MIRA INFORM REPORT

Report Date :

28.11.2012

IDENTIFICATION DETAILS

Name :	WATSON PHARMA PRIVATE LIMITED
Registered Office :	21-22, Kalpataru Square, Kondivita Lane, Off Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	21.10.2005
Com. Reg. No.:	11-156968
Capital Investment / Paid-up Capital :	Rs.550.025 Millions
CIN No.: [Company Identification No.]	U24230MH2005PTC156968
TAN No.: [Tax Deduction & Collection Account No.]	MUMW02844C
PAN No.: [Permanent Account No.]	AAACW6074D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Drugs and Pharmaceuticals.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 16200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Watson Laboratories Inc., USA. It is a well established company having fine track. There appears some dip in the profitability of the company. However, networth of the company is satisfactory. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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	CARE
Rating	LONG TERM BANK FACILITIES : CARE AA+
Rating Explanation	Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.
Date	July 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 :	21-22, Kalpataru Square, Kondivita Lane, Off Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-66886700
Fax No.:	91-22-66886799
E-Mail :	rajesh.sharma@watsonpharm.co.in sekhchem@bom3.vsnl.net.in muralidharan.cs@watsonpharma.co.in shivshanker.shenoy@watsonpharm.co.in vishal.kulkarni@watsonpharm.co.in manoj.ehalve@watsopharm.co.in
Website :	www.watson.com
Factory 1 :	Plot No. A/3 to a/6, Phase I/A, Verna Industrial Estate, Salcette, Goa – 403 173, India
Factory 2 :	Plot No.15, MIDC, Additional Ambernath Anand Nagar, Ambernath (East), Maharashtra, India

DIRECTORS

As on 25.06.2012

Name :

Mr. David Adam Buchen

Designation :

Director

Address :

1967, Lfrance Avenue, South Pasadena, California – 91030, United State of America

Date of Birth/Age :

22.06.1964

Date of Appointment :

30.11.2006

DIN No.:

00839184

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	U24230MH2005PTC156968	WATSON PHARMA PRIVATE LIMITED	Director	30-11-06	21-10-05	-	Active	NO
2	U24100MH1970FLC014927	SEKHSARIA CHEMICALS LIMITED	Director	29-09-06	16-03-06	-	Amalgamated	NO
3	U24230MH1981PTC024570	SEKHSARIA LABORATORIES PRIVATE LIMITED	Director	29-09-06	16-03-06	-	Amalgamated	NO
4	U24239MH2006PTC164194	WELESEARCH DRUG MONITORING PRIVATE LIMITED	Director	21-11-06	21-11-06	-	Amalgamated	NO

Name :

Mr. Patrick Gerard Brunner

Designation :

Director

Address :

10231, key Plum St, Plantation, Florida – 333248265, United State of America

Date of Birth/Age :

13.06.1963

Date of Appointment :

21.06.2010

DIN No.:

03024470

Name :

Mr. Muralidharan Sundaresan Chinnadharavaram

Designation :

Director

Address :

302 B Wing, Avalon Building, Hiranandani Garden, Powai, Mumbai - 400 076, Maharashtra, India

Date of Birth/Age :

05.02.1963

Date of Appointment :

21.06.2010

DIN No.:

00014740

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	U24230GJ1984PLC007440	CONCORD BIOTECH LIMITED	Director	10-02-06	10-02-06	29-09-07	Active	NO
2	U24230MH2005PTC156968	WATSON PHARMA PRIVATE LIMITED	Director	21-06-10	20-05-10	-	Active	NO

Name :

Mr. Ronald Jeffrey Morrod

Designation :

Managing director

Address :

Flat No. 3rd and 4th, 1st and 2nd Floor, Unit No. 3, Narain Terraces, Union Park Road, Pali Hill, Bandra (West), Mumbai - 400050. Maharashtra, India

Date of Birth/Age :

20.06.1957

Date of Appointment :

03.08.2010

DIN No.:

03139797

Name :

Mr. Francois Andre Menard

Designation :

Director

Address :

12 Governor, Dr Basking Ridge Nj, New Jersey 07920, United States Of America

Date of Birth/Age :

02.04.1959

Date of Appointment :

22.06.2011

DIN No.:

03081831

Name :

Mr. Chandrashekhar Gopal Kaluskar

Designation :

Director

Address :

25/2A, Ramkrishna Nagar, Highway, Thane - 400 604, Maharashtra, India

Date of Birth/Age :

29.02.1952

Date of Appointment :

22.06.2011

DIN No.:

03511089

Name :

Mr. Jayant Bapna

Designation :

Director

Address :

6 Cutler Ct, Suffern, New York 10901, United States of America

Date of Birth/Age :

17.07.1958

Date of Appointment :

22.06.2011

DIN No.:

03511093

Name :

Mr. Robert Stewart

Designation :

Director

Address :

Heritage Village VIII, 4 Quail Run Blk 47.02 Lt 1.02 Randolph New Jersey - 07869, United States of America

Date of Birth/Age :

03.05.1967

Date of Appointment :

22.06.2011

DIN No.:

03515778

Name :

Mr. Philip Abraham Biju

Designation :

Director

Address :

Supreme Mill Tower, Flat 204, Alto Monte, Margao, Goa - 403 601, India

Date of Birth/Age :

04.11.1969

Date of Appointment :

22.06.2011

DIN No.:

03515838

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.06.2012

Names of Shareholders	No. of Shares
Watson Laboratories Inc, USA	55002460
Watson Pharma Inc, USA	1
Total	55002461

As on 25.06.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Drugs and Pharmaceuticals.

