MIRA INFORM REPORT

Report Date :

02.04.2012

IDENTIFICATION DETAILS

Name :	GKB OPHTHALMICS LIMITED
Registered Office :	16A Tivim Industrial Estate, Mapusa, Goa, Goa 403526
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.12.1981
Com. Reg. No.:	000469
Capital Investment/ Paid-up Capital:	Rs. 41.535 Millions
CIN No.: [Company Identification No.]	L26109GA1981PLC000469
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing of Ophthalmic lenses of Glass and CR
No. of Employees:	605( Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 700000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 :	16A Tivim Industrial Estate, Mapusa, Goa, Goa 403526 India
Tel. No.:	91-832-2257335/336/253/67114444
Mobile No.:	Not Available
Fax No.:	Not Available
E-Mail :	investor.grievance@gkb.net
Website :	www.gkb.net

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. K. G. Gupta
Designation :	Chairman & Managing Director
Name :	Mr. K.M. Gupta
Designation :	Director
Name :	Mr. Vikram Gupta
Designation :	Director
Name :	Mr. Gaurav Gupta
Designation :	Director

Name :	Mr. Somnath SinaiPriolkar
Designation :	Director
Date of Birth/Age :	25.04.1932
Qualification :	Arts & Law Graduate
Experience :	Wide range of experience in Accounts and Finance in different departments of Government of Goa
Date of Appointment :	31.12.2001
Name :	Mr. Anil Palekar
Designation :	Director
Date of Birth/Age :	15.06.1949
Qualification :	Engineering Graduate from IIT Mumbai & PGDM
Experience :	Wide range of experience in Corporate Management in various Companies of Government of Goa.
Date of Appointment :	26.05.2010
Name :	Mr. Sadashiv Shet
Designation :	Director
Date of Birth/Age :	22.02.1951
Qualification :	BA, B.Com., LLB & FCS.
Experience :	Company Secretarial
Date of Appointment :	26.05.2010
Name :	Mr. Joseph A. A. D'Costa w.e.f. March 31, 2011
Designation :	Director
Date of Birth/Age :	02.11.1947
Qualification :	B.Sc.
Experience :	Vast experience in Banking field.
Date of Appointment :	31.03.2011

KEY EXECUTIVES

Name :	Mr. Noel da silva
Designation :	Chief Financial Officer Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals/Hindu Undivided Family	2752298	66.26
Sub Total	2752298	66.26
(2) Foreign
Total Shareholding of Promoter and Promoter Group (A)	2752298	66.26
(B) Public Shareholding
(1) Institutions
Financial Institutions/Banks	25412	0.61
Sub Total	25412	0.61
(2) Non- Institutions
Bodies Corporate	287764	6.92
Individuals
Individual shareholders holding nominal capital up to Rs. 0.100 Million	542203	13.05
Individual shareholders holding nominal capital in excess of Rs. 0.100 Million	539.050	12.98
Any Other (Specify)	7153	0.17
Non Resident Indians	7015	0.17
Sub Total	1375870	33.12
Total Public Share holding (B)	1401282	33.74
Total (A)+(B)	4153580	100.0
(C) Shares held by Custodians and against which Depositary Receipts have been issued
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4153580	-

BUSINESS DETAILS

Line of Business :

Manufacturing of Ophthalmic lenses of Glass and CR

Products :

Particular	Description of Product or Services
9001.4090 & 9001.5000	Ophthalmic lenses of Glass & CR

PRODUCTION STATUS

AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity*	Installed Capacity (On Single basis)**	Actual Production
Ophthalmic lenses of Glass and CR	Pieces (No.s)	NA	4,500,000	3,140,753

* Not Applicable due to the abolition of Industrial Licenses as per notification issued under the Industries

Development and Regulation Act, 1951.

** Installed Capacity is as certified by the Managing Director and relied upon by the auditors, being a technical

matter.

GENERAL INFORMATION

No. of Employees :

605 (Approximately)

Bankers :

· State Bank Of India,

· The Saraswat Co-op. Bank Limited

· Canara Bank

Facilities :

	As On 31.03.2011 Rs. Millions	As On 31.03.2010 Rs. Millions
a) Loans From Banks
i) Term Loans	8.222	5.281
ii) Working Capital Loans	91.778	75.476
	100.00	80.757
b) Liability for Vehicles purchased under Hire Purchase Agreement	-	0.057
Total	100.00	80.814

NOTES

1) Term loan of Rs. NIL (Previous year Rs.0.726 Millions) Secured by hypothecation of plant and machinery and personal guarantees

of three directors of the company.

