MIRA INFORM REPORT

Report Date :

18.01.2012

IDENTIFICATION DETAILS

Name :	EPP COMPOSITES PRIVATE LIMITED
Formerly Known As :	ELASTO POLYMER PROCESSORS (GUJARAT) PRIVATE LIMITED
Registered Office :	Plot No.2646, Kranti Gate Main Road, G.I.D.C. Lodhika Industrial Estate, Metoda, Rajkot – 360 021, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.03.2004
Com. Reg. No.:	04-043790
Capital Investment / Paid-up Capital :	Rs.23.186 millions
CIN No.: [Company Identification No.]	U25209GJ2004PTC043790
IEC No.:	2494003415
TAN No.: [Tax Deduction & Collection Account No.]	RKTE00192D
PAN No.: [Permanent Account No.]	AABCE2957Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cooling Towers, Chemical Plant Machinery, Industrial Plants Machines and Plastic Pipe.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 445000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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.

INFORMATION PARTED BY

Name :	Mr. Devanshu Joshi
Designation :	Senior Finance Manager
Contact No.:	91-2827-287059
Date :	18.01.2012

LOCATIONS

Registered Office/ Factory 1 (GRP Piping Division) :	Plot No.2646, Kranti Gate Main Road, G.I.D.C. Lodhika Industrial Estate, Metoda, Rajkot – 360 021, Gujarat, India
Tel. No.:	91-2827-287059-60-61
Fax No.:	91-2827-287063
E-Mail :	finance@epp.co.in marketing@epp.co.in info@epp.co.in
Website :	http://www.epp.co.in
Area :	80000 sq ft
Location :	Owned
Factory 2 (Chemical Plants and Equipment Division) :	Plot No. 1934/5, Road No. 07-B, Off Almighty Gate Main Road, GIDC Lodhika Industrial Estate, Kalawad Road, Metoda, Rajkot – 360 021, Gujarat, India
Factory 3 (Building Products Division) :	Atika Rubber Mills Compound, Atika Industrial Area, Road No.1, Dhebar Road (South), Rajkot – 360 002, Gujarat, India
Factory 4 (Pultrusion Division) :	Plot No.2221, Kranti Gate Main Road, GIDC Lodhika Industrial Estate, Kalawad Road, Metoda, Rajkot – 360 021, Gujarat, India
Factory 5 (CFW Division) :	Near Lafarg Concret Plate, Beside Lizzat Papad, Haripar Pal, Rajkot, Gujarat, India
Branch Office 1 :	A-813, Safal Pegasus, 100 Ft Road, Near Prahladnagar Garden, Prahladnagar, Satellite, Ahmedabad – 380 015, Gujarat, India
Tel. No.:	91-79-40060239
Branch Office 2 :	604, Wellington Business Park – 1, A.K. Road , Marol , Andheri (East) Mumbai – 400 093, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Siddharth Sumankumar Shah

Designation :

Whole Time Director

Address :

“Maan”, Opposite Nirmala Convent Road, 5, Saurashtra Kala Kendra Society, Rajkot - 360 005, Gujarat, India

Date of Birth/Age :

04.12.1962

Qualification :

B.E. (Mechanical)

Experience :

26 Years

Date of Appointment :

01.05.2010

DIN No.:

00034906

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	U25191GJ1970PTC001684	Atika Rubber Mills Private Limited	Director	27-08-91	27-08-91	Active	NO
2	U25209GJ2002PTC040368	Atika Reinforced Plastic Products Private Limited	Director	17-01-02	17-01-02	Active	NO
3	U25209GJ2004PTC043790	EPP Composites Private Limited	Whole-time director	01-05-10	15-03-04	Active	NO
4	U45201GJ2010PTC061360	EPP Engineering and Infrastructure Private Limited	Director	29-06-10	29-06-10	Active	NO
5	U25200GJ2011PTC063827	Rotec EPP Composites Private Limited	Director	27-01-11	27-01-11	Active	NO

Name :

Mr. Jayraj Sumankumar Shah

Designation :

Managing Director

Address :

“Maan”, Opposite Nirmala Convent Road, 5, Saurashtra Kala Kendra Society, Rajkot - 360 005, Gujarat, India

