MIRA INFORM REPORT

Report Date :

24.01.2013

IDENTIFICATION DETAILS

Name :	SIKKO INDUSTRIES LIMITED (w.e.f. 16.03.2010)
Formerly Known As :	SIKKO SPRAYERS PRIVATE LIMITED
Registered Office :	508, Iscon Elegance, Near Jain Temple, Prahladnagar Cross Road, Ahmedabad – 380051, Gujarat, India
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.02.2000
Com. Reg. No.:	04-037329
Capital Investment / Paid-up Capital :	Rs.20.000 millions
CIN No.: [Company Identification No.]	U51909GJ2000PLC037329
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals and Fertilizers.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 150000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has recorded a healthy growth in its sales and profits during 2012. Fianacial appears to be improving. Trade relations are reported as decent. Business is active. Payments terms are slow but correct. The company can be considered 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.

INFORMATION PARTED BY

Name :	Ms. Bhavna Pandya
Designation :	Assistant Manager
Contact No.:	91-79-66168950
Date :	16.01.2013

LOCATIONS

Registered Office :	508, Iscon Elegance, Near Jain Temple, Prahladnagar Cross Road, Ahmedabad – 380051, Gujarat, India
Tel. No.:	91-79-40062350 / 32922969
Fax No.:	91-79-40064350
E-Mail :	sikkosprayer@rediffmail.com sikkoltd@gmail.com
Website :	http://www.sikkoindia.com
Area :	4600 sq. ft.
Location :	Owned
Factory 1 :	55-A, A and B, Ambica Industrial Estate, Near Super Atta, Sanad- Viramgam Highway, Iyava, Sanad, District Ahmedabad-380081, Gujarat, India
Tel. No.:	91-2717-284210
Factory 2 :	193, 2 – A/182 – A/2, Ambica estate, sanand Virengam Highway, Iyawa, Taluka Sanand, district Ahmedabad
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Jayantibhai Mohanbhai Kumbhani
Designation :	Director
Address :	8, Pooja Bungalows, Nandan Park Society, Opposite Inductotherm Company, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	10.04.1967
Qualification :	B.Sc.
Date of Appointment :	15.01.2003
PAN No.:	AFYPK8106Q
DIN No.:	00587807
Name :	Mr. Ghanshyam Mohanbhai Kumbhani
Designation :	Director
Address :	9, Ekta Bunglows, Near Panchawati Bung, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	12.08.1963
Date of Appointment :	01.01.2010
PAN No.:	ADTPK7058E
DIN No.:	00587855
Name :	Mr. Pravin Mohanbhai Kumbhani
Designation :	Managing Director
Address :	8, Pooja Bungalows, Nandan Park Society, Opposite Inductotherm Company, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	01.04.1969
Qualification :	B.Sc.
Date of Appointment :	08.02.2000
PAN No.:	AFMPK3572N
DIN No.:	00587864

KEY EXECUTIVES

Name :	Ms. Bhavna Pandya
Designation :	Assistant Manager

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
Alpaben Jayantibhai Kumbhani	179460
Arvindbhai Chhaganbhai Kumbhani	50100
Arvindbhai D. Vaghasiya	20
Ashwinkumar Valjibhai Vora	60100
Atulkumar Valjibhai Vora	50100
Batuklal V. Vasoya	25100
Bhavnaben Pravinbhai Kumbhani	192575
Chhaganbhai M. Vekariya	16100
Chimanbhai D. Kumbhani	25100
Ghanshyambhai Mohanbhai Kumbhani	114150
Hiteshkumar Chimanbhai Kumbhani	60100
Jayantibhai Mohanbhai Kumbhani	359621
Jigneshaben Atulkumar Vora	60100
Kalubhai V. Vadhiya	50100
Kanjibhai M. Vekariya	16100
Kiranben Batuklal Vasoya	25100
Laxmanbhai M. Gondaliya	50100
Mohanbhai Nanjibhai Kumbhani	156070
Nagjibhai N. Dobariya	50100
Nandaben Ghanshyambhai Kumbhani	170000
Nikitaben Rajnikant Kumbhani	9300
Parshotambhai Manjibhai Vekariya	16100
Pravinbhai Mohanbhai Kumbhani	112400
Rajnikant Chhaganbhai Kumbhani	40900
Ramaben Chimanbhai Kumbhani	25100
Rudiben Mohanbhai Kumbhani	69904
Vallabhbhai M. Vekariya	16100
TOTAL	2000000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals and Fertilizers.
Products :	· Bio Products · Pesticides and Fungicides · Fertilizer · Sprayers
Exports :
Products :	Finished Goods
Countries :	South Africa
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	100% Advance
Purchasing :	Credit - 60 days

GENERAL INFORMATION

Customers :

Wholesaler

No. of Employees :

150 (Approximately)

Bankers :

