MIRA INFORM REPORT

Report Date :

18.05.2007

IDENTIFICATION DETAILS

Name :	TIPCO INDUSTRIES LIMITED
Registered Office :	Dharampur Cross Road, National Highway No. 8, Abrama, Valsad - 396 001, Gujarat, India
Country :	India
Financials (as on) :	31.03.2004
Date of Incorporation :	14.08.1996
Com. Reg. No.:	04-430480
CIN No.: [Company Identification No.]	U99999MH1952PTC008900
TAN No.: [Tax Deduction & Collection Account No.]	MUMT10180C
PAN No.: [Permanent Account No.]	AAACTI678E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The Company is engaged in manufacturing of Thermoplastic Products and Polypropylene Multifilament Yarn and Phenolic Material.

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 :	Poor
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Financial Position of the company is moderate. Payments are reported as slow but correct. The company can be considered for normal business dealings at usual trade terms and conditions with some caution in view of substantial accumulated losses.

LOCATIONS

Registered Office :	Dharampur Cross Road, National Highway No. 8, Abrama, Valsad - 396 001, Gujarat, India
Tel. No.:	91-2632-253304/253249/242984
Fax No.:	91-2632–253363
E-Mail :	1. tipco@vsnl.com 2. info@tipco-india.com 3. valsad@tipco-india.com
Website :	http://www.tipco-india.com
Area :	50,000 sq.fts
Location :	Owned
Marketing & Sales Office:	¨ Rani Sati Marg, Malad (East), Mumbai – 400 097, Maharashtra Tel. 91-22-28835251 / 28835876 Cell. 9820933498/9820934081 Fax. 91-22-28835875 E-mail. mumbai@tipco-india.com ¨ 5, Chamelian Road, Near Filmistan, New Delhi – 110 006 Tel. 91-11-23672637 Fax. 91-11-23677547 Cell. 91-9810628866/9810449117 E-mail. delhi@tipco-india.com ¨ 134/B, Lenin Sarani, Kolkata – 700 013, West Bengal Tel. 91-33-22465889 Fax. 91-33-22466175 Cell. 91-9830256018 E-mail. kolkatta@tipco-india.com ¨ 336, Ponnang Kinnary Street, Vallivakkam, Chennai – 600 049, Tamilnadu Cell. 91-9840067014 E-mail. chennai@tipco-india.com ¨ 90, Cross Road No. 3, LIC Colony, Block 3, Jayanagar, Bangalore – 560 001, Karnataka Cell. 91-9845102015 E-mail. bangalore@tipco-india.com ¨ 301, EC Nagar, Cherapally, Hyderabad – 500 051, Andhra Pradesh Cell. 91-9885276683 E-mail. hyderabad@tipco-india.com ¨ 302, C/3, Gangadham Society, Bibvewadi, Munjeri, Pune – 411 037, Maharashtra Cell. 9890039209 E-mail. pune@tipco-india.com
Corporate Office :	Rani Sati Marg, Malad (East), Mumbai – 400 097, Maharashtra
Tel. No.:	91-22-28835252
Mobile No.:	91-9820933498/98250934081
Fax No.:	91-22-28835875
E-Mail :	tipco@vsnl.com mumbai@tipco-india.com
Area :	5,000 sq. fts
Location :	Owned
Factory 1 :	Dharampur Cross Road, National Highway No. 8, Abrama, Valsad - 396 001, Gujarat
Factory 2 :	Survey No. 328/1/1/1, Masat Village, Silvassa – 396 230, Dadara & Nagar Haveli, Union territory
Tel. No.:	91-260-2640295 / 2640296
Fax No.:	91-260-2640294
E-Mail :	masat@tipco-india.com
Area :	5,000 sq.fts
Location :	Owned
Branches :	Located at :- ¨ Rani Sati Marg, Malad (East), Mumbai – 400 097, Maharashtra Tel. 91-22-28835251 / 28835876 Cell. 9820933498/9820934081 Fax. 91-22-28835875 E-mail. mumbai@tipco-india.com ¨ Shakthi Apartment, 38 College Road, Nungambakkam, Chennai – 600 006, Tamilnadu Tel. 91-44-28267041 Fax. 91-44-28256841 ¨ 5, Chamelian Road, Near Filmistan, New Delhi – 110 006 Tel. 91-11-23672637 Fax. 91-11-23677547 Cell. 91-9810628866/9810449117 E-mail. delhi@tipco-india.com ¨ 134/B, Lenin Sarani, Kolkata – 700 013, West Bengal Tel. 91-33-22465889 Fax. 91-33-22466175 Cell. 91-9830256018 E-mail. kolkatta@tipco-india.com ¨ 710, A-Wing. Mittal Towers No. 6, M. G. Road, Bangalore – 560 001, Karnataka Tel. 91-80-25581028 Fax. 91-80-25585430 ¨ 3, Padmavati Residency, Mohan Wadi, Yerwada, Pune – 411 006, Maharashtra Tel. 91-20-26681389 Fax. 91-20-26681389

