MIRA INFORM REPORT

Report Date :

01.08.2013

IDENTIFICATION DETAILS

Name :	CRIS PHARMA (INDIA) LIMITED
Registered Office :	SP-2, 22, Godam Industrial Estate, Jaipur – 302006, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.09.1992
Com. Reg. No.:	17-034757
Capital Investment / Paid-up Capital :	Rs. 11.300 millions
CIN No.: [Company Identification No.]	U24139RJ1992PLC034757
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals.
No. of Employees :	85 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 120000
Status :	satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales and profitability during 2012. However, general financial position seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 PARTED BY

Name :	Mr. Poonam Chand Taparia
Designation :	Director
Contact No.:	91-141-2214001
Date :	01.08.2013

LOCATIONS

Registered Office :	SP-2, 22, Godam Industrial Estate, Jaipur – 302006, Rajasthan, India
Tel. No. :	91-141-2214001
Fax No. :	91-141-2212411
E-Mail :	skhorania@yahoo.co.in crisindia@rediffmail.com crisjaipur@rediffmail.com
Website :	www.crispharma.com
Location :	Rented
Factory 1 :	E-11, UPSIDC, Industrial Area, Selaqui, Dehradun – 248197, Uttarakhand, India
Tel. No.:	91-135-2698263
Export Division :	105, Imperial Tower, C-Block, Community Centre, Naraina Vihar, New Delhi – 110028, India
Tel. No.:	91-11-25775908
Fax No.:	91-11-25775908

DIRECTORS

As on 28.09.2012

Name :

Sua Lal Jat

Designation :

Director

Address :

22/22/1, Swarn Path, Mansarover, Jaipur – 302020, Rajasthan, India

Date of Birth/Age :

05.08.1953

Date of Appointment :

25.07.2011

DIN No. :

00556137

Name :

Mr. Poonam Chand Taparia

Designation :

Whole-time director

Address :

E-36, Roop Vihar, Opposite PNB, New Sanganer Road, Jaipur – 302019, Rajasthan, India

Date of Birth/Age :

07.04.1968

Date of Appointment :

24.08.2012

DIN No. :

00598323

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24139RJ1992PLC034757	CRIS PHARMA (INDIA) LIMITED	Whole-time director	24/08/2012	25/08/1997	-	Active	NO

Name :

Mr. Kailash Chandra Melana

Designation :

Director

Address :

C-163, Shashtri Nagar, Bhilwara, -311001, Rajasthan, India

Date of Birth/Age :

14.03.1961

Date of Appointment :

20.03.2005

DIN No. :

00598374

Name :

Mr. Vinod Kalani

Designation :

Director

Address :

B-8, NU Lite Colony, Tonk Road, Jaipur – 302015, Rajasthan, India

Date of Birth/Age :

18.05.1957

Date of Appointment :

01.09.1992

DIN No. :

00871628

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85195RJ1986PLC003527	OASIS TEST HOUSE LIMITED	Director	03/02/1986	03/02/1986	-	Active	NO
2	U24139RJ1992PLC034757	CRIS PHARMA (INDIA) LIMITED	Director	01/09/1992	01/09/1992	-	Active	NO

Name :

Mr. Rajnikant Chunilal Mehta

Designation :

Director

Address :

B-2, Suchita Apartment, Memnagar Road, Navrangpura, Ahmedabad – 380009, Gujarat, India

Date of Birth/Age :

18.10.1944

Date of Appointment :

20.03.2005

DIN No. :

01050030

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Vinod Kalani	501084
Sunita Kalani	51511
Komal Kalani	15500
Shyamal Kalani	17055
Vinod P.Kalani	11700
Vinod Kr.Ashok Kr.	9400
Ranjnikant C.Mehta	260000
Poonam Chand Taparia	2500
Kailash C. Melana	185000
Sunita Melana	45000
Kailash Ambit Melana HUF	25000
Akshat Melana	5000
Sonal Kalani	1250
Seagull Pharmaceuticals Private Limited	110000
Total	1240000

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceuticals.
Products :	Tablets / Syrups
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

85 (Approximately)

Bankers :

· State Bank of India, Main Branch, 4, Convent Road, Dehradun - 248001, Uttaranchal, India

Tel. No.: 91-135-2656351

Small Industries Development Bank of India, 59/4, 2^nd Floor, International Trade Centre, Rajpur Road, Dehradun - 248001, Uttarakhand, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long term borrowings
Term Loan From Bank
Total Oustanding Liability	9.587	3.340
Less: Current Maturities	2.328	0.252
Short term borrowing
Cash Credit Facility from Bank	9.222	8.281
Total	16.481	11.369

Note

Long term borrowings

The Term of Rs. 10.000 millions is secured by hypothecation of movable assets and pari - passu charge on immovable assets viz. land and building along with State Bank of India for Cash Credit Limit

Term loan from financial institution carries interest rate @ 11.5% p.a.

