MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	ONCO THERAPIES LIMITED
Registered Office :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	14.08.2007
Com. Reg. No.:	08-043599
Capital Investment / Paid-up Capital :	Rs.24.062 Millions
CIN No.: [Company Identification No.]	U24232KA2007PLC043599
TAN No.: [Tax Deduction & Collection Account No.]	BLRO02269B
PAN No.: [Permanent Account No.]	AAACO9507F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Research and Manufacturing of all kinds of anti cancer/ oncology related pharmaceutical products.
No. of Employees :	Not Available

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 5900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of “Strides Arcolab Limited (Sal). It is an established company having satisfactory track record. The company has seen a significant improvement in sales turnover as well as net profitability during 2012. Profit margin appears to be good. Financial and liquidity position seems to be strong and sound. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of strong technical, managerial and financial support from the group, the subject 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB+ (Term Loan Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	September 2013

Rating Agency Name	ICRA
Rating	A2+ (Fund Based Facilities)
Rating Explanation	Strong degree of safety and low credit risk.
Date	September 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-67840000
Fax No.:	91-80-67840800
E-Mail :	sudhir.kanchan@stridesarco.com kannan.n@stridesarco.com

DIRECTORS

As on: 07.06.2013

Name :

Mr. Venkatraman Subramanian Iyer

Designation :

Director

Address :

L 204, Mantri Woodlands, Arekere, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

18.03.1957

Qualification :

Master of Science [Chemistry] and Diploma in Business Management.

Date of Appointment :

30.09.2008

DIN No.:

00408092

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	U24231KA2003PTC039016	MEDGENE PHARMACEUTICALS PRIVATE LIMITED	Director	14/06/2006	03/05/2005	-	Amalgamated	NO
2	U02429KA2004PTC033503	AGILA SPECIALTIES PRIVATE LIMITED	Director	14/06/2006	31/03/2006	-	Active	NO
3	U24231TZ1986PLC008788	GLOBAL REMEDIES LIMITED	Director	19/06/2007	26/03/2007	27/11/2008	Amalgamated	NO
4	U24230KA2007PTC042337	HIGHER PHARMATECH PRIVATE LIMITED	Director	02/04/2007	02/04/2007	-	Active	NO
5	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	30/09/2008	10/03/2008	-	Active	NO
6	U24231TN1996PLC035068	GRANDIX PHARMACEUTICALS LIMITED	Additional director	16/03/2009	16/03/2009	-	Amalgamated	NO
7	L24230MH1990PLC057062	STRIDES ARCOLAB LIMITED	Whole-time director	31/05/2010	19/01/2010	25/05/2012	Active	NO

Name :

Mr. Sudhir Krishna Kanchan

Designation :

Director

Address :

B-2002, Sobha Sunbeam 2, Sobha Hill View After Thalagatpura Police Station Uttarahalli, Manavarthakal, Kanakpura Road, Bangalore – 560062, Karnataka, India

Date of Birth/Age :

26.02.1955

Qualification :

CA, CMA and CS

Date of Appointment :

14.08.2007

DIN No.:

01606191

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	U24231TZ1986PLC008788	GLOBAL REMEDIES LIMITED	Director	30/06/2008	28/06/2007	-	Amalgamated	NO
2	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	14/08/2007	14/08/2007	-	Active	NO
3	U24231KA2003PTC039016	MEDGENE PHARMACEUTICALS PRIVATE LIMITED	Director	30/06/2008	01/11/2007	16/03/2009	Amalgamated	NO
4	U24296KA2008PTC045588	QUANTUM REMEDIES PRIVATE LIMITED	Director	08/04/2008	08/04/2008	25/03/2009	Amalgamated	NO
5	U73100KA2009PTC049535	Strides Technology and Research Private Limited	Director	06/04/2009	06/04/2009	-	Strike off	NO
6	U24232TN2001PLC047875	GRANDIX LABORATORIES LIMITED	Additional director	19/08/2009	19/08/2009	-	Amalgamated	NO
7	U74140KA2007PTC043095	Inbiopro Solutions Private Limited	Nominee director	30/05/2011	25/11/2010	17/04/2012	Active	NO
8	U24100KA2012PTC063995	STELIS BIOPHARMA PRIVATE LIMITED	Director	16/05/2012	16/05/2012	-	Active	NO
9	U24132KA2012PTC064214	Strides Emerging Markets Private Limited	Director	01/06/2012	01/06/2012	-	Active	NO