DIRECTORS

Name :	Mr. Thakkar B. Nirmal
Designation :	Chairman
Address :	78, Nutanlaxmi Housing Society, North South Road No. 8, JVPD Scheme, Mumbai – 400 049, Maharashtra, India.
Date of Birth/Age :	06.02.1940
Date of Appointment :	17.01.1984
Name :	Mr. Thakkar M. Bimal
Designation :	Director
Address :	121, Everest Apartment, Mount Pleasant Road, Mumbai – 400 006, Maharashtra, India.
Date of Birth/Age :	06.06.1937
Date of Appointment :	17.01.1984
Name :	Mr. Thakkar B. Abhay
Designation :	Director
Address :	121, Everest Apartment, Mount Pleasant Road, Mumbai – 400 006, Maharashtra, India.
Date of Birth/Age :	21.08.1964
Date of Appointment :	01.07.1994
Name :	Ms. Thakkar N. Achal
Designation :	Director
Address :	78, Nutanlaxmi Housing Society, North South Road No. 8, JVPD Scheme, Mumbai – 400 049, Maharashtra, India.
Date of Birth/Age :	02.03.1967
Date of Appointment :	01.07.1994
Name :	Mr. Bieniek W. Georg
Designation :	Director
Address :	Bremen, Ostertorstr 32, Germany.
Date of Birth/Age :	15.12.1944
Date of Appointment :	21.02.2000
Name :	Mr. Gupta Jagdish Chandra
Designation :	Secretary cum Director
Address :	102/4, Tilak Apartments, Tilak Nagar Road No. 1, Off M. G. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India.
Date of Birth/Age :	25.06.1941
Date of Appointment :	06.03.1984
Name :	Mr. Chawla P. Harvansh
Designation :	Director
Address :	C – 17, East Nizamuddin, New Delhi – 110 013.
Date of Birth/Age :	07.06.1970
Date of Appointment :	24.11.2001
Name :	Ms. Thakkar N. Sital
Designation :	Whole Time Director
Address :	78, Nutanlaxmi Housing Society, North South Road No. 8, JVPD Scheme, Mumbai – 400 049, Maharashtra, India.
Date of Birth/Age :	06.10.1969
Date of Appointment :	06.0.2003
Name :	Mr. Thakkar N. Prakash
Designation :	Whole Time Director
Address :	78, Nutanlaxmi Housing Society, North South Road No. 8, JVPD Scheme, Mumbai – 400 049, Maharashtra, India.
Date of Birth/Age :	23.12.1971
Date of Appointment :	04.11.2003
Name :	Mr. Garhwal Baldev
Designation :	Whole Time Director
Address :	H – 4 / 803, Riddhi Gardens, Film City Road, Goregaon (East), Mumbai – 400 097, Maharashtra, India.
Date of Birth/Age :	09.06.1964
Date of Appointment :	06.09.2003
Name :	Mr. Sarin Aniruddha
Designation :	Whole Time Director
Address :	169, New Colony, Gurgaon – 122 001.
Date of Birth/Age :	01.07.1965
Date of Appointment :	06.09.2003
Name :	Mr. Bapulal M. Thakkar
Designation :	Chairman
Address :	78, Nateshwar Society, N. S. Road, 8, JVPD Scheme, Vile Parle, Mumbai - 400 056, Maharashtra
Name :	Mr. Suratchandra B Thakkar
Designation :	Director (upto 30.10.2003)
Address :	67/A, Vitthalnagar, 12^th Road, JVPD Scheme, Mumbai - 400 049, Maharashtra
Name :	Mr. Dayalchandra B. Thakkar
Designation :	Director (upto 30.10.2003)
Address :	A/10, Vile Parle Model Scheme, Gulmohar, Mumbai - 400 056, Maharashtra
Name :	Mr. Joachimhans Ronald Voi
Designation :	Director
Name :	Mr. Klaus Walter Gunter
Designation :	Director
Name :	Mr. Upendra K. Poojara
Designation :	Director
Address :	Venus Society, E Wing, 7^th Floor, 27, Cross Road, Worli, Mumbai - 400 018, Maharashtra
Name :	Mr. J. C. Gupta
Designation :	Executive Director & Company Secretary (w.e.f. 24.11.2001)

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Thakkar Nirmalchandra Achalchandra J/H Thakkar Bapulal Nirmalchandra	137500
Thakkar Bimalchandra Abhaychandra J/H Thakkar Mansukhlal Bimalchandra	72000
Thakkar Bimalchandra Abhaychandra J/H Thakkar Abhay Kavita	18000
Thakkar Mansukhlal Bapulal J/H Thakkar Bapulal Induben	11224
Bam Trading & Investment Private Limited	62435
Thakkar Mansukhlal Bimalchandra J/H Thakkar Bimalchandra Manjula	76560
Thakkar Mansukhlal Bimalchandra J/H Thakkar Bimalchandra Manjula	18300
Thakkar Sitalchandra Himadri J/H Thakkar Nirmalchandra Sitalchandra	9000
Thakkar Abhaychandra Kavita J/H Thakkar Bimalchandra Abhaychandra	72000
Thakkar Bimalchandra Manjula J/H Thakkar Mansukhlal Bimalchandra	48000
Thakkar Bapulal Nirmalchandra J/H Thakkar Bapulal Suratchandra J/H Thakkar Bapulal Dayalchandra	94320
Thakkar Nirmalchandra Nirupama J/H Thakkar Bapulal Nirmalchandra	1638341
Thakkar Bapulal Nirmalchandra J/H Thakkar Nirmalchandra Nirupama	24748
Nisuda Trading & Investment Company Private Limited	93524
Thakkar Nirmalchandra Prakash J/H Thakkar Bapulal Nirmalchandra	87816
Plastochem Trading & Investment Company Private Limited	378400
Prembhari Trading & Investment Company Private Limited	138800
Thakkar Nirmalchandra Sitalchandra J/H Thakkar Bapulal Nirmalchandra	126960
Shaunak Trading & Investment Company Private Limited	285816
Singh Arjun J/H Savitri Devi	2000
Thakkar V. Bipin J/H Thakkar Bipin Leena	2000
Vyas K. Chhaya J/H Vyas K. Kamlesh	1000
Kulkarni R. Dilipkumar J/H Kulkarni Dilipkumar Sunita	1000
Subramaniam Ganpathy J/H Subramaniam Ganpathy Kala	3650
Desai Ajay Heena J/H Desai B. Ajay	1000
Desai Anoop Hema J/H Desai Ramesh Anoop	5000
Vora K. Ketan J/H Vora Ketan Beena	1000
Joshi K. Paulomi	1000
Desai N. Pinakin J/H Desai Pinakin Yogini	1000
Sheth N. Praful	1000
Nair Radha J/H Nair Sudhir	1000
Saxena Sangeeta J/H Arya Ajitkumar	2500
Shah I. Sanjiv J/H Shah Sanjiv Rita	2500
Gupta Saroj J/H Gupta Jagdishchandra	5000
Negi Shailendra J/H Negi ILA	2500
Soni Govindji Anil J/H Soni Anil Hina	1000
Bhatnagar B. V. J/H Bhatnagar Nisha	1000
Uchil Manjappa Vasant J/H Uchil Vasant Meera	1000
Vinod Kumar J/H Seema	1000
Verdia Rakesh	1000
Verdia Shayamala	1000
Jhaveri P. Aditya J/H Jhaveri Urmila	1000
Desai P. Dilipkumar	1000
Desai N. Padmanabh J/H Desai N. Pramila	1000
Desai N. Pramila J/H Desai N. Padmanabh	1000
Jhaveri P. U.	1000
Georg Wilhelm Bieniek	538611
Bernhard Rustige GMBH & Company KG.	1342089
Tipco Polymers Limited

