MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED
Registered Office :	Laxmi Bhavan, Lakkadpitha Road, Vadodara – 390 001, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1996
Com. Reg. No.:	04-29894
Capital Investment / Paid-up Capital :	Rs. 34.051 Millions
CIN No.: [Company Identification No.]	U24232GJ1996PTC029894
TAN No.: [Tax Deduction & Collection Account No.]	BRDT00509F
PAN No.: [Permanent Account No.]	AABCT0623N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Phase Transfer Catalysts and Organic Quaternary Ammonium Compounds.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 250000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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

INFORMATION PARTED BY

Name :	Mr. Chintan Nitinkumar Shah
Designation :	Director
Contact No.:	91-9825153445

LOCATIONS

Registered Office :	Laxmi Bhavan, Lakkadpitha Road, Vadodara – 390 001, Gujarat, India
Tel. No.:	91-265-2437093
Mobile No.:	91-9974249904 (Mr. Chetan Sheth), 91-9825445675 (Mr. Shekhar R Somani )
Fax No.:	91-265-2424495
E-Mail :	ajay@tatvachintan.com info@tatvachintan.com
Website :	www.tatvachintan.com
Area :	1000 Sq. ft.
Location :	Owned
Factory :	502/17, G.I.D.C Estate, Ankleshwar – 393 002, Gujarat, India
Tel. No.:	91-2646-253593 / 238991
Fax No.:	91-2646-238992
E-Mail :	chintan@tatvachintan.com shekhar@tatvachintan.com info@tatvachintan.com
Area :	3000 Sq. ft.
Location :	Owned

DIRECTORS

As on 19.09.2011

Name :

Mr. Chintan Nitinkumar Shah

Designation :

Director

Address :

11-12, Sudhan Laxmi Jain Society, Subhanpura, Baroda – 390 023, Gujarat, India

Date of Birth/Age :

29.04.1973

Qualification :

B.E. (Computer Science)

Date of Appointment :

12.06.1996

DIN No.:

00183618

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	U24232GJ1996PTC029894	Tatva Chintan Pharma Chem Private Limited	Director	12-06-96	12-06-96	-	Active	NO
2	U24231GJ2003PTC042991	Catalyst Organics Private Limited	Director	01-10-03	01-10-03	-	Under Process of Striking off	NO

Name :

Mr. Ajaykumar Mansukhlal Patel

Designation :

Director

Address :

9-645 Wadi Falia, Siddhmatani Sheri, Surat – 395 003, Gujarat, India

Date of Birth/Age :

27.02.1972

Qualification :

B.E. (Chemical)

Date of Appointment :

12.06.1996

DIN No.:

00183745

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	U24232GJ1996PTC029894	Tatva Chintan Pharma Chem Private Limited	Director	12-06-96	12-06-96	-	Active	NO
2	U24231GJ2003PTC042991	Catalyst Organics Private Limited	Director	01-10-03	01-10-03	-	Under Process of Striking off	NO

Name :

Mr. Shekhar Rasiklal Somani

Designation :

Director

Address :

Mahavir Society, 51-52, 202 Mahavir Apartment, Zaveri Sadak, Navasari – 396 445, Gujarat, India

Date of Birth/Age :

11.01.1974

Qualification :

(B. Pharma) Young Entrepreneurs

Date of Appointment :

12.06.1996

DIN No.:

00183665

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	U24232GJ1996PTC029894	Tatva Chintan Pharma Chem Private Limited	Director	12-06-96	12-06-96	-	Active	NO
2	U24231GJ2003PTC042991	Catalyst Organics Private Limited	Director	01-10-03	01-10-03	-	Under Process of Striking off	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
Chintan Shah	873200
Ajay Patel	785200
Shekhar Somani	891680
Rasiklal Somani	99660
Dashnaben Shah	147400
Priti Patel	257400
Kajal Somani	62260
Shital Shah	92400
Raxaben Patel	92000
Ranjanben Somani	52800
Sheetal Somani	4400
Samir Somani	24200
Chintan N Shah (HUF)	22000
Pravin Candra and Company, Mumbai	100
Dharmesh Patel	100
Mansukhlal Patel	100
Dharmesh Patel HUF	100
Mansukhlal Patel HUF	100
TOTAL	3405100

Equity Share Break up (Percentage of Total Equity)

As on 19.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Phase Transfer Catalysts and Organic Quaternary Ammonium Compounds.

