MIRA INFORM REPORT

Report Date :

25.02.2011

IDENTIFICATION DETAILS

Name :	V.G. PAPER AND BOARDS LIMITED (w.e.f. 24.03.1995)

Formerly Known As :	V.G. PAPER AND BOARDS PRIVATE LIMITED

Registered Office :	1^st Floor, No.132 Palani Road, Venkatesa Mills Post, Udumalpet, Coimbatore – 642 128, Tamilnadu

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	19.09.1986

Com. Reg. No.:	18-001845

CIN No.: [Company Identification No.]	U02102TZ1986PLC001845

TAN No.: [Tax Deduction & Collection Account No.]	CMBV03135G

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Printing and Writing Paper.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 567000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Profitability of the company shows downward trend. However, networth appears to be satisfactory. 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

INFORMATION DECLINED BY

Management non-cooperative

LOCATIONS

Registered Office :	1^st Floor, No.132 Palani Road, Venkatesa Mills Post, Udumalpet, Coimbatore – 642 128, Tamilnadu, India
Tel. No.:	91-4252-252286
Fax No.:	91-4252-252288
E-Mail :	cbt_asvpm@sancharnet.in gmf@rlpmills.com
Website :	http://www.vgpb.com

Administrative Office :	Swaminathapuram, Madathukulam, Tiruppur District - 642 113, Tamilnadu, India

Factory 1 :	Unit - I Swaminathapuram, Pushpathur Village, Palani Taluk
Tel. No.:	91-4252-252286/ 252287/ 252386/ 252344

Factory 2 :	Unit - II Andipatty Road, Kolumam, Udamalpet Taluk

DIRECTORS

As on 29.09.2010

Name :	Dr. Venkatasubba Naidu Gengusamy
Designation :	Chairman
Address :	Door No. 133, Venkata Nilayam, Venkatesa Mills Post, Udumalpet – 642128, Tamilnadu, India
Date of Birth/Age :	04.10.1931
Date of Appointment :	19.09.1986
DIN No.:	00132504

Name :	Mr. Raveendran Gengusamy
Designation :	Managing Director
Address :	Door No. 133, Venkata Nilayam, Venkatesa Mills Post, Udumalpet, Tirupur – 642 128, Tamilnadu, India
Date of Birth/Age :	17.01.1959
Date of Appointment :	19.09.1986
DIN No.:	00132478

Name :	Mr. Nallamuthu Arumuga Gounder
Designation :	Director
Address :	12, Kalpana Road, Udamalpet, Tirupur – 612 126, Tamilnadu, India
Date of Birth/Age :	20.06.1935
Date of Appointment :	30.09.1993
DIN No.:	00046915

Name :	Mrs. Rajalakshmi Govindaswamy Naidu
Designation :	Director
Address :	Door No. 133, Venkata Nilayam, Venkatesa Mills Post, Udumalpet, Tirupur – 642 128, Tamilnadu, India
Date of Birth/Age :	05.11.1934
Date of Appointment :	19.09.1986
DIN No.:	00104964

Name :	Ms. Nandini Raveendran Gengusamy
Designation :	Director
Address :	Door No. 133, Venkata Nilayam, Venkatesa Mills Post, Udumalpet, Tirupur – 642 128, Tamilnadu, India
Date of Birth/Age :	30.04.1964
Date of Appointment :	19.09.1986
DIN No.:	00132539

Name :	Mr. Thirumalaisamy Devadass
Designation :	Director
Address :	Door No.243, Vallakundapuram, Ammapati Post, Pethapampatty, Tirupur – 642 205, Tamilnadu, India
Date of Birth/Age :	13.03.1955
Date of Appointment :	13.02.2004
DIN No.:	00132618

Name :	Mr. Ravenndran Vishnuvardhan
Designation :	Director
Address :	133, Venkata Nilayam, Venkatesa Mills Post, Udumalpet, Tirupur – 642 128, Tamilnadu, India
Date of Birth/Age :	16.11.1983
Date of Appointment :	18.01.2007
DIN No.:	00505212
Other Directorship:	Rajalakshmi Paper Mills Limited U21012TZ1978PLC000814 Inter Yarn Spin India Limited U17111TZ2005PLC011962

Name :	Mr. Duraisamy Senthilkumar
Designation :	Director
Address :	126, Bethapampatty, Somvarpatti Post, Udumalpet, Tirupur – 642 205, Tamilnadu, India
Date of Birth/Age :	03.02.1969
Date of Appointment :	24.04.2002
DIN No.:	00542362

Name :	Mr. Gengusamy Raveendran Harshvardhan
Designation :	Director
Address :	Venkata Nilayam, Venkatesa Mills Post, Udumalpet, Tirupur – 642 128, Tamilnadu, India
Date of Birth/Age :	14.07.1987
Date of Appointment :	01.06.2010
DIN No.:	02904809

