MIRA INFORM REPORT

Report Date :

14.10.2011

IDENTIFICATION DETAILS

Name :	SAMRUDDHI INDUSTRIES LIMITED
Registered Office :	J – 98, MIDC, Kupwad, Sangli – 416 436, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.09.1992
Com. Reg. No.:	11-68458
Capital Investment / Paid-up Capital :	Rs.74.325 Millions
CIN No.: [Company Identification No.]	U24119PN1992PLC068458
TAN No.: [Tax Deduction & Collection Account No.]	KLPS05417G
PAN No.: [Permanent Account No.]	AAHCS9137L
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacture of Plastic Products.
No. of Employees :	500 (Approximately) (In Office)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 730000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

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

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

INFORMATION DENIED BY

Name :	Mr. Mukund Bankapur
Designation :	Corporate Manager
Contact No.:	91-9423677084
Date :	10.10.2011

LOCATIONS

Registered/ Corporate Office / Manufacturing Plant 1 :	J – 98, MIDC, Kupwad, Sangli – 416 436, Maharashtra, India
Tel. No.:	91-233-2645137, 2644217, 2644902, 2645717
Fax No.:	91-233-2644903
Mobile No.:	91-9423677084 (Mr. Mukund Bankapur)
E-Mail :	klp_samrudhi@sancharnet.in account@samruddhi.com amitkumar@samruddhi.com swapnalpawar@yahoo.co.in mukund@samruddhi.com sachin@sachinics.com
Website :	http://www.samruddhi.com
Area :	500 Sq. Ft.
Location :	Owned
Manufacturing Plant 2 :	Plot No. 31, L.K. Akiwate Industrial Estate, Jaysingpur, Kolhapur-416 144, Maharashtra, India
Location :	Owned
Manufacturing Plant 3 :	I.I.E. Pantanagar, Sector 6, Plot No. 24and 25, Rudrapur, District- U.S. Nagar - 244713, Uttarakhand, India
International Office :	Samruddhi Industries Limited, Samruddhi House, Flat No. 302, Maithili's Elegant CHS, Plot # 18D, Sector 14, Above Bank Of Baroda, Sanpada (East), Navi Mumbai 400 705.
Tel. No.:	91-22-27813651
Fax No.:	91-22-27813650
E-Mail:	mumbai@samruddhi.com export@samruddhi.com

DIRECTORS

As on 21.09.2010

Name :	Mr. Ramakant Narayan Malu
Designation :	Managing Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416 101, Maharashtra, India
Date of Birth/Age :	11.05.1966
Date of Appointment :	15.05.1995
DIN No. :	00286135

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	U24119PN1992PLC068458	SAMRUDDHI INDUSTRIES LIMITED	Managing director	31-08-06	15-05-95	-	Active	NO
2	U01122PN1994PTC078415	SAMRUDDHI GREEN TECHNO PRIVATE LIMITED	Director	15-05-07	15-05-07	-	Active	NO

Name :	Mr. Omprakash Narayan Malu
Designation :	Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416 101, Maharashtra, India
Date of Birth/Age :	24.02.1969
Date of Appointment :	01.01.2002
DIN No. :	00286152

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	U51909PN1995PLC094151	SAMRUDDHI VALUE MARKETING LIMITED	Director	01-04-96	01-04-96	-	Active	NO
2	U24119PN1992PLC068458	SAMRUDDHI INDUSTRIES LIMITED	Whole-time director	31-08-06	01-01-02	-	Active	NO
3	U01122PN1994PTC078415	SAMRUDDHI GREEN TECHNO PRIVATE LIMITED	Director	13-01-10	13-01-10	-	Active	NO

Name :	Mr. Pramod Narayan Malu
Designation :	Whole-time Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416 101, Maharashtra, India
Date of Birth/Age :	21.11.1973
Date of Appointment :	25.04.2003
DIN No. :	00286155

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	U24119PN1992PLC068458	SAMRUDDHI INDUSTRIES LIMITED	Whole-time director	31-08-06	25-04-03	-	Active	NO
2	U01122PN1994PTC078415	SAMRUDDHI GREEN TECHNO PRIVATE LIMITED	Director	13-01-10	13-01-10	-	Active	NO

Name :	Mrs. Shweta Alias Ranjana Pramod Malu
Designation :	Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416 101, Maharashtra, India
Date of Birth/Age :	14.10.1973
Date of Appointment :	25.04.2003
DIN No. :	00286168

