MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	SRI KRISHNA PHARMACEUTICALS LIMITED
Registered Office :	C-4, Industrial Area, Uppal, Hyderabad – 500039, Andhra Pradesh.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.09.1974
Com. Reg. No.:	01-001790
Capital Investment / Paid-up Capital :	Rs.110.835 Millions
CIN No.: [Company Identification No.]	U24230AP1974PLC001790
TAN No.: [Tax Deduction & Collection Account No.]	HYDS01333D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Active Pharmaceutical Ingredients (API’s), Direct Compression Granules, Drug Delivery Systems, Vitamins and Testicles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 3000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 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/ Factory :	C-4, Industrial Area, Uppal, Hyderabad – 500039, Andhra Pradesh, India.
Tel. No.:	91-40-27201101-02/ 27200103/ 27204471-72
Fax No.:	91-40-27200103/ 27204470/ 27205432
E-Mail :	nsk@srikrishnapharma.com vvs@srikrishnapharma.com
Website :	http://www.srikrishnapharma.com

DIRECTORS

(AS ON 23.09.2011)

Name :

Dr. Vempalli Venkata Subba Reddy

Designation :

Chairman

Address :

Plot No. 110, Road No. 4, Dhanalakshmi Colony, Mahendra Hills, East Maredpally, Secunderabad-500026, Andhra Pradesh, India.

Date of Birth/Age :

26.09.1942

Date of Appointment :

28.09.2010

DIN No.:

00626671

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24230AP1974PLC001790	SRI KRISHNA PHARMACEUTICALS LIMITED	Whole-time director	28-09-10	26-09-74	-	Active	NO
2	L24110AP1985PLC005315	SRI KRISHNA DRUGS LIMITED	Managing director	01-08-08	18-02-85	-	Amalgamated	NO
3	U65910AP1990PTC011408	KELLTON SECURITIES PRIVATE LIMITED	Director	21-06-90	21-06-90	16-09-09	Active	NO
4	U24110AP1993PTC016704	SRI KRISHNA AGRI - FOODS PRIVATE LIMITED	Director	08-12-93	08-12-93	-	Active	NO
5	U67120AP1995PTC021208	KELLTON COMMODITY AND DERIVATIVES PRIVATE LIMITED	Director	26-07-95	26-07-95	22-01-10	Active	NO
6	U67120AP1995PTC021206	SRIPAD EQUITIES PRIVATE LIMITED	Director	26-07-95	26-07-95	-	Active	NO
7	U24120AP1995PTC021782	SRI KRISHNA BIOFERT PRIVATE LIMITED	Director	21-09-95	21-09-95	-	Active	NO
8	L24110AP1980PLC002633	PREMIER EXPLOSIVES LIMITED	Director	27-05-99	27-05-99	30-09-09	Active	NO
9	U72200AP2000PLC034518	ENSOLVIA INFOTECH LIMITED	Director	29-05-00	29-05-00	-	Active	NO
10	U72300TN2003PTC051618	PROPART SOLUTIONS INDIA PRIVATE LIMITED	Director	20-10-03	20-10-03	30-12-05	Active	NO
11	U85100TZ2011PTC017124	ISHA AROGYA PRIVATE LIMITED	Director	02-06-11	02-06-11	-	Active	NO

Name :

Mr. Vempalli Venkata Krishna Reddy

Designation :

Managing Director

Address :

3-33-39, Dhanalakshmi Colony, Mahendra Hills, East Maredpally, Secunderabad - 500026, Andhra Pradesh, India.

Date of Birth/Age :

31.08.1966

Date of Appointment :

15.10.1997

DIN No.:

00024216

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67120AP1995PTC021208	KELLTON COMMODITY AND DERIVATIVES PRIVATE LIMITED	Director	26-07-95	26-07-95	22-01-10	Active	NO
2	U67120AP1995PTC021206	SRIPAD EQUITIES PRIVATE LIMITED	Director	26-07-95	26-07-95	-	Active	NO
3	U24120AP1995PTC021782	SRI KRISHNA BIOFERT PRIVATE LIMITED	Director	21-09-95	21-09-95	-	Active	NO
4	U65910AP1990PTC011408	KELLTON SECURITIES PRIVATE LIMITED	Director	11-10-97	11-10-97	16-09-09	Active	NO
5	U24230AP1974PLC001790	SRI KRISHNA PHARMACEUTICALS LIMITED	Managing director	28-09-10	15-10-97	-	Active	NO
6	L24110AP1985PLC005315	SRI KRISHNA DRUGS LIMITED	Director	04-06-98	04-06-98	-	Amalgamated	NO
7	U72200AP2000PLC034518	ENSOLVIA INFOTECH LIMITED	Director	29-05-00	29-05-00	-	Active	NO

