MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	PRINCE PIPES AND FITTINGS PRIVATE LIMITED
Registered Office :	Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari, Honda – 403530, Goa
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.11.1987
Com. Reg. No.:	24-006287
Capital Investment / Paid-up Capital :	Rs.120.012 Millions
CIN No.: [Company Identification No.]	U26932GA1987PTC006287
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06179F
PAN No.: [Permanent Account No.]	AAACP2319J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of UPVC Pipes, Fittings, Valves and PP-R Plumbing Systems.
No. of Employees :	100 (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 2000000
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 – 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. Harshad Shah
Designation :	Accounts Manager
Contact No.:	91-22-24382555

LOCATIONS

Registered Office :	Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari, Honda – 403530, Goa, India
E-Mail :	ppf@vsnl.com accounts@princepipes.com mktg@princepipes.com export@princepipes.com sales@princepipes.com mcs@princepipes.com
Website :	http://www.princepipes.com
Area :	4000 sq.ft
Location :	Owned
Head Office :	312, Chyrchgak Chambers, New Marine Lines, Mumbai - 400001, Maharashtra, India
Corporate / Administrative Office :	Ruby House, 4^th Floor, B Wing, J K Sawant Marg, Dadar (W), Mumbai-400028, Maharashtra, India.
Tel. No.:	91-22-66022222/24382555
Fax No.:	91-22-66022220
E-Mail :	sales@princepipes.com mcs@princepipes.com
Factory 1 :	Athal Road, Village Athal, Survey No. 132/1/1/3, Naroli, Silvassa – 396235, Dadra and Nagar Haveli, India
Tel. No.:	91-260-2640007
Fax No.:	91-260-2640082
Factory 2 :	Jayant Desai Marg, Survey No. 53 and 92, Vaghdhra Road, Dadra – 396191, India
Tel. No.:	91-260-2668091
Fax No.:	91-260-2668090

DIRECTORS

As On 30.09.2010

Name :	Mr. Jayant Shamji Chheda
Designation :	Managing Director
Address :	Room No. 1001, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	31.07.1946
Qualification :	Inter Arts
Experience :	42 Years
Date of Appointment :	13.11.1987
DIN No.:	00013206

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	U26932GA1987PTC006287	Prince Pipes And Fittings Private Limited	Managing director	13/11/1987	13/11/1987	-	Active	NO
2	U31300DD1999PTC002689	Pinnacle Realty Projects Private Limited	Director	18/05/1999	18/05/1999	-	Active	NO
3	U70100MH1988PTC048363	Merino Homeland Private Limited	Director	15/05/2006	15/05/2006	25/05/2010	Under liquidation	NO
4	U45203MH2007PTC176301	Accord Infra Projects Private Limited	Director	29/11/2007	29/11/2007	-	Active	NO
5	U17210GA2007PTC006572	Ace Polyplast Private Limited	Director	03/12/2007	03/12/2007	-	Active	NO
6	U25200GJ2005PTC046624	Kenson Manufacture Private Limited	Director	09/12/2009	09/12/2009	-	Active	NO

Name :	Mr. Parag Jayant Chheda
Designation :	Whole Time Director
Address :	Room No. 1002, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	07.05.1971
Qualification :	Associate in Business Administration
Experience :	15 Years
Date of Appointment :	27.04.1996
DIN No.:	00013222

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	U26932GA1987PTC006287	Prince Pipes And Fittings Private Limited	Whole-time director	27/04/1996	27/04/1996	-	Active	NO
2	U31300DD1999PTC002689	Pinnacle Realty Projects Private Limited	Director	18/05/1999	18/05/1999	-	Active	NO
3	U45203MH2007PTC176301	Accord Infra Projects Private Limited	Director	29/11/2007	29/11/2007	-	Active	NO
4	U17210GA2007PTC006572	Ace Polyplast Private Limited	Director	03/12/2007	03/12/2007	18/07/2009	Active	NO
5	U25200GJ2005PTC046624	Kenson Manufacture Private Limited	Director	09/12/2009	09/12/2009	-	Active	NO

Name :	Mr. Vipul Jayant Chheda
Designation :	Director
Address :	Room No. 1001, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	08.06.1975
Qualification :	B. Com.
Experience :	12 Years
Date of Appointment :	03.12.2007
DIN No.:	00013234

