MIRA INFORM REPORT

Report Date :

02.08.2011

IDENTIFICATION DETAILS

Name :	HUNTSMAN INTERNATIONAL (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. 1/1 TTC Industrial Area, Thane, Belapur Road, Koparkhairane, Navi Mumbai - 400709, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.02.2001
Com. Reg. No.:	11-131020
Capital Investment / Paid-up Capital :	Rs. 652.287 Millions
CIN No.: [Company Identification No.]	U24117MH2001PTC131020
TAN No.: [Tax Deduction & Collection Account No.]	MUMH05154C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Marketer of Chemicals.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 10160000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a fully owned subsidiary of Huntsman, the Netherlands. It is a well established and a reputed company fine track. Financials positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in medium to long run.

NOTES :

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

INFORMATION DECLINED BY

Name :	Mr. Kaustubh
Designation :	Accounts Manager
Date :	29.07.2011

LOCATIONS

Registered Office/ Factory :	Plot No. 1/1 TTC Industrial Area, Thane, Belapur Road, Koparkhairane, Navi Mumbai - 400709, Maharashtra, India
Tel. No.:	91-22-27780000 / 83
Fax No.:	91-22-27780084 / 5 / 8
E-Mail :	arun.kumar@huntsman.com peter_huntssman@huntsman.com kurt_girod@huntsman.com pratik_shah@huntsaman.com suresh_bagul@huntsman.com
Website :	http://www.huntsman.com
Area:	5000 sq.ft
Location:	Owned
Corporate Office :	A -10/ A, Sector 24, FDDI Complex, Noida-201301, Gautam Buddha Nagar, Uttar Pradesh, India
Tel. No.:	91-120-4255100
Fax No.:	91-120-4255105 / 4255106

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Peter Hunstman John
Designation :	Director
Address :	10003, Woodloch Forest, Dr. The Woodlands Texas-77380, US
Date of Birth/Age :	13.03.1963
Date of Appointment :	01.03.2001
DIN :	01631708
Name :	Mr. Umer Bischand Sharma
Designation :	Director
Address :	Flat No. 27, SRM Apartment, A – Block 106, Patparganji, New Delhi – 110 092
Date of Birth/Age :	14.07.1962
Date of Appointment :	30.10.2001
Name :	Mr. Gerrard William Ron
Designation :	Managing Director
Address :	6, Bindong Park, Singapore – 269 789
Date of Birth/Age :	16.08.1954
Date of Appointment :	30.09.2003
Date of Ceasing:	03.03.2005
Name :	Mr. Sandeep Ganesh Divekar
Designation :	Managing Director
Address :	Flat No. 604, Ambiuence, Prestige Garden Panchpakhadi, Thane (West), Thane-400601, Maharashtra, India
Date of Birth/Age :	30.07.1972
Date of Appointment :	28.05.2008
Date of Ceasing:	29.09.2008
Name :	Mr. Sheng Shun Wang
Designation :	Director
Address :	Villia A-1, Hong Qiao State Guest House, Shanghi-200336, China
Date of Birth:	09.05.1954
Date of Appointment :	22.02.2005
Name :	Mr, Anish Nirmal Ghoshal
Designation :	Director
Address :	402, Rocky Hill, Rizvi Complex, Shriley Rajan Road, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	16.09.1964
Date of Appointment :	22.09.2005
Name :	Mr. Arun Kumar
Designation :	Director
Address :	Flat No. 301, 3^rd Floor, Burlington Hiranandani Estate, G.B. Road, Thane-400607, Maharashtra, India
Date of Birth:	23.12.1971
Date of Appointment :	25.08.2005
Date of Cessation :	23.03.2009
Name :	Mr. Nicholas Andrew Webster
Designation :	Director
Address :	3040, Huldenberg, Hollestratt (Loo) 9, Huldenbera-9, GB
Date of Birth:	31.08.1957
Date of Appointment :	20.11.2007
DIN :	01963565
Name :	Mr. Rohit Aggarwal
Designation :	Director
Address :	Egnelgasse 20, 4052, Bansal-4050, India
Date of Birth:	25.11.1969
Date of Appointment :	18.01.2008
Date of Cessation :	23.03.2009
Name :	Mr. Ashish Kumar
Designation :	Director
Address :	F-303, Krishna Apara Sector-61, Noida, Uttar Pradesh, India
Date of Birth:	11.001.1971
Date of Appointment :	17.04.2008
Name :	Mr. Anand Gopaldesikan
Designation :	Director
Address :	C -3, RS Mansion, 7/4, Dinnur Road, R.T Nagar, Bangalore- 560034, Karnataka, India
Date of Birth:	10.08.1971
Date of Appointment :	22.09.2009
DIN :	02469962
Name :	Mr. Ajay Kanwar
Designation :	Director
Address :	Flat No. 201, Springleaf 7A, Lokhandwala Township, Akurli Road, Kandivali (East), Mumbai-400101, Maharashtra, India
Date of Birth:	04.11.1970
Date of Appointment :	22.09.2009
DIN :	02169721

