MIRA INFORM REPORT

Report Date :

11.01.2012

IDENTIFICATION DETAILS

Name :	HPL ADDITIVES LIMITED (w.e.f. 16.11.2007)
Formerly Known As :	HIGH POLYMER LABS LIMITED
Registered Office :	803, Vishal Bhawan, 95, Nehru Place, New Delhi – 110019
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.08.1976
Com. Reg. No.:	55-008309
Capital Investment / Paid-up Capital :	Rs.130.154 Millions
CIN No.: [Company Identification No.]	U25209DL1976PLC008309
TAN No.: [Tax Deduction & Collection Account No.]	DELH0073D
PAN No.: [Permanent Account No.]	AAACH0110P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Polymer Additives, Specialty Chemicals and Industrial Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 5900000
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/ Corporate Office/ Factory :	803, Vishal Bhawan, 95, Nehru Place, New Delhi – 110 019, India
Tel. No.:	91-11-26421757/26431379/1522/26421570/1
Fax No.:	91-11-26474350/26460981
E-Mail :	hpla@hpladditives.com pb-cosec@hpl-group.com dc-cosec@hpl-group.com deeksha.chopra@hpladditives.com
Website :	http://www.hpladditives.com
International Office :	High Polymer Labs, Inc. 21 Sagamore Lane, Dix Hills, NY 11746, USA
Tel. No.:	(631) 643 5714
Fax No.:	(631) 643 5715
E-Mail :	adshpl@aol.com amar.singh@hpladditives.com

DIRECTORS

As on 24.09.2011

Name :

Mr. Harcharan Singh

Designation :

Managing Director

Address :

174-A, Sainik Farms, Khanpur, New Delhi – 110062, India

Date of Birth/Age :

22.07.1937

Qualification :

M.Sc. (Hons) Chemistry

Date of Appointment :

01.06.2004

DIN No.:

00183848

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
U74899DL1983PTC015518	Clear Chem Private Limited	Director	7/04/1983	7/04/1983	-	Active	NO
U25209DL1976PLC008309	HPL Additives Limited	Managing director	7/10/2010	1/06/2004	-	Active	NO
U74899DL1994PLC059434	HPL Investments Limited	Director	9/12/2006	9/12/2006	-	Active	NO
U74899DL1994PTC059301	HPL Securities Private Limited	Director	9/12/2006	9/12/2006	-	Active	NO
U24100DL2009PTC189161	HPL Innovation Private Limited	Director	6/04/2009	6/04/2009	-	Active	NO

Name :

Mr. Umesh Anand

Designation :

Managing Director

Address :

K-210, Lane W – 12, Western Avenue, Sainik Farm, New Delhi – 110062, India

Date of Birth/Age :

16.10.1962

Qualification :

MBA

Experience :

22 Years

Date of Appointment :

01.06.2002

DIN No.:

00122526

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
U25209DL1976PLC008309	HPL Additives Limited	Managing director	7/10/2010	1/06/2002	-	Active	NO
U24100DL2009PTC189161	HPL Innovation Private Limited	Director	6/04/2009	6/04/2009	-	Active	NO
U51909DL2012PTC229809	Andy Home Private Limited	Director	11/01/2012	11/01/2012	-	Active	NO

Name :

Mr. Satpal Singh

Designation :

Whole time Director

Address :

House No. 439, Sector – 14, Faridabad - 121002, Haryana, India

Date of Birth/Age :

08.08.1944

Date of Appointment :

01.01.2004

DIN No.:

00286831

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
U25209DL1976PLC008309	HPL Additives Limited	Whole-time director	16/02/2009	1/01/2004	-	Active	NO
U74899DL1994PLC059434	HPL Investments Limited	Director	16/09/2004	16/09/2004	-	Active	NO

Name :

Mr. Rajesh Narayan Sehgal

Designation :

Director

Address :

B 2602, Eldora Hillside Avenue, Hirandani Gardens, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

16.02.1971

Date of Appointment :

13.10.2005

DIN No.:

00048482

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
U25209DL1976PLC008309	HPL Additives Limited	Director	13/10/2005	13/10/2005	-	Active	NO
L91110GJ1989PLC012802	Apar Industries Limited	Director	24/08/2011	27/06/2011	-	Active	NO

