MIRA INFORM REPORT

Report Date :

28.03.2011

IDENTIFICATION DETAILS

Name :	ICICI SECURITIES PRIMARY DEALERSHIP LIMITED

Formerly Known As :	ICICI SECURITIES AND FINANCE COMPANY LIMITED

Registered Office :	ICICI Centre, H T Parekh Marg, Churchgate, Mumbai – 400020, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	22.02.1993

Com. Reg. No.:	131900

CIN No.: [Company Identification No.]	U72900MH1993PLC131900

TAN No.: [Tax Deduction & Collection Account No.]	MUMI01994G

PAN No.: [Permanent Account No.]	AAACI0995H

Legal Form :	Private Limited Liability Company

Line of Business :	Securities Investment and Trading Underwriting Portfolio Management Services

RATING & COMMENTS

MIRA’s Rating :

A (59)

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 22482160

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and reputed company having fine track. General financial position is good. Director are reported as experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Management Non Co-operative [Name not disclosed]

LOCATIONS

Registered Office :	ICICI Centre, H T Parekh Marg, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22882460/70, 22777600
Tel No.:	91-22-22845572
E-Mail :	prachiti_lalingkar@isecpd.com thomas_dsoza@isecltd.com vanessa_rajan@isecltd.com
Website :	www.icicisecuritiespd.com

Chennai Office :	ICICI Bank Towers, 2nd Floor, East Wing, Plot No. 24, South Phase I, Ambattur Industrial Estate, Chennai – 600058, Tamilnadu, India
Tel. No.:	91-44 - 3051 6612/6281/6613/6275, 3051 6614/6223
Fax No.:	91-44 - 3051 6280

New Delhi Office :	ICICI Bank Towers, 3rd floor, NBCC Place, North Tower, Pragati Vihar, Bisham Pitamah Marg, Lodi Road, New Delhi - 110 003, Delhi, India.
Tel. No.:	91-11- 24390000

Factory 1 :	2B, Gorky Terrace, Kolkatta, West Bengal - 700 017, India.
Tel. No.:	91-33-22832209

DIRECTORS

AS ON 22.06.2010

Name :	Mr. Narayanan Srinivasa Kannan
Designation :	Director
Address :	Plot No.204, Kalpataru Horizon, S K Ahire Marg, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	30.06.1965
Date of Appointment :	01.05.2009

Name :	Mr. Uday Madhav Chitale
Designation :	Director
Address :	167-C, Poonawadi Dr. Ambedkar Road, Dadar East, Mumbai – 400014, Maharashtra, India
Date of Birth/Age :	20.10.1949
Date of Appointment :	11.10.2005

Name :	Mr. Murugappan Alagappan
Designation :	Director
Address :	Southlands, 177, Colaba Road, Mumbai – 400005, Maharashjtra, India
Date of Birth/Age :	16.09.1967
Date of Appointment :	17.07.2007

Name :	Ms. Vishakha Vivek Mulye
Designation :	Director
Address :	A-303, Atria Akruti Niharika Complex, Prof. N S Phadke Marg, Andheri, Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	04.12.1969
Date of Appointment :	07.09.2007

Name :	Mr. Subir Sudhirchandra Saha
Designation :	Director
Address :	Flat No.C-401, Anmol Opp. Patel Auto, S V Road, Goregaon, Mumbai – 400062, Maharashtrra, India
Date of Birth/Age :	15.11.1970
Date of Appointment :	17.07.2007

Name :	Mr. Prasanna Balchander
Designation :	Director
Address :	1105, Tower B, Ashok Towers, Dr. S S Rao Road, Parel, Mumbai – 400012, Maharashtra, India
Date of Birth/Age :	06.06.1970
Date of Appointment :	28.06.2008

Name :	Mr. Sundaram Gopalaiyer
Designation :	Director
Address :	Plot No.202, Royal Crest, Plot No.31, Shridhar Palace – A C H S Lokmanya Tilak Vasahat Road, Road No.3, Dadar East, Mumbai – 400013, Maharashtra, India
Date of Birth/Age :	12.05.1965
Date of Appointment :	15.01.2009

