MIRA INFORM REPORT

Report Date :

14.12.2013

IDENTIFICATION DETAILS

Name :	CLARION DRUGS LIMITED (w.e.f. 13.07.2005)
Formerly Known As :	CLARION DRUGS PRIVATE LIMITED
Registered Office :	Devaditumsar Road, Bhandara – 441913, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.03.1993
Com. Reg. No.:	11-071268
Capital Investment / Paid-up Capital :	Rs. 12.218 Millions
CIN No.: [Company Identification No.]	U24139MH1993PLC071268
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Intermediates.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 51000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has incurred loss from its operation in 2013. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some 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 – 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 (GENERAL DETAILS)

Name :	Mr. U. Sharma
Designation :	Admin. Department
Contact No.:	91-7183-220252
Date :	10.12.2013

LOCATIONS

Registered Office/ Factory :	Devaditumsar Road, Bhandara – 441913, Maharashtra, India
Tel. No. :	91-7183-220252
Fax No. :	91-7183-220252 / 223418
E-Mail :	clariondrugs@hotmail.com cdltumsar@clariongrugs.com
Website :	www.clariondrugs.com
Area :	12 acres
Location :	Owned
Corporate/ Administrative Office :	D-8, Anmol, Clarke Town, Nagpur - 440004, India
Tel. No. :	91-712 2546140/ 2552671
Fax No. :	91-712-2528832
E-Mail :	info@clariondrugs.com
Area :	12000 sq.ft.
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Rambilas Keshao Tiwari

Designation :

Managing director

Address :

Clarion Drugs Limited, Premises Tumsar Road, Devadi – 441913, Maharashtra, India

Date of Birth/Age :

03.01.1938

Date of Appointment :

01.01.2011

DIN No. :

00472271

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	Company/ LLP Status	Defaulting status
1	U24139MH1993PLC071268	CLARION DRUGS LIMITED	Managing director	01-01-11	22-03-93	Active	NO

\

Name :

Mrs. Bindumati Rambilas Tiwari

Designation :

Director

Address :

B-9, Anmol Apartment, Clark Town, Bezan Baugh, Nagpur – 440004, Maharashtra, India

Date of Birth/Age :

08.07.1938

Date of Appointment :

22.03.1993

DIN No. :

00472234

Name :

Divya Ajay Patel

Designation :

Director

Address :

3, Palm Grove, 45, Sarat Chandra Chatterjee, Santacruz (West), Mumbai, 400054, Maharashtra, India

Date of Birth/Age :

10.04.1966

Date of Appointment :

26.04.1993

DIN No. :

00708823

Name :

Mr. Charanjitlal Katyal Malik

Designation :

Director

Address :

8B, 3 Mousmi Co-operative Housing Society Limited, 15B, Ballygunje Circular Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

13.05.1930

Date of Appointment :

17.02.1998

DIN No. :

00472197

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	U27200MH1977PLC019857	UNI DERITEND LIMITED	Director	19-09-84	19-09-84	30-09-13	Active	NO
2	U24139MH1993PLC071268	CLARION DRUGS LIMITED	Director	17-02-98	17-02-98	-	Active	NO

Name :

Mr. Vinodkumar Hemraj Behl

Designation :

Director

Address :

603/604, ‘B’ Wing, Mangolia Enclave, Nahar Amrit Shakti, Chandivli, Mumbai – 400072, Maharashtra, India

Date of Birth/Age :

14.06.1949

Date of Appointment :

01.01.2006

DIN No. :

00472315

Name :

Mr. Vivek Rambilas Tiwari

Designation :

Whole-time director

Address :

D/8, Anmol Apartment, Clark Town, Nagpur – 440004, Maharashtra, India

Date of Birth/Age :

25.11.1969

Date of Appointment :

01.01.2011

DIN No. :

01287320

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	Company/ LLP Status	Defaulting status
1	U24230MH2004PTC150306	SAKET BIOTECH PRIVATE LIMITED	Director	27-02-07	27-02-07	Active	NO
2	U24139MH1993PLC071268	CLARION DRUGS LIMITED	Whole-time director	01-01-11	30-09-10	Active	NO

Name :

Mr. Shah Kashyap Suresh

Designation :

