MIRA INFORM REPORT

Report Date :

24.05.2012

IDENTIFICATION DETAILS

Name :	VANITA AGROCHEM (INDIA) PRIVATE LIMITED
Registered Office :	Shop No.7, Kamgar Bank Building, Station Road, Ichalkaranji, Kolhapur – 416 115, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.08.2003
Com. Reg. No.:	25-018212
Capital Investment / Paid-up Capital :	Rs.2.500 millions
CIN No.: [Company Identification No.]	U24119PN2003PTC018212
TAN No.: [Tax Deduction & Collection Account No.]	KLPV00868A
PAN No.: [Permanent Account No.]	AADCV7319N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chelated micronutrients, water soluble fertilizers etc.
No. of Employees :	Approximately 75 (In Office)

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 203000
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 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 :	Shop No.7, Kamgar Bank Building, Station Road, Ichalkaranji, Kolhapur – 416 115, Maharashtra, India
Tel. No.:	91-230-2439177/ 2430893/ 2434375
Mobile No.:	91-9822174113 (Mr. Netaji Powar) 91-9822978421 (Mr. Ravi Shankar) 91-9822186073 (Mr. Ajit Saibannavar)
Fax No.:	91-230-2436483
E-Mail :	office@vanitaagro.com vanchem@sancharnet.in vanchemind@dataone.in ravi@vanitaagro.com
Website :	www.vanitaagro.com
Area :	500 Sq.fts
Location :	Rented
Factory :	Gat No.1036/1037, At Post – Takawade, Sangli Naka Road, A/P Taluka – Shirol, District – Kolhapur – 416 121, Maharashtra, India
Tel. No.:	91-2322-264224/ 264478 91-230-6513066
Fax No.:	91-2322-264224/ 264477
E-Mail :	factory@vanitaagro.com sudhir@vanitaagro.com
Area :	47000 Sq.fts
Location :	Owned
Branch Office 1 :	Plot No.715-B, Vyankatesh Assets, A/P, Sangli – 416 416, Maharashtra, India
Tel. No.:	91-233-6611002
E-Mail :	prashant@vanitaagro.com
Area :	722.80 Sq.fts
Location :	Rented
Branch Office 2 :	103, The Solitaire, 40/4, Bhonde Colony, Off Karve Road, Eradawane, Pune – 41 004, Maharashtra, India
E-Mail :	data@vanitaagro.com
Area :	850 Sq.fts
Location :	Rented
Branch Office 3 :	Behind Primary school, A/P Mankapur Tal. Chikodi, District, Belgaum - 591 216, Karnataka, India
Area :	500 Sq.fts
Location :	Rented
Branch Office 4 :	Lower Ground Floor, Shop No.1 and Ground Floor Shop No.10, Bhakti Sankul, Pet Naka, Panchvati, Nasik – 422 003, Maharashtra, India
Tel. No.:	91-253-2511799
Fax No.:	91-253-2512799
E-Mail :	anil@vanitaagro.com
Area :	1326 Sq.fts
Location :	Rented
Branch Office 5 :	Also located at: v Sangamner (New Branch)

DIRECTORS

As on 30.09.2011

Name :

Mr. Netaji Prataprao Powar

Designation :

Managing Director

Address :

A 9, Royal Park, Behind Guru Chitramandir, Ichalkaraji, Kolhapur – 416 115, Maharashtra, India

netaji@vanitaagro.com

Date of Birth/Age :

08.12.1963

Date of Appointment :

16.02.2012

DIN No.:

00144545

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24119PN2003PTC018212	Vanita Agrochem (India) Private Limited	Managing director	16-02-12	07-08-03	Active	NO

Name :	Mrs. Rupali Santaji Powar
Designation :	Director
Address :	At Post Takawade, Ichalkaraji, Kolhapur – 416 103, Maharashtra, India
Date of Birth/Age :	08.06.1981
Date of Appointment :	10.10.2005
DIN No.:	01764582

KEY EXECUTIVES

Name :	Mr. Ajit Saibannavar
Designation :	Corporate and Dealership Enquiries
Mobile No. :	91-9822186073
Email :	ajit@vanitaagro.com
Name :	Mr. Ravishankar Neglur
Designation :	Purchase Department/ Business Manager
Mobile No.:	91-9822978421
Email :	ravi@vanitaagro.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Netaji Prataprao Powar	16250
Vanita Netaji Powar	1250
Santaji Prataprao Powar	2500
Prataprao Maruti Powar (HUF)	1250
Netaji Prataprao Powar (HUF)	1250
Rupali Santaji Powar	2500
Total	25000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chelated micronutrients, water soluble fertilizers etc.