KEY EXECUTIVES

Name :	Mr. Prachiti Deepak Lalingkar
Designation :	Secretary
Address :	901, B Wing, Prathamesh Towers, M M G S Marg, Dadar East, Mumbai – 400014, Maharashtra, India
Date of Birth/Age :	28.09.1984
Date of Appointment :	01.07.2010

Name :	Mr. Angarika Sangram Baviskar
Designation :	Director
Address :	A-4, Vikas Building, Prof. M N Kale Marg, Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	21.07.1970
Date of Appointment :	04.07.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.06.2010

Names of Shareholders		No. of Shares
Subir Sudhirchandra Saha		1
V Harikrishnan		1
ICICI Bank Limited, Mumbai		1
Murugappan Alagappan		1
Surajprakash Bakshi		1
Ladha S Anil		1
Prasanna Balchander		1
ICICI Bank Limited, Mumbai		1
Total		8

Debentures AS ON 22.06.2010

Names of Debentures		No. of Shares
Templeton India Income Opportunities Fund (TIIOF), Mumbai		25
Shriram Life Insurance Company Limited – Policy Holder Fund, Mumbai		02
ICICI Prudential Life Insurance Company Limited, Mumbai		20
National Hydro Electric Power Corporation Limited Employees Provident Fund, Haryana		03
Deutsche Trustee Services (India) Private Limited Account DWS Fixed Term Fund Services – 43, Mumbai		10
Sunderam BNP Paribas Mutual Fund Account Sunderam Protection Oriented Fund Services 1-5 years, Mumbai		01
Sunderam BNP Paribas Mutual Fund Account Sunderam BNP Paribas FTP - Y, Mumbai		09
Reliance General Insurance Company Limited, Mumbai		05
The Federal Bank Limited, Mumbai		10
State Bank of Hyderabad, Mumbai		25
Syndicate Bank , Mumbai		10
Bank of India , Mumbai		15
HDFC Standard Life Insurance Company Limited , Mumbai		25
Reliance General Insurance Company Limited, Mumbai		10
Birla Sun Life Trustee Company Private Limited Account Birla Sun Life Capital Protection Oriented FD – Series I, Mumbai		50
HDFC Standard Life Insurance Company Limited, Mumbai		20
Reliance General Insurance Company Limited, Mumbai		10
Canara Robeco Mutual Fund Account Canara Robeco Short Term Fund , Mumbai		05
Canara Robeco Mutual Fund Account Canara Robeco monthly Income Plan, Mumbai		15
Canara Robeco Mutual Fund Account Canara Robeco Income, Mumbai		05
Kotak Mahindra Trustee Company Limited Account Kotak Mahindra Bond Short Term Plan , Mumbai		10
Kotak Mahindra Trustee Company Limited Account Kotak Mahindra Income Plus , Mumbai		15
Kotak Mahindra Trustee Company Limited Account Kotak FMP24M Series, Mumbai		20
Sunderam BNP Paribas Mutual Fund Account Sunderam BNP Paribas Flexible Fund Short Term Plan , Mumbai		30
Sunderam BNP Paribas Mutual Fund Account Sunderam BNP Paribas monthly Income Plan		05
Total		355

AS ON 22.06.2010

Category	Percentage
Nationalised and Other Bank	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Securities Investment and Trading
Underwriting
Portfolio Management Services

GENERAL INFORMATION

No. of Employees :

Not Divulged by the management

Bankers :

Not Available

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Collateralised Borrowings (Secured by pledge of Government securities of Face Value Rs. 2,407.400 millions) (Previous year Rs. 5,417.400 Millions)	2073.650	5338.530
Total	2073.650	5338.530

