MIRA INFORM REPORT

Report Date :

07.01.2011

IDENTIFICATION DETAILS

Name :	CENTAUR PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Centaur House, Opposite Grand Hyatt, Vakola, Santacruz - East, Mumbai - 400 055, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.10.1980
Com. Reg. No.:	11-023291
CIN No.: [Company Identification No.]	U24230MH1980PTC023291
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10186B
PAN No.: [Permanent Account No.]	AAACC0444K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemicals and Pharmaceutical Medicines.

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 3156196
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some losses incurred by the company in the current year i.e. 08-09, however the 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	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. Nijas Surey
Designation :	Accountant
Date :	06.11.2011

LOCATIONS

Registered Office :	Centaur House, Opposite Grand Hyatt, Vakola, Santacruz - East, Mumbai - 400 055, Maharashtra
Tel. No.:	91-22-56499100 / 66499100
Fax No.:	91-22-56499108 / 112 / 6649 9108
E-Mail :	centalab@bom3.vsnl.net.in centaur@centaurlab.com export@cetaurchem.com
Website :	http://www.centaurpharma.com
Factory :	Plot No. 3, Tivim Industrial Estate, Karaswada, Mapusa, Goa – 403526, India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Shivanand Dattatraya Sawant
Designation :	Chairman and Managing Director
Address :	501, Vasant Vihar CHS Limited, TPS III, 10^th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India
Date of Birth/Age :	20.03.1938
Date of Appointment :	15.10.1980
Name :	Mr. Mahadeo Prabhakar Thakoor
Designation :	Director
Address :	1^st Floor, Samadhan, Rajaram Tawde Road, Dahisar (West), Mumbai – 400068, Maharashtra, India
Date of Birth/Age :	13.03.1938
Date of Appointment :	06.02.2001
Name :	Mr. Sudhakar Keshav Rangnekar
Designation :	Director
Address :	6, Vasant CHS Limited, Mogul Lane, Mahim, Mumbai – 400016, Maharashtra, India
Date of Birth/Age :	28.03.1929
Date of Appointment :	01.11.2004
Name :	Mr. Shreekant Dattathray Sawant
Designation :	Whole Time Director
Address:	Flat No. 11, 6^th Floor, Om Sidhivinatyak Apartment, L T. Dilip Gupte Road, Mahim (West), Mumbai-400016, Maharashtra, India
Date of Birth/ Age:	31.05.1949
Date of Appointment :	01.08.2008
Name :	Mr. Anil Mahadev Naik
Designation :	Whole Time Director
Address:	12 Vinayanand CHS Dadabhai Cross Road No. 1, Linking Road, Ext. Santacrusz (West), Mumbai-400054, Maharashtra, India
Date of Birth/Age:	06.09.1960
Date of Appointment :	01.08.2008
Name :	Mr. Govind Guno Desai
Designation :	Director
Address:	Kedar Apartment, Bhandar Lane, L.J Road Mahim, Mumbai-400015, Maharashtra, India
Date of Birth/ Age:	14.06.1933
Date of Appointment :	23.10.2008
Name :	Mr. Vipul Harendra Mankad
Designation :	Director
Address:	906, Sidbi Apartments, Veera Desai Road, Andheri (West), Mumbai-400053, Maharashtra, India
Date of Birth/ Age:	10.08.1958
Date of Appointment :	01.04.2008

KEY EXECUTIVES

Name :	Mr. Nija Sure
Designation :	Financial Manager
Name :	Mr. Pritam Maruti Khawale
Designation :	Secretary
Address:	14/18, Mukand Iron Staff, Association Co-Operative Housing Society, Gavanpada, Mulund (East), Mumbai-400081, Maharashtra, India
Date of Birth/ Age:	14.04.1979
Date of Appointment :	18.08.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Sawant Dattatraya Shivanand	2578261
Nadkarni Maruti Jagdish	200250
Sawant Dattatraya Shreekant	605781
Naik Mahadeo Anil	67052
Powar Atmaram Shyamsunder	27000
Sawant Dattatraya Gopinath	58088
Padgaonkar Manohar Milind	33753
Sawant Shivanand Veena	1487226
Naik R. Kamalaksha	36645
Sawant K. Ganviraj	18000
Rangnekar Keshav Sudhakar	44063
Rangnekar Sudhakar Usha	22500
Sawant Shivanand Supriya	1420060
Kadam Shridhar Rakhi	1101382
Phal Abhaykumar Smita	909189
Sawant Shreekant Sheela	535006
Padgaonkar Manohar Sudha	43398
Padgaonkar Manohar Sudha	138375
Parulkar Mohan Sumitra	919553
Phal Abhaykumar Smita	433297
Sawant Dattatraya Gopinath	1500
Sawant Dattatraya Gopinath	800
Powar Ramesh Sachin	68715
Rao Rama Hymavati	3215
Shah C Niranjin	6430
Sawant K. Asha	6430
Sawant Dattatraya Shreekant	846524
Rangnekar Keshav Sudhakar	526
Rangnekar Sudhakar Amit	368
Kadam Shridhar Rakhi	300539
Sawant Shivanand Supriya	434984
Sawant Shivanand Veena	508092
Sawant Dattatraya Shivanand	437540
Phal Abhaykumar Smita	1053
Sawant Shreekant Sheela	444470
Sawant Gopinath Rekha	16544
SIDBI Trustee Company Limited A/C SME Growth Fund, Mumbai	4254202
Powar R Geeta Powar	4635
Sawant Shreekant Ashwin	44496
Sawant Shreekant Tushar	44960
Naik Mahadeo Anil	220163
Sawant Dattatraya Gopinath	69525
Rangnekar Keshav Sudhakar	101970
TOTAL	18496560

