MIRA INFORM REPORT

Report Date :

27.04.2011

IDENTIFICATION DETAILS

Name :	KAIRA CAN COMPANY LIMITED
Registered Office :	Tieciaon House, Dr. E. Moses Road, Mahalakshmi, Mumbai -400011, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.03.1962
Com. Reg. No.:	11-12289
CIN No.: [Company Identification No.]	L28129MH1962PLC012289
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11380F / MUMK12715D
PAN No.: [Permanent Account No.]	AAACK4319B / AAACK4319B
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Exporter, Importer and Manufacturer of Metal Containers.

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 690000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track records. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Devendra Hindka
Designation :	Accounts Manager
Contact No.:	91-22-66608711
Date :	26.04.2011

LOCATIONS

Registered Office :	Tiecicon House, Dr. E. Moses Road, Mahalakshmi, Mumbai -400011, Maharashtra, India
Tel. No.:	91-22-56608711 (4 lines) / 66608712 / 66608713
Fax No.:	91-22-56635401 / 66608714 / 66635401
E-Mail :	kairacan@vsnl.com info@kairacan.com companysecretary@kairacan.com
Website :	http://www.kairacan.com
Corporate Office :	Kairacan – GCMMF Complex, Anand – 388001, Gujarat, India
Tel. No.:	91-2692-63237 / 63238 / 63239
Fax No.:	91-2692-62559
E-Mail :	kairacan2@wilnetonline.net
Factory 1 :	Post Box No.23, Amul dairy Compound, Anand – 388 001, Gujarat, India
Tel. No.:	91-2692-266634/35/36
Fax No.:	91-2692-241117
E-Mail :	kairacan1@wilnetonline.net mktg@kairacan.com
Factory 2 :	District Kheda, Kanjari – 387325, Gujarat, India
Factory 3 :	Dudhsagar Dairy Compound, Mehsana – 384002, Gujarat, India
Factory 4 :	Unit Plot No. 704/1-2, Phase IV, GIDC, Vithal Udyog Nagar, Anand, Gujarat, India
E-Mail :	kairacan5@wilnetonline.net

DIRECTORS

AS ON 07.07.2010

Name :	Mr. Premal N. Kapadia
Designation :	Chairman
Name :	Mr. Utsav R. Kapadia
Designation :	Managing Director
Name :	Mr. Ashok B Kulkarni
Designation :	Managing Director
Name :	Mr. Nanak G. Sheth
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Devang R. Mehta
Designation :	Company Secretary
Name :	Mr. Hiten Vanjara
Designation :	Company Secretary
Name :	Mr. Bharatkumar M. Vyas
Designation :	Nominee of GCMMF
Name :	Mr. Vivek J. Matthai
Designation :	Nominee of GCMMF
Name :	Mr. Jayen Mehta
Designation :	Nominee
Name :	K. Jagannathan
Designation :	Executive Directors

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2010

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	400364	43.42
Bodies Corporate	151799	16.46
Sub Total	552163	59.88
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	3260	0.35
Sub Total	3260	0.35
Total shareholding of Promoter and Promoter Group (A)	555423	60.23
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	245456	26.62
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	44149	4.79
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	50666	5.49
Any Others (Specify)	26564	2.88
Non Resident Indians	26564	2.88
Sub Total	366710	39.77
Total Public shareholding (B)	366710	39.77
Total (A)+(B)	922133	100.00
Shares held by Custodian and against which Depository Receipts have been issued	--	--
TOTAL	922133	100.00

BUSINESS DETAILS

Line of Business :

Exporter, Importer and Manufacturer of Metal Containers

Products :

Products and Services

• Tinplate Cans
• Amul Milk Distribution
• Sugar Cones for Ice Creams

Item code	Product Description
040229-00	Milk Processing and Packing
731021-01	Tin Containers
190530-00	Waffles and Wafers/Ice-Cream Cones

Exports :

Products :

v Cans

Country :

v UAE

v Dubai

Imports :

Product :

v Raw Material, Spares

Country :

v Thailand

Terms :

Selling :

L/C, Cash, Credit ( 30 / 60 / 90 days)

Purchasing :

L/C, Cash, Credit ( 30 / 60 / 90 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Open Top Sanitary Cans and General Line Containers	MT	18000	18000	60.930
Ice Cream Cones (Waffles and Wafers)	MT	--	700	32.026

GENERAL INFORMATION

Customers :

v End User

v OEM’s

No. of Employees :

200 (Approximately)

Bankers :

Bank of Baroda, Mumbai

Facilities :

Secured Loans :	As on 31.03.2010 Rs. In Millions	As on 31.03.2009 Rs. In Millions
From Banks: Cash Credit Accounts	76.691	73.307
Auto Loans	2.529	1.641
Total	79.220	74.948

1. Cash credit accounts from a bank are secured by hypothecation and/or pledge of stock-in-trade, stores, spares parts, other materials and book debts. The cash credit accounts and term loans are further secured by the first charge by way of equitable mortgage on the company’s immovable properties, both present and future, situated at village Kanjari in the state of Gujarat.

