MIRA INFORM REPORT

Report Date :

17.08.2011

IDENTIFICATION DETAILS

Name :	SHREE PUSHKAR PETRO PRODUCTS LIMITED
Registered Office :	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.03.1993
Com. Reg. No.:	11-071376
Capital Investment / Paid-up Capital :	Rs. 192.016 millions
CIN No.: [Company Identification No.]	U24100MH1993PLC071376
TAN No.: [Tax Deduction & Collection Account No.]	MUMS47888B
PAN No.: [Permanent Account No.]	AAACS9372E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Dyes and Dyes Chemicals
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (37)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2100000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. The company is progressing well. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre business dealings 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.

INFORMATION PARTED BY

Name :	Ms. Janvi
Designation :	Assistant Account Manager
Date :	12.08.2011

LOCATIONS

Registered Office :	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-28502525
Fax No.:	91-22-28504242
E-Mail :	sarfare@shreepushkar.com info@shreepushkar.com g_makharia@hotmail.com
Website :	www.shreepushkar.com
Location :	Owned
Factory :	B 103, MIDC Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, India
Tel. No.:	91-2356-272625 / 272718
Fax No.:	91-2356-272625

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Punit Gopi Makharia
Designation :	Director
Address :	C- 603, Lakschandi Heights, Krishna Vatika Road, Gokuldham, Goregaon (East), Mumbai 400 063, Maharashtra, India
Date of Birth/Age :	28.04.1970
Date of Appointment :	29.03.1993
DIN No :	01430764
Name :	Mr. Gautam Gopi Makharia
Designation :	Director
Address :	C- 603, Lakschandi Heights, Krishna Vatika Road, Gokuldham, Goregaon (East), Mumbai 400 063, Maharashtra, India
Date of Birth/Age :	06.09.1973
Date of Appointment :	29.03.1993
DIN No :	01354843
Name :	Mr. Gopi Kishan Makharia
Designation :	Director
Address :	C- 603, Lakschandi Heights, Krishna Vatika Road, Gokuldham, Goregaon (East), Mumbai 400 063, Maharashtra, India
Date of Birth/Age :	06.08.1946
Date of Appointment :	14.01.2003
DIN No :	01430784
Name :	Mr. Satpal Arora
Designation :	Nominee Director
Address :	205, Fancy Apartments, Vasundhara Enclave, Delhi 110096, India
Date of Birth/Age :	01.04.1958
Date of Appointment :	09.03.2010
DIN No :	00061420
Name :	Mr. Nirmal Kedia
Designation :	Director
Address :	252, Krishna Bhavan, Ground Floor, Walkehswar Road, Walkeshwar, Mumbai 400 006 , Maharashtra, India
Date of Birth/Age :	01.02.1970
Date of Appointment :	08.09.2010
DIN No :	00050769

KEY EXECUTIVES

Name :	Ms. Janvi
Designation :	Assistant Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Aradhana Makharia	353446
Gautam Makharia	4328301
Bhnu Makharia	432307
Gopi Kishan Makharia	356831
Manisha J. Sarfare	9415
Punit Makharia	9194593
Ranjana Makharia	375692
Sudhir Kangutkar	9415
India Enterprise Development Fund, India	5176957
Total	20236957

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	94.48
Others	1.52
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyes and Dyes Chemicals

Products :

ITC CODE	PRODUCT
29214524	K. Acid
29222140	Gamma Acid
29222932	Vinly Sulphonester

Exports :

Products :

· Dyes and Dyes Chemical

Countries :

· Thailand

· Switzerland

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

Cash, Credit

GENERAL INFORMATION

Customers :

· Manufacturer

No. of Employees :

350 (Approximately)

Bankers :

· State Bank of India, industrial Finance Branch, Snehal chambers, Telli Gali, Andheri (East), Mumbai-400069, Maharashtra, India

· HDFC Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Working Capital Limits
a] Cash Credit Limit from State Bank of India	108.467	124.835
b] Export Packig Credit from State Bank of India	44.816	0.000
c] Cash Credit Limit from State Bank of Patiala	40.257	30.150
Term Loans
a] Term Loans from State Bank of India (Repayable within One year Rs.16.767 millions) Previous Year Rs.15.552 millions)	131.759	63.613
Vehicle /Equipments Loans
a] Vehicle Loan from HDFC Bank	0.338	0.763
b] Vehicle Loan from Kotak Mahindra Prime Limited	0.104	0.392
c] Vehicle Loan from Reliance Capital Limited	0.353	0.000
d] Equipments Loan from Reliance Capital Limited (Repayable within One year Rs. 1.042 millions) Previous Year Rs.0.634 million)	1.333	0.000
Total	327.427	219.753
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Director and Share Holders	1.391	0.056
Total	1.391	0.056

