MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	BRAWN LABORATORIES LIMITED
Registered Office :	C-64, Lajpat Nagar, New Delhi-110024
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.03.1990
Com. Reg. No.:	55-039653
Capital Investment / Paid-up Capital :	Rs.9.950 Millions
CIN No.: [Company Identification No.]	U73200DL1990PLC039653
TAN No.: [Tax Deduction & Collection Account No.]	DELB06336B
PAN No.: [Permanent Account No.]	AAACB7151N
Legal Form :	Closely held Public Limited Liability Company
Line of Business :	Manufacturers of Allopathic Pharmaceutical Preparations.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 486000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed 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

LOCATIONS

Registered Office :	C-64, Lajpat Nagar, New Delhi -110024, India
Tel. No.:	91-11-29810424 / 29811044/ 32911528
Fax No.:	91-11-29810424 / 23275208
E-Mail :	solution@brawnpharma.com legal@brawnpharma.com export@brawnpharma.com international@brawnpharma.com brawn@nda.vsnl.net.in brawn_legal@yahoo.com
Corporate Office :	4/4B, Asaf Ali Road, II Floor, Delhi Stock Exchange Building, New Delhi – 110002, India
Tel. No.:	91-11-32911528 , 32911529
Fax No.:	91-11-23275208
E-Mail :	marketing@brawnpharma.com
Factory :	13, New Industrial Township, Faridabad-121001, Haryana, India
Tel. No.:	91-129- 3290659, 3290738, 4027514
Fax No.:	91-129 -4028514
E-Mail :	info@brawnpharma.com
Export Office :	C-64, lajpat Nagar Part – I, New Delhi – 110024, India
Tel. No.:	91-11-29815264
Fax No.:	91-11-29815331
E-Mail :	export@brawnlabs.com
	international@brawnlabs.com
Overseas Offices :	Located at : v Vietnam v Peru v Belarus v Kabul v Ghana v Cango v Myanmar

DIRECTORS

(AS ON 30.09.2009)

Name :

Mr. Adarsh Kumar Gupta

Designation :

Director

Address :

A -4/167, Paschim Vihar, New Delhi-110063

Date of Birth/Age :

24.11.1947

Date of Appointment :

23.04.2001

DIN :

00975059

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1987PTC028777	A B PHARMA PRIVATE LIMITED	Director	30/06/1988	30/06/1988	Strike off	NO
2	U73200DL1990PLC039653	BRAWN LABORATORIES LIMITED	Director	23/04/2001	23/04/2001	Active	NO
3	U51397DL2003PTC120157	OVERSEAS LABORATORIES PRIVATE LIMITED	Director	2/5/2003	2/5/2003	Active	NO

Name :

Mr. Brij Raj Gupta

Designation :

Director

Address :

7676/2, Singh Sabha Road, Subzi Mandi, Delhi-110007

Date of Birth/Age :

15.04.1952

Qualification :

Science Graduate

Date of Appointment :

23.04.2003

DIN :

00974969

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L74899DL1985PLC022468	BRAWN BIOTECH LIMITED	Managing director	28/09/2010	7/11/1985	Active	NO
2	U74899DL1987PTC028777	A B PHARMA PRIVATE LIMITED	Director	30/06/1988	30/06/1988	Strike off	NO
3	U73200DL1990PLC039653	BRAWN LABORATORIES LIMITED	Director	23/04/2003	23/04/2003	Active	NO
4	U51397DL2003PTC120157	OVERSEAS LABORATORIES PRIVATE LIMITED	Director	2/5/2003	2/5/2003	Active	NO

Name :

Mr. Brij Bala Gupta

Designation :

Director

Address :

A -4/167, Paschim Vihar, New Delhi-110063

Date of Birth/Age :

06.07.1947

Date of Appointment :

03.10.2003

DIN :

00975261

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U73200DL1990PLC039653	BRAWN LABORATORIES LIMITED	Director	3/10/2003	3/10/2003	Active	NO
2	L74899DL1985PLC022468	BRAWN BIOTECH LIMITED	Director	24/11/2004	24/11/2004	Active	NO

Name :

Ms. Urmila Gupta

Designation :

Director

Address :

7676/2, Singh Sabha Road, Subzi Mandi, Delhi-110007

Date of Birth/Age :

03.10.1935

Date of Appointment :

28.04.2006

DIN :

