MIRA INFORM REPORT

Report Date :

11.10.2011

IDENTIFICATION DETAILS

Name :	LOXIM INDUSTRIES LIMITED [w.e.f. 01.04.2008]
Formerly Known As :	LOXIM COLORS PRIVATE LIMITED
Registered Office :	803, Shilp Building, C.G. Road, Navrangpura, Ahmedabad-380009, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.08.2003
Com. Reg. No.:	04-042820
Capital Investment / Paid-up Capital :	Rs.73.580 millions
CIN No.: [Company Identification No.]	U24114GJ2003PLC042820
TAN No.: [Tax Deduction & Collection Account No.]	AHML00584D
PAN No.: [Permanent Account No.]	AHMLO0584D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Dyestuffs and Polymer (engineering thermoplastic compounds and Alloys).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 435000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Trade relations are reported as fair. Business is active. Payments are reported to be slow. 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

LOCATIONS

Registered Office/ Head Office and SBU - Dyes :	803, Shilp Building, C.G. Road, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-30800000/ 26404727
Fax No.:	91-79-26467488/ 30800001
E-Mail :	info@loxim.com (Corporate) dyes@loxim.com (SBU: Dyes)
Website :	http://www.loxim.com
Unit I :	185/ 2, Opposite Gujarat Refectories, IYAVA, Vasna, Sanand Virmgam Highway, Ahmedabad – 382 110, Gujarat, India
SBU – Polymers/ Unit II :	Plot No. 184, Sanand-Viramgam Highway, IYAVA Village, Sanand, District Ahmedabad – 382 110, Gujarat, India
Tel. No.:	91-2717-308000
Fax No.:	91-2717-308001
E-Mail :	polymers@loxim.com
Unit III :	Plot No.105/ 109-A, ECPL Road, Billage Ekalbara, Padra – 391 440, Vadodara, Gujarat, India

DIRECTORS

As on 09.08.2010

Name :

Mr. Jayprakash M. Patel

Designation :

Chairman cum Chief Executive Officer

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

09.02.1948

Date of Appointment :

01.04.2007

DIN :

00256790

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	U24231GJ1984PTC006946	DYE-O-PRINT(GUJ) PRIVATE LIMITED	Director	22-05-84	22-05-84	-	Active	NO
2	U74200GJ1996PLC031291	SANAND ECO PROJECT LIMITED	Director	28-09-01	28-09-01	22-09-07	Active	NO
3	U24114GJ2003PLC042820	LOXIM INDUSTRIES LIMITED	Director	29-09-07	01-04-07	-	Active	NO

Name :

Mr. Canon J. Patel

Designation :

Managing Director

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

06.11.1974

Date of Appointment :

29.08.2003

DIN :

00078065

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	U24231GJ1984PTC006946	DYE-O-PRINT(GUJ) PRIVATE LIMITED	Director	01-12-92	01-12-92	-	Active	NO
2	U24114GJ2003PLC042820	LOXIM INDUSTRIES LIMITED	Managing director	01-04-07	29-08-03	-	Active	NO
3	U24100GJ2007PLC051763	UNISON INDUSTRIES LIMITED	Director	18-09-07	18-09-07	27-08-08	Active	NO

Name :

Ms. Falguni C. Patel

Designation :

Additional Director

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

20.06.1978

Date of Appointment :

28.03.2008

DIN :

00078102

Name :

Mr. Shyamal S. Joshi

Designation :

Additional Director

Address :

40, Prerana Tirth – 1, B/H. Someshwar – II, Satellite, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

12.08.1949

Date of Appointment :

01.12.2009

DIN :