Date of Birth/Age :

24.09.1966

Qualification :

B. Sc. (Physics)

Experience :

25 Years

Date of Appointment :

01.05.2010

DIN No.:

00034964

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	U25191GJ1970PTC001684	Atika Rubber Mills Private Limited	Director	27-08-91	27-08-91	Active	NO
2	U25209GJ2002PTC040368	Atika Reinforced Plastic Products Private Limited	Director	17-01-02	17-01-02	Active	NO
3	U25209GJ2004PTC043790	EPP Composites Private Limited	Managing director	01-05-10	15-03-04	Active	NO
4	U45201GJ2010PTC061360	EPP Engineering and Infrastructure Private Limited	Director	29-06-10	29-06-10	Active	NO
5	U25200GJ2011PTC063827	Rotec EPP Composites Private Limited	Director	27-01-11	27-01-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Devanshu Joshi
Designation :	Senior Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Siddharth Sumanbhai Shah	80687
Jayraj Sumanbhai Shah	81545
Sumanbhai Naginbhai Shah	12607
Kolkilaben Sumanbhai Shah	13175
Sonal Siddharth Shah	13875
Priti Jayraj Shah	12950
Sumanbhai Naginbhai Shah - Karta of Suman N. Shah (HUF)	5642
Siddharth Sumanbhai Shah – Karta of Siddharth S. Shah (HUF)	1422
Jayraj Sumanbhai Shah – Karta of Jayraj S. Shah (HUF)	6105
Raj Siddharth Shah	3850
Total	231858

As on 07.10.2011

Names of Allottees	No. of Shares
Siddharth Sumanbhai Shah	14286
Jayraj Sumanbhai Shah	14286
Total	28572

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cooling Towers, Chemical Plant Machinery, Industrial Plants Machines and Plastic Pipe.
Products :	v GRP / GRE Pipe Products v Chemical Equipment Products v Building Products v Electrical Products v Prefab and Pre-Engineering  Products v Cooling Tower Products
Brand Names :	ATIKA
Exports :
Products :	v GRP / GRE Pipe Products v Chemical Equipment Products v Building Products v Electrical Products v Prefab and Pre-Engineering  Products v Cooling Tower Products
Countries :	Europe
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	L/C
Purchasing :	L/C

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Production Qty.
GRP Pipes and Fittings	Rmt	1440000	194552
Others	--	N.A.	505958
Total			700510

GENERAL INFORMATION

Suppliers :

v Jushi (India) FRP Accessories Private Limited

Customers :

Chemical Industry / Project Contractor

v Reliance India Limited

v S.R. Oil Limited

v Larsen and Toubro Limited

No. of Employees :

600 (Approximately)

Bankers :

v Karur Vysya Bank, Rajkot, Gujarat, India

v Axis Bank Limited, Rajkot, Gujarat, India

v Kotak Mahindra Bank Limited

Facilities :

Cash Credit – Rs.130.000 millions (Karur Vysya Bank)

Cash Credit – Rs.20.000 millions (Axis Bank Limited)

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Vehicle Term Loan from The Karur Vysya Bank Limited (Secured by Hypothecation of vehicles and cars)	0.327	0.720
Vehicle Term Loan from Kotak Mahindra Prime Limited (Secured by Hypothecation of vehicles, hydra and cars)	3.745	4.158
Term Loan from The Karur Vysya Bank Limited (Secured by Mortgage of Building and Hypothecation of Machinery purchased)	44.475	40.053
Long Term Assistance from T I F A C (Secured by Hypothecation of Machineries)	8.979	11.296
Term Loan from Cholamandalam DBS Finance Limited (Secured by personal guarantee of Directors)	0.000	0.721
Term Loan from Kotak Mahindra Bank Limited (Secured by personal guarantee of Directors)	0.707	0.350
Term Loan facilities from Axis Bank	5.410	0.000
Sub Debt from Small Industrial Bank of India (Secured by subservient charge on all assets of the Company)	32.000	0.000
Cash Credit facilities from Axis Bank (Secured by Hypothecation of all assets of Company and mortgage of Factory Land and Building and Directors' Personal Guarantee - Consortium finance with KVB)	14.810	0.000
Cash Credit facilities from Karur Vysya Bank (Secured by Hypothecation of all assets of Company and mortgage of Factory Land and Building and Directors' Personal Guarantee - Consortium finance with Axis Bank)	125.051	70.027
Total	235.504	127.325

