MIRA INFORM REPORT

Report Date :

18.11.2013

IDENTIFICATION DETAILS

Name :	REX POLYEXTRUISION LIMITED
Registered Office :	Extension C. S. No.1077, ‘Kumar’s Plaza, 1^st Floor, North Shivaji Nagar – 416416, Sangli, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 [Consolidated]
Date of Incorporation :	16.02.1988
Com. Reg. No.:	11-046241
Capital Investment / Paid-up Capital :	Rs.21.300 Millions
CIN No.: [Company Identification No.]	U24304PN1988PLC046241
TAN No.: [Tax Deduction & Collection Account No.]	KLPR01439E
PAN No.: [Permanent Account No.]	AAACR9290E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Poly-Vinyl Chloride (PVC), High Density Polyethylene (HDPE) Pipes.
No. of Employees :	125 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 451000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an establishment company having satisfactory track record. Company has incurred loss form its operation. However, rating continue to derive strength from long track record of Rex Group, diversification in customer base of company and strong market position in niche segment of high density polyethylene pipes. Trade relation reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Ba

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB – [Long Term Bank Facilities]
Rating Explanation	Moderate credit quality and average credit risk.
Date	September 2013

Rating Agency Name	CARE
Rating	A3 [Short Term Bank Facilities]
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	September 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.

INFORMATION PARTED BY

Name :	Ms. Mrudula
Designation :	Finance Department
Contact No.:	91-233-2621845
Date :	13.11.2013

LOCATIONS

Registered Office :	Extension C. S. No.1077, ‘Kumar’s Plaza, 1^st Floor, North Shivaji Nagar – 416416, Sangli, Maharashtra, India
Tel. No.:	91-233-2621845 (4 lines)
Fax No.:	91-233-2621849
E-Mail :	san_rex@bsnl.in rexpipes@rediffmail.com dwc@rexpoly.co.in prestirex@rexpoly.co.in prestirex@rexpoly.co.in narmada@rexpoly.co.in ssdproj@rexpoly.co.in ssdlab@rexpoly.co.in accounts@rexpoly.co.in finance@rexpoly.co.in
Website :	www.rexpoly.co.in
Branch 1 :	REX Mumbai Unit no. 116, 1st Floor, Prabhadevi Unique Industrial Estate, Bombay Dying Compound, Twin Tower Lane, Prabhadevi, Mumbai - 400 025, Maharashtra, India
Tel. No.:	91-22-24383516
Fax No.:	91-22–24383519
E-Mail :	rex_mumbai@rexpoly.co.in
Branch 2 :	REX Delhi S 1 and 2, IInd Floor, Manish Highway Plaza -II, Plot no.25, Sector -20, Dwaraka, New Delhi - 110 075, Delhi, India
Tel. No.:	91 -11 -28050130
Fax No.:	91 -11 -28050131
E-Mail :	pancholia@rediffmail.com apancholia@gmail.com

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Sanjay Bhalchandra Dandekar
Designation :	Managing director
Address :	F-B2,Akashganaga Apt.Shiva,,Inagar(N), Sangli – 416416, Ivaharashtra, India
Date of Birth/Age :	19.02.1957
Date of Appointment :	26.06.1995
DIN No.:	00272581

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24304PN1988PLC046241	REX POLYEXTRUISION LIMITED	Managing director	26-06-95	26-06-95	-	Active	NO
2	U24119PN1993PTC074503	REX ORGANICS PVT LTD	Director	01-06-06	01-06-06	-	Active	NO
3	U25209MH2006PTC191332	ZENPLAS PIPES PRIVATE LIMITED	Director	31-07-06	31-07-06	-	Active	NO

Name :	Mr. Chandrashekhar Bhalchandra Dandekar
Designation :	Whole-time director
Address :	147.I,Paranjape Plots,Nr.Auto India, Sangli - 416416, Mahamshtra, India
Date of Birth/Age :	18.11.1963
Date of Appointment :	26.06.1995
DIN No.:	00272543