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders		No. of Shares
Amaravathi Sri Venkatesa Paper Mills Limited, India		500000
PI. Chandrasekaran		16500
Anilkumar Agarwal		2600
V. Genguswamy		835000
R. Thomas		2000
Kailash Prasad Agarwal		2800
Lattabem Dipak Takvani		4000
G.R. Nandhini		110000
G. Prasadarao		20000
Rajalakshmi Paper Mills Limited, India		250000
G. Rajalakshmi		110000
G. Raveendran		1290700
Vishnuvardhan Paper Mills (Private) Limited, India		375000
G.R. Vishnuvardan		4000

As on 29.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		31.00
Directors or relatives of directors		66.00
Other top fifty shareholders		3.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Printing and Writing Paper.

Products :

ITC Code No	Product Description
4802-6009	Printing and Writing Paper
4801-0009	News Print
4804-4200	M.G. Kraft Paper

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Year Ended 31.03.2010
Installed Capacity	Metric Tons	37000
Actual Production	Metric Tons	32590

GENERAL INFORMATION

No. of Employees :

About 500 (Approximately)

Bankers :

ICICI Bank Limited, Cheran Plaza, 1090, Trichy Road, Coimbatore – 641 018, Tamilnadu, India
ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390 015, Gujarat, India
City Union Bank Limited, 313-316, Dhalli Road, Udumalpet – 642 128, Tamilnadu, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks:
Open Loan	30.514	34.264
Short Term Loan	20.429	7.500
Hire Purchase Loan	1.363	2.154
From Others:
Hire Purchase Loan (The above loan and Non - Fund limit is secured by hypothecation of Inventory, Trade Receivables and first charge on immovable and movable properties, both present and future and further secured by personal guarantee of three directors and Hire Purchase Loan is secured by respective assets)	15.450	16.375
Total	67.756	60.293

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loan from a Director	1.100	1.100
Advance from Directors	1.491	1.791
Trade Deposits	62.918	66.271
Total	65.509	69.162


Banking Relations :	--

Auditors :
Name :	S. V. Visvanathan and Associates Chartered Accountants
Address :	No. 6, M. S. S. Memorial Building, D. B. Road, R. S. Puram, Coimbatore – 641002, Tamilnadu, India

Associated Companies :	Ø Amaravathi Sri Venkatesa Paper Mills Limited Ø Rajalakshmi Paper Mills Private Limited Ø Vishnuvardhan Paper Mills Private Limited Ø The Sri Venkatesa Mills Limited Ø V.G. Textiles Private Limited Ø Nithya Finance Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3750000	Equity Shares	Rs.10/- each	Rs.37.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3581800	Equity Shares	Rs.10/- each	Rs.35.818 Millions

(Of the above 1980000 shares were allotted as fully paid Bonus Shares)

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		35.818	35.818	35.818
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		106.014	98.738	83.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		141.832	134.556	119.718
LOAN FUNDS
1] Secured Loans		67.756	60.293	42.936
2] Unsecured Loans		65.509	69.162	86.080
TOTAL BORROWING		133.265	129.455	129.016
DEFERRED TAX LIABILITIES		48.685	52.859	56.090

TOTAL		323.782	316.870	304.824

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		237.120	242.252	252.911
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.605	0.605	0.605
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.443	99.125	84.772
	Sundry Debtors	74.465	127.406	128.461
	Cash & Bank Balances	28.279	31.196	29.018
	Other Current Assets	2.738	1.786	0.710
	Loans & Advances	41.660	35.593	64.035
Total Current Assets		307.585	295.106	306.996
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	146.654	191.602	200.984
	Other Current Liabilities	49.471	0.109	0.092
	Provisions	25.402	29.382	54.612
Total Current Liabilities		221.528	221.093	255.688
Net Current Assets		86.057	74.013	51.308

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		323.782	316.870	304.824

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	731.481	1004.637	952.713
		Other Income	11.329	20.596	8.431
		TOTAL (A)	742.810	1025.233	961.144

Less	EXPENSES
		Cost of Materials	411.048	634.283	559.804
		Stores and Spares Consumed	45.270	54.983	63.112
		Power and Fuel	105.550	120.648	117.812
		Other Operating Expenses	40.159	58.639	57.432
		Personnel Cost	23.402	22.681	20.474
		Repairs and Maintenance	8.993	14.238	18.732
		Administrative and Other Expenses	16.994	18.734	22.339
		Selling Expenses	29.216	44.247	19.345
		Increase/ Decrease in Stock	6.108	(17.817)	1.431
		TOTAL (B)	686.740	950.636	880.481

