MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	TAJ PHARMACEUTICALS LIMITED
Registered Office :	434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.11.2004
Com. Reg. No.:	11-149424
Capital Investment / Paid-up Capital :	Rs.10.500 millions
CIN No.: [Company Identification No.]	U24230MH2004PLC149424
TAN No.: [Tax Deduction & Collection Account No.]	MUMT12519D
PAN No.: [Permanent Account No.]	AACCT1480C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Pharmaceutical Products.
No. of Employees :	Approximately 400 (In Office – 25, In Factory – 375)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 94000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the turnover and profitability of the company due to slowdown in the market. However, 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. Note: As per government records, the status of the company is shown as “Under Liquidation”. But as informed by the company’s management, the company is very much active.

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

INFORMATION PARTED BY

Name :	Mr. Amit
Designation :	Assistant Manager
Date :	14.12.2011

LOCATIONS

Registered Office :	434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
Tel. No.:	91-22-26374592/ 30601000/ 26374593
Mobile No.:	91-9930407744 (Mr. Shantanu)
Fax No.:	91-22-26341274
E-Mail :	tajgroup@tajpharma.com tajgroup@tajpharamceuticals.com tajpharmaceuticals@tajpharmaceuticals.com
Website :	http://www.tajpharmaceuticals.com
Area :	4000 sq ft
Location :	Owned
Factory 1 :	Factory cGMP, WHO, UKMHRA Approved: At Village - Kalgam, Coastal Highway Road, District – Valsad – 396 142, Gujarat, India
E-Mail :	tajgroup@tajpharma.com
Factory 2 :	Factory cGMP, WHO, UKMHRA Approved: Plot No. - 1019, Village - Sarigam, G.I.D.C., Road No. 10, District – Valsad - 396 142, Gujarat, India
Factory 3 :	US FDA Standards , WHO, Approved: (Under Development) Plot No. 32/ 2B, Village Tondali, Taluka - Khalapur, District Raigarh - 410 203, Maharashtra, India
Fax No.:	91-2192-278323/ 278324

DIRECTORS

As on 30.09.2010

Name :

Mr. Ranvir Kumar Bindeshwari Singh

Designation :

Chairman cum Managing Director

Address :

434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

12.05.1965

Date of Appointment :

05.11.2004

DIN No.:

01725251

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	U85110MH2004PTC147730	Taj Institute of Medical Sciences Private Limited	Director	28-07-04	28-07-04	Active	YES
2	U24230MH2004PLC149424	Taj Pharmaceuticals Limited	Director	05-11-04	05-11-04	Under liquidation	NO
3	U92100MH2004PTC149607	Taj Films Private Limited	Director	19-11-04	19-11-04	Active	YES
4	U45200MH2005PLC157351	Taj Housing Architect Limited	Director	17-11-05	17-11-05	Active	YES
5	U85195MH2006PTC158543	Sankara Nethralaya Private Limited	Director	02-01-06	02-01-06	Active	YES
6	U51397MH2008PTC183754	Arcelor Laboratories Private Limited	Director	20-06-08	20-06-08	Active	YES
7	U74990MH2008PTC189025	Taj Life Sciences Private Limited	Director	18-12-08	18-12-08	Active	YES
8	U26940MH2009PTC189347	Arcelor Cement Private Limited	Director	05-01-09	05-01-09	Active	NO
9	U24110MH2009PTC189396	Arcelor Chemicals Private Limited	Director	06-01-09	06-01-09	Active	NO
10	U27100MH2009PTC189398	Arcelor Steel Private Limited	Director	06-01-09	06-01-09	Active	NO
11	U11101MH2009PLC190550	Arcelor Petroleum Limited	Director	24-02-09	24-02-09	Active	NO
12	U74120MH2010PTC210269	Apollo Life Sciences Private Limited	Director	23-11-10	23-11-10	Active	NO
13	U24233MH2010PTC211130	Mulberry Chemicals Private Limited	Director	20-12-10	20-12-10	Active	NO
14	U85100MH2011PTC215856	Humogen Serum Private Limited	Director	06-04-11	06-04-11	Active	NO
15	U74900MH2011PTC216132	Eklavya Healthcare Private Limited	Director	12-04-11	12-04-11	Active	NO
16	U33111MH2011PLC219226	Taj Pharma India Limited	Director	28-06-11	28-06-11	Active	NO
17	U24297MH2011PLC219480	Taj Active Pharmaceuticals Ingredients Limited	Director	06-07-11	06-07-11	Active	NO