• Bank of India, Sarkhej Gandhi Nagar Highway Branch, 6-7 Ground Floor, Shapath IV, Opposite Karnavati Club, S.G. Highway, Ahmedabad-380057, Gujarat, India
• State Bank of India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Bank of India Term Loan	2.697	4.439
Bank of India – Office Loan	4.307	1.000
Bank of India term Loan III (Ferti)	9.750	11.700
Bank of India Term Loan IV (Plant)	8.653	10.215
HDFC Bank Loan	0.246	0.368
Deposit from Dealer	5.514	5.082
Loan Repayable on Demand	0.000	0.158
Cash credit loan from Bank	16.166	4.892
Total	47.333	37.854
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From director	0.000	0.000
From Shareholders	3.800	1.500
Intercorporate loan	7.378	9.703
Total	11.178	11.203

Banking Relations :	----
Auditors :
Name :	Ashok K Bhatt and Company Chartered Accountants
Address :	401, Ashram Avenue, Behind Kochrab Ashraml, Paldi Char Rasta, Ahmedabad-380006, Gujarat, India
Tel. No.:	91-79-26581529/ 66311529
E-Mail :	ca_akb@yahoo.co.in
PAN No.:	AASFA7909C
Associates :	Sikko Products Private Limited Sikko Trade Links Private Limited Sikko Poly pack Sudarshan Bio Chem Industries Green Mark Industries

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	2.501
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.923	5.292	3.545
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		36.923	25.292	6.046
LOAN FUNDS
1] Secured Loans		47.333	37.854	6.339
2] Unsecured Loans		11.178	11.202	0.000
TOTAL BORROWING		58.511	49.056	6.339
DEFERRED TAX LIABILITIES		0.000	0.000	0.045
TOTAL		95.434	74.348	12.430
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.382	9.071	9.540
Capital work-in-progress		6.157	36.784	0.000
INVESTMENT		0.004	0.004	0.009
DEFERRED TAX ASSETS		0.014	0.011	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.248	3.161	4.886
	Sundry Debtors	18.222	17.486	6.522
	Cash & Bank Balances	5.697	5.278	0.057
	Other Current Assets	1.470	1.310	0.000
	Loans & Advances	3.294	4.909	2.068
Total Current Assets		50.931	32.144	13.533
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.973	1.159	7.166
	Other Current Liabilities	6.406	1.607	2.961
	Provisions	1.675	0.900	0.525
Total Current Liabilities		19.054	3.666	10.652
Net Current Assets		31.877	28.478	2.881
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		95.434	74.348	12.430

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operation	134.997	35.236	21.911
		Other Income	0.215	0.066	0.187
		TOTAL (A)	135.212	35.302	22.098
Less	EXPENSES
		Cost of raw material consumed	73.682	14.007
		Cost of packing material consumed	6.230	0.000
		Employee benefit expense	3.548	1.855
		Trading and other expense	31.864	14.864
		Change in inventories	(4.055)	(0.089)
		TOTAL (B)	111.269	30.637	18.349
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.943	4.665	3.749
Less	FINANCIAL EXPENSES (D)		5.168	0.746	0.804
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.775	3.919	2.945
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.371	1.328	1.342
	PROFIT BEFORE TAX (E-F) (G)		12.404	2.591	1.603
Less	TAX (H)		0.773	0.844	0.473
	PROFIT AFTER TAX (G-H) (I)		11.631	1.747	1.130
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.292	3.545	2.415
	BALANCE CARRIED TO THE B/S		16.923	5.292	3.545
	IMPORTS
		CIF Value of Imports	29.911	NA	NA
	TOTAL IMPORTS		29.911	NA	NA
	Earnings Per Share (Rs.)		6.20	1.30	6.41

Expected Sales (2012-2013) : Rs. 500.000 Millions

The above information has been parted by Ms. Bhavna Pandya

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.60	4.95	5.11
Net Profit Margin (PBT/Sales)	(%)	9.19	7.35	7.32
Return on Total Assets (PBT/Total Assets}	(%)	11.45	3.32	6.95
Return on Investment (ROI) (PBT/Networth)		0.36	0.10	0.27
Debt Equity Ratio (Total Liability/Networth)		2.10	2.08	2.81
Current Ratio (Current Asset/Current Liability)		3.61	3.61	1.27

