MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	IND SWIFT LIMITED
Registered Office :	781 Industrial Area, Phase II, Chandigarh – 160002, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.06.1986
Com. Reg. No.:	006897
Capital Investment / Paid-up Capital :	Rs.226.357 Millions
CIN No.: [Company Identification No.]	L24230CH1986PLC006897
TAN No.: [Tax Deduction & Collection Account No.]	PTLI10314D
PAN No.: [Permanent Account No.]	AAACI6100L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Active Pharmaceutical Ingredients.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. 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 dealing 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 :	781 Industrial Area, Phase II, Chandigarh – 160002, Punjab, India
Tel. No.:	91-172-2638781/ 2638782/ 2638786
Fax No.:	91-172-2652242
E-Mail :	cs.indswift@gmail.com indswiftho@indswift.com
Website :	http://www.indswiftltd.com
Marketing Office :	102-103, the chambers, W.E. Highway, service Road, Vule Parle (East), Mumbai – 400057, Maharashtra, India
Tel No.:	91-22-42288300
Fax No.:	91-22-26184120
Factory 1 :	123, Industrial Area 1, Panchkula 134 109, Haryana, India
Factory 2 :	Plot. No. 23, Sector 2, (Unit I), Parwanoo (H.P.)
Factory 3 :	Plot No. 17 B, Sector 2, (Unit II) Parwanoo (H.P.)
Factory 4 :	Village Malku Majra, (Unit III and IV) Baddi, (H. P.)
Factory 5 :	Village Jawaharpur, Teh. Dera Bassi, Punjab, India
Factory 6:	Industrial Growth Centre, Sambha, Jammu (Jammu and Kashmir)

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. S. R. Mehta
Designation :	Chairman
Name :	Mr. N. R. Munjal
Designation :	Vice Chairman
Name :	Dr. G. Munjal
Designation :	Managing Director and Chief Executive Officer
Name :	Dr. V. R. Mehta
Designation :	Joint Managing Director
Name :	Mr. Himanshu Jain
Designation :	Director
Name :	Mr. Rishav Mehta
Designation :	Director
Name :	Mrs. Nirmal Aggarwal
Designation :	Director
Name :	Mr. K. M. S. Nambiar
Designation :	Director
Name :	Dr. N. D. Aggarwal
Designation :	Director
Name :	Dr. R. S. Bedi
Designation :	Director
Name :	Dr. H. P. S. Chawla
Designation :	Director
Name :	Dr. S. K. Mathur
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Amit Tarafder
Designation :	Vice President (Finance)
Name :	Mr. R. K. Sood
Designation :	Company Secretary
Name :	P. K. Goklaney and Company
Designation :	Advocates
Address :	38, Sector 16-A, Chandigarh, Punjab, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9,323,585	22.11
Bodies Corporate	9,064,721	21.49
Sub Total	18,388,306	43.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	18,388,306	43.60
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4,500	0.01
Financial Institutions / Banks	500	-
Insurance Companies	996,900	2.36
Foreign Institutional Investors	704,209	1.67
Sub Total	1,706,109	4.04
(2) Non-Institutions
Bodies Corporate	7,929,863	18.80
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	12,221,025	28.97
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,665,511	3.95
Any Others (Specify)	267,556	0.63
Non Resident Indians	267,556	0.63
Sub Total	22,083,955	52.36
Total Public shareholding (B)	23,790,064	56.40
Total (A)+(B)	42,178,370	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	42,178,370	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Active Pharmaceutical Ingredients.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Injections, Eye/ Ear Drops	Liters	195024.87
Tablets	Nos./ Lacs	18086.36
Capsules	Nos./ Lacs	4792.08
Liquids/ dry Syrup	Liters	3006910.61
Onitments	Kgs	448423.43
Medical Equipments	No	0.000
Others	--	0.000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank

Sector 28, Chandigarh, Punjab, India

State Bank Of India

Industrial Estate Branch, Industrial Area-I, Chandigarh, Punjab, India

Canara Bank

Sco 311-314, Sector 35-B, Chandigarh, Punjab, India

State Bank Of Patiala

(Commercial Branch), SCO 103-107, Sector 8-C, Chandigarh, Punjab, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loans from Banks and Financial Institutions are secured by way of Equitable Mortgage of Immovable Properties Hypothecation of Plant and Machinery, Vehicles, and second charge on Equipments, Utilities, Other Fixed Assets, Current Assets and personal guarantee of Directors.	1998.992	1791.823
Bank Borrowings for working Capital are Secured by a Pari-Passu, first charge by way of hypothecation of the company’s current assets, namely, Stocks of Raw Materials, Semi Finished, Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable Stores and Spares), Bills Receivable & Book Debts and all other movables of the Company both present and future excluding such movables as may be permitted by the said Banks from time to time. The said facility is further secured by way of pari passu second charge on the company’s immovable and movable properties (other than current assets) and personal guarantees of Directors.	2944.573	2417.478
Total	4943.565	4209.301
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Fixed Deposit from Public	638.927	620.884
From Others	405.346	359.316
Total	1044.273	980.200

Banking Relations :	--
Auditors :
Name :	J. K. Jain and Associates Chartered Accountants
Address :	S.C.O. 1132-33, Sector 22-B, Chandigarh 1-60022, Punjab, India
Associates :	· Essix Biosciences Limited · IND Swift Laboratories Limited · Mansa Print and Publishers Limited · Fortune India Construction Limited · 3 M Advertising and Publishers Limited · Swift Fundamental Research and Education Society

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Share	Rs.2/- each	Rs.150.000 Millions
2500000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.250.000 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42178370	Equity Share	Rs.2/- each	Rs.84.357 Millions
1420000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.142.000 Millions
	Total		Rs.226.357 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		226.357	74.357	74.357
2] Advance against Share Capital		0.000	242.000	240.000
3] Zero Coupon Convertible Warrants		70.000	25.000	0.000
4] Share Application Money		0.000	0.000	0.000
5] Reserves & Surplus		3001.729	2456.737	2101.224
6] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3298.086	2798.094	2415.581
LOAN FUNDS
1] Secured Loans		4943.565	4209.301	3098.781
2] Unsecured Loans		1044.273	980.200	759.009
TOTAL BORROWING		5987.838	5189.501	3857.790
DEFERRED TAX LIABILITIES		241.314	226.593	209.216
TOTAL		9527.238	8214.188	6482.587
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2066.475	2112.627	1471.464
Capital work-in-progress		1610.786	915.705	1054.207
INVESTMENT		455.748	340.999	303.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4717.450	3689.727	2809.526
	Sundry Debtors	2316.240	1947.703	1629.496
	Cash & Bank Balances	367.807	524.019	229.601
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	682.479	569.399	377.598
Total Current Assets		8083.976	6730.848	5046.221
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2401.152	1737.924	1478.985
	Other Current Liabilities	337.295	226.200	112.849
	Provisions	106.215	82.527	63.925
Total Current Liabilities		2844.662	2046.651	1655.759
Net Current Assets		5239.314	4684.197	3390.462
MISCELLANEOUS EXPENSES		154.915	160.660	262.954
TOTAL		9527.238	8214.188	6482.587

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sale of finished Products	8658.255	6711.957	5805.064
		Technology Transfer Fee	123.273	102.507	85.000
		Other Income	206.400	79.870	45.848
		TOTAL (A)	8987.928	6894.334	5935.912
Less	EXPENSES
		Cost of Materials Consumed	6738.672	5197.156	4368.626
		Manufacturing Expenses	217.595	171.601	165.142
		Administrative Expenses	250.972	212.160	191.036
		Selling and Distribution Expenses	388.235	298.439	260.121
		Research and Development Exp.	5.249	7.314	7.834
		Loss on Sale of Assets	0.717	0.000	0.146
		Misc. Expenditure W/off.	66.852	73.027	75.333
		TOTAL (B)	7668.292	5959.697	5068.238
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1319.636	934.637	867.674
Less	FINANCIAL EXPENSES (D)		716.410	429.920	368.112
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		603.226	504.717	499.562
Less/ Add	DEPRECIATION/ AMORTISATION (F)		155.139	121.498	94.748
	PROFIT BEFORE TAX (E-F) (G)		448.087	383.219	404.814
Less	TAX (H)		13.570	16.069	27.432
	PROFIT AFTER TAX (G-H) (I)		434.517	367.150	377.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1248.324	1048.572	838.588
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	15.612	14.871	14.871
		Proposed Dividend on Preference Shares	0.023	0.000	0.000
		Tax on Dividend	2.597	2.527	2.527
		Dividend Profit Trfd. to General Reserve	150.000	150.000	150.000
	BALANCE CARRIED TO THE B/S		1514.609	1248.324	1048.572
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	698.411	306.362	110.386
		Technology Transfer Fees	122.263	72.507	83.277
		Other Income	1.366	16.594	0.000
	TOTAL EARNINGS		822.040	395.463	193.663
	IMPORTS
		Raw Materials	393.026	243.297	109.081
		Packing Materials/ Consumables	12.298	5.037	0.000
		Equipment	1.181	36.550	15.772
	TOTAL IMPORTS		406.505	284.884	124.853
	Earnings Per Share (Rs.)
	Basis		11.13	9.88	10.19
	Diluted		10.87	9.70	10.19

