MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	M J BIOPHARM PRIVATE LIMITED
Registered Office :	113, Jolly Maker Chambers, 2, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.08.1987
Com. Reg. No.:	11-044458
Capital Investment / Paid-up Capital :	Rs.130.100 Millions
CIN No.: [Company Identification No.]	U29249MH1987PTC044458
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Formulation.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1480000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears a dip in the turnover and profitability of the company. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

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 :	113, Jolly Maker Chambers, 2, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22020644/61454000
Fax No.:	91-22-22048031/30
E-Mail :	mjgroup@mj-india.com
Website :	http://www.mjbiopharm.com
Factory :	L-7, M.I.D.C. Industrial Area, District Raigad, Taloja, Navi Mumbai-410207, Maharashtra, India
Tel. No.:	91-22-27402781/27402331/2740956/27410770
Fax No.:	91-22-27402311

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Amol Jashvant Shah

Designation :

Managing Director

Address :

11, A Ashiana, 5, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

10.11.1965

Date of Appointment :

03.12.1997

Din No.:

00171006

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	U24120MH1986PTC038906	MARVEL CHEMICALS PRIVATE LIMITED	Director	29/05/1986	29/05/1986	-	Active	NO
2	U17100MH1972PTC015802	M J EXPORTS PRIVATE LIMITED	Director	28/12/1989	28/12/1989	-	Active	NO
3	U99999MH1980PTC022132	APTEK ELECTRONICS PRIVATE LIMITED	Director	01/02/1992	01/02/1992	-	Amalgamated	NO
4	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Managing director	03/12/1997	03/12/1997	-	Active	NO
5	U30007MH1984PTC033383	APTEK COMPUTERS PRIVATE LIMITED	Director	01/08/1998	01/08/1998	-	Amalgamated	NO
6	U65990MH1984PLC032444	M J HOLDINGS AND LEASING LTD	Director	01/08/1998	01/08/1998	-	Amalgamated	NO
7	U24230MH1999PTC119044	MARVEL LIFE SCIENCES PRIVATE LIMITED	Director	01/01/2000	01/01/2000	-	Active	NO
8	U15311MH1991PTC061659	STONEWOOD CEM-FAB (INDIA) PRIVATE LIMITED	Director	17/02/2000	17/02/2000	19/10/2007	Amalgamated	NO
9	U24230GJ1993PTC020258	BDR LIFESCIENCES PRIVATE LIMITED	Director	22/09/2000	22/09/2000	17/05/2010	Active	NO
10	U74999MH1980PTC022167	FINE FRAGRANCES PRIVATE LIMITED	Director	22/11/2000	22/11/2000	-	Active	NO
11	U24230MH2003PTC143625	INNOVA LIFE SCIENCES PRIVATE LIMITED	Director	23/12/2003	23/12/2003	-	Active	NO
12	U01117MH2004PTC148792	FINE AROMATICS AND HERBAL EXTRACTS PRIVATE LIMITED	Director	23/09/2004	23/09/2004	-	Active	NO
13	U24234MH2002PTC136337	SCIGEN BIOPHARMA PRIVATE LIMITED	Additional director	09/11/2010	09/11/2010	-	Active	NO

Name :

Mr. Jashvantlal Shah

Designation :

Alternate Director

Address :

11, A Ashiana, 5, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

19.11.1936

Date of Appointment :

07.01.2009

Din No.:

01422531

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17100MH1972PTC015802	M J EXPORTS PRIVATE LIMITED	Director	17/05/1972	17/05/1972	Active	NO
2	U74999MH1980PTC022167	FINE FRAGRANCES PRIVATE LIMITED	Director	13/06/1980	13/06/1980	Active	NO
3	U65990MH1984PLC032444	M J HOLDINGS AND LEASING LTD	Director	21/03/1984	21/03/1984	Amalgamated	NO
4	U30007MH1984PTC033383	APTEK COMPUTERS PRIVATE LIMITED	Director	07/07/1984	07/07/1984	Amalgamated	NO
5	U24120MH1986PTC038906	MARVEL CHEMICALS PRIVATE LIMITED	Director	11/02/1986	11/02/1986	Active	NO
6	U99999MH1987GAT042776	M.J.INSTITUTE OF RESEARCH	Director	03/03/1987	03/03/1987	Active	NO
7	U51101DL1989PTC035109	TECNOVA OVERSEAS PRIVATE LTD	Director	17/02/1989	17/02/1989	Active	NO
8	U91110MH1991GAP060635	INDO-MALGACHE CHAMBER OF COMMERCE AND INDUSTRY IN INDIA	Director	06/03/1991	06/03/1991	Active	NO
9	U99999MH1980PTC022132	APTEK ELECTRONICS PRIVATE LIMITED	Director	07/01/1992	07/01/1992	Amalgamated	NO
10	U24230MH1999PTC119044	MARVEL LIFE SCIENCES PRIVATE LIMITED	Director	01/07/1999	01/07/1999	Active	NO
11	U01117MH2004PTC148792	FINE AROMATICS AND HERBAL EXTRACTS PRIVATE LIMITED	Director	23/09/2004	23/09/2004	Active	NO
12	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Alternate director	07/01/2009	07/01/2009	Active	NO

