MIRA INFORM REPORT

Report Date :

13^th May, 2006.

IDENTIFICATION DETAILS

Name :	HI - REL COMPONENTS (INDIA) LIMITED
Registered Office :	Gat No. 402, 403 and 1098, Urawade, Taluka Mulshi, District –Pune – 412 108, Maharashtra, India
Country:	India
Financial as on:	31.03.2005
Date of Incorporation :	15^th September, 1986
CIN No.:	U29199MH1986PTC040909
Com. Reg. No.:	11-40909
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Multi Layer and Multi Wire Printed Circuit Boards, Prototype Circuit Boards for applications in Computers, Telecommunications and Industrial fields

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow but delayed
Litigation :	Unknown
Comments :	Subject is an old company having moderate track. Financial position is moderate. Payments are slow and delayed. Profit margin is insignificant. The company can be considered for small to mediocre business dealings on safe and secured trade terms and conditions.

LOCATIONS

Registered Office / Factory :	Gat No. 402, 403 and 1098, Urawade, Taluka Mulshi, District –Pune – 412 108, Maharashtra, India
Tel. No.:	91-20-22922001 / 22922002
Fax No.:	91-20-22922104
E-Mail :	hirelcomponents@vsnl.net
Website :	http://www.hirelindia.com
Area :	30000 sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. Ravindra G. Disa
Designation :	Chairman-cum-Managing Director
Address:	13, Shamsunder Society, Dattawadi,Pune – 411 030, Maharashtra, India.
Date of Birth/Age :	64 Years / 26.07.1942
Qualification:	C A
Experience :	40 Years
Date of Appointment:	27.01.1997
Name :	Mr. Deepak R. Disa
Designation :	Director
Address:	13, Shamsunder Society, Dattawadi, Pune – 411 030, Maharashtra.
Date of Birth/Age :	36 Years / 21.09.1969
Qualification:	MBA
Experience :	13 Years
Date of Appointment	04.05.1998
Name :	Mrs. Asha R. Disa
Designation :	Director
Address;	13, Shamsunder Society, Dattawadi, Pune – 411 030, Maharashtra.
Date of Birth/Age :	60 Years / 04.06.1946
Experience :	15 Years
Date of Appointment	21.09.1998
Name :	Mr. Nandlal R. Godbole
Designation :	Director
Address:	45, Mayur Colony,Kothrud, Pune – 411 029, Maharashtra.
Date of Birth/Age :	14.07.1936
Date of Appointment:	21.09.1998
Name :	Mr. Subhash K. Saraf
Designation :	Director
Address:	7 Parijat Society, Bhosale Nagar, Pune – 411 007, Maharashtra.
Date of Birth/Age :	21.01.1938
Date of Appointment:	30.01.1997

BUSINESS DETAILS

Line of Business :

Manufacturers and exporters of multi layer and multi wire printed circuit boards, prototype circuit boards for applications in computers, telecommunications and industrial fields

Product :

Product Description	Item Code No. (ITC No.)
Electrical Goods Printed Circuit Boards	8534

Imports from :

Taiwan, China

GENERAL INFORMATION

No. of Employees :

50

Bankers :

v State Bank of India, SSI Branch

v The United Western Bank Limited, Occean Gymkhna Branch

v Canara Bank,Laxmi Road Branch

Facilities :

Secured Loan	Amount (in Millions)
From Banks:
Term Loan	0.000
Cash Credit – State Bank of India A/C 6091	4.041
Cash Credit – Canara Bank A/C 2894	1.317
Cash Credit U WB A/c 0031	7.128
Citi Bank Car loan A/c Indica	0.098
ICICI – Car Loan A/C Esteem	0.346
Unsecured Loan
Special Capital Incentive from SICOM	2.500
Sales Tax Deferred
Sales Tax Deferred – M.S.T	8.078
Sales Tax Deferred – C.S.T	19.150
Standared Charted Bank	0.180
Total:	42.838

Banking Relations :	Unknown
Auditors :	Avinash Utgikar
Qualification:	Charted Accountant

