MIRA INFORM REPORT

Report Date :

26.12.2012

IDENTIFICATION DETAILS

Name :	EMERSON PROCESS MANAGEMENT (INDIA) PRIVATE LIMITED (w.e.f. 21.03.2002)
Formerly Known As :	ROSEMOUNT (INDIA) LIMITED
Registered Office :	“Delphi” – B Wing, 601 And 602, 6^th Floor, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.03.1981
Com. Reg. No.:	11-024115
Capital Investment / Paid-up Capital :	Rs.9.000 millions
CIN No.: [Company Identification No.]	U29196MH1981PTC024115
TAN No.: [Tax Deduction & Collection Account No.]	MUMF00669E
PAN No.: [Permanent Account No.]	AAACF1667M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Process Control Instruments, Distributed Control Systems and related services
No. of Employees :	550 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 4300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having fine track record. There appears some continues dip in the profitability of the company from last two years of operation. However, networth of the company appears to be strong. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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.

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. Karan Gadre
Designation :	Finance Head
Contact No.:	91-22-6662055
Date :	24.12.2012

LOCATIONS

Registered Office :	“Delphi” – B Wing, 601 And 602, 6^th Floor, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra, India
Tel. No.:	91-22-66620555/ 66620566
Fax No.:	91-22-66620500
E-Mail :	Sharad.Rane@emerson.com Mandar.Natekar@emerson.com Kiran.gadre@emerson.com
Location :	Owned
Factory :	Located at Pawane, Near Mumbai
Divisional Office :	Located at: Daman New Delhi Vadodara Kolkata Pune Chennai Bangalore Secunderabad Chandigarh Surat Ernakulam Nagpur Indore Visakhapatnam Modern Mill Compound, D Wing, 2^nd Floor, Sane Guruji Marg, Jacob Circle, Mumbai – 400 011, Maharashtra, India

DIRECTORS

As on 21.09.2011

Name :	Mr. Amit Ashok Paithankar
Designation :	Managing Director
Address :	B 406 Lake Primrose, Phase-4, Lake homes powai, Mumbai-400076, Maharashtra,India
Date of Birth/Age :	01.04.1971
Qualification :	BE-Electrical Engineer, VJTI- Mumbai ; Ph. D Technology -VJTI, Mumbai, Masters Diploma in Business Administration (Finance) – Symbiosis, Pune
Experience :	19 Years
Date of Appointment :	29.11.2011
DIN No.:	02435057
Name :	Mr. Pradipta Tirthapati sen
Designation :	Director
Address :	304, Tower-2, Plams, South City 1, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	07.10.1958
Date of Appointment :	30.12.2003
DIN No.:	00051758
Name :	Mr.; Sabayachi Subodh Kumar Mitra
Designation :	Director
Address :	16, Verde Crescent, Singapore – 688 731
Date of Appointment :	18.12.2008
DIN No.:	00366616
Name :	Mr. Michael Howard Train
Designation :	Director
Address :	Charles Howard Train, 8000, W. Florissant Avenue, St. Louis, Missouvi – USA
Date of Birth/Age :	25.01.1962
Date of Appointment :	09.04.2002
DIN No.:	00736644
Name :	Mr. Sunil Ramashanker Khanna
Designation :	Managing Director
Address :	C-302, Celebrity Home, Palam Vihar, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	07.07.1955
Qualification :	M. E. from I.I.T, Kanpur and a Bachelors degree in Electronics Engineering from Institute of Technology, Banaras Hindu University.
Experience :	30 Years
Date of Appointment :	07.11.2006
DIN No.:	00907147
Name :	Mr. Sharad Amrut Rane
Designation :	Alternate director
Address :	Flat No. C – 404, 4^th Floor, The Residency, Vishweshwar Nagar, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Date of Birth/Age :	15.03.1959
Date of Appointment :	23.09.2008
DIN No.:	02368830

KEY EXECUTIVES

Name :	Mr. Sharad Amrut Rane
Designation :	Secretary
Address :	Flat No. C – 404, 4^th Floor, The Residency, Vishweshwar Nagar, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Date of Birth/Age :	15.03.1959
Date of Appointment :	23.09.2008
PAN No.:	AAAPR5500L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2011

Names of Shareholders	No. of Shares
Jasu Shah	2542
Shweta Shah	3600
Maulilk Shah	2930
Rustom Vakil	12
Jasubhai Business Services Private Limited, India	216
Jasu Shah HUF	650
Maulik Jasubhai HUF	250
Akum Mercantile Company Private Limited, India	2000
Jasubhai Media Private Limited, India	2700
Maulik Business Services Private Limited, India	1700
Om Sagar Engineering Private Limited, India	2050
Akshar Enterprises, India	600
Ingtech Engineering, India	250
Khevana Investments Private Limited (India)	500
Specialised Institute of Industrial and Technical Education Private Limited, India	750
Jasubhai Engineering Private Limited, India	2150
Ms.Sujata Bhatt	500
Rosemount Inc.,	66600
Total	90000

Equity Share Break up (Percentage of Total Equity)

