MIRA INFORM REPORT

Report Date :

28.07.2011

IDENTIFICATION DETAILS

Name :	PRS PERMACEL PRIVATE LIMITED
Formerly Known As :	PERMACEL PRIVATE LIMITED
Registered Office :	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.06.1999
Com. Reg. No.:	11-120475
Capital Investment / Paid-up Capital :	Rs.9.000 Millions
CIN No.: [Company Identification No.]	U74999MH1999PTC120475
TAN No.: [Tax Deduction & Collection Account No.]	MUMP17560E
PAN No.: [Permanent Account No.]	AABCP4401A
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturing and Trading in Self Adhesive Tapes and Labels.
No. of Employees :	3000 [Approximately]

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 562000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having Satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

LOCATIONS

Registered / Corporate Office :	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-66358333
Fax No.:	91-22-66358383
E-Mail :	contact@prs-permacel.com pshroff@prs-permacel.com vdedhia@prs-permacel.com
Website :	http://www.prs-permacel.com
Area :	3500 sq. ft.
Location :	Owned
Factory :	Mohile Village, Safed Pool, Andheri-Kurla Road, Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-851 5052
Fax No.:	91-22-851 0149
Regional Offices in India:	Northern Region: 215,Suneja Tower,Plot No.7, District Centre, Janak Puri, New Delhi – 110058, India Tel.:91-11-4761 6666 Fax:91-11-4761 6677 Eastern Region: BJ/134, Sector-II, Gr.Floor, Salt lake, Kolkata - 700 091, West Bengal, India Tel.: 91-33-2358 8561/62 Fax: 91-33-2358 8565 Western Region: 63, Bombay Samachar Marg, Mumbai-400 001, Maharashtra, India Tel.: 91-22-6635 8333 Fax: 91-22-6635 8383 Southern Region: Office No.5, 2nd Floor, Ankur Plaza, 52,G.N. Chetty Road, T. Nagar, Chennai – 600 017, Tamilnadu, India Tel.: 91-44-2815 5551/ 2815 3096 Fax: 91-44-2815 3208

DIRECTORS

As on 23.09.2010

Name :	Mr. Sushil K. Premchand
Designation :	Director (NRI - based in Zurich, Switzerland)
Address :	Madhukun 7 Narayan, Dhabolkar Road, Napean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	27.07.1945
Qualification :	B. Com, FCA
Date of Appointment :	05.08.1999
DIN :	00571485
Name :	Mrs. Suvarna D Haridas
Designation :	Director
Address :	Spring Leaf, 4^th Floor, flat No. 402, 12^th Road, Khar [West], Mumbai – 400052, Maharashtra, India
Date of Birth/Age :	25.01.1959
Qualification :	Graduate
Date of Appointment :	05.08.1999
DIN :	00063192
Name :	Mr. Pradeep HIralal Shroff
Designation :	Managing Director
Address :	1802, Wallace Apartment, Sleater Road, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	06.12.1949
Qualification :	Mechanical Engineer form I.I.T, M.S from USA
Previous Employment :	Johnson and Johnson Limited
Date of Appointment :	11.08.1999
DIN :	00063171
Name :	Mr. Viju Parmeswaran
Designation :	Director (Ex-employee of Hindustan Lever Limited - IIT)
Address :	A 2, Cornwell Rustomji No. 3, Cornwell Road, Bangalore –560025, Karnataka
Date of Birth/Age :	24.01.1953
Date of Appointment :	14.12.2000
Date of Ceasing :	24.11.2005
Name :	Mr. Raj Shekharan Nair
Designation :	Director
Address :	785 Aavishkar Cross IV Block , Koramnagala, Bangalore – 560 034, Karnataka
Date of Birth/Age :	02.07.1939
Date of Appointment :	30.11.2006
DIN :	00202551
Name :	Mr. Viren Bhawanji Dedhia
Designation :	Whole-time Director
Address :	507 Maheshwar Niketan, Colbad Naka, Thane – 400 601, Maharashtra
Date of Birth/Age :	22.03.1961
Qualification :	B. Com, ACA
Date of Appointment :	23.03.2009
DIN :	02624416
Name :	Mr. Nityanand Shekar Shenoy
Designation :	Whole-time Director
Address :	3/11 Jagdish Kunj Rafi Ahmed Kidwai Road, Wadala, Mumbai – 400 031, Maharashtra
Date of Birth/Age :	30.01.1962
Qualification :	B. Tech (ME), MBA
Date of Appointment :	23.03.2009
DIN :	02624443
Directorship in other Companies :
CIN of Company :	U99999MH1919PTC000615
Name of Company	Union Bank of India Limited
Designation	Director
CIN of Company :	L33112MH1943FLC003972
Name of Company	BASF India Limited
Designation	Director
CIN of Company :	U24130Mh2005PLC152467
Name of Company	BASF Polyurethanes India Limited
Designation	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2010

