MIRA INFORM REPORT

Report Date :

15.12.2011

IDENTIFICATION DETAILS

Name :	DESCON LIMITED
Registered Office :	Infinity, Tower 1, 3^rd Floor, Block GP, Sector V, Salt Lake, Kolkata – 700 091, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.03.1995
Com. Reg. No.:	21-69801
Capital Investment / Paid-up Capital :	Rs.7.863 millions
CIN No.: [Company Identification No.]	U74120WB1995PLC069801
TAN No.: [Tax Deduction & Collection Account No.]	CALD01838E
PAN No.: [Permanent Account No.]	AAACD9410G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of Consultancy and Information and Technology.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3100000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. General financial position is good. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Infinity, Tower 1, 3^rd Floor, Block GP, Sector V, Salt Lake, Kolkata – 700 091, West Bengal, India
Tel. No.:	91-33-23577017 / 2904
Fax No.:	91-33-23571234
E-Mail :	softwareservices@desconlimited.com enggdesign@desconlimited.com powerproject@desconlimited.com hr@desconlimited.com info@desconlimited.com
Website :	http://www.desconlimited.com

DIRECTORS

As on 17.09.2011

Name :	Mr. Sundaresan Radhakrishnan
Designation :	Managing Director
Address :	8, Dr. Rajendra Prasad Sarani, Kolkata – 700 001, West Bengal, India
Date of Birth/Age :	05.01.1952
Date of Appointment :	07.07.2008
DIN No.:	00009818

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L40105WB1919PLC003263	DPSC Limited	Managing director	25-01-08	25-01-03	11-02-10	Active	NO
2	U74120WB1995PLC069801	Descon Limited	Managing director	07-07-08	08-04-03	-	Active	NO
3	U72900WB2004PLC100207	Descon Soft Limited	Director	19-10-04	19-10-04	12-04-11	Active	NO
4	U67120WB1893NPL000761	The Bengal Chamber Of Commerce and Industry	Director	26-12-06	26-12-06	22-09-10	Active	NO
5	U72200OR2000PTC006172	Infeon Network Private Limited	Director	20-10-08	20-10-08	-	Active	NO
6	U27106MH2007PLC170160	JSW Bengal Steel Limited	Director	25-07-11	06-05-11	-	Active	NO
7	U40104WB1985SGC039154	The West Bengal Power Development Corporation Limited	Director	20-09-11	20-09-11	-	Active	NO

Name :	Mr. Biswadip Gupta
Designation :	Director
Address :	18DX2, Bay Tower, Hiland Tower, 1925 Chak Garia, Kolkata – 700 094, West Bengal, India
Date of Birth/Age :	25.12.1950
Date of Appointment :	21.12.2007
DIN No.:	00048258

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L26933WB1991PLC052968	Vesuvius India Limited	Director	18-04-07	07-09-91	-	Active	NO
2	U91990WB1907GAP001754	The Bengal Club Limited	Director	27-07-04	27-07-04	-	Active	NO
3	U74210WB2000PLC092471	Nicco Engineering Services Limited	Director	29-05-06	29-05-06	-	Active	NO
4	U27106MH2007PLC170160	JSW Bengal Steel Limited	Director	20-04-07	20-04-07	-	Active	NO
5	L27102MH1994PLC152925	JSW Steel Limited	Director	13-06-07	30-04-07	07-05-09	Active	NO
6	U74120WB1995PLC069801	Descon Limited	Director	17-11-08	21-12-07	-	Active	NO
7	U51420MH2008PLC184386	Barbil Beneficiation Company Limited	Director	07-07-08	07-07-08	-	Active	NO
8	U45209WB2009PTC135920	Dishergarh Infrastructure Development Private Limited	Director	16-06-09	16-06-09	-	Active	NO
9	U64202WB2000PLC092193	Nicco Ventures Limited	Director	27-07-10	28-07-09	-	Active	NO
10	U10100WB2009PLC139007	Gourangdih Coal Limited	Director	28-08-10	26-10-09	-	Active	NO
11	U40300MH2010PLC199844	JSW Energy (Bengal) Limited	Director	08-02-10	08-02-10	-	Active	NO
12	U10300MH2010PLC200871	JSW Natural Resources Bengal Limited	Director	13-03-10	13-03-10	28-06-10	Active	NO

Name :	Mr. Sudipto Sarkar
Designation :	Director
Address :	31, Broad Street, Kolkata – 700 026, West Bengal, India
Date of Birth/Age :	21.03.1946
Date of Appointment :	25.11.2008
DIN No.:	00048279

