MIRA INFORM REPORT

Report Date :

04.03.2013

IDENTIFICATION DETAILS

Name :	VASUDHA PHARMA CHEM LIMITED
Registered Office :	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.12.1994
Com. Reg. No.:	01-019021
Capital Investment / Paid-up Capital :	Rs. 350.000 Millions
CIN No.: [Company Identification No.]	U24230AP1994PLC019021
PAN No.: [Permanent Account No.]	AAACV9857D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients and Pharma Intermediates.
No. of Employees :	Not Available

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 4110000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The latest financial are not made available with the government department. As per previous year’s, the 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 commitments. The company can be considered for business dealings at usual trade terms and condition.

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	FITCH
Rating	Long term rating : (FITCH) BBB+
Rating Explanation	Default risk is low and payment of financial commitments is considered adequate
Date	August 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 :	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India
Tel. No.:	91-40-44763666/ 23711717/ 23812046
Fax No.:	91-40-23706696/ 23811576
E-Mail :	legal@vasudhapharma.com vasudha@vasudhapharma.com
Website :	www.vasudhapharma.com
Unit I :	Plot No. 39, A and B, Phase I, I.D.A, Jeedimetla, Hyderabad - 500055 Andhra Pradesh, India
Unit II :	Plot No. 79, Jawaharlal Nehru Pharma City, Parawada, District Vishakhapatnam - 531021, Andhra Pradesh, India
Unit III :	Plot No. 23, 24, Jawaharlal Nehru Pharma City, Parawada, District Vishakhapatnam - 531021, Andhra Pradesh, India

DIRECTORS

AS ON 27.09.2012

Name :	Mr. Venkata Ramaraju Manthena
Designation :	Chairman and Managing director
Address :	Plot No. 281, F/A Road, No. 10B, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	15.06.1946
Qualification :	M Sc (Organic Chemistry)
Date of Appointment :	20.12.1994
PAN No.:	AARPM1206D
DIN No.:	00085767
Name :	Mr. Ashok Srinivasa Raju Mantena
Designation :	Whole-time director
Address :	Flat No. 1201, A Block, Fortune Towers, Madhapur, Beside Petrol Bank, Hyderabad – 500081, Andhra Pradesh, India
Date of Birth/Age :	26.03.1972
Qualification :	M S (Chemical Engineering)
Date of Appointment :	24.06.1998
DIN No.:	00085896
Name :	Mr. Anand Manthena
Designation :	Whole-time director
Address :	MCH No. 8-1-330, Tolic Howki, Magnificient Homes, H. NO. 7, Beside Reliance Mart, Hyderabad – 500008, Andhra Pradesh, India
Date of Birth/Age :	10.06.1974
Qualification :	MBA
Date of Appointment :	16.03.1998
DIN No.:	00085970
Name :	Mr. Sambasiva Ramachandran
Designation :	Director
Address :	204, Tulasi Apartments, 833 Srinagar Colony, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	10.06.1929
Qualification :	M sc Phd
Date of Appointment :	30.09.2003
DIN No.:	00688077
Name :	Mr. Jagadeeswaravarma Raju Vegesana
Designation :	Director
Address :	Plot No. 62, Behind Siddarthanagar, Hyderabad – 500038, Andhra Pradesh, India
Date of Birth/Age :	10.08.1955
Qualification :	M com
Date of Appointment :	26.12.2006
DIN No.:	01125213
Name :	Mr. Venkata Surya Naga Vara Prasad Raju Mantena
Designation :	Director
Address :	LIG-17, Vuda Phase-I, Kurmanna Palem Gajuwaka, Visakhapatnam – 530046, Andhra Pradesh, India
Date of Birth/Age :	10.08.1964
Qualification :	B com
Date of Appointment :	20.09.2007
DIN No.:	00686034
Name :	Mr. Venkata Raju Kalidindi
Designation :	Director
Address :	50-121-49/110, 4B Geethika Residency B. S. Layout, Seethammadhara, Visakhapatnam – 530013, Andhra Pradesh, India
Date of Birth/Age :	08.06.1964
Qualification :	Bachellor of Engineer
Date of Appointment :	23.03.2009
DIN No.:	02568582
Name :	Venkatachelam Samba Murthy Perinkolam
Designation :	Director
Address :	H.N. 8-2-310/R/8 Road, No. 14, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	13.09.1938
Date of Appointment :	19.07.2011
DIN No.:	03598725
Name :	Venkatanaga Mantena Madhusudhan Raju
Designation :	Director
Address :	Plot No. 498, Bhagat Singh Nagar, ADJ to Vasanth Nagar, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India
Date of Birth/Age :	02.05.1976
Date of Appointment :	19.07.2011
DIN No.:	00685753

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.99
Directors or relatives of directors	96.75
Other top fifty shareholders	2.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients and Pharma Intermediates.

