MIRA INFORM REPORT

Report Date :

11.12.2014

IDENTIFICATION DETAILS

Name :	FERTILISERS AND CHEMICALS TRAVANCORE LIMITED
Registered Office :	Eloor PO Udyogmandal, Alwaye Ernakulam - 683501, Kerala
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.09.1943
Com. Reg. No.:	09-000371
Capital Investment / Paid-up Capital :	Rs. 6470.720 Millions
CIN No.: [Company Identification No.]	L24129KL1943GOI000371
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACT6204C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Fertilisers and Petrochemicals.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses which has resulted in to fully erosion of net worth. However, business is active. Payments terms are reported to be slow. The company can be considered for business dealings on a secured 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating (BB)
Rating Explanation	Moderate risk of default
Date	April 15, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating (A4+)
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	April 15, 2014

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 DECLINED

Management non co-operative (91-484-2545410)

LOCATIONS

Registered Office :	Eloor PO Udyogmandal, Alwaye Ernakulam - 683501, Kerala, India
Tel. No.:	91-484-2546486
Fax No.:	91-484-2546637
E-Mail :	kvbnair@factltd.com
Website :	http://www.fact.co.in

DIRECTORS

As on 26.09.2014

Name :

Mr. Jaiveer Srivastava

Designation :

Chairman cum Manging Director

Address :

S-1, Fact Township, Udyogamandal, Ernakulam – 683501, Kerala

Date of Birth/Age :

23.11.1958

Date of Appointment :

01.04.2013

DIN No.:

01858412

PAN No.:

AAAPS2322K

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	U74899DL1953GOI002220	HINDUSTAN PREFAB LTD	Managing director	01/08/2006	01/08/2006	01/04/2013	Active	NO
2	L24129KL1943GOI000371	FERTILISERS AND CHEMICALS TRAVANCORE LTD	Managing director	01/04/2013	01/04/2013	-	Active	NO
3	U85300DL1955NPL002999	THE FERTILISER ASSOCIATION OF INDIA.	Director	17/04/2013	17/04/2013	-	Active	NO
4	U26992KL2008PLC022347	FACT- RCF BUILDING PRODUCTS LIMITED	Director	27/09/2013	03/05/2013	-	Active	NO

Name :

Mr. Muthusamy Ponnuchany

Designation :

Whole Time Director

Address :

S-2, Fact Township, Udyogamandal, Ernakulam – 683501, Kerala, India

Date of Birth/Age :

10.05.1957

Date of Appointment :

18.03.2011

DIN No.:

00750975

PAN No.:

ACGPM1704P

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	L25111UP1972GOI003599	SCOOTERS INDIA LIMITED	Whole-time director	23/04/2008	12/09/2006	17/03/2011	Active	NO
2	L24129KL1943GOI000371	FERTILISERS AND CHEMICALS TRAVANCORE LTD	Director	18/03/2011	18/03/2011	-	Active	NO
3	U26992KL2008PLC022347	FACT- RCF BUILDING PRODUCTS LIMITED	Director	29/09/2011	28/03/2011	-	Active	NO

Name :

Mr. Anil Kizhkepat Vayyavanat

Designation :

Whole Time Director

Address :

763 K (34/1632), Durga 49, Ernakulam. Kochi – 683501, Kerala, India

Date of Birth/Age :

29.06.1957

Date of Appointment :

28.06.2011

DIN No.:

03572839

PAN No.:

ACRPA4608B

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	L24129KL1943GOI000371	FERTILISERS AND CHEMICALS TRAVANCORE LTD	Director	28/06/2011	28/06/2011	-	Active	NO
2	U26992KL2008PLC022347	FACT- RCF BUILDING PRODUCTS LIMITED	Director	29/09/2011	29/09/2011	-	Active	NO

Name :

Mr. Subramaian Velu

Designation :

Whole Time Director

Address :

1-499, Muniyandikovil Street, Nakkanakulampo, Madurai – 625014, Tamilnadu, India

Date of Birth/Age :

18.09.1957

Date of Appointment :

29.11.2013

DIN No.:

06769829

PAN No.:

ABOPS6430M

Voter ID No.:

FFT5266093

Other Directorship :

Name :

Mr. Krishnan Murari Gupta

Designation :

Director

Address :

D-11 Panda road, New Delhi – 110003, Delhi, India

Date of Birth/Age :

25.09.1957

Date of Appointment :

26.09.2014

DIN No.:

06890585

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	L32201TN1966GOI005469	MADRAS FERTILIZERS LIMITED	Nominee director	01/05/2014	01/05/2014	-	Active	NO
2	L24129KL1943GOI000371	FERTILISERS AND CHEMICALS TRAVANCORE LTD	Director	26/09/2014	06/05/2014	-	Active	NO

Name :

Mr. Sushil Kumar Lohani

Designation :

Director

Address :

