MIRA INFORM REPORT

Report Date :

16.11.2011

IDENTIFICATION DETAILS

Name :	GARGI HUTTENES ALBERTUS PRIVATE LIMITED (w.e.f. 01.07.1997)
Formerly Known As :	GARGI HUTTENES ALBERTUS LIMITED
Registered Office :	203, Vasant Vihar Complex, Next to Basant Cinema, Dr. C. Gidwani Road, Mumbai – 400074, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.03.1988
Com. Reg. No.:	11-046413
Capital Investment / Paid-up Capital :	Rs.97.000 millions
CIN No.: [Company Identification No.]	U74999MH1988PTC046413
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Foundry Chemicals and Fluxes.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1550000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – September 30, 2011

Country Name

Previous Rating (30.06.2011)

Current Rating (30.09.2011)

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. Gaurav Kapoor
Designation :	Director

LOCATIONS

Registered Office :	203, Vasant Vihar Complex, Next to Basant Cinema, Dr. C. Gidwani Road, Mumbai – 400074, Maharashtra, India
Tel. No.:	91-22-25563596/ 25563597/ 25562705/ 25580815/ 25564379/ 25201596/ 97
Fax No.:	91-22-25562706/ 25562080/ 25202706/ 3080
E-Mail :	gargi@bom2.vsnl.net.in info@gargi-india.com gargi@gargi-india.com
Website :	http://www.gargi-india.com
Factory :	Plot No.D-360, M.I.D.C., TTC Industrial Area, District Thane, Maharashtra, India

DIRECTORS

As on 13.08.2010

Name :

Mr. Vinod Vishwamitra Kapur

Designation :

Chairman cum Managing Director

Address :

18, Union Park, Chembur, Mumbai - 400071, Maharashtra, India

Date of Birth/Age :

26.10.1943

Qualification :

B.Sc.

Previous Employment:

Gargi Chemicals Private limited for 24 Years

Date of Appointment :

07.03.1988

Election Commission ID No :

MT07047505690

DIN No :

00474054

Other Directorship : 

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110MH1977PTC019480	GARGI CHEMICALS PRIVATE LIMITED	Managing director	5/2/1977	5/2/1977	Active	NO
2	U65990MH1983PTC029733	GARGI HOLDINGS PRIVATE LIMITED	Managing director	6/4/1983	6/4/1983	Active	NO
3	U01110MH1987PTC042674	KARJAT HORTICULTURAL PRIVATE LIMITED	Director	23/02/1987	23/02/1987	Strike off	NO
4	U74999MH1988PTC046413	GARGI HUTTENES ALBERTUS PRIVATE LIMITED	Managing director	7/3/1988	7/3/1988	Active	NO
5	U24100MH1984PTC034540	GAURAV INFRABUILD PRIVATE LIMITED	Director	4/11/1995	4/11/1995	Active	NO
6	U28920MH2000PTC125667	GARGI ENGINEERING ENTERPRISES PRIVATE LIMITED	Managing director	7/4/2000	7/4/2000	Active	NO
7	U72200MH2000PTC130222	GARGI SOFTSYS PRIVATE LIMITED	Director	26/12/2000	26/12/2000	Active	NO

Name :

Mr. Vicky Vishwamitra Kapur

Designation :

Managing Director

Address :

18, Union Park, Chembur, Mumbai - 400071, Maharashtra, India

Date of Birth/Age :

30.10.1952

Qualification :

B.Sc.

Previous Employment:

Gargi Chemicals Private Limited for 24 Years

Date of Appointment :

07.03.1988

Election Commission ID No :

MT07047505748

DIN No :

00474210

Other Directorship : 

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110MH1977PTC019480	GARGI CHEMICALS PRIVATE LIMITED	Managing director	5/2/1977	5/2/1977	Active	NO
2	U65990MH1983PTC029733	GARGI HOLDINGS PRIVATE LIMITED	Managing director	6/4/1983	6/4/1983	Active	NO
3	U24100MH1984PTC034540	GAURAV INFRABUILD PRIVATE LIMITED	Director	14/11/1984	14/11/1984	Active	NO
4	U74999MH1988PTC046413	GARGI HUTTENES ALBERTUS PRIVATE LIMITED	Managing director	7/3/1988	7/3/1988	Active	NO
5	U28920MH2000PTC125667	GARGI ENGINEERING ENTERPRISES PRIVATE LIMITED	Managing director	7/4/2000	7/4/2000	Active	NO
6	U91110MH1996NPL099079	INDIAN RESING MANUFACTURERS ASSOCIATION	Director	16/09/2000	16/09/2000	Active	NO
7	U72200MH2000PTC130222	GARGI SOFTSYS PRIVATE LIMITED	Director	26/12/2000	26/12/2000	Active	NO

Name :

Mr. Klaus Karl Georg Pampel

Designation :

Director

Address :

Wiesenstrasse 23, 40549 Dusseldorf, Germany

Date of Birth/Age :

19.10.1949

Qualification :

B.Sc.