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		56.070	74.597	80.663

Less	INTEREST & FINANCIAL EXPENSES (D)		21.939	21.702	23.890

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.131	52.895	56.773

Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.684	22.502	22.156

	PROFIT BEFORE TAX (E-F) (G)		11.447	30.393	34.617

Less	TAX (H)		4.171	12.145	13.497

	PROFIT AFTER TAX (G-H) (I)		7.276	18.248	21.120

	Add: Excess Provision for Income Tax of Prior Year		--	0.361	0.572

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.492	5.654	5.990

Less	APPROPRIATIONS
		Provision for Dividend	--	3.223	4.298
		Provision for Dividend Tax	--	0.548	0.730
		Transfer to General Reserve	8.000	15.000	17.000
	BALANCE CARRIED TO THE B/S		4.768	5.492	5.654

	EARNINGS IN FOREIGN CURRENCY
		Direct	104.974	169.394	28.872
		Merchandise	0.753	6.694	3.768
	TOTAL EARNINGS		105.727	176.088	32.640

	IMPORTS
		Raw Materials	233.793	315.520	289.519
		Store, Spare Parts and Components	2.487	1.067	0.278
		Capital Goods	4.270	0.817	10.020
	TOTAL IMPORTS		240.550	317.404	299.817

	Earnings Per Share (Rs.)		2.03	5.09	5.90

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.98	1.78	2.20

Net Profit Margin (PBT/Sales)	(%)	1.56	3.03	3.63

Return on Total Assets (PBT/Total Assets}	(%)	2.10	5.66	6.18

Return on Investment (ROI) (PBT/Networth)		0.08	0.23	0.29

Debt Equity Ratio (Total Liability/Networth)		2.50	2.61	3.21

Current Ratio (Current Asset/Current Liability)		1.39	1.33	1.20

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from Nithya Nilayam, 132 Palani Road, S.V. Mills Post, Udamalpet – 642 128, Tamilnadu to the present address w.e.f. 01.06.2010.

FINANCIAL RESULTS:

The Company experienced lower operating volumes, particularly in the second half of the year due to host of factors. The power supply worsened in the state and the cost of alternate sources proved too prohibitive. Global recessionary factors lead to poor demand as well. Inflationary effects dampened demand and at the same time pushed up the input cost heavily. Real inflation and possible rise in all inputs are likely to impact the Company in the coming months also.

Under these Circumstances, one must say that the Company did extremely well to generate cash profit before taxes 34.131 millions (Last 52.895 millions). By optimizing fund management efforts, the interest cost were kept almost at the same level as in the previous year.

MARKET TREND:

The demand for News Print is sluggish in the domestic market during the year. The increasing trend of inflation also affecting the domestic consumption of the Company experienced a relatively less productive year, a trend which is likely to continue for some time to come.

It is expected that growth will pickup to higher levels in the second half of 2010-11. The Company is geared up to meet the tough conditions by cutting down costs and the latest capital additions are likely to help the Company in catering to the market needs in a big way.

Bankers Charges Report as per Registry

Corporate identity number of the company	U02102TZ1986PLC001845
Name of the company	V.G. PAPER AND BOARDS LIMITED
Address of the registered office or of the principal place of business in India of the company	1^st Floor, No.132 Palani Road, Venkatesa Mills Post, Udumalpet – 642 128, Tamilnadu, India E-Mail: gmf@rlpmills.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	City Union Bank Limited, 313-316, Dhalli Road, Udumalpet – 642 128, Tamilnadu, India E-Mail: cub138@cityunionbank.com
Nature of description of the instrument creating or modifying the charge	Agreement of loan cum hypothecation
Date of instrument Creating the charge	30/04/2010
Amount secured by the charge	Rs.342.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 13% p.a. on OLCC, BP clean and OSL facilities. Terms of Repayment: Working capital facilities are repayable on demand together with accrued and outstanding interest. OSL facility is repayable in 84 EMIs with a holiday period of 18 months. Margin: As prescribed. Extent and Operation of the charge: first and exclusive charge in favour of City Union Bank Limited Others: Facilities extended to the company includes OLCC of Rs.45.000 millions, BP Clean of Rs.30.000 millions, OSL of Rs.157.500 millions and LC (ILC/FLC) of Rs.110.000 millions, aggregating to Rs.342.500 millions.
Short particulars of the property charged	All current assets, such as stock of goods and book debts. All existing and future plant and machinery in company's Units I and II.

