MIRA INFORM REPORT

Report Date :

26-09-2007

IDENTIFICATION DETAILS

Name :	MAHYCO VEGETABLE SEEDS LIMITED
Registered Office :	Resham Bhavan, 4^th Floor, 78, Veer Nariman Road, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.12.1999
Com. Reg. No.:	11 – 122855
TAN No.: [Tax Deduction & Collection Account No.]	MUMM14091A
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	To engage in the business of researching, breeding, transmitting, developing, purchasing, distributing and selling either by wholesale or in retail all kinds and varieties of vegetable seeds.

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 :	USD 1001564
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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 :	Resham Bhavan, 4^th Floor, 78, Veer Nariman Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22049497
Fax No.:	91-22-22047871
E-Mail :	vemballore.gangadhara@mahyco.com

DIRECTORS

Name :	Mr. Badrinarayan Ramulal Barwale
Designation :	Chairman
Address :	72 – B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	13.08.1931
Date of Appointment :	01.12.1999
Name :	Mr. Rajendra Badrinarayan Barwal
Designation :	Director
Address :	72 – B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	12.12.1955
Date of Appointment :	01.12.1999
Name :	Mr. Shyam Sunder Gopilal Agrawal
Designation :	Director
Address :	Jolly Maker Apartment No. 2, Flat No. 62, Opposite World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	02.12.1947
Date of Appointment :	01.12.1999
Name :	Mr. Sekhar M. Natarajan
Designation :	Director
Address :	No. 17, Grauri Giridhar Road No. 2, Pestom Sagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	14.12.1953
Date of Appointment :	16.01.2007
DIN No. :	01031445
Income – tax PAN No. :	AADPN1278J
Name :	Mr. Brent Eugene Zehr
Designation :	Director
Address :	Mahyco Life Science Research Centre, P. O. Box 76, Jalna - 431203, Maharashtra, India
Date of Birth/Age :	26.08.1961
Date of Appointment :	03.11.2000
Name :	Ms. Usha Brent Zehr
Designation :	Director
Address :	Mahyco Life Science Research Centre, P. O. Box No. 76, Jalna – 4310203, Maharashtra, India
Date of Birth/Age :	28.11.1961
Date of Appointment :	03.11.2000
Name :	Mr. Eric Wallace Johnson
Designation :	Director
Address :	62, Kim Yam Road, Singapore – 239363
Date of Birth/Age :	17.10.1956
Date of Appointment :	28.02.2002
Date of Ceasing :	17.05.2005
Name :	Mr. Nicole Donald Ringenberg
Designation :	Director
Address :	9, Ardmore Park, # 25 – 01, Singapore – 259955
Date of Birth/Age :	14.07.1961
Date of Appointment :	31.08.2004
Name :	Mr. Shrirang Padmanab Adarkar
Designation :	Director
Address :	“Dilkoosha”, Altamount Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	02.10.1920
Date of Appointment :	31.08.2004
Ceasing Date :	07.03.2005
Name :	Mr. Rajagopalan Santhanam S.
Designation :	Director
Address :	903, Soverign Co-operative Housing Society, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	25.04.1965
Date of Appointment :	16.01.2007
DIN No. :	00025669
Name :	Mr. Felipe Benjamin Osorio
Designation :	Director
Address :	Flat No. 111 & 121, 9^th and 10^th Floor, Unit No. 1, “Narain Terraces”, Union Park Road, Pali Hill, Bandra [West], Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	26.09.1965
Date of Appointment :	01.02.2005
Name :	Mr. Jerry Brownie Flint
Designation :	Director
Address :	151, Lorong Chuan, # 06 – 08, New Tech Park, Singapore – 556741
Date of Birth/Age :	20.09.1961
Date of Appointment :	17.05.2005
Name :	Mr. Allen Smith
Designation :	Director
Address :	27, Leonie Hill, # 03 – 02 Leonie Gardens, Singapore – 239226
Date of Appointment :	31.08.2004
Name :	Mr. Mark James Deadwyler
Designation :	Additional Director
Address :	BLK 15, Ardmore Park, # 06.01, Singapore – 259959
Date of Birth/Age :	08.05.1968
Date of Appointment :	16.01.2007
CIN No. :	L74999MH1949PLC007912 Name of the Company : Monsanto India Limited - Director

KEY EXECUTIVES

Name :	Mr. Gangadharan V.
Designation :	Company Secretary
Address :	B/2/7 Keshav Park Society, Near Premchand Nagar, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	01.06.1942
Date of Appointment :	01.05.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	Percentage of Holding
Bodies Corporate	84.38
Directors / Relatives of Directors	14.88
Other top 50 share holers	0.74
Total	100.00

