MIRA INFORM REPORT

Report Date :

05.10.2011

IDENTIFICATION DETAILS

Name :	WIKA INSTRUMENTS INDIA PRIVATE LIMITED
Registered Office :	Plot No. 40, Gat No. 94 - 100 Hi Cliff Industrial Estate, Village Kesnand, Wagholi, Pune – 412207, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.09.1997
Com. Reg. No.:	25-110418
Capital Investment / Paid-up Capital :	Rs.313.500 Millions
CIN No.: [Company Identification No.]	U29299MH1997PTC110418
TAN No.: [Tax Deduction & Collection Account No.]	PNEW01145E
PAN No.: [Permanent Account No.]	AAACW2665A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Pressure Measuring Instruments, Temperature Measuring Instruments
No. of Employees :	250 (approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1400000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported as slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	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. Puranik
Designation :	Accountant
Contact No.:	91-20-66293200
Date :	04.10.2011

LOCATIONS

Registered Office/ Factory :	Plot No. 40, Gat No. 94 – 100 Hi Cliff Industrial Estate, Village Kesnand, Wagholi, Pune – 412207, Maharashtra, India
Tel. No.:	91-20-6629332 / 66293200
Mobile No.:	91-9881993993 (Mr. Vinod Desai)
Fax No.:	91-20-66293350 / 66293325
E-Mail :	apuranik@wika.co.in rmahto@wika.co.in sales@wika.co.in
Website :	http://www.wika.co.in
Area :	5000 sq.ft
Location :	Owned

DIRECTORS

As On 25.08.2010

Name :

Mr. Subrata Sudangsu Bhattacharjee

Designation :

Alternate Director

Address :

Flat No.3, Konark Campus, Viman Nagar, Pune – 411014, Maharashtra, India

Date of Birth/Age :

06.03.1959

Qualification :

Graduate

Date of Appointment :

11.12.2009

Date of Cessation :

15.06.2010

Din No.:

00164752

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	U51224WB1989PTC047688	Bluebell Marketing Services Private Limited	Director	06/10/1989	06/10/1989	22/05/2008	Strike off	NO
2	U29299MH1997PTC110418	Wika Instruments India Private Limited	Additional director	17/12/2010	19/01/2006	-	Active	NO
3	U31909TN2003PTC050397	Dh Budenberg Instrumentation Private Limited	Additional director	01/04/2011	01/04/2011	-	Active	NO

Name :

Mr. Christian Splitthoff

Designation :

Director

Address :

Zum Urnenfeld, 30, Grossheubach, Germany-63906

Date of Birth/Age :

01.04.1959

Date of Appointment :

08.12.2001

Din No.:

00898507

Other Directorship:

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	U29299MH1997PTC110418	Wika Instruments India Private Limited	Director	08/12/2001	08/12/2001	16/12/2010	Active	NO

Name :

Mr. Alexander Wiegand

Designation :

Director

Address :

An Der Bilz 3, Erlenbach, Germany-63906

Date of Birth/Age :

06.01.1963

Date of Appointment :

02.09.1997

Din No.:

00898525

Name :

Mr. Gerhard Bonn

Designation :

Director

Address :

Im Urnefeld, 30, Grossheubach, Germany-63920

Date of Birth/Age :

12.02.1958

Date of Appointment :

08.12.2001

Din No.:

00898603

KEY EXECUTIVES

Name :	Mr. Milind Kasodekar
Designation :	Secretary
Qualification :	B. Com., L.L.B., AICWA, FCS
Name :	Mr. Rajendra Jahagirdar
Designation :	Secretary
Qualification :	B. Com., L.L.B., AICWA, FCS
Name :	Mr. Makarand Lele
Designation :	Secretary
Qualification :	B. Com., L.L.B., FCS

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 25.08.2010

Names of Shareholders	No. of Shares
Wika Alexander Weigand Gmbh and Company Germany, Germany	3134998
Wika Alexander Weigand Verwaltungs Gmbh and Company Germany, Germany	2
Total	3135000

 As On 25.08.2010

Category	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 :

Manufacturer, Exporter and Importer of Pressure Measuring Instruments, Temperature Measuring Instruments

Products :

Products Descriptions	Item Code No.
Presure Gauges Diaphragm Seals	9026.00
Temperature Gauges Pressure Transmitters Electronic Temperature Instruments Spares and Accessories	9033.00

· Electronic Pressure Measurement

· Mechatronic Pressure Measurement

· Mechanical Pressure Measurement

· Diaphragm Seals

· Thermowells

· Accessories

Services:

· Technical Support

· Technical Information

· Personal Counseling for Customers

· Newsletter

· Distribution Network all over India and World

Exports :

