MIRA INFORM REPORT

Report Date :

05.01.2013

IDENTIFICATION DETAILS

Name :	ENCUBE ETHICALS PRIVATE LIMITED
Registered Office :	Unit No. 24, Steelmada Industrial Estate, Marol Village, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.09.1995
Com. Reg. No.:	11-092485
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U24230MH1995PTC092485
TAN No.: [Tax Deduction & Collection Account No.]	MUME02391E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Dermatological, Pharmaceutical and Therapeutic Preparations, Patent Medicines, Drugs, etc.
No. of Employees :	400 (Approximately)

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 1600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The latest financials are not made available with the government department. As per previous year’s, the company performance seem to be high. Financial company appears to be strong. Liquidity position is good. Trade relations are reported as 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 conditions.

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 :	Unit No. 24, Steelmada Industrial Estate, Marol Village, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-66783848 (3 Lines) / 28503838/ 28504335 / 28508612 / 29204335 / 29204336 / 29203838 / 29204336
Fax No.:	91-22-28504336 / 29204336
E-Mail :	encube@bom3.vsnl.net.in encube.mumbai@encubeethicals.com mehul.shah@encubeethicals.com kirit.v@encubeethicals.com chirag.gandhi@encubeethicals.com
Website :	http://www.encubeethicals.com
Location :	Owned
Factory :	Plot No. C-1, Madkaim Industrial Estate, Madkaim, Post : Mardol, Ponda, Goa – 403 404, India
Tel. No.:	91-832-2392223 / 2392314
Fax No.:	91-832-2392225
E-Mail :	encube@sancharnet.in prashant.j@encubeethicals.com encube.goa@encubeethicals.com

DIRECTORS

As on: 21.09.2012

Name :

Mr. Mehul Madhusudan Shah

Designation :

Director

Address :

52/B/402, Ruby Apartment, 4^th Floor, JVPD Scheme No.7, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

21.07.1966

Date of Appointment :

07.09.1995

DIN No.:

00312359 

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	U24230MH1995PTC092485	ENCUBE ETHICALS PRIVATE LIMITED	Director	07/09/1995	07/09/1995	-	Active	NO
2	U24239MH1981PTC024506	RELIEF PHARMACEUTICALS PRIVATE LIMITED	Director	31/10/1998	31/10/1998	-	Active	NO
3	U67120MH2000PTC124315	ENCUBE INVESTMENT AND TRADING PRIVATE LIMITED	Director	25/11/2005	25/11/2005	-	Active	NO

Name :

Mr. Madhusudan Nyalchandh Shah

Designation :

Director

Address :

52/B/402, Ruby Apartment, 4^th Floor, JVPD Scheme No.7, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

30.11.1934

Date of Appointment :

07.09.1995

DIN No.:

00314267

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	U24239MH1981PTC024506	RELIEF PHARMACEUTICALS PRIVATE LIMITED	Director	30/05/1981	30/05/1981	-	Active	NO
2	U24230MH1995PTC092485	ENCUBE ETHICALS PRIVATE LIMITED	Director	07/09/1995	07/09/1995	-	Active	NO
3	U67120MH2000PTC124315	ENCUBE INVESTMENT AND TRADING PRIVATE LIMITED	Director	25/11/2005	25/11/2005	-	Active	NO

Name :

Mr. Nilesh Navin Maniar

Designation :

Director

Address :

1 Ashish 51 C, S V Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

06.07.1960

Date of Appointment :

30.01.2002

DIN No.:

00330165

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	U65990MH1990PTC058485	KENIL FINANCIAL AND CONSULTANCY SERVICES PRIVATE LIMITED	Director	10/10/1990	10/10/1990	01/01/2009	Active	NO
2	U24230MH1995PTC092485	ENCUBE ETHICALS PRIVATE LIMITED	Director	30/01/2002	30/01/2002	-	Active	NO
3	U67120MH2000PTC124315	ENCUBE INVESTMENT AND TRADING PRIVATE LIMITED	Director	15/09/2004	15/09/2004	-	Active	NO
4	U67190MH2007PTC171861	ANVIL WEALTH MANAGEMENT PRIVATE LIMITED	Director	21/06/2007	21/06/2007	-	Active	NO
5	U67120MH1997PTC109640	ANVIL SHARE AND STOCK BROKING PRIVATE LIMITED	Director	18/09/2008	11/02/2008	-	Active	NO
6	U45209MH2011PTC224359	UNIQUE SKYLINES PRIVATE LIMITED	Director	24/11/2011	24/11/2011	-	Active	NO
7	U74120MH2012PTC239115	ANVIL COMMODITIES PRIVATE LIMITED	Director	26/12/2012	26/12/2012	-	Active	NO

