MIRA INFORM REPORT

Report Date :

30.04.2012

IDENTIFICATION DETAILS

Name :	VACMET INDIA LIMITED w.e.f 26.08.2009
Formerly Known As :	VACMET PACKAGINGS (INDIA) PRIVATE LIMITED
Registered Office :	Anant Plaza, 2^nd Floor, 4/117-2A, Civil Lines, Church Road, Agra – 282002, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.03.1993
Com. Reg. No.:	20-034039
Capital Investment / Paid-up Capital :	Rs.130.130 Millions
CIN No.: [Company Identification No.]	U74899UP1993PLC034039
TAN No.: [Tax Deduction & Collection Account No.]	AGRV10053B
PAN No.: [Permanent Account No.]	AAACV5120B
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Polyester Films, Metallized and Speciality Coated Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 9080000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established 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 – 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 :	Anant Plaza, 2^nd Floor, 4/117-2A, Civil Lines, Church Road, Agra – 282002, Uttar Pradesh, India
Tel. No.:	91-562-2525466/ 4050400
Fax No.:	91-562-2151188/ 2527064
E-Mail :	vacmet@vsnl.com vacmet@vpiplmail.co.in
Website :	http://www.vpiple.co.in
Factory :	110 Km Stone, Delhi National Highway, Chhata, District Mahtura – 281401, Uttar Pradesh, India
Marketing Office :	104/106, Tribuvan Complex, New Friends Colony, Mathura Road, New Delhi, India

DIRECTORS

As on 12.08.2011

Name :

Mr. Dinesh Chand Agarwal

Designation :

Managing Director

Address :

4/117 E, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

15.01.1949

Date of Appointment :

03.03.1993

DIN No.:

00471703

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	U74899UP1993PLC034039	Vacmet India Limited	Managing director	03-03-93	03-03-93	-	Active	NO
2	U65922UP2005PLC029770	Vacmet Finance and Investments Limited	Director	07-04-05	07-04-05	-	Active	NO
3	U74950UP2005PLC030159	Vacmet Industries and Infrastructures Limited	Director	08-06-05	08-06-05	-	Active	NO
4	U21098UP2010PTC042655	Polypacks Trade Venture Private Limited	Director	24-11-10	24-11-10	-	Active	NO

Name :

Mr. Padam Chand Agarwal

Designation :

Director

Address :

4/117 B, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

08.03.1944

Date of Appointment :

03.03.1993

DIN No.:

00007191

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	U74899UP1993PLC034039	Vacmet India Limited	Whole-time director	03-03-93	03-03-93	-	Active	NO
2	U74950UP2005PLC030159	Vacmet Industries and Infrastructures Limited	Director	08-06-05	08-06-05	-	Active	NO

Name :

Mr. Suresh H Chand Agarwal

Designation :

Director

Address :

4/117 D, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

08.05.1942

Date of Appointment :

03.03.1993

DIN No.:

00472773

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	U74899UP1993PLC034039	Vacmet India Limited	Director	03-03-93	03-03-93	-	Active	NO
2	U74950UP2005PLC030159	Vacmet Industries and Infrastructures Limited	Director	08-06-06	08-06-06	-	Active	NO

Name :

Mr. Raj Narain Agarwal

Designation :

Director

Address :

4/117 C, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

05.05.1947

Date of Appointment :

03.03.1993

DIN No.:

00472736

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	U74899UP1993PLC034039	Vacmet India Limited	Whole-time director	01-07-10	03-03-93	-	Active	NO
2	U74950UP2005PLC030159	Vacmet Industries And Infrastructures Limited	Director	08-06-05	08-06-05	-	Active	NO
3	U21098UP2010PTC042655	Polypacks Trade Venture Private Limited	Director	24-11-10	24-11-10	-	Active	NO

Name :

Mr. Nitin Agarwal

Designation :

Director

Address :

4/117 C, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

22.07.1969

Date of Appointment :

24.03.2009

DIN No.:

01826926

Name :

Mr. Rahul Agarwal

Designation :

Director

Address :

4/117 C, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

02.05.1970

Date of Appointment :

24.03.2009

DIN No.:

01232503

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	U65922UP2005PLC029770	Vacmet Finance and Investments Limited	Director	07-04-05	07-04-05	-	Active	NO
2	U74899UP1993PLC034039	Vacmet India Limited	Director	08-09-09	24-03-09	-	Active	NO

Name :

Mr. Mayank Agarwal

Designation :

Director

Address :

4/117 E, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

12.11.1976

Date of Appointment :

24.03.2009

DIN No.:

00513665

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	U65922UP2005PLC029770	Vacmet Finance and Investments Limited	Director	07-04-05	07-04-05	-	Active	NO
2	U74899UP1993PLC034039	Vacmet India Limited	Director	08-09-09	24-03-09	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Komal Gupta
Designation :	Secretary
Address :	18/162, M P Pura, Babari Tajganj, Agra – 282001, Uttar Pradesh, India
Date of Birth/Age :	20.08.1986
Date of Appointment :	16.03.2010
Pan No.:	ATRPG7105L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.08.2011

Names of Shareholders	No. of Shares
Dinesh Chand Agarwal	3464000
Raj Narain Agarwal	845000
Suresh Chand Agarwal	454500
Padam Chand Agarwal	183000
Nitin Agarwal	155000
Rahul Agarwal	140500
Mayank Agarwal	132400
Shailendra Agarwal	133000
Om Prakash Agarwal	20000
Umesh Agarwal	68000
Bimla Agarwal	23000
Sudha Agarwal	29000
Sangeeta Agarwal	25000
Rekha Agarwal	42000
Shalini Agarwal	67000
Neeta Agarwal	23000
Rajni Agarwal	15000
Manoj Agarwal	32000
Pawan Agarwal	23000
Deepak Agarwal	25000
Manjuri Agarwal	83500
Kirti Agarwal	25000
Swati Agarwal	10000
Priyanka Agarwal	15000
Ravi Agarwal	17000
Shilpa Agarwal	1000000
Vacmet Finance and Investments Limited	1050000
KMC Portfolio Private Limited	1350000
Ganpati Fincap Services Private Limited	250000
Shushre Securities Private Limited	200100
India Agri Business Fund Limited	3102062
Real Trust	10895
TOTAL	13012957

Equity Share Break up (Percentage of Total Equity)

As on 12.08.2011

Category	Percentage
Bodies corporate	28.79
Directors or relatives of Directors	71.21
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyester Films, Metallized and Speciality Coated Products.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Polyester Film	MT	NA	NA	20600.61
Glitter Powder	MT	NA	NA	80.27
Paper Film	MT	NA	NA	2645.60
Bopp Film	MT	NA	NA	400.80

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, International Business Branch, 13, M.G. Road, Agra-282001, Uttar Pradesh, India

· Landesbank Badeb – Wurttemerg Am Hauptbahnhof 2, 70173, Stuttgart, Federal Republic of Germany, Stuttgart – D70173, Germany

· Bank of India

· State Bank of India

· City Bank

· Allahabad Bank

· Standard Chartered Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	1375.780	673.804
Rupee term loans banks secured	130.884	146.408
Working capital loans banks secured	298.511	136.291
Loans taken for vehicles secured	4.130	6.659
Total	1809.305	963.162
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans directors unsecured	58.901	54.879
Other debt unsecured	5.004	21.973
Total	63.905	76.852

Banking Relations :	--
Auditors 1 :
Name :	Tondon Mital and Associates Chartered Accountants
Address :	F-5, Narayan Tower, Sanjay Place, Agra-282002, Uttar Pradesh, India
Tel. No.:	91-562-4004525/ 2526449/ 3298751
PAN.:	AAAFT8324N
Auditors 2 :
Name :	Walker Chandiok and Company Chartered Accountants
Address :	L-41, Cannaught Circus, New Delhi, India
PAN.:	AACFG6740K
Entities where significant influence is exercised by key management personnel and/ or their relatives having transactions with the Company:	Afore Tracom Merchants Private Limited Afore Tracom Merchants Private Limited Polypacks Industries Vacmet Overseas Rishabh Tracom and Commercial Merchant Private Limited Wrap n Gift Paper Company

