MIRA INFORM REPORT

Report Date :

13.10.2011

IDENTIFICATION DETAILS

Name :	MSN LABORATORIES LIMITED
Registered Office :	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.08.2003
Com. Reg. No.:	01-41583
Capital Investment / Paid-up Capital :	Rs. 52.000 millions
CIN No.: [Company Identification No.]	U24239AP2003PLC041583
TAN No.: [Tax Deduction & Collection Account No.]	HYDM02459C
PAN No.: [Permanent Account No.]	AADCM6283F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Pharmaceutical Bulk Drugs and Organic Intermediates Salmetrol, Rosuvastatin Calcium, Ezetimibe etc
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2100000
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 dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Corporate Office:	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh, India
Tel. No.:	91-40-30438600
Fax No.:	91-40-30438638
E-Mail :	msnlabs2003@gmail.com
Website :	http://www.msnlabs.com
Factory :	Sy No 317 and 323, Rudraram Village, Patancheru Mandal, Medak District 502 329, Andhra Pradesh, India
Tel. No.:	91-84-55 220372
Fax No.:	91-84-58 279938
E-Mail :	api@msnlabs.com
Division Office :	Plot No.42, Anrich Industrial Estate, Bollarum, Medak, District-502325, Andhra Pradesh, India
Tel No.:	91-84-58 279936 /37
Fax No.:	91-84-58 279938
Email:	formulation_at_msnlabs.com

DIRECTORS

AS ON 30.09.2010

Name :	Mrs. Laxmi Prasuna Mannie
Designation :	Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	06.08.1968
Date of Appointment :	27.08.2003
DIN No.:	00954334

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	U24239AP2003PLC041583	Msn Laboratories Limited	Director	27-08-03	27-08-03	Active	NO
2	U24239AP2004PTC044631	Msn Pharmachem Private Limited	Director	17-11-04	17-11-04	Active	YES
3	U24110AP2006PTC051858	Msn Organics Private Limited	Director	30-11-06	30-11-06	Active	NO
4	U73100AP2008PTC058892	Msn Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO
5	U24232AP2010PTC067538	Saap Biotech Private Limited	Director	12-03-10	12-03-10	Active	NO
6	U80300AP2010PTC068094	Msn Institute Of Medical Sciences Private Limited	Director	23-04-10	23-04-10	Active	NO
7	U01403AP2011PTC073521	Arm Farms Private Limited	Director	25-03-11	25-03-11	Active	NO
8	U01119AP2011PTC073554	Rose Greenfields Private Limited	Director	28-03-11	28-03-11	Active	NO
9	U24239AP2002PTC038674	Maithri Laboratories Private Limited	Director	01-04-11	01-04-11	Active	YES

Name :	Mr. Bharat Chintapally Bharat
Designation :	Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	30.06.1969
Date of Appointment :	01.02.2007
DIN No.:	01591473

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	U24239AP2003PLC041583	Msn Laboratories Limited	Director	01-02-07	01-02-07	Active	NO
2	U24110AP2006PTC051858	Msn Organics Private Limited	Director	29-09-07	01-07-07	Active	NO
3	U73100AP2008PTC058892	Msn Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO

Name :	Dr. Manne Satyanarayana Reddy
Designation :	Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	18.04.1957
Date of Appointment :	27.08.2003
DIN No.:	01657567

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	U24239AP2003PLC041583	Msn Laboratories Limited	Managing director	27-08-03	27-08-03	Active	NO
2	U24239AP2002PTC038674	Maithri Laboratories Private Limited	Director	19-12-03	19-12-03	Active	YES
3	U24239AP2004PTC044631	Msn Pharmachem Private Limited	Managing director	17-11-04	17-11-04	Active	YES
4	U73100AP2008PTC058892	Msn Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO
5	U80300AP2010PTC068094	Msn Institute Of Medical Sciences Private Limited	Director	23-04-10	23-04-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Manne Satyanarayana Reddy	2526800
Laxmi Prasuna Mannie	427800
Manne Venkatram Reddy	120000
Thatikonda Seetha	1000
Thatikonda Srinivas	1000
Chintapally Anjani	1000
Chintapally Janardhn Reddy	132000
Manne Venkat Pratap Reddy	124000
Manne Jeevan Reddy	120000
Manne Swathi	1200
Manne Madhvi	1200
Nirmala Devi	66000
Manne Geetha	55000
Thatikonda Sreedhar Reddy	1000
Srinivasan Tirumalarajan	72000
Sajja Eswaraiah	72000
Challa N V Ravikumar	72000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	82.22
Other top fifty shareholders	17.78
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Pharmaceutical Bulk Drugs and Organic Intermediates Salmetrol, Rosuvastatin Calcium, Ezetimibe etc