02061436

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L74899DL1985PLC022468	BRAWN BIOTECH LIMITED	Director	24/11/2004	24/11/2004	Active	NO
2	U73200DL1990PLC039653	BRAWN LABORATORIES LIMITED	Director	28/04/2006	28/04/2006	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares	Percentage of Holding
A B Pharma Private Limited, India	10000	1.00
Sri Ram Gupta	22260	2.24
Dr. Atul Gupta	75310	7.57
Shashi Bala Gupta	353010	35.48
Brij Bala Gupta	21885	2.19
Mamta Gupta	810	0.08
Bhawna Gupta	17610	1.77
Mahesh K Nanchal	10	0.00
Brawn Pharmaceuticals Limited, India	30000	3.01
Adarsh Gupta	55000	5.57
Brij Raj Gupta	75500	7.59
Ashok Sharma	6000	0.60
Pushpa Rani	6000	0.60
Suman Lata	5000	0.50
Keshav Kumar	5000	0.50
Madhu Bala	5000	0.50
Anita Rani	2600	0.26
Sanjeev Gupta	2700	0.27
Mukesh Kumar	2800	0.28
Shakuntala	2500	0.25
Narinder Jain	2700	0.27
Anisha	2600	0.26
Visa Traders and Financer Private Limited, India	10500	1.05
Kasunia Enterprises Private Limited, India	10000	1.00
Sudarshan Jain	2800	0.28
Fakir Chand	2700	0.27
Anand Jain	2800	0.28
Hari Om Gupta	2800	0.28
Manju Gupta	2500	0.25
Vinod Sehgal	25000	2.51
Dinesh Chand	9000	0.90
A S Singh	2500	0.25
Shashi Aggarwal	7000	0.70
Divya Kumar	3000	0.30
Rita Sharma	30000	3.01
Subhash Aggarwal	45000	4.52
Ved Aggarwal	5000	0.50
Madhu Bansal	6000	0.60
A K Jain	1300	0.13
Kavita Gupta	14300	1.44
Balmukund Gupta and Company, India	16000	1.61
Nitin Gupta	92525	9.30
Total	995020	100.00

(AS ON 30.09.2010)

Category	Percentage
Bodies Corporate	7.68
Directors or their relatives	92.32
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Allopathic Pharmaceutical Preparations.

Products :

v Injections

v Tablets

v Capsules

ITC Code	Product Description
292229.14	Para Aceyl Amino Phenol
294200.03	Ibuprofen
270600.01	Coal tar

PRODUCTION STATUS [As on 31.03.2010]

Qty. in Lacs

Particulars	Installed Capacity
Tablets	7050
Capsules	2100
Injections	295 Vials / Ampoules
Ointment	77.60 Tubes / Jars
Dry Powder	30 Vials/Bottles
Liquid	78 Bottles

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, H-22, Tropical Building, Connaught Circus, New Delhi-110001, India
• ING Vysya Bank Limited
• ICICI Bank
• HDFC Bank

Facilities :

Secured Loan	Rs in millions [31.03.2010]	Rs in millions [31.03.2009]
Punjab National Bank [on cash credit account secured by hypothecation of raw materials, chemicals, stock in process and furnished products of Drug and pharmaceuticals and sundry debtors]	328.408	240.346
ICICI Bank [Vehicle Loan] [Secured against hypothecation of vehicle]	0.163	0.438
HDFC Bank [Vehicle Loan ] [Secured against hypothecation of vehicle]	0.565	2.050
Punjab National Bank [Machinery Term Loan]	78.412	24.271
Total	407.548	267.105
Unsecured Loan	70.007	60.567

Banking Relations :	--
Auditors :
Name :	M. K. Bhatt and Company Chartered Accountants
Address :	302, Triveni Complex, E – 10-12, Jawahar Part, Laxmi Nagar (Vikas Marg), Delhi – 110092, India
Tel. No.:	91-11-22455710
Fax No.:	91-11-22451501
Mobile No.:	91-9313009193
E-Mail :	mkbhatt@indiatimes.com
Associates/Subsidiaries :	v Brawn Pharmaceuticals Limited v Visa Traders and Financer Private Limited v Visa Traders and Financer Private Limited v Overseas Laboratories Private Limited v Delhi Pharma v Fine Pharmachem v South Delhi Medicos v Indraprastha Diagnostics Centre v Balmukund Gupta and Company v Kasunia Enterprises Private Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
995,020	Equity Shares	Rs.10/- each	Rs.9.950 Millions

Out of the above a sum of Rs.3.644 Millions has been issued for consideration other than cash in discharge of liabilities.