CAPITAL STRUCTURE

As on 12.08.2011

Authorised Capital: Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital: Rs.142.889 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13012957	Equity Shares	Rs.10/- each	Rs.130.130 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		130.130	98.000	98.000
2] Share Application Money		2.552	4.000	4.000
3] Reserves & Surplus		2136.321	959.229	600.525
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2269.003	1061.229	702.525
LOAN FUNDS
1] Secured Loans		1809.305	963.162	1020.168
2] Unsecured Loans		63.905	76.852	109.390
TOTAL BORROWING		1873.210	1040.014	1129.558
DEFERRED TAX LIABILITIES		219.236	146.139	105.272
TOTAL		4361.449	2247.382	1937.355
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3031.152	1462.845	1466.578
Capital work-in-progress		11.302	33.134	0.000
INVESTMENT		0.000	0.000	1.408
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	378.366	294.141	196.394
	Sundry Debtors	150.680	161.454	142.044
	Cash & Bank Balances	690.636	206.404	272.999
	Other Current Assets	36.246	26.879	39.597
	Loans & Advances	418.455	292.200	99.642
Total Current Assets		1674.383	981.078	750.676
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	267.551	203.538	225.069
	Other Current Liabilities	47.332	18.116	31.595
	Provisions	40.505	8.197	24.895
Total Current Liabilities		355.388	229.851	281.559
Net Current Assets		1318.995	751.227	469.117
MISCELLANEOUS EXPENSES		0.000	0.000	0.252
TOTAL		4361.449	2247.382	1937.355

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4060.097	2574.079	2427.492
		Other Income	71.228	96.825	69.077
		TOTAL (A)	4131.325	2670.904	2496.569
Less	EXPENSES
		Consumption of Material	2190.168	1592.151	2055.357
		Manufacturing Service	511.418	396.253
		Employee Related Cost	47.927	37.037
		Administration and Selling Expenses	152.721	73.702
		Prior Period Extra Ordinary Item	4.382	0.000
		TOTAL (B)	2906.616	2099.143	2055.357
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1224.709	571.761	441.212
Less	FINANCIAL EXPENSES (D)		57.828	71.175	96.514
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1166.881	500.586	344.698
Less/ Add	DEPRECIATION/ AMORTISATION (F)		138.279	139.018	138.904
	PROFIT BEFORE TAX (E-F) (G)		1028.602	361.568	205.794
Less	TAX (H)		323.352	103.464	98.689
	PROFIT AFTER TAX (G-H) (I)		705.250	258.104	107.105
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	509.031	315.782	208.157
	IMPORTS
		Capital Equipment	1121.554	76.151	62.888
		Raw Material	179.219	172.388	452.022
		Consumables	33.293	24.775	8.763
		Machinery	37.935	28.620	15.786
	TOTAL IMPORTS		1372.001	301.934	539.459
	Earnings Per Share (Rs.)		53.16	26.07	10.93

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	17.07	9.66	4.29
Net Profit Margin (PBT/Sales)	(%)	25.26	14.05	8.48
Return on Total Assets (PBT/Total Assets}	(%)	21.85	14.47	9.28
Return on Investment (ROI) (PBT/Networth)		0.45	0.34	0.29
Debt Equity Ratio (Total Liability/Networth)		0.98	1.25	2.00
Current Ratio (Current Asset/Current Liability)		4.71	3.64	2.67

