MIRA INFORM REPORT

Report Date :

15.06.2013

IDENTIFICATION DETAILS

Name :	AMI LIFESCIENCES PRIVATE LIMITED (w.e.f. 13.06.2006)
Formerly Known As :	SUN SCOPE LABORATORIES PRIVATE LIMITED
Registered Office :	2^nd Floor, Prestige Plaza, 40 Urmi Scoiety, Near Urmi Char Rasta, Vadodara-390020, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.03.1994
Com. Reg. No.:	04-021470
Capital Investment / Paid-up Capital :	Rs. 68.600 Millions
CIN No.: [Company Identification No.]	U24110GJ1994PTC021470
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 770000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has weak liquidity position, moderately leveraged capital structure and also susceptibility of operating margins to raw material price and foreign exchange fluctuations. However, trade relations are reported as fair. Business is active. Payments are reported to slow but correct. The company can be considered for business dealings with some cautions.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB+ (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default.
Date	31.01.2012

Rating Agency Name	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	Minimal degree of safety. It carry high credit risk.
Date	31.01.2012

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.

LOCATIONS

Registered Office :	2^nd Floor, Prestige Plaza, 40 Urmi Scoiety, Near Urmi Char Rasta, Vadodara-390020, Gujarat, India
Tel. No.:	91-265-2323046 / 3052103
Fax No.:	91-265-2313523 / 3052104
E-Mail :	mail@amidrugs.com
Website :	www.amidrugs.com
Factory 1 :	440/5, Road No.82, GIDC Sachin, Surat-394230, Gujarat, India
Factory 2 :	6915, GIDC, Behind Lakya Laboratory, Near Mukta Chowkdi, Ankleshwar, Gujarat, India
Factory 3 :	Plot No. 82/B, ECP Channel Road, At and PO. Karakhadi, District Baroda-391450, Gujarat, India
Overseas Office :	Located At · USA · Switzerland

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Maheshbhai Dhirubhai Kumbhani
Designation :	Whole Time Director
Address :	B/22, Oum Society, Behind Mother School, Gotri Vasna Link Road, Baroda- 390015, Gujarat, India
Date of Birth/Age :	01.03.1975
Date of Appointment :	21.04.2009
DIN No.:	00803956

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Whole-time director	01/01/2011	24/12/2002	Active	NO

Name :	Mr. Nareshbhai Ramjibhai Patel
Designation :	Whole Time Director
Address :	26, Sai Baba Nagar Society, Near Fair Station, Katar Gam, Surat- 390 004, Gujarat, India
Date of Birth/Age :	20.09.1974
Date of Appointment :	02.03.2007
DIN No.:	00906232

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Whole-time director	01/01/2011	02/03/2007	-	Active	NO
2	U24100GJ2007PTC051093	AMI ORGANICS PRIVATE LIMITED	Whole-time director	01/04/2009	12/06/2007	-	Active	NO
3	U24119GJ2009PTC056031	CNR INTERMEDIATES PRIVATE LIMITED	Director	02/02/2009	02/02/2009	11/06/2011	Active	NO

Name :	Mr. Girishbhai Limbabhai Chovatia
Designation :	Managing Director
Address :	A-56, Samarpan Society, Behind Raneshvar Temple, Vasna Road, Vadodara-390015, Gujarat, India
Date of Birth/Age :	01.06.1969
Date of Appointment :	24.12.2002
DIN No.:	00907321

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24231GJ1991PTC014846	AURUM AGROCHEM PRIVATE LIMITED	Director	01/05/2000	01/05/2000	Active	NO
2	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Managing director	01/01/2011	24/12/2002	Active	NO
3	U24231GJ2003PTC041913	AMI DRUGS AND SPECIALITY CHEMICALS PRIVATE LIMITED	Director	28/01/2003	28/01/2003	Active	NO
4	U24100GJ2007PTC051093	AMI ORGANICS PRIVATE LIMITED	Whole-time director	01/04/2009	12/06/2007	Active	NO
5	U24200GJ2011PTC063805	AMI BIO TECH PRIVATE LIMITED	Director	27/01/2011	27/01/2011	Active	NO

Name :	Ms. Shivani Rudreshkumar Trivedi
Designation :	Director
Address :	C-406 Nisarg Housing Complex, Near Vaccine, Institute, Behind J P Police Station, Diwalipura, Vadodara-360015, Gujarat, India
Date of Birth/Age :	12.11.1975
Date of Appointment :	24.11.2009
DIN No.:	01323471

