MIRA INFORM REPORT

Report Date :

13.02.2013

IDENTIFICATION DETAILS

Name :	DOSHION VEOLIA WATER SOLUTIONS PRIVATE LIMITED (w.e.f. 15.05.2008)
Formerly Known As :	DOSHION WATER SOLUTIONS PRIVATE LIMITED
Registered Office :	347, Warehousing Complex, ACME Compound Road, Wadala (East), Mumbai-400037, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.08.2007
Com. Reg. No.:	11-173486
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U41000MH2007PTC173486
TAN No.: [Tax Deduction & Collection Account No.]	MUMD16188E
PAN No.: [Permanent Account No.]	AACCD8958M
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of the Engineering, Procurement and Construction (EPC) segment of the Total Water Treatment Business.
No. of Employees :	Information Denied by the Management

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 4430000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The latest financial are not made available. As per previous year’s, the performance of the company seems to be good. Financially the company seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB- (Cash Credit)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligations.
Date	23, 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 DECLINED BY

Name :	Mr. Mahesh Shah
Designation :	General Manager Finance
Contact No.:	91-9328994244
Date :	06.02.2013

LOCATIONS

Registered Office :	347, Warehousing Complex, ACME Compound Road, Wadala (East), Mumbai-400037, Maharashtra, India
Tel. No.:	Not Available
Mobile No.:	91-9328994244 [Mr. Mahesh Shah]
Fax No.:	Not Available
E-Mail :	yogesh@doshion.com cs@doshionveolia.com
Website :	www.doshionveolia.com
Head Office :	Plot No. 4, Phase – II, G.I.D.C., Vatva, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-25831156
Fax No.:	91-79-30406296
Branches :	Located at: Ø Ahmedabad Ø Kolkata Ø Jakarta Indonesia Ø Mumbai Ø Chennai Ø New Delhi Ø Hyderabad Ø Bhopal Ø Bangalore Ø Ahmedabad

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Ashit Dhirajlal Doshi
Designation :	Managing Director
Address :	A-103, 10th Floor, Tirthbhoomi Apartment, Behind Law College, Ahmedabad-380006, Gujarat, India
Date of Birth/Age :	18.08.1965
Qualification :	B.Sc.
Experience:	25 Years
Date of Appointment :	27.08.2007
PAN No.:	AACPD7752Q
Din No.:	00150851
Name :	Mr. Ganapathy Viswanathan Iyear
Designation :	Director
Address :	7, Nilgiri, Chhed Nagar, Chembur, Mumbai-400089, Maharashtra, India
Date of Birth/Age :	24.09.1953
Date of Appointment :	29.09.2009
Din No.:	00081038
Name :	Mr. Rakshit Dhirajlal Doshi
Designation :	Whole-time director
Address :	A/103, 10^th Floor, Trithbhoomi Apartment, Behind Law College, Ahmedabad-380006, Gujarat, India
Date of Birth/Age :	29.05.1969
Qualification :	B.E. (Chemical)
Experience:	21 Years
Date of Appointment :	26.12.2008
PAN No.:	AACPD8698R
Din No.:	00150910
Name :	Mr. Dhirajlal Shivlal Doshi
Designation :	Director
Address :	71, Oceana Apartments, Shivaji Park, Dadar, Mumbai-400028, Maharashtra, India
Date of Birth/Age :	08.05.1939
Date of Appointment :	27.08.2007
Din No.:	00158450
Name :	Mr. Prasad Gadkari
Designation :	Nominee Director
Address :	111, Laxmi Niketan, 4^th Road, Hindu Colony, Dadar, Matunga, Mumbai-400014, Maharashtra, India
Date of Birth/Age :	20.02.1974
Date of Appointment :	25.11.2010
Din No.:	02607255
Name :	Mr. Claude Soler
Designation :	Director
Address :	14, Rue De Nancy, Vesailles-78000, France
Date of Birth/Age :	24.12.1946
Date of Appointment :	29.09.2009
Din No.:	02469273
Name :	Mr. Fabrice Pascal Jacques Brochet
Designation :	Director
Address :	52, Allee Santos Dumont, Suresnes – 92150, France
Date of Birth/Age :	22.08.1966
Date of Appointment :	14.05.2011
Din No.:	03530334

KEY EXECUTIVES

Name :	Mr. Mahesh Shah
Designation :	General Manager Finance
Name :	Mr. Yogesh Kumar Mishra
Designation :	Secretary
Address :	B-1, 42, Nirman Complex, R C Tech, Road, Ghatlodia, Ahmedabad-380061, Gujarat, India
Date of Birth/Age :	03.05.1970
Date of Appointment :	02.12.2008
PAN No.:	AJEPM8843L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Equity Shareholders	No. of Shares
Doshion Limited, India	3500000
Veolia Water Solutions and Technologies, France	1500000
Total	5000000