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	2540.810	2447.120
Total Expenditure	2170.600	2131.010
PBIDT (Excl OI)	370.210	316.110
Other Income	1.980	11.240
Operating Profit	372.190	327.350
Interest	169.750	175.150
Exceptional Items	0.000	0.000
PBDT	202.440	152.200
Depreciation	44.010	40.480
Profit Before Tax	158.430	111.720
Tax	5.000	2.500
Provisions and contingencies	0.000	0.000
Profit After Tax	153.430	109.220
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	153.430	109.220

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.83	5.33	6.36
Net Profit Margin (PBT/Sales)	(%)	5.18	5.71	6.97
Return on Total Assets (PBT/Total Assets}	(%)	4.41	4.33	6.21
Return on Investment (ROI) (PBT/Networth)		0.14	0.14	0.17
Debt Equity Ratio (Total Liability/Networth)		2.68	2.59	2.28
Current Ratio (Current Asset/Current Liability)		2.84	3.29	3.05

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The sales revenue and other income for the year at Rs.8987.900 Millions is up from Rs. 6894.300 Millions in the previous year. Profit Before tax is Rs.448.100 Millions (previous year Rs. 383.200 Millions), profit after tax is Rs.434.500 Millions as compared to Rs. 367.100 Millions in the previous year.

GLOBAL BUSINESS UNIT

During the past fiscal, Global Business Unit of the company continued its journey towards growth. They have been creating and achieving milestones year after year. The GBU achieved a growth of 38% during last year. They plan to increase their revenue by approximate 19 Mn USD in the current fiscal year thereby achieving a growth of 50% over previous year. GBU underwent successful National Health Surveillance Agency (ANVISA) Brazil audit and is expecting the approval very soon. GBU also got Gulf Co-operative Council (GCC) approval certificate and registration of products has commenced across gulf Countries.

FORMULATION BUSINESS

In the formulation business, they have continued adding new territories and register new products in the already operational territories. They have also undertaken major initiative in developing more products and expanding their product portfolio. Their mission of adding new and interesting products to their portfolio is continuing. They have established tie-ups with new partners in many countries such as Uzbekistan, Georgia, Ethiopia, Malaysia, Singapore, Algeria, Oman and Bahrain and the operations are now being initiated with new set ups.

DOMESTIC BUSINESS

In order to further strengthen Company`s position in domestic as well as International market, and to further allow more penetration in pharmaceutical market, the company has shifted it`s entire marketing operations to Mumbai. The company has taken this strategic decision, as Mumbai provides a competitive market for pharmaceutical industry; growth trends are very favourable, along with the availability of skilled manpower. The results can be clearly seen as their ethical and generic divisions have seen around 30% growth as compared to last year. During the year, the company has launched six divisions viz Generic, Oncrit, Megaswift, Gynoswift, Q-Den and Cardia Swift which are dedicated to almost all the major therapeutic segments. Apart from this they have launched new product range in all the new divisions including monopolistic products. Two new divisions in the segment of Neutraceuticals and Over the Counter Products (OTC) are also in the pipeline.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERALL SCENARIO