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacturing of Thermoplastic Products and Polypropylene Multifilament Yarn and Phenolic Material.

Products :

Products Description	ITC Code
Polymer Compound	3902000
P. F. Resin	39094003
P. F. Moulding Powder	39031901

Exports to :

Middle East, Africa, Japan and SAARC

Imports from :

Europe

Terms :

Purchasing :

L/C and Credit

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Thermoplastics	Ton	37120	21000	2974
Phenolic Materials	Ton	NA	6000	1758
Polypropylene Multifilament Yarn	Ton	20000	180	100
Tipwood Materials	Ton	NA	NA	4264

GENERAL INFORMATION

Customers :

· Honda Siel

· Maruti Udyog

· Toyota Kirloskar

· Tata Engineering

· Bajaj Auto

· Ford India

· Hyundai Motors, India

It’s major customers includes wholesalers and OEMs.

No. of Employees :

140

Bankers :

v Dena Bank, Share Bazar, Ambalal Doshi Marg, Mumbai – 400 023.

v Central bank of India, Mathurdas Visanji Road, Andheri (East, Mumbai – 400 069.

v The Development Credit Bank Limited, 165/172, S. V. Road, Jogeshwari (West), Mumbai – 400 012.

v IDBI Bank Limited

Facilities :

Secured Loan	Amount (in Millions)
Term Loan from Bank	160.052
Cash Credit from Bank	47.571
WCDL from Bank	69.325
L/C and IBR	155.624
Bills Discounting	107.725
Funded Interest term Loan	129.500
Interest Payable on Bank (Accrued but not due)	13.680
Vehicle Loans	0.284
Unsecured Loan
Sales Tax payable under deferred payment scheme	0.086
Intercorporate Deposits	32.543
Loan from Directors & Promoters	70.775
Total:	787.165

Banking Relations :	Satisfactory
Auditors :	Ambalal Thakkar & Company Chartered Accountants
Address:	Mumbai, Maharashtra
Associates :	¨ Tipco Polymers Private Limited ¨ Polymers Private Limited ¨ Energia Trading & Holding Company ¨ Ramble Investment & Finance Company Private Limited
Subsidiaries	¨ Performance Polymers Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs. 10/- each	Rs. 105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5446550	Equity Shares	Rs. 10/- each	Rs. 54.466 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2004	31.03.2003 (12 months)	31.03.2002 (9 months)
SHAREHOLDERS FUNDS
1] Share Capital		54.466	54.466	54.466
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		361.857	373.081	169.775
4] (Accumulated Losses)		(424.849)	(367.348)	(242.353)
NETWORTH		(8.526)	60.199	(18.112)
LOAN FUNDS
1] Secured Loans		683.761	663.622	613.458
2] Unsecured Loans		103.404	34.798	37.234
TOTAL BORROWING		787.165	698.420	650.692
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		778.639	758.619	632.580
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		503.282	534.512	351.616
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.012	0.012	0.012
DEFERREX TAX ASSETS		105.340	79.009	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.302	27.587	50.332
	Sundry Debtors	93.189	78.231	163.208
	Cash & Bank Balances	26.596	21.480	24.875
	Claims receivable in respect of excise	18.704	18.704	18.704
	Loans & Advances	100.917	75.009	122.822
Total Current Assets		280.708	221.011	379.941
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	102.757	70.521	94.949
	Provisions	10.082	10.082	10.082
Total Current Liabilities		112.839	80.603	105.031
Net Current Assets		167.869	140.408	274.910
MISCELLANEOUS EXPENSES		2.136	4.678	6.042
TOTAL		778.639	758.619	632.580

