MIRA INFORM REPORT

Report Date :

26.07.2012

IDENTIFICATION DETAILS

Name :	UMANG DAIRIES LIMITED
Registered Office :	Gajraula Hasanpur Road, Jyotiba Phule Nagar, Gajraula – 244 235, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.12.1992
Com. Reg. No.:	014942
Capital Investment / Paid-up Capital :	Rs. 145.916 millions
CIN No.: [Company Identification No.]	L15111UP1992PLC014942
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Milk Products and Ghee (Clarified Butter)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears a huge accumulated losses recorded by the company. However, trade relations are reported to be fair. Payments are reported to be slow. The company can be considered for business dealing on a secured 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	LD
Rating Explanation	The lowest credit rating of ICRA and it has very low prospectus of recovery
Date	22.12.2009

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Gajraula – Hasanpur Road, District Jyotiba Phule Nagar, Gajraula – 244 235, Uttar Pradesh, India
Tel. No.:	91-5924-252491 – 4
Mobile No.:	Not Available
Fax No.:	91-5924-252495
E-Mail :	umang@jkmail.com udl@umangdairies.com
Website :	www.umangdairies.com
Factory:	Gajraula – Hasanpur Road, Gajraula, District Jyotiba Phule Nagar, Uttar Pradesh – 244 235, India
Corporate Office :	Gulab Bhawan, 3^rd Floor 6A, Bahadur Shah Zafar Marg, New Delhi – 110 002, Delhi, India
Tel. No.:	91-11-30179100
Fax No.:	91-11-23739475
E-Mail :	umang@jkmail.com

DIRECTORS

As on 31.03.2011

Name :	D.B. Doda
Designation :	Director
Name :	R. C. Jain
Designation :	Director
Name :	R. C. Periwal
Designation :	Director
Name :	R.L. Saha
Designation :	Director

KEY EXECUTIVES

Name :	Shuchi Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholders	No. of shares	Percentage (%)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,500	0.01
Bodies Corporate	16,442,930	74.73
Sub Total	16,444,430	74.74
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	16,444,430	74.73
(B) Public Shareholding
(1) Institutions
Mutual Funds/ UTI	12,200	0.06
Foreign Institutional Investors	4,100	0.02
Sub Total	16,300	0.07
(2) Non-Institutions
Bodies Corporate	4,32,632	1.97
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	4,054,781	18.43
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	9,04,017	4.11
Any Others (Specify)	1,51,040	0.69
NRIs/OCBs	68,554	0.31
Clearing Members	82,486	0.31
Sub Total	5,542,470	25.19
Total Public shareholding (B)	5,558,770	25.26
Total (A)+(B)	22,003,200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	2,20,03,200	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Milk Products and Ghee (Clarified Butter)

Products :

Principal Product	Item Code No.
Ghee	40500.03
Powders	040210.01 , 040229.09

PRODUCTION STATUS

Installed Capacity(as certified by the Management) : 3 Lac Litres of milk processing per day Capacity for end

products will vary depending on the product mix.

Particulars	Unit	Production
Ghee#	MT/KL	1895.90
Powders	MT/KL	3559.96
Liquid Milk	MT/KL	184.03

* Purchased during the year.

# Ghee includes Butter.

@ Excluding contract manufacturing of Ghee and Butter NIL M.T. (previous year 154.80 M.T.), Powders 35.25

M.T (Previous year NIL M.T.) and Liquid Milk 1089.30 MT (Previous Year 394.30).

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

· State Bank of India

· Punjab National Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loan from Bodies Corporate	68.500	78.500
Housing Loan	11.372	11.372
Notes: (a ) Loan of Rs. 64.500 millions (Previous year Rs. 74.500 millions) from a Body Corporate (Group Company) is secured by a first Charge On the fixed assets of the factory located at Gajraula. (b) Loan of Rs. 4.000 millions (Previous year Rs. 4.000 millions) from a Body Corporate is secured by pari passu charge by way of Mortgage on all immovable assets of the company (both present and future) except immovable assets mortgaged against Housing Loan and hypothecation of Movables (save and except book debts). (c ) Housing loan {including interest Rs. 5.695 Millions (Net of TDS)} is secured by way of Mortgage on specified dwelling units and Land. (d) Term Loan repayable during one year Rs. 9.000 millions (Previous year Rs. 14.000 millions)
Total	79.872	89.872
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Unsecured from Bodies Corporate (including Rs. 14.300 millions from Group Company)	19.300	19.300
Total	19.300	19.300

