MIRA INFORM REPORT

Report Date :

25.10.2008

IDENTIFICATION DETAILS

Name :	R R KABEL LIMITED
Formerly Known As :	RAM RATNA AGRO PLAST LIMITED
Registered Office :	405/406, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	06.02.1995
Com. Reg. No.:	11-85294
CIN No.: [Company Identification No.]	U28997MH1995PTC085294
TAN No.: [Tax Deduction & Collection Account No.]	MUMR08449A
PAN No.: [Permanent Account No.]	AABCR3352C
Legal Form :	Closely held Public Limited Liability Company
Line of Business :	Manufacturer of House Wire, Installation Cables, panel Wires, power Cords and communication and armoured Cables

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an old and established company and a part of Ram Ratna Group, a family controlled diversified business house. Company’s profitability is improving. It was successful in wiping off all its previous losses. Financial position is improving. Payments are reported as slightly slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	"Ram Ratna House', Victoria Mill Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400 013, Maharashtra, India
Tel. No.:	91-22-24949009/24924144
Fax No.:	91-22-24930203/24932339
E-Mail :	rrkabel@ramratna.com ramratna@ramratna.com
Website :	http://www.ramratna.com
Corporate Office :	305/A, Winder Plaza, R. C. Dutt Road, Alkapuri, Baroda - 390007
Tel. No.:	91-265-2321891-92-93
Fax No.:	91-265-2321894
E-Mail :	rrkabel@satyam.net.in
Factory 1 :	Survey No. 212/2, Near Dadra Check post, Dadar – 396191, Union Territory of Dadra and Nagar Haveli
Tel. No.:	91-260 - 668287/559/759
Fax No.:	91-260-668286
Factory 2 :	Survey No.142/2, Madhuban Dam Road, Village Karad, Union Territory of Dadra and Nagar Haveli
Tel. No.:	91-260-641868 / 641333
Fax No.:	91-260-614332
E-Mail :	rrkabel@satyam.net.in

DIRECTORS

Name :	Mr. Tribhuwanprasad Kabra
Designation :	Managing Director
Address :	13/14, Neelkant Kunj, Garodiya Nagar, Ghatkopar (West), Mumbai – 400 077, Maharashtra, India.
Date of Birth/Age :	11.06.1955
Date of Appointment :	02.09.1997
Name :	Mr. Mahendra R Kabra
Designation :	Executive Director
Address :	13/14, Neelkant Kunj, Garodiya Nagar, Ghatkopar (West), Mumbai – 400 077, Maharashtra, India.
Date of Birth/Age :	13.05.1957
Date of Appointment :	06.02.1995
Name :	Ms. Ratnidevi R Kabra
Designation :	Non-Executive Director
Address :	13/14, Neelkant Kunj, Garodiya Nagar, Ghatkopar (West), Mumbai – 400 077, Maharashtra, India.
Date of Birth/Age :	01.07.1938
Date of Appointment :	06.02.1995
Name :	Mr. Satyanarayan Loya
Designation :	Director
Address :	Borivali (West), Mumbai – 400 092 , Maharashtra, India.
Date of Appointment :	30.09.1997
Name :	Ms. Kirtidevi S Kabra
Designation :	Director
Address :	Dadar (West), Mumbai – 400 028, Maharashtra, India.
Name :	Mr. Ashok S Loya
Designation :	Whole time Director
Address :	Borivali (West), Mumbai – 400 092, Maharashtra, India.
Date of Appointment :	28.09.1999
Name :	Mr. Dinesh Modavi
Designation :	Director
Name :	Mr. Mahesh Tribhuvanprasad Kabra
Designation :	Executive Director
Address :	Uma Sadan, 178, Vinayak Society, Opposite SNDT College and Sanskrit Building, Behind Akota Stadium, Baroda, Gujarat – 390 020, India
Date of Birth/Age :	23.03.1977
Date of Appointment :	11.03.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Rameshwarlal Kabra HUF	162500
Mr. Mahesh T. Kabra	60000
Mr. Hemant Kabra	40000
Mr. Shree Gopal Kabra	20000
Mrs. Kirtidevi Kabra	12000
Mr. Shree Gopal Kabra HUF	2900
Mr. Rajesh Kabra	10000
Mr. Satyanarayan Loya	4000
Mr. Ashok Loya	65000
Mrs. Mamta Ashok Loya	7400
Mrs. Sunita G Loya	4000
Mrs. Sarita Jhawar	34000
Mrs. Anant S Loya HUF	45600
MR. G S Loya	25000

