MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	SHAKUN POLYMERS LIMITED
Registered Office :	501-504 Iscon Heights, Atria-2, Gotri Road, Vadodara – 390021, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.04.1995
Com. Reg. No.:	04-025304
Capital Investment / Paid-up Capital :	Rs.34.600 Millions
CIN No.: [Company Identification No.]	U17119GJ1995PLC025304
TAN No.: [Tax Deduction & Collection Account No.]	BRDS01178C
PAN No.: [Permanent Account No.]	AACCS5500Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Wire and Cable Compounds
No. of Employees :	Information declined by management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1080000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The company has seen a growth in its sales turnover as well as net profitability during 2012. Financial position appears to be decent. However, trade relations are fair. Business is active. Payment terms are reported as 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.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “BBB”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.03.2013

Rating Agency Name	CRISIL
Rating	Short term rating : “A3+”
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	26.03.2013

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 DECLINED BY

Name :	Mr. Sanjay
Designation :	Accounts Department
Contact No.:	91-265-6196500
Date :	09.10.2013

LOCATIONS

Registered Office :	501-504 Iscon Heights, Atria-2, Gotri Road, Vadodara – 390021, Gujarat, India
Tel. No.:	91-265-6196500
Fax No.:	91-265-6196565
E-Mail :	mktg@shakunpolymers.com sales@shakunpolymers.com compounds@shakunpolymers.com (Sales) technical@shakunpolymers.com (Technical) exim@shakunpolymers.com (Exports) atmajy@bankofbaroda.com purchase@shakunpolymers.com
Website :	http://www.shakunpolymers.com
Factory 1 :	Plot No. 2-3, Silver Industrial Estate, Pataliya Road, Bhimpore, Daman – 396210, Gujarat, India
Tel. No.:	91-265-2333807
Fax No.:	91-265-2339402
Location :	Owned
Factory 2 :	Halol, Gujarat, India
Location :	Owned

DIRECTORS

As on 05.09.2013

Name :	Mr. Rajesh Dhanraj Bansal
Designation :	Whole Time Director
Address :	18, Gotri Co-operative Housing Society, Gotri Road, Vadodara – 390021, Gujarat, India
Date of Birth/Age :	03.03.1964
Qualification :	BCOM
Date of Appointment :	02.01.1996
PAN No.:	ABXPB2131P
DIN No.:	00002176
Name :	Mr. Rakesh Dhanraj Bansal
Designation :	Whole Time Director
Address :	4, Gotri Co-operative Housing Society, Gotri Road, Vadodara – 390021, Gujarat, India
Date of Birth/Age :	27.03.1966
Qualification :	BCOM
Date of Appointment :	02.01.1996
PAN No.:	ABXPB2129H
DIN No.:	00002179
Name :	Mr. Geetesh Dhanraj Bansal
Designation :	Whole Time Director
Address :	5, Gotri Co-operative Housing Society, Gotri Road, Vadodara – 390021, Gujarat, India
Date of Birth/Age :	27.10.1967
Qualification :	BCOM
Date of Appointment :	02.01.1996
PAN No.:	ABXPB2127K
DIN No.:	00002180

KEY EXECUTIVES

Name :	Mr. Sanjay
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.09.2013

Names of Shareholders	No. of Shares
Ritu Bansal	184000
Seema Bansal	422000
Ashima Bansal	241200
Rajesh Bansal (HUF)	150900
Rakesh Bansal (HUF)	113000
Rakesh Bansal	300700
Geetesh Bansal	186700
Rajesh Bansal	79300
Geetesh Bansal (HUF)	222500
Shakuntala Bansal	488300
Urmila Gupta	1800
Pawan Gupta	1000
Raghav Singhania	5000
Yash Vardhan Sighania	5000
Bina Singhania	5000
P K Kesavan Namboothiri	500
Swati Bakshi	2000
Ashok Bansal	1000
Aarat Metha	2000
Kamalsingh R Zaveri	500
Dhanraj Bansal	100000
Rishina Bansal	102200
Ritvigya Bansal	161100
Anirudha Bansal	155300
Abhinav Bansal	155300
Hemang Bansal	148700
Tanushree Bansal	23800
Rakesh HUF/Ritu	8500
GeeteshHUF/Ashima	8500
Tanushree Bansal Educ. Trust, India	75000
Dhanraj/Shakuntala	109200
Total	3460000