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs. 10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2003860	Equity Shares	Rs. 10/- each	Rs. 20.038 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		20.038	20.038	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.765	5.765	(6.600)
4] (Accumulated Losses)		(12.132)	14.544	0.000
NETWORTH		13.671	11.259	13.400
LOAN FUNDS
1] Secured Loans		12.932	17.320	16.500
2] Unsecured Loans		29.910	30.258	31.600
TOTAL BORROWING		42.842	47.578	48.100
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		56.513	58.837	61.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.345	15.949	16.400
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.275	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.966	18.939	18.500
	Sundry Debtors	24.902	25.415	26.900
	Cash & Bank Balances	3.386	2.332	1.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.462	9.251	9.800
Total Current Assets		60.716	55.937	57.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	18.710	13.647	14.100
	Provisions	1.459	0.000	0.000
Total Current Liabilities		20.169	13.647	14.100
Net Current Assets		40.547	42.290	42.900
MISCELLANEOUS EXPENSES		1.346	1.795	2.200
TOTAL		56.513	58.837	61.500

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	57.777	46.734	47.400
Profit/(Loss) Before Tax	2.136	(2.185)	(7.300)
Provision for Taxation	0.000	0.000	0.000
Add: Deferred Tax	0.275	0.000	0.000
Profit/(Loss) After Tax	2.411	(2.185)	(7.300)
Total Expenditure	52.830	46.033	--

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	4.17	(4.68)	(15.40)
Net Profit Margin (PBT/Sales)	(%)	3.70	(4.68)	(15.40)
Return on Total Assets (PBT/Total Assets}	(%)	2.84	(3.04)	(9.95)
Return on Investment (ROI) (PBT/Networth)		0.16	(0.19)	(0.54)
Debt Equity Ratio (Total Liability/Networth)		6.10	5.54	4.64
Current Ratio (Current Asset/Current Liability)		3.01	3.77	4.04

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS:

Freehold Land, Building, Plant & Machinery, Electrical Installment, Office Equipment, Furniture & Fixture, Vehicle etc.

BUSINESS ENVIORMENT:

From the financial results for the year ended 31.03.2005. they will observe that the market for printed Circuit Boards is becoming very competitive and the value they are getting is decreeing very fast.

During the year, prices are stable. As a result the turnover for the year ended 31.03.2005 has slightly increased to Rs. 57.800 Millions.

Their employee expenses, per sq. mt. Have increased. Thus their working profit have increased in Rs. 494.700 Millions Before debiting the depreciation of Rs. 264.400 Millions and other providing . for bad debts of Rs. 20.000 Millions. The resultant profit will be Rs. 241.200 Millions.

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	V. K. Paradkar
1) Date and description of instrument creating the change	Term Loan agreement Dated 06.12.1988,Signed with the United Western Bank Limited, Deccan Gymkhana, Pune - 4
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.900 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	Fixed Assets consisting of land and structures thereon including plant, present and future. All other movables assets (save and except book debts),present and future, subject to prior charges created /to be created on raw materials, semi finished goods and finished goods, consumables, in favour of company’s banker for securing working capital requirements.
4) Gist of the terms and conditions and extent and operation of the charge.	The United Western Bank Limited, Deccan Gymkhana, Pune, has agreed to extended a Term Loan facility of Rs. 1.900 Millions to the company on the following terms. v Period – 5 Years v Interest - @15% p.a. v Margin – 30% v Security – First charge on fixed Assets ranking part passu with the charge created on03.08.1988, in favour of the Industrial Credit& Investment Corporation of India Limited and Industrial Finance corporation of India limited and personal guarantee of 3 Directors, Mr. M.L. Shah, Mr. S. R. Pophale, and Mr. S. D. Wani and corporate guarantee of 2 Promoter companies, namely Prav Electrospark Private Limited and Electrotech Circuits (India) Private Limited Pending documentation, by way of Equitable Mortgage, for IV above this charge is created
5) Name and Address and description of the person entitled to the charge.	The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	V. K. Paradkar
1) Date and description of instrument creating the change	Agreement of Hypothecation of Stock & Book Debts dated 08.02.1989.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 11.000 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	Stock of Raw Materials, Semi finished and Finished goods and consumable spares, Goods in transit. Book Debts
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @16.5% p.a. or as it may be stipulated to be charged at quarterly rests, The company to keep the goods adequately insured and in good marketable conditions, Margins as may be prescribed, This security to be continuing security at all times, The amount secured at No.2 above consist of funds facility Rs. 5.500 Millions & New funds Rs. 5.500 Millions – Total Rs. 11.000 Millions
5) Name and Address and description of the person entitled to the charge.	v The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004. v State Bank of India,Tilak Road, Pune – 411 002.
6) Date and brief description of instrument modifying the charge	Deed of Hypothecation dated 26.09.1989 Deed of Hypothecation dated 26.09.1989
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.	A consortium of the state Bank of India and The United Western Bank Limited has been formed to finance limits of Rs. 22.500 Millions. The charge limit stands increased to Rs. 22.500 Millions to Rs. 11.000 Millions The security is shared by the said banks in proportion of their respective lending under the arrangement. By this modification the charge limit of United Western Bank Limited have to Rs. 9.000 Millions By this modification the SBI has entire as consortium Finance with United Western Bank Limited, Pune. Hence the Total Charge limit will be shared as below: SBI – Rs. 13.500 Millions UWB _ Rs. 9.000 Millions Total – Rs. 22.500 Millions