Name :

Mr. Vempalli Satyavathi

Designation :

Director

Address :

Plot No. 110, Road No. 4, Dhanalakshmi Colony, Mahendra Hills, East Maredpally, Secunderabad-500026, Andhra Pradesh, India.

Date of Birth/Age :

18.03.1945

Date of Appointment :

13.12.1983

DIN No.:

00626709

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24230AP1974PLC001790	SRI KRISHNA PHARMACEUTICALS LIMITED	Director	13-12-83	13-12-83	-	Active	NO
2	L24110AP1985PLC005315	SRI KRISHNA DRUGS LIMITED	Director	18-02-85	18-02-85	-	Amalgamated	NO
3	U65910AP1990PTC011408	KELLTON SECURITIES PRIVATE LIMITED	Director	21-06-90	21-06-90	16-09-09	Active	NO
4	U24110AP1993PTC016704	SRI KRISHNA AGRI - FOODS PRIVATE LIMITED	Director	08-12-93	08-12-93	-	Active	NO
5	U24120AP1995PTC021782	SRI KRISHNA BIOFERT PRIVATE LIMITED	Director	21-09-95	21-09-95	-	Active	NO
6	U72200AP2000PLC034518	ENSOLVIA INFOTECH LIMITED	Director	17-09-08	31-07-08	-	Active	NO

Name :

Mr. Chivukula Gopala Krishna Murty

Designation :

Director

Address :

7-B, Sanjeeva Reddy Nagar, Hyderabad-500038, Andhra Pradesh, India.

Date of Birth/Age :

16.01.1931

Date of Appointment :

06.05.1969

DIN No.:

00312700

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24110AP1985PLC005315	SRI KRISHNA DRUGS LIMITED	Director	18-02-85	18-02-85	-	Amalgamated	NO
2	U24230AP1974PLC001790	SRI KRISHNA PHARMACEUTICALS LIMITED	Director	06-05-89	06-05-89	-	Active	NO
3	U65910AP1990PTC011408	KELLTON SECURITIES PRIVATE LIMITED	Director	21-06-90	21-06-90	16-09-09	Active	NO
4	U24110AP1993PTC016704	SRI KRISHNA AGRI - FOODS PRIVATE LIMITED	Director	08-12-93	08-12-93	-	Active	NO
5	U24231TN1994PLC027491	NATCO ORGANICS LIMITED	Director	28-09-96	28-09-96	-	Active	NO
6	U24239AP1978PLC002276	GLAND PHARMA LIMITED	Director	30-08-04	30-08-04	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 23.09.2011)

Names of Shareholders	No. of Shares
Dr. V. V. Subba Reddy (IND)	1503000
C Ramakrishna Reddy	3500
V. Satyavathi	2430500
C Reddy Rani	3500
G Konida Reddy	11900
G.V. Subba Reddy	7000
Sunitha Reddy	550100
Vempalli Venkata Krishna Reddy	1752050
V. Shilpa	290300
V.V. Subba Reddy HUF	3033150
Hitesh Talreja	67
Jasu Parekh	200
Mayur Shah	67
Nidhi Parekh	267

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	98.61
Other top fifty shareholders	1.01
Others	0.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of active pharmaceutical ingredients (API’s), Direct compression granules, drug delivery systems, vitamins and testicles.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India,

Overseas Branch, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India

· Syndicate Bank

N S Road, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Banks Secured	74.320	91.054
Rupee Term Loans Financial Institution Secured	163.231	5.100
Working Capital Loans Banks Secured	153.356	79.480
Working Capital Loans Other Secured	2.717	19.747
Hire Purchase Installment Payable Secured	0.000	0.787
Total	393.624	196.168
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans Directors Unsecured	137.399	109.072
Total	137.399	109.072

