MIRA INFORM REPORT

Report Date :

24.11.2011

IDENTIFICATION DETAILS

Name :	FERROMATIK MILACRON INDIA PRIVATE LIMITED (w.e.f. 16.12.2010)
Formerly Known As :	FERROMATIK MILACRON INDIA LIMITED CINCINNATI MILACRON PRIVATE LIMITED
Registered Office :	53, Madhuban, Near Madhalpur Under Bridge, Ellisbridge, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.05.1995
Com. Reg. No.:	04-25783
Capital Investment / Paid-up Capital :	Rs. 300.000 Millions
CIN No.: [Company Identification No.]	U74999GJ1995PLC025783
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00035A
PAN No.: [Permanent Account No.]	AABCC0881D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Injection Moulding Machines and Plastic Process Machines.
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (57)

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 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. 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.

INFORMATION PARTED BY

Name :	Mr. Samir Parekh
Designation :	D. G. Finance
Contact No.:	91-9879014640
Date :	23.11.2011

LOCATIONS

Registered Office :	53, Madhuban, Near Madhalpur Under Bridge, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26440331/ 25890081
Mobile No.:	91-9879014640 (Mr. Samir Parekh)
Fax No.:	91-79-26421324
E-Mail :	mamatagroup@mamata.com samir_r_parekh@milacronindia.com corahm@bankofbaroda.com
Website :	http://www.mamata.com http://www.milacronindia.com
Location :	Owned
Head Office / Factory :	92, Phase – I, G. I. D. C., Vatva, Ahmedabad --382 445, Gujarat, India.
Tel. No.:	91-79-25830063 / 25890133 / 25890081
Fax No.:	91-79-25830125
E-Mail :	salesfmi@milacron.com
Website :	www.milacronindia.com

DIRECTORS

AS ON 19.08.2011

Name :	Mr. Mahendra Narsinhbhai Patel
Designation :	Director
Address :	15, Kairavi Bungalow, Near Sarthi Hotel, Vastrapur Road, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	17.01.1949
Date of Appointment :	31.05.1995
DIN No.:	00104997

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	U29259GJ1979PTC003363	MAMATA MACHINERY PRIVATE LIMITED	Managing director	12-09-94	12-09-94	-	Active	NO
2	U28999GJ1995FTC025601	KLOECKNER DESMA MACHINERY PRIVATE LIMITED	Managing director	25-04-95	25-04-95	-	Active	NO
3	U74999GJ1995FTC025783	FERROMATIK MILACRON INDIA PRIVATE LIMITED	Director	31-05-95	31-05-95	-	Active	NO
4	U29212GJ1997PTC031529	MAMATA BRAMPTON ENGINEERING PRIVATE LIMITED	Director	17-01-97	17-01-97	-	Active	NO
5	U29199GJ1997FTC032397	KHS MACHINERY PRIVATE LIMITED	Director	01-01-11	26-05-97	-	Active	NO
6	U65910GJ1993PTC019248	MAMATA GROUP CORPORATE SERVICES PRIVATE LIMITED	Director	11-08-97	11-08-97	-	Active	NO
7	U72200GJ1992PTC017819	SOURCEPRO INFOTECH PRIVATE LIMITED	Director	17-07-00	17-07-00	25-12-09	Active	NO
8	U40106GJ2001PTC039173	MAMATA ENERGY PRIVATE LIMITED	Director	17-01-01	17-01-01	-	Active	NO
9	U25202GJ2004PTC045123	SUNPACK BARRIER FILMS PRIVATE LIMITED	Director	13-12-04	13-12-04	-	Active	NO
10	U25202GJ2006PTC047451	MAMATA-SPAN FLEXOPACK PRIVATE LIMITED	Director	04-01-06	04-01-06	-	Active	NO
11	U40106GJ2006PTC049596	MAMATA PYRON SOLAR PRIVATE LIMITED	Director	27-09-07	19-12-06	-	Strike off	NO
12	U65910GJ1990PTC014305	MAMATA MANAGEMENT SERVICES PRIVATE LIMITED	Director	29-09-07	31-12-06	-	Active	NO
13	U29249GJ2007PTC050353	HYDCO ENGINEERING PRIVATE LIMITED	Director	12-08-08	02-07-07	-	Active	NO
14	U73100GJ2008NPL054708	INDIAN CENTRE FOR CLIMATE AND SOCIETAL IMPACTS RESEARCH	Director	07-08-08	07-08-08	-	Active	NO
15	L25209DD1988PLC001544	WIM PLAST LIMITED	Director	18-09-10	27-07-10	-	Active	NO