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants

CAPITAL STRUCTURE

As on 31.03.2011

Authorized Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 5/- each	Rs.150.000 millions
600000	Redeemable Preference Shares	Rs. 100/- each	Rs. 60.000 millions
			Rs.210.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22003200	Equity Shares	Rs. 5/- each	Rs.110.016 millions
359000	Redeemable Preference Shares*	Rs. 100/- each	Rs. 35.900 millions
			Rs.145.916 millions

* Zero Coupon Redeemable Preference Shares are redeemable on 20.10.2016

(for 2,08,000 Preference Shares) and on 30.06.2018 (for 1,51,000 Preference Shares) and the same will be redeemed out of reserves available to the company.

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		145.916	145.916	155.932
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(172.594)	(205.731)	(319.908)
NETWORTH		(26.678)	(59.815)	(163.976)
LOAN FUNDS
1] Secured Loans		79.872	89.872	197.834
2] Unsecured Loans		19.300	19.300	19.300
TOTAL BORROWING		99.172	109.172	217.134
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		72.494	49.357	53.158
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.181	187.750	107.481
Capital work-in-progress		4.151	0.423	54.340
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	124.440	74.958	36.040
	Sundry Debtors	17.604	14.615	8.823
	Cash & Bank Balances	14.722	4.297	7.951
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.436	20.462	18.247
Total Current Assets		176.202	114.332	71.061
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.297	43.858	29.623
	Other Current Liabilities	251.336	205.026	128.613
	Provisions	5.407	4.264	21.488
Total Current Liabilities		287.040	253.148	179.724
Net Current Assets		(110.838)	(138.816)	(108.663)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		72.494	49.357	53.158

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	910.895	462.458	321.294
		Other Income	112.666	43.646	13.143
		TOTAL (A)	1023.561	506.104	334.437
Less	EXPENSES
		Increase / (Decrease) in Stocks	(45.191)	(35.691)	11.863
		Manufacturing Expenses	945.421	495.318	294.563
		Employees	40.242	28.759	19.693
		Other Expenses	30.773	20.501	18.062
		Cost of Borrowings	3.139	3.043	2.552
		TOTAL (B)	974.384	511.930	346.733
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.177	(5.826)	(12.296)
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.177	(5.826)	(12.296)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.040	14.412	12.746
	PROFIT BEFORE TAX (E-F) (G)		33.137	(20.238)	(25.042)
Less	TAX (I)		0.000	0.000	0.299
	PROFIT AFTER TAX (G-I) (J)		33.137	(20.238)	(25.341)
Less	Extra Ordinary Items		0.000	(74.399)	0.000
Less	Prorata Premium on Preference Shares		0.000	0.000	0.378
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(205.731)	(319.908)	(294.189)
Less	Reduction in Equity Share Capital		0.000	(60.016)	0.000
	BALANCE CARRIED TO THE B/S		(172.593)	(205.731)	(319.908)
	EARNINGS IN FOREIGN CURRENCY		42.745	6.103	0.000
	IMPORTS		0.071	0.000	0.000
	Earnings Per Share (Rs.)
	Before Extra Ordinary Items		1.51	(0.92)	(1.51)
	After Extra Ordinary Items		1.51	2.46	(1.51)

