MIRA INFORM REPORT

Report Date :

29.08.2013

IDENTIFICATION DETAILS

Name :	MACLEODS PHARMACEUTICALS LIMITED
Formerly Known As :	MACLEODS PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	304, 3^rd Floor, Atlanta Arcade, Marol Church Road, Andheri (East), Mumbai -400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.06.1989
Com. Reg. No.:	11-52049
Capital Investment / Paid-up Capital :	Rs.199.607 Millions
CIN No.: [Company Identification No.]	U24239MH1989PLC052049
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19656A
PAN No.: [Permanent Account No.]	AAACM4100C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Drugs, Pharmaceuticals, etc.
No. of Employees :	5000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 26100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having a fine track record. The financial of 2012 are not available, as per the of 2011, financial 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 normal for business dealings at usual trade terms and conditions.

NOTES :

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

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A1+ = Short term rating
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March 26, 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 PARTED BY

Name :	Mr. Suresh
Designation :	Account Manager
Contact No.:	91-9867305776
Date :	28.08.2013

LOCATIONS

Registered Office :	304, 3^rd Floor, Atlanta Arcade, Marol Church Road, Andheri (East), Mumbai -400059, Maharashtra, India
Tel. No.:	91-22-66762800/ 56762800
Mobile No. :	91-9867305776 (Mr. Suresh)
Fax No.:	91-22-28266229/ 29256599
E-Mail :	macleods@vsnl.com investors@macleodspharma.com exports@macleodspharma.com sagarwal@macleodspharma.com
Website :	http://www.macleodspharma.com
Location :	Owned
Factory 1 :	Plot No. 1 and 2, Mahim Road, Near Kuldeep Hotel, Palghar (West), District Thane– 401404, Maharashtra, India
Factory 2 :	Village: Theda, Kharuni- Lodimajra, Thehesil- Nalagarh, Baddi Industrial Estate Area, District: Solan, Himachal Pradesh, India
Factory 3 / Daman- Premier- Unit II :	Plot no. 25-27,  Survey No. 366, Premier Industrial Estate, Kachigam, Daman- 396320, Daman and Diu, India
Factory 4 / Daman- Kabra- Unit III :	Plot No. 367/ 7, Kabra Industrial Estate, Kachigam, Daman- 396210, Daman and Diu, India
Factory 5 :	Plot No.2209, GIDC Sarigam, District: Valsad, Gujarat, India

DIRECTORS

As on 28.09.2012

Name :	Mr. Girdharilal Murlidhar Bawri
Designation :	Director
Address :	5, Vinayak Heights, Upper Govind Nagar, Malad (East), Mumbai-400097, Maharashtra, India
Date of Birth/Age :	03.08.1947
Qualification :	B. Com / D. Pharma
Date of Appointment :	22.05.1990
DIN No.:	00034197
Name :	Mr. Banwarilal Murildhar Bawri
Designation :	Managing Director
Address :	5, Vinayak Heights, Upper Govind Nagar, Malad (East), Mumbai-400097, Maharashtra, India
Date of Birth/Age :	02.04.1953
Qualification :	D. Pharm
Date of Appointment :	01.04.2010
DIN No.:	00017795
Name :	Mr. Rajendra Murlidhar Agarwal
Designation :	Managing Director
Address :	5, Vinayak Heights, Upper Govind Nagar, Malad (East), Mumbai-400097, Maharashtra, India
Date of Birth/Age :	25.02.1959
Qualification :	M.B.B.S.
Date of Appointment :	01.04.2010
DIN No.:	00034224
Name :	Mr. Vimal Manekchand Kothari
Designation :	Director
Address :	132, Avanti Apartment, Senapati Bapat Marg, Dadar (West), Mumbai-40028, Maharashtra, India
Date of Birth/Age :	28.06.1940
Qualification :	M.Com / LLB / FICWA
Date of Appointment :	27.03.2006
DIN No.:	00056003
Name :	Mr. Navrang Ladhuram Tibrewal
Designation :	Director
Address :	Plot No. A, Schemeno 8, Gandhipath, Queens Road, Jaipur-302021, Rajashtra, India
Date of Birth/Age :	17.01.1937
Qualification :	LLM
Date of Appointment :	27.03.2006
DIN No.:	00030151

KEY EXECUTIVES

Name :	Mrs. Suvarna Dadabhau Gholap
Designation :	Secretary
Address :	103-A, Building No.26, Tilak Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	15.07.1982
Date of Appointment :	01.03.2011
PAN No.:	ANJPG7538B
Name :	Mr. Suresh
Designation :	Account Manager

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Shareholders	No. of Shares	Percentage
Banwarilal Murildhar Bawri	6044160	30.28
Ajay Agarwal	4255800	21.32
Anju Agarwal	3256200	16.31
Rajendra Murlidhar Agarwal	3084360	15.45
Girdharilal Murlidhar Bawri	2235360	11.2
Sudha Bawri	380400	1.91
Anushree Agarwal	229200	1.15
Ruchi Agarwal	192840	0.97
Taradevi Bawri	162000	0.81
Rajendra Murlidhar Agarwal HUF	120000	0.60
Vijay Agarwal	360	0.00
Total	19960680	100.00

Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Drugs, Pharmaceuticals, etc.

