MIRA INFORM REPORT

Report Date :

24.09.2012

1. Summary Information

		Country	INDIA
Company Name	PUNEET RESINS LIMITED	Principal Name 1	Mr. Mahendra Kapoor
Status	Satisfactory	Principal Name 2	Mr. Aditya Kapoor
		Registration #	034093
Street Address	W – 75 (A) and W – 76 (A), Nashik Industrial Estate, Satpur, Nashik – 422007, Maharashtra, India
Established Date	24.09.1984	SIC Code	--
Telephone#	91-253-2350042	Business Style 1	MANUFACTURER
Fax #	91-253-2353272	Business Style 2	--
Homepage	http://www.rishiroop.com, http://www.puneet.in	Product Name 1	RUBBER
# of employees	28 (Approximately)	Product Name 2	PVC COMPOUNDS
Paid up capital	Rs. 52,158,000/-	Product Name 3	--
Shareholders	Total shareholding of Promoter and Promoter Group - 56.36 % Total Public shareholding - 43.64 %	Banking	Saraswat Co-Operative Bank Limited
Public Limited Corp.	YES	Business Period	28 YEARS
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	Ba (49)
Related Company
Relation	Country	Company Name	CEO

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	115,205,000	Current Liabilities	117,326,000
Inventories	131,699,000	Long-term Liabilities	2,858,000
Fixed Assets	24,241,000	Other Liabilities	15,351,000
Deferred Assets	0,000	Total Liabilities	135,535,000
Invest& other Assets	33,361,000	Retained Earnings	116,813,000
		Net Worth	168,971,000
Total Assets	304,506,000	Total Liab. & Equity	304,506,000
Total Assets (Previous Year)	237,682,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	614,869,000	Net Profit	59,363,000
Sales(Previous yr)	521,053,000	Net Profit(Prev.yr)	51,953,000

IDENTIFICATION DETAILS

Name :	PUNEET RESINS LIMITED
Registered Office :	W – 75 (A) and W – 76 (A), Nashik Industrial Estate, Satpur, Nashik – 422007, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.09.1984
Com. Reg. No.:	11-034093
Capital Investment / Paid-up Capital :	Rs.52.158 Millions
CIN No.: [Company Identification No.]	L25200MH1984PLC034093
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16191A
PAN No.: [Permanent Account No.]	AAACP6283F
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Rubber and PVC Compounds.
No. of Employees :	28 (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 670000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a established company having satisfactory track. Financially company performance seems good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered 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

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 and Works :	W-75(A) and W-76(A), Nashik Industrial Estate, Satpur, Nashik – 422007, Maharashtra, India
Tel. No.:	91-253-2350042
Fax No.:	91-253-2353272
E-Mail :	sbaiwar@rishiroop.com rishi@bom2.vsnl.net.in sales@punet.in investor@puneet.in akapoor@rishiroop.com
Website :	http://www.rishiroop.com http://www.puneet.in
Corporate Office 1:	84, Atlanta, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22840148/ 22844125
Fax No.:	91-22-22872796
Corporate Office 2:	65, Atlanta, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-40952000
Fax No.:	91-22-22872796
Factory :	Wdaivare: Nashik Highway, Village Wadivare, Taluka Igatpuri, Nashik

DIRECTORS

As on: 31.03.2012

Name :	Mr. Mahendra Kapoor
Designation :	Chairman
Name :	Mr. Aditya Kapoor
Designation :	Managing Director
Name :	Mr. Dilip Shah
Designation :	Director
Name :	Mr. Nakul Kumar
Designation :	Additional Director
Name :	Mr. Arvind Kapoor
Designation :	Director
Name :	Mr. Jayesh Dadia
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Nilesh Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2012

Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	475600	9.12
Bodies Corporate	2463932	47.24
Sub Total	2939532	56.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2939532	56.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11700	0.22
Sub Total	11700	0.22
(2) Non-Institutions
Bodies Corporate	162985	3.12
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1493235	28.63
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	527100	10.11
Any Others (Specify)	81248	1.56
Clearing Members	37981	0.73
Non Resident Indians	26467	0.51
Directors & their Relatives & Friends	16800	0.32
Sub Total	2264568	43.42
Total Public shareholding (B)	2276268	43.64
Total (A)+(B)	5215800	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)	5215800	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Rubber and PVC Compounds.

