MIRA INFORM REPORT

Report Date :

12.10.2012

IDENTIFICATION DETAILS

Name :	ACME CHEM LIMITED (w.e.f. 11.02.2005)
Formerly Known As :	ACME CHEM PRIVATE LIMITED
Registered Office :	9A, Saketho Chi Minh Sarani, Kolkata – 700012, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.07.1992
Com. Reg. No.:	21-055994
Capital Investment / Paid-up Capital :	Rs.58.437 Millions
CIN No.: [Company Identification No.]	U24118WB1992PLC055994
PAN No.: [Permanent Account No.]	AACCA3931B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of fine and performance chemicals for the Rubber Industry.
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 2670000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profitability of the company appears to be low. However, 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 :	9A, Saketho Chi Minh Sarani, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22826195/ 6285/ 1050/ 26224355
Fax No.:	91-33-22369631/ 22826285
E-Mail :	abcd@cal3.vsnl.net.in
Website :	www.acmechem.in
Factory :	412, GIDC Estate, Ankleshwar, Bharuch, Panoli – 394116, Gujarat, India
Tel. No.:	91-2646-272393/ 272394
Fax No.:	91-2646-272393/ 245772

DIRECTORS

As on: 30.09.2011

Name :

Mr. Narain Holani

Designation :

Managing Director

Address :

9A, Saker Apartment 2, Ho Chi Minh Sarani, Kolkata – 700071, West Bengal, India

Date of Birth/Age :

04.05.1958

Qualification :

Chemical Engineer

Date of Appointment :

21.07.1992

DIN No.:

00397044

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	U24118WB1992PLC055994	ACME CHEM LIMITED	Managing director	21/07/1992	21/07/1992	-	Active	NO
2	U51909WB1995PTC075669	LESHA COMMERCIAL PRIVATE LIMITED	Director	01/09/2005	01/09/2005	-	Active	NO
3	U51909WB1996PTC077139	KEYTOUCH COMMOTRADE PRIVATE LIMITED	Director	01/09/2005	01/09/2005	-	Dormant	NO
4	U20296WB2006PTC110761	NALBAN INFRASTRUCTURE PRIVATE LIMITED	Director	27/07/2006	27/07/2006	20/08/2007	Active	NO
5	U70101WB2007PTC117631	RATIONAL HEIGHTS PRIVATE LIMITED	Director	08/08/2007	08/08/2007	-	Active	NO
6	U70101WB2007PTC117668	HIRAMOTI NIRMAN PRIVATE LIMITED	Director	18/08/2007	18/08/2007	-	Active	NO
7	U45400WB2007PTC116980	EMERALD HEIGHTS PRIVATE LIMITED	Director	05/10/2007	05/10/2007	-	Active	NO
8	U15311JH2008PTC013013	PRATEEK AGRO EXPERTS PRIVATE LIMITED	Director	01/07/2009	01/07/2009	-	Active	NO
9	U70102WB2010PTC146365	ADIRISH PROPERTIES PRIVATE LIMITED	Director	30/04/2010	30/04/2010	-	Active	NO

Name :

Mrs. Varsha Holani

Designation :

Director

Address :

9A, Saker Apartment 2, Ho Chi Minh Sarani, Kolkata – 700071, West Bengal, India

Date of Birth/Age :

29.09.1964

Qualification :

B.Com

Date of Appointment :

21.07.1992

DIN No.:

00397144

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	U24118WB1992PLC055994	ACME CHEM LIMITED	Director	21/07/1992	21/07/1992	-	Active	NO
2	U51909WB1995PTC075669	LESHA COMMERCIAL PRIVATE LIMITED	Director	01/09/2005	01/09/2005	-	Active	NO
3	U51909WB1996PTC077139	KEYTOUCH COMMOTRADE PRIVATE LIMITED	Director	01/09/2005	01/09/2005	-	Dormant	NO
4	U70101WB2007PTC117631	RATIONAL HEIGHTS PRIVATE LIMITED	Director	08/08/2007	08/08/2007	-	Active	NO
5	U70101WB2007PTC117668	HIRAMOTI NIRMAN PRIVATE LIMITED	Director	18/08/2007	18/08/2007	-	Active	NO
6	U45400WB2007PTC116980	EMERALD HEIGHTS PRIVATE LIMITED	Director	05/10/2007	05/10/2007	-	Active	NO
7	U70102WB2010PTC146365	ADIRISH PROPERTIES PRIVATE LIMITED	Director	30/04/2010	30/04/2010	-	Active	NO

Name :

Mrs. Aditi Holani

Designation :

Director

Address :

9A, Saker Apartment 2, Ho Chi Minh Sarani, Kolkata – 700071, West Bengal, India

Date of Birth/Age :

20.09.1986

Qualification :

B.Com, Diploma in Fashion Designing

Date of Appointment :

01.04.2005

DIN No.:

00396932

Name :

Mr. Bhanwarlal Joshi

Designation :

Whole Time Director

Address :

161, Rachna Nagar Society, Face no. 4, Bharuach – 392002, Gujarat, India

Date of Birth/Age :

