MIRA INFORM REPORT

Report Date :

28.03.2007

IDENTIFICATION DETAILS

Name :	MAYUR UNIQUOTERS LIMITED
Registered Office :	Jaipur - Sikar Road, Village Jaitpura - 303704, Tehsil Chomu, District Jaipur, Rajasthan
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.09.1992
Com. Reg. No.:	17-6952
CIN No.: [Company Identification No.]	L18101RJ1992PLC006952
TAN No.: [Tax Deduction & Collection Account No.]	JPRM02564C
PAN No.: [Permanent Account No.]	AABFM9592L
Legal Form :	It is a public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of PU/PVC Synthetic Leather.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 700000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. The company has improved its performance in recent years. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office/ Factory :	Jaipur - Sikar Road, Village Jaitpura - 303704, Tehsil Chomu, District Jaipur, Rajasthan, India
Tel. No.:	91-1423-224418/224302
Fax No.:	91-1423-224420
E-Mail :	musystem@sancharnet.in mlp@mayurgroup.com mysystem@jp1.dot.net.in
Website :	http://www.mayurgroup.com
Head Office :	Rotary Bhawan, Church Road, Jaipur - 302 001, Rajasthan
Tel. No.:	91-141-2361132/33
Fax No.:	91-141-2365423/ 2368005
Corporate Office :	315-316, Namdhari Chambers, 9/54, D. B. Gupta Road, Karol Bagh, New Delhi - 110 005
Factory :	28, IV Floor, M I Road, Jaipur – 302001, Rajasthan, India
Tel. No.:	91-141-2361132 / 2364074 / 2365887 / 2361133 / 5105114
Fax No.:	91-141-2365423
Branch office :	Shanta Industrial Estate, I. B. Patel Road, Goregaon, Mumbai - 400 063 Also at Kolkata, Delhi and Patna

DIRECTORS

Name :	Mr. Suresh Kumar Poddar
Designation :	Chairman & Managing Director
Address :	81, Southern Avenue, Kolkata - 700 029, West Bengal
Age :	59 years
Qualification :	B. Sc.
Experience :	34 years
Other Directorships	Mayur Leather Products Private Limited - Chairman
Name :	Mr. Manav Poddar
Designation :	Whole Time Director
Age :	32 years
Qualification :	B. Com [Hon.]
Experience :	11 years
Name :	Mr. Rajendra Kumar Poddar
Designation :	Director
Address :	46A, Vrindavan Vihar, Ajmera Gardens, Ajmer Road, Jaipur - 302 019, Rajasthan
Qualification :	B. Com., (Kolkata University)
Experience :	22 years
Previous Employment	Doshi & Company, Kolkata, West Bengal - Articleship
	Birla Group of Industries - Controller of Purchase & Stores
Other Directorships	Mayur Leather Products Private Limited
Name:	Mr. Rajesh Virendra Gupta
Designation :	Director
Address :	D-72, Janpath Shyam Nagar Extension, Jaipur - 302 019, Rajasthan
Qualification :	B. Tech. (IIT, Mumbai)
Experience :	20 years
Previous Employment	L & T Limited
Other Directorships	Mayur Leather Products Private Limited
Name :	Mr. Vijay K. Aggarwal
Designation :	Director
Address :	71, Keats Way, Rushden, Northants NN 10 6EE, England
Qualification :	Chemical Engineer
Experience :	35 years
Previous Employment	Porvair International Limited Jaymor Limited L. Blake & Company Limited, London Surray Plastic Development Limited
Name :	Mr. Rameshwar Pareek
Designation :	Independent Directors
Age :	62 years
Date of Appointment :	30.03.2002
Qualification :	B. Com [Hons.] & M.A. [Economics]
Name :	Mr. Ashok Kumar Kejriwal
Designation :	Independent Directors
Other Personnel:
Name:	Mr. Hans Kumar Shyara
Designation:	Company Secretary

SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Indian Promoters	3224380	64.49
Foreign Promoters	15100	0.30
Persons acting in Concert	0	0.00
Mutual Funds and UTI	8800	0.18
Banks, FIIs, Insurance Companies, (Central/State Govt. Institutions/ Non-Govt. Institutions)	2700	0.05
Foreign Institutional Investors	0	0.00
Private Corporate Bodies	290469	5.81
Indian Public	1413993	28.28
NRIs/OCB	39451	0.79
Any Other (Clearing Members Demat Transit)	5107	0.10
Total	5000000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of PU/PVC Synthetic Leather.

