MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	GULSHAN CHEMICALS LIMITED
Registered Office :	E- 12, Greater Kailash – I, Delhi – 110048
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.05.1985
Com. Reg. No.:	55-020270
Capital Investment / Paid-up Capital :	Rs.52.000 Millions
CIN No.: [Company Identification No.]	U24231DL1985PLC020270
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Sodium Hydrosulphite and Sodium Sulphite.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 910000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company is performing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal 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

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 (GENERAL DETAILS)

Name :	Mr. Rajesh
Designation :	Account Department
Contact No.:	91-11-26421112/3/4
Date :	16.10.2013

LOCATIONS

Registered Office :	E- 12, Greater Kailash – I, Delhi – 110048, India
Tel. No.:	91-11-26217424 / 29237424 / 26421112
Fax No.:	91-11-2924875
E-Mail :	gulshanchemicals.1985@gmail.com gulshanchemicals@airtemail.com
Corporate Office :	302,3^rd Floor, Saraswati House, 27, Nehru Place, Delhi – 110019, India

Note:

The company has been shifted from 305/307, 3^rd Floor, 27, New Delhi Saraswati House, Nehru. Place, New Delhi, India to present corporate office address

DIRECTORS

As on 24.08.2012

Name :

Mr. Pradeep Kumar Jain

Designation :

Managing director

Address :

W-121, 1^st Floor, Greater Kailash – II, New Delhi – 110078, India

Date of Birth/Age :

15.12.1952

Qualification :

Chemical Engineer (USA)

Date of Appointment :

30.09.2006

DIN No.:

00006397

PAN No.:

AAGPJ2525B

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	U74899DL1990PTC042314	CLASS INVESTMENTS PRIVATE LIMITED	Director	07/12/1990	07/12/1990	-	Active	NO
2	U24231DL1985PLC020270	GULSHAN CHEMICALS LIMITED	Managing director	30/09/2011	30/09/2006	-	Active	NO

Name :

Mrs. Arti Pradeep Kumar Jain

Designation :

Whole-time director

Address :

W-121, 1st Floor, Greater Kailash – II, New Delhi – 110078, India

Date of Birth/Age :

24.11.1956

Qualification :

BA, MA

Date of Appointment :

30.09.2006

DIN No.:

00006429

PAN No.:

AHJPJ6992L

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	U74899DL1990PTC042314	CLASS INVESTMENTS PRIVATE LIMITED	Director	07/12/1990	07/12/1990	-	Active	NO
2	U24231DL1985PLC020270	GULSHAN CHEMICALS LIMITED	Whole-time director	30/09/2011	30/09/2006	-	Active	NO

Name :

Gulisha Jain

Designation :

Director

Address :

W-121, 1st Floor, Greater Kailash – II, New Delhi – 110078, India

Date of Birth/Age :

15.10.1985

Qualification :

BBA, MBA

Date of Appointment :

10.08.2006

DIN No.:

00918176

PAN No.:

AAGPJ2526C

KEY EXECUTIVES

Name :	Mr. Rajesh
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.08.2012

Names of Shareholders	No. of Shares
Pradeep Kumar Jain	4000000
Arti Jain	700000
Chander Kumar Gulshan Rai Jain	400
Gulisha Jain	245800
Kanak Jain	400
Santosh Jain	4000
Savani Jain	245800

As on 24.08.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sodium Hydrosulphite and Sodium Sulphite.  

Products :

Product Description	Item Code No.
Sodium Hydrosulphite	283110
Sodium Sulphite	283210

Exports :

Products :

Finished Goods

Countries :

· Pakistan

· Turkey

Imports :

Products :

Raw Material

Countries :

China

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sodium Hydrosulphite	MT	15000	12000	10214.49
Sodium Sulphite	MT	4500	3600	2751.55

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Industrial Development Bank of India Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· State Bank of India, Commercial Branch, Vardhman Trade Centre, Plot No.3and4, 2nd Floor, DDA Building, Nehru Place, New Delhi – 110019, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short Term Borrowing
Working Capital Loans	69.906	52.190
Total	69.906	52.190

