MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	LABORATE PHARMACEUTICALS INDIA LIMITED
Registered Office :	E-11, Industrial Area, Panipat – 132103, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.02.1990
Com. Reg. No.:	05-030835
Capital Investment / Paid-up Capital :	Rs.43.367 Millions
CIN No.: [Company Identification No.]	U24239HR1990PLC030835
TAN No.: [Tax Deduction & Collection Account No.]	RTKL00914E
PAN No.: [Permanent Account No.]	AAACL2998K AAAFD9209L
Legal Form :	Closely held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Pharmaceutical Formulations
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. The latest financial is missing from government department. However, general financial position is good. Creditworth of the company is good. Performance capacity seems to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	CASH CREDIT : CRISIL BBB+
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	November 2012

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/ Factory 1 :	E-11, Industrial Area, Panipat – 132103, Haryana, India
Tel. No.:	91-180-2650072/2651248/2650385/2655741/2655742/4092200
Fax No.:	91-180-2651072
E-Mail :	ajaybhatia@laborate.com laborate02@hotmail.com pvsca@rediffmail.com dkgc2004@yahoo.com laborate@laborate.com laborate@palcom.net
Website :	http://www.laborate.com
Location :	Owned
Admin Office :	Plot No.31, Industrial Area, Nariwal Paonta Sahib, Himachal Pradesh, India
Factory 2 :	51, Industrial Area, Goandpur, Poanta Sahib, Himachal Pradesh, India
Mobile No.:	91-9816035069/ 9816045069
Fax No.:	91-1704-225069
Branch Office :	E-22, Industrial Area, Panipat – 132103, Haryana, India

DIRECTORS

As on 22.09.2012

Name :	Mr. Ajay Bhatia
Designation :	Whole-time Director
Address :	584, Model Town, Panipat – 132103, Haryana, India
Date of Appointment :	16.04.1990
PAN No.:	ABQPB8284J
DIN No.:	00038833

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	U24239HR1990PLC030835	LABORATE PHARMACEUTICALS INDIA LIMITED	Whole-time director	01/04/2008	16/04/1990	Active	NO
2	U29297DL2007PTC160681	ZYPHER LIFESCIENCES PRIVATE LIMITED	Director	19/03/2007	19/03/2007	Active	NO

Name :	Mr. Aditya Bhatia
Address :	197, Model Town, Panipat – 132103, Haryana, India
Designation :	Whole-time Director
Date of Appointment :	01.04.2004
PAN No.:	ADRPB0106A
DIN No.:	00038893

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	U24239HR1990PLC030835	LABORATE PHARMACEUTICALS INDIA LIMITED	Whole-time director	01/04/2008	01/04/2004	Active	NO
2	U29297DL2007PTC160681	ZYPHER LIFESCIENCES PRIVATE LIMITED	Director	19/03/2007	19/03/2007	Active	NO

Name :	Mr. Sanjay Bhatia
Designation :	Director
Address :	584, Model Town, Panipat – 132103, Haryana, India
Date of Appointment :	16.04.1990
PAN No.:	ABQPB8286L
DIN No.:	00189247
Name :	Mrs. Anita Bhatia
Designation :	Director
Address :	197, Model Town, Panipat – 132103, Haryana, India
Date of Appointment :	01.04.2005
PAN No.:	ADAPB0176H
DIN No.:	00038907

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2012

Names of Shareholders	No. of Shares
Ajay Bhatia	585390
Sanjay Bhatia	656240
Anita Bhatia	562276
Alka Bhatia	270790
Aditya Bhatia	1086072
Sanjeev Bhatia (HUF)	520000
Nutan Bhatia	181350
Kanta Bhatia	201604
Parag Bhatia	180362
Garima Bhatia	92612
Total	4336696

As on 22.09.2012

Equity share breakup
Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of Pharmaceutical Formulations
Products :	Pharmaceuticals

PRODUCTION STATUS

As on 31.03.2010

Particulars	Licensed Capacity	Installed Capacity (Quantity in dosage units in lacs on three shifts basis
Tablets	Not Applicable	57000
Capsules	Not Applicable	12600
Ointment	Not Applicable	1000
Injectables	Not Applicable	2915
Eye/ear drops	Not Applicable	1700
Oral Syrup	Not Applicable	720

GENERAL INFORMATION

Bankers :

• Bank of India, G T Road, Panipat – 132101, Haryana, India
• Punjab National Bank, IBB Branch, G.T. Road, Panipat-132103, Haryana, India
• State Bank of India, Taruwala (H.P.)
• HDFC Bank

Facilities :

Secured Loan	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Rupee term loans from banks	63.658	77.812
Working capital loans from banks	402.857	260.769
Total	466.515	338.581
Notes: (A) Cash credit facilities availed from Punjab National Bank, International Banking Branch, Panipat are secured by hypothecation of inventories and book debts. Company’s immovable properties form part of the collateral security and the directors has given their personal guarantee for the same. (B) Term Loan facility availed from Punjab National Bank, International Banking Branch, Panipat is secured against Plant and machinery and the directors have given their personal guarantee for the same. (C) Loans from HDFC Bank Panipat are secured against cars and personal guarantee of the directors.
Unsecured Loan	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
From directors	55.764	49.425
Other Debts	94.613	56.829
Total	150.377	106.254
Notes : Loans from directors are the amount brought by promoters to fulfill the obligation for financial institution/bank and other unsecured debts included the security deposits from distributors of products of the company.

