MIRA INFORM REPORT

Report Date :

06.07.2011

IDENTIFICATION DETAILS

Name :	PUDUMJEE INDUSTRIES LIMITED (w.e.f. 04.03.2008)
Formerly Known As :	PUDUMJEE AGRO INDUSTRIES LIMITED
Registered Office :	Thergaon, Chinchwad, Pune – 411033, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.12.1965
Com. Reg. No.:	11-013394
Capital Investment / Paid-up Capital :	Rs.36.000 millions
CIN No.: [Company Identification No.]	L74999MH1999PLC013394
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15791G
PAN No.: [Permanent Account No.]	AAACP0487B
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture and Sale of various types of Papers such as Crepe Tissue, M.G. Kraft, Carbon Based Tissue, Poster Papers, etc.
No. of Employees :	About 148 (As on 31.03.2010)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1700000
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.

INFORMATION PARTED BY

Name :	Mr. S. B. Vani
Designation :	Accounts Manager
Contact No.:	91-20-30613333
Date :	05.07.2011

LOCATIONS

Registered Office/ Factory :	Thergaon, Chinchwad, Pune – 411033, Maharashtra, India
Tel. No.:	91-20-30613333
Fax No.:	91-20-27273294/ 30613388
E-Mail :	sbw@pune.pudumjee.com sk@pune.pudumjee.com agro@pudumjee.com mumbai@pudumjee.com
Website :	http://www.pudumjee.com
Area :	65 Acres
Location :	Owned
Corporate/ Sales and Branches Office :	Jatia Chambers, 60, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22674485 / 4529
Fax No.:	91-22-22658316
E-Mail :	agro@pudumjee.com
Factory :	Paper Division Thergaon, Pune – 411033, Maharashtra, India Agro Division Narsinghpur, Madhya Pradesh, India

DIRECTORS

Name :	Mr. Shyam M. Jatia
Designation :	Chairman and Managing Director
Name :	Mr. A. S. Dayal
Designation :	Director
Name :	Mr. R. C. Saraf
Designation :	Director
Name :	Mr. A. K. Somany
Designation :	Director
Name :	Mr. G. N. Jadodiya
Designation :	Director
Name :	Mr. S. C. Kedia
Designation :	Director

KEY EXECUTIVES

COMMITTEE OF DIRECTORS:	· Ms. S. M. Jatia, · Mr. G. N. Jajodiya · Mr. S. C. Kedia.
	·
AUDIT COMMITTEE:	· Mr. R. C. Saraf (Chairman), · Mr. A. S. Dayal · Mr. G. N. Jajodiya
REMUNERATION COMMITTEE :	· Mr. R. C. Saraf, · Mr. G. N. Jajodiya · Mr. S. C. Kedia

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2011)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,747,149	9.71
Bodies Corporate	9,192,577	51.07
Sub Total	10,939,726	60.78
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1,478,936	8.22
Sub Total	1,478,936	8.22
Total shareholding of Promoter and Promoter Group (A)	12,418,662	68.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6,000	0.03
Financial Institutions / Banks	500	-
Sub Total	6,500	0.04
(2) Non-Institutions
Bodies Corporate	2,256,859	12.54
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	2,659,567	14.78
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	336,240	1.87
Any Others (Specify)	322,172	1.79
Non Resident Indians	4,473	0.02
Clearing Members	18,940	0.11
Hindu Undivided Families	298,759	1.66
Sub Total	5,574,838	30.97
Total Public shareholding (B)	5,581,338	31.01
Total (A)+(B)	18,000,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	18,000,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of various types of Papers such as Crepe Tissue, M.G. Kraft, Carbon Based Tissue, Poster Papers, etc.

Products :

Item Code No.	Product Description
480260.02	M. G. Poster Paper
480251.05	M. G. Tissue Paper
480300.00	Crepe Tissue Paper

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Paper	M. T.	NA	22,500	15.636

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

About 148 (As on 31.03.2010)

Bankers :

v State Bank of India, Chinchwad, Pune, Maharashtra, India

v IDBI Bank Limited

v Axis Bank Limited

v The United Western Bank Limited

v Bank of India

v Centurion Bank of Punjab Limited

Facilities :

Secured Loan	31.03.2010	31.03.2009
	(Rs. In Millions)
From Banks :
Against hypothecation of stocks, stores and Book Debts Cash Credit :	90.169*	68.843*
Against first charge on Fixed Assets of the company Term Loan	77.372	0.000
Total	167.541	68.843
Secured Loan	31.03.2010	31.03.2009
	(Rs. In Millions)
From Bank	0.000	0.000
From Others	459.879	204.127
Total	459.879	204.127

