MIRA INFORM REPORT

Report Date :

07.04.2014

IDENTIFICATION DETAILS

Name :	NU HOSPITALS PRIVATE LIMITED NU PHARMA A UNIT OF NU HOSPITALS PRIVATE LIMITED
Registered Office :	C.A. 6, 15^th Main, 11^th Cross, Padmanabhanagar, Bangalore – 560070, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.04.2006
Com. Reg. No.:	08-038963
Capital Investment / Paid-up Capital :	Rs. 0.456 Million
CIN No.: [Company Identification No.]	U85120KA2006PTC038963
TAN No.: [Tax Deduction & Collection Account No.]	BLRN03743F
PAN No.: [Permanent Account No.]	AAECM8635L
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Consultancy Services for Healthcare.
No. of Employees :	220 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 253000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealing 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

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. Abdul Wazid
Designation :	Purchase Manager
Contact No.:	91-80-42489920
Date :	02.04.2014

LOCATIONS

Registered Office :	C.A. 6, 15^th Main, 11^th Cross, Padmanabhanagar, Bangalore – 560070, Karnataka, India
Tel. No. :	91-80-42489999
Fax No. :	91-80-26392693
E-Mail :	dr.prasanna@nuhospitals.com stores@nuhospitals.com info@nuhospitals.com accountshod@nuhospitals.com accounts@nuhospitals.com
Website :	www.nuhospitals.com

DIRECTORS

As on 14.09.2013

Name :

Mr. Ramachandra Munisamappa

Designation :

Director

Address :

No.4, Indiranagar Service Road, 13^th Main, ESI Hospital Road, Bangalore - 560038, Karnataka, India

Date of Birth/Age :

26.09.1955

Date of Appointment :

21.09.2012

DIN No. :

00096015

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	Company/ LLP Status	Defaulting status
1	U65992KA1992PTC013141	SCRIPS N SCROLL INDIA PRIVATE LIMITED	Director	11/05/1992	11/05/1992	Active	NO
2	U85110KA2005PTC037953	KIDS CLINIC INDIA PRIVATE LIMITED	Director	25/12/2005	25/12/2005	Active	NO
3	U45201KA2007PTC042725	ANCHORAGE PROPERTY HOLDINGS PRIVATE LIMITED	Director	07/05/2007	07/05/2007	Strike off	NO
4	U85110KA2009PTC049629	SURE FERTILITY (INDIA) PRIVATE LIMITED	Director	20/04/2009	20/04/2009	Active	NO
5	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Director	21/09/2012	09/01/2012	Active	NO

Name :

Boochappa Sreenivas Murthy

Designation :

Director

Address :

No. 3, Poorna Prasad Road, High Grounds, Bangalore – 560001, Karnataka, India

Date of Birth/Age :

25.08.1956

Date of Appointment :

25.08.2011

DIN No. :

00509765

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	Company/ LLP Status	Defaulting status
1	U22219KA1979PTC003662	ADWIT (INDIA) PRIVATE LIMITED	Managing director	22/11/1979	22/11/1979	Active	NO
2	U70101KA2008PTC046095	ECOSENSE REALTY PRIVATE LIMITED	Director	16/04/2008	16/04/2008	Active	NO
3	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Director	25/08/2011	09/06/2011	Active	NO

Name :

Potineni Koteswara Rao

Designation :

Director

Address :

Plot No.692, Road No. 33, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India

Date of Birth/Age :

01.07.1952

Date of Appointment :

21.09.2012

DIN No. :

