MIRA INFORM REPORT

Report Date :

28.11.2013

IDENTIFICATION DETAILS

Name :	SIDMAK LABORATORIES (INDIA) PRIVATE LIMITED
Registered Office :	National Highway No. 8, Abrama, P.O. Box 121, Valsad – 396001, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.05.1983
Com. Reg. No.:	04-006157
Capital Investment / Paid-up Capital :	Rs. 18.085 Millions
CIN No.: [Company Identification No.]	U24230GJ1983PTC006157
TAN No.: [Tax Deduction & Collection Account No.]	SRTS03774B
PAN No.: [Permanent Account No.]	AADCS9914R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Products.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 1300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having a moderate track record. There appear losses incurred by the company from its operational activities during the financial year 2013. However, trade relations are fair. Business is active. Payment terms 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.

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.

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 :	Mr. Satish Desai
Designation :	Accounts Manager
Contact No.:	91-2632-399000
Date :	26.11.2013

LOCATIONS

Registered Office / Factory 1 :	National Highway No. 8, Abrama, P.O. Box 121, Valsad – 396001, Gujarat, India
Tel. No.:	91-2632-226827/ 226823/ 399000
Fax No.:	91-2636-226828/ 399133
E-Mail :	sunilpatel@sidmak.com info@sidmak.com
Website :	www.sidmak.com
Location :	Owned
Factory 2 :	Plot No. 20, Pharma City, Salaqui Industrial Area , Salaqui, Vikas Nagar, Dehradun – 248197, Uttarakhand, India
Tel. No. :	91-135-2698508/ 2698509/ 6540167/ 3005201
Fax No. :	91-165-2698510
Mumbai Office :	302, B-Wing, Western Edge-II, Off Western Express Highway, Magathane, Borivali (East), Mumbai - 400101, Maharashtra, India
Tel. No. :	91-22-28546922/ 28546936
Fax No. :	91-22-28540237
Branch Office :	Office No. 503 and 504, 5^th Floor, Corporate Centre, Niemal Lifestyle, LBS Marg, Mulund (West), Mumbai, Maharashtra, India

DIRECTORS

AS ON 14.08.2013

Name :	Mr. Padmanabh Ramchandra Barpande
Designation :	Director
Address :	Saubhagya Society, Block 51, 5^th Floor, A-Wing, Jeevan Vikas Kendra Marg, Andheri (East), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	29.11.1947
Date of Appointment :	31.03.2011
DIN No.:	00016214
Name :	Mr. Dhananjay Thakorbhai Desai
Designation :	Director
Address :	Madanwad, Valsad-396001, Gujarat, India
Date of Birth/Age :	23.08.1942
Date of Appointment :	06.02.2008
DIN No.:	00049574
Name :	Mr. Shivkumar Dhalumal Israni
Designation :	Director
Address :	24, Sukhmani – A, 4^th Floor, Bomanji Petit Road, Warden Road, Mumbai-400036, Maharashtra, India
Date of Birth/Age :	17.09.1949
Date of Appointment :	06.02.2008
DIN No.:	00125532
Name :	Dwarko Topandas Khilnani
Designation :	Director
Address :	6/21, Borla Society, Dr. C G Road, Chembur, Mumbai-700074, Maharashtra, India
Date of Birth/Age :	11.11.1943
Date of Appointment :	06.02.2008
DIN No.:	01824655
Name :	Mr. Vinodkumar Topa
Designation :	Whole-time director
Address :	Row House No. 1, Hill Garden, Chitalsar, Manpaada, Thane – 400607, Maharashtra, India
Date of Birth/Age :	25.09.1949
Date of Appointment :	06.03.2009
DIN No.:	02585761

KEY EXECUTIVES

Name :	Mr. Satish Desai
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.08.2013

Names of Shareholders	No. of Shares
Vinayak Tulsidas Bhalani	316490
Sanghvi Finance Private Limited, India	167930
Package Investrade Private Limited, India	167930
M. J. Pharmaceuticals Limited, India	167930
Sholapur Organics Private Limited, India	167930
Jeevanrekha Investrade Private Limited, India	167930
Bonwire Exports Private Limited, India	167930
Nirmit Exports Private Limited, India	167954
Nirmala Bhalani	316490
Total	1808514

