MIRA INFORM REPORT

Report Date :

06.11.2007

IDENTIFICATION DETAILS

Name :	ESS DEE ALUMINIUM LIMITED
Registered Office :	Plot No. 124-133, Panchal Udyog Nagar, Bhimpore Daman - 396210
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.02.2004
Com. Reg. No.:	56-3385
CIN No.: [Company Identification No.]	U27203DD2004PLC003385
TAN No.: [Tax Deduction & Collection Account No.]	MUME05284G
PAN No.: [Permanent Account No.]	AABCE3113G
Legal Form :	Public Limited Liability Company. Company’s Shares are listed on the stock Exchange.
Line of Business :	Manufacturers of Blister Alu Foil, Alu Foil for Strip Pack, Rigid PVC, Glassine Paper Foil.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD8200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. The company is doing well. It’s trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory :	Plot No. 124-133, Panchal Udyog Nagar, Bhimpore Daman - 396210
Tel. No.:	91-260-2220314 / 15
Fax No.:	91-260-2220316
E-Mail :	flexart@duttagroup.net / essdee@duttagroup.net
Corporate Office :	4^TH Floor, Vidyasagar, Western Express Highway, Malad (East), Mumbai – 400097, Maharashtra
Tel. No.:	91-22-66919955
Fax No.:	91-22-56940986
E-Mail :	flexart@duttagroup.net
Website :	http://www.duttagroup.in

DIRECTORS

Name :	Mr. Sudip Bijoy Dutta
Designation :	Chairman and Managing Director
Address :	Flat No. 506, Challenger Tower – 2, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra
Date of Birth/Age :	04.05.1972
Date of Appointment :	10.02.2004
Name :	Mr. Prasenjit Datta
Designation :	Director
Address :	Flat No. 1704, Challenger Tower – 2, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra
Date of Birth/Age :	16.06.1963
Date of Appointment :	30.04.2004
Name :	Mr. Shankar Sadashiv Kamble
Designation :	Director
Address :	No. 305, Sai Sharan, N. C. Kelkar Road, Dadar (West), Mumbai – 400028
Date of Birth/Age :	21.02.1946
Date of Appointment :	31.03.2006
Name :	Mr. Gautan Mukherjee
Designation :	Director
Name :	Mr. Ramdas L Baxi
Designation :	Director
Name :	Mr. Dilip Phatarphekar
Designation :	Director
Name :	Mrs. Aarti Sudip Dutta
Designation :	Director
Address :	Flat No. 506, Challenger Tower – 2, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra
Date of Birth/Age :	01.09.1980
Date of Casing :	31.03.2006
Date of Appointment :	27.06.2005
Name :	Mr. Narayana Mayya
Designation :	Director
Address :	Raas B – 301 Vasantutsav, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra
Date of Birth/Age :	29.11.1953
Date of Casing :	31.03.2006
Date of Appointment :	15.09.2005
Name :	Mr. Darshan Drupad Majmudar
Designation :	Director
Address :	Flat No. A 3, Sahyagiri C. F. S. Limited (East), Mumbai – 400063, Maharashtra, India
Date of Birth/Age :	07.06.1961
Date of Appointment :	12.04.2006

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Sudip Bijoy Dutta	7274500
Mrs. Aarti Sudip Dutta	234500
Mr. Prasenjit Datta	200
Vinaya Nilesh Desai	200
Ajoy Premkumar Malhotra	200
Manash Tarun Mazumdar	200
Ajay Sushil Doshi	200

BUSINESS DETAILS

Line of Business :

Manufacturers of Blister Alu Foil, Alu Foil for Strip Pack, Rigid PVC, Glassine Paper Foil.

