MIRA INFORM REPORT

Report Date :

14.01.2012

IDENTIFICATION DETAILS

Name :	INTERNATIONAL FLAVOURS AND FRAGRANCES INDIA PRIVATE LIMITED (w.e.f 15.10.2008)
Formerly Known As :	INTERNATIONAL FLAVOURS AND FRAGRANCES INDIA LIMITED
Registered Office :	1-5, Seven Wells Street, St. Thomas Mount, Chennai – 600 016, Tamilnadu
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	18.11.1931
Com. Reg. No.:	18-000112
Capital Investment / Paid-up Capital :	Rs.80.083 Millions
CIN No.: [Company Identification No.]	U24294TN1931PTC000112
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Creator of Flavours (Flavouring Essences and Ancillaries and Synthetic Food Colour Preparation) and Fragrances (Formulated perfumery Compounds).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 5833000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for good 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 :	1-5, Seven Wells Street, St. Thomas Mount, Chennai – 600 016, Tamilnadu, India
Tel. No.:	91-44-22341131
Fax No.:	91-44-22346158/ 22341135/ 22346017
E-Mail :	Chandy.tambi@iff.com IFF.India@iff.com
Website :	www.iff.com
Fragrance Plant :	Located at: v Thirumudivakkam, Chennai
Branch Office :	Located at: v Bangalore v Andhra Pradesh v Jammu v Kolkata v Mumbai v New Delhi

DIRECTORS

As on 29.06.2011

Name :

Mr. Sridhar Balakrishnan

Designation :

Managing Director

Address :

5 'Sudarsana', 32 1^st Main Road, Raja Annamalai Puram, Chennai - 600 028, Tamilnadu, India

Date of Birth/Age :

04.04.1956

Qualification :

B.Com., F.C.A., F.C.S.

Experience :

31 Years

Date of Appointment :

01.06.1999

DIN No.:

00024327

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24294TN1931PTC000112	International Flavours and Fragrances India Private Limited	Managing director	01-06-09	01-06-99	Active	NO
2	U31501TN1977PTC007355	Hindustan Flavours and Fragrances (International) Private Limited	Director	20-04-09	20-04-09	Amalgamated	NO

Name :

Mr. Jeroen Henricus Maria Van Noorden

Designation :

Director

Address :

Paulus Potterlaan 4 3723 Ez Bilthoven, The Netherlands

Date of Birth/Age :

22.12.1960

Date of Appointment :

13.12.2003

DIN No.:

00025172

Name :

Mr. Chandy Cheeran Thambi

Designation :

Whole Time Director

Address :

A4 'Vinay Vihar', 2 New Beach Road Tiruvalluvar Nagar, Tiruvanmiyur, Chennai - 600 041, Tamilnadu, India

Date of Birth/Age :

04.02.1960

Date of Appointment :

01.07.2009

DIN No.:

02427708

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31501TN1977PTC007355	Hindustan Flavours and Fragrances (International) Private Limited	Director	20-04-09	20-04-09	Amalgamated	NO
2	U24294TN1931PTC000112	International Flavours and Fragrances India Private Limited	Whole-time director	01-07-09	01-07-09	Active	NO

Name :

Mr. Eduardo III Dagondon Alejandrino

Designation :

Director

Address :

10, 1600 Ling Bai Road, PUdong New Area, Shanghai 201201

Date of Birth/Age :

31.10.1963

Date of Appointment :

07.07.2010

DIN No.:

03143191

KEY EXECUTIVES

Name :	Mr. Chandy Cheeran Thambi
Designation :	Secretary
Address :	A4 'Vinay Vihar', 2 New Beach Road Tiruvalluvar Nagar, Tiruvanmiyur, Chennai - 600 041, Tamilnadu, India
Date of Birth/Age :	04.02.1960
Date of Appointment :	01.02.1994
PAN No.:	AAAPT3381M
	Employed throughout the financial year :
Name :	Kumaraswamy M D V
Designation :	Vice President (Flavour Sales)
Date of Birth/Age :	51 Years
Qualification :	B.A., MBA
Experience :	30 Years
Date of commencement of employment :	01.10.1985
Name :	Ramu S.
Designation :	Vice President Technical (Flavour)
Date of Birth/Age :	58 Years
Qualification :	B.Sc.
Experience :	36 Years
Date of commencement of employment :	02.01.1975
	Employed for part of the financial year :
Name :	Ahmed Sameer
Designation :	Operations Manager
Date of Birth/Age :	36 Years
Qualification :	B.E.
Experience :	16 Years
Date of commencement of employment :	04.11.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.06.2011

