MIRA INFORM REPORT

Report Date :

06.11.2012

IDENTIFICATION DETAILS

Name :	SRC CHEMICALS PRIVATE LIMITED
Registered Office :	3 - A and B Archies Court, Shankar Seth Road, Pune - 411037, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.08.2002
Com. Reg. No.:	11-017227
Capital Investment / Paid-up Capital :	Rs.20.865 millions
CIN No.: [Company Identification No.]	U14107PN2002PTC017227
TAN No.: [Tax Deduction & Collection Account No.]	PNES07407B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Quick Lime and Ferro Alloy
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 340000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear huge external borrowings recorded by the company. However, Trade relations are reported as fair. Business is active. Payments are reported to b3e3 slow but correct. The company can be considered for small business dealings at usual trade terms and condition.

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	BB+ (Cash Credit)
Rating Explanation	Inadequate credit quality it carries high credit risk
Date	09.08.2012

Rating Agency Name	ICRA
Rating	A4 + (Non fund based)
Rating Explanation	The risk prone credit quality it carry high credit risk
Date	09.08.2012

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/ Corporate Office :	3 - A and B Archies Court, Shankar Seth Road, Pune - 411037, Maharashtra, India
Tel. No.:	91-20-26434080/2
Fax No.:	91-20-24449333/26434083
E-Mail :	sknpune@yahoo.com srccpune@rediffmail.com sureshlakhotia@vsnl.net sreepune@rediffmail.com pune@shreeram.net
Website :	www.shreeram.net
Ferro Alloys Division:	Gat No. 754, Village: Boriaendi, Near Urli Kanchan, Taluka: Daund District – Pune, Maharashtra, India
Chemical Division :	Serve No.5, Allah nagar, Baghal Road, Post Ginigera, District Koppal, Karnataka, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Suresh Kumar Sevaram Lakhotia

Designation :

Director

Address :

3 - A and B Archies Court, Shankar Seth Road, Pune - 411037, Maharashtra, India

Date of Birth/Age :

14.09.1956

Date of Appointment :

21.08.2002

PAN No.:

AAZPL4337L

DIN No.:

00038720

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	U14219RJ1994PTC008069	SHREE RAM LIME PRODUCTS Private LIMITED	Director	19/08/1995	19/08/1995	-	Active	NO
2	U14101RJ1995PTC011231	WHITE 'N' WHITE MINERALS PRIVATE LIMITED	Director	01/06/2002	01/06/2002	31/03/2007	Active	NO
3	U14107PN2002PTC017227	S R C CHEMICALS PRIVATE LIMITED	Director	21/08/2002	21/08/2002	-	Active	NO
4	U23101KA1997PTC056462	HOSPET ISPAT Private LIMITED	Managing director	01/12/2004	01/12/2004	05/06/2010	Active	NO
5	U51909WB1995PTC068071	RITONA VINIMAY PVT LTD	Director	05/03/2007	05/03/2007	-	Active	NO
6	U27102PN2007PTC130073	SHREE SHUBHAM ISPAT PRIVATE LIMITED	Director	30/04/2007	30/04/2007	-	Active	NO
7	U60230PN2007PTC130982	SHREE RAM CARGO PRIVATE LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO
8	U51109WB1995PTC068458	SRIDHAR CORPORATE MANAGEMENT PVT LTD	Director	08/11/2008	08/11/2008	-	Active	NO

Name :

Mrs. Meena Suresh Kumar Lakhotia

Designation :

Director

Address :

3 - A and B Archies Court, Shankar Seth Road, Pune - 411037, Maharashtra

Date of Birth/Age :

13.10.1959

Date of Appointment :

21.08.2002

PAN No.:

ABLPL0614P

DIN No.:

00056135

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	U14219RJ1994PTC008069	SHREE RAM LIME PRODUCTS Private LIMITED	Director	01/03/1994	01/03/1994	-	Active	NO
2	U23101KA1997PTC056462	HOSPET ISPAT Private LIMITED	Director	20/11/1997	20/11/1997	03/08/2007	Active	NO
3	U14107PN2002PTC017227	S R C CHEMICALS PRIVATE LIMITED	Director	21/08/2002	21/08/2002	-	Active	NO
4	U27102PN2007PTC130073	SHREE SHUBHAM ISPAT PRIVATE LIMITED	Director	30/04/2007	30/04/2007	-	Active	NO
5	U60230PN2007PTC130982	SHREE RAM CARGO PRIVATE LIMITED	Director	14/11/2007	14/11/2007	-	Active	NO
6	U60221RJ2008PTC026178	SV CARRIERS PRIVATE LIMITED	Director	18/03/2008	18/03/2008	-	Active	NO

