MIRA INFORM REPORT

Report Date :

25.06.2012

IDENTIFICATION DETAILS

Name :	CG-PPI ADHESIVE PRODUCTS LIMITED
Registered Office :	215, GDDIDC Industrial Estate, Kundaim-403115, Goa
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.11.1988
Com. Reg. No.:	24-000921
Capital Investment / Paid-up Capital :	Rs.39.000 Millions
CIN No.: [Company Identification No.]	U24295GA1988PLC000921
TAN No.: [Tax Deduction & Collection Account No.]	BLRC03180C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Electrical Insulation Tapes and Labels.
No. of Employees :	65 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 450000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Crompton Greaves Limited and PPI Adhesive Products Limited. It is an old established company having fine track. There appears an increase in the sales turnover and profitability of the company during the years 2011. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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

INFORMATION PARTED BY

Name :	Mr. Subhash Purohit
Designation :	Accounts Manager
Contact No.:	91-832-2395307
Date :	23.06.2012

LOCATIONS

Registered Office/ Factory :	215, GDDIDC Industrial Estate, Kundaim-403115, Goa, India
Tel. No.:	91-832-2395209/10
Fax No.:	91-832-2395308
E-Mail :	accounts@cgppi.ocm subhash.purohit@cgppi.com
Website :	http://www.cgppi.com
Area :	20000 sq. ft.
Location :	Leased

DIRECTORS

As on 19.09.2011

Name :

Mr. Ram Gopal Keswani

Designation :

Director

Address :

7, Gulistan, Carmichael Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

25.04.1926

Date of Appointment :

04.11.1988

Din No.:

00347750

Name :

Mr. Kewal Krishan Nohria

Designation :

Director

Address :

11, Aryavartha, 351, Narayan Dabholkar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

10.01.1932

Date of Appointment :

04.11.1988

Din No.:

00060015

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L74140PN1986PLC041033	KALE CONSULTANTS LIMITED	Director	08-10-88	08-10-88	-	Active	NO
2	U24295GA1988PLC000921	CG-PPI ADHESIVE PRODUCTS LIMITED	Director	04-11-88	04-11-88	-	Active	NO
3	U74899DL1993PTC051849	ITRON METERING SOLUTIONS INDIA PRIVATE LIMITED	Director	22-01-93	22-01-93	29-10-10	Active	NO
4	L29142TN1992PLC021997	IGARASHI MOTORS INDIA LIMITED	Director	03-07-93	03-07-93	-	Active	NO
5	U31404TN1993PTC025779	AGILE CONSUMER ELECTRIC INDIA PRIVATE LIMITED	Director	13-09-93	13-09-93	28-03-11	Active	NO
6	U33112PN1995PTC093837	COLOGICX SYSTEMS PRIVATE LIMITED	Director	14-03-97	14-03-97	-	Active	NO
7	U60231KA1984PTC006017	MAINI MATERIALS MOVEMENT PRIVATE LIMITED	Director	21-07-07	24-09-98	-	Active	NO
8	U27201KA1972PTC002307	MAINI PRECISION PRODUCTS PRIVATE LIMITED	Director	19-09-07	26-03-99	-	Active	NO
9	U72200KA1999PTC033050	COREEL TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	29-08-00	29-08-00	-	Active	NO
10	U74999HR2000PLC035269	GROW TALENT COMPANY LIMITED	Director	09-09-00	09-09-00	-	Active	NO
11	U72200DL2001PTC112820	SUKARMA TECHNOLOGIES PRIVATE LIMITED	Director	14-03-02	14-03-02	04-08-08	Active	NO
12	U74899DL2001PTC111383	FONTUS WATER PRIVATE LIMITED	Director	02-01-03	02-01-03	-	Active	NO
13	U74899DL2000PTC105715	E A WATER PRIVATE LIMITED	Director	01-07-03	01-07-03	-	Active	NO
14	U74999HR2004PLC035286	ACQVIRE TALENT SERVICES LIMITED	Director	14-01-04	14-01-04	-	Amalgamated	NO
15	U31102TN2003PTC052057	AGILE ELECTRIC DRIVES TECHNOLOGIES AND HOLDINGS PRIVATE LIMITED	Director	20-05-04	20-05-04	-	Active	NO
16	U74899DL2000PTC103848	NET HOLDINGS PRIVATE LIMITED	Director	15-06-04	15-06-04	-	Active	NO
17	U29299MH1964PLC013087	C.T.R. MANUFACTURING INDUSTRIES LIMITED	Director	15-07-04	15-07-04	-	Active	NO
18	U31102TN2004PTC054140	AGILE ELECTRIC TECHNOLOGIES PRIVATE LIMITED	Director	26-09-08	19-01-05	-	Amalgamated	NO
19	U85110MH2001PTC132960	TANCLEAN PRIVATE LIMITED	Director	01-04-05	01-04-05	31-07-08	Active	NO
20	L20200MH1956PLC009899	JOLLY BOARD LIMITED	Director	25-07-05	25-07-05	-	Active	NO
21	U51505DL1997PTC089785	AVENTURA COMPONENTS PRIVATE LIMITED	Director	05-10-05	05-10-05	-	Active	NO
22	U40100MH2005PTC156964	POWER ENERGY CONSERVATION (INDIA) PRIVATE LIMITED	Director	21-10-05	21-10-05	-	Active	NO
23	U51505TN2005PTC057898	IGARASHI MOTORS SALES PRIVATE LIMITED	Director	31-10-06	31-10-06	-	Active	NO
24	L99999MH1982PLC026191	PRADEEP METALS LIMITED	Director	05-09-08	14-04-08	-	Active	NO
25	U24134MH1986PTC038671	POLYMERMANN (ASIA) PRIVATE LIMITED	Director	18-06-10	20-11-09	-	Active	NO
26	U85100DL2009PTC227463	HEALTHPOINT SERVICES INDIA PRIVATE LIMITED	Director	23-09-11	12-09-11	-	Active	NO
27	U80903HR2012NPL045688	INSPIRED LEADERSHIP GURUKUL	Director	20-04-12	20-04-12	-	Active	NO

