MIRA INFORM REPORT

Report Date :

07.04.2012

IDENTIFICATION DETAILS

Name :	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED (w.e.f. 08.09.2006)
Formerly Known as :	CALYX CHEMICALS AND PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Unit No. 2, Marwah’s Complex, Marwah Estate, Saki Vihar Road, Andheri, Mumbai – 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.01.1986
Com. Reg. No.:	11-038618
Capital Investment / Paid-up Capital :	Rs.159.332 Millions
CIN No.: [Company Identification No.]	U24220MH1986PLC038618
TAN No.: [Tax Deduction & Collection Account No.]	MUMC07976D
PAN No.: [Permanent Account No.]	AABCC1457B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 5400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered good for normal 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 :	Unit No. 2, Marwah’s Complex, Marwah Estate, Saki Vihar Road, Andheri, Mumbai – 400 072, Maharashtra, India
Tel. No.:	91-22-28571191
Fax No.:	91-22-66466401
E-Mail :	dipali_dorugade@calyxindia.com calyx@calyxindia.com
Website :	www.clydxindia.com www.calyx-pharma.com
Corporate Office :	A-37/38, MIDC, Phase 1, Golavli, Kalyan Shil Road, Dombivali (East), Near Vicconaka, Thane – 421 203, Maharashtra, India
Tel. No.:	91-251-2438310/ 6698300
Fax No.:	91-251-2438726
Representative Office :	Calyx International Division (USA) West Coast (California), 11728 E Imperial Highway, Norwalk, CA 90650, USA.
Tel. No.:	+1-213-291-7773
Fax No.:	+1-775-514-1230
E-Mail :	sales@calyxusa.com crams@calyxusa.com
Website :	www.calyxusa.com
Overseas Office :	SingInd Life Sciences Pte. Limited 371, Beach Road, #02-01C Keypoint, Singapore – 199597
Tel. No.:	+61-6296 4041
Fax No.:	+65-6242 3956

DIRECTORS

As on 21.09.2011

Name :

Mr. Smitesh Chandravadan Shah

Designation :

Managing Director

Address :

B-403, Eden – III, Hiranadani Grdens, Powai, Mumbai-400076, Maharashtra, India

Date of Birth/Age :

28.04.1959

Qualification :

01.04.1995

DIN No.:

00019720

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	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Managing director	1/04/2010	1/04/1995	-	Active	NO
2	U18101MH1993PTC072347	TOP BRASS GIFTS PRIVATE LIMITED	Director	17/04/1995	17/04/1995	-	Active	NO
3	U72200MH2000PTC124247	NOBLE STRATEGIES INTERNATIONAL PRIVATE LIMITED	Director	15/02/2000	15/02/2000	-	Dormant	NO
4	U24239AP2004NPL043058	PHARMACEUTICALS EXPORT PROMOTION COUNCIL OF INDIA	Director	13/04/2004	13/04/2004	-	Active	NO

Name :

Mr. Bharat Sukhlal Mehta

Designation :

Director

Address :

21, Nibbana Pali Hill, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

05.01.1938

Date of Appointment :

01.04.1995

DIN No.:

00038165

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	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	31/03/2010	1/04/1995	-	Active	NO
2	U18101MH1993PTC072347	TOP BRASS GIFTS PRIVATE LIMITED	Director	17/04/1995	17/04/1995	-	Active	NO
3	U45200MH1995PTC091114	ROYAL BUILDMAT INDIA PRIVATE LIMITED	Director	28/07/1995	28/07/1995	27/02/2010	Dormant	NO
4	U72200MH2000PTC124247	NOBLE STRATEGIES INTERNATIONAL PRIVATE LIMITED	Director	15/02/2000	15/02/2000	-	Dormant	NO

Name :

Ms. Chhaya Bharat Chakradhar

Designation :

Director

Address :

Sangeeta 9, 22 A Linking Road, Extension Santacruz, Mumbai-400054, Maharashtra, India

Date of Birth/Age :

09.11.1943

Date of Appointment :

23.03.2010

DIN No.:

00968966

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	L99999MH1986PLC040559	POOJA ENTERTAINMENT AND FILMS LIMITED	Director	30/09/2006	31/12/2005	20/11/2007	Active	NO
2	U65990MH2006PTC159411	CREDILA FINANCIAL SERVICES PRIVATE LIMITED	Director	20/07/2007	30/11/2006	-	Active	NO
3	L25200MP2008PLC020852	TEXMO PIPES AND PRODUCTS LIMITED	Director	9/09/2009	14/08/2008	-	Active	NO
4	L99999MH1969PLC014465	ARIES AGRO LIMITED (CN)	Director	17/09/2010	29/10/2009	-	Active	NO
5	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	27/09/2010	23/03/2010	-	Active	NO
6	U72200TN2001PLC046643	YALAMANCHILI SOFTWARE EXPORTS LIMITED	Director	30/09/2010	31/05/2010	-	Active	NO

Name :

Ms. Bhumitra Vinodchandra Dholakia

Designation :

Director

Address :

B-46/431, MIG Colony, Gandhi Nagar, Bandra East, Mumbai-400051, Maharashtra, India

