MIRA INFORM REPORT

Report Date :

11.06.2012

IDENTIFICATION DETAILS

Name :	HYDERABAD CHEMICALS LIMITED (w.e.f.15.09.2005)
Formerly Known As :	HYDERABAD CHEMICAL SUPPLIES PRIVATE LIMITED
Registered Office :	4-3-377, 1 Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.01.1954
Com. Reg. No.:	01-000736
Capital Investment/ Paid-up Capital:	Rs.3.000 Millions
CIN No.: [Company Identification No.]	U24230AP1954PLC000736
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Chemicals and Pesticides.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (58)

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 4300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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.

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 :	4-3-377, 1 Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India
Tel. No.:	91-40-24756927
Fax No.:	91-40-23772599
E-Mail :	hydchem@sify.com info@hyderabadchemicals.com info@neoseedsindia.com ramkumar@hyderabadchemicals.com
Factory 1 :	A 24/25, APIE Balanagar, Hyderabad-500037, Andhra Pradesh, India
Tel. No.:	91-40-23773906/23772651/247556927
Fax No.:	91-40-23772595
Factory 2 :	Also located at: · Balanagar, Pashamylaram · Jammu

DIRECTORS

As on: 17.08.2011

Name :	Mr. Nellore Sukumar
Designation :	Managing Director
Address :	6-3-883/A/10, Padmavati Palace, Punjagutta, Hyderabad - 500482, Andhra Pradesh, India
Date of Birth/Age :	02.10.1951
Date of Appointment :	11.06.1990
DIN No.:	00462316
Name :	Mr. Dipesh Kantisen Shroff
Designation :	Director
Address :	Sanket 39 Hatkesh Society, No.6 N S Road Juhu, No.6, Ville Parle (West), Mumbai - 400056, Maharashtra, India
Date of Birth/Age :	03.02.1960
Date of Appointment :	21.11.2003
DIN No.:	00030792
Name :	Mrs. Shruti Atul Shroff
Designation :	Director
Address :	7, Charotar Society, Old Padra Road, Vadodara-390020, Gujarat, India
Date of Birth/Age :	24.09.1950
Date of Appointment :	21.11.2003
DIN No.:	00019693

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 17.08.2011

Names of Shareholders	No. of Shares
Dipesh kantisen Shroff	28680
N Sukumar,	26100
Shruti Atul Shroff	31180
Preeti Dipesh Shroff	10000
Chanda Kantisen Shroff	15000
Chanda Kantisen Shroff	15000
N Gayatri	20020
N Viswa	5000
N Ram Chaitanya	5000
Atul Govindji Shroff	15000
Atul Govindji Shroff	9000
Narendra K. Gandhi	5220
Ravi Ashwin Shoff	3000
Usha Ashwin Shroff	15000
Ashwin Champraj Shroff	15000
Hrishit Ashwin Shriff	18000
Sanjay K Gandhi	8150
Shaila shashikumar Shroff	3000
Maya K Gandh	9950
Jyotsna Jyoti Bhatt	15000
Ramesh Chandra Premji	3000
Hiral T Dayal	3000
JJyotindra K. Gandhi	7200
Ranjan Kishor Shroff	3000

Equity Share Break up (Percentage of Total Equity)

As on: 17.08.2011

Category	Percentage
Directors or relatives of directors	60.00
Other top fifty shareholders	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals and Pesticides.

Products :

Product Description	ITC Code
Hythene	38081019
Hyfort	38081019
Hycrophos	38081019

· Alphakill

· Angel

· Bifors

· Bijili

· Conzol

· Echonil

· Hycrofos

· Hydan

· Hysulfan

· Hythene

· Hyvap

· Imicon

· Matin

· Ninja

· Paraforce

· Paratop

· Pendistar

· Prime

· Wartap 4g

· Weedonil

PRODUCTION STATUS As on: (31.03.2011)

Particulars	Licensed Capacity	Installed Capacity MT/KL	Actual Production MT/KL
Agro Chemicals and Pesticides	NA	12,200	11,106
Wind Power	NA	7.40mw	96.02kwh

Note:

· Installed capacity has been certified by the Management on which the Auditors relied.

