Business information report

1. Summary Information

		Country	India
Company Name	PETRO ARALDITE PRIVATE LIMITED	Principal Name 1	Mr. Asit Baran Adhikari
Status	Moderate	Principal Name 2	Mr. Krishnan Kandaswamy
		Registration #	11-104393
Street Address	5^th Floor, Building No. 10, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India
Established Date	10.12.1996	SIC Code	--
Telephone#	91-22-28270160/40951556	Business Style 1	Manufacturer
Fax #	91-22-28270162/56975237/40951556	Business Style 2	Dealers
Homepage	www.huntsman.com	Product Name 1	Basic Liquid Resins
# of employees	80 (Approximately)	Product Name 2	Solid Resins
Paid up capital	Rs.570,000,000/-	Product Name 3	Formulation
Shareholders	Foreign holdings 76.00% Bodies Corporate – 24.00%	Banking	HSBC Bank
Public Limited Corp.	--	Business Period	15 years
IPO	--	International Ins.	--
Public Enterprise	--	Rating	B (32)
Related Company
Relation-	Country	Company Name
Holding Company	Luxembourge	Vantico International Sarl
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	793,490,000	Current Liabilities	409,969,000
Inventories	254,217,000	Long-term Liabilities	363,062,000
Fixed Assets	458,453,000	Other Liabilities	51,330,000
Deferred Assets	0	Total Liabilities	824,361,000
Invest& other Assets	0	Retained Earnings	111,799,000
		Net Worth	681,799,000
Total Assets	1,506,160,000	Total Liab. & Equity	1,506,160,000
Total Assets (Previous Year)	1,392,210,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	2,660,630,000	Net Profit	154,980,000
Sales(Previous yr)	2,743,710,000	Net Profit(Prev.yr)	52,278,000

MIRA INFORM REPORT

Report Date :

10.11.2011

IDENTIFICATION DETAILS

Name :	PETRO ARALDITE PRIVATE LIMITED
Registered Office :	5^th Floor, Building No. 10, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.12.1996
Com. Reg. No.:	11-104393
Capital Investment / Paid-up Capital :	Rs.570.000 Millions
CIN No.: [Company Identification No.]	U24110MH1996PTC104393
TAN No.: [Tax Deduction & Collection Account No.]	MUMP09084F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Dealers of Basic Liquid Resins, Solid Resins and Formulation.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 2700000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

INFORMATION PARTED BY

Name :	Mr. Chandra Harsh
Designation :	Financial Executive
Contact No.:	91-22-40951556
Date :	08.11.2011

LOCATIONS

Registered Office :	5^th Floor, Building No. 10, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-28270160/40951556
Fax No.:	91-22-28270162/56975237/40951556
E-Mail :	rayomand_sabawall@huntsman.com asit_adhikari@hutsman.com
Website :	www.huntsman.com
Factory :	Manali Express Highway, Manali, Chennai – 600068, Tamilnadu, India
Tel. No.:	91-44-5940084-89/25940084/25940085/25940086
Fax No.:	91-44-59400808

DIRECTORS

As on 27.09.2010

Name :	Mr. Thukaram Ravindran
Designation :	Director
Address :	APPEARS 2258, Abhirami H Block, Opposite Kathiran Colony, Anna Nagar, Chennai – 600040, Tamilnadu, India
Date of Birth/Age :	25.09.1953
Date of Appointment :	02.09.2008
DIN No. :	01731887

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	25/09/2008	2/9/2008	-	Active	NO

Name :	Mr. Harald M Wiedeman
Designation :	Director
Address :	Blasiring 16, Weil AM Rhien-79576, Germany
Date of Birth/Age :	08.07.1959
Date of Appointment :	09.09.2010
DIN NO:	03196346

Other Directorship:

S.No.	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
1	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Director	27/09/2010	9/9/2010	-	Active	NO
2	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	27/09/2010	9/9/2010	-	Active	NO