KEY EXECUTIVES

Name :	Mr. Pratik Shah
Designation :	Secretary
Address :	B-21, Triveni, Gilber Hill Road, Andheri (West), Mumbai-400058, Maharashtra, India
Date of Birth:	17.04.1981
Date of Appointment :	17.04.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Huntsman Investment Netherlands BV, Netherlands	65218791
Huntsman Netherlands BV, Netherlands	10000
Total	65228791

AS ON 27.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Chemicals

PRODUCTION STATUS

AS ON 31.03.2009

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Polyol	MT	12000	12000	8973.28*
Dyes and Chemicals	MT	NA	NA	6001.23**

Note: * Excludes 41.16 MT [Previous year 74.45 MT] quantity of polyol

**represents goods manufactured on job work basis by other parties

GENERAL INFORMATION

Customers :

• End User
• OEM’s

No. of Employees :

50 (Approximately)

Bankers :

IDBI Bank Limited, IDBI Tower wtc Complex, Cuffe Parade, Mumbai- 400005, Maharashtra, India

Facilities :

Cash Credit Rs. 500.000 millions (IDBI Bank Limited)

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
Cash Credit / Working Capital Loan from a Bank Note: The above is secured by way of i) first charge on all current assets excluding consumable stores and spares relating to plant and machinery, both present and future ii) first mortgage charge on office premises together with car parking space situated at Bangalore by deposit of title deeds iii) hypothecation of all plant and machinery, furniture, fixtures, computers and vehicles, both present and future iv) corporate guarantee given by huntsman (holding) UK.)	41.098	0.000
Total	41.098	0.000
UNSECURED LOAN	31.03.2010	31.03.2009
Short Term
From Others	200.000	530.000
Total	200.000	530.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, Idnai
Tel No.:	91-22-66679000
Fax No.:	91-22-66679025
Pan No.:	AACFD4815A
Holding Company :	Huntsman Investments (Netherlands) BV, Netherlands
Associates :	Swathi Organics and Specialities Private Limited, India
Subsidiary Company :	· Huntsman Polyurethanes Australia Private Limited · Huntsman (Germany) GmbH · Huntsman Holland BV · Huntsman (Singapore) Private Limited · Huntsman (Holdings) UK Unlimited · Huntsman (Europe) BVBA · Huntsman (Taiwan) Limited · Huntsman International Polyurethanes USA · Huntsman International (Hong Kong) Limited · Huntsman International LLC · Huntsman Corporation Australia Private · Pt. Huntsman Indonesia, Indonesia · Huntsman Quimica Brazil Limited, Brazil · Huntsman Textile Effects France, France · Huntsman Advance Materials HK. Limited, Hongkong · Huntsman Japan K K , Japan · Huntsman International Mexico, Mexico · Huntsman Tekstill Urunleri Kimya, Turkey · Huntsman Advance Materials (Switzerland) Gmbh, Basle · Huntsman Efectos Textiles (Chile) LTDA. Chile · Huntsman Colombia Limited, Colombia · Huntsman Textile Effects (Panama) · Huntsman Advance Materials KK, Japan · Huntsman Textile Effects (Qingao) Company Limited, China · Huntsman Advance Material India Private Limited, India · Huntsman Surface Sciences UK Limited, UK · Baroda Textile Effects Private Limited, Gujarat (CIN No. U24100GJ2007PTC051201)

CAPITAL STRUCTURE

AFTER 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
167,000,000	Equity shares	Rs.10/- each	Rs.1670.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
75,685,000	Equity shares	Rs.10/- each	Rs.756.850 millions

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
167,000,000	Equity shares	Rs.10/- each	Rs.1670.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65,228,791	Equity shares	Rs.10/- each	Rs.652.287 millions