00005766

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	U35912GJ1990PTC014579	BHAVYA MOTORS PRIVATE LIMITED	Director	29-10-90	29-10-90	-	Dormant	NO
2	U45201GJ1999PTC036798	ADANI INFRASTRUCTURE SERVICES PRIVATE LIMITED	Director	28-12-99	28-12-99	31-05-09	Amalgamated	NO
3	U51100GJ2000PTC038408	B 2 B INDIA PRIVATE LIMITED	Director	19-07-04	19-07-04	31-05-09	Active	NO
4	U74999GJ2000PTC038407	ADANI TRUSTEE COMPANY PRIVATE LIMITED	Director	19-07-04	19-07-04	31-05-09	Active	NO
5	U45200GJ2006PTC049047	ADANI LAND DEVELOPERS PRIVATE LIMITED	Director	07-09-06	07-09-06	31-05-09	Active	NO
6	U72200GJ2000PTC050919	NETVANTAGE INTERNATIONAL PRIVATE LIMITED	Director	29-09-08	25-01-08	31-05-09	Active	NO
7	U45300GJ1999PTC036797	ADANI PORT INFRASTRUCTURE PRIVATE LIMITED	Director	25-08-08	04-03-08	-	Amalgamated	NO
8	U72900GJ2001PTC039192	ASCENDUM KPS PRIVATE LIMITED	Director	30-09-08	04-03-08	31-05-09	Active	NO
9	U52190GJ2000PTC038315	ADANI RETAIL PRIVATE LIMITED	Director	25-09-08	04-03-08	31-05-09	Active	NO
10	U51109GJ1997PTC032088	MIRAJ IMPEX PRIVATE LIMITED	Director	25-09-08	04-03-08	31-05-09	Active	NO
11	U45200GJ2006PTC049220	ADANI HABITATS PRIVATE LIMITED	Director	25-09-08	04-03-08	31-05-09	Strike off	NO
12	U45300GJ2005PTC046949	ADANI ESTATES PRIVATE LIMITED	Director	04-03-08	04-03-08	31-05-09	Active	NO
13	U45203GJ2006PTC049426	DHOLERA INFRASTRUCTURE PRIVATE LTD	Director	30-09-08	07-03-08	18-07-09	Active	NO
14	U01110GJ1995PTC024627	ADANI AGRO PRIVATE LIMITED	Director	25-09-08	14-03-08	31-05-09	Active	NO
15	U45201GJ1995PTC026067	ADANI PROPERTIES PRIVATE LIMITED	Director	25-09-08	17-03-08	31-05-09	Active	NO
16	U40100GJ2005PLC046553	ADANI GAS LIMITED	Director	30-09-08	28-07-08	10-04-09	Active	NO
17	U01403MH2008PTC185743	JADE AGRI LAND PRIVATE LIMITED	Director	12-08-08	12-08-08	31-05-09	Active	NO
18	U52100GJ1965PLC001347	GSEC LIMITED	Director	26-09-09	30-06-09	-	Active	NO
19	U24114GJ2003PLC042820	LOXIM INDUSTRIES LIMITED	Director	09-08-10	01-12-09	-	Active	NO
20	U85110GJ2004PLC044667	SHALBY LIMITED	Director	16-08-10	01-06-10	-	Active	NO
21	L45201GJ1990PLC013417	NILA INFRASTRUCTURES LIMITED	Director	25-09-10	14-08-10	-	Active	NO
22	U21019GJ1969PTC001572	SABARMATI PAPERS PRIVATE LIMITED	Director	21-07-11	03-02-11	-	Active	NO
23	U13203AP2010PTC071499	A AND M RESOURCES PRIVATE LIMITED	Nominee director	06-07-11	06-07-11	-	Active	NO
24	U85110GA1995PTC001851	VRUNDAVAN HOSPITAL AND RESEARCH CENTRE PRIVATE LIMITED	Nominee director	12-08-11	12-08-11	-	Active	NO

Name :

Mr. Jayesh Pravinchandra Mehta

Designation :

Additional Director

Address :

C/33, Satellite Apartments, Satelite Road, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

18.08.1967

Date of Appointment :

29.11.2010

DIN :

02140233

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.08.2010

Names of Shareholders	No. of Shares
Canon Patel	2464730
Falguni Patel	1214070
Jayprakash Patel	2464730
Hina Patel	1214070
Surendra Patel	100
Dinesh Chandra Patel	100
Girish Shah	100
Jayesh Mehta	100
Total	7358000

As on 09.08.2010

Category	Percentage of Holding
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Dyestuffs and Polymer (engineering thermoplastic compounds and Alloys).