Name :

Ranka Pollmeier

Designation :

Director

Address :

Knocknagaram Annestown, Co. Waterford, Ireland

Date of Birth/Age :

14.11.1942

Date of Appointment :

19.09.2011

Din No.:

03632313

Name :

Laurent Dominique Demortier

Designation :

Director

Address :

9, Avenue De LA Passerelle, Saint Cloud, 92210

Date of Birth/Age :

02.05.1961

Date of Appointment :

19.09.2011

Din No.:

03520825

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L99999MH1937PLC002641	CROMPTON GREAVES LIMITED	Managing director	19-07-11	02-06-11	Active	NO
2	U31100MH1996PLC100151	CG ENERGY MANAGEMENT LIMITED	Director	19-07-11	19-07-11	Active	NO
3	U31200MH1994PLC080208	CG LUCY SWITCHGEAR LIMITED	Director appointed in casual vacancy	27-07-11	27-07-11	Active	NO
4	U24295GA1988PLC000921	CG-PPI ADHESIVE PRODUCTS LIMITED	Director appointed in casual vacancy	19-09-11	19-09-11	Active	NO

Name :

Mr. Anil Kumar Raina

Designation :

Director

Address :

E5/13, Arera Colony, Bhopal-462016, Madhya Pradesh, India

Date of Birth/Age :

20.12.1955

Date of Appointment :

21.09.2010

Din No.:

03325932

KEY EXECUTIVES

Name :	Mr. Subhash Purohit
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
CG Capital and Investments Limited	2005520
CG Energy Management Limited	1170000
Killone AG	261333
KCT Chemicals and Electricals Limited	59000
DBH International Private Limited	35000
Solaris Holdings Limited	35000
Namrata R. Wadhwani	12335
Nandita Wagle Marks	4000
Binod Bihari Ambastha	4000
Simran Phatu Mulchandani	2500
Pushpa Phatu Mulchandani	2500
Bharat Jamnadas Samtani	1500
Lal Jamnadas Samtani	1500
Samtani Ashok Jamnadas	1500
Dayanand Teckchandani	1000