Product :

ITEM CODE NO.	PRODUCT DESCRIPTION
3926.90	PVC Bonded Foam
5903.10	Textile Fabric Impregnated Coated Covered or Laminated with PVC
5903.20	Textile Fabric Impregnated Coated Covered or Laminated with PU
5603.00	Non Woven Whether or Not Impregnated Coated Covered or Laminated
3920.12	PVC Sheet Flexible Plain

Exports to :

Europe, USA, UK and Japan.

Imports from :

Italy, USA, Taiwan, Spain and UK.

GENERAL INFORMATION

Suppliers :

Ø Matex S.R.L. Italy

Ø Yang Hsing Machinery Company Limited, Taiwan

Ø Robert Jackson Wardle, UK

Ø Frudenberg Espana, Spain

Ø Pioneer Engineering Company Limited, Mumbai

Ø Thermax Limited, Delhi

Ø Voltas Limited, Delhi

Ø Greaves Cotton Limited, Jaipur, Rajasthan

No. of Employees :

600

Bankers :

Ø Canara Bank

Ø Andhra Bank, Ashok Marg, Jaipur, Rajasthan, India

Ø ABN Amro Bank

Ø ICICI Bank Limited

Ø Standard Chartered Bank

Ø IDBI Bank

Ø HDFC Bank Limited

Facilities :

	As on 31.03.2006 [Rupees in Millions]
SECURED LOANS :
Canara Bank – Term Loan	65.391
Canara Bank [Working Capital] FCLR Loan for USD 225000	10.141
Canara Bank – OCC Limit	8.766
Canara Bank [Bills Discounted]	0.484
Andhra Bank [Working Capital] FCLR Loan for USD 225000	10.154
Andhra Bank – OCC Limit	7.661
Andhra Bank [Bills Discounted]	7.385
IDBI Bank Limited [Bills Discounted]	2.138
HDFC Bank Limited	0.844
ICICI Bank Limited	0.580
Standard Chartered Bank	0.136

Banking Relations :	Satisfactory
Auditors :	Madhukar Garg & Company Chartered Accountants, 2A, Raj Apartment, Keshav Path, Ahinsa Circle, C-Scheme, Jaipur – 302001 Bhatra Pramod & Associates Chartered Accountants, T-31,3rd Floor, Mayur Tower,Nehru Bazar, Jaipur - 302001
Associates:	Mayur Interlinks (India) Private Limited Incorporated on 7^th December, 1993 at Delhi. Subject was promoted by Mayur Group of Companies as an International Agency House representing the various foreign companies. Directors Mr. S. K. Poddar Mr. R. V. Gupta Mr. V. K. Aggrawal Mr. Rajendra K. Poddar Mayur Sales Engaged in manufacturing of high frequency welded door panels for cars, PVC Tarpaulin covers, PVC floor mats, automobile seat covers, etc. Some of its major customers are : Ø Maruti Udyog Limited Ø Telco Ø Bajaj Tempo Limited Ø DCM Toyota Ø Allwyn Nissan Ø Premier Automobiles Limited Ø Auto Interior Industries Engaged in manufacturing of automobile accessories viz. floor mats, embossed velvet and perforated head roof lining for various automobile manufacturers. Mayur Industries Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs. 10/- Each	Rs. 55.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- Each	Rs. 50.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		126.863	106.522	87.287
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		176.863	156.522	137.287
LOAN FUNDS
1] Secured Loans		113.684	99.941	35.369
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		113.684	99.941	35.369
DEFERRED TAX LIABILITIES		12.690	12.442	8.750
TOTAL		303.237	268.905	181.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		164.388	158.209	72.863
Capital work-in-progress		4.835	3.175	3.484
INVESTMENT		0.657	0.144	0.143
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	71.366	58.674	44.934
	Sundry Debtors	152.779	126.995	113.357
	Cash & Bank Balances	21.011	17.806	10.816
	Other Current Assets	31.752	15.256	16.298
	Loans & Advances	6.991	6.590	7.923
Total Current Assets		283.899	225.321	193.328
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	150.542	117.944	88.412
Total Current Liabilities		150.542	117.944	88.412
Net Current Assets		133.357	107.377	104.916
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		303.237	268.905	181.406