Name :

Mr. Sunil Kumar Lakhotia

Designation :

Director

Address :

Shree Sadan, Door No. 236, MJ Nagar, Hosepet - 583201, Karnataka, India

Date of Birth/Age :

13.10.1974

Date of Appointment :

21.08.2002

PAN No.:

ABBPL6946Q

DIN No.:

00445280

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	U14107PN2002PTC017227	S R C CHEMICALS PRIVATE LIMITED	Director	21/08/2002	21/08/2002	-	Active	NO
2	U51900WB2005PTC106066	GUNMALA VINIMAY PVT LTD	Director	19/10/2007	19/10/2007	-	Active	NO
3	U27300GJ2008PTC055245	SHREE LAXMIHARI ISPAT PRIVATE LIMITED	Director	15/10/2008	15/10/2008	16/04/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Suresh Kumar Lakhotia	16430	8.36%
Meena Suresh Lakhotia	10500	5.34%
Sunil Lakhotia	1250	0.64%
Sridhar Corporate Management Private Limited	75300	38.30%
Rasalika Trading and Investment C o Private Limited	39600	20.14%
Savitri Lakhotia	5000	2.54%
S K Lakhotia (Huf)	11000	5.59%
Smriti Lakhotia	3200	1.63%
Bajranglal Bajaj	10	0.01%
Hemant Agnihotri	10	0.01%
O P Karwa	10	0.01%
R Harish	10	0.01%
Sanjeev Kumar Singh	2010	1.02%
Tushar Sheth	10	0.01 %
Lokendra Singh	10	0.01%
Darpan Barter Private Limited	2200	1.12%
Ritona Vinimay Private Limited	28000	14.24%
Deepak Agarwal	1360	0.69%
Sakshi Lakhotia	700	0.36%
	196610	100.00%

As on 30.03.2012

Names of Allottee	No. of Shares
Hiteshi Capital Management Limited, India	1370
Anagi Trading Private Limited, India	3440
Right Link Infra Project Private Limited, India	5510
Henna Textile Limited, India	1720
Total	12040

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	73.80
Directors or relatives of Directors	26.20
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Quick Lime and Ferro Alloy

Products :

ITC CODE NO.	PRODUCT/ SERVICES DESCRIPTION
252210	Quick Lime
720270	Ferro Alloys

PRODUCTION STATUS AS ON 31.03.2011

Installed Capacity:

24000 M.T.

Details of Turnover of Manufacturing Goods: As on 31.03.2011

Particulars	31.03.2011 Quantity in MT
Calcined Lime	31504.52
Waste Lime	2836.68
Hyd. Lime	3.3
Ferro Molybdneum	158.23
Calcined Lime Powder	4383.98
Total	38886.70

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Commercial Branch,1548-A, Tilak Road,, Sadashiv Peth, Pune - 411030, Maharashtra, India

· ICICI Bank Limited

· HDFC BANK Limited

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Cash Credit Limit – From State Bank of India	10.039	32.989
Bank Overdraft – From State Bank of India	5.529	8.462
Buyers Credit - From State Bank of India	67.078	0.000
Vehicle Loan
HDFC Bank Limited Car Loan	2.174	0.000
ICICI Car Loan	0.000	0.192
Total	84.820	41.643
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loan from Bodies Corporate	38.888	70.480
Loans from Others	7.289	8.909
Total	46.177	79.389

Note:

i) Demand Cash Credit from State Bank of India

Cash Credit facility of Rs. 40.000 Millions availed from State Bank of India ([Balance outstanding as on 31.03.2011 is 62.20 Millions],Previous year 247.61 Millions )is secured by way of hypothecation on stock in trade, book debts, other current assets, second charge on fixed assets and personal guarantees of Directors.

ii) Bank Over Draft facility from State Bank of India

Bank Overdraft facility having balance as on 31.03.2011 of Rs.5.529 Millions. ( Previous Year of Rs. 8.462 Millions) has been taken against Fixed Deposit of Rs. 10.000 Millions.

iii) Letter of Credit from State Bank of India

Letter of Credit facility sanctioned for Rs 50.000 Millions with adhoc limit of Rs. 50.000 Millions increased during the year (LC outstanding as on 31.03.2011 is Rs 89.000 Millions) is secured by 15% margin money and personal guarantees of the directors.