Names of Shareholders	No. of Shares
Bush Boake Allen Limited, U.K.	3990502
A. Boake, Roberts and Company (Holding) Limited, U.K.	1345872
Raghavan Sushil Pillai Nita Pillai	69440
Raymond Ajit Pillai Binita Pillai	69440
Jayashree S. Bhan Master Amey Bhan	41400
Elizabeth Philomena Marie Paes	40757
Yezdi F. Unvala	34720
Preeti Nitin Gaitonde Uma Narendra Kaikini Lt. Col. Narendra Laxman Kaikini	14256
Uma Narendra Kaikini Neeti Narendra Kaikini Lt. Col. Narendra Laxman Kaikini	28512
Janaki Gopal Bhandarkar Gopal Kashinath Bhandarkar Prasad Gopal Bhandarkar	28512
Janaki Gopal Bhandarkar Gopal Kashinath Bhandarkar Aditya Gopal Bhandarkar	28512
A. Ramana Rao	20720
Bhavani S. Rao	20720
Kanwal Kumar Khanna	20295
Bernard Michael Paes Mathias Anthony Estanislau Paes	14470
Mathias Anthony Estanislau Paes Bernard Michael Paes	11320
Lakshmi Nori	11032
Rashmi N. Hirani Narendra K. Hirani	8774
Christopher Joseph John Paes Mathias Anthony Estanislau Paes	8597
Sawraj Mehra	8080
Kashinath N.Dandekar	7488
Hansa L Hirani	3426
V S Sunder Sita Sunder	2000
Narendra K. Hirani Rashmi N. Hirani	5694
P. Prameela P.L. Reddy	5385
Hansa L. Hirani Amit L. Hirani	3362
Subha Sundaram	2450
B.R. Jawaharlal J. Anusuya	1600
T.N. Viswanathan Lathika Viswanathan	1600
K. Nagaraj K. Amritha Nagaraj	1280
Jayanthi Rajaram	1150
Latha Krishnaiyer	760
Padma Ramanathan Latha Krishnaiyer	760
Omana Mathew Annamma Mathew	260
P.K. Zeenath Afraz Rahim	140
P.K. Mohammed Abdullah	140
P.K. Nasser Abdullah	120
B. Harish Mallya Asha Mallya	100
S. Savithri V.S. Subramanian	28
International Flavors and Fragrances (Mauritius) Limited, Republic of Mauritius	2140376
Neeti Narendra Kaikini Uma Narendra Kaikini Lt. Col. Narendra Laxman Kaikini	14256
Total	8008306

As on 29.06.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	96.49
Other top fifty shareholders	3.51
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Creator of Flavours (Flavouring Essences and Ancillaries and Synthetic Food Colour Preparation) and Fragrances (Formulated perfumery Compounds).

Products :

Item Code No.	Product Description
3302.10.10	Flavouring Essences
3302.90.11	Formulated Perfumery Compounds
3204.19.81-90	Synthetic Food Colour Preparations

PRODUCTION STATUS (AS ON 31.12.2010)

Particulars	Unit	Period ended December 31, 2010
Licensed capacity
Flavouring Essences and Ancillaries		Not applicable
Formulated Perfumery compounds		Not applicable
Installed capacity
Flavouring Essences and Ancillaries		On a review of the technical aspects of the capacity it is considered by the management that the installed capacity is not determinable
Formulated Perfumery compounds
Actual Production*
Flavouring essences and ancillaries – Litres		8,248,048
Formulated perfumery compounds – Kilos		3,259,758

