MIRA INFORM REPORT

Report Date :

07.11.2013

IDENTIFICATION DETAILS

Name :	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED (w.e.f. 23.04.2010)
Formerly Known As :	DECCAN FINE CHEMICALS (INDIA) LIMITED (w.e.f. 11.02.2008) DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED
Registered Office :	8-2-293-82/A/74/A, Road No.9, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.08.2006
Com. Reg. No.:	01-050967
Capital Investment / Paid-up Capital :	Rs. 430.000 Millions
CIN No.: [Company Identification No.]	U24117AP2006PTC050967
TAN No.: [Tax Deduction & Collection Account No.]	HYDD03907B
PAN No.: [Permanent Account No.]	AACCD9205D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Agro Chemicals.
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 448000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financial for the year 2013 are not available with the government department. As per previous year (2012), there appear huge accumulated losses recorded by the company. However, the rating takes into consideration the experience promoters, industry experience, operational and financial support from strategic foreign investors. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BBB-
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	June 20, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A3
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	June 20, 2013

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 :	8-2-293-82/A/74/A, Road No.9, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India
Tel. No.:	91-40-23601035
Fax No.:	91-40-23601071
E-Mail :	l.d.reddy@gmail.com gayatri@deccanchemicals.com aspardhasaradhi@nagarjunaagrichem.com hemanath@deccanchemicals.com
Website :	http://www.deccanchemicals.com
Location :	Owned
Factory :	Kesavaram, Ventakanagaram Post, Payakaraopeta Mandal, District Visakhapatnam - 531127, Andhra Pradesh, India

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Gokaraju Satyanarayana

Designation :

Managing Director

Address :

Plot No.211, Road No.14, Prashasan Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Appointment :

29.02.2012

DIN No.:

00524152

Other Directorships :

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	L24219AP1986PLC016607	NAGARJUNA AGRICHEM LIMITED	Director	16/09/2008	03/02/1998	28/01/2009	Active	NO
2	U24230MH1974PTC189863	VIJAYALAKSHMI INSECTICIDES AND PESTICIDES PRIVATE LIMITED	Director	03/02/1998	03/02/1998	26/03/2007	Amalgamated	NO
3	L24219AP1993PLC015963	BHAGIRADHA CHEMICALS AND INDUSTRIES LTD.	Director	29/01/1999	29/01/1999	30/11/2008	Active	NO
4	U80100AP1995NPL022409	NAGARJUNA AGRICULTURAL RESEARCH AND DEVELOPMENT INSTITUTE	Director	02/09/2000	02/09/2000	23/02/2009	Active	NO
5	U31909KA1996PLC019918	UDUPI POWER CORPORATION LIMITED	Director	28/01/2002	28/01/2002	03/08/2007	Active	NO
6	U01122AP2000PTC034192	BIJAM BIOSCIENCES PRIVATE LIMITED	Director	03/03/2003	03/03/2003	21/11/2008	Active	NO
7	U74140AP2003PTC041263	BIJAM PRIVATE LIMITED	Director	25/07/2003	25/07/2003	21/11/2008	Active	NO
8	U00337KA1993PLC014694	JAIPRAKASH ENGINEERING AND STEEL COMPANY LIMITED	Director	01/09/2003	01/09/2003	19/12/2008	Active	NO
9	U24129MH2001PLC210070	NAGARJUNA CORPORATION LIMITED	Director	28/07/2006	28/07/2006	21/11/2008	Active	NO
10	U24117AP2006PTC050967	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED	Managing director	29/02/2012	03/06/2008	-	Active	NO

Name :

Mr. Kanumuri Venkata Lakshmipathi Raju

Designation :

Director

Address :

Flat No.101, Block – A, KSR Green Valley, Madhavadhara, Vishakhapatnam, Andhra Pradesh, India

Date of Appointment :

24.12.2007

DIN No.:

02000929

Name :

Mr. Vamsi Gokaraju

Designation :

Whole Time Director

Address :

Plot No.211, Street 14, Road 72, Prashasan Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Appointment :

04.12.2008

PAN No.:

AIYPG7740F

DIN No.:

02479839

Name :