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Subordinated Bonds issued as Tier III Capital (Due within one year Rs. 100,000.00 thousands [Previous year Rs. 700,000.00 thousands]) Subordinated Bonds issued as Tier II Capital (Due within one year Rs. Nil [Previous year Rs. Nil]) Inter-Corporate Borrowings (Due within one year Rs. 2,500,000.00 thousands [Previous year Rs. 360,000.00 thousands]) Money at Call, Short Notice and Term - From Banks Commercial Paper Borrowings - Short Term - From Banks - From Others Floating Rate Debentures (Redeemable at par by April 2009) 6.50% Debentures 2009 (Redeemable at par by June 2009) 6.75% Debentures 2009 (Redeemable at par by April 2009) 7.05% Debentures 2009 (Redeemable at par by April 2009) Floating Rate Debentures (Redeemable at par by June 2009)	2200.000 500.000 2500.000 5640.000 597.940 11330.100 0.000 0.000 0.000 0.000 0.000	800.000 500.000 360.000 10250.000 743.595 1244.765 100.000 500.000 419.000 419.000 2051.000
Total	22768.040	17387.360


Banking Relations :	--

Auditors :
Name :	Chartered Accountant
Address :

Holding Company :	ICICI Bank Limited

Fellow Subsidiaries :	– ICICI Securities Limited – ICICI Lombard General Insurance Company Limited – ICICI Prudential Life Insurance Company Limited – ICICI Home Finance Company Limited – ICICI Venture Funds Management Company Limited

Associates:	ICICI Foundation for Inclusive Growth

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100000/- each	Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15634	Equity Shares	Rs.100000/- each	Rs.1563.400 Millions

Notes:

Of the above, 15,634 (Previous year 15,634) Equity Shares of Rs.100,000 each fully paid are held by ICICI Bank Limited (the Holding company) and its nominees.

The Company bought back Nil (Previous year- 576) Equity Shares at Rs.Nil (Previous year Rs.1.013 Millions) per share aggregating to Rs. Nil (Previous year Rs.583.488 Millions).

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		1563.400	1563.400	1621.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4057.140	3701.230	3091.420
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5620.540	5264.630	4712.420
LOAN FUNDS
1] Secured Loans		2073.650	5338.530	3139.050
2] Unsecured Loans		22768.040	17387.360	14130.050
TOTAL BORROWING		24841.690	22725.890	17269.100
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		30462.230	27990.520	21981.520

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		23.230	31.770	39.400
Capital work-in-progress		13.530	0.000	3.920

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		23.060	31.770	52.590

CURRENT ASSETS, LOANS & ADVANCES
	Interest Accrued	176.700	234.350	255.360
	Securities held as stock in trade	23312.850	24587.660	19999.500
	Sundry Debtors	10727.900	8249.860	819.890
	Cash & Bank Balances	506.970	305.880	370.220
	Loans and Advances	4354.860	1621.580	2591.950
Total Current Assets		39079.280	34999.330	24036.920
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.700	63.710	11.080
	Other Current Liabilities	8518.780	6876.630	2068.060
	Provisions	122.390	131.130	72.170
Total Current Liabilities		8676.870	7071.470	2151.310
Net Current Assets		30402.410	27927.860	21885.610

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		30462.230	27990.520	21981.520

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Services	212.620	283.250	509.250
		Interest income	2448.070	3089.500	2660.500
		Profit /(Loss) on Securities	242.390	3880.260	1962.660
		Other Income	308.960	36.940	39.950
		TOTAL	3212.040	7289.950	5172.360

Less	OPERATING EXPENDITURE
	Financial Charges and Operating Expenses		1428.240	2393.470	2481.330
			1783.800	4896.480	2691.030

Less	EXPENSES
		Payments to and Provisions for Employees	484.510	534.620	416.310
		Establishment and Other Expenses	131.130	172.080	147.660
		Depreciation	9.560	13.090	19.630
		TOTAL	625.200	719.790	583.600

	PROFIT BEFORE TAX		1158.600	4176.690	2107.430

Less	TAX
	Current income-tax		301.00	1432.000	744.000
	Deferred tax		7.830	21.700	(35.520)
	Fringe Benefit tax		0.000	1.750	2.100