AS ON 14.08.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	65.00
Directors or relatives of directors	35.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceutical Products.
Exports :
Products :	Finished Goods
Countries :	· UK European Countries
Imports :
Products :	Raw Material
Countries :	· Germany
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

· Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India

Axis Bank Limited, Doctor House, Halar Road, Valsad - 396001, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Long term maturities of Operating Lease Obligation	0.051	0.661
SHORT TERM BORROWINGS
Loan from Bank – Repayable on Demand [Secured by way of hypothecation of entire current assets including inventories and book debts (present and future)]	60.732	25.632
Total	60.783	26.293

Banking Relations :	--
Auditors :
Name :	Valia and Timbadia Chartered Accountants
Address :	32, Trinity Chambers, 117 Bora Bazar Street, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22692624/ 22699664
Fax No.:	91-22-22641937
E-Mail :	Valtim09@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAAFV2769H
Enterprises over which key management personnel exercise control :	Shah Prints Private Limited (Upto 20.03.2013)

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,808,514	Equity Shares	Rs. 10/- each	Rs. 18.085 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	18.085	18.085	18.085
(b) Reserves & Surplus	306.856	329.722	311.418
(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)	324.941	347.807	329.503
(3) Non-Current Liabilities
(a) long-term borrowings	530.921	381.281	24.469
(b) Deferred tax liabilities (Net)	31.143	25.096	35.078
(c) Other long term liabilities	21.068	21.068	21.068
(d) long-term provisions	0.000	0.000	2.855
Total Non-current Liabilities (3)	583.132	427.445	83.470
(4) Current Liabilities
(a) Short term borrowings	63.482	25.632	5.643
(b) Trade payables	61.799	65.289	70.720
(c) Other current liabilities	68.127	55.700	489.840
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	193.408	146.621	566.203
TOTAL	1101.481	921.873	979.176
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	670.690	637.631	478.560
(ii) Intangible Assets	0.007	0.013	0.020
(iii) Capital work-in-progress	130.141	12.320	45.164
(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	0.000	0.000
(d) Long-term Loan and Advances	27.474	26.038	38.980
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	828.312	676.002	562.724
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	104.048	82.627	75.726
(c) Trade receivables	82.147	95.209	78.900
(d) Cash and cash equivalents	20.726	32.032	244.122
(e) Short-term loans and advances	65.905	35.314	17.588
(f) Other current assets	0.343	0.689	0.116
Total Current Assets	273.169	245.871	416.452
TOTAL	1101.481	921.873	979.176

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations		574.212	474.452
		Other Income		3.638	0.289
		TOTAL (A)	614.790	577.850	474.741
Less	EXPENSES
		Cost of material consumed		286.741	227.456
		Increase in finished goods and work in progress		(8.870)	(1.558)
		Employee benefit expenses		92.017	67.167
		Other expenses		132.163	102.819
		TOTAL (B)	592.636	502.051	395.884
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses)	75.799	78.857
Less	FINANCIAL EXPENSES (D)			31.786	25.916
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.154	44.013	52.941
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.991	33.097	25.243
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(15.837)	10.916	27.698
Less	TAX (H)		6.046	(7.782)	14.698
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(21.883)	18.698	13.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		134.724	116.026	103.026
	BALANCE CARRIED TO THE B/S		112.841	134.724	116.026
	EARNINGS IN FOREIGN CURRENCY
		Formulation Development Services	102.732	69.886	112.326
		Royalty	38.384	32.246	0.000
	TOTAL EARNINGS		141.116	102.132	112.326
	IMPORTS
		Raw Materials	25.421	3.793	5.796
		Capital Goods	21.870	46.683	24.230
	TOTAL IMPORTS		47.291	50.476	30.026
	Earnings/ (Loss) Per Share (Rs.)		(12.10)	10.34	7.20

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(3.56)	3.24	2.74
Net Profit Margin (PBT/Sales)	(%)	NA	1.90	5.84
Return on Total Assets (PBT/Total Assets}	(%)	(1.63)	1.20	2.96
Return on Investment (ROI) (PBT/Networth)		(0.05)	0.03	0.08
Debt Equity Ratio (Total Debt/Networth)		1.83	1.17	0.09
Current Ratio (Current Asset/Current Liability)		1.41	1.68	0.74

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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 2239 of 2010 To TAX APPEAL No. 2240 of 2010

