MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	M J BIOPHARM PRIVATE LIMITED (w.e.f. 15.01.2002)
Formerly Known As :	SHREYA HEALTH CARE PRIVATE LIMITED (w.e.f. 01.09.1999) M J BIOPHARM PRIVATE LIMITED (w.e.f. 11.02.1998) LAXMI SMF (INDIA) ENERGY RESOURCES PRIVATE LIMITED
Registered Office :	113, Jolly Maker Chambers, 2, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.08.1987
Com. Reg. No.:	11-044458
Capital Investment / Paid-up Capital :	Rs.130.100 Millions
CIN No.: [Company Identification No.]	U29249MH1987PTC044458
PAN No.: [Permanent Account No.]	AADCS9530P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Formulation.
No. of Employees :	Information decline by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is the flagship company of the MJ group. It is an established company having fine track. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitments. 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Guhas
Designation :	Finance Head
Contact No.:	91-22-2740233
Date :	26.08.2014

LOCATIONS

Registered Office :	113, Jolly Maker Chambers, 2, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22020644/61454000
Fax No.:	91-22-22048031/30
E-Mail :	mjgroup@mj-india.com guhas@mj-india.com
Website :	http://www.mjbiopharm.com
Factory :	L-7, M.I.D.C. Industrial Area, District Raigad, Taloja, Navi Mumbai-410207, Maharashtra, India
Tel. No.:	91-22-27402781/27402331/2740956/27410770
Fax No.:	91-22-27402311

DIRECTORS

As on 19.09.2013

Name :

Mr. Amol Jashvant Shah

Designation :

Managing Director

Address :

11, A Ashiana, 5, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

10.11.196500

Date of Appointment :

03.12.1997

Din No.:

00171006

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	U24120MH1986PTC038906	MARVEL CHEMICALS PRIVATE LIMITED	Director	29/05/1986	29/05/1986	-	Active	NO
2	U17100MH1972PTC015802	M J EXPORTS PRIVATE LIMITED	Director	28/12/1989	28/12/1989	-	Active	NO
3	U99999MH1980PTC022132	APTEK ELECTRONICS PRIVATE LIMITED	Director	01/02/1992	01/02/1992	-	Amalgamated	NO
4	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Managing director	03/12/1997	03/12/1997	-	Active	NO
5	U30007MH1984PTC033383	APTEK COMPUTERS PRIVATE LIMITED	Director	01/08/1998	01/08/1998	-	Amalgamated	NO
6	U65990MH1984PLC032444	M J HOLDINGS AND LEASING LIMITED	Director	01/08/1998	01/08/1998	-	Amalgamated	NO
7	U24230MH1999PTC119044	MARVEL LIFE SCIENCES PRIVATE LIMITED	Director	01/01/2000	01/01/2000	-	Active	NO
8	U15311MH1991PTC061659	STONEWOOD CEM-FAB (INDIA) PRIVATE LIMITED	Director	17/02/2000	17/02/2000	19/10/2007	Amalgamated	NO
9	U24230GJ1993PTC020258	BDR LIFESCIENCES PRIVATE LIMITED	Director	22/09/2000	22/09/2000	17/05/2010	Active	NO
10	U74999MH1980PTC022167	FINE FRAGRANCES PRIVATE LIMITED	Director	22/11/2000	22/11/2000	-	Active	NO
11	U24230MH2003PTC143625	INNOVA LIFE SCIENCES PRIVATE LIMITED	Director	23/12/2003	23/12/2003	-	Active	NO
12	U01117MH2004PTC148792	FINE AROMATICS AND HERBAL EXTRACTS PRIVATE LIMITED	Director	23/09/2004	23/09/2004	-	Active	NO
13	U24234MH2002PTC136337	SCIGEN BIOPHARMA PRIVATE LIMITED	Additional director	09/11/2010	09/11/2010	-	Active	NO

Name :

Mr. Jashvantlal Shah

Designation :

Alternate Director

Address :

11, A Ashiana, 5, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

19.11.1936

Date of Appointment :

