MIRA INFORM REPORT

Report Date :

07.11.2011

IDENTIFICATION DETAILS

Name :	PLG POWER LIMITED
Formerly Known As :	GOEL AIRSHRINK (INDIA) LIMITED
Registered Office :	11 Pollock Street, 6^th Floor, Kolkata-700001, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.12.1990
Com. Reg. No.:	21-050413
Capital Investment / Paid-up Capital :	Rs.146.436 Millions
CIN No.: [Company Identification No.]	U45302WB1990PLC050413
TAN No.: [Tax Deduction & Collection Account No.]	CALG0160D
PAN No.: [Permanent Account No.]	AAACG9903B
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Solar Photovoltaic Modules.
No. of Employees :	500 (In Office – 20 and In Factory – 480)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1032020
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 Office :	11 Pollock Street, 6^th Floor, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22355526/22215730
Fax No.:	91-33-22215735
E-Mail :	info@plgpower.com gailcal@cal3.vsnl.net.in tirupati@satyam.net.in
Website :	www.plgpower.com
Corporate Office :	139, A-1 Shah and Nahar Industrial Estate, Lower Parel (W), Mumbai-400013, Maharashtra, India.
Tel. No.:	91-22-42309500/24918279/24918277
Fax No.:	91-22-242309505
E-Mail :	info@plgpower.com
Factory :	Plot No. 65/108, Stice, Musalgakn, Sinnar-Shirdi Road, Sinnar-422122, Nasik, Maharashtra, India.
Tel. No.:	91-2551-660400/401/402
Fax No.:	91-2551-660422
E-Mail :	info@plgpower.com sanjay.bhalla@plgpower.com narinder.singh@plgpower.com
International Office:	European Sales and Marketing Office, Olofstrom, Sweden
E-Mail :	marek@plgpower.com hilario@plgpower.com

DIRECTORS

As on 29.09.2010

Name :

Mr. Pradip Kumar Goyal

Designation :

Director

Address :

19, Pollock Street, 4^th Floor, Kolkata-700001, West Bengal, India.

Date of Birth/Age :

02.05.1958

I.T. Pan No:

ADPPG1315C

Date of Appointment :

18.12.1990

Date of Ceasing :

14.10.2011

DIN No. :

00600897

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U45302WB1990PLC050413	Plg Power Limited	Director	18/12/1990	18/12/1990	15/02/2010	Active	NO
U18101WB1992PLC055460	Plg Plast Limited	Director	19/05/1992	19/05/1992	15/02/2010	Active	YES
U01409WB2001PLC093096	Plg Agrotech Limited	Director	10/04/2001	10/04/2001	-	Active	YES
U51109WB1995PTC075597	Plg Solar Power Private Limited	Director	10/07/2006	10/07/2006	-	Active	NO
U30004WB2007PLC116408	Plg Photovoltaic Limited	Director	11/06/2007	11/06/2007	15/02/2010	Active	NO
U74900WB2009PLC133687	S V Breweries Limited	Director	10/03/2009	10/03/2009	-	Active	NO
U74999WB2011PTC159501	Shree Vaibhav Iron Merchant Private Limited	Director	21/02/2011	21/02/2011	14/10/2011	Active	NO

Name :

Mr. Pramod Goyal

Designation :

Director

Address :

19, Pollock Street, 4^th Floor, Kolkata-700001, West Bengal, India.

Date of Birth/Age :

06.09.1960

I.T. Pan No:

AEAPG8307A

Date of Appointment :

18.12.1990

Date of Ceasing :

30.06.2011

DIN No. :

00601507

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U45302WB1990PLC050413	Plg Power Limited	Director	18/12/1990	18/12/1990	-	Active	NO
U18101WB1992PLC055460	Plg Plast Limited	Director	19/05/1992	19/05/1992	-	Active	YES
U01409WB2001PLC093096	Plg Agrotech Limited	Director	10/04/2001	10/04/2001	8/05/2010	Active	YES
U30004WB2007PLC116408	Plg Photovoltaic Limited	Director	11/06/2007	11/06/2007	30/06/2011	Active	NO
U51109WB1995PTC075597	Plg Solar Power Private Limited	Director	19/05/2008	19/05/2008	26/02/2010	Active	NO
U74900WB2009PLC133687	S V Breweries Limited	Director	10/03/2009	10/03/2009	26/02/2010	Active	NO
U51909WB1996PTC077144	Fastner Mercantile Private Limited	Director	10/03/2010	10/03/2010	-	Active	NO
U74999MH2011PTC219208	PLG Innovative Solar Technologies Private Limited	Director	28/06/2011	28/06/2011	-	Active	NO

Name :

Mr. Harsh Vardhan Goyal

Designation :

Director

Address :

Goal House, DD/1, Narayantala VIP Road (E), Kolkata-700059, West Bengal, India.

