MIRA INFORM REPORT

Report Date :

10.01.2012

IDENTIFICATION DETAILS

Name :	PARACOAT PRODUCTS LIMITED (w.e.f. 16.05.1996)
Formerly Known As :	PARAGON PAINTS PRIVATE LIMITED
Registered Office :	32A, Chittaranjan Avenue, 4^th Floor, Kolkata – 700012, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.01.1989
Com. Reg. No.:	21-046056
Capital Investment / Paid-up Capital :	Rs.39.551 Millions
CIN No.: [Company Identification No.]	U24121WB1989PLC046056
TAN No.: [Tax Deduction & Collection Account No.]	CALP02865C
PAN No.: [Permanent Account No.]	AABCP7033J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Paints, Thinners and Primer.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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 :	32A, Chittaranjan Avenue, 4^th Floor, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22373066/2023
Fax No.:	91-33-22120154
E-Mail :	paracoat@cal3.vsnl.net.in sanjeev.paracoat@gmail.com
Website :	http://www.paracoat.com
Corporate Office :	E-1225, RIICO Industrial Area, Phase -1 Ext. Ghatal, Bhiwadi-301019 Rajasthan, India
Tel. No.:	91-1493-222830
Fax No.:	91-1493-223950
E-Mail :	paracoat@vsnl.com
Factory :	Bipranpara, Andul, Begri – 711411, Howrah District, West Bengal, India
Tel. No.:	91-33-27093087
Area :	100000 sq. fts.
Location :	Owned
Branches :	Located at :- Delhi

DIRECTORS

As on 30.09.2011

Name :

Mr. Atma Ram Poddar

Designation :

Director

Address :

862, Jessore Road, BL-D, FL-3/B, Kolkata - 700055, West Bengal, India

Date of Birth/Age :

04.04.1944

Date of Appointment :

24.01.1989

DIN No.:

00653336

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
U24121WB1989PLC046056	Paracoat Products Limited	Director	24/01/1989	24/01/1989	-	Active	NO
U70101WB2006PTC110264	Indo Dutch Carpet Manufacturing Private Limited	Director	30/06/2006	30/06/2006	-	Active	NO
U32109WB2004PTC099566	PCP Technologies Private Limited	Additional director	4/06/2007	4/06/2007	-	Active	NO
U24130WB2011PTC171338	PCP Products Private Limited	Director	27/12/2011	27/12/2011	-	Active	NO

Name :

Mr. Rajesh Poddar

Designation :

Director

Address :

103, Sova Bazar Street, Kolkata – 700005, West Bengal, India

Date of Birth/Age :

26.11.1968

Qualification :

B. Com

Date of Appointment :

17.06.1991

DIN No.:

00587017

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
U24121WB1989PLC046056	Paracoat Products Limited	Director	17/06/1991	17/06/1991	-	Active	NO
U51909WB2003PTC095656	PCP Commercial Private Limited	Director	15/01/2003	15/01/2003	-	Active	NO
U32109WB2004PTC099566	PCP Technologies Private Limited	Director	25/08/2004	25/08/2004	-	Active	NO
U34300WB2006PTC110064	PCP Auto Interiors Private Limited	Director	26/06/2006	26/06/2006	-	Active	NO
U70101WB2006PTC110264	Indo Dutch Carpet Manufacturing Private Limited	Director	30/06/2006	30/06/2006	-	Active	NO
U34300WB2006PTC111422	PCP Auto Accessories India Private Limited	Director	20/09/2006	20/09/2006	-	Active	NO
U74900WB2009PTC134493	Parker-PCP Auto Components Private Limited	Director	6/04/2009	6/04/2009	-	Active	NO
U24130WB2011PTC171338	PCP Products Private Limited	Director	27/12/2011	27/12/2011	-	Active	NO

Name :

Mr. Virendra Poddar

Designation :

Director

Address :

BH-189, Sector 2I, Salt Lake City, Kolkata - 700091, West Bengal, India

Date of Birth/Age :

14.10.1972

Date of Appointment :

08.02.2002

DIN No.:

00684880

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
U24121WB1989PLC046056	Paracoat Products Limited	Director	8/02/2002	8/02/2002	-	Active	NO
U70100WB2008PTC125450	PCP Projects Private Limited	Director	7/05/2008	7/05/2008	-	Active	NO