Names of Shareholders	No. of Shares
Mr. Badrinarayan Ramulal Barwale	10
Mr. Rajendra Badrinarayan Barwale	10
Mr. Shyam Sunder Gopilal Agrawal	10
Mr. Shrirang Padmanab Adarkar	10
Ms. Usha Brent Zehr	86750
Ms. Prema Ramakant Garg	86750
Ms. Asha Rajiv Bhojnagarwala	86740
Ms. Savita Banwari Bagdiya	86740
Ms. Shobha Navin Jain	86740
Mr. Rajendra Prasad Ritesh Mishra	21684
Rajur Ganapati Investment & Trading Private Limited	213939
Harbhajan Investment & Trading Private Limited	206496
Harirani Investment & Trading Private Limited	233076
Jamwadi Investment & Trading Private Limited	207288
Sarkara Investment & Trading Private Limited	217112
Keligavan Investment & Trading Private Limited	203856
Chittoda Investment & Trading Private Limited	210848
Dudhna Investment & Trading Private Limited	218353
Mr. S. S. Agrawal Jt. Ms. R. S. Agrawal	2168
Monsanto Holdings Private Limited	761910
Mr. Rajagopalan Santhanam S.	10
Total	2930500

BUSINESS DETAILS

Line of Business :

To engage in the business of researching, breeding, transmitting, developing, purchasing, distributing and selling either by wholesale or in retail all kinds and varieties of vegetable seeds.

Products :

Item Code No.	Product Description
120991.90	Bhendi Seeds
120991.90	Bottlegourd Seeds
120991.90	Chilly Seeds

GENERAL INFORMATION

Bankers :

Bank of India Pune Corporate Banking Branch, 1162 / 6, Near Observatory, Ground Floor, Shivajinagar, University Road, Pune – 411005 Bank of Maharashtra Subhash Road Branch, Court Road, Jalna 431203 Syndicate Bank Backbay Reclamation, Moti Mahal, 195, J. Tata Road, Mumbai – 400020 Canara Bank Hi-tech Agri Finance Branch, Model Colony, Pune – 411016

Banking Relations :	Satisfactory
Auditors :
Name :	J. K. Doshi & Company Chartered Accountants Khetan Bhavan, 198 Jamshedji Tata Road, Mumbai – 400020, Maharashtra Ford Rhodes Parks & Company Chartered Accountants Bank of Baroda Building, 3^rd Floor, Mumbai Samachar Marg, Mumbai – 400023, Maharashtra
Associates :	Maharashtra Hybrid Seeds Company Limited Mahyco Seeds Limited Sungro Seeds Limited Sungro Seed Exports Limited Leadbeter Seeds Private Limited Deccan Plantations Private Limited Boxwell Industries Barwale Seeds Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2930500	Equity Shares	Rs. 10/- each	Rs. 29.305 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		29.305	29.305	29.305
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		221.086	207.191	177.270
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.391	236.496	206.575
LOAN FUNDS
1] Secured Loans		53.381	64.612	96.791
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		53.381	64.612	96.791
DEFERRED TAX LIABILITIES		0.508	2.579	3.495
TOTAL		304.280	303.687	306.861
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.745	7.105	7.965
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.022	0.022	60.923
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	248.065	223.082	187.801
	Sundry Debtors	81.261	143.391	109.956
	Cash & Bank Balances	16.212	54.653	20.998
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	111.642	68.363	67.304
Total Current Assets		457.180	489.489	386.059
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	159.277	185.882	152.011
	Provisions	5.771	14.248	5.016
Total Current Liabilities		165.048	200.130	157.027
Net Current Assets		292.132	289.359	229.032
MISCELLANEOUS EXPENSES		5.381	7.201	8.941
TOTAL		304.280	303.687	306.861

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		467.915	532.838	514.938
Export Turnover		5.333	5.225	0.000
Other Income		10.854	13.570	19.971
Total Income		484.102	551.633	534.909
Profit/(Loss) Before Tax		32.948	59.207	54.932
Provision for Taxation		14.040	22.603	14.102
Profit/(Loss) After Tax		18.908	36.604	40.830
Earnings in Foreign Currency :
	Export Earnings	N.A.	5.225	12.480
	Commission Earnings	N.A.	0.000	0.000
	Other Earnings	N.A.	0.000	0.000
Total Earnings		N.A.	5.225	12.480
Imports :
	Others	N.A.	33.889	25.090
Total Imports		N.A.	33.889	25.090
Expenditures :
	Raw Material Consumed	140.363	186.242	0.000
	Consumption of stores and spare parts	18.108	24.068	0.000
	Manufacturing Expenses	0.000	0.000	58.543
	Administrative Expenses	0.000	0.000	265.657
	Material Cost	0.000	0.000	142.196
	Increase/(Decrease) in Finished Goods	[23.539]	[34.489]	0.000
	Salaries, Wages, Bonus, etc.	74.194	68.956	5.952
	Managerial Remuneration	0.012	0.020	0.000
	Payment to Auditors	0.232	0.230	0.000
	Interest	7.013	8.327	0.000
	Insurance Expenses	1.943	1.682	0.000
	Power & Fuel	9.149	8.343	0.000
	Depreciation & Amortization	2.709	2.657	1.135
	Finance Charges	0.000	0.000	6.494
	Other Expenditure	220.970	226.390	0.000
Total Expenditure		451.154	492.426	479.977