Name :

Adam Tomasz Polonek

Designation :

Director

Address :

Wlodarzewska Street, 67E/29, 02-384, Warshow, Poland

Date of Birth/Age :

30.12.1976

Date of Appointment :

06.10.2008

Din No.:

02608797

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Director	30/09/2009	06/10/2008	Active	NO

Name :

Joanna Barbara Szymanska Bulska

Designation :

Director

Address :

Wiejska 28, 05-500, Jozefoslaw, Poland

Date of Birth/Age :

07.12.1963

Date of Appointment :

06.10.2008

Din No.:

02608824

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Director	30/09/2009	06/10/2008	Active	NO

Name :

Mr. Indravadan Devshanker Joshi

Designation :

Director

Address :

C/401, Dev Chhaya, Next to Anandnagar, Dahisar (East), Mumbai-400068, Maharashtra, India

Date of Birth/Age :

10.03.1953

Date of Appointment :

07.01.2009

Din No.:

00352476

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	L65910MH1991PLC064323	RELIC TECHNOLOGIES LIMITED	Director	25/01/2006	25/01/2006	29/10/2009	Active	NO
2	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Director	30/09/2009	07/01/2009	-	Active	NO
3	U74999MH1993PTC071214	SUNLIFE MANAGEMENT ADVISORY SERVICES PRIVATE LIMITED	Director	30/09/2011	05/01/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
M J Bioton Lifesciences Limited, Cyprus	13009999
Bioton Trade Sp. Z.O.O., Poznanski	1
TOTAL	13010000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Formulation.

PRODUCTION STATUS [AS ON 31.03.2010]

PARTICULARS	Installed Capacity	Own	On Loan License
Dry powder injections (vials)	14040000	4924263	785723
Liquid injections (ampoules)	36363000	33572220	401105
Liquid injections (vials)	9360000	623245	1352705
Liquid injections (cartridges)	10676250	401360	--
Tablets (numbers)	176904000	75759490	1123210
Hard gelatin capsules (numbers)	80000000	6236950	--

NOTE:

1. Licensed capacity - Not applicable.

2. Installed capacity is as certified by the management.

3. On loan licence represents production for third parties.

4. Own includes production of 86,895 vials (previous year, 139,606 vials) manufactured by outside parties.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans banks	18.442	28.827
Rupee term loans others	0.722	1.124
Working capital loans banks	8.027	17.584
TOTAL	27.191	47.535

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shivsagar Estate, Worki, Mumbai-400018, Maharashtra, India
PAN No:	AACFD4815A
Holding Company : [As on 31.03.2010]	MJ Bioton Life Sciences Limited, Cyprus
Wholly Owned Subsidiary :	Marvel Lifesciences Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions
5000000	Preferences Shares	Rs.10/- each	Rs.50.000 Millions
	Total		Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13010000	Equity Shares	Rs.10/- each	Rs.130.100 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		130.100	130.100	130.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		241.545	232.843	209.896
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		371.645	362.943	339.996
LOAN FUNDS
1] Secured Loans		27.191	47.535	51.940
2] Unsecured Loans		0.000	0.000	2.500
TOTAL BORROWING		27.191	47.535	54.440
DEFERRED TAX LIABILITIES		21.744	24.538	27.717
TOTAL		420.580	435.016	422.153
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		240.827	238.370	237.985
Capital work-in-progress		0.470	4.734	2.189
INVESTMENT		25.323	23.672	41.061
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.348	75.811	116.069
	Sundry Debtors	213.904	253.407	195.592
	Cash & Bank Balances	20.643	14.894	12.889
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	75.717	70.372	62.010
Total Current Assets		391.612	414.484	386.560
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	217.107	229.259	222.645
	Other Current Liabilities	7.013	4.588	11.843
	Provisions	13.532	12.397	11.154
Total Current Liabilities		237.652	246.244	245.642
Net Current Assets		153.960	168.240	140.918
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		420.580	435.016	422.153

