MIRA INFORM REPORT

Report Date :

23.02.2013

IDENTIFICATION DETAILS

Name :	MARUDHAR INDUSTRIES LIMITED
Registered Office :	611, G.I.D.C Phase IV, Vatva Industrial Estate, Vatva, Ahmedabad-382445, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.05.1983
Com. Reg. No.:	04-022203
Capital Investment / Paid-up Capital :	Rs.118.677 Millions
CIN No.: [Company Identification No.]	L91110GJ1983PLC022203
IEC No.:	0895003236
TAN No.: [Tax Deduction & Collection Account No.]	AHMM00060E
PAN No.: [Permanent Account No.]	AABCM4070C
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	The Company is engaged in manufacturing of Aluminium Foils, Strips, Sheets, Coils and Manufacturing Plastic Films, Laminated Printed, Pouch and Laminated Printed Films.
No. of Employees :	150 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 741000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

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	ICRA
Rating	A3 [Short Term]
Rating Explanation	Having moderate degree of safety regarding timely payment of financial obligation. It carry higher credit risk.
Date	May 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.

LOCATIONS

Registered Office / Factory 1 :	611, G.I.D.C Phase IV, Vatva Industrial Estate, Vatva, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-25890768
Mobile No.:	91-9824096961 (Mr. Prakash Jain) 91-9374696960 (Mr. Vinod Jain)
Fax No.:	91-79-25890768
E-Mail :	info@marudharind.com marudharind@hotmail.com
Website :	http://www.marudharind.com
Factory 2 :	711- Phase IV, Vatva, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-25890768/ 25895172
Fax No.:	91-79-25890768
E-Mail :	info@marudharind.com

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Prakashraj Sheshmalji Jain
Designation :	Director
Address :	33, Takhorbhai Tower, Opposite Khadi Mandir, Near Law Garden, Ahmedabad-380006, Gujarat, India
Date of Birth/Age :	07.07.1956
Qualification :	B.Com
Date of Appointment :	26.09.2000
Voter ID No.:	DDV7286693
Din No.:	00435076

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	L91110GJ1983PLC022203	MARUDHAR INDUSTRIES LIMITED	Director	26/09/2000	26/09/2000	Active	NO
2	U29259GJ1981PTC004434	C K ENGG INDUSTRIES PRIVATE LIMITED	Director	25/01/2006	25/01/2006	Active	NO
3	L27100GJ1990PLC014383	REAL STRIPS LIMITED	Managing director	01/04/2009	22/03/2007	Active	NO

Name :	Mr. Ugamraj Mishrimal Hundia
Designation :	Director
Address :	32-B, Sthankvasi Jain Society, Usmanpura, Ahmedabad-380013, Gujarat, India
Date of Birth/Age :	08.04.1955
Qualification :	B.Com
Date of Appointment :	28.05.1995
PAN No.:	ACLPJ9252A
Din No.:	00435229

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	L27100GJ1990PLC014383	REAL STRIPS LIMITED	Managing director	01/04/2009	19/09/1990	Active	NO
2	L91110GJ1983PLC022203	MARUDHAR INDUSTRIES LIMITED	Director	28/05/1995	28/05/1995	Active	NO
3	U29300GJ2005PTC045817	GARUDA HOUSEWARES (INDIA) PRIVATE LIMITED	Director	04/04/2005	04/04/2005	Active	NO

Name :	Mr. Naresh Santoshkumar Jain
Designation :	Director
Address :	10/11, Rajendra Vihar, 4, Shrimali Society, Navrangpura, Ahmedabad-380009, Gujarat, India
Date of Birth/Age :	24.07.1980
Qualification :	MBA
Date of Appointment :	01.08.2001
PAN No.:	ACNPJ0818Q
Din No.:	00714499
Name :	Mr. Bhavesh Santoshkumar Jain
Designation :	Whole Time Director
Address :	10/11, Rajendra Vihar, 4, Shrimali Society, Navrangpura, Ahmedabad-380009, Gujarat, India
Date of Birth/Age :	04.09.1984
Date of Appointment :	15.05.2010
PAN No.:	AFFPJ0933D
Din No.:	03091444

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	L91110GJ1983PLC022203	MARUDHAR INDUSTRIES LIMITED	Whole-time director	01/07/2010	15/05/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOTE: EQUITY SHAREHOLDER DETAILS FILE ATTACHED.

