MIRA INFORM REPORT

Report No. :	340300
Report Date :	08.09.2015

IDENTIFICATION DETAILS

Name :	SKECHERS SOUTH ASIA PRIVATE LIMITED
Registered Office :	A-2/132, Prateek Appartment, Paschim Vihar, Delhi - 110063
Tel. No.:	91-22-61589000
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	11.04.2012
Com. Reg. No.:	55-234193
Capital Investment / Paid-up Capital :	Rs.300.000 Million
CIN No.: [Company Identification No.]	U51909DL2012PTC234193
IEC No.:	0512020833
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AARCS3638L
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of footwear, footwear and accessories.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of "Skechers USA Benelux B.V., United States. It is an established company incorporated in the year 2012 having a moderate track record. Management of the company has not filed its financial with the government department for the year 2014. As per available financial of December 2013, the company has incurred some accumulated losses. Moreover, it is also to be noted that balance sheet of the company is totally debt free. Trade relations are reported to be fair. Business is active. Payments terms are reported to be slow but correct. In view absence of latest financial, 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 PARTED BY (GENERAL DETAILS)

Name :	Ms. Reema Shah
Designation :	Accounts Department
Contact No.:	91-22-61589000
Date :	07.09.2015

LOCATIONS

Registered Office :	A-2/132, Prateek Appartment, Paschim Vihar, Delhi – 110063, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	vinay.gupta@skechers.com reema.shah@skechers.com
Website :	www.skechers.com
Corporate Office :	A/1602, Lotus Corporate Park, Grampath, Laxmi nagar, Lgeshwari East, Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-61589000
Warehouse :	Located at Chennai, Tamilnadu, India

DIRECTORS

AS ON 31.03.2015

Name :

Mr. David Weinberg

Designation :

Director

Address :

2520, The Strand, Manhattan Beach, California, 90266, , United States Of America

Date of Birth/Age :

04.09.1950

Date of Appointment :

14.08.2012

DIN No.:

05245612

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	U51909DL2012PTC234193	SKECHERS SOUTH ASIA PRIVATE LIMITED	Director	14/08/2012	14/08/2012	-	Active	NO
2	U52100MH2014PTC253848	Skechers Retail India Private Limited	Additional director	10/10/2014	10/10/2014	-	Active	NO

Name :

Mr. Michael Steven Greenberg

Designation :

Director

Address :

200 The Strand, Manhattan Beach, California, 90266, United States of America

Date of Birth/Age :

19.02.1963

Date of Appointment :

14.08.2012

DIN No.:

05245605

Name :

Mr. Swaroopchand Shobagchand Lodha

Designation :

Director

Address :

Plot No. 97/1 J B Nagar, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

18.04.1952

Date of Appointment :

11.04.2012

DIN No.:

00074335

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	U65921KA1996PTC020352	ASUTI TRADING PRIVATE LIMITED	Director	23/04/1996	23/04/1996	13/03/2008	Active	NO
2	U18101MH1997PTC109676	STITCHWELL GARMENTS PRIVATE LIMITED	Director	29/07/1997	29/07/1997	5/3/2008	Active	NO
3	U65921KA1996PTC020353	OPPORTUNE TRADING PRIVATE LIMITED	Director	29/05/1998	29/05/1998	-	Active	NO
4	U74140MH2002PTC136505	Peach Mercantile Private Limited	Director	14/12/2005	14/12/2005	10/11/2014	Active	NO
5	U74999MH2007PTC166931	Anika Merchants & Traders Private Limited	Director	30/09/2009	13/03/2009	1/10/2013	Active	NO
6	U55101MH2007PTC172953	Future Hospitality Private Limited	Director	30/09/2009	30/03/2009	29/09/2011	Active	NO
7	U70109MH2006PTC160395	Shivam Mall Management Company Private Limited	Director	30/09/2009	30/03/2009	5/3/2010	Active	NO
8	U70109MH2006PTC160388	Nirvana Mall Management Company Private Limited	Director	30/09/2009	30/03/2009	5/3/2010	Active	NO
9	U52190MH2006PTC160414	PAVITRA MALL MANAGEMENT COMPANY PRIVATE LIMITED	Director	30/09/2009	30/03/2009	23/03/2010	Active	NO
10	U70109MH2007PTC166935	ACME REALTY DEVELOPERS PRIVATE LIMITED	Director	30/09/2009	30/03/2009	27/11/2009	Active	NO
11	U74900KA2007PTC071171	Integrated Food Park Private Limited	Director	30/09/2009	30/03/2009	16/10/2010	Active	NO
12	U52100MH2007PTC167268	Pairs Retail India Private Limited	Director	21/09/2010	4/1/2010	30/03/2013	Active	NO
13	U74999MH2007PTC167999	Aman Syntex Private Limited	Director	30/09/2010	27/02/2010	1/10/2013	Active	NO
14	U15316MH2010ULT204160	MAYS FOODS PRIVATE LIMITED	Director	14/06/2010	14/06/2010	-	Active	NO
15	U45200MH2004PTC150320	MARUTI DWELLERS PRIVATE LIMITED	Director	9/5/2011	9/5/2011	20/12/2012	Active	NO
16	U51909DL2012PTC234193	SKECHERS SOUTH ASIA PRIVATE LIMITED	Director	11/4/2012	11/4/2012	-	Active	NO
17	U70103MH2012PTC231662	Taquito Lease Operators Private Limited	Director	7/1/2014	7/1/2014	-	Active	NO
18	U70200MH2014PTC253799	Genuine Asset Operators Private Limited	Director	4/3/2014	4/3/2014	-	Active	NO