2. Auto Loans are secured by hypothecation of vehicles financed

Unsecured Loans :	As on 31.03.2010 Rs. In Millions	As on 31.03.2009 Rs. In Millions
Fixed Deposits (Including from the directors Rs.0.870 Million) ) (Due within one year Rs.0.870 Million)	18.920	12.850
Long Term deposits from lessee (for premises given on lease)	0.000	50.000
Short term loans and advances From Others	8.500	8.500
Total	27.420	71.350

Banking Relations :	-
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accounts
Address :	Mumbai
Associates/Subsidiaries :	Gujarat Co-op Milk Marketing Federation Limited (GCMMF) Address : Tiecicon House, Dr. E. Moses Road, Mahalakshmi, Mumbai -400011, Maharashtra, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
20000	11% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.2.000 Millions
Total			Rs.22.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
922133	Equity Shares	Rs.10/- each	Rs.9.221 Millions

Note :

Of the above Shares, 5,33,600 Shares are allotted as fully paid up by way of Bonus Shares by Capitalization of General Reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		9.221	9.221	9.221
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		164.357	126.614	126.584
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		173.578	135.835	135.805
LOAN FUNDS
1] Secured Loans		79.220	74.948	113.215
2] Unsecured Loans		27.420	71.350	66.615
TOTAL BORROWING		106.640	146.298	179.830
DEFERRED TAX LIABILITIES		2.221	7.418	8.483
TOTAL		282.439	289.551	324.118
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		60.071	86.505	92.435
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.718	0.713	0.343
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.123	197.485	343.728
	Sundry Debtors	76.895	64.572	74.168
	Cash & Bank Balances	12.581	14.323	8.684
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	117.377	78.768	55.906
Total Current Assets		389.976	355.148	482.486
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	43.945	26.901	27.793
	Sundry Creditors	118.622	120.752	217.258
	Provisions	6.759	5.162	6.095
Total Current Liabilities		169.326	152.815	251.146
Net Current Assets		220.650	202.333	231.340
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		282.438	289.551	324.118

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009		31.03.2008
	SALES
		Income	939.933	1064.910		1632.309
		Other Income	90.126	56.708		43.455
		TOTAL (A)	1030.059	1121.618		1675.764
Less	EXPENSES
		Manufacturing and Other Expenses	901.662	966.737		1622.795
		Inventory Charges	56.096	122.010		(17.582)
		TOTAL (B)	957.758	1088.747		1605.213
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		72.301	32.871		70.552
Less	FINANCIAL EXPENSES (D)		10.439	21.000		29.045
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		61.862	11.871		41.507
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.624	9.524		10.753
	PROFIT BEFORE TAX (E-F) (G)		49.238	2.347		13.170
Less	TAX (I)		8.807	1.238		4.712
	PROFIT AFTER TAX (G-I) (J)		40.431	1.109		8.458
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.864	5.862		5.601
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	0.028		5.500
		Dividend	2.305	0.922		2.305
		Tax on Dividend	0.382	0.156		0.391
	BALANCE CARRIED TO THE B/S		33.607	5.864		5.862
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	119.448	181.385		142.237
	TOTAL EARNINGS		119.448	181.385		142.237
	IMPORTS
		Raw Materials	285.566	338.271		223.420
		Stores & Spares	16.414	21.283		18.574
	TOTAL IMPORTS		301.980	359.554		241.994
	Earnings Per Share (Rs.)		43.85	1.20		9.17
Particulars					31.03.2011
Sales Turnover(Approximately)					1100.000

Expected Sales (2010-2011) : Rs. 1250.000 millions

QUARTERLY RESULTS

PARTICULARS	30.06.2010 (1^st Quarter)	30.09.2010 (2^nd Quarter)	31.12.2010 (3^rd Quarter)
Net Sales	369.090	261.140	265.790
Total Expenditure	357.180	250.710	252.300
PBIDT (Excl OI)	11.910	10.430	13.490
Other Income	0.220	0.060	0.100
Operating Profit	12.130	10.490	13.590
Interest	2.980	1.870	1.230
Exceptional Items	0.000	0.000	0.000
PBDT	9.150	8.620	12.360
Depreciation	1.800	1.750	1.850
Profit Before Tax	7.350	6.870	10.510
Tax	3.110	2.770	4.440
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	4.240	4.100	6.110