Name :	Stuart David Foster
Designation :	Director
Address :	Weichelmattstrasse 58 CH 4103, Bottmingen 4103, Switzerland
Date of Birth/Age :	29.08.1950
Date of Appointment :	04.09.2009
DIN NO:	02782980

Other Directorship:

S.No.	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
1	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Director	25/09/2009	4/9/2009	-	Active	NO
2	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	29/09/2009	4/9/2009	-	Active	NO

Name :	Mr. Patric Peter Verraes
Designation :	Director
Address :	Annegijs Boslaan, Overijse-3090, Belgium
Date of Birth/Age :	20.09.1972
Date of Appointment :	09.09.2010
DIN NO:	03155820

Other Directorship:

S.No.	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
1	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Director	27/09/2010	9/9/2010	-	Active	NO
2	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	27/09/2010	9/9/2010	-	Active	NO
3	U24100GJ2010PTC062014	Huntsman Performance Products (India) Private Limited	Additional director	2/4/2011	2/4/2011	-	Active	NO

Name :	Mr. Rayomand P Sabawalla
Designation :	Director
Address :	Ralph Gideon Jaari Building, Med 73, Flat V 517, 500 Jabl Ali 196942, Dubai, UAE
Date of Birth/Age :	31.05.1977
Date of Appointment :	09.09.2010
DIN NO:	03098056

Other Directorship:

S.No.	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
1	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Whole-time director	2/12/2010	27/07/2010	-	Active	NO
2	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	27/09/2010	9/9/2010	-	Active Bottom of Form

Name :	Mr. Raamakrisnan Govindraman
Designation :	Director
Address :	Plot No. 24, Ekambarm 2, Main Road, Udaya Nagar, ETN Porur, Chennai-600116, Tamilnadu, India
Date of Birth/Age :	31.08.1971
Date of Appointment :	09.09.2010
DIN NO:	03156002

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Whole-time director	2/12/2010	9/9/2010	-	Active	NO

Name :	Mr. Asit Baran Adhikari
Designation :	Director
Address :	Mayfair Gardens, 10^th Floor, Flat No. 10005, Azad lane, Off S V Road, Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	21.07.1954
Date of Appointment :	22.03.2001
Date of Ceasing:	09.09.2010
DIN No. :	00179376

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	22/03/2001	22/03/2001	9/9/2010	Active	NO
2	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Managing director	20/03/2006	20/03/2006	19/07/2010	Active	NO

Name :	Mr. Krishnan Kandaswamy
Designation :	Director
Address :	11 Sunshine Villa, Vikhroli Village, Vikhroli (East), Mumbai – 400079, Maharashtra, India
Date of Birth/Age :	05.01.1962
Date of Appointment :	22.03.2001
Date of Ceasing:	23.07.2010
DIN No. :	00355198

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	22/03/2001	22/03/2001	23/07/2010	Active	NO
2	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Whole-time director	30/09/2006	27/12/2005	23/07/2010	Active	N

Name :	Mr. Nagarajan Venkatraman Thiagarajan
Designation :	Director
Address :	4A Gautama 85 ,7^th A Venue Ashok Nagar, Chennai – 600083, Tamilnadu, India
Date of Birth/Age :	29.10.1961
Date of Appointment :	13.03.2001
Date of Ceasing:	25.06.2010
DIN No. :	00215308

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Whole-time director	13/03/2001	13/03/2001	25/06/2010	Active	NO

Name :	Mr. Parthiban Chandrasekara
Designation :	Director
Address :	Shamrock Apartments, 126 Sant Home High Road, Sant Home, Chennai – 600022, Tamilnadu, India
Date of Birth/Age :	01.08.1965
Date of Appointment :	26.06.2007
Date of Ceasing:	30.09.2010
DIN No. :	01661326

Other Directorship:

S.No.	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
1	U24110MH1996PTC104393	Petro Araldite Private Limited	Nominee director	26/06/2007	26/06/2007	30/09/2010	Active	NO

