MIRA INFORM REPORT

Report Date :

31.10.2011

IDENTIFICATION DETAILS

Name :	PUDUMJEE INDUSTRIES LIMITED (w.e.f. 04.03.2008)
Formerly Known As :	PUDUMJEE AGRO INDUSTRIES LIMITED
Registered Office :	Thergaon, Chinchwad, Pune – 411033, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.12.1965
Com. Reg. No.:	11-013394
Capital Investment / Paid-up Capital :	Rs.36.000 millions
CIN No.: [Company Identification No.]	L74999MH1999PLC013394
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15791G
PAN No.: [Permanent Account No.]	AAACP0487B
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacture and Sale of various types of Papers such as Crepe Tissue, M.G. Kraft, Carbon Based Tissue, Poster Papers, etc.
No. of Employees :	400 (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 1611000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred some losses in the current year. However, Net-worth appears to be satisfactory. Trade relations are 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

LOCATIONS

Registered Office/ Factory 1 :	Thergaon, Chinchwad, Pune – 411033, Maharashtra, India
Tel. No.:	91-20-30613333
Fax No.:	91-20-27273294/ 30613388
E-Mail :	sbw@pune.pudumjee.com sk@pune.pudumjee.com agro@pudumjee.com mumbai@pudumjee.com
Website :	http://www.pudumjee.com
Area :	65 Acres
Location :	Owned
Corporate/ Sales Office :	Jatia Chambers, 60, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22674485 / 4529/30213333
Fax No.:	91-22-22658316
E-Mail :	agro@pudumjee.com patel.ashok@pudumjee.com
Factory 2 :	Agro Division Narsinghpur, Madhya Pradesh, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Shyam M. Jatia
Designation :	Chairman cum Managing Director
Experience :	33 Years
Other Directorship:	Pudumjee Hygiene Products Limited Pudumjee Plant Laboratories Limited Pudumjee Investment and Finance Company Limited
Name :	Mr. A. S. Dayal
Designation :	Director
Name :	Mr. R. C. Saraf
Designation :	Director
Name :	Mr. A. K. Somany
Designation :	Director
Name :	Mr. G. N. Jadodiya
Designation :	Director
Name :	Mr. S. C. Kedia ( Up to 03.05.2011)
Designation :	Director
Name :	Mr. R.P Shroff (Appointed w.e.f 05.05.2011)
Designation :	Director

KEY EXECUTIVES

Name :	Mr. J. W. Patil
Designation :	Assistant Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,747,149	9.71
Bodies Corporate	9,192,577	51.07
Sub Total	10,939,726	60.78
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	1,478,936	8.22
Sub Total	1,478,936	8.22
Total shareholding of Promoter and Promoter Group (A)	12,418,662	68.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6,000	0.03
Financial Institutions / Banks	500	-
Sub Total	6,500	0.04
(2) Non-Institutions
Bodies Corporate	2,256,859	12.54
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	2,659,567	14.78
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	336,240	1.87
Any Others (Specify)	322,172	1.79
Non Resident Indians	4,473	0.02
Clearing Members	18,940	0.11
Hindu Undivided Families	298,759	1.66
Sub Total	5,574,838	30.97
Total Public shareholding (B)	5,581,338	31.01
Total (A)+(B)	18,000,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	18,000,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of various types of Papers such as Crepe Tissue, M.G. Kraft, Carbon Based Tissue, Poster Papers, etc.

Products :

Item Code No.	Product Description
480260.02	M. G. Poster Paper
480251.05	M. G. Tissue Paper
480300.00	Crepe Tissue Paper

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Paper	M. T.	NA	22,500	18510

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

v State Bank of India, Chinchwad, Pune, Maharashtra, India

v IDBI Bank Limited

v Axis Bank Limited

v The United Western Bank Limited

v Bank of India

v Centurion Bank of Punjab Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Banks :
Against hypothecation of stocks, stores and Book Debts Cash Credit :	29.071	90.169*
Against first charge on Fixed Assets of the company Term Loan	67.039	77.372
Total	96.110	167.541
Notes: Also secured by a second charge on fixed assets of the company, ranking pari passu among the consortium banks.
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Bank	0.000	0.000
From Others	313.753	459.879
Total	313.753	459.879

