MIRA INFORM REPORT

Report Date :

27.07.2013

IDENTIFICATION DETAILS

Name :	VARDHAMAN FERTILIZERS AND SEEDS PRIVATE LIMITED
Registered Office :	B 1, Vibha Co-Operative Housing Society, 73/1, Erandawana, Pune - 411004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.07.1987
Com. Reg. No.:	11-044043
Capital Investment / Paid-up Capital :	Rs.8.811 Millions
CIN No.: [Company Identification No.]	U24121MH1987PTC044043
IEC No.:	3193008133
TAN No.: [Tax Deduction & Collection Account No.]	PNEV00356G
PAN No.: [Permanent Account No.]	AAACV6871D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of NPK Granulated Fertilizers for Soil Application.
No. of Employees :	55 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

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. Pankaj
Designation :	Accounts Department
Contact No.:	91-20-41412222
Date :	26.07.2013

LOCATIONS

Registered Office :	B 1, Vibha Co-Operative Housing Society, 73/1, Erandawana, Pune – 411004, Maharashtra, India
Tel No.:	91-20-25810898
Mobile No.:	91-9422322715 (Mr. Ravikant Shah)
Fax No.:	Not Available
Email:	teknodhan@vsnl.net
Website :	http://www.vardhamanfertilizers.net
Corporate/ Sales Office :	Pratibha Tower, 3^rd Floor, 18A/2B, Wakdewadi, Pune – 411003, Maharashtra, India
Tel. No.:	91-20-41412222/ 41412204/ 41412202/ 41412208/ 41412207
Fax No.:	91-20-41412255
E-Mail :	darshanz23@rediffmail.com teknodhan@vsnl.net
Factory :	Gat No:124/1A, N. H No: 9, Village-Kolegaon, Taluka-Mohol, Solapur – 413213, Maharashtra, India
Tel. No.:	91-2189-232415
Fax No.:	91-2189-232382
E-Mail :	vardhaman.fertilizers@gmail.com
Branch Office :	Located at: · Shimla · Bangalore · Hyderabad · Hubli · Kamraj · Jallandhar

DIRECTORS

(AS ON 26.09.2012)

Name :	Mr. Ravikant Ramchand Shah
Designation :	Chairman Cum Managing Director
Address :	B 1, Vibha Co. Operative HSG. Society, 73/1, Erandawana, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.02.1944
Date of Appointment :	25.08.1989
DIN No.:	01598609
Name :	Mr. Vijaykumar Fulchand Doshi
Designation :	Director
Address :	Pride Paradise Flat No.101, 1041, Final Plot No.458, Shivaji Nagar, Pune – 411016, Maharashtra, India
Date of Birth/Age :	26.04.1956
Date of Appointment :	09.07.1987
DIN No.:	01705376
Name :	Ms. Rekha Ravikant Shah
Designation :	Director
Address :	B 1, Vibha Co. Operative HSG. Society, 73/1, Erandawana, Pune – 411004, Maharashtra, India
Date of Birth/Age :	16.03.1952
Date of Appointment :	08.09.1990
DIN No.:	01261285
Name :	Ms. Shubhda Vijaykumar Doshi
Designation :	Director
Address :	Pride Paradise Flat No.101, 1041, Final Plot No.458, Shivaji Nagar, Pune – 411016, Maharashtra, India
Date of Birth/Age :	16.08.1962
Date of Appointment :	08.09.1990
DIN No.:	01661871
Name :	Ms. Reshma Adarsh Mehta
Designation :	Director
Address :	P.O Du Dh Ani, Solapur – 413220, Maharashtra, India
Date of Birth/Age :	16.01.1974
Date of Appointment :	07.12.1990
DIN No.:	01897166

KEY EXECUTIVES

Name :	Shailesh Indapurkar and Associates
Designation :	Company Secretaries
Address :	1170/10, Revenue Colony, Shivajinagar, Pune - 411005, Maharashtra, India
Tel. No.:	91-20-25535792
Mobile No.:	91-9881257930
E-Mail :	indapurkarcs@gmail.com
Name :	Mr. Pankaj
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 26.09.2012)

Names of Shareholders	No. of Equity Shares
Ravikant Shah Jointly with Rekha Shah	29488
Vijaykumar Doshi Jointly with Shubhada Doshi	12437
Rekha Shah Jointly with Ravikant Shah	15313
Shubhada Doshi Jointly with Vijaykumar Doshi	17547
Rajshekhar Doshi Jointly with Vandana Doshi	675
Bhartesh Doshi Jointly with Vijaya Doshi	675
Vandana Doshi Jointly with Rajshekhar Doshi	825
Anjali Doshi Jointly with Mahaveer Doshi	675
Mahaveer Doshi Jointly with Anjali Doshi	975
Vijaya Doshi Jointly with Bhartesh Doshi	675
Rupali Sharma Jointly with Rekha Shah	4026
Swati Kothadia Jointly with Sandesh Kothadia	525
Reshma Shah Jointly with Rekha Shah	4207
Sudeep Doshi Jointly with Vijaykumar Doshi	5874
Shrutika Motipally Jointly with Rekha Shah	6819
Sonali Mehtre Jointly with Rekha Shah	3138
Darshan Doshi Jointly with Shubhada Doshi	3225
Sushma Shah Jointly with Sheetal Shah	693
Mughda Shah	150
Rohit Sharma Jointly with Rupali Sharma	3000
J.J. Shah	1
Darshan Shah	150
Mughda Shah Jointly with Kiran Shah	215
Darshan Shah Jointly with Mughda Shah	153
Total	111461