Date of Appointment :

14.02.2005

DIN No :

01762246

Name :

Mr. Gaurav Vinod Kapur

Designation :

Whole Time Director

Address :

18, Union Park, Trombay Road, Chembur, Mumbai – 400 071, Maharashtra, India

Date of Birth/Age :

16.05.1979

Date of Appointment :

01.11.2008

DIN No :

00034397

Other Directorship : 

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110MH1977PTC019480	GARGI CHEMICALS PRIVATE LIMITED	Whole-time director	28/10/2003	28/10/2003	Active	NO
2	U27106MH1981PTC024307	GARGI STEELCHEM PRIVATE LIMITED	Director	1/9/2004	1/9/2004	Active	NO
3	U27310GJ2006PTC048174	GARGI CRYSTAL STEEL CHEM PRIVATE LIMITED	Director	25/04/2006	25/04/2006	Active	NO
4	U24100MH1984PTC034540	GAURAV INFRABUILD PRIVATE LIMITED	Director	20/11/2007	20/11/2007	Active	NO
5	U27107PN2007PTC131045	GARGI MAGNA STEELCHEM PRIVATE LIMITED	Director	29/11/2007	29/11/2007	Active	NO
6	U74999MH1988PTC046413	GARGI HUTTENES ALBERTUS PRIVATE LIMITED	Whole-time director	1/11/2008	1/11/2008	Active	NO
7	U65990MH1983PTC029733	GARGI HOLDINGS PRIVATE LIMITED	Whole-time director	5/8/2011	5/8/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.08.2010

Names of Shareholders	No. of Shares
Huttenes Albertus Chemische Werke Gmbh, Germany	388000
Vinod Kapur	154774
Vicky Kapur	154776
Gargi Holdings Private Limited, India	750
Vishwqamitra Kapur HUF – Karta Shri Vinod Kapur	18178
Vinod Kapur HUF	88000
Vicky Kapur HUF	88000
Gaurav V. Kapur Jointly with Vinod Kapur and Geeta V. Kapur	38750
Varun V. Kapur Jointly with Father Vicky Kapur and Namita V. Kapur	38750
Others	22
Total	970000

As on 13.08.2010

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]		40.00
Directors or relatives of directors		60.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Foundry Chemicals and Fluxes.

Products :

Product Description	ITC Code
P F Resins	39094020
Reaction Initiators	38159000
Refractory Coatings	38160000

· Exothermic Sleeves

· Other Foundry Chemicals

Exports :

Products :

• Foundry Chemicals
• Fluxes Activator

Countries :

• Saudi Arabia
• UAE

Imports :

Products :

• Zicon Flour
• Alcohol

Countries :

• South Africa
• Australia
• Singapore
• Spain
• Saudi Arabia
• Korea
• Netherlands

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Installed Capacity
Foundry Resins, Hardeners and Coatings	30000 TPA

GENERAL INFORMATION

Customers :

v End Users

v OEM’s

No. of Employees :

100 (Approximately)

Bankers :

· Citi Bank N. A., Trent House, 2^nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India

· The Cosmos Co-Operative Bank Limited, Chembur Branch, Richmonds Heights, Plot No.239, Centre Avenue Road, Chembur, Mumbai – 400 071, Maharashtra, India

Facilities :

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Secured Loans
From The Cosmos Cooperative Bank Limited
Term Loans :
Secured by Land, Building and Plant and Machinery	0.000	33.617
Cash and Packing Credit
Secured by hypothecation of stock and book-debts	44.505	21.842
All the aforesaid bank loans/ credits are additionally secured by charge on company’s land and building, plant and machinery at Plot no. D-360, M.I.D.C., Navi Mumbai and Khapoli
From Citi Bank N.A.
Cash Credit / Export Finance / FGBC: Secured by First and pari-passu charge on present and future current assets (Above bank facilities are guaranteed by the Managing Directors)	20.000	20.000
Total	64.505	75.459

