MIRA INFORM REPORT

Report Date :

22.11.2013

IDENTIFICATION DETAILS

Name :	RAJASTHAN ANTIBIOTICS LIMITED (w.e.f. 06.03.1989)
Formerly Known As :	CEPHAM MEDICAL LIMITED CEPHAM MEDICAL LEASING LIMITED
Registered Office :	M-134, 2nd Floor, Opposite Super Bazaar, Connaught Circus, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	17.03.1986
Com. Reg. No.:	55-023616
Capital Investment / Paid-up Capital :	Rs. 52.758 Millions
CIN No.: [Company Identification No.]	U24231DL1986PLC023616
TAN No.: [Tax Deduction & Collection Account No.]	DELR11698B
PAN No.: [Permanent Account No.]	AAACR0925L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Bulk Drugs and also Manufacturing cum Trading of Herbal Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1420000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration the above average financial profile of the company as reflected by healthy growth in turnover, profitability margins, low gearing ratio and satisfactory liquidity profile. The rating also factors in the long experience of the promoters in the pharmaceutical industry and diversified product mix and low client concentration risk. Trade relations are reported to be fair. Business is active. Payment terms are usually correct. The company can be considered for business dealings 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

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	CARE
Rating	Long term Bank facilities : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 08, 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 :	M-134, 2nd Floor, Opposite Super Bazaar, Connaught Circus, New Delhi – 110001, India
Tel. No.:	91-11-43561740/ 41/ 42/ 47666106/ 47666111/ 26616318
Fax No.:	91-11-43561743
E-Mail :	chawla.jp@gmail.com info@jpc.co.in secretarial99@gmail.com info@cebonindia.com sales@rallife.com
Website :	http://www.rallife.com
Corporate Office :	M-39, Connaught Circus, New Delhi – 110001, India
Factory :	Plot A-619 and 630, RICO Industrial Area, Bhiwadi – 301019, District Alwar, Rajasthan, India
Tel No.:	91-1493-222278/ 512251/ 512378

DIRECTORS

AS ON 20.09.2013

Name :

Mr. Ashish Pruthi

Designation :

Managing director

Address :

M – 255, Greater Kailash – II, New Delhi – 110048, India

Date of Birth/Age :

19.08.1976

Qualification :

BBA (UK), PGMS (UK)

Date of Appointment :

01.04.2010

PAN No.:

AMIPP4490P

DIN No.:

01182469

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15203CH1999PTC023131	RENESA EXPORTS PRIVATE LIMITED	Director	03/12/1999	03/12/1999	29/10/2010	Active	NO
2	U15203DL2005PTC140011	KRISH NUTRIENT PRIVATE LIMITED	Director	25/08/2005	25/08/2005	18/02/2011	Active	NO
3	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Managing director	01/04/2010	01/01/2007	-	Active	NO
4	U52310DL2009PTC189924	AMOS BIOSCIENCES PRIVATE LIMITED	Director	01/05/2009	01/05/2009	01/07/2009	Active	NO
5	U52300DL2009PTC189964	MANVIN HEALTH PRIVATE LIMITED	Director	10/01/2011	04/05/2009	-	Active	NO
6	U52100DL2009PTC194061	ARVIV LIFESCIENCES PRIVATE LIMITED	Director	08/09/2009	08/09/2009	-	Active	NO
7	U52100DL2010PTC201633	REVIVAA BIOTECH PRIVATE LIMITED	Director	16/04/2010	16/04/2010	-	Active	NO
8	U40101CH2010PTC032005	GRD POWER PRIVATE LIMITED	Additional director	13/09/2010	13/09/2010	31/07/2011	Active	NO
9	U52602DL2009PTC192681	BARFANI BABA PHARMA PRIVATE LIMITED	Director	10/01/2011	10/01/2011	-	Active	NO
10	U24233DL2013PTC247115	VIVAAR EXIM PRIVATE LIMITED	Director	07/01/2013	07/01/2013	-	Active	NO

Name :

Mr. Rakesh Kumar Girdhar

Designation :

Director

Address :

D-15/4, First Floor, Ardee City, Gurgaon – 122003, Haryana, India

Date of Birth/Age :

30.11.1962

Qualification :

B. Sc

Date of Appointment :

01.11.2008

PAN No.:

AHKPG4039N

DIN No.:

02380490

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	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Director	01/11/2008	01/11/2008	Active	NO
2	U52100DL2010PTC201633	REVIVAA BIOTECH PRIVATE LIMITED	Director	16/04/2010	16/04/2010	Active	NO
3	U24232CH2012PTC033660	QUAD LIFESCIENCES PRIVATE LIMITED	Director	23/09/2013	19/11/2012	Active	NO

Name :

Mr. Gian Chand Sharma

Designation :

Director

Address :

Village and Post Office Gandhir Bilaspur – 174029, Himachal Pradesh, India

Date of Birth/Age :