Products :

ITC Code	Product Descriptions
29225024	Domperidone
29333990	Loratadine
29147090	Cyproheptadine

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

Ø Citibank N.A, Queens Plaza, S P Road, Secunderabad - 500003, Andhra Pradesh, India

Ø Kotak Mahindra Bank Limited

Ø ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	237.500	62.500
Foreign currency loans banks secured	46.718	94.065
Working capital loans banks secured	517.966	475.447
Total	802.184	632.012

Banking Relations :	--
Auditors :
Name :	Paturi and Associates Chartered Accountants
Address :	G1, Jayaramakrishna Residency, Jaya Prakash Nagar, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAQPP2545M
Related Parties :	Ø Shriram Chlorochem Limited Ø Vasudha Organics Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		350.000	350.000	300.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		677.285	466.162	322.742
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1027.285	816.162	622.742
LOAN FUNDS
1] Secured Loans		802.184	632.012	634.553
2] Unsecured Loans		29.922	29.922	29.922
TOTAL BORROWING		832.106	661.934	664.475
DEFERRED TAX LIABILITIES		38.559	33.389	28.231
TOTAL		1897.950	1511.485	1315.448
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		870.424	639.293	669.437
Capital work-in-progress		7.280	106.193	6.747
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	360.488	329.855	210.899
	Sundry Debtors	874.414	773.568	617.179
	Cash & Bank Balances	77.838	57.166	64.659
	Other Current Assets	191.824	170.908	0.000
	Loans & Advances	18.556	6.091	127.038
Total Current Assets		1523.120	1337.588	1019.775
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	473.619	547.123	384.093
	Other Current Liabilities	19.318	20.045	12.326
	Provisions	10.132	9.592	6.171
Total Current Liabilities		503.069	576.760	402.590
Net Current Assets		1020.051	760.828	617.185
MISCELLANEOUS EXPENSES		0.195	5.171	22.079
TOTAL		1897.950	1511.485	1315.448

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	2778.174	2435.671	2176.769
		Other Income	1.401	0.941	1.062
		TOTAL (A)	2779.575	2436.612	2177.831
Less	EXPENSES
		Consumption materials changes inventories	1641.066	1492.355
		Manufacturing service costs	434.677	379.672
		Employee related expenses	145.757	130.649
		Administrative selling other expenses	116.674	103.199
		Restructuring charges	4.597	4.912
		Prior period items	0.028	0.360
		TOTAL (B)	2342.799	2111.147	1906.359
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		436.776	325.465	271.472
Less	FINANCIAL EXPENSES (D)		52.795	46.066	52.398
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		383.981	279.399	219.074
Less/ Add	DEPRECIATION/ AMORTISATION (F)		67.416	59.607	57.920
	PROFIT BEFORE TAX (E-F) (G)		316.565	219.792	161.154
Less	TAX (H)		105.442	76.372	57.548
	PROFIT AFTER TAX (G-H) (I)		211.123	143.420	103.606
Less	APPROPRIATIONS
		Transfer to General Reserve	200.000	140.000	100.000
	BALANCE CARRIED TO THE B/S		11.123	3.420	3.606
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	717.525	670.523	595.046
	IMPORTS
		Raw Materials and Packing Materials	544.851	458.799	325.643
		Capital Goods	7.803	1.714	3.131
		Stores and Spares and Lab Chemicals	0.000	0.524	0.000
	TOTAL IMPORTS		552.654	461.037	328.774
	Earnings Per Share (Rs.)		6.03	4.41	3.69

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.60	5.89	4.76
Net Profit Margin (PBT/Sales)	(%)	11.39	9.02	7.40
Return on Total Assets (PBT/Total Assets}	(%)	13.23	11.12	9.54
Return on Investment (ROI) (PBT/Networth)		0.31	0.27	0.26
Debt Equity Ratio (Total Debt/Networth)		0.81	0.81	1.07
Current Ratio (Current Asset/Current Liability)		3.03	2.32	2.53

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)	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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Other debt unsecured	29.922	29.922
Total	29.922	29.922

HISTORICAL RIVIEW

The company has completed 14 years of operations. During the year 2010-11, the company has crossed the three billion INR revenue mark. Gross sales have grown from Rs.16.500 millions in 1997-98 to Rs.3001.500 millions in 2010-11. Initially, the company was focused on manufacturing of Pharma Intermediates based on Piperidones and Piperidines segment of chemistry. As the company operates in the general bulk drug market, the company recognised the importance of R&D. R&D has carried out in-process development to improve product quality and reduce cost of production with process efficiency. By 2003-04, the company gained world class expertise in the development and manufacture of piperidone and piperidine derivatives and became the largest manufacturer in the world. The company has forward integrated from piperidone derivatives to the manufacture of Active Pharmaceutical Ingredients (APIs) and subsequently diversified to other APIs as well spread across various therapeutic segments. This has resulted in having a product profile of about 25 APIs and about 50 intermediates. The company became the largest manufacturer in the country in respect of four APIs.