Name of Preference Shareholder	No. of Shares
Doshion Limited, India	9488000
Total	9488000

AS ON 28.09.2012

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]	30.00
Bodies corporate	70.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of the Engineering, Procurement and Construction (EPC) segment of the Total Water Treatment Business.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Actual Production
Resin	Ltrs	1476326	2160000
Pharma Grade Resins	Kgs	98350	168000
Water Treatment Chemicals	Kgs.	453120	1800000
WT Plants	Nos.	46	46

GENERAL INFORMATION

No. of Employees :

Information Denied by the Management

Bankers :

Ø The Karur Vysya Bank Limited, Motilal Centre, Ashram Road, Ahmedabad – 380009, Gujarat, India

Ø Bank of Baroda, Corporate Financial Services, Ahmedabad Branch, 1^st Floor, Bank of Baroda Towers, Near Law Garden, Ahmedabad – 380006, Gujarat, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans financial institutions secured	110.000	153.333
Working capital loans banks secured	868.762	185.872
Loans taken for vehicles secured	2.257	3.899
Total	981.019	343.104
Note: (1) Rupee term loan financial institutions secured by first pari passu charge on all current assets and second charge on all fixed assets and guarantee by directors in their personal capacity. (2) Working capital loans from banks secured by first and second pari passu charge on all immovable assets and current assets. (3) Vehicle finance from Banks and Financial Institutions secured by hypothecation of the related vehicles.

Banking Relations :	--
Financial Institutions :	Ø IL and FS Trust Company Limited, IL and FS Financial Centre, Plot No. C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Ø Tata Capital Limited, One Forbes, Dr V B Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	“Heritage”, 3^rd Floor, Near Gujarat Vidhyapith, Off Ashram Road, Ahmedabad-380014, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AABFD7919A
Holding Company :	Doshion Limited, Gujarat, India [U24110GJ1995PLC025307]
Subsidiary Company:	PT Doshion Veoila Water Solution Indonesia
Other Related party :	Ø Veolia Water Solutions and Technology Ø Pacific Pipe Systems Private Limited CIN No.: U28110GJ2008PTC053182 Ø Doshi and Company Ø Thomson Nusa Metals Private Limited [U31501TN1992PTC023326]
Associates :	Ø Nagaur Water Supply Company Private Limited CIN No.: U41000GJ2008PTC053373 Ø Shivpuri Water Infrastructure Private Limited CIN No.: U41000GJ2009PTC057906 Ø De Aryans Private Limited CIN No.: U74999GJ2006PTC049658
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Ø Fivebro International Private Limited CIN NO: U41000GJ2002PTC041470

CAPITAL STRUCTURE

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7,500,000	Equity Shares	Rs. 10/- each	Rs. 75.000 Millions
10,000,000	Preference Shares	Rs. 10/- each	Rs. 100.000 Millions
	Total		Rs. 175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions
9,488,000	Preference Shares	Rs. 10/- each	Rs. 94.880 Millions
	Total		Rs. 144.880 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1057.475	991.364	927.275
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1107.475	1041.364	977.275
LOAN FUNDS
1] Secured Loans		981.019	343.104	360.080
2] Unsecured Loans		0.000	250.000	45.347
TOTAL BORROWING		981.019	593.104	405.427
DEFERRED TAX LIABILITIES		11.367	12.866	14.189
TOTAL		2099.861	1647.334	1396.891
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		232.760	229.804	231.298
Capital work-in-progress		39.394	0.900	0.000
INVESTMENT		11.437	10.856	10.856
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	417.359	292.970	242.388
	Sundry Debtors	1938.244	1626.235	1640.503
	Cash & Bank Balances	148.125	150.779	156.173
	Other Current Assets	22.779	14.298	17.804
	Loans & Advances	238.449	248.208	161.246
Total Current Assets		2764.956	2332.490	2218.114
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	585.399	692.595	911.474
	Other Current Liabilities	317.869	199.031	132.263
	Provisions	45.418	35.090	19.640
Total Current Liabilities		948.686	926.716	1063.377
Net Current Assets		1816.270	1405.774	1154.737
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2099.861	1647.334	1396.891

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2009.100	2919.100	2909.700
		Other Income
		TOTAL	2009.100	2919.100	2909.700
Less	EXPENSES		1922.200	2839.900	2806.800
	PROFIT BEFORE TAX		86.900	79.200	102.900
Less	TAX		15.000	9.300	21.900
	PROFIT AFTER TAX		71.900	69.900	81.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		143.100	79.000	N.A.
Less	APPROPRIATIONS
		Proposed Dividend	5.000	5.000	N.A.
		Corporate Dividend Tax	0.800	0.800
	BALANCE CARRIED TO THE B/S		209.200	143.100	N.A.
	EARNINGS IN FOREIGN CURRENCY		142.522	219.186	605.561
	IMPORTS
		Raw Materials	236.728	319.578	324.578
		Capital Goods	2.395	0.250	0.000
	TOTAL IMPORTS		239.123	319.828	324.578
	Earnings Per Share (Rs.)		14.39	13.98	20.14

