MIRA INFORM REPORT

Report Date :

29.04.2013

IDENTIFICATION DETAILS

Name :	MEGHMANI FINECHEM LIMITED
Registered Office :	CH/1, CH/2, GIDC Industrial Estate, Dahej, Taluka Vagra, Bharuch - 392 130 Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.09.2007
Com. Reg. No.:	04-051717
Capital Investment / Paid-up Capital :	Rs. 615.500 Millions
CIN No.: [Company Identification No.]	U24100GJ2007PLC051717
TAN No.: [Tax Deduction & Collection Account No.]	BRDM02927B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Basic Chemicals (Caustic Soda Lye).
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (37)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 5300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Meghmani Organic Limited. It is a well established and a reputed company having moderate track record. The company has recorded huge external borrowings. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong holding the company can be considered for business dealings with slight caution.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A3
Rating Explanation	Moderate degree of safety, it carry higher credit risk.
Date	30.10.2012

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: BBB-
Rating Explanation	Moderate degree of safety, it carry moderate credit risk.
Date	30.10.2012

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.

INFORMATION DENIED

Management Non Co-Operative (91-79-26640669)

LOCATIONS

Registered Office/ Factory :	CH/1, CH/2, GIDC Industrial Estate, Dahej, Taluka Vagra, Bharuch - 392 130 Gujarat, India
Tel. No.:	91-2642-256677
Fax No.:	Not Available
E-Mail :	kamlesh.mehta@meghmani.com helpdesk@meghmani.com
Website :	www.meghamani.com

DIRECTORS

As on 29.06.2012

Name :	Mr. Jayantibhai Meghjibhai Patel
Designation :	Director
Address :	“Kruti”, L-18/359, Satygrah Chhavani, Society, Satelite, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	01.03.1952
Date of Appointment :	11.09.2007
DIN No.:	00027224
Name :	Mr. Ashishbhai Natawarlal Soparkar
Designation :	Director
Address :	L-13/246, Satygrah Chhavani, Society, Satelite, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	25.12.1952
Date of Appointment :	11.09.2007
DIN No.:	00027480
Name :	Mr. Natwarlal Meghjibhai Patel
Designation :	Director
Address :	6 B ashok Vatika No.1 Opposite Ekta Farm, Bodkdev, Ahmedabad – 380 058, Gujarat, India
Date of Birth/Age :	01.06.1953
Date of Appointment :	11.09.2007
DIN No.:	00027540
Name :	Mr. Rameshbhai Meghjibhai Patel
Designation :	Director
Address :	54, Shrinath Society B/h Manekbaug, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	01.06.1956
Date of Appointment :	11.09.2007
DIN No.:	00027637
Name :	Mr. Anandbhai Ishwarbhai Patel
Designation :	Director
Address :	54, Shrinath Society B/h Manekbaug, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	07.09.1962
Date of Appointment :	11.09.2007
DIN No.:	00027836
Name :	Mr. Chinubhai Ramanlal Shah
Designation :	Director
Address :	402, Heritage Residency, B/h Prahladnagar Garden, S.G. Highway, Ahemdabad – 380 015, Gujarat, India
Date of Birth/Age :	04.06.1937
Date of Appointment :	28.07.2009
DIN No.:	00558310
Name :	Mr. Balkrishna Tulsidas Thakkar
Designation :	Director
Address :	L-14/265, Satygrah Chhavani, Society, Satelite, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	13.10.1946
Date of Appointment :	28.07.2009
DIN No.:	00430220