Products :

Product Description	ITC Code
Quarternary Compounds	292390.00

· Phase Transfer Catalysts

· Glycol Diethers

· Ionic Liquids

· Ester Acetates

· Bulk APls

PRODUCTION STATUS

As on 31.03.2011

Installed Capacity: 1500 MTPA

Particulars	Unit	Actual Production
Quaternary Compounds	MT	844.350
Glymes	MT	2.140
Bulk Drugs	MT	123.204
Specialty Chemicals	MT	1.879
Recovered Mix Solvent	mT	22.800

GENERAL INFORMATION

No. of Employees :

120 (Approximately)

Bankers :

Bank of Baroda, Industrial Estate Branch, GIDC, Ankleshwar – 393 002, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Bank of Baroda, Ankelshwar
Cash Credit Account	48.989	53.447
Term Loan III	0.895	3.405
Term Loan IV	4.821	6.498
Term Loan V	14.150	17.655
Demand Loan	0.000	0.510
Export Foreign Bill Purchase	3.827	4.287
Local Bill Purchase	0.752	2.208
Export Packing Credit	12.405	13.500
Packing Credit Foreign Currency	0.000	3.586
Foreign Currency Bill Purchase (Term Loan is secured against equitable mortgage of immovable properties and hypothecation of other fixed assets and cash credit is secured against hypothecation assets and cash credit is secured against hypothecation of current assets and personal guarantee of all directors)	0.000	1.718
Motor Car Loan - I	0.248	0.304
Motor Car Loan - II	0.248	0.304
Motor Car Loan – III (Secured against hypothecation of Motor Car Purchased and personal guarantee of all directors)	0.248	0.304
Total	86.583	107.726
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Deposits from Director	4.528	3.586
Deposits from Shareholders	17.165	10.149
Total	21.693	13.735

Banking Relations :	--
Auditors :
Name :	Pathak Anjaria and Company Chartered Accountants (Mr. Premal J Pathak, Partner, M. No. 42634)
Address :	2^nd Floor, Leela Sadan, Vadodara – 390 001, Gujarat, India
Tel. No.:	91-265-6538755
Mobile No.:	91-9824016006
Fax No.:	91-265-2420455
E-Mail :	pathakanjariaco@yahoo.com
PAN.:	AACFP0709R
Memberships :	Chemicals and Allied Products Export Promotion Council (CHEMEXCIL)
Sister Concern :	Tatva Chintan Laboratories Address: 502/17, GIDC, Ankleshwar – 393 002, Gujarat, India. Year of Establishment : 1992 Activity : Manufacturers Sodium Citrate, Potassium Citrate, Sodium Acid, Citrate, Methyl Parabens, Propyl Paruben, Sodium Methyl Paraben, Sodium Propyl Paraben, etc.

CAPITAL STRUCTURE

As on 19.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3405100	Equity Shares (out of which 2119800 equity shares of Rs. 10 each are allotted as fully paid up bonus shares by way of capitalization of accumulated profits)	Rs.10/- each	Rs. 34.054 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		34.051	32.319	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.199	15.706	9.395
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.250	48.025	39.395
LOAN FUNDS
1] Secured Loans		86.583	107.726	60.303
2] Unsecured Loans		21.693	13.735	7.541
TOTAL BORROWING		108.276	121.461	67.844
DEFERRED TAX LIABILITIES		7.468	5.893	4.075
TOTAL		176.995	175.379	111.314
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.502	88.202	47.819
Capital work-in-progress		0.250	0.000	1.364
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	65.270	58.784	35.277
	Sundry Debtors	44.205	55.048	57.363
	Cash & Bank Balances	6.239	12.517	7.341
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.817	22.226	12.124
Total Current Assets		137.531	148.575	112.105
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.177	57.006	47.498
	Other Current Liabilities	5.153	2.751	0.899
	Provisions	0.114	1.865	1.768
Total Current Liabilities		50.444	61.622	50.165
Net Current Assets		87.087	86.953	61.940
MISCELLANEOUS EXPENSES		0.155	0.224	0.192
TOTAL		176.995	175.379	111.313