* Actual Production is net of captive consumption, goods destroyed and includes goods processed by outside parties.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Bank of Baroda, 252-A, T.T.K. Road, Chennai – 600 018, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India
PAN No.:	AAEFP3641G
Ultimate Holding Company :	International Flavors and Fragrances Inc. U.S.A. *
Subsidiaries :	Hindustan Flavours and Fragrances (International) Private Limited CIN No.: U31501TN1977PTC007355
Fellow Subsidiaries :	v International Flavors and Fragrances I.F.F. (Nederland) B.V. * v International Flavors and Fragrances EAME CV v International Flavors and Fragrances I.F.F. (Nederland) International B.V. v International Flavours and Fragrances (GB) Holdings Limited v Aromatics Holdings Limited v IFF International Inc. v IFF-Benicarlo, S.A. * v IFF Financial Services v International Flavours and Fragrances (China) Limited * v International Flavors and Fragrances Gibraltar Holding (Luxembourg) SCS v Irish Flavours and Fragrances Limited * v IFF Capital Services v International Flavours and Fragrances v I.F.F. (Great Britain) Limited * v IFF Australia Holdings Pty Limited v International Flavors and Fragrances I.F.F. (Italia) S.r.l. v IFF Chemical Holdings Inc. v International Flavors and Fragrances I.F.F. (Deutschland) G.m.b.H. v IFF (Gibraltar) Holdings v International Flavors and Fragrances I.F.F. (Switzerland) A.G. v IFF Mexico Holdings LLC v International Flavors and Fragrances I.F.F. (France) SAS * v IFF Latin American Holdings (España) SL v International Flavors and Fragrances (Hong Kong) Limited v IFF Augusta Limited v International Flavors and Fragrances (Japan) Limited * v Fragrance Ingredients Holdings Inc. v International Flavors and Fragrances S.A.C.I. * v Bush Boake Allen Inc. v I.F.F. Essencias e Fragrancias Ltda. * v Bush Boake Allen (Chile) S.A. v International Flavours and Fragrances (Australia) Pty. Limited * v Bush Boake Allen Industria E Commercial do Brasil Limitada v P.T. Essence Indonesia * v Bush Boake Allen Controladora S.A. de C.V. v International Flavors and Fragrances (Mexico), S. de R.L. de C.V. * v Bush Boake Allen (Nominees) Limited v IFF Mexico Manufactura, S.A. de C.V. v Bush Boake Allen Holdings (U.K.) Limited v International Flavors and Fragrances v I.F.F. (Espana) S.A. v Bush Boake Allen Pension Investments Limited v International Flavors and Fragrances (Poland) Sp.z.o.o. v Bush Boake Allen (Pension Trustees) Limited v International Flavors and Fragrances (Hangzhou) Company Limited * v Bush Boake Allen Limited * v International Flavors and Fragrances (Zhejiang) Company, Limited * v Bush Boake Allen Australia Pty Limited v International Flavors and Fragrances I.F.F. (S.A.) (Pty) Limited * v Boake, Roberts and Company (Holding), Limited * v International Flavors and Fragrances I.F.F. (Canada) Limited v Bush Boake Allen (New Zealand) Limited v Alva Insurance Limited v International Flavours and Fragrances (New Zealand) Limited v van Ameringen-Haebler, Inc. v International Flavors and Fragrances Singapore Pte. Limited * v International Flavors and Fragrances (Caribe) Inc. v Bush Boake Allen Zimbabwe (Private) Limited v Sabores y Fragrancias S.A. v Bush Boake Allen (Jamaica) Limited v IFF Sabores y Fragrancias de Chile Ltda. v Bush Boake Allen Benelux B.V. v IFF Aroma Esans Sanayi Ve Ticaret A.S. * v International Flavors and Fragrances I.F.F. (Norden) AB * v International Flavors and Fragrances I.F.F. (Israel) Limited v Bush Boake Allen Pakistan (Private) Limited v Misr Company for Aromatic Products (MARP) S.A.E. v Asian Investments, Inc. v International Flavors and Fragrances I.F.F. (Portugal) Lds. v Fragrance Holdings Private Limited v International Flavors and Fragrances (Zimbabwe) (Private) Limited v Essence Scientific Research Private Limited v International Flavours and Fragrances (Mauritius) Limited * v Jamaica Extracts Limited v International Flavors and Fragrances (Philippines) Inc. v Bush Boake Allen Barbados Inc. v International Flavors and Fragrances (Asia Pacific) Pte. Limited v Bush Boake Allen Enterprises Limited v International Flavors and Fragrances (Greater Asia) Pte. Limited v International Flavours and Fragrances (CIL) Limited v International Flavours and Fragrances (Thailand) Limited * v International Flavors and Fragrances I.F.F. (Middle East) FZE * v International Flavors and Fragrances (Korea) Inc. v IFF Worldwide (Gibraltar) Limited v International Flavors and Fragrances (Nederland) Holding B.V. v International Flavors and Fragrances Irish Acquisition Company Limited v International Flavors and Fragrances Ardenne S.a.r.l. v International Flavors and Fragrances (Luxembourg) S.a.r.l.

* Represents related parties with whom the Company had transactions during the period

CAPITAL STRUCTURE

As on 29.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8008306	Equity Shares	Rs.10/- each	Rs.80.083 Millions

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8738908	Equity Shares	Rs.10/- each	Rs.87.389 Millions
730602	Less : 730,602 Equity Shares of Rs.10 each bought back	Rs.10/- each	Rs.7.306 Millions
	Total		Rs.80.083 Millions