As on 05.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	99.31
Other top fifty shareholders	0.69
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wire and Cable Compounds

Products :

Item Code No. (ITC Code)	Product Description
39019090	Speciality Plastic Compounds
85444999	Wire and Cables

GENERAL INFORMATION

No. of Employees :

Information declined by management

Bankers :

· Bank of Baroda, Atmajyoti Ashram Road Branch, Indraprastha Building, Ellora Park, Opposite Vegetable Market, Vadodara – 390007, Gujarat, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	16.357	42.419
Foreign currency term loans from banks	0.000	1.599
SHORT TERM BORROWINGS
Working capital loans from banks	109.809	181.162
Total	126.166	225.180

Banking Relations :	--
Auditors :
Name :	Shah Mehta and Bakshi Chartered Accountants
Address :	2^nd Floor, Prasanna House, Associated Society, Near Akota Stadium, Vadodara – 390020, Gujarat, India
Tel. No.:	91-265-2331060/2337727/2355435
Fax No.:	91-265-2343227
E-Mail :	office@smb.ca.com
PAN.:	AABFJ1738M
Other Related Party :	· Dym Techcom India Private Limited CIN No.: U25200GJ2006PTC047756 · Universal Cables Limited CIN No.: L31300MP1945PLC001114

CAPITAL STRUCTURE

As on 05.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3460000	Equity Shares	Rs. 10/- each	Rs.34.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	34.600	34.600
(b) Reserves & Surplus	235.604	201.458
(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)	270.204	236.058
(3) Non-Current Liabilities
(a) long-term borrowings	16.357	44.018
(b) Deferred tax liabilities (Net)	15.497	13.207
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	31.854	57.225
(4) Current Liabilities
(a) Short term borrowings	129.559	204.262
(b) Trade payables	35.750	26.426
(c) Other current liabilities	21.271	23.188
(d) Short-term provisions	22.205	23.717
Total Current Liabilities (4)	208.785	277.593
TOTAL	510.843	570.876
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	204.243	196.129
(ii) Intangible Assets	3.911	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.800	0.800
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	12.230	5.814
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	221.184	202.743
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	158.492	183.123
(c) Trade receivables	113.292	145.472
(d) Cash and cash equivalents	5.208	10.681
(e) Short-term loans and advances	3.755	13.758
(f) Other current assets	8.912	15.099
Total Current Assets	289.659	368.133
TOTAL	510.843	570.876

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		34.600
2] Share Application Money		0.000
3] Reserves & Surplus		172.739
4] (Accumulated Losses)		0.000
NETWORTH		207.339
LOAN FUNDS
1] Secured Loans		204.140
2] Unsecured Loans		5.928
TOTAL BORROWING		210.068
DEFERRED TAX LIABILITIES		10.446
TOTAL		427.853
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		185.625
Capital work-in-progress		0.000
INVESTMENT		0.800
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	141.347
	Sundry Debtors	104.214
	Cash & Bank Balances	6.464
	Other Current Assets	14.660
	Loans & Advances	22.072
Total Current Assets		288.757
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	27.925
	Other Current Liabilities	0.505
	Provisions	18.899
Total Current Liabilities		47.329
Net Current Assets		241.428
MISCELLANEOUS EXPENSES		0.000
TOTAL		427.853

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1072.071	954.775	891.456
		Other Income	23.147	30.769	9.958
		TOTAL (A)	1095.218	985.544	901.414
Less	EXPENSES
		Cost of materials consumed	739.058	693.129
		Purchases of stock-in-trade	8.474	9.335
		Employee benefit expense	22.673	18.052
		Other expenses	209.021	186.449
		Prior period items	0.003	0.039
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	5.042	(20.879)
		TOTAL (B)	984.271	886.125	780.718
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		110.947	99.419	120.696
Less	FINANCIAL EXPENSES (D)		21.391	24.046	20.941
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		89.556	75.373	99.755
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.826	17.223	15.243
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		70.730	58.150	84.512
Less	TAX (H)		24.520	19.378	30.325
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		46.210	38.772	54.187
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		166.568	141.726	101.027
Less	APPROPRIATIONS
		Transfer to General Reserve	4.621	3.877	5.419
		Dividend	10.380	8.650	6.920
		Tax on distributed profits	1.684	1.403	1.149
	BALANCE CARRIED TO THE B/S		196.093	166.568	141.726
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	452.871	385.090	293.836
		Commission Earnings	8.714	14.751	9.196
	TOTAL EARNINGS		461.585	399.841	303.032
	IMPORTS		582.144	362.054	381.322
	Earnings / (Loss) Per Share (Rs.)		13.36	11.21	15.66