	PROFIT AFTER TAX		849.770	2721.240	1396.850

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		452.800	444.720	263.460

	Amount available for appropriations		1302.570	3165.960	1660.310

	Transfer to Special Reserve		169.950	544.250	279.370
	Transfer to General Reserve		84.980	272.120	139.690
	Proposed Dividend		54.720	54.720	0.000
	Utilised towards Buyback of Shares		0.000	311.250	0.000
	Interim Dividend		367.400	1300.500	680.820
	Corporate Dividend Tax		71.740	230.320	115.710

	BALANCE CARRIED TO THE B/S		553.780	452.800	444.720

	Earnings Per Share (Rs.)		54353.97	170899.96	86172.12

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

31.03.2008

Sundry Creditors for Expenses

35.700

63.710

11.080

INDUSTRY OVERVIEW

India’s economy emerged from slowdown in fiscal 2010 as higher government spending and easy monetary policy conditions led to a revival in domestic demand and an increase in industrial activity. According to advance estimates by the CSO, the economy is expected to record a growth of 7.2% in fiscal 2010 as compared to 6.7% in fiscal 2009. During fiscal 2010, the revival in capital markets and ample liquidity in domestic money markets ensured adequate flow of financial resources to the corporate sector. Given the signs of firm economic recovery, the Reserve Bank of India (RBI) began a gradual normalisation of monetary conditions during the latter half of fiscal 2010. Starting October 2009, RBI raised the SLR requirement for banks by 1% of NDTL, increased the CRR by 75 bps and raised the LAF rates by 25 bps.

During the second half of fiscal 2010, inflationary pressures emerged with headline Wholesale Price Index (WPI) inflation rising to 9.89% in February 2010 from -1.01% in June 2009. The sharp rise in inflation was driven by prices of agricultural commodities, following the impact of below normal monsoons. The pressure on WPI was further exacerbated as prices of administered fuels were raised twice during the year. Inflationary pressures, which were limited to few commodity groups initially, assumed a generalised nature by the last quarter of fiscal 2010. Core inflation, as measured by non-food manufacturing WPI inflation increased to 4.2% in February 2010 after touching a low of -2.5% in August 2009. In international markets, commodity prices moved up during fiscal 2010 in line with the increase in asset markets. The bulk of the increase in commodity prices occurred in the first half of fiscal 2010 with prices remaining range bound during the October 2009-March 2010 period.

In India, non food credit grew by a modest 16.9% in fiscal 2010. Credit off take picked up in second half of fiscal 2010 after reaching a low of 10.3% on a year-on-year basis in early November 2009. The current account deficit started widening from second quarter of fiscal 2010 onwards, reflecting the growth differential between India and rest of the world. While the balance of payments (BoP) returned to surplus in the first three quarters of fiscal 2010 compared to a BoP deficit in fiscal 2009, the surplus is estimated to have widened in the last quarter of fiscal 2010 given the strengthening of the rupee in this period. RBI maintained adequate liquidity in the banking system for a large part of the year with withdrawal of excess liquidity from the second half of fiscal 2010 to contain inflationary pressures.

During fiscal 2010, the bond markets witnessed a record government borrowing programme. However, government bond yields fell sharply at the beginning of fiscal 2010 as large redemptions led to replacement demand from investors. The yield on 10 year benchmark security fell from 7.08% at the end of fiscal 2009 to 6.10% in April 2009. Subsequently, given the borrowing programme, increase in inflationary pressures and reversal of monetary policy measures, bond yields moved up to a peak of 8% in March 2010 before closing the fiscal at 7.85%. The rise in bond yields in first half of fiscal 2010 was largely due to supply factors as demand-supply imbalance and extra borrowings weighed on the market. In the first half of fiscal 2010, the borrowing programme as well as the rise in bond yields was calibrated by RBI by way of judicious management of the borrowing calendar as well as direct intervention in the market via OMO purchases. While OMO purchases in first half of fiscal 2010 was in line with RBI’s monetary stance, RBI refrained from such action in the second half of fiscal 2010. Even as supply pressures eased in the third and fourth quarter of fiscal 2010, the bond market had to contend with strengthening domestic recovery, rising inflation and expectations of monetary tightening.

