MIRA INFORM REPORT

Report Date :

20.06.2011

IDENTIFICATION DETAILS

Name :	MEDREICH LIMITED
Formerly Known As :	MEDREICH STERILAB LIMITED
Registered Office :	Medreich House No 12/8, Saraswathi Ammal Street, Maruthi Seva Nagar, Bangalore-560033, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.08.1973
Com. Reg. No.:	08-002383
CIN No.: [Company Identification No.]	U24232KA1973PLC002383
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01934C
PAN No.: [Permanent Account No.]	AABCM1458Q
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturers of Pharmaceutical Formulations.

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 12000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

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 DECLINED BY

Name :	Mr. Bathia
Designation :	Finance Manager

LOCATIONS

Registered Office :	Medreich House No 12/8, Saraswathi Ammal Street, Maruthi Seva Nagar, Bangalore-560033, Karnataka, India
Tel. No.:	91-80-25493334 [10 Lines]
Fax No.:	91-80-25474741
E-Mail :	bnk@ho.medreich.com query@ho.medreich.com medreich@vsnl.com cg@ho.medreich.com info@ho.medreich.com pi@ho.medreich.com medreich@vsnl.com venkatesh.y@medreich.com
Website :	http://www.medreich.com
Area :	1500 sq. fts
Location :	Leased
Corporate Office :	Survey No. 4/3, Avalahalli, Off Kanakpura Road, Anjanapura Post, Bangalore, Karnataka, India
Tel. No.:	91-80-25493334
Fax No.:	91-80-25474741
Factory 1 :	12th Mile, Old Madras Road, Virgo Nagar, Bangalore – 560049, Karnataka, India
Area :	3500 sq. ft.
Location :	Owned
Factory 2 :	4/2, Anjanapura, Avalahalli, Karakapura Road, Bangalore, Karnataka, India
Factory 3 :	49 B and C, Bommasandra Industrial Area, Bangalore, Karnataka, India
Factory 4 :	Plot No. 36, Bommasandra Industrial Area, Bangalore, Karnataka, India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Chandanmal Pukhraj Bothra
Designation :	Managing Director
Address :	No. 14, 7^th Cross SS, Jai Bharat Nagar, Bangalore – 560033, Karnataka, India
Date of Birth/Age :	20.07.1956
Date of Appointment :	01.06.1990
DIN No. :	00023108
Name :	Mr. Keith De Souza
Designation :	Director
Address :	90, Wyatt Drive, Barness, London, SW138 AB, England
Date of Birth/Age :	01.07.1955
Date of Appointment :	14.09.1996
DIN No. :	00022680
Name :	Mr. Paul Michael Barett
Designation :	Chairman
Address :	1, Leicester Close, Henley – On – Thames, Oxon, RG92DLD, London, England
Date of Birth/Age :	09.11.1945
Date of Appointment :	19.05.2004
DIN No. :	00023297
Name :	Mr. Rajeev Mehta
Designation :	Director
Address :	80, Wyatt Drive, Barnes, London, England – SW 138AB
Date of Birth/Age :	19.08.1951
Date of Appointment :	19.05.2004
DIN No. :	00023079
Name :	Mr. Tan Swee Suan
Designation :	Director
Address :	60 B, Orchard Road, 06-18, Tower-2, The At Rium Orchard, Singapore-238891
Date of Birth/Age :	10.04.1956
Date of Appointment :	14.10.2005
DIN No. :	00022637
Name :	Mr. Seow Teng Peng
Designation :	Director
Address :	2 Avon Road, Singapore – 439780
Date of Birth/Age :	05.05.1945
Date of Appointment :	14.10.2005
DIN No. :	01122683
Name :	Mr. Andrew Morris
Designation :	Director
Address :	Holy Tree House, Bovingdon, Greeen, Marlow Bucks-SL72JL, United Kingdom
Date of Birth/Age :	20.07.1962
Date of Appointment :	26.03.2009
DIN No. :	02705055
Name :	Mr. Pravin Vaidyanathan Iyer
Designation :	Whole Time Director
Address :	No. 422, Nelmane, 4^th G Main, II Block, HRBR Layout, Bangalore-560043, Karnataka, India
Date of Birth/Age :	10.08.1967
Date of Appointment :	30.03.2010
DIN No. :	00485814
Name :	Stella Kwek
Designation :	Alternate Director
Address :	APT BLK 507, Serangoon North Avenue 4#06-408
Date of Birth/Age :	17.02.1971
Date of Appointment :	04.12.2009
Date of Cessation :	30.03.2010
DIN No. :	03212405

