MIRA INFORM REPORT

Report Date :

30.07.2013

IDENTIFICATION DETAILS

Name :	ONEIRO CHEMICALS LIMITED (w.e.f. 31.03.2005)
Formerly Known As :	ONEIRO CHEMICALS PRIVATE LIMITED (w.e.f.11.11.2004) ORIENT PHARMACHEM PRIVATE LIMITED
Registered Office :	1st Floor, ABS Tower Towersold Padra Road, Vadodara – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.10.2004
Com. Reg. No.:	04-044960
Capital Investment / Paid-up Capital :	Rs. 40.000 Millions
CIN No.: [Company Identification No.]	U24230GJ2004PLC044960
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Chemicals Used in Bulk Drugs and Other Intermediates.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 320000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic dip in its profitability and sales during 2012. The profit margin seems to be low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but corrects. The company can be considered for business dealings with some caution.

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. Chirag
Designation :	Accountant
Contact No.:	91-9879564030
Date :	26.07.2013

LOCATIONS

Registered Office :	1st Floor, ABS Tower Old Padra Road, Vadodara – 390007, Gujarat, India
Tel. No.:	91-91-2652341648 / 2338839 / 2334516
Mobile No.:	91-9879564030 (Mr. Chirag)
Fax No.:	91-91-265-2336908
E-Mail :	marketing@oneirochemicals.net purchase@oneirochemicals.net
Website :	http://www.oneirochemicals.net
Location :	Owned
Factory :	S. No. 475/P, At and Po. Ekalbara, Taluka Padra, District Vadodara – 391440, Gujarat, India
Tel. No.:	91-2662-226039/ 395563
E-Mail :	production@oneirochemicals.net

DIRECTORS

As on: 29.06.2012

Name :	Mr. Dushyant Dahyabhai Patel
Designation :	Whole-lime Director
Address :	3/4, Akashvan Housing Complex, Gotri Sevasi Road Sevasi, Baroda-391101, Gujarat, India
Date of Birth/Age :	15.09.1954
Date of Appointment :	27.10.2004
DIN No.:	00009714
Name :	Mr. Niraj Mukeshbhai Patal
Designation :	Whole-lime Director
Address :	93, Urmi Society, Productivity Road, Baroda-390007, Gujarat, India
Date of Birth/Age :	29.10.1975
Date of Appointment :	01.12.2004
DIN No.:	00009775
Name :	Mr. Nikhil Mukeshbhai Patel
Designation :	Whole-lime Director
Address :	93, Urmi Society, Productivity Road, Baroda-390 007, Gujarat, India
Date of Birth/Age :	04.11.1978
Date of Appointment :	01.12.2004
DIN No.:	00009951
Name :	Mr. Pranav Dushyantbhai Patel
Designation :	Whole-lime Director
Address :	3/4, Akashvan Housing Complex, Gotri Sevasi Road, Sevasi, Baroda-391101, Gujarat, India
Date of Birth/Age :	14.12.1979
Date of Appointment :	01.12.2001
DIN No.:	00009820
Name :	Mr. Yashwantbhai Fakirbhai Patel
Designation :	Director
Address :	16-B, Green Land Society, Hari Nagar Vasna Road, Off. Gotri Road. Vadodara - 390021
Date of Birth/Age :	01.06.1951
Date of Appointment :	06.05.2006
DIN No.:	00023528
Name :	Mr. Vishwas Raghunath Gole
Designation :	Director
Address :	7, Suvanapuri Society,, 4 Kamt Flats, Chikuwadi,, Vadodara, 390007, Gujarat, India
Date of Birth/Age :	12.01.1947
Date of Appointment :	11.08.2010
DIN No.:	00333154

KEY EXECUTIVES

Name :	Mr. Chirag
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.06.2012

Names of Shareholders	No. of Shares
Niraj Patal Patel Neha	175000
Mukeshbhai Patal Patel minaxi	100000
Dushyant Patel Minu Patel	75000
Minaxi Patel Mukesh Patel	100000
Neha Patel Niraj Patel	50000
Nikhil Patel Grishma Patel	225000
Minu Patel Dushyant Patel	170000
Pranav Patel Shivani Patel	250000
Rachana Patel Dushyant Patel	155000
Grishma Patel Nikhil Patel	50000
Rishabh Patel	25000
Riya Patel	25000
Shivani Patel	100000
Transpek Finance Limited	200000
Total	1700000