· Material Purchased in bulk to meet repacked sales is included in production.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad, IDPL Colony Branch, Kukatpally, Hyderabad - 500037, Andhra Pradesh, India

· Citibank N.A., 1st Floor, Queens Plaza, Sardar Patel Road, Hyderabad - 500003, Andhra Pradesh, India

· State Bank of India, Overseas Branch,5-9-300, ABIDS, Hyderabad – 500001, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	44.723(A)	3.506(B)
Total	44.723	3.506

Note:

(A) Working Capital Loan (Cash Credit) from State Bank of Hyderabad, I.D.P.L Colony Branch, Hyderabad

(B) Working Capital Loan (Cash Credit) from State Bank of Hyderabad, I.D.P.L Colony Branch, Hyderabad

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deferred sales tax loan unsecured	29.878	30.817
Total	29.878	30.817

Banking Relations :	--
Auditors :
Name :	Raju and Prasad Chartered Accountant
Address :	401, Diamond House, Amrutha Hills, Punjagutta, Hyderabad – 5000082, Andhra Pradesh, India
Tel. No.:	91-40-23410404
Fax No.:	91-40-23410403
E-Mail :	rajuandprasad@gmail.com Hyderabad@rajuandprasad.com
PAN No.:	AACFR2404H
Subsidiaries :	Hyderabad Chemical Products Private Limited CIN No.: U24239AP1990PTC011356 Neo Seeds India Limited CIN No.: U01112AP2009PLC063224
Related Parties :	Excel Crop Care Limited CIN No.: L74999MH1964PLC012878 Excel Industries Limited CIN No.: L24200MH1960PLC011807 Transpek Marketing Limited CIN No.: U51100GJ1987PLC009487 Transpek Industry Limited CIN No.: L23205GJ1965PLC001343 Agrocel Industries Limited Trans Metal Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1085.886	939.810	811.822
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1088.886	942.810	814.822
LOAN FUNDS
1] Secured Loans		44.723	3.506	39.222
2] Unsecured Loans		29.878	30.817	31.262
TOTAL BORROWING		74.601	34.323	70.484
DEFERRED TAX LIABILITIES		57.977	57.415	58.904
TOTAL		1221.464	1034.548	944.210
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		338.452	337.308	361.854
Capital work-in-progress		86.233	15.192	0.075
INVESTMENT		59.423	46.756	36.756
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	468.892	389.218	396.473
	Sundry Debtors	267.929	187.314	162.752
	Cash & Bank Balances	48.732	122.881	81.999
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	359.133	292.161	255.207
Total Current Assets		1144.686	991.574	896.431
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	151.591	97.209	130.887
	Other Current Liabilities	85.164	152.995	146.395
	Provisions	170.575	106.078	73.624
Total Current Liabilities		407.330	356.282	350.906
Net Current Assets		737.356	635.292	545.525
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1221.464	1034.548	944.210

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2086.088	1812.175	1925.163
		Other Income	63.425	57.166	48.087
		TOTAL (A)	2149.513	1869.341	1973.250
Less	EXPENSES
		Consumption materials changes inventories	1500.500	1299.453
		Manufacturing service costs	78.656	67.316
		Employee related expenses	82.304	73.386
		Administrative selling other expenses	90.183	79.643
		Research development expenditure	5.017	3.828
		TOTAL (B)	1756.660	1523.626	1762.302
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		392.853	345.715	210.948
Less	FINANCIAL EXPENSES (D)		123.006	132.910	5.647
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		269.847	212.805	205.301
Less/ Add	DEPRECIATION/ AMORTISATION (F)		32.643	29.513	30.222
	PROFIT BEFORE TAX (E-F) (G)		237.204	183.292	175.079
Less	TAX (H)		59.893	29.235	23.838
	PROFIT AFTER TAX (G-H) (I)		177.311	154.057	151.241
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		56.767	48.778	21.852
Less	APPROPRIATIONS
		Transfer to General Reserve	145.000	120.000	100.000
		Proposed Final Dividend	21.000	16.500	15.000
		Dividend	6.000	6.000	6.000
		Tax on Dividend	4.234	3.569	3.313
	BALANCE CARRIED TO THE B/S		58.842	56.767	48.778
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.780	1.500	6.924
	TOTAL EARNINGS		1.780	1.500	6.924
	IMPORTS
		Raw Materials & Components	148.427	146.384	138.114
	TOTAL IMPORTS		148.427	146.384	138.114
	Earnings Per Share (Rs.)		591.04	514.00	504.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.25	8.24	7.66
Net Profit Margin (PBT/Sales)	(%)	11.37	10.11	9.09
Return on Total Assets (PBT/Total Assets}	(%)	15.99	13.79	13.91
Return on Investment (ROI) (PBT/Networth)		0.22	0.19	0.21
Debt Equity Ratio (Total Liability/Networth)		0.44	0.41	0.52
Current Ratio (Current Asset/Current Liability)		2.81	2.78	2.55

