MIRA INFORM REPORT

Report Date :

03.01.2012

IDENTIFICATION DETAILS

Name :	ANDHRA ORGANICS LIMITED
Registered Office :	Plot No – 8, S. V. Co-operative Industrial Estate, I.D.A, Jeedimetla, Hyderabad – 500055, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.02.1991
Com. Reg. No.:	01-012314
Capital Investment / Paid-up Capital :	Rs.45.117 Millions
CIN No.: [Company Identification No.]	U24116AP1991PLC012314
TAN No.: [Tax Deduction & Collection Account No.]	HYDA02175F
PAN No.: [Permanent Account No.]	AABCA8911E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3060000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Plot No – 8, S. V. Co-operative Industrial Estate, I.D.A, Jeedimetla, Hyderabad – 500005, Andhra Pradesh, India
Tel. No.:	91-40-23196999
Fax No.:	91-40-23196777
E-Mail :	taxation@virchows.com info@andhraorganics.com purchase@andhraorganics.com finance@andhraorganics.com
Factory :	Plot No. 110A, IDA, Pyadibhimavaram, Ranastalam Mandal, Srikakulam District
Tel. No.:	91-8942-288215
Fax No.:	91-8942-288151

DIRECTORS

As on 30.09.2011

Name :

Mr. Mundla Sudha

Designation :

Director

Address :

Plot No. 15A, Road No.2, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

19.04.1982

Date of Appointment :

20.03.2006

DIN No.:

00054013

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24232AP1982PLC003368	Virchow Laboratores Limited.	Director	14/03/2002	14/03/2002	-	Active	NO
U24299AP2002PTC039653	Emmennar Bio-Tech Private Limited	Director	23/09/2002	23/09/2002	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Director	20/03/2006	20/03/2006	-	Active	NO
U23209AP2003PTC041101	Virchow Petrochemical Private Limited	Whole-time director	1/04/2008	27/09/2006	-	Active	NO
U24239AP2004PLC042949	Virchow Drugs Limited	Director	29/09/2009	31/03/2009	-	Active	NO

Name :

Mr. Mundla Narayana Reddy

Designation :

Director

Address :

Plot No. 15A, Road No.2, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

08.09.2004

DIN No.:

00064392

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24232AP1982PLC003368	Virchow Laboratores Limited	Managing director	1/06/2011	20/01/1982	-	Active	NO
U24210AP2001PTC036520	Virchow Biotech Private Limited	Director	4/04/2001	4/04/2001	-	Active	NO
U74210AP1974PTC001733	Imex Engineering Company Private Limited	Director	18/10/2001	18/10/2001	-	Active	YES
U24230AP2002PTC039606	Covalent Laboratories Private Limited	Director	15/05/2003	15/05/2003	-	Active	NO
U23209AP2003PTC041101	Virchow Petrochemical Private Limited	Director	4/06/2003	4/06/2003	-	Active	NO
U24239AP2004PLC042949	Virchow Drugs Limited	Director	25/03/2004	25/03/2004	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Director	8/09/2004	8/09/2004	-	Active	NO
U24110AP2005PTC046609	Emmennar Chem Private Limited	Director	22/06/2005	22/06/2005	-	Active	NO
U45200AP2005NPL045814	Hyderabad Pharma Infrastructure and Technologies Limited	Director	21/12/2006	21/12/2006	17/01/2011	Active	NO
U24230MH2007PTC176048	Virchow Healthcare Private Limited	Director	20/11/2007	20/11/2007	-	Active	NO
U24299AP2002PTC039653	Emmennar Bio-Tech Private Limited	Director	10/03/2008	10/03/2008	-	Active	NO

Name :

Mr. Sree Phani Kumar Reddy Mallidi

Designation :

Director

Address :

Padmaja palace, Flat No. 401, Srinagar Colony, Hyderabad, Andhra Pradesh, India

Date of Birth/Age :

26.10.1971

Date of Appointment :

08.09.2004

DIN No.:

00307899

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24129AP1976PTC002072	Coramandel Infrastructure Private Limited	Managing director	7/09/1996	7/09/1996	3/11/2007	Active	NO
U85195AP1988PLC008172	Saraca Laboratories Limited	Director	9/05/1997	9/05/1997	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Director	8/09/2004	8/09/2004	-	Active	NO
U24232AP2007PTC053072	Lucid Medical Diagnostics Private Limited	Director	9/03/2007	9/03/2007	1/11/2010	Active	NO
U85100AP2010PTC066965	Lucid Diagnostic Solutions Private Limited	Director	10/02/2010	10/02/2010	24/12/2010	Active	NO
U85191AP2011PTC075961	Lucid Diagnostics Centre Private Limited	Director	12/08/2011	12/08/2011	-	Active	NO

Name :

Dr. Nandigala Venkata Reddy

Designation :

Director

Address :

Plot No. 55, Road No.19, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India

Date of Birth/Age :

01.07.1943

Date of Appointment :

08.09.2004

DIN No.:

01740424

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U65910AP1980PTC002612	Nandini Finance Private Limited	Director	10/11/1986	10/11/1986	-	Active	NO
U65910AP1985PTC005769	Saraca Leasing and Finance Private Limited	Director	5/08/1987	5/08/1987	-	Active	NO
U24232AP1982PLC003368	Virchow Laboratores Limited	Managing director	1/06/2011	30/09/1996	-	Active	NO
U24210AP2001PTC036520	Virchow Biotech Private Limited	Director	4/04/2001	4/04/2001	-	Active	NO
U74210AP1974PTC001733	Imex Engineering Company Private Limited	Director	18/10/2001	18/10/2001	-	Active	YES
U23209AP2003PTC041101	Virchow Petrochemical Private Limited	Director	4/06/2003	4/06/2003	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Director	8/09/2004	8/09/2004	-	Active	NO
U72300AP2007PTC055671	Max Infratech (India) Private Limited (Part Ix)	Director	25/09/2007	25/09/2007	3/11/2007	Amalgamated	NO
U24239AP2004PLC042949	Virchow Drugs Limited	Director	29/09/2009	31/03/2009	-	Active	NO

Name :

Mr. Nandigala Prasanth

Designation :

Whole-time Director

Address :

Plot No. 550, Road No. 19, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India

Date of Birth/Age :

14.04.1972

Date of Appointment :

08.09.2004

DIN No.:

01740471

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24232AP1982PLC003368	Virchow Laboratores Limited	Director	25/10/1999	25/10/1999	-	Active	NO
U74210AP1974PTC001733	Imex Engineering Company Private Limited	Director	18/10/2001	18/10/2001	-	Active	YES
U24230AP2002PTC039606	Covalent Laboratories Private Limited	Director	15/05/2003	15/05/2003	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Whole-time director	1/04/2011	8/09/2004	-	Active	NO
U24239AP2004PLC042949	Virchow Drugs Limited	Director	12/09/2007	12/09/2007	-	Active	NO

Name :

Mr. Ravinder Reddy Devireddy

Designation :

Director

Address :

Plot No. 143, Siddhartha Nagar, Behind Vengalrao Nagar, Hyderabad – 560038, Andhra Pradeh, India

Date of Birth/Age :

14.08.1934

Date of Appointment :

08.09.2004

DIN No.:

02440531

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24232AP1982PLC003368	Virchow Laboratores Limited	Director	30/09/1996	30/09/1996	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Director	8/09/2004	8/09/2004	-	Active	NO

Name :

Maha Vishnu Mundla

Designation :

Whole-time Director

Address :

Plot No. 15/A, Road No.2, Jubliee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

15.02.1987

Date of Appointment :

12.02.2011

DIN No.:

02470664

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U85195AP1988PLC008172	Saraca Laboratories Limited	Director	17/02/2006	17/02/2006	-	Active	NO
U24116AP1991PLC012314	Andhra Organics Limited	Whole-time director	1/04/2011	12/02/2011	-	Active	NO
U24110AP2005PTC046609	Emmennar Chem Private Limited	Director	23/09/2011	27/04/2011	-	Active	NO
U24299AP2002PTC039653	Emmennar Bio-Tech Private Limited	Director	16/09/2011	1/08/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Virchow Laboratories Limited, India	4510990
Linga Reddy Venkata Subash	100
M. Narayana Reddy	100
M. Lakshmi Prasanna	100
Nandigala Venkata Reddy	100
Nandigala Prasanth	100
D. Ravindra Reddy	100
M. S. Phani Kumar	100
Total	4511690