2) Term loan of Rs.2.620 Millions (Previous year Rs.4.240 Millions) secured by Mortgage of Building and personal guarantees of three

directors of the company.

3) Term loan of Rs.3.058 (Previous year Rs.0.315 Millions) is secured by hypothecation of vehicle.

4) Term Loan of Rs. 2.542 Millions (Previous year Rs.Nil) is secured by hypothecation of Machinery and Personal guarantees of two

directors.

5) Term loan installment falling due within the next 12 months amount to Rs.5.020 Millions (Previous year Rs.2.382 Millions).

6) Working capital loan from bank is secured by hypothecation of raw materials, stock in transit, finished goods, stores and spares, book debts and other receivables, both present and future and further secured by irrevocable joint and several personal

guarantees of three directors of the company.

7) Liability for vehicles under hire purchase agreement is secured by hypothecation of vehicles.

Auditors :
Name :	Barkar and Muzumdar Chartered Accountant
Address :	Panaji – Goa, 403001 India
Associates	TIC Opics Europe
Subsidiary company :	Prime Lenses Private Limited GKB Vision Limited GKB Opticals Limited Gopal Krishna & Brothers GKB Rx Lens Private Limited Mega Motion Infotech Private Limited. GKB Ophthalmics Products FZE GKB Ophthalmics GmbH Indo Prime Visual Technologies Private Limited. Crysta Lenses Private Limited Lensco - The Lens Company

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Share	Rs.10/- each	Rs.70.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
4199980	Equity Share	Rs.10/- each	Rs.41.999 Millions

Subscribed &Paid-up Capital :

No. of Shares	Type	Value	Amount
4153580	Equity Share	Rs.10/- each	Rs.41.536 Millions

(Out of the above,2,744,982 shares were allotted as fully paid up Bonus shares by way of capitalization of General Reserve and premium on Equity shares.)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.02009
SHAREHOLDERS FUNDS
1] Share Capital		41.536	41.535	41.536
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		124.865	122.837	116.809
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		166.401	164.373	158.345
LOAN FUNDS
1] Secured Loans		100.000	80.814	74.234
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		100.000	80.814	74.234
DEFERRED TAX LIABILITIES		10.490	9.605	11.243
TOTAL		276.891	257.792	243.822
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		97.470	89.807	83.683
Capital work-in-progress		39.043	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		13.962	43.096	43.896
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	155.740	147.922	158.908
	Sundry Debtors	121.661	102.518	75.425
	Cash & Bank Balances	13.101	8.397	7.997
	Other Current Assets	37.417	11.444	0.000
	Loans & Advances	0.000	0.000	42.717
	Interest accrued on investment	0.612	0.228	0.125
Total Current Assets		328.531	270.509	285.172
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	7.797	3.273
	Other Current Liabilities	172.271	106.914	111.598
	Provisions	22.047	38.433	57.331
Total Current Liabilities		202.115	148.62	168.929
Net Current Assets		126.416	121.889	116.243
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		276.891	254.792	243.822

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	253.819	375.456	284.638
		Other Income	23.771	11.896	16.888
		TOTAL (A)	277.590	387.352	301.526
Less	EXPENSES
		Raw material consumed	125.062	182.728	158.302
		Lens Purchase	8.452	53.980	21.584
		Manufacturing and other expense	111.544	98.259	83.848
		Increase/(Decrease) in stock	6.159	5.267	(14.573)
		Prior Period Adjustment	(5.230)	(0.005)	1.772
		TOTAL (B)	245.987	340.229	250.934
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		31.603	47.123	50.593
Less	FINANCIAL EXPENSES (D)		13.340	12.503	15.066
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.263	34.620	35.527
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.461	9.470	11.545
	PROFIT BEFORE TAX (E-F) (G)		9.802	25.150	23.982
Less	TAX (H)		7.775	13.289	9.818
	PROFIT AFTER TAX (G-H) (I)		2.027	11.861	14.164
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.947	25.918	18.586
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	4.984	4.984
		Dividend	0.000	0.000	0.000
		Tax on Dividend	0.000	0.000	0.000
		Additional tax on Dividend	0.000	0.847	0.847
		Dividend on Equity share	0.000	1.000	1.000
	BALANCE CARRIED TO THE B/S		32.974	30.948	25.919
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB Value)*	186.232	323.301	202.663
		Others (Freight, Insurance etc.)	6.528	7.107	7.274
		Dividend received	0.000	4.467	4.940
	TOTAL EARNINGS		192.760	334.875	214.877
	IMPORTS
		Blanks/Lenses*	112.793	168.412	159.688
		Stores, Spares and Consumable Tools/Packing/other material	8.810	12.123	9.782
		Capital Goods	41.863	1.383	0.603
	TOTAL IMPORTS		163.466	181.918	170.073
	Earnings Per Share (Rs.)		0.49	2.86	3.41