Equity Share Breakup (Percentage of Total Equity)

(AS ON 30.09.2010)

Category	Percentage
Venture Capital	23.00
Directors or relatives of directors	68.86
Other top fifty (50) shareholders (other than listed above)	8.14
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals and Pharmaceutical Medicines.

Products :

Generic name of principle product of the company

Product Description	Item Code (ITC Code No.)
Sinarest Tab	300490.34
Bulk Drugs	294200.00
Ocupol-D Drops	300420.01

· Sinarest Tablets

· Sinarest Syrup

· Ocupol-D Eye/ Ear

· Psychotropic Bulk Drugs

Imports :

Products:

Raw Materials

Countries:

· Japan

· China

· Uk

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS (As on 31.03.2010):-

Licensed capacity and Installed Capacity

Particulars	Unit of Measure	2010 Quantity
Formulations
Tablets and Capsules	Millions	1685
Liquids	Kiloliters	2000
Injectables	Kiloliters	30
Ointments and Medicinal Toothpaste	Tonnes	200
Bulk Drugs	Kilos	18000

GENERAL INFORMATION

Customers :

Pharma Company

No. of Employees :

350 (In office 150 + In factory 200) (Field Representative 1000)

Bankers :

· State Bank of India, Commercial Branch, Shyamkamal Trade Centre, Agarwal Market, Vile Parle (East), Mumbai – 400057, Maharashtra, India

· State Bank of India, MID Corporate Loan Admin, Unit Shri Hari Building, RTO Lane, Four Bungalows, Andheri (West), Mumbai – 400 053, Maharashtra, India

· Axis Bank Limited, Fort Br. Universal Insurance Bldg; Sir P M Road, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term loan from bank	314.753	336.109
Interest accrued on Term Loans	3.448	3.173
Short Term
Cash Credit Accounts	308.646	189.030
Packing Credit Loans	41.354	24.303
Total	668.201	552.615
Nature of security : Term loans, cash credit and packing credit loans are secured by first charge ranking pari-passu on all assets (present and future) together with personal guarantees of two directors and major shareholders.
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Long Term
From others	29.934	33.310
Short Term
From Directors	2.000	1.800
From Others	13.974	8.335
Total	45.908	43.445

Banking Relations :

----

Auditors :

Name 1 :

BSR and Associates

Chartered Accountants

Address :

KPMG, Lodha Excelus, First Floor, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi, Mumbai – 40011, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 millions

Issued :

No. of Shares	Type	Value	Amount
18496560	Equity Shares	Rs. 10/- each	Rs.184.966 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18496560	Equity Shares	Rs. 10/- each	Rs.184.966 Millions

Of the above

9,029,212 (March 2008 : Nil) Equity shares of Rs.10 each issued as fully paid up to the shareholders of erstwhile Centaur Chemicals Private Limited (pursuant to the Scheme of Amalgamation of Centaur Chemicals Private Limited with the Company).

264,595 (March 2008 : 264,595) Equity shares of Rs.10 each issued as fully paid up to the shareholders of erstwhile Centaur Laboratories Private Limited (pursuant to the Scheme of Amalgamation of Centaur Laboratories Private Limited with the Company).

25,263 (March 2008 : 25,263) Equity shares of Rs.10 each issued as fully paid up to the shareholders of erstwhile Centaur Drug House Private Limited (pursuant to the Scheme of Amalgamation of Centaur Drug House Private Limited with the Company).

