MIRA INFORM REPORT

Report Date :

29.10.2012

IDENTIFICATION DETAILS

Name :	RESINOVA CHEMIE LIMITED (W.e.f. 22.06.2000)
Formerly Known As :	PARIKH RESINS AND POLYMERS LIMITED
Registered Office :	54/38, Naya Ganj, Kanpur – 208 001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.09.1995
Com. Reg. No.:	20-18135
Capital Investment / Paid-up Capital :	Rs.40.049 millions
CIN No.: [Company Identification No.]	U24131UP1995PLC018135
TAN No.: [Tax Deduction & Collection Account No.]	KNPR01524F
PAN No.: [Permanent Account No.]	AABCR6406N
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Resins, Adhesives, Chemicals and Polymers
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 723040
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A3+ [Letter of Credit]
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	13.03.2012

Rating Agency Name	CRISIL
Rating	BBB [Cash Credit]
Rating Explanation	Moderate degree of safety it carry moderate risk.
Date	13.03.2012

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 :	54/38, Naya Ganj, Kanpur – 208 001, Uttar Pradesh, India
Tel. No.:	91-512-2351023/ 2363032/ 2362106/ 2393032
Fax No.:	91-512-2310630
E-Mail :	resinova@satyam.net.in adhesive@resinova.com chemicals@resinova.com hirenandjain@hotmail.com
Website :	http://www.resinova.com
Area :	250 sq. ft.
Location :	Owned
Head / Corporate Office:	15/78, Civil Lines, Kanpur – 208001, Uttar Pradesh, India
Tel No.:	91-512-3916700 / 233646 / 2332986 / 2392106 / 2360051
Fax No. :	91-512-2331803
Factory 1 :	Industrial Area, Panki, Kanpur
Area :	12000 sq. mtrs.
Location :	Owned
Marketing Office :	16/81-A, Civil Lines, Kanpur - 208 001, Uttar Pradesh, India
Tel. No. :	91-512-2331646, 3951918
Fax No. :	91-512-2331803
Branch Offices :	Delhi F-39, Okhla Indl. Area, Phase-I, New Delhi - 110 020, India Telephone : 91-11-26818810/11, 26814096, 26819846 Fax : 91-11-26818811 Ahmedabad 12/A, II Floor, Maradia Plaza, "B" Wing, Near Panchwati Circle, Ellisbridge, C.G. Road, Ahmedabad - 380 006, India Telephone : 91-79-26405663 Fax : 91-79-26406243 Kolkata 227, A.J.C. Bose Road, Anandlok Building (5^th Floor), Kolkata - 700 020, West Bengal, India Telephone : 91-33-22802694 Fax : 91-33-22802158 Hyderabad 4-4-7/2, L.G. Floor, Mahakali Street, Secunderabad - 500 003, Hyderabad, India Telephone : 91-40-27802351 Fax : 91-40-27802351 Mumbai B-5, Rajlaxmi Commercial Complex, Opposite Durgesh Park, Kalher Village, Thane-Bhiwandi Road, Bhiwandi - 421 302, India Telephone : 91-2522-276520, 276510 Fax : 91-2522-276510 Jaipur E-292 (D), Road No. 14, V.K.I. Area, Jaipur-302013, Rajasthan, India Phone: 91-141-3209303, 2460297 Fax: 91-141-2460297 E-mail: jaipurmkg@resinova.com

DIRECTORS

AS ON 25.09.2012

Name :

Mr. Vijay Suresh Parikh

Designation :

Managing Director

Address :

54/38, Naya Ganj, Kanpur – 208 001, Uttar Pradesh, India

Date of Birth/Age :

08.10.1960

Qualification :

Graduate

Date of Appointment :

29.09.1995

DIN No.:

00721950

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24116UP1993PTC015820	Shell Organics Private Limited	Director	29-05-95	29-05-95	-	Active	NO
2	U24131UP1995PLC018135	Resinova Chemie Limited	Managing director	01-04-07	29-09-95	-	Active	NO

Name :

Mr. Ramesh Shah

Designation :

Director

Address :

26/ 96 – B, 1^st Floor, Karachi, Khanna, Kanpur – 208 001, Uttar Pradesh, India

Date of Birth/Age :

23.04.1944

Qualification :

Graduate

Date of Appointment :

18.08.1997

DIN No.:

00716599

Name :

Mrs. Neeta Vijay Parikh

Designation :

Additional Director

Address :

54/ 38, Nayaganj, Kanpur – 208 001, Uttar Pradesh, India

Date of Birth/Age :

20.11.1960

Date of Appointment :

16.06.2008

DIN No.:

01470356

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2012

Names of Shareholders	No. of Shares
Kushal V. Parikh	46500
Nita V Parikh	884675
Nihir V. Parikh	50000
Ramesh Shah	406
Usha Parikh	187250
Vinita S Savla	137188
Sunil R. Savla	2031
Suresh Chandra M. Parikh	113813
Suresh M. Parikh - Karta	97000
Vijay S Parikh	2170987
Vijay S. Parikh Karta	315000
TOTAL	4004850