Products :

Item Code No.	Product Description
2942 00 90	Imiquimod Bulk Drug
3004 90 69	Carisoprodol Tablets
3004 90 39	Minocycline Capsules
3004 39 12	Other – Prednisone Tablets
3004 90 71	Other – Lisinopril Tablets

PRODUCTION STATUS (AS ON 31.12.2011)

Licensed and Installed Capacity:

Drugs and Pharmaceuticals	Units	Licensed Capacity	Installed Capacity @
		Quantity	Quantity
Active Pharmaceuticals Ingredients	Tonnes	*	112
Formulations – Tablets and Capsules	Million Nos.	*	3000

* Licensed Capacity is not applicable as industrial licensing has been abolished in respect of theses products vide notification No.SO-477 (E) dated 25^th July, 1991 as amended vide press release note No.4 of the 1994 series dated 25^th October 1994 issued by the department of Industrial Development, Ministry of Industry, Government of India

@ Installed Capacity (active pharmaceuticals Ingredients at Ambernath plants on triple shift basis, Formulations at Goa plant on triple shift basis and formulations at Ambernath plant on single shift basis) being a technical matter, is certified by the management and relied upon by the auditors.

Production **

Drug and Pharmaceuticals	Units	31.12.2011
		Quantity
Active pharmaceuticals ingredients	Tonnes	86
Formulations –Tablets and Capsules	Million Nos.	2855

** Includes Quantities captively consumed.

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

v ABN Amro Bank,

Branch Fort, Mumbai, Maharashtra, India

v HDFC Bank Limited,

HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

v Standard Chartered Bank,

Mumbai Branch, 90 MG Road, Mumbai – 400001, Maharashtra, India

Facilities :

Unsecured Loans	31.12.2011 (Rs. In Millions)	31.12.2010 (Rs. In Millions)
Term Loan – Foreign Currency Loan from the Holding Company	1090.386	911.000
Total	1090.386	911.000

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Address :	552, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Pan No :	AABFL5878L
Holding Company :	Watson Laboratories Inc., USA
Ultimate Holding Company:	Watson Pharmaceuticals Inc., USA
Fellow Subsidiaries :	v Arrow International Limited, Malta v Arrow No.7 Limited, U.K. v Cobalt Pharmaceuticals Inc., Canada v Arrow Farmaceutica, Brazil v Arrow Pharma (Malta) Limited, Malta

CAPITAL STRUCTURE

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55002461	Equity Shares	Rs.10/- each	Rs.550.025 Millions

NOTES:

a) 18,965,994 shares were allotted as fully paid-up pursuant to the scheme of amalgamation with Sekhsaria Chemicals Limited, Sekhsaria Laboratories Private Limited and Welesearch Drug Monitoring Private Limited without payments being received in cash.

b) 55,002,432 shares are held by Watson Laboratories, Inc, USA the holding company and its nominee.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		550.025	550.025	550.025
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3939.669	3496.194	2840.105
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4489.694	4046.219	3390.130
LOAN FUNDS
1] Secured Loans		0.000	0.000	75.024
2] Unsecured Loans		1090.386	911.000	937.800
TOTAL BORROWING		1090.386	911.000	1012.824
DEFERRED TAX LIABILITIES		196.111	297.753	244.208
TOTAL		5776.191	5254.972	4647.162
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2811.293	2991.737	2364.651
Capital work-in-progress		575.048	102.923	488.221
INVESTMENT		50.238	50.002	0.002
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1766.609	1028.204	1349.350
	Sundry Debtors	296.462	456.415	441.886
	Cash & Bank Balances	591.701	400.327	90.317
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	691.434	727.996	640.426
Total Current Assets		3346.206	2612.942	2521.979
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	965.168	448.885	689.390
	Other Current Liabilities	17.711	17.317	29.987
	Provisions	23.715	36.430	8.314
Total Current Liabilities		1006.594	502.632	727.691
Net Current Assets		2339.612	2110.310	1794.288
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5776.191	5254.972	4647.162

