MIRA INFORM REPORT

Report Date :

09.07.2013

IDENTIFICATION DETAILS

Name :	MOD CERAMIC INDUSTRIES LIMITED
Formerly Known As :	MOD CERA INDUSTRIES LIMITED
Registered Office :	8-A, National Highway, Morbi – 363 642, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.12.1996
Com. Reg. No.:	04-031255
Capital Investment / Paid-up Capital :	Rs.20.000 millions
CIN No.: [Company Identification No.]	U26914GJ1996PLC031255
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Tiles.
No. of Employees :	25 (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 264000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears drastic dip in its profitability during 2012. However, general financial position seems to be good. 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 conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	NSIC
Rating	SE 1B
Rating Explanation	Highest performance capability and moderate financial strength.
Date	November, 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.

INFORMATION PARTED BY

Name :	Mr. Ishwarbhai
Designation :	Accounts Manager
Contact No.:	91-9228595807
Date :	08.07.2013

LOCATIONS

Registered Office/ Head Office/ Factory :	8-A, National Highway, Morbi – 363 642, Gujarat, India
Tel. No.:	91-2822-230096, 221584 (Office) 91-2822-240628, 240629 (Factory)
Mobile No.:	91-9228595807 (Mr. Ishwarbhai)
Fax No.:	91-2822-243443, 230035 (Factory)
E-Mail :	info@argiltiles.com
Website :	http://www.argiltiles.com
Area :	10000 sq ft
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Mahadevbhai Amarshibhai Varneshiya
Designation :	Managing Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	23.01.1961
Date of Appointment :	09.01.1997
DIN No.:	00063398
Name :	Mr. Amarshibhai Motibhai Varneshiya
Designation :	Whole-Time Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	04.01.1926
Date of Appointment :	09.01.1997
DIN No.:	00063397
Name :	Mr. Rameshbhai Amarshibhai Varneshiya
Designation :	Whole-Time Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	28.01.1963
Date of Appointment :	09.01.1997
DIN No.:	00063399
Name :	Ms. Heenaben Rameshbhai Varneshiya
Designation :	Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	22.12.1964
Date of Appointment :	09.01.1997
DIN No.:	00063406
Name :	Ms. Chandrikaben Mahadevbhai Varneshiya
Designation :	Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	26.10.1963
Date of Appointment :	09.01.1997
DIN No.:	00063402
Name :	Mr. Nilay Mahadevbhai Varneshiya
Designation :	Whole-Time Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	09.04.1985
Date of Appointment :	24.04.2003
DIN No.:	00063410
Name :	Mr. Kushal Rameshbhai Varneshiya
Designation :	Whole-Time Director
Address :	So-Ordi, Main Road, Morbi, Rajkot – 363 642, Gujarat, India
Date of Birth/Age :	13.10.1987
Date of Appointment :	19.11.2005
DIN No.:	00063412

KEY EXECUTIVES

Name :	Mr. Chetan R. Shah
Designation :	Company Secretary
Address :	309, Aabhushan Complex, 17, Mahadevnagar Society, Stadium Road, Ahmedabad – 380 014, Gujarat, India
Tel. No.:	91-79-26421657
Mobile No.:	91-9328246138
E-Mail :	shah_cr@yahoo.co.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Note:

Shareholding details file attached.

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	62.17
Other top fifty shareholders	26.28
Others	11.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Tiles.
Exports :
Products :	Tiles
Countries :	Sri Lanka Israel Dubai
Imports :
Products :	Raw Materials
Countries :	Italy
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

• Anand Dyes and Chemicals
• Krishna Colour Chem., Morbi
• Anand Sales Agency
• Anil Minerals
• Apex Cera Impex
• Aum Corporation, Morbi
• Balaji Enterprises
• Bansi Enterprise
• Belgium Glass and Ceramics Private Limited
• Care Thermopack Industries
• Designs Zone
• Dhara Enterprise
• Dwarkadhish Traders
• Endeka Ceramic India Private Limited
• Euro Ceramic Limited
• Futura Ceramics Private Limited, Radhu
• Galaxy Enterprise
• Ganesh Chemicals
• Gau Sales Agency
• Kailash Marbles
• Kohinoor Minerals
• Krishna Ceracoats Industries
• Adex Inc.
• Arrow Digital Private Limited, Ahmedabad

Customers :

End Users

• AB Ceramic Service
• Astron Ceramic Industries, Morbi
• Adhitya Ceramics
• Anil Brothers
• Apna Enterprise
• Argil Ceramic, [Jaipur]
• Argil Tile And Sanitaryware
• Asian Ceramic
• Aswathy Enterprise
• B.M. Sanitation
• Bansal Enterprise
• Bath "N" Room
• Beena Hardwares
• Bhagwati Enterpries
• Bishwas Marble Center, Mlirshidabad
• Biswas Marble House, Murshidabad
• BSCPL Infrastructure Limited
• Chetan Construction
• City Ceramic Decorator
• D.A.P.L. Associates
• Delux Sanitations
• Dev Brothers
• Krishna Hardware Store
• Krishna Sales Corporation
• M.K. Steel Traders
• Mahavir Stone
• Mahesh Traders
• Nilkanth Marble
• Poona Paints
• Shree Mahavir Marble, Mumbai
• Variya Prajapati Trust
• Vikash Marketing