Products :

Item Code No. (ITC Code)	29420031
Product Description	Rosuvastatin
Item Code No. (ITC Code)	29420031
Product Description	Ezetimide
Item Code No. (ITC Code)	30049067
Product Description	Ketrolac

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
APIs and Intermediates	Kgs.	--	36000	27632
Formulations	Mil Units	--	450	1348094

GENERAL INFORMATION

No. of Employees :

60 (Approximately)

Bankers :

· Barclays Bank PLC, 20/21, Kamaraj Salai, Kanchipuram-631501, Tamilnadu, India

· Axis Bank Limited, Credit Management Center,5-2-183/184, III rd Floor, R RP Road, Secunderabad- 500 003, Andhra Pradesh, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Working Capital Loan	237.677	145.159
Term Loans	227.242	182.793
Hire Purchase loans from commercial banks / NBFC’s	12.232	4.980
Total	477.151	332.932
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	0.000	11.004
Total	0.000	11.004

Banking Relations :	--
Auditors :
Name :	B.R.M. Reddy and Company Chartered Accountants
Address :	6-3-1186/A/6, II Floor, Begumpet, Hyderabad-500 038, Andhra Pradesh, India
Associates :	· MSN Pharmachem Private Limited · Maithri Laboratories Private Limited · MSN Organics Private Limited · MSN Research and Development Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5200000	Equity Shares	Rs.10/- each	Rs. 52.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		52.000	52.000	42.000
2] Share Application Money		0.000	0.000	10.000
3] Reserves & Surplus		491.715	238.096	115.689
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		543.715	290.096	167.689
LOAN FUNDS
1] Secured Loans		477.151	332.932	281.969
2] Unsecured Loans		0.000	11.004	0.000
TOTAL BORROWING		477.151	343.936	281.969
DEFERRED TAX LIABILITIES		37.354	18.932	12.255
TOTAL		1058.220	652.964	461.913
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		484.764	267.689	250.919
Capital work-in-progress		53.017	75.202	6.128
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	340.169	195.945	109.151
	Sundry Debtors	763.915	423.942	192.837
	Cash & Bank Balances	7.214	108.480	15.104
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	124.372	96.965	104.120
Total Current Assets		1235.670	825.332	421.212
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	687.818	444.762	194.469
	Other Current Liabilities	20.840	24.019	7.676
	Provisions	6.573	46.478	14.645
Total Current Liabilities		715.231	515.259	216.790
Net Current Assets		520.439	310.073	204.422
MISCELLANEOUS EXPENSES		0.000	0.000	0.444
TOTAL		1058.220	652.964	461.913

