MIRA INFORM REPORT

Report Date :

7^TH June 2006

IDENTIFICATION DETAILS

Name :	HENKEL CAC PRIVATE LIMITED
Formerly Known As :	CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED
Registered Office :	906 Embassy Centre, Nariman Point, Mumbai – 400021, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	20.03.1984
Com. Reg. No.:	11-32433
TAN No.: [Tax Deduction & Collection Account No.]	MUMC11050E
PAN No.: [Permanent Account No.]	AAACC5534A
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in Prepared Adhesives based on Plastics, Modified Polyureth ane Resin Solution and Modified Polyester Resin Solution

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company and now a part of Henkel Germany. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company is doing very well. It can be regarded a very good business partner in a medium to long run.

LOCATIONS

Registered Office/ Head Office :	906 Embassy Centre, Nariman Point, Mumbai – 400021, India
Tel. No.:	91-22-22855388
Fax No.:	91-22-22873995
E-Mail :	info@cacindia.com
Website :	http://www.cacindia.com
Factory 1 :	D- 73/2, TTC Industrial Area, Off Thane Belapur Road, turbhe Naka, navi Mumbai , Maharashtra, India
Tel. No.:	91-22-27672495 / 27670987
Fax No.:	91-22-27672496

DIRECTORS

Name :	Ravindra Roshanlal Talwar
Designation :	Managing Director
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	05/10/1945
Qualification :	Ph. D (USA)
Experience :	31 years
Date of Appointment :	20/03/1984
Name :	Sucheta Ravindra Talwar
Designation :	Direcor
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15/11/1947
Date of Casing :	20/03/1984
Qualification :	B. A.
Experience :	20 years
Date of Appointment :	24/02/2005
Name :	Priya Rishab Kapur
Designation :	Director
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	11/05/1974
Date of Appointment :	01/01/2004
Name :	Gaurav Ravindra Talwar
Designation :	Director
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15/07/1976
Date of Appointment :	01/01/2004
Name :	Offergeld Hans Josef Thomas
Designation :	Direcor
Address :	AM Heidberg 37, Duesseldorf, Germany – 40191
Date of Birth/Age :	10/02/1964
Date of Appointment :	24/02/2005
Name :	Arig Ahmet Nevzat Niyazi Faruk
Designation :	Director
Address :	Henkel Singapore Private Limited, 19, Jurongport Road, Singapore – 619093
Date of Birth/Age :	14/07/1952
Date of Appointment :	24/02/2005
Name :	B Ramalingam
Designation :	Director
Address :	101, Brimmer Court Cary, NC 27511, USA – 27511
Date of Birth/Age :	28/09/1954
Date of Appointment :	24/02/2005
Name :	Man – Ying Cheung
Designation :	Director
Address :	Flat A, 5/F, Tower 2, Robinson Heights, No. 8, Robinons Road, Hongkong.
Date of Birth/Age :	22/08/1966
Date of Appointment :	24/02/2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Ravindra Roshanlal Talwar	44400
Sucheta Ravindra Talwar	32400
Priya Rishab Kapur	49400
Gaurav Ravindra Talwar	43800
Wham Leasing and Investments Private Limited	38400
Henkel Loctite India Private Limited	431600
Gaurav Ravindra Talwar	23600
Henkel Loctite India Private Limited	64000
Sucheta Ravindra Talwar	18400
Ravindra Roshanlal Talwar	30400
Henkel Loctite India Private Limited	47000
Priya Rishab Kapur	35400
Gaurav Ravindra Talwar	6200
Henkel Loctite India Private Limited	124000
Wham Leasing and Investments Private Limited	38400
Gaurav Ravindra Talwar	14000
Priya Ravindra Talwar	14000
Henkel Loctite India Private Limited	52600
Sucheta Ravindra Talwar	14000
Ravindra Roshanlal Talwar	14000
Henkel Loctite India Private Limited	144000

BUSINESS DETAILS

Line of Business :

The company is engaged in Prepared Adhesives based on Plastics, Modified Polyureth ane Resin Solution and Modified Polyester Resin Solution

Products :

Item Code No.(ITC Code No.)	Product Description
35069190	Prepared Adhesives based on Plastics
39095000	Modified Polyureth ane Resin Solution
39079790	Modified Polyester Resin Solution

PRODUCTION STATUS

Particulars	Unit	Actual Production
Laminating Adhesives	Kgs.	8679992.62

s

GENERAL INFORMATION

Suppliers :

v Bootale Products

v Bago Cans

v Commander Corrugates

v Deccan Cans

v New Bombay Drugs Company

v Packing Remedies

v Sai Prasad Containers

Bankers :

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

Facilities :