Products :

• Vulcanol (Vulcanised Vegetable Oils)
• Vinoprene / Vinoplast
• Vinoprene / Vinoplast

Item Code No. (ITC Code)	400591.09
Product Description	Rubber Compounds
Item Code No. (ITC Code)	390422.09
Product Description	Plastic Compounds

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Polymer Polymer Compound	M.T.	1307

GENERAL INFORMATION

No. of Employees :

28 (Approximately)

Bankers :

· Saraswat Co-Operative Bank limited

· Central Bank of India

· Kotak Mahindra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans
LONG TERM BORROWINGS
From Banks (Secured by Hypothecation of Motor Car)
ICICI Bank Limited	1.101	1.932
Kotak Mahindra Prime Limited	0.048	0.172
Axis Bank Limited	0.318	0.000
(A)	1.467	2.104
SHORT TERM BORROWINGS
ICICI Bank Limited	1.097	1.263
Kotak Mahindra Prime Limited	0.147	0.158
Axis Bank Limited	0.147	0.000
(B)	1.391	1.421
(A+B)	2.858	3.525

Banking Relations :	--
Auditors :
Name :	B D Jokhakar and Company Chartered Accountants
Address :	8, Ambalal Doshi Marg, Fort, Mumbai – 400 023.
Enterprises under signficant influence of key management personnel:	Rishiroop Polymers Private Limited Rishichem Distributors Private Limited Rishichem Mid-East Limited Rishiroop Rubber (International) Limited Rishiroop Investments and Trading Co. Private Limited Rishifoods Private Limited Devi Organics Private Limited Rishiroop Holding Private Limited Puneet Polymers

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- Each	Rs. 60.000 millions
75000	Cumulative Redeemable Preference Shares	Rs. 100/- Each	Rs. 7.500 millions
	Total		Rs.67.500 millions

Issued, Subscribed & P aid-up Capital :

No. of Shares	Type	Value	Amount
5215800	Equity Shares	Rs. 10/- Each	Rs.52.158 millions

Rights, Preferences and restrictions attached to each class of shares:

Equity Shares: The company has one class of equity shares having a par value of ` 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The details of shareholders holding more than 5% shares

Name of Shareholders	No. of Shares held	% of Holding
Rishiroop Holding Private Limited	1,055,000	20.23
Rishiroop Polymers Private Limited	1,008,363	19.33
Rishiroop Investments and Trading Private Limited	305,700	5.86

As per of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial owenership of shares.

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		52.158	52.158	52.158
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		116.813	67.755	24.895
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		168.971	119.913	77.053
LOAN FUNDS
1] Secured Loans		2.858	3.526	3.224
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.858	3.525	3.224
DEFERRED TAX LIABILITIES		3.906	4.355	4.690
TOTAL		175.735	127.793	84.967
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.241	26.721	21.121
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		33.361	10.025	10.086
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.699	124.490	54.812
	Sundry Debtors	87.867	51.572	36.411
	Cash & Bank Balances	8.906	15.661	16.586
	Other Current Assets	8.511	1.597	0.000
	Loans & Advances	9.921	7.616	7.202
Total Current Assets		246.904	200.936	115.011
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	111.049	92.630	50.246
	Other Current Liabilities	6.277	7.305	1.762
	Provisions	11.445	9.954	9.243
Total Current Liabilities		128.771	109.889	61.251
Net Current Assets		118.133	91.047	53.760
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		175.735	127.793	84.967

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	614.869	521.053	247.635
		Other Income	3.078	7.854	2.639
		TOTAL (A)	617.947	528.907	250.274
Less	EXPENSES
		Cost of Materials Consumed	162.387	131.900
		Purchases of Stock-In-Trade	342.135	316.122
		Changes In Inventories of Finished Goods Work -In- Progress and Stock-In Trade	(13.422)	(30.906)
		Employee Benefits Expense	14.899	12.139
		Other Expenses	18.069	19.588
		TOTAL (B)	524.068	448.843	212.557
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.879	80.064	37.717
Less	FINANCIAL EXPENSES (D)		2.532	2.612	1.304
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		91.347	77.452	36.413
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.539	3.110	2.660
	PROFIT BEFORE TAX (E-F) (G)		87.808	74.342	33.753
Less	TAX (H)		28.445	22.389	9.181
	PROFIT AFTER TAX (G-H) (I)		59.363	51.953	24.572
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		49.884	12.024	(3.226)
Less	APPROPRIATIONS
		Transfer to General Reserve	7.500	5.000	2.000
		Proposed Dividend	8.867	7.823	6.259
		Tax on Dividend	1.438	1.269	1.064
	BALANCE CARRIED TO THE B/S		91.442	49.884	12.024
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	140.110	96.992	40.000
	TOTAL EARNINGS		140.110	96.992	40.000
	IMPORTS
		Raw Materials	126.335	88.970	39.729
		Trading Goods	267.891	297.034	112.324
	TOTAL IMPORTS		394.226	386.004	152.053
	Earnings Per Share (Rs.)		11.38	9.96	4.71

