MIRA INFORM REPORT

Report Date :

20.02.2013

IDENTIFICATION DETAILS

Name :	SHYAM CHEMICALS PRIVATE LIMITED
Registered Office :	Jash Chambers, 5^th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.05.1971
Com. Reg. No.:	11-171672
Capital Investment / Paid-up Capital :	Rs.1.500 millions
CIN No.: [Company Identification No.]	U24110MH1971PTC171672
TAN No.: [Tax Deduction & Collection Account No.]	MUMS5909B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Chemicals and Industrial Chemicals.
No. of Employees :	35 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 400000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered 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

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

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. Madhusudan
Designation :	Accounts Manager
Contact No.:	91-22-40985000
Date :	18.02.2013

LOCATIONS

Registered Office :	Jash Chambers, 5^th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-40985000
Fax No.:	91-22-40985050/ 40985005
E-Mail :	shyamchemicals@vsnl.com accounts@shyamchemicals.com
Website :	http://www.shyamchemicals.com
Location :	Owned
Factory :	Bhar, Plot No.6004, GIDC, Ankleshwar – 393 002, Gujarat, India
Location :	Rented
Branch Office :	Industry House, Ashram Road, Ahmedabad – 380 009, Gujarat, India

DIRECTORS

As on 13.09.2012

Name :	Mr. Sharad Shreenarain Somani
Designation :	Director
Address :	6^th Floor, Shreeniketan, 86 A, A.N.S. Road, Mumbai, Maharashtra, India
Date of Birth/Age :	14.10.1951
Date of Appointment :	11.08.2003
DIN No.:	00137273
Name :	Mr. Sevantilal Jivanlal Parekh
Designation :	Director
Address :	72, Marine Drive, Mumbai, Maharashtra, India
Date of Birth/Age :	21.07.1932
Date of Appointment :	07.05.1971
DIN No.:	00010767
Name :	Mr. Mahesh Madanlal Somani
Designation :	Director
Address :	Oceana 214, Marine Drive, Mumbai - 400020, Maharashtra, India
Date of Birth/Age :	13.10.1949
Date of Appointment :	23.11.1971
DIN No.:	00137180
Name :	Mr. Rajesh Kumar Tapuriah
Designation :	Director
Address :	82, Sujata Malabar Hills, Mumbai, Maharashtra, India
Date of Birth/Age :	06.01.1965
Date of Appointment :	01.10.2005
DIN No.:	00203841

KEY EXECUTIVES

Name :	Mr. Madhusudan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.09.2012

Names of Shareholders	No. of Shares
Madanlal G. Tapuriah	485
Prafulchandra D. Contractor	55
Nandkumar Contractor	100
Mira P. Contractor	95
Indradevi Tapuriah	220
S.S. Tapuriah	475
Shantadevi Tapuriah	620
Sunil S. Parekh and Sujata Parekh	200
Sarla S. Parekh and S.J. Parekh	700
Sujata Parekh and S.J. Parekh	945
Sushilkumar Tapuriah	25
Sudeshankumar Tapuriah	25
Rekha Tapuriah	100
Kusum Tapuriah	25
Sashikanth Tapuriah	25
Madanlal Tapuriah and Indira Tapuriah	500
Renuka Bhansali and S.J. Parekh	200
Sunil S. Parekh and Sujata Parekh	100
S.J. Parekh and Sunil S. Parekh	10
Sunil S. Parekh and S.J. Parekh	90
Dushyant Somani and M.M. Somani	2191
Sonpriya Investments Private Limited, India	1090
Kanchanben Chokshi and Sujata Parekh	40
Vishal Somani and Ranjana Somani	565
Vishal Somani and Garima Somani	367
Sharad Somani and Poonam Somani	50
Poonam Somani and Sharad Somani	42
Ankit Somani and Poonam Somani	500
Vishal Somani and Ranjana Somani	750
Mahesh Somani and Manjushree Somani	500
Vaikunth Trading Company Private Limited, India	2495
Sujata Parekh Kumar jointly with Vikaram Himatlal Parekh jointly with Mukesh Mahendrakumar Maniar	100
Swvantilal J. Parekh jointly with Sarla Sevantilal Parekh jointly with Sujata Parekh Kumar	1315
Total	15000

As on 13.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.90
Directors or relatives of directors	76.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Chemicals and Industrial Chemicals.