Banking Relations :	--
Auditors :
Name :	Khare and Company Chartered Accountants
Solicitors :
Name :	Kanga and Company Chartered Accountants
Subsidiary :	· Pudumjee Hygiene Products Limited. Line of Business: Distribution of hygiene related Paper Products and Other Products.
Associates :	· Pudumjee Pulp and Paper Mills Limited Manufacture of various varieties of paper such as Calendared, Coated, Laminating Base, Packing Tissue, Security etc. · Pudumjee Plant Laboratories Limited The Company is engaged in the business of floriculture including cultivation of cut flowers and tissue culture products such as Banana Plants, Ornamental Plants, etc. · Pudumjee Investments and Finance Company Limited (PIFCO) · Prime Developers · Pudumjee-G Corp. Developers

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.2/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.2/- each	Rs.36.000 millions

NOTE:

Of the above 8,135 Equity Shares were allotted as fully paid up for consideration other than cash and 61,20,575

Equity shares were allotted as fully paid up Bonus Shares issued by way of capitalisation of Reserves.

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		36.000	36.000	36.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		382.959	369.526	352.889
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		418.959	405.526	388.889
LOAN FUNDS
1] Secured Loans		167.541	68.843	127.040
2] Unsecured Loans		459.879	204.127	169.769
TOTAL BORROWING		627.420	272.970	296.809
DEFERRED TAX LIABILITIES		18.000	13.500	14.300
TOTAL		1064.379	691.996	699.998
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		249.427	131.725	124.243
Capital work-in-progress		0.979	11.059	5.073
INVESTMENT		126.816	126.816	126.816
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	214.057	99.228	170.672
	Sundry Debtors	157.281	126.848	139.003
	Cash & Bank Balances	13.741	18.837	5.151
	Other Current Assets	0.000	0.565	0.210
	Loans & Advances	406.518	312.761	257.926
Total Current Assets		791.597	558.239	572.962
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	52.422	41.780	121.142
	Other Current Liabilities	36.040	85.440
	Provisions	15.978	8.623	7.954
Total Current Liabilities		104.440	135.843	129.096
Net Current Assets		687.157	422.396	443.866
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1064.379	691.996	699.998

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Income from Operation	702.694	965.131	980.864
		Other Income	42.786	45.269	27.447
		TOTAL	745.480	1010.400	1008.311
Less	EXPENSES
		Manufacturing and Other Expenses	734.724	867.660
		Trade Purchases	18.217	55.379
		Net Foreign Exchange Loss/ (Gain)	(3.449)	12.824	958.443
		Increase / (Decrease) in Stock	(41.964)	42.536
		TOTAL	707.528	978.399	958.443
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		37.952	32.001	49.868
Less/ Add	DEPRECIATION/ AMORTISATION		11.407	9.697	8.717
	PROFIT BEFORE TAX		26.545	22.304	41.151
Less	TAX		9.000	6.000	12.000
	PROFIT AFTER TAX		17.545	16.304	29.151
Add	Net Credits of Earlier years		0.000	0.000	0.139
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		109.286	92.982	63.692
Less	APPROPRIATIONS
		Proposed Dividend	3.600	0.000	0.000
		Tax on Proposed Dividend	0.598	0.000	0.000
	BALANCE CARRIED TO THE B/S		122.633	109.286	90.982
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	2.146	12.490	NA
		Deemed Export	0.000	7.011	NA
	TOTAL EARNINGS		2.146	19.501	NA
	IMPORTS
		Raw Materials	299.278	259.681	NA
		Components and Spares Parts	19.278	12.978	NA
		Capital Goods	44.124	8.123	NA
		Trader Goods	17.769	44.482	NA
	TOTAL IMPORTS		380.449	325.264	NA
	Earnings Per Share (Rs.)		0.97	0.91	1.62

Particulars	31.03.2011
Sales Turnover (Approximately)	1000.000

The above information has been parted by Mr. S. B. Vani.

