MIRA INFORM REPORT

Report Date :

31.08.2012

IDENTIFICATION DETAILS

Name :	RAHIL AIRBUBBLES PRIVATE LIMITED
Registered Office :	Survey No. 34, Plot No. 5/6, Veraval Shapar, Rajkot – 360002, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.07.2005
Com. Reg. No.:	04-046409
Capital Investment / Paid-up Capital :	Rs. 20.000 Millions
CIN No.: [Company Identification No.]	U25200GJ2005PTC046409
TAN No.: [Tax Deduction & Collection Account No.]	RKTR01649E
PAN No.: [Permanent Account No.]	AADCR0455Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of EPS Sheet, EPC ICE Box, etc.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial strength of the company seems to be improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

INFORMATION PARTED BY

Name :	Mr. Ravi Kagathara
Designation :	Director
Contact No.:	91-9099655055
Date :	30.08.2012

LOCATIONS

Registered Office :	Survey No. 34, Plot No. 5/6, Veraval Shapar, Rajkot – 360002, Gujarat, India
Tel. No.:	Not Available
Mobile No. :	91-9099655055 (Mr. Ravi)
Fax No.:	Not Available
E-Mail :	info@rhynofoam.com vibha.vaibhav@gmail.com rajesh_joshi_k@yahoo.co.in
Website :	www.rhynofoam.com
Factory :	Survey No. 34, Plot No. 2-B, N.H.8-B, Shapar (Veraval), Rajkot – 360002, Gujarat, India
Tel. No.:	91-2827-254443/ 253804/ 05
Fax No.:	91-2827-254443
E-Mail :	airbubble@rhynofoam.com
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Lalitbhai Karamshibhai Kagathara

Designation :

Director

Address :

Karam Paras Society, Nirmala Convent Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

01.08.1957

Date of Appointment :

12.07.2005

Voter ID :

KJF3048766

DIN No.:

00430652

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	Company/ LLP Status	Defaulting status
1	U15400GJ1993PTC018925	RAHIL FOAM PRIVATE LIMITED	Director	09/09/2003	09/09/2003	Active	NO
2	U25200GJ2005PTC046409	RAHIL AIRBUBBLES PRIVATE LIMITED	Director	12/07/2005	12/07/2005	Active	NO
3	U25202GJ2006PTC048958	KARAM MULTIPACK PRIVATE LIMITED	Additional director	19/04/2011	19/04/2011	Active	NO
4	U24100GJ2011PTC067372	LKK PETROCHEM PRIVATE LIMITED	Director	07/10/2011	07/10/2011	Active	NO

Name :

Mr. Ravi Lalitbhai Kagathara

Designation :

Additional director

Address :

Karam Paras Society, Nirmala Convent Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

13.12.1985

Date of Appointment :

24.06.2008

Voter ID :

KJF4559241

DIN No.:

02230845

Name :

Mr. Mayur Maganbhai Kagathara

Designation :

Additional director

Address :

At Depalia Taluka Paddhari, Rajkot – 360310, Gujarat, India

Date of Birth/Age :

16.09.1982

Date of Appointment :

24.06.2008

Voter ID :

KJF4559019

DIN No.:

02230846

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	Company/ LLP Status	Defaulting status
1	U25200GJ2005PTC046409	RAHIL AIRBUBBLES PRIVATE LIMITED	Additional director	24/06/2008	24/06/2008	Active	NO
2	U74946GJ1993PTC020310	FAST CLOUR LAB PRIVATE LIMITED	Director	01/10/2010	11/06/2010	Active	NO

Name :

Sitanshu Rameshchandra Bhalodi

Designation :

Additional director

Address :

Urmi Ravi Ratna Chowk, Near Prarthana Apartment, University Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

27.02.1979

Date of Appointment :

24.06.2008

DIN No.:

02234855

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Kagathara Lalitbhai	177500
Kagathara Amaram Chhagan Bhai	4900
Bhesdadiya Ambhai Chaga Bhai	4900
Godhani Arvind Bhai	10000
Bhagiya Chhagan Bhai	14700
Kagathara Devkaran Bhai	90000
Kagathara Devkaran Bhai Becharbhai	4900
Gosara Dhanji Bhai	9800
Kagathara Dineshbhai	14700
Kagathara Hansraj Bhai	65000
Patel Haribhai	50000
Bhalodi Arvindbhai	40000
Kagathara Ilaben	20000
Kagathara Karamsi Bhai	105000
Khared Karsanbhai	50000
Kagathara Keshavji Bhai	80000
Dedhi Khimjibhai	9800
Kagathara Kiranbhai	30000
Kagathara Ladhavjibhai	21950
Bhensdadia Lilaben	4900
Kagathara Magan Bhai	100000
Viramgama Mansukhbhai	4900
Gosara Nareshbhai	9800
Bhalodi Rameshbhai	41500
Kagathara Rasikbhai	20000
Kagathara Ravikumar	30000
Kagathara Sanat	30000
Godhani Sarojben	40000
Kagathara Savjibhai	30000
Dedhi Tapulal	9800
Godhani Vallabh Bhai	20000
Viramgama Vasantbhai	1200
Kagathara Veljibhai	65000
Kagathara Vishal	80000
Kamariya Nanjibhai	100000
Bhadeshiya Ashwinbhai	4900
Bhalodi Vimalbhai	20000
Bhalodi Sitanshu	20000
Bhalodi Kimji Bhai	44850
Khared Jayaben	10000
Bhalodi Anjuben	10000
Total	1500000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of EPS Sheet, EPC ICE Box, etc.
Exports :
Products :	Ø EPS Sheet Ø EPC ICE Box etc.
Countries :	ü Africa ü Malaysia ü USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Air Bubble Rolls	Mtrs.	NA	NA	3261459
Non Woven Fabrics	Kgs.	NA	NA	1557532
Non Woven Bags	Kgs.	NA	NA	375259

Note : Installed capacity is as not applicable as the Company is an S.S.I. Unit.

GENERAL INFORMATION

Suppliers :

Poodar Pigment Limited

Customers :

End Users

Ø Aakansha Packaging

No. of Employees :

30 (Approximately)

Bankers :

Bank of India, Panchnath Branch, Opposite Jansatta Press, Sadar, Rajkot – 360001, Gujarat, India

Facilities :

CC – Rs. 45.000 Millions

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Kotak Mahindra Prime Limited (secured against hypothecation of car)	0.594	0.920
From Bank of India (secured against hypothecation of plant and machineries and equitable mortgage of Factory Land and Building)	30.419	32.154
Working Capital Loan: From Bank of India (secured against hypothecation of current assets and equitable mortgage of Factory Land and Building)	51.918	34.152
Total	82.931	67.226
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	0.473	2.653
From Shareholders	7.484	19.090
Intercorporate	0.000	0.000
Total	7.957	21.743

Banking Relations :	--
Financial Institution :	Kotak Mahindra Prime Limited
Auditors :
Name :	R. K. Doshi and Company Chartered Accountants
Address :	Aditya Centre, 2nd Floor, Opposite Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2448970/ 2447642
Fax No.:	91-281-2476118
E-Mail :	ca@rkdoshi.com
Income-tax PAN of auditor or auditor's firm :	AAIFR8841C

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Share	Rs.10/- each	Rs. 15.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Share	Rs.10/- each	Rs. 20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.316	0.508	0.000
4] (Accumulated Losses)		0.000	0.000	(2.032)
NETWORTH		27.316	20.508	17.968
LOAN FUNDS
1] Secured Loans		82.931	67.226	66.632
2] Unsecured Loans		7.957	21.743	11.368
TOTAL BORROWING		90.888	88.969	78.000
DEFERRED TAX LIABILITIES		1.876	1.511	0.732
TOTAL		120.080	110.988	96.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		79.267	69.793	54.211
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.880	14.613	10.598
	Sundry Debtors	26.420	21.858	21.401
	Cash & Bank Balances	0.514	0.602	1.048
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.362	13.291	13.631
Total Current Assets		54.176	50.364	46.678
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.962	7.268	3.906
	Other Current Liabilities	1.791	0.768	0.358
	Provisions	2.610	1.641	0.938
Total Current Liabilities		13.363	9.677	5.202
Net Current Assets		40.813	40.687	41.476
MISCELLANEOUS EXPENSES		0.000	0.508	1.013
TOTAL		120.080	110.988	96.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		144.329	118.399
		Other Income		1.405	2.368
		TOTAL (A)	202.315	145.734	120.767
Less	EXPENSES
		Increase/ Decrease in Stock		(5.656)	6.306
		Manufacturing Expenses		128.595	89.598
		Selling, Administrative and Other Expenses		2.935	3.289
		Payments and Benefits to Employees and Directors		4.043	3.795
		TOTAL (B)	175.687	129.917	102.988
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.628	15.817	17.779
Less	FINANCIAL EXPENSES (D)		9.359	8.693	9.725
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.269	7.124	8.054
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.295	3.101	2.891
	PROFIT BEFORE TAX (E-F) (G)		8.974	4.023	5.163
Less	TAX (H)		2.166	1.483	1.325
	PROFIT AFTER TAX (G-H) (I)		6.808	2.540	3.838
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.508	(2.032)	(5.870)
	BALANCE CARRIED TO THE B/S		7.316	0.508	(2.032)
	EARNINGS IN FOREIGN CURRENCY
		F. O. B value of Export	0.000	0.773	0.000
	Earnings Per Share (Rs.)		3.40	1.27	1.92