Products :

Product Description	Item Code
Cuprous Chloride	28273904
Cupric Chloride Anhydrous	28273909
Copper Carbonate	28365000
Copper Oxychloride	38082050

Exports :

Products :

Finished Goods

Countries :

• China
• Germany
• US
• Bangkok

Imports :

Products :

Raw Materials

Countries :

Dubai

Terms :

Selling :

Credit (30, 60 and 90 days)

Purchasing :

L/C and Credit (30 Days)

GENERAL INFORMATION

Customers :

Others (Manufacturer)

• Arvind Pharmaceuticals
• Mazda Colours Limited

No. of Employees :

35 (Approximately) (In Office + In Factory)

Bankers :

• Bank of India, Mumbai Overseas Branch, 70-80, Mahatma Gandhi Road, Mezzaine Floor, Mumbai – 400 023, Maharashtra, India
• Bank of India, Mumbai Overseas Branch, Fort, Mumbai – 400 001, Maharashtra, India
• ICICI Bank Limited, Mumbai, Maharashtra, India
• Bank of India, Bhadra Branch, Ahmedabad – 380 001, Gujarat, India
• ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India
• The Federal Bank

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions
TERM LOAN - FROM BANK
BOI Demand Loan	0.000
BOI Term Loan	0.000
OTHER LOANS AND ADVANCES – BANK CAR LOAN
HDFC Bank Loan	0.997
Kotak Mahindra Prime Limited	0.000
OTHER LOANS AND ADVANCES – CASH CREDIT ACCOUNTS
BOI Akhleshwar	0.000
BOI CC A/c 015030110000016	0.000
BOI FBP A/c 015085110000039	0.000
BOI FBP A/c 015085110000045	0.000
BOI PCFC A/C 015082710000005(USD)	0.000
ICICI Bank A/c 623551002981	91.629
ICICI Bank PCFC A/c 623553000001	2.919
ICICI Bank FBP A/c 623566000039	13.106
ICICI Bank PCFC A/c 623553000002	17.443
Total	126.094

SECURED LOANS	31.03.2011 Rs. In Millions
1. From Bankers:
(a) Demand Loan	0.000
(b) Cash Credit Account	102.204
(c) Term Loan	3.000
2. Bank Car Loan	3.790
Total	108.994
Notes: All the facilities (existing and new) from Bank of India are secured by hypothecation of Stock, Book Debts, Plant and Machinery, Pledge of Bills/ Import Trust Receipts/ Margin TDR’s etc. and equitable mortgage of factory block situated at GIDC, Ankleshwar and Premises situated at Centre Point, Panchwati, Ahmedabad, further all the facilities are jointly and severally guaranteed by three directors of the company.

Banking Relations :	--
Auditors :
Name :	S.G. Kabra and Company Chartered Accountants
Address :	Wavell House, 1^st Floor, 1^st Dhobi Talao Lane, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-22010708/ 22004533
Income-tax PAN of auditor or auditor's firm :	AAVFS3160L
Associates/Subsidiaries :	Akin Chemicals Private Limited, Mumbai, Maharashtra, India Line of Business : Manufacturer and Exporter of Chemicals and Industrial Chemicals.

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.100/- each	Rs.1.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		99.284	80.201	65.712
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		100.784	81.701	67.212
LOAN FUNDS
1] Secured Loans		126.094	108.994	78.961
2] Unsecured Loans		18.875	8.225	8.333
TOTAL BORROWING		144.969	117.219	87.294
DEFERRED TAX LIABILITIES		0.847	1.031	1.005
TOTAL		246.600	199.951	155.511
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.607	45.877	42.646
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.073	0.119	0.099
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.592	31.261	29.456
	Sundry Debtors	123.101	117.983	75.700
	Cash & Bank Balances	22.320	1.001	0.173
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	60.064	37.577	39.622
Total Current Assets		261.077	187.822	144.951
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.521	5.013	4.849
	Other Current Liabilities	15.420	14.230	11.550
	Provisions	26.216	14.624	15.786
Total Current Liabilities		56.157	33.867	32.185
Net Current Assets		204.920	153.955	112.766
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		246.600	199.951	155.511

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	NA	532.586
		Other Income			0.411
		TOTAL (A)	NA	NA	532.997
Less	EXPENSES
		Raw Materials Consumed	NA	NA	465.613
		Manufacturing Expenses			13.068
		Payment and Provisions for Employees			8.906
		Administration and Other Expenses			8.851
		Selling and Distribution Expenses			14.833
		Excise Duty on Finished Goods			0.000
		Increase/ Decrease in Stock			(4.552)
		TOTAL (B)	NA	NA	506.719
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	26.278
Less	FINANCIAL EXPENSES (D)		NA	NA	10.970
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.266	27.837	15.308
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.972	5.141	5.340
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		29.294	22.696	9.968
Less	TAX (H)		9.959	7.743	0.438
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		19.335	14.953	9.530
Less/ Add	DEFERRED TAX (LIABILITY) / ASSET		0.184	0.026	(0.022)
Less	INCOME TAX OF EARLIER YEAR		0.000	0.000	0.010
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		49.645	36.655	28.552
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	1.500	1.000
		Proposed Dividend	0.375	0.375	0.375
		Tax on Dividend	0.061	0.062	0.064
	BALANCE CARRIED TO THE B/S		66.728	49.645	36.655
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	457.571	493.938	361.486
	TOTAL EARNINGS		457.571	493.938	361.486
	C.I.F. VALUE OF IMPORTS		552.121	531.185	291.429
	Earnings/ (Loss) Per Share (Rs.)		1289.00	996.87	635.33