Name of the company

HI - REL COMPONENTS (INDIA) LIMITED

Presented By

V. K. Paradkar

1) Date and description of instrument creating the change

Agreement of Hypothecation of Stock & Book Debts dated 08.02.1989.

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

Rs. 11.000 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

Stock of Raw Materials, Semi finished and Finished goods and consumable spares, Goods in transit.

Book Debts

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

Rate of Interest @16.5% p.a. or as it may be stipulated to be charged at quarterly rests,

The company to keep the goods adequately insured and in good marketable conditions,

Margins as may be prescribed,

This security to be continuing security at all times,

The amount secured at No.2 above consist of funds facility Rs. 5.500 Millions & New funds Rs. 5.500 Millions – Total Rs. 11.000 Millions

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

v The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004.

v State Bank of India, Industrial Finance Branch, Bombay – Pune Road, Pune – 411 003.

6) Date and brief description of instrument modifying the charge

Working Capital Consortium Agreement dated 27.11.1990

Agreement Inter Se The participating Banks dated 27.11.1990

Deed of Hypothecation dated 27.11.1990

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.

This modification the total charge limit allotted without change in the earlier limit of Rs. 22.500 Millions as below:

Nature of Facility	Limit
Cash Credit (Stock & Book Debts)	Rs. 7.000 Millions
Cash Credit (Bills)	Rs. 7.000 Millions
Import/ L/C	Rs. 6.000 Millions
Guarantees	Rs. 2.500 Millions