Particulars	31.03.2012
Sales Turnover (Approximately)	230.000

Expected Sales ( 2012-2013 ) : Rs. 250.000 Millions

The above information has been parted by Mr. Ravi Kagathara (Director)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.37	1.74	3.18
Net Profit Margin (PBT/Sales)	(%)	N.A.	2.79	4.36
Return on Total Assets (PBT/Total Assets}	(%)	6.72	3.35	5.12
Return on Investment (ROI) (PBT/Networth)		0.33	0.20	0.29
Debt Equity Ratio (Total Liability/Networth)		3.82	4.81	4.63
Current Ratio (Current Asset/Current Liability)		4.05	5.20	8.97

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
34]	External Agency Rating, if available	No

FUTURE OUTLOOK AND PROSPECTS:

The products manufactured by the company are well received in the market.

During the year turnover of the company has increased to Rs. 202.315 Millions from Rs. 145.734 Millions in the previous year. Barring unforeseen circumstances the directors are hopeful of a better performance in the next year.

TRADE REFERENCES:

Ø Aakansha Packaging

Ø Poodar Pigment Limited

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25200GJ2005PTC046409
Name of the company	RAHIL AIRBUBBLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No 34 Plot No 5/6 Veraval Shapar, Rajkot - 360002, Gujarat, India
This form is for	Modification of charge
Charge identification number of the modified	80035180
Type of charge	Immovable Property Book Debts Movable Property Others (Form is for updating the details of sub-limits)
Particular of charge holder	Bank of India, Panchnath Branch, Opposite Jansatta Press, Sadar, Rajkot – 360001, Gujarat, India Email ID: panchnath.rajkot@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Bank's letter no. Pnt/adv/11-12/355 dt. 23-03-2012
Date of instrument Creating the charge	23.03.2012
Amount secured by the charge	Rs. 89.068 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3.50% over base rate i.e.12% p.a. Terms of Repayment Cash credit repayable on demand Old term loan repayable in 60 emi of Rs. 0.193 Million commencing from April, 2010. New term loan of Rs. 12.800 Millions repayable in 60 emi of Rs. 0.295 Million commencing from April, 2011. Margin C. C. (stock) - 25% C. C. (Book Debts) - 40% Old Term Loan -25% New Term Loan - 26.40% Extent and Operation of the charge Charge to secure advances of Rs. 89.068 Millions Charge to act as continuing security. Mortgage also covers personal loan of Rs. 2.000 Millions. Others Mortgage also covers personal loan of Rs. 2.000 Millions.
Short particulars of the property charged	All tangible movable assets including stock of raw materials i.e. Ldpe, lldpe, polypropylene polymers etc., movable machinery, stores and spare parts, furniture, finished and semi finished goods. All present and future book debts, money receivables, claims. Machineries described in schedule ii, part a to the hypothecation deed. Extension of equitable mortgage of factory land, building and immovable properties situated at Plot No. 5 and 6, Shapar (Veraval), Rajkot. Equitable mortgage of factory land, building and immovable properties situated at Plot No. 10, Survey No. 34(p) Adm. 1427.02 sq. mtrs. at nh8b, Shapar (Veraval), Rajkot. Equitable mortgage of personal, residential properties of Smt. Ilaben Kagathra, shri Devkaranbhai K. Kagathra and Shri Vallabhbhai Godhani as per the mortgage deed.
Date of latest modification prior to the present modification	18.11.2010
Particulars of the present modification	Aggregate advances stand at Rs. 89.068 Millions. (1. Cc - stock limit enhanced from Rs. 20.000 Millions to Rs. 35.000 Millions and 2. Cc - book debts limit enhanced from Rs. 17.500 Millions to Rs. 35.000 Millions, subject to maximum of 1 and 2 at Rs. 50.000 Millions. Old term loans Rs.26.268 Millions, new term loan Rs. 12.800 Millions, aggregating to Rs. 89.068 Millions). Advances are further secured by mortgage of the additional properties as per the mortgage deed. Form is filed to update the details of sub-limits.

FIXED ASSETS

· Land

· Factory Land –Shed (New)

· Electric Fitting Exp.

· Factory Building

· Factory Building (New) – WIP

· Computer

· Office Equipment

· Plant and Machinery

· Imported Machinery

· Weighing Machine

· Air conditioner

· Car

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. 55.65
UK Pound	1	Rs. 88.10
Euro	1	Rs. 69.84

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		36

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.