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.92	0.10	0.51
Net Profit Margin (PBT/Sales)	(%)	5.23	0.22	0.81
Return on Total Assets (PBT/Total Assets}	(%)	10.93	0.53	2.29
Return on Investment (ROI) (PBT/Networth)		28.34	0.02	0.09
Debt Equity Ratio (Total Liability/Networth)		1.59	2.20	1.87
Current Ratio (Current Asset/Current Liability)		2.30	2.32	1.92

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In Millions )

Particulars	31.03.2010	31.03.2009	31.03.2008
Total outstanding dues of creditors other than micro enterprises and small enterprises	118.622	120.752	217.258

Company History:

Kaira Can Company is a manufacturer of Open Top Sanitary Cans, General purpose Cans and Aerosol Cans. The Company started its operations in the year 1962. The Company has its production at its 3 plants i e Anand, Kanjari and Mehsana for manufacturing of various types of OTS and General Purpose Cans for Packing Baby Food, Cheese, Butter, Fruit Juices, Processed Goods, Fish etc and the Aerosol Cans for packing Deodrants, Insectidies, Room Freshner etc. In 1992 the company has diversified into the business of processing, packing and marketing of Amul Milk in Mumbai and suburbs. In 2000-01 the company ventured on to a new business of manufacturing rolled sugar cones for filling ice-cream at its Vithal Udyognagar unit Kheda District Gujarat in January, 2001 and commercial production commenced on the same month. The Company produced high quality Components and Cans for exports.

REVIEW OF OPERATIONS
 

The Company has achieved a total sales turnover of Rs.1060.200 Millions for the year ended 31st March, 2010, as compared to Rs. 1179.200 Millions for the previous year, a drop of 10%. The decline is attributed mainly to two factors. The permanent workmen at the Anand and Kanjari units had resorted to total stoppage of work/illegal strike during the month of April 2009, with the result the sales of OTS cans to the customers were badly affected during the peak period of mango season. Secondly, the exports of metal components to Dubai were substantially reduced due to financial crisis of Middle East countries.

As a result of the above, the Company could achieve a turnover of Rs. 932.600 Millions of metal cans and its components during the year as compared to Rs.1078.500 Millions for the previous year - a reduction of 14%. The Company could only execute export orders worth Rs. 120.700 Millions of metal components as against Rs. 184.800 Millions for the previous year - a substantial drop of 35%.

However, the net operating profit for the year has been substantially increased to Rs.19.700 Millions. The growth is attributed mainly due to overall cost reduction measures taken by the Company resulting into better management of cash flow.

The Milk and Milk products division has achieved job-work earnings to the tune of Rs. 51.100 Millions during the year ended 31st March, 2010.

Sugar Cone Division has achieved a sales turnover of Rs. 42.500 Millions as compared to Rs. 43.900 Millions for the previous year.

Good news is that slowdown in the global economy prevailing for the past two years has been arrested and there are definite signs of improvement. Number of proposals being implemented by the Government are stimulating industrial growth and improving the climate of investment. The reform process initiated by the Government is showing positive results in the growth of the country's economy. The data released recently points to a continuous growth in industrial output of the county.

With the consistent and vigorous efforts being made by the Company for cost reduction measures coupled with efficient monitoring of working capital, Company expects improved performance for the current year.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

 (Rs. In Millions)