QUARTERLY RESULTS

(Rs. In Millions)

PARTICULARS	30.06.2012
	1^st Quarter
	Unaudited
Net Sales	119.140
Total Expenditure	107.060
PBIDT (Excl OI)	12.080
Other Income	0.410
Operating Profit	12.490
Interest	0.530
Exceptional Items	0.000
PBDT	11.960
Depreciation	0.840
Profit Before Tax	11.120
Tax	3.650
Provisions and contingencies	0.000
Profit After Tax	7.480
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	7.480

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.61	9.82	9.81
Net Profit Margin (PBT/Sales)	(%)	14.28	14.26	13.63
Return on Total Assets (PBT/Total Assets}	(%)	32.38	32.66	24.79
Return on Investment (ROI) (PBT/Networth)		0.52	0.62	0.44
Debt Equity Ratio (Total Liability/Networth)		0.78	0.95	0.84
Current Ratio (Current Asset/Current Liability)		1.92	1.83	1.88

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	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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

REVIEW OF OPERATIONS:

The Indian Economy grew at 6.9% last year as compared to 8.4% in 2010-11. This sluggishness in economy also affected the performance of the Rubber Industry. However in spite of that the company’s turnover increased from Rs.521.053 millions to Rs. 614.869 millions registering a growth of 18 %. The profit before tax for the period has increased to Rs. 87.809 millions from Rs. 74.342 millions in previous year registering an increase by 18 %. In view of current volatility in price of raw materials and foreign currency rates the Company is making all efforts to maintain the desired growth rate in the current year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The company is in the business of manufacturing polymer blends for the rubber and plastics industries, and trading / distribution of complementary product lines to its customers.

The polymer blends are used in the manufacture of petrol hoses, LPG tubing, O-rings, seals and gaskets, printing

and textile rollers, cable sheathing, automotive components, etc. The company has leveraged its relationship with customers and is now offering other complementary product lines so as to have a full basket of products for its customers.

INDUSTRY STRUCTURE

The Rubber industry can be broadly classified in tyre and non-tyre sectors. While tyre sector is dominated by few large tyre companies the non-tyre sector consists of number of medium and small units. This non tyresector consists of about 6000 units which manufacture about 35000 different rubber products. The company sells polymer blends to the medium and small scale sector which accounts for over 50% of production of rubber goods

in non-tyre industrial products. Due to fragmented structure of the user industry the market is highly price competitive.

FINANCIAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements to the Companies Act, 1956 and generally accepted Accounting Principles in India.

Fixed Assets During the year the Fixed Assets has been increased by Rs.0.612 millions.

Inventories During the year total inventories have been increased to Rs.131.699 millions in the current year from Rs.124.490 millions in last year.

The financial statements have been prepared in compliance with the requirements to the Companies Act, 1956

and generally accepted Accounting Principles in India.

Fixed Assets

During the year the Fixed Assets has been increased by Rs.0.612 millions.

Inventories

During the year total inventories have been increased to Rs.131.699 millions in the current year from Rs.124.490 millions in last year.

Sundry Debtors

The Sundry Debtors are at 14 % of sales as at 31st March, 2012.

Financial performance

The profit before taxation is Rs. 87.808 millions as compared to profit for the previous year Rs.74.342 millions.

OUTLOOK

The growth of the non-tyre sector of the rubber industry, where their manufactured products are consumed, is

expected to be between 8% -10% per annum. While due to stagnation in the Automobile Industry the growth in

demand is expected to be less as compared to previous year. However in the long term the market is expected

to grow steadily.

The company is constantly making efforts to develop new grades and enter new markets to sustain company’s

growth.

AS PER WEBSITE DETAILS:

Press Releases:

Puneet Resins Limited. Featured in the Forbes Asia's Top 200 List of "Best Under A Billion" Company | 08/09/11 15:22

Puneet Resins Limited has informed BSE that the name of Puneet Resins Limited have been featured in the Forbes Asia's Top 200 'Best Under a Billion' List, 2011. This is for the first time the Company has made it to this elite list of Companies.

Forbes Asia's "Best Under A Billion" Companies are Asia Pacific's top small and mid size listed Companies. Looking at profitability, growth, modest indebtedness and future prospects, Forbes editors picked 200 Companies out of an universe of over 15,000 Asia Pacific Companies with actively traded shares and sales between US$5 million and US$1 billion.

 
FIXED ASSETS:
 

• Lease Hold Land
• Free Hold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Electrical Installations
• Office Equipments
• Laboratory Equipments
• Other Equipments
• Computers
• Vehicles
• Moulds and Jigs

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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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.