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24304PN1988PLC046241	REX POLYEXTRUISION LIMITED	Whole-time director	26-06-95	26-06-95	-	Active	NO
2	U24119PN1993PTC074503	REX ORGANICS PRIVATE LIMITED	Director	01-06-06	01-06-06	-	Active	NO
3	U25209MH2006PTC191332	ZENPLAS PIPES PRIVATE LIMITED	Director	31-07-06	31-07-06	-	Active	NO
4	U25191MH2008PTC184208	SHREE YOGESHWARI POLYTHYLENE PRODUCTS PRIVATE LIMITED	Director	02-07-08	02-07-08	21-03-11	Active	NO

Name :	Mr. Ravindra Gangadhar Bukate
Designation :	Director
Address :	388,Yashwantnagar, Sangli - 416416, Mahamshtra, India
Date of Birth/Age :	21-05-1955
Date of Appointment :	29.07.2005
DIN No.:	00272503
Name :	Mr. Mukul Pravinchandra Parikh
Designation :	Director
Address :	Sangli – 416416, Maharashtra, India
Date of Birth/Age :	15.06.1964
Date of Appointment :	25.08.2008
DIN No.:	02334296
Name :	Mr. Shankar Madhukar Shende
Designation :	Director
Address :	1061, Gaon Bahg, Kotnis Samadhi Mandir, Sangli-416416, Maharashtra, India
Date of Birth/Age :	26.06.1958
Date of Appointment :	10.11.2010
DIN No.:	00272634

KEY EXECUTIVES

Name :	Ms. Mrudula
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	78.54
Other top fifty shareholders	21.46
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Poly-Vinyl Chloride (PVC), High Density Polyethylene (HDPE) Pipes.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Tubes of Vinyl Plastics	391729.07
Other Tubes, Pipes and Hoses of Other Plastics	391729.09

Exports :

Products :

Finished Goods

Countries :

• Malaysia
• Middle East

Imports :

Products :

Raw Materials

Countries :

UAE

PRODUCTION STATUS [AS ON 31.03.2012]

Installed Capacity [as certified by the managing director]	5900 MT
Production	4287.677 K. Mtrs.

GENERAL INFORMATION

No. of Employees :

125 [Approximately]

Bankers :

Bank of Maharashtra, Sangli City Branch, Harbhat Road, Sangli-416416, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Car Loans	0.741	1.512
Term Loans	12.727	26.529
Deferred Payment Liabilities	13.319	3.900
Short Term Borrowings
Cash Credit Stated Bank of India	84.546	8.171
State Bank of India DCA	68.277	83.299
TOTAL	179.610	123.411

Banking Relations :	--
Auditors :
Name :	M. V. Thanedar and Company Chartered Accountant
Address :	Above Bata Shoe Mart, Main Road, Sangli – 416416, Maharashtra, India
PAN No:	ACZPT1235F
Other Related Parties :	Zenplas Pipes Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2130000	Equity Shares	Rs.10/- each	Rs.21.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET [CONSOLIDATED]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	21.300	21.300
(b) Reserves & Surplus	91.467	94.339
(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)	112.767	115.639
(3) Non-Current Liabilities
(a) long-term borrowings	26.787	31.941
(b) Deferred tax liabilities (Net)	15.457	11.905
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	42.244	43.846
(4) Current Liabilities
(a) Short term borrowings	212.043	132.824
(b) Trade payables	62.392	81.449
(c) Other current liabilities	9.332	18.714
(d) Short-term provisions	11.518	6.812
Total Current Liabilities (4)	295.285	239.799
TOTAL	450.296	399.284
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	117.592	102.927
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.000	1.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	7.660	7.103
(e) Other Non-current assets	3.468	1.587
Total Non-Current Assets	129.720	112.617
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	57.364	50.939
(c) Trade receivables	189.246	193.112
(d) Cash and cash equivalents	61.816	35.655
(e) Short-term loans and advances	12.150	6.961
(f) Other current assets	0.000	0.000
Total Current Assets	320.576	286.667
TOTAL	450.296	399.284