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		184.966	184.966	184.966
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		604.083	487.035	580.889
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		789.049	672.001	765.855
LOAN FUNDS
1] Secured Loans		668.201	552.615	450.956
2] Unsecured Loans		45.908	43.445	60.732
TOTAL BORROWING		714.109	596.060	511.688
DEFERRED TAX LIABILITIES		10.383	87.109	56.450
TOTAL		1913.541	1355.170	1333.993
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1117.224	1076.542	978.168
Capital work-in-progress		153.540	75.663	7.676
INVESTMENT		0.068	0.068	0.073
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	253.055	268.198	191.008
	Sundry Debtors	287.298	168.178	153.641
	Cash & Bank Balances	127.106	88.460	302.063
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	79.637	86.462	60.569
Total Current Assets		747.096	611.298	707.281
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	386.214	317.307	303.469
	Other Current Liabilities	79.185	69.379	63.485
	Provisions	38.988	21.715	0.573
Total Current Liabilities		504.387	408.401	367.527
Net Current Assets		242.709	202.897	339.754
MISCELLANEOUS EXPENSES		0.000	0.000	8.322
TOTAL		1913.541	1355.170	1333.993

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1708.216	1434.282	1329.692
		Other Income	0.000	0.000	0.000
		TOTAL (A)	1708.216	1434.282	1329.692
Less	EXPENSES
		TOTAL (B)	1601.443	1412.987	1259.496
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		106.773	21.295	70.196
Less	FINANCIAL EXPENSES (D)		65.689	73.348	40.888
	PROFIT BEFORE TAX (C-D) (E)		41.084	(52.053)	29.308
Less	TAX (F)		(75.964)	(33.575)	28.197
	PROFIT AFTER TAX (G-H) (I)		117.048	(85.628)	1.111
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(49.987)	35.641	30.621
	BALANCE CARRIED TO THE B/S		67.061	(49.987)	35.641
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	447.958	322.519	NA
		Product Development Charges	9.121	0.000	NA
	TOTAL EARNINGS		457.079	322.519	NA
	IMPORTS
		Raw Materials	35.976	22.600	NA
		Capital Goods	10.014	15.209	NA
	TOTAL IMPORTS		45.990	37.809	NA
	Earnings Per Share (Rs.)		6.33	(4.63)	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.85	[6.36]	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.20	[3.08]	1.74
Return on Investment (ROI) (PBT/Networth)		0.05	[0.08]	0.03
Debt Equity Ratio (Total Liability/Networth)		1.54	1.49	1.15
Current Ratio (Current Asset/Current Liability)		1.48	1.50	1.92

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

PARTICULARS	Rs. In Millions AS ON 31.03.010	Rs. In Millions AS ON 31.03.009	Rs. In Millions AS ON 31.03.008
Sundry Creditors
Due To Micro, Small And Medium Enterprises	39.378	28.660	0.000
Others	346.836	288.647	303.469

OPERATIONS OF THE COMPANY

Pharmaceutical Segment

The Company was ranked 58th in India in the pharmaceutical stockist audit (AWACS) and 47th in the prescription audit (CMARC), growing in double digits over the previous year. The Company is a leader in 6 therapy areas across respiratory and ophthalmology segments with robust support from key specialties like pediatricians, ophthalmologists, ENT surgeons and physicians across India. Sinarest, their flagship brand continues to sustain its leadership amid intense- national, international, regional and OTC competition.

During the year, Pune facility has obtained the approvals from the Medicines and Healthcare products Regulatory Agency (MHRA) of United Kingdom and Therapeutic Goods Administration (TGA) of Australia and New Zealand and will sought approvals from various others Country’s health regulatory authorities.

Ambernath Chemical Plant of the Company is in process of seeking ISO 14001 : 2004 and OHSAS 18001 : 2007 certification.

Lifesan Division has established key partnerships with international niche players across various therapeutic categories which should enable them to build proficiencies in clinical research. This division was awarded BA/BE studies and clinical trials from domestic Companies. With our presence being established across key verticals in the pharmaceutical spectrum, the Company has emerged one among India’s few, fully integrated pharmaceutical players.