20.09.1969

Qualification :

Doctorate in Organic Chemistry

Date of Appointment :

20.09.2012

PAN No.:

ACTPS5053Q

DIN No.:

00549491

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231HP2006PTC030541	BILCHEM BIOTEC PRIVATE LIMITED	Director	04/08/2006	04/08/2006	26/10/2010	Active	YES
2	U24232CH2010PTC032413	GEE CEE LABS PRIVATE LIMITED	Director	19/08/2010	19/08/2010	-	Active	NO
3	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Director	20/09/2012	12/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vipul Garg
Designation :	Secretary
Address :	88/3, Near Sadanand School, Krishan Pura, Panipat – 132103, Haryana, India
Date of Birth/Age :	23.08.1987
Date of Appointment :	06.09.2010
PAN No.:	ANIPG8113B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.09.2013

Names of Shareholders	No. of Shares
Arviv Lifesciences Private Limited, India	1344684
Ashish Pruthi	900
Radhika Pruthi	500
Manvin Heath Private Limited, India	1343184
Barfani Baba Pharma Private Limited, India	2583397
Ashish Pruthi & Sons (HUF)	100
Meera Pruthi	3000
Total	5275765

AS ON 20.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.91
Directors or relatives of directors	0.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Bulk Drugs and also Manufacturing cum Trading of Herbal Products.

Products/ Services :

ITC Code No.	Product Descriptions
99884300	Ampicillin Sodium Sterile, Piperacillin and tajobactum Sodium Sterile, pantoparazole sodium sterile and others

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Bikaner & Jaipur, 16/67-68, Faiz Road, Karol Bagh, New Delhi - 110005, India

State Bank of Hyderabad, Flat No. 110, Suryakiran Building, 19 KG Marg, New Delhi - 110001, India

State Bank of Patiala, 2nd Floor, Chandralok Building, 36,Janpath, New Delhi - 110001, India

Industrial Finance Corporation of India, Bank of Baroda Building, 16,Sansad Marg, New Delhi - 110001, India

IFCI Limited, IFCI Tower, Nehru Place, New Delhi - 110019, India

IDBI Limited, Jeevan Nidhi Building, LIC Complex, Ambedkar Circle, Bhawani Singh Road, Jaipur - 302001, Rajasthan, India

Industrial Development Bank of India, IDBI Towers, Cuffe Parade, Colaba, Bombay - 400005, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	33.870	2.353
Other loans and advances	5.084	4.147
SHORT TERM BORROWINGS
Loans repayable on demand from banks	163.964	145.873
Total	202.918	152.373

Banking Relations :	--
Auditors :
Name :	J P Chawla and Company Chartered Accountants
Address :	43, Backlane, Daryaganj, New Delhi – 110002, India
Income-tax PAN of auditor or auditor's firm :	AAAFJ2213J
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Quad Lifesciences Private Limited [U24232CH2012PTC033660] Cebon India Limited [U24232HR1988PLC030362] Cepham Milk Specialities Limited [L15203PB1991PLC019162] Cepham Organics Limited [U24239DL1984PLC018500] Cepham Laboratories Limited [U24230DL1977PLC008694] Cepham Agencies Private Limited [U24232DL1983PTC015187] Revivaa Biotech Private Limited [U52100DL2010PTC201633] Arviv Lifesciences Private Limited [U52100DL2009PTC194061] Manvin Health Private Limited [U52300DL2009PTC189964] Barfani Baba Pharma Private Limited [U52602DL2009PTC192681] Amos Biosciences Private Limited [U52310DL2009PTC189924] D. P. Towers Private Limited [U45201DL1987PTC027884] Vivaar Exim Private Limited [U24233DL2013PTC247115]

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions
600,000	Preference Shares	Rs. 100/- each	Rs. 60.000 Millions
	Total		Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,275,765	Equity Shares	Rs. 10/- each	Rs. 52.758 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	52.758	52.758	52.758
(b) Reserves & Surplus	303.470	240.484	177.484
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	356.228	293.242	230.242
(3) Non-Current Liabilities
(a) long-term borrowings	38.954	6.500	3.642
(b) Deferred tax liabilities (Net)	12.813	0.000	0.000
(c) Other long term liabilities	0.864	2.963	0.775
(d) long-term provisions	4.959	2.814	0.000
Total Non-current Liabilities (3)	57.590	12.277	4.417
(4) Current Liabilities
(a) Short term borrowings	163.964	145.873	63.385
(b) Trade payables	29.429	7.868	26.535
(c) Other current liabilities	72.503	33.995	11.157
(d) Short-term provisions	8.632	13.496	13.468
Total Current Liabilities (4)	274.528	201.232	114.545
TOTAL	688.346	506.751	349.204
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	270.376	104.118	78.748
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	31.611	41.481	23.321
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	1.005	1.536
(d) Long-term Loan and Advances	8.675	35.470	7.852
(e) Other Non-current assets	9.314	19.769	18.970
Total Non-Current Assets	319.976	201.843	130.427
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	128.586	98.951	67.564
(c) Trade receivables	179.799	174.804	84.904
(d) Cash and cash equivalents	29.151	20.455	33.501
(e) Short-term loans and advances	30.834	10.698	32.808
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	368.370	304.908	218.777
TOTAL	688.346	506.751	349.204