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.06.2012

Names of Shareholders	No. of Shares
Meghmani Organics Limited, India	35182333
Jayantibhai Meghjibhai Patel	550100
Ashishbhai Natawarlal Soparkar	825100
Natwarlal Meghjibhai Patel	850100
Rameshbhai Meghjibhai Patel	550100
Anandbhai Ishwarbhai Patel	852600
Maulik Jayantibhai Patel	1650100
Deval Ashish Soparkar	137600
Ankit Natwarlal Patel	1400100
Karana Rameshbhai Patel	440100
Darshan Anandbhai Patel	82600
Taraben Jayantibhai Patel	275000
Kruti Jayantibhai Patel	275000
Nayana Ashish Soparkar	275000
Ruchi Ashish Soparkar	137500
Kaushal Ashish Soparkar	1375000
Bhartiben Natwarlal Patel	200000
Disha Natwarlal Patel	300000
Kalpanaben Rameshbhai Patel	385000
Vaishakhi Rameshbhai Patel	275000
Nayana Anandbhai Patel	82500
Chintan Anandbhai Patel	82500
International Finance Corporation, USA	15366666
Total	61549999

As on 29.06.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	24.97
Bodies corporate	57.16
Directors or relatives of directors	17.87
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Basic Chemicals (Caustic Soda Lye).

Products :

Item Code No.	Product Description
3008	Caustic Soda

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Caustic Soda	MT	201,600	119,000	89,265
Chlorine Gas	MT	178,620	105,435	79,089
Hydrogen Gas	‘000 NM	56,448	33,320	24,994
Hydrochloric Acid	MT	69,120	40,800	16,423
Sodium Hypochlorite	MT	16,200	9,563	1,807
Captive Power Plant	MW	378,000	336,000	263,363

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

v ICICI Bank Limited, J.M.C. House, Opposite Parimal Garden, Ambawadi, Ahmedabad – 380 009, Gujarat, India

v Standard Chartered Bank, Abhijeet II Ground Floor, Near Mithakali Six Roads, Ahmedabad – 380 006 Gujarat, India

v State Bank of India

v Bank of Maharashtra

v State Bank of Bikaner and Jaipur

v Karur Vysya Bank

v Bank of India

v Standard Chartered Bank, United Kingdom

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans :-
From Banks	1987.161	2057.566
From Other Parties (current maturities of term loans Rs.279.625 millions)	1562.589	828.193
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks	148.598	208.408
From Other Parties	0.000	0.000
Total	3698.348	3094.167

Banking Relations :	--
Auditors :
Name :	Patel and Khandwala Chartered Accountants
Address :	202, Akik Building, Mithakhali, Ahmedabad, Gujarat, India
PAN No.:	AAEFP0241L
Holding Company :	Meghmani Organics Limited CIN No.: L24110GJ1995PLC024052
Enterprise in which directors and KMP have significant influence :	v Meghmani Dyes and Intermediates v Meghmani Industries Limited v Meghmani Pigments v Meghmani Unichem LLP v Matangi Industries v Vidhi Gibal Chemicals Limited v Meghmani Energy Limited v Tapsheel Enterprise

CAPITAL STRUCTURE

After 29.06.2012

Authorised Capital : Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital : Rs.707.600 millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 Millions
2500000	Preference Shares	Rs.100/-each	Rs.250.000 Millions
	Total		Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
61549999	Equity Shares	Rs.10/- each	Rs.615.500 Millions

A. Reconciliation of No. of Shares

Particulars	In Nos.
	As at 31^st March, 2012
Opening Balance	61,549,999
Addition during the year	--
Deduction during the year	--
As at March 31, 2012	61,549,999

B. Details of Shareholding

Particulars	In Nos.
	As at 31^st March, 2012
Number of Shares held by
Holding Company (Meghmani Organics Limited)	35,182,333
Shareholders holding more than 5% shares
(a) International Finance Corporation	15,366,666