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L27102MH1994PLC152925	JSW Steel Limited	Director	09-05-05	09-05-05	-	Active	NO
2	L26933WB1991PLC052968	Vesuvius India Limited	Director	26-07-05	26-07-05	-	Active	NO
3	U45201WB1931PTC007062	Turf Properties Private Limited	Director	28-09-07	08-11-06	09-11-08	Active	NO
4	U67120MH2005PLC155188	BSE Limited	Director	14-09-07	09-11-06	29-06-11	Active	NO
5	U51909WB1996PTC078770	Indivar Commercial Private Limited	Director	29-09-07	29-09-07	07-06-09	Active	NO
6	U74120WB1995PLC069801	Descon Limited	Director	22-09-09	25-11-08	-	Active	NO
7	L92490TN1983PLC009903	Eih Associated Hotels Limited	Director	24-08-09	28-03-09	-	Active	NO
8	L01132AS1915PLC000200	B and A Limited	Additional director	18-06-09	18-06-09	-	Active	NO
9	L31402WB1934PLC007993	Eveready Industries India Limited	Director	24-09-10	24-02-10	-	Active	NO
10	U55101TN1972PLC075041	Island Hotel Maharaj Limited	Additional director	31-07-10	31-07-10	-	Active	NO
11	L21021OR1986PLC001624	B and A Packaging India Limited	Director	08-07-11	04-02-11	-	Active	NO
12	L45202WB1961PLC025181	Mcnally Bharat Engineering Company Limited	Director	23-09-11	06-05-11	-	Active	NO

Name :	Mr. Anunay Kumar
Designation :	Director
Address :	9, Mecon Colony, P S Doranda, P O Hinu, Ranchi – 834 002, Jharkhand, India
Date of Birth/Age :	10.04.1946
Date of Appointment :	07.05.2009
DIN No.:	01647407

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1990PLC041985	Tecpro Systems Limited	Director	20-06-07	20-06-07	-	Active	NO
2	U27203MH2005PLC154612	Jsw Aluminium Limited	Director	23-05-08	31-01-08	-	Active	NO
3	U74120WB1995PLC069801	Descon Limited	Director	22-09-09	07-05-09	-	Active	NO
4	U74900MH2010PTC199845	Kansortium Process Teknologies Private Limited	Director	08-02-10	08-02-10	-	Active	NO
5	U74900MH2010PLC202725	Jsw Techno Projects Management Limited	Additional director	14-06-10	14-06-10	30-06-11	Active	NO

Name :	Mr. Alok Mehrotra
Designation :	Director
Address :	Flat No. 001, Tower 2, North Ujj, Near City Centre II, Rajarhat, Kolkata – 700 156, West Bengal, India
Date of Birth/Age :	02.07.1957
Date of Appointment :	07.05.2011
DIN No.:	01066025

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U13100TZ2005PLC011939	Tamilnadu Iron Ore Mining Corporation Limited	Director	22-09-07	27-10-06	Active	NO
2	U74120WB1995PLC069801	Descon Limited	Director	17-09-11	07-05-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Chiranjib Das
Designation :	Secretary
Address :	Centre For Excellence, Plot X-1, Block-EP, Sector – V, Salt Lake C, Kolkata – 700 091, West Bengal, India
Date of Birth/Age :	07.02.1962
Date of Appointment :	24.02.2010
PAN No.:	ACNPD3510B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.09.2011

Names of Shareholders	No. of Shares
N C Mittal	200
Tapan Kumar Chakraborty	500
Swapan Kumar Datta	200
Dilip Kumar Ghosal	200
Avijit Nag	200
Rathindra Nath Senity	200
Prabir Kumar Das	500
Sadhana Sarkar	200
Kartik Chandra Bandyopadhyay	200
Narayan Chandra Chakraborty	200
Nityananda Parida	200
Rathindra Nath Mukherjee	200
Achin Kumar Bose	400
Ajit Paul	300
Bidhan Chandra Biswas	200
Sourav Sengupta	200

As on 17.09.2011

Equity Share Breakup	Percentage of Holding
Category
Venture capital	49.00
Bodies corporate	27.56
Directors or relatives of directors	0.09
Other top fifty shareholders	14.70
Others	8.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Consultancy and Information and Technology.