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	3.90	6.63	7.63
Net Profit Margin (PBT/Sales)	(%)	6.80	10.73	10.26
Return on Total Assets (PBT/Total Assets}	(%)	7.10	11.92	13.94
Return on Investment (ROI) (PBT/Networth)		0.13	0.25	0.26
Debt Equity Ratio (Total Liability/Networth)		0.87	1.11	1.22
Current Ratio (Current Asset/Current Liability)		2.76	2.44	2.45

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets :

Plant & Machinery, Furniture and Fixtures, Office Equipments, Vehicles and Computers

Name of the company	MAHYCO VEGETABLE SEEDS LIMITED
Presented By	Bank of India, Pune Corporate Banking Branch, Pune
1) Date and description of instrument creating the change	18.07.2003 Agreement of Hypothecation of Plant and Machinery, Stocks and Book Debts
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 15.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	a. All tangible movable machineries and plant, both present and future whether installed or not and whether lying loose or in cases at site or in transit or which may at any time during the continuance of this security being installed or lying loose or in cases or being in or upon or about the Borrower’s premises, godowns at Jalna & Dhanora or wherever else the same may be or be held by any party anywhere to the order and disposition of the borrower or in the course of transit to the borrower b. All tangible movable properties and assets of whatsoever nature of the borrower [both present and future] and including but without prejudice to the genrality of the forgoing all stocks of raw materials such as planting seeds and finished goods and semi finished goods spares parts, components [including spare parts and stores relating to plant & machinery both present and future] & stocks in process of the borrower wheresoever situate in Jalna and Dhanora. The whole of the current assets of the borrower viz. Stocks of raw materials, stock in process and semi – finished and finished stocks, in particular stocks of unprocessed, processed, certified and uncertified vegetable and fruit seeds research seeds, stores and spares not relating to plant and machinery [consumable stores and spares], bills receivables and book debts and all other movables, both present and future wheterh now lying loose or in cases, bags, packets or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these payments be brought into or to be stored or be in or about the borrower’s factories premises and godown situated in Maharashtra or wherever else the same may be held by any party or to the order or disposition of the borrower or in the course of transit or high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution or addition. c. All present and future book debts, outstanding, monies receivables, claims, bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of business by any persons, firm, company or body corporate, or by the Central Government or any State Government or any Government Department or office or any municipal or local or public or semi – Government body or authority or any body corporate or undertaking or project whatsoever.
4) Gist of the terms and conditions and extent and operation of the charge.	First Charge Fund Based : 1. EPC – against confirmed order / LCs 180 days : Rs. 15.000 milions 2. FBP / FBN – DP / DA 180 days Rs. 15.000 millions Subject to 1 and 2 maximum limit Rs. 15.000 millions Interest : As per Bank rules presently 9% p.a. with monthly rests Margin : Raw Material, Finished Goods : 25% Store : 25% Goods in Process [DFR Stock] : 30% Book Debts : 35%
5) Name and Address and description of the person entitled to the charge.	Bank of India Pune Corporate Banking Branch, 1162 / 6, Near Observatory, Ground Floor, Shivajinagar, University Road, Pune – 411005
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Name of the company	MAHYCO VEGETABLE SEEDS LIMITED
Presented By	SHRI V. GANGADHARAN
1) Date and description of instrument creating the change	1. Working Capital Consortium Agreement dated 27.03.2001 2. Joint Deed of Hypothecation dated 27.03.2001 3. Joint Deed of Hypothecation of Plant & Machinery dated 27.03.2001 All documents Constitute a single charge
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 134 millions Bank of India : Rs. 46.900 millions Bank of Maharashtra : Rs. 40.200 millions Syndicate Bank : Rs. 33.500 millions Canara Bank : Rs. 13.400 millions ---------------- Total : Rs. 134.000 millions ----------------