Name :

Mr. Abhishek Ranvir Singh

Designation :

Managing Director

Address :

434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

11.12.1989

Date of Appointment :

10.03.2009

DIN No.:

02706332

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	U24110MH2009PTC189396	Arcelor Chemicals Private Limited	Director	28-01-09	28-01-09	-	Active	NO
2	U51397MH2008PTC183754	Arcelor Laboratories Private Limited	Director	28-01-09	28-01-09	01-07-11	Active	YES
3	U24230MH2004PLC149424	Taj Pharmaceuticals Limited	Director	10-03-09	10-03-09	-	Under liquidation	NO
4	U24233MH2010PTC211130	Mulberry Chemicals Private Limited	Managing director	01-04-11	01-04-11	-	Active	NO
5	U45200MH2005PLC157351	Taj Housing Architect Limited	Managing director	01-04-11	01-04-11	01-07-11	Active	YES
6	U92100MH2004PTC149607	Taj Films Private Limited	Managing director	01-04-11	01-04-11	01-07-11	Active	YES
7	U85100MH2011PTC215856	Humogen Serum Private Limited	Director	06-04-11	06-04-11	-	Active	NO
8	U74900MH2011PTC216132	Eklavya Healthcare Private Limited	Director	12-04-11	12-04-11	-	Active	NO
9	U33111MH2011PLC219226	Taj Pharma India Limited	Director	28-06-11	28-06-11	-	Active	NO
10	U24297MH2011PLC219480	Taj Active Pharmaceuticals Ingredients Limited	Director	06-07-11	06-07-11	-	Active	NO

Name :

Mrs. Sushma Singh

Designation :

Finance Director

Address :

434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

16.08.1966

Date of Appointment :

05.11.2004

DIN No.:

01725295

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	U85110MH2004PTC147730	Taj Institute of Medical Sciences Private Limited	Director	28-07-04	28-07-04	Active	YES
2	U24230MH2004PLC149424	Taj Pharmaceuticals Limited	Director	05-11-04	05-11-04	Under liquidation	NO
3	U92100MH2004PTC149607	Taj Films Private Limited	Director	19-11-04	19-11-04	Active	YES
4	U45200MH2005PLC157351	Taj Housing Architect Limited	Director	17-11-05	17-11-05	Active	YES
5	U85195MH2006PTC158543	Sankara Nethralaya Private Limited	Director	02-01-06	02-01-06	Active	YES
6	U51397MH2008PTC183754	Arcelor Laboratories Private Limited	Director	20-06-08	20-06-08	Active	YES
7	U26940MH2009PTC189347	Arcelor Cement Private Limited	Director	05-01-09	05-01-09	Active	NO
8	U24110MH2009PTC189396	Arcelor Chemicals Private Limited	Director	06-01-09	06-01-09	Active	NO
9	U27100MH2009PTC189398	Arcelor Steel Private Limited	Director	06-01-09	06-01-09	Active	NO
10	U11101MH2009PLC190550	Arcelor Petroleum Limited	Director	24-02-09	24-02-09	Active	NO
11	U74120MH2010PTC210269	Apollo Life Sciences Private Limited	Director	23-11-10	23-11-10	Active	NO
12	U24233MH2010PTC211130	Mulberry Chemicals Private Limited	Director	20-12-10	20-12-10	Active	NO
13	U85100MH2011PTC215856	Humogen Serum Private Limited	Director	06-04-11	06-04-11	Active	NO
14	U74900MH2011PTC216132	Eklavya Healthcare Private Limited	Director	12-04-11	12-04-11	Active	NO
15	U33111MH2011PLC219226	Taj Pharma India Limited	Director	28-06-11	28-06-11	Active	NO
16	U24297MH2011PLC219480	Taj Active Pharmaceuticals Ingredients Limited	Director	06-07-11	06-07-11	Active	NO

Name :

Ms. Priyanka Ranvir Singh

Designation :

Export Director

Address :

434, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

08.12.1988

Date of Appointment :

05.11.2004

DIN No.:

01913591

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	U45200MH2005PLC157351	Taj Housing Architect Limited	Director	17-11-05	17-11-05	Active	YES
2	U24230MH2004PLC149424	Taj Pharmaceuticals Limited	Director	15-01-07	15-01-07	Under liquidation	NO
3	U74990MH2008PTC189025	Taj Life Sciences Private Limited	Director	18-12-08	18-12-08	Active	YES
4	U51397MH2008PTC183754	Arcelor Laboratories Private Limited	Director	28-01-09	28-01-09	Active	YES
5	U24110MH2009PTC189396	Arcelor Chemicals Private Limited	Director	28-01-09	28-01-09	Active	NO
6	U11101MH2009PLC190550	Arcelor Petroleum Limited	Director	24-02-09	24-02-09	Active	NO
7	U92100MH2004PTC149607	Taj Films Private Limited	Director	01-04-11	01-04-11	Active	YES
8	U24233MH2010PTC211130	Mulberry Chemicals Private Limited	Director	01-04-11	01-04-11	Active	NO
9	U85100MH2011PTC215856	Humogen Serum Private Limited	Director	06-04-11	06-04-11	Active	NO
10	U74900MH2011PTC216132	Eklavya Healthcare Private Limited	Director	12-04-11	12-04-11	Active	NO
11	U33111MH2011PLC219226	Taj Pharma India Limited	Director	28-06-11	28-06-11	Active	NO
12	U24297MH2011PLC219480	Taj Active Pharmaceuticals Ingredients Limited	Director	06-07-11	06-07-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Amit
Designation :	Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ranvir Singh	105000
Sushma Singh	262500
Priyanka Singh	260400
Abhishek Singh	420000
Bindeshwari Singh	525
Ashwani Singh	525
Pushpa Devi	525
Reena Singh	525
Total	1050000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.80
Others	0.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Pharmaceutical Products.
	v Bulk Drugs (API) v Atorvastatin Calcium v Caffeine v Clopidogrel Bisulfate v Clomipramine HCL v Losartan Potassium v Metformin Hcl v Nandrolone Decanoate v Pantoprazole Sodium v Quinine Sulfate v Ramipril v Ranitidine Hydrochloride v Sertraline Hcl v Sevelamer Hydrochloride v Sodium Valproate v Testosterone v Theophylline v Valsartan v Chemicals v Benzyl Chloride v Ethanol v Modafinil v Para Methoxy Phenyl Acetone v Toluene
Exports :
Products :	Pharmaceutical Products
Countries :	v Egypt v Germany v Iran
Imports :
Products :	Raw Materials
Countries :	v China v Korea
Terms :
Selling :	L/C, Cash and Credit (30/ 60 days)
Purchasing :	L/C, Cash and Credit (30/ 60 days)

GENERAL INFORMATION

Customers :	Wholesalers and OEM’s v Johnson and Johnson v Glaxo Smith Kline v Novartis v Astra Zeneca v Bayer Health Care v Eli Lilly v Teva Pharmaceutical Industries v Mitsui Chemicals, Tokyo, Japan v Mitsubishi Chemical, Tokyo, Japan v Cadila Healthcare v Barr Pharmaceuticals
No. of Employees :	Approximately 400 (In Office – 25, In Factory – 375)
Bankers :	v Deutsche Bank, Nariman Point Branch v ICICI Bank

Banking Relations :	--
Auditors :
Name :	Narendra Anil and Associates Chartered Accountants
Address :	105-A, Vertex Vikas Building, M.V. Road, Opposite Railway Station, Andheri (West), Mumbai – 400 069, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABFN5390F
Memberships :	v Manufacturers Association, Gujarat v Manufacturers Association, Mumbai v Federation of Indian Chambers of Commerce and Industry v Pharmaceuticals Export Promotion Council v Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council v All-India Manufacturers Association v Indian Merchants' Chamber v Agricultural and Processed Food Product Export Development Authority (APEDA)
Associates/Subsidiaries :	v Taj Agro Products Limited v Taj Housing and Architect Limited v Taj Films Private Limited v Taj Lifesciences Private Limited, Silvassa, Gujarat v Taj Institute and Medical Science Private Limited