Products :

• Pressure Measuring Instruments
• Temperature Measuring Instruments

Countries :

• USA

Imports :

Products :

• Raw Material

Countries :

• China

Terms :

Selling :

L/C, Cash, Credit: 30/60/90 Days

Purchasing :

L/C, Cash, Credit: 30/60/90 Days

GENERAL INFORMATION

Customers :

• End Users and OEMs
• Manufacturer

No. of Employees :

250 (approximately)

Bankers :

• ABN Amro Bank N. V. , 74, Sakhar Bhavan, 7^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Cash Credit: Rs. 20.000 Millions

Unsecured Loans	31.03.2010 (Rs. In Millions	31.03.2009 (Rs. In Millions)
External Commercial Borrowings from WIKA Alexander Wiegand Gmbh and Company KG Germany	228.142	278.640
Total	228.142	278.640

Banking Relations :	----
Auditors :
Name :	Vinay R. Gupta and Associates Chartered Accountant
Address :	13, Central Lane, Babar Road, New Delhi – 110001, Delhi, India
Pan No.:	AAGFV4218F
Holding Company :	Wika Alexander Wiegand SE and CO KG Wika Alexander Weigand GMBH and Co
Associates/Subsidiaries :	Feinwerktechnik Switzerland WIKA Manoneter AG, Switzerland WIKA Instruments Limited, Switzerland WIKA Instruments Corporation, USA WIKA Instrumentation (Suzho) Company Limited, China WIKA Systems GmbH, Germany WIKA Middle East FZE UAE, Dubai Instrumentors WIKA Mexico, S.A. de C.V. WIKA Instrumentation Taiwan WIKA Instrumentation (M) Sdn bhn, Malayasia Instrumentors WIKA, S.A. Spain WIKA do Brasil Ind. e Com. Ltda. WIKA Japan K. K. WIKA Polska S.A. Poland KSR Kuebler AG, Germany Tecsis Gmbh, Germany Mensor Corporation, USA WIKA Instruments (Pty) Limited, South Africa ZAO WIKA MERA, Russia

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3200000	Equity Shares	Rs.100/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3135000	Equity Shares	Rs.100/- each	Rs.313.500 Millions

Note :

Out of 3135000 equity shares 3134998 (as at 31.03.2009 - 3134998) equity shares are held by WIKA Alexander Wiegand GmbH and Company, Germany, which is the ultimate Holding Company.

Of the above shares 1478344 (as at 31.03.2009 1478344) shares are allotted as fully paid up pursuant to a contract without payments being received in cash.

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		313.500	313.500	313.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		61.130	14.130	44.207
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		374.630	327.630	357.707
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		228.142	278.640	227.483
TOTAL BORROWING		228.142	278.640	227.483
DEFERRED TAX LIABILITIES		29.605	17.161	14.235
TOTAL		632.377	623.431	599.425
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		437.841	444.202	233.335
Capital work-in-progress		3.629	10.132	162.111
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.755	126.741	176.156
	Sundry Debtors	141.797	161.646	125.848
	Cash & Bank Balances	33.490	27.424	122.410
	Other Current Assets	0.131	0.056	0.055
	Loans & Advances	127.328	133.833	114.955
Total Current Assets		423.501	449.700	539.424
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	194.553	259.473	308.723
	Other Current Liabilities	12.658	7.708	8.431
	Provisions	25.383	13.422	19.831
Total Current Liabilities		232.594	280.603	336.985
Net Current Assets		190.907	169.097	202.439
MISCELLANEOUS EXPENSES		0.000	0.000	1.540
TOTAL		632.377	623.431	599.425

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	575.505	638.277	589.524
		Other Income	67.151	11.369	39.684
		TOTAL	642.656	649.646	637.316
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	515.763	612.190	589.768
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		126.893	37.456	47.548
Less	FINANCIAL EXPENSES		10.846	17.560	12.018
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		116.047	19.896	35.530
Less/ Add	DEPRECIATION/ AMORTISATION		49.556	44.753	31.476
	PROFIT/ LOSS BEFORE TAX		66.491	(24.857)	4.054
Less	PRIOR PERIOD ITEMS		(0.033)	1.542	0.050
Less	TAX		23.762	3.678	3.563
	PROFIT/ LOSS AFTER TAX		42.763	(30.077)	0.441
	MAT CREDIT ENTITLEMENT		4.239	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.130	44.207	43.766
	BALANCE CARRIED TO THE B/S		61.132	14.130	44.207
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		242.698	172.879
		Commission Earnings	NA	4.782	2.650
		Other Earnings		0.159	0.312
	TOTAL EARNINGS			247.639	175.841
	IMPORTS
		Components and accessories for pressure gauges	NA	244.503	287.222
		Stores, Spares and Tools		6.198	3.420
		Level Switch (Trading Item)		116.073	33.879
		Pressure Gauges (Trading Item)	NA	1.231	5.087
		Capital Goods		53.489	19.567
		Others		6.435	6.291
	TOTAL IMPORTS			427.929	355.466
	Earnings Per Share (Rs.)
	- Basic		14.99	(9.59)	0.28
	- Diluted		NA	(9.59)	0.28

