MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	SULPHUR MILLS LIMITED
Registered Office :	604 / 605, 6^th Floor, 349-Business Point, 6^th Floor, Western Express Highway, Andheri (East), Mumbai – 400 069, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.07.1960
Com. Reg. No.:	11-11752
Capital Investment / Paid-up Capital :	Rs.1.859 Millions
CIN No.: [Company Identification No.]	U24110MH1960PLC011752
TAN No.: [Tax Deduction & Collection Account No.]	MUMS35159F MUMS36288A
PAN No.: [Permanent Account No.]	AABCS8736K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Sellers of Sulphur Powder, Liquid Formulations and other Pesticides.
No. of Employees :	350 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 4770000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. financial position of the company is appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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/ Head Office :	604/ 605, 6^th Floor, 349-Business Point, 6^th Floor, Western Express Highway, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-66772551 / 43452222
Fax No.:	91-22-66910308 / 43452245
E-Mail :	sml@sulphurmills.com shetty_02@rediffmail.com
Website :	www.sulphurmills.com
Corporate Office :	303 / 304, T. V. Estate, S. K. Ahire Marg, Worli, P. O. Box. No. 19176, Mumbai – 400025, Maharashtra
Tel. No.:	91-22-24932026 / 24937685 / 24938936
Fax No.:	91-22-24939586
E-Mail :	sml@sulphurmills.com
Website :	http://www.sulphurmills.com
Factory :	M.I.D.C., Plot No. 8, Turbhe Naka, Thane – Belapur Road, Navi Mumbai, Maharashtra
Tel No.:	91-22-27681513
Branch Office :	Located at :- 309, Meghdoot, Nehru Place, New Delhi – 110 019, India 1/8/144, Prenderghast Road, P. B. No. 2009, Secunderabad – 500 003, Andhra Pradesh, India 541, N.S.R. Road, Saibaba Colony, Coimbatore - 641011, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Deepak P. Shah
Designation :	Managing Director
Address :	501, Vandana Apartment, Janki Kutir Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	01.10.1947
Qualification :	B.S. (Mech. Engineering) U.S.A.
Date of Appointment :	01.10.1976
DIN :	00864335
Name :	Mr. Suketu C. Doshi
Designation :	Whole-time Director
Address :	Sneha Kutir, Near Cadbury House, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	29.11.1957
Qualification :	B. Pharm
Date of Appointment :	01.04.1985
DIN :	00639815
Name :	Mrs. Shilpa D. Shah
Designation :	Whole Time Director
Address :	501, Vandana Apartment, Janki Kutir Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	30.11.1947
Date of Appointment :	31.12.1996
DIN :	00639833
Name :	Mr. Binoy S. Shah
Designation :	Whole Time Director
Address :	Shanti Kutir, Next to Citizen Hotel, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	21.03.1969
Date of Appointment :	31.12.1996
DIN :	00679812
Name :	Mr. Bimal D. Shah
Designation :	Whole Time Director
Address :	501, Vandana Apartments, Janki Kutir Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	01.04.1979
Date of Appointment :	01.04.2006
DIN :	00506415
Other Directorships:	Name of the company: Sumil Chemical Industries Private Limited Designation: Director CIN No.: U24110MH1984PTC034472 Name of the company: SM Crop Care Bio-Tech Private Limited Designation:Director CIN No.: U24200MH2005PTC155325

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Deepak P. Shah and Mrs. S. D. Shah and Bimal D. Shah	3264
S. D. Shah and Deepak P. Shah and Bimal D. Shah	1569
Deepak P Shah(HUF)	2960
Komal D. Shah and Deepak P. Shah and Bimal D. Shah	865
Bimal D. Shah and Deepak P. Shah and Komal D. Shah	2150
Pravinkumar K. Jhaveri	2
Suketu C. Doshi and Zarna S. Doshi	100
Zarna S. Doshi and Suketu C. Doshi	52
Siddarth S. Doshi and Zarna S. Doshi	104
Aditi S. Doshi and Zarna S. Doshi	54
Rekha Shah and Binoy Shah	538
Lopa Notani	450
Binoy Shah and Mrs. Himani B. Shah	1187
Shailesh P. Shah (HUF)	2265
Jay P. Shah and Mr. Parimal P. Shah	257
Parimal P. Shah	13
Parul P. Shah	20
Parimal P. Shah (HUF)	46
Ravi P Shah	255
Rajul A. Shah and Mr. Amit C. Shah	100
Amit C. Shah and Mrs. Rajul A. Shah	100
Prakash Himatlal Shah	150
Prakash H. Shah	350
Jayant J. Shah and Hemalara Jayant Singh	575
Mahesh J. Shah and Kunjlata Shah	300
Hema Jitendra Shah and Sudhir Shah	100
H. R. Sheth Estate of Late R. P. Sheth Executor Nandhuver R. Sheth	386
Raymond Narohna	10
Rasesh R. Doshi	36
Rajesh R. Doshi	180
Jagdish K. Jhaveri and Champaben Jhaveri	2
Gaurav Shah and Jayant Jagjivan Shah	50
Viraj Bharat Shah and Bharat Shah	50
Mitul J. Shah and Mahesh Shah	50
Total	18590

Equity Share breakup (Percentage of total equity):- As on 30.09.2010

Category	Percentage
Directors or relatives of director	83.69
Others top 50 sharesholders	16.31
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Sellers of Sulphur Powder, Liquid Formulations and other Pesticides.