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	3.339	0.000
Total	3.339	0.000

Banking Relations :	--
Financial Institution :	v Kotak Mahindra Prime Limited, 36-38A Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India v Cholamandalam DBS Finance Limited
Auditors :
Name :	Vijay Doshi and Company Chartered Accountants
Address :	211, Sterling Apartments, Opposite Alfred High School, Jawahar Road, Rajkot - 360 001, Gujarat, India
Tel. No.:	91-281-2224517
Fax No.:	91-281-2222813
Income-tax PAN of auditor or auditor's firm :	ABBPD3609G

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
260430	Equity Shares	Rs.100/- each	Rs.26.043 millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
231858	Equity Shares	Rs.100/- each	Rs.23.186 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		23.186	23.186	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		88.052	73.296	43.064
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		111.238	96.482	63.064
LOAN FUNDS
1] Secured Loans		235.504	127.325	81.234
2] Unsecured Loans		3.339	0.000	12.188
TOTAL BORROWING		238.843	127.325	93.422
DEFERRED TAX LIABILITIES		1.854	1.905	1.825
TOTAL		351.935	225.712	158.311
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		128.507	100.058	86.618
Capital work-in-progress		30.971	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.982	55.208	44.162
	Sundry Debtors	212.136	194.936	118.574
	Cash & Bank Balances	21.770	24.580	12.651
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.840	34.777	7.899
Total Current Assets		366.728	309.501	183.286
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	166.279	160.509	86.553
	Other Current Liabilities	5.393	4.689	10.273
	Provisions	3.475	18.729	14.999
Total Current Liabilities		175.147	183.927	111.825
Net Current Assets		191.581	125.574	71.461
MISCELLANEOUS EXPENSES		0.876	0.080	0.232
TOTAL		351.935	225.712	158.311

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	NET SALES		555.498	557.421	419.429
	PROFIT BEFORE TAX		15.064	37.371	36.952
Less	TAX		0.395	15.103	12.074
	PROFIT AFTER TAX		14.669	22.268	24.878
Less	APPROPRIATIONS
		Final Dividend Proposed	0.000	0.000	0.000
		Transfer to Reserve	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		14.669	22.268	24.878
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	32.232	1.392	9.294
	TOTAL EARNINGS		32.232	1.392	9.294
	IMPORT VALUE		16.592	11.218	0.939
	Earnings Per Share (Rs.)		63.27	96.04	124.39

Expected Sales (2011-2012): Rs.600.000 millions

The above information has been parted by Mr. Devanshu Joshi (Senior Finance Manager).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	2.71	6.70	8.81
Return on Total Assets (PBT/Total Assets}	(%)	3.04	9.12	13.69
Return on Investment (ROI) (PBT/Networth)		0.14	0.39	0.59
Debt Equity Ratio (Total Liability/Networth)		3.72	3.23	3.25
Current Ratio (Current Asset/Current Liability)		2.09	1.68	1.64

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	--
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	166.279	160.509	86.553

Note:

The registered office of the company has been shifted form Atika Rubber Mills Compound, Atika Industrial Area, Road No.1, Dhebar Road (South), Rajkot – 360 002, Gujarat, to present address w.e.f 05.12.2006.

OPERATIONAL AND FINANCIAL REVIEW:

During the year, the Company’s overall financial performance in terms of turnover remained the same but the profit gone down as compared to previous year. Since the Company is In the process of expansion of business by establishing new units, the Company has incurred higher capital expenditure for last couple of years. It has resulted into increasing the production capacity but the sales of the Company could not be increased. On the other hand the Company had to incur the higher interest and financial cost against the bank borrowing and depreciation is also increased as compared to previous year. Hence the profit after tax is lower as compared to previous year.

FUTURE OUTLOOK:

The newly established unit resulted into a higher manufacturing capacity. All efforts are going on to increase the turnover also which will pave the way for the better financial performance in the coming years.