S-21, Niveditha Kunj, Sector – 10, R. K. Puram, New Delhi - 110022, Delhi, India

Date of Birth/Age :

05.01.1972

Date of Appointment :

26.09.2014

DIN No.:

06912948

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	L24129KL1943GOI000371	FERTILISERS AND CHEMICALS TRAVANCORE LTD	Director	26/09/2014	24/06/2014	-	Active	NO
2	U74899DL1978GOI008915	HINDUSTAN FERTILIZER CORPORATION LIMITED	Managing director	01/07/2014	01/07/2014	-	Active	NO
3	U74899DL1961GOI003439	FERTILIZER CORPORATION OF INDIA LIMITED	Managing director	01/07/2014	01/07/2014	-	Active	NO
4	L24110MH1978GOI020185	RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED	Nominee director	19/09/2014	02/07/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. K. V. Balakrishnan Nair
Designation :	Company Secretary
Address :	Kurungattu House, Keexhillam, Ernakulam, Kochi, – 683541, Kerala, India
Date of Birth/Age :	29.05.1964
Date of Appointment :	01.08.2006
PAN No.:	ACSPB3658H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government	582364776	90.00
Sub Total	582364776	90.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	582364776	90.00
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	4840	0.00
Central Government / State Government(s)	2585000	0.40
Insurance Companies	915390	0.14
Any Others (Specify)	55400424	8.56
Special Investment Fund	55400424	8.56
Sub Total	58905654	9.10
(2) Non-Institutions
Bodies Corporate	468573	0.07
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	3628262	0.56
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	643731	0.10
Any Others (Specify)
Non Resident Indians	807443	0.12
Clearing Members	131425	0.02
Hindu Undivided Families	122110	0.02
Sub Total	5801544	5365948
Total Public shareholding (B)	64707198	10.00
Total (A)+(B)	647071974	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	647071974	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fertilisers and Petrochemicals

Products :

Product Description	Item Code No. (ITC Code)
Complex Fertilisers	31052000
Ammonium Sulphate	31022100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Divulged

Bankers :

· State Bank of Travancore, Udyogamandal Branch, Udyogamandal, Kochi - 683501, Kerala, India

· State Bank of Hyderabad

· State Bank of India, Calvethy, Kochi - 682001, Kerala, India

· Canara Bank

· Dena Bank

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Rupee term loans from others	1897.580	2180.310
Short Term Borrowing
Loans repayable on demand from banks	8281.277	7086.179
Total	10178.857	9266.489

Auditors :
Name :	K. Varghese and Company Chartered Accountant
PAN No.:	AAAFK9688G
Memberships :	--
Collaborators :	--
Joint Venture :	FACT- RCF Building Products Limited, India CIN No.: U26992KL2008PLC022347

CAPITAL STRUCTURE

As on 26.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs. 10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
647071974	Equity Shares	Rs.10/- each	Rs. 6470.720 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6470.720	6470.720	6470.720
(b) Reserves & Surplus	(11038.096)	(8388.204)	(4848.243)
(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)	(4567.376)	(1917.484)	1622.477
(3) Non-Current Liabilities
(a) long-term borrowings	1897.580	2180.310	2402.300
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1953.019	1873.546	1773.995
Total Non-current Liabilities (3)	3850.599	4053.856	4176.295
(4) Current Liabilities
(a) Short term borrowings	8281.277	7086.179	4385.787
(b) Trade payables	5295.775	3217.377	5353.730
(c) Other current liabilities	5395.063	3986.963	3044.586
(d) Short-term provisions	564.858	568.100	477.893
Total Current Liabilities (4)	19536.973	14858.619	13261.996
TOTAL	18820.196	16994.991	19060.768
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2746.616	2398.484	2719.235
(ii) Intangible Assets	14.020	35.100	56.180
(iii) Capital work-in-progress	238.307	531.262	251.012
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	213.555	213.555	182.315
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	15.844	62.179	21.207
(e) Other Non-current assets	151.842	123.118	55.532
Total Non-Current Assets	3380.184	3363.698	3285.481
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	6208.795	6744.526	7575.449
(c) Trade receivables	114.742	82.585	112.539
(d) Cash and cash equivalents	773.813	323.665	701.710
(e) Short-term loans and advances	1475.722	1540.278	1843.635
(f) Other current assets	6866.940	4940.239	5541.954
Total Current Assets	15440.012	13631.293	15775.287
TOTAL	18820.196	16994.991	19060.768