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		579.150	465.099	396.278
Other Income
Total Income		579.150	465.099	396.278
Profit/(Loss) Before Tax		39.106	31.170	35.790
Provision for Taxation		13.063	12.190	12.470
Profit/(Loss) After Tax		26.043	18.980	23.320
Earnings in Foreign Currency :
	Export Earnings	38.945	33.428	41.888
Total Earnings		38.945	33.428	41.888
Imports :
	Others	187.499	135.264	100.259
Total Imports		187.499	135.264	100.259
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses
	Administrative Expenses
	Raw Material Consumed
	Purchases made for re-sale
	Consumption of stores and spares parts	540.044	433.928	354.447
	Increase/(Decrease) in Finished Goods
	Salaries, Wages, Bonus, etc.
	Managerial Remuneration
	Payment to Auditors
	Interest
	Insurance Expenses
	Power & Fuel
	Depreciation & Amortization
	Other Expenditure
Total Expenditure		540.044	433.928	354.447

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	137.900	173.200	166.700
Other Income	0.200	0.100	0.100
Total Income	138.100	173.300	166.800
Total Expenditure	125.800	159.500	149.200
Operating Profit	12.300	13.800	17.600
Interest	1.900	2.000	1.900
Gross Profit	10.400	11.800	15.700
Depreciation	3.700	3.900	3.800
Tax	2.300	2.700	4.200
Reported PAT	4.300	5.000	7.400

Notes

200606 Quarter 1 –

EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on July 31, 2006. 2. Manufacturing of PU/PVC coated fabric leather is single reportable segment. 3. During the Quarter the acquirer i.e. Mr. Suresh Kumar Poddar & Mayur Leather Products Ltd with PAC's made open offer under SEBI (SAST) Regulation, 1997 to acquire 20% Voting right/paid up capital of the Company which was opened on May 10, 2006 and Closed on May 29, 2006. 4. During the Quarter Other Expenditure includes loss due to exchange rate fluctuation Rs 2.262 million that affects profitability of the Company. 5. Previous year figures are re-grouped and rearranged wherever necessary.

200609 Quarter 2 –

Expenditure includes (Increase)/Decrease in stock in Trade Rs (0.821)million Consumption of Raw Material Rs 136.271 million Staff Cost Rs 7.614 million Other expenditure Rs 16.437 million Tax Includes Provision for Fringe Benefit Tax Rs 0.221 million Current Tax Rs 2.540 million Deferred Tax Rs 0.178 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 06 Complaints disposed off during the quarter 06 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on October 31, 2006. 2. The above result are subject to limited review by the auditors of the Company. 3. Manufacturing of PU/PVC coated fabric leather is single reportable segment. 4. Previous year figures are re-grouped and rearranged wherever considered necessary.