Preference Shares

Names of Preference Shares	No. of Shares
Nikhil Patel	115000
Niraj Patal	85000
Utpal Patel	300000
Minesh Patel	180000
Minesh Jashbhai Patel (HUF)	120000
Krunal Patel	60000
Sweta Patel	140000
Induben Patel	300000
Laxmikant Patel	1000000
Total	2300000

Equity Share Break up (Percentage of Total Equity)

As on: 29.06.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Chemicals Used in Bulk Drugs and Other Intermediates.
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

150 (Approximately)

Bankers :

• The Kalupur Commercial Co-Operative Bank Limited, Old Padra Road Branch, Vadodara - 390007, Gujarat, India
• Axis Bank Limited, 2nd Floor, Vardhaman Complex, Besides Pizza Hut, Race Course, Vadodara - 390007, Gujarat, India
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long term borrowing

From bank

16.361

29.150

From others (Note. II)

0.000

0.257

0.000

0.000

Short term borrowing

0.000

0.000

From banks

104.816

109.076

Total

121.177

138.483

Note:

I) Nature of Security

a) The term loans from bank are secured against hypothecation of vehicle under the vehicle loans by the respective banks.

b) The term loans from bank are secured by way of hypothecation of all the movable machinery financed or to be financed under the said term loans by the respective banks. The term loans are further secured by first charge by way of an equitable mortgage on factory land situated at R.5 No. 354,355 and 357 of block No.475 and factory land and building R.S.no. 350 and 351 of block No. 471 At Ekalbara, Taluka padre, District Vadodara.

c) The term loans are secured by way of personal guarantee of some of the directors of the company.

ii) Term of repayable from banks are as below:

Sr. No.	Particulars	As on 31.03.2012
		Amount	Rate of Interest	Installment
1	HDFC bank limited – vehicle loan	0.946	8.50%	0.051 till Nov. 2014
2	The kalupur commercial co-operative bank limited term loan 1	3.663	13.00%	0.445 till Nov. 2013
3	The kalupur commercial co-operative bank limited term loan 2	1.500	13.00%	0.050 till Sep.2015
4	The kalupur commercial co-operative bank limited term loan 3	0.078	13.00%	0.067 till April 2013
5	The kalupur commercial co-operative bank limited term loan 4	10.172	13.00%	0.417 TILL March 2015
6	Axis bank limited – vehicle loan 1	--	--
7	Axis bank limited – vehicle loan 2	--	--
8	The kalupur commercial co-operative bank limited term loan 5	--	--
9	The kalupur commercial co-operative bank limited term loan 6	--	--
	Total	0.016

Term of repayable from others are as below:

		As on 31.03.2012
Sr. No.	Particulars	Amount	Rate of Interest	Installment
1.	Reliance Capital Limited	--	--	--

Banking Relations :	--
Auditors :
Name :	Contract Nayak and Kishnadwala Chartered Accountants
Address :	C-201-202, Shree Siddhi Vinayak Complex, Opposite Railway Station, Faramji Road, Vadodara – 390005, Gujarat, India
Tel. No.:	91-
Mobile No.:	91-
Fax No.:	91-
E-Mail :
PAN No.:	AACFC8587E
Enterprises owned or significantly influenced by key management personnel or their relatives :	Torrential Investment Private Limited Transpek Finance Limited Universal Esters Limited Abhigam Consultants Private Limited Exemed Pharmaceuticals

