MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	KUTCH CHEMICAL INDUSTRIES LIMITED
Registered Office :	IInd Floor, MPL No. 8750, Plot No. 3, Block No. 4, D B Gupta Road, Paharganj, New Delhi – 110055
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.06.2002
Com. Reg. No.:	55-115757
Capital Investment / Paid-up Capital :	Rs.260.009 Millions
CIN No.: [Company Identification No.]	U24114DL2002PLC115757
TAN No.: [Tax Deduction & Collection Account No.]	DELK05171F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 3000000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Financials of 2011, 2012 and 2013 are not available with us. From available record, company is performing well. Business is active. In absence of latest financials, payment terms are reported to be unknown. The company can be considered for business dealing 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 credit quality and average credit risk.
Date	27.09.2013

Rating Agency Name	CRISIL
Rating	Short term rating= A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	27.09.2013

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 DENIED

Management Non Co-operative (91-11-26193708)

LOCATIONS

Registered Office :	IInd Floor, MPL No. 8750, Plot No. 3, Block No. 4, D B Gupta Road, Paharganj, New Delhi – 110 055, India
Tel. No.:	91-11-26193708
Mobile No.:	91-9558813718 (Mr. Mundar)
Fax No.:	Not Available
E-Mail :	bs@kcil.co.in kcg@kcil.co.in svarma@kcil.co.in sunita_and_chadha2003@yahoo.co.in
Website :	www.kcil.co.in
Location :	Owned
Head Office :	F-108, Mohta Building, 4, Bhikaji Cama Place, New Delhi – 110066, India
Tel. No.:	91-11-26193708
Fax No.:	91-11-26193708
Corporate Office :	20/21, Sara Niwas, Harinagar Co-operative Society, Gotri Road, Baroda – 390 007, Gujarat, India
Tel. No.:	91-265-2397013 / 2396498 / 2396751
Fax No.:	91-265-2397245
E-Mail :	slg@kcil.co.in, knmehta@kcil.co.in
Factory :	Plot No.165-166-167-168, 171/172, Village Padana, Near Aquagel Chemicals, Gandhidham, Kutch, Gujarat, India
Branch Office 1 :	403-404, ATP Arcade, Near National Handloom, C. G. Road, Ahmedabad – 380 006 Gujarat, India
Tel. No.:	91-79-26425094/ 26425095/ 26425096
E-Mail :	sp@kcil.co.in
Branch Office 2 :	703, Dalamal Towers, Nariman Point, Mumbai – 380 021, Maharashtra, India
Tel. No.:	9122-22875274
E-Mail :	nvora@kcil.co.in

DIRECTORS

AS ON 27.09.2011

Name :

Mr. Shivlal Goel

Designation :

Managing Director

Address :

2, Sriram Society, Near Vaibhav Appartments, Gotri Road, Baroda, Gujarat, India

Date of Birth/Age :

04.03.1960

Date of Appointment :

01.04.2009

DIN No.:

01057339

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	U70109DL1989PTC036212	AAKAKSH PROPERTIES PRIVATE LIMITED	Director	01/10/1989	01/10/1989	Active	NO
2	U17111DL1987PLC029986	I S DYESTUFF INDUSTRIES LIMITED	Managing director	01/04/2006	01/04/2001	Active	NO
3	U24114DL2002PLC115757	KUTCH CHEMICAL INDUSTRIES LIMITED	Managing director	01/04/2009	10/06/2002	Active	NO
4	U24242DL1991PTC044555	VALLABH CHEMICALS PRIVATE LIMITED	Director	21/02/2005	21/02/2005	Active	NO
5	U24117DL1998PTC096701	PANOLI INTERMEDIATES (INDIA) PRIVATE LIMITED	Director	15/06/2005	15/06/2005	Active	NO
6	U45208GJ2006NPL048978	NANDESARI WATER AND UTILITIES LIMITED	Managing director	26/08/2009	01/09/2006	Active	NO
7	U74999GJ1997PLC032975	NANDESARI ENVIRONMENT CONTROLS LIMITED	Director	25/06/2007	25/06/2007	Active	NO
8	U29308GJ1971PTC001944	STANDARD ELECTRONICS INDUSTRIES GUJARAT PRIVATE LIMITED	Director	10/09/2007	10/09/2007	Active	NO
9	U24100DL2007PLC168208	RUCHI PETRO CHEMICALS LIMITED	Additional director	16/04/2008	16/04/2008	Active	NO
10	U23101DL2009PLC190146	BHARUCH PETROCHEMICALS LIMITED	Director	11/05/2009	11/05/2009	Active	NO
11	U24100DL2010PLC205663	SHIV CHLORO ALKALIES LIMITED	Director	12/07/2010	12/07/2010	Active	NO
12	U63090DL2010PTC200976	NCR LOGISTICS (INDIA) PRIVATE LIMITED	Director	30/09/2011	16/08/2010	Active	NO
13	U24100DL2013PTC256345	SHREE PADMA INDUSTRIES PRIVATE LIMITED	Director	08/08/2013	08/08/2013	Active	NO