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Director	30/09/2010	24/11/2009	Active	NO
2	U24231GJ2003PTC041913	AMI DRUGS AND SPECIALITY CHEMICALS PRIVATE LIMITED	Director	30/09/2010	24/11/2009	Active	NO

Name :	Mr. Karamshi Devarajbhai Pidhadia
Designation :	Additional Director
Address :	A-206, Sun City, Manjalpur, Vadodara–390011, Gujarat, India
Date of Birth/Age :	18.01.1954
Date of Appointment :	01.08.2012
DIN No.:	02152597

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24231GJ2002PTC040746	SIDDHARTH INTERCHEM PRIVATE LIMITED	Managing director	01/04/2008	01/04/2008	Active	NO
2	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Director	29/09/2012	01/08/2012	Active	NO

Name :	Mr. Kalpesh Ravajibhai Patel
Designation :	Whole time Director
Address :	203, Agman Flat, 11 Sujata Park, Near JP Police Station, Diwalipura, Vadodara-390015, Gujarat, India
Date of Birth/Age :	06.09.1969
Date of Appointment :	24.07.2008
DIN No.:	02289071

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Whole-time director	01/01/2011	24/07/2008	Active	NO

Name :	Mr. Sanket Suresh Patil
Designation :	Director
Address :	401, Sanghvi Tower, Veer Savarkar Path, Charai, Thane (West), Mumbai –400601, Maharashtra, India
Date of Birth/Age :	21.05.1980
Date of Appointment :	01.09.2011
DIN No.:	03592808

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110GJ1994PTC021470	AMI LIFESCIENCES PRIVATE LIMITED	Director	30/09/2011	01/09/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Note: Shareholder details file attached.

AS ON 24.11.2012

Names of Allottees	No. of Shares
Kalpesh Ravjibhai Patel	250000
Girish L Chovatia	236500
Kiran G Chovatia	67500
Ramesh D Vekaria	67500
Shivani R Trivedi	31500
TOTAL	653000

AS ON 21.12.2012

Names of Allottees	No. of Shares
Kalpesh Ravjibhai Patel	50000
Girish L Chovatia	635000
Naresh Patel	111350
TOTAL	796350

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	37.31
Directors or relatives of Directors	57.65
Other top fifty shareholders	5.04
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Citi Bank N.A., 1^st Floor, Pelican Opposite Race Course Tower, Gotri Road, VAdodara-390007, Gujarat, India

· Axis Bank Limited, 2^nd Floor, Vardhaman Complex, Besides Plzza Course Circle, Vadodara-390007, Gujarat, India

· Axis Bank Limited, Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India

· Indusind Bank Limited, Ground Floor and 1^st Floor, Gold Croft Vishwas Colony, Jetapur Road, Baroda-390005, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Term loans from Banks	36.237	41.345
Long term maturities of finance lease obligation	0.400	1.103
Loans repayable on demand from banks	173.196	135.334
TOTAL	209.833	177.782

Banking Relations :	--
Financial Institution :	SBI Global Factors Limited, 6^th Floor, Metropolitan Building, Bandra Kural Complex, Bandra (East), Mumbai-400051, Maharashtra, India
Auditors :
Name :	Patel Haribhai Dahyabhai Chartered Accountant
Address :	104, Deepam Residency, 26,Vishwas Colony, B/h National Plaza, R. C. Dutt Road, Alkapuri, Vadodara-390007, Gujarat, India
PAN No.:	ACQPP5827Q
Associates :	· Ami Drugs And Specialty Chemicals Private Limited · Ami Organics Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6860000	Equity Shares	Rs.10/- each	Rs. 68.600 Millions

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8309350	Equity Shares	Rs.10/- each	Rs. 83.094 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		68.600	50.000	50.000
2] Share Application Money		0.166	0.000	0.100
3] Reserves & Surplus		124.230	98.866	53.690
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		192.996	148.866	103.790
LOAN FUNDS
1] Secured Loans		209.833	177.782	125.602
2] Unsecured Loans		60.732	56.245	23.440
TOTAL BORROWING		270.565	234.027	149.042
DEFERRED TAX LIABILITIES		13.609	8.403	4.100
TOTAL		477.170	391.296	256.932
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		274.073	238.672	174.837
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	123.100	151.766	83.509
	Sundry Debtors	272.858	223.779	156.859
	Cash & Bank Balances	8.544	13.419	2.931
	Other Current Assets	13.832	14.089	0.000
	Loans & Advances	40.542	30.186	14.193
Total Current Assets		458.876	433.239	257.492
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	179.424	217.623	153.250
	Other Current Liabilities	58.494	39.450	5.011
	Provisions	17.861	23.542	17.136
Total Current Liabilities		255.779	280.615	175.397
Net Current Assets		203.097	152.624	82.095
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		477.170	391.296	256.932

