MIRA INFORM REPORT

Report Date :

24.09.2012

IDENTIFICATION DETAILS

Name :	PAREKH ALUMINEX LIMITED
Registered Office :	601, Auto Commerce House, Kennedy Bridge, Nana Chowk, Grant Road, Mumbai-400036, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.09.1994
Com. Reg. No.:	11-080732
Capital Investment / Paid-up Capital :	Rs. 129.400 Millions
CIN No.: [Company Identification No.]	L27203MH1994PLC080732
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15567G
PAN No.: [Permanent Account No.]	AAACP4696C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and exporter of Aluminium Foil Containers (AFC)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 17840000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having good track. Financials position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A2+ Short term (Leader of Credit)
Rating Explanation	Strong degree of safety it carry low credit risk
Date	May, 2012

Rating Agency Name	CRISIL
Rating	A- Long term rating (Cash Credit)
Rating Explanation	Adequate degree of safety it carry low credit risk
Date	May, 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 :	601, Auto Commerce House, Kennedy Bridge, Nana Chowk, Mumbai-400007, Maharashtra, India.
Tel. No.:	91-22-23523816/ 23521777
Fax No.:	91-22-23523777
E-Mail :	parekhcs@rocketmail.com
Website :	http://www.parekhluminex.com
Administrative Office :	G-11, Everest Building, 8th Floor, Tardeo, Mumbai Central, Mumbai-400034, Maharashtra, India.
Tel. No.:	91-22-40844777/ 23500777/ 23522777
Fax No.:	91-22-23523777/ 23524777
E-Mail :	contact@parekhaluminex.com com.secretary@parekhaluminex.com
Factory 1 :	Survey No. 204/1/2, Plot No.2, Near Dadra Check Post, Village Dadra-396191, Dadra and Nagar Haveli, Union Territory, India.
Factory 2 :	Survey No.208, Gala No. 8, Near Dadra Check Post, Village Dadra - 396 191, Dadra and Nagar Haveli, Union Territory, India
Factory 3 :	Survey No.207, Plot No.4, Near Dadra Check Post, Village Dadra - 396 191, Dadra and Nagar Haveli, Union Territory, India
Branch Office :	H-4 and 5, Everest Building, 9TH Floor, Tardeo, Mumbai–400034, Maharashtra, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Kiran C. Parikh
Designation :	Director
Date of Birth/Age :	16.12.1940
Qualification :	B.A., D.P.Ed.
Name :	Mr. Amitabh Parekh
Designation :	Chairman and Managing Director
Date of Birth/Age :	08.03.1973
Qualification :	B. Com
Experience :	18 Years
Name :	Mr. Devanshu Desai
Designation :	Director
Name :	Mr. Vikram Mordani
Designation :	Director
Date of Birth/Age :	29.03.1974
Qualification :	B.E. in Computer Science and MBA
Experience :	12 Years
Other Directorship:	AAP Prabhadevi Infracon Limited

KEY EXECUTIVES

Audit Committee
Name :	Mr. Vikram Mordani
Designation :	Chairman
Name :	Mr. Devanshu Desai
Designation :	Member
Name :	Mr. Kiran Parikh
Designation :	Member
Share Transfer Committee
Name :	Mr. Vikram Mordani
Designation :	Chairman
Name :	Mr. Devanshu Desai
Designation :	Member
Name :	Mr. Kiran Parikh
Designation :	Member
Shareholders’ / Investors’ Grievance Committee
Name :	Mr. Vikram Mordani
Designation :	Chairman
Name :	Mr. Kiran Parikh
Designation :	Member
Name :	Mr. Devanshu Desai
Designation :	Member
Remuneration Committee
Name :	Mr. Devanshu Desai
Designation :	Member
Name :	Mr. Kiran Parikh
Designation :	Member
Name :	Mr. Vikram Mordani
Designation :	Chairman
Debenture Issue Committee
Name :	Mr. Amitabh Parekh
Designation :	Chairman
Name :	Mr. Vikram Mordani
Designation :	Chairman
Name :	Mr. Devanshu Desai
Designation :	Member

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
Individuals / Hindu Undivided Family	4,867,400	37.62
Sub Total	4,867,400	37.62
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4,867,400	37.62
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	1,508,165	11.66
Sub Total	1,508,165	11.66
(2) Non-Institutions
Bodies Corporate	2,109,336	16.30
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,013,741	7.83
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,441,358	26.59
Sub Total	6,564,435	50.73
Total Public shareholding (B)	8,072,600	62.38
Total (A)+(B)	12,940,000	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)	12,940,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and exporter of Aluminium Foil Containers (AFC)

Products

(as on 31.03.2011):

ITC CODE	PRODUCTS
AA 3003	Aluminium Foil Trays / Containers / Casseroles, Lids for the same and Aluminium Foils Rolls.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Casseroles/Trays Containers/Dishes	Pcs.	5750	3560
Aluminium Foils/Rolls	Pcs.	98	65
Lids	Pcs.	1590	1050