Name :

Mr. Dilip Digambar Ravetkar

Designation :

Director

Address :

I-202, Nav Pinnac, Kanchanganga, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

29.07.1953

Date of Appointment :

13.10.2005

DIN No.:

00048446

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
U25209DL1976PLC008309	HPL Additives Limited	Director	13/10/2005	13/10/2005	-	Active	NO
U29297PN1986PLC041406	Mojj Engineering Systems Limited	Whole-time director	12/12/2008	24/08/2008	-	Active	NO

Name :

Mrs. Veena Choudhary

Designation :

Director

Address :

House No.22, Taxila Apartment, IIT Campus, Hauz Khas, New Delhi – 110016, India

Date of Birth/Age :

05.01.1951

Date of Appointment :

13.10.2005

DIN No.:

01058328

Name :

Dr. Krishna Kumar Saxena

Designation :

Director

Address :

25 E/4, Model Town Balrajeshwar Road, Mulund (West), Mumbai – 400080, Maharashtra, India

Date of Birth/Age :

15.08.1939

Date of Appointment :

13.10.2005

DIN No.:

00048423

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
U25209DL1976PLC008309	HPL Additives Limited	Director	13/10/2005	13/10/2005	-	Active	NO
U24110MH1988PLC047161	Anuvi Chemicals Limited	Whole-time director	1/06/2008	1/06/2008	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Deeksha Chopra
Designation :	Secretary
Address :	329 First Floor, Santngr Eok, New Delhi – 110065, India
Date of Birth/Age :	20.07.1983
Date of Appointment :	01.01.2009
PAN No.:	AFQPT5695F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Harcharan Singh	1939928
Manjinder Pal Kaur	2268925
HPL Merchantile Private Limited, New Delhi, India	567926
HPL Securities Private Limited, New Delhi, India	1278949
Clear Chem Private Limited, New Delhi, India	297505
Satpal Sing	306815
Maninder Kaur	341546
Minal Anand	328581
Ritu Singh	59345
Arpana Singh	75880
Simran Singh	61573
A.D. Singh	259300
Annupreet Singh	173792
Umesh Anand	1045404
Jai Karan Anand	5500
Manpreet Dugal	5500
Mahinder Kaur	21533
Nitin Jain and Ravil Saxena	20000
Templeton Strategic Emerging Markets Fund II, LDC, Singapore	3950000
Baldev Singh	7425
Fatepuria Brothers, India	3
Total	13015430

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2011

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	30.00
Bodies corporate	16.00
Directors or relatives of Directors	50.00
Other top fifty shareholders	4.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polymer Additives, Specialty Chemicals and Industrial Chemicals.

Products :

Product Description	Item Code
Blowing Agent	29241900
Denatured salt	38259000

· Polymer Additives

o Property Extenders

o Modifiers

o Polymerisation Catalysts

· Speciality Chemicals

o For Water Treatment

o For Pharma Intermediates

o For Agro Intermediates

o For Photographic Chemical

o For Personal Care

· Industial Chemicals

o Hydrazine Hydrate

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity©	Installed Capacity(#)	Actual Production
Blowing agent	MT	NA	9000	*6993.92
Speciality and water treatment chemicals	MT	NA	800	168.76
Azo-initiator	MT	NA	350	**229.39
Antioxidants and UV stabilizer	MT	NA	10000	2411.30
Hexamine		NA	900	*****34.51
PVC stabilizer kicker, blowing agents and other speciality chemicals	MT	NA	2350	****1809.16
HH 100% and Tizole	MT	NA	1750	***149.15
Others^	MT	NA	--	--

Notes :

^ No individual item exceeds 10% of the total production.

# As certified by the management and relied upon by the auditors, being a technical matter.

Being chemical plant, production capacities are interchangeable across the products.

© The Company’s products are exempt from licensing requirements under New Industrial Policy.

* Including Nil (Previous year 333.00 MT) used as captive consumption.