Name :

Mr. Sameer Swaroopchand Lodha

Designation :

Alternate director

Address :

Plot No. 97/1 J B Nagar, Mumbai - 400059, Maharashtra, India

Date of Birth/Age :

21.11.1975

Date of Appointment :

25.06.2013

DIN No.:

00091180

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	U65921KA1996PTC020352	ASUTI TRADING PRIVATE LIMITED	Director	23/04/1996	23/04/1996	13/03/2008	Active	NO
2	U51900MH1995PTC091588	HYPERION MERCANTILE PRIVATE LIMITED	Director	3/5/2003	3/5/2003	20/11/2014	Active	NO
3	U72300MH2011PTC223881	C3 TECHNOLOGIES PRIVATE LIMITED	Director	14/11/2011	14/11/2011	-	Active	NO
4	U51909DL2012PTC234193	SKECHERS SOUTH ASIA PRIVATE LIMITED	Alternate director	25/06/2013	25/06/2013	-	Active	NO

Name :

Mr. Marvin Jeffrey Bernstein

Designation :

Additional director

Address :

Avenue Verdeil 9, 1005 Lausanne, Switzerland, Lausanne, 1005, Switzerland

Date of Appointment :

06.12.2014

DIN No.:

07046424

Name :

Mr. Ameet Panchal

Designation :

Additional director

Address :

1003, Atmaj, 94/C,, A.K.Marg, Gamdevi, Mumbai - 400036, Maharashtra, India

ate of Appointment :

15.04.2015

DIN No.:

02091615

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	U18101MH1997PTC109676	STITCHWELL GARMENTS PRIVATE LIMITED	Director	30/09/2008	8/4/2008	20/09/2011	Active	NO
2	U52100MH2011PLC221613	Shree Balaji Ethnicity Retail Limited	Additional director	25/02/2015	25/02/2015	-	Active	NO
3	U52100MH2014PTC253848	Skechers Retail India Private Limited	Additional director	15/04/2015	15/04/2015	-	Active	NO
4	U51909DL2012PTC234193	SKECHERS SOUTH ASIA PRIVATE LIMITED	Additional director	15/04/2015	15/04/2015	-	Active	NO

Name :

Mr. Mariano Bravo Jr

Designation :

Alternate director

Address :

105, Oak Tree Dr, Glendora, CA91741, United States of America

Date of Appointment :

30.07.2015

DIN No.:

07251790

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	U52100MH2014PTC253848	Skechers Retail India Private Limited	Additional director	30/07/2015	30/07/2015	-	Active	NO
2	U51909DL2012PTC234193	SKECHERS SOUTH ASIA PRIVATE LIMITED	Alternate director	30/07/2015	30/07/2015	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rahul Mahendra Vira
Designation :	Chief executive Officer
Address :	105, 24B, Krishna Jyot, Garodia Nagar, Ghatkopar (East), Mumbai - 400077, Maharashtra, India
Date of Appointment :	15.04.2015
PAN No:	AAYPV3168N
Name :	Ms. Reema Shah
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2013

Names of Shareholders	No. of Shares
Skechers USA Benelux BV, United States	15300000
Tirumal Trading and Investment Consultants Private Limited, India	14700000
Total	30000000

AS ON 17.01.2015

Names of Allottees	No. of Shares
Skechers USA Benelux, Netherland	3060000
Tirumal Trading and Investment Consultants Private Limited, India	2940000
Total	6000000

Equity Share Break up (Percentage of Total Equity)

AS ON 28.08.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of footwear, footwear and accessories.
Products :	Footwear, footwear and accessories
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :
Products :	Footwear and accessories
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Retailers and End Users

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

No. of Employees :

30 (Approximately)

Bankers :

Banker Name	HSBC Bank
Branch Address	Gurgaon, Haryana, 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

Auditors :
Name :	M Z S K and Associates Chartered Accountant
Address :	The Ruby North West Wing 9^th Floor, Senapati Bapat Marg, Dadar West, Mumbai – 400028, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACFK3470E
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company:	Skechers USA (from 10 September 2012)
Holding Company:	Skechers USA Benelux B.V., United States
Fellow Subsidiary:	Skechers SARL
Entity owned by significant shareholder:	Tirumal Trading and Investment Consultants Private Limited