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Indian Overseas Bank
• Export-Import Bank of India
• Punjab National Bank
• State Bank of India
• Union Bank of India
• Bank of Baroda

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Non Convertible Debentures	2470.000	2,470.000
Cash Credit from Banks	3030.720	1055.520
Total	5500.720	3,525.520
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loan from Directors and Others	1039.390	1002.100
Loans from others	3400.840	837.910
Total	4440.230	1840.010

Banking Relations :	--
Auditors :
Name :	C.V. Pabari and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates:	Deepen Holding Limited AAP Securities Limited AAP Racing and Stud Farms Limited AAP Entertainment Limited AAP Hotel and Hospitality Limited Arms Retails (India) Limited AAP Equity Capital Limited AAP Minerva Builtcon Limited AAP Mount Plesant Infracon Limited AAP Prabhadevi Infracon Limited AAP Realtors Limited AAP Clothes Management Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12940000	Equity Shares	Rs.10/- each	Rs.129.400 Millions

Terms / right attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share. The dividends proposed by the Board of Directors are subject to the approval of shareholders, except in case of interim dividend.

In the event of Liquidatin of the Company, the holders of equity shares will be entitled to receive remaning assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

The reconciliation of the number of shares outstanding is set out below	(In Numbers)
Number of shares at the beginning	12940000
Add: Shares issued during the years	-
Number of shares at the end	12940000

Particulars	31.03.2012
The details of Shareholders holding more than 5 % shares
Name of shareholders	No. of shares	% of holding
Amitabh Arun Parekh	2306650	17.83%
Deepen Arun Parekh	1779400	10.66%
Arun Parekh	867550	6.70%
Ajitsinh Gokaldas Khimji	842705	6.51%
Dharmesh Ajitsinh Khimji	700000	5.41%

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		129.400	129.400	129.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4331.550	3553.770	2934.020
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4460.950	3683.170	3063.420
LOAN FUNDS
1] Secured Loans		5500.720	3525.520	2695.290
2] Unsecured Loans		4440.230	1840.010	1364.110
TOTAL BORROWING		9940.950	5365.530	4059.400
DEFERRED TAX LIABILITIES		131.560	18.060	38.560
TOTAL		14533.460	9066.760	7161.380
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5620.640	4614.480	1529.380
Capital work-in-progress		1190.460	950.180	3378.870
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3354.990	1752.160	1095.250
	Sundry Debtors	3461.730	1942.120	1287.81
	Cash & Bank Balances	431.760	377.250	399.200
	Other Current Assets	16.0200	5.800	0.000
	Loans & Advances	1687.990	243.530	378.580
Total Current Assets		8952.490	4320.860	3160.840
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	574.480	329.090	664.140
	Other Current Liabilities	340.490	276.680	105.000
	Provisions	315.160	212.990	138.570
Total Current Liabilities		1230.130	818.760	907.710
Net Current Assets		7722.360	3502.100	2253.130
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14533.460	9066.760	7161.380

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	13697.530	9023.460	6341.560
		Other Income	36.480	17.820	15.710
		TOTAL (A)	13734.010	9041.280	6357.270
Less	EXPENSES
		Cost of Raw Materials Consumed	10508.900	6976.840	5252.210
		Changes in Inventories of Finished Goods	(211.860)	(206.670)
		Manufacturing and Operating Expenses	565.390	415.320
		Employee Benefit Expenses	94.640	61.310
		Other Expenses	259.920	177.540
		TOTAL (B)	11216.990	7424.340	5252.210
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2517.020	1616.940	1105.060
Less	FINANCIAL EXPENSES (D)		714.360	363.070	267.970
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1802.660	1253.870	837.090
Less/ Add	DEPRECIATION/ AMORTISATION (F)		599.230	441.860	251.720
	PROFIT BEFORE TAX (E-F) (G)		1203.430	812.010	585.370
Less	TAX (I)		356.830	139.500	129.860
	PROFIT AFTER TAX (G-I) (J)		846.600	672.510	455.510
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1670.340	1185.920	823.090
Add	Excess/Short provision of I. Tax of earlier years, written back		-	-	(1.660)
Less	APPROPRIATIONS
		Transfer to General Reserve	85.000	67.500	45.600
		Proposed Dividend	51.760	45.290	38.820
		Tax on Proposed Dividend	8.400	7.700	6.600
		Debenture Redemption Reserve	148.900	67.600	0.000
	BALANCE CARRIED TO THE B/S		2222.880	1670.340	1185.920
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1621.900	922.090	923.590
		Sale of Mould	4.530	2.700	0.000
	TOTAL EARNINGS		1626.430	924.790	923.590
	IMPORTS
		Raw Materials	1918.670	1062.100	536.950
	TOTAL IMPORTS		1918.67	1062.100	536.950
	Earnings Per Share (Rs.)		65.43	51.97	35.20

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Net Sales	4898.600
Total Expenditure	4078.480
PBIDT (Excl OI)	820.120
Other Income	6.000
Operating Profit	826.120
Interest	261.100
Exceptional Items	0.000
PBDT	565.020
Depreciation	167.500
Profit Before Tax	397.520
Tax	106.000
Provisions and contingencies	0.000
Profit After Tax	291.520
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	291.520