The loan of Rs. 10.000 millions is repayable in 60 monthly instalments of first 55 instalments of Rs. 0.166 million each and remaining 5 instalments of Rs. 0.174 million each, after a moratorium of 6 months

The loan of Rs. 1.000 million is repayable as Rs. 0.140 million after 9 months and balance in 30 monthly instalments of Rs. 0.028 million each.

The Term Loan is further guaranteed by irrevocable and unconditional guarantees of all the Promoters/ Directors

Short term borrowings

The cash credit facility is secured by hypothecation of Stock and Book Debts and guaranteed by directors

Banking Relations :	--
Auditors :
Name :	SMNP and Company Chartered Accountants
Address :	307, Palmohan Plaza, 11/56, D B Gupta Road, Karol Bagh, New Delhi – 110005, India
Tel. No. :	91-11-45052623 / 23539299
Fax No. :	91-22-40311901
E-Mail :	smnp@smalpani.com
Website :	www.smnpco.com
PAN No. :	ABJFS2756B
Associate Concerns :	· Jaipur Pharmaceutical Works Oasis Test House Limited
Enterprises owned or significantly influenced by Key Management Personals :	· Vinayka Consultancy Services, Jaipur BCM Corporation Oasis Testing House, Ahemadabad Jaipur Pharmaceutical Works, Jaipur

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1240000	Equity Shares	Rs.10/- each	Rs. 12.400 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1130000	Equity Shares	Rs.10/- each	Rs. 11.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	11.300	8.900
(b) Reserves & Surplus	17.498	9.817
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	1.500	2.000
Total Shareholders’ Funds (1) + (2)	30.298	20.717
(3) Non-Current Liabilities
(a) long-term borrowings	19.968	14.158
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.089	0.069
(d) long-term provisions	1.293	0.605
Total Non-current Liabilities (3)	21.350	14.832
(4) Current Liabilities
(a) Short term borrowings	10.878	9.716
(b) Trade payables	52.723	32.816
(c) Other current liabilities	8.208	4.447
(d) Short-term provisions	4.420	5.609
Total Current Liabilities (4)	76.229	52.588
TOTAL	127.877	88.137
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	48.926	31.660
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.616	5.374
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.003	0.000
(d) Long-term Loan and Advances	0.604	0.574
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	50.149	37.608
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	20.827	12.602
(c) Trade receivables	47.342	27.672
(d) Cash and cash equivalents	0.641	2.786
(e) Short-term loans and advances	8.918	7.469
(f) Other current assets	0.000	0.000
Total Current Assets	77.728	50.529
TOTAL	127.877	88.137

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		8.900
2] Share Application Money		0.000
3] Reserves & Surplus		4.445
4] (Accumulated Losses)		0.000
NETWORTH		13.345
LOAN FUNDS
1] Secured Loans		9.677
2] Unsecured Loans		9.377
TOTAL BORROWING		19.054
DEFERRED TAX LIABILITIES		0.000
TOTAL		32.399
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33.641
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.071
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.515
	Sundry Debtors	30.518
	Cash & Bank Balances	0.391
	Other Current Assets	0.000
	Loans & Advances	5.151
Total Current Assets		50.575
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.963
	Other Current Liabilities	11.477
	Provisions	6.448
Total Current Liabilities		51.888
Net Current Assets		(1.313)
MISCELLANEOUS EXPENSES		0.000
TOTAL		32.399