Names of Shareholders	No. of Preference Shares
Dhanlaxmi Plants and equipments Private Limited, India	8750
Spectrum Consultants Private Limited, India	7980
Total	16730

(AS ON 29.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of NPK Granulated Fertilizers for Soil Application.
Imports :
Products :	Raw Materials
Countries :	· Belgium · Chile
Terms :
Selling :	Credit
Purchasing :	Credit, Depend

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
NPK Granulated	MT	20000 pa	13735.679

GENERAL INFORMATION

Customers :

End User

No. of Employees :

55 (Approximately)

Bankers :

· Centre Bank of India

Deccan Gymkhana Branch, Deccan, Pune-411004, Maharashtra, India

· Kotak Mahindra Bank

· Barclays Bank

· Axis Bank

· State Bank of India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Long Term Borrowings
-Cholamandalam Jeep Loan (Shimla) (Hypothecated against Vehicle)	0.144	0.297
-L.I.C. of India (Secured Against Key Man Insurance Policy on the life of Managing Director of Company)	0.688	0.632
-Cholamandalam Jeep Loan ( Abhor) (Hypothecated against Vehicle)	0.256	0.400
Less: Obligations maturing within 12 months shown separately	0.400	0.297
Total (A)	0.688	1.032
Secured against Directors' Personal Guarantees
Kotak Mahindra Bank (New)	3.000	--
Bajaj Auto Finance, Pune	3.373	--
Barclays Bank (Old )	--	0.238
Barclays Investments and Loans (India) Limited ( NEW )	1.029	1.710
Kotak Mahindra Bank ( OLD )	--	0.033
Kotak Mahindra Bank ( NEW )	--	1.390
Bajaj Auto Finance, Pune	0.579	1.393
HDFC Bank	1.425	2.378
India Bulls Financial Services Limited	0.634	2.008
Magma Fincorp Limited	0.579	1.393
Religare Fininvest Limited	0.841	2.113
Less: Obligations maturing within 12 months shown separately	8.157	7.570
Total (B)	3.303	5.086
Total (A+B)	3.991	6.118
Short Term Borrowings
Long Term Obligations maturing within 12 months
Secured Loans against assets	0.400	0.297
Loans secured against directors' personal guarantees	8.157	7.570
Working Capital Loans
-Central Bank of India, Pune Cash Credit (Hypothecation on Raw Materials, Work in process, Finished Stock, Stores and spares and second charge on fixed assets and personal guarantees of director)	42.768	37.029
-Central Bank of India, Pune Overdraft Hyphenation of Book Debts/receivables not more than 90 days and second charge on other fixed assets and personal guarantees of directors.	8.634	9.572
Total	63.950	60.586

Banking Relations :	--
Auditors :
Name :	Gosavi Yardi and Company Chartered Accountants
Address :	Ketki, 4^th Floor, Next to Alka Talkis, Sadashiv Peth, Pune – 411030, Maharashtra, India
Tel. No.:	91-20-24331439/ 24332795
PAN No.:	AACVG6871D
Email :	ca.yardi@gmail.com
Associates:	· Dhanlaxmi Plants and Equipments Private Limited · Dhanlaxmi Engineering Enterprises · Teknokom Engineers · Spectrum Consultants Private Limited · Ravikant Agro Products Private Limited

CAPITAL STRUCTURE

(AS ON 26.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 Millions
20000	Preference Shares	Rs.100/- each	Rs.2.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
111461	Equity Shares	Rs.100/- each	Rs.11.146 Millions
16730	Preference Shares	Rs.100/- each	Rs.1.673 Millions
	Total		Rs.12.819 Millions

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 Millions
20000	Preference Shares	Rs.100/- each	Rs.2.000 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
88107	Equity Shares	Rs.100/- each	Rs.8.811 Millions

NOTE:

Reconciliation of opening and closing share capital

Particulars	31.03.2012 No. of Shares
Equity Shares at the beginning of the year	88,107
Add : Shares issued during the year	Nil
Equity Shares at the close of the year	88,107

The details of shareholders having more than 5% shares

Name of the shareholder	31.03.2012
	No of shares	%
Rekha Shah	14 578	16.55
Ravikant R. Shah	23,747	26.95
Vijaykumar Doshi	11,595	13.16
Shubhada Doshi	10,825	12.29