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2nd Quarter	3rd Quarter
Audited/Unaudited	Unaudited	Unaudited	Unaudited
Net sales	65.680	51.220	92.73
Total Expenditure	87.860	42.300	87.86
PBIDT (Excl OI)	10.350	8.920	4.87
Other Income	1.540	0.920	6.80
Operating Profit	11.890	9.850	11.67
Interest	4.020	4.270	4.26
Exceptional terms	0.000	0.000	0.
PBDT	7.870	5.570	7.05
Depreciation	2.530	2.370	1.570
PROFIT BEFORE TAX	5.340	3.200	5.480
Tax	1.650	0.980	2.390
Provision and contingencies	0.000	0.000	0.000
Profit After Tax	3.690	2.220	3.080
Extra ordinay items	0.000	0.000	0.000
Prior Period Expense	0.000	(0.030)	0.000
Net Adjustments	0.000	0.000	0.000
Net Profit	3.690	0.200	3.080

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.02009
PAT / Total Income	(%)	3.60	3.06	4.70
Net Profit Margin (PBT/Sales)	(%)	3.79	6.70	17.77
Return on Total Assets (PBT/Total Assets}	(%)	2.30	6.98	6.50
Return on Investment (ROI) (PBT/Networth)		0.06	0.15	0.15
Debt Equity Ratio (Total Liability/Networth)		1.21	0.88	1.80
Current Ratio (Current Asset/Current Liability)		1.63	1.82	1.69

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS :

During the year, the turnover of the Company was Rs. 277.591 Millions as compared to Rs. 387.353 Millions in the previous year.

The Company is in a transitory phase, wherein the main focus is changing from producing glass lenses to plastic lenses which has led to decline in turnover.

CURRENT YEAR :

The turnover of the Company, in the first 6 months is lower than the corresponding period in the previous year.

The Company has imported an entire plant from Spain in the month of January 2011, which will vastly augment the Company's capacity to manufacture plastic lenses and introduce new premium quality lenses.

The delay in commissioning of the new plant has led to the temporary decline in production capacity utilisation adversely impacting sales and profitability. The plant is expected to be fully commissioned in February 2012, with a capital expenditure of Rs. 65.400 Millions to be funded partly through debt and

internal accruals.

AWARDS AND RECOGNITION :

Awards won and recognition received from the financial year 2010-11 till date.

1. GKB won the prestigious Business Today – YES Bank, Best SME Award 2010, in the International Trade.
2. GKB won the CAPEXIL Award for its performance in the International Trade.
3. GKB has been accorded the status of Star Export House, by the Government of India, Ministry of Commerce and Industry, SEEPZ, Special Economic Zone, Mumbai, based on its performance in the International Trade.
4. Both Unit I as well as Unit II are now ISO 9001:2008 certified, for the manufacture and supply of glass and plastic lenses and glass moulds.
5. Mr. K. G. Gupta, Chairman and Managing Director, has been elected as the member of Regional Governing Council 2010-2012, SEEPZ, Special Economic Zone, Mumbai.

Industry Structure and Development :

Glass lenses are being replaced by plastic lenses. In the rest of the world, plastic lenses dominate, accounting for about 80% of the total production of lenses, whereas the balance 20% is accounted by glass lenses. In India, the position is just the reverse. But India is slowly falling in line with the rest of the world by switching over to plastic lenses.

In India, a large section of the population require Vision Correction, but the demand is low due to lack of awareness, ignorance and poverty.

As in the West, a new trend is emerging in India, wherein some individuals are buying multiple spectacles.

Opportunities and Threats :

There is growing demand for prescription lenses in India and in the West. Opportunities also lie, in manufacture of glass moulds used in the production of plastic lenses. The Company has embarked on backward integration by manufacturing glass moulds used in plastic lenses.

Rising labour costs in China, are gradually making Indian lenses competitive in the International market.

The threat lies for single vision glass lenses from large number of players in the unorganised

sector who sell substandard lenses at cheaper prices.

Segment-wise or Product-wise Performance :

The Company deals with, manufacture of single vision lenses of glass and in single vision, bifocal and progressive lenses of plastic.

Outlook :

Plastic lenses have displaced glass lenses to a great extent. Keeping with this new development, the Company has started production of plastic lenses in Unit II. Presently, Unit II manufactures 6,500 pieces per day, which is sought to be increased to 12,000 pieces per day, including 1,000 pieces per day of High Index 1.6 and 1,000 pieces per day of photochromic lenses in February, 2012. The total production of plastic lenses is sought to be increased to 18,000 pieces per day during the financial

year 2012-13.

