MIRA INFORM REPORT

Report Date :

25.06.2012

IDENTIFICATION DETAILS

Name :	ULTIMATE FLEXIPACK LIMITED
Registered Office :	305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash, New Delhi – 110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.06.1987
Com. Reg. No.:	55-028355
Capital Investment / Paid-up Capital :	Rs. 24.126 Millions
CIN No.: [Company Identification No.]	U00000DL1987PLC028355
TAN No.: [Tax Deduction & Collection Account No.]	DELU02119F
PAN No.: [Permanent Account No.]	AAACU6565D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Packaging Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 4800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company has recorded considerable increase in its sales turnover and profitability during the year 2011. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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

LOCATIONS

Registered Office :	305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash, New Delhi – 110048, India
Tel. No.:	91-11-26440925 / 26440917
Fax No.:	91-11-26216922
E-Mail :	flexsec@vsnl.net sales_west@uflexipefilms.com directoroffice_ho@uflexipefilms.com harimohann_kansal@uflexltd.com
Website :	http://www.uflexipefilms.com
Corporate Office :	C – 20, Sector – 57, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-4248311/ 2522558
Fax No.:	91-120-2583361/2556040/4012362
E-Mail :	info@uflexipefilms.com ultimatepoly@uflexipefilms.com
Factory 1 :	Lane No. 2, Phase I, SIDCO Industrial Complex, Bari Brahmana, Jammu – 181133, India
Factory 2 :	Plot No. 26, HPSIDC Industrial Area, Baddi – 173205, Distt. Solan, Himachal Pradesh, India
Factory 3 :	Plot No. 12, Sector – 11, I.I.E, SIDCUL, Haridwar – 249403, Uttarakhand, India
Branch:	Located at: Mumbai Kolkata Chennai

DIRECTORS

As on 30.09.2011

Name :	Mr. Anant Pal Singh
Designation :	Director
Address :	D – 302, Flex Apartments, C 58/22, Sector – 62, Gautam Buddha Nagar, Noida - 201301, Uttar Pradesh, India
Date of Birth/Age :	15.08.1946
Date of Appointment :	28.07.2009
DIN No.:	02729089

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	U00000DL1987PLC028355	ULTIMATE FLEXIPACK LIMITED	Director	15-09-09	28-07-09	Active	NO
2	U74950DL2002PTC114886	MONTAGE ENTERPRISES PRIVATE LIMITED	Director	30-09-10	29-01-10	Active	NO

Name :	Mr. Ajay Tandon
Designation :	Director
Address :	A – 493, Sector – 19, Gautam Buddha Nagar, Noida - 201301, Uttar Pradesh, India
Date of Birth/Age :	17.10.1953
Date of Appointment :	15.01.2003
DIN No.:	00024297

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	U29120DL1960PLC003266	ABILITIES INDIA PISTONS AND RINGS LIMITED	Director	14-02-96	14-02-96	-	Active	NO
2	U00000DL1987PLC028355	ULTIMATE FLEXIPACK LIMITED	Director	15-01-03	15-01-03	-	Active	NO
3	L29113DL1984PLC018229	FLEX ENGINEERING LIMITED	Director	29-07-03	29-07-03	-	Amalgamated	NO
4	U25202DL2008PTC180753	KANA PACKAGING SERVICES PRIVATE LIMITED	Director	10-07-08	10-07-08	15-12-09	Active	NO

Name :	Mr. Inder Pal Singh
Designation :	Director
Address :	House No. 87, Sector – 1, Channi Himmat, Jammu – 180004, Jammu and Kashmir, India
Date of Birth/Age :	07.07.1949
Date of Appointment :	28.07.2007
DIN No.:	00323529

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	U74950DL2003PTC121605	ULTRA LAMINATES PRIVATE LIMITED	Director	14-08-03	14-08-03	15-10-08	Active	NO
2	U33112DL1996PTC082788	ASHIAN NEEDLES PRIVATE LIMITED	Director	20-09-06	26-08-06	30-12-08	Active	NO
3	U00000DL1987PLC028355	ULTIMATE FLEXIPACK LIMITED	Whole-time director	01-08-10	28-07-07	-	Active	NO