07.01.2009

Din No.:

01422531

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	U17100MH1972PTC015802	M J EXPORTS PRIVATE LIMITED	Director	17-05-72	17-05-72	-	Active	NO
2	U74999MH1980PTC022167	FINE FRAGRANCES PRIVATE LIMITED	Director	13-06-80	13-06-80	-	Active	NO
3	U65990MH1984PLC032444	M J HOLDINGS AND LEASING LIMITED	Director	21-03-84	21-03-84	-	Amalgamated	NO
4	U30007MH1984PTC033383	APTEK COMPUTERS PRIVATE LIMITED	Director	07-07-84	07-07-84	-	Amalgamated	NO
5	U24120MH1986PTC038906	MARVEL CHEMICALS PRIVATE LIMITED	Director	11-02-86	11-02-86	-	Active	NO
6	U99999MH1987GAT042776	M.J.INSTITUTE OF RESEARCH	Director	03-03-87	03-03-87	-	Active	NO
7	U51101DL1989PTC035109	TECNOVA OVERSEAS PRIVATE LIMITED	Director	17-02-89	17-02-89	-	Active	NO
8	U91110MH1991GAP060635	INDO-MALGACHE CHAMBER OF COMMERCE AND INDUSTRY IN INDIA	Director	06-03-91	06-03-91	-	Active	NO
9	U99999MH1980PTC022132	APTEK ELECTRONICS PRIVATE LIMITED	Director	07-01-92	07-01-92	-	Amalgamated	NO
10	U24230MH1999PTC119044	MARVEL LIFE SCIENCES PRIVATE LIMITED	Director	01-07-99	01-07-99	-	Active	NO
11	U01117MH2004PTC148792	FINE AROMATICS AND HERBAL EXTRACTS PRIVATE LIMITED	Director	23-09-04	23-09-04	-	Active	NO
12	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Alternate director	07-01-09	07-01-09	-	Active	NO

Name :

Adam Tomasz Polonek

Designation :

Director

Address :

Wlodarzewska Street, 67E/29, 02-384, Warshow, Poland

Date of Birth/Age :

30.12.1976

Date of Appointment :

06.10.2008

Din No.:

02608797

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	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Director	30-09-09	06-10-08	-	Active	NO
2	U24234MH2002PTC136337	SCIGEN BIOPHARMA PRIVATE LIMITED	Additional director	01-12-12	01-12-12	-	Active	NO

Name :

Mr. Joanna Barbara Szymanska Bulska

Designation :

Director

Address :

Wiejska 28, 05-500, Jozefoslaw, Poland

Date of Birth/Age :

07.12.1963

Date of Appointment :

06.10.2008

Din No.:

02608824

Name :

Mr. Dhaval Vipin Joshi

Designation :

Director

Address :

501-B, Nandini CTS No. 178, F.P. NO. 31-B, 10th Road, TPS III, NR. V.N.Desai Hospital, Santacruz (East), Mumbai- 400 055 Maharashtra, India

Date of Birth/Age :

20.05.1965

Date of Appointment :

22.06.2013

Din No.:

06442736

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	U24234MH2002PTC136337	SCIGEN BIOPHARMA PRIVATE LIMITED	Additional director	10-12-12	10-12-12	-	Active	NO
2	U29249MH1987PTC044458	M J BIOPHARM PRIVATE LIMITED	Director	19-09-13	22-06-13	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Guhas
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2013

Names of Shareholders	No. of Shares
M J Bioton Lifesciences Limited, Cyprus	13009999
Bioton Trade Sp. Z.O.O., Poznanski	1
TOTAL	13010000

Equity Share Break up (Percentage of Total Equity)

As on 19.09.2013

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Formulation.