Date of Birth/Age :

11.02.1979

I.T. Pan No:

AGLPG9126E

Date of Appointment :

05.07.2002

Date of Ceasing :

28.06.2010

DIN No. :

00601549

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U01409WB2001PLC093096	Plg Agrotech Limited	Director	10/04/2001	10/04/2001	-	Active	YES
U45302WB1990PLC050413	Plg Power Limited	Director	5/07/2002	5/07/2002	15/02/2010	Active	NO
U51109WB1995PTC075597	Plg Solar Power Private Limited	Director	5/06/2006	5/06/2006	28/06/2010	Active	NO
U30004WB2007PLC116408	Plg Photovoltaic Limited	Director	11/06/2007	11/06/2007	18/06/2010	Active	NO
U18101WB1992PLC055460	Plg Plast Limited	Director	16/05/2008	16/05/2008	18/06/2010	Active	YES

Name :

Mr. Navneet Goyal

Designation :

Director

Address :

Goal House, DD/1, Narayantala VIP Road (E), Kolkata-700059, West Bengal, India.

Date of Birth/Age :

06.08.1984

I.T. Pan No:

AIFPG9967K

Date of Appointment :

16.05.2008

Date of Ceasing :

18.06.2010

DIN No. :

01937711

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U18101WB1992PLC055460	Plg Plast Limited	Director	16/05/2008	16/05/2008	18/06/2010	Active	YES
U45302WB1990PLC050413	Plg Power Limited	Director	16/05/2008	16/05/2008	19/02/2010	Active	NO
U30004WB2007PLC116408	Plg Photovoltaic Limited	Director	17/05/2008	17/05/2008	18/06/2010	Active	NO
U74900WB2009PLC133687	S V Breweries Limited	Director	10/03/2009	10/03/2009	-	Active	NO
U51109WB1995PTC075597	Plg Solar Power Private Limited	Director	26/02/2010	26/02/2010	-	Active	NO
U74999WB2011PTC159501	Shree Vaibhav Iron Merchant Private Limited	Director	21/02/2011	21/02/2011	-	Active	NO

Name :

Mr. Punit Goyal

Designation :

Director

Address :

Goal House, DD/1, Narayantala VIP Road (E), Kolkata-700059, West Bengal, India.

Date of Birth/Age :

04.07.1984

I.T. Pan No:

AIFPG9966J

Date of Appointment :

16.05.2008

DIN No. :

02147798

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U18101WB1992PLC055460	Plg Plast Limited	Director	16/05/2008	16/05/2008	-	Active	YES
U45302WB1990PLC050413	Plg Power Limited	Director	16/05/2008	16/05/2008	-	Active	NO
U30004WB2007PLC116408	Plg Photovoltaic Limited	Director	17/05/2008	17/05/2008	-	Active	NO
U51909WB1996PTC077144	Fastner Mercantile Private Limited	Director	10/03/2010	10/03/2010	-	Active	NO
U74999MH2011PTC219208	Plg Innovative Solar Technologies Private Limited	Director	28/06/2011	28/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Mr. Purushotam Lal Goyal	125000
Ms. Parmeshwari Devi Goyal	125000
Mr. Pradip Kumar Goel	3718000
Ms. Arati Goel	124900
Mr. Pramod Goel	3500600
Ms. Alka Goel	125000
Mr. Rameshwar Lal Lahoti	100
Total	7718600

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2010

Category	Percentage
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Solar Photovoltaic Modules.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCTION DESCRIPTION
3134	P.P. Mats
NA	Trading of Goods, Investments etc

Exports :

Products :

· Solar Photo voltaic Modules

Countries :

· Europe, Germany, Italy and Spain

Imports :

Products :

· Raw Materials

Countries :

· China

Terms :

Selling :

Cash, Credit and L/C

Purchasing :

Cash, Credit and L/C

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	500 (In Office - 20 and In Factory - 480)
Bankers :	Oriental Bank of Commerce, Overseas Branch, Dalamal Tower, Ground Floor, Nariman Point, Mumbai-400021, Maharashtra, India.