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	1115.877	920.163	784.657
		Other Income	8.559	3.083	2.650
		TOTAL (A)	1124.436	923.246	787.307
Less	EXPENSES
		Cost of materials consumed	668.259	662.930	554.933
		Purchases of stock-in-trade	96.724	9.302	6.792
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(27.835)	(21.949)	(22.407)
		Employee benefit expense	21.769	16.408	17.255
		Other expenses	226.431	145.126	131.107
		Prior period items	1.680	0.507	0.871
		TOTAL (B)	987.028	812.324	688.551
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		137.408	110.922	98.756
Less	FINANCIAL EXPENSES (D)		29.987	14.170	6.647
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		107.421	96.752	92.109
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.538	9.943	8.367
	PROFIT BEFORE TAX (E-F) (G)		92.883	86.809	83.742
Less	TAX (H)		33.225	23.183	21.222
	PROFIT AFTER TAX (G-H) (I)		59.658	63.626	62.520
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	299.954	169.166	124.224
	Earnings Per Share (Rs.)		11.31	12.06	11.85

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.31	6.89	7.94
Net Profit Margin (PBT/Sales)	(%)	8.32	9.43	10.67
Return on Total Assets (PBT/Total Assets}	(%)	14.14	18.70	25.82
Return on Investment (ROI) (PBT/Networth)		0.26	0.30	0.36
Debt Equity Ratio (Total Debt/Networth)		0.57	0.52	0.29
Current Ratio (Current Asset/Current Liability)		1.34	1.52	1.91

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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	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	10410254	14/02/2013	1,410,000.00	STATE BANK OF BIKANER & JAIPUR	16/67-68, FAIZ ROAD, KAROL BAGH, NEW DELHI - 110005, INDIA	B70245279
2	10379988	13/09/2012	2,242,000.00	STATE BANK OF BIKANER & JAIPUR	16/67-68, FAIZ ROAD, KAROL BAGH, NEW DELHI - 110005, INDIA	B59481838
3	10197763	04/01/2010	1,300,000.00	STATE BANK OF BIKANER AND JAIPUR	16/67-68, FAIZ ROAD, KAROL BAGH, NEW DELHI - 110005, INDIA	A77465466
4	10174483	24/05/2013 *	478,800,000.00	STATE BANK OF BIKANER & JAIPUR	16/67-68, FAIZ ROAD, KAROL BAGH, NEW DELHI - 110005, INDIA	B77245926

* Date of charge modification

COMPANIES BACKGROUND

Subject is a limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in Manufacturing of Bulk Drugs and Manufacturing cum trading of Herbal Products.

MANAGEMENT OVERVIEW

· Sales and Exports

The company has recorded sales revenue and other income of Rs. 1124.436 Millions against Rs. 923.246 Millions in the previous year. It represents a growth of 21.79% over preceding year. Further the company has registered an export of Rs. 299.954 Millions as compared to Rs. 169.166 Millions in the previous year registering a growth of 77.31% over preceding years. The Management’s aggressive strategy of focusing on improving business and operational performance has borne fruits. The operations of the company are steadily improving and company is looking forward to healthy revenue and numbers profit in the coming years.

· Profitability

The company earned Profit before tax of Rs. 92.883 Millions against Rs. 86.809 Millions earned in the previous financial year. After providing for taxation of Rs. 33.225 Millions (previous year Rs. 22.653 Millions), net profit worked out to Rs. 59.658 Millions as compared to Rs. 63.626 Millions in the previous year. The company is steadily moving on high growth trajectory and shall continue its journey of profitable growth.

INFRASTRUCTURE EXPANSION

During the year, the company took an expansion project and modernisation of existing facilities in tandem with its growth plans:

· Expansion at Bhiwadi Plant

The Company has successfully completed the formulation project of Rs. 75.000 Millions, for which a Term Loan of Rs. 48.800 Millions has been arranged from the Banks. The commercial production of the formulation plant has already been started. Directors are on the opinion that sale and profits of the company will tremendously increased with the implementation of the formulation plant.

· In-House Research and Development

The company has already set up a complete In-House R and D unit at its Bhiwadi Plant, for which the Ministry of Science and Technology, Government of India has accorded its recognition on 03rd August, 2012. The total Expenditure on R and D during the year was Rs. 19.666 Millions.

FIXED ASSETS:

· Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Office equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.89
UK Pound	1	Rs. 101.14
Euro	1	Rs. 84.42

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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		48

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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