Products :

Item Code No. (ITC Code)	Product Description
30042034	Ofloxacin USP 200mg Tablet
30049072	Amlodipine besylate equiv. To Amlod 5mg/Aten 50mg
30049057	Deflazacort 6mg Tablet
30049072	Amlodipine besylate equiv. To Amlodipine 5mg
30043912	Prednisolone dispersible Tablet 10mg
30042092	Rifa225/Iso 150/Etha 450/Pyra 750 Tablet
30049057	Levofloxacin 5mg Tablet
30043912	Prednisolone dispersible Tablet 5mg
30043912	Prednisolone dispersible Tablet 20mg

· Drugs

· Pharmaceuticals

· Alkalis

· Acids

· Essences

· Petrochemicals

· Chemicals

Exports :

Products :

· Drugs

· Pharmaceuticals

Countries :

· Africa

· Russia

· Europe

Imports :

Products :

Raw Material

Countries :

· Korea

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash, Credit and Depend

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

5000 (Approximately)

Bankers :

· State Bank of India, Industrial Finance Branch, S. V. Road, Malad (West), Mumbai – 400064, Maharashtra, India.

· State Bank of India, Commercial Branch (Advances), N G N Vaidya Marg, Mumbai – 400023, Maharashtra, India

· Citi Bank N.A., Commercial Banking Group, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Working capital loans banks secured	740.564	974.077
Total	740.564	974.077

Note:

Includes Overdraft Account with State Bank of India (Overdraft account with SBI is secured against lien on Term Deposit Receipts), SBI Commercial Branch. Fort-Cash Credit -A/c Cash Credit account with SBI is secured by hypothecation of company's entire stock and receivable and Collateral security of Plant and Machinery and personal guarantee of a director.), Cash Credit Account with Citi Bank.

Banking Relations :	--
Auditors :
Name :	Bansal Bansal and Company Chartered Accountant
Address :	6/152, Sanjay Building No. 6, Mittal Instl. Estate, Andheri Kurla Road, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-28507815/66923607/28507816
Fax No.:	91-22-28507816
E-Mail :	mail@bansalbansal.com
PAN No.:	AABFB5224E
Subsidiaries :	East and West Clothing Private Limited CIN No.: U29140MH1975PTC018072

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19960680	Equity Shares	Rs.10/- each	Rs.199.607 Millions

NOTE:

· 2,50,00,000 equity shares of Rs.10/- each

· 19960680 equity share of Rs.10/- each Out of the above 18297290 equity shares of Rs.10/- each allotted as fully paid up bonus shares by capitalising General Reserve, Share Premium Account and Profit and Loss Account

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		199.607	199.607	199.607
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6318.051	4401.450	3115.434
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6517.658	4601.057	3315.041
LOAN FUNDS
1] Secured Loans		740.564	974.077	861.102
2] Unsecured Loans		88.348	71.654	310.813
TOTAL BORROWING		828.912	1045.731	1171.915
DEFERRED TAX LIABILITIES		0.000	261.547	270.337
TOTAL		7346.570	5908.335	4757.293
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2422.750	1907.111	1978.397
Capital work-in-progress		87.115	26.177	0.690
INVESTMENT		92.954	580.280	75.067
DEFERREX TAX ASSETS		401.360	358.300	201.348
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2705.776	1609.672	1408.564
	Sundry Debtors	1841.994	967.449	979.997
	Cash & Bank Balances	2133.725	1669.811	964.276
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1355.405	783.880	618.519
Total Current Assets		8036.900	5030.812	3971.356
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2762.814	1411.551	1041.937
	Other Current Liabilities	43.979	30.949	34.996
	Provisions	887.716	551.845	392.632
Total Current Liabilities		3694.509	1994.345	1469.565
Net Current Assets		4342.391	3036.467	2501.791
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7346.570	5908.335	4757.293