Name :

Mr. Himanshu Mahendra Gandhi

Designation :

Director

Address :

B-302 Gokul Gagan, Thakur Village, Kandivali (East), Mumbai – 400 101, Maharashtra, India

Date of Birth/Age :

23.01.1970

Date of Appointment :

30.01.2002

DIN No.:

00784178

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	U67120MH1997PTC109640	ANVIL SHARE AND STOCK BROKING PRIVATE LIMITED	Director	01/09/1997	01/09/1997	-	Active	NO
2	U24230MH1995PTC092485	ENCUBE ETHICALS PRIVATE LIMITED	Director	30/01/2002	30/01/2002	-	Active	NO
3	U67120MH2000PTC124315	ENCUBE INVESTMENT AND TRADING PRIVATE LIMITED	Director	15/09/2004	15/09/2004	-	Active	NO
4	U74120MH2012PTC239115	ANVIL COMMODITIES PRIVATE LIMITED	Director	26/12/2012	26/12/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 21.09.2012

Names of Shareholders	No. of Shares
Madhusudan Nyalchandh Shah	600000
Mehul Madhusudan Shah	600000
Madhusudan Nyalchandh Shah HUF	10
Mehul Madhusudan Shah HUF	10
Nilesh Navin Maniar	20
Himanshu Mahendra Gandhi	20
Chandra M Shah	225000
Niti M Shah	74890
Chandramani Maniar	20
Pinki H Gandhi	20
Rupa N Maniar	20
Bipin G Gandhi	20
Total	1500030

Equity Share Break up (Percentage of Total Equity)

As on: 21.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Dermatological, Pharmaceutical and Therapeutic Preparations, Patent Medicines, Drugs, etc.
Products :	· Cracked Heel Cream · Dermocalm Lotion · Eulactol Heel Balm

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity (Single Shift)	Actual Production
Non Sterile Ointments	Tones	3960	3049.81

GENERAL INFORMATION

Customers :

· Corporate

· Galderma

· Sanofi

· Pigeon

· Dr. Reddy’s

· L’oreal India

· Spirig

· Remedia

· Mega

· Johnson and Johnson

· Amra

· Jenburkt

· Ranbaxy

· GSK GlaxoSmithKline

· Micro Labs

· Smith and Nephew

· Dr Scholl

· Bayer

· Crawford Healthcare

· Life Star

· Curatio

No. of Employees :

400 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400 013, Maharashtra, India

· Janakalyan Saharaki Bank Limited, 140, Vivek Darshan, Sindhi Society, Opposite Bhakti Bhavan, Chembur, Mumbai – 400 071, Maharashtra, India

· Small Industrial Development Bank of India, New Horizone, 1^st Floor, St. Mary’s Colony, Dayanand Bandodkar Marg, Miramar, Panji – 403001, Goa, India

· ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

· ICICI Bank Limited, 1^st Floor, Sagar Avenue, Opposite Shopper Stop, Andheri (West), Mumbai – 400053, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
Term Loan
Term Loan from SIDBI (Secured against hypothecation of Land)	0.000	1.480
Overdraft
From Janakalyan Saharaki Bank Limited (Secured against Fixed Deposit)	(0.013)	0.902
From ICICI Bank Limited (Secured against Fixed Deposit)	0.000	(0.077)
BNP Paribas Limited (Secured against property)	121.683	(0.041)
Cash Credit
HDFC Bank (Secured against book debts and Stock)	8.494	10.252
Total	130.164	12.516

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
Loans from Shareholders	109.774	270.067
Loans from others	0.100	0.100
Total	109.874	270.167

Banking Relations :	--
Auditors :
Name :	Shaparia and Mehta Chartered Accountants
Address :	1/74, Krishna Kunj, R. A. Kidwai Road, King’s Circle, Matunga (Central Railway), Mumbai – 400 019, Maharashtra, India
Tel. No.:	91-22-24098905/ 06 / 07 / 08
Fax No.:	91-22-24098905/ 06 / 07 / 08
E-Mail :	sm.ca@vsnl.com
PAN No.:	AABFS3225N
Other Related Parties :	· Relief Pharmaceuticals Private Limited · Ciens Laboratories · Encube Investments and Trading Private Limited · Pharma Laboratories and Distributors

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500030	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Note

(Of the above 1000000 Equity Shares of Rs.10/- each were allotted as fully paid bonus share by capitalization of General Reserve)

