MIRA INFORM REPORT

Report Date :

21.09.2011

IDENTIFICATION DETAILS

Name :	LIFELONG MEDITECH LIMITED
Registered Office :	D – 1, Soami Nagar ( South), New Delhi – 110017, Delhi
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.07.2002
Com. Reg. No.:	55-116251
Capital Investment / Paid-up Capital :	Rs.129.605 Millions
CIN No.: [Company Identification No.]	U85110DL2002PLC116251
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Medical Disposable Items
No. of Employees:	400 (In office – 30 + In factory 370)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 290816
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Sunder Rajan
Designation :	Accounts Department
Name :	Mr. Bhupinder Singh
Designation :	General Manager
Contact No.:	91-8800894405
Date :	20.09.2011

LOCATIONS

Registered Office :	D – 1, Soami Nagar ( South), New Delhi – 110017, Delhi, India
Tel. No.:	91-11-26017063/65
Mobile No.:	91-9810284072 (Mr. Malay Mandal)
Fax No.:	91-11-26016805
E-Mail :	malaymandal@lifelongindia.com sandeepsharma@lifelongindia.com
Location :	Owned
Factory :	Sector -5, Manesar, Gurgoan – 122050, India
Tel No.:	91-124-4335800
Fax No.:	91-124-2291509

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Atul Raheja
Designation :	Director
Address :	K -6, Sainik Farm, New Delhi – 110062, Delhi, India
Date of Birth/Age :	03.01.1964
Date of Appointment :	19.07.2002

Directors Profile:

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	U32204DL1985PLC020988	LIFELONG INDIA LIMITED	Managing director	15/05/1987	15/05/1987	-	Active	NO
2	U74899DL1994PTC059327	CREATIVE APPLIANCES Private Limited	Director	31/05/1994	31/05/1994	-	Active	NO
3	U72900DL2000PTC106281	Shaadionline Private Limited	Director	11/02/2002	11/02/2002	-	Active	NO
4	U72900DL2002PLC115125	SECURITECH SOFTWARE LIMITED	Director	26/04/2002	26/04/2002	-	Active	NO
5	U85110DL2002PLC116251	LIFELONG MEDITECH LIMITED	Managing director	01/04/2010	19/07/2002	-	Active	NO
6	L30103HR1983PLC026142	OMAX AUTOS LIMITED	Director	30/07/2003	30/07/2003	-	Active	NO
7	U57909DL1988PTC033368	DIMENSION ELECTRONICS PRIVATE LIMITED	Director	08/10/2004	08/10/2004	01/12/2007	Active	NO
8	U74899DL1991PTC043142	REFAM SECURITIES PRIVATE LIMITED	Director	25/10/2004	25/10/2004	-	Active	NO
9	U27100PB2004PLC027607	OMAX STEELS LIMITED	Director	02/11/2004	02/11/2004	20/03/2007	Active	NO
10	U45206HR2006PLC036476	OAL ENERGY & INFRASTRUCTURE LIMITED	Director	04/12/2006	04/12/2006	-	Active	NO
11	U70200DL2008PTC175946	Lifelong Real Estate Private Limited	Director	26/03/2008	26/03/2008	-	Active	NO
12	U74900DL2008PTC181978	Lifelong Finishing Academy Private Limited	Director	12/08/2008	12/08/2008	-	Active	NO
13	U40101HR2010PLC040909	Omax Engineering Services Limited	Director	15/07/2010	15/07/2010	-	Active	NO
14	U36999DL2010PTC209520	Lifelong Descarpack Medical Devices Private Limited	Director	19/10/2010	19/10/2010	-	Active	NO

Name :	Mr. Jatender Mehta
Designation :	Director
Address :	Vedaang Farm No.8, Tropical Drive, M.G. Road, Ghitormi, New Delhi – 110030, Delhi, India
Date of Birth/Age :	11.04.1949
Date of Appointment :	19.07.2002

Directors Profile:

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	L30103HR1983PLC026142	OMAX AUTOS LIMITED	Managing director	01/01/2006	28/10/1983	-	Active	NO
2	U34300DL1986PLC023498	UNITECH MACHINES LIMITED	Director	12/10/1990	12/10/1990	-	Active	NO
3	U32204DL1985PLC020988	LIFELONG INDIA LIMITED	Director	03/02/1995	03/02/1995	-	Active	NO
4	U35921PB1999PTC022219	OMAX BIKES Private LIMITED	Director	09/02/1999	09/02/1999	-	Active	NO
5	U85110DL2002PLC116251	LIFELONG MEDITECH LIMITED	Director	19/07/2002	19/07/2002	-	Active	NO
6	U74220HR2004NPL035339	GURGAON TECHNICAL DEVELOPMENT CENTRE FOR EXCELLENCE	Director	17/03/2004	17/03/2004	-	Active	NO
7	U27100PB2004PLC027607	OMAX STEELS LIMITED	Director	02/11/2004	02/11/2004	15/03/2007	Active	NO
8	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	08/09/2006	08/09/2006	-	Active	NO
9	U45206HR2006PLC036476	OAL ENERGY & INFRASTRUCTURE LIMITED	Director	04/12/2006	04/12/2006	-	Active	NO
10	U45400HR2007PTC037085	HARIDWAR ESTATES PRIVATE LIMITED	Director	06/08/2007	06/08/2007	-	Active	NO
11	U72200HR2008PTC038145	CONTECH INFOSYSTEMS PRIVATE LIMITED	Director	08/07/2008	08/07/2008	-	Strike off	NO
12	U74200DL2009PTC195360	SUKRITI DESIGNS PRIVATE LIMITED	Director	20/10/2009	20/10/2009	20/07/2011	Active	NO
13	U40101HR2010PLC040909	Omax Engineering Services Limited	Director	15/07/2010	15/07/2010	-	Active	NO

Name :	Mr. Lalit Gupta
Designation :	Director
Address :	A -372, Sarita Vihar, New Delhi – 110076, Delhi, India
Date of Birth/Age :	05.05.1940
Date of Appointment :	14.12.2007

Directors Profile:

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	U74899DL1991PTC043142	REFAM SECURITIES PRIVATE LIMITED	Director	21/02/2005	21/02/2005	-	Active	NO
2	U74899DL1994PTC059327	CREATIVE APPLIANCES Private Limited	Director	29/09/2006	01/11/2005	-	Active	NO
3	U72900DL2002PLC115125	SECURITECH SOFTWARE LIMITED	Director	06/11/2006	06/11/2006	-	Active	NO
4	U34100DL2007PLC164171	LIFELONG ELIN AUTO COMPONENTS LIMITED	Director	30/05/2007	30/05/2007	-	Active	NO
5	U85110DL2002PLC116251	LIFELONG MEDITECH LIMITED	Director	14/12/2007	14/12/2007	-	Active	NO
6	U74900DL2008PTC181978	Lifelong Finishing Academy Private Limited	Director	26/09/2009	23/09/2008	-	Active	NO
7	U72900DL2000PTC106281	Shaadionline Private Limited	Director	26/09/2009	01/09/2009	-	Active	NO

Name :	Mr. Sumeet Tandon
Designation :	Director
Address :	M -31, Kalkaji, New Delhi – 110019, Delhi, India
Date of Birth/Age :	27.09.1963
Date of Appointment :	01.01.2009

Directors Profile:

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	U85110DL2002PLC116251	LIFELONG MEDITECH LIMITED	Director	26/09/2009	01/01/2009	31/05/2010	Active	NO

Name :	Mr. Hamendra Nath Srivastava
Designation :	Director
Address :	E-106, 1^st Floor, Greater Kailash – II, New Delhi – 110048, Delhi, India
Date of Birth/Age :	14.03.1966
Date of Appointment :	21.09.2010
Date of Ceasing :	27.09.2010

Directors Profile:

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	U85110DL2002PLC116251	LIFELONG MEDITECH LIMITED	Director	21/02/2011	21/09/2010	-	Active	NO
2	U36999DL2010PTC209520	Lifelong Descarpack Medical Devices Private Limited	Director	19/10/2010	19/10/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Pawan Dubey
Designation :	Secretary
Address :	23- B, New Layal Pur Extension, Delhi – 110051, Delhi, India
Date of Birth/Age :	09.11.1985
Date of Appointment :	10.12.2008
Name :	Mr. Malay Mandal
Designation :	Head of Business Development
Name :	Mr. Sunder Rajan
Designation :	Accounts Department
Name :	Mr. Bhupinder Singh
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Jatendra Mehta	20000
Atul Raheja (HUF)	20000
Ashok Seth	100
M/s Lifelong India Limited, India	4700000
Atul Raheja	1100000
Mini Raheja	50000
Refam Securities Private Limited, India	1250000
M/s Software Limited, India	820400
TOTAL	7960500

AS ON 27.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		85.05
Directors or relatives of directors		14.70
Other top fifty shareholders		0.25
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Medical Disposable Items
Products :	Hypodermic Disposable Syringes Hypodermic Disposable Needles IV Sets IV Cannula Surgical Gloves Paper Tape
Exports :
Products :	Medical Disposable Items
Countries :	· USA · African Countries
Imports :
Products :	Raw Materials
Countries :	· China · Korea
Terms :
Selling :	Cash, Credit and L/C
Purchasing :	Cash, Credit and L/C