Category	Percentage of Holding
Bodies Corporate (not mentioned above)	9.00
Directors or relatives of directors	91.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of House Wire, Installation Cables, panel Wires, power Cords and communication and armoured Cables

Products :

Product Code	Kompass code Description
K#2317	Twine, cordage, ropes and cables [96]
K#3780	Electric wires and cables, insulated [218]
K#3781	Wires and cables for telecommunications and electronics [122]
K#5247	Telecommunication installation contractors [16]

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Various types of Cables	CKM	256800	207919

GENERAL INFORMATION

No. of Employees :

400

Bankers :

· IDBI Bank, Mumbai – 400 005, Maharashtra, India.

· State Bank of India, Mandvi, Baroda

· ICICI

· HDFC Bank Limited

Facilities :

SECURED LOANS	(As on 31.03.2006) Rs in Millions
Term Loan from State Bank of India	78.101
Term Loan from Industrial Development Bank of India (Repayable in Rupee Equivalent of Foreign Currency at the time of repayment)	5.221
Working Capital Facility from State Bank of India
Cash credit Account	1.164
CP Linked WCD Loan	75.000
Standard Chartered Bank	0.223
ICICI Car Loan	0.967
HDFC Bank Limited	0.641

Banking Relations :	Satisfactory
Auditors :
Name :	V C Darak and Associates Chartered Accountants
Address :	Yashodhan, 1^st Floor, Malviya Road, Vile Parle (East), Mumbai – 400 057, India
Tel. No.:	91-22-2039191/2038854
Associates/Subsidiaries :	· Ram Ratna Wires Limited · Parkab Finvest Private Limited · Jag Bid Finevest Private Limited · Pep- Print India Private Limited · Kobra Appliances Private Limited · Hem Sum Finevest Private Limited · APS Infrastructure Private Limited

CAPITAL STRUCTURE

(As on 31.03.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15250000	Equity Shares	Rs.10/- each	Rs.152.500 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		152.500	146.600	117.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		188.500	110.100	51.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		341.000	256.700	169.100
LOAN FUNDS
1] Secured Loans		621.900	258.800	161.300
2] Unsecured Loans		352.000	155.600	68.300
TOTAL BORROWING		973.900	414.400	229.600
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1314.900	671.100	398.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		379.700	316.100	228.500
Capital work-in-progress		31.700	7.400	29.500
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	240.100	97.900	67.600
	Sundry Debtors	344.300	275.900	196.700
	Cash & Bank Balances	264.400	54.000	23.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	216.700	126.300	34.300
Total Current Assets		1065.500	554.100	322.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	115.200	190.200	174.100
	Provisions	46.800	16.300	10.000
Total Current Liabilities		162.000	206.500	184.100
Net Current Assets		903.500	347.600	138.400
MISCELLANEOUS EXPENSES		0.000	0.000	2.300
TOTAL		1314.900	671.100	398.700

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		3637.700	2025.300	1128.300
Other Income		15.500	1.400	0.600
Total Income		3653.200	2026.700	1128.900
Profit/(Loss) Before Tax		111.400	59.200	40.300
Provision for Taxation		30.500	13.400	5.100
Profit/(Loss) After Tax		80.900	45.800	35.200
Expenditures :
	Manufacturing Expenses	13.200	36.300	7.000
	Administrative Expenses	75.900	66.40	51.900
	Raw Material Consumed	2944.000	1512.300	823.600
	Excise Duty	430.600	259.600	132.100
	Increase/(Decrease) in Finished Goods	(112.600)	(25.900)	(7.500)
	Employee Cost	47.300	31.400	22.800
	Interest	74.900	33.100	21.300
	Miscellaneous Expenses	15.400	16.000	11.300
	Power & Fuel	26.300	18.400	10.600
	Depreciation & Amortization	26.800	19.900	15.500
	Other Expenditure
Total Expenditure		3541.800	1967.500	1088.600