Products :

Production Description	ITC Code No.
Manufacturer of Bristle Aluminium / PVC Rigid Film	76.07 / 39.20

Brand Names :

GENERAL INFORMATION

Customers :	· CIPLA · Pfizer · Wockhardt · DRL · TorrenT · IPCA · Lupin · Wyeth · Sun Pharma · Intas · Cadila Pharma · Aurobindo · Unichem · Blue Cross · Glenmark · Serdia · Bayer · Wriggleys · J B Chemicals · Ranbaxy · Madras Pharma · Ind Chemie · Indoco · Hetero · GSK · Dr. Reddys Lab · Themis Labs · Zydus Cadila · Reckitt Benckiser CFL
No. of Employees :	900
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	M. P. Chitale and Company Chartered Accountants
Address :	Daman
Associates :	Flex Art Foil Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs. 10/- each	Rs. 240.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26414800	Equity Shares	Rs. 10/- each	Rs.264.148 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		264.100	75.100	15.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1792.800	98.700	(3.100)
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2056.900	173.800	12.000
LOAN FUNDS
1] Secured Loans		258.500	237.500	82.100
2] Unsecured Loans		0.900	19.900	21.200
TOTAL BORROWING		259.400	257.400	103.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2316.300	431.200	115.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		266.500	153.600	79.900
Capital work-in-progress		341.200	34.600	0.000
INVESTMENT		555.900	40.200	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	165.200	80.200	37.000
	Sundry Debtors	637.200	222.600	30.000
	Cash & Bank Balances	541.400	20.600	4.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	134.200	32.300	3.900
Total Current Assets		1478.000	355.700	75.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	232.100	142.000	39.600
	Provisions	93.200	10.900	0.000
Total Current Liabilities		325.300	152.900	39.600
Net Current Assets		1152.700	202.800	35.400
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2316.300	431.200	115.300

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1529.500	716.700	95.300
Other Income		31.000	10.700	0.000
Total Income		1560.500	727.400	95.300
Profit/(Loss) Before Tax		312.900	118.200	0.900
Provision for Taxation		36.700	24.300	4.000
Profit/(Loss) After Tax		276.200	93.900	(3.100)
Expenditures :
	Cost of Goods Sold	0.000	0.000	0.000
	Manufacturing Expenses	46.500	39.700	21.300
	Administrative Expenses	62.500	32.400	1.700
	Raw Material Consumed	935.900	378.700	48.000
	Purchases made for re-sale	0.000	0.000	0.000
	Consumption of stores and spares parts	0.000	0.000	0.000
	Increase/(Decrease) in Finished Goods	0.000	0.000	0.000
	Salaries, Wages, Bonus, etc.	27.400	18.600	3.600
	Managerial Remuneration	0.000	0.000	0.000
	Payment to Auditors	0.000	0.000	0.000
	Interest	41.600	36.200	5.300
	Insurance Expenses	0.000	0.000	0.000
	Power & Fuel	25.500	20.700	0.000
	Depreciation & Amortization	9.800	6.500	1.200
	Other Expenditure	0.000	0.000	0.000
Total Expenditure		1149.200	532.800	81.100

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt- Equity Ratio	0.23	1.94	8.61
Long-Term Debt-Equity Ratio	0.06	1.27	8.61
Current Ratio	2.14	1.36	1.89
TURNOVER RATIO
Fixed Assets	6.72	5.79	1.01
Inventory	12.47	12.23	2.21
Debtors	3.56	5.67	2.72
Interest Cover Ratio	8.52	4.27	1.17
Operating Profit Margin (%)	23.82	22.45	7.76
Profit Before Interest and Tax Margin (%)	23.18	21.54	6.51
Cash Profit Margin (%)	18.70	14.01	(1.99)
Adjusted Net Profit Margin (%)	18.06	13.10	(3.25)
Return On Capital Employed (%)	25.81	56.51	0.000
Return on Net Worth (%)	24..76	101.08	0.000

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006
Type	1^st Quarter	2^nd Quarter
Sales Turnover	648.300	635.300
Other Income	14.200	33.600
Total Income	662.500	668.900
Total Expenditure	497.800	502.100
Operating Profit	164.700	166.800
Interest	13.100	10.600
Gross Profit	151.600	156.200
Depreciation	4.500	8.000
Tax	15.900	34.100
Reported PAT	131.200	114.100

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW: 

The Company has recorded a significant growth in its performance. Total Income grew to Rs.1438.189 Millions registering a growth of 126% over previous year Income of Rs.635.387 millions Profit after Tax Improved by 194% to Rs.276.178 Millions in the current year compared to Rs.93.908 millions in the previous year.