Name :	Mr. Narasinh K. Balgi
Designation :	Director
Address :	B – 401, Sumadhur – II, Near Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.06.1943
Date of Appointment :	05.06.2004
DIN No.:	00163468
Name :	Mr. Jonathan Jay Woerner
Designation :	Nominee Director
Address :	10596, Mountain Laurelway, Union KY41091, USA
Date of Birth/Age :	11.11.1949
Date of Appointment :	25.09.2003
DIN No.:	00717063
Name :	Mr. David Edward Lawrence
Designation :	Nominee Director
Address :	22243, Marine Avenue, Eastpointe, USA
Date of Birth/Age :	15.01.1950
Date of Appointment :	17.08.2009
DIN No.:	02426697

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	U74999KA1993PLC046003	DME (INDIA) PRIVATE LIMITED	Director	31-01-94	31-01-94	Active	NO
2	U74999GJ1995FTC025783	FERROMATIK MILACRON INDIA PRIVATE LIMITED	Nominee director	29-12-09	17-08-09	Active	NO

KEY EXECUTIVES

Name :	Mr. Pradip G. Mistry
Designation :	Secretary
Address :	1, Jagdeep, H I, Ghland Park Society, Gulabai Tekra, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	15.12.1957
Date of Appointment :	01.06.1998
PAN No.:	AGAPM1318H
Name :	Mr. Samir Parekh
Designation :	D. G. Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 19.08.2011

Names of Shareholders	No. of Shares
Milacron Marketing Company LLC, USA	2689730
Milacron Marketing Company LLC jointly with Milacron Plastics Technologies Group LLC	100
Total	2689830

AS ON 19.08.2011

Equity Shares Break Up	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Injection Moulding Machines and Plastic Process Machines.

Products :

ITC Code	Product Description
84771000	Injection Moulding Machine
84773000	Blow Moulding Machines
84772000	Extruders

Exports :

Products :

Injection Moulding Machines

Countries :

· African Countries

· Middle East

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Plastic Processing Machinery	Nos.	700	674

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

450 (Approximately)

Bankers :

• IDBI Bank Limited, IDBI Complex, Opposite Municipal Quarters, Off C.G. Road, Ahmedabad-380006, Gujarat, India
• HDFC Bank, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
• Bank of Baroda, 2^nd Floor, Opposite Law Garden, Ellis Bridge, Ahmedabad – 380006, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term loan from Bank	35.000	45.000
Cash Credit facilities from Bank	34.303	4.646
Loan against Vehicles from Bank	0.000	1.357
Total	69.303	51.003
Notes: 1. Term Loan is secured by first charge on immovable properties, a first charge by hypothecation of entire movables, (save and except book debt) and a second charge by hypothecation of inventories, book debts and other movables. The loan is repayable in twenty quarterly installments, commencing from December, 2008. Amount due within one year Rs. 10.000 Millions (Previous Year Rs. 10.000 Millions) 2. Cash Credit from Bank is secured by a first charge by hypothecation of inventories, book debts and movable properties and second charge on plant and machinery. 3. Vehicle loan is secured against vehicles acquired under the agreement. Amount due within one year Rs. Nil (Previous year Rs. 1.527 Millions)

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Address :	6^th Floor, Express Tower, Nariman Point, Mumbai-400 021, Maharashtra, India.
Tel. No.:	91-22-228764858 / 6
Fax No.:	91-22-22876401
Pan No.:	AALFS0506L
Ultimate Holding Company :	Milacron Inc.
Holdings Company :	Milacron Marketing Company LLC, USA
Fellow Subsidiaries :	· Milacron Plastic Technologies Group Inc. · Ferromatik Milacron Maschinebau GmbH · Milacron Marketing (Shanghai) Company Limited · Ferromatik Milacron S.A. (Pty) Limited · Milacron International Marketing Company, Singapore

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.100/- each	Rs. 300.000 Millions
1000000	Preference Shares	Rs.100/- each	Rs. 100.000 Millions
	Total		Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.100/- each	Rs. 300.000 Millions

Note:

Of the above 2689830 shares are held Milacron Marketing Company, the Holding Company.