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	166.159	145.659	189.789
		Other Income	0.336	0.992	0.056
		TOTAL (A)	166.495	146.651	189.845
Less	EXPENSES
		Cost of material consumed	125.656	103.535
		Purchases of Stock in Trade	4.439	5.184
		Employee Benefit Expenses	15.498	11.583
		Other Expenses	15.681	14.189
		Changes in Inventory of Finished Goods, Work-in-Progress and Stock in Trade	(6.543)	1.970
		TOTAL (B)	154.731	136.461	170.454
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.764	10.190	19.391
Less	FINANCIAL EXPENSES (D)		3.487	2.814	2.608
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.277	7.376	16.783
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.705	4.574	4.816
	PROFIT BEFORE TAX (E-F) (G)		3.572	2.802	11.967
Less	TAX (H)		0.796	0.533	2.131
	PROFIT AFTER TAX (G-H) (I)		2.776	2.269	9.836
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.847	1.476	3.118
Add	Reversal of Provisions		0.036	3.102	0.000
Add	MAT Credit Entitlement		4.869	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	1.100
		Proposed Dividend	0.000	0.000	8.900
		Corporate Dividend Tax	0.000	0.000	1.478
	BALANCE CARRIED TO THE B/S		14.529	6.847	1.476
	IMPORTS
		Raw Materials	0.147	0.000	NA
		Capital Goods	0.004	0.000	NA
	TOTAL IMPORTS		0.151	0.000	NA
	Earnings Per Share (Rs.)
	Basic		2.70	2.55	11.24
	Diluted		2.35	2.08	11.24

Particulars	31.03.2013
Sales Turnover (Approximately)	200.000

The above information has been parted by Mr. Poonam Chand Taparia (Director)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.67	1.55	5.18
Net Profit Margin (PBT/Sales)	(%)	2.15	1.92	6.31
Return on Total Assets (PBT/Total Assets}	(%)	2.81	3.39	14.21
Return on Investment (ROI) (PBT/Networth)		0.12	0.14	0.90
Debt Equity Ratio (Total Debt/Networth)		1.02	1.15	1.43
Current Ratio (Current Asset/Current Liability)		1.02	0.96	0.97

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four 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	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10414270	13/02/2013	9,000,000.00	STATE BANK OF INDIA	SMECCC, IST FLOOR, MAIN BRANCH BUILDING, 4 CONVENT ROAD, DEHRADUN - 248001, UTTARAKHAND, INDIA	B71614200
2	10275917	30/03/2011	10,000,000.00	SMALL INDUSTRIAL DEVELOPMENT BANK OF INDIA	INTERNATIONAL TRADE CENTRE, 2ND FLOOR, 59/4, RAJPUR ROAD, DEHRADUN - 248001, UTTARAKHAND, INDIA	B09090580
3	10220460	25/04/2012 *	6,800,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	59/4, 2ND FLOOR, INTERNATIONAL TRADE CENTRE, RAJPUR ROAD, DEHRADUN - 248001, UTTARAKHAND, INDIA	B38851176
4	80013523	08/09/2006 *	31,500,000.00	STATE BANK OF INDIA	MAIN BRANCH, 4, CONVENT ROAD, DEHRADUN - 248001, UTTARAKHAND, INDIA	-

* Date of charge modification

NOTE

The registered office of the company has been shifted from 61 Alaknand Gulmohar Road, No.10, JVPD Scheme, Mumbai – 400019, Maharashtra, India to the present address w.e.f. 11.03.2011

OPERATING PERFORMANCE

Sufficient business operations were carried on during the year ended on 31st March, 2012. Hence, during the year, the Company’s revenue from operations increased from Rs.145.659 millions to 166.159 millions, thereby registering a growth of 14.07% over the previous year. The Profit before tax during the year increased from Rs 2.802 millions in the previous year to Rs. 3.572 millions thereby registering a growth of 27.48% over the previous year’s Profit before tax. The performance of the company remains outstanding and growth rate was also satisfactory during the year

UNSECURED LOANS

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Long term borrowing
Unsecured Borrowings	12.709	11.071
Short term borrowing
Loan from directors	1.656	1.434
Total	14.365	12.505

Note

Long term borrowings

Unsecured Borrowings are loans taken from directors at interest rate of 14% p.a. and not repayable wimin next 12 months from balance sheet date.

FIXED ASSETS

· Land

Road

Building

Computers and Software

Furniture

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 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.61.12
UK Pound	1	Rs.92.97
Euro	1	Rs.80.95

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		42

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.