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, End Users and OEM’s

No. of Employees :

400 ( 30 In Office and 370 In Factory)

Bankers :

· Yes Bank Limited, 9th Floor, Nehru Centre, Discovery Of India,, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

· ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

Facilities :

SECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
TERM LOAN
Horo Honda Finlease limited	31.280	16.082
Standard Chartered Bank	0.000	0.577
Yes Bank (Against Hypothecation of Plant and machinery)	0.000	6.667
Reliance Capital Limited (Against Hypothecation Vehicle)	1.410	1.824
Religare Finvest Limited	16.500	0.000
Axis Bank – Car Loan	0.475	0.000
Cholamandalam General Insurance Company Limited	0.428	0.000
CASH CREDIT / OD ACCOUNT
Standard Chartered Bank	5.194	46.493
Yes Bank (Against Hypothecation of Inventories and Debtors)	20.090	21.244
Yes Bank – PCFC Loan	18.262	0.000
State Bank of India, New Delhi	38.656	0.000
TOTAL	132.297	92.887

Loan from Hero Honda Finlease and Religare Finvest Limited are secured by hypothecation of Plant and Machinery specifically acquired out of its loan amount.)

Working Capital Loan from Standard Chartered bank and Yes bank are secured by First pari-passu charge over current assets of the company and Second pari-passu charge on fixed assets of the company)

UNSECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
FROM CORPORATE AND OTHERS
Lifelong India Limited	28.233	28.233
Refam Securities Private Limited	10.007	0.023
Atul Raheja	2.612	2.358
Religare Finvest Limited	3.500	0.000
TOTAL	44.353	30.614

Banking Relations :	--
Auditors :
Name :	Nipun Khurana and Associates Chartered Accountant
Address :	B -192, Gujranwala Town –I, Delhi – 110009, India
Tel. No.:	91-11-27421201-02
Mobile No.:	91-9810100053
Fax No.:	91-11-42821206
E-Mail :	khurananipun@yahoo.com
Holding Company :	Lifelong India Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs. 10 each	Rs.90.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7960500	Equity Shares	Rs. 10 each	Rs.79.605 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		79.605	79.605	27.105
2] Share Application Money		0.000	0.000	12.500
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(6.901)	(13.060)	0.000
NETWORTH		72.704	66.545	39.605
LOAN FUNDS
1] Secured Loans		132.297	92.887	78.273
2] Unsecured Loans		44.353	30.614	69.124
TOTAL BORROWING		176.650	123.501	147.397
DEFERRED TAX LIABILITIES		9.690	4.863	3.025
TOTAL		259.044	194.909	190.027
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		154.313	97.208	88.450
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.240	30.912	42.750
	Sundry Debtors	147.052	111.887	71.381
	Cash & Bank Balances	14.446	4.652	6.769
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.635	18.995	19.331
Total Current Assets		247.373	166.446	140.231
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	60.739	43.655	53.603
	Other Current Liabilities	81.903	25.090	20.776
	Provisions	0.000	0.000	0.000
Total Current Liabilities		142.642	68.745	74.379
Net Current Assets		104.731	97.701	65.852
MISCELLANEOUS EXPENSES		0.000	0.000	35.725
TOTAL		259.044	194.909	190.027

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	458.950	405.244	273.542
		Other Income	6.104	(0.213)	0.738
		TOTAL (A)	465.054	405.031	274.280
Less	EXPENSES
		Cost of Material Consumed	263.487	229.994	173.019
		Manufacturing Expenses	55.763	39.685	32.099
		Administrative Expenses	32.105	19.711	16.061
		Selling Expenses	62.023	57.509	31.302
		TOTAL (B)	413.378	346.899	252.481
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		51.676	58.132	21.799
Less	FINANCIAL EXPENSES (D)		27.950	22.756	15.508
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.726	35.376	6.291
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.446	7.918	4.896
	PROFIT BEFORE TAX (E-F) (G)		13.280	27.458	1.395
Less	TAX (H)		4.122	4.904	3.642
	PROFIT AFTER TAX (G-H) (I)		6.158	22.554	(2.247)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(13.060)	(35.614)	(33.367)
	BALANCE CARRIED TO THE B/S		(6.901)	(13.060)	(35.614)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.32	5.56	(0.81)
Net Profit Margin (PBT/Sales)	(%)	2.89	6.77	0.50
Return on Total Assets (PBT/Total Assets}	(%)	3.31	10.41	0.61
Return on Investment (ROI) (PBT/Networth)		0.18	0.41	0.03
Debt Equity Ratio (Total Liability/Networth)		4.40	2.88	5.59
Current Ratio (Current Asset/Current Liability)		1.73	2.42	1.88

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW

During the year, the Gross Sales of the company has increased from Rs.434.159 Millions in the previous year to Rs. 478.072 Millions in this year registering a growth of 10.11 %. Net Sales and other income of the company has also been increased from Rs. 405.031 Millions in the previous year to Rs. 465.055 Millions in this year registering a growth of 14.82%.

