MIRA INFORM REPORT

Report Date :

22.08.2012

IDENTIFICATION DETAILS

Name :	BINDALS PAPERS MILLS LIMITED (W.e.f. 29.05.2012)
Formerly Known As :	BINDAL PAPERS LIMITED (w.e.f. 12.10.2006) BINDAL NEWSPRINT LIMITED
Registered Office :	Np, 151 B, Maurya Enclave, Pitam Pura, Delhi – 110088
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.05.2006
Com. Reg. No.:	55-148926
Capital Investment / Paid-up Capital :	Rs.334.943 Millions
CIN No.: [Company Identification No.]	U21011DL2006PLC148926
TAN No.: [Tax Deduction & Collection Account No.]	DELB09927B
PAN No.: [Permanent Account No.]	AADCB0282B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Packaging grades of paper and paperboards, tissue papers, iron and steel
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 5700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has achieved better increase in its sales turnover profitability appears to be low. However, trade relations are reported as decent. Business is active. Payments are reported to be usually correct. 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 – 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 DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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 :	Np, 151, B, Maurya Enclave, Pitam Pura, Delhi – 110088, India
Tel. No.:	91-11-47527700
Fax No.:	91-11-47527777
E-Mail :	bindalgroup@gmail.com
Website :	http://www.bindalpapers.com
Corporate Office :	8th km., Bhopa Road,  Muzaffarnagar - 251 001, Uttar Pradesh, India
Tel. No.:	91-131-2468446 / 2468381-82
Fax No.:	91-131-2468382
E-Mail :	info@bindalpapers.com
Branch Office 1 :	212, Agarwal City mall, Road No. 44, Opposite M2K cinema, Pitampura Delhi - 110 034, India
Tel. No.:	91-11-47537700
Fax No.:	91-11-47537777
E-Mail :	marketing@bindalpapers.com
Branch Office 2 :	F-38, Nand Dham Udyog Premises, Marol Maroshi Road, Marol, Andheri (East), Mumbai - 400 059 Maharashtra, India
Tel. No.:	91-22-29201746 / 29206428
Fax No.:	91-22-29206427
E-Mail :	sales.mumbai@bindalpapers.com

DIRECTORS

As on 28.09.2011

Name :

Mr. Rakesh Kumar

Designation :

Chairman cum Managing Director

Address :

112, South Bhopa Raod, Muzaffarnagar - 251001, Uttar Pradesh, India

Date of Birth/Age :

06.10.1958

Date of Appointment :

19.05.2006

DIN No.:

00014691

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	L74899DL1995PLC066194	NEERAJ PAPER MARKETING LIMITED	Director	9/3/1995	9/3/1995	10/3/2008	Active	NO
2	U27109DL2003PLC119070	BINDALS SPONNGE INDUSTRIES LIMITED	Director	20/02/2003	20/02/2003	-	Active	NO
3	U21022DL1993PLC119328	TEHRI PULP AND PAPER LIMITED	Managing director	2/4/2007	7/3/2003	-	Active	NO
4	U00000CH2004PLC032585	GIANT SECURITIES LIMITED	Director	30/11/2004	30/11/2004	1/1/2008	Active	NO
5	U21011DL2006PLC148926	BINDALS PAPERS MILLS LIMITED	Managing director	2/6/2008	19/05/2006	-	Active	NO
6	U70101DL1996PTC082801	MANSI PROMOTERS PRIVATE LIMITED	Director	16/10/2006	16/10/2006	10/7/2008	Active	NO
7	U72200DL2005PTC133833	AESTHETIC SOFT-TECH SYSTEMS PRIVATE LIMITED	Director	22/07/2007	22/07/2007	-	Active	NO
8	U36101DL2003PTC122374	GOLDEN EDGE FURNITECH PRIVATE LIMITED	Director	1/9/2008	1/9/2008	16/06/2010	Active	NO

Name :

Mr. Neeraj Goel

Designation :

Director

Address :

C-355, Saraswati Vihar Pitampura, New Delhi – 110088, India

Date of Birth/Age :

04.02.1959

Date of Appointment :

19.05.2006

DIN No.:

00017498

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	L74899DL1995PLC066194	NEERAJ PAPER MARKETING LIMITED	Managing director	9/3/1995	9/3/1995	10/3/2008	Active	NO
2	U99999DL1984PLC019052	AGARWAL DUPLEX BOARD MILLS LIMITED	Director	19/08/2001	19/08/2001	-	Active	NO
3	U27109DL2003PLC119070	BINDALS SPONNGE INDUSTRIES LIMITED	Managing director	2/4/2007	20/02/2003	-	Active	NO
4	U21022DL1993PLC119328	TEHRI PULP AND PAPER LIMITED	Director	7/3/2003	7/3/2003	-	Active	NO
5	U74899DL1993PLC055903	MANSI FINANCE LIMITED	Director	30/09/2004	30/09/2004	2/8/2012	Active	NO
6	U00000CH2004PLC032585	GIANT SECURITIES LIMITED	Director	30/11/2004	30/11/2004	1/1/2008	Active	NO
7	U21011DL2006PLC148926	BINDALS PAPERS MILLS LIMITED	Director	19/05/2006	19/05/2006	-	Active	NO
8	U36101DL2003PTC122374	GOLDEN EDGE FURNITECH PRIVATE LIMITED	Director	1/9/2008	1/9/2008	16/06/2010	Active	NO

Name :

Mr. Mayank Agarwal

Designation :

Whole-Time Director

Address :

112, South Bhopa Raod, Muzaffarnagar - 251001, Uttar Pradesh, India

Date of Birth/Age :

21.06.1981

Date of Appointment :

19.05.2006

DIN No.:

00273133

Name :

Mr. Sachin Agarwal

Designation :

Director

Address :

122, South Bhopa Raod, Muzaffarnagar - 251001, Uttar Pradesh, India

Date of Birth/Age :

16.11.1975

Date of Appointment :

01.02.2010

DIN No.:

02310154

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	U21022DL1993PLC119328	TEHRI PULP AND PAPER LIMITED	Whole-time director	2/4/2007	1/3/2004	-	Active	NO
2	U72200WB2000PTC092593	V.R. DIGITAL PRIVATE LIMITED	Director	13/08/2008	13/08/2008	-	Active	NO
3	U21011DL2006PLC148926	BINDALS PAPERS MILLS LIMITED	Director	30/09/2010	01/02/2010	-	Active	NO

Name :

Mr. Abanish Panda

Designation :

Director

Address :

G-16/9, Malviya Nagar, Delhi – 110017, India

Date of Birth/Age :

09.08.1930

Date of Appointment :

30.09.2008

DIN No.:

02370500

KEY EXECUTIVES

Name :	Shikha Allawadhi
Designation :	Secretary
Address :	3029, Sant Nagar, Rani Bagh, Delhi – 110034, India
Date of Birth/Age :	12.02.1986
Date of Appointment :	01.11.2010
PAN No.:	AUDPA1193R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders (Equity Shares)	No. of Shares
Ashok Kumar	215100
Anil Kumar	5100
Amit Bindal	23500
Mayank Bindal	150100
Ankur Bindal	55100
Rakesh Kumar	248850
Deepak Goel	79650
Neeraj Goel	179150
Agarwal Duplex Board Mills Limited, India	1657000
Bindal Pulp and Papers Private Limited, India	350000
Bindal Sponge Limited, India	2200500
V.R. Digital Private Limited, India	2112000
Nutan Goel	53750
Pankaj Goel	68000
Shilpy Bindal	16800
Rakesh Kumar and Sons	7500
Sony Bindal	17500
Saraswati Devi	15900
Vikas Agarwal and Sons	20000
Ayus Bindal	5000
Amit Agarwal and Sons	11250
Sashi Rani	5900
Sohan Lal and Sons	31250
Ashok Kumar and Sons	16250
Suresh Chand Angori Devi	15000
Saroj Devi	21250
Sachin Agarwal	195000
Shweta Bindal	28100
Surbhi Rani	500
Vikas Agarwal	900
Seema Bindal	34150
Vipul Kumar	12500
Ashok Kumar	12500
Poonam Goel	12500
Deepak Kumar	12500
Radha Mohan	15000
Vikas Kumar	15000
Rajendra Kumar	15000
Sushil Kumar (HUF)	15000
Sangita Jain	15000
Shalani Sharma	15000
Parmod Kumar	15000
Vijay Kumar	17500
Poonam	10000
Sushila Devi	17500
Babita Jain	15000
Vinod Kumar (HUF)	15000