Name :	Mr. Hari Mohan Kansal
Designation :	Director
Address :	92, Niti Kand – III, Indirapuram, Ghaziabad – 201014, Uttar Pradesh, India
Date of Birth/Age :	14.11.1965
Date of Appointment :	15.07.2009
DIN No.:	02772158

Name :	Mr. Sharat Chandra
Designation :	Director
Address :	D – 602, Flex Apartments, C 58/22, Sector – 62, Gautam Buddha Nagar, Noida - 201307, Uttar Pradesh, India
Date of Birth/Age :	12.12.1952
Date of Appointment :	20.07.2009
DIN No.:	00428481

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	U74950DL2002PTC114886	MONTAGE ENTERPRISES PRIVATE LIMITED	Director	16-06-04	16-06-04	31-08-07	Active	NO
2	U00000DL1987PLC028355	ULTIMATE FLEXIPACK LIMITED	Director	15-09-09	20-07-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Rashmi Chaturvedi	1900
A.R. Leasing Private Limited, India	415000
Apoorva Extrusions Private Limited, India	309000
Ashok Chaturvedi	601000
Anshika Chaturvedi	1900
Shree Anant Chaturvedi	1900
Shree Apoorva Chaturvedi	1900
Anant Overseas Private Limited, India	230000
Anshika Consultants Private Limited, India	370000
Anshika Investments Private Limited, India	480000
TOTAL	2412600

(AS ON 30.09.2011)

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	74.77
Others	25.23
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Packaging Products.

Products :

Item Code No. (ITC Code)	Product Description
3923.90.90	Printed Articles of Plastic in Pouch Form
3926.90.90	Slider Zipper Assembly with or without Diaphram
3920.10.12	Plastic Film

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity
Poly Film	M.T.	54756
Pouches	M.T.	3190
Zipper / Diapharam	Mtrs. In Lacs	1209
Laminates/Foiling	M.T.	13200

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loans	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Term loans banks	(A)765.475	628.819
Working capital loans	342.746	345.934
Total	1108.221	974.753
NOTE: (A) Term Loan and Working Capital facilities from Banks are secured on pari-passu basis by way of Equitable Mortgage on Company's specific immovable properties situated at Baddi, (H.P.) and at Haridwar (Uttarakhand) and by way of Registered Mortgage on Company's specific immovable properties situated at Jammu (J. and K.). These are further secured on pari- passu basis by way of hypothecation of specific movable properties both present and future, all stocks of Raw-Materials, Semi-Finished Goods, Finished - Goods, Stores and Packing Materials etc. and Book Debts of the company. These are also guaranteed by one of the Directors of the Company.
Unsecured Loans	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Rupee term loans	15.000	30.380
Total	15.000	30.380

Banking Relations :	--
Auditors :
Name :	Jain Singhal and Associates Chartered Accountants
Address :	M-6, II nd Floor, M-Block Market Greater, Kailash –II, New Delhi-110048, India
PAN NO. :	AAAFJ1918Q
Wholly Owned Subsidiary Company:	Ultra America Inc., USA
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Uflex Limited, India Utech Developers Limited, India AKC Retailers Limited, India Flex Foods Limited, India Ultimate Enterprises Private Limited, India Flex International Private Limited, India Anshika Investments Private Limited, India Anant Overseas Private Limited, India Apoorva Extrusion Private Limited, India Anshika Consultants Private Limited, India A.R.Leasing Private Limited, India Cinflex Infotech Private Limited, India A.R.Aerotech Private Limited, India Kaya Kalp Medical Services Private Limited, India A.R. Infrastructures and Projects Private Limited, India AC Infrastructures Private Limited, India Club One Airways Private Limited, India Flex Industries Private Limited, India AC Infratech Private Limited, India RC Properties Private Limited, India A to Z Infratech Private Limited, India Ultimate Infratech Private Limited, India AKC Investments Private Limited, India Ganadhipati Investments Private Limited, India Flex Middle East FZE Uflex Europe Limited, Europe Flex Americas S.A.de C.V., America Flex P.Films Egypt, Egypt S.A.E. Ultimate Prepress LLP First Flexipack Corporation.