As on 21.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	74.00
Bodies corporate	13.41
Directors or relatives of Directors	11.63
Other top fifty shareholders	0.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Process Control Instruments, Distributed Control Systems and related services

Products :

Item Code No. (ITC Code)	90262009
Product Description	Instruments for Measuring, checking pressure
Item Code No. (ITC Code)	90261009
Product Description	Instruments for Measuring, checking flow
Item Code No. (ITC Code)	90278000
Product Description	Gas and Liquid Analytical Instruments

Imports :

Products :

Raw material

Countries :

· Asia

· Singapore

· Dubai

· US

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

550 (Approximately)

Bankers :

City Bank, Powai Branch, Mumbai, Maharashtra, India

Contact No.:91-22-28232484

Facilities :

Unsecured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long-term maturities of finance lease obligations	0.411 (A)	1.036 (B)
Loans and advances from others	200.000 (C)	0.000
Total	200.411	1.036

Notes :

· Interest is to be paid ranging from 8.75% to 12.74% and repayment is at monthly intervals, maturity ranging from August 2012 to April 2014.

· Interest is to be paid ranging from 8.75% to 12.74%. Repayment is at monthly intervals, maturity ranging from

· August 2012 to April 2014.

· Payable by February 2013 Interest is to be paid @ MIBOR + 0.50% at quarterly intervals

Banking Relations :	------
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Lodha Excelus, 5^th Floor, Apollo Mills Compound, N. M Joshi Marg, Mahalaxmi, Mumbai – 400013, Maharashtra, India
PAN.:	AAAFB9825F
Holding Company :	· Rosemount INC, USA
Ultimate Holding Company:	· Emerson Electric Company, USA
Associates :	ABM Steels Private Limited Jasubhai Business Services Private Limited Jasubhai Engineering Company Limited Maulik Business Services Private Limited
Fellow Subsidiary :	· Fisher Chennai Engineering center · Brooks Intruments USA · Daniel Measurement and Control USA · Decision Management Internal · Emerson Beijing Instrument Company Limited · Emerson Design Enegineering Center · Emerson Electric Asia Pacific · Emerson Electric Company (India) Private Limited · Emerson Export Engineering Centre · Emerson FZE (Dubai) · Emerson Process Management Company Limited. - Shanghai · Emerson Network Power (India) Private Limited · Emerson Process Management Manufacturing GMBH and Company,Germany · Emerson Process Management Shared Services U.K. · Emerson Process Management. Austin, USA · Emerson Process Management Japan Limited · Emerson Process Management-Flow Technologies Company Limited · Fisher Controls International LLC · Fisher Rosemount System Inc. Life Science USA · Mobrey Limited · Metco Services Limited · Emerson Process Management Australia Private Limited · Roxar Maximum Reservoir Performance LLC · EGS Electrical Group LLC · Micro Motion Inc.,USA · Beijing Rosemount Far East Instrument Company Limited · Rosemount Analytical Inc Ohio-USA · P I Componants Inc. · Rosemount Analytical Inc., Irvine · Rosemount Tank Gauging India Private Limited · Emerson Process Mamagement Power and Water Solution (India) Private Limited · Emerson Process Management (Malaysia) Sdn. Bhd · Emerson Process Management Asia Pacific (Singapore) Pte Limited · Emerson Process Management Flow BV · Emerson Process Management -Korea · Emerson Process Management Pittsburgh · Emerson Process Management Limited-U.K · Emerson Process Management Karlstein Germany · Emerson Process Management PC and E Inc. St. Louis · Daniel Measurement Solutions Private Limited · Daniel Measurement and Control (India) Private Limited · Fisher Sanmar Limited · Tescom Europe Gmbh and Company. Kg,Germny · Instrument and Valve Services Company. · EGS Private Limited · Control Technologies India Private Limited

CAPITAL STRUCTURE

As on 21.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90000	Equity Shares	Rs.100/- each	Rs.9.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1087.339	1069.109	1025.574
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1096.339	1078.109	1034.574
LOAN FUNDS
1] Secured Loans		0.000	0.000	2.239
2] Unsecured Loans		200.411	1.036	0.000
TOTAL BORROWING		200.411	1.036	2.239
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1296.750	1079.145	1036.813
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		362.054	361.320	114.085
Capital work-in-progress		3.579	6.008	71.592
INVESTMENT		0.000	0.000	0.043
DEFERREX TAX ASSETS		104.658	82.439	71.275
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	680.496	592.114	386.010
	Sundry Debtors	1477.491	1200.546	901.355
	Cash & Bank Balances	81.679	76.577	261.531
	Other Current Assets	244.433	241.568	198.232
	Loans & Advances	435.636	462.082	337.047
Total Current Assets		2919.735	2572.887	2084.175
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1493.259	1461.668	889.397
	Other Current Liabilities	469.128	338.640	285.069
	Provisions	130.889	143.201	129.891
Total Current Liabilities		2093.276	1943.509	1304.357
Net Current Assets		826.459	629.378	779.818
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1296.750	1079.145	1036.813