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	226.200	228.200	256.500	284.700
Total Expenditure	214.200	229.800	267.500	290.500
PBIDT (Excl OI)	12.000	(1.600)	(11.000)	(5.800)
Other Income	0.200	1.300	0.200	0.000
Operating Profit	12.200	(0.300)	(10.800)	(5.800)
Interest	0.800	0.500	0.600	3.000
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	11.400	(0.800)	(11.400)	(8.800)
Depreciation	4.100	4.200	4.100	4.200
Profit Before Tax	7.300	(5.000)	(15.500)	(13.000)
Tax	2.300	(2.000)	(5.300)	(5.600)
Reported PAT	5.000	(3.000)	(10.200)	(7.400)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	5.000	(3.000)	(10.200)	(7.400)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.35	1.61	2.89
Net Profit Margin (PBT/Sales)	(%)	3.78	2.31	4.20
Return on Total Assets (PBT/Total Assets}	(%)	2.55	3.23	5.90
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.11
Debt Equity Ratio (Total Liability/Networth)		1.75	1.01	1.10
Current Ratio (Current Asset/Current Liability)		7.58	4.11	4.44

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors	52.422	41.780	NA
Total	52.422	41.780	NA

OPERATIONS:

During the year Company was able to sustain its performance in terms of profitability despite one of the Paper Machines which remained shut for a protracted period of 202 days awaiting replacement of the major component of the machine “Yankee Dryer”. The opportunity was taken to rebuild the machine with the new Yankee Dryer to speed up and increase its production capacity by about 4000 MT per annum the cost of this investment was about Rs.120.000 Millions. With regard to Company’s Real Estate business in Partnership, the efforts continue on sale of ready apartments, which is expected to be achieved by middle of next year. Construction under phase 3 has been conscientiously deferred till the inventory is sold out. The plans for the 3rd phase include construction of Villas on “made to order” basis instead of the apartments so as to fetch premium and better margin.

The wholly-owned subsidiary of the Company namely; Pudumjee Hygiene Products Limited, which commenced its business in 2005 and engaged in the business of hygiene products has shown better performance. Its products under “Greenlime” brand are well recognized and continue to get a larger recognition, especially in the premium business segment. The subsidiary has achieved, for the first time, a Profit Before Tax of Rs.5.455 Millions over a turnover of Rs.635.000 Millions.

The labour relations in the Company have remained cordial.

MANAGEMENT DISCUSSION AND ANALYSIS

The Company is engaged in the business of manufacture of Crepe Tissues for the hygiene industry and other specialty products like Packaging Tissues, Carbon Base paper etc. The Company’s products are well received in the market and command premium despite intense competition from other manufacturers. The Company continues to emphasize the importance of cost reduction especially with regard to raw material utilization to ward off the impact of rising cost of inputs.

The Company has modernized one of its paper making machines for enhanced production, both in terms of quantity and quality.

The residential project of Real Estate business in Tirupur, being carried out in Partnership, has unsold inventory of apartments, which is expected to be sold by mid 2011. The plans for further construction comprise of selling Villas on “made to order” basis, instead of the apartments, so as to achieve better profitability.

The existing internal controls of the Company are periodically reviewed by the Audit Committee and are considered to be adequate.

The Company employs about 148 employees and its relations with the labour have been cordial.

Pudumjee Hygiene Products Limited, the wholly-owned subsidiary of the Company, successfully sells its products under the “Greenlime” brand in the premium segment of hygiene products. The presence of the Company in the Retail Market is constantly increasing.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31st MARCH, 2011.

		Particulars	Quarter Ended	Year Ended
			31.3.2011	31.3.2011
				Audited
1	(a)	Gross Sales /Income from Operations	308.400	1094.200
		Less Excice Duty	11.200	36.800
		:Vat/Sales Tax and Service Tax	18.900	71.400
		Net Sales/Income from Operations	278.300	986.000
	(b)	Other Income	6.400	16.200
		Total Income :	284.700	1002.200
2		Expenditure
	(a)	(Increase)/ Decrease in stocks in Trade	(9.200)	(32.200)
	(b)	Consumption of Raw Materials	143.900	557.300
	(c)	Purchases of  Traded Goods.	56.200	83.200
	(d)	Consumption of Fuel, Power & Water	45.000	186.200
	(e)	Employees Cost	11.300	43.500
	(f)	Other Expenditure	43.300	169.900
	(i)	Total	290.500	1007.900
3		Profit/(Loss) from Operations before Other Income Interest & Depreciation.	(5.800)	(5.700)
4		Depreciation.	4.200	16.600
5		Profit/(Loss) from Operations before Other Income & Interest.	(100)	(22.300)
6		Other Income	-	1.000
7		Profit/(Loss) before  Interest & Financial Charges	(10.000)	(21.300)
8		Interest & Financial charges	3.000	4.900
9		Profit/(Loss) from Ordinary activities before Tax	(13.000)	(26.200)
10		Tax Expenses/(Saving) (including Deferred Tax)	(5.600)	(10.600)
11		Net Profit/(Loss) for the period	7.400	(15.600)
12		Paid-up Equity Share Capital (Face value Rs. 2/- per share)	36.000	36.000
13		Reserves (Excluding Revaluation Reserves)	0.000	366.800
14		Basic/Diluted EPS for the period (Rs.)	-0.41	-0.87
15		Public Shareholding
		-Number of Shares	5,581,338	5,581,338
		-Percentage of Shares Holding	31.01%	31.01%
16		Promoters and Promoter group Shareholding
	(a)	Pledged Encumbered	NIL	NIL
	(b)	Non-Encumbered
		Number of Shares	12,418,662	12,418,662
		Percentage of Shares (as a % of the total Shareholding of Promoters & Promoter group.)	100%	100%
		Percentage of Shares (as a % of the total Share Capital of Company.)	68.99%	68.99%

