MIRA INFORM REPORT

Report Date :

14.12.2012

IDENTIFICATION DETAILS

Name :	APEX LABORATORIES PRIVATE LIMITED (w.e.f.08.04.2008)
Formerly Known As :	APEX LABORATORIES LIMITED
Registered Office :	38/76, C. P. Ramasamy Road, Alwarpet, Chennai - 600018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.07.1978
Com. Reg. No.:	18-007554
Capital Investment / Paid-up Capital :	Rs. 13.719 Millions
CIN No.: [Company Identification No.]	U85195TN1978PTC007554
PAN No.: [Permanent Account No.]	AAACA5174G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Pharmaceutical Formulations.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 1540000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track. There appears huge external borrowings recorded by the company which acts as a threat to its liquidity. However, trade relations are reported as fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some cautions.

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	Long term rating : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 06, 2012

Rating Agency Name	CRISIL
Rating	Short term rating : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 06, 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 :	38/76, C. P. Ramasamy Road, Alwarpet, Chennai - 600018, Tamilnadu, India
Tel. No.:	91-44-42225000
Fax No.:	91-44-42225005
E-Mail :	venkat@apexlab.com apexlabs@vsnl.com finance@apexlab.com
Website :	www.apexlab.com
Corporate Office :	SIDCO, Garment Complex, Guindy, Chennai - 600032, Tamilnadu, India
Tel. No.:	91-44-42225000
E-Mail :	info@apexlab.com

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Vanangamudi Sulur Subramaniam

Designation :

Managing director

Address :

No. 29, 4^th Road, VGP Layout, Injambakkam, Chennai – 600041, Tamilnadu, India

Date of Birth/Age :

03.04.1956

Date of Appointment :

03.02.1982

DIN No.:

00056717

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	U85195TN1978PTC007554	APEX LABORATORIES PRIVATE LIMITED	Managing director	03/02/1982	03/02/1982	Active	NO
2	U02411TZ1983PTC001293	SUBRAMANYA CHEMICALS COMPANY PRIVATE LIMITED	Director	06/06/1983	06/06/1983	Active	NO
3	U01119TN1996PTC036350	APEX AGRO PRODUCTS PRIVATE LIMITED	Director	30/06/1997	30/06/1997	Strike off	NO
4	U72200TN1999PTC041732	OLYMPUS PREMEDIA PRIVATE LIMITED	Director	13/01/1999	13/01/1999	Active	NO
5	U72200TN2000PLC045054	VANAN TECHNOLOGIES LIMITED	Director	30/05/2000	30/05/2000	Strike off	NO
6	L17121TN1983PLC027873	SHRI RENUGA TEXTILES LIMITED	Director	31/03/2003	31/03/2003	Active	NO
7	U51219TN2004PTC052412	AVTEC EXPORTS PRIVATE LIMITED	Director	28/01/2004	28/01/2004	Active	NO
8	U91990TN2004NPL053852	CHENNAI PHARMA INDUSTRIAL INFRASTRUCTURE UPGRADTAION COMPANY	Director	30/07/2004	30/07/2004	Active	NO
9	U80903TN2004PLC054957	FOCUS ACADEMY LIMITED	Director	17/12/2004	17/12/2004	Active	NO
10	U24230TN2007PTC065859	GREENMILK CONCEPTS INDIA PRIVATE LIMITED	Director	28/12/2007	28/12/2007	Strike off	NO
11	U24231TN2002PTC049892	VANAN PHARMA PRIVATE LIMITED	Director	15/09/2010	15/09/2010	Active	NO
12	U24100TZ2012PTC018461	STARCH BOND (INDIA) PRIVATE LIMITED	Director	30/09/2012	30/09/2012	Active	NO

Name :

Mr. Balakrishnan Ramalingam

Designation :

Director

Address :

‘VISVAAS’, Old No. 9, New no. 19, Singari Street, Mylapore, Chennai – 600004, Tamilnadu, India

Date of Birth/Age :

20.09.1950

Date of Appointment :

29.07.1978

DIN No.:

00056550

Name :

Mr. Karthik Veerabadran

Designation :

Director

Address :

New No. 10, Old No. 27, Parameshwari Nagar, 2^nd Streeet, Adyar, Chennai – 600020, Tamilnadu, India

Date of Birth/Age :

27.12.1949

Date of Appointment :

29.07.1978

DIN No.:

00799996

Name :

Mr. Sulur Rangasamy Thangavelu

Designation :

Director

Address :

No. 10, Panchayat Office Road, Sulur, Coimbatore – 641402, Tamilnadu, India

Date of Birth/Age :

18.11.1937

Date of Appointment :

03.09.1982

DIN No.:

02576585

Name :