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.58	2.39	2.78
Return on Total Assets (PBT/Total Assets}	(%)	2.90	3.09	4.20
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.11
Debt Equity Ratio (Total Debt/Networth)		0.89	0.57	0.41
Current Ratio (Current Asset/Current Liability)		2.91	2.52	2.09

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	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	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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks unsecured	0.000	250.000
Total	0.000	250.000

Note: The registered office of the company has been shifted from Office No. 3, 2^nd Floor, A Wing, Godrej Coliseum, Eastern Express Highway, Sion, Mumbai-400022, Maharashtra, India to present address w.e.f. 22.02.2008

BUSINESS:

The Company is in the business of the executing small, medium and large size Engineering, Procurement and Construction (EPC) Projects for Water and Waste Water Management facilities in Municipal, Infrastructural and Industrial Projects and provides integrated solutions in the water management services.

OPERATIONS:

The total revenue of the Company has decreased from Rs.2970.000 Millions to Rs.2050.000 Millions. The net profit after tax has increased to Rs.70.000 Millions as compared to previous year’s net profit of Rs.60.000 Millions. The EPS (Earning Per Share) has also increased from Rs.13.98 to Rs.14.39.

FUTURE OUTLOOK:

Indian Water Sector is entering into higher growth trajectory and is estimated to grow at a much higher rate than the global average in short to medium term. In order to capture optimum business in different sectors like Power, Oil and Gas, Metal and Mining; the Company has focused on offering total solution from “Source to Solution” and providing unique selling proposition which no competitor can offer. The Company is targeting to grab export business to have edge over competitor. The Company is focusing, especially in the territory of Indonesia, Srilanka, Bangladesh etc, due to vast business opportunities. As an initiative to this, the Company has signed an MOU with Halleys in Srilanka and with a representative in Bangladesh, for water business, having good presence and standing in the industry. The Company will continue to expand globally, beyond traditional geographies and will ensure that the Company stabilizes returns from other geographies.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U41000MH2007PTC173486
Name of the company	DOSHION VEOLIA WATER SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	347, Warehousing Complex, ACME Compound Road, Wadala (East), Mumbai-400037, Maharashtra, India Email: yogesh@doshion.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge Others
Particular of charge holder	Bank of Baroda, Corporate Financial Services Ahmedabad Branch, 1st Floor, Bank Of Baroda Towers, Near Law Garden, Ahmedabad – 38006, Gujarat, India Email: corahm@bankofbaroda.co
Nature of instrument creating charge	Composite Hypothecation Agreement Dated 26.06.2012
Date of instrument Creating the charge	26.06.2012
Amount secured by the charge	Rs. 50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: 16.50% P.A.( Base Rate+6.0% Additional. The Present Base Rate Being 10.50%) Terms of repayment 90 days from date of first disbursemsnt or release of increased working capital limit whichever is earlier. Margin 25% - On Stock Like Raw Materials , Wip, Finished Goods And Stores And Spares/ 30% - Receivables (Not Exceeding 180 Days Retention Money Upto 365 Days.) Extent and operation of the charge First Exclusive Charge On All Stocks, Bookdebts, Moveable Machinery/Vehicles/Crafts And More Specifically As Mentioned In The Second Schedule Of The Composite Hypothecation Agreement Dated 26.06.2012.
Short particulars of the property charged (Including location of the property)	All tangible movable machineries, plant and cranes, boats and crafts and vehicles, spares, tools and accessories, furniture, fixtures and fitting and office equipment whether installed or not all stocks of raw materials, work in progress ,semi finished goods and finished goods such as membranes, pressure tube, pump motors, valves, PVC PIPES, DVB, DMA, OLEUM, Ionexchangeresin, Dmplant, Ro Plant, Packing Material All present and future book debts, outstanding moneys, receivables, claims, bills, contracts, engagements and securities and all other articles lying on the premises and godowns, both present and future as mentioned in second schedule of the composite hypothecation agreement dated 26.06.2012.

CONTINGENT LIABILITIES:

Particulars	As on 31.03.2011 (Rs. in Millions)
Guarantee issued by Banks	1095.144
Claims against the company not acknowledged as debts
i) Disputed demand of Work Contract Tax	0.094
ii) Disputed demand of Excise Duty	26.071
iii) Disputed demand of Custom Duty	18.998
iv) Disputed demand of Income Tax for which an appeal has been preferred	20.955

FIXED ASSETS:

Ø Freehold Land

Ø Buildings

Ø Plant and Machinery

Ø Electrical Fittings

Ø Furniture, Fixture and Office Equipments

Ø 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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 53.96
UK Pound	1	Rs. 84.49
Euro	1	Rs. 72.23

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

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
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.