As on 19.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	10.26
Bodies corporate	84.80
Directors or relatives of directors	2.29
Other top fifty shareholders	2.10
Others	0.55
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Electrical Insulation Tapes and Labels.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Self Insulation Tapes	8546
Self Adhesive Tapes and Labels	3919

Exports :

Products :

Electrical Insulation Tapes and Labels

Countries :

· South Africa

· UAE

Imports :

Products :

Raw Materials

Countries :

· Japan

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity*	Installed Capacity*	Actual Production
Self Adhesive Tapes	Quantity in Sq. Metres	2000000	250000	49948
Speciality Labels	Quantity in Sq. Metres	1200000	1500000	973583

NOTE: *as certified by the management on which the auditors have placed reliance, being a technical matter.

GENERAL INFORMATION

Suppliers :	· Ameya Dyechem Private Limited
Customers :	End Users · Crompton Greaves Limited · Picture tube Industry · Refrigerator Industry · Indian Railways · Indian Navy · Electrical & Electronic · Paper Industry · Printed Tapes and Decision Die Cuts · Fabric Labels · Write and Protect Labels
No. of Employees :	65 [Approximately]
Bankers :	Bank of Baroda

Banking Relations :	--
Auditors :
Name :	Sharp and Taiwan Chartered Accountants
Address :	Ravindra Annexe, 194, Churchgate Reclamation, Din Shaw Vachha Road, Mumbai-400020, Maharashtra, India
Pan No.:	AAAFS2967E
Holding Company :	CG Capital and Investment Limited [U67120MH1978PLC020308]
Ultimate Holding company:	Crompton Greaves Limited [L99999MH1937PLC002641]
Subsidiary company	Brook Crompton Greaves Limited [U31103MH1996PLC104708]

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3900000	Equity Shares	Rs.10/- each	Rs.39.000 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		39.000	39.000	39.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		74.960	58.429	78.858
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		113.960	97.429	117.858
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.965	2.317
TOTAL		113.960	98.394	120.175
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.751	27.105	29.294
Capital work-in-progress		1.003	0.948	0.948
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		3.343	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.619	14.599	4.750
	Sundry Debtors	33.929	40.293	85.695
	Cash & Bank Balances	54.444	25.972	30.465
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.248	9.715	3.005
Total Current Assets		105.240	90.579	123.915
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.997	13.965	21.825
	Other Current Liabilities	4.995	5.509	4.375
	Provisions	7.385	0.764	7.782
Total Current Liabilities		23.377	20.238	33.982
Net Current Assets		81.863	70.341	89.933
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		113.960	98.394	120.175

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	140.358	83.822	92.599
		Other Income	3.784	2.652	3.758
		TOTAL (A)	144.142	86.474	96.357
Less	EXPENSES
		Materials	80.930	70.253	47.357
		Staff and Welfare	10.315	12.188	11.520
		Manufacturing, Selling and Administrative Expenses	25.730	22.114	16.425
		TOTAL (B)	116.975	104.555	75.302
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.167	(18.081)	21.055
Less	FINANCIAL EXPENSES (D)		0.114	0.035	0.057
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.053	(18.116)	20.998
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.683	3.665	5.390
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		25.370	(21.781)	15.608
Less	TAX (H)		2.017	(1.352)	6.977
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		23.353	(20.429)	8.631
Add	TAXATION ADJUSTMENTS OF EARLIER YEARS (NET)		0.000	0.000	0.125
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.111	56.540	52.347
Less	APPROPRIATIONS
		Transfer to General Reserve	1.168	0.000	0.000
		Proposed Dividend	5.850	0.000	3.900
		Corporate Tax on Dividend	0.971	0.000	0.663
	BALANCE CARRIED TO THE B/S		51.475	36.111	56.540
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	0.065	0.358	NA
	IMPORTS
		Raw Materials	13.969	17.977	NA
	Earnings / (Loss) Per Share (Rs.)		5.99	(5.24)	2.25

Particulars	31.03.2012
Sales Turnover [Approximately]	158.600

Expected Sales (2012-13) : Rs.240.000 Millions

The above information has been parted by Mr. Subhash Purohit.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	16.20	(23.62)	8.96
Net Profit Margin (PBT/Sales)	(%)	18.07	(25.98)	16.85
Return on Total Assets (PBT/Total Assets}	(%)	19.07	(18.51)	10.19
Return on Investment (ROI) (PBT/Networth)		0.22	(0.22)	0.13
Debt Equity Ratio (Total Liability/Networth)		0.21	0.21	0.29
Current Ratio (Current Asset/Current Liability)		4.50	4.47	3.65

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	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 (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
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	Yes

OPERATIONS:

The Company has achieved gross sales of Rs.152.297 Millions during the year.