AS ON 25.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	90.32
Other top fifty shareholders	9.68
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Resins, Adhesives, Chemicals and Polymers.
Agencies Held :	BONDTITE

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Licensed Capacity	Installed Capacity (P.A.) #	Actual Production
Organic Chemicals	NA	93000	3094884

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

· State Bank of India, SMECCC Branch, Zonal Office, The Mall, Kanpur – 208001, Uttar Pradesh, India

· State Bank of India, Canal Road Branch, Canal Road, Kanpur - 208001, Uttar Pradesh, India

· State Bank of India, Central Road, Kanpur, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
From State Bank of India:
Cash Credit Accounts	67.204	83.146
(secured against hypothecation of stock and book debts with first charge on the fixed assets of the company and personal guarantee of the directors and pledge of fixed deposits receipts of directors and related parties as collateral security)
TOTAL	67.204	83.146
Unsecured Loans	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Long term from company (Including interest accrued and due Rs.0.055 Millions [previous year Rs.0.028 Million] less TDS)	0.355	0.328
TOTAL	0.355	0.328

Banking Relations :	--
Auditors :
Name :	Shailesh Vishesh and Company Chartered Accountants
Address :	24/35, Birhana Road, Kanpur – 208 001, Uttar Pradesh, India
Tel No.:	91-512-2312978
E – Mail :	svshah_5555@sify.com shah.svco@gmail.com
Pan No.:	AARFS0719H

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs.52.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4004850	Equity Shares	Rs.10/- each	Rs.40.049 millions

Note: 2250000 Equity shares of Rs.10/- each were allotted as fully paid up by way of bonus shares by capitalizing profits and reserve in year 2000-01

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		40.049	40.049	33.749
2] Share Application Money		0.000	0.000	2.943
3] Reserves & Surplus		140.711	102.701	70.625
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		180.760	142.750	107.317
LOAN FUNDS
1] Secured Loans		67.204	83.146	75.373
2] Unsecured Loans		0.355	0.328	0.301
TOTAL BORROWING		67.559	83.474	75.674
DEFERRED TAX LIABILITIES		0.668	0.860	1.248
TOTAL		248.987	227.084	184.239
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.064	63.588	52.491
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	196.005	161.490	113.407
	Sundry Debtors	57.679	54.132	53.987
	Cash & Bank Balances	15.488	17.790	13.379
	Other Current Assets	4.347	0.000	0.000
	Loans & Advances	39.421	33.945	26.369
Total Current Assets		312.940	267.357	207.142
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	116.074	85.338	50.246
	Other Current Liabilities	0.000	0.000	22.160
	Provisions	24.943	18.523	2.988
Total Current Liabilities		141.017	103.861	75.394
Net Current Assets		171.923	163.496	131.748
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		248.987	227.084	184.239

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	978.392	783.219	619.259
		Other Income	6.863	8.822	0.987
		TOTAL (A)	985.255	792.041	620.246
Less	EXPENSES
		Material Cost	714.445	559.156
		Employee Cost	63.313	47.959
		Manufacturing Operating and other Expenses	132.882	123.812	599.028
		Prior Period Expenses	0.150	0.082
		TOTAL (B)	910.790	731.009	599.028
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		74.465	61.032	21.218
Less	FINANCIAL EXPENSES (D)		6.669	6.746	9.928
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		67.796	54.286	11.290
Less/ sAdd	DEPRECIATION/ AMORTISATION (F)		4.902	4.250	3.654
	PROFIT BEFORE TAX (E-F) (G)		62.894	50.036	7.636
Less	TAX (H)		20.237	15.617	3.979
	PROFIT AFTER TAX (G-H) (I)		42.657	34.419	3.657
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		82.220	50.144	46.487
Less	APPROPRIATIONS
		Transfer to General Reserve	2.133	0.000	0.000
		Provision for Proposed Dividend	4.005	2.002	0.000
		Provision for corporate Tax on Dividend	0.650	0.341	0.000
		Excess provision related to earlier year tax	(0.008)	0.000
	BALANCE CARRIED TO THE B/S		118.097	82.220	50.144
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	0.754	0.663
	TOTAL EARNINGS		NA	0.754	0.663
	IMPORTS
		Raw Materials	NA	333.115	241.251
		Packing Materials	NA	2.311	0.979
	TOTAL IMPORTS		NA	335.426	242.230
	Earnings Per Share (Rs.)		10.65	8.59	1.08

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.33	4.35	0.59
Net Profit Margin (PBT/Sales)	(%)	6.43	6.39	1.23
Return on Total Assets (PBT/Total Assets}	(%)	16.13	15.12	2.94
Return on Investment (ROI) (PBT/Networth)		0.35	0.35	0.07
Debt Equity Ratio (Total Liability/Networth)		1.15	1.31	1.41
Current Ratio (Current Asset/Current Liability)		2.22	2.57	2.75