FIXED ASSETS

· Land

· Building

· Machinery

· Furniture and Fixtures

· Vehicles

WEBSITE DETAILS:

HISTORY:

Pudumjee Industries Limited (PIL) formally Pudumjee Agro Industries Limited (PAIL) was incorporated on 31st December 1965 as a Private Limited Company with the object of running a paper mill at Bombay under the name and style of F. Pudumjee and company Private Limited. It became deemed Public Limited Company u/s.43A (a) on 4th May, 1977 and subsequently was converted into Public Limited Company on 31.1.86. The name of the Company was changed to its present name on 4th March 2008.

The company had made an application to the Government for permission to import a second hand paper machine. However, before the sanction was received, the mill was completely destroyed by fire in March 1976. In the meanwhile, the Company received a licence to import a second hand paper machine. Since the land where the paper mill was located was acquired by the Municipal Corporation, the company decided to install the imported machinery at Thergaon at Pune. In April 1977, the Company became a subsidiary of Pudumjee Pulp and Paper Mills Limited (PPPML).

The imported machinery was commissioned in 1987 with a total capacity of 3000 TPA. In the year 1985, the Company expanded its capacity to 11000 TPA with the installation of one or more imported paper machine. In February 1987, the Company ceased to be a subsidiary of PPPML. In January 1985, Mr. S. M. Jatia was appointed as the Managing Director of the Company and after the disinvestment of shareholding by PPPML in the Company; he acquired control of the Company along with his associates.

In 1991, the Company installed its fourth paper machine having a capacity of 10500 TPA with further increased its installed capacity to 21,500 TPA. One of the old machines installed in 1987 was later on phased out which reduced the installed capacity to 18,500 TPA.

COMPANY PROFILE:

Pudumjee Industries Limited (PIL) Formerly Know as Pudumjee Agro Industries Limited (PAIL), Pune, (Maharashtra), India based Company is engaged in the manufacture and sale of various types of papers such as Crepe Tissue, M.G. Kraft, Carbon based tissue, Poster papers, etc. and is a member of the M.P. Jatia Group of Companies, which group includes, amongst others, Pudumjee Pulp & Paper Mills Limited, the flagship Company and manufacturer of Specialty Papers.

The Company which has its Paper Manufcturing Plant and Registered Office at Thergaon, Pune (India) is managed by Board of Directors comprising of eminent personalities from various fields and disciplines headed by Mr. Shyam Mahabirprasad Jatia.

The Company’s equity shares are listed at Bombay Stock Exchange Ltd & National Stock Exchange of India Ltd.

Both the existing paper machines are of M.G. Type (Machine Glazed) which are capable of manufacturing fairly wide range of papers such as Crepe Tissue, Hygene Tissue, M.G. Tissue, Carbon Tissue, and Wrappers for fruit, flowers and food, Poster Paper, Kraft Paper etc.

LANDMARKS

· In April 1977 the Company became a subsidiary of Pudumjee Pulp and Paper Mills Limited.

· In 1985 the Company expanded its production capacity from 3,000 tonnes of paper per annum to 11,000 tonnes of paper per annum with installation of one more imported paper machine.

· In February 1987 the Company ceased to be a subsidiary of Pudumjee.

· In 1991 the Company installed another paper machine thereby increasing installed capacity of paper manufacturing from 11,000 tonnes per annum to 21,500 tonnes per annum. After phasing out the old machines the present installed capacity of paper manufacturing stands at 18,500 tonnes per annum.

· The Company made a maiden Public Issue of its shares in August 1994 which got oversubscribed by 25 times.

· During 2004-05 Pudumjee Hygiene Products Limited became a wholly owned subsidiary of the company, which is engaged in the business of distribution of hygiene products. 

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.44.49
UK Pound	1	Rs.71.25
Euro	1	Rs.64.39

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	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.