MIRA INFORM REPORT

Report Date :

01.08.2012

IDENTIFICATION DETAILS

Name :	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED
Registered Office :	15 Medavakkam Road, Shollinganallur, Chennai – 600119, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.10.1985
Com. Reg. No.:	18-012310
Capital Investment / Paid-up Capital :	Rs.32.400 Millions
CIN No.: [Company Identification No.]	U31900TN1985PTC012310
TAN No.: [Tax Deduction & Collection Account No.]	CHEP00534C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufactures of Machinery and Software for Diverse Industries.
No. of Employees :	Not Available

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 1350000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management of the company has not filed its latest financials with the government department. However, trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	15 Medavakkam Road, Shollinganallur, Chennai – 600119, Tamilnadu, India
Tel. No.:	91-44-24506000
Fax No.:	91-44-24506006/ 24506100
E-Mail :	accounts@proteck.co.in babu@proteck.co.in info@proteck.co.in
Website :	http://www.proteck.co.in
Factory 2 :	Unit 2, Plot No D1, Maraimalai Nagar Industrial Estate, Maraimalai Nagar Kancheepuram - 603209, Tamilnadu, India
Location :
Europe Marketing Office:	Located at: · England · Netherland
Branches :	Located at: · New Delhi · Mumbai · Kolkatta · Hyderabad · Bangalore · Sivakasi · Nagpur · Ahmedabad · Cochin · Pune

DIRECTORS

As on: 30.09.2010

Name :

Mr. Kameswaran Balasubramanian

Designation :

Managing Director

Address :

11, Spring Gardens, I Street.Akkarai Fast Coast Road, Chennai – 600119, Tamilnadu, India

Date of Appointment :

18.10.1985

DIN No.:

00222343

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31900TN1985PTC012310	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED	Managing director	18/10/1985	18/10/1985	-	Active	NO
2	U72300TN1997PTC039195	INSOFT AUTOMATION PRIVATE LIMITED	Director	09/10/1997	09/10/1997	-	Active	NO
3	U29130TN1998PTC040196	PROTECK MACHINERY PRIVATE LIMITED	Director	26/03/1998	26/03/1998	31/03/2010	Active	NO
4	U72200TN2003PTC050892	INDIA METAMATION SOFTWARE PRIVATE LIMITED	Director	21/05/2004	21/05/2004	-	Active	NO
5	U29253TN2008PTC065970	PROTECK PRECISION PRIVATE LIMITED	Managing director	08/01/2008	08/01/2008	-	Active	NO
6	U27310TN2003PTC051867	SAC-PROTECK METALS PRIVATE LIMITED	Director	02/08/2008	02/08/2008	-	Active	NO
7	U74991TN2008PTC069168	NILPETER INDIA PRIVATE LIMITED	Director	05/09/2008	05/09/2008	-	Active	NO
8	U29299TZ2009PTC015589	PROCOS MECHATRONICS PRIVATE LIMITED	Director	05/08/2010	11/11/2009	-	Active	NO
9	U29253TN2011PTC079422	TSUGAMI PRECISION ENGINEERING INDIA PRIVATE LIMITED	Director	07/03/2011	07/03/2011	-	Active	NO
10	U74999TN2011PTC080910	TSUGAMI TECH SOLUTIONS INDIA PRIVATE LIMITED	Director	02/06/2011	02/06/2011	-	Active	NO

Name :

Mr. Kameswaran Vaidyanathan

Designation :

Director

Address :

A4, Ramaniyam Saileela, No.35, Balakrishna Road, Thiruvanmiyur, Chennai-600041, Tamilnadu, India

Date of Appointment :

24.04.1992

DIN No.:

00222592

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31900TN1985PTC012310	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED	Director	24/04/1992	24/04/1992	-	Active	NO
2	L72400AP1984PLC004472	ESHA MEDIA RESEARCH LIMITED	Director	09/02/1995	09/02/1995	28/04/2012	Active	NO
3	U29130TN1998PTC040196	PROTECK MACHINERY PRIVATE LIMITED	Director	26/03/1998	26/03/1998	31/03/2010	Active	NO
4	U29253TN2008PTC065970	PROTECK PRECISION PRIVATE LIMITED	Director	08/01/2008	08/01/2008	-	Active	NO
5	U27310TN2003PTC051867	SAC-PROTECK METALS PRIVATE LIMITED	Director	02/08/2008	02/08/2008	-	Active	NO
6	U29299TZ2009PTC015589	PROCOS MECHATRONICS PRIVATE LIMITED	Additional director	05/08/2010	05/08/2010	-	Active	NO

Name :

Mr. Kishor Manohar Arur

Designation :

Director

Address :

Hat No 2, Block "C", Abhinav Gardens, 34, Velachery Road, Chennai - 600 015, Tamilnadu, India

Date of Appointment :

24.04.1992

DIN No.:

01087838

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31900TN1985PTC012310	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED	Director	24/04/1992	24/04/1992	-	Active	NO
2	U30007TN1993PTC025031	QUANTEK IMAGING SYSTEMS PRIVATE LIMITED	Director	11/05/1993	11/05/1993	-	Active	NO

Name :

Mr. Alan Louis Barretto

Designation :

Director

Address :

Flat No 2 B , Block "2" Mangolia Park, 2 Five Furling Road Guindy, Chennai - 600 032, Tamilnadu, India

Date of Appointment :

28.03.1994

DIN No.:

01087603

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31900TN1985PTC012310	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED	Director	28/03/1994	28/03/1994	-	Active	NO
2	U29253TN2008PTC065970	PROTECK PRECISION PRIVATE LIMITED	Director	08/01/2008	08/01/2008	-	Active	NO
3	U74991TN2008PTC069168	NILPETER INDIA PRIVATE LIMITED	Managing director	07/01/2009	07/01/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2010

Names of Shareholders	No. of Shares
K. Balasubramanian	590000
K. Vaidyanathan and Lakshmi Vaidhyanathan	630000
Lakshmi Vaidhyanathan and K. Vaidyanathan	500000
Kishor Arur	240000
Allan Barretto	240000
Insoft Automation Private Limited, India	150000
Pragati Offset Private Limited, India	90000
Kartik Vaidyanathan	100000
Jayant Vaidyanathan	100000
Deepa Balasubramanian	600000
Total	3240000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2010

Category	Percentage
Bodies corporate	7.40
Directors or relatives of directors	92.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufactures of Machinery and Software for Diverse Industries.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Overseas Branch, 86. Rajaji Salai, Chennai - 600001, Tamilnadu, India

· HDFC Bank Limited, Mariam Centre, Mount Road Chennai – 600002, Tamilnadu, India

· Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
From State Bank of India Overseas
Working Capital Loans	106.589	131.242
Term Loans (The above loans are secured against mortgage of the Company's land and building and hypothecation of Stock in Trade, Receivables and other movable Assets. The Loans are guaranteed by all Directors)	33.949	53.030
From HDFC Bank Limited (Secured against hypothecation of Vehicles under respective Hire Purchase Agreements)	1.443	3.147
Total	141.981	187.419
Unsecured Loan	As on 31.03.2010	As on 31.03.2009
From State Bank of India, Frankfurt (Foreign Currency Loan)	0.000	2.537
From State Bank of India, Hong Kong (Foreign Currency Loan)	14.621	0.000
From Bank of India, Japan (Foreign Currency Loan)	0.000	32.597
From Bank of India, Paris Branch, France (Foreign Currency Loan)	0.000	3.428
Total	14.621	38.562