Name :

Mr. Ajay Singh Rathore

Designation :

Director

Address :

C -3- 1107, L and T Apartments, South City, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

15.08.1972

Qualification :

CA and ICWA

Date of Appointment :

27.05.2011

DIN No.:

03342984

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	U74140KA2007PTC043095	Inbiopro Solutions Private Limited	Nominee director	30/05/2011	25/11/2010	18/03/2013	Active	NO
2	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	27/05/2011	04/05/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 07.06.2013

Names of Shareholders	No. of Shares
Arun Kumar	1
K R Ravishankar	1
Sudhir Kanchan	1
Kannan N	1
Anil Kumar P	1
N T Venkatesha	1
Agila Specialist Private Limited, India	2406181
Total	2406187

Equity Share Break up (Percentage of Total Equity)

As on: 07.06.2013

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Research and Manufacturing of all kinds of anti cancer/ oncology related pharmaceutical products.

Products :

Product	ITC Code
Gemcitabine	30041090
Oxaliplatin	30041090
Paclitaxel	30041090
Tazrobida	30041090
Vinorelbin Inj	30041090

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, Corporate Banking Branch, Indian Express Building, Second Floor, No.1, Queen's Road, Bangalore - 560001, Karnataka, India

· Central Bank of India, Corporate Finance Branch, 1st Floor, Mmo Building, Fort, Mumbai - 400023, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2012	As on 31.12.2011
LONG TERM BORROWINGS
Rupee term loans from banks	648.720	1647.638
SHORT TERM BORROWINGS
Working capital loans from banks	188.975	0.000
Total	837.695	1647.638

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Haskins and Sells, Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
PAN No.:	AACFD3771D
Holding company:	Agila Specialties Private Limited CIN No.: U02429KA2004PTC033503
Ultimate Holding company:	Strides Arcolab Limited CIN No.: L24230MH1990PLC057062
Fellow Subsidiary Company:	· Agila Specialties Polska Limited · Co-pharma · Onco Laborotories Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2406187	Equity Shares	Rs.10/- each	Rs.24.062 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	24.062	24.062
(b) Reserves & Surplus	1460.978	1240.992
(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)	1485.040	1265.054
(3) Non-Current Liabilities
(a) long-term borrowings	648.720	1647.638
(b) Deferred tax liabilities (Net)	47.000	0.000
(c) Other long term liabilities	1335.646	1.721
(d) long-term provisions	2.144	1.600
Total Non-current Liabilities (3)	2033.510	1650.959
(4) Current Liabilities
(a) Short term borrowings	188.975	0.000
(b) Trade payables	288.435	351.830
(c) Other current liabilities	1069.649	1241.858
(d) Short-term provisions	2.744	1.361
Total Current Liabilities (4)	1549.803	1595.049
TOTAL	5068.353	4511.062
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1235.407	1304.423
(ii) Intangible Assets	0.229	0.282
(iii) Capital work-in-progress	21.498	7.638
(iv) Intangible assets under development	26.943	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	2633.783	2452.604
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3917.860	3764.947
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	335.249	207.439
(c) Trade receivables	206.369	133.020
(d) Cash and cash equivalents	31.300	12.757
(e) Short-term loans and advances	68.702	169.893
(f) Other current assets	508.873	223.006
Total Current Assets	1150.493	746.115
TOTAL	5068.353	4511.062