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions
200000	Preference Shares	Rs.100/- each	Rs. 20.000 Millions
	Total		Rs. 45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2412600	Equity Shares	Rs.10/- each	Rs. 24.126 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		24.126	24.126	24.126
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1183.233	948.921	775.650
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1207.359	973.047	799.776
LOAN FUNDS
1] Secured Loans		1108.221	974.753	406.723
2] Unsecured Loans		15.000	30.380	9.880
TOTAL BORROWING		1123.221	1005.133	416.603
DEFERRED TAX LIABILITIES		13.069	14.440	0.000
TOTAL		2343.649	1992.620	1216.379
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1478.211	1161.471	446.121
Capital work-in-progress		42.291	16.362	17.161
INVESTMENT		49.114	49.114	49.114
DEFERREX TAX ASSETS		0.000	0.000	20.066
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	267.710	175.027	99.611
	Sundry Debtors	633.365	535.869	422.769
	Cash & Bank Balances	25.915	105.643	13.737
	Other Current Assets	17.030	9.419	1.770
	Loans & Advances	161.354	285.792	341.059
Total Current Assets		1105.374	1111.750	878.946
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	146.324	222.966	87.872
	Other Current Liabilities	180.094	121.023	105.437
	Provisions	4.923	2.088	1.720
Total Current Liabilities		331.341	346.077	195.029
Net Current Assets		774.033	765.673	683.917
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2343.649	1992.620	1216.379

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4232.169	2665.180	2185.559
		Other Income	31.351	39.048	69.494
		TOTAL (A)	4263.520	2704.228	2255.053
Less	EXPENSES
		Consumption materials changes inventories	3206.622	1976.227
		Manufacturing service costs	268.070	187.427	1940.113
		Employee related expenses	104.304	61.686
		Administrative selling other expenses	134.865	99.647
		TOTAL (B)	3713.861	2324.987	1940.113
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		549.659	379.241	314.940
Less	FINANCIAL EXPENSES (D)		126.733	68.544	54.337
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		422.926	310.697	260.603
Less/ Add	DEPRECIATION/ AMORTISATION (F)		129.030	54.010	47.802
	PROFIT BEFORE TAX (E-F) (G)		293.896	256.687	212.801
Less	TAX		59.584	83.415	23.373
Add	Excess Provision in Earlier Year written back		0.000	0.000	0.049
Add	Provision for Income Tax of Earlier Year written back		0.000	0.000	0.043
	PROFIT AFTER TAX		234.312	173.272	189.520
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		948.921	775.649	586.129
	BALANCE CARRIED TO THE B/S		1183.233	948.921	775.649
	EARNINGS IN FOREIGN CURRENCY
		License Fees	0.000	0.000	10.371
	TOTAL EARNINGS		0.000	0.000	10.371
	IMPORTS
		Raw Materials	1098.668	547.415	163.814
		Stores & Spares	2.284	0.000	0.000
		Capital Goods	234.383	248.875	0.000
		Material-in-Transit – Raw Materials	15.185	9.554	0.000
	TOTAL IMPORTS		1350.520	805.844	163.814
	Earnings Per Share (Rs.)		97.12	71.82	78.55

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.50	6.41	8.40
Net Profit Margin (PBT/Sales)	(%)	6.94	9.63	9.74
Return on Total Assets (PBT/Total Assets}	(%)	11.38	11.29	15.82
Return on Investment (ROI) (PBT/Networth)		0.24	0.26	0.27
Debt Equity Ratio (Total Liability/Networth)		1.22	1.40	1.62
Current Ratio (Current Asset/Current Liability)		3.34	3.21	4.51

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s 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 in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-------------
Litigations that the firm/ Promoters Involved in	------------
Banking details	No
Banking Facility Details	Yes
Conduct of the Banking Account	------------
Buyer visit details	-------------
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

NOTE:

The company changed its registered office from 110, Ist Floor Bhanot Corner Pamposh Enclave, Greater Kailash - I, New Delhi - 110048, India to present address w.e.f. 16.10.2007.

