MIRA INFORM REPORT

Report Date :

12.11.2012

IDENTIFICATION DETAILS

Name :	FERTICHEM COTSPIN LIMITED
Registered Office :	182/11, Industrial Area, Phase 1, Chandigarh, U T – 160 002, Chandigarh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.02.1991
Com. Reg. No.:	53-011127
Capital Investment / Paid-up Capital :	Rs.142.500 millions
CIN No.: [Company Identification No.]	U17115CH1991PLC011127
PAN No.: [Permanent Account No.]	AAACF4298C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of open-end spun, coarse yarns.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 712000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Also the company has recorded huge external borrowings. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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	B + [Fund Based Limit]
Rating Explanation	The risk prone credit quality. It carry very high credit risk.
Date	September 2011

Rating Agency Name	ICRA
Rating	A 4 [Non Fund Based Limit]
Rating Explanation	The risk prone credit quality. It carry high credit risk.
Date	September 2011

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 :	182/11, Industrial Area, Phase 1, Chandigarh, U T – 160 002, Chandigarh, India
Tel. No.:	91-172-4690727, 4690738
Fax No.:	91-172-2655621
E-Mail :	info@fertichemgroup.com
Website :	http://www.fertichemgroup.com
Factory :	Village Saidpura, Barwala Road, Derabassi, District Mohali, Punjab, India
Tel. No.:	91-1762-522274, 522275
Fax No.:	91-1762-282084
E-Mail :	fertichem@satyam.net.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Sanjay Banarsi Dass Singhal

Designation :

Managing Director

Address :

House No.149, Sector 28-A, Chandigarh – 160 002, India

Date of Birth/Age :

27.11.1961

Qualification :

B. Com

Date of Appointment :

01.10.2012

DIN No.:

00272564

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	U70102CH2006PTC030590	SAMRAT MULTIPLEX PRIVATE LIMITED	Director	20/09/2006	20/09/2006	01/04/2012	Active	NO
2	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Managing director	01/10/2012	01/04/2009	-	Active	NO
3	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	18/09/2009	18/09/2009	-	Active	NO

Name :

Mr. Nikhil Singhal

Designation :

Whole-Time Director

Address :

House No.189, Sector 6, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

18.12.1982

Qualification :

B. Com, MBA

Date of Appointment :

01.10.2012

DIN No.:

00273363

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	U20211CH1987PLC007836	SAMRAT PLYWOOD LIMITED	Director	30/10/2004	30/10/2004	01/04/2009	Active	NO
2	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Whole-time director	01/10/2012	01/04/2009	-	Active	NO

Name :

Mr. Suresh Kumar Banarsi Dass Singla

Designation :

Nominee Director

Address :

Flat No.52, Young Dwellers, Group Housing Society, Sector 49-A, Chandigarh, India

Date of Birth/Age :

01.01.1962

Qualification :

B. Tech (Textiles)

Date of Appointment :

26.07.1999

DIN No.:

00051799

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	U17117PB1994PLC014190	GANGA ACROWOOLS LIMITED	Nominee director	17/05/1999	17/05/1999	-	Active	NO
2	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Nominee director	26/07/1999	26/07/1999	-	Active	NO
3	L17115CH1990PLC010566	WINSOME YARNS LIMITED	Nominee director	13/06/2000	13/06/2000	-	Active	NO
4	U17111PB1992PLC012747	SATIA SYNTHETICS LIMITED	Director	09/11/2000	09/11/2000	-	Active	NO
5	U17111CH1993PLC013489	RANA POLYCOT LIMITED	Nominee director	22/12/2000	22/12/2000	-	Active	NO
6	U17116CH1994PLC015152	DEV SPINNERS LIMITED	Nominee director	11/06/2001	11/06/2001	-	Active	NO
7	U17115PB1984PLC019259	DWARIKADHISH SPINNERS LIMITED	Nominee director	27/06/2001	27/06/2001	-	Active	NO
8	U17115CH1994PLC015140	CHEEMA SPINTEX LIMITED	Nominee director	22/01/2003	22/01/2003	-	Active	NO
9	U17219CH1993PLC013038	VATIKA SPINNING LIMITED	Nominee director	28/12/2005	28/12/2005	-	Active	NO
10	L24232CH1994PLC014434	ASTER DRUGS AND PHARMACEUTICALS LIMITED	Nominee director	22/03/2006	22/03/2006	-	Active	NO
11	U34300CH1993PLC012930	BRAHMA STEYR TRACTORS LIMITED	Nominee director	02/05/2008	02/05/2008	01/07/2010	Active	NO
12	L18101CH1994PLC015413	GLOBAL KNITFAB LIMITED	Nominee director	12/04/2010	12/04/2010	-	Active	NO