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Audited / UnAudited	UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	272.650	235.65	513.83	480.03
Total Expenditure	248.220	216.69	461.50	420.35
PBIDT (Excl OI)	24.430	18.96	52.33	59.68
Other Income	0.200	0.25	0.29	1.27
Operating Profit	24.630	19.21	52.62	60.95
Interest	0.650	0.66	0.64	0.40
Exceptional Items	0.000	0.00	0.00	0.00
PBDT	23.980	18.55	51.98	60.55
Depreciation	4.060	4.18	4.23	4.31
Profit Before Tax	19.930	14.37	47.75	56.24
Tax	0.000	0.00	0.00	0.00
Provisions and contingencies	0.000	0.00	0.00	0.00
Profit After Tax	19.930	14.37	47.75	56.24
Extraordinary Items	0.000	0.00	0.00	0.00
Prior Period Expenses	0.000	0.00	0.00	0.00
Other Adjustments	0.000	0.00	0.00	0.00
Net Profit	19.930	14.37	47.75	56.24

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.24	3.99	7.58
Net Profit Margin (PBT/Sales)	(%)	3.66	4.38	7.79
Return on Total Assets (PBT/Total Assets}	(%)	18.81	17.70	35.24
Return on Investment (ROI) (PBT/Networth)		1.24	0.34	0.15
Debt Equity Ratio (Total Liability/Networth)		14.48	6.06	2.42
Current Ratio (Current Asset/Current Liability)		0.61	0.45	0.40

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
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	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

OPERATIONS

The Company showed significant improvement in its operations by better capacity utilization of the Drying Plant – capacity utilization stood at 39.75% as compared to 21.22% in the previous year.

The operations of Liquid Milk Packaging Plant also improved significantly. Capacity utilization during the year stood at 60% as compared to 39.12% in the previous year.

Notwithstanding the ban on export of Milk powder, the price of milk continued to rise and is expected to further go up over the medium term because of the substantial demand supply mismatch. Milk production has been growing at a steady rate of 3.5 to 4% per year against which the domestic demand of milk is growing at over 6% per year; hence shortage of milk and higher price. However, the Company was able to pass on the major part of increase in milk cost in the selling price of end-products. According to food inflation numbers, the milk prices have gone up by 22% during the year 2010-11.

The Company continues to maintain its leadership position in Premixes for Tea & Coffee vending machines.

Industrial relations remained cordial. HRD continued to get the desired attention. Training programmes - in-house and outside - at different levels of employees were pursued on projected lines.

MANAGEMENT DISCUSSIONS AND ANALYSIS INDUSTRY SCENARIO AND OUTLOOK

Outlook for Dairy Industry seems to be bright. There is a distinct consumer preference for milk and milk plus fruit based drinks over carbonated drinks. Milk production continues to increase by 3.5 to 4% YOY but demand is outstripping the production – demand growth is reckoned at about 6% per annum. Milk price showed a sharp increase of 18 to 20% during the year, pushing up price of milk and milk based products. To curb rising prices, Government of India banned export of milk products from 18.02.2011. Government of India also allowed National Dairy Development Board (NDDB) to import some Milk Powder and Butter oil duty free.

SOME KEY FACTS ABOUT INDIAN DAIRY INDUSTRY

• Per Capita availability of milk in grams:

1999-2000 : 78

2005-2006 : 93

2009-2010 : 115

2010-2011 : 118

(Source: Global Trade Information Services)

• Milk Production:

1951 : 17 Mn MT

2009 : 108 Mn MT

2010 : 112 Mn MT

• Demand and Supply Gap:

With fast track economic growth and consequently more purchasing power in the hands of consumers, demand supply gap is increasing in favour of demand. According to NDDB estimates, demand for milk will go up to 172 Million MT by 2021-22. To augment production in a significant manner, Government of India is ready with a National Dairy Plan under which a sum of Rs. 17000.000 millions is planned to be spent in next 10 years. NDDB has been assigned the task of executing the Plan. Preliminary work on this has already started. Many overseas Dairy majors have put up facilities to manufacture a number of Fresh Products in India. Yoghurt, Energy Drinks, Milk based Fruit Drinks etc. are some of the products which are being manufactured in India now. Several more dairy majors are doing necessary market survey and exploring to identify local partners for putting up a shop in India.

OUTLOOK

Long term outlook for dairy industry remains positive. Per Capita consumption of milk in India is still much lower than Europe, USA, Australia and New Zealand. With economy growing decently, disposable incomes of the families are likely to go up and so will be consumption of milk and milk products.