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.22	3.93	6.01
Net Profit Margin (PBT/Sales)	(%)	6.60	6.09	9.48
Return on Total Assets (PBT/Total Assets}	(%)	13.87	10.20	17.82
Return on Investment (ROI) (PBT/Networth)		0.26	0.25	0.41
Debt Equity Ratio (Total Debt/Networth)		0.54	1.05	1.01
Current Ratio (Current Asset/Current Liability)		1.39	1.33	6.10

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Current maturities of long-term debt	20.818	22.992	NA

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	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	No
20]	Export / Import details (if applicable)	No
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	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	10017708	30/01/2013 *	363,900,000.00	BANK OF BARODA	ATMAJYOTI ASHRAM ROAD BRANCH,INDRAPRASTHA BUILDING, OPPOSITE VEGETABLE MARKET, ELLORA PARK, VADODARA - 390007, GUJARAT, INDIA	B68071810
2	90101121	22/02/2013 *	363,900,000.00	BANK OF BARODA	ATMAJYOTI ASHRAM ROAD BRANCH,INDRAPRASTHA BUILDING, OPPOSITE VEGETABLE MARKET, ELLORA PARK, VADODARA - 390007, GUJARAT, INDIA	B69404739
3	90100720	10/07/2000	67,000,000.00	BANK OF BARODA	ATMAJYOTI ASHRAM ROAD BRANCH,INDRAPRASTHA BUILDING, OPPOSITE VEGETABLE MARKET, ELLORA PARK, VADODARA - 390007, GUJARAT, INDIA	-

* Date of charge modification

LITIGATION DETAILS

HIGH COURT OF GUJARAT TAX APPEAL No. 327 of 2007

Status: PENDING (Converted from : ST/161/2007) CCIN No : 001092200700327 Last Listing Date: 02/03/2007 Coram: HONOURABLE MR.JUSTICE MOHIT S. SHAH HONOURABLE MR.JUSTICE D.H.WAGHELA

S.NO.

Name of the Petitioner

Advocate On Record

1

THE JCIT (ASSTT), CIRCLE-5 AHMEDABAD

MR KM PARIKH for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

M/S. SHAKUN POLYMERS LTD.

MRS SWATI SOPARKAR for :Opponent(s) 1

Presented On : 10/01/2007 Registered On : 10/01/2007 Bench Category : DIVISION BENCH District : VADODARA Case Originated From: THROUGH ADVOCATE Listed : 2 times Stage Name : FOR FINAL HEARING - TAX MATTERS Classification - DB – OJ- TAX APPEAL – INCOME TAX ACT, 1961 – APPEAL TO HIGH COURT – U/S 260 OF IT ACT – LONG TERM CAPITA GAIN – U/S 54EA Act - INCOME-TAX ACT, 1961

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2007

VAKALATNAMA

MR KM PARIKH ADVOCATE for PETITIONER(s) 1

-

MR KM PARIKH:1

2

30/01/2008

VAKALATNAMA

MRS SWATI SOPARKAR ADVOCATE for RESPONDENT(s) 1

5

MRS SWATI SOPARKAR:1

Court Proceedings

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

02/03/2007

1

-

FOR FINAL HEARING - TAX MATTERS

RULE/ADMIT

· HONOURABLE MR.JUSTICE MOHIT S. SHAH · HONOURABLE MR.JUSTICE D.H.WAGHELA

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgment/Order

1

TAX APPEAL/327/2007

· HONOURABLE THE CHIEF JUSTICE Y.R.MEENA · HONOURABLE MR.JUSTICE J.C.UPADHYAYA

11/12/2007

N

ORDER

Certified Copy

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MR KM PARIKH

ORDINARY

23/01/2008

O/2044/2008

11/12/2007

04/02/2008

05/02/2008

Delivered

-

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Deposits from directors	10.300	2.900
Deposits from shareholders	3.500	14.800
Intercorporate deposits	3.500	3.500
Deposits from others	2.450	1.900
Total	19.750	23.100

FIXED ASSETS

v Tangible assets

· Land

· Buildings

· Residential Building

· Factory Building

· Plant and Equipment

· Factory Equipments

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

v Intangible Assets

· Computer Software

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.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.