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004	31.03.2003 (12 months)	31.03.2002 (9 months)
Sales Turnover [including other income]	365.145	343.987	270.092
Profit/(Loss) Before Tax	(83.704)	(200.584)	(130.120)
Provision for Taxation	26.332	34.849	--
Profit/(Loss) After Tax	(57.372)	(165.735)	(130.120)
Export Value	2.666	4.314	2.664
Import Value	15.753	10.050	8.157
Total Expenditure	448.849	572.399	400.212

KEY RATIOS

PARTICULARS		31.03.2004	31.03.2003 (12 months)	31.03.2002 (9 months)
PAT / Total Income	(%)	(15.71)	(48.18)	(48.18)
Net Profit Margin (PBT/Sales)	(%)	(22.92)	(58.31)	(48.18)
Return on Total Assets (PBT/Total Assets}	(%)	(9.41)	(24.04)	(17.79)
Return on Investment (ROI) (PBT/Networth)		(9.82)	(5.71)	(7.18)
Debt Equity Ratio (Total Liability/Networth)		(105.56)	12.94	(41.72)
Current Ratio (Current Asset/Current Liability)		2.49	2.74	3.62

LOCAL AGENCY FURTHER INFORMATION

Operations:

Production during the year under report was 4070 M.T. Thermoplastics Materials & 1866 M.T. of Phenolic materials. Sales during the year under report was Rs. 364.021 Millions. The company incurred losses due to:

1. World over economic slowdown & more particularly to Indian industries
2. Continued liquidity and working funds constraints
3. Lower Capacity utilisation
4. Due to lower capacity yutilisation burden of interest and other fixed costs in the products of the company has remained very high and the company could not recover the same.

Due to the shortge of sufficient funds, the company could not market its products as planned during the period

The performance during the first 4 months has improved than the average of last 12 months period of statement of accounts.

Due to the heavy rain and subsequent flooding in Damanganga river, the most of the Silvassa & Daman area was submerged in the water on 03.08.2004, the company Masat Unit was completely under the water and suffered heavy losses on a account of damages/ destructions th\o the stocks and the fixed assets. The company has filed the Insurance claim with the insurance company and the amount of loss is in the process of assessment however the company has received adhoc interim claim amount to restart its critical manufacturing activities. However the said event does not have any impact on the position as on Balance Sheet Date.

HISTORY

Subject was incorporated on 1^st October 1952 at Mumbai in Maharashtra having Company Registration Number 8900.

The company changed its registered office from Mumbai to Gujarat and having new Company Registration Number 30480 with effect from 13^th August, 1996, Gujarat ROC was obtained.

The company was originally incorporated under the name and style of B M Thakkar and Company Private Limited. In view of a lot of changes, the company later adopted its brand name as TIPCO and subsequently converted into a closely held public limited liability company.

In the year 1945, when Mr. B. M. Thakkar established India’s first Plastics raw materials manufacturing unit, for Thermosetting Resins and Moulding compounds.

In half a century, Tipco witnessed the birth of New India and participated as a small molecule, in the exciting process of moulding the nation, into a Grand shape.

During these five decades, Tipco has been an active partner in evolution of the Plastics Industry of India.

In the year 1997, the company tied up with Grand Polymers, Japan. Grand Polymers was a joint venture of Mitsui Petrochemicals, Ube Industries and Polypropylene Division of Mitsui Toatsu Chemicals.

In the year 2002, Grand Polymers merged with Sumitomo Petrochemicals to form a global giant called Sumitomo Mitsui Polyolefin Inc., Japan.

Sumitomo-Mitsui Polylefin is engaged in the production, sales and technical service of advanced polypropylene compounds to automotive companies in Japan, such as Honda Motor Corporation, Toyota Motors, Suzuki Motors, Mitsubishi Motors, etc.

Polypropylene Compounds offered by Tipco Sumitomo Mitsui tie up in India are suitable for all major automotive components from OEMs in India such as Honda Siel, Maruti Udyog, Toyota Kirloskar, Tata Engineering, Bajaj Auto, Ford India, Hyundai Motors India, etc.

Its’ products range includes :-

· Powder Resins

· Liquid Resins

· Lumps

· Cotton Phenolic

· Glass Phenolic

· Mineral Filled Phenolic

· Glass Filled Engineeting Materials

Subject has been accredited with ISO-9002 certification for its Silvassa factory.

It’s specialized material find applications in a wide range of areas like Automobiles, Furniture, Packaging, Electrical, Electronics Appliances, Telecommunications, Chemicals, Material Handling Equipment, Consumer Durable, Agriculture and Defence.

technical collaboration

The company has technical collaboration with:-

· Targor GmbH (Formerly Known as Hoechst A. G., Germany)

Established in the year 1995

Obtain from - Polyproplyne Compound

· Constab Engineering Plastics GmbH, Germany

Established in the year 1996

Obtain from - Additive and Performance Master Batches

· Sumitomo – Mitsui Polyolefin Inc., Japan

(Formerly Known as Mitsui Toatsu Chemical Inc)

Established in the year 1997

Obtain from – Grand Polymers Inc., Japan

In the year 1997, the company tied up with Grand Polymers, Japan. Grand Polymers was is joint venture of Mitsui Petrochemicals, Ube industries and Polypropylen Division of Mitsui Toastu Chemicals.

In the year 2002, Grand Polymers merged with Sumitomo Petrochemicals to form a global giant called Sumitomo Mitsui Polyolefin Inc., Japan.

GRAND POLYMERS – TIPCO ALLIANCE :-

Grand Polymers Company Limited, Japan is a joint venture of Mitsui Petrochemicals, Ube Industries and Polypropylene Division of Mitsui Toatsu Chemicals, engaged in the production, sales and technical services of performance plastics based on polypropylene. Grand Polymers Company Limited, Japan is the major supplier of polypropylene compounds to automotive companies in Japan, such as :-

· Honda Motors

· Toyota Motors

· Suzuki Motors

· Mitsuibishi Motors, etc.