** Including 43.78 M.T. (Previous year 49.30 MT) used as captive consumption.

*** Including 83.76 M.T. (Previous year 1,212.09 MT) used as captive consumption.

**** Including 941.43 M.T. (Previous year Nil) used as captive consumption.

***** Including 34.51 M.T. (Previous year Nil) used as captive consumption.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, ICICI Bank Towers, Bandra Kurla Complex, Mumbai - 400 051, Maharashtra, India

· Citi Bank NA, Jeevan Vihar, 3 Sansad Marg, New Delhi – 110 001, India

· Canara Bank, DDA Building, Near Paras Cinema, Nehru Place, New Delhi – 110 019, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loans Banks (Secured by hypothecation of all existing plant and machinery and by way of equitable mortgage of land at Dudhola and Ballabhgarh. The directors have also given their personal guarantee for securing the loan)	58.333	116.667
Term Loans others (Secured by hypothecation of debtors, movable assets including plant and machinery, both present and future stock of raw materials, stock in process, finished goods and stores. This is further secured by way of equitable mortgage of land and building at Ballabhgarh and Dudhola. The directors have also given their personal guarantee for securing this cash/ export credit)	209.292	115.174
Working Capital Loans	0.000	48.247
Loan taken for vehicles	12.906	9.786
Total	280.531	289.874
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans subsidiaries	1.438	1.438
Others debts	0.303	0.303
Total	1.741	1.741

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower B, DLF Cyber City, Phase II, Gurgaon – 122 002, Haryana, India
PAN.:	AAAFB9852F
Subsidiaries :	· HPL Investments Limited CIN No.: U74899DL1994PLC059434 · High Polymer Labs Inc · HPL Innovation Private Limited CIN No.: U24100DL2009PTC189161
Associates :	· HPL Securities Private Limited · HPL Mercantile Private Limited · Templeton Strategic Emerging Markets Fund II, LDC
Enterprises over which key managerial person or his relative have significant influence :	· HPL Securities Private Limited · HPL Mercantile Private Limited · Clear Chem Private Limited · Sawhney Exports Enterprises

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13015430	Equity Shares	Rs.10/- each	Rs.130.154 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		130.154	130.154	124.027
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1368.722	1243.497	1068.855
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1498.876	1373.651	1192.882
LOAN FUNDS
1] Secured Loans		280.531	289.874	291.622
2] Unsecured Loans		1.741	1.741	1.661
TOTAL BORROWING		282.272	291.615	293.283
DEFERRED TAX LIABILITIES		146.838	148.332	151.111
EQUITY SHARES TO BE ISSUED PURSUANT TO THE SCHEME		0.000	0.000	6.127
TOTAL		1927.986	1813.598	1643.403
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1068.029	986.932	868.847
Capital work-in-progress		74.411	120.970	49.272
INVESTMENT		14.263	14.263	14.163
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	637.286	531.205	541.266
	Sundry Debtors	358.279	305.401	280.172
	Cash & Bank Balances	28.848	31.262	26.572
	Other Current Assets	0.000	1.487	0.000
	Loans & Advances	105.218	91.439	113.341
Total Current Assets		1129.631	960.794	961.351
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	280.986	213.297	180.877
	Other Current Liabilities	55.846	46.454	55.950
	Provisions	21.516	9.610	24.371
Total Current Liabilities		358.348	269.361	261.198
Net Current Assets		771.283	691.433	700.153
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Foreign currency monetary item translation different		0.000	0.000	10.968
TOTAL		1927.986	1813.598	1643.403

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2144.376	1906.400	1822.187
		Other Income	77.906	60.401	68.486
		TOTAL (A)	2222.282	1966.801	1890.673
Less	EXPENSES
		Employee related costs	128.142	118.176	1698.708
		Consumption material changes inventories	1449.633	1219.919
		Administrative selling other expenses	343.690	269.724
		Prior period item	8.199	0.000
		TOTAL (B)	1929.664	1607.819	1698.708
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		292.618	358.982	191.965
Less	FINANCIAL EXPENSES (D)		18.432	21.837	46.326
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		274.186	337.145	145.639
Less/ Add	DEPRECIATION/ AMORTISATION (F)		85.455	81.815	80.800
	PROFIT BEFORE TAX (E-F) (G)		188.731	255.330	64.839
Less	TAX (H)		63.506	80.688	13.532
	PROFIT AFTER TAX (G-H) (I)		125.225	174.642	51.307
	BALANCE CARRIED TO THE B/S		125.225	174.642	51.307
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1063.103	1051.390	989.925
		Dividend	0.280	0.000	0.382
		Reimbursement of exhibition expenses	2.651	0.000
	TOTAL EARNINGS		1066.034	1051.390	990.307
	IMPORTS
		Raw Materials	716.594	615.306	605.407
	TOTAL IMPORTS		716.594	615.306	605.407
	Earnings Per Share (Rs.)		9.62	13.42	3.94

