MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	RUBY MACONS LIMITED
Registered Office :	A – 203/204, Angelina Apartments, Rojini Road, Vile Parle (West), Mumbai – 400056, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1986
Com. Reg. No.:	11-039768
Paid-up Capital :	Rs.33.318 Millions
CIN No.: [Company Identification No.]	U28920MH1986PTC039768
TAN No.: [Tax Deduction & Collection Account No.]	SRTR01608F MUMR14446F
PAN No.: [Permanent Account No.]	AAACR1939A AABCR0343K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Paper and Paper Boards.
No. of Employees :	500 (approximately) (In Office + In Factory)

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 5000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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.

INFORMATION PARTED BY

Name :	Mr. Jitendra N. Desai
Designation :	Accountant
Contact No.:	91-260-3050000
Date :	28.12.2011

LOCATIONS

Registered Office :	A – 203/204, Angelina Apartments, Rojini Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India.
Tel. No.:	91-22-26186771/ 72
Fax No.:	91-22-26186773/ 74
E-Mail :	jitu@rubymacons.com bombay@rubymacons.com rml@rubymacons.com vapi.macons@axcess.net.in macons@nathani.com mail@rubymacons.com
Website :	www.rubymacons.com
Area:	1500 Sq. Ft.
Location :	Owned
Factory 1 :	Plot No. 789/4, III Phase Road, GIDC, Vapi – 396195, Gujarat, India
Tel. No.:	91-260-3050000
Fax No.:	91-260-3050010
E-Mail :	mail@rubymacons.com
Area :	17500 Sq. Mtr.
Location :	Owned
Factory 2 :	206/6/3, Amrut Industrial Estate, Opposite Dadra Check Post, U.T. Of Dadra and Nagar Haveli
Area :	6000 Sq. Mtr.
Location :	Owned
Factory 3 :	Survey No. 56/1, Village Morai, Via Vapi, Vapi -396 191, Dist. Valsad, Gujarat, India
Area :	26 Acres
Location :	Owned
Branches :	Located at Vapi (2) Dadra (1) Morai (1)

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Alibhai Hasanbhai Nathani
Designation :	Whole Time Director
Address :	Atul Society, Valsad Road,Vapi, Valsad – 396 191, Gujarat, India.
Date of Birth/Age :	29.08.1944
Qualification :	Paper Tech Degree
Date of Appointment :	16.08.2006
DIN No.:	00307266

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	U28920MH1986PLC039768	Ruby Macons Limited	Whole-time director	5.07.2011	16.08.2006	-	Active	NO

Name :	Mr. Ashraf Alibhai Nathani
Designation :	Managing Director
Address :	Atul Society, Valsad Road,Vapi, Valsad – 396 191, Gujarat, India.
Date of Birth/Age :	23.05.1971
Qualification :	Mechanical Engineer
Date of Appointment :	16.08.2006
DIN No.:	00307527

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	U28920MH1986PLC039768	Ruby Macons Limited	Managing director	5.07.2011	16.08.2006	-	Active	NO

Name :	Mr. Arshad Alibhai Nathani
Designation :	Whole Time Director
Address :	Atul Society, Valsad Road,Vapi, Valsad – 396 191, Gujarat, India.
Date of Birth/Age :	17.01.1980
Qualification :	Software Engineer
Date of Appointment :	16.08.2006
DIN No.:	00307430

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	U28920MH1986PLC039768	Ruby Macons Limited	Whole-time director	5.07.2011	16.08.2006	-	Active	NO

Name :	Mr. Harshad Ghelabhai Vashi
Designation :	Whole Time Director
Address :	C-302, Rahul Apartment, Sky Build, Village Borsapada Road, Poisar, Kandivali (West), Mumbai – 400067, Maharashtra, India.
Date of Birth/Age :	01.12.1958
Qualification :	B.Com
Date of Appointment :	16.08.2006
DIN No.:	00501097

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	U28920MH1986PLC039768	Ruby Macons Limited	Whole-time director	5.07.2011	16.08.2006	-	Active	NO

Name :	Mr. Mahendinawaz Kaisar Kureshi
Designation :	Whole Time Director
Address :	B-Wing, Flat No – 303/304, Bh-Aazad Weigh Bridge, Vapi - 396191, Valsad, Gujarat, India
Date of Birth/Age :	05.01.1968
Qualification :	Engineer
Date of Appointment :	16.08.2006
DIN No.:	00502404