The range of products being by Tipco-Grand Polymers alliance covers all the major components made out of polypropylene compounds for automotive applications for Honda Siel, India.

profiles

Performance Plastics are playing a major role in the development of energy efficient automobiles, high performance consumer durables, etc. Most such resins are produced at post polymerisation stage by compounding of two or more commodity polymers along with reinforcing fibers and fillers.

In order to meet the growing demand of performance plastics, Tipco had entered into technology agreement with leading companies around the world to manufacture these products in India.

Applications for master batches includes :-

· Masterbatches for Cast PP Films

· Masterbatches for Woven Sacks

· Masterbatches for Packaging Films

· Masterbatches for PP Fibres and Yarn

· Masterbatches for Injection Moulding

Future Outlook:

The company is dealing mainly with Automative sector which has bounced back after three years of sluggishness and economic lowdown and resulting demand of their product also started growing.

The company has developed and unique Eco-friendly Phenolic Jute Profiles, which is Patented by the name “Tipwood” with its capability to replace the Conventional Wood requirements.

The company is also giving greater emphasisi to achive market penetration for its unique and ecofriendly Phenolic jute Profiles.

Name of the company

TIPCO INDUSTRIES - LIMITED

Presented By

Jointly company & Chargeholder

1) Date and description of instrument creating the change

No instrument was executed. Charge created on 27.03.2000 by way of equitable mortgage by deposit

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

(Rs. In millions)

Dena Bank 349.300

Central Bank of India 101.000

Development Credit Bank Limited 153.200

Total 603.500

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

(1) Various immovable properties situated at Valsad (Gujarat) listed below:

a) N. A. Land admeasuring 4625 sq. mtrs., bearing Survey No. 187, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

b) N. A. Land admeasuring 56986 sq. mtrs., bearing Survey No. 186/1-A, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

c) N. A. Land admeasuring about 4 acres and 24 Gunthas bearing Survey No. 188 (part), 237/1-A, 238 (part), 186/1-A (part), with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

d) N. A. Land admeasuring about 2 acres and 55 Gunthas bearing Survey No. 238 (part), 237/1-C, 186/1-A (part), 186/1-B, 236/1, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

e) N. A. Land admeasuring about 3 acres and 33 Gunthas bearing Survey No. 188, 237/1-C, 238 (part) with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

f) N. A. Land admeasuring about 3 acres and 10 Gunthas bearing Survey No. 188, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

(2) Immovable Property situated at Masat Village (Silvassa) viz. The land bearing survey No. 328/1/1/1, admeasuring Hec. 4-00, (40000 sq. mtrs.) (10-00 acres), situated with in the limits of village Masat. In the Union Territory of Dadra & Nagar Haveli with Structures there on. And entire plant and machineries with spares, stores and consumables, present and future.

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

Security created by way of first charge on pari-passu basis in favour of consortium banks, to cover principal amount together with interest, costs, charges, expenses etc.

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

v Dena Bank, Share Bazar, Ambalal Doshi Marg, Mumbai – 400 023.

v Central bank of India, Mathurdas Visanji Road, Andheri (East, Mumbai – 400 069.

v The Development Credit Bank Limited, 165/172, S. V. Road, Jogeshwari (West), Mumbai – 400 012.

6) Date and brief description of instrument modifying the charge

No instrument was executed, charge created on 15.04.2005 by way of equitable mortgage by deposit of title deeds by constructive delivery.

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.

Past Modification:

Vide modification dated 16.07.2004, total amount secured was enhanced from Rs. 603.500 Millions to Rs. 630.500 Millions as per given below:

Dena Bank	Rs. 376.300 Millions
Central Bank of India	Rs. 101.000 Millions
Development Credit Bank Limited	Rs. 153.200 Millions
TOTAL:	Rs. 630.500 Millions

Present Modification:

The credit facilities granted to the company by the bank consortium comprising various credit facilities as given in detail in Memorandum of entry, now stands restructured under the Rehabilitation sachem as per break up given below:

Dena Bank	Rs. 420.140 Millions
Central Bank of India	Rs. 145.348 Millions
Development Credit Bank Limited	Rs. 184.346 Millions
TOTAL:	Rs. 479.834 Millions

Name of the company

TIPCO INDUSTRIES - LIMITED

Presented By

Jointly company & Chargeholder

1) Date and description of instrument creating the change

Agreement of Hypothecation (Goods & Book debts) Dated 25.11.1994

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

Rs. 61.500 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

Stocks of raw materials such polyproplene, LDPE, HDPE etc. Stock in process and finished goods such as PF resign in the form of moulding powder and other forms and thermoplastic materials, etc. consumable stores and spares, packing materials etc. both present & future, now being or hereafter brought in to or upon or now or hereafter in course of transit to any godowns, jathas or other place of storage at Valsad or other place whatsoever in the possession or occupation of the company.

All the present & future book debts, outstanding, moneys, receivables, claims, bils, rights, to or in movable propertities and movable assets and which are now due, owing or payable or belonging to the company or which may at anytime hereafter become due, owing payable or belonging to the company in the course of its business by any person, firm, company or body corporate or by the govt. Central or State or Indian Railways, any Government department or office or any Municipal or local or public or semi Government body or any body corporate or undertaking or project whatever in the public sector.