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	298.971	280.790	239.379
		Other Income	5.532	2.007	2.443
		TOTAL (A)	304.503	282.797	241.822
Less	EXPENSES
		Raw Material Consumed			147.058
		Other Manufacturing Expenses			22.190
		Remuneration to Personal			12.998
		Excise Duty			20.437
		Selling and Administrative Expenses			12.630
		Loss of Fixed Assets			0.994
		Increased/(Decreased) in Stock			1.633
		TOTAL (B)	276.607	255.927	217.940
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.896	26.870	23.882
Less	FINANCIAL EXPENSES (D)		10.361	10.309	5.978
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.535	16.561	17.904
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.932	3.848	2.059
	PROFIT BEFORE TAX (E-F) (G)		12.603	12.713	15.845
Less	TAX (H)		4.324	3.867	5.479
	PROFIT AFTER TAX (G-H) (I)		8.279	8.846	10.366
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.706	9.395	17.019
Add	PRIOR PERIOD ADJUSTMENTS		0.036	(0.669)	(0.036)
Less	APPROPRIATIONS
		Dividend	(1.616)	1.616	1.500
		Income Tax on Dividend	(0.250)	0.250	0.254
		Bonus Shares	0.000	0.000	16.200
	BALANCE CARRIED TO THE B/S		25.887	15.706	9.395
	EARNINGS IN FOREIGN CURRENCY
		Export of Good Calculated at FOB Basis	89.245	70.643	54.334
	TOTAL EARNINGS		89.245	70.643	54.334
	IMPORTS
		Raw Materials	58.687	53.325	50.801
	TOTAL IMPORTS		58.687	53.325	50.801
	Earnings Per Share (Rs.)		2.43	2.74	3.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.72	3.13	4.29
Net Profit Margin (PBT/Sales)	(%)	4.22	4.52	6.62
Return on Total Assets (PBT/Total Assets}	(%)	5.55	5.37	9.82
Return on Investment (ROI) (PBT/Networth)		0.21	0.28	0.40
Debt Equity Ratio (Total Liability/Networth)		2.59	3.98	2.99
Current Ratio (Current Asset/Current Liability)		2.73	2.41	2.23

LOCAL AGENCY FURTHER INFORMATION

Capital

Board of director allotted 173200 equity shres of Rs. 10 each for cash at par making total issue subscribed and paid up capital of 3405100 equity shares of Rs. 10 each fully paid up amounting to Rs. 34.051 millions.

KEY HIGHLIGHT

1. Turnover of the Company has increased marginally from Rs. 280.789 millions last year to Rs. 298.971 millions by 6.47 % despite operational period of little less than 11 months during the year.
2. Raw Material Consumption ratio has reduced from 63.97 % last year to 60.81 % during current year Operating Profits has increased from Rs. 27.069 millions to Rs 26.114 millions.
3. Despite reduced operating period and increased cost of depreciation, the directors succeeded in maintaining Profit before tax at Rs. 12.603 millions against previous year’s Rs. 12.713 millions
4. THe Company has achieved Cumulative Annual Rate of Growth (CARG) of 23.2 % during the period from F. Y. 2005-06 to F. V. 2010-11 against negative national Growth Rate of Organic industry of (—) 4.6 %. (Source Annual Report 2009-10 of Department of Chemicals arid Petrochemicals, Ministry of India)

OUTLOOK

The Company continued to focus on increasing its research capabilities and product development speed. In line with this priority, we are Investing In increasing the strength of Research and Development personnel as well as investment of additional equipments.

This investment will take their business ahead in the following ways help them develop value-added products based on emerging customer requirements, accelerate product commercialization, reinforce their presence in contract research and manufacture and address the robust growth coming from key user segment of life sciences.

With their pilot and multi-purpose plants in place, they now posses the methodology to scale output from the nominal to the large, quicker than most of their competitors. Consequently, their chemical business is multi-step, multi-product and multi-purpose in character.

For the last few years, our goal was to position ourselves as a sustainable growing Company. They have done so through a consistent investment in knowledge and capacity, enabling us to capitalize on industry opportunities. The time has come to demonstrate our capability in exploiting these opportunities.