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.16	7.44	7.17
Net Profit Margin (PBT/Sales)	(%)	8.79	9.00	9.23
Return on Total Assets (PBT/Total Assets}	(%)	8.26	9.09	12.48
Return on Investment (ROI) (PBT/Networth)		0.27	0.22	0.19
Debt Equity Ratio (Total Liability/Networth)		2.50	1.68	1.63
Current Ratio (Current Asset/Current Liability)		7.28	5.28	3.48

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	Yes
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	No
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	Yes

FINANCIAL PERFORMANCE

The Company for the period ended March 31, 2012 recorded a turnover of Rs.13,697.530 millions, as against Rs.9,023.460 millions for the period ended March 31, 2011. The profit before tax is Rs.1,203.430 millions for the period ended March 31, 2012, as against Rs.812.010 million for the previous period. The profit after tax is Rs.846.600 million as against Rs.672.510 million for the previous period.

CONTINGENT LIABILITES

a) Disputed demand of Central Excise of Rs.0.230 Million and the matter is taken up before Central Excise and Service Tax Appellate Tribunal. The Company has made deposit of Rs.0.230 Million with Central Excise and Service Tax Appellate Tribunal (Previous Year Rs.0.230 Million).

b) Outstanding L.C. and Bank Guarantee issued to clients / suppliers by Bankers secured by counter guarantee of the Company is Rs.1176.340 Millions. (Previous Year Rs.1269.160 Million).

c) Guarantee given by the Company on behalf of others Rs.125.000 Million.(Previous year Rs.125.000 Million)

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

India has witnessed a huge transformation in economic and social growth resulting into emergence of the large Aluminium container and Kitchen Foil Industry. This industry predominantly was run as small scale operations by individual operators but has been transformed into organized structured Industry recognized as Packaging products mainly in Food sector, Caterings, Railways, Airlines, Hotels, Restaurants, etc. Aluminium being biodegradable and good for Food packaging, the Industry is gradually migrating into a FMCG sector. Further the product application for Aluminium containers has been into Health and Hygiene sector also like Hospitals and Health centres resulting into a sector being termed as Aluminium Consumer goods sector. Currently India has limited players in organized sector in Aluminium Containers and Kitchen Foils. Hardly couple of players may fall in category of unorganized and organized players while on small scale and local area basis there may be few more who have insignificant share in market making. The Country has been seeing huge demand of this products due to increased urbanization and hygiene awareness resulting into growth by existing players and also few global Companies are trying to market their product initially and may get into operations as and when they find the market ready for their products. Further the Company is constantly introducing newer products for newer application for newer markets; thereby increasing the overall market of the products.

FINANCIAL PERFORMANCE

Economic growth in India during the last year has distinctly slowed down. Industrial growth was soft and not in a buoyant mode. There was no encouraging reports from Indian Exports. Despite the gloomy situation, Parekh Aluminex Limited (PAL) registered a sales growth of 49% in the domestic market and 73% in the export market. EBIDTA grew by 56% and profit after tax grew by 26%. Domestic Sales grew as a result of the Company’s expanding market presence due to increase in applications of the product, enhanced need for hygiene and awareness about the eco friendly nature of our products. The Company also started sales to big retailers like Bharti Walmart, Reliance, Big Bazaar etc. Export business grew with growth coming from US and UK markets. EBIDTA to Sales was 17.92% last year, this year it is 18.38%; there is an improvement of 2.57% due to economies of scale and better efficiencies. Net Profit to sales was 7.45% last year, whereas this year it is 6.18%. The deterioration is due to high finance cost as compared to last year due to higher borrowings. Since the Company has entered absolutely nascent retail market of foil containers & foil rolls, with more than 250 varieties the inventories have gone up.

CURRENT YEAR’S OUTLOOK

Going forward Company plans to focus more towards retail business, product brand building, develop custom made products for food chains. This will result in a fundamental change in perception about the Company and there will be lots of value addition thereby increasing the bottom line of the Company. Branding of the Company’s product range will also improve the image of the Company. Company has also started sales of coloured foil containers and foil rolls, which not only gives edge to the product line but also creates value additions. Company is also in process of putting various systems/ processes in place, so that eventually the Company is system/ processes driven. We are also in the process of building a much stronger and professional team in various faculties to facilitate smooth working. Based on Company’s order book position and execution capabilities; we are hopeful of achieving 40% growth in the topline of the Company. We also expect to increase our retail business share. This year the team, logistics, branding and advertisements would be in place along with the entire supply chain to launch the retail packs of foil containers and foil rolls. We target to have everything in place by this yearend so as to kick start the business from early next year onwards. In the current year we shall also be exploring new markets for exports. Overall we look to the immediate future with optimism & sense of well being.

FIXED ASSETS

· Bore Wells

· Computers

· Electric Installations

· Factory Building

· Furniture and Fixtures

· Land

· Office Equipments

· Plant and Machinery

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		64

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.