Unsecured Loans	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
From Directors	53.704	19.432
From Shareholders and Others	48.969	30.167
Total	102.673	49.599

Citi Bank Cash Credit Limit Rs.60.000 millions

Banking Relations :	--
Auditors :
Name :	J.V. Sanghvi and Company Chartered Accountants
Address :	Office No.1, Namrata – A, 90 Feet Road, Building No.4, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India
Tel. No.:	91-22-32449541
Collaborators :	Huttenes Albertus Chemische Werke Gmbh
Associates :	Gargi Holding Private Limited Gargi Impex Corporation Gargi Steel Chem Private Limited Gaurav Infrabuild Private Limited Gargi Mettallurgical Corporation (Merged with Gargi Chemicals Private Limited) Address : 205, Vasant Vihar Complex, Next to Basant Cinema, Dr. C. Gidwani Road, Chembur, Mumbai - 400 074, Maharashtra, India Tel. No. : 91-22-25563596 / 25563597 / 25562705 / 25580815 / 25564379 Fax No. : 91-22-25562706 / 25562080 E-Mail : gargi@bom2.vsnl.net.in / info@gargi-india.com Website : http://www.gargi-india.com Activity : Act as traders
Group Companies :	Gargi Industries - Division of Gargi Chemicals Private Limited Address : 2, Mercantile Apartments, Next to Basant Cinema, Chembur, Mumbai - 400 074, Maharashtra, India Tel. No. 91-22-25563596 / 97 / 25201396 / 97 Fax No. 91-22-25562706 / 25572080 E Mail : gargi@bom2.vsnl.net.in Website : http://www.gargi-india.com Gargi Engineering Enterprises Private Limited Address : 205, Vasant Vihar Complex, Chembur, Mumbai 400 074, Maharashtra, India Tel No.: 91-22-25201596 / 97 / 25513724 Email: gargi@gargi-india.com Line of Business: Authorized Dealers and Service agent for Kirloskar Pneumatic and Copeland AC and Refrigeration Compressors, Representative Sales and Service Agents for Omega Foundry Machinery Limited, United Kingdom Gargi Crystal Steelchem Private Limited Address: Plot No. 70/B, Phase I, GIDC, Vatva Ahmedabad 382 445, Gujarat, India Tel No.: 91-79-2589335 E-Mail: crystalfdry@gmail.com Gargi Magna Steelchem Private Limited Plot No. 32/33, Sector C, Sri Laxmi Co-Operative Industrial Estate, Hatkanangali 416 109, Maharashtra., India E-mail: klp_gargikop@sancharnet.in Western Refra-Cast Private Limited Address: 4904 and 5, Phase IV, GIDC, Vatva Ahmedabad – 382 445, Gujarat, India Tel. No.: 91-79-25842289/ 25841790 E-Mail: refracast@gmail.com
Subsidiaries :	Gargi Huttenes Albertus Emirates LLC FZC Fujairah Free Zone, Phase 2, P.O. Box 2745, Fujairah, United Arab Emirates Tel : +971 9 2228872 E-Mail : gargi@gargi-india.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.100/- each	Rs.100.000 millions

Note: Increase from Rs.50.000 millions to Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
970,000	Equity Shares	Rs.100/- each	Rs.97.000 millions

Note: of the above share 760000 shares have been allotted as Bonus shares.

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		97.000	97.000	97.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		290.969	273.700	267.506
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		387.969	370.700	364.506
LOAN FUNDS
1] Secured Loans		64.505	75.459	118.325
2] Unsecured Loans		102.673	49.599	53.293
TOTAL BORROWING		167.178	125.058	171.618
DEFERRED TAX LIABILITIES		4.104	1.937	0.686
TOTAL		559.251	497.695	536.810
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		187.515	176.181	66.723
Capital work-in-progress		4.855	2.245	71.369
INVESTMENT		5.166	5.166	5.167
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.929	60.287	76.402
	Sundry Debtors	491.856	386.098	471.827
	Cash & Bank Balances	10.351	30.273	26.263
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.892	19.659	27.947
Total Current Assets		633.028	496.317	602.439
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	245.051	149.449	189.162
	Other Current Liabilities	0.840	0.816	0.778
	Provisions	25.422	31.949	18.948
Total Current Liabilities		271.313	182.214	208.888
Net Current Assets		361.715	314.103	393.551
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		559.251	497.695	536.810