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

Security to be available as first charge

Details of credit facilities:

Facilities:	(Rs. in Millions)
Cash Credit Hypothecation	19.000
BP (DP/DA cum Supply bills)	16.500
Guarantees	5.000
L/C, DP / DA I/F	21.000

Interest / Commission to be fixed by the bank from time to time, the present rates being; CC (Stocks 17.75% p.a.); CC (Book debts 18.75% p.a.)

Margin to be specified by the bank from time to time.

Bank to have power of entry, power of appoint receiver, power of sale, etc.

Security to cover principal amount together with interest, cosus, charges, expenses etc.

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

Dena Bank Industrial Finance Branch, Maker Towers, Cufee Parade, Mumbai – 400 005.

6) Date and brief description of instrument modifying the charge

Letter of credit facility

Agreement of Hypothecation 17.06.2004 (Goods & movables etc.)

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.

Past Modification:

Vide modification dated 11.06.1997, total amount secured was enhanced from Rs. 61.500 Millions to Rs. 178.800 Millions, vide memorandum of second modification of Agreement of Hypothecation (Goods & movables etc.) dated 05.07.2000, total amount secured was enhanced from Rs. 178.800 Millions to Rs. 249.500 Millions.

Present Modification:

Total amount secured shall now include additional facilities of Rs. 27.000 Millions consisting of letters of credit Rs. 21.500 Millions Guarantee facility of Rs. 5.500 Millions plus existing facilities of Rs. 249.500 Millions Thus, the total limit enhanced of Rs. 276.500 Millions.

Facility now continued to be availed at Share Bazar Branch of the Bank at Mumbai.

Name of the company

TIPCO INDUSTRIES - LIMITED

Presented By

Jointly company & Chargeholder

1) Date and description of instrument creating the change

No instrument was executed. Charge created on 27.03.2000 by way of equitable mortgage by deposit

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

(Rs. In millions)

Dena Bank 349.300

Central Bank of India 101.000

Development Credit Bank Limited 153.200

Total 603.500

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

(1) Various immovable properties situated at Valsad (Gujarat) listed below:

a) N. A. Land admeasuring 4625 sq. mtrs., bearing Survey No. 187, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

b) N. A. Land admeasuring 56986 sq. mtrs., bearing Survey No. 186/1-A, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

c) N. A. Land admeasuring about 4 acres and 24 Gunthas bearing Survey No. 188 (part), 237/1-A, 238 (part), 186/1-A (part), with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

d) N. A. Land admeasuring about 2 acres and 55 Gunthas bearing Survey No. 238 (part), 237/1-C, 186/1-A (part), 186/1-B, 236/1, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

e) N. A. Land admeasuring about 3 acres and 33 Gunthas bearing Survey No. 188, 237/1-C, 238 (part) with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

f) N. A. Land admeasuring about 3 acres and 10 Gunthas bearing Survey No. 188, with structures thereon, present and future and also entire Plant and machineries and spares stores and consumables, situated at Village Abrama, Taluka & Dist. Valsad, in Gujarat

(2) Immovable Property situated at Masat Village (Silvassa) viz. The land bearing survey No. 328/1/1/1, admeasuring Hec. 4-00, (40000 sq. mtrs.) (10-00 acres), situated with in the limits of village Masat. In the Union Territory of Dadra & Nagar Haveli with Structures there on. And entire plant and machineries with spares, stores and consumables, present and future.

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

Security created by way of first charge on pari-passu basis in favour of consortium banks, to cover principal amount together with interest, costs, charges, expenses etc.

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

v Dena Bank, Share Bazar, Ambalal Doshi Marg, Mumbai – 400 023.

v Central bank of India, Mathurdas Visanji Road, Andheri (East, Mumbai – 400 069.

v The Development Credit Bank Limited, 165/172, S. V. Road, Jogeshwari (West), Mumbai – 400 012.

6) Date and brief description of instrument modifying the charge

No instrument was executed, charge created on 15.04.2005 by way of equitable mortgage by deposit of title deeds by constructive delivery.

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.

Total amount secured shall now include additional facilities of Rs. 27.000 Millions consisting of letters of credit Rs. 21.500 Millions Guarantee facility of Rs. 5.500 Millions By Dena Bank as under:

(Rs. In Millions)

	Existing	Fresh	Enhanced
Dena Bank	349.300	27.000	376.300
Central Bank of India	101.000	0.000	101.000
Development Credit Bank Limited	153.200	0.000	153.200
TOTAL:	603.500	27.000	630.500

Name of the company

TIPCO INDUSTRIES - LIMITED

Presented By

Jointly company & Chargeholder

1) Date and description of instrument creating the change

Agreement of Hypothecation (Goods & Book debts) Dated 25.11.1994

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

Rs. 61.500 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

Stocks of raw materials such polyproplene, LDPE, HDPE etc. Stock in process and finished goods such as PF resign in the form of moulding powder and other forms and thermoplastic materials, etc. consumable stores and spares, packing materials etc. both present & future, now being or hereafter brought in to or upon or now or hereafter in course of transit to any godowns, jathas or other place of storage at Valsad or other place whatsoever in the possession or occupation of the company.

All the present & future book debts, outstanding, moneys, receivables, claims, bills, rights, to or in movable propertities and movable assets and which are now due, owing or payable or belonging to the company or which may at anytime hereafter become due, owing payable or belonging to the company in the course of its business by any person, firm, company or body corporate or by the govt. Central or State or Indian Railways, any Government department or office or any Municipal or local or public or semi Government body or any body corporate or undertaking or project whatever in the public sector.