Banking Relations :	--
Auditors :
Name :	Khare and Company Chartered Accountants
Solicitors :
Name :	Kanga and Company Chartered Accountants
Subsidiary :	· Pudumjee Hygiene Products Limited. Line of Business: Distribution of hygiene related Paper Products and Other Products.
Associates :	· Pudumjee Pulp and Paper Mills Limited Manufacture of various varieties of paper such as Calendared, Coated, Laminating Base, Packing Tissue, Security etc. · Pudumjee Plant Laboratories Limited The Company is engaged in the business of floriculture including cultivation of cut flowers and tissue culture products such as Banana Plants, Ornamental Plants, etc. · Pudumjee Investments and Finance Company Limited (PIFCO) · Prime Developers · Pudumjee-G Corp. Developers

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.2/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.2/- each	Rs.36.000 millions

NOTE:

Of the above 8,135 Equity Shares were allotted as fully paid up for consideration other than cash and 61,20,575

Equity shares were allotted as fully paid up Bonus Shares issued by way of capitalisation of Reserves.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		36.000	36.000	36.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		366.804	382.959	369.526
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		402.804	418.959	405.526
LOAN FUNDS
1] Secured Loans		96.110	167.541	68.843
2] Unsecured Loans		313.753	459.879	204.127
TOTAL BORROWING		409.863	627.420	272.970
DEFERRED TAX LIABILITIES		7.400	18.000	13.500
TOTAL		820.067	1064.379	691.996
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		236.330	249.427	131.725
Capital work-in-progress		1.628	0.979	11.059
INVESTMENT		176.816	126.816	126.816
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	211.855	214.057	99.228
	Sundry Debtors	160.336	157.281	126.848
	Cash & Bank Balances	3.233	13.741	18.837
	Other Current Assets	0.000	0.000	0.565
	Loans & Advances	167.880	406.518	312.761
Total Current Assets		543.304	791.597	558.239
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.740	52.422	41.780
	Other Current Liabilities	83.238	36.040	85.440
	Provisions	11.033	15.978	8.623
Total Current Liabilities		138.011	104.440	135.843
Net Current Assets		405.293	687.157	422.396
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		820.067	1064.379	691.996

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Income from Operation	986.010	702.694	965.131
		Other Income	51.627	46.235	45.269
		TOTAL (A)	1037.637	748.929	1010.400
Less	EXPENSES
		Manufacturing and Other Expenses	996.112	734.724	867.660
		Trade Purchases	83.236	18.217	55.379
		Increase / (Decrease) in Stock	(32.161)	(41.964)	42.536
		Net Foreign Exchange Loss/ (Gain)	0.000	0.000	12.824
		TOTAL (B)	1047.187	710.977	978.399
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(9.550)	37.952	32.001
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.631	11.407	9.697
	PROFIT/LOSS BEFORE TAX (E-F) (G)		(26.181)	26.545	22.304
Less	TAX (H)		10.550	9.000	6.000
	PROFIT/LOSS AFTER TAX (G-H) (I)		(15.631)	17.545	16.304
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		122.633	109.286	92.982
Less	APPROPRIATIONS
		Proposed Dividend	0.000	3.600	0.000
		Tax on Proposed Dividend	0.000	0.598	0.000
	BALANCE CARRIED TO THE B/S		107.002	122.633	109.286
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	71.338	2.149	12.490
		Deemed Export	0.000	0.000	7.011
	TOTAL EARNINGS		71.338	2.149	19.501
	IMPORTS
		Raw Materials	286.711	299.278	259.681
		Components and Spares Parts	21.781	19.278	12.978
		Capital Goods	0.225	44.124	8.123
		Trader Goods	59.962	17.769	44.482
	TOTAL IMPORTS		368.679	380.449	325.264
	Earnings Per Share (Rs.)		(0.87)	0.97	0.91

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011
Type	1^st Quarter
Sales Turnover	336.400
Total Expenditure	326.400
PBIDT (Excl OI)	10.000
Other Income	0.000
Operating Profit	10.000
Interest	4.900
Exceptional Items	0.000
PBDT	5.100
Depreciation	4.100
Profit Before Tax	1.000
Tax	0.300
Reported PAT	0.700
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	0.700

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.51)	2.34	1.61
Net Profit Margin (PBT/Sales)	(%)	(2.66)	3.78	2.31
Return on Total Assets (PBT/Total Assets}	(%)	(3.36)	2.55	3.23
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.06	0.06
Debt Equity Ratio (Total Liability/Networth)		1.36	1.75	1.01
Current Ratio (Current Asset/Current Liability)		3.94	7.58	4.11

LOCAL AGENCY FURTHER INFORMATION

OPERATION

Whilst the Company could achieve significant growth in its turnover during the year, the unabated rise in inflationary trend in general and cost of inputs in particular especially raw material and fuel, coupled with frequent shutdowns of the paper making machine to stabilize its working after rebuild has put enormous pressure on Company's operations resulting in loss for the year. The Management is concentrating its efforts to suitably revise the product mix so as to improve the profitability of the Company.