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		822.839	802.903
		Other Income		73.337	37.627
		TOTAL (A)	880.784	896.176	840.530
Less	EXPENSES
		Purchase of Trading Goods		274.785	327.297
		Manufacturing and Other Expenses		579.893	454.622
		Excise Duty		0.641	3.489
		Increase/Decrease in Stocks in Finished Goods and Process Stocks		(11.693)	10.161
		TOTAL (B)	868.825 [Including Financial Expenses and Depreciation]	843.626	795.569
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			52.550	44.961
Less	FINANCIAL EXPENSES (D)			2.656	4.028
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			49.894	40.933
Less/ Add	DEPRECIATION/ AMORTISATION (F)			16.077	15.577
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		11.959	33.817	25.356
Less	TAX (H)		3.256	10.870	6.452
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		8.703	22.947	18.904
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		119.843	96.896	77.992
	BALANCE CARRIED TO THE B/S		128.546	119.843	96.896
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	561.007	580.444	616.177
		Other Earnings	0.000	5.453	5.587
	TOTAL EARNINGS		561.007	585.897	621.764
	IMPORTS
		Raw Materials	NA	30.060	93.805
		Trading Goods	NA	178.419	109.224
		Capital Goods	NA	0.000	15.252
	TOTAL IMPORTS		NA	208.479	218.281
	Earnings / (Loss) Per Share (Rs.)		0.67	1.76	1.45

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.99	2.56	2.25
Net Profit Margin (PBT/Sales)	(%)	NA	4.11	3.15
Return on Total Assets (PBT/Total Assets}	(%)	1.89	5.17	4.05
Return on Investment (ROI) (PBT/Networth)		0.03	0.09	0.07
Debt Equity Ratio (Total Liability/Networth)		0.71	0.81	0.88
Current Ratio (Current Asset/Current Liability)		1.65	1.68	1.57

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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATING RESULTS:

During the year the Company achieved overall turnover of Rs. 880.784 Millions (including other income). Export turnover comprises of Rs. 574.438 Millions. The operation of the Company has resulted in profit of Rs. 8.703 Millions after providing for interest and depreciation as against profit of Rs. 22.947 for the previous year.

BUSINESS PROSPECTS:

This year they are expecting good growth in export business. This is mainly as they are extending their horizon by introducing more new products in the markets where they are already doing well and also entering newer markets in Asia, Africa and Latin America. Whilst, they are awaiting registration in new markets like China, they are in process of launching product in Iran as well as some smaller countries in Middle East for the first time. Therefore they foresee that in this year they will suppress last year’s business. They have already started receiving orders from new markets and very good orders from their existing markets.

FIXED ASSETS:

· Land Leasehold

· Building

· Plant and Machinery

· Electric Installations

· Furniture, Fixtures and Office Equipments

· Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is the flagship company of the MJ Group, formed to facilitate Quality Healthcare through its highly specialized range of pharmaceutical products / formulations in the domestic and export market. The company excels in animal and human rDNA Insulin and other dosage forms such as tablets, capsules, cephalosporin injectables, other injectable ampoules and vials in different specialty segments such as Diabetology, Cardiology, NSAID, Anti-inflammatory, Anti-biotics etc.

Prime among these is the human rDNA Insulin formulation, manufactured in collaboration with Akzo Nobel – the Dutch multi-national giant. Subject, along with its London based associate company – Marvel Lifescience, is aiming for a higher stake in the global pharmaceutical market, especially in human rDNA Insulin formulations. The company markets the insulin formulation under brand name “Biosulin”.

Subject products are registered in over twenty countries and are in the process of registration in more than 60 countries worldwide.

The focus in adopting the BEST business practices is to provide the finest healthcare brands, to enhance business performance and to emerge as dominant global player in the dynamic and competitive pharmaceutical industry.

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 records 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.52.33
UK Pound	1	Rs.84.30
Euro	1	Rs.67.45

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	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		45

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.