Mr. Makoto Okabe

Designation :

Director

Address :

4-26-1-303, Shimomaruko, Ota-Ku, Tokyo 1460092 Japan

Date of Birth/Age :

29.08.1960

Date of Appointment :

10.02.2011

DIN No.:

03204783

Other Directorships :

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	U24117AP2006PTC050967	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED	Director	10/02/2011	10/02/2011	Active	NO
2	U24112PB1993PLC014017	SAURAV CHEMICALS LIMITED	Director	18/03/2013	15/02/2013	Active	NO

Name :

Mr. Robert Nicolas Ernest Durand

Designation :

Additional Director

Address :

34 Rue De Lectoure, Saint Louis 68300 France

Date of Birth/ Age :

19.07.1947

Date of Appointment :

12.09.2012

DIN No.:

06393075

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	47.89
Directors or relatives of directors	37.88
Other top fifty shareholders	14.23
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Agro Chemicals.

Products/ Services :

ITC Code No.	Product Descriptions
38089390	Product 1
38089990	Product 2
38089910	Product 3

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Agro Chemicals	NA	6602 MT	672388 Kg

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, 54-10-10-1/6, Overseas Bank Branch, Resapuvanipalem, Visakhapat, Visakhapatnam - 530020, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	12.06.2010 to 31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans [Term Loans and Working Capital Loans from the banks are personally guaranteed by Sri Vamsi Gokaraju and Sri KVLP]	354.608	174.015
Loans repayable on demand	423.500	723.562
SHORT TERM BORROWINGS
Other loans and advances	263.191	158.543
Total	1041.299	1056.120

Banking Relations :	--
Auditors :
Name :	Sarangapani C H Chartered Accountant
Address :	1-1-719,Gandhi Nagar, Hyderabad, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ABZPC2635H

CAPITAL STRUCTURE

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
65,000,000	Equity Shares	Rs. 10/- each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46,870,000	Equity Shares	Rs. 10/- each	Rs. 468.700 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
65,000,000	Equity Shares	Rs. 10/- each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43,000,000	Equity Shares	Rs. 10/- each	Rs. 430.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	12.06.2010 to 31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	430.000	430.000
(b) Reserves & Surplus	(318.032)	(146.954)
(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)	111.968	283.046
(3) Non-Current Liabilities
(a) long-term borrowings	925.689	1001.562
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	925.689	1001.562
(4) Current Liabilities
(a) Short term borrowings	263.191	158.543
(b) Trade payables	1024.232	449.782
(c) Other current liabilities	274.715	56.733
(d) Short-term provisions	0.447	0.064
Total Current Liabilities (4)	1562.585	665.122
TOTAL	2600.242	1949.730
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1390.852	1491.761
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	190.583	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1581.435	1491.761
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	416.888	219.754
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	191.155	56.290
(e) Short-term loans and advances	45.185	23.113
(f) Other current assets	365.579	158.812
Total Current Assets	1018.807	457.969
TOTAL	2600.242	1949.730

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		430.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		430.000
LOAN FUNDS
1] Secured Loans		720.089
2] Unsecured Loans		0.000
TOTAL BORROWING		720.089
DEFERRED TAX LIABILITIES		0.000
TOTAL		1150.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.417
Capital work-in-progress		922.566
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.924
	Sundry Debtors	0.000
	Cash & Bank Balances	24.577
	Other Current Assets	6.110
	Loans & Advances	75.409
Total Current Assets		216.020
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	113.937
	Other Current Liabilities	26.236
	Provisions	3.367
Total Current Liabilities		143.540
Net Current Assets		72.480
MISCELLANEOUS EXPENSES		102.626
TOTAL		1150.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	12.06.2010 to 31.03.2011	31.03.2010
	SALES
		Income	1249.403	357.525	--
		Other Income	1.287	0.195	--
		TOTAL (A)	1250.690	357.720	--
Less	EXPENSES
		TOTAL (B)	1092.946	367.041	--
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		157.744	(9.321)	--
Less	FINANCIAL EXPENSES (D)		200.074	96.576	--
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(42.330)	(105.897)	--
Less/ Add	DEPRECIATION/ AMORTISATION (F)		128.302	40.992	--
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(170.632)	(146.889)	--
Less	TAX (H)		0.446	0.065	--
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(171.078)	(146.954)	--
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(146.954)	0.000	--
	BALANCE CARRIED TO THE B/S		(318.032)	(146.954)	--
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1116.498	349.273	210.381
	IMPORTS
		Raw Materials	NA	16.914	14.136
		Capital Goods	NA	8.664	26.263
	TOTAL IMPORTS		NA	25.578	40.399
	Earnings/ (Loss) Per Share (Rs.)		(3.98)	(6.61)	--