Mr. Maletur Ramachandraiyer Swaminathan

Designation :

Director

Address :

Old No. 25, New No. 66, Southdher Street, Sulur Palladam, Coimbatore -641402, Tamilnadu, India

Date of Birth/Age :

12.08.1952

Date of Appointment :

03.09.1982

DIN No.:

02582810

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Veerabadran Karthik	6059
Ramalingam Balakrishnan	6059
S. S. Ponmudi	20875
S. S. Vanagamudi	102920
S. Thangavelu	134
M. R. Swaminathan	134
S. S. Bhanumathy	473
S. S. Kalaimani	473
S. Murali	66
Total	137193

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, Trader, Exporter and Importer of Pharmaceutical Formulations.
Products :	Ø Multivitamins Ø Zincovit Tablets Ø Zincovit Syrup Ø Zincovit Drops Ø Haematinics Ø Zincofer Nuture Ø Zincofer Tablets Ø Zincofer Syrups Ø Trifer Tablets Ø Trifer Syrup Ø Trifer Drops Ø Cartivit Tables Ø Lozee Ø Betzeee Ø Ascazin Ø Herbal

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tablets	Nos.	Not Applicable	975000000	476856046
Capsules	Nos.	Not Applicable	94800000	22288718
Oral Liquids	Nos.	Not Applicable	10500000	22941663
Topicals	Nos.	Not Applicable	7500000	6116215

Notes: Installed capacities are as certified by Management and have not been verified by the auditors as this a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Bank of India, Cathedral Road Branch, 46 Cathedral Road, Madras – 600086, Tamilnadu, India

Ø State Bank of India, Overseas Branch, No. 86, Rajaji Salai, Chennai - 600001, Tamilnadu, India

Ø Standard Chartered Bank, 19, Rajaji Salai, Chennai – 600001, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans bank secured	183.871	175.829
Working capital loans bank secured	514.609	258.753
Loans taken for vehicles secured	9.027	10.828
Total	707.507	445.410

Banking Relations :	--
Auditors :
Name :	TD Jain and DI Sakaria Chartered Accountants
Related Parties :	Ø AV Tech Exports Private Limited Ø Apex Exports Private Limited Ø ARLAB India Private Limited Ø Vanan Technologies Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs. 100/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
137,193	Equity Shares	Rs. 100/- each	Rs. 13.719 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		13.719	13.719	13.719
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		370.569	274.583	242.460
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		384.288	288.302	256.179
LOAN FUNDS
1] Secured Loans		707.507	445.410	401.889
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		707.507	445.410	401.889
DEFERRED TAX LIABILITIES		66.946	47.248	42.826
TOTAL		1158.741	780.960	700.894
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		551.629	464.399	429.452
Capital work-in-progress		12.002	2.487	35.073
INVESTMENT		92.787	0.187	0.176
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	149.033	160.286	222.841
	Sundry Debtors	99.215	41.714	33.562
	Cash & Bank Balances	203.741	138.675	86.622
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	384.015	201.881	134.414
Total Current Assets		836.004	542.556	477.439
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	87.652	111.058	203.790
	Other Current Liabilities	201.635	85.192	20.290
	Provisions	44.394	32.419	17.166
Total Current Liabilities		333.681	228.669	241.246
Net Current Assets		502.323	313.887	236.193
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1158.741	780.960	700.894

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover		1685.566	1540.144
		Other Income		N.A.	N.A.
		TOTAL	N.A.	N.A.	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	1594.604	1292.432
	PROFIT BEFORE TAX		N.A.	105.918	111.208
Less	TAX		N.A.	41.694	45.663
	PROFIT AFTER TAX		N.A.	64.224	65.545
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	51.097	37.411	22.178
	IMPORTS
		Raw Materials	8.069	3.042	7.640
		Capital Goods	33.221	11.099	16.296
		Others	0.487	0.770	1.232
	TOTAL IMPORTS		41.777	14.911	25.168
	Earnings Per Share (Rs.)		874.55	468.13	477.75

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	N.A.	6.28	7.22
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	10.52	12.26
Return on Investment (ROI) (PBT/Networth)		N.A.	0.37	0.43
Debt Equity Ratio (Total Liability/Networth)		2.71	2.34	2.51
Current Ratio (Current Asset/Current Liability)		2.51	2.37	1.98

