MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	ELKAY CHEMICALS PRIVATE LIMITED

Registered Office :	Vinay Kunj 4, Shivaji Park, Dadar, Mumbai - 400 028, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	02.06.1986

Com. Reg. No.:	11-039957

Capital Investment / Paid-up Capital :	Rs. 23.633 Millions

CIN No.: [Company Identification No.]	U24100MH1986PTC039957

TAN No.: [Tax Deduction & Collection Account No.]	PNEE01430C

PAN No.: [Permanent Account No.]	AAACE5989K

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing Speciality Silicon Products.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 452300

Status :	Satisfactory

Payment Behaviour :	Sloe but correct

Litigation :	Clear

Comments :	Subject is an established company having a satisfactory track record. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but 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.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

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	CRISIL
Rating	B+ = Long Term Rating
Rating Explanation	High risk of default
Date	15.03.2013

Rating Agency Name	CRISIL
Rating	A4 = Short Term Rating
Rating Explanation	Minimal Degree of safety and very high credit risk
Date	15.03.2013

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.

LOCATIONS

Registered Office :	Vinay Kunj 4, Shivaji Park, Dadar, Mumbai - 400 028, Maharashtra, India
Tel. No.:	91-20-27122407 / 3154
Fax No.:	91-20-27121526
E-Mail :	elkaysil@vsnl.com
Website:	http://www.elkaysilicones.com

Corporate Office/Branch 1 :	B-10, Madhuram Industrial Estate, Behind TCI Gali, Sachin Palsana Road, Surat-394230, Gujarat, India
Tel. No.:	91-261-2390145 (Mr. Laxmikant Shivalkar)

Factory :	J –152/3, MIDC, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-30635301 / 02
Fax No.:	91-20-30635300 / 11
E-Mail :	Info.elkay@gmail.com

Correspondence Office:	Bremen Business Centre, Level 5, Office No: 503,504, Above Bank of India, CTS No: 2562, Aundh, Pune - 411007, Maharashtra, India
Tel. No.:	91-20-30172500
Fax No.:	91-20-30172501

Branch 2 :	Plot No. 72, Mahadev Park, Surat – Navsari Highway, Surat, Gujarat, India
Tel. No.:	91-261-8872211

DIRECTORS

As on 28.09.2012

Name :

Mr. Annarao K Lokapur

Designation :

Director

Address :

Z 2/13 and 14, Himali Co-operative Society, Erandwana, Pune – 411001, Maharashtra, India

Date of Birth/Age :

30.10.1960

Date of Appointment :

02.06.1986

DIN No.:

00016146

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	U24100MH1986PTC039957	ELKAY CHEMICALS PRIVATE LIMITED	Director	02/06/1986	02/06/1986	-	Active	NO
2	U65990MH1989PTC052315	LOKAPUR HOLDINGS PRIVATE LIMITED	Director	22/06/1989	22/06/1989	-	Active	NO
3	U85200MH1992PTC066263	ELKAY HYGIENE PRODUCTS PRIVATE LIMITED	Director	08/04/1992	08/04/1992	-	Active	NO
4	U31902PN1996PLC014601	ARKLITE SPECIALITY LAMPS LIMITED	Director	16/05/1996	16/05/1996	-	Active	NO

Name :

Mr. Ravindra D Kulkarni

Designation :

Director

Address :

Z -3, 11-12 Himali Co-operative Society, Erandwana, Pune – 411001, Maharashtra, India

Date of Birth/Age :

12.03.1948

Date of Appointment :

10.08.1986

DIN No.:

00016217

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	U24100MH1986PTC039957	ELKAY CHEMICALS PRIVATE LIMITED	Director	10/08/1986	10/08/1986	-	Active	NO
2	U85200MH1992PTC066263	ELKAY HYGIENE PRODUCTS PRIVATE LIMITED	Director	08/04/1992	08/04/1992	-	Active	NO
3	U74999MH1994PTC082852	KULKARNI TECHNO-PROCESS PRIVATE LIMITED	Director	11/11/1994	11/11/1994	-	Active	NO
4	U31902PN1996PLC014601	ARKLITE SPECIALITY LAMPS LIMITED	Managing director	01/10/2000	01/10/2000	-	Active	NO
5	U29197PN2011PTC138721	AEROPURE UV SYSTEMS PRIVATE LIMITED	Director	01/09/2012	10/09/2011	-	Active	NO

Name :

Mr. Avinash D Kulkarni

Designation :

Director

Address :

Prasanna Apartments, 55/22, Ashok Path, Erandwane, Pune – 411004, India

Date of Birth/Age :

26.01.1942

Date of Appointment :

10.08.1986

DIN No.:

00016046

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	U31500PN1979PTC138325	LITEX ELECTRICALS PRIVATE LIMITED	Managing director	19/05/1979	19/05/1979	-	Active	NO
2	U24100MH1986PTC039957	ELKAY CHEMICALS PRIVATE LIMITED	Director	10/08/1986	10/08/1986	-	Active	NO
3	U31500PN1987PTC134202	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED	Director	19/06/1987	19/06/1987	-	Active	NO
4	U74999MH1994PTC082852	KULKARNI TECHNO-PROCESS PRIVATE LIMITED	Director	11/11/1994	11/11/1994	-	Active	NO
5	U31902PN1996PLC014601	ARKLITE SPECIALITY LAMPS LIMITED	Director	01/10/2000	01/10/2000	-	Active	NO
6	L29307MH1981PLC023810	ENVAIR ELECTRODYNE LIMITED	Director	29/03/2003	29/03/2003	-	Active	NO
7	U29197PN2011PTC138721	AEROPURE UV SYSTEMS PRIVATE LIMITED	Director	01/09/2012	10/09/2011	-	Active	NO

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Shareholders		No. of Shares
Annarao K Lokapur		376489
Shnarao A Lokapur		283517
Tara Krishnarao Lokapur		145604
Madhuri Annarao Lokapur		25000
Ravindra D Kulkarni		481721
Alka Ravindra Kulkarni		269388
Arun Dattatraya Kulkarni		1000
Ravindra D Kulkarni (HUF)		18800
Krishnarao Annarao Lokapur (HUF)		5000
Annarao K Lokapur (HUF)		69500
Avinash D Kulkarni		11500
Veena Avinash Kulkarni		11500
Anand Bhasin		124669
Steve Dumont		309730
Rahul KUlkarni		56627
Priya Kulkarni		56627
Brijmohan Mundgil		16000
Sandeep Anand Bhasin		60669
Total		2323341

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	22.00
Directors or relatives of Directors	78.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing Speciality Silicon Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, Pimpari, Pune 411034, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
State Bank of India
SME Corporate Term Loan	0.000	0.387
Term Loan	0.000	0.000
Vehicle Loan	0.917	0.000
BMW Financial Services	1.944	0.000
Short Term Borrowings
Cash credit accounts with State Bank of India	61.100	62.763
Stand by line of credit accounts with State Bank of India	7.126	9.000
Total	71.087	72.150


Banking Relations :	--

Financial Institutions:	The Maharashtra Estate Financial Corporation, New Excelsior Building, 7/8/9 Floor, A.K.MAyak Marg, Fort, Mumbai – 400001, Maharashtra, India

Auditors :
Name :	Joshi Apte and Company Chartered Accountants
Address :	Dwarka, First Floor, Phatak Baug Society, 999, Navi Peth, Pune 411030, Maharashtra, India
Tel. No.:	91-20-24333186/24332991
Fax No.:	91-20-24366283
E-Mail :	joap@vsnl.com
PAN No.:	AAAFI9696H

Related Parties :	Silicon International Products (SIP) – Partner in Silicon International Products (SIP) (Elkay’s Shares 98%) Elkay Speciality Products (ESP) - Partner in Elkay Speciality Products (ESP) (Elkay’s Shares 2.5%) Arklite Speciality Lamps Limited – Investment in 12% Cummulative Preference Shares

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

2500000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2323341	Equity Shares	Rs. 10/- each	Rs. 23.233 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	23.233	23.233
(b) Reserves & Surplus	89.842	80.274
(c) Money received against share warrants	0.000	0.000
	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	113.075	103.507

(3) Non-Current Liabilities
(a) long-term borrowings	2.861	0.387
(b) Deferred tax liabilities (Net)	3.105	1.579
(c) Other long term liabilities	0.870	0.712
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	6.836	2.678

(4) Current Liabilities
(a) Short term borrowings	68.578	72.218
(b) Trade payables	57.085	38.356
(c) Other current liabilities	6.804	8.257
(d) Short-term provisions	0.216	0.199
Total Current Liabilities (4)	132.683	119.030

TOTAL	252.594	225.215

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.337	28.047
(ii) Intangible Assets	10.065	10.058
(iii) Capital work-in-progress	19.887	15.151
(iv) Intangible assets under development	0.032	0.031
(b) Non-current Investments	52.294	47.354
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4.560	2.439
(e) Other Non-current assets	4.677	1.255
Total Non-Current Assets	128.852	104.335

(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	53.681	44.264
(c) Trade receivables	46.770	49.670
(d) Cash and cash equivalents	1.849	0.539
(e) Short-term loans and advances	19.410	24.382
(f) Other current assets	2.032	2.025
Total Current Assets	123.742	120.880

TOTAL	252.594	225.215

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		22.565
2] Share Application Money		4.212
3] Reserves & Surplus		64.751
4] (Accumulated Losses)		0.000
NETWORTH		91.528
LOAN FUNDS
1] Secured Loans		82.915
2] Unsecured Loans		1.113
TOTAL BORROWING		84.028
DEFERRED TAX LIABILITIES		2.655
GOVERNMENT GRANT		0.432