According to IMS Health in a recently released report, IMS Market Prognosis, it is forecasted that the global pharmaceutical market will experience 5% to 7% growth in the coming year, compared with only 4% to 5% in 2010. The growth will result in an overall market value of $880 billion. It estimates that after a rather sluggish 2010, the global pharmaceutical market is expected to rebound in 2011. The Indian Pharmaceutical Industry today is in the front rank of India`s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. Most of the medicines are now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. As per a report by IMS Health India, the Indian pharmaceutical market reached US$ 10.04 billion in size in July 2010. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. According to an estimate by McKinsey and Company, the Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020. In the same report, it was also mentioned that in an aggressive growth scenario, the pharma market has the further potential to reach US$ 70 billion by 2020 .India`s population is growing rapidly, as is its economy - creating a large middle-class able to afford western medicines. India`s epidemiological profile is also changing and the population is ageing, so demand is likely to increase for drugs for cardio-vascular problems, disorders of the central nervous system and other chronic diseases such as diabetes which is increasing at an alarming rate.

OUTLOOK

The company is well positioned in the emerging business scenario with a clear objective to enhance market share in the domestic and select International markets.

INTERNAL CONTROL SYSTEMS

The Company maintains a system of well established policies and procedures for internal control of operations and activities, and these are continually reviewed for effectiveness. The internal control system is supported by qualified personnel and a continuous program of internal audit. The prime objective of such audits is to test the adequacy and effectiveness of all internal control systems laid down by the management and to suggest improvements. They believe that the company`s overall system of internal control is adequate given the size and nature of operations and effective implementation of internal control self assessment procedures. The Company encourages and recognizes improvements in work practices. The internal control system of the company is also reviewed by the Audit Committee periodically.

OVERVIEW

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. The management accepts responsibility for the integrity and objectivity of these financial statements as well as for various estimates and judgments used therein. These estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the statements reflect, in a true and fair manner, the state of affairs and profits for the year. This report may also contain certain statements that the company believes are or may be considered to be `forward looking statements` which are subject to certain risks and uncertainties.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Lab Equipment

· Vehicles

· Office Equipment

· Furniture and Fixture

WEBSITE DETAILS:

PROFILE:

Subject is Chandigarh based pharmaceutical company, established in 1986 with a mission of winning global customers through innovative pharmaceutical products. Three visionaries Jains, Mehtas and Munjals, dedicated themselves to work for humanity’s quest for longer, happier and healthier lives. Subject has been ranked 35th among top Indian Pharmaceutical companies. Subject is ISO 9001-2008, WHO GMP certified and is listed on Bombay Stock Exchange and National Stock Exchange . They ensure value for money by developing innovative, therapies and process to produce safe effective and consistent quality pharmaceutical products delivering across the globe. Subject is a research driven forward looking pharmaceutical company having world class expertise in finished goods dosage and active pharmaceutical ingredients (API’s)and herbal products. Subject is proud to be the second largest drug manufacturers of North India. Subject multipurpose, multilocation manufacturing set-ups are spread across the lush-green plains of northern India. The facilities are built according to current guidelines of MHRA, EU, WHO, and accreditations with ISO 14000 series standards. With strong network presence in more than 45 countries they are committed to provide quality medicines and better health care.

The company has dedicated research and development department well equipped with the latest equipments and supported by a large pool, of scientists who continuously work towards new pharma products.

Apart from being among top Indian pharma companies, Company has also progressively embarked in diversification into multifarious fields viz Infrastructure, Printing Packaging and Stationery, Education, and Media Publication with its every unit as an independent profit earning centre. Subject they are committed to give their unflinching efforts, support and dedication for the service of humanity “Because Life is precious”

HISTORY:

Subject is the fastest flying bird on earth. It is the philosophy behind the genesis of the name Ind-Swift Limited Incepted in 1986, three visionaries the Mehtas, the Munjals and the Jains, all 1st generation entrepreneurs visualized the business. Even with limited resources, the vision was to develop a Pharma enterprise with its body spread internationally and soul rooted in ethics. Management structure is well defined, with roles and responsibilities among promoters clearly laid out Ownership pattern between the promoters began equal and remains equal.

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.51.83
UK Pound	1	Rs.79.42
Euro	1	Rs.65.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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.