Names of Shareholders	No. of Preferences Shares
10% Non Cumulative Redeemable Preference Shares
Arun Bhandari	2500
Mamta Bhandari	2000
Padma Bhandari	1000
Laherchand Jain	1450
Prabh P. Lodha	1500
TOTAL (A)	8450
7% Non Cumulative Redeemable Preference Shares
Naresh Santoshkumar Jain	50000
Interlink Financial Services Limited, India	50000
Pet Plastic Limited, India	50000
TOTAL (B)	150000
11% Non Cumulative Redeemable Preference Shares
Naresh Santoshkumar Jain	2030
Bhavesh Santoshkumar Jain	2030
Pradeep Lodha	1000
Pramila Lodha	500
TOTAL (C)	5560
TOTAL (A+B+C)	164010

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.73
Directors or relatives of directors	74.00
Other top fifty shareholders	18.50
Others	6.77
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacturing of Aluminium Foils, Strips, Sheets, Coils and Manufacturing Plastic Films, Laminated Printed, Pouch and Laminated Printed Films.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Aluminium Foils	76071991
Aluminium Strips	76061190
Plain Plastic Film	39201012
Laminated Printed Pouch	39219096

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Aluminium Foils, Strips, Sheets, Laminated Foils, Strips Blister Foils and Ingots	M. Ton	5000	3853
Plastic and Printed Films	M. Ton	3500	2761

GENERAL INFORMATION

No. of Employees :

150 [Approximately]

Bankers :

• Oriental Bank of Commerce, Hotel Meghdoot Building, Station Road Branch, Ahmedabad-380002, Gujarat, India
• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	26.873	21.137
Deferred payment liabilities	0.609	1.213
Working capital loans from banks	200.209 [A]	178.920 [B]
TOTAL	227.691	201.270

NOTE:

(A) Working Capital Facilities Rs.152.297 Millions Letter of Credit Rs.47.911 Millions.

(B) Working Capital Facilities Rs.144.625 Millions Letter of Credit Rs.34.295 Millions.

Banking Relations :	--
Auditors :
Name :	Dhariwal and Associates Chartered Accountants
Address :	101, Shivalik-9, Gulbai Tekra, Ellis Bridge, Ahmedabad-380006, Gujarat, India
PAN No:	AACFM6805H

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10589000	Equity Shares	Rs.10/- each	Rs.105.890 Millions
441100	Preferences Shares	Rs.100/- each	Rs.44.110 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10227625	Equity Shares	Rs.10/- each	Rs.102.276 Millions
164010	Preferences Shares	Rs.100/- each	Rs.16.401 Millions
	Total		Rs.118.677 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		118.677	36.856	62.561
2] Share Application Money		0.000	0.000	5.000
3] Reserves & Surplus		66.665	125.813	87.557
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		185.342	162.669	155.118
LOAN FUNDS
1] Secured Loans		227.691	201.270	100.066
2] Unsecured Loans		78.650	69.850	51.000
TOTAL BORROWING		306.341	271.120	151.066
DEFERRED TAX LIABILITIES		32.777	28.117	26.803
TOTAL		524.460	461.906	332.987
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		249.777	227.487	191.569
Capital work-in-progress		0.441	3.747	3.110
INVESTMENT		8.688	0.974	1.320
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	235.458	156.553	94.957
	Sundry Debtors	115.656	161.134	106.649
	Cash & Bank Balances	11.308	11.959	11.208
	Other Current Assets	28.397	0.683	0.000
	Loans & Advances	54.377	43.973	19.830
Total Current Assets		445.196	374.302	232.644
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	107.909	100.441	87.955
	Other Current Liabilities	68.877	42.530	0.000
	Provisions	2.856	1.633	7.701
Total Current Liabilities		179.642	144.604	95.656
Net Current Assets		265.554	229.698	136.988
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		524.460	461.906	332.987

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1149.680	914.815	781.417
		Other Income	4.696	1.364	1.080
		TOTAL (A)	1154.376	916.179	782.497
Less	EXPENSES
		Cost of materials consumed	909.682	754.538
		Employee benefit expenses	29.182	22.619
		Other expenses	141.284	116.894	728.298
		Changes in inventories of finished goods, work in progress and stock in trade	(21.834)	(42.100)
		TOTAL (B)	1058.314	851.951	728.298
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.062	64.228	54.199
Less	FINANCIAL EXPENSES (D)		33.607	26.067	20.695
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		62.455	38.161	33.504
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.813	18.763	16.949
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		33.642	19.398	16.555
Less	TAX (H)		10.969	6.848	7.678
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		22.673	12.550	8.877
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		92.821	80.271	71.394
	BALANCE CARRIED TO THE B/S		115.494	92.821	80.271
	IMPORTS
		Capital Goods	NA	14.500	3.100
	TOTAL IMPORTS
	Earnings / (Loss) Per Share (Rs.)		2.22	1.23	4.34