Banking Relations :	--
Financial Institution :	· Kotak Mahindra Prime Limited · Reliance Capital Limited
Auditors :
Name :	I.S. Parihar Chartered Accountant
Address :	G1, Ground Floor, Sushila Palace Opposite Swagat Hall, Carter Road-5, Borivali (East), Mumbai-400066, Maharashtra, India
Sister Concern :	· Makharia Overseas Private Limited · Dwarka Security Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19201566	Equity Shares	Rs.10/- each	Rs. 192.016 Millions

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20236957	Equity Shares	Rs.10/- each	Rs. 202.370 Millions

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		192.016	75.100	75.100
2] Share Application Money		17.923	78.423	44.551
3] Reserves & Surplus		143.381	58.702	44.155
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		353.320	212.225	163.806
LOAN FUNDS
1] Secured Loans		327.427	219.753	138.748
2] Unsecured Loans		1.391	0.056	0.000
TOTAL BORROWING		328.818	219.809	138.748
DEFERRED TAX LIABILITIES		16.410	13.049	11.665
TOTAL		698.548	445.083	314.219
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		141.889	141.050	149.665
Capital work-in-progress		213.371	67.579	3.011
INVESTMENT		0.510	0.510	0.510
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	292.051	211.594	206.131
	Sundry Debtors	124.033	81.745	81.490
	Cash & Bank Balances	39.111	6.203	6.604
	Other Current Assets	22.574	17.882	26.584
	Loans & Advances	15.668	15.822	17.023
Total Current Assets		493.437	333.246	337.832
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	111.610	41.728	66.748
	Other Current Liabilities	30.475	47.482	102.961
	Provisions	10.959	9.534	8.532
Total Current Liabilities		153.044	98.744	178.241
Net Current Assets		340.393	234.502	159.591
MISCELLANEOUS EXPENSES		2.385	1.442	1.442
TOTAL		698.548	445.083	314.219

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1047.759	666.174	514.807
		Other Income	2.878	2.602	0.831
		TOTAL (A)	1050.637	668.776	515.638
Less	EXPENSES
		Cost of Goods Sold / Consumed	880.860	532.656	368.738
		Manufacturing Expenses	65.622	41.966	29.933
		Administrative Expenses	12.184	8.121	7.389
		Excise Duty	32.595	30.155	48.957
		Loss on Sale of Vehicles	0.000	0.000	0.121
		TOTAL (B)	991.261	612.898	455.138
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		59.376	55.878	60.500
Less	FINANCIAL EXPENSES (D)		23.562	25.281	23.416
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.814	30.597	37.084
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.169	11.884	6.678
	PROFIT BEFORE TAX (E-F) (G)		23.645	18.713	30.406
Less	TAX (I)		3.500	3.702	3.757
	PROFIT AFTER TAX (G-I) (J)		20.145	15.011	26.649
Add / (Less)	ADJUSTMENT OF TAX OF EARLIER YEAR		0.155	0.919	(0.024)
Less	PRIOR PERIOD ITEMS		0.844	0.000	0.000
Less	DEFERRED TAX LIABILITIES OF CURRENT YEAR		1.256	1.383	4.681
Less	DEFERRED TAX LIABILITIES OF EARLIER YEAR		2.105	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.601	41.054	19.110
	BALANCE CARRIED TO THE B/S		71.696	55.601	41.054
	EXPORT VALUE		86.974	104.670	62.847
	IMPORTS VALUE		60.340	24.523	38.089
	Earnings Per Share (Rs.)		1.05	2.00	3.55

Particulars	31.03.2011
Sales Turnover (Approximately)	1100.000

The above information has been parted by Ms. Janvi.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.92	2.24	5.17
Net Profit Margin (PBT/Sales)	(%)	2.26	2.81	5.91
Return on Total Assets (PBT/Total Assets}	(%)	3.72	3.95	6.24
Return on Investment (ROI) (PBT/Networth)		0.07	0.09	0.18
Debt Equity Ratio (Total Liability/Networth)		1.41	1.56	2.01
Current Ratio (Current Asset/Current Liability)		3.22	3.37	1.89