The performance during the year was quite satisfactory. They have shown good growth over last two years sales figures. The growth has come mainly from electrical sector. They lost their market of picture tube industry and shoe industry. However, it did not affect their overall growth. They launched a new product for flexo printing industry which also helped them to retain their business volumes consistently. They have also grown considerably in printing business. They focused on increasing operational efficiencies which helped them to maintain pricing inspite of increase in raw material prices by 20 to 30%.

FUTURE OUTLOOK:

This year they will be mainly focusing on new product development for electrical sector, manufacturing laminates for slot insulation and developing class 200°C insulation products. They will also focus on regaining the shoe industry business. In labels, their focus will be to get entry into leading auto manufacturing companies either directly or through approved vendors.

FIXED ASSETS:

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Leasehold Land

WEBSITE DETAILS:

PROFILE:

Subject is a Joint Venture between Crompton Greaves Limited and PPI Adhesive Products Limited., Republic of Ireland. The Company was incorporated on 4.11.1988 and went into commercial production in August, 1991; for the manufacture of special purpose self adhesive tapes for the electrical, electronics and other specialty applications including precision die cut components. The factory is located at 215, Kundaim Industrial Estate, Kundaim, Goa 403 115, India and is built on 17853 sq. mtrs of land and has a built up area of 3600 sq. mtrs.

Crompton Greaves Limited are the largest electrical engineering company in the private sector manufacturing a wide range of electrical equipment, consumer products and telecommunication equipment.

PPI Adhesive Products Limited, Ireland are the world leaders in speciality self adhesive tapes and produce and extensive and sophisticated range of technical products for a wide range of applications in many sectors including electrical, electronics, audio, video, magnetic media, aero space and photography areas etc.

Today, CG-PPI manufacturers a wide range of adhesive tapes namely polyimide, polyamide, fluro polymer, polyester, speciality industrial, splicing tapes, glass cloth fabric tapes, metal foil tapes, tapes for audio / video splicing, speciality laminates, fabric tapes, tapes for picture tube and other industries.

The company also has a range of UL approved tapes [Underwriters Laboratory, USA] and has approvals from RDSO [Research Designs and Standard Organization] D.O.T. [Department of Telecommunications]. Company has also got ISO 9001:2000 certification on 17/02/2003 from International Certification Services (Asia) Pvt. Ltd.,- Accerdited by Joint Accreditation System of Australia and New Zealand.

After getting a foot hold in industrial tape market, the company diversified into manufacture of self adhesive printed labels in the year 1997.

In its Printing Department the Company is equipped with State of the Art printing facilities for screen printing, letter press printing and flexo printing and products wide variety of Decals in a wide range of shapes and base materials. Migration free silicone film / silicone paper is used as a release paper. The labels can be supplied in roll or sheet form and are made with a variety of base materials like polycarbonate, various grades of PVC, metalised polyester, aluminium foil, satin cloth in gold and silver, acetate rayon, glass cloth, cotton, chromoart paper, high glass paper, synthetic non-tearable pape, reflective film, acrylic films and nylon etc. The company also manufacturers tamper proof labels. For outdoor applications, speciality light fast and UV resistant inks are used. Labels can also be supplied with fluorescent, phosphorescent and non oxidizing inks.

The company also manufactures PU resin coated labels - commonly known as dome labels on its state of art imported machine.

The Company is a member of SGIA [Screen printing and Graphic Imaging Association International] USA.

The company has well equipped R and D Centre with competent and trained staff which continuously work to innovate and develop new products of high quality demanded by discerning customers.

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.56.99
UK Pound	1	Rs.88.97
Euro	1	Rs.71.57

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.