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		9.950	9.950	9.950
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		111.701	103.090	86.360
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		121.651	113.040	96.310
LOAN FUNDS
1] Secured Loans		407.548	267.105	186.215
2] Unsecured Loans		70.007	60.567	42.344
TOTAL BORROWING		477.555	327.672	228.559
DEFERRED TAX LIABILITIES		10.707	3.632	2.924
TOTAL		609.913	444.344	327.793
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		152.350	89.867	66.986
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	250.333	248.829	217.389
	Sundry Debtors	213.248	144.969	90.347
	Cash & Bank Balances	14.575	12.645	11.843
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.408	42.805	29.885
Total Current Assets		519.564	449.248	349.464
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	57.089	78.274	74.730
	Other Current Liabilities	3.089	12.516	10.899
	Provisions	1.823	3.981	3.028
Total Current Liabilities		62.001	94.771	88.657
Net Current Assets		457.563	354.477	260.807
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		609.913	444.344	327.793

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1011.538	872.735	705.666
		Other Income	7.976	10.578	10.030
		TOTAL	1019.514	883.313	715.696
Less	EXPENSES
		Material Consumed	773.684	674.175	545.089
		Personnel Expenses	74.753	55.922	46.972
		Manufacturing and Selling Expenses	143.208	135.673	99.894
		Increase / Decrease in Inventory	[1.268]	[8.247]	7.296
		TOTAL	990.377	857.523	699.251
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		29.137	25.790	16.445
Less/ Add	DEPRECIATION/ AMORTISATION		11.763	4.428	4.081
	PROFIT BEFORE TAX		17.374	21.362	12.364
Less	TAX		1.688	3.953	3.085
	PROFIT AFTER TAX		15.686	17.409	9.279
Less	PROVISION FOR DEFERRED TAX LIABILITIES		7.075	0.708	1.189
	BALANCE CARRIED TO THE B/S		8.611	16.701	8.090
	EARNINGS IN FOREIGN CURRENCY		591.211	481.836	385.128
	TOTAL IMPORTS		0.000	1.431	1.536
	Earnings Per Share (Rs.)		8.65	16.78	8.13

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.54	1.97	1.30
Net Profit Margin (PBT/Sales)	(%)	1.72	2.45	1.75
Return on Total Assets (PBT/Total Assets}	(%)	2.58	3.96	2.97
Return on Investment (ROI) (PBT/Networth)		0.14	0.19	0.13
Debt Equity Ratio (Total Liability/Networth)		4.43	3.74	3.29
Current Ratio (Current Asset/Current Liability)		8.38	4.74	3.94

LOCAL AGENCY FURTHER INFORMATION

Performance :

The turnover and other income of the company for the current year stood at Rs. 1020.700 Millions as compared to Rs. 891.500 Millions for the previous year.

Contingent Liabilities :

Bank guarantees issued by company’s banker Rs.2.440 millions [previous year Rs.5.933 millions]

Bankers Charges Report as per Registry

Corporate identity number of the company	U73200DL1990PLC039653
Name of the company	BRAWN LABORATORIES LIMITED
Address of the registered office or of the principal place of business in India of the company	C-64 Lajpat Nagar, New Delhi – 110024, Delhi, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10123282
Type of charge	Immovable Property Movable Property
Particular of charge holder	Punjab National Bank, H-22, Tropical Building, Connaught Circus, New Delhi-110001, India
Nature of instrument creating charge	1. Hypothecation Of Movable Assets Forming Part Of Fixed/Block Assets Dated 22.06.2011 2.Hypothecation Of Current Assets 3.Packing Credit Agreement (Hypothecation)
Date of instrument Creating the charge	22.06.2011
Amount secured by the charge	Rs.100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - same as per original charge Terms of Repayment - same as per original charge Margin - same as per original charge Extent and Operation of the charge - same as per original charge Others - this facility has been extended from Rs.90.000 millions to 100.000 millions for three months w.e.f. 22.06.2011 to 21.09.2011
Short particulars of the property or asset(s) charged (including complete address and location of the property)	same as per original charge
Particulars of the present modification	this facility has been extended from Rs.90.000 millions to 100.000 millions for three months w.e.f. 22.06.2011 to 21.09.2011

Form 8

Name of the company	BRAWN LABORATORIES LIMITED
Presented By	DIRECTOR
1) Date and description of instrument creating the change	21.04.2005 Letter sanctioning the loan for purchase of car model TATA INDICA DIESEL, DLS V2 BHARAT Stage III
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.321 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Car model TATA INDICA DIESEL, DLS V2 BHARAT STAGE III
4) Gist of the terms and conditions and extent and operation of the charge.	The charge operates as security for the due repayment by the company to PNB of its above sanctioned loan.
5) Name and Address and description of the person entitled to the charge.	Punjab National Bank, Tropical Building, Connaught Circus, New Delhi-110001
6) Date and brief description of instrument modifying the charge	N.A.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N.A.