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	Yes
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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	Yes

OPERATIONS:

The company has been engaged in manufacturing chemical products all over country with Brand Name and having good response from the domestic markets in all over country and is planning for export also.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10284373
Corporate identity number of the company	U24131UP1995PLC018135
Name of the company	RESINOVA CHEMIE LIMITED
Address of the registered office or of the principal place of business in India of the company	54/38, Naya Ganj, Kanpur – 208 001, Uttar Pradesh, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge Immovable Property
Particular of charge holder	State Bank of India, SMECCC Branch, Zonal Office, The Mall, Kanpur – 208001, Uttar Pradesh, India Email: v1maheshwari@rediffmail.com
Nature of description of the instrument creating or modifying the charge	(i) Sanction Letter (ii) Agreement of Hypothecation of Goods and Assets Form- C.2 (iii) Letter regarding the grant of individual limits within the overall limit Form- C.5 (iv) Letter of Confirmation for extension of mortgage by deposit of title deeds.
Date of instrument Creating the charge	26.06.2012
Amount secured by the charge	Rs.190.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest FBWC- Interest at the rate of 12.15 percent per annum i.e. 215 bps above Base Rate (10%). Terms of Repayment Working Capital- Repayable on Demand. Margin 25% Raw Materials Domestic 25% Raw Materials Imported 25% Stock in Process 25% Finished Goods 50% Receivables (Cover period 45 days for others) 10% Letter of Credit/ Buyer's credit Extent and Operation of the charge The Company assets are Hypothecated and Mortgaged to secure credit facility aggregating to Rs.190.000 Millions granted by the Bank to the Borrower:- Cash Credit (stocks) Rs. 50.000 Millions Cash Credit (book debts) Rs. 20.000 Millions Letter of Credit Rs.120.000 Millions Sub limit for Buyer's Credit (Rs. 60.000 Millions) Total Rs.190.000 Millions Two way interchangeability between Cash Credit (Stock) to Cash Credit (Book Debts) limit to the extent of 100%.
Short particulars of the property charged	Primary Security:- Working Capital- Hypothecation of entire stock, book debts and other chargeable current assets. Collateral Security:- 1- Factory land and building situated at Arazi No. 372, Mauja- Rania, Chitikpur, Tehsil Akbarpur, Kanpur Dehat, admeasuring area 5.4575 bigha. 2- Entire moveable fixed assets viz. equipment and machinery (both present and future) of the Company. 3- STDRs for Letter of Credit margin.
Particulars of the present modification	The various credit facilities granted by the bank has now been enhanced from Rs. 162.000 Millions to Rs. 190.000 Millions. Therefore, total amount of charge secured against hypothecation of entire current assets, fixed assets, stocks, book debts, shall now also be collaterally secured by equitable mortgage of immovable properties etc. of the borrower has now been enhanced from Rs. 162.000 Millions to Rs. 190.000 Millions.

CONTINGENT LIABILITIES AS ON 31.03.2011:

(a) Against un-expired Letters of Credit Rs.0.738 Millions and against bank guarantee Rs.0.130 Million

(b) Claims against company not acknowledged as debts:

i. Tax matter under Appeal Rs.39.424 Millions

ii. Others matters under appeals Rs.0.704 Million

FIXED ASSETS

· Land

· Building

· Furniture and Fixture

· Plant and Machinery

· Weighing Machine

· Electrical Fitting

· Power Equipment

· Lab Equipments

· Office Equipment

· Mechanical and Equipments

· Air-conditioner

· Vehicles

· Computer

· Cycle

WEBSITE DETAILS:

PROFILE

Subject started as a company manufacturing speciality chemicals, over the years they have evolved as leading manufacturers of adhesives and sealants, construction chemicals, and industrial maintenance products, with significant effort on branding and increasing market share in all segments in which the company operates.

As part of strategy to strengthen the business, they have achieved considerable backword integration and developed manufacturing and formulation expertise in the field of epoxy resins and hardeners, acrylics, UV Cure, cyanoacrylates, silicones, anaerobics etc, the manufacturing units are at two locations near Kanpur (India) where they have excellent infrastructure for production, Rand D and quality control.

The spirit of innovation at Subject extends to all activities such as packing, branding, product and market development, in a very short period they have created a supply chain network of 800 channel partners, serviced by the7 offices covering every region of the country, the products are available at more than 3,00,000 retail outlets, to fulfill customer needs they market the products in about 25 brands, 60 brand extensions and 400 S.K.U’s , this complex effort made possible through a very large number of dedicated and trained marketing staff operating from every geography in the country.

They have set new standards for the adhesive industry in India, they hope the enthusiasm and energy of the associates will allow them to lead and retain the position in every segment they cover.

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.53.63
UK Pound	1	Rs.86.17
Euro	1	Rs.69.75

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.