PARTICULARS	STANALONE
	Quarter ended on 31.12.2010 Unauduited	Nine months ended on 31.12.2010 Unaudited
Net sales/Income from Operations*	261.316	886.365
Other operating income	4.476	9.665
Total Income	265.792	896.030
Expenditure
a) (Increase)/decrease in stock in trade	(22.289)	22.360
b) Consumption of raw	176.918	519.449
c) Consumption of Stores and Spares	34.829	117.983
d) Staff Cost	17.710	52.637
e) Depreciation	1.854	5.404
f) Other expenditure	45.132	147.761
g) Total	276.443	865.594
Profit/ (Loss) from operations before other income, interest and other exceptional items	11.638	30.436
Other income	0.103	0.382
Profit / (Loss) before interest and exceptional items	11.741	30.818
Interest and Financial Charges	1.229	6.082
Profit / (Loss) after interest but Before Exceptional items	10.512	24.736
Exceptional items – Net	0.000	0.000
Profit / (Loss) before tax	10.512	24.736
Tax Expenses Current tax and FBT	4.400	12.600
Deferred Tax	0.000	(2.221)
Profit / (Loss) from Ordinary Activities after taxation	6.112	14.457
Net profit for the period	6.112	14.457
Paid up equity share capital (Face value of Rs. 10 per share)	92.21	92.21
Reserves excluding revaluation reserves	0.000	0.000
Earning Per Shares - Basic and diluted before extraordinary items - Basic and diluted after extraordinary items	6.63 6.63	15.68 15.68
Public shareholding
- Number of shares	366710	366710
- Percentage of shareholding	39.77%	39.77%
Promoters and Promoter Group Shareholding
a) Pledge/ Encumbered - Number of shares	Nil	Nil
- Percentage of shares (to total Promoter Shareholding)	Nil	Nil
- Percentage of shares (To Total Share Capital of the company)	Nil	Nil
b) Non Encumbered - Number of shares	555.423	555.423
- Percentage of shares (to total Promoter Shareholding)	100.00%	100.00%
- Percentage of shares (To Total Share Capital of the company)	60.23%	60.23%

Notes :

1. The above financial results for the quarter ended September 31.12.2010, which has been subjected to a Limited Review by the Auditors of the Company were taken on record by the Board of Directors at their Meeting held on 2^nd February, 2010

2. As regards Auditors qualifications In their Audited report for the year ended 31” March, 2010/ limited review for the quarter ended 30^th September 2010 for The Company is not having internal audit system during the year:. Iii the opinion of the Management, there are adequate Internal control system and procedures commensurate with the size of the Company and nature of its business.

3. Status of Investors’ complaints : Pending at the beginning of the quarter- Nil, Received and unresolved during the quarter- Nil, Pending at the end of the quarter – NU

4. Figures have been regrouped and redassified wherever necessary.

Segment wise Revenue, Results and Capital Employed under clause 41 of the Listing Agreement

 (Rs. In Millions)

PARTICULARS	STANDALONE
	Quarter ended on 31.12.2010 Unauduited	Nine months ended on 31.12.2010 Unaudited
Segment Revenue (Net sales / Income from each segment)
a. Tin Containers	238.867	818.367
b. Ice-Cream Cones (Waffles and Wafers)	9.553	32.731
c. Milk and Food Products Division	17.372	44.932
Total	265.792	896.030
Less : Inter segment Revenue	0.000	0.000
Net Sales / Income from operations	265.792	896.030
Segment Revenue (Profit (+) / Loss (-) before tax and interest)
a. Tin Containers	10.068	28.195
b. Ice-Cream Cones (Waffles and Wafers)	0.413	1.782
c. Milk and Food Products Division	1.666	2.171
Total	12.147	32.148
Less :
Interest	1.229	6.082
Other un-allocable expenditure net off unallocable income	0.406	1.330
Total Profit Before Tax	10.512	24.736
Capital Employed (Segment Assets – Segment Liabilities)
a. Tin Containers	145.057	145.057
b. Ice-Cream Cones (Waffles and Wafers)	11.682	11.682
c. Milk and Food Products Division	18.537	18.537
d. Unallocated	12.759	12.759
Total	188.035	188.035

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Buildings
• Machinery
• Furniture and Fixtures
• Vehicles

Website Details:-

Subject is the manufacturers of metal containers. The Company manufactures a wide range of OTS and General Purpose Cans for packing Processed Foods, Ready-to-eat Foods, Canned Vegetables, Fruit Pulps, Juices, Pickles, Dairy Products, etc. and Aerosol cans for Deodorants, Room Fresheners, Pesticides, etc.

At Kaira Can, with their expertise built over four decades of experience, they offer innovative packaging solutions to preserve the goodness of nature’s produce and bring about customer’s satisfaction. Over the years, Kaira Can has built a reputation for its technological capabilities, state-of-the-art facilities, quality, delivery and service.

At Kaira Can, with their expertise built over four decades of experience, they offer innovative packaging solutions to preserve the goodness of nature’s produce and bring about customer’s satisfaction. Over the years, Kaira Can has built a reputation for its technological capabilities, state-of-the-art facilities, quality, delivery and service.

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] 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. 45.59
UK Pound	1	Rs. 73.43
Euro	1	Rs. 64.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		52

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.