MIRA INFORM REPORT

Report Date :

26.02.2013

IDENTIFICATION DETAILS

Name :	APOTEX RESEARCH PRIVATE LIMITED
Registered Office :	Site No.1, Bommasandra Industrial Area, 4^th Phase, Jigani Link Road, Jigani Hobli, Bangalore – 560 099, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.06.2003
Com. Reg. No.:	08-032103
Capital Investment / Paid-up Capital :	Rs.2918.647 Millions
CIN No.: [Company Identification No.]	U73100KA2003PTC032103
TAN No.: [Tax Deduction & Collection Account No.]	BLRA04663B
PAN No.: [Permanent Account No.]	AAECA2791B
Legal Form :	Private Limited Liability Company
Line of Business :	The company engaged in Manufacturing of Formulated Pharmaceutical Products and also engaged in Research and Development Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 14000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Apotex Pharmaceuticals Holdings Inc.”. It is an established company having a satisfactory track record. The company has performed well during the current years. Financially company is doing well. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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.

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

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 :	Site No.1, Bommasandra Industrial Area, 4^th Phase, Jigani Link Road, Jigani Hobli, Bangalore – 560 099, Karnataka, India
Tel. No.:	91-80-22891095/ 26557190/ 26557196/ 22891000
Fax No.:	91-80-26453666/ 22891099
E-Mail :	vagarwal@apotex.co.in
Website :	www.apotex.co.in
Area :	3000 sq ft (Approximately)
Location :	Owned

DIRECTORS

As on 25.09.2012

Name :	Mr. Parizad Adil Elchindana
Designation :	Managing Director
Address :	# 798, Tehmi Villa, Ground Floor, Jame Jamshed Road, Dadar, Mumbai – 400 014, Maharashtra, India
Date of Birth/Age :	06.11.1961
Qualification :	Ph.D (Pharma Science)
Date of Appointment :	10.06.2004
DIN No.:	00394075
Name :	Mr. Jeremy Bharat Desai
Designation :	Director
Address :	# 33, Arjaya Crescent, Toronto, Canada
Date of Birth/Age :	23.02.1960
Date of Appointment :	24.06.2004
DIN No.:	00361213

Name :	Mr. James Francis Berhalter
Designation :	Director
Address :	# 2163, Mystic CT, Burlington Ontario, Canada L7M3Y7
Date of Birth/Age :	05.12.1958
Date of Appointment :	24.06.2004
DIN No.:	00198596

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	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Nominee director	30/12/2002	30/12/2002	-	Active	NO
2	U73100KA2003PTC032103	APOTEX RESEARCH PRIVATE LIMITED	Director	24/06/2004	24/06/2004	-	Active	NO
3	U24231KA2003PTC032104	APOTEX PHARMACHEM INDIA PRIVATE LIMITED	Director	24/06/2004	24/06/2004	-	Active	NO

Name :	Mr. Robert Craig Baxter
Designation :	Director
Address :	# 108, West Wood Lane, Richmond Hill, Ontario, Canada L 4C 6Y 3
Date of Birth/Age :	27.12.1955
Date of Appointment :	24.06.2004
DIN No.:	00202338

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	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Nominee director	30/12/2002	30/12/2002	15/09/2010	Active	NO
2	U73100KA2003PTC032103	APOTEX RESEARCH PRIVATE LIMITED	Director	24/06/2004	24/06/2004	-	Active	NO
3	U24231KA2003PTC032104	APOTEX PHARMACHEM INDIA PRIVATE LIMITED	Director	24/06/2004	24/06/2004	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vishwash Agarwal
Designation :	Company Secretary and Finance Controller
Address :	Alpine Eco A606, 13, Doddnakudi, Bangalore – 560 037, Karnataka, India
Date of Birth/Age :	14.11.1971
Date of Appointment :	17.06.2005
PAN No.:	AGRPA0068M
Name :	Dr. Sanjay Kapadia
Designation :	Head of Quality and Regulatory Compliance
Name :	Mr. Ravi N Kumar
Designation :	Head - Product Development
Name :	Dr. Naveen Kaler
Designation :	Head - Bioequivalence
Name :	Mr. Janardhan S Prabhudesai
Designation :	Head - Operation

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2012

Names of Shareholders	No. of Shares
Apotex Pharmaceutical Holdings Inc., Canada	29186473
Apotex Pharmachem Inc., Canada	1
Total	29186474

As on 25.09.2012

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]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company engaged in Manufacturing of Formulated Pharmaceutical Products and also engaged in Research and Development Services.