Products :

Product Description	ITC Code No.
Chemicals	0108
Fertilizers	0203

v Chelated Micronutrients

v Water Soluble Fertilizers

v Micronutrients (inorganic)

v Secondary Nutrients

v Amino Acids and their Chelates

v Plant Growth Regulators

v Miscellaneous

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Actual Utilised Capacity
Potassium Magnesium Sulphate	M.T	100	47.2
Vanclean – 350, PH Reducer	M.T	100	64.1
Borax	M.T	200	136
Vardaan, Reedy, Cosomic	M.T	2000	226
Support	M.T	6000	3367
Microbor	M.T	50	41.3
Sequel	M.T	1800	101.8
Differ Fe.Eddha (Repacking)	M.T	10	4.3
Ammn. Molybdate	M.T	10	0.6
Boric Acid (Repacking)	M.T	30	20.3
Calcium Choride (Repacking)	M.T	10	2.8
Magnazium Nitrage (Repacking)	M.T	20	10
Pottassium Bicarbonate (Repacking)	M.T	10	6
Citric Acid (Repacking)	M.T	50	12.8
Adiya 19:19:19, 16:08:24, 13:40:13, 20:20:20, 00:0050, 12:61:00, 00:52:34, 13:00:45	M.T	3000	1093.9
Urea Phosphate	M.T	20	6
Schoena	M.T	700	223
Ferrous Sulphate, Kevada	M.T	10	3.1
Folwet	M.T	100	17.2
Sodium Chlorite	M.T	200	50.4
Vardan Liquid	K.I.	500	115.6
Instant Tel Powder	M.T	100	48
Phosphoric Acid	M.T	1000	275.3
Dodium Hydrosuphile	M.T	1000	384.6
Vanochips	M.T	100	20.8
Chamak Powder	M.T	100	21.6
S.Q. Powder	M.T	100	12.9
TOTAL		17320	6312.6

GENERAL INFORMATION

Suppliers :

v Abhishek Engineering and Chemicals Limited

v Auro Water Solutions

v Chetan Motors

v D.K. Enterprises

v Mehta Associates

v Mehta and Sons

v Opolo Systems

v Perfect Scale

v Rahul Agro Agencies

v Sear Exim Solution Private Limited

v Regal Steel Works

v Pooja Engineering Works

v Poonam Enterprises

v Purva Agencies

v Vijayalaxmi Trading Company

v Tirupati Sheti Vikas Kendra

v Shriram Traders

v National Chemicals

v Nilesh Hardware

v Sidheshwar Sheti Vikas Kendra

v Rayat Seva Krishi Udyog Sahakari Sangh Limited

Customers :

v Bajaj Seeds and Pesticide

v New Krishi Vikas Agency

v Karnataka Agro Chemicals, Bangalore

v Trans Agro India Private Limited

v Farmtech Agri Input. Gondal

v Vanita Aquatech

v Jayhind Nigave V.K.S. Sanstha Limited

v Berry’s Roses and Petals

v Flowhite Chemicals Private Limited

v Sejal Enterprises

v SGS India Private Limited

v Ultimate Infotrade Private Limited

v Shree Tirupati Data Forms

v Shreya Enterprises

v Shah Marketing Corporation

v The Professional Couriers

v Turbo Computers

v Supriya Talwalkar and Company

v V. Kumar and Sons

v T.K. Enterprises

v Tulsi Plywood Centre

No. of Employees :

Approximately 75 (In Office)