GENERAL INFORMATION

Customers :

· Siemens Vai

· Alstom

· Igloo Review

· JSW

· ICI

· NICCO

· JUSCO

· nPower

· Philips

· DPSC

· Indian Oil

· ONGC

· NALCO

No. of Employees :

Not Available

Bankers :

· Corporation Bank

Sector – V, D. No. J-1/12, 1^st Floor, Block-EP/GP, Salt Lake City, Kolkata – 700 091, West Bengal, India

· Kotak Mahindra Bank Limited

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Term Loan from Kotak Mahindra Bank Limited	0.000	8.291
Cash Credit from Kotak Mahindra Bank Limited	0.000	65.089
Cash Credit from Corporation Bank (Secured against 1^st charge on Fixed Assets of the Company hypothecation of book debts not exceeding 120 days.)	17.659	5.029
Inter-Corporate Loan (Against pledge of 1336220 DPSCL shares)	0.000	56.830
Short Term Loan from Bank (Secured against Fixed Deposit of Rs.2.350 millions)	0.000	2.115
Vehicles Loan (Secured by hypothecation of vehicles)	1.934	1.543
Finance lease obligation (Secured against Plant and Machinery taken on Finance Lease)	4.500	7.688
Total	24.093	146.585

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Short Term Loan from Bank	0.000	0.355
Short Term Loan from Bodies Corporate	0.000	20.946
Total	0.000	21.301

Banking Relations :	--
Auditors :
Name :	H S Jha Chartered Accountant
Address :	14, Government Place East, Kolkata – 700 069, West Bengal, India
PAN No.:	AABFL1894Q
Associates :	DPSC Limited (Ceased to be Associate from 05^th April 2010)
Subsidiaries	Descon Soft Limited (Ceased to be Subsidiary on 30^th March 2011)

CAPITAL STRUCTURE

As on 17.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
786274	Equity Shares	Rs.10/- each	Rs.7.863 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7.863	7.863	7.863
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		760.577	381.143	378.497
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		768.440	389.006	386.360
LOAN FUNDS
1] Secured Loans		24.093	146.585	132.079
2] Unsecured Loans		0.000	21.301	6.933
TOTAL BORROWING		24.093	167.886	139.012
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		792.533	556.892	525.372
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.321	65.246	45.260
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.472	114.414	114.414
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.396	22.742	5.024
	Sundry Debtors	123.909	191.678	156.729
	Cash & Bank Balances	594.604	99.160	130.413
	Other Current Assets	4.875	41.299	35.508
	Loans & Advances	56.014	151.539	136.324
Total Current Assets		809.798	506.418	463.998
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.769	54.120	16.881
	Other Current Liabilities	29.289	74.495	80.848
	Provisions	0.000	0.571	0.571
Total Current Liabilities		73.058	129.186	98.300
Net Current Assets		736.740	377.232	365.698
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		792.533	556.892	525.372

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Project and other Consultancy Services	30.313	36.987	55.502
		Income from Internet Services	11.668	21.113	14.020
		Contract Jobs	127.905	109.055	121.583
		Other Income	769.393	25.927	30.774
		TOTAL (A)	939.279	193.082	221.879
Less	EXPENSES
		Operating Cost	108.421	99.216	100.151
		Administrative and other Expenses	336.244	81.081	81.166
		Increase / Decrease in stock	(7.654)	(17.719)	(4.362)
		Prior period	0.184	0.490	4.140
		TOTAL (B)	437.195	163.068	181.095
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		502.084	30.014	40.784
Less	INTEREST (D)		11.302	17.336	25.406
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		490.782	12.678	15.378
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.349	9.791	7.352
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		474.433	2.887	8.026
Less	TAX (H)		95.000	0.240	0.706
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		379.433	2.647	7.320
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		79.475	76.828	69.508
	BALANCE CARRIED TO THE B/S		458.908	79.475	76.828
	EARNINGS IN FOREIGN CURRENCY		0.503	NIL	1.007
	Earnings Per Share (Rs.)		482.57	3.37	12.34

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	40.40	1.37	3.30
Net Profit Margin (PBT/Sales)	(%)	279.27	1.73	4.20
Return on Total Assets (PBT/Total Assets}	(%)	54.84	0.51	1.58
Return on Investment (ROI) (PBT/Networth)		0.62	0.01	0.02
Debt Equity Ratio (Total Liability/Networth)		0.13	0.76	0.61
Current Ratio (Current Asset/Current Liability)		11.08	3.92	4.72

LOCAL AGENCY FURTHER INFORMATION

NOTE

The Registered Office of the company has been shifted from Centre for Excellence, Plot No. X-1, 2 and 3, Block-EP, Sector – V, Salt Lake, Kolkata – 700 091, West Bengal, India to the present address w.e.f. 24.05.2010.