00613690

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	U70102AP1986PTC006360	VANGUARD THERAPEUTICS PRIVATE LIMITED	Managing director	07/04/1986	07/04/1986	-	Active	NO
2	U01119AP1996PTC025794	VINDHYA AGRICULTURAL FARMS PRIVATE LIMITED	Director	22/11/1996	22/11/1996	-	Active	NO
3	U24230AP1998PTC029624	ENDOVEN PHARMACEUTICALS PRIVATE LIMITED	Managing director	19/06/1998	19/06/1998	17/04/2009	Active	NO
4	U72900AP2002PTC039390	OATSYSTEMS PRIVATE LIMITED	Director	10/07/2003	10/07/2003	-	Dissolved	NO
5	U72200AP2005PTC043219	INKRITI SOLUTIONS PRIVATE LIMITED	Director	06/02/2005	06/02/2005	-	Active	NO
6	U45200AP2008PTC058061	POTINENI HOMES PRIVATE LIMITED	Director	08/03/2008	08/03/2008	-	Active	NO
7	U24239AP2005PTC046240	COASTAL MEDICARE PRIVATE LIMITED	Director	03/09/2009	03/09/2009	-	Active	NO
8	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Director	21/09/2012	09/01/2012	-	Active	NO
9	U15313AP2014PTC092652	SWATHI GREENFIELDS PRIVATE LIMITED	Director	31/01/2014	31/01/2014	-	Active	NO
10	U15122AP2014PTC092697	ASHOK PIRE PRODUCTS PRIVATE LIMITED	Director	03/02/2014	03/02/2014	-	Active	NO

Name :

Mattipa Ramasamy Kanthiraj

Designation :

Additional director

Address :

Old No 51, New No 50, Mc Road, Ambur, Vellore, Chennai – 635802, Tamilnadu, India

Date of Birth/Age :

09.09.1940

Date of Appointment :

14.09.2013

DIN No. :

06534609

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	Company/ LLP Status	Defaulting status
1	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Director	14/09/2013	24/05/2013	Active	NO

Name :

Mr. Venkatesh Krishna Moorthy

Designation :

Whole-time director

Address :

No. 301, 39th Cross,, 8th Block, Jayanagar, Bangalore – 560082, Karnataka, India

Date of Birth/Age :

04.07.1957

Date of Appointment :

09.01.2012

DIN No. :

01109884

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	Company/ LLP Status	Defaulting status
1	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Whole-time director	09/01/2012	10/04/2006	Active	NO
2	U70101KA2008PTC046095	ECOSENSE REALTY PRIVATE LIMITED	Director	16/04/2008	16/04/2008	Active	NO

Name :

Mattipa Kanthiraj Prasanna Venkatesh

Designation :

Managing director

Address :

Plot No.692, Road No.33,, Jubilee Hills, Hyderabad, 500033, Andhra Pradesh, India

Date of Birth/Age :

14.03.1975

Date of Appointment :

21.09.2012

DIN No. :

02874099

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	U85120KA2006PTC038963	NU HOSPITALS PRIVATE LIMITED	Managing director	21/09/2012	09/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Abdul Wazid
Designation :	Purchase Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Venkatesh Krishna Moorthy	9840	21.60
Prasanna Venkatesh M.K	15,990	35.10
M.R. Kanthiraj	4100	9.00
Swathi Potineni	10660	23.40
Koteswara Rao Potineni	410	0.90
Ramachandra Munisamappa	4,556	10.00
Total	45,556	100.00

As on 14.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Consultancy Services for Healthcare.
Terms :
Selling :	Cash, L/C and Cheque
Purchasing :	Cash, L/C and Cheque

GENERAL INFORMATION

No. of Employees :

220 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· Indian Overseas Bank

· Axis Bank Limited

· Standard Chartered Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loan From Bank	0.000	2.614
Total	0.000	2.614

Banking Relations :	--
Auditors :
Name :	Sriramulu Naidu and Company Chartered Accountants
Address :	G-8, H Block, Golden Orchids, Kasturba Road, Bangalore – 560001, Karnataka, India
Tel. No. :	91-80-66631666
E-Mail :	contactddca@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAOFS3877R