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The overall performance for the year was extremely good with strong growth. The turnover for the year ended 31^st march 2011 at Rs.4390.000 millions as against Rs.2750.000 millions in the proceeding accounting year recorded an increase of Rs.59.63% annualized basis. Profit before interest, depreciation and taxes for the year ended 31^st march 2011 stood at Rs.1229.100 millions having growth of Rs.115.00% on an annualized basis over the preceding accounting period ending 31^st march 2011, mainly due to better operating efficiency and strong revenue growth. The company recorded a healthy net profit after tax of Rs.705.200 millions during the year.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2011	31.03.2010
Bank guarantee in favour of Indian Oil Corporation to avail credit facility on purchase of furnace oil	1.200	1.200
Bank Guarantee in favour of National Highway Authority of India for laying waste water pipeline	0.100	0.000
Security Bond furnished by Suresh Chand Agarwal (Director) and Raj Narayan Agarwal (Director) on behalf of the Company for Entry Tax	1.142	1.142
Outstanding letter of credits established by the Company’s bankers in favour of suppliers against which goods are to be received	68.816	87.815
Obligation of duty against balance exports obligation for imports under Export Promotion Capital Goods Scheme (EPCG) licenses & Export Promotion Scheme - Advance Licenses	302.163	131.746
Demands raised by the excise authorities against which appeals have been filed	274.023	224.367
Demands raised by the sales tax authorities against which appeals have been filed	14.038	15.059

FORM 8

Corporate identity number of the company	U74899UP1993PTC034039
Name of the company	VACMET PACKAGINGS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Anant Plaza, 2^nd Floor, 4/117-2A, Civil Lines, Church Road, Agra-282002, Uttar Pradesh, India Email: vacmet@vpiplmail.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80000134
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of Baroda, International Business Branch, 13, M.G. Road, Agra-282001, Uttar Pradesh, India Email: inagra@bankofbaroda.com
Nature of instrument creating charge	Supplemental composite instrument of hypothecation of goods, book-debts, moveable, machinery and vehicles.
Date of instrument Creating the charge	26.04.2011
Amount secured by the charge	Rs.1465.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1.25% over base rate i.e 10.25% p.a with monthly rest at present for T/L and 1.25% over base rate for line of credit subject to change in base rate and credit rating from time to time. Terms of Repayment: Fresh T/L of Rs.250.000 millions (with sub limit of buyers credit for 1080 days) 23 quarterly installments of Rs.10.400 millions, 1 quarterly installment of Rs.10.800 millions + interest separately from June, 2012. Margin: T/L VII-20%, T/L VIII- 30%, T/L IX-41%, T/L XI-40.45%, stock-20%, Book-Debts-25% (up to date 90 days only) Inland/FLC for 180/360 days/Buyers credit-10% Extent and operation of charge: Hypothecation of stock, book debts and plant and machinery (existing as well as proposed to be purchased in future) Extension of Equitable mortgage of property belongs to Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension over entire Fixed Assets of Unit I, situated at B-5, UPSIDC, Industrial Area, Sikandra. Extension of Equitable mortgage of Unit-II situated at A-4/1, UPSIDC, Industrial Area, Kosi Kalan (Mathura), U.P. Extension of Equitable mortgage of Unit IV situated at 110 K.M Stone, Delhi Mathura National Highway, Village Chhata, Distt. Mathura, (U.P.)
Date of instrument modifying the charge	04.12.2008
Particulars of the present modification	Composite credit facilities from bank of baroda now stands enhance to Rs. 1465.400 millions

FIXED ASSETS:

· Land and Site Development (Leasehold Hold)

· Land and Site Development (Free Hold)

· Building

· Plant and Machinery

· Electric Fittings

· Vehicles

· Motor Car

· Office Furniture

· Capital Work in Progress

AS PER WEBSITE

PROFILE:

Subject is a privately held company involved in production of high end packaging materials having applications in various food and non food sectors. Vacmet has four manufacturing sites with an installed capacity of 20,000 tons of converted products and 20000 tons of Polyester Films per annum.

Subject has strong domestic and International presence. It exports to 35 countries across the globe and has received several awards for export performances.

Subject diversified product range caters to several segments including Flexible Packaging, Security , Medical, Textiles, Labelling, and Decoration. Major customers includes large number of converters that makes flexible laminates for companies like Unilever, P and G, Colgate Palmolive, ITC etc. With strong direct presence and good networking and distribution partners, Vacmet products are sold to even far flung areas.

Subject has been in the forefront to conserve energy and make optimum utilization of it. It has invested in waste heat recovery plants and uses waste heat generated for air conditioning units.

The objective and corporate philosophy of the company has been to provide premium quality flexible packaging films and paper through optimum use of resources by building and maintaining a team of motivated and committed work force which meets professional and human standards of excellence.

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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.