MIRA INFORM REPORT

Report Date :

23.09.2011

IDENTIFICATION DETAILS

Name :	WORTHINGTON NITIN CYLINDERS LIMITED (w.e.f. 08.02.2011)
Formerly Known As :	NITIN CYLINDERS LIMITED
Registered Office :	501, Delta Technology Street, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.09.2006
Com. Reg. No.:	11-164954
Capital Investment / Paid-up Capital :	Rs.36.125 millions
CIN No.: [Company Identification No.]	U27109MH2006PLC164954
TAN No.: [Tax Deduction & Collection Account No.]	MUMN14374D
PAN No.: [Permanent Account No.]	AACCN3694A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture and Sale of High Pressure Seamless Compressed Natural Gas (CNG) Cylinders.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 2882000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has incurred some losses in the year 2009-10. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

LOCATIONS

Registered Office :	501, Delta Technology Street, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India
Tel. No.:	91-22-25700392
Fax No.:	Not Available
E-Mail :	cs@nitinfire.com cylinders@nitincylinders.com nitinfire@vsnl.com
Website :	http://www.nitincylinders.com
Corporate Head Quarter :	502, Delta, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India
Tel. No.:	91-22-40457000
Fax No.:	91-22-66920910
E-Mail :	cylinders@nitincylinders.com
Factory :	Located at: v Vishakhapatnam Special Economic Zone (VSEZ), Andhra Pradesh

DIRECTORS

As on 10.09.2010

Name :

Mr. Nitin Mansukhlal Shah

Designation :

Director

Address :

B/8, Neelkanth Dhara, 90 Feet Road, Ghatkopar (East), Mumbai - 400 077, Maharashtra, India

Date of Appointment :

27.09.2006

DIN No.:

00073232

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	U24246MH1996PTC098944	Alliance Pharma -Chem Private Limited	Director	02-05-03	02-05-03	-	Active	NO
2	U70100MH2003PTC140443	Aanant Developers Private Limited	Director	13-05-03	13-05-03	-	Active	NO
3	U45200MH2005PTC158554	Aanant Realities Pvt Ltd	Director	02-01-06	02-01-06	-	Active	NO
4	L29193MH1995PLC092323	Nitin Fire Protection Industries Limited	Managing director	01-04-09	01-04-06	-	Active	NO
5	U27109MH2006PLC164954	Worthington Nitin Cylinders Limited	Director	27-09-06	27-09-06	-	Active	NO
6	U45200MH2008PTC179442	Parin Constructions Company Private Limited	Director	25-02-08	25-02-08	-	Active	NO
7	U67190MH2009PTC192726	Nitin Trusteeship Company Private Limited	Director	26-05-09	26-05-09	-	Active	NO

Name :

Mr. Kunal Nitin Shah

Designation :

Director

Address :

B/8, Neelkanth Dhara, 90 Feet Road, Ghatkopar (East), Mumbai - 400 077, Maharashtra, India

Date of Appointment :

27.09.2006

DIN No.:

00077216

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	U24246MH1996PTC098944	Alliance Pharma -Chem Private Limited	Director	02-05-03	02-05-03	-	Active	NO
2	U28121MH2005PTC152345	Eurotech Cylinders Private Limited	Managing director	01-04-09	01-04-05	21-12-10	Active	NO
3	U27109MH2006PLC164954	Worthington Nitin Cylinders Limited	Director	27-09-06	27-09-06	-	Active	NO
4	U67190MH2010PTC208355	Innova Finance Corporation Private Limited	Director	28-09-10	28-09-10	-	Active	NO
5	L29193MH1995PLC092323	Nitin Fire Protection Industries Limited	Director	11-08-11	29-05-11	-	Active	NO

Name :

Mr. James Oliver Stevning

Designation :

Director

Address :

298, Weatherburn CT, Powell 43065

Date of Birth/Age :

25.07.1959

Date of Appointment :

29.12.2010

DIN No.:

03297799

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	U27109MH2006PLC164954	Worthington Nitin Cylinders Limited	Director	29-12-10	29-12-10	-	Active	NO

Name :

Mr. Dustan Lee Mcclintock

Designation :

Director

Address :

5521, Teresas TRL, Galena NA

Date of Birth/Age :

18.02.1966

Date of Appointment :

29.12.2010

DIN No.:

03297751

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	U27109MH2006PLC164954	Worthington Nitin Cylinders Limited	Director	29-12-10	29-12-10	-	Active	NO

Name :

Mr. Harry Goussetis

Designation :

Director

Address :

6069, Sunbury RD, Westerville, 43082

Date of Birth/Age :

28.04.1954

Date of Appointment :

29.12.2010

DIN No.:

03297822

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	U27109MH2006PLC164954	Worthington Nitin Cylinders Limited	Director	29-12-10	29-12-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.09.2010

Names of Shareholders	No. of Shares	Percentage of Holding
Nitin Fire Protection Industries Limited	3611660	99.977
Nitin Shah (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Rahul Nitin Shah (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Kunal Nitin Shah (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Saroj Shah (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Reshma Shah (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Dhruti Sanghvi (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Nitin Shah HUF (Nominee of Nitin Fire Protection Industries Limited)	120	0.003
Total	3612500	100.000

As on 29.12.2010

Names of Allottees	No. of Shares
Worthington Industries Mauritius	2228740
Total	2228740

As on 10.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.97
Directors or relatives of directors	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of High Pressure Seamless Compressed Natural Gas (CNG) Cylinders.

Products :

v Cylinders

v Cascades

v Dispensers

Item Code No. (ITC Code)	7311 0090
Product Description	High Pressure Seamless CNG Cylinders

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed/ Installed Capacity	Actual Production
High pressure seamless CNG cylinders	Nos.	500000	30520

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Dena Bank, Corporate Business Branch, C-10, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

v State Bank of Hyderabad, Overseas Branch, 1204, Ashok Mahal, Tulloch Road, Colaba, Mumbai – 400 039, Maharashtra, India

v State Bank of India, Industrial Finance Branch, Snehal Chambers, Teli Gulli, Andheri (East), Mumbai – 400 069, Maharashtra, India

v Yes Bank Limited

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks:
Working Capital Loans: *
Rupee Loans	270.040	198.164
Foreign Currency Loans	47.644	144.121
Term Loans:
Rupee Loans	18.245	30.599
Foreign Currency Loans [Amount repayable within one year Rs.82.145 millions (Rs.91.173 millions)]	158.002	257.512
Total	493.931	630.396

(* includes buyers credit availed by the Company)

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Short term loans and advance:
From the holding company	55.000	0.000
From a fellow subsidiary	5.000	0.000
Interest accrued and due	0.448	0.000
Total	60.448	0.000

Banking Relations :	--
Auditors :
Name :	Tolia and Associates Chartered Accountants
Address :	B/7, Madhu Parag, 69, Swastik Society, Road No.4, JVPD Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra, India
Tel. No.:	91-22-26103538
Income-tax PAN of auditor or auditor's firm :	AAAPT2147D
Holding Company :	Nitin Fire Protection Industries Limited CIN No.: L29193MH1995PLC092323
Fellow Domestic Subsidiaries :	v Alert Fire Protection Systems Private Limited v Eurotech Cylinders Private Limited v Logicon Building Systems Private Limited
Fellow Foreign Subsidiaries :	v Nitin Ventures FZE, UAE v Nitin Global Pte Limited, Singapore (effective July 23, 2009)
Foreign Associate of the Holding Company :	New Age Company LLC, UAE

CAPITAL STRUCTURE

After 10.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5841240	Equity Shares	Rs.10/- each	Rs.58.412 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3612500	Equity Shares	Rs.10/- each	Rs.36.125 millions

(Entirely held by Nitin Fire Protection Industries Limited, the holding company and its nominees)

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		36.125	36.125	26.475
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		684.309	688.215	493.525
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		720.434	724.340	520.000
LOAN FUNDS
1] Secured Loans		493.931	630.396	507.892
2] Unsecured Loans		60.448	0.000	0.000
TOTAL BORROWING		554.379	630.396	507.892
DEFERRED TAX LIABILITIES		24.372	10.990	0.000
TOTAL		1299.185	1365.726	1027.892
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		702.905	501.063	0.000
Capital work-in-progress		40.458	303.432	610.400
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	485.565	433.265	366.573
	Sundry Debtors	422.434	243.608	0.000
	Cash & Bank Balances	13.661	12.916	20.178
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.049	11.193	70.772
Total Current Assets		930.709	700.982	457.523
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	373.670	136.983	38.920
	Other Current Liabilities	0.767	1.469
	Provisions	0.450	1.543	1.415
Total Current Liabilities		374.887	139.995	40.335
Net Current Assets		555.822	560.987	417.188
MISCELLANEOUS EXPENSES		0.000	0.244	0.304
TOTAL		1299.185	1365.726	1027.892