Of the above 65218791 equity shares of Rs. 10 each fully paid up are held by Huntsman Investment (Netherlands) B V, the holding company. Huntsman Investment (Netherlands) B V is a subsidiary of Huntsman Corporation (US), the ultimate holding company

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		652.287	644.475	858.475
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1887.887	1496.420	1544.681
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2540.174	2140.895	2403.156
LOAN FUNDS
1] Secured Loans		41.098	0.000	0.000
2] Unsecured Loans		200.000	530.000	88.000
TOTAL BORROWING		241.098	530.000	88.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2781.272	2670.895	2491.156
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		372.588	599.892	828.940
Capital work-in-progress		0.750	0.000	7.201
INVESTMENT		542.500	5.500	5.500
DEFERREX TAX ASSETS		40.245	12.923	1.888
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	871.394	712.195	687.853
	Sundry Debtors	1300.288	1172.487	1170.127
	Cash & Bank Balances	111.142	553.377	348.696
	Other Current Assets	0.006	0.392	0.000
	Loans & Advances	510.062	504.096	269.758
Total Current Assets		2792.892	2942.547	2476.434
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	893.740	820.813	750.303
	Current Liabilities	40.942	33.828	43.327
	Provisions	33.021	35.326	35.177
Total Current Liabilities		967.703	889.967	828.807
Net Current Assets		1825.189	2052.580	1647.627
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2781.272	2670.895	2491.156

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	5922.850	5152.415	5625.070
		Other Income	154.290	95.455	0.000
		TOTAL (A)	6077.140	5247.870	5625.070
Less	EXPENSES
		Purchase of Traded Goods	3286.163	2683.807	4729.250
		Manufacturing Expenses	1928.305	1880.297
		Increase/(Decrease) in Finished Goods	(39.485)	25.185
		TOTAL (B)	5174.983	4589.289	4729.250 (including financial expenses)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		902.157	658.581	NA
Less	FINANCIAL EXPENSES (D)		52.881	34.368	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		849.276	624.213	895.820
Less/ Add	DEPRECIATION/ AMORTISATION (F)		239.319	216.825	253.050
	PROFIT BEFORE TAX (E-F) (G)		609.957	407.388	642.770
Less	TAX (H)		235.678	175.309	281.670
	PROFIT AFTER TAX (G-H) (I)		374.279	232.079	361.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		748.240	730.161	369.061
Less	APPROPRIATIONS
		Transfer to Capital Redemption Reserve pursuant to buy back of equity shares	0.000	214.000	NA
	BALANCE CARRIED TO THE B/S		1122.519	748.240	730.161
	EARNINGS IN FOREIGN CURRENCY
	FOB Value of Export		--	520.939	441.393
	Commission on indent Sales		--	29.576	48.561
	Other Earnings		--	42.394	0.889
	TOTAL EARNINGS		NA	592.909	490.843
	IMPORTS
	Raw Materials and Finished Goods		--	1577.413	1675.421
	Capital Goods		--	18.443	17.313
	TOTAL IMPORTS		NA	1595.856	1692.734
	Earnings Per Share (Rs.)		5.76	3.34	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.15	4.42	6.42
Net Profit Margin (PBT/Sales)	(%)	10.29	7.90	11.42
Return on Total Assets (PBT/Total Assets}	(%)	11.82	6.55	10.92
Return on Investment (ROI) (PBT/Networth)		0.24	0.19	0.26
Debt Equity Ratio (Total Liability/Networth)		0.47	0.66	0.38
Current Ratio (Current Asset/Current Liability)		2.88	3.30	2.98

LOCAL AGENCY FURTHER INFORMATION

The Details of Sundry Creditors

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Total outstanding dues of Micro Enterprises and Small Enterprise	0.000	0.041
Advance From Customer	3.548	0.000
Total outstanding dues of creditors other than Micro Enterprises and Small Enterprise (includes Rs. 551.800 millions (Previous year Rs.Nil) due to subsidiary company	890.192	820.772
Total	893.740	820.813	750.303

Contingent Liabilities

Rs. In Millions

Claims not acknowledged by the Company	31.03.2010	31.03.2009
A) Sales Tax demand in respect of earlier years under dispute in respect of issues of applicability and classification, pending in appeal before higher authorities. The Company is hopeful of favorable decision. Amount paid there against and included (Rs.8.807 millions) (Previous yearRs.3.144 millions)	25.552	24.650
B) Income Tax Demand in respect of earlier years under dispute relating to issues of deducibility and taxability, pending in appeal before higher authorities.	27.281	8.467