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	99.98
Directors or relatives of Directors	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Sulphamethoxazole, CIS (+) Lactum	293500

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Installed Capacity
Suphamethoxazole, CIS(+)Lactum	4200.00

GENERAL INFORMATION

No. of Employees :

(Approximately)

Bankers :

Andhra Bank, Somajiguda Branch, D No. 6-3-352/2, Astral Heights, Road No.1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Working Capital
From Andhra Bank – Cash Credit	121.758	271.199
Bill Discounting – Exports (Payable within one year)	0.000	49.467
Packing Credit (PCFC) (Payable within one year)	0.000	28.712
Total	121.758	349.378
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Intercorporate Deposit	492.500	420.000
Sales Tax Deferment Loan	10.169	10.169
Total	502.669	430.169

Banking Relations :	--
Auditors :
Name :	M V Narayana Reddy and Company Chartered Accountants
Address :	8-3-941, Flat No.504, Vijaysree Apartments, Behind Chemas, Ameerpet, Hyderabad – 500073, Andhra Pradesh, India
Tel. No.:	91-40-23743975/23744448
PAN.:	AADFM4830F
Associates :	· Virchow Laboratories Limited CIN No.: U24232AP1982PLC003368 · Virchow Drugs Limited · Imex Engineering Private Limited · Virchow Petro Chemicals Private Limited · Saraca Laboratories Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4511690	Equity Shares	Rs.10/- each	Rs.45.117 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		45.117	45.117	45.117
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		721.477	458.537	331.849
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		766.594	503.654	376.966
LOAN FUNDS
1] Secured Loans		121.758	349.378	293.189
2] Unsecured Loans		502.669	430.169	403.392
TOTAL BORROWING		624.427	779.547	696.581
DEFERRED TAX LIABILITIES		132.803	108.610	57.420
TOTAL		1523.824	1391.811	1130.967
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		950.601	712.014	321.685
Capital work-in-progress		22.555	118.383	179.025
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	161.231	203.395	188.685
	Sundry Debtors	408.649	328.762	301.945
	Cash & Bank Balances	11.793	9.091	11.015
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	156.481	129.225	198.859
Total Current Assets		738.154	670.473	700.504
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.709	58.737	8.454
	Other Current Liabilities	59.597	25.555	15.654
	Provisions	105.180	24.767	46.139
Total Current Liabilities		187.486	109.059	70.247
Net Current Assets		550.668	561.414	630.257
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1523.824	1391.811	1130.967

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2091.705	1980.325	1552.010
		Other Income	39.949	36.715	29.989
		TOTAL (A)	2131.654	2017.040	1581.999
Less	EXPENSES
		Decrease (Increase) in Stocks	50.714	(55.117)	51.061
		Raw Materials Consumed	1324.288	1553.296	1116.697
		Manufacturing Expenses	150.863	155.397	114.678
		Salaries, Wages and Other Benefits to the Employees	35.744	28.361	22.696
		Administrative and Selling Expenses	103.549	64.256	62.270
		TOTAL (B)	1665.158	1746.193	1367.402
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		466.496	270.847	214.597
Less	FINANCIAL EXPENSES (D)		32.926	44.057	33.296
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		433.570	226.790	181.301
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.629	25.625	19.229
	PROFIT BEFORE TAX (E-F) (G)		390.941	201.165	162.072
Less	TAX (H)		128.001	74.478	55.029
	PROFIT AFTER TAX (G-H) (I)		262.940	126.687	107.043
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		456.536	329.849	222.806
	BALANCE CARRIED TO THE B/S		719.476	456.536	329.849
	EARNINGS IN FOREIGN CURRENCY
		FOB Basis	893.648	669.829	663.849
	TOTAL EARNINGS		893.648	669.829	663.849
	Earnings Per Share (Rs.)		58.28	28.08	23.73

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	12.33	6.28	6.77
Net Profit Margin (PBT/Sales)	(%)	18.69	10.19	10.44
Return on Total Assets (PBT/Total Assets}	(%)	23.15	14.55	15.85
Return on Investment (ROI) (PBT/Networth)		0.51	0.39	0.43
Debt Equity Ratio (Total Liability/Networth)		1.06	1.76	2.03
Current Ratio (Current Asset/Current Liability)		3.93	6.15	9.97

LOCAL AGENCY FURTHER INFORMATION

Review of the Business Operations

The companies’ leadership position in SULPHAMETHAXAZOLE in key markets is continuing and the company has remained a prefered source to all its customers. Revenues increased from 2017.040 Millions in the previous year to 2131.654 Millions at a marginal growth rate of 5.38%.