Prime Developers, a firm in which the Company is a partner for Real Estate business, is in the process of winding up the project by selling the inventory of Apartments and constructing remaining Villas on made to order basis. The project is expected to be wound-up by the end of the next year. The Company's interest bearing investment in the firm has, therefore, come down to ` 50.000 millions as at 31st March 2011 as against `160.000 millions as at 31st March 2010.

The Wholly-owned subsidiary of the Company, namely; Pudumjee Hygiene Products Limited (PHPL) engaged in the business of marketing and distribution of Hygiene and other products, is a market leader in its segment, which was able to achieve a higher turnover of about ` 850.000 millions during the year with a marginal loss of about ` 6.100 millions. The Brand 'Greenlime' under which it markets its products, is well recognized and received in the market. The efforts are continuing to further enhance its presence. The labour relations in the Company have remained cordial.

MANAGEMENT DISCUSSION AND ANALYSIS:

The Company is engaged in the business of manufacture of Crepe Tissues for the Hygiene industry and other specialty products like Packaging Tissue, Carbon Base Paper etc. Though of late, there has been a growing and intense competition, its products are well received in the market and continue to command premium. The Company continues to lay its stress on quality coupled with cost reduction and product mix.

The residential project of Real Estate Business in Tirupur, being carried out in Partnership, is towards the end and is in the process of winding up after constructing remaining Villas. The Company's interest bearing investment in the said project therefore has substantially come down.

Pudumjee Hygiene Products Limited (PHPL), the Wholly-owned subsidiary of the Company, has enlarged its

geographical area for distribution of products and 'Greenlime' brand is a registering growing presence in the areas

hitherto uncovered.

The existing internal controls of the Company are periodically reviewed by the Audit Committee and are considered to be adequate.

The Company employs about 143 employees and its relations with the labour have been cordial.

CONTINGENT LIABLITIES:

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
(i) Letters of Credit and bank Guarantees in favour of Govt. Authorities and suppliers of raw materials, spares etc.*	27.073	22.333
(ii) Guarantees for loans granted to companies.	17.027	15.744
(iii) Claims against the Company not acknowledged as debts for excise duty, Income tax, commercial claims etc. (Including demands contested in appeals)**	47.709	47.300

· *Will not affect the future profitability.

· ** May affect the future profitability to the extent indicated if such liabilities crystallize.

FIXED ASSETS

· Land

· Building

· Machinery

· Furniture and Fixtures

· Vehicles

WEBSITE DETAILS:

HISTORY:

Subject is formally Pudumjee Agro Industries Limited (PAIL) was incorporated on 31st December 1965 as a Private Limited Company with the object of running a paper mill at Bombay under the name and style of F. Pudumjee and company Private Limited. It became deemed Public Limited Company u/s.43A (a) on 4th May, 1977 and subsequently was converted into Public Limited Company on 31.1.86. The name of the Company was changed to its present name on 4th March 2008.

The company had made an application to the Government for permission to import a second hand paper machine. However, before the sanction was received, the mill was completely destroyed by fire in March 1976. In the meanwhile, the Company received a licence to import a second hand paper machine. Since the land where the paper mill was located was acquired by the Municipal Corporation, the company decided to install the imported machinery at Thergaon at Pune. In April 1977, the Company became a subsidiary of Pudumjee Pulp and Paper Mills Limited (PPPML).

The imported machinery was commissioned in 1987 with a total capacity of 3000 TPA. In the year 1985, the Company expanded its capacity to 11000 TPA with the installation of one or more imported paper machine. In February 1987, the Company ceased to be a subsidiary of PPPML. In January 1985, Mr. S. M. Jatia was appointed as the Managing Director of the Company and after the disinvestment of shareholding by PPPML in the Company; he acquired control of the Company along with his associates.

In 1991, the Company installed its fourth paper machine having a capacity of 10500 TPA with further increased its installed capacity to 21,500 TPA. One of the old machines installed in 1987 was later on phased out which reduced the installed capacity to 18,500 TPA.

COMPANY PROFILE:

Subject is Formerly Know as Pudumjee Agro Industries Limited (PAIL), Pune, (Maharashtra), India based Company is engaged in the manufacture and sale of various types of papers such as Crepe Tissue, M.G. Kraft, Carbon based tissue, Poster papers, etc. and is a member of the M.P. Jatia Group of Companies, which group includes, amongst others, Pudumjee Pulp and Paper Mills Limited, the flagship Company and manufacturer of Specialty Papers.