Names of Shareholders (Preference Shares)	No. of Shares
Satyavan Sales Promotion Private Limited, India	100000
Brina Gopal Traders Private Limited, India	500000
Anuvrat Transport System Private Limited, India	350000
Bindal Pulp and Paper Private Limited, India	50000
Total	1000000

As on 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	86.68
Directors or relatives of Directors	6.02
Other top fifty shareholders	4.92
Others	2.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Packaging grades of paper and paperboards, tissue papers, iron and steel

Products :

Description of product or services	ITC number of product
Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes.	4802

PRODUCTION STATUS

Particulars	Unit	31.03.2011
Installed Capacity	MT	90000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Allahabad Bank, 36A, New Mandi, Muzaffarnagar - 251001, Uttar Pradesh, India
• Punjab National Bank
• Oriental Bank of Commerce
• Bank of Maharashtra, New Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	2427.981	2156.108
Working capital loans banks secured	509.944	320.987
Total	2937.925	2477.095
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	79.071	199.102
Total	79.071	199.102

Banking Relations :	--
Auditors :
Name :	Goel Singhal and Associates Chartered Accountants
Address :	203/60, Upper Story, Sadar Bazar, Muzaffarnagar, Uttar Pradesh, India
PAN.:	AAFFG4832P
Associates Company:	Tehri Pulp And Paper Limited CIN No. U21022DL1993PLC119328 Bindal Sponge Limited CIN No. U27109DL2003PLC119070

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
1000000	Preference Shares	Rs.100/-each	Rs.100.000 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23494300	Equity Shares	Rs.10/- each	Rs.234.943 Millions
1000000	Preference Shares	Rs.100/-each	Rs.100.000 Millions
	Total		Rs.334.943 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		334.943	334.943	315.318
2] Share Application Money		0.000	0.000	40.250
3] Reserves & Surplus		1091.711	586.621	496.453
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1426.654	921.564	852.021
LOAN FUNDS
1] Secured Loans		2937.925	2477.095	1978.337
2] Unsecured Loans		79.071	199.102	81.830
TOTAL BORROWING		3016.996	2676.197	2060.167
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4443.650	3597.761	2912.188
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3198.055	2995.011	2266.202
Capital work-in-progress		0.000	0.000	74.991
INVESTMENT		47.129	47.129	45.953
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1074.841	556.833	49.444
	Sundry Debtors	136.604	106.490	4.011
	Cash & Bank Balances	79.860	69.606	51.862
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	624.584	384.083	400.162
Total Current Assets		1915.889	1117.012	505.479
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	399.476	233.364	129.563
	Other Current Liabilities	316.073	328.888	50.321
	Provisions	4.149	1.983	0.195
Total Current Liabilities		719.698	564.235	180.079
Net Current Assets		1196.191	552.777	325.400
MISCELLANEOUS EXPENSES		2.275	2.844	199.642
TOTAL		4443.650	3597.761	2912.188

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2632.457	1345.830
		Other Income	8.198	2.278
		TOTAL (A)	2640.655	1348.108
Less	EXPENSES
		Consumption materials changes inventories	719.201	280.539
		Manufacturing service costs	1343.663	593.644
		Employee related expenses	49.077	39.492
		Administrative selling other expenses	86.651	72.546
		TOTAL (B)	2198.592	986.221
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		442.063	361.887
Less	FINANCIAL EXPENSES (D)		310.686	260.611
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		131.377	101.276	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		110.560	89.609
	PROFIT BEFORE TAX (E-F) (G)		20.817	11.667
Less	TAX (H)		4.149	1.983
	PROFIT AFTER TAX (G-H) (I)		16.668	9.684
	MAT Credit Entitlement		4.148	1.983
	BALANCE CARRIED TO THE B/S		32.251	11.667
	Earnings Per Share (Rs.)		0.71	0.45	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.63	0.72	NA
Net Profit Margin (PBT/Sales)	(%)	0.79	0.87	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.41	0.28	NA
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	NA
Debt Equity Ratio (Total Liability/Networth)		2.62	3.52	2.63
Current Ratio (Current Asset/Current Liability)		2.66	1.98	2.81