No. of Employees :

25 (Approximately)

Bankers :

• HDFC Bank Limited
• Oriental Bank of Commerce
• State Bank of India
• Indian Overseas Bank Limited, Bhatia Mahajan Building, Sardar Road, Morbi – 363 641, Gujarat, India

Facilities :

CC – Rs.40.000 millions and TL – Rs.15.000 millions (From Indian Overseas Bank Limited)

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan
Banks
Rupee
IOB Old T.L.	2.076	3.451
IOB New T.L.A/C	5.642	7.248
IOB T/L A/C 261100046	16.810	0.000
Kotak Mahindra Bank Limited	1.267	2.563
HDFC C/R Card A/C	0.000	0.066
SHORT TERM BORROWINGS
Loans repayable on demand
Banks
Indian Overseas Bank Limited	40.531	39.176
Total	66.326	52.504

Banking Relations :	--
Auditors :
Name :	Dineshkumar V. Shah and Company Chartered Accountants
Address :	Opposite Peoples Co-Operative Bank, Derasar Road, Surendranagar – 363 001, Gujarat, India
Tel. No.:	91-2752-222144/ 223446
PAN No:	AEDPS3839Q
Associates/Subsidiaries :	Shree Prajapat Tiles Address: 8-A, National Highway, Morbi – 363 642, Gujarat Line of Business: Manufacturer and Exporter of Tiles.

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Particulars	As at 31^st March, 2012
	No. of Shares	Amount (Rs. in millions)
Number of shares at the beginning	2000000	20.000
Add: Issue	--	--
Less: Bought Back	--	--
Add: Other	--	--
Number of shares at the end	2000000	20.000

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	20.000	20.000
(b) Reserves & Surplus	45.881	45.490
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	65.881	65.490
(3) Non-Current Liabilities
(a) Long-term borrowings	25.795	13.328
(b) Deferred tax liabilities (Net)	0.800	0.800
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	26.595	14.128
(4) Current Liabilities
(a) Short term borrowings	51.260	49.878
(b) Trade payables	73.150	56.185
(c) Other current liabilities	4.905	3.192
(d) Short-term provisions	11.247	9.870
Total Current Liabilities (4)	140.562	119.125
TOTAL	233.038	198.743
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	80.912	57.801
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	80.912	57.801
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	57.288	51.315
(c) Trade receivables	80.907	76.881
(d) Cash and cash equivalents	2.089	1.808
(e) Short-term loans and advances	4.841	4.755
(f) Other current assets	7.001	6.183
Total Current Assets	152.126	140.942
TOTAL	233.038	198.743

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.000
2] Share Application Money		0.000
3] Reserves & Surplus		35.708
4] (Accumulated Losses)		0.000
NETWORTH		55.708
LOAN FUNDS
1] Secured Loans		44.280
2] Unsecured Loans		9.753
TOTAL BORROWING		54.033
DEFERRED TAX LIABILITIES		1.341
TOTAL		111.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		40.775
Capital work-in-progress		0.000
INVESTMENT		1.267
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.791
	Sundry Debtors	94.670
	Cash & Bank Balances	1.746
	Other Current Assets	3.763
	Loans & Advances	2.762
Total Current Assets		150.732
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.463
	Other Current Liabilities	9.224
	Provisions	7.005
Total Current Liabilities		81.692
Net Current Assets		69.040
MISCELLANEOUS EXPENSES		0.000
TOTAL		111.082

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	202.894	184.337	243.223
		Other Income	3.967	7.425	1.483
		TOTAL (A)	206.861	191.762	244.706
Less	EXPENSES
		Cost of materials consumed	119.081	90.296	218.237
		Changes in inventories of finished goods work-in-progress and stock-in-trade	(5.973)	(3.524)
		Employee benefits expenses	13.726	18.672
		Other expenses	61.183	57.855
		TOTAL (B)	188.017	163.299	218.237
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.844	28.463	26.469
Less	FINANCIAL EXPENSES (D)		8.767	7.011	7.132
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.077	21.452	19.337
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.594	8.858	6.704
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.483	12.594	12.633
Less	TAX (H)		0.092	3.059	3.984
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.391	9.535	8.649
	AMOUNT ADJUSTED IN P&L A/C		NA	0.246	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.584	10.803	2.154
	BALANCE CARRIED TO THE B/S		NA	20.584	10.803
	IMPORTS
		Machinery	USD 25378.08	NA	NA
	Earnings / (Loss) Per Share (Rs.)		0.20	4.77	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	220.000