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Fixed Assets [Includes Plant and Machinery, Godown & Depots, Processing Plants, Registered and Corporate Office and Research and Development as per enclosed Annexure ‘A’ as collateral security and the whole of the current assets of the borrower viz. stock in process, semi – finished and finished goods stores should be given and spares not relating to plant and machinery [consumable stores and spares], bills receivable and book debts and all other movable, both present and future whether now lying loose or stored in or about or shall hereinafter from time to time during the continuance of the security of these present be brought into or upon or to be stored or be in or about of the borrowers factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution or addition
4) Gist of the terms and conditions and extent and operation of the charge.	Cash Credit Limits: Stocks / Book debts : PLR [*] Letter of Credit : As per FEDAI / Banks Guidelines Guarantee Limit : 2% p.a. for performance guarantee 3% p.a. for Financial Guarantee Plus Service charges as are applicable to the said facilities from time to time
5) Name and Address and description of the person entitled to the charge.	1. Bank of India [Lead Bank] Pune Corporate Banking Branch, Shivaji Nagar, Univerysity Road, Pune – 411005 2. Bank of Maharashtra Subhash Road Branch, Court Road, Jalna 431203 3. Syndicate Bank Backbay Reclamation, Moti Mahal, 195, J. Tata Road, Mumbai – 400020 4. Canara Bank Hi-tech Agri Finance Branch, Model Colony, Pune – 411016
6) Date and brief description of instrument modifying the charge	31.12.2005 Agreement of Realignment / Restructuring of the existing limits
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.	1^st Modification dated 18.04.2002 Modification in respect of availing Foreign Currency Denominated Loan of USD 1.7 million Equivalent to Rs. 83.200 millions from Bank of India, thereby reducing WCDL of Rs. 83.200 millions from consortium of banks as mentioned above, the borrower has agreed that the outstanding moneys due in respect of the said FCDL, all the hypothecated assets and erstwhile WCDL shall continue to be available as security to the Bank’s consortium for the said loan amount denominated in US Dollars. The above said modification is Registered on 20.05.2002 vide Sr. No. 33 2^nd Modification dated 18.07.2003 At the request of the company, the bank has granted, amongst other credit facilities, non – fund based limits to the extent of Rs. 10.500 millions which can be utilized in form of Letter of Credit facility to the extent of Rs. 10.500 millions and Bank Guarantee facility to the extent of Rs. 3.500 millions. However, at any point of time Letter of Credit facility and Bank Guarantee Facility combined together should not exceed Rs. 10.500 millions Earlier the company was allowed to utilize an amount of Rs. 7 millions in the form of letter of credit facility and balance amount of Rs. 3.500 millions was towards Bank Guarantee facility and now with re-alignment of the non-fund based limit the company can utilize aggregate amount of Rs. 10.500 millions in the manner herein above mentioned. The security earlier created by the company as and by way of hypothecation and as and by way of mortgage for the aggregate limit of Rs. 10.500 millions shall continue to be available to the modified non – fund based limits. The above said modification is Registered on 19.08.2003 vide Sr. No. 44 Present Modification The Banks have agreed to grant the credit facilities to the company in the manner given below : Rs. 134.000 millions 1. Fund Based Limits : [Rs. in Millions] a. Cash Credit / FCNR [B] / MIBOR linked loan : Bank of India : Rs. 16.640 Bank of Maharashtra : Rs. 15.600 Syndicate Bank : Rs. 12.480 ---------------- Total [a] : Rs. 44.720 ---------------- B] WCDL / FCNR [B] MIBOR linked loan : [against Hypothecation of Stocks / Book – debts – DP upto 60 days] Bank of India : Rs. 24.960 Bank of Maharashtra : Rs. 15.600 Syndicate Bank : Rs. 18.720 ---------------- Total [b] : Rs. 59.280 ---------------- Total [a] + [b] = Rs. 104.000 2. Non Fund Based Limits : [Rs. in Millions] a. Letter of Credit [I/F] DA upto 180 days : Bank of India : Rs. 12.000 Bank of Maharashtra : Rs. 9.000 Syndicate Bank : Rs. 9.000 ---------------- Total [a] : Rs. 30.000 ---------------- b. Bank Guarantee [Performance / Financial] Bank of India : Rs. 4.000 Bank of Maharashtra : Rs. 3.000 Syndicate Bank : Rs. 3.000 ---------------- Total [b] : Rs. 10.000 ---------------- The above non fund base limits are subject to Maximum 2 [a] + 2 [b] will stand as under : Bank of India : Rs. 12.000 Bank of Maharashtra : Rs. 9.000 Syndicate Bank : Rs. 9.000 --------------- Total : Rs. 30.000 --------------- Total of Fund and Non Fund Based Limits stands at Rs. 134.000 millions Rate of Interest : 1. Bank of India : PLR @ 10.75% p.a. 2. Bank of Maharashtra : PLR @ 11.25% p.a. 3. Syndicate Bank : PLR @ 11.00% p.a.

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.39.81
UK Pound	1	Rs.80.03
Euro	1	Rs.56.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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