Name :

Mr. Bimal Kumar Poddar

Designation :

Director

Address :

103, 3^rd Floor, Sova Bazar Street, Kolkata - 700005, West Bengal, India

Date of Birth/Age :

07.04.1958

Date of Appointment :

17.06.1991

DIN No.:

00596702

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
U24121WB1989PLC046056	Paracoat Products Limited	Director	17/06/1991	17/06/1991	-	Active	NO
U34300WB2006PTC110064	PCP Auto Interiors Private Limited	Director	30/09/2010	14/01/2010	-	Active	NO

Name :

Mr. Navin Banka

Designation :

Director

Address :

62, 1^st Floor, 7^th Main, BTM, II Stage, Bangalore - 560076, Karnataka, India

Date of Birth/Age :

11.01.1967

Date of Appointment :

19.03.2001

DIN No.:

00597052

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
U24121WB1989PLC046056	Paracoat Products Limited	Director	19/03/2001	19/03/2001	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Atma Ram Poddar	283800
Rajesh Poddar	155000
Sangeeta Banka	114500
Lalita Poddar	395550
Sarika Arya	156450
Mamta Poddar	182200
Atma Ram Poddar C/o.A.R. Poddar and Sons (HUF)	273950
Sulochana Poddar	110500
Mamta Poddar (2)	61000
Rajni Bhalla	10000
Naina Banka	348500
Om Prakash Banka	177000
G. G. M Finance Private Limited, India	274000
Radha Devi Banka	150000
Meena Poddar	20000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	6.93
Directors or relatives of Directors	82.67
Other top fifty shareholders	10.40
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Paints, Thinners and Primer.
Products :	· Paints · Thinners · Primers

GENERAL INFORMATION

No. of Employees :

40 (Approximately)

Bankers :

Canara Bank, Princep Street Branch, 25, Princep Street, Kolkata – 700072, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans	82.333	137.894
Working Capital Loans banks secured	129.277	120.438
Working Capital Loans others secured	3.344	1.095
Total	214.954	259.427
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	26.351	0.758
Total	26.351	0.758

Banking Relations :	--
Auditors :
Name :	Manoj Saraf and Associates Chartered Accountants
Address :	40, Strand Road, 3^rd Floor, Room No. 12/3, Kolkata - 700001, West Bengal, India
Tel. No.:	91-33-22432591
Fax No.:	91-33-22303332
E-Mail :	msa_p@hotmail.com
PAN.:	AJZPS9885K

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3955100	Equity Shares	Rs.10/- each	Rs.39.551 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		39.551	37.071	37.071
2] Share Application Money		0.000	25.800	1.680
3] Reserves & Surplus		277.902	254.490	246.782
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		317.453	317.361	285.533
LOAN FUNDS
1] Secured Loans		214.954	259.427	251.022
2] Unsecured Loans		26.351	0.758	28.867
TOTAL BORROWING		241.305	260.185	279.889
DEFERRED TAX LIABILITIES		24.579	29.656	22.241
TOTAL		583.337	607.202	587.663
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		347.549	410.960	431.622
Capital work-in-progress		9.891	14.924	2.489
INVESTMENT		0.000	0.000	6.517
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	211.884	171.365	152.193
	Sundry Debtors	143.082	96.720	99.906
	Cash & Bank Balances	16.449	10.442	9.377
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	99.909	56.557	34.005
Total Current Assets		471.324	335.084	295.481
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	201.185	126.501	123.528
	Other Current Liabilities	21.976	19.610	17.558
	Provisions	22.266	7.655	7.360
Total Current Liabilities		245.427	153.766	148.446
Net Current Assets		225.897	181.318	147.035
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		583.337	607.202	587.663