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	State Bank of India, Industrial Finance Branch, Pune – 411 003.
1) Date and description of instrument creating the change	Agreement of Hypothecation of goods debts & assets. Special hypothecation Agreement. (For deferred payment Guarantee Limit) dated 16.06.1992 Term Loan Agreement dated 16.06.1992. Both the Agreements constitute a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.461 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 companies stock’s of raw material, stock in process, Finished goods, &spares which now or hereafter from time to time during the security shall be brought in to stored or be in or about the companies premises at Urawade secondly the companies present & future book debts outstanding money receivable, claims, bills, contracts, engagements, securities, investments, rights & assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest : 1.5% below SBAR with rising & falling therewith with a minimum of 15% p.a.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial Finance Branch, Pune – 411 003.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	State Bank of India, Industrial Finance Branch, Pune – 411 003.
1) Date and description of instrument creating the change	Agreement of loan for overall limit of Form C1 dated 04.11.1993. Agreement of Hypothecation of goods & assets of 04.11.1993 Form – C2 Letter regarding the grant of Individual limit with in the overall limit dated 04.11.19993 Form – C3 All the above agreements constitute a single charge..
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 19.800 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	A first charge by way of hypothecation & / or pledge of the borrower’s entire goods, movable & other assets present & future including documents, of title to goods & other assets such as book debts, outstanding moneys receivable, including receivables by way of cash assistance &/or cash incentives under the cash incentives scheme or any other scheme, claims, including claims by way of refund of customs / excise duties under the duty drawback credit scheme of any other scheme
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest : The interest shall be subject to change in the SBAR or charges in interest rates prescribed by the RBI from time to time. Margin: Raw Material: Indigenous :15% /Imported 10% Stock in Process: 40% Finished Goods: 33.33% Any other (specify) consumable : 50% Book Debts /Receivable: 40% Bills 20% Invoices, Documents, Contracts, Insurance Policies, Guarantees, Engagements, Securities, Contracts, Investments & right uncalled capital and all machinery present & Future.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial Finance Branch, Pune – 411 003.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	R.G. Disa,Managing Director
1) Date and description of instrument creating the change	Indenture of mortgage dated 16.07.1999
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 19.200 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	Land, Building, Plant &Machinery of the company. Land, Building with premises & also including plant & machinery situated at Gat No. 402, 403,& 1098,village – Urawade, Taluka Mulshi, District Pune. Premises bearing Shop No. 49, 50, 51 at survey No. 82/2-A, Sahakar Nagar, Parvati, Pune, & Shop No. 1 at 164 Rasta peth, Pune.
4) Gist of the terms and conditions and extent and operation of the charge.	As per Indenture of Mortgage dated 16.07.1999
5) Name and Address and description of the person entitled to the charge.	The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	State Bank of India, Industrial Finance Branch, Pune – 411 003.
1) Date and description of instrument creating the change	Agreement of Hypothecation of goods, debts, and assets dated 01.09.1993
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 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 company’s stock of raw materials, semi finished goods and finished goods, book debts etc. in all about the company’s godown or premises at Gate No.402, 403 &1098, Village – Urawade, Tal. Mulshi, District Pune, or wherever else the same may be. The company’s present & Future book debts, Outstanding moneys receivables, claims, bills, contracts, engagements, securities, investments, rights and assets by way of first charge.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest : As would be determined by the bank from time to time.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial Finance Branch, Pune – 411 003.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable
Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	R.G. Disa,Managing Director
1) Date and description of instrument creating the change	30.03.2002 Jt. Dated of Hypothecation.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 31.500 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	Stock in Trades, Finished Goods, Spares & Consumables, and Sundry Debtors.
4) Gist of the terms and conditions and extent and operation of the charge.	As per the Deed of Hypothecation dated 30.03.2002
5) Name and Address and description of the person entitled to the charge.	v The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004. v State Bank of India, Industrial Finance Branch, Bombay – Pune Road, Pune – 411 003.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company	HI - REL COMPONENTS (INDIA) LIMITED
Presented By	R.G. Disa,Managing Director
1) Date and description of instrument creating the change	Indenture of mortgage dated 16.07.1999
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 19.200 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	Land, Building, Plant &Machinery of the company. Land, Building with premises & also including plant & machinery situated at Gat No. 402, 403,& 1098,village – Urawade, Taluka Mulshi, District Pune.
4) Gist of the terms and conditions and extent and operation of the charge.	As per Indenture of Mortgage dated 16.07.1999
5) Name and Address and description of the person entitled to the charge.	The United Western Bank Limited, Gokhale Chowk, Deccan Gymkhana, Pune – 411 004. (Total Limit has enhanced from Rs. 19.200 Millions to Rs. 41.600 Millions)
6) Date and brief description of instrument modifying the charge	Additional Security Deed (Creation of IT Charge Document) Dated 15.03.2004.
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.	2^nd Charged is created on land & Building, Plant & Machinery of the company at Gate No.402, 403 &1098, Village – Urawade, Tal. Mulshi, District Pune, in favour of v The United Western Bank Limited, D. Gym. Branch, Pune – 4 – RS. 11.200 Millions v State Bank of India, I. F. Branch, Pune – 3, Rs. 11.200 Millions Total Limit has enhanced from Rs. 19.200 Millions to Rs. 41.600 Millions)

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 records 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. 45.46
UK Pound	1	Rs. 85.94
Euro	1	Rs. 58.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		20

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		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