Products :

Item Code No. (ITC Code)	3004 90 71
Product Description	Enalapril, Lisinopril, Perindopril etc.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity (Units)	Actual Production (Units)*
Tablets/ Capsules	400 Million	304267452

Notes:

* Production does not include tablets used for stability purpose.

1. Installed capacity is as certified by the management and relied upon by the auditors, being a technical matter.

2. The Company's product is exempted from licensing requirements under Industrial (Development and Regulation) Act, 1951 and consequently, disclosure of licensed capacity does not arise.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
TERM LOAN
- From Banks Nature of security Secured by Hypothecation of vehicles Terms of repayment of long-term loans and other long-term loans Monthly payment of equated monthly installments begining from the month subsequent to taking the loan	0.000	3.660
- From Others Nature of security Secured by Hypothecation of vehicles Terms of repayment of long-term loans and other long-term loans Monthly payment of equated monthly installments begining from the month subsequent to taking the loan	6.800	0.000
OTHER EXTERNAL COMMERCIAL BORROWINGS Nature of security Secured by first charge on the movable (except vehicles hypothecated with banks) and immovable fixed assets of the company as per the Reserve Bank of India approval Terms of repayment of long-term loans and other long-term loans External commercial borrowings are taken for a period of 8 years. These loans are repayable in three yearly installments on completion of 5 years from the initial drawdown date.	465.266	539.106
Total	472.066	542.766

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage-II, 100/2, Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
PAN No.:	AACFD3771D
Holding Company :	Apotex Pharmaceutical Holdings Inc. Address: # 150, SI GNET Drive, Westron Ontario, Ontario, Canada
Fellow Subsidiaries :	· Apotex Pharmachem India Private Limited Address: Site No.1, Bommasandra Industrial Area, 4^th Phase, Jigani Link Road, Jigani Hobli, Bangalore – 560 099, Karnataka, India Line of Business: The company is involved in providing research and development services in the field of generic science and manufacturing of Formulations. CIN No.: U24231KA2003PTC032104 · Apotex Inc. · Apotex Pharmachem Inc. · Apotex Corporation · Apotex Pty Limited · Apotex Netherlands BV · Apotex UK Limited · Apotex Czech Republic · Apotex N.V. · Doc Generici S.r.l. · Apotex N.Z. Limited · Apotex Espana S.L. · Signa S.A. De C.V.( w.e.f 30th September 2011) · Apotex Europe BV

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
46000000	Equity Shares	Rs.100/- each	Rs.4600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29186474	Equity Shares	Rs.100/- each	Rs.2918.647 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		2918.647	842.245	842.245
2] Share Application Money		0.000	630.512	0.000
3] Reserves & Surplus		705.789	491.623	274.996
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3624.436	1964.380	1117.241
LOAN FUNDS
1] Secured Loans		472.066	542.766	936.352
2] Unsecured Loans		314.983	0.000	0.000
TOTAL BORROWING		787.049	542.766	936.352
DEFERRED TAX LIABILITIES		101.469	104.365	72.894
TOTAL		4512.954	2611.511	2126.487
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1465.520	1489.243	1342.327
Capital work-in-progress		1718.699	63.143	18.868
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1065.699	883.549	451.008
	Sundry Debtors	454.020	271.377	427.170
	Cash & Bank Balances	65.823	60.317	120.972
	Other Non-Current Assets	122.961	20.300
	Other Current Assets	2.481	0.957	0.000
	Loans & Advances	1196.268	574.857	194.381
Total Current Assets		2907.252	1811.357	1193.531
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	601.372	364.206	397.329
	Other Current Liabilities	952.106	370.134	16.768
	Provisions	25.039	17.892	14.158
Total Current Liabilities		1578.517	752.232	428.255
Net Current Assets		1328.735	1059.125	765.276
MISCELLANEOUS EXPENSES		0.000	0.000	0.016
TOTAL		4512.954	2611.511	2126.487