KEY EXECUTIVES

Name :	Mr. Venkatesh Yendapalli
Designation :	Company Secretary
Address :	101, Lakshmi Enclave, Behind Sambhram Institute of Technology, Vidyaranyapura Post, Bangalore – 560097, Karnataka, India
Date of Birth/Age :	06.12.1966
Date of Appointment :	01.02.2009
Pan No. :	ABAPY3222B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Leela Kanwar	10
Vandana Bothra	10
Arun Kumar Chordia	10
Hemantha Kumar Bothra	10
Kushboo Bothra	10
Med Holdings Limited, United Kingdom, KT13AH	21055093
Nokha Holdings Private Limited , Karnataka, India	7787450
V Sciences Investment Pte Limited, Singapore	10000
Total	28852593

Name of Preference Shareholders
V Sciences Investment Pte Limited, Singapore	14196160

AS ON 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	73.00
Bodies corporate	27.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Pharmaceutical Formulations

Products :

Item Code Number	Product Description
30041003	Ampicillin
30041004	Amoxicillin
30041005	Cloxacillin
30031000	Potassium Clavulnate

Exports :

Countries :

· U.K.

· Africa

· Canada

Imports :

Countries :

· U.K.

· Spain

· Germany

· China

· Malaysia

· Italy

Terms :

Selling :

L/C, D/P, Credit [15/60/120 days] terms

Purchasing :

L/C, D/P, Credit [45/90/30-180 days] terms

PRODUCTION STATUS

(As on 31.03.2008)

Particulars	Unit	Installed Capacity
Capsules	Millions / Annum	2750.000
Tablets	Millions / Annum	2160.000
Bottles	Millions / Annum	18.000

Particulars	Unit	Actual Production
Capsules	Millions	951.600
Tablets	Millions	1944.100
Liquids	Kilo Leters	111.300
Vials	Millions	15.473

GENERAL INFORMATION

Suppliers :

· Sel Jegat Printers, Sivakasi,

· Enzed Chloro Products Private Limited, India

· Fine Print Private Limited, India

· Yuno Packaging Private Limited, India

· Biotica, Spain

· Ribbon SCR, Italy

· Sauter AG, Germany

· Shimatzo, Japan

· S. M. Chemicals, Malaysia

Customers :

· Medreich PLC, UK

· Glaxo Smith Kleine

No. of Employees :

462 (approximately)

Bankers :

· State Bank of Mysore (Lead Bank), Corporate Accounts Branch, M.G. Road, Bangalore – 560001, Karnataka, India

· Export Import Bank of India, Center one building, 21^st Floor, World Trade Center, Complex, Cuff Parade, Mumbai - 400 005, Maharashtra, India

· YES BANK LIMITED, Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 400018, Maharashtra, India

· Canara Bank

· Overseas Bank, M. G. Road, Bangalore – 560001, Karnataka,

· Corporation Bank

Facilities :

Secured Loans	31.03.2009 (Rs. in millions )	31.03.2008 (Rs. In Millions)
From Banks
Term Loan Due within one year – Nil (previous year Rs. 83.333) [Secured by way of first charge on certain fixed assets of the company, both present and future]	--	83.333
Working Capital loans (Secured by way of first pari-passu charge on certain fixed assets, current assets of the Company, both present and future and second pari-passu charge on certain fixed assets of the Company and are further secured by personal guarantees / certain properties of the Managing Directors and his relative)	329.039	225.946
Total	329.039	309.279

Note – secured loan details of 2010 is not available.

Banking Relations :	Satisfactory
Financial Institution :	· Housing Development Finance Corporation Limited · Karnataka State Financial Corporation · Karnataka State Industrial Investment and Development Corporation Limited
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Address :	U. B. City, Canberra Block, 12^th and 13^th Floor, No. 24, Vittal Mallya Road, Bangalore-560001, Karnataka, India
Tel. No.:	91-80-40275000
Fax No.:	91-80-22106000
Pan No.:	AABFS3421N
Associates/Subsidiaries :	· Adcock Ingram Limited CIN: U24232KA2007PLC042361 · Medreich Saimirra Limited CIN: U24230TN2008PLC067303 · Medreich Cephtech Private Limited CIN: U24230KA2004PTC050438 · Medreich Far East Limited · Medreich South Africa Limited · LDP – Laboratories Torlan · Trust Chemists and Druggists Limited · Pharmazen Medicals Pte Limited · Medreich Australia · Medreich France · Medreich Malayasia SDH BHD · Medreich Pte Limited · SARAL Medreich France · Medreich Plc
Holding Company :	· Medreich Holdings U. K. Limited

