MIRA INFORM REPORT

Report Date :

11.10.2013

IDENTIFICATION DETAILS

Name :	THE EIMCO-K.C.P. LIMITED (w.e.f.17.10.1968)
Formerly Known As :	THE EIMCO-K.C.P. PRIVATE LIMITED
Registered Office :	183, New No. 239, Ramakrishna Buildings, Annasalai, Chennai – 600 006, Tamil Nadu.
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.09.1967
Com. Reg. No.:	18-005550
Capital Investment / Paid-up Capital :	Rs. 6.000 Millions
CIN No.: [Company Identification No.]	U27209TN1967PLC005550
IEC No.:	0488004586
TAN No.: [Tax Deduction & Collection Account No.]	CHET00256E
PAN No.: [Permanent Account No.]	AAACT2962M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Liquid Solids Separations Equipments.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 320000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “K.C.P. Sugar and Industries Corporation Limited”. It is an established company having a satisfactory track record. The company has seen a significant increase in its sales turnover during 2012. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of strong holding, the subject can be considered normal for business dealings at usual trade term 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

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.

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. Sudhir Kumar
Designation :	Accounts Department
Contact No.:	91-44-28555171
Date :	11.10.2013

LOCATIONS

Registered Office :	183, New No. 239, Ramakrishna Buildings, Annasalai, Chennai – 600 006, Tamil Nadu, India
Tel. No.:	91-44-28555171 / 28555862
Fax No.:	91-44-28555863
E-Mail :	ekcp@md2.vsnl.net.in skcp@md2.vsnl.net.in ekcp@vsnl.com
Location :	Owned
Factory :	11A, 3^rd Main Road, Industrial Estate, Anbattur, Chennai – 600 058, Tamil Nadu, India
Branch Office :	231, Arun Chambers, J. Dadaji Road, Tardeo, Mumbai - 400 034, Maharashtra, India
Tel. No.:	91-22-24944030
Fax No.:	91-22-24954608
E-Mail :	ekcp@md2.vsnl.net.in
Branch Offices :	Group’s offices Located in Hyderabad Mumbai Cochin Delhi Kolkata Bangalore

DIRECTORS

As on 27.09.2012

Name :

Ms. Irmgard Velagapudi

Designation :

Chairman

Address :

No. 15, Damodarapuram, Main Road, Chennai, Tamil Nadu, India

Date of Birth/Age :

18.09.1936

Qualification:

Diploma in Commerce

Date of Appointment :

18.10.2001

DIN No.:

00091370

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	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	12/12/1996	12/12/1996	-	Active	NO
2	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Managing director	29/03/2010	11/09/2000	-	Active	NO
3	U40105TN1992PTC022298	ENERGY DEVICE TECHNOLOGY (INDIA) PRIVATE LIMITED	Director	07/05/2001	07/05/2001	-	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	20/08/2001	20/08/2001	-	Active	NO
5	U73100TN1998PLC041501	KCP SUGARS AGRICULTURAL RESEARCH FARMS LIMITED	Director	18/10/2001	18/10/2001	-	Active	NO
6	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	18/10/2001	18/10/2001	-	Active	NO

Name :

Ms. Velagapudi Kiran Rao

Designation :

Director

Address :

No. 11, 3^rd Street, Kasturi Estate, Chennai, Tamilnadu, India

Date of Birth/Age :

18.12.1964

Qualification:

Degree in Anthrapology

Date of Appointment :

31.07.2003

DIN No.:

00091466

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	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Whole-time director	29/07/2012	29/07/2002	-	Active	NO
2	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	31/07/2003	31/07/2003	-	Active	NO
3	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	31/08/2005	31/08/2005	-	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	04/07/2007	04/07/2007	-	Active	NO
5	U55100TN2010PTC075641	AMETHYST CAFE PRIVATE LIMITED	Managing director	10/05/2010	10/05/2010	-	Active	NO

Name :

Mr. Jakka Satyanarayana

Designation :

Director

Address :

Old 76/5/1, New 34/5/1, Bazullah Road, T Nagar, Chennai, Tamilnadu, India

Date of Birth/Age :

15.05.1936

Qualification:

B.Com Hons MBA

Date of Appointment :

14.02.2001

DIN No.:

00020580

Name :

Mr. Krishnaswamy Kalyanaraman

Designation :