09.08.1957

Qualification :

M.B.A

Date of Appointment :

30.11.2006

DIN No.:

00407392

Name :

Mr. Shrikant Virendra Hajarins

Designation :

Director

Address :

10, Kanakaditya, Sahayog Mandir Path, Ghantali, Thane (West) – 400602, Maharashtra, India

Date of Birth/Age :

14.11.1942

Qualification :

B.Com

Date of Appointment :

01.04.2009

DIN No.:

02594177

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Narain Holani	897000
Varsha Holani	1068300
Lesha Commercial Private Limited, India	66100
Narain Holani (HUF)	1814500
Divya Electronics Private Limited, India	700
Zigma Electricals Private Limited, India	1500
A.K. Construction Private Limited, India	3800
Bhiksu Barter Private Limited, India	2000
Vivek Barter Private Limited, India	3000
Adirish Properties Private Limited, India	1975800
Rishabh Holani	10
Aditi Holani	10
Shivsai Tie Up Private Limited, India	2500
Mrinal Vinimay Private Limited, India	1000
Muskan Retail	3000
Potential Electrical and Electronics Private Limited, India	2000
Stardox Vinimay Private Limited, India	2500
Total	5843720

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Bodies corporate	35.32
Directors or relatives of directors	64.68
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of fine and performance chemicals for the Rubber Industry.

Products :

Item Code No.	Product Description
38123002	Rubber Chemical

PRODUCTION STATUS (As on: 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Goods Manufactured	M. T.	NA	11000
Peptizer	M. T.	NA	NA	#838.300
DBD	M. T.	NA	NA	##170.070
Antioxident	M. T.	NA	NA	*2143.527
Retarder	M. T.	NA	NA	**4.020
Accelerator	M. T.	NA	NA	^627.424
Acmetol	M. T.	NA	NA	^^^45.004
Intermediaries and Others	M. T.	NA	NA	NA

Note :

# Excludes 214.825 MT (P. Y. 44.142 MT) used for Captive Consumption

## Excludes 123.635 MT (P. Y. 118.819 MT) used for Captive Consumption

* Excludes 632.650 MT (P. Y. 412.106 MT) used for Captive Consumption

** Excludes 0.183 MT (P. Y. 0.500 MT) used for Captive Consumption

^ Excludes 21.588 MT (P. Y. 21.490 MT) used for Captive Consumption

^^ Excludes Nil (P. Y. 194.016 MT) used for Captive Consumption

^^^ Excludes 1.687 MT (P. Y. 194.016 MT) used for Captive Consumption

GENERAL INFORMATION

Customers :

• Apollo Tyres Limited
• Associated Motorways Limited
• Balkrishna Tyres Limited
• Ceat Limited
• Continental General Tire Inc.
• Elgitread (India) Limited
• Falcon Tyres Limited
• Govind Rubber Company
• The Goodyear Tire and Rubber Company
• Global Rubber Industries Private Limited
• Indag Rubber Limited
• J.K. Industries Limited
• Loadstar (Private) Limited
• Malhotra Rubbers Limited
• MRF Limited
• Richard Pieris Rubber Products Limited
• Rogitex Rubber Products Inc.
• Schill and Seilacher "Struktol AG"
• Struktol Company of America
• S.M.P.C. SA
• TVS Srichakra Limited
• The Deal Maker Company Limited
• Unipatch Rubber Limited
• Vikrant Tyres Limited

No. of Employees :

Not Available

Bankers :

• Citi Bank N.A, Kanak Building, 41, Chowringhee Road, Kolkata – 700071, West Bengal, India
• ABN Amro Bank N. V, Hansalya Building, 15 Barakhamba Road, New Delhi – 110001, India
• Oriental Bank of Commerce, Loheipura, Baroda-390001, Gujarat, India
• The Royal Bank of Scotland
• HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans financial institutions secured	14.288	13.080
Rupee term loans others secured	7.000	0.000
Working capital loans banks secured	95.155	46.603
Hire purchase installment payable secured	0.177	0.503
Total	116.620	60.186

Banking Relations :	--
Auditors :
Name :	A. K. Tekriwal and Company Chartered Accountants
Address :	34, C. R. Avenue, Jabakusum House, 2^nd Floor, Room No. 07, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22118809
Fax No.:	91-33-22117142
E-Mail :	aktekriwajandco@vsnl.net
PAN.:	AAMFA5986H
Subsidiaries :	Hiramoti Nirman Private Limited (w.e.f 31.03.11) Emerald Heights Private Limited Rational Heights Private Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5843720	Equity Shares	Rs.10/- each	Rs.58.437 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		58.437	58.217	53.336
2] Share Application Money		5.000	0.000	0.000
3] Reserves & Surplus		604.094	544.516	416.580
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		667.531	602.733	469.916
LOAN FUNDS
1] Secured Loans		116.620	60.186	49.232
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		116.620	60.186	49.232
DEFERRED TAX LIABILITIES		0.000	1.941	0.000
TOTAL		784.151	664.860	519.148
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		133.908	157.730	42.827
Capital work-in-progress		4.833	0.000	85.107
INVESTMENT		399.143	369.056	337.891
DEFERREX TAX ASSETS		3.370	0.000	0.484
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	94.076	63.427	36.899
	Sundry Debtors	164.456	137.279	127.287
	Cash & Bank Balances	31.127	19.514	9.758
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	153.457	132.302	102.831
Total Current Assets		443.116	352.522	276.775
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.123	48.763	29.527
	Other Current Liabilities	83.632	87.603	121.191
	Provisions	78.464	78.082	73.218
Total Current Liabilities		200.219	214.448	223.936
Net Current Assets		242.897	138.074	52.839
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		784.151	664.860	519.148