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1681.656	1635.191	1725.244
		Other Income	2.694	0.913	9.288
		TOTAL (A)	1684.350	1636.104	1734.532
Less	EXPENSES
		Cost of Materials	1392.737	1362.922	1400.231
		Manufacturing Expenses	47.900	40.567	41.290
		Other Expenses	106.244	106.967	102.168
		TOTAL (B)	1546.881	1510.456	1543.689
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		137.469	125.648	190.843
Less	FINANCIAL EXPENSES (D)		16.018	24.690	20.407
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		121.451	100.958	170.436
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.602	13.841	8.083
	PROFIT BEFORE TAX (E-F) (G)		105.849	87.117	162.353
Less	TAX (H)		36.603	31.048	56.887
	PROFIT AFTER TAX (G-H) (I)		69.246	56.069	105.466
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		69.999	73.506	27.935
Less/ Add	Prior Year Adjustments		0.148	0.059	(0.046)
Less	APPROPRIATIONS
		Transfer to General Reserve	29.100	9.700	48.500
		Dividend	44.620	42.681	1.649
		Tax on Dividend	7.504	7.254	9.700
	BALANCE CARRIED TO THE B/S		58.169	69.999	73.506
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	84.797	105.666	87.522
		Dividend	1.425	0.000	2.219
	TOTAL EARNINGS		86.222	105.666	89.741
	IMPORT
		Raw Materials	229.750	264.289	325.423
	TOTAL IMPORTS		229.750	264.289	325.423
	Earnings Per Share (Rs.)		71.54	57.80	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.11	3.43	6.08
Net Profit Margin (PBT/Sales)	(%)	6.29	5.33	9.41
Return on Total Assets (PBT/Total Assets}	(%)	12.90	12.95	24.26
Return on Investment (ROI) (PBT/Networth)		0.27	0.24	0.45
Debt Equity Ratio (Total Liability/Networth)		1.14	0.83	1.04
Current Ratio (Current Asset/Current Liability)		2.33	1.00	2.88

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The sales volume registered growth of about 19% however, due to fall in prices the growth in sales value shows only 3%. Due to recessionary conditions in Gulf area Exports were reduced by about 20%. The sales depot at Coimbatore received excellent response from local customers.

The production at Khopoli Unit contributed to growth in production and sales.

Due to concerted effort the Company could maintain gross margin resulting in improved net profit.

INVESTMENT IN SUBSIDIARY:

The subsidiary of the Company Gargi Huttenes Albertus (Emirates) Limited, FZC, shows a fall in turnover and profit as well due to economic slowdown. The company expects to receive Final Dividend of AED 99870.55 (Rs.1.253 millions) for the year ended 31^st December 2009 from the aforesaid joint venture company.

FORM 8

Corporate identity number of the company	U74999MH1988PTC046413
Name of the company	GARGI HUTTENES ALBERTUS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	203, Vasant Vihar Complex, Next to Basant Cinema, Dr. C Gidwani Road, Chembur, Mumbai - 400 074, Maharashtra, India
This form is for	Creation of charge
Type of charge	· Movable property (not being pledge)
Particular of charge holder	The Cosmos Cooperative Bank Limited Plot No. 239, Richmand Heights, Central Avenue Road, Ground Floor, Chembur, Mumbai – 400 071, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation of stock, book debts and machinery.
Date of instrument Creating the charge	13.12.2010
Amount secured by the charge	Rs.21.300 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest 11.5% p.a. or at such rate as maybe determined by the bank from time to time. · Terms of repayment Months +9 months moratorium · Margin 25% in Bank’s favour. · Extent and operation of the charge This is term loan facility
Short Particulars of the property or assets	Hypothecation of all the borrowers moveable machinery, plant and equipment with their accessories and spare parts now belonging to and that may thereafter belong to the borrower and which are now installed or being installed or to be installed hereafter and bought in, stored or be in at or about the premises, warehouses or god owns of the borrower at Khopoli or where else the same may be and more.

FIXED ASSETS

• Leasehold Rights to MIDC Land
• Land
• Factory Building
• Office Premises
• Staff Quarters
• Building
• Trade Mark
• Plant and Machinery
• Electrical Installation
• Furniture and Fixtures
• Motor Cars
• Delivery Vans
• Office Equipments
• Office Equipments
• Computers

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.50.08
UK Pound	1	Rs.80.36
Euro	1	Rs.68.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.