 The above growth has been possible primarily due to installation of additional capacity, efficient capacity utilization, besides Increase In our customers' base coupled with rapid growth In the pharmaceutical sector. 

 INDUSTRY STRUCTURE AND DEVELOPMENT, OUTLOOK:

Packaging combines technology and creativity In order to protect products and meet the criteria of safety, convenience and aesthetics. Its importance Is highlighted by the fact that it preserves the quality and lengthens the shelf life of the products. With the changing business environment in which we operate, packaging has acquired a new dimension of adding brand value to products. With increasing education levels, greater consumer awareness and rising disposable incomes with the new generation of health conscious consumers, there Is a discernible trend towards well packed and branded products. Besides, there Is also Increasing demand for low priced goods in smaller pack sizes resulting in customization. The Company's major business flows from the pharmaceutical segment and It constitutes a fast growing segment in India. Pharmaceutical packaging consists of various types of glass, pet bottles, strip and blister packs, injectibles, ampoules, bulk packs, etc. In today's times, the packaging function has extended from merely preservation of the medicines to prevention of product tampering and counterfeiting, the assurance of product dispensing accuracy and the promotion of patient compliance with product dosage schedules.

 Consumerism is set to Increase with advent of retail chains opening across the Country. The Company foresees explosive growth for quality packaging materials for years to come. To tap this accelerated demand, The Company is foraying Into Food & FMCG segment on the backing of satisfied global pharmaceutical companies in the Country.

 SEGMENT REVIEW: 

 Aluminium Foil:

During the year under review, aluminium rolling mill capacity was enhanced from 3600 tpa to 9100 tpa, following commissioning of the second cold rolling mill In the month of November, 2006. With the commencement of second cold roiling mill, the Company has now the facility of downguaging of foil to ultra thin gauges to meet demand for aluminium foils of the FMCG Industries.

They are passing through an economic growth phase and resultantly witnessing the opening up of retail chains across the Country and consequent demand for increased packaging requirements. Aluminium foil remains best suited for products requiring longer shelf life and preservation of properties.

 Realisation price per Kg has increased due to Introduction of thinner gauge of Aluminium foil. Company's plans for introduction of newer products are under customers' review and shortly these products are expected to be introduced commercially in the market. 

PVC/PVdC: 

During the year under review, The Company has set up and commissioned PVdC coating line for barrier sensitive high end pharmaceutical products. This has resulted in growth In revenue as well as better realization of margins, as there are very few manufacturers In the Country having similar facility.

During the year, The Company has also introduced metailzed PVC film and the same has been accepted favorably by the Industry.

Spurious drugs pose a serious threat to many pharma products and It has been The Company's endeavor to assist pharmaceutical companies with Innovative packaging solutions to thwart such menace. 

 OPPORTUNITY AND THREATS: 

With the extension of value added products like cold formed 'Alu Alu' laminates and child resistant laminates, The Company is becoming a single point window solution provider to the pharmaceutical Industry.

With the DMF (Drug Master File) type III accreditation and international acquisitions by Indian pharmaceutical companies, opportunities are opening up on the possibility of creating a Global Hub and Spoke model for serving international pharmaceutical companies out of India. Similarly, MNCs are now creating hubs and utilizing new found Interest in India as a sourcing centre. Pharmaceutical sector in India is booming as apparent from the fact that the maximum number of US ANDA's are from India and we also have the maximum number of USFDA approved pharmaceutical plants are from India.

With the opening of retail chains by large Indian business houses and presence of international players. In the retail sectors in India, there will be a proliferation of Food and FMCG requirement, which Is the new product foray The Company is going for.

Some of the major threats which we may face are on account of volatility in aluminium prices, fluctuation In foreign exchange rates, change In government policies and competition from existing and prospecting manufacturers' of Company's products. 

NEW PROJECT/NEW BUSINESS:

The Company plans to foray Into manufacturing and supply of packaging materials for Food & FMCG segments. Setting up of facility for manufacturing of such materials is underway and most of the plant & machinery have also been received and commissioned. Sampling to business houses have been done and commercial operations are underway. 