Name :	Mr. Andrea Jayne Wykman
Designation :	Director
Address :	Tellerweg 22, Binningen – 4102, Great Britian
Date of Birth/Age :	07.08.1973
Date of Appointment :	17.03.2008
Date of Ceasing:	09.09.2010
DIN No. :	02035704

Other Directorship:

S.No.	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
1	U24132MH2000PTC126012	Huntsman Advanced Materials (India) Private Limited	Director	25/09/2008	17/03/2008	9/9/2010	Active	NO
2	U24110MH1996PTC104393	Petro Araldite Private Limited	Director	25/09/2008	17/03/2008	9/9/2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Chandra Harsh
Designation :	Financial Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Tamilnadu Petro Products Limited, India	1368000
Vantico International Sarl, Luxembourge	4332002
Total	5700002

As on 27.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	76.00
Bodies corporate	24.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Dealers of Basic Liquid Resins, Solid Resins and Formulation.
Exports :
Products :	Resins and Formulations
Countries :	UAE Hong Kong Iran
Terms :
Selling :	L/C, Cash and Credit (30 days / 60 days / 90 days)
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Basic liquid resins (bulk)	MT	20000	2577
Solid resins	MT	10000	7554
Liquid solutions	MT	4000	4280
Formulations	MT	5000	4234
Basic liquid resin (Repacked)	MT	--	4814
Formulations (Small Packs)	MT	--	1559
Semi finished goods	MT	--	--
Intermediate BLR	MT	--	13828
Intermediate formulations	MT	--	117

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

80 (Approximately)

Bankers :

HSBC Bank

Facilities :

Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Interest free sales tax loan	363.062	354.331
Total	363.062	354.331

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	ASV N Ramana Tower, 52, Venkatnarayana Road, T Nagar, Chennai – 600017, Tamilnadu, India
Tel. No.:	91-44-66885000
Fax No.:	91-44-66885050
Pan No. :	AACFD4815A
Holding Company:	Vantico International Sarl
Ultimate Holding Company:	Huntsman Corporation
Fellow Subsidiaries :	Huntsman Advanced Materials (India) Private Limited Huntsman Advanced Materials (Switzerland) Gmbh Huntsman Advanced Materials, Americas Inc. Huntsman Advanced Materials (Hong Kong) Limited Huntsman Advanced Materials (Argentina) S R Letter Huntsman Advanced Materials (UAE) FZE, Huntsman Advanced Materials Quimica Brazil Limited Huntsman Advanced Materials (Taiwan) Corporation Huntsman Advanced Materials (Singapore) Pte Limited Huntsman Advanced Materials Isando, South Africa Huntsman Advanced Materials (Australia) Pty Limited Huntsman Advanced Materials (Europe) BVBA, Belgium Huntsman (Singapore) Pte Limited Huntsman International India Private Limited Huntsman Advanced Materials (Egypt) Pty. Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.100/- each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5700002	Equity Shares	Rs.100/- each	Rs.570.000 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		570.000	570.000	570.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		111.799	23.286	4.352
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		681.799	593.286	574.352
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		363.062	354.331	348.949
TOTAL BORROWING		363.062	354.331	348.949
DEFERRED TAX LIABILITIES		51.330	56.444	59.314
TOTAL		1096.191	1004.061	982.615
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		458.453	486.470	503.737
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	254.217	323.098	227.656
	Sundry Debtors	86.210	68.403	120.094
	Cash & Bank Balances	433.864	251.059	355.392
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	273.416	263.180	101.064
Total Current Assets		1047.707	905.740	804.206
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	232.580	269.198	240.883
	Other Current Liabilities	85.499	79.761	79.431
	Provisions	91.890	39.190	5.014
Total Current Liabilities		409.969	388.149	325.328
Net Current Assets		637.738	517.591	478.878
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1096.191	1004.061	982.615