GENERAL INFORMATION

Bankers :

• Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227D, Nariman Point, Mumbai – 400021, Maharashtra, India
• Axis Bank Limited, Trishul 3^rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380 006, Gujarat, India
• Citi Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans – From Banks
Rupee Loan	51.049	49.638
Foreign Currency Loan	69.360	82.475
Cash Credit Facilities – From Banks
a) Rupees	46.368	6.765
b) In Foreign Currency	8.765	20.662
Vehicle Loans –From Banks / Financial Institutes	7.736	2.165
Total	183.278	161.705

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors/ Members	170.020	188.452
Total	170.020	188.452

Banking Relations :	--
Auditors :
Name :	Dharmesh Parikh and Company Chartered Accountants
Address :	303/ 304, "Milestone", Near Drive - In - Cinema, Opposite T.V. Tower, Thaltej, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-79-27474466
Fax No.:	91-79-27479955
Associates :	Dye-O-Print (Gujarat) Private Limited Jaychem LLC

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,358,000	Equity Shares	Rs.10/- each	Rs.73.580 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		73.580	73.580	72.980
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.274	7.614	15.569
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		108.854	81.194	88.549
LOAN FUNDS
1] Secured Loans		183.278	161.705	131.301
2] Unsecured Loans		170.020	188.452	214.377
TOTAL BORROWING		353.298	350.157	345.678
DEFERRED TAX LIABILITIES		12.311	12.337	2.407
TOTAL		474.463	443.688	436.634
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		249.948	232.883	93.583
Capital work-in-progress		4.834	0.000	52.015
Expenditure during construction period		0.000	0.000	2.119
INVESTMENT		0.006	0.006	0.006
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.657	100.415	134.319
	Sundry Debtors	159.286	100.106	164.598
	Cash & Bank Balances	9.626	5.893	8.916
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	80.127	80.631	100.727
Total Current Assets		355.696	287.045	408.560
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	103.694	61.392	106.538
	Other Current Liabilities	16.922	5.385	4.493
	Provisions	15.405	9.399	8.618
Total Current Liabilities		136.021	76.176	119.649
Net Current Assets		219.675	210.799	288.911
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		474.463	443.688	436.634

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	623.652	478.692	517.062
		Other Income	15.541	6.145	1.799
		TOTAL (A)	639.193	484.837	518.861
Less	EXPENSES
		Raw Materials Consumed	442.589	367.817	379.577
		Personnel Expenses	34.905	28.578	15.211
		Manufacturing and Other Expenses	61.199	48.460	45.679
		Administrative and selling Expenses	42.215	50.515	22.946
		Selling & Distribution Expenses	0.000	0.000	20.249
		Increase / Decrease in stock	(3.759)	(39.867)	0.000
		Preliminary Expenses Written Off	0.000	0.000	0.033
		TOTAL (B)	577.149	455.503	483.677
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62.044	29.334	35.184
Less	FINANCIAL EXPENSES (D)		16.164	16.699	4.367
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.880	12.635	30.817
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.608	8.613	4.485
Add	PRIOR PERIOD ADJUSTMENT		(0.780)	(0.199)	0.000
	PROFIT BEFORE TAX (E-F) (G)		33.492	3.823	26.332
Less	TAX (H)		5.832	11.778	10.763
	PROFIT / LOSS AFTER TAX (G-H) (I)		27.660	(7.955)	15.569
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.614	15.569	0.000
	BALANCE CARRIED TO THE B/S		35.274	7.614	15.569
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on F.O.B. basis	360.132	306.369	315.061
	TOTAL EARNINGS		360.132	306.369	315.061
	IMPORTS
		Raw Materials	172.881	115.893	0.000
		Capital Goods	0.000	2.293	0.786
	TOTAL IMPORTS		172.881	118.186	0.786
	Earnings Per Share (Rs.)		3.76	(1.08)	173.67

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.33	(1.64)	3.00
Net Profit Margin (PBT/Sales)	(%)	5.37	0.80	5.09
Return on Total Assets (PBT/Total Assets}	(%)	5.53	0.74	5.24
Return on Investment (ROI) (PBT/Networth)		0.31	0.05	0.30
Debt Equity Ratio (Total Liability/Networth)		4.50	5.25	5.26
Current Ratio (Current Asset/Current Liability)		2.61	3.76	3.41

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The Company has achieved total turnover of Rs.623.652 millions, as compared to last year’s turnover of Rs. 478.692 millions. Which shows growth of 30.28% over last year. Profit before depreciation and interest was also jumped more than double and stood at Rs.62.046 million against last year of Rs.29.333 million. The net profit after tax stood atRs.27.660 million as compared to last year’s loss of Rs.7.955 million. Thus the company has achieved growth in all parameters.