The Company which has its Paper Manufacturing Plant and Registered Office at Thergaon, Pune (India) is managed by Board of Directors comprising of eminent personalities from various fields and disciplines headed by Mr. Shyam Mahabirprasad Jatia.

The Company’s equity shares are listed at Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

Both the existing paper machines are of M.G. Type (Machine Glazed) which is capable of manufacturing fairly wide range of papers such as Crepe Tissue, Hygene Tissue, M.G. Tissue, Carbon Tissue, and Wrappers for fruit, flowers and food, Poster Paper, Kraft Paper etc.

LANDMARKS

· In April 1977 the Company became a subsidiary of Pudumjee Pulp and Paper Mills Limited.

· In 1985 the Company expanded its production capacity from 3,000 tonnes of paper per annum to 11,000 tonnes of paper per annum with installation of one more imported paper machine.

· In February 1987 the Company ceased to be a subsidiary of Pudumjee.

· In 1991 the Company installed another paper machine thereby increasing installed capacity of paper manufacturing from 11,000 tonnes per annum to 21,500 tonnes per annum. After phasing out the old machines the present installed capacity of paper manufacturing stands at 18,500 tonnes per annum.

· The Company made a maiden Public Issue of its shares in August 1994 which got oversubscribed by 25 times.

· During 2004-05 Pudumjee Hygiene Products Limited became a wholly owned subsidiary of the company, which is engaged in the business of distribution of hygiene products. 

UNAUDITED FINANCIAL RESULT FOR THE QUARTER ENDED 30.06.2011

		Particulars	Quarter Ended
			30.06.2011
1	(a)	Gross Sales /Income from Operations	371.800
		Less Excice Duty	15.600
		:Vat/Sales Tax and Service Tax	21.800
		Net Sales/Income from Operations	334.400
	(b)	Other Income	2.000
		Total Income :	336.400
2		Expenditure
	(a)	(Increase)/ Decrease in stocks in Trade	(14.000)
	(b)	Consumption of Raw Materials	185.400
	(c)	Purchases of  Traded Goods.	40.600
	(d)	Consumption of Fuel, Power & Water	55.400
	(e)	Employees Cost	12.900
	(f)	Other Expenditure	46.100
	(g)	Total	326.400
3		Profit/(Loss) from Operations before Other Income Interest & Depreciation.	10.000
4		Depreciation.	4.100
5		Profit/(Loss) from Operations before Other Income & Interest.	5.900
6		Other Income	0.000
7		Profit/(Loss) before  Interest & Financial Charges	5.900
8		Interest & Financial charges	4.900
9		Profit/(Loss) from Ordinary activities before Tax	1.000
10		Tax Expenses/(Saving) (including Deferred Tax)	0.300
11		Net Profit/(Loss) for the period	0.700
12		Paid-up Equity Share Capital (Face value Rs. 2/- per share)	3.600
13		Reserves (Excluding Revaluation Reserves)
14		Basic/Diluted EPS for the period (Rs.)	0.04
15		Public Shareholding
		-Number of Shares	5,581,338
		-Percentage of Shares Holding	31.01%
16		Promoters and Promoter group Shareholding
	(a)	Pledged Encumbered	NIL
	(b)	Non-Encumbered
		Number of Shares	12,418,662
		Percentage of Shares (as a % of the total Shareholding of Promoters & Promoter group.)	100%
		· Percentage of Shares (as a % of the total Share Capital of Company.)	68.99%

PRESS RELEASE:

Pudumjee Industries fixes book closure for AGM

Accord Fintech (India)

07 June 2011

India, June 07 -- Pudumjee Industries has informed that the register of members and share transfer books of the company will remain closed from August 19, 2011 to August 29, 2011 (both days inclusive) for the purpose of Annual General Meeting (AGM) of the company. The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech.

Fixes Book Closure for AGM

Accord Fintech (India)

07 June 2011

India, June 07 -- Pudumjee Industries Limited has informed BSE that the Register of Members and Share Transfer Books of the Company will remain closed from August 19, 2011 to August 29, 2011 (both days inclusive) for the purpose of Annual General Meeting (AGM) of the Company. Published by HT Syndication with permission from ACCORD FINTECH BSE.

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.48.82
UK Pound	1	Rs.78.57
Euro	1	Rs.69.29

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	4
--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	YES
--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.