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	U28920MH1986PLC039768	Ruby Macons Limited	Whole-time director	5.07.2011	16.08.2006	-	Active	NO

Name :	Mr. Ketan Chimanlal Damani
Designation :	Director
Address :	C-2/178, Karmakshetra Com. Harbansal Marg, Sion Koliwada, Mumbai – 400037, Maharashtra, India
Date of Birth/Age :	23.06.1960
Qualification :	CA
Date of Appointment :	16.09.2006
DIN No.:	00502665

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	U28920MH1986PLC039768	Ruby Macons Limited	Director	16.09.2006	16.08.2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Jitendra N. Desai
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 AS ON 30.09.2011

Names of Shareholders	No. of Shares
Alibhai H. Nathani	165000
Mehfuza A. Nathani	795000
Ashraf A. Nathani	766200
Arshad A. Nathani	765300
Padmini Damji Savla	50
Hirji J. Chheda	75
Laxmichand J. Chheda	75
Jayant J. Chheda	75
Mehfuza A. Nathani	75000
Rizwana A. Nathani	382500
Firdaus A. Nathani	382500
Total	3331775

AS ON 10.08.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Paper and Paper Boards.

Products :

Products	ITC Code No.
Uncoated Paper and Paper Board	4805
Parts of Pulp and Paper making machinery	8439.90

Exports :

Products :

• Paper
• Paper Boards

Countries :

• Egypt
• China

Imports :

Products :

Waste Paper

Countries :

• US
• Gulf Countries

Terms :

Selling :

Depends

Purchasing :

Depends

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Unocated Paper and Paper Board	MT	174000	174000	121430
Pulp and Paper Making Machinery	Nos.	3000	NA	672
Newsprint	MT	15500	15500	NA

Note : The Company has capitalised or consumed 125 (Previous Year 412) units during the year.

* The Dadra unit is presently engaged in the manufacturing of pulp and paper making machinery. It is not practical to give installed capacity of such engineering units as it depends on the type and quality of item manufactured.

The licensed capacity of the Furnace oil power plant as per the consent received form the Gujarat Electricity Regulatory Commission vide letter GERC/GSC-2003/No.1226 dated 01.11.2003 is 1,692 KW (Previous Year 1,692 KW) which is equivalent to 134 Lakhs units.

GENERAL INFORMATION

Customers :

Manufacturers

No. of Employees :

500 (approximately) (In Office + In Factory)

Bankers :

• State Bank of India, Specialised Commercial Branch Vapi, Vapi – 396 195, Gujarat, India

• ICICI Bank, Mumbai, Maharashtra, Indias
• Bank of Baroda
• State Bank of India – MID Corporate Branch, Vapi – 396195, Gujarat, India
• CITI Bank, Vapi, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loan {Repayable within a year Rs.70.000 Millions (Previous Year Rs.52.965 Millions)}	182.431	336.876
Working Capital Loan	180.351	216.652
Total	362.782	553.528
1(a) Secured by equitable mortgage of Company's immovable properties situated at Plot No.789/Industrial Estate, Village Chhiri, Taluka Pardi, Dist Valsad, and Survey No 56/1 Village Morai, Taluka Dist Valsad both situated in the State of Gujarat with all buildings and structures thereon and all Machinery attached to the earth or fastened to the earth in favour of State Bank of India, Specialized commercial Branch, Vapi and personal guarantee of directors. 1(b) Secured by first charge over all the goods, book debts and other current assets of the Company way of hypothecation in favour of State Bank of India, Specialized commercial Branch, Vapi.
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Buyers Credit {Repayable within a year Rs.37.364 Millions (Previous Year Rs.Nil)}	124.751	37.364
Total	124.751	37.364

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered accountants
Address :	Heritage, 3^rd Floor, Near Gujarat Vidhyapith, Off Ashram Road, Ahmadabad – 380014, Gujarat, India
Tel. No.:	91-79-27582542
Fax No.:	91-79-27582551
Pan No.:	AABFD7919A

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- Each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3331775	Equity Shares	Rs.10/- Each	Rs.33.318 Millions

Note:

Of the 33,31,775 Ordinary shares

a) 250,000 shares represents after sub division of 25,000 shares(Including 12,000 shares issued as fully paid up bonus shares in the ratio of 1:1 by capitalisation of the General reserves during the year 1989-90) of the face value of Rs.100 each converted into the face value of Rs.10 each fully paid up during the year 1994-1995.

b) 30,50,000 shares of face value of Rs.10 per shares were issued as fully paid bonus shares by utilization of revaluation reserves during the year 1994-1995 and 1995-1996.

c) In the year 2001-2002 the Company bought back and extinguished 1,18,225 equity shares.