Bankers :

v Bank of Maharashtra, Ichalkaranji Branch, Mahendra Plaza (Patil Building), Station Road, Near S.T. Stand, Ichalkaranji, Kolhapur – 416 115, Maharashtra, India

v HDFC Bank Limited

v ICICI Bank Limited

v H.S.B.C. Bank Limited

v Choundeshwari Sahakari Bank Limited

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Bank of Maharashtra (T.L.) Mumbai Commercial Complex	6.278	8.053
Bank of Maharashtra - CC (Buyers Credit)	1.520	0.000
Bank of Maharashtra (ICH) C/C	65.639	37.121
Bank of Maharashtra Term Loan – 1.21	0.855	0.000
Bank of Maharashtra (TL) (New)	3.100	4.759
Bank of Maharashtra (ICH) Term Loan A/c (Old)	0.748	1.477
Bank of Maharashtra Vehicle Loan Linea	0.634	0.726
Bank of Maharashtra Vehicle Bolero Passenger (New -1 to 3)	1.304	0.000
HDFC Bank, Vehicle Loan, Balero Pickup	0.039	0.185
HDFC Bank, Vehicle Loan, Balero Passenger	0.032	0.207
HDFC Bank, Vehicle Loan, Logan	0.110	0.310
HDFC Bank, Vehicle Loan, Pajero	0.872	1.204
HDFC Bank, Vehicle Loan, Passion Plus	0.000	0.012
HDFC Bank, Vehicle Loan, Scorpio	0.110	0.313
HDFC Bank, Vehicle Loan, Tata 407	0.115	0.290
ICICI Bank (Commercial Building Loan)	0.292	0.000
HDFC Bank Limited (New Business Loan ) 3.000 millions	2.764	0.000
ICICI Bank (Commercial Building Loan)	0.000	0.435
ICICI Bank Limited, Indica Loan	0.000	0.038
ICICI Bank Limited, Tata 909 Loan	0.000	0.131
HDFC Bank Limited, Business Loan	0.000	1.364
Total	84.412	56.625
Above Term Loan is secured by Hypothecation of plant and machinery, equipment and furniture and mortgage of factory building at 1036/37, Takawade, Sangli Naka Road, Taluka Shirol District Kolhapur. The above working capital limit is secured by Hypothecation of all types of stock of the company and receivables.
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Utkarsh Chemicals (Deposit)	0.000	2.332
Power Netaji Pratapro (Deposit)	0.000	13.355
Vanita Aquachem (Deposit)	0.000	2.008
Vanita Aquatech	0.000	2.318
Total	0.000	20.013

Banking Relations :	--
Auditors :
Name :	Khire Khandekar and Kirloskar Chartered Accountants
Address :	1051, Madhav Nagar Road, Sangli – 416 416, Maharashtra, India
Tel. No.:	91-233-2375883
Fax No.:	91-233-2322893
Income-tax PAN of auditor or auditor's firm :	AABFK5801G

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs.3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		48.348	26.633	9.476
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		50.848	29.133	11.976
LOAN FUNDS
1] Secured Loans		84.412	56.625	42.619
2] Unsecured Loans		0.000	20.013	15.169
TOTAL BORROWING		84.412	76.638	57.788
DEFERRED TAX LIABILITIES		0.364	0.000	0.000
TOTAL		135.624	105.771	69.764
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.683	43.501	33.511
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.008	0.008	0.008
DEFERRED TAX ASSETS		0.000	0.578	0.058
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.616	46.708	20.514
	Sundry Debtors	57.745	25.158	18.456
	Cash & Bank Balances	3.720	2.941	6.188
	Other Current Assets	22.964	6.741	1.310
	Loans, Advances & Deposits	12.749	12.041	8.154
Total Current Assets		156.794	93.589	54.622
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.097	16.267	8.906
	Current Liabilities	2.376	1.112	1.131
	Provisions	37.400	14.543	8.422
Total Current Liabilities		65.873	31.922	18.459
Net Current Assets		90.921	61.667	36.163
MISCELLANEOUS EXPENSES		0.012	0.017	0.024
TOTAL		135.624	105.771	69.764

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	432.989	281.226	145.917
		Other Income	7.025	5.482	3.640
		TOTAL	440.014	286.708	149.557
Less	EXPENSES
		Cost of Sales	336.652	216.002	109.262
		Other Expenses	66.302	45.069	32.162
		TOTAL	402.954	261.071	141.424
	PROFIT BEFORE TAX		37.060	25.637	8.133
Less	TAX		14.179	8.480	2.032
	PROFIT AFTER TAX		22.881	17.157	6.101
Less	APPROPRIATIONS		3.455	0.000	0.000
	NET PROFIT		19.426	17.157	6.101
	Earnings Per Share (Rs.)		777.00	686.00	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.20	5.98	4.08
Net Profit Margin (PBT/Sales)	(%)	8.56	9.12	5.57
Return on Total Assets (PBT/Total Assets}	(%)	18.39	18.70	9.23
Return on Investment (ROI) (PBT/Networth)		0.73	0.88	0.68
Debt Equity Ratio (Total Liability/Networth)		2.96	3.73	6.37
Current Ratio (Current Asset/Current Liability)		2.38	2.93	2.96