Banking Relations :	--
Auditors :
Name :	Vinod Bhatia and Company Chartered Accountants
Address :	Green House, Opposite Sector-25, G. T. Road, Panipat-132103, Haryana, India
Tel. No.:	91-180-2663800/ 2664800
PAN No.:	AAEPB3230B

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- Each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4336696	Equity Share	Rs.10/- Each	Rs.43.367 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		43.367	16.680	6.164
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		521.236	483.893	385.028
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		564.603	500.573	391.192
LOAN FUNDS
1] Secured Loans		466.515	338.581	171.397
2] Unsecured Loans		150.377	106.254	48.616
TOTAL BORROWING		616.892	444.835	220.013
DEFERRED TAX LIABILITIES		3.761	2.948	0.000
TOTAL		1185.256	948.356	611.205
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		343.710	330.158	133.575
Capital work-in-progress		0.000	0.000	1.890
Expenditure pending allocation		4.884	1.146	0.000
INVESTMENT		0.200	0.200	0.200
DEFERREX TAX ASSETS		0.000	0.000	1.084
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	895.922	757.585	590.037
	Sundry Debtors	571.171	381.230	384.388
	Cash & Bank Balances	13.870	20.535	25.072
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	64.546	47.219	38.817
Total Current Assets		1545.509	1206.569	1038.314
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	663.108	557.417	495.742
	Other Current Liabilities	11.132	12.819	46.854
	Provisions	35.929	21.029	21.542
Total Current Liabilities		710.169	591.265	564.138
Net Current Assets		835.340	615.304	474.176
MISCELLANEOUS EXPENSES		1.122	1.548	0.280
TOTAL		1185.256	948.356	611.205

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2139.981	1874.814	1739.651
		Other Income	28.048	59.072	13.657
		TOTAL	2168.029	1933.886	1753.308
Less	EXPENSES
		Consumption materials changes inventories	1602.379	1449.697	1582.168
		Manufacturing service costs	66.255	46.471
		Employee related expenses	79.264	65.969
		Administrative selling other expenses	218.011	186.406
		TOTAL	1965.909	1748.543	1582.168
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		202.120	185.343	171.140
Less	FINANCIAL EXPENSES		59.914	30.857	25.746
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		142.206	154.486	145.394
Less/ Add	DEPRECIATION/ AMORTISATION		41.655	19.339	19.305
	PROFIT BEFORE TAX		100.551	135.147	126.089
Less	TAX		20.960	27.255	15.624
	PROFIT AFTER TAX		79.591	107.892	110.465
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		437.365	357.850	272.680
	APPROPRIATIONS		45.560	28.377	25.295
	BALANCE CARRIED TO THE B/S		471.396	437.365	357.850
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	425.030	418.857
	TOTAL EARNINGS		NA	425.030	418.857
	IMPORTS
		Raw Materials	NA	10.315	36.369
		Plant and Machinery	NA	1.059	0.000
	TOTAL IMPORTS		NA	11.374	36.369
	Earnings Per Share (Rs.)		18.35	64.69	179.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.67	5.75	6.30
Net Profit Margin (PBT/Sales)	(%)	4.70	7.21	7.25
Return on Total Assets (PBT/Total Assets}	(%)	5.32	8.79	10.76
Return on Investment (ROI) (PBT/Networth)		0.18	0.27	0.32
Debt Equity Ratio (Total Liability/Networth)		2.35	2.07	2.00
Current Ratio (Current Asset/Current Liability)		2.18	2.04	1.84

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	No
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]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009
Bank/Counter Guarantees in favour of tender floating authorities, Revenue Departments and Indian Government Departments	3.019	1.703
Bank Guarantee in favour of Foreign Governments	USD 40100.00	USD 43837.00
Letters of Credit on favour of Foreign Suppliers	0.000	USD 423500.00