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		33.318	33.318	33.318
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1208.638	923.067	700.824
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1241.956	956.385	734.142
LOAN FUNDS
1] Secured Loans		362.782	553.528	419.295
2] Unsecured Loans		124.751	37.364	0.000
TOTAL BORROWING		487.533	590.892	419.295
DEFERRED TAX LIABILITIES		278.904	230.418	200.425
TOTAL		2008.393	1777.695	1353.862
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1183.708	990.063	789.317
Capital work-in-progress		48.145	219.885	26.295
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	297.732	296.464	282.157
	Sundry Debtors	498.475	332.991	311.145
	Cash & Bank Balances	14.550	28.881	23.799
	Other Current Assets	39.973	5.000	0.000
	Loans & Advances	107.652	120.164	158.688
Total Current Assets		958.382	783.500	775.789
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	139.071	164.204	161.511
	Others Current Liabilities	40.660	49.429	71.300
	Provisions	2.111	2.119	4.728
Total Current Liabilities		181.842	215.752	237.539
Net Current Assets		776.540	567.748	538.250
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2008.393	1777.696	1353.862

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3718.013	2781.745	2588.978
		Other Income	27.719	2.643	2.654
		TOTAL (A)	3745.732	2784.388	2591.632
Less	EXPENSES
		Materials Consumed	2416.293	1692.576
		Manufacturing and Operating Expenses	561.298	458.373
		Employee Related Cost	109.185	89.150
		Administrative Selling Other Expenses	149.771	131.216
		TOTAL (B)	3236.547	2371.315	2323.576
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		509.185	413.073	268.056
Less	FINANCIAL EXPENSES (D)		48.005	22.570	36.816
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		461.180	390.503	231.240
Less/ Add	DEPRECIATION/ AMORTISATION (F)		83.908	60.537	54.884
	PROFIT BEFORE TAX (E-F) (G)		377.272	329.966	176.356
Less	TAX (I)		89.765	105.780	55.417
	PROFIT AFTER TAX (G-I) (J)		287.507	224.186	120.939
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		322.908	170.664	102.174
Less	APPROPRIATIONS
		Proposed Dividend		1.666	1.666
		Proposed Dividend Distribution Tax	101.936	0.277	0.283
		Transfer to General Reserve		70.000	50.500
	BALANCE CARRIED TO THE B/S		508.479	322.908	170.664
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	51.027	26.581	58.158
	TOTAL EARNINGS		51.027	26.581	58.158
	IMPORTS
		Raw Materials	NA	738.098	813.866
		Stores & Spares	NA	10.841	12.709
		Capital Goods	NA	130.057	5.290
	TOTAL IMPORTS		NA	878.996	831.865
	Earnings Per Share (Rs.)		86.29	67.29	36.30

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.68	8.05	4.67
Net Profit Margin (PBT/Sales)	(%)	10.15	11.86	6.81
Return on Total Assets (PBT/Total Assets}	(%)	17.61	18.60	11.27
Return on Investment (ROI) (PBT/Networth)		0.30	0.35	0.24
Debt Equity Ratio (Total Liability/Networth)		0.54	0.87	0.89
Current Ratio (Current Asset/Current Liability)		5.27	3.63	3.27

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- Due for Small Micro Enterprises	0.053	0.788	0.033
- Due for others	139.018	163.416	161.478
Total	139.071	164.204	161.511

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	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
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	--

PERFORMANCE REVIEW

FY2010-11 has been a year in which they truly began to see the fruits of their strategy towards sustained profitability. For us the year has been about strengthening their foundation further by continuing to focus on doing more of what they were doing before-directing their core competencies of innovation, engineering and manufacturing towards delighting their customers and winding their operational efficiencies further across the board.