Director appointed in causal vacancy

Address :

Old No.16 / New No.25, Third Main Road, M.C. Nagar, Chittlapakkam, Chennai - 600064, Tamil Nadu, India

Date of Birth/Age :

29.06.1945

Qualification:

M. Tech

Date of Appointment :

10.08.2007

DIN No.:

01761928

KEY EXECUTIVES

Name :	Mr. Sudhir Kumar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Names of Shareholders	No. of Shares
Irmgad Velagapudi M Rao	3
KCP Sugars and Industries Corporation Limited, India	599990
P.R. Ramakrishnan	1
R. Prabhu	1
Ramaniklala Kalyani	1
Vinod R Sethi	1
Kiran Rao	1
R. Ganesan	1
S. Chidambaram	1
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Liquid Solids Separations Equipments.

Products :

Item Code No.	Product Description
84212190	Solid-Liquid Separation Equipment

Exports :

Products :

Finished Goods

Countries :

USA

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

150 (Approximately)

Bankers :

• Axis Bank Limited, CMC Centre, Karumuttu Nilayam, No.192, Anna Salai, Chennai-600002, Tamil Nadu, India

Tel No.:91-44-28577701

• Canara Bank, 787 Mount Road, Madras -600002, Tamil Nadu, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Loans repayable on demand from banks	19.164	40.941
Total	19.164	40.941

Banking Relations :	--
Auditors :
Name :	B. Purushottam and Company Chartered Accountants
Address :	3-D Pioneer Homes, 23-A, North Boag Road, T. Nagar, Chennai-600017, Tamil Nadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFB9589N
Holding Company :	K.C.P. Sugar And Industries Corporation Limited CIN No. : L15421TN1995PLC033198

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 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	6.000	6.000
(b) Reserves & Surplus	74.713	55.543
(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)	80.713	61.543
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.096	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	26.945	20.682
Total Non-current Liabilities (3)	27.041	20.682
(4) Current Liabilities
(a) Short term borrowings	19.164	40.941
(b) Trade payables	44.242	42.126
(c) Other current liabilities	46.510	46.735
(d) Short-term provisions	12.720	4.936
Total Current Liabilities (4)	122.636	134.738
TOTAL	230.390	216.963
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.414	17.989
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.637
(d) Long-term Loan and Advances	3.587	1.351
(e) Other Non-current assets	14.057	12.208
Total Non-Current Assets	37.058	32.185
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	68.663	72.567
(c) Trade receivables	110.920	91.438
(d) Cash and cash equivalents	3.463	6.487
(e) Short-term loans and advances	10.286	14.286
(f) Other current assets	0.000	0.000
Total Current Assets	193.332	184.778
TOTAL	230.390	216.963

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.000
2] Share Application Money		0.000
3] Reserves & Surplus		46.209
4] (Accumulated Losses)		0.000
NETWORTH		52.209
LOAN FUNDS
1] Secured Loans		75.383
2] Unsecured Loans		13.500
TOTAL BORROWING		88.883
DEFERRED TAX LIABILITIES		0.217
TOTAL		141.309
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.143
Capital work-in-progress		0.000
INVESTMENT		0.011
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	76.457
	Sundry Debtors	117.757
	Cash & Bank Balances	11.914
	Other Current Assets	0.000
	Loans & Advances	30.642
Total Current Assets		236.770
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	59.322
	Other Current Liabilities	35.422
	Provisions	20.871
Total Current Liabilities		115.615
Net Current Assets		121.155
MISCELLANEOUS EXPENSES		0.000
TOTAL		141.309

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	314.776	276.449	285.921
		Other Income	7.053	4.934	7.499
		TOTAL (A)	321.829	281.383	293.420
Less	EXPENSES
		Cost of materials consumed	178.598	139.706
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.892)	1.990
		Employee benefit expense	42.221	44.592
		Other expenses	62.844	69.411
		TOTAL (B)	282.771	255.699	267.953
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.058	25.684	25.467
Less	FINANCIAL EXPENSES (D)		6.464	9.138	12.206
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.594	16.546	13.261
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.271	3.633	3.925
	PROFIT BEFORE TAX (E-F) (G)		29.323	12.913	9.336
Less	TAX (H)		10.153	3.557	3.771
	PROFIT AFTER TAX (G-H) (I)		19.170	9.356	5.565
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings
	TOTAL EARNINGS		40.062	47.454	4.096
			40.062	47.454	4.096
	IMPORTS
		Components	NA	NA	13.805
		Finished Goods	NA	NA	0.000
	TOTAL IMPORTS		NA	NA	13.805
	Earnings Per Share (Rs.)		31.95	15.56	9.27