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales
		- Export Sales	445.028	405.782	0.000
		- Domestic Sales	81.970	144.552	0.000
		Other Operating Income	0.373	0.163	0.000
		Other Income	0.765	1.011	0.000
		TOTAL (A)	528.136	551.508	0.000
Less	EXPENSES
		Raw Materials Consumed	507.344	456.261	0.000
		Manufacturing and Other Expenses	68.014	104.497	0.000
			575.358	560.758	0.000
		Variation in Inventories	(129.097)	(103.934)	0.000
		TOTAL (B)	446.261	456.824	0.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		81.875	94.684	0.000
Less	INTEREST & FINANCIAL EXPENSES (D)		49.981	50.434	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.894	44.250	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.280	21.060	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		8.614	23.190	0.000
Less	TAX (H)		12.520	11.850	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(3.906)	11.340	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.340	0.000	0.000
	BALANCE CARRIED TO THE B/S		7.434	11.340	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export Sales at FOB	445.028	387.014	0.000
		Commission	0.000	0.000	2.108
	TOTAL EARNINGS		445.028	387.014	2.108
	IMPORTS
		Raw Materials	437.045	380.989	NA
		Capital Goods	0.000	103.221	NA
	TOTAL IMPORTS		437.045	484.210	NA
	Earnings/ (Loss) Per Share (Rs.)		(1.47)	4.28	0.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(0.74)	2.06	0.00
Net Profit Margin (PBT/Sales)	(%)	1.63	4.21	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.53	1.93	0.00
Return on Investment (ROI) (PBT/Networth)		0.01	0.03	0.00
Debt Equity Ratio (Total Liability/Networth)		1.29	1.06	1.05
Current Ratio (Current Asset/Current Liability)		2.48	5.01	11.34

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND AND NATURE OF OPERATIONS:

The Company was incorporated in Mumbai, India on September 27, 2006 as a public limited company under the 'Companies Act, 1956' (the 'Act') and is a 100% subsidiary of Nitin Fire Protection Industries Limited (the 'Holding Company’). The Company's business activity is that of manufacture and sale of high pressure seamless compressed natural gas (CNG) cylinders with its manufacturing facilities located at Vishakhapatnam Special Economic Zone (VSEZ), Andhra Pradesh and sales being both within and outside India. The Company has the following domestic/international accreditations'/certifications: ISO 9001:2000 (BVQI certification by Bureau Veritas (India) Private Limited), NZS 5454:1989, ISO 11439:2000, ISO 9809-1:1999, EN 1964-1:1999, IS0 15490 and IS 7285-2 and is also rated 'A-/Stable/P2+ by CRISIL for its bank borrowings.

The Holding Company's shares are listed for trading on the principal stack exchanges of India.

SHARE CAPITAL:

The Company is a Wholly Owned subsidiary of Nitin Fire Protection Industries Limited.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2010 (Rs. in millions)
(i) Bond issued to the Development Commissioner, VSEZ for adherence to terms and conditions of setting up an SEZ unit.	162.500
(ii) Un-expired letters of credit (fixed deposits of Rs.12.115 millions deposited as margin money)	52.350

Note:

Contingent liabilities in respect of above matters arising in the ordinary course of business, it is anticipated that no material liabilities will arise.

FORM 8:

Corporate identity number of the company	U27109MH2006PLC164954
Name of the company	NITIN CYLINDERS LIMITED
Address of the registered office or of the principal place of business in India of the company	501, Delta Technology Street, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India E-Mail: cs@nitinfire.com
This form is for	Modification of charge
Charge identification number of the modified	10028810
Type of charge	Book Debts Movable Property Others (Raw Materials, Finished Goods)
Particular of charge holder	State Bank of India, Industrial Finance Branch, Snehal Chambers, Teli Gulli, Andheri (East), Mumbai – 400 069, Maharashtra, India E-Mail: anant.koli@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Form C.5 - Letter regarding the grant of individual limits within the overall limit.
Date of instrument Creating the charge	18.10.2010
Amount secured by the charge	Rs.245.300 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: For DCC - 1% above SBAR. Effective rate will be 12.75% p.a. at monthly rests. (Subject to internal approvals, to be advised separately). Terms of Repayment: Demand for Bank. Margin: Raw Materials - Imported and Indigenous - 25%, Stock in Process - 40%, Finished Goods - 33.33%, Book Debts (Cover Period 90 days) - 30%, EPC - 10%, Letter of Credit - 10%, Bank Guarantee - 25%, Extent and Operation of the charge: Security to cover principal amount together with interest, costs, charges and expenses etc. Others: Demand Cash Credit - Rs.120.000 millions, EPC - (Rs.75.000 millions), EBD - (Rs.90.000 millions), TL (o/s) - Rs.105.300 millions, LC (Inl/Imp) - Rs.10.000 millions, BG - Rs.10.000 millions, Total Limit - Rs.245.300 millions. All other terms and conditions as per the sanctioned letter and loan agreement.
Short particulars of the property charged	Hypothecation of the Company's entire current assets present and future on pari passu basis with Dena Bank. The borrower hereby agrees and declare that the said goods and assets hypothecated and charged in favour of the bank by and under the said agreement(s) shall be and stand charged in favour of the bank as a continuing security by way of first charge for the due repayment on demand on the bank of all monies including the principal sums,on pari passu basis with Dena Bank interest, cost, charges, expenses and other monies payable by the borrower from time to time borrower up to the increased limit to Rs.245.300 millions.
Date of latest modification prior to the present modification	26.12.2007
Particulars of the present modification	Now by this and present modification by which the Reduce of overall limit for Rs.320.000 millions to Rs.245.300 millions.

FIXED ASSETS:

v Buildings on Leasehold Land

v Plant and Machinery

v Furniture, Fixtures and Office Equipments

v Electric Installation

v Motor and Other Vehicles

v Computer Systems

v Gas Cylinders

WEBSITE DETAILS:

PROFILE:

Subject is a 100% subsidiary of Worthington Cylinders and Nitin Fire Protection Industries Limited (NFPIL). Since last more than two decades NFPIL is in the field of safety and security and is one of the leading organizations in the field in India.

Subject has set up a world class manufacturing facility at Visakhapatnam Special Economic Zone, Andhra Pradesh, INDIA to manufacture high pressure seamless cylinders.  The management of subject comprises a team of highly qualified, well experienced and with expertise in the field of cylinder manufacturing.  The Plant is well equipped with Special Purpose Machines using the most modern technology. 

Of late, CNG has become an effective alternative fuel for automobiles worldwide due to its economic advantage and low pollution characteristics.  Keeping in view the growing trend of CNG cylinders’ need in the global market, subject manufactures cylinders meant for CNG storage for all kinds of vehicles. In addition to the CNG cylinders subject produces cylinders for compressed industrial gases viz. Oxygen, Hydrogen, Nitrogen, Argon, Helium, Air, etc.; fire fighting applications and beverage use.

The other products of subject are CNG cascades and CNG dispensers.  With hand-on experience in designing and manufacturing cascades and dispensers, subject’s engineers manufacture these as per the requirements of its clients.

The specialty of subject’s manufacturing process is that the entire procedure is being carried out   in-house with proper monitoring conforming to the relevant national/international standards to ensure the quality of the product. Subject’s products undergo variety of tests stipulated by the national/international Standards viz. pressure cyclic test, hydrostatic stretch test, air leakage test, burst test, etc. to assess the fatigue strength, usage life, safety and reliability for application under rough, tough and extreme climatic conditions. The subject cylinders are epoxy coated on exterior surface for protection against unfriendly environment.  Thus subject ensures that it provides quality products to its clients.

Subject’s Marketing and Quality Control departments are geared up to offer the most comprehensive and timely information on its products for end user customers. Subject believes in “TCS – Total Customer Satisfaction”. Subject goes all out to meet its customers’ needs with best quality products, perfect and timely services thereby achieves its goal.

Worthington Cylinders is the world's leading global supplier of Pressure cylinders, which strives to continually deliver solutions to its customers that exceed their expectations in quality, service and value. It's a subsidiary of Worthington Industries Inc., a diversified metals manufacturing company with 2010 fiscal year sales of approximately $ 1.9 billion.

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.75.48
Euro	1	Rs.66.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.