C. Each equity shareholder has 1 voting right. All equity shareholders have equal dividend rights.

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		615.500	615.500	615.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		709.578	708.693	1229.999
4] (Accumulated Losses)		0.000	0.000	(302.448)
NETWORTH		1325.078	1324.193	1543.051
LOAN FUNDS
1] Secured Loans		3698.348	3094.167	3790.520
2] Unsecured Loans		90.000	300.000	0.000
TOTAL BORROWING		3788.348	3394.167	3790.520
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		5113.426	4718.360	5333.571
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4007.876	4391.741	4788.940
Capital work-in-progress		368.652	19.127	4.687
OTHER NON-CURRENT ASSETS		59.102	9.386	0.000
INVESTMENT		190.135	0.010	0.010
DEFERRED TAX ASSETS		197.192	254.382	155.328
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	145.222	111.923	52.060
	Sundry Debtors	285.228	226.707	94.848
	Cash & Bank Balances	139.113	41.601	11.717
	Other Current Assets	287.059	306.715	1.697
	Loans & Advances	180.126	97.277	476.100
Total Current Assets		1036.748	784.223	636.422
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	172.185	211.321	151.617
	Other Current Liabilities	569.846	508.973	99.417
	Provisions	4.248	20.215	0.782
Total Current Liabilities		746.279	740.509	251.816
Net Current Assets		290.469	43.714	384.606
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5113.426	4718.360	5333.571

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	2504.277	1738.091	848.841
		Other Income	27.927	7.140	26.675
		TOTAL (A)	2532.204	1745.231	875.516
Less	EXPENSES
		Cost of materials consumed	1297.016	955.576	740.460
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.303	(6.779)
		Employee benefits expense	66.529	60.213
		Other expenses	206.944	214.539
		TOTAL (B)	1570.792	1223.549	740.460
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		961.412	521.682	135.056
Less	FINANCIAL EXPENSES (D)		430.769	378.004	269.353
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		530.643	143.678	(134.297)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		472.568	461.051	323.478
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		58.075	(317.373)	(457.775)
Less	TAX (H)		57.190	(98.513)	(155.328)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.885	(218.859)	(302.447)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Export	52.581	27.990	NA
	TOTAL EARNINGS		52.581	27.990	NA
	Earnings/ (Loss) Per Share (Rs.)		0.01	(3.56)	(4.91)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.03	(12.54)	(34.54)
Net Profit Margin (PBT/Sales)	(%)	2.29	(18.26)	(53.93)
Return on Total Assets (PBT/Total Assets}	(%)	1.15	(6.13)	(8.44)
Return on Investment (ROI) (PBT/Networth)		0.04	(0.24)	(0.30)
Debt Equity Ratio (Total Debt/Networth)		2.86	2.56	2.46
Current Ratio (Current Asset/Current Liability)		1.39	1.06	2.53

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	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

UNSECURED LOANS

Particular	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks (Current maturities of unsecured long term borrowings Rs.210.000 millions)	90.000	300.000
Total	90.000	300.000

CONTINGENT LIABILITIES

Contingent Liabilities not provided for in the accounts:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
In respect of Bank Guarantee	20.814	34.579
In respect of Letter of Credit	115.870	Nil
In respect of Letter of Credit	Nil	Nil

