MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	GOLDEN TOBACCO LIMITED
Registered Office :	Darji Pura, Post Amliyara, Vadodara - 390 022, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.06.1955
Com. Reg. No.:	04-067605
Capital Investment / Paid-up Capital :	Rs.175.880 Millions
CIN No.: [Company Identification No.]	L16000GJ1955PLC067605
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Marketer of Cigarettes and Processed Tobacco.
No. of Employees :	414 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (18)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured 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	C+ (Term Loans)
Rating Explanation	Having very high risk of default regarding timely servicing of financial obligation.
Date	March, 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 :	Darji Pura, Post Amliyara, Vadodara - 390 022, Gujarat, India
Tel. No.:	91-265-2540116
Fax No.:	91-265-2541025
E-Mail :	share@goldentobacco.in csmanoj@glodentabacco.in
Website :	www.goldentobacco.in
Mumbai Office :	Tobacco House, S V Road, Vile Parle (West), Mumbai - 400056, Maharashtra, India
Tel. No.:	91-22-26713951
Fax No.:	91-22-26715481
Delhi Office :	1303, 1304, Vijaya Building, 13th Floor, 17, Barakhamba Road, New Delhi – 110 001, India
Tel. No.:	91-11-23314451
Branches :	Located At: · Bhopal · Goa · Chandigarh · Haldwani · Lucknow · Patna · Kolkata · Cochin · Hyderabad · Guntur · Chennai

DIRECTORS

As on: 31.03.2012

Name :	Mr. Sanjay Dalmia
Designation :	Chairman
Name :	Mr. Anurag Dalmia
Designation :	Vice-Chairman
Name :	Mr. A. K. Joshi
Designation :	Acting Managing Director
Date of Birth/Age :	01.01.1958
Qualification :	B.Com., F.C.A.
Date of Appointment :	21.10.2003
Name :	Mr. R. R. Kumar
Designation :	Non Executive Independent Director
Name :	Mr. J. P. Khetan
Designation :	Non Executive Non Independent Director
Date of Birth/Age :	27.04.1943
Qualification :	Inter(Arts)
Date of Appointment :	25.08.1989
Name :	Mr. Bharat B. Merchant
Designation :	Non Executive Independent Director
Name :	Mr. V. K. Bhandari
Designation :	Non Executive Independent Director
Date of Birth/Age :	14.10.1973
Qualification :	F.C.A.
Date of Appointment :	31.07.2009
Name :	Mr. Rishabh Jain
Designation :	Non Executive Independent Director
Name :	Mr. V. Anish Babu
Designation :	Nominee Director-IFCI

KEY EXECUTIVES

Name :	Mr. Manoj Kumar Srivastava
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	4679022	26.57
Sub Total	4679022	26.57
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4679022	26.57
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1040	0.01
Financial Institutions / Banks	114690	0.65
Insurance Companies	3130	0.02
Foreign Institutional Investors	495877	2.82
Sub Total	614737	3.49
(2) Non-Institutions
Bodies Corporate	5316097	30.19
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	5449283	30.95
Individual shareholders holding nominal share capital in excess Rs.0.100 Million	1349044	7.66
Any Others (Specify)	200619	1.14
Clearing Members	94656	0.54
Non Resident Indians	102858	0.58
Trusts	975	0.01
Directors & their Relatives & Friends	2130	0.01
Sub Total	12315043	69.94
Total Public shareholding (B)	12929780	73.43
Total (A)+(B)	17608802	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	17608802	-

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Cigarettes and Processed Tobacco.

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cigarettes	Million	14500	13532	1565
Processed Tobacco	M.T.	N.A.	N.A.	418

NOTES :

a) Licensed capacity is exclusive of concessions, either through enactment or by notification.

b) Installed capacity is on the basis of three shifts working, as certified by the Management and being a technical matter, relied upon by the Auditors without verification.

c) Actual production of Cigarettes include production for own consumption.

d) The difference in quantities is on account of breakages/wastages/damages/ unserviceability.