Name :

Mr. Kailash Chander Goel

Designation :

Director

Address :

43, Ardhana Enclave, R.K. Puram, New Delhi, India

Date of Birth/Age :

08.04.1962

Qualification :

Graduate

Date of Appointment :

30.12.2003

DIN No.:

00146921

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	U17111DL1987PLC029986	I S DYESTUFF INDUSTRIES LIMITED	Director	18/05/1992	18/05/1992	Active	NO
2	U74900DL1987PTC028378	MEXIT (INDIA) PRIVATE LIMITED	Director	19/03/2001	19/03/2001	Active	NO
3	U24114DL2002PLC115757	KUTCH CHEMICAL INDUSTRIES LIMITED	Director	30/12/2003	30/12/2003	Active	NO
4	U74899DL1991PTC044556	MAHAMAYA CHEMICALS PRIVATE LIMITED	Director	21/02/2005	21/02/2005	Active	NO
5	U24100DL2007PLC168208	RUCHI PETRO CHEMICALS LIMITED	Additional director	16/04/2008	16/04/2008	Active	NO
6	U23101DL2009PLC190146	BHARUCH PETROCHEMICALS LIMITED	Director	11/05/2009	11/05/2009	Active	NO
7	U24100DL2010PLC205663	SHIV CHLORO ALKALIES LIMITED	Director	12/07/2010	12/07/2010	Active	NO

Name :

Mr. Pirag Goel

Designation :

Director

Address :

43, Ardhana Enclave, R.K. Puram, New Delhi, India

Date of Birth/Age :

24.06.1943

Qualification :

Graduate

Date of Appointment :

06.11.2003

DIN No.:

02496496

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	U45201DL1991PTC046087	KRISAM PROPERTIES PRIVATE LIMITED	Director	08/05/1992	08/05/1992	Active	NO
2	U17111DL1987PLC029986	I S DYESTUFF INDUSTRIES LIMITED	Director	18/05/1992	18/05/1992	Active	NO
3	U24117DL1998PTC096701	PANOLI INTERMEDIATES (INDIA) PRIVATE LIMITED	Director	15/10/1998	15/10/1998	Active	NO
4	U24114DL2002PLC115757	KUTCH CHEMICAL INDUSTRIES LIMITED	Director	06/11/2003	06/11/2003	Active	NO
5	U74899DL1991PTC044553	BADRI CHEMICALS PRIVATE LIMITED	Director	18/02/2005	18/02/2005	Active	NO
6	U70109DL1989PTC036211	KARNA PROPERTIES PRIVATE LIMITED	Director	12/09/2011	12/09/2011	Active	NO
7	U24114DL2011PLC222806	GANDHAR PETROCHEMICALS LIMITED	Additional director	15/09/2012	15/09/2012	Active	NO

Name :

Mr. Jai Prakash Goel

Designation :

Whole-time director

Address :

6 Krushna Sray, Opposite Rokad Nath Society, Gotri Road, Baroda, Gujarat, India

Qualification :

Graduate

Date of Appointment :

01.04.2009

DIN No.:

01804891

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	U24114DL2002PLC115757	KUTCH CHEMICAL INDUSTRIES LIMITED	Whole-time director	01/04/2009	30/12/2003	Active	NO
2	U74899DL1991PTC044554	MOHINI CHEMICALS PRIVATE LIMITED	Director	21/02/2005	21/02/2005	Active	NO
3	U24100DL2007PLC168208	RUCHI PETRO CHEMICALS LIMITED	Additional director	16/04/2008	16/04/2008	Active	NO
4	U23101DL2009PLC190146	BHARUCH PETROCHEMICALS LIMITED	Director	11/05/2009	11/05/2009	Active	NO
5	U24100DL2010PLC205663	SHIV CHLORO ALKALIES LIMITED	Director	12/07/2010	12/07/2010	Active	NO

MAJOR SHAREHOLDERS

NOTE: Shareholding Details List Attached.

Equity Share Break up (Percentage of Total Equity)

AS ON 27.09.2011

Category	Percentage
Bodies corporate	59.47
Directors or relatives of Directors	40.53
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, MID Corporate Group Industrial Finance Branch, Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat, India

· Bank of Baroda, Corporate Financial Services Branch, Sayaji Ganj, R C Dutt Road, Alka Puri, Baroda - 390005, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
Loans and Advances from Banks	830.554	804.906
Total	830.554	804.906
From Bank of Baroda (Secured against equitable mortgage of land, building, plant and machinery and hypothecation of goods/stocks, book debts, stores and spares belonging to the company and lying in the premises, godown and at factory site of the company and extension of charge on current assets, both present and future

Banking Relations :	--
Auditors :
Name :	Sunita and Chadha Chartered Accountants
Address :	Flat No. 77, Bhagat Singh Market, New Delhi – 110001, India
Tel. No.:	91-11-23348045
Fax No.:	91-11-23346370
E-Mail :	Sunita_and_chadha2003@yahoo.co.in Sac_ca1982@yahoo.com
PAN.:	AABFS6939F