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51909GJ2000PLC037329
Name of the company	SIKKO INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	508, Iscon Elegance, Near Jain Temple, Prahlad nagar Cross Road, Ahmedabad – 380051, Gujarat, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10306823
Type of charge	· Immovable property Any interest in immovable property
Particular of charge holder	Bank of India, Sarkhej Gandhi Nagar Highway Branch, 6-7 Ground Floor, Shapath IV, Opposite Karnavati Club, S.G. Highway, Ahmedabad-380057, Gujarat, India
Nature of instrument creating charge	Supplemental Memoradum Of Deposit Of Title Deeds Executed For Extension / Modification Of Equitable Mortgage Ch In Favour Of Bank Of India, S. G. Highway Br, Ahmedabad To Secure Modified, Revised and Increased Fund Based Work Cap and Term Loan Aggregate Limit Of Rs. 747.69 Millions By Constructive Delivery and Dep Of Title Deeds On 06.06.2012 Registered With Sub Registrar Sro - Sanand At Sr No 3554 Of Book No 1 On 06.06.2012 Containing 17 (Seventeen) Pages
Date of instrument Creating the charge	06.06.2012.
Amount secured by the charge	Rs. 74.769 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC STKS BK DTS - 2.75% over BR presently 13.25% P. A. monthly rests TL I, II, III and IV - 3.25% over BR Prsntly 13.75% P. A. monthly rests or other rate as may be prescribed by BK FM time to time Terms of Repayment CC - STKS - On Demand / Annual Review CC - BK DTS - On Demand / Annual Review EPC ETC - On Demand / Annual Review Term loan I - 60 monthly installments each of rs.158333/- commenced fm dec 2008 Term loan ii - 60 monthly installments each of rs.85000/- commenced from may 2011 Term loan iii - 60 monthly installments each of rs.195000/- commenced from june 2011 Term loan iv - 60 monthly installments each of rs.223900/- commenced from june 2011 Margin CC - Stocks - 25% CC - Book Debts -40% Term loan I - 28.20%, Term loan II - 26.76% Term loan III - 25%, Term loan IV - 25% Extent and Operation of the charge First and exclusive equitable mortgage charge on all immovable properties being land, building, sheds, structurs, construction and fixed plant and machineries of the co to secure modified, revised and increased working cap and term loan aggregate limit of Rs 74.769 millions alongwith interest, addl int, penal int, liquidated damages, costs, charges, commission and all other amt due to the bank from time to time of what so ever nature Others Revised limits Rs in Millions CC stock - 49.000 Term Loan I - 2.697, Term Loan II - 4.250 Term Loan III - 9.945 Term Loan IV - 8.877 Total Aggregate Limits – 74.769
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that piece and parcel of NA land S No 189/A p sub plot 55/A adm 2155 sq mts with const, bldg, structures, sheds etc adm 437 sq mtrs and fixed plant and mach at Mouje Iyava, Taluka Sanand Dist Ahd All that piece and parcel of NA land S No 189/A p sub plot 55/B adm 1500 sq mts with const, bldg, structures, sheds etc adm 38 sq mtrs and fixed plant and mach at Mouje Iyava, Taluka Sanand Dist Ahd All that piece and parcel of NA land Blck No 193 p plot 02 adm 2591.02 sq mts Ambica Ind Est with const, bldg, structures, sheds etc and fixed plant and mach at Mouje Iyava, Taluka Sanand Dist Ahd All that piece and parcel of NA land Blck No 193 p plot 02/A adm 3263.01 sq mts Ambica Ind Est with const, bldg, structures, sheds etc and fixed plant and mach at Mouje Iyava, Taluka Sanand Dist Ahd All that piece and parcel of office no 508 adm 2742.92 sq ft 5th flor ISCON Elegance with undivided share adm 89 sq mtrs FP 24 TPS 24 mouje Vejalpur, Tal City Dist Ahmedabad and sub Dist Ahd - 4(Paldi)
Particulars of the present modification	Bank Granted Additional CC Rs 14.000 Millions, Term Lon reviewed Term Loan i fm Rs 4.971 Millions to Rs. 26.97 Millions, Term Loan ii fm 5.100 Millions to 4.250 Millions, Term Loan iii fm 11.700 to 9.945 Millions, Term Loan iv fm 13.434 Millions to 8.877 Millions and thereby tot agg limits are modified, revised and increased fm Rs. 70.205 Millionsacs to Rs. 74.769 Millions. Thus first and exclusive eq mort ch on all immov prop of company being land, bldg, construction, sheds, structures, fixed plant and mach has been extended and will operate for Rs. 74.769 Millions w. E. F. 06.06.2012.

Notes:

The Registered office of the company has been shifted from 310-311, Circle-P Vejalpur, S G Highway, Ahmedabad – 380051, Gujarat, India to present address.

Operation:

During the year the company has earned profit of Rs.12.404 Millions as compared to profit of Rs.2.591 Millions during the previous year. They hope to perform better in the current year as well as will be in future years.

Fixed Assets:

• Land
• Factory Building
• Office Building
• Plant and Machinery
• Furniture
• Air Conditioner
• Computer
• Scooter
• EPABX
• Fax Machine
• Trade Marks
• Tempo

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.53.51
UK Pound	1	Rs.84.84
Euro	1	Rs.71.42

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SPN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.