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2125.342	1059.986	596.452
		Other Income	12.686	34.589	7.768
		TOTAL (A)	2138.028	1094.575	604.220
Less	EXPENSES
		Raw material Cost	1271.247	598.318	339.425
		Other Manufacturing Expenses	157.350	112.378	64.412
		Personal Cost	147.620	96.555	55.845
		Administrative and selling Expenses	120.542	61.850	33.179
		Increase in stock	(35.058)	(36.140)	(22.655)
		TOTAL (B)	1661.701	832.961	470.206
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		476.327	261.614	134.014
Less	FINANCIAL EXPENSES (D)		50.391	43.921	34.989
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		425.936	217.693	99.025
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.339	13.599	8.951
	PROFIT BEFORE TAX (E-F) (G)		406.597	204.094	90.074
Less	TAX (H)		140.812	76.772	27.128
	PROFIT AFTER TAX (G-H) (I)		265.785	127.322	62.946
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		238.097	115.689	60.886
Less	APPROPRIATIONS
		Dividend	10.400	4.200	6.960
		Tax on Dividend	1.767	0.714	1.183
	BALANCE CARRIED TO THE B/S		491.715	238.097	115.689
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11349.782	510.537	221.043
		Other Earnings	4.002	0.000	0.000
	TOTAL EARNINGS		11353.784	510.537	221.043
	IMPORTS
		Raw Materials	168.624	141.014	73.454
		Stores & Spares	0.000	0.363	0.000
		Capital Goods	10.489	6.287	10.414
	TOTAL IMPORTS		179.113	147.664	83.868
	Earnings Per Share (Rs.)		51.11	28.90	17.48

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.43	11.63	10.42
Net Profit Margin (PBT/Sales)	(%)	19.13	19.25	15.10
Return on Total Assets (PBT/Total Assets}	(%)	23.63	18.67	13.40
Return on Investment (ROI) (PBT/Networth)		0.75	0.70	0.54
Debt Equity Ratio (Total Liability/Networth)		2.26	2.96	2.97
Current Ratio (Current Asset/Current Liability)		1.73	1.60	1.94

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL PERFORMANCE

The Company recorded gross sales of Rs. 2186.100 millions in FY 10 as against Rs. 1113.800 millions in FY 09, a growth of 96.26%. While Operating profits at Rs. 476.300 millions in FY 10, as against Rs. 261.600 millions in FY 09, grew at 82% the Operating Margins declined marginally from 24.68% in FY 09 to 22.41% in FY 10.

Net profit margins of the company was at 12.43% in FY 10 as against 11.63% in FY 09 grew by 109% over the previous year.

Overall operating expenses declined marginally from 78.58% in FY 09 to 78.19% in FY 10. However, in terms of individual components material costs to net sales, adjusted for stocks, increased to 58.16% in FY 10, as against 53.04% in FY 09. Decreases in other components viz., other manufacturing expenses, personnel costs and administrative and selling expenses, resulted in an overall reduction in the ratio of operating expenses to net sales.

During the year the Company saw pressures in average realization of its end products. This negated improvements made to production processes through continuous process research and development activities; introduction of new products and increased revenues from products launched during earlier years. Net margins were marginally higher due to efforts made in controlling financial costs.

Inspite of the competitive forces in play the Company expects to maintain its competitiveness, make further improvements in overall profitability in the future.

CRlSlL has retained its rating at SME 2 indicating "High level of creditworthiness adjudged in relation to other SMEs".

OPERATIONS:

The Company presently has one world class actives and chemicals manufacturing facility situated at Rudraram, Medak District, near Hyderabad and one finished dosages manufacturing facility at ANRICH Industrial Estate, Bollaram, Medak District, Near Hyderabad.

BULK ACTIVES:

The Company produces around 31 bulk actives in addition to the other chemicals and intermediates in its bulk actives facility, of this the major products are clopidogrel, ezetimibe, rosuvastatin, terbinafine and voricanazole which together contribute over 80% of the product revenues. The year saw launch of new molecules viz., ambrisartan, defarisirox, dexlansoprazole, edavarone.

The Company efforts to build a stronger customer base, both in domestic as well as export markets, has yielded better results. The share of export revenues increased to 64% from 48%. The Company expects that the share of export revenues would increase in the years to come. This being propelled mainly through conscious efforts to increase its regulatory filings, customer partnerships, etc.

The Company has filed, in the Indian Patent Office, 91 intellectual property rights applications of which 48 have been published in the IPO Journal. Similarly, 28 applications have been filed under Patents Cooperation Treaty (PCT) - of these 27 have been published.