FORM 8

Corporate identity number of the company	U24232GJ1996PTC029894
Name of the company	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Laxmi Bhavanlakkadpitha Road, Vadodara – 390001, Gujarat, India Email : info@tatvachintan.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90108123
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, Industrial Estate Branch, GIDC, Ankleshwar – 393002, Gujarat, India Email: indank@bankofbaroda.com
Nature of instrument creating charge	Supplemental Memorandum of Entry.
Date of instrument Creating the charge	04.08.2011
Amount secured by the charge	Rs. 124.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Term Loan and demand Loan Interest 4.25% p.a. with monthly rests. Cash Credit 4.25% p.a. above base rate with monthly rests. Packing Credit limit 1.25% p.a. above base rate with monthly rests Terms of Repayment: Repayable on Demand Margin: 25% on Stocks & 40% on book-debts Inland/Import Letter of Credit : Cash Margin 25% 10% Margin on FOB value of Export Order on PC 10% on Foreign Bills to be Purchased/Discounted Extent and Operation of charge: First charge on the immoveable assets of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All piece and parcel of Non Agriculture Land and building and structures bearing Plot No.502/8 bearing Revenue survey No. 271/p within the village limit of Piraman Tal. Ankleshwar Dist. Bharuch. All piece and parcel of Non Agriculture Land and building and structures bearing Plot No.502/17 bearing Revenue survey No. 271/p within the village limit of Piraman Tal. Ankleshwar Dist. Bharuch. All piece and parcel of Non Agriculture Land and building and structures bearing Plot No.502/18 bearing Revenue survey No. 271/p within the village limit of Piraman Tal. Ankleshwar Dist. Bharuch.
Date of instrument modifying the charge	12.06.2009
Particulars of the present modification	The existing charge of Rs. 115.413 millions has been enhanced to Rs. 124.300 millions to cover additional finance facilities of Rs. 8.887 millions The break up of Rs. 124.300 millions is Term Loan III of Rs. 1.000 millions, Term Loan IV of Rs. 4.300 millions, Term Loan V of Rs. 13.000 millions, Term Loan VI of Rs. 10.000 millions, Cash Credit of Rs. 70.000 millions, Inland letter of Credit of Rs. 25.000 millions, Bank Guarantee of Rs. 1.000 millions

Fixed Assets

· Leasehold Land

· Factory Building

· Labour Quarters

· Administration Building

· Plant and Machinery

· Gas Cylinders

· Electrical Installations

· Effluent Treat Plant

· Two Wheelers

· Furniture and Fixtures

· Computer

· R and D Equipment

· Motor Car

· Office Equipments

· R and D Building

Web Details

Company Profile

Subject is an integrated growing specialty chemical and pharmaceutical company, promoted by three young and technocrats friends, founded in 1996 with the purpose of serving the community and aiming to become one of the fastest growing specialty chemical and pharmaceutical company in India.

Strong business relationships, commitment to outstanding quality and service make subject a preferred partner for its customers.

The company’s success is based on the expertise of its people, their ability to identify new customer needs at an early stage, and an enthusiasm to work together with customers to develop creative, efficient solutions

Company Philosophy

They believe the first responsibility is to the customers who use the products and services. In meeting their needs everything they do must be of high quality. They must constantly strive to reduce the costs in order to maintain reasonable prices. Customer orders must be serviced promptly and accurately. The suppliers and distributors must have an opportunity to make a fair profit.

They are responsible to the employees, the men and women who work with them throughout the world. Everyone must be considered as an individual. They must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. They must be mindful of ways to help the employees fulfill heir family responsibilities. Employees must fee! free to make suggestions and complaints, There must be equal opportunity for employment, development and advancement for those qualified. They must provide competent management, and their actions must be just and ethical.

They are responsible to the communities in which they live and work and to the world community as well. They must be good citizens - support good works and charities and bear the fair share of taxes. They must encourage civil improvements and better health and education. They must maintain in good order the property they are privileged to use, protecting the environment and natural resources. 

Chemical Inventor

In order to become a “CHEMICAL INVENTOR” that expands operations on a global scale, Subject has pursued the unlimited potential of chemistry and continued to raise challenges since its inception.

Subject is characterized by a flexible and advanced production system and fast, reliable deliveries. There is a strong emphasis on quality assurance to meet customers' demands for products of a uniform quality.

Subject is working on research and development based on the superior knowledge and advanced technical capabilities adapted to diverse market needs. Further they are creating new values in chemistry with drive and passion, in consideration of the global environment.

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.68.81

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	Yes
--AFFILIATION	YES/NO	No
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		49

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.