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	U26932GA1987PTC006287	Prince Pipes And Fittings Private Limited	Director	11/03/1997	11/03/1997	-	Active	NO
2	U31300DD1999PTC002689	Pinnacle Realty Projects Private Limited	Director	18/05/1999	18/05/1999	-	Active	NO
3	U17210GA2007PTC006572	Ace Polyplast Private Limited	Director	03/12/2007	03/12/2007	-	Active	NO
4	U25200GJ2005PTC046624	Kenson Manufacture Private Limited	Director	09/12/2009	09/12/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Harshad Shah
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Jayant Shamji Chheda	960000
Tarla Jayant Chheda	3828000
Parag Jayant Chheda	239592
Parag Jayant Chheda	3360008
Jayant Karta Shamji Cheeda	12000
Pinnacle Realty Projects Private Limited – India	400
Prince Multiplast Private Limited – India	400
Heena Parag Chheda	400
Ashwini Vipul Chheda	400
Vipaul Jayant Chheda	3600000
Total	12001200

As On 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of UPVC Pipes, Fittings, Valves and PP-R Plumbing Systems.

Products :

Product Description	ITC Code
Pipes and Fittings (Joints, Elbows of Plastic)	3917.00
Taps, Cocks, Valves and Similar Appliances for Pipes	8481.00
Injections Moulding and Extruders

Terms :

Selling :

Cash, Credit: 30/60/90 Days

Purchasing :

Cash, Credit: 30/60/90 Days

PRODUCTION STATUS (As On 31.03.2010)

Particulars	Unit	Installed Capacity
Capacity Installed	M.T	82920 TPA

GENERAL INFORMATION

Customers :

• End Users and OEM’s

No. of Employees :

100 (approximately)

Bankers :

• State Bank of India, Commercial Branch, N.G. N. Vaidya Marg, Fort, Mumbai-400001, Maharashtra, India
• Bank of India, D. N. Road Branch, Mumbai – 400001, Maharashtra, India
• The Federal Bank Limited, Corporate Banking Branch, 1^st Floor, 32, Bombay Samachar Marg, Fort, Mumbai-400001, Maharashtra, India.
• Indian Overseas Bank, Fort Branch, 2/10, Elphinstone Building, Veer Nariman Road, Fort, Mumbai-400001, Maharashtra, India
• ICICI Bank Limited
• ABN Amro Bank
• Barclays Bank
• HDFC Bank Limited

Facilities :

Cash Credit: Rs. 460.000 Millions (The Federal Bank Limited)

SECURED LOANS	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In millions)
From HDFC Bank Limited
Working Capital	0.000	137.921
Term Loan / Demand Loan	0.000	250.057
From ICICI Bank Limited
Working Capital	20.423	114.129
ECB Loan (Due within one year USD 6,42,500)	82.074	126.343
Term Loan / Short Term Loan (Due within one year Rs.24.986 Millions)	183.279	102.949
From the Federal Bank Limited
Working Capital	145.892	35.720
Term Loan / Demand Loan	78.125	89.335
From Bank of India
Working Capital	56.563	--
Term Loan (Due within one year Rs. 132.859 millions)	472.006	--
From ABN Amro Bank
Term Loan / Demand	0.000	295.895
From Indian Overseas Bank
Working Capital	75.798	--
Term Loan (Due within one year Rs. 26.668 millions)	118.514	--
From Barclays Bank
Working Capital	144.748	--
Total	1377.422	1152.349
Note: 1) Working Capital Loans from Various Banks are secured / to be secured against hypothecation of stock and Book Debts and also by the Personal Guarantee of the Directors. 2) Term Loans from Various Banks are secured / to be secured on first pari passu charge basis against Immovable and Movable Properties situated at various locations, both present and future and also by the Personal Guarantee of the Directors.
UNSECURED LOANS	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In millions)
From Directors	99.269	1.081
From Shareholder	22.351	2.394
Short Term Loan	88.900	43.615
J. M. Financial Product Private Limited	0.000	5.051
Total	210.520	52.141