Notes:	Number of shares
1. Of the total Issued and Subscribed Capital:
a) Shares allotted as fully paid - up pursuant to a contract for a consideration other than cash.	150
b) Shares allotted as fully paid - up bonus shares by way of capitalisation of General Reserve.	8116614
c) Partly paid - up equity shares of Rs.7.50 each converted as fully paid-up through capitalisation of General Reserve.	30137
d) Shares allotted as fully paid - up pursuant to Schemes of Amalgamation to the Members of the Amalgamating Companies without payments being received in cash.	258017
2. Number of Equity shares of Rs.10 each held by subsidiaries of International Flavors and Fragrances Inc U.S.A, the ultimate Holding Company.
A. Boake Roberts and Company (Holding) Limited	1345872
Bush Boake Allen Limited, U.K.	3990502
International Flavours and Fragrances (Mauritius) Limited	2140376
	7476750

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	01.01.2010	02.01.2009
SHAREHOLDERS FUNDS
1] Share Capital		80.083	80.083	80.083
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1378.211	1257.156	1191.548
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1458.294	1337.239	1271.631
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1458.294	1337.239	1271.631
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		365.696	288.867	297.226
Capital work-in-progress		9.304	58.210	17.735
INVESTMENT		0.000	0.025	0.025
DEFERRED TAX ASSETS		12.814	15.836	9.935
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	825.659	654.312	631.583
	Sundry Debtors	670.300	554.473	530.456
	Cash & Bank Balances	183.595	160.075	241.516
	Other Current Assets	0.107	0.847	0.280
	Loans & Advances	247.482	304.078	272.980
Total Current Assets		1927.143	1673.785	1676.815
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	801.586	654.224	689.539
	Other Current Liabilities	22.948	17.536	14.823
	Provisions	32.129	27.724	25.743
Total Current Liabilities		856.663	699.484	730.105
Net Current Assets		1070.480	974.301	946.710
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1458.294	1337.239	1271.631

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	01.01.2010	02.01.2009
	SALES
		Income	4689.341	3889.228	3458.674
		Other Income
		TOTAL (A)	4689.341	3889.228	3458.674
Less	EXPENSES
		Office Expenses	3543.204	3047.753	2639.421
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	3543.204	3047.753	2639.421
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1146.137	841.475	819.253
Less	INTEREST (D)		0.014	0.208	0.066
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1146.123	841.267	819.187
Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.974	43.947	41.073
	PROFIT BEFORE TAX (E-F) (G)		1094.149	797.320	778.114
Less	TAX (H)		303.022	216.399	244.800
	PROFIT AFTER TAX (G-H) (I)		791.127	580.921	533.314
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		855.403	847.887	742.677
Less	APPROPRIATIONS
		Interim Dividend Paid	580.602	440.457	320.332
		Tax on Dividend	96.431	74.856	54.440
		Transfer to General Reserve	79.113	58.092	53.332
	BALANCE CARRIED TO THE B/S		890.384	855.403	847.887
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on F.O.B. basis	358.950	311.043	301.383
		Commission	15.689	10.871	10.825
	TOTAL EARNINGS		374.639	321.914	312.208
	IMPORTS
		Raw Materials	1296.447	1125.106	709.130
		Packing Materials	1.100	1.128	1.492
		Capital Goods	8.779	18.664	0.898
	TOTAL IMPORTS		1306.326	1144.898	711.520
	Earnings Per Share (Rs.)		98.79	72.54	66.60

KEY RATIOS

PARTICULARS		31.12.2010	01.01.2010	02.01.2009
PAT / Total Income	(%)	16.87	14.94	15.42
Return on Total Assets (PBT/Total Assets}	(%)	47.72	40.62	39.42
Return on Investment (ROI) (PBT/Networth)		0.75	0.60	0.61
Debt Equity Ratio (Total Liability/Networth)		0.59	0.52	0.57
Current Ratio (Current Asset/Current Liability)		2.25	2.39	2.30

LOCAL AGENCY FURTHER INFORMATION

BUSINESS

The Company’s Sales (excluding Excise Duty) crossed Rs.4600 Millions during the year, a growth of more than 20% over the previous year. Profit After Tax increased from Rs.581 Millions in 2009 to Rs.791 Millions in 2010, a 36% increase. The Company continues to devise strategies to increase sales and improve margins in the competitive market. Operations continued to focus on supply-chain efficiencies to reduce lead-times and improve manufacturing capabilities, by making optimum use of systems and processes. The Fragrance Plant at Thirumudivakkam, Chennai has now become fully operational.

SUBSIDIARY

During the year, the subsidiary company Hindustan Flavours and Fragrances (International) Private Limited, was amalgamated with the Company.

Contingent Liability

Particulars	31.12.2010 (Rs. in millions)
Contingent liability in respect of disputed sales tax	31.730

FIXED ASSETS:

v Land and Development

v Buildings

v Plant and Machinery

v Electrical Installations

v Water Supply

v Furniture, Fixtures, Office and Laboratory Equipment

v 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.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
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	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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.