TOTAL		178.643

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		39.429
Capital work-in-progress		0.032

INVESTMENT		35.780
DEFERRED TAX ASSETS		0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.030
	Sundry Debtors	46.437
	Cash & Bank Balances	2.217
	Other Current Assets	0.000
	Loans & Advances	60.104
Total Current Assets		138.788
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	32.580
	Provisions	2.807
Total Current Liabilities		35.386
Net Current Assets		103.402

MISCELLANEOUS EXPENSES		0.000

TOTAL		178.643

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	342.235	332.571	281.307

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	329.785	320.351	277.050

	PROFIT/(LOSS) BEFORE TAX		12.450	12.220	4.257

Less	TAX		1.532	(1.076)	NA

	PROFIT/(LOSS) AFTER TAX		10.918	13.296	NA

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	148.017	141.015	NA
	TOTAL EARNINGS		148.017	141.015	NA

	IMPORTS
		Raw Materials	166.978	177.402	NA
		Stores & Spares	1.757	0.000	NA
	TOTAL IMPORTS		168.735	177.402	NA

	Earnings Per Share (Rs.)		4.70	5.89	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.19	4.00	NA

Return on Total Assets (PBT/Total Assets}	(%)	9.36	9.81	7.08

Return on Investment (ROI) (PBT/Networth)		0.11	0.12	0.05

Debt Equity Ratio (Total Debt /Networth)		0.63	0.70	0.92

Current Ratio (Current Asset/Current Liability)		0.93	0.01	3.92

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	No
10]	Designation of contact person	No
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

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loan from Director	0.330	0.433
Loan from Shareholder	0.022	0.022
Total	0.352	0.455

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10437579	25/05/2013	611,000.00	State Bank of India	Industrial Finance Branch,Near Kalasagar Hotel, Kasarwadi,Pimpri, Pune, Maharashtra - 411034, INDIA	B79938874
2	10342354	24/02/2012	450,000.00	State Bank of India	Industrial Finance Branch, Near Kalasagar Hotel, Pimpri, Pune, Maharashtra - 411034, INDIA	B35079276
3	90240891	16/12/2004 *	4,500,000.00	SBI BANK	INDL FINANCE BR PIMPRI, PUNE, Maharashtra - 411034, INDIA	-
4	90165459	28/06/2002	4,500,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, PIMPRI, PUNE, Maharashtra - 411034, INDIA	-
5	90165358	07/02/2000	15,000,000.00	SERVICE LIMITED	TARA CHAMBERS, WAKAWADI, PUNE, Maharashtra, INDIA	-
6	90165342	24/08/1999 *	3,100,000.00	SATATE BANK OF INDIA	PIMPRI BRANCH, PUNE, Maharashtra, INDIA	-
7	90233889	14/06/2012 *	120,300,000.00	State Bank of India	Industrial Finance Branch,Near Kalasagar Hotel, Kasarwadi, Pimpri, Pune, Maharashtra - 411034, INDIA	B44668309
8	90164982	10/11/2004 *	3,400,000.00	STATE BANK OF INDIA	PIMPRI BRANCH, PUNE, Maharashtra, INDIA	-
9	90164943	04/01/1992	1,475,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, PIMPRI, PUNE, Maharashtra - 411034, INDIA	-
10	90164897	01/12/1990	250,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, PIMPRI, PUNE, Maharashtra - 411034, INDIA	-

* Date of charge modification

OUTLOOK FOR 2012-13:

The standard Silicone market continues to be very competitive, and the prices seem to have stabilized at the lower levels of last year. The net sale for April-June 2012 quarter has been Rs 88.687 million as compared with Rs 83.035 million last year, a growth of 9,7%. Exports to Europe have been slow due to sluggish demand, and depreciation of Euro v is-a-vis US Dollar.

Your Company has taken steps to focus on large hut scattered domestic markets by aggressively promoting emulsions of fluids, anttfoam and functional fluids at competitive rates. It has been decided to appoint stockists at major centers to cater to the retail customers.

The domestic demand for newly introduced products such as 30% Simethicone emulsion, AG-100, STO, and textile softeners continues to be strong, and your Company has taken effective steps to augment production to meet the requirements.

The implementation schedule of the Lote project continues to be uncertain until the regulatory issues are sorted out.

Barring unforeseen circumstances, your directors are confident of improved results in the current year.

FIXED ASSETS:

Leasehold land
Plant and machinery
Factory building
Laboratory equipment
Computers
Office equipment
Furniture and fixtures
Vehicles
Technical know-how
Computer software
Petant

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. 62.48
UK Pound	1	Rs. 99.66
Euro	1	Rs. 83.50

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	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		43

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.

MIRA INFORM REPORT

3.19

9.36

0.11

0.63

0.93

Unit