REVIEW OF OPERATIONS:

During the year, the company’s revenue was higher by 16% at Rs.3001.500 millions, Profit Before Tax was higher by 44% at Rs. 316.600 millions and Profit After Tax was higher by 47% at Rs.211.100 millions over the previous year. Earnings per Share stand at Rs.6.03 as compared to Rs.4.41 in the year 2009-10.

FUTURE OUTLOOK:

During the year, USFDA inspected and accepted the Unit-I facility for production and supply of three APIs for which Drug Master Files (D.M.F.s) were filed. Korean FDA approved Unit-II facility for production and supply of one API. Korean FDA inspected Unit-I facility for production and supply of one API and the approval is expected shortly.

The company filed D.M.F.s for its various products to U.S., European, Korean, Japanese, Chinese and Russian drug regulatory authorities. The company will continue to pursue these initiatives in all the aforesaid export markets.

The company’s R&D continuously carries out process development for new products. With the consolidation of manufacturing facilities of the company and the potential of significant addition of APIs to generic market, the company is poised to capture the market opportunities and sustain its business growth.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24230AP1994PLC019021
Name of the company	VASUDHA PHARMA CHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India Email: legal@vasudhapharma.com
This form is for	Modification of charge
Charge identification number of the modified	10173480
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India Email: sudhakar.vanjangi@hdfcbank.com CIN No: L65920MH1994PLC080618
Nature of description of the instrument creating or modifying the charge	Supplemental letter of hypothecation of stocks, book debts and machinery
Date of instrument Creating the charge	07.12.2012
Amount secured by the charge	Rs. 250.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC 11.55% (linked to Bank Rate) or as agreed between Bank and Borrower from time to time. Terms of Repayment Repayable on Demand. Margin (1) Cash Credit/WCDL - (i) 25% on Stocks and 25% on Debtors (2) Letter of Credit and Bank Guarantee: 10% or as agreed between the Bank and the Borrower from time to time. Extent and Operation of the charge Pari Passu First charge by hypothecation of current assets of the Borrower both present and future along with Citibank N.A; Kotak Mahindra Bank; and Standard Chartered Bank. Pari Passu Second charge by hypothecation of all movable fixed assets, movable plant and machinery and immovable properties of the Borrower, both present and future along with Citibank N.A; Kotak Mahindra Bank; and Standard Chartered Bank.
Short particulars of the property charged	I.(a) Pari Passu First charge on whole of current assets of Borrower both present and future and (b) Pari passu Second charge whole of movable fixed assets of Borrower both present and future situated at: (i) Plot No. 39/A, 39/B, 35/B and 37/A, IDA, Jeedimetla, Hyderabad; (ii) Plot No.79, Jawaharlal Nehru Pharma City, Thanam Village, Parwada Mandal, Visakhapatnam District; and (iii) Plot No.23 and 24,Jawaharlal Nehru Pharma City, Thanam Village, Parwada Mandal, Visakhapatnam District II. Pari Passu Second Charge on the whole of Lands and Immovable Properties of the Borrower both present and future situated at : (i) 39/A,39/B,35/B and 37/A,IDA, Jeedimetla, Hyderabad; (ii) Plot No.79,Jawaharlal Nehru Pharma City, Thanam Village, Parwada Mandal, Visakhapatnam District; (iii) Plot No.23 and 24,Jawaharlal Nehru Pharma City, Thanam Village, Parwada Mandal, Visakhapatnam District; and (iv) Lands at Cheryal Village, Sangareddy Mandal, Medak District.
Date of Modification	16.06.2011
Particulars of the present modification	The Bank has enhanced the Working Capital Limits from Rs.200.000 Millions to Rs.250.000 Millions (fund based Rs.200.000 Millions and Non-fund based Rs.50.000 Millions). The Pari Passu First charge created earlier on whole of current assets of the Borrower and pari passu second charge created earlier on the whole of the movable fixed assets of the Borrower in favour of the Bank shall stand extended to cover the enhanced working capital limits upto Rs. 250.000 Millions by way of this modification.

CONTINGENT LIABILITIES:

a) Contingent liabilities not provided for in respect of Irrevocable Documentary letters of credit of Rs. 87.113 Millions (Previous Year Rs. 54.876 Millions).

b) During the year, there was search operation U/S 132 of Income Tax Act on the company on 11-11-2010 and the effective Income and Tax there on for the year has already been considered in the accounts. In case of earlier years, the company is in the process of submitting necessary information and the effective income and tax there on will be accounted as and when assessments are complete.

FIXED ASSETS:

Ø Freehold Land

Ø Buildings

Ø Plant and Machinery

Ø Electrical Installation

Ø Analytical and Lab Equipment

Ø Other Assets

Ø Computers

Ø Office Equipments

Ø Furniture and Fixture

Ø Vehicles

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. 54.48
UK Pound	1	Rs. 82.72
Euro	1	Rs. 71.27

INFORMATION DETAILS

Report Prepared by :

BVA

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	NO
--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.