A REVIEW

Further to the last year’s Report, order under appeal to the extent of the order of the Company Law Board (CLB) against the petition filed by the shareholders holding only 4.73% of the share capital of the Company, the Hon’ble High Court, Calcutta modified the order to the extent as mentioned hereunder:

1. the CLB to decide the main Company petition within 4 months from the date of the order,

2. till such decision is made by CLB, the Company would be free to utilize the sums realized from sale of shares of DPSC for making capital expenditure for acquiring fixed assets of the Company, but without encumbering or selling without the leave of the CLB,

3. and that the Company could make revenue expenditure and make payments, advances and investments from the said sum upto Rs.100.000 millions and if beyond such limit the Company would require to comply with the terms as laid down by the Hon’ble Court.

The main petition is at the hearing stage before the CLB.

In view of the above restriction imposed upon the Company in incurring revenue expenditure the growth strategy as was conceived and informed in the preceding year’s report, had to be slowed down by the Company.

During the year, as was stated in the previous year’s report the Company has increased its manpower more in the areas of professionally qualified and experienced personnel in commensurate with the requirement of the Company in its focused areas of Engineering, Design and Consultancy which, with further additions as may be required would form a formidable result oriented professional team and that would enure a long terms benefits. In addition to this, the Company is at present actively gearing itself to enter the lucrative EPC contract business which on successful implementation in near future will undoubtedly boost the revenue generation of the Company.

The Company could already establish itself as one of the leading organizations in GIS. The Company is already in the process of executing APDRP jobs, underground Asset Management, Analytical GIS of which few assignments are quite prestigious and that the flow of such business assignments are steadily increasing which will have positive impact on the revenue generation of the Company in the coming years.

Power Project Division has geared itself up for executing big projects and negotiations are in process with various prospective clients for taking up such assignments.

CONTINGENT LIABILITIES

Particulars	As on 31.03.2011 Rs. in millions
Claim against the company not acknowledged as debts : Income tax matter pending in appeal	NIL
Guarantee given by banks on behalf of the Company	46.263

FORM 8

Corporate identity number of the company	U74120WB1995PLC069801
Name of the company	DESCON LIMITED
Address of the registered office or of the principal place of business in India of the company	Infinity, Tower 1, 3^rd Floor, Block GP, Sector V, Salt Lake, Kolkata – 700 091, West Bengal, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10208334
Type of charge	· Immovable property · Book debts · Floating charge · Others o Fixed assets and Current assets of the Company
Particular of charge holder	Corporation Bank Sector – V, D. No. J-1/12, 1^st Floor, Block-EP/GP, Salt Lake City, Kolkata – 700 091, West Bengal, India E-Mail : cb1045@corpbank.co.in
Nature of instrument creating charge	Common deed of hypothecation of Movables / Assets / Debts.
Date of instrument Creating the charge	11.05.2011
Amount secured by the charge	Rs.100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest OD/BG/LC, Interest @ 13.40% p.a., being 4% over and above the base rate, which is 9.40% p.a. at present, rising or falling therewith. Terms of Repayment Over draft - repayable on demand subject to annual review renewal. Over draft - after completion of three specific project. BG / LC - as and when demanded by the bank in case of crystallization. Margin 15% margin in Bank Guarantee / Letter of Credit. Extent and Operation of the charge Hypothecation / First charge on fixed assets, Current assets and Book debts of the Company, Present and Future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All office equipment, furniture, fixtures, vehicles, machineries, all movables, present or future, book debts, current assets to the Deed of Hypothecation.
Particulars of the present modification	The Bank had granted credit facilities of Rs.35.000 millions which was subsequently modified to Rs.91.000 millions vide deed of hypothecation dated 12.07.2010 and again it was enhanced to Rs.100.000 millions (fund based 20.000 millions and non fund based 80.000 millions) by deed of hypothecation dated 30.12.2010. The said credit facilities now been revised to Rs.100.000 millions consisting fund based credit facility of Rs.25.000 millions and non fund based credit facility of 75.000 millions by deed of hypothecation dated 11.05.2011.

FIXED ASSETS

· Land and Building

· Computers

· Office Equipments

· Furniture

· Vehicles

· Plant and Machinery

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.53.57
UK Pound	1	Rs.82.97
Euro	1	Rs.69.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		50

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.