During the year, the company has recorded a decrease in profit before tax of Rs. 13.279 Millions as compared to profit of Rs. 27.458 Millions of the previous year and the profit after tax in this year also decreased to Rs. 6.159 Millions as against the profit of Rs.22.555 Millions of the previous year. Increase in the cost of raw materials, manufacturing expenses and administration expenses have led to the decrease in the Profit before tax.

The Company has strengthened its management team and other staff keeping in mind the huge potential in export and domestic market. The advantage of this will flow in coming years.

There is a good response from the market for the product of the company due to its high quality and this coupled with a good sales distribution network has led to increase in sales volume. The company is also continuously trying to add new products and customers and expecting a good growth in coming years.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	U85110DL2002PLC116251
Name of the company	LIFELONG MEDITECH LIMITED
Address of the registered office or of the principal place of business in India of the company	D – 1, Soami Nagar ( South), New Delhi – 110017, Delhi, India
Type of charge	Movable Property (Not being pledge)
Particular of charge holder	Tata Capital Limited, One Forbes, Dr V B Gandhi Marg,Fort, Mumbai – 400001, Maharashtra, India.
Nature of description of the instrument creating or modifying the charge	Loan Cum Hypothecation Cum Guarantee Agreement Dated 26.04.2010.
Date of instrument Creating the charge	26.04.2010
Amount secured by the charge	Rs.50.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Long Term Lending Rate (LTLR) @ 15% p.a. Rate of Interest @ 2 % p.a. below LTLR. Terms of Repayment Principal amount to be repaid in 60 monthly installments. Margin 25% of Invoice/Machine Value backed by bank statement. Extent and Operation of the charge The Charge extends to the due repayment of the principal amount of Rupees Fifty Millions including Interest, Additional Interest, Charges, Costs, Expenses and all other monies payable under the Loan cum Hypothecation Agreement dated 26.04.2010. In case of default in payment of the installments of principal or interest etc. additional interest @ 2% per annum for the period during which default continues.
Short particulars of the property charged	Equipments Used In 10 Ml Brazil Syringe Project-Phase I 2 Nos 10 Ml Barrel 44 Cavity Mould In Luer Slip Tip 1 Nos 10 Ml Barrel 44 Cavity Mould In Luer Lock Tip 3 Nos 10 Ml Plunger 40 Cavity Mould 2 Nos 10 Ml Gasket 80 Cavity Mould 1 Nos 10 Ml Printing Machine 1 Nos 10 Ml Assymbly Machine 1 Nos 10 Ml Blister Packing Machine With Syringe Auto Feeder 1 Nos 10 Ml Blister Packing Machine With Syringe & Needle Auto Feeder 5 Nos Flexo Printer For The Blister Packing Machines 3 Nos Sterlizer 8 Nos Imm 150 Ton 8 Nos Hopper Loader For Imm 1000 Mtr Electrical Cable For Machines And Mechanical Work Utilty (Dg Set/ Process Chiller/ Grinder/ Cooling Tower) 1 Nos Carton Tapping Machine 1 Nos Strapping Machine Equipments Used In 20 Ml Brazil Syringe Project - Phase Ii 1 Nos 20 Ml Barrel Mould 28 Cavity In Luer Slip Tip 1 Nos 20 Ml Barrel Mould 28 Cavity In Luer Lock Tip 2 Nos 20 Ml Plunger Mould 24 Cavity 1 Nos 20 Ml Gasket Mould 56 Cavity 1 Nos 20 Ml Printing Machine 1 Nos 20 Ml Assymbly Machine 1 Nos 20 Ml Blister Packing Machine With Syringe Auto Feeder 2 Nos Sterlizer 4 Nos Imm 180 Ton 4 Nos Hopper Loader For Imm

FIXED ASSETS

• Refrigrator
• Computer
• Electrical Equipment
• Furniture and Fixture
• Office Equipment
• Plant and machinery
• Mould, Tackles and Dies

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.48.22
UK Pound	1	Rs.75.63
Euro	1	Rs.65.64

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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

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