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	720.739	554.148	438.201
		Other Income	7.500	32.868	5.846
		TOTAL (A)	728.239	587.016	444.047
Less	EXPENSES
		Increase/Decrease in Stock	(21.534)	(7.466)	1.671
		Materials Consumed	487.236	327.157	246.567
		Manufacturing Expenses	32.851	25.831	23.870
		Payment to and Provision for Employees	16.513	14.122	11.302
		Selling, Administrative and Other Expenses	117.095	89.405	151.551
		TOTAL (B)	632.161	449.049	434.961
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.078	137.967	9.086
Less	FINANCIAL EXPENSES (D)		8.917	4.003	6.578
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		87.161	133.964	2.508
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.754	18.513	7.331
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		60.407	115.451	(4.823)
Less	TAX (H)		21.189	29.425	(23.360)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		39.218	86.026	(28.183)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		371.444	288.435	318.737
Less	APPROPRIATIONS
		Income Tax/ FBT for Earlier Years	1.420	0.315	0.558
		Proposed Dividend	0.000	1.455	1.333
		Corporate Dividend Tax	0.000	0.247	0.227
		Transfer to General Reserve	0.000	1.000	0.000
	BALANCE CARRIED TO THE B/S		409.242	371.444	288.436
	EARNINGS IN FOREIGN CURRENCY
		On Export of Goods [FOB Value]	77.192	56.864	66.568
	TOTAL EARNINGS		77.192	56.864	66.568
	IMPORTS
		Raw Materials		320.936	241.602
		Stores & Spares		2.744	1.616
		Packing Materials		6.220	4.965
	TOTAL IMPORTS		323.784	329.900	248.183
	Earnings/)Loss) Per Share (Rs.)		6.49	16.06	(6.26)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.39	13.63	6.35
Net Profit Margin (PBT/Sales)	(%)	8.38	20.83	1.10
Return on Total Assets (PBT/Total Assets}	(%)	10.84	22.63	1.51
Return on Investment (ROI) (PBT/Networth)		0.09	0.19	0.01
Debt Equity Ratio (Total Liability/Networth)		0.47	0.46	0.58
Current Ratio (Current Asset/Current Liability)		2.21	1.64	1.24

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	Yes
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

OPERATIONS:

Sales

The performance during the financial year has been impressive with a turnover of Rs.785.400 Millions recording an increase of more than 31 % over the previous year. Exports increased from Rs.56.800 Millions in 2009-10 to Rs.77.100 Millions in 2010-11

Production

The year has recorded an overall increased level of production activity.

The company continued to give emphasis to the up-gradation of its products. It continues to implement improvements in the various manufacturing stages, which are expected to give better yields in the future.

Exports

Exports increased from Rs.56.800 Millions in 2009-10 to Rs.77.100 Millions in 2010-11. Despite sluggish Demand from the Foreign Customers, the company was able to achieve higher Revenue from Exports due to its continuous endeavour.

Contingent liabilities not provided for :

a) Excise Demand: Rs.14.281 Millions (P.Y.: Rs.14.281 Millions)

WEBSITE DETAILS

PROFILE

Subject, founded in early nineties has established itself as a quality manufacturer of Fine and Performance Chemicals for the Rubber Industry. The company takes pride in developing close links with all its customers. The company has developed a reputation in India as a reliable and successful business partner and is a leader in the adoption and implementation of quality, environmental and regulatory standards.

Subject has opted to serve the Tyre/Rubber Industries with a few selected grades of Specialty Chemicals for Rubber which although used in small dosages but are critical inputs and where sources of such chemicals being very limited. Whenever the Indian Rubber Industries has been in search of an authentic/dependable alternate stheirce, Subject has tried to fulfill those needs to the utmost satisfaction of its valued customers.

With strong rubber manufacturing industries, Indian market has been vast and growing and has provided a good opportunity for Subject. Subject has successfully introduced the Chemical Peptizers, Antidegradants, Prevulcanization Inhibitors and Accelerator/Vulcanizing Agent to the fullest satisfaction of the growing Indian Industry Subject today has become the dominant supplier of its Products in India with market share of as hish as 80% or more.

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 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.53.07
UK Pound	1	Rs.84.95
Euro	1	Rs.68.24

INFORMATION DETAILS

Report Prepared by :

VRN

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	YES
--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.