FUTURE PROSPECTS:

Directors are confident to achieve better results in the current /ear. Reasons attributed to this confidence are

a) Dyes @ Padra: With the first operational year ended as on 31^H March 2010, this unit complies with production yields already established to the industry standards as expected. All products range as targeted (Dyes and Dyes Intermediates) has already commenced and their commercial production and is already being catered to international clientele. Business growth with this product range will help the company to achieve added turnover. After the global downturn, International markets have been stabilizing and with existing Brand value, there are no doubts of ensuring success. With rich experience of these products on manufacturing as well as established Brand, Director hopes to succeed, both in targeted turnover and profitability. While the Directors are confident of meeting business targets, it is worthy to mention the growing competition as well as the dropping prices of Dyes in both domestic and international market. Also, the appreciation in rupee against the dollar, may affect the export sales realization against the projection.

b) Polymers: Unit in its fourth year of business, is already doing wall with established products and market acceptability, which ensures sustained growth in business results. With thrust on adding newer products on one end and lowering costs on others, will ensure added contributions in the current year. Market Growth rate in application industry adds to the prospects. Exports of the compounded grades are also growing and are envisaged to pick-up adding growth in the current financial year.

c) Neat Resin Division: Director is pleased to share this business opportunity yielded, which opens new opportunity h trading of Plastic resins. Being awarded being Consignment Stockist and Del Credit Agents of Indian Oil Corporation Limited for Ahmedabad Region, the Director is confident of ensuring targeted business. The particular industrial segment offers large Customer base, which has shown positive response in accepting new vendors.

Form 8

Corporate identity number of the company	U24114GJ2003PLC042820
Name of the company	LOXIM INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	803, ‘Shilp’ Building, C.G. Road, Navrangpura, Ahmedabad – 380 009, Gujarat, India E-Mail: info@loxim.com
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227D, Nariman Point, Mumbai – 400021, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Deed of Mortgage.
Date of instrument Creating the charge	22.10.2010
Amount secured by the charge	Rs.220.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: CC / EPC - Floating over the tenure of the facility. the Rate of Interest has been arrived at on the basis of the Bank's Base Rate. WCDL - As per Banks Policy. Terms of Repayment: WCDL - Tenor up to a maximum of 180 days / Minimum tenor of 30 days. EPC / TC - Tenor 180 Days. BG - Minimum 39 months including claim period of 3 months. FFL - 12 months. Margin: LC / TC / BG - Minimum cash margin of 15% shall be provided upfront in the form of Fixed Deposit. Lien shall be marked on the Fixed Deposit in favour of the Bank. (100% cash margin for guarantee covering disputed liabilities) Lien shall be marked on the FD till such time as the BG is cancelled and returned to the Bank. Extent and Operation of the charge: First and exclusive charge by way of Mortgage on Immovable properties of the Company, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the Company.
Short particulars of the property charged	All that piece and parcel of N.A. Land, at S.No.185/2 adms.12141sq.mtr. and S.No.184 adms.9890sq.mtr. of Mouje Iyava, Sanand, Ahemedabad, more particularly described in Schedule - II to the Mortgage Deed.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Laboratory Equipments
• Furniture
• Office Equipments
• Vehicles
• Communication Equipments
• Computer
• Air Conditioner

WEBSITE DETAILS:

PROFILE:

Nurtured from three decades of rich business experience of JAYCHEM, today subject is one of the pioneering companies in the global arena, meeting customers’ diverse and growing requirements. Subject is engaged in manufacturing and exporting Dyestuffs and Polymer (engineering thermoplastic compounds and Alloys) through its dedicated multi-location infrastructure.

At subject, they create value for the customers and build partnerships with the investors, suppliers, trade partners and serve the society at large.

Consistent to the well defined strategy of employing leading technologies added with employing cutting edge methodologies, they have invested in modern manufacturing infrastructure including captive power. Subject has today grown into a global conglomerate with an outstanding reputation for fulfilling the diverse and growing requirements of its customers.

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] 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.49.07
UK Pound	1	Rs.76.65
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.