Particulars	31.03.2013
Sales Turnover (Approximately)	358.700

The above information has been parted by Mr. Sudhir Kumar (Accounts Department)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.96	3.33	1.90
Net Profit Margin (PBT/Sales)	(%)	9.32	4.67	3.27
Return on Total Assets (PBT/Total Assets}	(%)	12.73	5.95	3.63
Return on Investment (ROI) (PBT/Networth)		0.36	0.21	0.18
Debt Equity Ratio (Total Debt /Networth)		0.24	0.67	1.70
Current Ratio (Current Asset/Current Liability)		1.58	1.37	2.05

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	--
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

REVIEW OF OPERATIONS

During the period the Company has received Orders totaling to Rs.362.955 Millions as compared to Rs. 248.839 Millions during the previous year. From the enclosed Annual Accounts it may be noted that the income earned from the sale of product and services by the Company for the year ended 31st March 2012 was Rs.342.606 Millions as against Rs. 297.005 Millions in the previous year. The Profit was at Rs.29.323 Millions for the year as against profit of Rs. 12.892 Millions for the previous year. After providing for current and deferred taxation, the net profit for the year was Rs.19.170 Millions to which after adding the brought forward surplus of Rs.43.538 Millions the carry forward surplus to the next year amounted to Rs. 62.708 Millions.

CONTINGENT LIABILITIES:

a). The Guarantees issued by the Company’s Bankers in favour of the customers against advances from them and other obligations amounting to Rs.76.030 Millions (Rs. 80.541 Millions) are secured by stores and spares (including those lying with subcontractors), Work in progress and Finished goods.

b) No provision has been made towards:-i) Disputed ESI demand raised by ESI authorities under ESI Act for the years 1990-91 to 1993-94 amounting to Rs.68233/-. Pending disposal of its appeal against the said demands the company paid Rs.0.015 Millions under protest, and the same is grouped under Loans and Advances.

Disputed ESI demand raised by ESI authorities under ESI Act for the years 2000-01 to 2003-04 amounting to Rs.0.106 Millions. Pending disposal of its appeal against the said demands the company paid Rs.0.026 Millions under protest, and the same is grouped under Loans and Advances.

ii) Disputed Income Tax demand raised by Income Tax authorities under Income Tax Act for the years 2007-08(A.Y-2008-2009) amounting to Rs.1.928 Millions including interest. Pending disposal of its appeal against the said demands with Commissioner of Income Tax Appeals (III)

Disputed Income Tax demand raised by Income Tax authorities under Income Tax Act for the years 2008-09(A.Y-2009-2010) amounting to Rs.0.664 Millions including interest. Pending disposal of its appeal against the said demands with Commissioner of Income Tax Appeals (III)

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90288462	29/07/2013 *	250,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH,KARUMUTHU NILAYAM, NO.19 2 ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	B81081721
2	90293302	28/02/2005	3,200,000.00	CANARA BANK	KARIM MENSION; 787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
3	90293680	06/02/1997	3,000,000.00	CANARA BANK	787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
4	90292226	26/08/1994	13,804,800.00	CANARA BANK	787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
5	90292201	31/03/1994	1,400,000.00	CANARA BANK	787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
6	90291330	01/02/1994	37,000,000.00	CANARA BANK	787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
7	90292184	31/03/1994 *	37,000,000.00	CANARA BANK	787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
8	90292166	20/10/1993	1,900,000.00	CANARA BANK	; 787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
9	90292133	25/11/1992	4,638,000.00	CANARA BANK	; 787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-
10	90292109	05/05/1992	373,430.00	CANARA BANK	; 787; MOUNT ROAD, MADRAS, TAMIL NADU - 600002, INDIA	-

NOTE: * Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Office building
• Plant and equipment
• Factory equipments
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipments

Intangible assets

• Know-how

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.62.14
UK Pound	1	Rs.99.02
Euro	1	Rs.83.87

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.