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

SOURCES OF FUNDS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	111.610	41.728	66.748

OPERATIONS:

After the economic slowdown/ global meltdown of the preceding year, the year 2009-10 has been a year of consolidation. Though the market has started recovering from the end of the 1st quarter, the recovery of prices of Raw Material and Finished Products still continues to be slow. Never the less the Company has been successful in maintaining reasonable growth in terms of sales and they are proud to say that with their sales crossing Rs.1000.000 millions during the FY 2009-10 they have crossed a milestone on their path of growth. Their profit figures though, have not been that high when compared to the sales trajectory, yet however, it has exceeded last year’s figures. The apparent compression in the profits has mainly been the result of restrained recovery on the price front of both, their raw material and finished products.

During the year 2009-10 the turnover of the company has increased to Rs 1047.759 millions as against Rs. 666.173 millions achieved during the last year, recording a growth of 57.28%

The 2400 MT per annum H-Acid plant was commissioned in September 2009. The manufacture of this product also ensures utilization of the spent acid generated in the manufacture of Vinyl Sulphone, effecting substantial savings on the existing high effluent treatment cost. The product is considered as the mother of all Dye-intermediates, and along with the existing products of Gamma Acid, KAcid, and Vinyl Sulphone Ester the Company is among the few companies to manufacture all core dye intermediates which form the backbone of the Dyeindustry. In the initial few months of the start up of the plant they did face some teething troubles, and were required to add/ modify certain equipments; however they have now been in a position to stabilize on the manufacturing process and their product has received good acceptance from the market. They have hitherto been selling only wet cake, but now they are in the process of installing a dryer in the H-Acid plant to manufacture dry powder, which has even better demand and acceptance.

The year 2009-10 was the first full year of operation for their DCP plant, and they are proud to say that their product has received overwhelming response. Not only are they supplying their DCP to some of the major and prestigious Diaries at the national level but are also exporting their products to other Asian and African countries.

As regards the Acid complex there has been a delay in the commissioning of the plants by about 6 months, mainly on account of the hold up of all their operations during the global meltdown period during the 3rd quarter of 2008-09 and added with heavy rainfall in the Konkan Belt during the current monsoon period which had a direct effect on the project execution work both at their end as also at their vendors end. However they said period is now over and they are happy to announce that their Acid plant has been commissioned on the 18th of this month. The other plants namely CSA and power plant would be commissioned during the course of the next two months. Considering the magnitude of the expansion, you will agree that the delay has not been too large.

To continue on the growth path the directors have been exploring newer avenues of expansion, in this direction they have now embarked upon to establish a fertilizer Division. You may recall that as per their original expansion plans it was proposed to set up a plant for the manufacture of Beta Napthol with an installed capacity of 1800 MT/ annum, Within the last 2 years, however, the economics of this product in terms of operating margins have undergone drastic changes and it was not felt prudent to go ahead with the setting up of the Beta Napthol plant and hence the same has been dropped. In its place we are now putting up a Fertiliser Division and to start with set up plants for the manufacture of

Single Super Phosphate (SSP) a very popular Phosphatic Fertiliser with an initial capacity of 45,000 TPA expandable to 1,00,000 TPA in the near future.

Soil Conditioner (SC) an additive used along with fertlisers to restore proper elemental nutrient balance in the soil. The Capacity of this plant is proposed at 40 TPD or 12000 TPA.

In addition to the wide demand for these products in their region the advantages of putting up these plants are that some of the key raw material required for these products are available in house as by products from the existing manufacturing lines and will therefore have considerable price advantage vis-à-vis margins over other manufacturers.

FUTURE OUTLOOK

They may share with you that their Unique Business Model of cutting costs by backward integration have opened up new vistas and have been proving to be their Growth Drivers. In view of this model of backward integration they had taken up the massive expansion of the Acid complex their largest expansion so far not only in terms of Capital cost but also in terms of production tonnage. The plant as you know is just commissioned and has provided great mileage not only in terms of lower production costs but also has provided them newer avenues of expansion which they had never thought of in the past.

They are also moving towards establishing their own marketing channels and network, though in a controlled manner in the initial period. This would provide them with the desired marketing infra structure which should be of immense help in the years to come and I believe that their emerging markets would be the key drivers for their future growth prospects

They would also like to share with you that they have been exploring with the idea of their future expansions through organic as also inorganic growth, which in their opinion would provide the desired growth strategy.