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	781.297	730.837	476.950
		Other Income
		TOTAL	781.297	730.837	476.950
Less	EXPENSES
		Office Expenses	739.940	670.338	428.736
		Administrative Expenses
		Advertising Expenses
		TOTAL	739.940	670.338	428.736
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		[Including Deprecation ]	[Including Deprecation ]	48.214
Less/ Add	DEPRECIATION/ AMORTISATION				6.789
	PROFIT BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND TAXATION		41.357	60.499	41.425
Less	EXCEPTIONAL / EXTRA ORDINATY ITEMS		1.076	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX		40.281	60.499	41.425
Less	TAX		14.917	15.323	10.437
	PROFIT / (LOSS) AFTER TAX		25.364	45.176	30.988
	BALANCE CARRIED TO THE B/S		25.364	45.176	30.988
	EXPORT VALUE		6.649	93.904	NA
	IMPORTS VALUE		0.203	177.678	NA
	Earnings Per Share (Rs.)		3.70	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.25	6.18	6.50
Return on Total Assets (PBT/Total Assets}	(%)	5.50	9.00	9.58
Return on Investment (ROI) (PBT/Networth)		0.21	0.41	0.40
Debt Equity Ratio (Total Debt /Networth)		1.40	1.57	1.44
Current Ratio (Current Asset/Current Liability)		1.79	1.54	1.47

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Term loans from Banks	3.067	0.000
Term loans from Others	57.665	45.668
Loans and advances from related parties	0.000	10.577
TOTAL	60.732	56.245

OPERATION

The company has achieved turnover of Rs. 781.300 Millions during the current year compared to Rs. 730.800 Millions in the previous year. The Company has earned a net profit of Rs. 25.300 Millions during the current year.

The directors do not recommend any dividend for the current year. The company had not accepted any deposit from the public during the year.

FORM 8

Corporate identity number of the company	U24110GJ1994PTC021470
Name of the company	AMI LIFESCIENCES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2^nd Floor, Prestige Plaza, 40 Urmi Scoiety, Near Urmi Char Rasta, Vadodara-390020, Gujarat, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Indusind Bank Limited, Ground Floor and 1^st Floor, Gold Croft Vishwas Colony, Jetapur Road, Baroda-390005, Gujarat, India
Nature of instrument creating charge	a) Deed of Hypothecation by Borrower. b) Term Loan Agreement. (Collectively constitute a single charge).
Date of instrument Creating the charge	31.05.2012
Amount secured by the charge	Rs. 12.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest : Base Rate + 1.75% p.a. Terms of repayment Term Loan shall be repayable in Monthly EMI of Rs.0.280 Million each. Any variation in the due to change in ROI to be paid separately. Margin As may be stipulated by Bank from time to time. Extent and operation of the charge Hypothecation of Plant and Machinery, other movable, Book Debts, Stocks, property, furniture and fixtures of the Company as described under Item No.15 as security for repayment of Term Loan of Rs.12.500 Millions together with all interest, costs, charges, expenses and other monies due and payable under the said facilities granted by the bank to the Company. Other The Borrower has agreed to create a charge over Property, furniture and fixtures at No.5, 3^rd floor, Biz Park, Plot No. C 19, MIDC, Wagle Estate, Thane – 400604. Area. 1742 sq. ft.
Short particulars of the property charged (Including location of the property)	All present and future of the movable properties of the Borrower including without limitation its movable plant and machinery, furniture and fitting, equipment, All present and future book debts, outstandings moneys receivable, claims and bills which are now due and owing or which may at any time during the continuance All present and future stock in trade consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever, being

FIXED ASSETS

· Factory Building

· Computer Equipments

· Office Equipments

· Motor Vehicles

· Plant and Machinery

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. 57.74
UK Pound	1	Rs. 90.64
Euro	1	Rs. 77.02

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		31

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.