Products :

Products Description	Item Code No.
Sulphur	380820-20
Endosulfan	380820-18
Monocrotophos	380810-29
Carbendazim	380892-90
Imidaclopride	380892-90

• Pesticides
• Sulphur Formulations
• Fungicides
• Insecticides
• Herbicides
• Plant Growth Regulator
• Formulations - EC

Exports :

Countries :

• U.S.A.
• South America
• U.K.
• Western and Eastern Europe
• Middle East
• Asia
• Australia

PRODUCTION STATUS (As on : 31.03.2010):-

Particulars	Unit	Installed Capacity
Sulphur Powder	MT	8750
Other Pesticides	MT	8280
Liquid Formulations	KL	1775

GENERAL INFORMATION

No. of Employees :

350 [Approximately]

Bankers :

Bank of India, Turbhe Branch, Plot No. 34, Sector No.24, Mumbai – 400 705, Maharashtra

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Cash Credit From Banks (Including Working Capital Loans) (Secured by hypothecation of stocks, stores, book debts)	0.000	8.049
Overdraft (Secured By Fixed Deposit)	31.229	0.000
Sellers Credit (Secured By LC)	66.992	0.000
Total	98.221	8.049
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Deposit From Director	2.520	2.520
Deposit From Share Holders	1.545	1.545
Deposit From Public	0.200	0.200
Total	4.265	4.265

Banking Relations :

--

Auditors :

Name :

B. D. Jokhakar and Company

Chartered Accountants

Address :

8, Ambalal Doshi Marg, Rajabahadur Mansion, Fort, Mumbai – 400 001, Maharashtra, India

Tel No.:

91-22-22654882 / 22651731

Fax No.:

91-22-22657093

Email :

bdj@bom3.vsnl.net.in

Memberships :

• Thane Belapur Industries Association
• Pesticides Formulators Association of India

Enterprises owned or sinificantly influenced by key management personnel or their relatives

Sumil Chemical Industries Private Limited

CIN: U24110MH1984PTC034472

SM Crop Care Bio-Tech Private Limited

CIN: U24200MH2005PTC155325

Siris Corp Sciences Limited

Subsidiary Company :

Sulphur Chemicals Mills (PTY) Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
26,000	Equity Shares	Rs.100/- each	Rs.2.600 Millions
4,000	8% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.0.400 Million
	Total		Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18,590	Equity Shares	Rs.100/- each	Rs.1.859 Millions

Notes:-

(of the above shares 4,374 equity shares of Rs. 100/- each have been allotted as fully paid up by way of bonus shares by capitalization of general reserve)

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		1.859	1.859	1.859
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1191.105	980.788	709.157
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1192.964	982.647	711.016
LOAN FUNDS
1] Secured Loans		98.221	8.049	45.764
2] Unsecured Loans		4.265	4.265	4.565
TOTAL BORROWING		102.486	12.314	50.329
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1295.450	994.961	761.345
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		112.676	59.635	62.699
Capital work-in-progress		10.814	0.385	0.000
INVESTMENT		45.983	84.235	111.056
DEFERREX TAX ASSETS		7.483	9.577	8.122
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	313.773	250.140	211.011
	Sundry Debtors	564.353	366.731	458.247
	Cash & Bank Balances	631.649	489.289	173.319
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	395.958	234.042	173.093
Total Current Assets		1905.733	1340.202	1015.670
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	130.425	63.336	69.656
	Sundry Creditors	329.702	193.859	233.322
	Provisions	327.112	241.878	133.224
Total Current Liabilities		787.239	499.073	436.202
Net Current Assets		1118.494	841.129	579.468
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1295.450	994.961	761.345