Names of Shareholders	No. of Shares
Stock Traders Private Limited, India	458980
Preroy Holding AG, Switzerland	441000
Sushil Premchand	10
Haridas Suvarna	10
Total	900000

As on 23.09.2010

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	49.00
Bodies corporate	50.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading in Self Adhesive Tapes and Labels.

Products :

Item Code No.	Product Description
8546.00	Electrical Insulation Tapes
3919.00	Self Adhesive Tapes
7014.00	Glass Cloth Tapes

Ø Aisle Marking Tape

Ø Asset Marking Labels

Ø Decorative Graphics

Ø Double Sided Tapes For Mounting And Holding

Ø Foam Tapes For Fixing Trim / Emblem

Ø Instruction Labels

Ø Insulation Tapes

Ø Paint Masking Tapes

Ø Products For Polishing And Finishing

Ø Quality Control Labels

Ø Reflective Films / Labels

Ø Safety Labels In Plant

Ø Security / Tamper Evident Labels On Spares

Ø Sound And Vibration Dampening Products

Ø Surface Protection Films

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tapes	Square Meters	NA	3700000	890207
Labels	Square Meters	NA	1000000	676415

Note : installed capacity is on two shift – 300 working days per year basis

GENERAL INFORMATION

No. of Employees :

3000 [Approximately]

Bankers :

· The Saraswat Co-operative Bank Limited, 379, Sailor Building, Fort Branch, Fort, Mumbai – 400001, Maharashtra, India

· ICICI Bank, ICICI Bank Towers, Bandra Kurla Complex, Nariman Point, Mumbai - 400 051, Maharashtra

· Yes bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loan from Bank	141.661	83.326
Cash Credit from Bank	85.291	42.892
Vehicle loans from bank	0.718	1.504
Interest Accrued and due on Term loans	0.925	0.000
Total	228.595	127.722
Note: A] The term loan and cash credit facilities are secured by the following: · Exclusive charge on the entire current assets and fixed assets both present and future. · Pledge of 234000 shares of PRS Permacel held by Stock Traders Private Limited · Exclusive charge by way of pledge of ‘Peracel Brand’ B] The vehicle loans from bank are secured by way of exclusive first charge/ hypothecation of vehicles and execution of demand promissory note in favour of the bank
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Unsecured loans from holding company	140.096	140.096
Total	140.096	140.096

Banking Relations :	--
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountants
address:	Jalan Mill Compound, 95 Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400001, Maharashtra, India
Tel No.:	91-22-40356300
Fax No.:	91-22-40356400
Holding Company :	· Stock Traders Private limited CIN : U51900MH1937PTC002684
Fellow Subsidiary :	· PRS Solutions Private Limited
Associates :	· Premchand Roychand and Sons

CAPITAL STRUCTURE

As on 23.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs.10/- each	Rs.20.000 millions
8,000,000	Preference Shares	Rs.10/- each	Rs.80.000 millions
		Total	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900,000	Equity Shares	Rs.10/- each	Rs.9.000 millions