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	U24119PN1992PLC068458	SAMRUDDHI INDUSTRIES LIMITED	Director	25-04-03	25-04-03	-	Active	NO

Name :	Mr. Narayan Mangilal Malu
Designation :	Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416 101, Maharashtra, India
Date of Birth/Age :	28.07.1937
Date of Appointment :	08.09.1992
DIN No. :	00286126

Name :	Mr. Rajkumar Kisanlal Zawar
Designation :	Director
Address :	2503, Raviwarpeth, Gokak – 591 307, Karnataka, India
Date of Birth/Age :	05.12.1958
Date of Appointment :	31.08.2006
DIN No. :	03245365

Name :	Mr. Venu Kotreswar Rao Dabeer
Designation :	Director
Address :	2 Shivdarshan Society, Sakar School Lane, New C.G. Road Chandkheda, Gandhinagar – 382424, Gujarat, India
Date of Birth/Age :	06.04.1967
Date of Appointment :	21.09.2010
DIN No. :	03339990

KEY EXECUTIVES

Name :	Mr. Mukund Bankapur
Designation :	Corporate Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2010

Equity Shares

Names of Shareholders	No. of Shares
Natwarlal Shriniwas Malu	30
Gulabchand Mangilal Malu	60
Narayan Mangilal Malu	229560
Nandkishore Mangilal Malu	60
Anuradha Parab	30
Kamalakar Bajarang Mhetre	30
Swati Prabhakar Mujumdar	30
Prakash Shriniwas Zawar	7500
Omprakash Balmukundji Darak	7500
Govind dwarkadasaji Chitiagya	7500
Shriniwas Zawar	300
Suresh Malu	7530
Ramakant Narayan Malu	1146630
Ramkishor Malu	6030
Omprakash Narayan Malu	1914030
Pradeep Malu	6030
Pramod Narayan Malu	1345680
Jitendrakumaar Ashokkumar Shah	1500
Anjali Ashok Uppin	1500
Laxmi Ramesh Kulkarni	1500

Preference Shares

Names of Shareholders	No. of Shares
Tiware Enterprises, Kolhapur	15000
Khot Agro Agencies, Sangli	9000
Madhav V Pote Patil, Kolhapur	18000
Shivshakti Hardware	9000
Rajashree Trading, Sangli	15000
Mauli Agencies, Haveli	9000
Samruddhi Agro Polymers, Nashik	9000
Samruddhi Sales Corporation, Satara	9000
Bharat Agencies, Tuljapur	9000
Vijaysai Samruddhi, Buldhana	9000
Laxmi Trading and Hardware,	15000
Gurukrupa Agency, Nanded	9000
Doshi Network, Baramati	9000
Patel Auto Agencies, harda	15000
Shubhlaxmi Marketing, Udaipur	18000
Shrikrishna Traders, Haryana	15000
Durga Enterprises, Haryana	15000
Parishram Samruddhi Sales, Gujarat	9000
Dhanalakshmi Stores, Tamilnadu	15000
Om Ganesh Samruddhi, Thane	12000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	80.000
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Plastic Products.

Products :

Item Code No. (ITC Code)	3923.90
Product Description	Plastic Articles

• Bucket Range
• Dustbin Range
• Crate Range
• Drum Range
• Ghagar Range
• Ghamela Range
• Can Range
• Mug Range
• Jug Range
• Lota Range
• Tray Range
• Tub Range
• Planter Range
• Stool Range
• Supli Range
• Container Range

Terms :

Selling :

Credit

Purchasing :

Credit

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Plastic Products	Tons		NA	6265.47

GENERAL INFORMATION

Customers :

• Chitale Dairy, Bhilwadi.
• Gokul. Kolhapur.
• Patil Dudh Dairy P.L.Bhilwadi.
• K.M.F. (K.S.)
• Walwa Dudh, Islampur.
• AMUL India.Anand. (G.S.)
• R.N.Shetti. Hubli. E.C.C.Limited
• Manoja Staphtya. Pune.
• Clover Construction. Pune.
• R. S. Shetty Hubli.
• Tara Tiles, Kolhapur.
• Gannon Dunkerle. Belgaum.
• Koumuwat Builders. Pune.
• Mayur Dudh. Sangh Kolhapur.
• Dudh pandhari. Pandhari.
• Nandini Dudh. Belgum. (K.S.)
• Krishna Dudh.Vijaywada.(A.P.)
• Warna Dudh. Kolhapur.
• Ashoka Builders. Nashik.
• Rohan Construction Pune.
• Gera Construction, Pune.
• Ayodhya Builders. Kolhapur.
• Ambika Tiles, Belgaum.
• Kurtarkar Construction, Goa.
• Associated Const., Kolhapur.
• Godrej Construction, Pune.