Banking Relations :	---
Auditors :
Name :	L.D. Joshi and Associates Chartered Accountant
Address :	2-G, Court Chambers, 2^nd Floor, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22023058
Res. No.:	91-22-40041648
Fax No.:	91-22-22005568
Pan No.:	AACFL7859G
Associates/ Firms :	Prince Marketing Address: Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari, Honda – 403530, Goa, India Pinnacle Realty Projects Private Limited Address: Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari, Honda – 403530, Goa, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12001200	Equity Shares	Rs.10/- each	Rs.120.012 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		120.012	120.012	60.006
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		454.943	338.083	349.459
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		574.955	458.095	409.465
LOAN FUNDS
1] Secured Loans		1377.422	1152.349	655.903
2] Unsecured Loans		210.520	52.141	81.035
TOTAL BORROWING		1587.942	1204.490	736.938
DEFERRED TAX LIABILITIES		85.409	0.000	0.000
TOTAL		2248.306	1662.585	1146.403
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1230.326	881.651	370.867
Capital work-in-progress		0.000	68.153	94.646
INVESTMENT		15.979	36.474	89.057
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	521.371	345.103	262.162
	Sundry Debtors	519.660	362.063	259.940
	Cash & Bank Balances	50.166	26.796	83.323
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	359.230	308.611	313.437
Total Current Assets		1450.427	1042.573	918.862
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	361.979	306.970	201.721
	Current Liabilities	18.622	44.557	60.317
	Provisions	78.976	35.577	65.011
Total Current Liabilities		459.577	387.104	327.049
Net Current Assets		990.850	655.469	519.813
MISCELLANEOUS EXPENSES		11.151	20.838	0.020
TOTAL		2248.306	1662.585	1146.403

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3648.021	2314.192	1737.365
		Other Income	28.146	(18.698)	33.514
		TOTAL (A)	3676.167	2295.494	1770.879
Less	EXPENSES
		Material consumed		1475.730	1045.773
		Employees Remuneration and Benefits		97.572	61.928
		Manufacturing and Other expenses		502.808	436.262
		Increase/Decrease in Stock		(58.108)	23.490
		TOTAL (B)	3428.854 (Including Financial Expenses)	2018.002	1567.453
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			277.492	203.426
Less	FINANCIAL EXPENSES (D)			159.857	41.657
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		360.452	117.635	161.769
Less/ Add	DEPRECIATION/ AMORTISATION (F)		113.139	57.781	40.029
	PROFIT BEFORE TAX (E-F) (G)		247.313	59.854	121.740
Less	TAX (I)		66.142	11.224	36.056
	PROFIT AFTER TAX (G-I) (J)		181.171	48.630	85.684
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		338.083	296.459	274.816
Less	Transfer to Deferred Tax Liability		64.311	0.000	0.000
Less	APPROPRIATIONS
		Appropriations to General Reserve	10.000	0.000	50.000
		Capitalized for issue of Bonus Share	0.000	7.006	0.000
		Dividend / Interim Dividend	0.000	0.000	12.001
		Dividend Distribution Tax	0.000	0.000	2.040
	BALANCE CARRIED TO THE B/S		444.943	338.083	296.459
	EARNINGS IN FOREIGN CURRENCY
		Expenses including capital expenditure	1079.530	622.675	433.578
		Earnings	54.562	42.508	51.041
	TOTAL EARNINGS		1134.092	665.183	484.619
	IMPORTS
		PVC Resins and PPR	941.488	421.081	371.260
		Chemical	20.527	16.358	16.758
		Consumable Stores	3.306	2.011	0.548
		Trading Purchase	24.429	15.252	13.718
		Capital items	58.706	99.802	19.368
	TOTAL IMPORTS		1048.456	554.504	421.652
	Earnings Per Share (Rs.)		15.10	NA	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	4000.000

Expected Sales (2011-12): Rs. 4500.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.93	2.12	4.84
Net Profit Margin (PBT/Sales)	(%)	6.78	2.59	7.01
Return on Total Assets (PBT/Total Assets}	(%)	9.23	3.89	13.66
Return on Investment (ROI) (PBT/Networth)		0.43	0.13	0.30
Debt Equity Ratio (Total Liability/Networth)		3.56	3.47	2.60
Current Ratio (Current Asset/Current Liability)		3.16	2.69	2.81

LOCAL AGENCY FURTHER INFORMATION

The Details of the sundry creditors:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors for trade	301.379	290.269	185.858
Sundry Creditors for others	29.369	16.701	15.863
Total	361.979	306.970	201.721

Note:

The Regeistered Office of the company has been shifted from Ruby House 4^th Floor, B Wing J K Sawant Marg, Dadar West, Mumbai – 400028, Maharashtra, India to the present address w.e.f 13.01.2010.

PERFORMANCE OF THE COMPANY:

The financial year 2009-10 is yet another year of significant growth. During the year, the Company has achieved a turnover of Rs.3648.021 millions as against Rs.2314.192 millions in the previous year, which is 57.64% higher as compared to the previous year. The net profit after tax was Rs. 181.171 millions as against Rs. 48.630 millions in the previous year.

FUTURE OUTLOOK:

The Company’s sales have been growing steadily from past few years and there is a gap between the demand and supply of PVC pipes and fittings. The Company decided to expand its production capacity to meet increasing demand and has recently acquired one sick unit at Bhuj-Kutch, Gujarat which is also in the manufacturing of PVC pipes and fittings. The Company also acquired shares of sick unit and is in the process of merging this unit with itself.

