MIRA INFORM REPORT

Report Date :

13.07.2012

IDENTIFICATION DETAILS

Name :	JAIPAN INDUSTRIES LIMITED (w.e.f 10.07.1999)
Formerly Known As :	SNAIL FORGINGS LIMITED SNAIL SPANNERS (INDIA) AND TOOLS LIMITED
Registered Office :	17/1, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai-400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.04.1965
Com. Reg. No.:	11-013188
Paid-up Capital :	Rs. 60.998 Millions
CIN No.: [Company Identification No.]	L28991MH1965PLC013188
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ11224D
PAN No.: [Permanent Account No.]	AAACS5636F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on stock exchange.
Line of Business :	Manufacturer and Trader of home appliances.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 410000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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. Siddhesh
Designation :	Accounts Manager
Contact No.:	91-22-61410000
Date :	12.07.2012

LOCATIONS

Registered Office :	17/1, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai-400063, Maharashtra, India
Tel. No.:	91-22-61410000 / 26852274
Fax No.:	91-22-6691979
E-Mail :	vilas_jaipan@rediffmail.com jaipan@jaipan.com
Website :	www.jaipan.com
Corporate Office :	4/3 Sonal Apartments Sonawalla Cross Road No.1, Goregaon East, Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-8731716 / 3777 / 3456 / 0753 / 4761
Fax No.:	91-22-8738315

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Jaynarayan O Agarwal
Designation :	Chairman
Address :	Jai Villa Compound 17, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai – 400063, Maharashtra, India
Date of Birth/Age :	16.04.1954
Date of Appointment :	01.04.2004
DIN No.:	01861610
Name :	Mr. Atin Jai Agarwal
Designation :	Managing Director
Address :	Gala No 17, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai – 400063, Maharashtra, India
Date of Birth/Age :	05.09.1977
Date of Appointment :	01.09.2004
DIN No.:	01861554
Name :	Mr. Shirish Dwarkadas Gotecha
Designation :	Director
Address :	Plot B 1, Ground Floor, Row House Bets, Marve Road, Behind Marve Apartments, Malad West, Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	13.02.1956
Date of Appointment :	21.06.1999
DIN No.:	02877874
Name :	Mr. Arjunsingh Vishwanath Mehrotra
Designation :	Director
Address :	3/4, Sonal Apartments Sonawala Cross Road, No. 1, Goregaon East, Mumbai – 400063, Maharashtra, India
Date of Birth/Age :	08.05.1940
Date of Appointment :	25.03.2002
DIN No.:	03489366
Name :	Mr. Ashwini Om Prakash Sharma
Designation :	Director
Address :	A-20, Sujata Appartment, GST Road, Kalina, Mumbai – 400098, Maharashtra, India
Date of Birth/Age :	12.05.1954
Date of Appointment :	25.03.2002
DIN No.:	02976996

KEY EXECUTIVES

Name :	Mr. Siddhesh
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,250,692	36.9
Sub Total	2,250,692	36.9
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2,250,692	36.9
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	653,223	10.71
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2,356,968	38.64
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	694,606	11.39
Any Others (Specify)	144,351	2.37
Non Resident Indians	29,910	0.49
Clearing Members	23,205	0.38
Market Maker	81,390	1.33
Hindu Undivided Families	9,846	0.16
Sub Total	3,849,148	63.1
Total Public shareholding (B)	3,849,148	63.1
Total (A)+(B)	6,099,840	100
(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)	6,099,840	-

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category “Promoter and Promoter Group”

No.	Name of the Shareholder	Details of Shares held	Encumbered shares (*)			Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	No	As a percentage	As a % of
					grand total
					(A)+(B)+(C) of sub-clause (I)(a)
1	Jai Narain Omprakash Agarwal	1,666,832	50,000	3.00	0.82	27.33
2	Veena J Agarwal	254,520	-			4.17
				-	-
3	Atin J Agarwal	252,332	-			4.14
				-	-
4	Neha J Agarwal	42,168	-			0.69
				-	-
5	Veena J Agarwal	34,560	-			0.57
				-	-
6	Shirish D Gotecha	210	-
				-	-	-
7	Shirish D Gotecha	70	-
				-	-	-
	Total	2,250,692	50,000	2.22	0.82	36.90

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category “Public” and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Hansa Motor Works	187,500	3.07
2	Digvijay Commerce and Trading Private Limited	97,491	1.60
3	Paras Petrofils Limited	71,504	1.17
4	Raj Sureka	70,398	1.15
5	Anugrah Stock & Broking Private Limited	78,901	1.29
	Total	505,794	8.29

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of home appliances.
Brand Names :	“JAIPAN”
Exports :
Products :	Home Appliances
Countries :	· Srilanka · Bangladesh · Dubai
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Mixer	Nos.	40000	40000
Non Stick	Nos.	500000	500000

GENERAL INFORMATION

Suppliers :

· Classic Imports

· K Industries

Customers :

Wholesalers and Retailers

· Star CJ

· Reliance

No. of Employees :

200 (Approximately)

Bankers :