The estimated amount of contracts for expansion project of 20 MW of captive power plant remaining to be executed on capital accounts of Rs.185.401 millions (Previous Year: Rs.506.200 millions) is not provided for.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24100GJ2007PLC051717
Name of the company	MEGHMANI FINECHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	CH/1, CH/2, GIDC Industrial Estate, Dahej, Taluka Vagra, Bharuch - 392 130 Gujarat, India E-Mail: kamlesh.mehta@meghmani.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating Charge Others
Particular of charge holder	Standard Chartered Bank, Abhijeet II Ground Floor, Near Mithakali Six Roads, Ahmedabad – 380 006 Gujarat, India E-Mail: shivan.umashankar@sc.com
Nature of instrument creating charge	Unattested Memorandum of Hypothecation
Date of instrument Creating the charge	16.02.2012
Amount secured by the charge	Rs.765.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: The rate of interest on each utilisation will be at Bank's margin of 280 bps per annum added to three months LIBOR/the cost of funds to the Bank for the period of the utilisation Terms of Repayment Repayment will be made on each repayment date with an amount which reduces the base currency amount of the outstanding aggregate Utilization by an amount equal to 7.143% in 14 quarterly installments after a moratorium of 21 months from the date of first disbursement (1st installment will become due in 21st month from the date of drawdown) of all Utilizations borrowed by the Borrower as at close of business in London on the last day of the Availability period Margin 280 bps per annum added to three months LIBOR/the cost of funds to the Bank for the period of the utilisation. Extent and Operation of the charge The Bank is having first pari-passu charge by way of hypothecation of all moveable fixed assets of the Borrower (both present and future) including without limitation its all moveable plant and machinery and Second pari-passu charge by way of hypothecation over current assets (both present and future) of the Borrower as more specifically described under Schedule of the attached Unattested Memorandum of Hypothecation. Others: The security by way of hypothecation has been created in f/o the Bank for securing the ECB facility to the extent of USD 15 Mio. granted to Meghmani Finechem Limited. For the purpose of filing Form 8, it is clarified that Facility Amount is repayable in USD, hence any repayment from sale/enforcement proceeds of abovesaid assets shall be made at prevailing foreign currency exchange rate, for conversion from Indian Rupees to USD at the time of repayment to ensure full repayment of the Facility Amount.
Short particulars of the property charged (Including location of the property)	First pari-passu charge on all present and future moveable fixed assets of the Company including without limitation its moveable plant and machinery etc. Second pari-passu charge on all present and future book debts, outstanding moneys receivables, claims and bills etc. Second pari-passu charge on all present and future stock in trade consisting of raw materials, finished goods, goods in process of manufacturing etc.

FIXED ASSETS:

Tangible Assets:

v Leasehold Land

v Building

v Plant and Equipments

v Furniture and Fixtures

v Office Equipments

v Vehicles

v Capital Power Plant and Machinery

v Others (Computers)

Intangible Assets:

v GIDC Usage Right

WEBSITE DETAILS

PRESS RELEASE

IFC RECOGNIZES INDIAN CHEMICALS MAKER MEGHMANI FINECHEM LIMITED FOR PROMOTING GENDER EQUALITY

New Delhi, Delhi, March 26, 2012 /India PRwire/ -- IFC, a member of the World Bank Group, has honored India's

Meghmani Finechem Limited, a subsidiary of chemicals manufacturer Meghmani Organics Limited, with the annual IFC CEO Gender Award, noting the company's pioneering work in opening up India's chemical sector to women employees.

The award, presented by IFC Executive Vice President and CEO Lars Thunell on International Women's Day, recognizes companies for promoting gender equality in the workplace. With the support of IFC's environmental and social team, Meghmani Finechem Limited has installed restrooms, locker rooms and shower facilities for women in its plants. It has also enacted occupational health and safety policies that are sensitive to the needs of female employees.

"The IFC CEO Gender Award recognizes our efforts in implementing policies and measures that encourage the hiring women at our company," said Ashish Soparkar, Managing Director of Meghmani Organics Limited. Traditionally, women are not hired in chemical plants due to the perception of these jobs involving hard physical labor and tough working conditions.

"Meghmani Finechem has opened up the chemical industry for women, setting a new benchmark in India," said

Karin Finkelston, IFC Vice President for Asia. "Meghmani Finechem's efforts will help provide employment and livelihood opportunities to women in rural India, positively impacting their families."

The winners of this year's CEO Gender Award were chosen from among 27 nominees from across the world.

Meghmani Finechem Limited's parent company, Meghmani Organics Limited, is a chemicals group located in the Indian state of Gujarat. In 2008, IFC invested in Meghmani Finechem Limited at a time when the company's plants did not hire women. By June 2011, 45 of the company's 630 employees were female. Meghmani Organics Limited has a total of 2000 employees across its various plants, subsidiaries and offices.

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. 54.29
UK Pound	1	Rs. 83.88
Euro	1	Rs. 70.68

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.