CONTRACT MANUFACTURING

Capacity utilization in Liquid Milk Plant increased from 39% to 60%. It is expected that it will further go up during the year 2011 – 12.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31^ST MARCH 2012

(Rs. in Millions)

Sr. No.	Particular	Quarter ended 31.03.2011 Unaudited	Quarter ended 31.12.2011 Unaudited	3 months ended 31.03.2012 Audited
1.	Income from Operations
	a) Net Sales/Income from operations (Net of excise duty)	429.963	469.354	1332.453
	b) Other Operating Income	50.070	44.33475	169.719
	Total Income from Operations (net)	480.033	513.829	1502.172
2.	Expenses
	a) Cost of Materials Consumed	367.887	413.310	1122.657
	b) Changes in inventories of finished goods, works-in- process and stock-in-trade	(28.118)	(15.320)	(15.632)
	c) Employee benefits expense	13.609	14.020	50.719
	d) Depreciation and Amortization expenses	4.310	4.228	16.771
	e) Other Expenses	66.972	49.489	189.019
	Total Expenses	424.660	465.727	1363.534
3.	Profit From Operations before Other Income, Finance Cost and Exceptional Items (1-2)	55.373	48.102	138.638
4.	Other Income	1.272	0.291	2.011
5.	Profit from Ordinary Activities Before finance Costs and Exceptional Items (3+4)	56.645	48.393	140.649
6.	Finance Costs	0.401	0.639	2.347
.	Profit from Ordinary Activities before Tax (7+8)	56.244	47.754	138.302
10.	Tax Expense	--	--	--
13.	Net Profit for the period (11-12)	56.244	47.754	138.302
14.	Paid-up Equity Share Capital (Face Value of Rs.5/- Each)	110.016	110.016	110.016
15.	Reserves Excluding Revaluation Reserve	--	--	(34.292)
16.I	Earning Per Share (EPS) (before extra ordinary items) (of Rs. 10/- each)-(Not Annualized)
	a) Basic	2.56	2.17	6.29
	b) Diluted	2.56	2.17	6.29
A	Particulars of Shareholding
1.	Public Shareholding
	-Number of Shares	5558770	5558770	5558770
	- Percentage of Shareholding	25.26%	25.26%	25.26%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	NIL	NIL	NIL
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	16444430	16444430	16444430
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	74.74%	74.74%	74.74%

	Particulars	3 months ended 31.03.2012
B	INVESTOR COMPLAINTS Pending at the begging of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the end of the quarter	Nil 1 1 Nil

Audited Statement of Assets and Liabilities

(Rs. in Millions)

	PARTICULARS	31.03.2012
I	Equity and Liabilities
	1) Shareholders Funds
	a) Share Capital	145.916
	b) Reserves and Surplus	(34.292)
	Sub-total-Shareholders' funds	111.624
	2) Non – Current Liabilities
	a) Long term Borrowing	41.372
	c) Other Long term liabilities	108.328
	d) Long-term provisions	6.442
	Sub-total - Non-current liabilities	156.142
	3) Current Liabilities
	a) Short term borrowing	28.954
	b) Trade payable	27.209
	c) Other current liabilities	119.006
	d) Short term provision	0.776
	Subtotal – Current liabilities	175.945
	Total – Equity and Liabilities	443.711
II	Assets
	1) Non – Current Assets
	a) Fixed assets
	i) Tangible Assets	193.267
	ii) Intangible Assets	0.470
	iii) Capital Work in Progress	2.522
	b) Long term loans and advance	6.732
	c) Other non current assets	0.100
	Subtotal Non- Current Assets	203.091
	2) Current Assets
	b) Inventories	143.252
	c) Trade receivables	41.818
	d) Cash and cash equivalents	44.031
	e) Short term loans and advance	11.519
	Sub total current assets	240.620
	Total Assets	443.711

Fixed Assets:

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· 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 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.56.37
UK Pound	1	Rs.87.44
Euro	1	Rs.68.04

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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	Yes
--LISTED	YES/NO	Yes
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		18

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

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.