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.79
Net Profit Margin (PBT/Sales)	(%)	NA	NA	1.87
Return on Total Assets (PBT/Total Assets}	(%)	9.68	9.71	5.31
Return on Investment (ROI) (PBT/Networth)		0.29	0.28	0.15
Debt Equity Ratio (Total Debt/Networth)		1.44	1.44	1.30
Current Ratio (Current Asset/Current Liability)		4.65	5.55	4.50

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	14.521	5.013	4.849
Total	14.521	5.013	4.849

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 one 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	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

DETAILS UNSECURED LOANS

Particulars	31.03.2012 Rs. In Millions
DEPOSITS
Intercorporate Deposits	2.227
LOANS AND ADVANCES
From Companies in which Directors are interested	3.877
From Directors	3.575
From Shareholders	9.196
Total	18.875

Particulars	31.03.2011 Rs. In Millions
(I) From Directors/ a Firm in which Directors are interested	2.765
(II) From Directors	1.165
(III) From Shareholders	2.583
(IV) Intercorporate Deposits	1.712
Total	8.225

NOTE:

Registered office of the company has been shifted from “Industry House, Ashram Road, Ahmedabad, Gujarat, India” to the present address w.e.f. 07.05.2007.

OPERATING PERFORMANCE:

The company’s performance during the year has been better as compared to previous year because of the global economic recovery during the year and subsequent increase in the exports as well as domestic business.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24110MH1971PTC171672
Name of the company	SHYAM CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Jash Chambers, 5th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India E-Mail: shyamchemicals@vsnl.com
This form is for	Modification of charge
Charge identification number of the modified	10316329
Type of charge	Immovable property Book debts Others (Charge on stock and plant and machinery)
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India E-Mail: abhijit.singnapurkar@icicibank.com
Nature of description of the instrument creating or modifying the charge	DOH for working capital facility for enhancement in limit from Rs.175.000 Millions to Rs.195.000 Millions DOH for fresh Rupee Term Loan of Rs.24.000 Millions MOE for extension of equitable mortgage on properties from Rs.205.000 Millions to Rs.249.000 Millions
Date of instrument Creating the charge	01.08.2012
Amount secured by the charge	Rs.249.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: I Base + 3.25% for term loan and I Base + 3.5% for Cash Credit Terms of Repayment: On demand for working capital facility, For term loan - repayment in 60 equal monthly installments of Rs. 0.400 Million payable commencing after one months from date of drawdown Margin: Term Loan - 46.93% of the project cost Cash Credit - 25% against all components of inventory and book debts - 25% for cover period of 90 days EPC: Uniform margin of 10% against all components of inventory Extent and Operation of the charge: Exclusive charge in favour of the Bank by way of hypothecation of the firm entire stocks and receivables, both present and future, in a form and manner satisfactory to the Bank. Exclusive charge on the plant and machinery of the company both existing and future. Exclusive Charge by the way of Equitable mortgage of properties situated at a. Flat No. 4/3, C 3rd Floor, Centre Point, Ahmadabad b. Plot No. 6004, GIDC, Ankleshwar, Bharuch c. Office premises at Jash Chambers, Sir P. M road, Mumbai
Short particulars of the property or asset(s) charged (including complete address and location of the property)	a. Flat No. 4/3, C 3rd Floor, Centre Point, Ahmadabad b. Plot No. 6004, GIDC, Ankleshwar, Bharuch c. Office premises at Jash Chambers, 5th Floor, Sir P. M. Road, Fort, Mumbai-400001
Date of instrument modifying the charge	13.02.2012
Particulars of the present modification	Enhancement in working capital facility from Rs.175.000 Millions to Rs.195.000 Millions for charge on stock and book debts and plant and machinery Fresh rupee term loan of Rs.24.000 Millions Charge on properties taken as collateral to be increased from existing charge of Rs.205.000 Millions to Rs.249.000 Millions as these properties will be jointly secured for working capital, derivatives and derivatives

TRADE REFERENCES:

· Arvind Pharmaceuticals

· Mazda Colours Limited

FIXED ASSETS:

· Land (Leasehold)

· Building Factory

· Building Office - Ahmedabad

· Building Office -Mumbai

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Technical Know-how

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.84.09
Euro	1	Rs.72.44

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
TOTAL		43

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.