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 two years	Yes
12]	Profitability for last two 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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PROGRESS AND PROSPECT:

The Commercial Production of company has been started from 01.05.2010. During the financial year ended 31st March 2011 the company recorded revenues of Rs. 2632.457 Millions and its net profit after tax is Rs 16.668 Millions as against Rs. 9.684 Millions in the previous year

Bankers Charges Report as per Registry

Corporate identity number of the company	U21011DL2006PLC148926
Name of the company	BINDALS PAPERS MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Np, 151, B, Maurya Enclave, Pitam Pura, Delhi – 110088, India bindalgroup@gmail.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Stock)
Particular of charge holder	Allahabad Bank, 36A, New Mandi, Muzaffarnagar - 251001, Uttar Pradesh, India br.mee_muzaffarnagar@allahabadbank.in
Nature of instrument creating charge	Term loan agreement dated 21.04.2012
Date of instrument Creating the charge	21.04.2012
Amount secured by the charge	Rs.250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3% over Allahabad Bank's Base Rate (presently Base Rate 10.50%) p.a Terms of Repayment As per agreement Margin As per agreement Extent and Operation of the charge First pari-passu charge on the present and future fixed assets of the Company. And second pari-passu charge on the entire present and future current assets of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari-passu charge on the present and future fixed assets of the Company. Second pari-passu charge on the entire present and future current assets of the Company.

FIXED ASSETS

• Land and Site Development
• Plant and Machinery
• Building
• Misc Fixed Assets
• Office Equipment
• Vehicles
• Computer

AS PER WEBSITE

PROFILE

Subject is part of the highly dynamic and rapidly growing Bindal Group whose annual revenues exceed Rs.10 Billion(US $ 200 Million). The Group has a diversified Business Portfolio in Manufacturing of Packaging grades of paper and paperboards, tissue papers, iron and steel, besides trading of commodities the Group enjoys a strong Leadership position in the Kraft/ Liner board segment.

The Groups fundamental business philosophy is dictated by the ever growing needs of the customer for Quality products, backed by a robust Service Culture and competitive Costs. In each product category Bindals’ manufacturing facilities enjoy the highest operating efficiencies, thus resulting in more competitive cost structure. The surpluses generated by the Group are reinvested in the core paper business - thereby ensuring continuing growth and rising market share.

In this perspective Bindals’ identified a significant Investment opportunity in the high end Printing and Writing Paper sector by setting up a modern Greenfield plant in Muzaffarnagar ,Uttar Pradesh with a manufacturing capacity of 1,00,000 TPY. This is expected to generate incremental revenues (for the group) of over Rs.4000 million or around US$80 Million per year. More importantly, the Group will participate in the fast growing High Bright SS Maplitho Paper (uncoated woodfree paper) and Branded Copier Paper (cut-size) segments, making it a one-stop-shop paper group, enabling customers to source the widest range of papers and boards.

Subject, they have introduced a work culture that imbibes the best Values and Practices. This facilitates in providing customers value added services and more than that a unique experience. The objective is clearly to help customers maximise their productivity, minimise their costs and derive highest value addition in their end products. The technology installed is absolutely contemporary, in sync with the markets’ emerging requirements of high value, internationally competitive papers. Backing this is an excellent network of distributors who offer customised services and solutions and a workforce that is both talented and dedicated.

The Companys’ Sales and Marketing is headquartered in New Delhi which clearly results in closer and more personalised service, being in the heart of the countrys’ biggest and fastest growing market .In addition a regional marketing office in Mumbai will serve the needs of customers in Western India, while further offices are in the process of being set up. The Team of sales and marketing professionals has the right blend of experience and youth who will service the customers with utmost passion and humility.

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.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.