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2021.279	1539.700	1141.354
		Other Income	78.696	134.070	75.946
		TOTAL (A)	2099.975	1673.770	1217.300
Less	EXPENSES
		Raw Material and Components Consumed	1323.350	854.176	643.698
		Manufacturing Expenses	71.420	93.485	53.559
		Employees Remuneration and Benefits	65.427	50.727	67.187
		Administrative, Selling and Distribution Expenses	312.729	326.887	218.069
		Increase / Decrease in Stock	[38.736]	[58.515]	7.656
		TOTAL (B)	1734.190	1266.760	990.169
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		365.785	407.010	227.131
Less	FINANCIAL EXPENSES (D)		12.699	4.313	2.016
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		353.086	402.697	225.115
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.973	8.202	8.426
	PROFIT BEFORE TAX (E-F) (G)		336.113	394.495	216.689
Less	TAX (I)		82.159	91.046	49.273
	PROFIT AFTER TAX (G-I) (J)		253.954	303.449	167.416
	Prior Period Items		[0.139]	6.797	0.120
	Excess / Short provision for taxation		0.000	[0.552]	[13.038]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		39.320	17.321	21.520
Less	APPROPRIATIONS
		Transfer to General Reserve	235.000	249.632	137.500
		Dividend	37.180	32.533	18.590
		Tax on Dividend	6.319	5.530	2.607
	BALANCE CARRIED TO THE B/S		14.636	39.320	17.321
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export Turnover	721.597	747.428	NA
	TOTAL EARNINGS		721.597	747.428	NA
	IMPORTS
		Raw Materials	200.366	168.521	188.560
	TOTAL IMPORTS		200.366	168.521	188.560
	Earnings Per Share (Rs.)		13.65	16.66	8.31

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.09	18.13	13.71
Net Profit Margin (PBT/Sales)	(%)	16.63	25.62	18.98
Return on Total Assets (PBT/Total Assets}	(%)	16.65	28.18	20.09
Return on Investment (ROI) (PBT/Networth)		0.28	0.40	0.30
Debt Equity Ratio (Total Liability/Networth)		0.75	0.52	0.68
Current Ratio (Current Asset/Current Liability)		2.42	2.69	2.33

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND OUT LOOK:

Gross Turnover during the year is `2093.900 millions as against previous year `1616.500 millions, (increase of 29.53 %). Turnover increased by 29.53%. However, the Board of Directors wish that the Company will make more efforts in coming years to tap the sizeable potential for the growth.

EXPORT:

Export of the Company this year is `748.000 millions as against previous year was `769.100 millions, (decrease of 2.74 %).

FUTURE EXPANSION:

The Company is leveraging its technological strengths in safer new generation WDG and SC based products, by expanding its range to include Fertilizers and Nutrient products. Data generation and field trials are underway towards Registration requirements of products to be launched in the future.

PROSPECTS:

The Company will introduce products in both the Fertilizers as well as Nutrients segment to augment its range of Crop Protection Products, thereby diversifying into an additional segment of serving farmers needs, improving crop input portfolios and better utilizing the large country wide network of distribution and dealers. The Directors are of the opinion that the Company can achieve significant benefit by unlocking value in some of the presently under-utilised assets and segregating the care manufacturing activity from these assets.

Contigent liabilities not provided for:

Rs. in millions

Particulars	31.03.2010	31.03.2009
Disputed Statutory claims/levies:
Income Tax matters in disputes/appeals	30.205	28.598
Cess Tax Appeal pending in Thane session court	2.098	2.099
Service Tax Central Excise, Ankleshwar	43.848	0.738
Commissioner of Central Excise, Mumbai	--	0.166
Commissioner Appeals of Central Excise, ANK.III	--	--
Commissioner Appeals of Central Excise, ANK.III	--	--
Commissioner Appeals of Central Excise, Suptdt Preventive - Surat	--	0.308
Jt. Commissioner of Sales Tax (Appeals) II, Mumbai	0.799	--
Commissioner of Central Excise & Customs Surat II	15.742	23.800

Form 8:

Corporate identity number of the company	U24110MH1960PTC011752
Name of the company	SULPHUR MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	604/ 605, 6^th Floor, 349-Business Point, 6^th Floor, Western Express Highway, Andheri (East), Mumbai – 400 069, Maharashtra
This form is for	Modification of charge
Type of charge	Hypothecation
Particular of charge holder	Bank of India, Turbhe Branch, Plot No. 34, Sector No.24, Mumbai – 400 705, Maharashtra
Amount secured by the charge	Rs. 67.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	1) cc as per applicable to aaa rated a/c presently 12.25% per annum 2 )fbp as per rbi guide lines 3) import lc as per rbi guide lines 4) inland as advised by the bank from time to time
Description of the property charged indicating whether it is a charged on	· Plant and Machinery · Stock in Trade
Particulars of the property charged (Including location of the property)	NIL
Charge identification number of the charge to be modified	90243522
Brief description of the instrument modifying the charge under section 135	Supplemental deed of hypothecation
Date of instrument modifying the charge	04.05.2006
Particulars of the present modification	Increase of aggregate limit to Rs 135.000 millions