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	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
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

Bankers Charges Report as per Registry

Corporate identity number of the company	U24119PN2003PTC018212
Name of the company	VANITA AGROCHEM (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shop No.7, Kamgar Bank Building , Station Road, Ichalkaranji, Kolhapur – 416 115, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Maharashtra, Ichalkaranji Branch, Kolhapur – 416 115, Maharashtra, India Email: bom85@mahabank.co.in
Nature of instrument creating charge	Composite Deed of Hypothecation dated 27th June 2011
Date of instrument Creating the charge	27.06.2011
Amount secured by the charge	Rs. 8.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Base Rate+3.25%=13.25% p.a. presently with monthly rest based on RBP applicable to Medium Industry or rate prescribed by Bank from time to time. Terms of repayment As per Agreement with the Bank Margin Minimum 25% in Banks Favour Extent and operation of the charge Facility - Short Term Loan. The charge on hypothecated assets continues till full repayment of Loan.
Short particulars of the property charged (Including location of the property)	Hypothecation of stock, book debts as detailed in the Loan Agreement.

FIXED ASSETS:

v Land

v Factory Buildings

v Buildings (Shop premises at Nashik)

v Building WIP (Commercial Complex, Mumbai)

v Plant and Machinery

v Furniture

v Furniture (WIP)

v Computer

v Vehicles

v Library Books

WEBSITE DETAILS:

PROFILE:

Subject is located in South West India in a village, Takawade, about 30 km away from the city of Kolhapur in Maharashtra state. 400 km South of Nhava Sheva Port, Mumbai, the company is well connected by air, express ways (roads) and trains. Started in the year 2003, now an ISO 9001 - 2008 certified company, has acquired a name in Indian market for its quality, price and services within a short span of time. Innovative approach and their honest intention to transform the life of farmers has helped them to get this name.

Mr. Netaji Powar, CEO of the company is a post graduate Chemical Engineer from Mumbai University and has worked as Technical Services Manager in one of the leading Sulfa drug manufacturing company in Mumbai for 5 years. He is being supported by a team of chemical engineers, agri graduates, chemistry graduates and microbiologists for his technical requirements. All of them have enough experience in their professions.

Subject has been built on a strong technical foundation and so the products manufactured satisfy even the most choosy and quality conscious customers. The range of products includes chelated micronutrients, water soluble fertilizers, inorganic micronutrients and their mixtures, secondary nutrients and their mixtures, amino acids with micronutrients and plant growth regulators / stimulants. Subject is indeed a complete plant nutrition company.

The present facility at Takawade is state of the  art consisting of manufacturing equipments to produce 600 MT / month of water soluble NPK formulations; 150 MT / month of chelated micronutrients, 150 MT/month of plain micronutrient mixtures (liquid  as well as powder for foliar  and fertigation), 350 MT / month of micronutrient mixture for soil application and 600 MT / month of secondary nutrient mixture for soil application.

The production facility has been supported by a full fledged quality control and research laboratory to meet all the international quality criteria. Alongwith other instruments, the laboratory is equipped mainly with analytical instruments like Atomic Absorption Spectrophotometer (AAS), UV - visible spectrophotometer, Flame photometer, Colorimeter, Turbidity meter, etc. They have all instruments and equipments to help farmers and their agronomists to analyze soil, water, leaf and petiole.

A library with good collection of books in the fields of chemical engineering / technology, agriculture, microbiology etc and a conference hall supports their technical staff. Though on the countryside, the facility has been constructed such that even their overseas visitors respect the vision behind the venture.

For domestic market, there is one distributor for each district and the products are being distributed through their dealer network. A fleet of vehicles (TATA 207, 407, 909) is used for delivering goods to distributors within a distance of 250 km. Their products are also sold in the Indian market by some of their corporate customers in their own brands.

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.55.93
UK Pound	1	Rs.88.15
Euro	1	Rs.70.87

INFORMATION DETAILS

Report Prepared by :

SMN

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.