200612 Quarter 3 –

Expenditure includes (Increase)/Decrease in stock in Trade Rs (3.705)million Consumption of Raw Material Rs 132.351 million Staff Cost Rs 8.212 million Other expenditure Rs 12.438 million Tax Includes Provision for Fringe Benefit Tax Rs 0.309 million Current Tax Rs 3.850 million Deferred Tax Rs 0.318 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on January 29, 2007. 2. Manufacturing of PU/PVC coated fabric leather is single reportable segment. 3. The Board of directors in its meeting held on December 14, 2006 declared an interim Dividend @ Rs 1/- per equity shares of Rs 10/- each for the year ended as on March 31, 2007. 4. Previous year figures are re-grouped and rearranged wherever considered necessary.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.64	0.46	0.32
Long Term Debt-Equity Ratio	0.41	0.24	0.02
Current Ratio	1.37	1.43	1.36
TURNOVER RATIOS
Fixed Assets	2.63	2.84	3.56
Inventory	9.59	9.79	10.10
Debtors	4.46	4.22	4.12
Interest Cover Ratio	4.13	6.38	7.19
Operating Profit Margin (%)	10.74	9.52	11.47
Profit Before Interest And Tax Margin (%)	8.27	7.29	9.25
Cash Profit Margin (%)	6.65	5.97	7.39
Adjusted Net Profit Margin (%)	4.18	3.75	5.17
Return On Capital Employed (%)	18.87	17.25	25.27
Return On Net Worth (%)	15.66	12.93	18.65

STOCK PRICES

Face Value	Rs.10/-
High	Rs.31.75/-
Low	Rs.31.05/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Mayur Uniquoters was incorporated as a public limited company in 1992. The company is promoted by the Mayur group with three manufacturing units at Jaipur and an established trading network in synthetic leather. In 1994, the company commenced commercial production of PU/PVC synthetic leather (installed capacity : six million linear mtr p.a.) at Jaitpura, Rajasthan. Its manufacturing unit has plant and machinery imported from Italy. It is also setting up a pilot plant from Italy for R & D development to upgrade finished products and to meet various requirements. 

The company's product finds application in shoes, garments, luggage, sports goods and upholstery, and is used as a substitute for real/natural leather. 

The company came out with a public issue in June, 1994. 

During the year 1999-2000, the company has explored new markets viz. Sri Lanka, Mauritius and South Africa and has also focused special efforts in automotive segments resulting in acceptance of company's products by some leading companies in the industry.

OPERATIONAL PERFORMANCE-

Directors of the company are pleased to report you that during the year 2005-06 Gross Sales have increased by 22.96 % (1 7.48%) as compared the previous year. Net Profit for the year have increased by 37.21 % in comparison to the last year and EPS has also been increased to Rs. 5.26 as compared to Rs. 4.53 from the last year under report.

The Company is engaged in Manufacturing of PU/PVC Synthetic leather. The market share of the Company has grown both in terms of volume and value over the previous year. The market conditions continues to be very competitive where it faced intense competition from low priced products, the outlook for the industry is positive given the size of the opportunity available.

The production increased to 5.268 millions Linear mtrs. as compared to 4.697 millions Linear mtrs. in the preceding financial year. This denotes a 1 2. 1 6% increase in production over the last year.

Within the challenging competitive market environment, MAYUR did gain market share during the year and continuously made its sincere efforts to add renowned buyers.

Mayur’s total income for the year ended 31^st March, 2006 increased to Rs. 579.150 (Net of excise duty) millions as compared to Rs. 465.099 millions in the corresponding previous year registering a growth of 24.52 percent. Total Income included earnings form export sale at Rs. 38.945 millions. With a significantly increased production and sales, the company has achieved the operating profit (PBIDT) of Rs. 61.174 (444.34) millions increased by 37.67%.

During the financial year company earned a Net profit of Rs. 26.043 millions and registered a growth by 37.21%. The Company has always emphasis to reduce the administrative and selling cost during the year under report the company has reduced its administration cost by 15% and selling expenses also reduced by 2% as compared to previous year despite of 22.96% increase in gross sales of the company.

Company's reserves gone up to Rs. 126.864 millions at the end of financial year under report. Employee cost increased by 37.66% from Rs. 18.139 millions to Rs. 24.971 millions. This increase was mainly on account of higher salaries and new appointments and started contribution to Employee State insurance has became applicable to the company during the year.

Provision for taxation increased by 50% from Rs. 8.500 millions to Rs. 12.815 millions, which included Fringe benefit Tax of Rs. 0.765 millions.