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	5453.652	4975.116	3697.155
		Other Income
		TOTAL (A)	5453.652	4975.116	3697.155
Less	EXPENSES
		Office Expenses	4485.290	3822.863	2529.993
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4485.290	3822.863	2529.993
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		968.362	1152.253	1167.162
Less	INTEREST (D)		13.473	12.946	17.475
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		954.889	1139.307	1149.687
Less/ Add	DEPRECIATION/ AMORTISATION (F)		322.128	287.531	244.631
Less	PRIOR PERIOD ITEMS		30.616	0.000	0.000
	PROFIT BEFORE TAX (E-F) (G)		602.145	851.776	905.056
Less	TAX (H)		158.670	195.687	137.599
	PROFIT AFTER TAX (G-H) (I)		443.475	656.089	767.457
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1688.202	1032.113	264.656
	BALANCE CARRIED TO THE B/S		2131.677	1688.202	1032.113
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	5306.870	3715.991	2662.943
		Freight and Insurance		6.085	6.486
		Income from Products Development Activities		1002.310	597.122
		Recovery towards Manufacturing Site Transfer Activities		174.026	195.459
		License Fees		10.138	1.440
		Exchange Gain (Net)		12.427	67.356
		Others		--	--
	TOTAL EARNINGS		5306.870	4920.977	3530.806
	IMPORTS
		Raw Materials	NA	1842.562	1771.963
		Capital Goods		186.797	273.132
		Stores		72.402	23.104
	TOTAL IMPORTS		NA	2101.761	2068.199
	Earnings Per Share (Rs.)		8.06	11.93	13.95

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	8.13	13.19	20.76
Return on Total Assets (PBT/Total Assets}	(%)	9.78	15.20	18.52
Return on Investment (ROI) (PBT/Networth)		0.13	0.21	0.27
Debt Equity Ratio (Total Liability/Networth)		0.47	0.35	0.51
Current Ratio (Current Asset/Current Liability)		3.32	5.20	3.47

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	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)	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The registered office of the company has been shifted from 201/301, Corporate Enclave, B.D. Sawant Marg Chakala, Andheri (East), Mumbai – 400 099, Maharashtra to the present address w.e.f. 06.05.2011.

BUSINESS PERFORMANCE

The Company has registered gross revenues of Rs. 5453.652 Millions with Operating Profit (PBIDT) at Rs. 968.362 Millions and Profit after tax of Rs. 443.475 Millions.

MANUFACTURING OPERATIONS

FORMULATION MANUFACTURING

The company has manufactured 2855 million tablets/capsules at Goa site. The site has performed in line with the expectations of the customer (Watson Laboratories Inc) both in terms of cost and service levels.

BULK DRUGS (DRUG SUBSTANCES)

The company is strongly focusing on the development and manufacturing of Active Pharmaceutical Ingredients (API), to meet the objective of being vertical integrated player. The facility expansion undertaken in the past at Ambernath API plant shall contribute towards meeting the above objective.

There was as fire accident in the Intermediate Plant of the Ambernath API Manufacturing Facility on 6th Feb 2012. As per current estimate, the loss due to the said accident amounts to Rs.16.600 million in respect of Fixed Assets (Net Block) and Rs.9.300 millions in respect of Inventories. The Company is in the process of assessing the replacement cost of the assets impacted by the said accident. The Company has filed insurance claim against the above accident. The Company has received Rs.20.000 million as interim insurance settlement from Insurance Company. This event has occurred after the Balance Sheet date and do not have any impact on the financial statement as on 31st December 2011. Since as per Accounting Standard 4 – ‘Contingencies and Events Occurring After the Balance Sheet Date’, this event does not relate to conditions existing at the Balance Sheet date.

CONTINGENT LIABILITIES:

Particulars	31.12.2011 (Rs. in millions)	31.12.2010 (Rs. in millions)
(a) Claims against the company not acknowledged as debts
(i) Income-tax matters decided against the company in respect of which the company has preferred an appeal	4.259	11.663
(ii) Excise matters	34.862	34.862
(iii) Service Tax matter	1.022	1.022
(b) Outstanding Letters of Credit	53.656	2.460
(c) Export Obligation in respect of Capital Goods imported under Export Promotion Capital Goods Scheme	3.684	3.684

Form: 8

Corporate identity number of the company	U24230MH2005PTC156968
Name of the company	WATSON PHARMA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	201/301, Corporate Enclave, B D Sawant Marg Chakala, Andheri, Mumbai – 400 099, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book Debts Movable property (not being pledge) Floating charge
Particular of charge holder	CIN No: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: aditya.puri@hdfcbank.com
Nature of instrument creating charge	Letter of hypothecation of stock and book debts
Date of instrument Creating the charge	23.06.2009
Amount secured by the charge	Rs.250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As communicated by Bank from time to time Terms of repayment As per bank sanction letter Margin As communicated by Bank from time to time Extent and operation of the charge Hypothecation by way of first charge on stock and book debts both present and future
Particulars of the property charged	Hypothecation by way of first charge on stock and book debts both present and future

FIXED ASSETS:

Intangible Assets:

v Technical know-how

v Computer Software

v Others

Tangible Assets:

v Leasehold Land

v Buildings

v Plant and Machinery

v Office Equipments

v Computers

v Laboratory Equipment

v Furniture and Fittings

v 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.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.