Name :

Mr. Arun Banarsi Dass Singhal

Designation :

Whole-Time Director

Address :

House No.189, Sector 6, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

17.09.1958

Qualification :

BA

Date of Appointment :

01.10.2012

DIN No.:

00272595

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	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Whole-time director	01/10/2012	17/11/1997	-	Active	NO
2	U51431CH1998PTC021761	A K S MARKETING PRIVATE LIMITED	Director	04/09/1998	04/09/1998	-	Strike off	NO
3	U20212CH2002PTC025251	SAMRAT LAMINATES PRIVATE LIMITED	Whole-time director	01/05/2011	05/07/2002	01/04/2012	Active	NO
4	U17110CH2004PTC027504	SAMRAT COTSPIN PRIVATE LIMITED	Director	20/09/2004	20/09/2004	01/04/2012	Active	NO
5	U27101CH2010PTC032368	FERTICHEM ENTERPRISES PRIVATE LIMITED	Director	30/07/2010	30/07/2010	01/04/2012	Active	NO

Name :

Mr. Jagadeesh Gopal Kuber

Designation :

Director

Address :

1071/A, Gokhale Road, Iris Garden, 2^nd Floor, Flat No.7, Shivaji Nagar, Pune – 411 016, Maharashtra, India

Date of Birth/Age :

09.03.1949

Qualification :

Diploma in Mechanical Engineering

Date of Appointment :

06.08.1999

DIN No.:

02358355

Name :

Mr. Abhilash Kumar Puranchand Sharma

Designation :

Nominee director

Address :

House No.627, Sector 21, Panchkula – 134 109, Haryana, India

Date of Birth/Age :

03.05.1955

Qualification :

M.Com

Date of Appointment :

26.04.2011

DIN No.:

03510274

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Note:

Shareholding details file attached.

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Public financial institutions	4.39
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	4.60
Directors or relatives of Directors	87.73
Other top fifty shareholders	3.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of open-end spun, coarse yarns.

Products :

Product Description	Item Code
Cotton Yarn	5205

CAPACITY AND PRODUCTION (AS ON 31.03.2010)

NATURE OF PRODUCTION	COTTON YARN
Licensed Capacity	N.A.
Installed Capacity:
Rotors (Nos.)	1608
Spindles (Nos.)	14400
Actual Production (M.T)	10328.571

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Industrial Estate Branch, Phase 1, Chandigarh – 160 002, Chandigarh, India

· Punjab National Bank, SCO- 16, Phase I, Mohali – 160 050, Punjab, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	605.016	621.707
Working capital loans	466.255	300.006
Loans taken for other fixed	2.909	1.024
Interest accrued due	4.832	4.889
TOTAL	1079.012	927.626
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Loans directors	10.439	2.502
Fixed deposits	4.449	19.941
Hire purchase installment payable	9.062	5.108
TOTAL	23.950	27.551

Banking Relations :	--
Auditors :
Name :	PRA Associates Chartered Accountants
Address :	SCO 124-125, 2^nd Floor, Sector 34A, Chandigarh – 160 022, India
PAN No.:	AACFA2775J

CAPITAL STRUCTURE

As on 30.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
14250000	Equity Shares	Rs.10/- each	Rs.142.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
14250000	Equity Shares	Rs.10/- each	Rs.142.500 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		142.500	142.500	142.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.547	9.348	24.065
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		178.047	151.848	166.565
LOAN FUNDS
1] Secured Loans		1079.012	927.626	727.627
2] Unsecured Loans		23.950	27.551	64.391
TOTAL BORROWING		1102.962	955.177	792.018
DEFERRED TAX LIABILITIES		13.934	0.921	8.112
TOTAL		1294.943	1107.946	966.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		613.834	648.533	681.914
Capital work-in-progress		0.000	0.292	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	303.066	205.036	102.724
	Sundry Debtors	271.345	130.870	111.363
	Cash & Bank Balances	5.901	0.677	1.544
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	185.470	143.455	106.143
Total Current Assets		765.782	480.038	321.774
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	53.802	7.673	21.950
	Other Current Liabilities	26.544	12.062	15.638
	Provisions	4.327	1.182	0.429
Total Current Liabilities		84.673	20.917	38.017
Net Current Assets		681.109	459.121	283.757
MISCELLANEOUS EXPENSES		0.000	0.000	0.010
ADVANCES AGAINST CAPITAL ASSETS		0.000	0.000	1.014
TOTAL		1294.943	1107.946	966.695