During the year. The Company has filed 5 DMFs in the US (cumulative 21); 1 CEP in Europe (cumulative 5); 5 DMFs in Europe (cumulative 19); 2 DMFs in Canada (cumulative 6)

FINISHED DOSAGES BUSINESS:

The finished dosages business which was launched as "Safemed" is being repositioned in the name of the Company. This repositioning is taking place due to (1) confusion arising in the market place regarding the division and the Company and (2) to improve the brand value of the Company for the long term. Also, during the year the Company shifted its sales and marketing office from Mumbai to Hyderabad.

The Company produces over 60 products in its finished dosage basket. The company has ventured into chronic therapy-Lifestyle diseases which is the biggest threat to the country. This segment, covering invasive and degenerative diseases, is one of the fastest growing segments world over and India in particular. The successful presence of their finished dosages business enables the Company in moving up the value chain in the pharmaceutical vertical.

In line with the philosophy of the Company to launch small volume high value molecules, characterized by complex chemistry, and to be the first to launch in India. The Company has filed over 7 finished dosages applications in the category of “First in India applications". The 1^st product in the same category has been Prasugrel Tabs which they have just launched- MSN was the 1^st company in India to get the license for the same and they are manufacturing for nearly 8 companies today.

During the year, the Company has successfully expanded its market reach by establishing a strong presence in the market also, during the year the Company shifted its sales and marketing office from Mumbai to Hyderabad. The Company is present in over 22 states of India backed by a strong sales Distribution network. As Domestic Formulations Company we have started making inroads in the market and are able to make a mark in the Indian Market.

The Company is making necessary efforts in registering its products in various countries in the semi-regulated markets of the world. Distribution partners have been identified in many countries in Asia-Pacific, Latin America, Africa and some parts of CIS.

CONTINGENT LIABILITIES:

Particulars (Rs. in Millions)	2009-2010	2008-2009
Guarantees issued by bank’s	4.115	10.234
Letter of credit outstanding	23.437	24.431
Total	27.552	34.665

FORM 8

Corporate identity number of the company	U24239AP2003PLC041583
Name of the company	MSN LABORATORIES LIMITED
Address of the registered office or of the principal place of business in India of the company	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh, India
This form is for	Modification of charge
Type of charge	Book debts Others
Particular of charge holder	Axis Bank Limited, Credit Management Center,5-2-183/184, III rd Floor, R RP Road, Secunderabad- 500 003, Andhra Pradesh, India
Nature of instrument creating charge	Supplemental deed of Hypothecation.
Date of instrument Creating the charge	10.05.2011
Amount secured by the charge	Rs. 380.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Base Rate+3.25% i.e., 12% p.a at present. Terms of repayment 10 Monthly installments of Rs.10.000 millions each starting from June 2011. Interest to be serviced as and when debited. Margin No Change in existing terms and conditions. Extent and operation of the charge Extension of first pari passu charge on the entire movable and immovable fixed assets of the company present and future shared with ICICI Bank and Barclays Bank. Extension of first pari passu charge on the entire current assets of the company present and future shared with ICICI Bank and Barclays Bank. Personal Guarantee of Dr M S N reddy, Smt Lakshmi Prasuna , Sri C Bharat Reddy, and Dr C H Nagaraj.
Short particulars of the property charged (Including location of the property)	Equitable Mortgage of Land and buildings constructed in land spread across 5 acres situated at S.No317, 323 Rudraram village Patancheru Mandal Equitable Mortgage of Land and buildings constructed in land spread across 1.5 acres situated at Plot .No42, Anrich Industrial Estate, Bollaram , Medak.
Charge identification number of the charge to be modified	90126902
Particulars of the present modification	The Limits are Modified as Follows. Cash Credit-RS.150.000 millions Existing limit Short Term Corporate Term Loan under FCDL-Rs.100.000 millions Fresh Sanction. Letter of Credit- Rs.50.000 millions Existing Limit. Term Loan III-Rs.80.000 millions Existing Limit. Total Limits Rs.380.000 millions

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Electrical installations

v Lab Equipments

v Generator

v Office Equipments

v Computers

v Furniture and Fixtures

v Motor 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 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. 49.24
UK Pound	1	Rs. 76.80
Euro	1	Rs. 67.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.