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1075.464	844.134	683.452
		Other Income	30.408	12.454	3.536
		TOTAL (A)	1105.872	856.588	686.988
Less	EXPENSES
		Manufacturing Service Costs	84.491	67.837
		Employee related expenses	65.196	56.701
		Administrative Expenses	80.796	62.847	637.759
		Research and Development Expenses	11.981	7.024
		Increase in Stock	758.511	585.035
		Other Expenditure	(25.286)	5.605
		TOTAL (B)	975.689	785.049	637.759
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		130.183	71.539	49.229
Less	FINANCIAL EXPENSES (D)		29.783	26.885	29.906
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		100.400	44.654	19.323
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.590	36.982	13.548
	PROFIT BEFORE TAX (E-F) (G)		50.810	7.672	5.775
Less	TAX (H)		8.295	0.665	8.638
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		42.515	7.007	(2.862)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.660	25.616	30.213
Less	APPROPRIATIONS
		Transfer to General Reserve			0.000
		Dividend	NA	NA	1.483
		Tax on Dividend			0.252
	BALANCE CARRIED TO THE B/S		NA	NA	25.616
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	12.062	23.748	23.276
	TOTAL EARNINGS		12.062	23.748	23.276
	IMPORTS
		Raw Materials	13.956	22.590	17.475
		Capital Goods	0.000	4.595	1.144
	TOTAL IMPORTS		13.956	27.185	18.619
	Earnings Per Share (Rs.)		10.28	4.37	(0.77)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.84	0.82	0.42
Net Profit Margin (PBT/Sales)	(%)	4.72	0.91	0.85
Return on Total Assets (PBT/Total Assets}	(%)	6.20	1.03	0.80
Return on Investment (ROI) (PBT/Networth)		0.16	0.02	0.02
Debt Equity Ratio (Total Liability/Networth)		1.53	1.30	1.50
Current Ratio (Current Asset/Current Liability)		1.92	2.18	1.99

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The company has registered increase in the turnover by 27% in comparison to previous year. Automobile sector in the country has shown rapid growth and sales of vehicles have increased by month after month. In line with the growth in the sector, they expect their sales also to grow in future years to come and the Company will continue its efforts to improve the operations, reduce costs and thereby improve the overall performance.

The Company has good number of enquiries from Auto Manufacturers, which should result in big orders in future year and thus, expects to generate growth in turnover by entering into supplies to Heavy Vehicle Manufacturers. However, considering the global slowdown and depreciation of local currency coupled with rising interest rates and fuel cost the current levels will be flat and there is no growth expected in the year 2011-12.

FORM 8

Corporate identity number of the company	U24121WB1989PLC046056
Name of the company	PARACOAT PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	32A, Chittaranjan Avenue, 4th Floor, Kolkata – 700012, West Bengal, India Email Id : sanjeev.paracoat@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90252753
Type of charge	Immovable property Book debts Personal guarantee, pledge of deposit
Particular of charge holder	Canara Bank, Princep Street Branch, 25, Princep Street, Kolkata – 700072, West Bengal, India Email Id : vaskardas@rediffmail.com
Nature of instrument creating charge	1) Sanction letter dated 01.08.2011 covering fresh DPN(secured) loan of Rs.48.400 Millions 2) Supplemental Common Hypothecation Agreement dated 12.08.2011 covering overall credit facility of Rs.315.900 Millions
Date of instrument Creating the charge	12.08.2011
Amount secured by the charge	Rs.315.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For, 1)DPN(secured)of Rs.48.400 Millions = Base Rate + 375 bps = 14.50% p.a at present (floating) 2)Other Loans = As per existing terms Terms of repayment 1) DPN (secured) of Rs.48.400 Millions = Repaid in two bullet payments of Rs.25.000 Millions in March 2012 and Rs.23.400 Millions in July 2012. Interest to be serviced as and when due. 2) Term Loan I, Term Loan III and Term Loan IV have been repaid. 3) Term Loan II and Term Loan V to be repaid as per existing terms. 4) OCC/ODBD to be repaid as per existing terms. 5) ILC/FLC to be repaid as per existing terms. Margin 1) DPN (secured) of Rs.48.400 Millions = 25%. 2) Term Loan II and Term Loan V = As per existing margin. 3) OCC/ODBD, ILC/FLC and BG= As per existing margin. Extent and operation of the charge 1)Primary Security Hypothecation of Stock of Raw materials, Work in process, semi finished and finished goods, book debts, plant and machinery, tools and dies and other movable current assets both present and future. Collateral Security 1)Extension of EMT of factory land and building at Bipananpara, Domjur, Howrah as existing 2)Extension of EMT of factory land and building at Plot No E-1225,RIICO Industrial Area, Bhiwadi, as existing Others 3) Extension of EMT of factory land & building at Plot No 43C, SIPCOT Industrial Complex, Phase I, Hosur, Tamil Nadu as existing. 4)Pledge of Term Deposit (KDR) of Rs.1.813 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge on plant and machinery located at Domjur Howrah, Bhiwadi Rajasthan and Hosur Tamilnadu, India First charge on Stock of Raw materials, Work in process, semi finished and finished goods,book debts, tools and dies and other movable current assets both present and future located at borrowers factory, premises, godwon or anywhere else First charge on factory land and building at Bipananpara, Domjur, Howrah, West Bengal, India First charge on factory land and building at Plot No E-1225,RIICO Industrial Area, Bhiwadi First charge on factory land and building at Plot No 43C,SIPCOT Industrial Complex, Phase I, Hosur, Tamilnadu, India
Date of instrument modifying the charge	10.11.2010
Particulars of the present modification	By this modification the total overall credit facility stands at Rs.315.900 Millions details of which is given below: Nature of facilities Amount 1) OCC/ODBD Rs 110.000 Millions 2) ILC/FLC Rs 50.000 Millions 3) BG Rs 5.000 Millions 4) Term Loan II Rs 20.000 Millions 5) Term Loan V Rs 82.500 Millions 6) DPN ( Secured) Rs 48.400 Millions Other terms and conditions remain unchanged