Profit before Tax is at Rs.390.940 Millions as against the previous year’s figure of Rs201.164 Millions. The company has already geared up to meet this challenge and the expansion made during the year by creating additional facilities.

FORM 8

Corporate identity number of the company	U24116AP1991PLC012314
Name of the company	ANDHRA ORGANICS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No – 8, S. V. Co-operative Industrial Estate, I.D.A, Jeedimetla, Hyderabad – 500005, Andhra Pradesh, India Email Id : finance@andhraorganics.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90262119
Type of charge	Book debts Hypothecation of stocks of Raw Materials ,Finished Goods and Counter Guarantee of the Company
Particular of charge holder	Andhra Bank, Somajiguda Branch, D.No.6-3-352/2, Astral Heights, Road No.1, Banjara Hills, Hyderabad – 500082, Andhra Pradesh, India Email Id : bmhydm534@andhrabank.co.in
Nature of instrument creating charge	1) Composite Agreement 2) Counter Guarantee Form 3) Application to Open Irrevocable Documentary Credit 4) RF 259 A 5) RF 255 B 6) Sanction Letter
Date of instrument Creating the charge	25.03.2011
Amount secured by the charge	Rs.410.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC/CUBD- Base rate+4.25% Presently at 13.25% PC/PCFC/FUBD/REBA-As per HO guidelines ILC/FLC/BG-50% concession of applicable commission for ILC/FLC 50% of applicable commission for BG Terms of repayment OCC- One year from the date of sanction FLC- 180 days ILC - 120 days BG - 03 years Margin PC/PCFC-10% on stocks FUBD/FDBP/REBA/CUBD -Nil OCC-20% on stocks and 30 % on book debts less than 90 days 5% for ILC/FLC/BG Extent and operation of the charge OCC/PCFC/PF/REBA/FDBP/FUBD/CUBD: Hypothecation of stocks of raw material finished goods semi finished goods, goods in transit, consumable and receivables. ILC/FLC/BG: Stock of materials procured under ILC/FLC and counter guarantee of the company for BG Collateral Securities: First charge on the FA (both present and future) of the Company of WDV of Rs. 973.100 Millions as on 31.03.2010 Others OCC/PCFC/PF/REBA/FDBP/FUBD/CUBD: Rs.350.000 Millions ILC/FLC/BG: Rs.60.000 Millions Sanction of forward contract limit of Rs.800.000 Millions towards forward contracts for exports and Rs.300.000 Millions towards forward contract for imports
Short particulars of the property or asset(s) charged (including complete address and location of the property)	OCC/PCFC/PF/REBA/FDBP/FUBD/CUBD: Hypothecation of stocks of raw material finished goods semi finished goods, goods in transit, consumable and receivables ILC/FLC/BG: Stock of materials procured under ILC/FLC and counter guarantee of the company for BG ILC/FLC/BG: Stock of materials procured under ILC/FLC and counter guarantee of the company for BG
Date of instrument modifying the charge	22.01.2009
Particulars of the present modification	Renewal of Limits To Rs. 410.000 Millions: OCC/PCFC/PF/REBA/FDBP/FUBD/CUBD: Rs.350.000 Millions ILC/FLC/BG: Rs.60.000 Millions Sanction of forward contract limit of Rs.800.000 Millions towards forward contracts for exports and Rs.300.000 Millions towards forward contract for imports.

Contingent Liabilities As on 31.03.2010:

Guarantees given by Bank – Rs.0.010 Million

Unexpired Letters of Credit – Rs.19.316 Millions

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Electrical Installations

· Furniture and Fittings

· Lab Equipment

· Factory Equipment

· Canteen Equipment

· Office Equipment

· Computers and Perpherals

· 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 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.52.30
UK Pound	1	Rs.82.66
Euro	1	Rs.68.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		62

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.