MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	PRINCE PIPES AND FITTINGS PRIVATE LIMITED
Registered Office :	Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari Honda, Goa – 403530, Goa
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.11.1987
Com. Reg. No.:	24-006287
Capital Investment / Paid-up Capital :	Rs.120.012 Millions
CIN No.: [Company Identification No.]	U26932GA1987PTC006287
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06179F
PAN No.: [Permanent Account No.]	AAACP2319J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of UPVC Pipes, Fittings, Valves and PP-R Plumbing Systems.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2800000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB (Term Loan)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.03.2012

Rating Agency Name	ICRA
Rating	BBB (Long Term Fund Based Limit)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.03.2012

Rating Agency Name	ICRA
Rating	A3 (Short Term Non Fund Based Limit)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	26.03.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari Honda, Goa – 403530, Goa, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	ppf@vsnl.com accounts@princepipes.com mktg@princepipes.com export@princepipes.com sales@princepipes.com mcs@princepipes.com
Website :	http://www.princepipes.com
Area :	4000 sq. ft
Location :	Owned
Factory 1 :	Athal Road, Village Athal, Survey No. 132/1/1/3, Naroli, Silvassa – 396235, Dadra and Nagar Haveli, India
Tel. No.:	91-260-2640007
Fax No.:	91-260-2640082
Factory 2 :	Jayant Desai Marg, Survey No. 53 and 92, Vaghdhra Road, Dadra – 396191, India
Tel. No.:	91-260-2668091
Fax No.:	91-260-2668090

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Jayant Shamji Chheda
Designation :	Managing Director
Address :	Room No. 1001, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	31.07.1946
Qualification :	Inter Arts
Date of Appointment :	13.11.1987
Voter ID No.:	MT-06-033-081800
DIN No.:	00013206

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	U26932GA1987PTC006287	PRINCE PIPES AND FITTINGS PRIVATE LIMITED	Managing director	13/11/1987	13/11/1987	-	Active	NO
2	U31300DD1999PTC002689	PINNACLE REALTY PROJECTS PRIVATE LIMITED	Director	18/05/1999	18/05/1999	-	Active	NO
3	U70100MH1988PTC048363	MERINO HOMELAND PRIVATE LIMITED	Director	15/05/2006	15/05/2006	25/05/2010	Dissolved	NO
4	U45203MH2007PTC176301	ACCORD INFRA PROJECTS PRIVATE LIMITED	Director	29/11/2007	29/11/2007	-	Active	NO
5	U17210GA2007PTC006572	ACE POLYPLAST PRIVATE LIMITED	Director	03/12/2007	03/12/2007	-	Active	NO
6	U25200GJ2005PTC046624	KENSON MANUFACTURE PRIVATE LIMITED	Director	09/12/2009	09/12/2009	-	Active	NO

Name :	Mr. Parag Jayant Chheda
Designation :	Whole Time Director
Address :	Room No. 1002, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	07.05.1971
Qualification :	Associate in Business Administration
Date of Appointment :	27.04.1996
Voter ID No.:	MT-06-033-081710
DIN No.:	00013222

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	U26932GA1987PTC006287	PRINCE PIPES AND FITTINGS PRIVATE LIMITED	Whole-time director	27/04/1996	27/04/1996	-	Active	NO
2	U31300DD1999PTC002689	PINNACLE REALTY PROJECTS PRIVATE LIMITED	Director	18/05/1999	18/05/1999	-	Active	NO
3	U45203MH2007PTC176301	ACCORD INFRA PROJECTS PRIVATE LIMITED	Director	29/11/2007	29/11/2007	-	Active	NO
4	U17210GA2007PTC006572	ACE POLYPLAST PRIVATE LIMITED	Director	03/12/2007	03/12/2007	18/07/2009	Active	NO
5	U25200GJ2005PTC046624	KENSON MANUFACTURE PRIVATE LIMITED	Director	09/12/2009	09/12/2009	-	Active	NO

Name :	Mr. Vipul Jayant Chheda
Designation :	Director
Address :	Room No. 1001, Mount Blanc, Plot No. 550 Jame Jamshed Raod, Matunga-CR, Mumbai-400019, Maharashtra, India.
Date of Birth/Age :	08.06.1975
Qualification :	B. Com.
Date of Appointment :	03.12.2007
Voter ID No.:	MT-06-033-081688
DIN No.:	00013234