CAPITAL STRUCTURE

AS ON 28.08.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
36000000	Equity Shares	Rs.10/- each	Rs. 360.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36000000	Equity Shares	Rs.10/- each	Rs. 360.000 Million

AS ON 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
36000000	Equity Shares	Rs.10/- each	Rs. 360.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	300.000	168.000
(b) Reserves & Surplus	(111.363)	(32.497)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	188.637	135.503
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.500	0.096
Total Non-current Liabilities (3)	0.500	0.096
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	51.956	35.489
(c) Other current liabilities	33.298	32.252
(d) Short-term provisions	26.788	8.559
Total Current Liabilities (4)	112.042	76.300
TOTAL	301.179	211.899
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.872	0.248
(ii) Intangible Assets	0.359	0.632
(iii) Capital work-in-progress	4.388	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.200	0.200
Total Non-Current Assets	13.819	1.080
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	70.964	79.498
(c) Trade receivables	131.121	88.931
(d) Cash and cash equivalents	80.218	41.680
(e) Short-term loans and advances	1.798	0.705
(f) Other current assets	3.259	0.005
Total Current Assets	287.360	210.819
TOTAL	301.179	211.899

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012
	SALES
	Income	310.180	97.920
	Other Income
	TOTAL	310.180	97.920
Less	EXPENSES	389.050	130.420
	PROFIT/ (LOSS) BEFORE TAX	(78.870)	(32.500)
Less	TAX	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	(78.870)	(32.500)
	Earnings / (Loss) Per Share (Rs.)	(2.63)	(1.93)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.12.2013	31.12.2012
Current Maturities of Long term debt	NA	NA
Cash generated from operations	NA	NA
Net cash flows from (used in) operations	(78.866)	(32.497)

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012
Return on Total Assets (PBT/Total Assets}	(%)	(26.57)	(15.34)
Return on Investment (ROI) (PBT/Networth)		(0.42)	(0.24)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.56	2.76

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)
Share Capital	168.000	300.000
Reserves & Surplus	(32.497)	(111.363)
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	135.503	188.637
long-term borrowings	0.000	0.000
Short term borrowings	0.000	0.000
Total borrowings	0.000	0.000
Debt/Equity ratio	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)
Total Income	97.920	310.180
		216.769

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)
Total Income	97.920	310.180
Profit	(32.500)	(78.870)
	(33.19%)	(25.43%)

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	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)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
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	No
26	Turnover of firm for last two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two 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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONAL OUTLOOK

This being the second year of operations of the Company, the Company has incurred a loss of INR 78.87 Million (Previous Year: INR 32.50 Million) as an initial year of operations and setting up operation network and brand setting up. The percentage of loss on the Net sales have been dropped to 25.42 % compared to 33.19 % on the year to year basis. The Company has 21 no. of employees as at 31st December, 2013 and 26 employees as on the date and contributed well in team building. With continuous market outlook, understanding the customer needs and preferences for design, quality and comfort remained another focus area. Improvement of overall product performance by implementing the planned strategies, bringing in new developments and product improvements based on consumer research have helped the Company achieve an unprecedented performance during the year.

The Company continues to introduce contemporary and fashionable designs in its product range. Special attention has been provided to improve the product, varierty, color options and style of footwear in each category. In every season throughout the year 2013 and outlook for 2014 will be to having a larger product range available vis-à-vis the International market. An exclusive range of ladies footwear and a variety of products for the kids and children were launched, which have been well accepted by the customers.

The Company is in process of opening Exclusive Business Outlets under the Franchisee Model of Trade to foster contemporary growth and attract the customer for innovative product range under one roof which will be continued in 2014.

The Company’s Gowalk, Gorun, and Skechers Sports range of products are very well accepted in the market The Skechers Group is committed to these products series for future growth and new product range.

AWARDS AND RECOGNITION

Mr. Sanjeev Agrawal, Managing Director of the Company; has been awarded Star Retailer Awards 2013 as Retail Professional of the Year 2013, which has made us all proud.

BACKGROUND

Subject is global leader in the lifestyle footwear industry and a high-performance footwear brand, SKECHERS USA, Inc. designs, develops and markets more than 3,000 styles for men, women and children. Skechers success stems from its employees, high-quality, varied product offering, diversified domestic and international distribution channels, and targeted multi-channel marketing.

The Company offers footwear categories: a lifestyle products that includes the charity line BOBS from SKECHERS, and a performance division that includes Skechers GOrun, Skechers GOwalk and Skechers GObionic footwear.

Subject was incorporated on 11 April 2012. It is a Joint Venture between, Skechers USA, through its subsidiaries and Tirumal Trading and Investment Consultants Private Limited.

FIXED ASSETS

Tangible assets

• Office equipment
• Computer equipments
• Other equipments
• 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.66.74
UK Pound	1	Rs.101.36
Euro	1	Rs.74.27

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		31

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.