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	22093.813	23157.668	28760.483
		Other Income	139.600	197.930	367.017
		TOTAL	22233.413	23355.598	29127.500
Less	EXPENSES
		Cost of Materials Consumed	15248.968	14246.427	17491.801
		Purchases of Stock-in-Trade	672.986	872.152	1348.479
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(336.769)	1104.420	(485.876)
		Employees benefits expense	2574.955	2387.083	2247.252
		Other expenses	5390.332	6279.837	6534.315
		Exceptional Items	(1038.370)	(3.929)	0.000
		TOTAL	22512.102	24885.990	27135.971
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(278.689)	(1530.392)	1991.529
Less	FINANCIAL EXPENSES		1918.305	1553.782	1367.658
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(2196.994)	(3084.174)	623.871
Less/ Add	DEPRECIATION/ AMORTISATION		452.569	455.444	425.890
	PROFIT BEFORE TAX		(2649.563)	(3539.618)	197.981
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		(2649.563)	(3539.618)	197.981
	EARNINGS IN FOREIGN CURRENCY		0.000	395.160	1538.901
	IMPORTS
		Raw Materials	7795.640	7060.053	10052.650
		Trade Products	551.985	753.020	2159.916
		Components and Stores parts	92.696	76.566	51.901
		Capital Goods	14.815	23.726	2.823
		TOTAL IMPORTS	8455.136	7913.365	12267.290
	Earnings Per Share (Rs.)		(4.09)	(5.47)	0.31

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(11.99)	(15.28)	0.69
Operating Profit Margin (PBDIT / Sales)	(%)	(1.26)	(6.61)	6.92
Return on Total Assets (PBT/Total Assets}	(%)	(14.42)	(21.78)	1.06
Return on Investment (ROI) (PBT/Networth)		0.58	1.85	0.12
Debt Equity Ratio (Total Debt /Networth)		(2.23)	(4.83)	4.18
Current Ratio (Current Asset/Current Liability)		0.79	0.92	1.19

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	6470.720	6470.720	6470.720
Reserves & Surplus	(4848.243)	(8388.204)	(11038.096)
Net worth	1622.477	(1917.484)	(4567.376)
long-term borrowings	2402.300	2180.310	1897.580
Short term borrowings	4385.787	7086.179	8281.277
Total borrowings	6788.087	9266.489	10178.857
Debt/Equity ratio	4.184	(4.833)	(2.229)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	28760.483	23157.668	22093.813
		(19.481)	(4.594)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	28760.483	23157.668	22093.813
Profit	197.981	(3539.618)	(2649.563)
	0.69%	(15.28)%	(11.99)%

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	No
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	Yes
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10406931	23/01/2013	600,000,000.00	BANK OF BARODA	PB No 1772, PALLIMUKKU, MG ROAD, ERNAKULAM, Kerala - 682016, INDIA	B69057883
2	90022536	31/03/2000	25,000,000.00	CANARA BANK	BANERJI ROAD, ERNAKULAM, Kerala, INDIA	-
3	90020916	06/02/2014 *	12,046,200,000.00	STATE BANK OF TRAVANCORE	UDYOGAMANDAL BRANCH, UDYOGAMANDAL, KOCHI, Kerala - 683501, INDIA	B97794606

* Date of charge modification

FINANCIAL RESULTS

Despite reasonable production and marketing performance of the company, the Financial results for the year 2013-2014 shows a loss of Rs. 2649.563 Millions as against a loss of Rs. 3539.618 Millions during the year 2012-2013.

Due to accumulated loss, your directors are not recommending any dividend for the financial year 2013-14.

PERFORMANCE HIGHLIGHTS

The fertilizer production performance of the Company which was on an average level during the first quarter of the financial year 2013-14 has improved steadily reaching excellent levels of production during the second and third quarter of the financial year 2013-14.

Captive production of ammonia was stopped in January 2014 due to exorbitantly high price of LNG.  To continue production of fertilizers, FACT changed over its operations to imported ammonia.  Operations with imported ammonia limits the achievable production to around 75% of the normal production due to logistic constraints affecting the maximum quantity of imported ammonia that can be handled and this has affected the production during 4^th quarter.

From the beginning of the year 2013-14 production of Ammonium Sulphate has been through the direct neutralization route since caprolactam production was not on line.

During Financial Year 2013-14, FACT Marketing Division sold 6,27,996 MT Factamfos and 1,66,419 MT of Ammonium Sulphate which are 16% and 23% higher respectively compared to  last year.  Bagged gypsum sales were 44,524 MT clocking a growth of 60% over last year. The sale of  organic manure during the year 2013-14 were 8,849MT against 4,550 MT during the previous year showing  a growth of 95%.  Total sales of bagged products were 8,97,855 MT compared to 7,69,203 MT during the last year, which translates to a growth of 16.7%.  FACT’s Market Shares in South India for Complex 20:20 and Ammonium Sulphate for financial year 2013-14 were 30.90% and 79.11% respectively against 27% and 85% in financial year 2012-13. The entire sales were on cash and carry basis.

AWARDS

FACT Udyogamandal Complex has been awarded the winner for outstanding Safety performance for the year 2013 in the category of very large size chemical industries by the National Safety Council of India, Kerala Chapter. The National Safety Council of India, Kerala Chapter selected the Safety Committee in Udyogamandal Complex for Best Safety Committee Award for the year 2013.

FIXED ASSETS

• Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office equipment
• 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.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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		12

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.