GENERAL INFORMATION

No. of Employees :

414 (Approximately)

Bankers :

• Canara Bank
• Syndicate Bank
• Vijaya Bank
• State Bank of Bikaner and Jaipur
• Allahabad Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
From Banks	30.959	11.459
From Bodies Corporate	968.674	974.264
Working Capital Facilities :
From banks	428.460	422.720
Total	1428.093	1408.443
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
From Body Corporate	25.000	25.000
Total	25.000	25.000

1. Repayment and other terms of the Borrowings as on March 31, 2012 are as follows :

Particular	Rate of Interest	Total	0-1 Years	1-5 Years
From a Bank:
Secured by way of deposit of title deeds of property situated at Palghar, Dist Thane Maharashtra	14.75% (fixed)	43,958,842	13,000,000	30,958,842
From Bodies Corporate :
Secured by way of mortgage of immovable property situated at Marol, Mumbai and property to be constructed at Hyderabad.	13.2% -15%	968,674,490	--	968,674,490
Total		1,012,633,332	13,000,000	999,633,332

2. Working Capital Facilities:

(a) Working capital facilities and non fund based limits of Rs.100.000 Millions (Previous Year Rs.100.000 Millions) are secured by hypothecation of inventories and book debts and further secured by way of mortgage of third charges on immovable properties at Baroda.

(b) Guarantees given by the Company's Bankers are secured/to be secured by hypothecation of stocks, book debts, fixed deposits with banks and certain machineries, equitable mortgage of certain immovable properties at Baroda subject to prior charge in favour of Trustees for the debenture holders and /or pledge of fixed deposit receipts.

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Solicitors :	Khaitan Jayakar Sud and Vohra (Kjsv)
Subsidiary Companies :	· Western Express Industries Limited · Golden Investment (Sikkim) Private Limited · Golden Realty and Infrastructure Limited · GTC Inc B. V, Netherland
Fellow Subsidiary :	· Raigadh Papers Limited
Associates/Joint Ventures :	· GHCL Limited · Ashoka Developers and Builders Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
1000000	Preference Shares	Rs.100/- each	Rs.100.000 Millions
	Total		Rs.350.000 Millions

Issued :

No. of Shares	Type	Value	Amount
17608802	Equity Shares	Rs.10/- each	Rs.176.088 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17598016	Equity Shares	Rs.10/- each	Rs.175.980 Millions
	Less: Allotment/Call money unpaid other than Directors		Rs.0.100 Million
	Total		Rs.175.880 Millions

1. Rights of Equity Shareholders

The Company has only one class of Equity Shares having par value of Rs.10 each. Each holder of equity shares is entitled to one vote per share in the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining

2. Reconciliation of numbers of equity shares

Particulars	As at March 31,2012
	Number	Rs. In Millions
Shares outstanding at the beginning of the year Shares issued during the year Shares bought back during the year Shares outstanding at the end of the year	17608802 - - 17608802	176.088 - - 176.088

3. Details of members holding equity shares more than 5%

Name of Shareholder	As at March 31,2012
	No. of Shares held	% of Holding
J. P. Financial Services Private Limited	1090000	6.19%

4. Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting date

Particulars	As at March 31,2012
	No. of Shares
Equity shares allotted as fully paid bonus shares by capitalization of general reserve and securities premium Account	2423

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		175.880	175.880	175.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(271.271)	22.134	372.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		(95.391)	198.014	548.200
LOAN FUNDS
1] Secured Loans		1428.093	1408.443	930.600
2] Unsecured Loans		25.000	25.000	46.500
TOTAL BORROWING		1453.093	1433.443	977.100
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1357.702	1631.457	1525.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		263.016	243.686	259.400
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		86.446	86.446	86.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	781.922	1006.319	1003.600
	Sundry Debtors	143.466	166.485	104.300
	Cash & Bank Balances	36.080	34.133	10.100
	Other Current Assets	6.170	14.648	14.100
	Loans & Advances	2188.458	2176.500	1451.600
Total Current Assets		3156.096	3398.085	2583.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	125.171	186.047
	Other Current Liabilities	2009.718	1889.363	1370.700
	Provisions	12.967	21.350	33.500
Total Current Liabilities		2147.856	2096.760	1404.200
Net Current Assets		1008.240	1301.325	1179.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1357.702	1631.457	1525.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	713.345	960.881	906.100
		Other Income	5.655	182.639	215.200
		TOTAL (A)	719.000	1143.520	1121.300
Less	EXPENSES
		Cost of materials consumed	292.471	375.927
		Purchases for resale	91.036	115.338
		Manufacturing and Operating Costs	20.144	27.709
		Changes in inventories of finished goods work-in-progress and Stock-in-Trade	70.682	139.897
		Employee Benefits Expense	108.364	407.398
		Transferred from Revaluation Reserve	(2.846)	(3.119)
		Other Expenses	189.492	231.967
		TOTAL (B)	769.343	1295.117	1104.100
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(50.343)	(151.597)	17.200
Less	FINANCIAL EXPENSES (D)		226.646	168.705	134.800
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(276.989)	(320.302)	(117.600)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.348	18.371	20.300
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(290.337)	(338.673)	(137.900)
Less	TAX (H)		0.141	0.160	(24.500)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(290.478)	(338.833)	(113.400)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(640.481)	(301.648)	NA
	BALANCE CARRIED TO THE B/S		(930.959)	(640.481)	(301.648)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	287.394	328.473	NA
		Recovery towards Freight and Insurance on Export	0.720	1.970	NA
	TOTAL EARNINGS		288.114	330.443	NA
	IMPORTS
		Raw Materials	35.624	26.356	NA
		Stores & Spares	0.126	0.071	NA
		Packing Materials	0.603	6.876	NA
	TOTAL IMPORTS		36.353	33.303	NA
	Earnings/ (Loss) Per Share (Rs.)		(16.52)	(19.27)	(6.44)