Buyers credit amounting to Rs. 67.078 Millions has been arranged from various banks against above letter of credit

iv) VEHICLE LOAN

a. ICICI Bank Limited

Car Loan of Rs. NIL Millions (Previous Year Rs. 0.192 Millions) from ICICI Bank Limited. sanctioned against hypothecation of Vehicle.

b. HDFC BANK Limited

Car loan of Rs. 2.500 Millions has been availed during the year from HDFC Bank Limited. sanctioned against

hypothecation of vehicle

Banking Relations :	--
Auditors :
Name :	S K Naredi and Company Chartered Accountants
Address :	310 Gera Garden Building No.1, 7A Koregaon Park Road, Near Saint Meera's College, Pune- 411001, Maharashtra, India
Tel. No.:	91-20-30582671
Fax No.:	91-20-30582670
E-Mail :	sknpune@yahoo.com
Website:	www.sknaredi.com
PAN No.:	AAFFS1613J
Sister Concern :	· Shree Ram Lime Products Private Limited [Pan No.: AABCS9160P] · Shree Ram Cargo Private Limited [Pan No.: AABCS9160P] · Shree Shubham Ispat Private Limited [Pan No.: AALCS3842G] · Ritona Vinimay Private Limited [Pan No.: AABCR6288H] · Sridhar Corporate Management Private Limited [Pan No.: AAHCS5201K]

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
196610	Equity Shares	Rs.100/- each	Rs.19.661 Millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
208650	Equity Shares	Rs.100/- each	Rs.20.865 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		19.661	19.661	18.061
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		65.640	55.373	27.910
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		85.301	75.034	45.971
LOAN FUNDS
1] Secured Loans		84.820	41.643	11.676
2] Unsecured Loans		46.177	79.389	48.187
TOTAL BORROWING		130.997	121.032	59.863
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Capital Subsidy		0.246	0.246	0.246
TOTAL		216.544	196.312	106.080
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.345	30.980	29.586
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		20.167	14.699	11.958
DEFERRED TAX ASSETS		1.183	0.303	0.112
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.349	35.978	3.533
	Sundry Debtors	152.213	123.768	74.070
	Cash & Bank Balances	2.614	3.554	4.267
	Other Current Assets	2.455	17.398	0.409
	Loans & Advances	9.991	8.269	16.762
Total Current Assets		204.622	188.967	99.041
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.886	27.950	23.407
	Other Current Liabilities	10.187	5.687	6.765
	Provisions	5.700	5.000	4.445
Total Current Liabilities		45.773	38.637	34.617
Net Current Assets		158.849	150.330	64.424
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		216.544	196.312	106.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	575.233	431.532	255.793
		Other Income	9.856	7.291	7.134
		TOTAL (A)	585.089	438.823	262.927
Less	EXPENSES
		Raw Material Consumed	463.862	323.717	182.109
		Manufacturing Overheads	54.150	61.625	37.954
		Personnel Cost	18.483	9.883	11.363
		Administrative and Other Overheads	16.538	15.375	9.253
		TOTAL (B)	553.033	410.600	240.679
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.056	28.223	22.248
Less	FINANCIAL EXPENSES (D)		13.394	11.514	7.693
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.662	16.709	14.555
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.577	2.821	2.868
	PROFIT BEFORE TAX (E-F) (G)		15.085	13.888	11.687
Less	TAX (H)		4.818	4.825	4.473
	PROFIT AFTER TAX (G-H) (I)		10.267	9.063	7.214
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.294	16.231	9.017
	BALANCE CARRIED TO THE B/S		35.561	25.294	16.231
	EARNINGS IN FOREIGN CURRENCY
		Commission on sales	0.000	0.068	8.780
	TOTAL EARNINGS		0.000	0.068	8.780
	Earnings Per Share (Rs.)		52.22	46.10	39.51

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.75	2.07	2.74
Net Profit Margin (PBT/Sales)	(%)	2.62	3.22	4.56
Return on Total Assets (PBT/Total Assets}	(%)	6.26	6.31	9.08
Return on Investment (ROI) (PBT/Net worth)		0.18	0.19	0.25
Debt Equity Ratio (Total Liability/Net worth)		2.07	2.13	2.05
Current Ratio (Current Asset/Current Liability)		4.47	4.89	2.86

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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)	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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITY

Letter of Credit of Rs. 22.787 Millions (Previous Year Rs. Nil )

Estimated amount of contracts remaining to be executed on capital account and not provided for (i.e. net of advances) Rs. 0.389 Millions (Previous Year Rs. NIL ).

Sales Tax C. Form for Inter State Sale of Rs. 2.604 Millions for the financial year 2008-09 is still pending to be received.

FIXED ASSETS:

· Land and Land Development

· Building

· Factory Building

· Electric Installations

· Plant and Machineries

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Heavy Vehicles

· Computer Systems

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 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.54.08
UK Pound	1	Rs.86.69
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		32

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.