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13918.492	9034.125	7389.985
		Other Income	363.787	218.273	144.100
		TOTAL (A)	14282.279	9252.398	7534.085
Less	EXPENSES
		Raw Material Consumed	6271.470	3612.521	3169.409
		Manufacturing Expenses	394.876	304.392	269.542
		Purchase of Trading Goods	0.000	439.957	260.593
		Excise duty	0.000	126.202	173.625
		Payments to and Provisions for Employees	1838.852	1217.415	1017.354
		Selling, Administration and Other Expenses	2811.949	1569.265	1264.716
		Research and Development Expenses	452.966	314.836	329.137
		Sales Tax Paid	0.000	2.892	1.596
		Increase / Decrease in Stocks of Finished Goods	0.000	9.494	(141.079)
		Prior Period Items	(6.722)	0.000	0.000
		TOTAL (B)	11763.391	7596.974	6344.893
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2518.888	1655.424	1189.192
Less	FINANCIAL EXPENSES (D)		20.436	55.340	130.618
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2498.452	1600.084	1058.574
Less/ Add	DEPRECIATION/ AMORTISATION (F)		193.584	195.301	113.117
	PROFIT BEFORE TAX (E-F) (G)		2304.868	1404.783	945.457
Less	TAX (H)		156.125	72.139	(8.455)
	PROFIT AFTER TAX (G-H) (I)		2148.743	1332.644	953.912
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4192.600	2956.585	2087.702
Less	APPROPRIATIONS
		Transfer to General Reserve		50.000	50.000
		Dividend	467.142	39.921	29.941
		Tax on Distributed profit		6.708	5.088
	BALANCE CARRIED TO THE B/S		5874.201	4192.600	2956.585
	EARNINGS IN FOREIGN CURRENCY		3239.622	1752.335	NA
	Earnings Per Share (Rs.)		107.31	66.80	48.08

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	23280.000	17460.000

Expected Sales (2013-2014) : Rs.25000.000 millions

The above information has been parted by Mr. Suresh (Accounts Department)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.04	14.40	12.66
Net Profit Margin (PBT/Sales)	(%)	16.56	15.54	12.79
Return on Total Assets (PBT/Total Assets}	(%)	22.04	20.25	15.89
Return on Investment (ROI) (PBT/Networth)		0.35	0.30	0.29
Debt Equity Ratio (Total Debt/Networth)		0.13	0.23	0.35
Current Ratio (Current Asset/Current Liability)		2.18	2.52	2.70

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 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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

NOTE: CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL NOT AVAILABLE

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90224199	18/12/2000 *	2,950,000.00	STATE BANK OF INDIA	MALAD BRANCH, MUMBAI, Maharashtra, INDIA	-

PERFORMANCE REVIEW

The Company has shown healthy achievement in terms of turnover, operating income and profit after tax. The overall business performance of the Company is strong due to continuous support of its established market position in the formulations market in India in the anti-tuberculosis (TB), anti-infectives and corticosteroids therapeutic segments and launch of new products and brand extensions, and the strong field force of the company. This has resulted in healthy cash accruals, leading to increase in the company’s net worth and further improvement in debt protection metrics. Your company has successfully strengthened its presence in domestic market and improved its marketing reach. In 2010-11, it derived around 76 per cent of its revenues from the domestic market, where it is a large player, and the rest from exports to semi-regulated markets in the Commonwealth of Independent States (CIS), Africa, and Latin America., The Company has spent total 4.70% of total Turnover on Research and Development. The Company incurred revenue expenditure of Rs 478.89/- millions and capital expenditure of Rs 181.950 millions on scientific research including that on in-house Research and Development facility. To meet the increasing demands, the Company has expanded its premier Unit II at Plot No. 28 and 30, Daman and has also set up new manufacturing unit i.e. Unit VII at Plot No.8, Daman. The export range of Macleods are manufactured in a unit that has QMS certification from WHO-Geneva, UKMHRA and approvals from various International Regulatory Authorities like, USFDA, NMA Romania, MOH – Belarus, INVIMA – Colombia, National Drugs Authority (NDA) Uganda, Food and Drugs Board (FDB) Ghana, MCAZ – Zimbabwe, Pharmacy and Poisons Board Kenya, Pharmacy Board Tanzania, DPM – Ivory Coast, MOH–Ukraine, etc. During the year the Company has received certification from USFDA, MHRA, WHO GENEVA for its manufacturing its at Daman and Baddi. The Company has well established research center at Andheri with well-experienced research personnel who are able to develop products as per the specific requirements of customers. The R and D department has a fully equipped Bio-equivalence center, which is approved by WHO-Geneva. It is further Upgraded by developing fully equipped Pathology Department as well and during the year the Company has expanded its R and D Centre and has set up one new Bio Equivalence Lab in the R and D Center. The R and D department is continuously engaged in developing formulations that are bio-equivalent to innovators. Over the years this department has made significant contributions in furnishing bio-equivalent formulations in the therapeutic categories of HIV AIDS, Tuberculosis, Malaria, Gastroenterology, and Orthopedics. Macleods initiating marketing operations in developed markets and strategic business alliance to augment its presence and operations in the US, the UK and the rest of Europe. For making its market position stronger, Macleods continues to explore marketing tie-ups with local players in developed markets.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Vehicles

· Training

· Office Equipment

· Factory Equipments

· Computers

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. 64.23
UK Pound	1	Rs. 100.01
Euro	1	Rs. 85.93

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.