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	2.32	1.51	1.36
Long Term Debt-Equity Ratio	1.31	0.95	0.91
Current Ratio	1.67	1.39	1.24
TURNOVER RATIOS
Fixed Assets	8.10	5.77	3.79
Inventory	21.52	24.47	16.69
Debtors	11.73	8.57	5.74
Interest Cover Ratio	2.49	2.79	2.89
Operating Profit Margin(%)	5.86	5.54	6.83
Profit Before Interest And Tax Margin(%)	5.12	4.56	5.46
Cash Profit Margin(%)	2.96	3.24	4.49
Adjusted Net Profit Margin(%)	2.22	2.26	3.12
Return On Capital Employed(%)	18.76	17.29	15.54
Return On Net Worth(%)	27.07	21.51	20.82

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Name of the company

R R KABLE LIMITED

[Formerly Ram Ratna Agro Plast Limited]

Presented By

Shri Tribhuvanprasad Kabra, Managing Director

1) Date and description of instrument creating the change

03.04.1998

Agreement for Hypothecation of Goods and Assets.

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

Rs. 119.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the movable properties of the Company including its movable Plant and Machinery, Machinery Spares, Tools and Accessories and other movables including inventory of Raw materials, Work in process, Semi-finished Goods, Finished Goods, Stores and Spares and Book-debts, both present and future, whether installed or not, and whether now lying loose in the cases or which are now lying or stored in or about shall hereinafter from time to time during the continuance or the security of these presents be brought into or upon or be stored or be in or about of the Company’s factories, premises and godowns situated at Survey No. 142/2, Village Karad,

(U T of D and N H) or wherever else the same may be or be held by any party to the order or disposition of the Company or in the course or transit or on high seas or on order or deliver, whatsoever and wheresoever in the possession or the Company and either by the way of substitution or addition.

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

1) TERM LOAN – Rs. 45.000 millions

A) Rate of Interest – 1% SBMTLR + Interest Tax, effective rate 14.02 with quarterly rests subject to change from time to time.

B) Repayment - Repayable over 16 quarterly installments of Rs. 2.838 millions and last installments of Rs. 2.430 millions First installment to fall due to at the end of December, 1998

C) Overall Margin – 29%

2) DEMAND CASH CREDIT – Rs. 54.000 millions

A) Rate of Interest - 1.75% above SBAR + Interest Tax, effective rate15.04% with quarterly rests subject to change from time to time.

B) Margin – Raw Material 25%

Stock in Process 25%

Stores and Spares 25%

Finished Goods 25%

Receivables 40%

3) LETTER OF CREDIT- Rs. 15.000 millions

(Raw Materials and Spares)

A) Commission and other charges as per extent instructions and on the terms and conditions contained in the said agreements.

B) Margin – 10%

4) BANK GUARANTEE – Rs. 5.000 millions

A) Commission and other charges as per extent instructions and on the terms and conditions contained in the said agreements.

B) Margin – 10%

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

State Bank of India

Mandvi / Special Commercial Branch, Baroda. Having one of its Local Head Office at Bhadra, Ahmedabad

6) Date and brief description of instrument modifying the charge

1. Supplemental Agreement of Loan for increase in the overall limit vide Form C 1 A dated 30.03.2005

2. Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit vide Form C. 2 A dated 30.03.2005

(All instruments constituting 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.