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
45,556	Equity Shares	Rs.10/- each	Rs. 0.456 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.456	0.410	0.410
(b) Reserves & Surplus	62.830	31.570	22.651
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	63.286	31.980	23.061
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	2.614	5.146
(b) Deferred tax liabilities (Net)	2.082	2.235	2.070
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.082	4.849	7.216
(4) Current Liabilities
(a) Short term borrowings	21.000	0.000	0.000
(b) Trade payables	9.274	7.668	6.612
(c) Other current liabilities	12.356	21.613	25.960
(d) Short-term provisions	1.474	1.313	3.172
Total Current Liabilities (4)	44.104	30.594	35.744
TOTAL	109.472	67.423	66.021
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.620	40.676	43.039
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.849	0.424	1.006
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.189	1.199	1.470
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	41.658	42.299	45.515
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5.093	3.097	2.404
(c) Trade receivables	6.208	5.869	4.651
(d) Cash and cash equivalents	8.125	12.893	11.305
(e) Short-term loans and advances	46.205	1.527	2.144
(f) Other current assets	2.183	1.738	0.002
Total Current Assets	67.814	25.124	20.506
TOTAL	109.472	67.423	66.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	166.554	140.302	123.538
		Other Income	3.457	1.537	2.264
		TOTAL	170.011	141.839	125.802
Less	EXPENSES
		TOTAL	144.555	127.276	113.980
	PROFIT / (LOSS) BEFORE EXTRAORDINARY ITEMS		25.456	14.563	11.822
Less/ Add	EXTRAORDINARY ITEMS		0.016	0.020	0.136
	PROFIT/ (LOSS) BEFORE TAX		25.440	14.543	11.686
Less	TAX		8.605	5.147	4.126
	PROFIT/ (LOSS) AFTER TAX		16.835	9.396	7.560
	Earnings / (Loss) Per Share (Rs.)		369.55	229.17	184.39

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.90	6.62	6.01
Net Profit Margin (PBT/Sales)	(%)	15.27	10.37	9.46
Return on Total Assets (PBT/Total Assets}	(%)	23.64	21.71	17.97
Return on Investment (ROI) (PBT/Networth)		0.40	0.45	0.51
Debt Equity Ratio (Total Debt/Networth)		0.33	0.08	0.22
Current Ratio (Current Asset/Current Liability)		1.54	0.82	0.57

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.410	0.410	0.456
Reserves & Surplus	22.651	31.570	62.830
Net worth	23.061	31.980	63.286
long-term borrowings	5.146	2.614	0.000
Short term borrowings	0.000	0.000	21.000
Total borrowings	5.146	2.614	21.000
Debt/Equity ratio	0.223	0.082	0.332

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	123.538	140.302	166.554
		13.570	18.711

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	123.538	140.302	166.554
Profit	7.560	9.396	16.835
	6.12%	6.70%	10.11%

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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10457316	30/09/2013	7,500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B88430301
2	10315141	23/09/2011	10,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B24336547
3	10260845	28/12/2010	2,704,800.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B03407988

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans and Advances from Related Parties
From Directors	20.500	0.000
From Directors Relatives	0.500	0.000
Total	21.000	0.000
NOTE: The Advance received from Directors and Directors relatives does not carry any interest, the loan has been availed for short term needs.

CHANGE OF ADDRESS

The registered office of the company has been shifted from 1, Chinmaya Aparts, Puttanna Road, Basavanagudi, Bangalore - 560004, Karnataka, India to the present address w.e.f. 01.04.2009.

NATURE OF OPERATIONS

Subject is prominent hospital based out of Bangalore and is focused on building the Healthcare Sector as the core business strategy thereby capitalizing the surge in opportunities in the Healthcare Industry.

FIXED ASSETS

v Tangible Assets

· Plant and Machinery

· Office Equipment

· Hospital Equipment’s

· Furniture

· Vehicles

· Building

· Computer

· Leasehold Land

· Electrical Equipment

v Intangible Assets

· Trade Mark and Copy Right

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.32
UK Pound	1	Rs.100.04
Euro	1	Rs.82.65

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	MRI

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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.