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1050000	Equity Shares	Rs.10/- each	Rs.10.500 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		10.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.113	11.135	4.827
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.613	11.635	5.327
LOAN FUNDS
1] Secured Loans		0.685	1.890	0.139
2] Unsecured Loans		0.109	0.844	0.258
TOTAL BORROWING		0.794	2.734	0.397
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		24.407	14.369	5.724
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.050	10.269	1.866
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.012	0.012	0.012
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.746	1.546	6.068
	Sundry Debtors	21.942	23.839	3.814
	Cash & Bank Balances	3.480	15.453	0.067
	Other Current Assets	0.793	0.780	0.370
	Loans & Advances	1.066	1.315	0.420
Total Current Assets		28.027	42.933	10.739
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.112	38.421	6.610
	Other Current Liabilities			0.881
	Provisions	1.785	1.774	0.902
Total Current Liabilities		14.897	40.195	8.393
Net Current Assets		13.130	2.738	2.346
MISCELLANEOUS EXPENSES		1.215	1.350	1.500
TOTAL		24.407	14.369	5.724

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	67.493	219.968	51.216
		Other Income	2.358	3.066	2.678
		TOTAL (A)	69.851	223.034	53.894
Less	EXPENSES
		Cost of Materials Sold	46.346	165.352	31.661
		Manufacturing Expenses	4.689	16.136	4.723
		Administration, Selling and Distribution Expenses	15.522	29.636	11.728
		Director Remuneration	0.469	2.503	0.455
		Preliminary Expenses W/o	0.003	0.003	0.003
		TOTAL (B)	67.029	213.630	48.570
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.822	9.404	5.324
Less	FINANCIAL EXPENSES (D)		0.172	0.122	0.111
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.650	9.282	5.213
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.494	0.600	0.217
	PROFIT BEFORE TAX (E-F) (G)		2.156	8.682	4.996
Less	TAX (H)		0.178	2.374	0.748
	PROFIT AFTER TAX (G-H) (I)		1.978	6.308	4.248
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.135	4.827	0.579
	BALANCE CARRIED TO THE B/S		13.113	11.135	4.827
	Earnings Per Share (Rs.)		1.88	141.64	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	73.300

Expected Sales (2011-2012): More than Rs.100.000 millions

The above information has been parted by Mr. Amit (Assistant Manager).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.83	2.83	7.88
Net Profit Margin (PBT/Sales)	(%)	3.19	3.95	9.75
Return on Total Assets (PBT/Total Assets}	(%)	5.66	16.32	39.64
Return on Investment (ROI) (PBT/Networth)		0.09	0.75	0.94
Debt Equity Ratio (Total Liability/Networth)		0.66	3.69	1.65
Current Ratio (Current Asset/Current Liability)		1.88	1.07	1.28

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FIXED ASSETS:

v Computer

v Electrical Fitting

v EPBX System

v Furniture and Fixtures

v Motor Car (Indigo)

v Motor Car (Sonata)

v Office Equipment

v Trade Mark Exp

v Leasehold Land (Agricultural)

WEBSITE DETAILS:

HISTORY:

The founder of Subject, Dr. R. K. Singh, is a pioneering entrepreneur who is convinced that the future belonged to branded pharmaceutical products. He is among the first to recognise that the industrial manufacture of standardised medicines would be a major advance in the fight against disease.

This led him to found subject in India and Abroad. From the very beginning, Dr. R. K. Singh attached great importance to product information as the link between the pharmaceutical manufacturer and doctors, pharmacists and patients. Shortly after the foundation of the company, affiliates were opened in Mauritius, Malaysia, Dubai, Moscow, England, France, the US, Great Britain and Russia.

Since then, Subject has grown into one of the world's leading healthcare companies and one of the most important India.

THE BEGINNINGS 

With a basket including personal care, health care and other products, TAJ GROUP has set up Group Companies across the world that can manage its businesses more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to leading group companies that conduct their operations independently.

The company clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine. This included referring to ancient ayurvedic texts, selecting indigenous herbs and subjecting the formulations to modern pharmacological, toxicological and safety tests to create new drugs and therapies. They export API, branded formulations and generic formulations to over 14 countries. The inherent strength lies in identifying relevant API and formulations, and selling them at affordable prices across the world. All this has been possible because of the innovative and sustained marketing efforts. They are all set to spread the wings further and touch more lives across the globe.

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.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.