Globally, the Federal Reserve Board (Fed) maintained the Zero Interest Rate Policy for the entire year as the US economy tentatively recovered from a deep recession amid rising unemployment and stagnant housing market. The Fed also eased monetary conditions by expanding its balance sheet size via various lending programs and asset purchases. The European Central Bank cut its policy rates by 50 bps to 1% and also provided long term liquidity facilities at low rates to financial institutions. The Bank of Japan retained its policy rate at 0.1% and continued resorting to quantitative easing measures. The People’s Bank of China reversed some of the monetary easing by raising reserve requirements by 100 bps in early 2010.

OPERATIONAL REVIEW

Fixed Income

During the year, the Company strived to maintain its leadership in the fixed income market despite operating in a difficult environment. Some distinguishing features of the operating environment were the large, regular supply of government securities, uncertainty about the global recovery, sharp recovery in India and China and the uniformly steep yield curves across markets.

The Company traded cautiously in uncertain and volatile conditions in the government securities market. The PD book was successful in using the intermittent short rallies to generate trading gains. The Company successfully met its underwriting and bidding commitments in the primary market and traded actively in the secondary market to achieve an overall turnover in excess of Rs. 2,827.52 billion.

In the corporate bond market the year saw a narrowing of spreads. The 10Y AAA corporate bond spread moved down from 200 bps at the beginning of the year to 95 bps by the end of the year. There was a sharp rally in April 2009 after which the yields increased tracking the movement in the government securities yields. The 10Y AAA corporate bond yield increased to 8.95% by March 2010, largely unchanged from the beginning of the year. The short end yields moved down sharply with the 1Y AAA yields moving down from 7.5% at end of March 2009 to 6.5% by March 2010. Easy liquidity and benign policy rates resulted in the steepening of yield curve. They achieved a turnover of Rs. 154,870.0 million in bonds and Rs. 73,580.0 million in money market instruments in fiscal 2010. In the Interest Rate Swaps market, tight credit lines and ensuing illiquidity spilled over from the fiscal 2009 till the end of the first half of fiscal 2010. Market volumes improved marginally in second half of fiscal 2010. Swaps were actively used to hedge bond positions in an environment of hardening interest rates. Efficient utilisation of capital remained a key focus area for the Company.

The Company commenced trading activity in exchange-traded Interest Rate Futures on the National Stock Exchange of India Limited, following its launch in August 2009. Despite limited interest from market participants in the product, the Company actively contributed to the trading activity and registered a small profit in this segment.

The Company maintained its high level of performance in the area of corporate debt origination through its debt capital market division, with total deal volumes exceeding Rs. 588.00 billion. This enabled the Company to be ranked among the top two in the Prime league tables for the fifth consecutive year. Significant deals included the innovative structuring of the Rs. 13.50 billion Nuclear Power Corporation of India Limited bond issue with a floating rate option which was the first long term floating rate bond in the last five years, maiden bond issues by

ONGC Videsh Limited of Rs. 19.70 billion and Delhi Transco Limited of Rs. 2.00 billion, the largest state guaranteed bond issue for the year by West Bengal Infrastructure Development Finance Corporation Limited of Rs. 10.00 billion and bond issue of Rs. 500.0 million by Cadila Healthcare Limited which they understand to be the first instance of a bond issue secured by trademarks of the company.

Portfolio Management Services

They have been managing the funds belonging to the Coal Mines Provident Fund Organisation (CMPFO), under the Ministry of Coal on a discretionary basis since December 2006. During fiscal 2010, the fund management agreement with CMPFO was renewed.

The Company was appointed as advisors to the Air Force Group Insurance Society and ICICI Bank Limited for their provident funds. The Company was also re-appointed as Advisors to Hindustan Instruments Limited and CESC Limited for their provident fund and to the West Bengal State Electricity Distribution Company Limited for its pension and gratuity funds.

Overall, gross Assets under Management (AUM) on a discretionary basis was at Rs. 415.00 billion at March 31, 2010. The Company is proactively targeting new clients to increase its presence in this line of business.

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.44.78
UK Pound	1	Rs.71.63
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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		59

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.