Banking Relations :	--
Auditors :
Name :	Saroj Kumar Swain Chartered Accountant
Address :	8, Ganesh Chandra Avenue, Kolkata-700013, West Bengal, India
Associates/Subsidiaries :	· PLG Plastics Limited · Line of Business : Manufacturing of Plastic Material

CAPITAL STRUCTURE

After 29.09.2010

Authorised Capital : Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.146.436 Millions

As on 29.09.2009

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14643600	Equity Share	Rs.10/- Each	Rs.146.436 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		146.436	77.186
2] Share Application Money		33.255	90.855
3] Reserves & Surplus		78.314	60.801
4] (Accumulated Losses)		0.000	0.000
NETWORTH		258.005	228.842
LOAN FUNDS
1] Secured Loans		578.256	332.126
2] Unsecured Loans		4.470	9.315
TOTAL BORROWING		582.726	341.441
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		840.731	570.283
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		265.938	55.612
Capital work-in-progress		45.602	274.250
Project Pre – Operative Expenses		0.699	0.699
INVESTMENT		0.006	0.006
DEFERREX TAX ASSETS		3.010	2.080
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	585.729	365.427
	Sundry Debtors	65.171	4.798
	Cash & Bank Balances	73.069	29.722
	Other Current Assets	0.000	0.000
	Loans & Advances	122.787	11.300
Total Current Assets		846.756	411.247
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	309.945	169.976
	Provisions	13.264	5.764
Total Current Liabilities		323.209	175.740
Net Current Assets		523.547	235.507
MISCELLANEOUS EXPENSES		1.929	1.929
TOTAL		840.731	570.083

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	1337.468	350.834
		Other Income	3.301	1.339
		TOTAL (A)	1340.769	352.173
Less	EXPENSES
		Trading purchase	787.856	254.644
		Raw Materials Consumed	428.001	32.015
		Manufacturing Expenses	19.729	9.433
		Selling and Distribution expenses	19.970	0.187
		Administrative expenses	27.534	6.064
		Increase/Decrease in stock	(52.533)	17.670
		TOTAL (B)	1230.557	320.013
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		110.212	32.160
Less	FINANCIAL EXPENSES (D)		50.063	19.011
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.149	13.149
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.065	8.187
	PROFIT BEFORE TAX (E-F) (G)		24.084	4.962
Less	TAX (H)		6.571	0.938
	PROFIT AFTER TAX (G-H) (I)		17.513	4.024
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.101	51.077
	BALANCE CARRIED TO THE B/S		72.614	55.101
	Earnings Per Share (Rs.)		2.26	0.52

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	1.30	1.14
Net Profit Margin (PBT/Sales)	(%)	1.80	1.41
Return on Total Assets (PBT/Total Assets}	(%)	2.16	1.06
Return on Investment (ROI) (PBT/Networth)		0.09	0.02
Debt Equity Ratio (Total Liability/Networth)		3.51	2.26
Current Ratio (Current Asset/Current Liability)		2.61	2.34

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	GOEL AIRSHRINK INDIA LIMITED
Presented By	Oriental Bank of Commerce, Overseas Branch, Nariman Point, Mumbai-400021.
1) Date and description of instrument creating the change	Dated 22.03.2005 1) No Instrument deposit o title deeds to create equitable mortgage of immovable property 2) Declaration and undertaking (Both the documents constitute as single charge)
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 4.500 Millions
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	At the request of the borrower the bank has sanctioned aggregate working capital facilities of Rs. 45.000 millions to secure the due repayment of the credit facilities and for interest, compound interest, additional interest, liquidated damages, premia on prepayment, costs, charges, expenses and other monies payable under their respective loan agreement as amended from time to time, at the request of the bank, the borrower has extended the second charge (First charge in favour of Industrial Development Bank of India [IDBI]) on following immovable property of the company. All those Pieces and paaracels of leasehold land admeasuring 20,000 Sq. mtrs being Plot no. 65 in the Sinar Taluka Industrial Co-Operative Estate Limited, Sinar taluka, District Nasik in the state of Maharashtra. The said lot no. 65 has been carved out of Bat nos. 934 within Village Musalgaon, Gram Panchyat Musalgaon, Taluka Sinar, District Nasik, in the state of Maharashtra and is butted and bounded as under: On the East : by Plot No. 105 to 107 and 108/2 On the West : by Road On the North : by Plot No. 66 On the South : by Plot No. 64
4) Gist of the terms and conditions and extent and operation of the charge.	Interest, charges, Commission etc as may be decided by the Bank from time to time. Other terms and conditions as per the loaning documents executed by the borrower company with the bank.
5) Name and Address and description of the person entitled to the charge.	Oriental Bank of Commerce, Overseas Branch, Dalamal Tower, Ground Floor, Nariman Point, Mumbai-400021, 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