Notes:-

Of the above 458980 (2008 - 458980) Equity Shares are held by stock Traders Private Limited (STPL) the holding 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		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		131.727	8.585	0.000
4] (Accumulated Losses)		0.000	0.000	(15.194)
NETWORTH		140.727	17.585	(6.194)
LOAN FUNDS
1] Secured Loans		228.595	127.722	92.106
2] Unsecured Loans		140.096	140.096	140.096
TOTAL BORROWING		368.691	267.818	232.202
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		509.418	285.403	226.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		441.832	114.144	134.151
Capital work-in-progress including Capital Advances		25.015	141.931	14.013
INVESTMENT		0.025	0.000	0.000
DEFERREX TAX ASSETS		14.454	10.974	8.834
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.618	67.397	57.313
	Sundry Debtors	178.734	135.551	191.783
	Cash & Bank Balances	3.405	0.527	3.966
	Other Current Assets	2.447	0.000	0.000
	Loans & Advances	29.068	17.206	33.077
Total Current Assets		283.272	220.681	286.139
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	113.704	67.765	79.220
	Other Current Liabilities	92.952	95.795	104.939
	Provisions	48.524	38.767	32.970
Total Current Liabilities		255.180	202.327	217.129
Net Current Assets		28.092	18.354	69.010
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		509.418	285.403	226.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	677.190	590.880	624.290
		Other Income	4.360	9.090	0.850
		TOTAL (A)	681.550	599.970	625.140
Less	EXPENSES
		Office Expenses
		Administrative Expenses	647.893	572.628	589.459
		Advertising Expenses
		TOTAL (B)	647.893	572.628	589.459
	PROFIT BEFORE TAX (E-F) (G)		33.657	27.342	35.681
Less	TAX (H)		11.607	3.562	1.941
	PROFIT AFTER TAX (G-H) (I)		22.050	23.780	33.740
	IMPORTS
	Raw Materials and finished goods		156.464	159.554	121.089
	Spares Parts		1.125	3.001	1.517
	Capital Goods		0.088	0.310	1.971
	TOTAL IMPORTS		157.677	162.865	124.577
	Earnings Per Share (Rs.)		24.50	26.42	37.49

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.23	3.96	5.40
Net Profit Margin (PBT/Sales)	(%)	4.97	4.63	5.72
Return on Total Assets (PBT/Total Assets}	(%)	4.64	8.17	8.49
Return on Investment (ROI) (PBT/Networth)		0.24	1.55	(5.76)
Debt Equity Ratio (Total Liability/Networth)		4.43	26.74	(72.54)
Current Ratio (Current Asset/Current Liability)		1.11	1.09	1.32

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

Subject (‘Permacel or the Company) was incorporated in India on June 22, 1999. The Company is principally engaged in the manufacturing and trading in self adhesive tapes and labels. The Company is a subsidiary of Stock Traders Private Limited (‘STPL’).

Pursuant to an agreement for the purchase of the Permacel division of Johnson and Johnson Limited (‘J and J’), dated August 10, 1999 between J and J and the company, the Permacel division was transferred to the company.

OPERATIONS:

The company posted decent growth in sales and earnings for the year ended 31.03.2010. the aggregated of sales and other income of Rs.681.550 millions was achieved during the accounting year ended 31.03.2010, reflecting 14% growth over previous year. The company made profit after tax of Rs.22.050 millions d=for the year ended 31.03.2010.

During the year the company started manufacturing operations at its new facility built at additional Ambernath MIDC, Ambernath

CONTINGENT LIABILITIES

Rs. in millions

Particulars	31.03.2011	31.03.2009
Claims against the company not acknowledged as debts:
From Central Excise authorities towards classification matters	0.618	0.618
Income tax of Rs.1055 in respect of assessment year 2008-09 in respect of which the company has gone on appeal.	1.055	0.000
Others	9.212	8.312
Total	10.885	8.930

FORM 8

Name of the company	PRS Permacel Private Limited
Presented By	Mr. Pradip H. Shroff, Managing Director
1) Date and description of instrument creating the change	Vehicles Loan cum Hypothecation Agreement dated 24.06.2005
2) Amount secured by the charge/amount owing on the securities of charge	Vehicles Loans of Rs.0.259 Million
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	Alto LX Motor Car
4) Gist of the terms and conditions and extent and operation of the charge.	1. Interests @ 7.01% p.a. 2. Payable in 60 installments of Rs.5,100 each 3. Repayment schedule from 01.08.2005 to 01.06.2010 4. Prepayment charges 4% of the principal outstanding 5. Cheque dishonor charges Rs.200 per instrument 6. cheque swap charges Rs.500.
5) Name and Address and description of the person entitled to the charge.	ICICI Bank Limited ICICI Tower, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

FORM 8

Corporation identity number or foreign company registrations number of the company	U74999MH1999PTC120475
Name of the company	PRS PERMACEL PRIVATE LIMITED
Address	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	ICICI Bank ICICI Bank Towers, bandra Kurla Complex, Nariman Point, Mumbai - 400 051 Nitesh.maheshwari@icicibank.com
Nature or description of the instrument creating charge	Unattested Deed of Hypothecation
Date of the instrument creating charge	22.08.2006
Amount Secure by the charge	Rs.0.514 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : 9.52 % Payable in 60 installments of Rs.0.011 millions each , Repayment schedule from 05.10.2006 to 05.08.2011, Prepayment charges 5 % of the principal outstanding, Charge per cheque bonus Rs.250 /- , Cheque Swap charges Rs.750/-
Description of the property charge whether it is a charge on	Vehicles