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U24117MH2001PTC131020
Name of the company	HUNTSMAN INTERNATIONAL (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1/1 TTC Industrial Area, Post Box No. 12, Koparkhairne, Thane, Belapur Road, Navi Mumbai - 400 709, Maharashtra, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	IDBI Bank Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai- 400005, Maharashtra, India E-Mail: sv.mengle@idbi.co.in
Nature of description of the instrument creating or modifying the charge	The company has executed deed of hypothecation in favour of IDBI Bank Limited. (IDBI) on June 10.2009 to secure working capital facility of Rs.500.000 Millions provided by the Bank, by way of hypothecation on company’s entire current assets as well as entire plant and machinery, furniture and fixture, computer and vehicles, both present and future.
Date of instrument Creating the charge	10.06.2009
Amount secured by the charge	Rs.500.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per facility agreement dated June 10, 2009 executed by the company in favour of IDBI, as amended from time to time. Terms of Repayment As per facility agreement dated June 10, 2009 executed by the company in favour of IDBI, as amended from time to time. Margin As per facility agreement dated June 10, 2009 executed by the company in favour of IDBI, as amended from time to time. Extent and Operation of the charge The charge operates as security, inter alia, 1. On 1^st charge basis on company entire current assets, both present and future 2. By way of hypothecation on company’s entire Plant and Machinery, furniture and fixture, computer and Vehicles, both present and future to secure IDBI’s WCF of Rs.500.000 Millions together with all costs, expenses and other monies whatever stipulated in the facility agreement dated June 10, 2009 as amended from time to time.
Short particulars of the property charged	The whole of current assets as well as plant and machinery, furniture and fixture, computer and vehicles, both present and future, more particularly described in the Deed of Hypothecation dated June 19, 2009 executed by the company in favour of IDBI.

Corporate identity number of the company	U24117MH2001PTC131020
Name of the company	HUNTSMAN INTERNATIONAL (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1/1 TTC Industrial Area, Thane, Belapur Road, Koparkhairane, Navi Mumbai - 400709, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	IDBI Bank Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai- 400005, Maharashtra, India Email: sv.mengle@idbi.co.in
Nature of instrument creating charge	No instrument was executed. A mortgage by way of delivery of title deeds, created on 23.10.2009 by the company in favour of IDBI Bank Ltd over its office premises to secure due repayment by the company to IDBI in terms of facility agreement dated 10.06.2009 for its working capital facility aggregating to Rs. 500 millions
Date of instrument Creating the charge	23.10.2009
Amount secured by the charge	Rs. 500.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per facility agreement dated 10.06.2009 executed by the company in favour of IDBI, as amended from time to time. Terms of repayment As per facility agreement dated 10.06.2009 executed by the company in favour of IDBI, as amended from time to time. Margin As per facility agreement dated 10.06.2009 executed by the company in favour of IDBI, as amended from time to time. Extent and operation of the charge The charge operates as security interalia as, 1st charge on com's office premises situated at 210 & 211 Raheja Chambers, B' lore to secure WCF of Rs.500 millions together with all costs, expenses and other monies whatever stipulated in the FA Date 10.6.09 as amended from time to time.
Short particulars of the property charged (Including location of the property)	Whole of the immovable properties viz., office premises admeasuring 1500 Sq. ft situated at 210 and 211 together with a car parking spaces bearing Nos.B-31 and 35, Raheja Chambers, Plot No.12, Museum Road Bangalore to secure IDBI's WCF of Rs. 500 millions together with interest and all other monies payable by the company to IDBI under facility agreement dated 10.06.2009 as amended from time to time.
Particulars of the present modification	IDBI's working capital facility aggregating to Rs.500 millions together with interest and all other monies which was originally secured by way of hypothecation dated 10.06.2009 is now also secured by way of mortgage on its office premises together with car parking spaces situated at Bangalore by deposit of title deeds by the company on October 23, 2009 on 1st charge basis.

FIXED ASSETS

· Building

· Improvements

· Machinery

· Fixture and Equipments

· Software

· Plant and Machinery

· Good Will

· Distribution Network

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.44.04
UK Pound	1	Rs.72.40
Euro	1	Rs.63.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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.