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		21.300
2] Share Application Money		0.000
3] Reserves & Surplus		78.206
4] (Accumulated Losses)		0.000
NETWORTH		99.506
LOAN FUNDS
1] Secured Loans		58.758
2] Unsecured Loans		32.341
TOTAL BORROWING		91.099
DEFERRED TAX LIABILITIES		9.562
TOTAL		200.167
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.083
Capital work-in-progress		0.000
INVESTMENT		1.194
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.054
	Sundry Debtors	124.716
	Cash & Bank Balances	20.953
	Other Current Assets	6.460
	Loans & Advances	15.305
Total Current Assets		218.488
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97.450
	Other Current Liabilities	11.148
	Provisions	0.000
Total Current Liabilities		108.598
Net Current Assets		109.890
MISCELLANEOUS EXPENSES		0.000
TOTAL		200.167

PROFIT & LOSS ACCOUNT [CONSOLIDATED]

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	474.258	403.851	388.989
		Other Income	22.244	10.287	50.421
		TOTAL (A)	496.502	414.138	439.410
Less	EXPENSES
		Cost of Materials Consumed	364.619	294.875
		Employee Benefit Expenses	17.658	11.567
		Other Expenses	79.443	58.271	399.227
		Extraordinary Items	0.590	0.315
		Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	(1.648)	2.925
		TOTAL (B)	460.662	367.953	399.227
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.840	46.185	40.183
Less	FINANCIAL EXPENSES (D)		24.729	17.652	11.893
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.111	28.533	28.290
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.952	7.336	6.062
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		3.159	21.197	22.228
Less	TAX (H)		6.031	6.564	6.497
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(2.872)	14.633	15.731
	Earnings / (Loss) Per Share (Rs.)		(1.35)	6.87	7.38

Particulars	31.03.2013
Sales Turnover [Approximately]	370.300

The above information has been parted by Ms. Mrudula.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.57)	3.53	3.58
Net Profit Margin (PBT/Sales)	(%)	0.67	5.25	5.71
Return on Total Assets (PBT/Total Assets}	(%)	0.70	5.32	7.23
Return on Investment (ROI) (PBT/Networth)		0.03	0.18	0.22
Debt Equity Ratio (Total Debt/Networth)		2.12	1.42	0.92
Current Ratio (Current Asset/Current Liability)		1.09	1.20	2.01

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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	10405435	29/12/2012	13,000,000.00	Bank of Maharashtra	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	B68767110
2	10265080	06/01/2011	32,700,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	B05633789
3	10234168	12/10/2011 *	140,000,000.00	STATE BANK OF INDIA	INDUSTRIAL ESTATE, NEAR RTO OFFICE, MADHAVANAGAR ROAD, SANGLI, SANGLI - 416416, MAHARASHTRA, INDIA	B25757774
4	10226287	24/05/2010	10,000,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	A88410261
5	10245140	20/09/2011 *	12,000,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	B22543888
6	10152075	24/05/2010 *	7,500,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	A88409487
7	10152076	24/05/2010 *	26,500,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	A88409859
8	10140865	24/05/2010 *	48,000,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	A88408919
9	80017825	08/06/2012 *	96,000,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	B42252593
10	80017848	29/08/2002	7,500,000.00	BANK OF MAHARASHTRA	SANGLI CITY BRANCH, HARBHAT ROAD, SANGLI - 416416, MAHARASHTRA, INDIA	-
* Date of charge modification

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowings
Loans and Advances From Related Parties	58.695	40.284
Dealer Deposit	0.525	1.070
TOTAL	59.220	41.354

FIXED ASSETS:

• Plot
• Building
• Machinery
• Electric fitting
• Furniture
• Computers
• Cars

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] 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.63.06
UK Pound	1	Rs.101.15
Euro	1	Rs.84.95

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.