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Net Sales	231.790
Total Expenditure	248.720
PBIDT (Excl OI)	(16.930)
Other Income	0.660
Operating Profit	(16.270)
Interest	64.160
Exceptional Items	0.000
PBDT	(80.430)
Depreciation	2.980
Profit Before Tax	(83.400)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(83.400)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(83.400)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(40.40)	(26.63)	(10.11)
Net Profit Margin (PBT/Sales)	(%)	(40.70)	(35.25)	(15.21)
Return on Total Assets (PBT/Total Assets}	(%)	(8.48)	(9.30)	(4.85)
Return on Investment (ROI) (PBT/Networth)		3.04	1.71	0.25
Debt Equity Ratio (Total Liability/Networth)		(37.75)	17.83	4.34
Current Ratio (Current Asset/Current Liability)		1.47	1.62	1.83

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	No
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

PERFORMANCE OF THE COMPANY

During the year the performance of the Company is deteriorated in view of drop in the turnover compared to previous year mainly due to rapid increase of grey market and increasing in VAT ranging as high as between 20 to 40% in few states. During the year, the Company has launched aromatic new brands of cigarettes viz. Koffee and Pan Aroma. The response from the market is encouraging and the Company is hopeful of increase in the turnover. The export market performance has improved and the Company is expected to spread its wings in few more countries as well increase the number of brands which inturn would contribute to the Company's turnover for the next financial year.

REAL ESTATE DEVELOPMENTS

The Company had started the Real Estate Business in the year 2007-2008, when its Hyderabad property was offered for Joint Development and the Company also entered into a Memorandum of Understanding (MOU) in the year 2009-10 with reputed developers to jointly develop its Vile Parle, Mumbai property. However, the development could not be proceeded because the parties failed to make further payment as agreed. Apart from the above, the Company's minority shareholders have filed a suit in the Hon'ble City Civil Court Mumbai challenging the MOU signed by the Company with the developers for Vile Parle property. The Hon'ble Court has granted ad-interim stay in respect of operation of the MOU.

Consequent to the above, the Company in the Modified Draft Rehabilitation Scheme (MDRS) submitted to the Hon'ble BIFR has sought to refund the advances received from the developers on the Company being able to raise the funds from a new Investors / Financials by providing the aforesaid property as security. In view of this, the Company has proposed in the Modified Draft Rehabilitation Scheme to develop the said land on its own with the support of the strategic investor who would infuse the required fund for this purpose.

Pending Central Excise and Income Tax departments litigation before the Hon'ble BIFR and Hon'ble AAIFR, it would be difficult to proceed in the real estate business of the Company. However in view of submission of MDRS before BIFR the Directors are optimistic of commencement of real estate business on receiving approval of Hon'ble BIFR.

As regards Hyderabad property, the existing developer has expressed his inability to proceed in the development agreement. The Company has now floated enquiry in the market to find out alternative investors/developer or the development of the said property.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OPPORTUNITIES, THREATS AND FUTURE OUTLOOK

Introduction of 65 mm plain and filter cigarettes by the Government in the budget 2012-13 is a welcome step. This is an opportunity for the industry in general and to their Company in particular. Both the segments have a good possibilities to capture the Indian market and the Company has taken necessary steps to maximize the benefits from the same.

The grey market cigarettes continue to be the biggest threat to the organized sector. These units which have been set up as SSI continue their illegal acts and control a sizable volume of the total industry. The management has taken up this issue with the Government at the highest level.

FINANCIAL PERFORMANCE

The gross turnover for the year stood at Rs. 1264.196 Millions as against Rs. 1528.050 Millions of the previous year. The Net Profit/(loss) before tax for the year was (Rs 290.337) Millions as against (Rs.338.673) Millions. After making adjustments for various tax provisions the Net Profit/(Loss) after tax was Rs. 290.477 Millions as against Rs.338.833 Millions of the previous year.

FIXED ASSETS:

· Land and Building

· Electric Installations

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Factory and Office

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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		18

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.