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

Security to be available as first charge

Details of credit facilities:

Facilities:	(Rs. in Millions)
Cash Credit Hypothecation	19.000
BP (DP/DA cum Supply bills)	16.500
Guarantees	5.000
L/C, DP / DA I/F	21.000

Interest / Commission to be fixed by the bank from time to time, the present rates being; CC (Stocks 17.75% p.a.); CC (Book debts 18.75% p.a.)

Margin to be specified by the bank from time to time.

Bank to have power of entry, power of appoint receiver, power of sale, etc.

Security to cover principal amount together with interest, cosus, charges, expenses etc.

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

Dena Bank Industrial Finance Branch, Maker Towers, Cufee Parade, Mumbai – 400 005.

6) Date and brief description of instrument modifying the charge

Joint Deed of ypothecation and

Joint Facility Restructuring Agreeemnt both dated 24.02.2005 and together purporting to modify a single charge.

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.

Past Modification:

Vide modification dated 11.06.1997, total amount secured was enhanced from Rs. 61.500 Millions to Rs. 178.800 Millions

Vide memorandum dated 05.07.2000, total amount secured was enhanced from Rs. 178.800 Millions to Rs. 249.500 Millions.

Vide modification dated 17.06.2004, total amount secured was enhanced from Rs. 249.500 Millions to Rs. 276.500 Millions

Facility to be achieved at Dena Bank, Sahre Bazar Branch, Mumbai.

Present Modification:

The existing financial assistance granted to the company by its lenders viz. Dena Bank, central Bank of India and Development Credit Bank Limited has been restructured under Rehabilitation scheme and the lenders have entered in to a Restructuring Agreement dated 24.02.2005.

Dena Bank is designated and recognized as the Lead Bank of the Dena Bank Consortium Consisiting of Dena Bank, Share Bazar Branch, Mumbai 400 001, Central Bank of India, Andheri (East) Mumabi and Development Credit Bank Limited, Dongri, Mumbai

Details of the restructured/ realigned credit facilities is given below:

(Rs. In Millions)

Restructured Facilities	DB	CBI	DCR	TOTAL:
Term Loan	81.088	49.518	29.446	160.052
WCTL	110.500	34.830	56.000	209.330
FITL	74.000	26.600	28.800	129.400
Working Capital:
CCH	11.200	3.700	5.500	20.400
WCDL	44.900	14.700	22.000	81.600
D/L (involed)	1.952	0.000	0.000	1.952
TOTAL (A)	371.148	129.348	160.346	660.834
Non Fund Facilities:
LC – I/F	21.500	7.000	10.500	39.000
Guarantee	27.500	9.000	13.500	50.000
Total (B)	49.000	16.000	24.000	89.000
Grand Total (A + B)	420.140	145.348	184.346	749.834

Security created by way of first charge in favour of the Dena Bank Consortium Jointly and to each of them Severally for the due payment and discharge of the credit facilities to the bank along with Interest, costs, charges etc.

Property charged now covers the following:

The whole of the current assets namely, stocks of raw material, stocks in process, semi finished goods and finished goods, stores and spares not relating to plant & machinery, both present & future whether now lying loose or in case or which are now lying or stored in or about or shall from time to time be brought in to or upon or be stored or be in or about of the company factories. Premises and godowns situate st their unit o. 1 at Dharampur Coss Road, National Highway No. 8, Adrama, Valsad 396 001 and Unit No. 2 at 328/1/1/1 village Masat, Silvassa, UTDN or wherever else the same may be or be hold by any party to the order to disposition of the company or in the course of transit or on high seas or on order or delivery. Howsoever and whatsoever in the possession of the company and eighter by way of substitution or addition.

As Per Web Site:

In the year 1945, when Mr. B.M. Thakkar established India's first Plastics raw materials manufacturing unit, for Thermosetting Resins and Moulding compounds, Tipco initiated a small-begining in self-relaince.

In half a century, Tipco witnessed the birth of New India and participated as a small molecule, in the exciting process of moulding the nation, into a Grand shape.

During these five decades. Tipco has been an active partner in evolution of the Plastics Industry of India.

ENGINEERING THE FUTURE THROUGH RESEARCH

Tipco Industries' vanguard role in the formulation of thermoplastics compounds, is owed to it's consistent commitment to research.

Right from inception, the company's state-of-art research laboratory has been the nerve center of the organization. This Govt. recognized lab has over the years comeup with unique range of specialty plastic materials, that marries aesthetic and functionality.

The company's focused R&D efforts have resulted in development of polypropylene based dashboards, bumper grade for automobiles, mineral-filled polypropylene for furniture and appliances.

Extensive Research is currently under way in product areas like blends, alloys and thermoplastic elastomers, among others.

QUALITY AT WORK

Even before Total Quality Management emerged as buzzword of the 90s, its philosophy was already at work in Tipco Industries Ltd.

Playing a part in quality consciousness at Tipco is a bank of utter modern R&D equipment, state-of-art production facilities and some of the most stringent testing standards in the country. As a result of their consistant commitment for international quality, Tipco was awarded ISO-9002 for it's Silvassa factory.

GOING THE EXTRA MILE

Beyond fulfilling product needs, providing finetuned solutions is more the norm at Tipco Industries. One area this expresses itself is through strategic alliance with major Petrochemical industries, for development and supply of specialty compounds and masterbatches.

The other area is Application Development. Here, a qualified and competent team of engineers responds to client needs, by conducting in-depth studies of assignment on hand.

Physical performance properties demanded by a specific application are "designed-in" and recommendations are made.