REVIEW OF OPERATIONS

The year witnessed all round growth in terms of sales and profit before tax of the Company. It achieved a turnover of Rs.4263.521 Millions including other income of Rs.31.351 Millions over the previous year’s turnover of Rs.2704.005 Millions including other income of Rs.38.825 Millions

The profit before tax for the year ended 31st March, 2011 stood at Rs. 293.896 Millions from the previous year of Rs.256.463 Millions, thereby registering a growth of nearly 15%. The net profit of the current financial year was Rs.233.358 Millions in comparison to the net profit of Rs.174.428 Millions in the previous year, thereby registering a growth of nearly 34%.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

Particulars	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Import duty obligations on outstanding export commitment under EPCG Schemes	280.880	260.042
Letters of Credit (Unexpired)/Bank Guarantee issued by Banks (Net of Margin)	285.008	293.766
Additional demand raised by the Income Tax Department, which are under rectification and appeal.	105.924	85.181
Show cause notice / demands of Excise Authorities not acknowledged by the Company and are contested / appealed / replied.	74.676	73.783

FIXED ASSETS:

• Freehold Land
• Lease hold Land
• Building
• Building Temp Structure
• Plant and Machinery
• Electrical Fitting and Installation
• Office Equipments
• Furniture and Fixture
• Vehicles
• Computers
• Air Conditioner
• Fire Fighting Equipments
• Mould and Dies

AS PER WEBSITE DETAILS

PROFILE

Subject, is the largest manufacturer of multilayer polyethylene films (PE films) in Asia pacific region with a capacity of producing 72000 MT per annum.

UFL is equipped and has high focus to produce world class food grade polyethylene films having high DART value coupled with excellent seal strength, integrity and optical properties. UFL polyethylene films have high performance polymers e.g Metallocene and Enable, which offer excellent barrier properties and long shelf life. UFL has most modern manufacturing facilities, hygienic clean room environment and is pioneer having been certified both for ISO 9001: 2008 and ISO 22000:2205 (FSMS).

UFL team consists of highly technically qualified, committed and talented professionals. Among them, they have decades of experience in flexible packaging industry. Today, UFL product range of polyethylene films cover Milk, Oil, Ghee, Liquor, Detergent, General purpose (paneer, noodles, pulses, etc. etc.), PMT (Pan, Masala and Tobacco), misc. products (pesticides, bulk drugs and adhesives, etc.), Bread and Garments.

All the equipments are IBC controlled and are capable of manufacturing width ranging upto 3200 mm. UFL machines are equipped with Electronic Process Control(EPC) system and Automatic Feeding system. Due to this, UFL is able to produce high clarity PE films and having best possible gauge control in these films.

They are producing PE films in transparent, opaque and special colors such as blue, yellow, black etc and in various thicknesses, ranging from 15 micron to 200 micron for varied applications.

UFL can provide the film as per the customers’ requirements for various applications as per their needs. These films are tailor made and highly specialized for various applications requiring special nitrogen flushing properties and high dart. They are the pioneer in producing specialized PE films for reverse printing and lamination with PE films( Poly- Poly laminates).

Down gauzing of PE films is achieved with continuous R and D.  This is done without compromision on mechanical and seal integrity properties of PE films.  This results in substantial cost savings for their esteemed customers.

These films are highly economical and best suited for packing of grocery items like Atta and Oil. Products currently being packed includes chips, Hair Oil, Detergents, Noodles, Atta, tea, Taste Maker and other grocery items.

Further, UFL is associated with most of the leading converters, who require world class material at par with international standards to satisfy their increasing demands of their MNC customers.

UFL has full fledged laboratory and in house R and D facilities with the latest state-of-the-art European machines.

FINANCIALS GROWTH

As the world’s leading manufacturer of Poly films, they aim for long-term, profitable growth. To achieve this, they are committed to operational excellence, innovation and investment in growth markets. Their actions are guided by sustainable development. Their guidelines and principles summarize how they intend to achieve their corporate goals and to establish and implement their values within the company. They benefit from their broad portfolio, operational excellence and solid financing. At Ultimate Flexipack, economic considerations do not take priority over safety, health and environmental protection. Through innovations, they distinguish theirselves from their competitors and shape the future. They concentrate their research and commercial focus on innovative business areas and invest in growth markets at an early stage.

They constantly work on improving their sites, plants and processes and are continuing with their restructuring and cost-cutting measures.

They are increasing investments in research and development, because they consider innovations to be the key to profitable growth. Their focus is on developing solutions for global challenges, with a particular emphasis on future markets and technologies with high growth potential.

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

Report Prepared by :

ACH

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.