They would like to assure you with a sense of confidence and strong optimism that they are striving and will continue to strive for a sustained and enduring growth across their various product divisions.

FORM 8

Corporate identity number of the company	U24100MH1993PLC071376
Name of the company	SHREE PUSHKAR PETRO PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	State Bank of India, industrial Finance Branch, Snehal chambers, Telli Gali, Andheri (East), Mumbai-400069, Maharashtra, India
Nature of instrument creating charge	Memorandum of deposit for creation of further charge for term loan/overall limit where the initial charge is created by way of mortgage by deposit of title deeds.
Date of instrument Creating the charge	27.07.2011
Amount secured by the charge	RS. 667.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest DCC - 4.75% above BR present effective rate 14.00% p.a. with Monthly rests, as against applicable pricing of 16.00% p.a. and existing pricing of 1.00% above SBAR i.e. 15.00% p.a. Terms of repayment TL I - Original Repayment Schedule 54 Monthly installments (15 Months moratorium period from July 2007 to September 2008). Repayment of term loan started October 2008 with Moratorium of 15 Months. TL III Original Repayment Schedule is for 48 Monthly installments commencing from April 2011 (Moratorium from June 2010 to March 2011) Margin Raw Materials (Imported)- 25%, Raw Materials (Indigenous) - 25%, SIP - 25%, Finished Goods - 25%, Book Debts (Cover 90 days) - 50%, EPC - 10%, LC - 15%, BG - 15%. Buyers Credit - 15% Extent and operation of the charge Property of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC of Rs. 667.000 millions Other SBI - Rs. 447.000 millions, Yes Bank Limited - Rs. 70.000 millions, EXIM Bank - Rs. 150.000 millions, Total - Rs. 667.000 millions. and SBI TLs - TL I - Rs. 29.800 millions, TL II - Rs 86.500 millions, TL III - Rs. 34.400 millions, Total - Rs. 150.700 millions All other terms and conditions as per the SBI San letter No. IFB/DGM/SKR/2011-12/54 dated 14.06.2011, Yes Bank Limited San letter No YBL/MUM/BB/FL/0394/2010-11 dated 17.09.2010 and EXIM San letter No SME/PSC-105/06 dated May 03, 2011 read with letter no SME:PPSC-105:38 dated June 21, 2011 and loan agreement.
Short particulars of the property charged (Including location of the property)	Property of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC of Rs. 667.000 millions 1. All that piece or parcel of factory land and building adm 7072 sq. mtrs, lying being and situate at Plot No. B-103 in the Lote Parshuram Industrial Area within the village of Lote an outside limits of Khed Muncipal Council, Taluka and Registration District Ratnagiri Sub- District and bounded as follows: On or towards the North by service corridor 60 M road, or towards south by Drainage line; on or towards the east by the Plot No. C-42 and or towards the West by the Plot No. B- 102 2. All the piece or parcel of land adm 19471 sq. mtrs, being Plot No. D -25, in the Lote Pashuram Industrial Area, within the village limits of Lote Taluka and Registration District of Ratnagiri and bounded as follows on or towards the North by Plot No. D-20 and MIDC boundary, on or towards south by service corridor; on or towards the east by MIDC boundary and or towards the West by road. Together with the structures 3. All the piece or parcel of land admeasuring 9000 sq. mtrs, being Plot No.B-102, in the Lote Pashura Industrial area, within the village limits of Khed, Taluka and Registration Sub- District of Khed of Ratnagiri and bounded as follows on or towards the North by MIDC Lane, On or towards the South by Plot No B-103, On or towards the East by MIDC Road 30MR/W and On or towards the West by MIDC Boundary. Together with structures standing thereon.
Charge identification number of the charge to be modified	90366219
Date of instrument modifying the charge	11.07.2011
Particulars of the present modification	The Borrowers by way of Registered mortgage of Immovable properties of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC at Described Point No. 15 has provided further security to secure the SBI Consortium for the Working Capital of Rs. 667.000 millions

TRADE REFERENCE:

· Aarti Industries, Mumbai

· Reliance Industries Limited, Mumbai

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Computers and Printers

· Vehicles

· Office Equipments

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. 45.24
UK Pound	1	Rs. 73.88
Euro	1	Rs. 65.06

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		37

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.