Date of Birth/Age :

03.09.1949

Date of Appointment :

23.03.2010

DIN No.:

01871816

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	U74140MH1997PTC106160	SHREEJI ADVISORY SERVICES PRIVATE LIMITED	Director	25/08/2008	11/02/2008	15/03/2010	Active	NO
2	U74140MH2008PTC183697	MRUGA CORPORATE SERVICES PRIVATE LIMITED	Director	19/06/2008	19/06/2008	-	Active	NO
3	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	27/09/2010	23/03/2010	-	Active	NO
4	L28910GJ1977PLC002998	RAPICUT CARBIDES LIMITED	Director	24/09/2011	15/06/2011	-	Active	NO

Name :

Mr. Rajat Indulal Doshi

Designation :

Director

Address :

1 E, Dil Pazir, Bhulabhai Desai Road, Cumballa, Gamdevi, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

13.10.1958

Date of Appointment :

23.04.2009

DIN No.:

02423171

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	U72200MH1983PTC031468	ADAGE SYSTEMS PRIVATE LIMITED	Director	2/12/1983	2/12/1983	-	Strike off	NO
2	U32200MH1982PTC028754	SPECTRA VIDEO PRIVATE LIMITD	Director	9/04/1984	9/04/1984	-	Under liquidation	NO
3	U45200MH1995PTC091114	ROYAL BUILDMAT INDIA PRIVATE LIMITED	Director	1/01/1996	1/01/1996	27/02/2010	Dormant	NO
4	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	30/09/2009	23/04/2009	-	Active	NO

Name :

Mr. Abhay Praful Desai

Designation :

Director

Address :

Flat No. 502, Glen Classic Apartments, Hiranandani Gardens, Powai, Mumbai-400076, Maharashtra, India

Date of Birth/Age :

27.06.1962

Date of Appointment :

23.03.2010

DIN No.:

03016913

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	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	27/09/2010	23/03/2010	-	Active	NO

Name :

Mr. Jambunathan Sirnivasa Iyer Narayanswamy

Designation :

Director

Address :

Srinivasa Jambunathan 9, Prakash Co-Operative Housing Society, Relief Road, Daulat Nagar, Santacruz, Mumbai-400024, Maharashtra, India

Date of Birth/Age :

01.05.1938

Date of Appointment :

23.03.2010

DIN No.:

00066605

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	U74140PN2002PTC017425	FIRST POLICY INSURANCE BROKERS PRIVATE LIMITED	Director	15/01/2003	15/01/2003	7/11/2011	Active	NO
2	U24220MH1986PLC038618	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED	Director	27/09/2010	23/03/2010	25/11/2011	Active	NO

**DIN has been disabled, Form 32 needs to be filed for same.

KEY EXECUTIVES

Name :	Ms. Dipali Ramchandra Dorugade
Designation :	Company Secretary
Address :	R 2/9, Himnadi, MIDC Residential Zone, Dombivli (East), District Thane-421203, Maharashtra, India
Date of Birth/Age :	01.07.1983
Date of Appointment :	01.07.2009
PAN No.:	ANYPD2861P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2011

Names of Shareholders	No. of Shares
Adit G Mehta	151200
Alpana Indulal Doshi	1996588
Amit B Mehta	746927
Amrabathi Investra Private Limited, India	83475
Asha B. Mehta	1227208
Asha Bharat Mehta	50000
Ashika Venture Capital Private Limited, India	157500
Ashish Rajnikant Dani	18750
Bharat Mehta	941916
Chandravadan Shah	47122
Dinesh Bhagwanlal Mody	2500
Dishan Anantrai Kamdar	50000
Eknath Vasudeo Parab	1026
Girish S Mehta	14962

Equity Share Break up (Percentage of Total Equity)

As on 21.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	9.72
Bodies corporate	3.06
Directors or relatives of Directors	77.18
Others	10.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Intermediates.

Products :

Product Description	Item Code
Pyrazina	29242960
Erythrom	29415000
Erystear	29415000

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production*
Active Pharmaceutical Ingredients, Intermediate and Chemicals	MT	127463	1096

Note:

The Installed capacity has been certified by the management.

* Includes outsourced, contract manufactured and bought out goods.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Hyderabad, New India Assurance Company Building Ground Floor, 87, Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India
• Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	1318.115	909.271
Working capital loans banks secured	924.364	670.594
Total	2242.479	1579.865
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	18.950	18.521
Public deposits unsecured	5.946	4.563
Deferred sales tax loan unsecured	17.972	17.533
Other debt unsecured	197.123	255.332
Total	239.991	295.949