CAPITAL STRUCTURE

As on: 29.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1700000	Equity Shares	Rs.10/- each	Rs. 17.000 Millions
2300000	Preference Share	Rs.10/- each	Rs. 23.000 Millions
	Total		Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1700000	Equity Shares	Rs.10/- each	Rs. 17.000 Millions
2300000	Preference Share	Rs.10/- each	Rs. 23.000 Millions
	Total		Rs. 40.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	40.000	35.000
(b) Reserves & Surplus	40.924	32.932
(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)	80.924	67.932
(3) Non-Current Liabilities
(a) long-term borrowings	54.007	54.881
(b) Deferred tax liabilities (Net)	18.824	18.184
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	72.831	73.065
(4) Current Liabilities
(a) Short term borrowings	104.816	109.076
(b) Trade payables	115.861	87.918
(c) Other current liabilities	28.304	38.227
(d) Short-term provisions	5.795	7.909
Total Current Liabilities (4)	254.776	243.130
TOTAL	408.531	384.127
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	189.362	182.283
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	2.411
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2.879	2.879
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	12.909	12.089
(e) Other Non-current assets	7.452	11.201
Total Non-Current Assets	212.602	210.863
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	82.069	70.409
(c) Trade receivables	74.979	67.549
(d) Cash and cash equivalents	10.331	8.187
(e) Short-term loans and advances	16.813	23.012
(f) Other current assets	11.737	4.107
Total Current Assets	195.929	173.264
TOTAL	408.531	384.127

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		35.000
2] Share Application Money		0.000
3] Reserves & Surplus		26.654
4] (Accumulated Losses)		0.000
NETWORTH		61.654
LOAN FUNDS
1] Secured Loans		117.561
2] Unsecured Loans		27.570
TOTAL BORROWING		145.131
DEFERRED TAX LIABILITIES		14.335
TOTAL		221.120
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.292
Capital work-in-progress		13.548
INVESTMENT		2.724
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.942
	Sundry Debtors	54.331
	Cash & Bank Balances	6.688
	Other Current Assets	0.000
	Loans & Advances	31.927
Total Current Assets		146.888
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities		81.391
Net Current Assets		65.497
MISCELLANEOUS EXPENSES		0.059
TOTAL		221.120

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operation	343.981	412.071	348.472
		Other Income	0.770	2.327	3.311
		TOTAL (A)	344.751	414.398	351.783
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	313.452	375.666	323.208
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		31.299	38.732	28.575
Less	FINANCIAL EXPENSES (D)		18.636	16.076	14.491
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.663	22.656	14.084
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.558	9.981	7.936
	PROFIT BEFORE TAX (E-F) (G)		1.105	12.675	6.148
Less	TAX (H)		0.668	4.064	(17.452)
	PROFIT AFTER TAX (G-H) (I)		0.437	8.611	23.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.433	19.154	4.705
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	1.000	2.500
		Dividend on preference share	NA	0.000	4.235
		Proposed dividend on preference share	NA	2.000	1.455
		Tax on Dividend	NA	0.332	0.961
	BALANCE CARRIED TO THE B/S		NA	24.433	19.154
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	109.495	62.121
	TOTAL EARNINGS		NA	109.495	62.121
	IMPORTS
		Raw Materials	NA	119.738	110.483
	TOTAL IMPORTS		NA	119.738	110.483
	Earnings Per Share (Rs.)			4.19	14.32

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.12	2.08	6.71
Net Profit Margin (PBT/Sales)	(%)	0.32	3.08	1.76
Return on Total Assets (PBT/Total Assets}	(%)	0.27	3.35	2.15
Return on Investment (ROI) (PBT/Networth)		0.01	0.19	0.10
Debt Equity Ratio (Total Debt/Networth)		1.96	2.41	2.35
Current Ratio (Current Asset/Current Liability)		0.77	0.71	1.81

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

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2012

As on

31.03.2011

Long term borrowing

Inter company deposits

2.000

2.000

Public deposits

20.549

16.593

Directors and Related parties (Note. III)

15.097

6.881

Total

37.646

25.474

Note:

Details of unsecured deposits from directors and related parties

	As on 31.03.2012
Particulars	Amount
Directors	3.594
Relative of directors	1.085
Enterprise in which directors are interested	10.418
Total	15.097