CAPITAL STRUCTURE

AS ON 27.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs. 100/- each	Rs.350.000 Millions

Issued Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 100/- each	Rs.300.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2696033	Equity Shares	Rs. 100/- each	Rs.269.603 Millions

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.100/- each	Rs.350.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.100/- each	Rs.300.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2600089	Equity Shares	Rs.100/- each	Rs.260.009 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		260.009	260.009	260.009
2] Share Application Money		6.622	6.622	6.622
3] Reserves & Surplus		498.461	385.395	282.488
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		765.092	652.026	549.119
LOAN FUNDS
1] Secured Loans		830.554	804.906	695.351
2] Unsecured Loans		349.641	198.570	202.022
TOTAL BORROWING		1180.195	1003.476	897.373
DEFERRED TAX LIABILITIES		100.693	99.745	60.750
TOTAL		2045.980	1755.247	1507.242
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1142.738	1138.343	1018.672
Capital work-in-progress		43.030	1.933	0.000
Advances against capital goods		13.856	0.000	0.000
INVESTMENT		1.732	0.492	0.483
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	374.261	317.107	146.956
	Sundry Debtors	925.461	527.340	609.680
	Cash & Bank Balances	112.273	53.232	18.195
	Other Current Assets	20.058	23.634	13.114
	Loans & Advances	109.309	178.297	129.199
	Goods in Transit	64.032	0.302	3.919
Total Current Assets		1605.394	1099.912	921.063
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	632.848	379.505	306.059
	Other Current Liabilities	108.278	103.804	116.562
	Provisions	20.000	2.836	11.423
Total Current Liabilities		761.126	486.145	434.044
Net Current Assets		844.268	613.767	487.019
MISCELLANEOUS EXPENSES		0.356	0.712	1.068
TOTAL		2045.980	1755.247	1507.242

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3011.123	2880.841	3110.914
		Other Income	4.359	5.749	32.360
		TOTAL (A)	3015.482	2886.590	3143.274
Less	EXPENSES
		Manufacturing Expenses	2345.627	2375.750	2678.647
		Administrative Expenses	153.160	204.838	148.132
		Increase/Decrease in Inventories	83.662	(143.032)	(43.944)
		TOTAL (B)	2582.449	2437.556	2782.835
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		433.033	449.034	360.439
Less	FINANCIAL EXPENSES (D)		100.057	121.176	88.222
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		332.976	327.858	272.217
Less/ Add	DEPRECIATION/ AMORTISATION (F)		165.974	162.095	113.098
	PROFIT BEFORE TAX (E-F) (G)		167.002	165.763	159.119
Less	TAX (H)		53.936	62.855	53.889
	PROFIT AFTER TAX (G-H) (I)		113.066	102.908	105.230
	BALANCE CARRIED TO THE B/S		113.066	102.908	105.230
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	51.968	197.678	243.588
	TOTAL EARNINGS		51.968	197.678	243.588
	IMPORTS
		Raw Materials	10492.190	681.871	400.264
		Capital Goods	1.835	24.059	2.845
	TOTAL IMPORTS		10494.025	705.930	403.109
	Earnings Per Share (Rs.)		43.49	39.58	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.75	3.57	3.35
Net Profit Margin (PBT/Sales)	(%)	5.55	5.75	5.11
Return on Total Assets (PBT/Total Assets}	(%)	6.08	7.41	8.20
Return on Investment (ROI) (PBT/Networth)		0.22	0.25	0.29
Debt Equity Ratio (Total Debt /Networth)		1.54	1.54	1.63
Current Ratio (Current Asset/Current Liability)		2.11	2.26	2.12

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE: Registered office address of the company 8705/15, D.B. Gupta Road, Pahar Ganj, New Delhi – 110 001, India has been shifted to the present address w.e.f. 20.06.2010

UNSECURED LOANS:

(Rs. In Millions)

Particular	As on 31.03.2010	As on 31.03.2009
From Banks	150.000	0.000
From Others	199.641	198.570
Total	349.641	198.570

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10026565	23/03/2013 *	1,066,400,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA – 390 007, GUJARAT, INDIA	B74971045
2	90044845	01/08/2005	466,700,000.00	BANK OF BARODA	INTERNATIONAL BUSINES BRANCH, SURAJ PLAZA, SAYAJI GUNG, BARODA – 390 005, GUJARAT, INDIA	-
3	80022528	16/11/2011 *	2,129,200,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES BRANCH, R C DUTT ROAD, ALKA PURI, BARODA – 390 005, GUJARAT, INDIA	B27449834

* Date of charge modification

FIXED ASSETS:

· Land

· Furniture and Fixtures

· Vehicles

· Computers

· Office Equipments

· Air Conditioner

· Plant and Machinery

· Buildings

· lab Equipments

· Office Apartments

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.62.56
UK Pound	1	Rs.100.77
Euro	1	Rs.84.71

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.