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
44134259	Equity Shares	Rs.10/- Each	Rs.441.343 millions
14196160	Preference Shares	Rs.78.80/- Each	Rs.1118.657 millions
2	Preference Shares	Rs.1/- Each	Rs.0.000 millions
	Total		Rs.1560.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28852593	Equity Shares	Rs.10/- Each	Rs.288.526 millions
14196160	Non cumulative participative convertible 1% Preference Shares	Rs.78.80/- Each	Rs.1118.657 millions
	Total		Rs.1407.183 millions

NOTE

Equity Shares

Out of above

a) 24719 equity shares allotted as consideration for transfer of business under scheme of amalgamation without payment being received in cash.

b) 1102820 equity shares allotted as bonus shares by capitalizing general reserve and securities premium account.

c) 12949803 equity shares allotted on swap basis to acquire 50000 shares of GBP 1 each of Medreich Plc

d) 21055093 equity shares held by Med Holding (UK) Limited, United Kingdom, the Holding Company

Preference Share Capital

14196160 (previous year 14196160) Non-cumulative participative convertible 1% preference shares of Rs. 78.80 each fully paid up.

The preference shares are convertible into equity shares are the option of the shareholder anytime before the restricted period as prescribed in the Articles of association. The preferences shares are compulsorily convertible into equity shares on or before 10.10.2010 filing of red herring prospectus with Securities Exchange Board of India in connection with an Initial Public Offer whichever is earlier.

The preference shares carry on non-cumulative basis a right to payment of dividend, at the rate of 1% in priority to the payment of dividend on equity shares, with a further right to participate in the profits of the company by way of dividend on a pari-passu basis along with all other holders of equity shares on an as converted basis.

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		1407.183	1407.183	1407.183
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1802.973	1609.402	1305.899
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3210.156	3016.585	2713.082
LOAN FUNDS
1] Secured Loans		339.059	329.039	309.279
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		339.059	329.039	309.279
DEFERRED TAX LIABILITIES		95.916	88.416	93.016
TOTAL		3645.131	3434.040	3115.377
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		547.036	569.752	549.793
Capital work-in-progress		12.303	6.532	59.902
INVESTMENT		1887.074	1802.074	1635.892
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	534.854	562.405	551.181
	Sundry Debtors	692.175	819.690	789.026
	Cash & Bank Balances	28.370	33.063	95.835
	Other Current Assets	51.885	19.460	9.184
	Loans & Advances	524.776	421.162	394.141
Total Current Assets		1832.060	1855.780	1839.367
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		605.142	703.462
	Other Current Liabilities	547.921	92.580	167.130
	Provisions	85.421	102.376	98.985
Total Current Liabilities		633.342	800.098	969.577
Net Current Assets		1198.718	1055.682	869.790
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3645.131	3434.040	3115.377

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2952.458	3011.875	2860.188
		Other Income	199.592	248.742	327.058
		TOTAL (A)	3152.050	3260.617	3187.246
Less	EXPENSES
		Cost of Goods Sold	2032.486	2043.199	2038.430
		Personal Expenses	252.270	219.142	214.978
		Operating and Other Expenses	419.752	398.488	360.341
		TOTAL (B)	2704.508	2660.829	2613.749
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		447.542	599.788	573.497
Less	FINANCIAL EXPENSES (D)		81.318	87.388	94.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		366.224	512.400	478.976
Less/ Add	DEPRECIATION/ AMORTISATION (F)		39.884	36.559	41.272
	PROFIT BEFORE TAX (E-F) (G)		326.340	475.841	437.704
Less	TAX (H)		94.500	133.942	141.626
	PROFIT AFTER TAX (G-H) (I)		231.840	341.899	296.078
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		581.873	278.370	80.688
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	21.639	21.639	21.639
		Proposed Dividend on Preference Shares	11.179	11.179	11.179
		Tax on Proposed Dividend	5.451	5.578	5.578
		Transfer to General Reserve	0.000	0.000	60.000
	BALANCE CARRIED TO THE B/S		775.444	581.873	278.370
	Earnings Per Share (Rs.)
	- Basic		7.58	11.40	9.81
	- Diluted		5.77	8.51	7.37

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.36	10.49	9.29
Net Profit Margin (PBT/Sales)	(%)	11.05	15.80	15.30
Return on Total Assets (PBT/Total Assets}	(%)	13.72	19.62	18.32
Return on Investment (ROI) (PBT/Networth)		0.10	0.16	0.16
Debt Equity Ratio (Total Liability/Networth)		0.30	0.37	0.48
Current Ratio (Current Asset/Current Liability)		2.89	2.32	1.90