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		22.431
2] Share Application Money		0.000
3] Reserves & Surplus		1278.081
4] (Accumulated Losses)		(106.929)
NETWORTH		1193.583
LOAN FUNDS
1] Secured Loans		3050.000
2] Unsecured Loans		0.000
TOTAL BORROWING		3050.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		4243.583
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1174.709
Capital work-in-progress		203.433
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.603
	Sundry Debtors	34.184
	Cash & Bank Balances	408.692
	Other Current Assets	0.000
	Loans & Advances	3007.164
Total Current Assets		3517.643
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	312.935
	Other Current Liabilities	321.637
	Provisions	17.630
Total Current Liabilities		652.202
Net Current Assets		2865.441
MISCELLANEOUS EXPENSES		0.000
TOTAL		4243.583

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Income	1621.251	797.692	149.955
		Other Income	10.524	0.510	158.573
		TOTAL (A)	1631.775	798.202	308.528
Less	EXPENSES
		Cost of materials consumed	789.035	322.378	232.288
		Purchases of stock-in-trade	87.055	23.906
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(26.420)	(41.667)
		Employee benefit expense	88.209	61.071
		Other expenses	269.719	363.419
		TOTAL (B)	1207.598	729.107	232.288
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		424.177	69.095	76.240
Less	FINANCIAL EXPENSES (D)		52.035	13.834	234.747
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		372.142	55.261	(158.507)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		105.156	81.654	55.054
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		266.986	(26.393)	(213.561)
Less	TAX (H)		0.000	0.000	(36.000)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		219.986	(26.393)	(177.561)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(133.322)	(106.928)	70.633
	BALANCE CARRIED TO THE B/S		86.664	(133.322)	(106.928)
	EARNINGS IN FOREIGN CURRENCY
		Reimbursement of Site transfer and BE study expenses and Sales Job work	NA	24.738	10.427
		Sale of Products	NA	214.499	52.580
		Development and Licensing Income	NA	526.022	72.403
	TOTAL EARNINGS		NA	765.259	135.410
	IMPORTS
		Capital Goods	NA	4.640	26.559
		Others Goods	NA	8.483	11.501
		Raw Materials	NA	131.179	27.376
	TOTAL IMPORTS		NA	144.302	65.436
	Earnings/ (Loss) Per Share (Rs.)		91.43	(11.54)	(82.97)

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	13.48	(3.31)	(57.55)
Net Profit Margin (PBT/Sales)	(%)	16.47	(3.31)	(142.42)
Return on Total Assets (PBT/Total Assets}	(%)	5.32	(0.59)	(4.55)
Return on Investment (ROI) (PBT/Networth)		0.18	(0.02)	(0.17)
Debt Equity Ratio (Total Debt /Networth)		0.56	1.30	2.56
Current Ratio (Current Asset/Current Liability)		0.74	0.47	5.39

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)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

The Company has a state of the art manufacturing facility at Bommasandra having 3 different manufacturing lines for manufacture of sterile injectable, Soft gelatin and hard gelatin tablets. The state of art facility will comply with high standards of quality, automation and regulatory requirements.

The facility design is fully compliant with the cGMP standards meeting national and international guidelines of the regulatory authorities and meeting environmental standards.

The Company has received regulatory approvals from MHRA, UK, ANVISA, Brazil, TGA, Australia, Japan and US FDA.

The Companys marketing network covers 70 countries and it has partnerships with some of the worlds leading pharmaceutical companies for both developed and emerging markets.

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10329066	27/03/2013 *	950,000,000.00	Axis Bank Limited	CORPORATE BANKING BRANCH, INDIAN EXPRESS BUILDING, SECOND FLOOR, NO.1, QUEEN'S ROAD, BANGALORE, Karnataka - 560001, INDIA	B75158675
2	10317010	24/10/2011	2,275,250,000.00	Axis Bank Limited	2nd Floor-E, Axis House, Bombay Dyeing Mill Compd, Panduranga Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA	B25073925
3	10247025	16/09/2010	1,300,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, FORT, MUMBAI, Maharashtra - 400023, INDIA	A95641221

* Date of charge modification

FIXED ASSETS:

· Leasehold Land

· Buildings

· Furniture and Fixtures

· Office Equipments and Computers

· Plant and Machinery

· Software Licenses

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.83.67

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POIN6TS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.