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	U26932GA1987PTC006287	PRINCE PIPES AND FITTINGS PRIVATE LIMITED	Director	11/03/1997	11/03/1997	Active	NO
2	U31300DD1999PTC002689	PINNACLE REALTY PROJECTS PRIVATE LIMITED	Director	18/05/1999	18/05/1999	Active	NO
3	U17210GA2007PTC006572	ACE POLYPLAST PRIVATE LIMITED	Director	03/12/2007	03/12/2007	Active	NO
4	U25200GJ2005PTC046624	KENSON MANUFACTURE PRIVATE LIMITED	Director	09/12/2009	09/12/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Jayant Shamji Chheda	960000
Tarla Jayant Chheda	3828000
Parag Jayant Chheda	3599600
Jayant Karta Shamji Cheeda HUF	12000
Pinnacle Realty Projects Private Limited, India	400
Prince Multiplast Private Limited, India	400
Heena Parag Chheda	400
Ashwini Vipul Chheda	400
Vipaul Jayant Chheda	3600000
TOTAL	12001200

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of UPVC Pipes, Fittings, Valves and PP-R Plumbing Systems.

Products :

Product Description	ITC Code
Pipes and Fittings (Joints, Elbows of Plastic)	3917.00
Taps, Cocks, Valves and Similar Appliances for Pipes	8481.00
Injections Moulding and Extruders

PRODUCTION STATUS (AS ON : 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Injection Moulding and Extruders Items	MT	*82920 TPA	152418802

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· Dena Bank, Scope Complex Core No 6 7 Lodhi Road, New Delhi - 110003, India

· Bank of India, Mumbai Mid Corporate, 70/80, M.G. Road, Bank Of India Building, Mezzanine Floor, Fort, Mumbai – 400001, Maharashtra, India

· Barclays Bank Plc, 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

· State Bank of India, Commercial Branch, N G N Vaidya Marg, Fort, Mumbai-400001, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working capital loans secured
Working capital loans banks secured	736.440	679.650
Working capital loans others secured	725.020	697.772
TOTAL	1461.460	1377.422
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans directors unsecured	203.246	99.269
Other debt unsecured	124.969	111.251
TOTAL	328.215	210.520

Banking Relations :	--
Auditors :
Name :	L.D. Joshi and Associates Chartered Accountant
Address :	2-G, Court Chambers, 2^nd Floor, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22023058
Fax No.:	91-22-22005568
Pan No.:	AACFL7859G
Associates :	Prince Marketing Pinnacle Realty Projects Private Limited Ace Polyplast Private Limited Kenson Manufacture Private Limited

CAPITAL STRUCTURE

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
12001200	Equity Shares	Rs.10/- each	Rs. 120.012 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		120.012	120.012	120.012
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		589.868	454.943	338.083
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		709.880	574.955	458.095
LOAN FUNDS
1] Secured Loans		1461.460	1377.422	1152.349
2] Unsecured Loans		328.215	210.520	52.141
TOTAL BORROWING		1789.675	1587.942	1204.490
DEFERRED TAX LIABILITIES		99.873	85.409	0.000
TOTAL		2599.428	2248.306	1662.585
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1211.989	1230.326	881.651
Capital work-in-progress		15.821	0.000	68.153
INVESTMENT		9.200	15.979	36.474
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	514.764	521.371	345.103
	Sundry Debtors	723.207	519.660	362.063
	Cash & Bank Balances	43.693	50.166	26.796
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	543.927	359.230	308.611
Total Current Assets		1825.591	1450.427	1042.573
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	323.765	330.748	306.970
	Current Liabilities	66.198	49.853	44.557
	Provisions	80.896	78.976	35.577
Total Current Liabilities		470.859	459.577	387.104
Net Current Assets		1354.732	990.850	655.469
MISCELLANEOUS EXPENSES		7.686	11.151	20.838
TOTAL		2599.428	2248.306	1662.585