CONTINGENT LIABILITIES:

a) Guarantees given by Banks on behalf of the Company to Government and Semi Government Authorities up to

Rs.10.442 millions (Previous year Rs. 8.325 millions).

b) Unexpired Letters of Credit of Rs. 97.580 millions (Previous Year Rs. 165.731 millions).

c Corporate Guarantee given by the Company on behalf of its Sister Concerns M/s. Prince Marketing to The Federal Bank Limited and M/s. Pinnacle Realty Projects Private Limited to The Kotak Mahindra Bank Limited on Sanctioned Facilities of Rs.412.500 millions (Previous Year Rs 155.500 millions).

d) Income Tax under appeal Rs. 10.039 millions (Previous Year Rs.2.645 millions).

Form 8:

Corporate identity number of the company	U26932GA1987PTC006287
Name of the company	PRINCE PIPES AND FITTINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.1,Honda Industrial Estate, Phase Ii, Honda Sattari, Honda, Goa-403530, India
This form is for	Modification of charge
Type of charge	Movable Property Books Debts Current Assets and Moveable Fixed Assets
Particular of charge holder	The Federal Bank Limited, Corporate Banking Branch, 1^st Floor, 32, Bombay Samachar Marg, Fort, Mumbai-400001, Maharashtra, India. e-mail id: adlalwani@rediffmail.com
Nature of description of the instrument creating or modifying the charge	1. Second Supplemental Agreement
Date of instrument Creating the charge	15.01.2011
Amount secured by the charge	Rs. 460.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Stipulated By Bank Form Time To Time Terms of Repayment As Stipulated By Bank Form Time To Time Margin As Stipulated By Bank Form Time To Time Extent and Operation of the charge First Charge (Present And Future) Total Limit Rs.460.000 Millions (Cc=48.000 Millions,Fcdl=Rs.80.000 Millions, Wcdl=Rs.112.000 Millions, L.C.=Rs.220.000 Millions) Others As stipulated by bank from time to time and as per agreement attached and as per sanction letter of the bank
Particulars of the property charged	For Wcdl/Fcdl and C.C.=First Charge(Present And Future)-Hypothecation Of The Entire Current Assets Of The Company On Paripassu Basis With Other Working Capital Lenders For LC =Cash Margin 5% And Extension Of Charge On Pari Passu Basis With Other Workint Capital Lenders On All The Current Assets Including On Goods Procured Under LC For Working Capital Limit= Second Paripassu Charge On The Entire Fixed Assets Of The Company
Particulars of the present modification	By This Modification Limit L.C. Limit Is Reduced And Now Limits Stands To Rs.460.000 millions (Cc=48.000 million,Fcdl= Rs.80.000 million, Wcdl=Rs.112.000 million, L.C.=Rs.220.000 million),Securities Are Continued As Given By Original Charge As Well As By Modifications, Terms And Conditions As Per Agreement Attached And As Per Sanction Letter Of The Bank

Fixed Assets:

• Land
• Building
• Plant and machinery
• Electrical installation
• Computer
• Moulds and dies
• Office equipments
• Furniture and fixtures
• Vehicles

AS PER WEBSITE

PROFILE:

At Subject, they pair the best services with the best technology - a prefect 'zero defect' technology that keeps them on the cutting edge.

Innovative engineering combined with years of experience produces consistent quality, which in nurtured at every step of the manufacturing process.

Since 1970, the Prince Group commenced operation with plastic as the source material. BY 1983, the stage was fully set by Subject, to launch manufacturing of UPVC Pipes and fittings for use in water distribution systems - Construction, Agriculture, Chemical Industries, Commercial and Residential premises.

The product portfolio includes UPVC - Agri Pressure and Non Pressure Pipes and. Fittings, SWR Piping systems and Lubricants, ASTM plumbing Systems Threaded ASTM EASYFIT Plumbing Systems Solvent Weld, Roof Water System, Bore well Systems, Solvent Cement, Valves, P.T.F.E, Tape, Taps, PP-R-Plumbing Systems and CPVG SMARTFIT’ Plumbing Systems.

Manufactured from quality grade, virgin raw material, under stringent quality control measures, the products conform to levels of international and local standards, with an ISO 9001-2000 accreditation and several stringent tests, subject is a household name not only locally but also globally.

And topmost on the list of priorities is an ardent desire to live up to the dream

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.79

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	NO
--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	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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