High Index 1.6 and photochromic plastic lenses are high value, high realisation products, which will contribute to revenue growth of the Company.

The Company is well poised to tap the growing opportunity in plastic lens segment.

Demand for glass lens will be there for some more years to come and this has become a niche product for the Company. Glass lens have, aesthetic appeal, smoothing effect on the eyes, better finish, are sleek in nature and generally scratch resistant, compared to thicker and lighter plastic lens. They have good demand in South America besides, in developed countries like Germany and Spain.

II NOTES ON ACCOUNTS:

Contingent liabilities not provided for:

Rs in Millions

	31.03.2011	31.03.2010
(a) Letter of credit outstanding	76.415	42.414
(b) Bank Guarantees	5.102	5.102
(c) Corporate Guarantees	52.198	52.198
(d) Bills discounted	16.348	17.846
(e) Disputed Demand in respect of:
- Central Excise	3.361	3.361

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER 2011

						Rs in Millions
	Particulars			Quarter ended	Quarter ended	Nine month ended
				as on 31.12.2011	as on 30.09.2010	As on 31.12.2012
				(Unaudited)	(Unaudited)	(Unaudited)
1	(a) Net Sales/Income from Operations			92.732	51.224	209.422
	(b)Other Operating Income
2	Expenditure
	(a)		Increase/(Decrease) in Stock-in-trade and work in progress	25.277	(22.877)	(13.668)
	(b)		Consumption of raw materials	32.384	36.415	109.141
	©		Purchase of traded Goods	0.704	1.911	10.532
	(d)		Employees Cost	12.133	10.152	32.506
	(e)		Depreciation	1.565	2.373	6.646
	(f )		Other Expenditure	17.369	16.697	46.988
	(g)		Total (Any item exceeding 10% of the total Expenditure to be shown separately)	89.432	44.671	191.965
3			Profit from operation before other income, interest and other exceptional items(1-2)	3.30	6.563	17.457
4			Other Income	6.797	0.919	9.470
5			profit before interest and exceptional items(3+4)	10.097	7.472	26.927
6	Interest			4.622	4.273	12.911
7	Profit after interest but before exceptional items(5-6)			5.475	3.199	14.016
8	Exceptional Items
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			5.475	3.199	14.016
10	Tax Expenses			2.392	0.978	5.021
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			3.083	2.221	8.995
12	Profit prior adjustment			-	0.027	0.027
13	Net Profit(+)/Loss(-) for the period (1112)			3.083	2.194	8.968
14	Paid-up Equity Share Capital Rs.2/ per share			41.536	41.536	41.536
15	Reserves excluding revaluation reserves
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.74	0.53	2.16
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.74	0.53	2.16
17		Public Shareholding
		Number of Shares		1,401,282	1,397,985	1,401,282
		Percentage of Shareholding		33.74	33.76	33.74
18		Promoters and Promoter group		-	-	-
		a) Pledged/Encumbered
		Number of shares
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		-	-	-
		Percentage of Shares (as a % of the total share capital of the Company)		-	-	-
		b) Non-encumbered
		Number of shares		2,752,298	2,755,595	2,752,298
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00	100.00	100.00
		Percentage of Shares (as a % of the total share capital of the Company)		66.26	66.34	66.26

Notes :

1 The above unaudited standalone financial results have been reviewed by the Audit Committee and approved by the Board of directors at its meeting held on 13^th February, 2012. The statutory auditors have carried out a limited review of the financial results of the Company as required under Clause 41 of the Listing Agreement and the relate report is being forwarded to the Stock Exchanges.

2. Accounting Standard 17 - Segment Reporting is not applicable as the company operates in one segment only. i.e. Ophthalmic lenses

3. The new plant for augmenting the present capacity of plastic lenses and also to manufacture premium quality plastic lenses is now scheduled to the commissioned by end of April 2012

4. Investor complaints pending at the beginning of the quarter:4; Resolved during the qurter:4; Remaining unresolved during the quarter :Nil

5. Previous period figures have been regrouped/reclassified wherever necessary

FIXED ASSETS

1. Land (Lease hold)
2. Land (Free hold)
3. Building
4. Plant and Machinery
5. Furniture and Fixtures
6. Electrical Installation
7. Office Equipment
8. Vehicles

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. 51.1565
UK Pound	1	Rs. 81.7992
Euro	1	Rs. 68.3403

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	5
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.