Banking Relations :	--
Financial Institution :	· A P State Financial Company Chirag Ali Lane, ABIDS, Hyderabad, Andhra Pradesh, India
Auditors :
Name :	Tukaram and Company Chartered Accountant
Address :	# 3-6-69, Flat No. 209, Venkatarama Towers, Basheerbagh, Hyderabad-500029, Andhra Pradesh, India.
Tel. No.:	91-40-23221536/ 23228785/ 23228086
Fax No.:	91-40-23221474
Pan No.:	AAAFT9960E

CAPITAL STRUCTURE

(AS ON 23.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11918455	Equity Shares	Rs.10/- each	Rs.119.185 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11083455	Equity Shares	Rs.10/- each	Rs.110.835 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		110.835	110.835	87.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		559.098	484.820	273.843
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		669.933	595.655	361.343
LOAN FUNDS
1] Secured Loans		393.624	196.168	104.111
2] Unsecured Loans		137.399	109.072	2.556
TOTAL BORROWING		531.023	305.240	106.667
DEFERRED TAX LIABILITIES		41.654	33.407	23.626
TOTAL		1242.610	934.302	491.636
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		525.960	470.525	236.524
Capital work-in-progress		27.213	2.359	0.000
INVESTMENT		0.383	0.446	0.006
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	463.129	358.392	183.614
	Sundry Debtors	708.637	522.861	410.003
	Cash & Bank Balances	55.851	96.036	29.782
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	178.205	179.244	68.363
Total Current Assets		1405.822	1156.533	691.762
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	512.923	478.531	353.773
	Other Current Liabilities	133.167	103.363	13.786
	Provisions	70.678	113.667	69.097
Total Current Liabilities		716.768	695.561	436.656
Net Current Assets		689.054	460.972	255.106
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1242.610	934.302	491.636

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2442.511	2057.290	1428.909
		Other Income	22.153	26.992	67.531
		TOTAL (A)	2464.664	2084.282	1496.440
Less	EXPENSES
		Consumption Material Changes Inventories	1552.994	1231.850	927.234
		Manufacturing Service Costs	204.599	167.258	87.591
		Employees related Expenses	204.433	164.496	94.172
		Administrative, Selling and Other Expenses	261.670	198.296	205.358
		Prior Period Items	0.712	0.615	0.025
		TOTAL (B)	2224.408	1762.515	1314.380
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		241.680	311.849	182.060
Less	FINANCIAL EXPENSES (D)		45.618	29.489	15.819
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		196.062	282.360	166.241
Less/ Add	DEPRECIATION/ AMORTISATION (F)		59.069	51.142	30.727
	PROFIT BEFORE TAX (E-F) (G)		136.993	231.218	135.514
Less	TAX (H)		48.910	86.386	49.506
	PROFIT AFTER TAX (G-H) (I)		88.083	144.832	86.008
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		398.966	277.036	173.656
Add	EXCESS PROVISION MADE IN INCOME TAX ON EARLIER YEAR WRITTEN BACK AND REFUNDS		0.047	0.005	0.587
Less	APPROPRIATIONS
		Final Dividend	11.918	17.500	8.750
		Tax on Distributed Profits	1.934	2.906	1.487
		Amount Transferred to General Reserve	2.500	2.500	2.500
	BALANCE CARRIED TO THE B/S		470.744	398.967	247.514
	EARNINGS IN FOREIGN CURRENCY		1321.813	974.590	669.136
	IMPORTS
		Raw Materials	875.555	616.178	367.990
		Capital Equipment	6.450	3.176	0.000
	TOTAL IMPORTS		882.005	619.354	367.990
	Earnings Per Share (Rs.)		7.95	13.07	9.90

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.57	6.95	5.75
Net Profit Margin (PBT/Sales)	(%)	5.61	11.24	9.48
Return on Total Assets (PBT/Total Assets}	(%)	7.09	14.21	14.60
Return on Investment (ROI) (PBT/Networth)		0.20	0.39	0.38
Debt Equity Ratio (Total Liability/Networth)		1.86	1.68	1.50
Current Ratio (Current Asset/Current Liability)		1.96	1.66	1.58

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF PERFORMANCES:

During the financial year under consideration 6803.03 MT’s of Paracetamol, 2782.92 MT’s of D C Granules and 55.91 MT’s of Domperidone were produced as against previous year’s production of 5860.43 MT’s Paracetamol, 1470.40 MT’s of D.C. Granules and 41.06 MT’s of Domperidone respectively. The company recorded a turnover of Rs.2420.398 Millions as against the previous year’s turnover of Rs. 2040.534 Millions

During the year the Company’s sales quantity of Paracetamol 6709.38 MT’s, D C Granules 2718.70 MT’s and Domperidone 55.74 MT’s as against the previous year Paracetamol sale quantity of 5879.43 MT’s, D C Granules 1456.83 MT’s and Domperidone 42.03 MT’s.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90124330
Corporate identity number of the company	U24230AP1974PLC001790
Name of the company	SRI KRISHNA PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	C-4, Industrial Area, Uppal, Hyderabad-500039, Andhra Pradesh, India. nsk@srikrishnapharma.com
Type of charge	Immovable Property as Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, Overseas Branch, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India. Tummalapalli.sankar@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Supplemental agreement of loan for increase in the overall limit 2. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit 3. Memorandum of deposits for creation of further charge
Date of instrument Creating the charge	21.01.2012
Amount secured by the charge	Rs.1348.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest CC (Hypothecation)-4.75% above BR Present effective rate being 14.75%,Term Loan-I and Corporate Loan-6.50% above BR Present effective rate being 16.50%Term Loan-II - 4.75% above BR Present effective rate being 14.75%. Terms of Repayment Term Loan-11 of Rs 300.000 Millions shall be repayable in 54 Quarterly Installments. Margin 1) Cash Credit - Raw Material (Domestic and Imported); Stocks-in-process; Finished Goods, Book Debts/ Receivables: 25% 2) EPC, LC and BG: 10% Extent and Operation of the charge 1) i) WC ii) Corporate -primary- exclusive first charge (hypothecation) on current assets of the company.-collateral- extension on first charge on fixed assets of the company both present and future including EM of immovable properties. 2) Term Loan l and II- primary-exclusive first charge on fixed assets of the company both present and future including EM of immovable properties.-collateral- extension of charge on current assets of the company.
Short particulars of the property charged	Industrial Plot Bearing No. C-4 in S. No 581/1,582/2,582 and 583 situated at Industrial Estate Uppal Kalan, Uppal Mandal, Ranga Reddy, District Andhra Pradesh. Industrial Plot Bearing No. A-35 admeasuring 4091.71 sq mts situated at Nacharam Village, Uppal Mandal, Ranga Reddy, District Andhra Pradesh. Land admeasuring Ac.1.11 Gts situated at Industrial Estate, Uppal and Land admeasuring AC 1.21 Gts Industrial Estate, Uppal Kalan, Uppal Mandal, Ranga Reddy, District Andhra Pradesh. Industrial Plot Bearing No.C-2 (a) in S. No 581/1,582/2,582 and 583 situated at Industrial Estate, Uppal Kalan, Uppal Mandal, Ran Industrial Plot Bearing No. C-1/2(A) situated at Industrial Estate, Uppal IAgricultural Dry Land situated at S.No 57. Raikunta Village, Pedda Golconda Kalan, Shamshabad Mandal, Ranga Reddy, District Andhra Pradesh. S.No 57, 17, 97 and 98, 98, 97/E, 98/E, 112 Shamshabad Mandal, Ranga Reddy, District Andhra Pradesh S.No 31, 30, 7, 4, 6, 48, 29, Athevelly (V), Medchal Mandal, Ranga Reddy, District Andhra Pradesh S.No 195, 155, 189 Thakkapali Village, Yacharam Mandal, Ranga Reddy, District Andhra Pradesh TS/RS No. 64Serilingampally, Ranga Reddy, District Andhra Pradesh S.No 296/07/10, Bollarum Village, Narsapur Taluq Medak ,District Andhra Pradesh
Particulars of the present modification	Enhancement and renewal of overall banking facilities from Rs.1178.000 Millions to Rs.1348.000 Millions

FIXED ASSETS:

· Land

· Lease Land

· Factory Buildings

· Administrative Buildings

· Plant and Machinery

· Electrical Equipments

· Workshop Equipments

· Water Systems

· Storage Systems

· Computers

· Furniture and Fixtures

· Laboratory Equipments

· Office Equipments

· Air Conditioner

· 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 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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.