Director

Address :

28/C, Dinath Wadi, L J Road, Opp City Light, Mahim, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

31.08.1967

Date of Appointment :

30.09.2010

DIN No. :

03013806

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	Company/ LLP Status	Defaulting status
1	U24139MH1993PLC071268	CLARION DRUGS LIMITED	Director	30-09-10	30-09-10	Active	NO
2	U51101AP2010PTC071300	GLOPEC INTERNATIONAL (INDIA) PRIVATE LIMITED	Director	22-11-10	22-11-10	Active	NO
3	U24232AP2012PTC081598	EPIONE LABS PRIVATE LIMITED	Director	21-06-12	21-06-12	Active	NO

KEY EXECUTIVES

Name :	Mr. U. Sharma
Designation :	Admin. Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Mathur S. Kuldeepkumar	1
Tiwari K. Rambilas	941
Tiwari R. Bindumati	101
Tlwarl R. Bindumati Jt. Dr. Tiwari B.R.	1099
Tiwari R. Bindumati Jt. Tiwari Vivek	300
Tiwari K. Rambilasji Tiwari Bindumati	1998
Tiwari K. Rambilas Jt. Tiwari Vivek	1150
Tiwari K. Rambilas Jt Ms. Tiwari Pragya	728
Tiwari R. Vivek	1125
Patel A. Divya	315
Tiwari R. Pragya	385
Upadhyaya Y. Girishchandra Jt. Upadhyaya Madhu	250
Upadhyaya Y. Madhu	600
Upadhyaya Y. Girishchandra	650
Trivedi J. Vinaychandra Jt. Trivedi V. Indira Jt Trivedi V. Sanjay	125
Trivedi J. Pradyumnakumar	120
Trivedi J. Arvindkumar	60
Trivedi T. Hitesh	60
Trivedi J. Nareshkumar	60
Tiwari Shweta Jt. Tiwari Vivek	200
Trivedi P. Rita Jt. Trivedl P. Anish	120
Saket Biotech Private Limited, India	1675
Trivedi V. Indira	110
Trivedi S. Hardik	45
Total	12218

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	13.71
Directors or relatives of Directors	80.55
Other top fifty shareholders	5.74
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceutical Intermediates.
Exports :
Products :	Pharma Intermediates
Countries :	· Germany France Poland
Terms :
Selling :	L/C and TT
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

SI Group Limited

Customers :

Manufacturer and Dealer

· Unichem Laboratories Limited

No. of Employees :

100 (Approximately)

Bankers :

· IDBI Bank Limited, IDBI Bank City MSME Center, First Floor, Sanskrutik Sankul, Jhansi Rani Square, Sitabuldi, Nagpur - 440012, Maharashtra, India

The State Industrial and Invest. Corp. of Maharashtra Limited, Nirmal; 1 -St Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

Allahabad Bank, Hasan Chambers, Ca House, Gandhibagh, Nagpur, Maharashtra, India

Bank of India

HDFC Bank Limited

Indusind Bank

The South Indian Bank

Facilities

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
IDBI – TL Secured by hypothecation of Machinery to be procured out of Term Loan assistance Additional Collateral Security: · Personal guarantee by Dr. R.B. Tiwari, Bindumati Tiwari and Vivek Tiwari Hypothecation of fixed assets of the company.	2.364	2.018
SHORT TERM BORROWINGS
IDBI Bank – Cash Credit Secured by hypothecation of current assets (Stock and Debtors) of the company Additional Collateral Security: · Personal guarantee by Dr. R.B. Tiwari, Bindumati Tiwari and Vivek Tiwari Hypothecation of fixed assets of the company.	5.526	7.933
Total	7.890	9.951

Banking Relations :	--
Auditors :
Name :	Mukesh S Agrawal and Company Chartered Accountants
Address :	33-A, Central Bazar Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AARPA3866H