Expected Sales (2010-2011) : Rs. 700.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.65	(4.63)	0.07
Net Profit Margin (PBT/Sales)	(%)	11.55	(3.89)	0.69
Return on Total Assets (PBT/Total Assets}	(%)	7.72	(2.78)	0.52
Return on Investment (ROI) (PBT/Networth)		0.18	(0.08)	0.01
Debt Equity Ratio (Total Liability/Networth)		1.23	1.71	1.58
Current Ratio (Current Asset/Current Liability)		1.82	1.60	1.60

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND PROSPECTS:

During the year company has earned a profit of Rs. 66.400 millions as against the loss of Rs. 30.000 millions for the previous year. The primary reason for the profit this year has been the unpredictable exchange rate fluctuations. The sales turnover during the year at 575.5000 millions as compared to Rs. 638.200 millions in the previous year, which represents an decrease of 9.87%. However, the company will endeavor to make optimum and efficient utilization of its resources to maximize the profit and increase the shareholders networth.

This form is for	Creation of charge
Corporate identity number of the company	U29299MH1997PTC110418
Name of the company	WIKA INSTRUMENTS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 40, Gat No. 94 - 100 Hi Cliff Industrial Estate Village Kesnand, Pune – 412207, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	ABN Amro Bank N. V. Address : 74, Sakhar Bhavan, 7^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India Email : reenabang@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Deed of hypothecation of Movable Assets.
Date of instrument Creating the charge	24.10.2007
Amount secured by the charge	Rs. 20.000 Millions.
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Bank guarantee (BG) (Performance / Financial guarantee) – Rs. 20.000 Millions. Commission – Standard Tariff. Bank guarantee (BG) (Performance / Financial guarantee) (as a sub limit 1 of above) – Rs. 10.000 Millions. Commission – Standard Tariff. Terms of Repayment : Guarantee – Tenor Maximum 12 months including claim period Guarantee – Tenor Maximum 24 months including claim period Margin : As applicable, if any. Extent and Operation of the charge : The Bank is having exclusive first charge on the security offered by the company.
Short particulars of the property charged	The whole of the current assets of the Borrower namely, stocks of raw materials, stock in process, semi finished goods and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares), bills receivables and book debts and all other movables, both present and future movable properties (other than current assets) of the company including the company’s movable plant and machinery and other implements.

Trade References:

• Astec Valves and Fittings Private Limited, Mumbai
• Clearfast Service Private Limited

Fixed Assets:

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Vehicles

· Computer Software

As per website details:

The Partner in Pressure and Temperature Measurement

Subject, established on 02.09.1997 is the 100% subsidiary of WIKA Alexander Wiegand SE and Co. KG, Germany, the world leading manufacturer of Mechanical and Electronics Pressure and Temperature Instrumentation. WIKA Instruments India is now ISO 9001 (2000) company with its laboratory accredited by NABL.

Sales Department

A group of experienced trained Sales Engineers, ready to offer the right selection of Instruments and to render after sales services. To cater Indian Industries, they are having zonal offices at Delhi, Mumbai, Bangalore, Chennai, Kolkata, Baroda, Kalol (Ahmedabad) and Hyderabad. Nationwide distributors network has been implemented to reach all industries.

Production and Service facility

In India, modern production unit is set-up under direct supervision and guideline of WIKA Germany, by German technical expertise. Modern machineries, sophisticated welding equipments with Helium Leak Rate Detector and Certified Calibration Testing Instruments help them to manufacture quality Pressure and Temperature Measuring Instruments to serve Indian Process Industries. Sophisticated Filling Station for filling different types of Chemical Seals attached to Pressure Gauges and Smart type Transmitters has been installed, which has been supplied by WIKA Germany. There Calibration Laboratory has got NABL accreditation, and it is well equipped with RUSKA make Dead Weight Tester and high accurate Master Gauges, certified by DKD Germany.

MILESTONES:

1946

On January 2, Alexander Wiegand founds the WIKA GmbH together with his former employee Philipp Kachel. The production premises are located in Klingenberg, the office in Frankfurt-Griesheim. The initials of the two company founders' names form the company name WIKA which will become a well-known brand in the course of time. Initially, they carry out subcontract orders and repair work for agricultural devices and at the end of the year 1946, they start with the production of manometers.