• Bank of Baroda, Goregaon (East) Branch, Shivshakti, 48, Jay Prakash Nagar Road No. 4, Goregaon East, Mumbai-400063, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working capital loans secured
Working capital loans banks secured	38.024	35.688
Other debt secured	15.864	1.303
Total	53.888	36.991
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Public deposits unsecured	0.000	0.266
Other debt unsecured	2.700	0.317
Total	2.700	0.583

Banking Relations :	--
Auditors :
Name :	Ashok K. Lohiya and Associates Chartered Accountant
Address :	4/3, Sonal Apartment, Sonawala Cross Road No. 1, Goregaon (East), Mumbai – 400063, Maharashtra, India
Pan No.:	AAAPL3646B
Other Related Parties :	Garuda Builders Jai Shree finance Company

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs.10/- each	Rs. 61.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6099840	Equity Shares	Rs.10/- each	Rs. 60.998 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		60.998	60.998	60.998
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		42.767	41.150	40.898
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		103.765	102.148	101.896
LOAN FUNDS
1] Secured Loans		53.888	36.991	33.764
2] Unsecured Loans		2.700	0.583	0.063
TOTAL BORROWING		56.588	37.574	33.827
DEFERRED TAX LIABILITIES		0.000	0.000	0.0000
TOTAL		160.353	139.722	135.723
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.992	17.822	14.515
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.190	0.191
DEFERREX TAX ASSETS		0.000	0.000	0.780
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.120	37.447	26.816
	Sundry Debtors	52.420	59.367	58.922
	Cash & Bank Balances	14.335	9.161	8.589
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.224	49.943	51.723
Total Current Assets		163.099	155.918	146.050
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.567	32.602	23.529
	Other Current Liabilities	2.605	1.455	1.284
	Provisions	1.256	0.960	1.000
Total Current Liabilities		39.428	35.017	25.813
Net Current Assets		123.671	120.901	120.237
MISCELLANEOUS EXPENSES		0.689	0.809	0.000
TOTAL		160.353	139.722	135.723

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	269.667	215.308	269.287
		Other Income	1.755	1.081	2.657
		TOTAL (A)	271.422	216.389	271.944
Less	EXPENSES
		Consumption materials changes in inventories	211.689	174.135	96.271
		Employees related costs	10.094	9.642	0.000
		Administrative, selling and other expenses	42.472	28.749	0.00
		Cost of Goods Sold	0.000	0.000	127.487
		Manufacturing and other expenses	0.000	0.000	42.243
		TOTAL (B)	264.255	212.526	266.001
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.167	3.863	5.943
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.167	3.863	5.943
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.750	2.962	2.261
	PROFIT BEFORE TAX (E-F) (G)		2.417	0.901	3.682
Less	TAX (H)		0.746	0.649	1.719
	PROFIT AFTER TAX (G-H) (I)		1.671	0.252	1.963
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		31.453	31.254	29.291
	BALANCE CARRIED TO THE B/S		33.124	31.453	31.254
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	72.389	39.626	51.131
	TOTAL EARNINGS		72.389	39.626	51.131
	IMPORTS
		Finished Goods	NA	3.692	0.000
		Travelling	NA	0.397	0.000
	TOTAL IMPORTS		NA	4.089	0.000
	Earnings Per Share (Rs.)		0.27	0.03	0.32

Particulars	31.03.2012
Sales Turnover (Approximately)	300.000

Expected Sales (2012-2013) : Rs. 400.000 Millions

The above information has been parted by Mr. Siddhesh.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	58.800	73.010	68.850	73.520
Total Expenditure	54.670	69.150	66.420	69.440
PBIDT (Excl OI)	4.130	3.860	2.430	4.080
Other Income	0.000	0.080	0.350	0.000
Operating Profit	4.130	3.940	2.780	4.080
Interest	1.920	1.580	0.910	2.000
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	2.210	2.360	1.870	2.080
Depreciation	1.380	1.820	1.380	1.470
Profit Before Tax	0.830	0.540	0.490	0.600
Tax	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	0.830	0.540	0.490	0.600
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	0.830	0.540	0.490	0.600

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.62	0.12	0.72
Net Profit Margin (PBT/Sales)	(%)	0.90	0.42	1.37
Return on Total Assets (PBT/Total Assets}	(%)	1.21	0.52	2.28
Return on Investment (ROI) (PBT/Networth)		2.33	0.01	0.04
Debt Equity Ratio (Total Liability/Networth)		0.93	0.71	0.59
Current Ratio (Current Asset/Current Liability)		4.14	4.45	5.66

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. Constructions of the firm	Yes
4. Premises details	No
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	Yes
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	Yes
13. Reasons for variation <> 20%	-----
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	Yes
28. Incorporation details, if applicable	Yes
29. Last accounts filed at ROC	Yes
30. Major Shareholders, if available	No

NOTE

Registered office has been shifted from 4/3 Sonal Apartments Sonawalla Cross Road No.1, Goregaon East, Mumbai – 400063, Maharashtra, India to the present address

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
SUNDRY CREDITORS
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	35.567	32.602	23.529
TOTAL	35.567	32.602	23.529