Contingent Liabilities not provided for:

Particulars	31.03.2011 (Rs. in millions)
Guarantees issued by Bank on behalf of the Company	31.127
LC issued by Bank on behalf of the company	58.144

FORM 8:

Name of the company	ELASTO POLYMER PROCESSORS (GUJARAT) PRIVATE LIMITED
Presented By	Mr. Siddharth S. Shah, Director
1) Date and description of instrument creating the change	Mal Mikat na Sanggiro nu karar patra (Deed fo Agreement for Hypothecation of Goods and Assets) Agreement of Hypothecation of Movables Deed of Agreement and Letter of Continuing Security All dated 27.09.2004 and constituting a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.20.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation over all Socks of Raw Materials. Semi Finished Goods or finished goods, movables, assets and machineries of the Company which are now or here after from time to time during the continuance of this credit facility may be bought or acquired by the company and more particularly as per the list attached to the agreements Equitable Mortgage on Land of the Company admeasuring 536.80 Mtrs. Situated at Village. Kotharia bearing sale deed No. 6222 along with the Building or Factory Shed etc. constructed or to be constructed thereon.
4) Gist of the terms and conditions and extent and operation of the charge.	ROI: 16% p.a. Repayment : Repayable on demand subject to renew on 27.09.2005
5) Name and Address and description of the person entitled to the charge.	JIVAN COMMERCIAL CO-OPERATIVE BANK LLIMITED, “Vitalay” Dhebarbhai Road, Rajkot
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

This form is for	Modification of charge
Charge identification number of the modified	80006637
Corporate identity number of the company	U25209GJ2004PTC043790
Name of the company	EPP COMPOSITES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.2646, Kranti Gate Main Road, G.I.D.C. Lodhika Industrial Estate, Metoda, Rajkot – 360 021, Gujarat, India
Type of charge	Book Debts Immovable Property Floating Charge Others
Particular of charge holder	The Karur Vysya Bank Limited, R.G.C. Complex, Rajkot – 360 001, Gujarat, India
Nature of description of the instrument creating or modifying the charge	Agreement for Credit Facilities Agreement of Hypothecation of Movables Confirmation of Deposit of Title Deeds
Date of instrument Creating the charge	15.03.2007
Amount secured by the charge	Rs.49.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For OCC and its sub limit CCBD and Term Loan, The rate of interest is 13.00% per annum and for ILC/FLC on Bank Guarantee as per C.O. Circular Terms of Repayment OCC and it sub CCBD is repayable on demand subject to review every year and term loan to be repaid in 36 months Margin For OCC and Term Loan- 25%, For CCBD – 50% and for ILC/ FLC and Bank Guarantee 50% Extent and Operation of the charge The charge by way of hypothecation and Equitable Mortgage extends as security for the enhanced facility of Rs.49.000 Millions as under. OCC Rs.24.000 Millions (sub Limit CCBD-10.000 Millions), Machinery Term Loan – Rs.5.000 Million ICL/FLC Rs.10.000 Millions and Bank Guarantee Rs.10.000 Millions Others As per documents executed by the borrower from time to time.
Date of latest modification prior to the present modification	07.07.2006
Particulars of the present modification	The present limit of Rs.28.300 Millions is enhanced to Rs.49.000 Millions additional properties offered as security and accordingly the charge by way of hypothecation and Equitable mortgage on the assets offered as security extends a security for the enhancement facility of Rs.49.000 Millions as under. OCC Rs.24.000 Millions (Sub Limit CCBD-10.000 Millions) Machinery Term Loan Rs.5.000 Millions ILC/ FLC Rs.10.000 Millions Bank Guarantee Rs.10.000 Millions

TRADE REFERENCES:

v Reliance India Limited

v S.R. Oil Limited

v Larsen and Toubro Limited

FIXED ASSETS:

v Plots of Land

v Building Construction

v Machineries

v Lab Equipments

v Furniture

v Electric Fitting and Installation

v Computers and Others

v Air Conditioner

v Telephone Instrument

v Motor Car and Others

v Pattern and Fixtures

v Factory and Office Miscellaneous Assets

v SAP System and Software A/c

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.51.07
UK Pound	1	Rs.78.48
Euro	1	Rs.65.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.