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24239HR1990PLC030835
Name of the company	LABORATE PHARMACEUTICALS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	E-11, Industrial Area, Panipat – 132103, Haryana, India E-mail Id : dkgc2004@yahoo.com
This form is for	Modification of charge
	80025558
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (all types of stocks)
Particular of charge holder	Punjab National Bank, IBB Branch, G.T. Road, Panipat-132103, Haryana, India E-mail Id : bbajajcs@gmail.com
Nature of description of the instrument creating or modifying the charge	Hypothecation of goods and book debts to secure cash credit facility Packing credit agreement Letter of continuity
Date of instrument Creating the charge	11.05.2011
Amount secured by the charge	Rs.226.700 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 10% + 2% +2% p.a. with monthly rests subject to change from time to time as per bank's/ RBI guidelines Terms of Repayment Repayable on demand Margin 25% Extent and Operation of the charge First and exclusive charge on movable and immovable properties of the company
Short particulars of the property charged	All kind of stocks, book debts & movable assets, eqt mortgage of land & building measuring -623 sq. yards at E-22, Industrial Area Panipat, RTD-5287/1 dt 09.11.2000 Land & building -measuring 4257.76 sq. yards at 51, Industrial Area At Gondapur Ponta Sahib, Haryana, India RTD849/1 dt 07.07.2004. Hypothecation of all unencumbered movable assets purchased or to be purchased
Particulars of the present modification	Fund Based- Cash Credit Facility Rs.205.000 Millions. Non Fund Based- LC(DP/DA)-Rs.20.000 Millions LG/FLG-Rs.5.000 Millions Non Fund Base Ceiling Rs. 20.000 Millions Existing Term Loan Of Rs.1.700 Millions Total Exposure To The Company Is Rs. 226.700 Millions Aggregate Exposure to Unit-I And Unit-II (A Sole Prop. Concern of M/S Laborate Pharmceuticals India Limited)= Rs.368.400 Millions

FIXED ASSETS:

• Freehold Land
• Leasehold Land
• Godown Building
• Factory Building
• Computer
• Scooter
• Furniture and Fixture
• Car
• Office Equipments
• Generator Set
• Mobile Phones
• Plant and Machinery
• Misc. Factory Equipment
• Truck

AS PER WEB DETAILS:

PROFILE:

Subject is one of the fastest growing pharmaceutical companies in India since 1985 as manufacturers and exporters of pharmaceutical formulation. They are privileged to have been the physician's and chemist's trusted aide for over 24 years.

Subject is Certificated by 

· Joint accreditation System of Australia and New Zealand.

· World Health Organization-Good manufacturing

Subject successfully develop and market innovative products that improve, enhance and extend human life; and they pride ourselves on delivering total quality products at an affordable price.

Their products are well established and accepted by medical professionals and end users alike in Indian and International Markets.

Subject's dosage forms include

· Injections (Beta Lactum /Non Beta Lactum)

· Ophthalmic Preparations

· Tablets (Beta Lactum /Non Beta Lactum)

· Capsules (Beta Lactum /Non Beta Lactum)

· Dry Syrups (Beta Lactum /Non Beta Lactum)

· Liquid Syrups

· Topical Preparations

Subject not only believes in products quality but in providing right first-time, cost effective, speedy and reliable delivery requirement.

Subject is committed to achieving its vision and mission of becoming an innovation led transnational pharmaceutical company

Subject bags 3 hattrick awards presented by ICICI BANK LIMITED & CNBC TV 18 and CRISIL LIMITED and INSTITUTE of ECONOMICS STUDIES.

MILESTONES

1985	Foundation stone for Mfg. facility at Panipat
1985 - 1988	Served the Domestic market only
1989	First formulation export to Germany commences.
1991	Formulation export to Belgium.
1994	Started contract manufacturing for Pharma majors like Medrel, Helm, Troge etc
1996	Onward started exports to Congo, Nigeria, Ghana, Kenya, Uganda, Tanzania and other African Countries
1998	Launched Operations in Indian Generic Market
2002	ISO 9001 Certified Facility WHO GMP
2004	MOH SRILANKA Approved
2005	State of the art manufacturing plant for Liquid Injectable, Dry Injections, Opthalmics, Tablets, Capsules, External Preparations in the Valley of Paonta Sahib, Himachal Pradesh.
2006-07	Ranked at First position in IPM as best value Growth Company. · Ranked 49th amongst top 50 companies in India. · Recorded 25% growth in total sales.
2008	Plant for Ayurvedic Drugs and Cosmetics.
2009	Ponta sahib plant is acclimated with who GMP New production facilities as per US FDA standards at nari wala ponta sahib for liquid injections, capsules, tablets, ointment, dry injection, eye drops, and ear drops

AWARDS

EMERGING INDIA AWARD

2ND RUNNER UP received at London 

Jointly conferred by- ICICI BANK LIMITED AND CNBC TV 18 and CRISIL LIMITED

UDYOG RATTAN AWARD

For outstanding contribution in industrial development of the country

Presented by- institute of economic studies (IES)

EXCELLENCE AWARD

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 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 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.54.95
UK Pound	1	Rs.88.42
Euro	1	Rs.71.71

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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.