No. of Employees :

500 (Approximately) (In Office),

Bankers :

• Karnataka Bank Limited, Mahaveera Circle, Mangalore – 575 002, Karnataka, India
• State Bank of India, Krishna Valley Complex, MIDC, Kupwad, Sangli, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Tara Chambers, Wakdewadi, Pune
• Shamrao Vithal Co-operative bank Limted

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
1 ) Bank Occ A/c
Karnataka Bank Limited A/c No 7297000100000601	8.830	5.777
Karnataka Bank Limited A/c No. Pune	75.301	109.784
KBL DPN (Rs.15.000 Millions) Pune. 6077004400000601	0.000	15.183
The Shamrao Vithal Co-Operative Bank Limited	52.515	50.477
2 ) Bank Occ A/c (Others)	0
K.B.L. Term Loan Rs.30.000 Millions Loan A/c	6.246	16.948
K.B.L. Term Loan Rs.79.700 Millions Loan A/c	33.152	37.646
K.B.L. Term Loan Rs.15.000 Millions DPN	12.927	0.000
K.B.L. Term Loan Rs.15.000 Millions Adhoc	15.145	0.000
SBI TDR No.30514920590	0.000	0.340
S.B.I. (Tvs-Pvs loan) A/c: 10825673996	0.009	0.009
S.B.I.(Tvs Victor-Rk loan) A/c: 10825673781	0.005	0.005
Karnataka Bank Limited Term Loan 4.15 Cr. A/c	25.165	33.559
Total	229.295	269.728
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Dealers Security Deposit	9.522	13.899
Customer Service Centre Deposit	1.527	1.674
Deposit from Others	1.519	2.891
Deposit from C-MRLM	0.397	0.625
Deposit for Mould	0.500	0.000
Total	13.465	19.089

Banking Relations :	--
Auditors :
Name :	T.C. Shah and Company Chartered Accountants
Address :	Chakeshwari Complex, 1^st Floor, High School Road, Sangli – 416 416, Maharashtra, India
Tel No.:	91-233-2623625 / 2622536
E-Mail :	san_tcco@sancharnet.in
PAN :	AKJPS4349B
Associates/Subsidiaries :	Samruddhi Value Marketing Limited, J – 98, MIDC, Kupwad, Sangli – 416 436, Maharashtra, India Line of Business : Trading

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs.10/- each	Rs.85.000 Millions
1500000	Preference Shares	Rs.10/- each	Rs.15.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5932530	Equity Shares	Rs.10/- each	Rs.59.325 Millions
1500000	Preference Shares	Rs.10/- each	Rs.15.000 Millions
	Total		Rs.74.325 Millions

Note : 3955020 Equity shares allotted as fully paid up by way of Bonus shares by capitalizations of Genral Reserve

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		74.325	74.325	74.325
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		107.729	71.348	40.349
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		182.054	145.673	114.674
LOAN FUNDS
1] Secured Loans		229.295	269.728	229.136
2] Unsecured Loans		13.465	19.089	28.594
TOTAL BORROWING		242.760	288.817	257.730
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		424.814	434.490	372.404
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.713	116.989	115.461
Capital work-in-progress		0.000	10.679	0.206
INVESTMENT		0.310	2.266	2.266
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	176.386	175.451	155.808
	Sundry Debtors	48.092	61.215	57.981
	Cash & Bank Balances	3.840	5.197	3.008
	Other Current Assets	9.277	11.184	11.371
	Loans & Advances	73.260	93.070	76.149
Total Current Assets		310.855	346.117	304.317
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.303	21.860	37.512
	other Liability	7.486	12.475	6.053
	Provisions	11.014	7.986	7.262
Total Current Liabilities		25.803	42.321	50.827
Net Current Assets		285.052	303.796	253.490
MISCELLANEOUS EXPENSES		0.739	0.760	0.981
TOTAL		424.814	434.490	372.404