FORM 8

Corporation identity number or foreign company registrations number of the company	U74999MH1999PTC120475
Name of the company	PRS PERMACEL PRIVATE LIMITED
Address	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra
This Form is for	Creation of charge
Type of Charges	· Movable Property · Floating Charge
Particular of the charge holder	The Saraswat Co-operative Bank Limited, 379, Sailor Building, Fort Branch, Fort, Mumbai – 400001, Maharashtra, India
Nature or description of the instrument creating charge	Agreement of Hypothecation of moveable property.
Date of the instrument creating charge	21.01.2011
Amount Secure by the charge	Rs.50.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest - PLR i.e.13% at the time of sanction, with monthly rests or at such rates as may be prescribed in future by the Bank from time to time. Terms of Repayment - Moratorium of 12 months and 47 monthly installments of Rs.1.041 millions and last 1 installment of Rs.1.073 millions + interest to be paid separately. Margin - Plant and Machinery (local) and equipments (HVAC-Air conditioner) - 30% Imported Machinery - 25% Furniture and Fire Fighting equipments and other misc. fixed assets- 40% Extent and Operation of the charge - This is Term Loan facility. There is first pari passu charge interest amongst The Saraswat Co-operative Bank Limited and Yes Bank Limited on all present and future moveable assets, plant and machinery, furniture and fixture of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all plant and machinery, furniture, fixture, installation, fittings and other fixed assets, tangible moveable property (both present and future) belonging to Company and lying and being at borrowers place of business at MIDC, Ambernath Factory and MIDC-Dombivli Factory or where ever else the same may be.

fixed assets:

· Building

· Electrical Installations

· Plant and machinery

· Computers

· Vehicles

· Office Equipments

· Computers

· Leasehold Land

· Laboratory Equipments

WEBSITE DETAILS:

PROFILE:

Permacel was originally founded in 1927 as the industrial products division of the health care giant Johnson and Johnson to produce and market masking tape. Over the years Permacel grew to be one of the world's companies in tapes, with a large range of innovations to its credit. It is believed that, the word Permacel was derived from 'Permanent Cellulose Tapes'. The ubiquitous CELLOTAPE used even today was originally made by Permacel. In addition, Permacel ‘Duct Tape’ was the only tape selected by ‘FORTUNE’ magazine (November 22, 1999, Page No.81) in its ‘Products of the Century’ series.

In India, Permacel started its operations in the late 1950s as a division of Johnson and Johnson (India). The initial years saw Permacel establishing itself as the Indian leaders in Tapes manufacturing. In the late 1960s, Permacel entered the label making business…pioneering speciality-printing technology in India.

Being in the forefront of innovations and technology by the late 1970s, Permacel was the market leader in the Identification Labels, Insulation Products and Speciality Tapes business in India. 

Company having over 25 years of experience in brand protection, appreciates the business need for brand protection, and has established new business division Kavach to promote its brand protection business. Kavach is dedicated to helping brand owners fight the menace of counterfeiting, duplication, re-circulation, diversion, refilling and various other forms of brand attack.

In the global restructuring process, the world-wide business of Permacel was sold by Johnson and Johnson in the early 1980s. Permacel India was an exception and continued as part of Johnson and Johnson (India) till it was taken over in August 1999 by Premchand Roychand and Sons. The new company was christened Company.

Today, with over 40 years of experience in India in the manufacturing of labels and tapes, and under a financially strong and committed management, company can offer you 'Customised Solutions' for varied needs of labels and tapes. In addition to its strong technically qualified sales force, Company has a state of the art manufacturing plant in Mumbai, supported by a large R&D facility.

Company is the only company in India in its Industry to be awarded both the coveted ISO 9001 and ISO 14001 certifications

PREMCHAND GROUP

The history of the Premchand Group began in Bombay in 1856, when Premchand Roychand, one of the most prominent personalities in the financial markets of his time, founded Premchand Roychand and Sons, which today functions as the Group's apex entity.

The Premchand Group is a closely-held, family-owned Group that believes in investing mainly for the long term. The Group's strength is in building and growing relationships with business partners, be they large or small.

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.43.94
UK Pound	1	Rs.72.12
Euro	1	Rs.63.66

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	4
--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	NO
--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.