Banking Relations :	---
Auditors :
Name :	Sumant Agarwal and Company Chartered Accountants
Address :	A-58, Anand Vihar, Delhi – 110092, India
PAN No.:	AACFS6840A
Enterprises in which key management personnel of the company and the relative exercises significant influence :	Class Investments Private Limited

CAPITAL STRUCTURE

As on 24.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5900000	Equity Shares	Rs.10/- each	Rs.59.000 Millions
10000	Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5200000	Equity Shares	Rs.10/- each	Rs.52.000 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	52.000	52.000
(b) Reserves & Surplus	177.781	109.501
(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)	229.781	161.501
(3) Non-Current Liabilities
(a) long-term borrowings	85.000	50.000
(b) Deferred tax liabilities (Net)	38.658	31.372
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	123.658	81.372
(4) Current Liabilities
(a) Short term borrowings	69.906	52.190
(b) Trade payables	40.281	59.828
(c) Other current liabilities	5.507	4.862
(d) Short-term provisions	60.320	34.440
Total Current Liabilities (4)	176.014	151.320
TOTAL	529.453	394.193
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	222.524	143.598
(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	0.000
(d) Long-term Loan and Advances	11.281	80.001
(e) Other Non-current assets	7.112	7.894
Total Non-Current Assets	240.917	231.493
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	91.059	58.021
(c) Trade receivables	188.513	95.912
(d) Cash and cash equivalents	5.751	3.957
(e) Short-term loans and advances	4.213	4.810
(f) Other current assets	0.000	0.000
Total Current Assets	289.536	162.700
TOTAL	529.453	394.193

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		52.000
2] Share Application Money		0.000
3] Reserves & Surplus		101.054
4] (Accumulated Losses)		0.000
NETWORTH		153.054
LOAN FUNDS
1] Secured Loans		80.933
2] Unsecured Loans		45.000
TOTAL BORROWING		125.933
DEFERRED TAX LIABILITIES		34.145
TOTAL		313.132
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		146.874
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.814
	Sundry Debtors	103.773
	Cash & Bank Balances	0.936
	Other Current Assets	(0.133)
	Loans & Advances	90.061
Total Current Assets		236.451
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.463
	Other Current Liabilities	4.963
	Provisions	30.767
Total Current Liabilities		70.193
Net Current Assets		166.258
MISCELLANEOUS EXPENSES		0.000
TOTAL		313.132

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	623.558	510.943	509.817
		Other Income	0.899	4.481	9.533
		TOTAL (A)	624.457	515.424	519.35.
Less	EXPENSES
		Cost of Materials Consumed	261.041	243.541
		Changer in Inventory of finished goods, work-in-progress	(29.912)	(2.342)
		Employee Benefits Expenses	28.460	28.167	436.728
		Other Expenses	217.232	192.701
		Exceptional Items	(0.461)	(0.517)
		Extraordinary Items	(16.851)	(1.245)
		TOTAL (B)	459.509	460.305	436.728
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		164.948	55.199	82.622
Less	FINANCIAL EXPENSES (D)		19.160	13.545	25.066
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		145.788	41.574	57.556
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.870	16.420	16.257
	PROFIT BEFORE TAX (E-F) (G)		130.918	25.154	41.299
Less	TAX (H)		47.529	7.611	16.321
	PROFIT AFTER TAX (G-H) (I)		83.389	17.543	24.978
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		90.791	84.100	71.290
Less	APPROPRIATIONS
		Transfer to General Reserve	8.340	1.757	2.504
		Dividend	13.000	7.800	7.800
		Tax on Dividend	2.109	1.295	1.326
		Previous Year Adjustments	0.000	0.000	0.538
	BALANCE CARRIED TO THE B/S		150.731	90.791	84.100
	IMPORTS
		Raw Materials	95.299	81.989	123.086
		Capital Goods	1.433	4.667
	TOTAL IMPORTS		96.732	86.656	123.086
	Earnings Per Share (Rs.)		16.04	3.37	4.80

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	13.35	3.43	4.81
Net Profit Margin (PBT/Sales)	(%)	21.00	4.92	8.10
Return on Total Assets (PBT/Total Assets}	(%)	24.68	6.38	10.77
Return on Investment (ROI) (PBT/Networth)		0.57	0.16	0.27
Debt Equity Ratio (Total Debt /Networth)		0.67	0.63	0.82
Current Ratio (Current Asset/Current Liability)		1.64	1.08	3.37

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

FINANCIAL RESULTS

Income has increased from Rs.515.424 Millions in the previous year to Rs.624.457 Millions in the current year. Operating profits have increased from Rs.55.199 Millions in the previous year to Rs. 164.948 Millions, an increase of 199.25%, After providing for interest, depreciation and tax the company's Net Profit is Rs.83.389 Millions as compared to Net Profit of Rs. 17.543 Millions in the previous year.