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		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		407.878	252.086	186.996
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		422.878	267.086	201.996
LOAN FUNDS
1] Secured Loans		130.164	12.516	32.030
2] Unsecured Loans		109.874	270.167	210.887
TOTAL BORROWING		240.038	282.683	242.917
DEFERRED TAX LIABILITIES		54.983	42.742	36.169
TOTAL		717.899	592.511	481.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		528.578	416.288	403.455
Capital work-in-progress		79.864	28.669	0.196
INVESTMENT		1.231	1.231	1.231
DEFERREX TAX ASSETS		0.259	0.344	0.569
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	76.973	44.830	20.035
	Sundry Debtors	72.642	76.190	30.954
	Cash & Bank Balances	7.808	8.755	12.408
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	241.881	173.521	126.936
Total Current Assets		399.304	303.296	190.333
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	123.225	73.052	55.608
	Other Current Liabilities	25.187	2.243	2.748
	Provisions	142.925	82.022	56.346
Total Current Liabilities		291.337	157.317	114.702
Net Current Assets		107.967	145.979	75.631
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		717.899	592.511	481.082

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	732.196	440.900	NA
		Other Income
		TOTAL	732.196	440.900	NA
Less	EXPENSES
		Office Expenses	499.818	320.611	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	499.818	320.611	NA
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		(Including Depreciation)	120.289	39.601
Less/ Add	DEPRECIATION/ AMORTISATION			21.473	19.678
	PROFIT/LOSS BEFORE TAX		232.378	98.816	19.923
Less	TAX		74.277	31.103	10.100
	PROFIT/LOSS AFTER TAX		158.101	67.713	9.823
Add	GRATUITY ADJUSTMENT OF EARLIER YEARS		0.306	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		213.139	151.435	143.367
Less	APPROPRIATIONS
		Final equity Dividend (Proposed)	2.250	2.250	1.500
		Dividend Distribution Tax	0.368	0.374	0.255
		Transfer to General Reserve	7.920	3.385	0.000
	BALANCE CARRIED TO THE B/S		361.008	213.139	151.435
	EARNINGS IN FOREIGN CURRENCY
		Stability Testing and Development Charges	53.721	23.049	3.779
		Exports	221.555	65.610	0.000
	TOTAL EARNINGS		275.276	88.659	3.779
	IMPORTS
		Raw Materials	76.549	57.289	23.428
		Capital Goods	92.686	36.294	6.697
	TOTAL IMPORTS		169.235	93.583	30.125
	Earnings Per Share (Rs.)		105.40	45.14	6.55

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	21.59	15.36	NA
Return on Total Assets (PBT/Total Assets}	(%)	25.04	13.73	3.36
Return on Investment (ROI) (PBT/Networth)		0.55	0.37	0.10
Debt Equity Ratio (Total Liability/Networth)		1.26	1.65	1.77
Current Ratio (Current Asset/Current Liability)		1.37	1.93	1.66

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

BACKGROUND

Subject is a Company registered under the Companies Act, 1956. It was incorporated on 7^th September, 1995. The Company is engaged in the business of Manufacturing of dermatological, pharmaceutical and therapeutic preparations, patent medicines, drugs, etc.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24230MH1995PTC092485
Name of the company	ENCUBE ETHICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 24, Steelmada Industrial Estate, Marol Village, Andheri (East), Mumbai – 400 059, Maharashtra, India E-mail: kirit.v@encubeethicals.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10171735
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400 013, Maharashtra, India E-mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	14.12.2012
Amount secured by the charge	Rs.110.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment On demand. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts to secure as a continuing security as mentioned in Column No.15 below for the repayment of Rs.110.000 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank. Others NIL
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock-in-trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties, now All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights which are now
Date of instrument modifying the charge	01.11.2012
Particulars of the present modification	The Charge shall now stand increased from Rs.80.000 Millions to Rs.110.000 Millions against the security of Stocks, Book Debts of the Company.

FIXED ASSETS

· Leasehold Land at Goa

· Staff Quarters at Goa

· Brands

· Ceptidar

· Trade Mark

· Factory Building

· Office Building

· Plant and Machinery

· Electrical Installations and Fittings

· Spares and Tools

· Ventilation and A.C. Systems

· Office Equipments

· Computer and Software

· Other Factory Equipments

· Furniture and Fixtures

· Vehicles

· R and D Center

· R and D Equipment

· R and D Electrical Installation

· R and D Center Computers

· R and D Ventilation and AC System

· R and D Furniture and Fixtures

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 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.54.85
UK Pound	1	Rs.88.16
Euro	1	Rs.71.54

INFORMATION DETAILS

Report Prepared by :

VRN

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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.