While reviewing and renewing the existing facilities being sanctioned to the company, the Bank has, at the request of the Company, sanctioned revised credit facilities, thereby increasing the previous limits of Rs. 198.000 millions to Rs. 298.600 millions as per the details given herein below:

FUND BASED	Rs. In Millions
DCC (HP of stocks and receivables	120.000
DCC-sub limit of above against book debts	(70.000)
EPC / FBD-sub limit of above	(25.000)
Total FBWC	120.000
Corporate Loan (o/s)	6.300
Term Loan – I (o/s)	9.800
Term Loan – II (o/s)	43.500
New Term Loan	53.000
Stand by Line of Credit	17.000
Total FB	249.600
NON FUND BASED
Project LC (within new Term Loan of Rs. 53.000 millions above)	(5.000)
Letter of Credit	30.000
Bank Guarantee	19.000
Total NFB	49.000
Grand Total	298.600

Other Terms and Conditions:

Rate of Interest:

1. CC - @SBAR, presently 10.25 %

2. New Term Loan – 1.25% below SBAR i.e. 9%

1. EPC/PSC – As per Bank’s instructions.

Re-payment:

CC/EPC – Repayable on demand, subject to annual review / renewal.

New Term Loan – The new Term Loan of Rs. 53.000 millions would be payable in 20 Quarterly installments as under:

1. First 6 quarterly installments of Rs. 1.350 millions

2. Next 8 quarterly installments of Rs. 2.650 millions

3. Next 6 quarterly installments of Rs. 3.950 millions.

First installment would be payable after 9 months of first disbursement of term loan or 30.09.2005, whichever is earlier.

Rest of the terms and conditions, governing the charge remains un-altered.

Thus, the hypothecation charge originally created on 03.04.1998 for Rs. 119.000 millions and subsequently modified on 21.01.1999 for Rs. 131.100 millions and on 23.02.2004 for Rs. 198.000 millions has been now further modified and extended to secure the revised facilities of Rs. 298.600 millions as mentioned above.

Corporate identity number (CIN) Foreign company registration number	U28997MH1995PTC085294
Name of the Company	R R KABEL LIMITED
Address	Ram Ratna House, Victoria Mill Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 013, Maharashtra, India
This form is for	Modification of Charge
Type of Charge	A Charge on Immovable property
Particulars of the charge holder	State Bank of India Speciliased Commercial Branch, Mandvi, Vadodara – 390 017, Gujarat, India E-Mail: agm.04086@sbi.co.in
Amount secured by the charge	Rs. 593.100 millions
Nature or description of the instrument(s) creating or modifying the charge	Memorandum of Entry
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of interest SBI – C.C. 11% pa. monthly rest T L – I and ii – 13.5 % p a Monthly rest TL – III – 9.5 % p.a. Monthly Rest Corporate Bank – TL – 9.00 p. a. monthly rest; Fund Based W C 10.75% p.a. monthly rest (b) Terms of Repayment SBI – C C on Demand TL – I 15 quarterly installment of Rs. 1.200 millions; TL – II 6 quarterly installments of Rs. 1.050 millions; 8 quarterly installments of Rs. 1.500 millions and remaining of Rs. 2.000 millions TL- III 6 quarterly installments of Rs.1.350 millions, 8 quarterly installments of Rs.2.650 millions, 6 quarterly installments of Rs. 3.950 millions Corporation Bank W C on demand; TL 10 quarterly installments of Rs. 5.000 millions; 12 quarterly installments of Rs. 10.000 millions © Margin SBI – C C RM, SIP, F G – 25%, BD – 40 %, L/c & B G – 10 % TL – 42% Corporation Bank – W C – 25% on RM, SIP, FG 40 5 on BD, L/C – 10 % TL – machinery 25%, Building and Utilities 30 % (d) Extent and operation of the charge As per annexure A
Date of Instrument	01.11.2006
Particular of the present modification	PART – A PLOT AREA 10,800 SQ. MTRS – 1^ST CHARGE SBI, SCB, BARODA FOR TL Rs. 95.600 MILLIONS AND WC Rs. 172.000 MILLIONS AND 2^ND PARI PASSU CHARGE PVG CORPORATION BANK, Mumbai FOR TL Rs. 140.000 MILLIONS AND W C Rs. 185.5000 MILLIONS PART- B – PLOT AREA 11,480 SQ. MTRS – 1^ST CHARGE CORPORATION BANK, Mumbai FOR TL Rs. 140.000 MILLIONS AND W C Rs. 185.500 MILLIONS AND 2^ND PARI PASSU CHARGE FVG SBI, SCB, BARODA FOR TL Rs. 95.600 MILLIONS AND WC Rs. 172.000 MILLIONS AGGER CHARGE Rs. 593.100 MILLIONS