GENERAL INFORMATION

No. of Employees :

Information decline by the management

Bankers :

· ABN Amro Bank N. V., 74, Sakhar Bhavan, 7th Floor, Nariman Point,, Mumbai - 400021, Maharashtra, INDIA

· ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· Export-Import Bank of India, Centre One Building, Floor 21, World Trade Entre Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· Canara Bank, Overseas Branch. Nariman Point, Dalamal Tower, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Loans repayable on demand from banks	0.000	0.179
SHORT TERM BORROWINGS
Working capital loans from banks	20.488	4.911
Total	20.488	5.090

Banking Relations :

--

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr. Annie Besant Road, Opposite Shivsagar Estate, Worki, Mumbai-400018, Maharashtra, India

PAN No:

AACFD4815A

Holding Company :

MJ Bioton Life Sciences Limited, Cyprus

Wholly Owned Subsidiary :

Marvel Lifesciences Private Limited

CAPITAL STRUCTURE

As on 19.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions
5000000	Preferences Shares	Rs.10/- each	Rs. 50.000 Millions
	Total		Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13010000	Equity Shares	Rs.10/- each	Rs.130.100 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	130.100	130.100	130.100
(b) Reserves & Surplus	398.105	280.203	241.545
(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)	528.205	410.303	371.645
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.179	6.665
(b) Deferred tax liabilities (Net)	25.671	19.103	21.744
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	11.570	8.268	6.964
Total Non-current Liabilities (3)	37.241	27.550	35.373
(4) Current Liabilities
(a) Short term borrowings	20.488	4.911	8.026
(b) Trade payables	397.230	353.409	217.121
(c) Other current liabilities	28.380	13.877	19.548
(d) Short-term provisions	51.880	22.336	6.519
Total Current Liabilities (4)	497.978	394.533	251.214
TOTAL	1063.424	832.386	658.232
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	231.456	232.302	240.828
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	7.208	0.822	0.470
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	27.881	23.498	27.159
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	266.545	256.622	268.457
(2) Current assets
(a) Current investments	0.000	25.707	25.323
(b) Inventories	219.023	114.647	81.348
(c) Trade receivables	391.176	371.781	213.904
(d) Cash and cash equivalents	88.243	16.513	20.444
(e) Short-term loans and advances	88.472	39.348	38.713
(f) Other current assets	9.965	7.768	10.043
Total Current Assets	796.879	575.764	389.775
TOTAL	1063.424	832.386	658.232

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	1306.186	1236.735	877.660
Less	EXPENSES		1132.016	1181.904	865.751
	PROFIT BEFORE TAX		174.170	54.831	11.909
Less	TAX		56.268	16.174	3.206
	PROFIT AFTER TAX		117.902	38.657	8.703
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		167.203	128.545	119.843
	BALANCE CARRIED TO THE B/S		285.105	167.202	128.546
	EARNINGS IN FOREIGN CURRENCY		934.089	899.347	561.007
	Earnings Per Share (Rs.)		0.91	0.30	0.07

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.03	3.13	0.99
Return on Total Assets (PBT/Total Assets}	(%)	16.49	6.59	1.81
Return on Investment (ROI) (PBT/Networth)		0.33	0.13	0.03
Debt Equity Ratio (Total Debt /Networth)		0.04	0.01	0.04
Current Ratio (Current Asset/Current Liability)		1.60	1.46	1.55

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	130.100	130.100	130.100
Reserves & Surplus	241.545	280.203	398.105
Net worth	371.645	410.303	528.205
long-term borrowings	6.665	0.179	0.000
Short term borrowings	8.026	4.911	20.488
Total borrowings	14.691	5.090	20.488
Debt/Equity ratio	0.040	0.012	0.039

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)
Total Sales	877.660	1236.735	1306.186
		40.913	5.616

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Sales	877.660	1236.735	1306.186
Profit	8.703	38.657	117.902
	0.99%	3.13%	9.03%

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	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10477028	09/01/2014	25,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	B96125646
2	10477031	20/12/2013	120,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	B96126008

* Date of charge modification

FIXED ASSETS

· Land Leasehold

· Building

· Plant and Machinery

· Electric Installations

· Furniture, Fixtures and Office Equipments

· 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 records 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. 60.49
UK Pound	1	Rs. 100.32
Euro	1	Rs.79.91

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RSM
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.