Nature of Operation

The company was incorporated on 27th October 2004 under the name "Orient Pharmachem Private Limited. The name of the company was changed to 'Oneiro Chemicals Private Limited on 11th November 2004. The company has been converted from private limited company to public limited company on 30th March, 2005, The company is in the business of manufacturing of chemicals used in bulk drugs and other intermediates.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10401012	12/12/2012	10,000,000.00	The Kalupur Commercial Co-operative Bank Limited	Old Padra Road Branch, Vadodara, Gujarat - 390007, INDIA	B67246090
2	10267064	11/01/2011	40,000,000.00	KALUPUR COMMERCIAL CO-OPERATIVE BANK LTD	415, CHOKHA BAZAR, KALUPUR, AHMEDABAD, Gujarat- 380002, INDIA	B05070743
3	10257588	07/12/2010	38,000,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	415, CHOKHA BAZAR, KALUPUR, AHMEDABAD, Gujarat- 380002, INDIA	B02348225
4	10251294	04/11/2010	3,000,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	415, CHOKHA BAZAR, KALUPUR, AHMEDABAD, Gujarat- 380002, INDIA	A99785933
5	10209968	26/03/2010	22,500,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	415, CHOKHA BAZAR, KALUPUR, AHMEDABAD, Gujarat- 380002, INDIA	A82380783
6	10186690	03/10/2009	27,500,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	415,CHOKHA BAZAR, KALUPUR, AHMEDABAD, Gujarat- 380002, INDIA	A73713505
7	10180285	26/08/2009	447,000.00	AXIS BANK LIMITED	2ND FLOOR, VARDHAMAN COMPLEX, BESIDES PIZZA HUT, RACE COURSE, VADODARA, Gujarat - 390007, INDIA	A71335558
8	10180288	26/08/2009	632,000.00	AXIS BANK LIMITED	2ND FLOOR, VARDHAMAN COMPLEX, BESIDES PIZZA HUT, RACE COURSE, VADODARA, Gujarat - 390007, INDIA	A71337364
9	10150856	24/03/2009	10,000,000.00	THE KALUPUR COMMERCIAL CO- OPERATIVE BANK LIMITED	OLD PADRA ROAD BRANCH, VADODARA, Gujarat - 390007 , INDIA	A60003761
10	10135897	11/01/2013 *	159,048,000.00	The Kalupur Commercial Co-operative Bank Limited	Old Padra Road Branch, Vadodara, Gujarat - 390007, INDIA	B69502193
11	10089794	20/02/2008	26,700,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	VADODARA BRANCH, OLD PADRA ROAD, VADODARA, Gujarat - 390015, INDIA	A33230913
12	10097154	06/02/2008	10,000,000.00	THE KALUPUR COMMERICAL CO-OPERATIVE BANK LIMITED	VADODARA BRANCH, OLD PADRA ROAD, VADODARA, Gujarat - 390015, INDIA	A33231036
13	10095498	06/02/2008	20,000,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	VADODARA BRANCH, OLD PADRA ROAD, VADODARA, Gujarat - 390015, INDIA	A33230715
14	10033854	13/06/2007 *	23,500,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	OLD PADRA ROAD, VADODARA, Gujarat - 390015, INDIA	A17989161
15	10002188	22/04/2006	5,000,000.00	THE KALPUR COMMERCIAL COOPERATIVE BANK LIMITED	OLD PADRA ROAD, BARODA, Gujarat - 390015, INDIA	A00399253
16	80050747	06/06/2005	4,000,000.00	THE KALUPUR COMMORICAL CO-OPERATIVE BANK LIMITED	OLD PADRA ROAD BRANCH, VADODARA, Gujarat - 390015 , INDIA	-
17	90105540	19/07/2005 *	2,000,000.00	THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LIMITED	OLD PADRA ROAD BRANCH, VADODARA, Gujarat, INDIA	-

FIXED ASSETS

• Plant and Machinery
• Furniture and Fixture
• Land and Buildings
• Office Equipments
• Vehicle

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. 59.30
UK Pound	1	Rs. 91.18
Euro	1	Rs. 78.71

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		33

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	-

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