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sale of Products	2813.337	1937.107	1295.083
		Pre-production receipts			577.592
		Other Income			5.640
		TOTAL (A)	2813.337	1937.107	1878.315
Less	EXPENSES
		Material Consumed	2349.663	1536.061	1016.626
		Decrease/ (Increase) in stock			(33.577)
		Operating and Other Expenses			498.178
		Exchange Loss			100.502
		Amortisation of miscellaneous expenditure			0.005
		TOTAL (B)	2349.663	1536.061	1581.734
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		463.675	401.047	296.581
Less	FINANCIAL EXPENSES (D)		29.202	25.742	24.243
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		434.473	375.305	272.338
Less/ Add	DEPRECIATION/ AMORTISATION (F)		113.203	98.207	85.212
	PROFIT BEFORE TAX (E-F) (G)		321.270	277.098	187.126
Less	TAX (H)		107.104	60.471	809
	PROFIT AFTER TAX (G-H) (I)		214.166	216.627	180.317
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		491.623	274.996	94.679
	BALANCE CARRIED TO THE B/S		705.789	491.623	274.996
	EARNINGS IN FOREIGN CURRENCY
		Export sales	2806.171	1920.049	1295.083
		Pre-production activities/ services			577.592
	TOTAL EARNINGS		2806.171	1920.049	1872.675
	IMPORTS
		Capital Goods	NA	NA	88.822
		Materials	NA	NA	107.196
	TOTAL IMPORTS		NA	NA	196.018
	Earnings Per Share (Rs.)		7.34	NA	24.86

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.61	11.18	9.60
Net Profit Margin (PBT/Sales)	(%)	NA	NA	14.45
Return on Total Assets (PBT/Total Assets}	(%)	7.35	8.40	7.38
Return on Investment (ROI) (PBT/Networth)		0.09	0.14	0.17
Debt Equity Ratio (Total Debt/Networth)		0.22	0.28	0.84
Current Ratio (Current Asset/Current Liability)		1.84	2.41	2.79

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	No
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	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	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 OF UNSECURED LOANS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
OTHER EXTERNAL COMMERCIAL BORROWINGS	314.983	0.000
Total	314.983	0.000

BACKGROUND:

The Company was incorporated under the provisions of Companies Act 1956 as a Private Limited Company on June 16, 2003. The Company is involved in providing Research and Development services in the field of generic science and manufacturing of formulations.

OPERATIONS:

In the year the Company recorded a turnover of Rs. 2813.337 Millions as against Rs.1937.107 Millions in the previous year. Net profit, after tax, during the year was Rs. 214.166 Millions.

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U73100KA2003PTC032103
Name of the company	APOTEX RESEARCH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Site No.1, Bommasandra Industrial Area, 4^th Phase, Jigani Link Road, Jigani Hobli, Bangalore – 560 099, Karnataka, India E-Mail Id : vagrawal@apotex.co.in
Type of charge	Book debts Movable property (not being pledge) Others (Current Assets, Plant and Machinery)
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited, No 7, Mahatma Gandhi Road, Bangalore – 560001, Karnataka, India E-Mail Id : janardhanbhat@hsbc.co.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation for Stocks and Receivables and Plant and Machinery for Rs 1200.000 Millions dated 17th October 2012
Date of instrument Creating the charge	17.10.2012
Amount secured by the charge	Rs.1200.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest shall be payable by the company on the banking facilities as per Bank's Tariff subject however that the Bank shall have the right to change the rate of Interest after giving notice to Company Terms of Repayment: In consideration of banking facilities sanctioned/to be sanctioned by the bank to the company, the company has hypothecated and charged to the bank by way of first and exclusive charge on present and future stocks and receivables(S and R) and pari passu first charge on movable fixed assets (PLM) for stocks and receivables and plant and machinery dated 17.10.2012, to secure the repayments of the advances together with interest, costs and all other charges Margin The company shall maintain such margin as may be specified by the bank from time to time Extent and Operation of the charge: Incase the company fails to fullfill obligation under the agreement, the bank shall be entitled to take possession of the hypothecated properties and sell them by public auction or private contract and utilise the proceeds in full or part settlement of its claims
Short particulars of the property charged	1st Paripassu charge on PLM and exclusive charge on Sand R of the company, both present and future as per deed of Hypothecation for Stocks and Receivables and Plant and Machinery dated 17.10.2012

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Income tax (relating to computation of arm’s length price)	50.157	12.973
Service tax (relating to refund claim of various years and applicability)	24.433	5.244
Land related charges	52.690	0.000
Notes: a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance) Rs.584.522 Millions (previous year Rs.618.928 Millions) b) Estimated amount of contracts remaining to be executed on revenue account and not provided for Rs.1100.412 Millions (previous year Rs.168.402 Millions).

FIXED ASSETS:

· Leasehold Land

· Buildings

· Computer

· Office Equipment

· Plant and Machinery

· Furniture and Fixtures

· 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 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.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.