Banking Relations :	--
Auditors :
Name :	Chandran and Raman Chartered Accountants
Address :	2, Dr. Radhakrishnan Road, 2nd Street, Mylapore, Chennai – 600004, Tamilnadu, India
PAN No.:	AAAFC3239R
Subsidiary Company :	Proteck Precision Private Limited CIN No.: U29253TN2008PTC065970
Enterprises owned or significantly Influenced by Key Management Personnel or their relatives :	· Proteck Machinery Private Limited · Insoft Automation Private Limited · India Metamation Software Private Limited · Quantek Imaging Systems Private Limited · NilPeter India Private Limited · SAC Proteck Metals Private Limited · PROCOS Mechatronics Private Limited

CAPITAL STRUCTURE

As on: 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3240000	Equity Shares	Rs.10/- each	Rs.32.400 Millions

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		32.400	32.400	32.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		305.530	297.060	291.652
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		337.930	329.460	324.052
LOAN FUNDS
1] Secured Loans		141.981	187.419	203.340
2] Unsecured Loans		14.621	38.562	0.000
TOTAL BORROWING		156.602	225.981	203.340
DEFERRED TAX LIABILITIES		23.997	21.931	23.265
TOTAL		518.529	577.372	550.657
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.474	291.837	281.745
Capital work-in-progress		0.000	4.909	5.095
INVESTMENT		8.898	4.594	0.495
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	212.039	290.291	223.646
	Sundry Debtors	149.218	126.122	186.708
	Cash & Bank Balances	14.308	17.057	12.174
	Other Current Assets	38.038	55.791	64.042
	Loans & Advances	0.336	1.806	0.000
Total Current Assets		413.939	491.067	486.570
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	180.793	184.352	183.489
	Other Current Liabilities	12.989	30.683	32.639
	Provisions	0.000	0.000	7.120
Total Current Liabilities		193.782	215.035	223.248
Net Current Assets		220.157	276.032	263.322
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		518.529	577.372	550.657

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Turnover (Sales and Service)	614.724	467.932	569.861
		Other Income	36.162	57.087	70.878
		TOTAL (A)	650.886	525.019	640.739
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	589.823	473.133	532.504
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		61.063	51.886	108.235
Less	FINANCIAL EXPENSES (D)		26.576	27.840	24.371
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.487	24.046	83.864
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.002	22.341	19.448
	PROFIT BEFORE TAX (E-F) (G)		12.485	1.705	64.416
Less	TAX (I)		4.014	(0.899)	27.986
	PROFIT AFTER TAX (G-I) (J)		8.471	2.604	36.430
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		269.328	266.724	230.294
	BALANCE CARRIED TO THE B/S		277.799	269.328	266.724
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	82.754	69.822	173.495
		Commission Earnings	32.256	45.357	14.678
	TOTAL EARNINGS		115.010	115.179	188.173
	IMPORTS
		Raw Materials	138.233	90.938	104.084
		Capital Goods	17.081	1.648	42.117
	TOTAL IMPORTS		155.314	92.586	146.201
	Earnings Per Share (Rs.)		2.61	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.30	0.50	5.69
Net Profit Margin (PBT/Sales)	(%)	2.03	0.36	11.30
Return on Total Assets (PBT/Total Assets}	(%)	1.77	0.22	8.38
Return on Investment (ROI) (PBT/Networth)		0.04	0.01	0.20
Debt Equity Ratio (Total Liability/Networth)		1.04	1.34	1.32
Current Ratio (Current Asset/Current Liability)		2.14	2.28	2.18

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
4]	Premises details	No
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 three 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 involved in	--
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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.03.2010	31.03.2009
Financial and Performance Guarantees given by the Bankers and Letter of Credits	106.011	87.433
Sales Tax Liability disputed in appeal (Liability not provided for in the books)	0.696	1.689