Expected Sales (2013-2014): Rs.230.000 millions

The above information has been parted by Mr. Ishwarbhai (Accounts Manager).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.19	4.97	3.53
Net Profit Margin (PBT/Sales)	(%)	0.24	6.83	5.19
Return on Total Assets (PBT/Total Assets}	(%)	0.21	6.34	6.60
Return on Investment (ROI) (PBT/Networth)		0.01	0.19	0.23
Debt Equity Ratio (Total Debt/Networth)		1.17	0.97	0.97
Current Ratio (Current Asset/Current Liability)		1.08	1.18	1.85

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Sundry Creditors	73.150	56.185	65.463

Details of Sundry Creditors (Partial):

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Sundry Creditors
Creditors due to Small Micro Enterprises
Anand Dyes and Chemicals	0.396	0.426	1.177
Anand Sales Agency	0.037	0.000	0.000
Anil Minerals	0.089	0.041	0.082
Aum Corporation, Morbi	0.424	0.000	0.000
Balaji Enterprises	0.124	0.000	0.000
Bansi Enterprise	0.181	0.213	0.000
Belgium Glass and Ceramics Private Limited	0.281	0.875	0.074
Krishna Ceracoats Industries	0.279	0.279	0.000
Creditors due to Others
Adex Inc.	0.171	0.171	0.171
Alpha Enterprises	0.004	0.001	0.000
Chandan Hardware	1.348	0.919	0.594
Highland Industries Limited	3.134	3.134	0.000
Hiten Traders	0.092	0.000	0.092
J.K. Mechanical	0.248	0.281	0.154

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 four 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	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties
Mahadevbhai Amarishbhai Prajapati	0.072	0.083
Nilay Mahadevbhai Prajapati	0.474	0.475
Rameshbhai Amarishbhai Prajapati	0.099	0.123
Chandrikaben Mahadevhai Prajapati	6.418	6.381
Heenaben Rameshbhai Prajapati	3.666	3.638
Amarishbhai Motibhai Prajapati	0.000	0.002
Total	10.729	10.702

Bankers Charges Report as per Registry

Corporate identity number of the company	U26914GJ1996PLC031255
Name of the company	MOD CERAMIC INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	8-A, National Highway, Morbi – 363 642, Gujarat, India E-Mail: info@argiltiles.com
This form is for	Modification of charge
Charge identification number of the modified	80035010
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	Indian Overseas Bank Limited, Bhatia Mahajan Building, Sardar Road, Morbi – 363 641, Gujarat, India E-Mail: morvibr@ahmsco.iob.net.co.in
Nature of description of the instrument creating or modifying the charge	1. Supplemental Memorandum of Deposit of Title Deeds dated 03.03.2012 2. Letter of hypothecation (for securing machineries / vehicles / goods / book debts) dated 03.03.2012
Date of instrument Creating the charge	03.03.2012
Amount secured by the charge	Rs.93.603 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: C.C. :- BR + 3.50% T.L. I :- BR + 3.75 % T.L. II :- BR + 3.75 % Fresh T.L. :- BR + 3.50 % i.e. 14.25 % B.G. :- As per circular in force LC - I/F DA / DP up to 90 days:- As per circular in force Terms of Repayment: Cash Credit repayable on demand. Fresh term loan to be repaid in 48 monthly installments with 3 months holiday from the date of first disbursement. Letter of guarantee and letter of credit - repayable as per circulars in force. Margin: Stock :-25% Book Debts :- 50 % Term Loan I :- 25 % Term Loan II :- 37 % Fresh Term Loan :- 25 % Bank Guarantee :- 25% LC - I/F DA / DP up to 90 days :-10 % Extent and Operation of the charge: Charge to secure advances of Rs.93.603 millions Charge to act as a continuing security.
Short particulars of the property charged	Hypothecation of plant and machinery, stock, book debts, plant and machinery of ceramic industry, RM / GIP / FG of ceramic tiles, other packing materials etc. Immovable properties of the company being factory land and building adm. acres 1-17 GS, of survey no. 41 (P) of Village Trajpar, Taluka Morbi, District Rajkot together with plant, machinery thereon.
Date of latest modification prior to the present modification	23.08.2010
Particulars of the present modification	The charge shall extend to secure new term loan of Rs.16.600 millions and bank guarantee of Rs.4.300 millions. Total charge stands enhanced from Rs.72.703 millions to Rs.93.603 millions.

TRADE REFERENCES:

· Astron Ceramic Industries, Morbi

· Krishna Colour Chem., Morbi

FIXED ASSETS:

· Land

· Factory Shed

· Plant and Machinery

· Computer Equipments

· Furniture and Fixtures

· Motor Vehicles

· Goodwill

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.61.05
UK Pound	1	Rs.90.89
Euro	1	Rs.78.27

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

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
DEFAULTERS
--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.