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	No
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U85195TN1978PTC007554
Name of the company	APEX LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	38/76, C. P. Ramasamy Road, Alwarpet, Chennai - 600018, Tamilnadu, India Email: venkat@apexlab.com
This form is for	Modification of charge
Charge identification number of the modified	10279094
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Standard Chartered Bank, 19, Rajaji Salai, Chennai – 600001, Tamilnadu, India Email: Ramachandran.Nagasubramanian@sc.com
Nature of description of the instrument creating or modifying the charge	Memorandum of entry for deposit of title deeds
Date of instrument Creating the charge	13.06.2012
Amount secured by the charge	Rs. 100.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The interest rate shall comprise of the Base Rate plus margin (as may be agreed with the Bank from time to time). Terms of Repayment Tenor (maximum): Import invoice financing- 120 days Pre-shipment financing under export orders -180 days Export invoice financing-100 days Short term loans-90 days Overdraft- 1 day Import letters of credit-180 days Bond & Guarantees-12 months Maturity period (for all facilities): 31 October 2012 Margin As may be agreed from bank time to time. Extent and Operation of the charge 1. First hypothecation charge on all movable fixed assets, stocks and book debts both present and future. 2. Exclusive equitable mortgage charge on immovable property located at VGP Golden Beach Layout Others Facility: Import invoice financing - Rs.100.000 Millions Sub-limits: 1. Pre-shipment financing under export orders (INR/FC) - Rs.100.000 Millions 2. Export invoice financing (INR/FC) - Rs.100.000 Millions 3. Short term loan - Rs.30.000 Millions 4. Overdraft - Rs.30.000 Millions 5. Import letter of credit - Rs.40.000 Millions 6. Bonds & Guarantees - Rs.40.000 Millions
Short particulars of the property charged	Movable properties including movable plant and machinery, furniture, fittings, equipment, computer hardware / software, machinery spares, tools, accessories and other movables, present and future Stock in trade consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise being movable properties, present and future. Book debts, outstandings moneys receivable, claims and bills, due and owing in the course of business, present and future Location: 1. Movable fixed assets - all locations 2. Stock in trade - Factory / premises including at SIDCO Garment Complex, III Floor, Guindy, Chennai - 600032 and other places 7500 square feet land with 4000 square feet building in ground and first floors at VGP Golden Beach Layout, Part III, S.No.15/1C, Old No.146, New No. 49, Injambakkam Village, Chennai-600041
Particulars of the present modification	Working capital credit facilities for INR 100.000 Millions, extended by Standard Chartered Bank , additionally secured by exclusive equitable mortgage of immovable property at VGP Golden Beach.

CONTINGENT LIABILITIES:

a) Guarantees issued by company’s bankers Rs. Nil (P.Y. Rs. 2.063 Millions)

b) Guarantees given to the bank for Term Loan facilities availed by Vanan Pharma Private Limited Rs. 28.000 Millions (P.Y. Rs. 28.000 Millions)

c) Letter of credit Rs. 13.172 Millions (Rs. Nil)

d) Estimated value of contracts remaining to be executed on capital account and not provided for Rs. 26.516 Millions (P.Y. Rs. 4.204 Millions)

e) Disputed statutory claims/ levies including those pending with Commissioner (Appeals)/ Court (excluding interest leviable, if any)

FIXED ASSETS

Ø Land

Ø Building

Ø Building – Guest House

Ø Building – Office – Guindy

Ø Building – Stores

Ø Plant and Machinery

Ø Lab Equipments

Ø Furniture and Fixtures

Ø Vehicles

Ø Computer

Ø Computer Software

Ø Trade Mark

Ø Patents

Ø Office Equipments

Ø Temporary Partition

Ø Utilities

Ø Electrical Fittings and Generator

WEBSITE DETAILS

PROFILE

Started in 1978, Apex Laboratories has been under the able leadership of Mr. S.S.Vanangamudi who is heading the company as the Managing Director.

The company is a pioneer in the introduction of Zinc based formulations in India and continues to be the brand leader in the Multivitamin Mineral Supplements segment. The company's growth is powered by its focus on manufacture and supply of quality products, formidable sales and marketing strength, 100% ethical marketing, growing market acceptance of the products and continued patronage by the medical fraternity.

With humble beginnings and 3 decades of growth history, the company today boasts of a formidable people strength of over 1200, strong manufacturing capability with continuous technology improvement, all-India market presence in branded formulations, excellent distribution network, and successful foray into herbal products. The company is ranked among the top 50 fastest growing pharmaceutical companies in India by ORG-IMS.

With a range of products in various segments, apex is proud of quite a few brand leaders in India, The company has also recorded phenomenal growth in the last 10 years. Currently with a turnover of USD 55 million, the company has ambitious plans to achieve USD 125 million (INR 5000.000 Millions) by 2015. by leveraging our manufacturing strength, increased presence in overseas markets including regulated markets countries, new product launches and focus on R & D for developing innovative products to the global market.

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 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. 54.23
UK Pound	1	Rs. 87.53
Euro	1	Rs. 70.94

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		32

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.