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	8.811	8.811
(b) Reserves & Surplus	19.721	17.186
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	9.265	0.000
Total Shareholders’ Funds (1)+(2)	37.797	25.997
(3) Non-Current Liabilities
(a) long-term borrowings	22.156	37.564
(b) Deferred tax liabilities (Net)	0.558	0.788
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	22.714	38.352
(4) Current Liabilities
(a) Short term borrowings	59.959	46.600
(b) Trade payables	116.699	37.585
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	10.525	9.157
Total Current Liabilities (4)	187.183	93.342
TOTAL	247.694	157.691
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.962	33.086
(ii) Intangible Assets	1.655	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	0.632	0.632
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	34.249	33.718
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	143.012	91.292
(c) Trade receivables	55.663	19.711
(d) Cash and cash equivalents	7.170	4.592
(e) Short-term loans and advances	6.959	7.431
(f) Other current assets	0.641	0.947
Total Current Assets	213.445	123.973
TOTAL	247.694	157.691

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.716
2] Share Application Money		0.000
3] Reserves & Surplus		10.354
4] (Accumulated Losses)		0.000
NETWORTH		20.070
LOAN FUNDS
1] Secured Loans		58.602
2] Unsecured Loans		10.450
TOTAL BORROWING		69.052
DEFERRED TAX LIABILITIES		0.797
TOTAL		89.919
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.333
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.021
	Sundry Debtors	15.121
	Cash & Bank Balances	5.781
	Other Current Assets	4.478
	Loans & Advances	4.355
Total Current Assets		89.756
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	19.919
	Other Current Liabilities	5.841
	Provisions	6.586
Total Current Liabilities		32.346
Net Current Assets		57.410
MISCELLANEOUS EXPENSES		0.176
TOTAL		89.919

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales and Other Income	227.307	165.128	150.309
		TOTAL (A)	227.307	165.128	150.309
Less	EXPENSES
		TOTAL (B)	206.465	138.397	134.743
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.842	26.731	15.566
Less	FINANCIAL EXPENSES (D)		11.260	10.449	7.380
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.582	16.282	8.186
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.421	4.307	3.911
	PROFIT BEFORE TAX (E-F) (G)		5.161	11.975	4.275
Less	TAX (H)		1.585	4.120	1.263
	PROFIT AFTER TAX (G-H) (I)		3.576	7.855	3.012
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.080	2.255	0.506
Less	APPROPRIATIONS
		Transfer to General Reserve	0.400	1.006	0.100
		Dividend on Equity Shares	0.881	0.881	0.881
		Dividend on Preference Shares	0.000	0.000	0.113
		Tax on Dividend	0.143	0.143	0.169
	BALANCE CARRIED TO THE B/S		10.232	8.080	2.255
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.084	0.043	0.000
	TOTAL EARNINGS		0.084	0.043	0.000
	IMPORTS
		Raw Materials	33.035	33.701	19.365
	TOTAL IMPORTS		33.035	33.701	19.365
	Earnings Per Share (Rs.)			89.16	30.90

Particulars	31.03.2013
Sales Turnover (Approximately)	230.000

The above information has been parted by Mr. Pankaj- Accounts Department.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.57	4.76	2.00
Return on Total Assets (PBT/Total Assets}	(%)	2.08	7.59	3.50
Return on Investment (ROI) (PBT/Networth)		0.14	0.46	0.21
Debt Equity Ratio (Total Debt/Networth)		2.17	3.24	3.44
Current Ratio (Current Asset/Current Liability)		1.14	1.33	2.77

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITY OF LONG TERM DEBT DETAIL: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Long Term Borrowings
From Related Parties
from Directors	1.500	0.505
from Sister Concern	16.665	23.073
Total	18.165	23.578

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Bank guarantees issued in favour of "Assistant Commissioner of Custom office of the Dy Commissioner of Custom	0.429	0.429
Letter of Credits issued and open as on 31/3/2012	11.189	1.000
Total	11.618	1.429

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90084389	15/02/2010 *	4,000,000.00	CENTRAL BANK OF INDIA	DECCAN GYMKHANA BRANCH, DECCAN, PUNE, MAHARASHTRA - 411004, INDIA	A82418807
2	90090165	15/02/2010 *	10,000,000.00	CENTRAL BANK OF INDIA	DECCAN GYMKHANA BRANCH, DECCAN, PUNE, MAHARASHTRA - 411004, INDIA	A82418484
3	90089666	19/01/2013 *	59,000,000.00	CENTRAL BANK OF INDIA	DECCAN GYMKHANA BRANCH, DECCAN, PUNE, MAHARASHTRA - 411004, INDIA	B67985077
4	90093578	07/06/1991	1,500,000.00	THE STATE INDUSTRIAL AND INVESTMENT COR. OF MAHARASHTRA LTD	NIRMAL 1ST FLOOR, NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Furniture and Fixtures

· Plant and Machinery

· Generator Set

· Laboratory Equipment

· Refrigerator

· Tools and Equipment

· Air Conditioner

· Ceiling Fan

· Vehicles

· Computer

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.58.91
UK Pound	1	Rs.90.68
Euro	1	Rs.78.21

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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

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