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitutions of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

CONTINGENT LIABILITIES:

(Rs In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Contingent Liabilities not Provided in respect of :-
Guarantees and Counter Guarantees outstanding
Corporate Guarantee given by the Company to State Bank of Hyderabad, IDPL Colony Branch, in respect of Loans taken by Hyderabad Chemical Products Limited	188.000	264.000
Bank Guarantee to others	2.550	2.550
An Amount claimed by APCPDCL as excess wheeling charges is a disputed liability the matter is pending before Appellate Tribunal for Electricity at Delhi.	0.564	0.564
The Income Tax dues on account of dispute is Rs.20.880 Millions, out of which Rs.10.500 Millions was paid before 31st March, 2011 pertains to the year 2006-07 .The dispute is pending before Commissioner of Income Tax (Appeals), Hyd.	10.380	13.380

OPERATIONAL REVIEW:

The performance of the company has continued to be satisfactory during the year. Sales have improved to Rs.2311.400 Millions from Rs.1972.300 Millions signifying an increase of 17%. The profit before tax stood at Rs. 237.200 Millions as against Rs. 183.300 Millions in the previous year reflecting an increase of 29%. The profit after tax has improved to Rs. 177.300 Millions from Rs. 154.000 Millions reflecting an increase of 15%.

JAMMU UNIT

The sales from Jammu unit have increased to Rs.720.000 Millions during the year 2010-11 compared to Rs. 635.000 Millions during the previous year. A dedicated plant for Thiomethoxam WDG is under commissioning. Due to congestion in the plant and anticipated increase in production, an additional site in Jammu is planned to be made operational during the current year.

PRODUCTION / FACILITIES

In view of increased demand for weedicides, work on the new weedicide plant at Balanagar has commenced and will be commissioned during the current year. A packaging plant in Balanagar has been fully automated with in-house technology for manless operation on an experimental basis. A new multiple effect evaporator has been setup at Balanagar facility to strengthen environment management.

NEW MANUFACTURING FACILITY AT HUMNABAD, KARNATAKA

The new manufacturing facility at Humnabad has been commissioned during the year 2010-11 starting with manufacture of Monocrotophos Technical in the 1st phase. A semi commercial plant for manufacture of Indoxcarb Technical was also setup and is under trial production. A new formulation facility for suspension concentrates and water dispersible granules is under erection. The erection of new plant for manufacture of Cartap Technical will be taken up during the current year.

MARKETING AND PROMOTION

As a part of the company’s strategy to enhance the penetration in markets other than South India, Marketing operations have been started in the states of West Bengal and Chhattisgarh. New sales depots have been opened at Hasan (Karnataka), Kanchipuram (Tamilnadu), Raipur (Chhattisgarh) taking the number of sales depots to 29 across the country. New products namely ‘TRACK’ an insecticide based on Emamectin Benzoate and ‘BOLT’ a Neonicotinoid WDG based on Imidacloprid has been successfully launched during the year and were well received in the market.

The company has significantly improved the sales in the weedicides segment, especially Glyphosate, Paraquat dichloride and Clodinafop Propargyl. As a part of the company’s initiative towards farmer education, various schemes like on-line telephone services (Karshak Sahaya Vani) and free soil testing have been intensified. In order to enhance the engagement with the farmers, the company has selected about 3000 progressive farmers in Andhra Pradesh for transfer of technology from seeds to harvest.

OUT LOOK FOR THE CURRENT YEAR

Though the onset of Monsoon during the current year has been delayed and many pockets of the country received deficit rains during the current year, the performance of the company in the first quarter has been satisfactory. Barring unforeseen circumstances, the company is expected to turn out respectable performances during the current year also.

WIND POWER

Due to lower wind speeds during the year 2010-11, the generation of wind power was lower at 2.22 crore units in the current year as against 2.66crore units during the previous year. A new 5.1 MW wind facility has been commissioned during the current year in Anantapur, Andhra Pradesh. The wind power segment is expected to generate much higher revenues during the current year.