OPERATIONS

The performance of the company during the year was improved considerably due to improved operations and better pricing in the market for the company's products.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Related Parties	85.000	50.000
Total	85.000	50.000

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Guarantees, LC issued given to Banks, etc. in respect of third Parties	0.301	0.301
Liabilities on account of non-receipt of C-Forms for the past three financial years.	4.960	6.117

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10001072	29/03/2006 *	100,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A00536185
2	90047925	13/10/2011 *	105,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, VARDHMAN TRADE CENTRE, PLOT NO.3 and 4, 2ND FLOOR, DDA BUILDING, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	B24646242
3	90047902	02/05/2000 *	25,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER; CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
4	90047283	28/09/1998	1,000,000.00	STATE BANK OF INDIA	FRIENDS COLONY, NEW DELHI, DELHI, INDIA	-
5	90047150	06/06/1998 *	590,000.00	STATE BANK OF INDIA	FRIENDS COLONY, NEW DELHI, DELHI, INDIA	-
6	90047000	21/05/1998 *	20,000,000.00	INDUSTRIAL DEVELOPMENT BANK	INDIA IDBI TOWER; W.T.C., CUFFE PARADE ; COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
7	90046562	06/02/1997 *	20,000,000.00	INDUSTRIAL DEVELOPMENT BANK	INDIA ; IDBI TOWER; W.T.C., CUFFE PARADE; COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
8	90046514	27/01/1996	1,000,000.00	STATE BANK OF INDIA	BHIWADI, ALWAR, RAJASTHAN, INDIA	-
9	90046213	10/08/1994	1,169,091.00	SHRIRAM FINANCIAL SERVICES LIMITED	SURYA KIRAN LTD., 19; K. G .MARG, NEW DELHI, DELHI, INDIA	-
10	90046117	03/03/1994	529,368.00	SHIRAM LEASING AND FINANCE LIMITED	KANCHNJURGA BUILDING, BARAKHMBA ROAD, NEW DELHI,  DELHI - 110001, INDIA	-
11	90046101	31/01/1994	2,577,826.00	SHRIRAM FINANCIAL SERVICES LIMITED	SURYA KIRAN BUILDING; 19, KASTURBA GANDHI MARG, NEW DELHI, DELHI - 110001, INDIA	-
12	90046071	24/11/1993	2,643,208.00	SHIRAM LEASING AND FINANCE LIMITED	KANCHNJURGA BUILDING 19; KASTURILA GANDHI ROAD,  NEW DELHI, DELHI - 110001, INDIA	-
13	90046057	18/10/1993	3,231,190.00	INDIA LEASE DEVELOPMENT LIMITED	4-FLOOR ; INDRA PRAKASH 21, BARAKHMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	-
14	90045659	06/05/1998 *	1,300,000.00	STATE BANK OF INDIA	BHIWADI, ALWAR, RAJASTHAN, INDIA	-
15	90045392	06/05/1998 *	600,000.00	STATE BANK OF INDIA	BHIWADI, ALWAR, RAJASTHAN, INDIA	-
16	90045243	11/12/1989 *	3,750,000.00	RAJASTHAN STATE INDUSTRIAL DEVELOPMETN AND INVESTME  NT CO. LIMITED	UDYOG BHAWAN; TILAK MARG, JAIPUR`, RAJASTHAN - 302005, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building Office

· Building Factory

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Energy Saving Equipments

· Water Pollution Control Equipment

· Computer

· Vehicles

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.61.69
UK Pound	1	Rs.98.59
Euro	1	Rs.63.67

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		50

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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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