SUBSIDIARY: 
 The Company has a wholly owned subsidiary, named M/s. Flex Art Foil Private Limited. It provides printing facilities to pharmaceutical companies for their packaging materials at various locations across the Country. With the Introduction of new products and spurt in the number of registered DMFs (Drug Master File), service vis a vis lead times have assumed primary Importance. With its unique 'Hub and Spoke' model. It is catering to the pharmaceutical Industry as a strategic partner to their growth. It has recently doubled its printing capacity at its Baddi unit at Himachal Pradesh and setting up of a similar unit In Sikkim is underway. 

The report of the Directors' and the accounts of the subsidiary company, together with the Auditors' Report thereon are attached. Requisite statement pursuant to section 212 of the Companies Act, 1956, is also attached herewith as Annexure-'C'. 

As per Website

The epitome of quality and service which is synonymous in a Pharma industry for packing material starts and ends with Dutta Group of Companies (DgC). The group in a short span of less than a decade has carved a niche driven purely on the vision of their CMD, Mr. Sudip Dutta. He has pioneered the effort of having major packaging products under one roof.

From a humble beginning of manufacturing pouches out of prelaminated and printed foil, the group today has its own four converting units in strategic locations all over India doing conversion of approximately 3000 MT per annum. The long distance covered in such a short span with dedicated customers has been purely on the merit of unmatched quality and service.

Further, expanding on the vision and refusing to rest on the laurels received on account of achieving the above status, the group, under the dynamic leadership diversified into a synergic packing product - PVC rigid film - under the flag name of EssDee Aluminium Limited(erstwhile Atlanta Vinyl Private Limited - Goa Unit) Today Atlanta has an installed capacity of 5400 tonnes per annum and has been amalgamated with Ess Dee Aluminium Limited

The latest addition in the group is the startup of EssDee Aluminium Limited With an installed capacity of 3000 tonnes per month it is a calculated move to enter into upstream integration. This unit is the latest feather in the cap of DGC. It is the flagship company of the Group

The corporate office of DgC is located in the western suburbs of Malad and branch offices are located in all leading metros and new ones are being planned. The Corporate office is housed in an area approximately measuring 5,000 sq. ft. which provides the employees with an ambience working space.

The centralized departments of Purchase, Finance, Marketing both National and International and Quality Assurance are housed in the corporate office, which allows a speedy implementation of proposals, views and strategies due to the daily interaction between the management and the senior staff. The branch offices are monitored and controlled from the corporate zone with the help of IT technology and books of accounts are maintained with the help of the latest ERP package.

Any customer who visits their corporate office in connection with business is mesmerized with the warmth and courtesy extended by one and all, which automatically mounts a confidence in their hearts to do business with us.

Milestones

1991
A small unit in Jogeshwari with 12 employees, manufacturing pouches / sachets and having an annual turnover of about a lakh, thereby multiplied 12 times by the end of 1994.

1995
Appointed as one of the distributors for Indian Aluminium Company Limited (INDAL).

1996
The first step towards diversification began - Aluminium Foil Printing. On acquiring a sick unit in Goregaon on a rental basis, the company entered into pharmaceutical packaging & printing market. With a strong focus on Quality and Customer Service, the business grew to new heights.

1998
With business growing, the need for increase in capacity automatically became necessary. A plot of 5,000 sq. ft. was purchased at Vasai and a new unit commenced with a single machine. Subsequently, 2 new machines were added, thus contributing to an increase in business for the company.

2000
In a short span of 2 years, optimum capacity was reached and there was a need to expand, to fulfill the increasing demand from its valued customers. Given the Tax benefits at Daman, a new unit was commissioned at daman on 1,000 sq. ft. area with one machine.

After reaching 100% capacity utilization, 2 new automatic machines were purchased and a state-of-the-art plant was set up in an area 12,000 sq. ft. area.

The organization with it`s expertise and experience worked on the principle of backward integration and subsequently a coating and laminating unit was setup at Daman.