1956
The stage is set for a successful future:

 the production program is supplemented by all stainless steel pressure gauges, the sales organisation is extended and a development department is build-up.

1960

In spring, the construction of a new plant where all the scattered subsidiaries could be united begins. Thanks to this measure, the continuously growing production can proceed in its properly course. At the beginning of the year 1961, WIKA moves into the new plant.

1965

New plants and buildings are required. A new building for offices, social rooms and despatch department is completed. On September 1, a new plant in Trennfurt is inaugurated.

1967

The death of Dr. Konrad Wiegand is a severe loss for the company. Ursula Wiegand takes over the management of WIKA. In the year 1968, the Dr.Konrad Wiegand foundation is created.

1970

WIKA becomes the number 1 of the manometer manufacturers in Europe. At that time, the company has approx. 880 employees, produces 22,500 manometer a day and reaches an annual turnover of 50 million DM. Compared to 1960, the export turnover has multiplied tenfold and reaches approximately a third of the total turnover.

1971

WIKA celebrated its 25 anniversary. On this occasion, Ursula Wiegand gives a votive medal to each employee. One side of the medal shows a portrait of Dr. Konrad Wiegand, the other side shows the company WIKA.

1974

Shortly before the end of the year WIKA produces its 55,555,555th pressure gauge.  

1979

The turnover exceeds the "dream limit" of 100 million DM. Additionally to the parent company in Klingenberg, WIKA meanwhile produces also in Switzerland, South Africa, USA and Spain. In 1979 the first electronic pressure gauges are brought on the market. In 1980 WIKA produces its 100 millionth pressure gauge.

1984

Ursula Wiegand receives the "Staatsmedaille für besondere Verdienste" (state medal for exceptional achievements) for the Bavarian economy. The medal is awarded by the Minister of State Dr. Anton Jaumann at a celebration in the ballroom of the Bavarian State Ministry for Economy and Transport.

1985

Ursula Wiegand wins the Business Award "Manager of the Year 1984".

1986

At the beginning of the year, WIKA takes over the thermometer manufacturer Kachel. By doing this, Ursula Wiegand unites again the two components of the name WIKA. On February 18, WIKA celebrates its 40th anniversary. Business partners and guests from politics and business as well as personal friends are present. The most prominent guest in this circle is the former Federal President Dr. Walter Scheel.

1988

On May 13, the new WIKA headquater in Klingelnberg is inaugurated. The opening ceremony is honoured by the presence of the famous violinist Gidon Kremer.

1994

In June the "Deutsche Gesellschaft für Zertifizierung von Qualitätsmanagementsystemen mbh" (German Association for the Certification of Quality Management Systems) (DQS) certifies WIKA to DIN ISO 9001.

1996

WIKA celebrates its 50th anniversary and becomes the number 1 worldwide for pressure and temperature gauges. The year is clouded by the death of Ursula Wiegand. Dipl.-Ing Alexander Wiegand continues the business and takes over the management in the same year.

1999

After a construction time of one year, the sensor centre is put into operation. The building has a production surface of 13,000 sqm. on four floors. The sensor centre provides the new capacities which are required for the continuous growth especially in the electronic pressure and temperature measurement.

2001

A strong brand changes its aspect: WIKA chooses a new logo. It indicates the opening of the globally acting company toward the outside and, at the same time, represents the power and competence inside the company.

2002

“WIKA goes lean“ - in some carefully selected production areas the first KAIZEN activities were started. After the first successes, KAIZEN was also implemented in the large parts production  and finally in the office sector.

2004

Together with there employees, WIKA starts the training initiative 10+. They increase the number of apprentices in there company by a third to combat the increasing lack of training positions actively. This is a declaration of there social responsibility and a commitment to save jobs in the Untermain region.

2005

There first subsidiary was founded in 1960, today the WIKA group consists of more than 30 subsidiaries worldwide .

2006

60 years after the foundation of the company more than 5.000 employees working at WIKA.

2007

WIKA was conferred the Innovation and Creativity Award "InKA" of the Fraunhofer TEG. The award is annually given to businesses for outstanding achievements within innovation management .

2008

A further milestone is reached: For the first time WIKA achieves a turnover of more than 500 million euros.

By establishing the "WIKALino" day nursery WIKA once more demonstrates its social commitment and underlines its family-oriented personnel policy.

The staff's health is also taken care of: In cooperation with the Kieser Training AG a fitness centre focusing on health-oriented strength training is opened on the Klingenberg factory premises in January.

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.49.22
UK Pound	1	Rs.76.06
Euro	1	Rs.65.06

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.