Contingent liabilities not provided for (As on 31.03.2011):

i) Guarantees issued by Bank – Rs. Nil

ii) Letters of credit opened and outstanding – Rs.49.285 Millions

iii) Corporate Guarantees given by the Company in favour of an Indian associate company and overseas JV company in respect of loans granted to them by their bankers Rs. Nil and Thai Bhat Rs.22.450 Millions

FIXED ASSETS

• Land
• Leasehold Land
• Factory Building
• Plant and Machinery
• Furniture and Fixture
• Electrical Fitting
• Office Equipment
• Electrical Installation
• Computer
• Motor Vehicle

HISTORY

PCP started in 1974 with manufacturing of underbody sound Deadener at Kolkata and started supplying to Hindustan Motors Limited. PCP during 1980 also started making insulations based on rubber laminated with Jute/cotton for floor, bonnet, and rear seat. In 1984 PCP started with paints, sealers, and sealants in the name of Paragon Paints for automotive, railways, and other engineering industries. During 1984 PCP started manufacturing Melt Sheets (Asphalt Sheets) for HM's Contessa, based on the requirements of Vauxhall of GM.

In 1998 PCP signed technology transfer agreement with Asahi Rubber Company Limited of Japan. Asahi is one of the pioneer company in Japan making Asphalt Sheets, Visco foam, Sealers and sealant and having 35% market share in Japan. PCP in order to make itself a "Consumer Delight" company started its Northern India plant at Bhiwadi, Rajasthan and its southern India plant at Hosur and is going to setup its Western India plant in Pune.

PCP has localized its manufacturing activities near its customers for giving them "JIT" delivery and less lead time for development. PCP with inner thrust for up gradation of technology started making insulation based on barrier (EVA/EPDM) with PU foam.

Chronology

1974 1st Plant for Sound Deadener Undercoat at Kolkata in the name of Pyne Chemical Products

1979 2nd Plant for manufacture of paints at Kolkata in the name of Paragon Paints

1986 Development of Asphalt Sheet and Opening 3rd Plant for Anti-Corrosive Paints :Paracoat Products Limited.

1998 Technical Tie-Up Signed with Asahi Rubber Company Limited of Japan and Inauguration of 4th Plant at Bhiwadi

2000 Certification of Quality System Qs 9000

2001 Inauguration of 5th Plant at Hosur

2002 Initiated relations with Bo-Kwang Corporation S.Korea, Dominion Suresealcanada

2003 Certification of ISO/Ts 16949 for Quality Management and ISO 14001 for Environment Export Orders from Gm and Advent of Designing Total Acoustic Solutions

2004 Received Zero PPM Award from Toyota, Silver Award from Honda and Appreciation Certificate from Hyundai

2005 Received Gold Award from Honda, Ohsas 18001 Certification, Foundation Stone Laying of New Manufacturing Facilities at Bhiwadi for Epp and Pune for Moulded Carpets

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.52.73
UK Pound	1	Rs.81.34
Euro	1	Rs.67.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.