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF THE COMPANY PERFORMANCE

During the year the Company has achieved net sales of Rs. 3014.300 millions, registering a growth of 0.08% compared to previous year. Profit before interest, depreciation and taxes were Rs. 447.500 millions compared to Rs. 599.700 millions last year. After providing interest of Rs. 81.300 millions (Rs. 87.400 millions last year) and depreciation of Rs. 39.900 millions (Rs. 36.600 millions last year) the profit before tax was Rs. 326.300 millions as against the previous year's profit of Rs. 475.800 millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24232KA1973PLC002383
Name of the company	MEDREICH LIMITED
Address of the registered office or of the principal place of business in India of the company	Medreich House No 12/8, Saraswathi Ammal Street, Maruthi Seva Nagar, Bangalore-560033, Karnataka, India
This form is for	Modification of charge
Charge identification number of the modified	80018741
Type of charge	Movable Property Immovable Property Book Debts
Particular of charge holder	State Bank of Mysore (Lead Bank), Corporate Accounts Branch, M.G. Road, Bangalore – 560001, Karnataka, India Email ID : ifbbangalore@sbm.co.in
Nature of instrument creating charge	Working capital consortium agreement dated 16.07.2010 for enhanced limits of Rs. 15.000 millions. Joint deed of hypothecation dated 16.07.2010 for enhanced limits of Rs. 15.000 millions. Inter se agreement dated 16.07.2010.
Date of instrument Creating the charge	16.07.2010
Amount secured by the charge	Rs.1500.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: At SBM PLR, presently @ 1.25% Export Credit Limits: As applicable under gold card scheme for exporters LC/BG: As per bank’s standard raters Terms of Repayment Packing credit, cash credit: 180 days FDBP?FUBP: as per bills ILC/FLC: DA?DP with maximum usance of 180 days Bank Guarantee: Maximum 24 months, including claim period Margin Packing credit: 25% ILC/FLC: 10% BG: 10% Extent and Operation of the charge The charge operates on pari passu basis between state bank of mysore, corporate accounts branch, M. G. Road, Bangalore (lead bank), state bank of india, specilaised commercial branch, krishi bhavan, first floor, Hudson circle, Bangalore – 560001, and DBS bank Limited, salarpuria windsor, Bangalore to secure the due repayment of the enhanced working capital aggregating to Rs. 1500.000 millions (Rupees One Thousand and Five Hundred millions only)
Short particular of the property or asset(s) charged	i) First charge on current assets, namely stocks of raw materials, semi-finished and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares) ii) First charge on current assets namely, bills receivable and book debts and other moveable of the borrower both present and future excluding such moveable as may be permitted by the said banks. iii) Also by 1^st Mortgage charge in favour of the consortium banks of the borrower’s 3 immoveable property and moveable properties (other than current assets) both present and future in a form and manner.
Date of instrument modifying the charge	26.09.2008
Particulars of the present modification	The consortium has been reconstituted with the entry of state bank of india and with the exit of canara bank. Further the consortium working capital limits have been increased to Rs. 1500.000 millions (Rupees One Thousand and Five Hundred Millions only) consisting of Rs. 800.000 millions (Rupess Eight Hundred millions only) from state bank of mysore, Bangalore Rs. 450.000 millions (Rupess Four Hundred and Fifty millions only) from State Bank of India, Bangalore and Rs. 250.000 millions (Rupess Two Hundred and Fifty Millions only) from DBS Bank, Bangalore.

FIXED ASSETS

· Land

· Factory Buildings

· Office Buildings

· Plant and Machinery

· Electrical Equipments and Installations

· Furniture and Fittings

· Vehicles

· Office Equipments

· Computers

· Software

HISTORY

In 1994, when Smithkline Beecham tasked Medreich plc to source quality generic drugs, for its Africa operations, it came upon a little company that had world class quality parameters. This company was guided by the Beecham technical and regulatory protocols that it used in its own facility in UK. The little company, Medreich, has come a long way since then. But the guiding principles remain the same - aim to make a difference through leveraging technological excellence by way of building partnerships with strong and vibrant local partners,
around the globe.

GLOBAL REACH – LOCAL PARTNERSHIPS

The combination of worldwide scale and local insight gives the organisation solid foundations on which to grow. Good internal and external communication between the partners and the centre will help ensure long-term prosperity. The organisation nurtures the key values of customer, performance, innovation and sense of urgency in the way we work.

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 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.44.93
UK Pound	1	Rs.72.43
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		68

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.