDIA	B94314879
6	10411755	05/02/2013	120,000,000.00	STATE BANK OF INDIA	ADB BATHINDA GURU KASHI MARG, BATHINDA, Punjab - 151001, INDIA	B70759980
7	10325260	03/01/2014 *	200,000,000.00	PUNJAB NATIONAL BANK	CIVIL LINES BRANCH, BATHINDA, Punjab - 151001, INDIA	B94314598
8	10298161	17/06/2011	10,000,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, BATHINDA, Punjab - 151001, INDIA	B17196577
9	10298163	17/06/2011	330,000,000.00	PUNJAB NATIONAL BANK	CIVIL LINES, BATHINDA, Punjab - 151001, INDIA	B17196783

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Computer
• Furniture and Fixture
• Scooter
• Tractor and Trolly
• Car
• Mobile
• Lab Equipment

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. 66.18
UK Pound	1	Rs. 100.46
Euro	1	Rs. 74.61

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KIN
Report Prepared by :	JYO

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.