Like Aluminium foil, PVC is a major packaging material consumed in the pharma industry. With massive potential and identical customer base, this was a natural forward intergation for the comapany. To test the market potential DgC initiated trading of PVC films, procured from major manufacturers.

2001
Due to increased concentration of Pharma industry in the region, DgC commenced its new printing unit in Goa on 10,000 sq. ft. area.

With increase in sales, DgC won the Indal Award for Best Converter for the year 2001-2002 and got a of appreciation from its core customers for reducing their inventory with timely and quality supplies.

2002
With the successful commissioning of all 3 factories and PVC trading, DgC has reached a status whereby it is ranked among the top Pharma Blister Packaging suppliers in India.

With the support of their valued customers, business of PVC became successful and this success was later converted to setup a PVC Calendering plant, to manufacture their own rigid PVC films.

2003
To consolidate the trust and support of the industry, the company further diversified to synergy fields of Pharma packaging i.e. PVC rigid film and the dream project of Atlanta Vinyl Private Limited was born.

2006

To consolidate and for future plans Atlanta Vinyl Private Limited was amalgamated with Ess Dee Aluminium Limited, under the scheme of Amalgamation approved by shareholders of both the companies and approved by the Highcourt of Bombay and Goa Bench of Bombay Highcourt.

DMF registered with USFDA

ESS DEE Aluminium DMF No. 19602

Flex Art Foil Private Limited DMF No. 19606

Flex Art Foil Private Limited (Unit-Vasai)

Flex Art was the first major unit of the group, which is located in Vasai, about 3 kms. away from Ahmedabad - Mumbai Express Highway. It has a production area of approximately 5,000 sq. ft.

Established : 1998

Location : A 20/21, Sagar Sangam Industrial Estate, Village Sativali, Vasai (E), Thane 401 208.
Maharashtra, India.

Machinery : The unit is well equipped with highly sophisticated and automized machinery and equipment for rotogravure printing, slitting, doctoring and quality analysis.

Manpower : The unit has highly skilled, trained and well experienced workers.

Capacity : Production of Aluminium foil is 75 tons per month.

ATLANTA VINYL (Now ESS DEE Aluminium Limited Goa Unit)

ESS DEE Aluminium Ltd (Unit Goa), is a state-of-the-art plant in Kundaim at Goa, housed in an area of 40,000 sq. ft. It is a pleasure to one and all to have such a superlative factory during contemporary times, which will satiate the urge, for quality and service.

The GMP standards set in the plant in synergy with the latest technology from a leading plastic manufacturer of Germany, automatically enhances the reputation of the product in terms of quality.

Established : 2003

Location : Plot No. 161, Kundaim Industrial Estate, Kundaim, Goa 403 115.

Contact Number: (91-832) 2395422/23

Fax: (91-832) 2395874

Machinery : The factory has a brand new calendering line from Germany. It has been modeled on the rules of US FDA requirements, wherein by the material, right from raw material stage to finished product, is totally untouched by human hands and current GMP standards can be observed in the unit. Atlanta Vinyl Private Limited, is the only unit in the entire South East Asia having a dedicated calendering line for the Pharma Industry.

Manpower : It is managed by a team of dedicated managers and experienced staff having a rich experience in the PVC industry.

Capacity : Production capacity is 450 tons per month.

ESS DEE ALUMINIUM LIMITED

Ess Dee Aluminium Private Limited is located at Daman in an area of 60,000 sq.ft. The plant is modelled on the latest generation CGMP practices and is one of it's own in the aluminum foil industry.

Machinery : It has a 4 high foil rolling mill with the latest equipments for producing quality foil. Other equipments include Separating machine, Annealing furnace, Roll grinder, Coating machine and Heat + Pressure Lamination. Ess Dee has a 100% tie up with GARMCO, Bahrain to make it the only company in this part of Asia to guarantee quality foil for the pharmaceutical industry.

Manpower : The factory has skilled and trained manpower which are some of the best in the Indian Aluminium Industry.

Capacity : Production capacity is 300 tons per month.

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.39.33
UK Pound	1	Rs.81.75
Euro	1	Rs.57.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		62

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.	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