Continued growth in production and sales volumes has increased MAYUR'S payment of duties and taxes over the last year.

CHALLENGES

‘MAYUR’ faced normal market competition in all its products from Indian as well as international companies. MAYUR'S globally competitive cost positions and sound product quality strategies have enabled it to retain its leading market positions. MAYUR'S endeavor is to enhance this competitive advantage through a process of continuous improvements and by implementing appropriate business strategies.

Fixed Assets

Land, Building & Premises, Plant & Machinery, Diesel Generator Set, Computers & Peripherals, Office & Other Equipments, Furniture & Fixtures and Vehicles.

Web details are attached herewith:

"At MAYUR their task is to augment managerial and technical resources coupled with skill sets to plan and sustain economic development in their industry, which in turn gives grater significance and there by ameliorating the potency of their service commitments towards their customers which they intend to satiate through proactive marketing techniques."

The vignettes of the group demonstrate exemplary leadership, assiduous foster and exceptional foresight of its founder Mr. Tapeshwari Prasad Gupta. Circa, October 1994, Mr. Tapeshwari Prasad Gupta, a magnify of Uttar Pradesh oil industry over took a sick unit with limited resources comprising of a batch plant and a capacity of 25 TPD from U.P.F.C.

"Mayur Group of Companies" is a well known business family and a medium sized industrial group based in the "Manchester Of India" Kanpur, Uttar Pradesh. Its various activities include jobs as diverse as refining to sale of bulk Atta, Maida & Suzi.

The strong presence of the "Mayur Group of Companies" on the oil scene of Uttar Pradesh has further given it a succor to vivify and prop up it's footing in today's competitive market.

The multihued parasol of the "Mayur Group Of Companies" house the following self sustained and profitable unit that are continually making a conspicuous impact on the industrials scene of Uttar Pradesh.

Kanur Edibles Private Limited

Kanpur Extractions Private Limited

A. V. Agro Products Limited

Kushal Foods Private Limited

The bearings of the group in form of its work, establishments and factories dot a significant portion of Kanpur. The group boasts of a sound financial base needed to meet routine expenditures and contingency disbursements.

In a bid to hold in the ultra competitive modern era, the group also handles outsourced Work from Godrej Industries Limited. (Foods Division) and Agro Tesh Foods Limited, one of our unit Kanpur Edibles (Private) Limited provides a major part of its quality produce to Parle Biscuits Limited, leading manufacturers of biscuits.

The group in order to market brand "MAYUR" and to serve our customers more potently, matchlessly, plans major diversification in to new areas.

The fact that our edible oil and bulk consumers of Atta, Maida and Suzi have placed their highly valued faith in us has helped us achieve excellent proportions of market share in few years. Their rigid fundamentals, timely service and proactive marketing techniques have boosted their presence in the market.

Mayur Group to emerge as the best premium food oil company, enabling people to savor the flavours of India, globally.

• To achieve global standards of excellence in their operations with focus on consumer satisfaction /delight, providing consumers the ‘flavour of India’;

• To set up high standards of leadership, quality and productivity.

• To develop a well knit human resources policy and culture which motivates employees to contribute their best towards achievement of organizational objectives; and

•To function as a responsible corporate citizen and help enrich the quality of life of the community and work towards sustainable development.

To one of the nature’s finest products, process them using the best technology and make them available across the globe.

The mission encompasses the three core virtues that drive the company :

• High-quality products

• The finest technology

• Global availability

Since inception, Quality and focus on research to understand the changing consumer preferences and cater to their requirements is what drives everybody at Mayur.

Quality has always been the foremost consideration with the Company. Their Quality process begins from the paddy procurement stage and continues till the product finally reaches the consumer.

It is this eye for detail that underlines Mayur commitment to product quality leading to customer satisfaction. In fact, meeting quality specifications has become a habit rather than a requirement at

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.43.14
UK Pound	1	Rs.84.71
Euro	1	Rs.57.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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