Corporate identity number of the company	U24110MH1960PLC011752
Name of the company	SULPHUR MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	604/605, 6^th Floor, Business Point, western Express Highway, Andheri (East), Mumbai – 400069, Maharashtra, India
This form is for	Modification of Charge
Type of charge	Hypothecation
Particular of charge holder	Bank of India Turbhe Branch, Plot No. 34, Sector No.24, Mumbai – 400705, Maharashtra, India boiturbhe@vsnl.net
Nature of instrument creating charge	Supplemental Deeds of Hypothecation
Date of instrument Creating the charge	04.05.2006
Amount secured by the charge	Rs.67.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	CC as per applicable to aaa rated A/c presently 12.25% p.a. FBP as per RBI Guide Lines Import LC as per RBI Guide Lines Inland as advised by the Bank from time to time
Particulars of the property charged	Stock in Trade Plant and Machinery
Particulars of the present modification	Increase of Agreement limit to Rs.135.000 Millions

Fixed Assets:

• Leasehold Land
• Land and Machinery
• Factory Building
• Computers
• Office Equipment
• Furniture and Fixture
• Electrical Installation
• Research and Lab Equipment
• Motor Car and Vehicles
• Air Conditioner

WEBSITE DETAILS

PROFILE:

Subject, which started its operation in the early 70’s with a West German Sulphur Processing Plant in proximity to Mumbai, is the first company in the Asian region, 4th in the whole world to branch out into the manufacture of new generation, safer, environment friendly Agro chemical formulations, in the Water Dispersible Granules (WDG), other specialty formulations, Suspension Concentrate, Micro emulsion, Capsulated Suspension forms.

It is the endeavor to serve the nation by serving the farmers with quality products and necessary guidance. In the process they aim to increase their awareness and knowledge about issues pertaining to plant protection and provide them the latest and world class formulations of agrochemicals.

INTERNATIONAL BUSINESS

The company’s products are exported to over 80 countries all over the world including some of the agriculturally most advanced areas such as U.S.A., U. K., Switzerland, Australia, Europe, etc. and holds several International Registrations including EPA (USA), (91/414) in Europe and APVMA in Australia.

DOMESTIC BUSINESS (INDIA)

In India the company markets over 40 products under the REAP brand, operating through 18 depots, and a country-wide distributor and dealer network apart from that it also supplies WDG's and SC's to large Indian Agro Chemical companies for their distribution in India.

MANUFACTURING AND R AND D:

SML currently has three manufacturing locations in India with one new manufacturing facilities coming up in near future. The investment in active manufacturing and formulations offer diverse product range comprising of actives for formulators and formulations for importers and distributors. Over 15 years they have a capacity of manufacturing more than 15,000 MT for all different types of Water Dispersible Granules (largest in Asia), more than 6 million litres of Suspension Concentrates and large capacities for Wet table Powders and Emulsion Concentrate's. The huge capacity gives them an economy of scale and makes them one of the largest, most diverse and economic manufacturer of Water Dispersible Granules and Suspension Concentrates worldwide. They also manufacture other specialty formulations such as OD, ME, Tablets, new strategic combination and new formulations for public health / house hold.

Sulphur mill has recently introduced Fertis (Patent Pending). A new Sulphur based specialty WDG Fertilizer, only one in its kind.

REGISTRATION AND PROPRIETORY DATA:

SML holds 4 different 9 (3) – original registrations for the products Cosavet DF, Top gun DF, Pearl and Flosul for sale in India for WDG's and SC's. Internationally SML has developed GLP data for registration in different countries.

Data developed on the actives and formulations is available for registration for the products in different countries for which they can prepare a complete dossier as per registration requirements of pesticides.

SML with confidentialities in place has manufacturing and marketing tie-ups for their various WDG's and SC's in India and for many foreign multinationals and large Indian Companies.

New Molecules and Safer Formulation Research/ New R and D Formulation Lab./ New Manufacturing Facility/ Public Health/ House Hold Formulations:

SML has a dual pronged approach, whereby they try to get newer range of actives, which are off patent giving the distributors a larger range of products to work with. They then take a step further to develop different molecules in newer and safer formulations. They look forward for an opportunity to develop a molecule that is sold in safer formulation forms in the market. SML is a fast growing company with advance technologies to meet the needs of today's agriculture.

A new plant to further increase capacity for WDG / SC and other formulations is in the upcoming.   A new formulation R and D Lab. will be up running in 2009 and will be dedicated pvt formulation research laboratory.

The group has introduced products in new formulations for Public Health / House hold insecticides and is developing additional data required for registration for the same.

SPECIALITY CONTRACT/ TOLL MANUFACTURING:

They specialize in Toll / Custom manufacturing specialized High Technology based formulation for various multinationals and Largest Indian Companies. The company can take up contracts with confidentiality of developing new formulation of various actives and combination formulations of various classes of actives in newer formulations.

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.44.82
UK Pound	1	Rs.72.83
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	6
--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		63

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	-

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