KEY RATIOS

PARTICULARS		31.03.2012	12.06.2010 to 31.03.2011	31.03.2010
PAT / Total Income	(%)	(13.68)	(41.08)	--
Net Profit Margin (PBT/Sales)	(%)	(13.66)	(41.08)	--
Return on Total Assets (PBT/Total Assets}	(%)	(7.08)	(7.53)	--
Return on Investment (ROI) (PBT/Networth)		(1.52)	(0.52)	--
Debt Equity Ratio (Total Debt/Networth)		10.62	4.10	1.67
Current Ratio (Current Asset/Current Liability)		0.65	0.69	1.50

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	No
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10175735	10/09/2013 *	830,000,000.00	CANARA BANK	54-10-10-1/6, OVERSEAS BANK BRANCH, RESAPUVANIPALEM, VISAKHAPAT, VISAKHAPATNAM - 530020, ANDHRA PRADESH, INDIA	B86449113

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	12.06.2010 to 31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans repayable on demand	147.581	103.985
Total	147.581	103.985

Note:

The Registered Office of the company has been shifted from Plot No.211, Road No.14, Prashasan Nagar, Hyderabad – 5200033, Andhra Pradesh, India, to the present address w.e.f. 20.08.2008.

OPERATIONS

a. The company has completed trail production campaigns for several new products and also continued with commercial scale production of the products launched in the previous financial year. The recently constructed manufacturing facilities are operating smoothly with desired efficiencies. Sales are now showing an increasing trend and company has received adequate customer orders to fully utilize all production capacities that have been created over the last two years. Product qualities are fully meeting customer specifications.

b. As reported to you previously, the Company had started commercial production on 12th June, 2010. During the current financial year, the company has produced 1,665 MT of product as compared to 672 MT during the previous financial year.

FIXED ASSETS:

· Land

· Buildings

· Office building

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

PRESS RELEASE:

BAYER CROPSCIENCE TO SELL ITS GUJARAT UNIT TO DECCAN FINE CHEMICALS FOR $20 MILLION

Mon Sep 16, 2013

Agro-chemical firm Bayer CropScience Ltd has signed an agreement with Deccan Fine Chemicals (India) Private Limited to sell its Gujarat-based chemical manufacturing facility for a total consideration of Rs 1270.000 Millions, as per a stock exchange disclosure.

The company said this is part of a board decision taken on July 30, 2013 to sell either whole or in part the manufacturing unit and facilities of the Gujarat unit.

Bayer CropScience, part of Germany's Bayer AG, operates three business segments—crop protection, bioscience and environmental science—in India.

The company's share price closed at Rs 1506, down 1.07 per cent on the BSE in a weak Mumbai market on Friday.

Hyderabad-based Deccan Fine Chemicals had previously attracted investment from Japan's Mitsubishi Corporation and Belchim Management International Holdings, a private agrochemical company based in Belgium. Both the investors picked around 19.5 per cent stake each by investing Rs 167.000 Millions put together four years ago. The firm is led by DVS Narayana Raju.

In July this year, in the same space, Coromandel Agrico Private Limited entered into a definitive agreement to buy the agro formulation unit of Punjab Chemicals and Crop Protection Limited (PCCPL).

Last year in July, in a cross-border acquisition, agrochemicals major United Phosphorus Limited acquired Netherlands-based SD Agchem (Europe) NV, a wholly owned subsidiary of Mumbai-based PCCPL.

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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. 61.92
UK Pound	1	Rs. 99.60
Euro	1	Rs. 83.64

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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	--

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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.