Bankers Charges Report as per Registry

Name of the company	CENTAUR PHARMACEUTICALS PRIVATE LIMITED
Presented By	Mr. S. K Rangnekar
1) Date and description of instrument creating the change	1) General Agreement for Grant of Medium Term Advances to small scale industries and hypothecation of movables, boo debts and other assets. 2) Ancillary Agreement for Medium Term Loan against pledge of Movables Machines. 3) Memorandum of Deposit of Title deeds (All the documents dated 9^th January, 2003 to constitute to single charge)
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 21.900 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all Accessories and Equipments to be purchased for office premises and Equitable Mortgage of following. 1. Factory Building/ Structures on Plot No. 3, 5B, 39, 40, 41 at Tivim Industrial Estate, Mapusa. 2. Factory Building/ Structures on Plot No. 13 , Mapusa Industrial Estate Mapusa. 3. Basement 1^st and 2^nd Floor in office complex building at Shanti Industrial Estate, Vakolal, Santacruz (East)l, Mumbai more particularly described in Schedule IV to the Deed
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @ 1.75% over SBI MTLR minimum of 13.25% p.a. Loan Repayable in 18 quarterly installments. Amount of First 17 installments is Rs. 1.225 Millions each and last 18^th installments of Rs. 1.075 Millions commencing form 8^th October, 2003. Margin – 33% Charge to cover all outstanding sums, interest, cost and charges payable by the company to the bank
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shyamkamal Trade Centre, Agarwal Market, Vile Parle (East), Mumbai – 400057, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Recital Agreement dated 1^st March, 2005
7) 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.	First (Present) Modification: Original charge created on 09.01.2003 by the company in favour of the State Bank of India modified with provision of additional security by way of charge created through mortgage by Deposit of Title Deeds of following New Properties of the Company situated at: Office premises adm. 2518 sq.mtrs. at B/1 and B/101 at basement of centaur house, Vakola,l Santacruz (East), Mumbai-400055 Premises No. A/701 on 7^th Floor admeasuring around 2518 sq.ft. (Super built up) at Centaur House, Shantinagar industrial Estate, Vakolal, Santacruz (East), Mumbai-400055 More particularly described in Schedule II to the Recital. All other terms and conditions of the charge to continue.

Corporate identity number of the company	U24230MH1980PTC023291
Name of the company	CENTAUR PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Centaur House, Shantinagar, Vakola Santacruz (East), Mumbai – 400055, Maharashtra
This form is for	Modification of Charge
Charge identification number of the modified	10015268
Type of charge	· Immovable Property
Particular of charge holder	State Bank of India, MID Corporate Loan Admin, Unit Shri Hari Building, RTO Lane, Four Bungalows, Andheri (West), Mumbai – 400 053, Maharashtra, India
Nature of instrument creating charge	Memorandum of entry for extension of mortgage
Date of instrument Creating the charge	04.12.2009
Amount secured by the charge	Rs. 662.700 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: As per the Sanctioned Letter Terms of repayments: Demand for Bank Margin: As per the Sanction Letter Extent and Operation of the charge: Security to cover principal amount together with interst, costs, charges and expenses etc. Others State Bank of India – Rs. 531.000 Millionsl, Canaa Bank- Rs. 81.000 Millions, Axis Bank Limited – Rs. 197.500 Millions. All other terms and conditions as per the sanctioned letter and loan agreement
Short particulars of the property charged (Including location of the property)	· Plot No. 4, adm 15378.03 sq. mtrs. situated at Pune Infotech Park, Phase II, Hinjewadi, Taluka Mulshi, Pune. · Office Premises no. A/501 and A/601 on 5th Floor and 6th Floor adm around 7200 sq. ft. (Super B/U) at Cenatur House, Shantinagar Industrial Estate, Vakola, Santacruz (E), Mumbai 400055. · Office Premises no. A/801 and B/801 on 8th Floor adm around 5400 sq. ft. (Super B/U) at Cenatur House, Shantinagar Industrial Estate, Vakola, Santacruz (E), Mumbai 400055. · Plot No. 3 adm. 3712 sq. mtrs., Plot No. 5B adm. 650 sq. mtrs., Plot No. 39, 40 and 41 adm. 3306 sq. mtrs. and Plot No. 13 adm. 1283 sq. mtrs.situated at Thivim Industrial Estate, Taluka Bardez.
Date of instrument modifying the charge	10.10.2009
Particulars of the present modification	SBI, Canara Bank and Axis Bank Limited in whose favour first pari passu charge on Term Loans (Pune Goa/ Mumbai Project) was aggregate for Rs. 398.100 Millions and Second charge on working capital facilities and term loan for Rs. 411.400 Millions on the immovable properties described in the Annexure attached.

Fixed assets:-

· Land- Freehold

· Land – Leasehold

· Factory Building

· Building

· Guest house Flats

· Electrification

· Air Conditioning plant

· R and D Assets

· Vehicles

· Intangible Assets

· Office Equipments

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 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 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] 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.45.31
UK Pound	1	Rs.70.26
Euro	1	Rs.59.56

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	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	No
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		46

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.