WHERE DO THEIR PRODUCTS GO?

Tipco's specialized materials find applications in a wide range of areas like automobiles, in a wide range of areas like automobiles, furniture, packaging, electrical, electronics, appliances, telecommunications, chemicals, material handling equipment, consumer durable, agriculture and defense.

GLIMPSES OF THE FUTURE PLASTICS REVOLUTION

Researching into and commercializing specialized materials based on advanced polymers is just a part of what clients can expect from Tipco Industries.

Beyond this, the company has embarked upon a massive expansion project. This will take the current installed manufacturing capacity from 10,000 TPA to 25,000 TPA, using the most advanced technology available world-wide.

FROM CHAIRMAN'S DESK

It is said that the only constant thing in Plastics is change. Plastics Industry world over is experiencing the phenomenon in an increasing manner.

Even at home, they are passing through dynamic events, innovations, developments, improvements, modifications, new products, new applications in the Indian Plastics Industry, at such a rapid rate that information techniques would play an extremely inportant role for planning and sustained growth.

They at Tipco Industries Ltd. would like to contribute regularly, to help spread knowledge, information and share their experiences in the field of:

Engineered Polymers
Performance Plastics Compounds
Thermoset Composites
New Thermosetting materials.

Setting up this website is their first small step in this direction. In years to come they would publish specially designed sections at this website, all their 5 decades of exciting experience with plastics.

TECHNOLOGY COLLABORATIONS

Performance Plastics are playing a major role in the development of energy efficient automobiles, high performance consumer durables etc. Most such resins are produced at post polymerization stage by compounding of two or more commodity polymers alongwith reinforcing fibers and fillers.

In order to meet the growing demand of performance plastics, Tipco have entered into technology agreement with loading companies around the world to manufacture these products in India.

SUMITOMO MITSUI POLYOLEFIN INC, JAPAN

In 1997, Tipco tied up with Grand Polymers, Japan. Grand Polymers was a joint venture of Mitsui Petrochemicals, Ube Industries and Polypropylene Division of Mitsui Toatsu Chemicals.

In year 2002, Grand Polymers merged with Sumitomo Petrochemicals to form a global giant called Sumitomo-Mitsui Polyolefin Inc., Japan.

Sumitomo-Mitsui Polyolefin is now called PRIME POLYMERS and is engaged in the production, sales and technical service of Advanced Polypropylene Compounds. It is also is one of the largest supplier of Polypropylene and Polypropylene Compounds to automotive companies in Japan, such as Honda Motor Corp., Toyota Motors, Suzuki Motors, Mitsuibishi Motors, etc.

Polypropylene Compounds offered by Tipco- Prime Polymer tie-up in India are suitable for all major automotive components for many OEMs in India such as Honda Siel, Maruti Udyog, Toyota Kirloskar, Tata Engineering, Bajaj Auto, Ford India, Hyundai Motors India, etc.

Through this tie-up, Tipco has introduced in India, the latest generation Automotive PP Compounds with lower density, while keeping high Stiffness and Impact Strength. These Grades are highly suited for lowering the cost of existing components. These revolutionary PP compounds are now already in use in Inda with various Automobile OEMs :

Dashboard NPI 200 IN Stiffness 2500 MPa ; Impact 400 J/m

Bumper 1 TB 6J Stiffness 1700 MPa ; Impact 500 J/m

Bumper 2 X 408 IN    Stiffness 1450 MPa ; Impact 600 J/m

Interiors ISRH 35 NF Stiffness 2200 MPa ; Density 0.99

Cowl Top ISL 10 BX1 Stiffness 2000 MPa ; Density 0.97

These new state-of-the-art PP Compounds will soon replace existing PP Compounds due to their high strength to density features which ultimately leads to lower part thickness and component cost reduction.

For further information please contact them at any of their offices.

Business Group:

THERMOSETS

With a product range on par with international standards, their Thermosets business group find wide applications in a veriety of areas - from automotive parts to precision electrical switchgear components, since 1945

POLYPROPYLENE

Tipco's specialized polypropylene materials find applications in a wide range of areas like automobiles, in a wide range of areas like automobiles, furniture, packaging, electrical, electronics, appliances, telecommunications, chemicals, material handling equipment, consumer durable, agriculture and defense.

MASTERBATCHES

Tipco has a complete range of performance enhancing specialty Additive Masterbatches for Plastics Industry. This product line will constitutes one of the widest variety of specialty Masterbatches available for the Indian Plastics Industry

COMPOSITES

Tipco's composites division was incorporated in December 1990, with a vision to develop economically viable, environment-friendly composite materials based on thermosetting resins. The division used the latest Resin Transfer Moulding and Pultrusion Plants. Composites are cost-effective subsitutes for traditionally used materials and are used in a variety of applications

STRUCTURED PLASTICS PRODUCTS

In a quest to create a suitable wood-subsitute, Tipco has introduced TIPWOOD. Tipwood products are made from Specialty Polypropylene Compounds. TIPWOOD looks and feels like wood and can be worked on like wood. It can be processed, shaped and assembled into a host of ready-to-use products such as Industrial Pallets, School and Park Benches, Fencing Systems, Road Signs etc.

TIPCLEAN PHENYL DISINFECTANT

Super cleaning strength for safety of the family. Latest German technology. Fights and kills germs 100%. Super-strong disinfectant. Used for hospitals, residences, restaurants, shops and offices and bathrooms / kitchens.

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.40.90
UK Pound	1	Rs.80.78
Euro	1	Rs.55.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	-
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		24

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