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000	Equity Shares	Rs.1000/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,218	Equity Shares	Rs.1000/- each	Rs. 12.218 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12.218	12.218	12.218
(b) Reserves & Surplus	0.568	3.008	15.137
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	12.786	15.226	27.355
(3) Non-Current Liabilities
(a) long-term borrowings	11.290	9.923	7.679
(b) Deferred tax liabilities (Net)	3.634	3.992	4.055
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	14.924	13.915	11.734
(4) Current Liabilities
(a) Short term borrowings	5.526	7.933	5.588
(b) Trade payables	43.822	37.956	19.742
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	9.004	4.953	6.159
Total Current Liabilities (4)	58.352	50.842	31.489
TOTAL	86.062	79.983	70.578
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	35.630	32.986	29.977
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.508	1.320	1.326
(e) Other Non-current assets	4.750	4.164	2.255
Total Non-Current Assets	41.888	38.470	33.558
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.071	17.383	17.692
(c) Trade receivables	15.926	21.863	17.295
(d) Cash and cash equivalents	3.370	1.476	0.695
(e) Short-term loans and advances	0.807	0.791	1.338
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	44.174	41.513	37.020
TOTAL	86.062	79.983	70.578

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	103.710	82.331	83.694
		Other Income	0.794	0.202	0.193
		TOTAL (A)	104.504	82.533	83.887
Less	EXPENSES
		Cost of materials consumed	67.299	52.632	48.913
		Manufacturing service cost	21.958	19.153	17.149
		Employee benefits expense	13.028	9.892	8.920
		Administrative, selling and other expenses	5.456	5.000	5.827
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(5.723)	3.574	(1.527)
		TOTAL (B)	102.018	90.251	79.282
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.486	(7.718)	4.605
Less	FINANCIAL EXPENSES (D)		2.417	1.517	1.498
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.069	(9.235)	3.107
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.865	2.545	2.317
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(2.796)	(11.780)	0.790
Less	TAX (H)		(0.356)	0.350	(0.577)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(2.440)	(12.130)	1.367
	EARNINGS IN FOREIGN CURRENCY
		Exports	31.870	3.372	18.508
	TOTAL EARNINGS		31.870	3.372	18.508
	Earnings / (Loss) Per Share (Rs.)		(199.69)	(992.76)	111.86

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(2.33)	(14.70)	1.63
Net Profit Margin (PBT/Sales)	(%)	(2.70)	(14.31)	0.01
Return on Total Assets (PBT/Total Assets}	(%)	(3.25)	(14.73)	1.12
Return on Investment (ROI) (PBT/Networth)		(0.22)	(0.77)	0.03
Debt Equity Ratio (Total Debt/Networth)		1.32	1.17	0.48
Current Ratio (Current Asset/Current Liability)		0.76	0.82	1.18

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	Yes
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	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	10348009	19/03/2012	3,500,000.00	IDBI BANK LIMITED	IDBI BANK CITY MSME CENTER, FIRST FLOOR, SANSKRU TIK SANKUL, JHANSI RANI SQUARE, SITABULDI, NAGPUR - 440012, MAHARASHTRA, INDIA	B37090982
2	10220479	29/12/2011 *	27,685,000.00	IDBI BANK LIMITED	MSME CENTRE, 1ST FLOOR, SANSKRUTIK SANKUL,, JHASI RANI SQUARE, SITABULDI,, NAGPUR, MAHARASHTRA - 44 0010, INDIA	B30517023

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
From Related Parties	7.818	6.765
From Others	1.108	1.140
Total	8.926	7.905

CONTINGENT LIABILITIES (AS ON 31.03.2013):

i) As reported in the notes of balance sheet as on 31/03/2001 the company had filed a counter claim of damages against claim of Hindustan Max-G.B. Limited amounting to Rs 1.123 Millions, in respect of inferior quality of raw material. The matter is still pending in the courts and the company is also negotiating with Hindustan Max-G.B. Limited hence no provision has been made in the accounts for the same.

ii) The company has generally paid to its suppliers/creditors on due date according to the terms of contract, if any, with them. The company is in the process of identifying its suppliers who are covered under the interest on delayed payments to Small Scale and Ancillary Industries Act 1993. Consequently the liability under the said Act, if any, on account of interest has not been ascertained

FIXED ASSETS

· Plant and Machinery

Building

Furniture

Electrical Installation

Lab Equipments

Freehold Land

Car

Computer

Office Equipments

Books and CDs

Tractor

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.62.13
UK Pound	1	Rs.101.53
Euro	1	Rs.85.41

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.