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	5389.795	4556.415	4069.838
		Other Income			94.537
		TOTAL (A)	5389.795	4556.415	4164.375
Less	EXPENSES
		Cost of Goods sold and services rendered	5219.057	4315.521	3085.758
		Personnel Cost			304.591
		Manufacturing and Other Expenses			416.991
		TOTAL (B)	5219.057	4315.521	3807.340
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		170.738	240.894	357.035
Less	FINANCIAL EXPENSES (D)		5.855	0.299	0.400
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		176.593	240.595	356.635
Less/ Add	DEPRECIATION/ AMORTISATION (F)		68.764	43.045	28.382
	PROFIT BEFORE TAX (E-F) (G)		107.829	197.550	328.253
Less	TAX (I)		44.750	64.464	112.180
	PROFIT AFTER TAX (G-I) (J)		63.079	133.085	216.073
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		709.631	679.584	661.951
Less	APPROPRIATIONS
		Interim Dividend	NA	38.461	112.685
		Proposed Dividend – Final		38.641	38.461
		Dividend distribution tax		12.627	25.687
		Transfer to General Reserve		13.309	21.607
	BALANCE CARRIED TO THE B/S		NA	709.631	679.584
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	306.472		151.467
		Service Revenue			77.210
		Agency commission			2.704
		Others			4.240
	TOTAL EARNINGS		306.472	171.674	235.621
	IMPORTS
		Finished Goods	NA	0.000	140.985
		Raw Materials		0.000	2346.795
		Capital Goods		0.000	14.205
	TOTAL IMPORTS		NA	0.000	2501.985
	Earnings Per Share (Rs.)		700.88	1478.72	2400.81

Expected Sales (2012-2013): Rs. 7500.000 Millions

The above information has been parted by Mr. Kiran Gadre

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.17	2.92	5.19
Net Profit Margin (PBT/Sales)	(%)	NA	N.A	8.06
Return on Total Assets (PBT/Total Assets}	(%)	3.29	6.66	14.93
Return on Investment (ROI) (PBT/Networth)		0.10	0.18	0.32
Debt Equity Ratio (Total Liability/Networth)		0.94	1.80	1.26
Current Ratio (Current Asset/Current Liability)		1.39	1.32	1.60

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITOR DETAILS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	1493.259	1461.668	889.397

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	(Yes)
17]	Major suppliers	(No)
18]	Major customers	(No)
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	(No)
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)

NOTE:

Registered office of the company has been shifted from D- wing, 2^nd Floor, Modern Mill Compound, Mumbai, Maharashtra, India to the present address w.e.f. 20.04.2009

BACKGROUND:

Subject was incorporated on 25^th March, 1981 as a joint venture between Rosemount Inc, USA (‘Rosemount’) and the Jasu Shah Group (‘JS Group’) On 8^th August 2000, the joint venture partners entered into a share purchase and shareholders agreement to restructure their relationship, whereby the J S Group agreed to sell 30,600 equity shares to Rosemount resulting in an increase in shareholding of Rosemount from 40% to 74% and thereby making the Company a subsidiary of Rosemount.

The Company is engaged in the manufacture and trading of process control instruments, distributed control systems and related services.

OPERATIONS

The Company has posted year on year Bookings growth of 9% during the year (From Rs 5854.000 Millions in FY2010-11 to Rs 6372.000 Millions in FY2011-12. Though bookings growth looks slower when compared to the one in the recent past, it was due to the fact that previous year had 2 Mega orders from Power sector - Rs 306.000 Millions from LANCO and Rs 401.000 Millions from Tata Projects. Ignoring these mega orders, YOY growth is 19% which is quite decent. Major orders received during the year includes – Lanco Moser Bayer Rs 180mn, DGS and D – Rs. 62.500 Millions; EIL – Brahmaputra Cracker Rs 59.000 Millions, Grasim Industries Rs 55.000 Millions etc.

The Company had very healthy order back log position as at end of March, 12 of Rs 4528.000 Millions which was 28% higher than backlog of Rs 3577.000 Millions a year ago. The Company’s Operational revenue increased by 19% YOY despite supply chain disruption on account of flooding in Thailand. However, Profit before tax as % of total revenue decreased to 2% compared to 4.3% in last year. This was mainly due to sharp appreciation of USD vs Rs. from Rs 45/- at the beginning of the year to Rs 50.3 at year end which impacted the P and L by Rs 140.000 Millions due to exchange rate difference on conversion of foreign currency liabilities. Employee cost increased by 26% due to increased in headcount from 481 to 551 (15%) along with effect of increment / variable pay etc. Depreciation and amortization expenses increased by 60% mainly due to full year impact of commissioning of manufacturing facility at Pawane vs. impact for only 4 months in last year. All these factors affected the Company’s profitability during the year.

FIXED ASSETS:

· Buildings

· Plant and machinery

· Computers

· Office equipments

· Furniture and fittings

· Vehicles

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.55.09
UK Pound	1	Rs.89.10
Euro	1	Rs.72.62

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.