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.96	1.37	1.13
Net Profit Margin (PBT/Sales)	(%)	2.93	2.12	2.12
Return on Total Assets (PBT/Total Assets}	(%)	4.84	3.22	3.90
Return on Investment (ROI) (PBT/Networth)		0.18	0.12	0.11
Debt Equity Ratio (Total Debt/Networth)		1.65	1.67	0.97
Current Ratio (Current Asset/Current Liability)		2.47	2.59	2.43

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	No
10]	Designation of contact person	No
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	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	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Deposits from directors	18.650	16.850
Intercorporate deposits	60.000	53.000
TOTAL	78.650	69.850

OPERATIONS:

The turnover and other receipts of the Company for the year have resulted to Rs. 1149.680 Millions as compared to Rs. 914.815 Millions for the previous year. The Profit / (Loss) before Depreciation, Financial Charges and Taxation has been Rs. 96.063 Millions as compared to Rs. 64.229 Millions during the previous year and Profit/ (Loss) after financial charges, depreciation and taxation but before including income and expenses from extraordinary and prior period items and rectification of errors was Rs. 21.976 Millions as compared to Rs. 12.625 Millions during the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10366756
Corporate identity number of the company	L91110GJ1983PLC022203
Name of the company	MARUDHAR INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	611, G.I.D.C Phase IV, Vatva Industrial Estate, Vatva, Ahmedabad-382445, Gujarat, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India Email: rbbform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Indenture of Mortgage.
Date of instrument Creating the charge	08.11.2012
Amount secured by the charge	Rs.241.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as may be stipulated by the Bank from time to time. Terms of Repayment Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Mortgagor Company created a registered mortgage in respect of its immovable properties as security for repayment of Rs.241.200 Millions, with all interest, additional interest, costs, expenses, charges, commissions and all other moneys payable to the Mortgagee Bank. Others [a] Upon repayment of mortgaged debt, the Mortgagee shall release the said mortgaged property; [b] If Mortgagor Company fails to repay the mortgaged debt to the Mortgagee on demand, the Mortgagor shall pay penal interest on realization of the mortgaged debt and the said mortgaged property shall not be redeemable by the mortgagor or any person in the equity of redemption thereof at any time thereafter.
Short particulars of the property charged	Immovable Property situated at Plot No. 610 adm. 5050 sq mtr in the scheme Vatva Industries Estate constructed on S No 372/P, and 373/P, of Mouje Ramol, Sub- District Ahmedabad-380 007 (Odhav) and District Ahmedabad. Immovable Property situated at Plot No. 611 adm. 5701 sq mtr in the scheme Vatva Industries Estate constructed on S No 372/P, and 373/P, of Mouje Ramol, Sub- District Ahmedabad-380 007 (Odhav) and District Ahmedabad. Immovable Property situated at Plot No. 711 adm. 2250 sq mtr in the scheme Vatva Industries Estate constructed on S No 400/P, and 405/P, of Mouje Ramol, Sub- District Ahmedabad-380 007 (Odhav) and District Ahmedabad. Hypothecation by way of First Charge on Stocks, Book Debts, Plant and Machinery, Vehicles and other Fixed Assets of the Company.
Particulars of the present modification	In addition to the existing securities of Stocks, Book Debts, Plant and Machinery, Vehicles and other Fixed Assets, the charge of Rs.241.200 Millions shall also now further secured against the equitable mortgage of immovable properties situated at District Ahmedabad.

FIXED ASSETS:

· Rights and Tools

· Leasehold Land

· Factory Building

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Computer

· Vehicles

WEBSITE DETAILS

PROFILE

Subject introduces their-self as manufacturer of Multi Layer Co-Extruded Blown Film and Flexible Packaging Material since last 15 years. They have great command on conversion of Aluminium Foil and Plastic Films like Polyester, Bopp, CPP, and Polyethylene into Flexible Packaging Solutions for the Food, Tea, Spices, Pharmaceuticals, Cosmetics, Granules, Chemicals, Seeds, Pesticides, F.M.C.G. Products and related industries.

The company’s objective is to satisfy customer’s requirement by providing reliable quality product and services each time and every time. The management (Mr. Naresh S. Jain and Prakash R. Lodha) of subject – Unit II are committed to provide superior quality in all phases of the operation and consider quality as a primary requirement of the business. They do believe that quality is in our process, not just only the outcome of the process.

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.54.43
UK Pound	1	Rs.83.20
Euro	1	Rs.71.91

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.