Secured Loan	(Rs in millions)
Banks
Term loan	8.603
Cash Credit	4.414
Bills Discounted	27.632
Term Loans are secured by equitable mortgage of plot of land situated at D – 74/6 TTC and personally guaranteed by the Dr, R. Talwar a director of the company and Mrs. S Talwar Ex Director of the company hypothecation of specific assets with financing banks
Cash credit and bills discounting are secured by hypothecation of Stocks of raw and packing materials. Fuel oils, finished goods, books debts and other receivables certain items of plant and machinery and other movables both present and future, joint equitable mortgage of plot of land and factory building situated at D – 74/6 TTC and personally guaranteed by the Dr, R. Talwar a director of the company and Mrs. S Talwar Ex Director of the company hypothecation of specific assets with financing banks
Amount repayable against term loan within one year Rs. 2.806 millions

Banking Relations :	Good
Auditors :	Gautam G. Parekh Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
640000	Equity Shares	Rs. 10/- each	Rs. 6.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		6.400	6.400
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		184.229	182.320
4] (Accumulated Losses)		0.000	0.000
NETWORTH		190.629	188.720
LOAN FUNDS
1] Secured Loans		40.651	46.194
2] Unsecured Loans		16.195	21.522
TOTAL BORROWING		56.846	67.716
DEFERRED TAX LIABILITIES		8.340	8.775
TOTAL		255.815	265.211
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		134.417	140.621
Capital work-in-progress
INVESTMENT		0.000	16.653
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	94.707	62.370
	Sundry Debtors	174.578	149.969
	Cash & Bank Balances	8.488	2.552
	Other Current Assets	0.000	0.000
	Loans & Advances	14.301	11.822
Total Current Assets		292.074	226.713
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	166.810	117.003
	Provisions	3.866	1.773
Total Current Liabilities		170.676	118.776
Net Current Assets		121.398	107.937
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		255.815	265.211

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	808.474	618.091
Profit/(Loss) Before Tax	23.055	52.637
Provision for Taxation	10.215	17.725
Profit/(Loss) After Tax	12.840	34.912
Export Value	152.316	114.514
Import Value	227.675	125.030
Total Expenditure	785.418	565.454

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	1.59	5.64
Net Profit Margin (PBT/Sales)	(%)	2.85	8.52
Return on Total Assets (PBT/Total Assets}	(%)	5.41	14.33
Return on Investment (ROI) (PBT/Networth)		0.12	0.28
Debt Equity Ratio (Total Liability/Networth)		1.19	0.99
Current Ratio (Current Asset/Current Liability)		1.71	1.91

LOCAL AGENCY FURTHER INFORMATION

The original name was CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED which was changed in January, 2006 to HENKEL CAC PRIVATE LIMITED

Fixed Assets :

v Land Leasehold

v Building

v Plant and Machinery

v Computer

v Office equipments

v Furniture and fixture

v Air conditioners

v Motor cars

v Software licenses

v Books

Financial Highlights

Net sales for the year ended amounted to Rs. 786.25 millions as compared to Rs. 605.54 millions achieved during the precious year.

Profit before taxation for the year totalled Rs. 23.10 million against Rs. 52.64 million during the previous financial year.

Profit available for appropriation as at 31^st March 2005 is Rs. 70.08 million as compared to Rs. 91.76 million available during the previous year.

The turnover of the company increased significantly as compared to the previous year as indicated by the figures in the following table :

Particular	Increase in Sales (Value)	Increase in Sales (Quality)
Domestic Sales	29.06 %	23.33 %
Export Sales	33.08 %	43.86 %

However the unprecedented rise in the prices of the raw material had a sever negative impact on the margin of the company.

Dividend and Reserves

An interim dividend aggregating to Rs. 15 per equity share was paid during the year. the directors do not recommended any final dividend. An amount of Rs. 1.5 million has been transferred to General Reserve.

Alliance with Henkel

During the year. Henkel Loctite India Private Limited a company belonging to Henkel KG acquired majority shareholding of the company from the promoter shareholders. This market a historic event in the life of the company. Being a part of the Henkel Group opens up a new world of opportunities for the company. The co0mpany foresees tremendous potential in both domestic and international market. New areas of cooperation are expected in the field of Research and Development. The company will generally benefit from experience and expertise of Henkel.

Mrs. Sucheta Talwar resigned form the Board of the Company. As Henkel nominees Mr. Thomas Offergeld. Mr. Niyazi Faruk Arig, Mrs. Cheung Man Ying and Mr. B Ramalingam hoined the Board of directors of the company.

Name of the company

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

Presented By

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

1) Date and description of instrument creating the change

Composite Hypothecation agreement dated 3^rd February, 2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 10.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Borrowers stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit whether now belonging to or that may at any time during the continuance of this security belonging to t he Borrower or that may be held by any party anything to the order and disposition of the borrower.,

All the present and future book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi8 government body or authority whatsoever including those relating to the assets leased out and given on hire purchase basis.

4) Gist of the terms and conditions and extent and operation of the charge.

The charges is created to secured letter of credit facility

Commission as per Banks Guidelines

Margin – 10 %

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

Name of the company

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

Presented By

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

1) Date and description of instrument creating the change

Letter of Pari – Passu and Hypothecation of Stocks, Book debts and machinery dated 29.03.2003

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 50.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All the stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit to our premises or at any other place whatsoever in our possession or occupation or at any other premises or place.