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U31900TN1985PTC012310
Name of the company	PROTECK CIRCUITS AND SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	15 Medavakkam Road, Shollinganallur, Chennai – 600119, Tamilnadu, India E-mail: babu@proteck.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90306701
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, Overseas Branch, 86. Rajaji Salai, Chennai - 600001, Tamilnadu, India E-mail: mahendiran56@gmail.com
Nature of instrument creating charge	Letter regarding the grant of individual limits within the overall limit. Form C-5.
Date of instrument Creating the charge	15.06.2012
Amount secured by the charge	Rs.377.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest EPC: 2.00% above Base Rate (10.00%) i.e. 12.00% p.a.} CC/WCTL/TL-I: 5.00% above Base Rate (10.00%) i.e. 15.00% p.a.} with monthly rests TL-II: 6.00% above Base Rate (10.00%) i.e. 16.00% p.a.} Terms of Repayment Working Capital: Repayable on Demand WCTL: Repayable in 60 monthly installments with a moratorium period of 36 months. Repayment commencing from April 2012 and end in Mar 2014. First 12 monthly installments of Rs.1.100 Millions each, Next 11 monthly installments of Rs.1.200 Millions each and the Last installment of Rs.6.000 Millions TL-I: As per the existing Terms and Conditions TL-II: Repayable in 60 monthly installments with a moratorium period of 5 months. Repayment commencing from April 2012 and end in Mar 2016 Margin Raw Materials : 25% Stock in Process : 25% Finished Goods : 25% LC/BG : 10% Book Debts/Receivables: 40% Extent and Operation of the charge As mentioned in the Form C-5.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	CC/WCTL: Hypothecation charge over the Current Assets viz., RM, SIP, Consumables, Spares and Stores, Finished Goods and Receivables belonging to the Company. EPC: Hypothecation charge over the Current Assets viz., RM, SIP, Consumables, Spares and Stores and Finished Goods belonging to the Company. FBD (Non-LC): Bills in the course of collection and charge on the Current Assets as applicable to CC facility LC (WC): Documents of title to goods/ mechandise covered under LC and charge on the Current Assets as applicable to CC facility Term Loan-I: First charge over the Company's Plant and Machinery Term Loan - II: First charge on all the assets created out of disbursement of the Term Loan The existing charge on the Immovable properties belonging to the Company shall continue to secure the present reduced limit Other existing securities remain same.
Date of instrument modifying the charge	30.03.2011
Particulars of the present modification	By the present modification, the overall limit has been reduced from Rs.399.000 Millions to Rs.377.000 Millions and secured by the Current Assets and Immovable properties belonging to the Company, more fully described in the Field No.15 of this eForm above. Other existing securities remain same.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Factory Building

· Plant and Machinery

· Electrical Installations and Electrical Fittings

· Office Equipment

· Furniture and Fittings

· Computer Equipments

AS PER WEBSITE DETAILS:

PROFILE

Subject is a multi-product engineering company that manufactures machinery and software for diverse industries. There product lines include Printing Machinery, Packaging Machinery, CNC Machine tools and CAD/CAM software. They also provide Contract Manufacturing Services. Subject products are operational in more than 20 countries worldwide.

Cutting edge product performance and market leading value distinguish there products in there markets. A two decade tradition of customer centric business practice has earned them respect and reputation in markets worldwide. As a technology-driven group, they are on the trajectory of extreme growth in the first decade of the new era.

HISTORY:

1985 Subject and Systems incorporated. Exposure units for plate making introduced with M.H. Light sources

1988 Expanded product line to include Film Exposure and Plate Processing equipment

1990 First export of processor to the United States of America

1992 First CNC machine introduced in our facility

1995 First Drupa participation

1997 Export of Products to Japan for printing machinery

1998 Subject Machinery, the marketing arm incorporated

2000 CNC Machine manufacture commenced. Participation in Drupa 2000

2001 Inaugurated new production facility. Over 4000 plate making systems installed worldwide

2003 Packaging machinery product line commenced

2004 Drupa 2004 participation

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.55.81
UK Pound	1	Rs.87.67
Euro	1	Rs.68.45

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--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

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.