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4469.038	3648.021	2314.192
		Other Income	NA	28.147	(18.698)
		TOTAL (A)	NA	3676.168	2295.494
Less	EXPENSES
		Material consumed			1475.730
		Employees Remuneration and Benefits			97.572
		Manufacturing and Other expenses	NA	3315.716	502.808
		Increase/Decrease in Stock			(58.108)
		TOTAL (B)	NA	3315.716	2018.002
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	360.452	277.492
Less	FINANCIAL EXPENSES (D)		NA	0.000	159.857
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		316.563	360.452	117.635
Less/ Add	DEPRECIATION/ AMORTISATION (F)		125.840	113.139	57.781
	PROFIT BEFORE TAX (E-F) (G)		190.723	247.313	59.854
Less	TAX (I)		52.039	66.142	11.224
	PROFIT AFTER TAX (G-I) (J)		138.684	181.171	48.630
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		444.943	338.083	296.459
Less:	SHORT PROVISION FOR TAXATION FOR EARLIER YEARS		3.759	0.000	0.000
Less	TRANSFER TO DEFERRED TAX LIABILITY		0.000	64.311	0.000
Less	APPROPRIATIONS
		Appropriations to General Reserve	0.000	10.000	0.000
		Capitalized for issue of Bonus Share	0.000	0.000	7.006
	BALANCE CARRIED TO THE B/S		579.868	444.943	338.083
	EARNINGS IN FOREIGN CURRENCY
		Earnings	NA	54.562	42.508
	TOTAL EARNINGS		NA	54.562	665.183
	IMPORTS
		PVC Resins and PPR	NA	941.488	421.081
		Chemical	NA	20.527	16.358
		Consumable Stores	NA	3.306	2.011
		Trading Purchase	NA	24.429	15.252
		Capital items	NA	58.706	99.802
	TOTAL IMPORTS		NA	1048.456	554.504
	Earnings Per Share (Rs.)		11.56	15.10	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	4.93	2.12
Net Profit Margin (PBT/Sales)	(%)	4.27	6.78	2.59
Return on Total Assets (PBT/Total Assets}	(%)	6.25	9.23	3.89
Return on Investment (ROI) (PBT/Networth)		0.27	0.43	0.13
Debt Equity Ratio (Total Liability/Networth)		3.18	3.56	3.47
Current Ratio (Current Asset/Current Liability)		3.88	3.16	2.69

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

PERFORMANCE OF THE COMPANY

The financial year 2010-11 is yet another year of significant growth. During the year, the Company has achieved a

turnover of Rs.4469.038 Millions as against Rs.3648.021 Millions in the previous year, which is 22.50% higher as compared to the previous year. The net profit after tax was Rs. 134.925 Millions as against Rs. 181.171 Millions in the previous year.

FUTURE OUTLOOK

The Company’s sales have been growing steadily from past few years and there is a gap between the demand and supply of PVC pipes and fittings. The Company has filed a petition for merger of unit acquired at Bhuj-Kutch,

Gujarat and is at the final stage of completion. Thereby the volume of the company will be increased by Rs.1000.000 Millions p.a.

FORM 8

Corporate identity number of the company	U26932GA1987PTC006287
Name of the company	PRINCE PIPES AND FITTINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1 Honda Industrial Estate, Phase II, Honda Sattari Honda, Goa – 403530, Goa, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Bank of India, Mumbai Mid Corporate, 70/80, M.G. Road, Bank Of India Building, Mezzanine Floor, Fort, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	Hypothecation Cum Loan Agreement (Plant and Machinery, Stocks and Book Debts).
Date of instrument Creating the charge	30.04.2012
Amount secured by the charge	Rs. 50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per extent Guidelines. Terms of repayment On due Date/ On demand. Margin 25% against raw material, finished goods, stores, goods in process, book-debts outstanding of 3 months and 100% against book-debts outstanding for more than 3 months to less than 6 months. Extent and operation of the charge Hypothecation by way of First Pari-passu Charge on Company's Plant and Machinery, Stocks and Book Debts etc. to secure as a Continuing Security for repayment of Rs.50.000 Millions, by the Company to the Bank with interest/commission, charges, costs and expenses.
Short particulars of the property charged (Including location of the property)	All tangible movable machineries and plants (both Present and future), whether installed or not and whether lying loose or at site or in transit or acquired All tangible movable properties, assets and stocks, whatsoever nature of the Borrower (both present and future) and including but WITHOUT PREJUDICE TO the generality All the present and future book-debts, outstanding, money receivables, claims, bills which are now due and owing

FIXED ASSETS

· Land

· Building

· Plant and machinery

· Electrical installation

· Computer

· Moulds and dies

· Office equipments

· Furniture and fixtures

· 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 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 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. 53.66
UK Pound	1	Rs. 86.37
Euro	1	Rs. 69.24

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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		46

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.