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.100/- each	Rs. 300.000 Millions
1000000	Preference Shares	Rs.100/- each	Rs. 100.000 Millions
	Total		Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2689830	Equity Shares	Rs.100/- each	Rs. 268.983 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		300.000	300.000	300.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		465.200	285.339	158.363
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		765.200	585.339	458.363
LOAN FUNDS
1] Secured Loans		69.303	51.003	14.005
2] Unsecured Loans		23.511	0.000	0.000
TOTAL BORROWING		92.814	51.003	14.005
DEFERRED TAX LIABILITIES		0.000	24.459	18.348
TOTAL		858.014	660.801	490.716
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		387.406	352.466	254.484
Capital work-in-progress		14.761	1.034	52.727
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	548.383	420.771	388.694
	Sundry Debtors	242.243	163.459	222.779
	Cash & Bank Balances	412.296	90.877	11.978
	Other Current Assets	21.619	14.819	17.391
	Loans & Advances	53.726	29.524	19.712
Total Current Assets		1278.267	719.450	660.554
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	428.945	214.155	263.617
	Other Current Liabilities	330.523	148.156	141.531
	Provisions	62.952	49.838	71.901
Total Current Liabilities		822.420	412.149	477.049
Net Current Assets		455.847	307.301	183.505
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		858.014	660.801	490.716

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Service Income	2360.685	1768.960	1650.387
		Other Income	29.279	41.498	28.339
		TOTAL (A)	2389.964	1810.458	1678.726
Less	EXPENSES
		Raw Materials and Components consumed	1623.667	1160.924	1124.785
		Employee Remuneration and Benefits	189.180	154.799	128.101
		Operating and Other Expenses	268.690	230.256	215.628
		(Increased) / Decrease in Inventory	(14.429)	(7.565)	(28.964)
		TOTAL (B)	2067.108	1538.414	1439.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		322.856	272.044	239.176
Less	FINANCIAL EXPENSES (D)		10.275	10.010	2.737
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		312.581	262.034	236.439
Less/ Add	DEPRECIATION/ AMORTISATION (F)		39.837	37.281	28.620
	PROFIT BEFORE TAX (E-F) (G)		272.744	224.753	207.819
Less	TAX (H)		92.884	80.227	74.638
	PROFIT AFTER TAX (G-H) (I)		179.860	144.526	133.181
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		266.340	143.363	118.193
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	2.549	15.000
		Interim Dividend on Equity Shares	0.000	15.000	57.000
		Proposed Dividend on Equity Shares	0.000	0.000	22.500
		Tax on Dividend	0.000	4.000	13.511
	BALANCE CARRIED TO THE B/S		446.200	266.340	143.363
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	572.712	618.832	434.427
		Commission Earnings	3.163	10.178	1.974
		Service Charge	0.866	2.340	3.800
		Freight Recoveries	31.952	37.279	23.487
		Others	1.502	1.492	2.725
	TOTAL EARNINGS		610.195	670.121	466.413
	IMPORTS
		Raw Materials and Components	508.977	361.142	292.174
		Capital Goods	0.893	4.295	3.345
	TOTAL IMPORTS		509.870	365.437	295.519
	Earnings Per Share (Rs.)		59.95	48.18	44.39

Particulars	31.03.2011
Sales Turnover (Approximately)	2400.000

The above information has been parted by Mr. Samir.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.53	7.98	7.93
Net Profit Margin (PBT/Sales)	(%)	11.55	12.71	12.59
Return on Total Assets (PBT/Total Assets}	(%)	16.37	20.97	22.71
Return on Investment (ROI) (PBT/Networth)		0.36	0.38	0.45
Debt Equity Ratio (Total Liability/Networth)		1.20	0.83	1.11
Current Ratio (Current Asset/Current Liability)		1.55	1.75	1.38