All the book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi government body or authority or any body or undertaking or project whatever in the public sector.

All the movable plant and machineries both present and future the present list of movable assets are attached herewith in schedule beign moveable properties now stored at present and also the plant and machinery which many at any time hereafter belonging t us.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 12 % p.a. such other rate as approved by the bank form time tot ime Margin 25 % on Stock and Book Debts

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

6) Date and brief description of instrument modifying the charge

Supplemental letter of hypothecation of stock, book dents and machinery 04.03.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Present Modification dated 04.03.2005

Facility	Old Limit	Addl Limit	New Limit
Cash Credit / WCDL / EPC/ FBP/ FBN	Rs. 30.000 millions	Rs. 40.000 millions	Rs. 40.000 millions
Letter of Credit	Rs. 20.000 millions	--	Rs. 20.000 millions
	Rs. 50.000 millions	Rs. 10.000 millions	Rs. 60.000 millions

Name of the company

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

Presented By

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

1) Date and description of instrument creating the change

Composite Hypothecation agreement dated 15^th October, 2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 10.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Borrowers stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit whether now belonging to or that may at any time during the continuance of this security belonging to t he Borrower or that may be held by any party anything to the order and disposition of the borrower.,

All the present and future book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi8 government body or authority whatsoever including those relating to the assets leased out and given on hire purchase basis.

4) Gist of the terms and conditions and extent and operation of the charge.

The charges is created to secured letter of credit facility

Commission as per Banks Guidelines

Margin – 10 %

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

Name of the company

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

Presented By

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

1) Date and description of instrument creating the change

Composite Hypothecation agreement dated 24^th February, 1999

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 33.400 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Borrowers stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit whether now belonging to or that may at any time during the continuance of this security belonging to t he Borrower or that may be held by any party anything to the order and disposition of the borrower., All the present and future book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi8 government body or authority whatsoever including those relating to the assets leased out and given on hire purchase basis. And all tangible moveable machinery and plat and cranes, boats crafts and the vehicles of the borrower together with spares tools and accessories and other vehicles or the bothe present and future and the furniture, Fixtute and fittings whether installed or not and whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be stored or be in or upon or about the borrower premises and godwn or wherever else the same . the above charge will bank pari passu with ICICI Banking corporation Limited

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of Interest @ 3 % OPLR + Interest Tax and as per FRDAI rules. Repayment on demand Margin for cash credit – 25 % Cash credit : 25 % L/C 10 % And for Bank Guarantee : 10 %

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

6) Date and brief description of instrument modifying the charge

Memorandum of Entry dated 15.10.2001

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The limit is increased from Rs. 33.400 million to 42.200 millions details given below.

Facility	Old Limit (Rs in millions)	New Limit(Rs in millions)
Cash credit	8.000	5.000
Cash credit	9.000	12.000
BP/BD/FBP	3.000	3.000
Inland / Import	11.200	20.000
Bank Guarantee	2.200	2.200

And the charges is further secured by way of Equitable Mortgage by deposit of title deeds of immovable properties :

Plot of land satiated D – 73/2 TTC industrial area off thane Turbhe Naka Navi Mumbai – 400613

Office premises 906 situated at 9^th floor Embassy centre, Nariman Point Mumbai – 400021 admeasuring 975 sq. ft. carpet area with underground car parking space No. 20

Office premise 1011 situated at 10^th floor embassy center Nariman Point

Whether with all building and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth and all fixture and fitting bothy presently constructed attached installed and to the above charge will bank pari passu with ICICI Banking corporation Limited

Sub limit removed L/ C interchangeable between DA and Sight DA usance period increased to 120 days.

Now by the present modificat5ion the charge is further secured by way of Equitable mortgage by deposit of title deeds of immovable property at office premises No. 907 admeasuring about 975 sq. f.t on the 9^th floor building named Embassy Center situate at Plot No,. 207, Backbay Reclamation, Colaba together with all building and structures thereon and all plant and machinery attacked and installed and to be constructed, attached or installed in the future thereon. Other terms and conditions remains unchanged.

Name of the company

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

Presented By

CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED

1) Date and description of instrument creating the change

Letter of Pari – Passu and Hypothecation of Stocks, Book debts and machinery dated 29.03.2003

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 50.000 millions

For Funded Facility	Rs. 20.000 millions
Non- Funded Facilities	Rs. 22.200 millions
Total	Rs. 42.200 millions

Bank Limited Term Loan : Rs. 45.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All the stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit to our premises or at any other place whatsoever in our possession or occupation or at any other premises or place.

All the book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi government body or authority or any body or undertaking or project whatever in the public sector.

All the movable plant and machineries both present and future the present list of movable assets are attached herewith in schedule beign moveable properties now stored at present and also the plant and machinery which many at any time hereafter belonging t us.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 12 % p.a. such other rate as approved by the bank form time tot ime Margin 25 % on Stock and Book Debts

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Nariman point Branch, Mumbai - 4000021

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

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 records 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.45.92
UK Pound	1	Rs.84.62
Euro	1	Rs.58.03

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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
TOTAL		72

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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