FORM 8

Corporate identity number of the company

L28991MH1965PLC013188

Name of the company

JAIPAN INDUSTRIES LIMITED

Address of the registered office or of the principal place of business in India of the company

4/3 Sonal Apartments Sonawalla Cross Road No.1, Goregaon East, Mumbai – 400063, Maharashtra, India

This form is for

Modification of charge

Charge identification number of the charge to be modified

90232201

Type of charge

Immovable property

Book debts

Floating charge

Others

Particular of charge holder

Name :	Bank of Baroda
Address :	Goregaon (East) Branch, Shivshakti, 48, jay Prakash Nagar Road No. 4, Goregaon East, Mumbai-400063, Maharashtra, India
Email :	shirishshetye@gmail.com

Nature of instrument creating charge

Hypothecation of stock of finished goods, stock in process, raw material of Home appliance, electronic appliance, kitchen ware etc. and book debt and equitable mortgage of land & building and plant and machinery.

Date of instrument Creating the charge

28.09.2011

Amount secured by the charge

Rs. 70.000 Millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of interest

1.75% over Base Rate for CC and 1.00% Over Base Rate for PC

Terms of repayment

On demand

Margin

Margin for Cash Credit is 25%

Margin for ILC/FLC/Buyers Credit is 15%

Extent and operation of the charge

Enhanced Limits of Loan/ Cash Credit/ PC/ LC/ Other Credit facilities for aggregate sum of Rs. 70.000 Millions (net Increase Rs. 25.000 Millions) interalia against the extension of the mortgage in respect of immoveable property.

Short particulars of the property charged (Including location of the property)

All Stocks of Raw Materials, work-in process, semi finished goods, such as home appliances, electronic appliances, kichen wares etc.

Piece or Parcel of Non-agricultural Land (Industrial purpose) Admg. 3700 SQ. Metres. Survey No. 13/2/8 Amli Village, Silvassa, Near Piparia Police chowki, Dadra and Nagar Haveli, 396230

Date of instrument modifying the charge

21.10.2008

Particulars of the present modification

There is overall increase in limit from existing Rs. 58.000 Millions to Rs. 70.000 Millions. The revised CC limit of Rs. 50.000 Millions includes sublimits BP/ BD up to Rs. 10.000 Millions, PC/PCFC up to Rs. 15.000 Millions, FBP/UFBP up to Rs. 15.000 Millions, BG up to Rs. 3.000 Millions. The revised LC limit of Rs. 20.000 Millions includes LC and Buyers Credit.

TRADE REFERENCES

· Classic Imports

· K Industries

· Star CJ

· Reliance

FIXED ASSETS

• Free hold land
• Factory building
• Plant and machinery
• Mould and dies
• Motor vehicles
• Furniture and fixtures
• Computer system
• Office equipment

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST MARCH 2012

		Quarter Ended
Sl. No	Particulars	31.03.2012
		(Unaudited)
1	(a) Net Sales / Income from operations	71.589
	(b) Other operating income	1.930
	Total Income	73.519
2	Expenditure
	a) Increase(-)/Decrease in stock-in-trade and work in progress	0.000
	b) Consumption of Raw Materials	53.304
	c) Purchase of traded goods	0.000
	d) Consumption of stores & spares	0.000
	e) Employees' cost	4.233
	f) Power & Fuel	0.583
	g) Depreciation	1.471
	h) Other Expenditure	11.321
	Total	70.912
3	Profit from operations before other income, interest and exceptional items ( 1-2)	2.607
4	Other Income	0.000
5	Profit before interest and exceptional items ( 3+4)	2.607
6	Interest	2.004
7	Profit after interest but before exceptional items ( 5-6)	0.603
8	Exceptional items-Foreign exchange loss (-)/ gain(+)	---
9	Profit from ordinary activities before tax ( 7+8)	0.603
10	Tax Expense	0.000
11	Net Profit from ordinary activities after Tax ( 9-10 )	0.603
12	Extraordinary items (net of tax expense Rs. Nil)	---
13	Net Profit for the period (11-12)	0.603
14	Paid up Equity Share Capital ( Face value : Rs. 10 per share )	60.998
15	Reserves (excluding revaluation reserve) as per balance sheet of previous accounting year	--
16	Earnings per share	0.10
17	Aggregate of public share holding
	- Number of shares	3903148
	- Percentage of share holding	63.99
18	Promoters and Promoter group shareholding
	(a) Pledged / Encumbered
	- Number of Shares	50000
	- Percentage of shares (as a % of the total	2.28
	- Percentage of shares (as a % of the total share capital of the company)	0.82
	(b) Non-Encumbered
	- Number of Shares	2146692
	- Percentage of shares (as a % of the total - shareholding of the promoter and promoter group)	97.56
	- Percentage of shares (as a % of the total share capital of the company)	35.20

Notes:

1. These results were taken on record by the board of the Directors in its meeting held on 15^th May, 2012 and received by Audit committee of the Company.

2. There was no complaints during the quarter ended 31.03.2012.

3. The Company does not have more than one reportable segment hence segment wise reporting is not required.

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. 55.69
UK Pound	1	Rs. 86.28
Euro	1	Rs. 68.14

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.