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		1724.073	1065.469	840.082
		Other Income		1.770	3.390	5.338
		TOTAL (A)		1725.843	1068.859	845.420
Less	EXPENSES
		Consumption Materials Changes Inventories		1376.142	838.530
		Manufacturing Service Costs		91.973	89.940	826.030
		Employee Related Expenses		36.919	27.470
		Administrative Selling Other Expenses		70.337	33.662
		TOTAL (B)		1575.371	989.602	826.030
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			150.472	79.257	19.390
Less	FINANCIAL EXPENSES (D)			67.539	58.015	64.309
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			82.933	21.242	(44.919)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			43.720	43.150	39.146
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)			39.213	(21.908)	(84.065)
Less	TAX (H)			13.014	(7.191)	(32.295)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)			26.199	(14.717)	(51.770)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			(14.717)	0.000	0.000
	BALANCE CARRIED TO THE B/S			11.482	(14.717)	(51.770)
	EARNINGS IN FOREIGN CURRENCY			214.666	38.224	81.470
	IMPORTS
			Stores & Spares	12.445	4.276	2.908
			Capital Goods		3.362	0.000
	TOTAL IMPORTS			12.445	7.638	2.908
	Earning/ (Loss) Per Share (Rs.)			1.84	(1.03)	(3.63)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.52	(1.37)	(6.12)
Net Profit Margin (PBT/Sales)	(%)	2.27	(2.05)	(10.00)
Return on Total Assets (PBT/Total Assets}	(%)	2.84	(1.94)	(83.49)
Return on Investment (ROI) (PBT/Networth)		0.22	(0.14)	(0.50)
Debt Equity Ratio (Total Liability/Networth)		6.67	6.43	4.98
Current Ratio (Current Asset/Current Liability)		9.04	22.95	8.46

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	No
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	No
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	No
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17115CH1991PLC011127
Name of the company	FERTICHEM COTSPIN LIMITED
Address of the registered office or of the principal place of business in India of the company	182/11, Industrial Area, Phase 1, Chandigarh, U T – 160 002, Chandigarh, India E-Mail: info@fertichemgroup.com
This form is for	Modification of charge
Charge identification number of the modified	10171661
Type of charge	Immovable Property Book Debts Others (Stocks and other current Assets)
Particular of charge holder	Punjab National Bank, SCO- 16, Phase I, Mohali – 160 050, Punjab, India E-Mail: bo1155@pnb.co.in
Nature of description of the instrument creating or modifying the charge	1. Working Capital Consortium Agreement. 2. Joint Deed of Hypothecation. 3. Inter-se Agreement between PNB, SBI and OBC. 4. Second Charge Agreement. 5. Second Charge Hypothecation. 6. Letter of Authority.
Date of instrument Creating the charge	15.05.2012
Amount secured by the charge	Rs.717.400 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: PNB: CC Limit 9.25% (upto 53.800 millions and BR +1.00% above 53.800 millions. SBI: CC Limit upto 127.600 millions - 9.25%, Above 127.600 millions - BR + 1.50%. OBC: CC Limit upto 111.900 millions-9.25%, Above 111.900 millions- BR + 1% Terms of Repayment: Repayable on Demand. Margin: Stocks and Book Debts: 17.5%. Advance to Raw Material Suppliers: 20%. Extent and Operation of the charge: Pari Pasu First Charge on all movable assets of the Company Pari Pasu Second Charge on Fixed assets of the Company Others: The Total Limit of Rs. 717.400 millions is divided as follows: Fund based + Non Fund Based: SBI: 323.000 millions PNB: 117.900 millions OBC: 276.500 millions
Short particulars of the property charged	First charge on stocks, SIP, FG, bills receivable, book debts and other movable assets of the company (both present and future) at Village Saidpura, Derabassi, Punjab. Second charge on Land measuring 4 Bigha 14 Biswas alongwith building constructed/to be constructed thereon situated at Village Saidpura, Tehsil Derabassi, District Mohali. Second Charge on all Factory Land and Building measuring 19 Bigha 18 Biswas at Village Saidpura, Derabassi, District Mohali. Second Charge on all movable assets, Plant and Machinery, misc fixed asset, equipments and other assets forming part of fixed assets.
Date of latest modification prior to the present modification	20.04.2012
Particulars of the present modification	The FB/ NFB limits from Consortium (PNB, SBI and OBC) is now Rs.717.400 millions. Other terms and conditions remain the same.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· 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 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.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

INFORMATION DETAILS

Report Prepared by :

TPT/ SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		27

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	-

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