Business:

Generic names of principal products/services of the company are:

• Polyvinyl Chloride Cable
• Telephone Cables
• Cable

With the company the group has embarked on its most ambitious project to date, to manufacture world-class LV/MV cables, on the most modern state of the art machinery manufactured by the world leaders from Europe and United States.

The group has come up with the best available conductor technology of the world the privilege becomes even more, as subject are first in India.

The conductor is known as UNILAY. Thin strands of Electrolytic Copper are multi drawn simultaneously for uniformity of Resistance.

Ram Ratna Group:

The group is engaged in diverse, carefully selected business activities, with the common guiding factors being limitless growth prospectus, long term demand potential, and an upmarket target clientele and business strategy of responding to emerging market needs by applying state of the art technology.

Dyestuff, Pigments and Speciality Chemicals:

This division of the Group is engaged in manufacture and exports of the following range of products:

• Reactive Dyes
• 1:2 Metal Complex Acid Dyes, Leather Specialties & Other Acid Dyes
• Solubilised Vat Dyes
• Synthetic Organic Pigments and Pigment Emulsions
• Optical Brighteners and Ultramarine Blue
• Anti Dust Oil (Dedusting Agent) for Powdered Dyes
• Resist Salt
• Speciality Leather Auxiliaries
• Speciality Textile Auxiliaries
• 1:2 Metal complex Solvent Dyes

Household:

Ram Ratna Group is an Organization where tradition and modernity blends, in the form of ancient handlooms to most modern Rapier Looms, enabling a very wide range of products to its customers.

The group brings us best in ethic style Indian Home Accessories. Subject is the best example of Indian Work.

The Range:

· Rugs-Comber and Rag

· Chenille Rugs

· Throws

· Table Covers, Ribbed and Jacquard Placement

· Towels, Dish Clothes, Bar Mops

· Canvas Totes, Laundry Bags and Banja Bags

The company’s fixed assets of important value include Freehold Land, Factory Building, Plant and Machinery, Furniture and Fixture, Workers Quarter, Vehicle and Office Equipments.

AS PER WEBSITE

Product Line

ARMOURED CABLE

Heavy Duty Performance

Offers the best combination of safety, efficiency and economy.

SUPEREX

FR + HR 105°C Cable

Greater current-carrying capacity offers economy of wire-guage

Higher Short Term and Long Term temperature ratings

No overhauling or melting

SUPEREX UNILAY

FR + HR 105°C Cable with 'UNILAY' conductor

UNILAY conductor

No loose contacts, No broken ends

No sparking or overheating.

Saves electricity costs.

Minimizes conductive losses

RATNAFLEX-S

Single Core flexible tri-rated cable

Super flexibility to grades HO5V-K and HO7V-K

Ideal for use in control panel boards. 

Available with 105°C Insulation

RATNAFLEX-M

Cable for Appliances and Machine Tools

Muticore flexible cables for appliances and machine tools

Compact construction reduces weight per meter

Rugged yet flexible for industrial use

RATNALAN

4-Pair UTP CAT5 and CAT5 E Cable for Computer LAN Networks

High bit rates over extended distances

Ideal for use in structured cabling

Available in snarl-free pack of 305 meters

Import substitution product

RATNACOM

Telephone cables processed by European technology.

Conform to ITD specifications S/WS 113C

Ideal for switchboard and internal telephone wiring

Available in 100m coils in shrink-wrapping

RATNACO-X

Co-Axial Cables for CATV Networks

High Quality Co-axial cables for cable TV Networks.

Low loss of signal quality

Wide Band of frequencies due to low attenuation values

Higher bandwidth, more number of CATV channels

Tested on imported testing machine

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.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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