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.49	8.88	2.71
Net Profit Margin (PBT/Sales)	(%)	8.80	13.39	3.56
Return on Total Assets (PBT/Total Assets}	(%)	8.58	13.11	3.54
Return on Investment (ROI) (PBT/Networth)		0.13	0.19	0.05
Debt Equity Ratio (Total Liability/Networth)		0.43	0.41	0.46
Current Ratio (Current Asset/Current Liability)		3.15	3.56	3.68

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

Sales and other income for the period were Rs.2222.282 Millions, as against Rs.1966.801 Millions during the previous period, thereby reflecting an increase of 12.99 %. Profit after tax decreased from Rs.174.642 Millions to Rs.125.225 Millions Exports constituted 52.20 % of total revenue (previous year 58.09%), are at Rs.1119.352 Millions in the current year as compared to Rs.1107.578 Millions in the last year.

FUTURE PROSPECTS

Year gone by has seen re-shaping of geo-political scenario across the globe, albeit without any major upheaval. On economic front it has been a mixed bag. By and large world economy has shown some sign of stabilization though developed economies continue to strain to break free of low growth rate. Basic weakness of EU has surfaced and despite strong willed measures by stronger countries, has taken its toll on a few with more joining ranks of the ones needing special attention. On other side, developing countries have shown somewhat encouraging growth rate, major contributors being China and India. Inflation in developing economies due to a combination of various factors, including increasing oil prices as well as other commodities prices, is dampening the growth.

The company has witnessed another year of satisfactory performance despite ever rising raw material prices and energy cost, appreciating local currency against Euro and USD and of late unavailability of work force for manufacturing sites resulting in higher manpower cost. This has been possible due to continual improvement mission of the company in all spheres of its operations.

The company has signed an MOU with Songwon Industrial Company Limited, a South Korea based company having capacity to manufacture 70000 MTA of Antioxidants and more than 20% 0f global market shares, to explore possibilities for a strategic partnership to leverage respective strengths to emerge a key player in the field of Polymer Stabilizers business of Antioxidants (AO) and UV Stabilizers (UV).

The company has initiated planning to build on its mother product range of Blowing agents and Specialty Chemicals by not only complementing its existing capacities but also to explore possibility of new green-field projects.

With certain statutory approvals yet not coming the way planned, company has deferred its plan to set up Innovation Centre, which would come up at an alternative location later. Hence to relocate its corporate office, it has booked sufficient space in an upcoming commercial building on Mathura Road Faridabad, which shall be available for possession in 2012.

Optimizing its resources the company has chalked a business plan for the current financial year with an organic growth of 20% in its top line.

The company continues to reiterate its faith in its human capital. Process for site specific three years wage agreements with trade union for an amicable solution is underway and shall be completed soon.

Contingent liabilities not provided for As on 31.03.2011:

a) Demand for excise duty case in Appeal with Commissioner of Central Excise,

Appeal for the period 2002 to 2007 – Rs.2.370 Millions

b) Demand on account of non-payment of LADT for the period 2002-2003 – Rs.0.395 Millions

c) Claims against the Company not acknowledged as debts

Employee State Insurance – Rs.0.234 Millions

2003-04* - Rs.8.116 Millions

2004-05 – Rs.0.956 Million

2005-06 (FBT) – Rs.0.570 Million

Note: *Appeal partly allowed by CIT(A), appeal effect order is pending before Assessing officer.

Fixed Assets

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Computers

· Software

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.52.22
UK Pound	1	Rs.80.84
Euro	1	Rs.66.80

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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.