Banking Relations :	--
Auditors :
Name :	Jatin Shah Chartered Accountant
Address :	261/263, D N Road, 4^th Floor, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-32948140
Fax No.:	91-22-22610775
PAN.:	AVVPS9231R
Subsidiaries :	Singind Life Sciences Pte. Limited
Related Party :	Singind Life Sciences Pte. Limited, Singapore Calyx Employee Welfare Trust, India Top Brass Gifts Private Limited, India (CIN No.: U18101MH1993PTC072347)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15933240	Equity Shares	Rs.10/- each	Rs.159.332 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		159.332	135.360	135.360
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1187.590	780.482	587.774
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1346.922	915.842	723.134
LOAN FUNDS
1] Secured Loans		2242.479	1579.865	1336.562
2] Unsecured Loans		239.991	295.949	293.193
TOTAL BORROWING		2482.470	1875.814	1629.755
DEFERRED TAX LIABILITIES		166.238	156.246	147.135
TOTAL		3995.630	2947.902	2500.024
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1894.661	1453.601	1250.707
Capital work-in-progress		0.000	0.000	134.187
INVESTMENT		7.602	1.020	0.820
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1868.138	1223.411	875.229
	Sundry Debtors	920.727	729.227	695.553
	Cash & Bank Balances	188.012	242.460	73.055
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	211.390	286.456	55.642
Total Current Assets		3188.267	2481.554	1699.479
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	987.986	913.307	473.315
	Other Current Liabilities	93.288	43.003	80.759
	Provisions	48.149	50.057	31.519
Total Current Liabilities		1129.423	1006.367	585.593
Net Current Assets		2058.844	1475.187	1113.886
MISCELLANEOUS EXPENSES		34.523	18.094	0.424
TOTAL		3995.630	2947.902	2500.024

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4171.774	3218.025	2350.173
		Other Income	14.766	48.662	45.899
		TOTAL (A)	4186.540	3266.687	2396.072
Less	EXPENSES
		Consumption materials changes inventories	2920.259	2304.956
		Manufacturing service costs	129.274	90.202
		Employee related expenses	114.639	99.173	1942.127
		Administrative selling other expenses	240.177	161.720
		Research development expenditures	22.176	14.685
		Prior Period Expenditure	4.102	10.519
		TOTAL (B)	3430.627	2681.255	1942.127
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		755.913	585.432	453.945
Less	FINANCIAL EXPENSES (D)		274.125	232.453	175.155
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		481.788	352.979	278.790
Less/ Add	DEPRECIATION/ AMORTISATION (F)		97.704	77.371	74.342
	PROFIT BEFORE TAX (E-F) (G)		384.084	275.608	204.448
Less	TAX (H)		87.359	67.238	61.913
	PROFIT AFTER TAX (G-H) (I)		296.725	208.370	142.535
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		598.665	422.057	283.422
Less	APPROPRIATIONS
		Transfer to General Reserve		16.100	0.000
		Interim Equity Dividend	57.469	11.720	0.000
		Preferences Dividend		1.667	3.333
		Dividend Distribution Tax		2.275	0.567
	BALANCE CARRIED TO THE B/S		837.921	598.665	422.057
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	389.208	352.707
	TOTAL EARNINGS		NA	389.208	352.707
	IMPORTS
		Raw Materials	NA	1168.685	837.949
		Consumables	NA	0.321	0.167
	TOTAL IMPORTS		NA	1169.006	838.116
	Earnings Per Share (Rs.)		18.62	17.61	20.96

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.08	6.38	5.95
Net Profit Margin (PBT/Sales)	(%)	9.21	8.56	8.70
Return on Total Assets (PBT/Total Assets}	(%)	7.56	7.00	6.93
Return on Investment (ROI) (PBT/Networth)		0.29	0.30	0.28
Debt Equity Ratio (Total Liability/Networth)		2.68	3.15	3.06
Current Ratio (Current Asset/Current Liability)		2.82	2.47	2.90

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	No
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24220MH1986PLC038618
Name of the company	CALYX CHEMICALS AND PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 2, Marwah’s Complex, Marwah Estate, Saki Vihar Road, Andheri, Mumbai – 400 072, Maharashtra,India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10210773
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Hyderabad, New India Assurance Company Building Ground Floor, 87, Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India vlaxman@vsnl.com
Nature of instrument creating charge	Letter No.F/Adv/Calyx/1947 dated 07.02.2012 issued by State Bank of Hyderabad.
Date of instrument Creating the charge	07.02.2012
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the banks form time to time Terms of Repayment Corporate Loan of Rs.200.000 Millions shall be repayable in suitable installments. Margin As may be stipulated by the banks form time to time Extent and Operation of the charge The Bank has agreed to retain its subservient charge in place of its existing first charge, over all the present and future current assets including all goods and book debts of the company for securing its Corporate Loan of Rs.200.000 Millions sanctioned by the Bank to the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subservient charge on all current Assets of the company with all other lenders. First charge on all fixed assets of the company along with all other lenders.
Date of instrument modifying the charge	27.04.2010
Particulars of the present modification	The bank has retained its subservient charge in place of its existing first charge, over all the present and future current assets including all goods and book debts of the company for securing its corporate loan of Rs.200.000 Millions sanctioned by the Bank to the company. However, the charge created on fixed assets of the cop-many shall continue to the security by way of first charges in favour of the Bank to secure its corporate loan of Rs.200.000 Millions

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Air Conditioner

· Computer

· Electrical Installation

· Furniture and Fixture

· Laboratory Equipments

· Vehicles

· Office Equipments

· Air Conditioner

· Computer

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

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	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.