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	765.369	582.370	580.504
		Other Income	6.251	10.218	10.482
		TOTAL (A)	771.620	592.588	590.986
Less	EXPENSES
		Material Consumed	501.388	355.460	362.836
		Excise Duty	0.000	0.565	0.000
		Vat paid	0.000	0.000	0.000
		Manufacturing Expenses	55.560	37.344	37.272
		Administrative Expenses Establishment Expenses	13.996	16.458	23.476
		Employees Remuneration and Benefits	19.569	28.443	17.642
		Selling and Distribution Expenses	79.231	70.264	72.622
		Research and Development Expenses	0.012	0.036	0.029
		Deferred Revenue Expenses Written off	0.098	0.319	0.159
		TOTAL (B)	669.854	508.889	514.036
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		101.766	83.697	76.950
Less	FINANCIAL EXPENSES (D)		42.056	31.846	31.657
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		59.710	51.851	45.293
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.550	22.770	20.966
	PROFIT BEFORE TAX (E-F) (G)		38.160	29.081	24.327
Less	TAX (I)		1.931	0.400	0.650
	PROFIT AFTER TAX (G-I) (J)		36.209	28.624	23.677
Less	PRIOR PERIOD ADJUSTMENT		0.270	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Dividend	0.150	0.000	0.000
		Tax on Dividend	0.026	0.000	0.000
	BALANCE CARRIED TO THE B/S		35.762	28.624	23.377
	Earnings Per Share (Rs.)		6.10	4.66	3.99

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	1100.000	830.000

Expected Sales (2011-2012) : Rs.1750.000 Millions

The above information has been parted by Mukund Bankapur

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.69	4.83	4.001
Net Profit Margin (PBT/Sales)	(%)	4.99	4.99	4.19
Return on Total Assets (PBT/Total Assets}	(%)	8.49	6.27	5.80
Return on Investment (ROI) (PBT/Networth)		0.20	0.19	0.21
Debt Equity Ratio (Total Liability/Networth)		1.48	2.27	2.69
Current Ratio (Current Asset/Current Liability)		12.05	8.18	5.99

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	YES
2) Locality of the firm	YES
3) Constitutions 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	NO
16) Details of sister concerns	YES
17) Major suppliers	NO
18) Major customers	NO
19) Payments terms	YES
20) Export / Import details (if applicable)	NO
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	YES
24) Banking facility details	NO
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	--

OPERATIONS AND FUTURE OUTLOOK

The Company has shown remarkably good performance during the financial year. The turnover has grown by over 127.45% compare to previous Year. The company has been able to achieve this growth by expanding its production capabilities, by introduction of new products in the market and with the help of outsourcing. The company has also strengthened the marketing network and added number of other dealers and subdealers and call centers. The Directors are happy to inform you that now subject products are available from Kashmir to Kanya Kumari. The company will pursue this dual strategy for maintaining the growth rate the coming year also.

Next year, the company will start commercial production work at Valasapalle, Madanapalle Mandal, District – Chittor, Andhra Pradesh. This will help to boost the profit margin as well as cater the demands of the South regions. The company has plans to introduce around 20- 25 new products in the market in the coming year. These products have been carefully selected considering the needs of the people and availability of such products in the market at the moment.

FORM 8

Corporate identity number of the company	U24119PN1992PLC068458
Name of the company	SAMRUDDHI INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	J - 98, MIDC, Kupwad, Sangli – 416436, Maharashtra, India E-Mail : account@samruddhi.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10049424
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	The Karnataka Bank Limited, Registered and Head Office, Post Box No.599, Mahaveera Circle, Kankanady Mangalore - 575002, Karnataka , India E-Mail : info@ktkbank.com
Nature of instrument creating charge	Application Cum Agreement For Letter Of Credit.
Date of instrument Creating the charge	02.09.2011
Amount secured by the charge	Rs.449.700 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest LC/NLC - Base Rate + 3.25% p.a. Presently At 12 % p.a. Terms of repayment LC/NC - At Sight/ On Due Date Extent and operation of the charge As per application cum agreement for letter of credit
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable and Movable Property as per the agreement
Date of instrument modifying the charge	12.10.2010
Particulars of the present modification	L.C. limit extended to Rs.50.000 Millions by the present modification.

FIXED ASSETS:

• Land and Buildings
• Plant and Machinery
• Electrical Installation
• Patterns and Moulds
• Vehicles
• Patents and Trademarks
• Software

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.49.02
UK Pound	1	Rs.77.13
Euro	1	Rs.67.5

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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.