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2660.630	2743.710	2464.000
		Other Income	52.347	59.444	38.000
		TOTAL (A)	2712.977	2803.154	2502.000
Less	EXPENSES
		Material	2130.953	2364.568	2327.000
		Employee Costs	40.984	36.907	0.000
		Other Expenses	248.725	267.307	0.000
		TOTAL (B)	2420.662	2668.782	2327.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		292.315	134.372	175.000
Less	FINANCIAL EXPENSES (D)		2.670	0.285	2.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		289.645	134.087	173.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.779	62.403	70.000
	PROFIT BEFORE TAX (E-F) (G)		234.866	71.684	103.000
Less	TAX (H)		79.886	19.406	37.000
	PROFIT AFTER TAX (G-H) (I)		154.980	52.278	66.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		23.286	4.352	(62.000)
Less	APPROPRIATIONS
		Proposed Dividend	57.000	28.500	NA
		Corporate Dividend	9.467	4.844	NA
	BALANCE CARRIED TO THE B/S		111.799	23.286	4.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	398.422	658.135	466.312
		Recovery of freight on exports	11.411	31.435	18.872
	TOTAL EARNINGS		409.833	689.570	485.184
	IMPORTS
		Raw Materials	1132.974	1139.814	1075.805
		Capital Goods	9.286	9.108	2.222
	TOTAL IMPORTS		1142.260	1148.922	1078.027
	Earnings Per Share (Rs.)		27.19	9.17	11.69

Particulars	31.03.2011
Sales Turnover	3000.000

Expected Sales (2011-12) : Rs.3500.000 Millions.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.71	1.86	2.64
Net Profit Margin (PBT/Sales)	(%)	8.83	2.62	4.18
Return on Total Assets (PBT/Total Assets}	(%)	15.59	5.16	7.87
Return on Investment (ROI) (PBT/Networth)		0.34	0.12	0.18
Debt Equity Ratio (Total Liability/Networth)		1.13	1.25	1.17
Current Ratio (Current Asset/Current Liability)		2.55	2.33	2.47

LOCAL AGENCY FURTHER INFORMATION

Operational Highlights:

Sales during the current year has decreased by 3% as compared to the previous year. Material costs as a percentage to sales decreased to 80.0% in the current year as against 86.2% in the previous year.

Employee costs and other expenses were under control during the year resulting in a marginal drop in percentage terms to sales to 10.88% as against 11.00 % in the previous year. As a result of the waiving off the engineering fee charged in the earlier years' by Huntsman Advanced Materials (Gmbh) Switzerland, provision made to the extent of Rs 11.266 Million has been reversed in the current year and included in other income.

EBITDA has increased to Rs 291 Million as against Rs 134 Million in the previous year. The company has also been able to register a cash profit of Rs 290 Million as against Rs 134 Million in the previous year. Net Provision for tax amounted to Rs 80 Million resulting in a profit after tax of Rs 155 Million. The accumulated balance in the profit and loss account of the company is Rs 178 Million comprising of Rs 155 Million profit after tax for the current year and Rs 23 Million as carry forward from the previous year.

Future Outlook:

Company started importing additional ECH requirement over and above TPL contract volume to meet the business demand and the operation is fully stabilized. The new TPL ECH contract is expected to be signed in September 2010 which will ensure smooth stabilized operation of plant.

In Adhesive segment, DIY products demand has gone up in eastern and northern India. Demand for Formulated products is expected to improve in 2010. To meet the growing demand capacity expansion of formulation plant is under way.

Though margins continue to be under pressure, with revival of economy and return of GDP growth company expects to regain its volume and market share. Fixed Costs control will be biggest challenge.

Contingent Liabilities:

Particular	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Tamilnadu General Sales Tax Act, 1959	9712.000	9712.000
Central Sales Tax Act, 1956	38.000	38.000
Tamilnadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990	2307.000	2307.000
Income Tax Act, 1961	0.000	0.000

Fixed Assets:

• Factory buildings
• Plant and machinery
• Office equipment
• Computers
• Furniture and fittings
• Vehicles
• Temporary structures

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.49.78
UK Pound	1	Rs.80.10
Euro	1	Rs.68.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		32

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.