Status: PENDING ( Converted from : ST/2966/2010 ) CCIN No: 001092201002239

Last Listing Date: 04/10/2012

Coram: - HONOURABLE MR.JUSTICE AKIL KURESHI

HONOURABLE MS.JUSTICE HARSHA DEVANI Not Before : HONOURABLE MR.JUSTICE AKSHAY H.MEHTA

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX-IV

MS PAURAMI B SHETH for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

M/S SIDMAK LABORATORIES (INDIA) LTD

MR RK PATEL for :Opponent(s) 1

Presented On : 19/10/2010 Registered On : 19/10/2010

Bench Category : DIVISION BENCH District : AHMEDABAD

Case Originated From: THROUGH ADVOCATE Listed : 4 times

Stage Name : FOR FINAL HEARING

Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA	SJ - CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - DELETION OF PARTY
Act	INCOME-TAX ACT, 1961	COMPANIES ACT, 1956

Office Details

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2010

VAKALATNAMA

MR RK PATEL ADVOCATE
for RESPONDENT(s) 1

-

MR RK PATEL:1

2

15/08/2010

VAKALATNAMA

MS PAURAMI B SHETH ADVOCATE
for PETITIONER(s) 1

-

MS PAURAMI B SHETH:1

3

09/04/2012

VAKALATNAMA

MR RK PATEL ADVOCATE
for RESPONDENT(s) 1

5

MR RK PATEL:1

4

21/09/2012

APPEARANCE NOTE

MS PAURAMI B SHETH ADVOCATE
for PETITIONER(s) 1

-

MS PAURAMI B SHETH:1

Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	04/10/2012	9	41	FOR FINAL HEARING	FIXED RULE / ADMIT	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS.JUSTICE HARSHA DEVANI

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View	Download
1	TAX APPEAL/2239/2010	· HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA · HONOURABLE MR.JUSTICE J.B.PARDIWALA	28/02/2012	N	ORDER	Download	Download
2	TAX APPEAL/2239/2010	· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE N.V.ANJARIA	06/09/2012	N	ORDER	Download	Download

Certified Copy

S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	29/02/2012	O/6924/2012	28/02/2012	02/03/2012	05/03/2012	Delivered	ORDER

CURRENT MATURITIES OF LONG TERM DEBT : NOT AVAILABLE

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10336133	08/02/2012	8,500,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B32339772
2	10333458	17/01/2012	5,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B31184062
3	80011661	30/04/2013 *	79,500,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B75951913

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Deposits from a Shareholder	20.370	23.120
Loans and Advances Intercorporate Loans	510.500	357.500
SHORT TERM BORROWINGS
Deposit from a Shareholder	2.750	0.000
Total	533.620	380.620

COMPANY INFORMATION

Subject was incorporated on 06.05.1983 under the Indian Companies Act, 1956. The registered office of the company is located at National Highway No. 8, Abrama, Valsad 396001 in Gujarat State. Sidmak India develops and manufactures innovative pharmaceutical products using its extensive experience and various technology platforms developed over 25 years. The manufacturing facilities are located at Valsad (Gujarat State) and Dehradun (Uttarakhand State). The Company is also having formulation development facility at Valsad (Gujarat State).

OPERATIONS:

During the year, the sales and other income have increased from Rs. 577.850 Millions to Rs. 614.790 Millions. As compared to corresponding figures of the previous financial year, the total expenses have increase from Rs. 566.934 Millions to Rs. 630.627 Millions. The increase in finance cost, employee cost, utility charges and depreciation were the main contributors to the increase in total expenses and resultant losses before tax of Rs. 15.837 Millions.

The company has undertaken major expansion programme at Valsad Plant with a capital outlay of Rs. 1300.000 Millions of which first phase of Rs. 650.000 Millions is under implementation. A Greenfield Formulation Plant is coming up at it’s the Valsad production facility for export of formulations. The expansion of the facility is under construction as per US FDA specifications. With the commercial launch of operations of the expanded facility in FY 2014-15, the Company is expecting to achieve better results in the coming years.

FIXED ASSETS:

· Land

Buildings

Plant and Machinery

Furniture and Fixture

Vehicles

Office Equipments

Trademarks

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. 62.36
UK Pound	1	Rs. 101.11
Euro	1	Rs. 84.68

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.