During the year, the Company has achieved an aggregate Turnover of Rs.3710.000 Millions registering an increase of 33 % over the previous year. Operating Profit before Interest, tax and Depreciation has increased to Rs.510.000 Millions from previous years Rs.410.000 Millions, registering an increase of 22 %. The Production of Uncoated Paper and Paper Board during the year is 141,680 M.T. as compared to 121,430 M.T. during the previous year, registering an increase of 17%.

During the year the market was very uncertain the price of finished goods as well as input cost was substantially increased due to inflation and global recession which adversely impacted most of the developing economies. As a result of adoption of modern technology, cost saving parameters as well as captive power plant and concentrated on quality products with low cost inputs, company was able to achieve production growth of 17% and operating profit growth of 32%. .

MACHINERY SEGMENT:

Due to recession and high inflation rate the pressure on company’s machinery sale, company has concentrated on high margin product with modern technology as a result of it machinery segments revenue has fallen but the profit has been increased substantially. Company further looks forward for high technological product and equipment to be supplied.

POWER GENERATION:

The company has generated 394.48 lacs units (KWH) of power during the year against 202.14 lacs (KWH) in the previous year for captive consumption. The company’s main objective is to operate a modern, cost-effective, energy efficient and environment friendly production plant. The management is committed towards Conservation of Energy.

FUTURE OUTLOOK:

Company has adopted modern technology cost saving measures during last few years as a result of which the quality of paper and service to the customer has been improved substantially. Customers are regularly demanding for more and more quantity to fulfill the requirement of market, the company has decided to install fourth paper machine which was already landed at their morai site. The 4th machine is likely to be start during March 2012.

Given that the rate of growth in Indias GDP, it is expected to slow down in the near future, in spite of this challenging scenario Ruby Macons has been able to bag continuous orders, which is testimony to its reputation and cost effectiveness. As the market grows in the medium term, the Company sees sufficient opportunities to grow this business in both volume and scope.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Guarantee issued by the Bank at the request of the Company in favour of third parties.	2.536	10.160
Estimated amount of Contracts remaining to be executed on Capital Account and not provided for {Net of advances of Rs.30787 Millions ( Previous Year Rs.2.706 Millions)}	39.914	7.475

Form 8:

Corporate identity number of the company	U28920MH1986PLC039768
Name of the company	RUBY MACONS LIMITED
Address of the registered office or of the principal place of business in India of the company	203/204 Angelina Aptssarojini Road, Vile Parle (W), Mumbai – 400056, Maharashtra, India E-mail : mail@rubymacons.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90225158
Type of charge	Book Debts Movable Property
Particular of charge holder	State Bank Of India - MID Corporate Branch, Vapi – 396195, Gujarat, India E-mail: sb.60144@sbi.co.in
Nature of instrument creating charge	Form C 5 Letter Regarding The Grant Of Individual Limits Within Overall Limits
Date of instrument Creating the charge	16.12.2010
Amount secured by the charge	Rs.719.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Working Capital- 3.25% Above Base Rate I.E. 10.85% P.A. With Monthly Rests. Term Loan- 4.15% Above Br 11.75%P.A. With Monthly Rests. Slc 1.00% Above CC Rate Terms of Repayment DCC: Valid For A Period Of One Year Payable On Demand Existing Term Loan As Per Original Schedule ( As Per Earlier Sanction Terms) Margin Cash Credit Rm:Domestic 25% Imported 25% Sip 30% Fg 35% Stores And Spares 50% Receivables(60 Days) 35% Lc / Bg 10% Extent and Operation of the charge To secure the due repayment, discharge and redemption by the Company to the State Bank of India for its Credit Facilities of Rs.719.600 millions granted to the Company as under:- Together with interest additional interest liquidated damages, commitment charges, premia on prepayment or redemption etc. on first charge
Short particulars of the property charged	First Charge Over All The Goods, Book Debts And Other Entire Current Assets And Plant and Machinery Of The Company Present And Future, Acquired Out Of The Term Loan.
Date of instrument modifying the charge	23.09.2009
Particulars of the present modification	The Loan Amount Has Been Modified From Rs. 721.600 millions To Rs. 719.600 millions

FIXED ASSETS

· Land-Free Hold

· Land –Leasehold

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Intangibles

· Software

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.53.21
UK Pound	1	Rs.83.32
Euro	1	Rs.69.51

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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.