This form is for	Creation of charge
Corporate identity number of the company	U45302WB1990PLC050413
Name of the company	PLG POWER LIMITED
Address of the registered office or of the principal place of business in India of the company	11 Pollock Street, 6^th Floor, Kolkata-700001, West Bengal, India.
Type of charge	Immovable property
Number of charge holder(s)	2
Particular of charge holder	Oriental Bank of Commerce, Overseas Branch, Dalamal Tower, Ground Floor, 211, Nariman Point, Mumbai-400021, Maharashtra, India.
E-mail ID	emailroc@rediffmail.com
Nature of description of the instrument creating or modifying the charge	No Instrument – Deposit of Title Deeds
Date of instrument Creating the charge	26.02.2010
Amount secured by the charge	Rs.1360.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest Rate and Penal Interest rate as agreed between the borrower company and the bank from time to time. Terms of payment Repayment, as agreed between the borrower company and the bank from time to time Margin Margin rate, as agreed between the borrower company and the bank from time to time. Extent and Operation of the charge At the request of the borrower company, the banks [lead bank - oriental bank of commerce and joint bank - bank of Maharashtra] by way of consortium finance has sanctioned overall banking limits of Rs. 1360.000 millions against mortgage of the immovable properties i.e. Land and Measuring 14860 sq. mtrs situated, Lying and being in the division, district thane and plot No. 108/2, at Musalgaon, Taluka sinner .
Short particulars of the property charged	Land and Measuring 14860 sq.mtr situated, Lying and being in the division and district thane, subdivision Murbad Plot No. 108/2, T Musalgaon, Taluka Sinner, District: Nashik, situated in Audyogok Sahakari Vasahat maryadit, village Musalgaon.

Fixed Assets:

• Leasehold Land
• Factory Building
• Flat
• Plant and Machinery
• Electric Installation
• Furniture and Fixtures
• Office Equipment
• Vehicles

WEB DETAILS

PLG Power is a vertically integrated company operating in the PV sector since 2008. They are a part of a big, well-established Indian Group, PLG Group, which is almost 100 years old company diversified into numerous businesses in Asia and Middle-East.

Company Overview

PLG Power is a vertically integrated company operating in the PV sector since 2008. They are a part of a big, well-established Indian Group, PLG Group, which is almost 100 years old company diversified into numerous businesses in Asia and Middle-East. PLG Power’s main businesses are:

Manufacturing of high-quality crystalline PV modules (expansion to 150MW by the end of the next year)

Developing and investing in their own PV Power plants in India and Europe (in total over 40MW of projects under development for this and the next year)

Production of polysilicon (the first pilot plant of 3000 MT/ year will be completed in 2011)

PLG Power manufactures and delivers only high quality products. This is the part of company vision and strategy. But not only that, being almost 100 year old family owned group, PLG Power has a heritage and a reputation to live up to and they are very serious about it. As a part of PLG Group, they treat their warranty terms very seriously. They do understand that giving a buyer 10 years of workmanship warranty and 25 years of guaranteed power performance requires a lot of confidence in their product. This confidence is built in PLG Power in a very systematic, professional manner where their quality approach is reflected by raw materials choice, manufacturing equipment choice and their management teams. Please explore this website to find out more about them.

Historical Background

They at PLG are one of India's biggest, well-established corporate houses. They have been associated with the corporations of Exxon Mobil, Shell, BP, Basell, Texaco, Lucky Goldstar, Haifa Basic Oil for more than twenty years. They have been in imports and exports for over thirty years and have been awarded with prestigious laurels, accolades for being the largest exporter and largest importer of the country by the Ministry of Commerce and Industry and Ministry of Finance, Govt. of India.

PLG Group imports petrochemicals worth USD 250 Million annually and is one of the largest importers in the country. PLG Group under its various flagship companies is into Petrochemicals, Plastics, Manufacturing, Flour Mills, Oil Mills, Edible Oil, Financing Blue Chip Companies, Solar PV Modules Manufacturing, Solar Cells (upcoming), Solar Farming, Retailing and Farm Houses.

The group is diversified into various activities with annual turnover of USD 900 million and assets and investments net worth of over 750 million. The PLG Group is serving the nation of India since 1960. More importantly, from the very beginning, PLG has been a family business so for them it is not only about money; it is primarily about family honour and traditions.

MILESTONES

2008

Established 25 MW Crystalline Solar Photovoltaic Module Manufacturing Unit at Sinnar, Nasik (India) with expansion plans of 100 MW by 2010, Commencing Production Dec 2008

2009

Ramping up of capacity to 50 MW: Commencing Production Solar Photovoltaic Module Manufacturing Unit at Sinnar, Nasik (India) of in June 2009

2010

Expansion to 100 MW of Crystalline Solar Photovoltaic Module Manufacturing at Sinnar, Nasik (India)  

Solar Power - The key to a bright future PLG Group of Companies have been serving the nation for last forty years and have global business activities with the broadest presence across the human value chain  

Future Action Plans:

2011: In process of Ramping up to 150MW of Solar module manufacturing unit at Sinnar, Nasik

2011: Establishment of 60MW Solar Cell Manufacturing Unit at Indore expanding to 120 MW by 2012

2012: Production of 1500MT of poly silicon in Gujarat eventually expanding 3000MT by 2013

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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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