FORM - 8

Corporation identity number or foreign company registrations number of the company	U73200DL1990PLC039653
Name of the company	BRAWN LABORATORIES LIMITED
Address	C-64, Lajpat Nagar, New Delhi-110024, India
This Form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10123280
Type of Charges	Immovable property Any interest in immovable property Book debts Movable property
Particular of the charge holder	Punjab National Bank, Tropical Building, Connaught Circus, New Delhi-110001 bo0133@pnb.co.in
Nature or description of the instrument creating charge	Fund Based at Interest rate of 4.5% CC(H) = Rs. 40 Millions, ROI = 12.50%, Margin 25% CC(BD) = Rs 80 Millions, ROI = 12.50%, Margin 30% Packing Credit = Rs 90 Millions, ROI = As per bank guideline, Margin = 25% FOBNLC/ FOUBNLC/ FOBP/ FOUBP = Rs 120 Millions, ROI = As per Bank, Margin = NIL DD=Rs 4.00 Millions Non Fund Based: ILC/ FLC = Rs 70 Millions ILG/ FLG = Rs 10 Millions Term Limit: I = Rs 25.900 Millions, ROI = 13%, Margin = 25% II = Rs 50 Millions, ROI = 13%, Margin = 25% III = Rs 18 Millions, ROI = 13%, Margin = 33%, Interest = 5%
Date of the instrument creating charge	07.07.2007
Amount Secure by the charge	Rs.507.900 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest Term Loan of at 5% And Fund Based Facilities at 4.5%. Terms of repayment Term Loan will be repaid in 20 equal quarterly installments of Rs.90 Millions each commencing from April 2011. Margin CC(H) = Margin 25% CC(BD) = Margin 30% Packing Credit = Margin = 25% FOBNLC/ FOUBNLC/ FOBP/ FOUBP = Margin = NIL Term Limit: I = Rs 25.900 Millions, ROI = 13%, Margin = 25% II = Rs 50 Millions, ROI = 13%, Margin = 25% III = Rs 18 Millions, ROI = 13%, Margin = 33%, Extent and operation of the charge Fund Based at Interest rate of 4.5% CC(H) = Rs. 40 Millions, ROI = 12.50%, Margin 25% CC(BD) = Rs 80 Millions, ROI = 12.50%, Margin 30% Packing Credit = Rs 90 Millions, ROI = As per bank guideline, Margin = 25% FOBNLC/ FOUBNLC/ FOBP/ FOUBP = Rs 120 Millions, ROI = As per Bank, Margin = NIL DD=Rs 4.00 Millions Non Fund Based: ILC/ FLC = Rs 70 Millions ILG/ FLG = Rs 10 Millions
Particulars of the Property charged	Fund Based at Interest rate of 4.5% CC(H) = Rs. 40 Millions, ROI = 12.50%, Margin 25% CC(BD) = Rs 80 Millions, ROI = 12.50%, Margin 30% Packing Credit = Rs 90 Millions, ROI = As per bank guideline, Margin = 25% FOBNLC/ FOUBNLC/ FOBP/ FOUBP = Rs 120 Millions, ROI = As per Bank, Margin = NIL DD=Rs 4.00 Millions Non Fund Based: ILC/ FLC = Rs 70 Millions ILG/ FLG = Rs 10 Millions Term Limit: I = Rs 25.900 Millions, ROI = 13%, Margin = 25% II = Rs 50 Millions, ROI = 13%, Margin = 25% III = Rs 18 Millions, ROI = 13%, Margin = 33%, Interest = 5%

Fixed Assets

• Building
• Land
• Plant and Machinery
• Dies and Tools
• Furniture and Fixture
• Lab Equipments
• Vehicles
• Generator Set
• Temp Wooden Const

Website Details:

Company Profile

Subject with its inception barely 22 years back(1988) has today evolved into a fully integrated, healthcare group, marking its presence in India and dotting various major markets across the globe. With its claim of quality and certified with ISO 9001:2000, 13485, WHO : cGMP, BRAWN is proud to possess product registration with major health and govt. institutions throughout India and in many other countries worldwide.

Headed and represented by a team of skilled industry experts with impressive educational backgrounds and broad experience, BRAWN continues to spread its wings in expansion in the domestic as well as in the international markets with a vision beyond the existing horizon to stand among the leading Indian HealthCare Companies.

Their Pharmaceutical Formulations cover all major product segments like Antibacterials, Cardiovasculars, Antidiabetics, Analgesics, Gastrointestinals, Antifungals, Skin Care, Antipsychotics, Antiasthmatics, Antacids, Antimalarials, and Nutritionals.

Besides a professional and competent team that looks into production, administration, sales, marketing, maintenance, etc., Brawn is supported by a team of highly qualified and experienced consultants to gain an edge over the others in the market.

Human Resource development has always been a concern at BRAWN. The aim is to build a high performing work force, ready to face opportunities and challenges thrown up by the forces of globalization and technological advancement. Regular meetings, conferences, training programs are held to make the field force apt to the technical knowledge, market scenario and existing market trends. Continuous training to sharpen the skills and upgrading of manpower has over a time built a work culture very much inherent to BRAWN family.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.61
UK Pound	1	Rs.76.67
Euro	1	Rs.66.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		50

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.