Name of the company	V G PAPER AND BOARDS LIMITED
Presented By	V G PAPER AND BOARDS LIMITED
Date and description of instrument creating the change	Deed of Hypothecation dated the 09.12.2004 executed by V G PAPER AND BOARDS LIMITED in favour of ICICI Bank Limited
Amount secured by the charge/amount owing on the securities of charge	Working capital facilities not exceeding Rs. 76.000 Millions extended / granted to the Borrower
Gist of the terms and conditions and extent and operation of the charge.	Covenant by the Borrower to comply / to ensure compliance with all the terms and conditions set out in the Master facility agreement dated 09.12.2004 entered between the borrower and ICICI as modified amended from time to time The borrower shall pay / repay all amounts in respect of the facilities and pay interest and all others monies in the manner set out in the agreement and the other Transaction Documents The assets were thereby hypothecated inter alia to ICICI as and by way of exclusive as specified in annexure as security for and be charged with the repayment of the facilities all interest and other monies payable by the borrower to ICICI as specified in the agreement and other transaction documents. The borrower to keep the assets in marketable and good conditions and also insured as provided in the deed of hypothecation / the agreement. Power of entry, power to take charge and / or possession of, seize, recover, receive, appoint receivers of and remove and / or sale by auction or private contract, dispatch for realization or otherwise dispose of or deal with all or any part of the assets etc. as provided in deed of hypothecation. All other terms and conditions as contained in the deed of hypothecation.
Name and Address and description of the person entitled to the charge.	ICICI Bank Limited, Cheran Plaza, 1090, Trichy Road, Coimbatore – 641018
Date and brief description of instrument modifying the charge	No instrument was executed but on the 09.12.2004 a mortgage was created by the company in favour of ICICI by deposit of title deeds with ICICI in respect of company’s immovable properties situate at 1. Tirupur in Udumalpet Taluk, 2. Pushpathur Village, Palani Taluk, 3. Shankaramanallur Udumalpet Taluk and Ramakulam Ayacut, West Komaralingam Village, Tamilnadu in order to create a security thereon as and by way of mortgage by deposit of title deeds pursuant to the resolution passed by the committee of directors of the company on 29.11.2004.
Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The facility together with interest thereon at the respective agreed rates, additional interest, liquidated damages, commitments charges, premia on prepayment, costs, charges and other expenses payable by the company to ICICI in respect thereof secured under the abovementioned deed of hypothecation is also now secured inter alia, by the said mortgage by deposit of title deeds in respect of the company’s immovable properties situate at 1. Tirupur in Udumalpet Taluk, 2. Pushpathur Village, Palani Taluk, 3. Shankaramanallur Udumalpet Taluk and Ramakulam Ayacut, West Komaralingam Village, Tamilnadu together with all buildings and structures thereon and all plant and machinery attached to earth or permanently fastened anything attached to the earth.

This form is for	Modification of charge
Charge identification number of the modified	90004521
Corporate identity number of the company	U02102TZ1986PLC001845
Name of the company	V G PAPER AND BOARDS LIMITED
Address of the registered office or of the principal place of business in India of the company	Nithya Nilayam, 132 Palani Road, Venkatesa Mills Post, Udamalpet – 642128, Tamilnadu, India
Type of charge	Immovable Property
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda-390015, Gujarat, India
Nature of description of the instrument creating or modifying the charge	Declaration in the matter of mortgage by deposit of title deeds in respect of immovable properties.
Date of instrument Creating the charge	18.05.2007
Amount secured by the charge	Rs. 145.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest I) Cash Credit : IBAR + CC Premia – 2.50% + applicable Interest tax/ statutory levy if any. II) Inland Bills Purchased / Discounted : IBAR +Term Premia – 1.80% + applicable Interest tax/ statutory levy if any. Terms of Repayment Repayable on Demand Margin Inventory – Uniform Margin of 25% against all components of inventory Book Debts – Cover Period not exceeding 90 days margin – 25% Extent and Operation of the charge First Charge on all the company’s immovable and movable properties both present and future.
Short particulars of the property charged	Factory land and building situated at Sankarmanallur, South Village Udumalpet Taluk, Pushpathur Village, Swaminathpuram, Palani Taluk, Land at Ramakulam Ayacut West Komaralingam Village, Udumalpet Taluk.
Date of latest modification prior to the present modification	12.05.2006
Particulars of the present modification	Enhancement of total working capital facilities form Rs. 110.000 Millions to Rs. 145.000 Millions

FIXED ASSETS

Ø Land

Ø Buildings

Ø Machinery

Ø Electric Machinery

Ø Wind Mill

Ø Furniture and Office Equipments

Ø Motor Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.73.54
Euro	1	Rs.62.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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		47

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.

MIRA INFORM REPORT

160.443

74.465

28.279

2.738

41.660

307.585

49.471

25.402

221.528

86.057

0.98

1.56

2.10

0.08

2.50

1.39

Unit