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Dues of Micro, Small and Medium Enterprises	13.854	3.734	5.523
Due of other Creditors	415.091	210.421	258.094
Total	428.945	214.155	263.617

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	-------
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last three years	Yes
12. Profitability for last three years	No
13. Reasons for variation <> 20%	No
14. Estimation for coming financial year	No
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

PERFORMANCE OF THE COMPANY:

During the year the total turnover increased by 33.45% to Rs. 2360.680 millions as compared to Rs. 1768.960 millions in the previous year. Automotive House-ware, White goods, Appliances, Packaging, and furniture were the main segments driving the demand for the machines. Machinery demand was driven by increased plastics conversion as well as older machine replacement with current technology machines for benefits of productivity and energy efficiency. This trend is expected to continue. Machines export reached to 42 countries of which 22 were active during the financial year 2009-2010. Material costs started climbing from 3rd quarter of the financial year due to increase in prices of steel, castings, copper and rise in labour costs. However company managed to protect earnings through effective cost reduction program. The directors are pleased to report that during the year company has made profit before tax of Rs. 272.740 millions as compared to Rs. 224.750 millions of previous year.

OPERATIONS

During the year the company produced 674 machines as compared to 464 machines in previous year. To meet with increasing demand, the company is working to increase the production of machines.

To meet the industry expectations company introduced new variants in Omega and Magna Toggle models incorporating servo driven hydraulic power units for high level of energy efficiency.

In January 2010 the company received order for Maxima 1800 to be delivered to an automotive molder in July 2010.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. In Millions)

PARTICULARS	31.03.2010	31.03.2009
Disputed income tax matters (including interest and penalty)	32.980	11.711
Disputed excise duty matters (including penalty)	2.668	0.698
Disputed service tax matters	0.844	0.000
Guarantee given by the bankers on behalf of the company	35.303	15.906
Bill of exchange discounted	58.152	0.000
Total	161.178	59.5459

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U74999GJ1995PLC025783
Name of the company	Ferromatik Milacron India Limited
Address of the registered office or of the principal place of business in India of the company	53, Madhuban, Near Madhalpur Under Bridge, Ellisbridge, Ahmedabad–380006, Gujarat, India
Type of charge	Movable Property
Particular of charge holder	IDBI Bank Limited IDBI Complex Opposite Municipal Quarters, Off C. G. Road, Ahmedabad- 380006, Gujarat Email ID: s.pattnaik@idbi.co.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation and Loan Agreement both the documents creating a single charge.
Date of instrument Creating the charge	24/07/2008
Amount secured by the charge	Rs. 310.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest: BPLR less 225bps (Present BPLR 14.25%) Terms of repayment: Each disbursement shall be repayable in 20 quarterly installments commencing 3months after the disbursement.
Short particulars of the property charged	1) A first charge by way of hypothecation in favour of the Lender of the Borrower’s entire movables (save and except book debts), including movable machinery, machinery spares, tools and accessories, present and future subject to prior charges created and/or to be created in favour of the Borrower’s Bankers on the Borrower’s stocks of raw materials, semi finished and finished goods, consumable stores and such other movables as may be agreed to by the Lender for securing the borrowings for working capital requirements in the ordinary course of business. 2) A second charge by way of hypothecation in favour of the Lender of the Borrower’s all current assets including stocks of raw materials, semi finished and finished goods, consumable stores, book debts and such other movables as may be agreed to by the Lender for securing the borrowings for working capital requirements in the ordinary course of business.

FIXED ASSETS:

· Land leasehold

· Building

· Plant and machinery

· Patterns and jigs

· Computers

· Furniture and fixtures

· Office equipments

· Air conditioner

· Vehicles

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 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. 52.10
UK Pound	1	Rs. 81.30
Euro	1	Rs. 70.07

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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		57

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.