OVERVIEW

The year 2010-11 witnessed abundant South West Monsoon resulting in increased acreage and increased use of pesticides during the Khariff season, though there was a drop in the consumption of pesticides in the Rabi season. The domestic agchem market has grown by about 10% during the year 2010-11 with steep increase in consumption of Weedicides. Due to very high acceptance of BT technology in cotton, the insecticide consumption on cotton has continued its down trend. However the market for certain insecticides including old molecules like Monocrotophos registered growth. As a result of a series of Micro and Macro factors emerging in China, the landed cost of some of the Agro Chemicals from China has been increasing thus opening new opportunities to Indian Agro Chemical manufacturing sector. The illegal imports from China continues to pose a threat to the growth of the domestic industry.

PERFORMANCE

During Financial Year 2010-11 Hyderabad Chemicals Limited, subsidiaries Hyderabad Chemical Products Limited and Neo Seeds India Limited continued to make healthy progress with respect to key parameters like growth in revenue, profitability, asset creation, competency building and related diversifications, an essential ingredient of derisking strategy.

The combined sales of HCL, HCPL and NSIL have increased to Rs.3549.700 Millions for the year ended March 31, 2011 as against Rs.3017.400 Millions during the previous year signifying a growth of 17.64%. The combined profit before tax has increased to Rs.360.400 Millions from Rs.293.300 Millions during the previous year reflecting an increase of 22.88%. The combined profit after tax (before deferred tax liability) has improved to Rs.304.300 Millions from Rs. 244.000 Millions during the previous year, showing a growth of 24.7%. The combined profit after tax (after deferred tax liability) has risen sharply to Rs. 297.100 Millions from Rs. 213.200 Millions in the previous year signifying a growth of 39.35%.

Focused thrust on a number of factors like enlarged product basket, backward integration, geographical penetration, speedy decision making, effective execution, responsive customer relations management, efficient supply chain, improved R and D inputs and flexible manufacturing coupled with strategic cost management contributed to the respectable growth and value addition in HCL, HCPL and NSIL.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24230AP1954PLC000736
Name of the company	HYDERABAD CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	4-3-377, 1 Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India E-mail: hydchem@sify.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10040359
Type of charge	Other (corporate guarantee)
Particular of charge holder	State Bank of Hyderabad, IDPL Colony Branch, Kukatpally, Hyderabad - 500037, Andhra Pradesh, India E-mail: idplkukatpally@sbhyd.co.in
Nature of instrument creating charge	Deed of Guarantee for overall limit
Date of instrument Creating the charge	30.09.2011
Amount secured by the charge	Rs.190.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Not applicable Terms of Repayment Repayable on demand Margin Not applicable Extent and Operation of the charge Corporate Guarantee
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Corporate Guarantee for the working capital limits availed by M/s Hyderabad Chemical Products Limited from State Bank of Hyderabad for an amount of Rs.190.000 Millions.
Date of instrument modifying the charge	19.08.2010
Particulars of the present modification	Corporate Guarantee given to Hyderabad Chemical Products Limited increased to Rs.190.000 Millions.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Laboratory Equipment

· Vehicles

· Technical Books

· Land (Wind farm)

· Building (Wind farm)

· Plant and Machinery (Wind farm)

· Land (Agricultural)

· Shed at Agricultural Land

· Plant and Machinery (Agricultural)

AS PER WEBSITE DETAILS:

PROFILE

Hyderabad Chemicals has been a pioneer in manufacturing pesticide formulations for over three decades.

With its backward integration venture to manufacture pesticide actives, Hyderabad Chemicals has carved a unique image in the market by offering a vast range of products to meet the plant protection needs of a wide spectrum of crops.

Hyderabad Chemicals, an ISO 9001-2000 company is primarily focused to provide quality products at competitive prices and with optimum customer service.

INFRASTRUCTURE AND FACILITIES

There Technical plants and formulation facilities are designed and engineered to produce wide range of technical grade pesticides and pesticides formulations which is a one-stop-shop for meeting all plant protection requirements of the customer.

Hyderabad Chemicals has invested heavily on infrastructure and R and D to meet both domestic and international quality standards. There flexible technical manufacturing facilities facilitate manufacture of various technical grade pesticides depending on the requirement and demand.

They have a fully automated PLC (Programmable Logic Control) based formulation facility at three locations for manufacturing various types of pesticide formulations like Emulsifiable Concentrates (EC), Suspension Concentrates (SC), Wettable Powders (WP), Water Soluble Powders (SP), Encapsulated Granules (Gr.), Water Dispersible Granules (WDG).

There infrastructure and technology pave way to fulfill there customer's requirements & needs.

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.55.36
UK Pound	1	Rs.85.64
Euro	1	Rs.69.21

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.