MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	SEPR REFRACTORIES INDIA PRIVATE LIMITED SAINT-GOBAIN WEBER (A DIVISION OF SEPR REFRACTORIES INDIA PRIVATE LIMITED)
Formerly Known As :	SEPR REFRACTORIES INDIA LIMITED (w.e.f. 02.11.2001) SEPR REFRACTORIES INDIA PRIVATE LIMITED
Registered Office :	5^th Level, Leela Business Park, Andheri-Kurla Road, Marol, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.11.2000
Com. Reg. No.:	11-191391
Capital Investment / Paid-up Capital :	Rs.33.834 Millions
CIN No.: [Company Identification No.]	U26922MH2000PLC191391
TAN No.: [Tax Deduction & Collection Account No.]	MUMS27267C
PAN No.: [Permanent Account No.]	AAFCS6190K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Electro Fused Cast Refractories.
No. of Employees :	550 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 4650000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is sound and healthy. Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for 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 – 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

NOT AVAILABLE

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 PARTED BY

Name :	Mr. Mohan Kumar
Designation :	Deputy Finance Manager
Contact No.:	91-491-3080333
Date :	13.12.2014

LOCATIONS

Registered/ Head Office :	5^th Level, Leela Business Park, Andheri-Kurla Road, Marol, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-40212121
Fax No.:	91-22-40212102
E-Mail :	mohankumar.n@saint-gobain.com neilesh.ved@saint-gobain.com
Website :	www.saint-gobain.com
Factory 1:	P.B. No. 1, Kanjikode (West), Post Office Palakkad – 678628, Kerala, India
Tel. No.:	91-491-2568655
Factory 2:	Located at · Wada, Near Mumbai, Maharashtra, India

DIRECTORS

As on 18.08.2014

Name :	Mr. Anand Yashavant Mahajan
Designation :	Director
Address :	Fiona 3^rd Floor, 176 Juhu Tara Road, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	03.01.1953
Date of Appointment :	08.04.2002
DIN No.:	00066320
Name :	Mr. Srinivasan Rengarajan
Designation :	Managing Director
Address :	201, Sreevatsa Nalaraj Residency, New Damu Nagar, Coimbatore – 641014, Tamilnadu, India
Date of Birth/Age :	20.07.1962
Qualification :	MSc, M Tech PGDM
Date of Appointment :	16.03.2006
DIN No.:	00266846
Name :	Mr. Bertrand Pierre Antoine Clavel
Designation :	Director
Address :	27 Rue D Hennemont, Saint Germain EN Lay E 78, France
Date of Birth/Age :	28.02.1966
Date of Appointment :	21.12.2009
DIN No.:	02106326
Name :	Mr. Alain Zanoli
Designation :	Director
Address :	2222 Jianhe LU Maiso N 41, Shanghai, 200336
Date of Birth/Age :	14.09.1959
Date of Appointment :	30.06.2011
DIN No.:	03643410
Name :	Mr. Raju Dayani
Designation :	Managing Director
Address :	Flat 1703, Valencia Building, Sundarban Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	25.06.1961
Date of Appointment :	13.04.2012
DIN No.:	05253897
Name :	Mr. Tyagarajan Bhaskaran
Designation :	Director
Address :	Flat No. B2, Plot No.5, 87, School Road, Anna Nagar (West) Extn., Chennai – 600101, Tamilnadu, India
Date of Birth/Age :	20.07.1960
Date of Appointment :	18.06.2014
DIN No.:	02168348

KEY EXECUTIVES

Name :	Mr. Mohan Kumar
Designation :	Deputy Finance Manager

MAJOR SHAREHOLDERS

As on 18.08.2014

Names of Shareholders	No. of Shares
SEPR SA, France	3000000
SEPR SA, France and Krishna Prasad	1
SEPR SA, France and Joseph Andrew Jude Pereira	1
SEPR SA, France and Aju Varghese Aprame	1
SEPR SA, France and Mahadeo Puranik	1
SEPR SA, France and Deepak Prabhakar Chindarkar	1
SEPR SA, France and Prakash Sabarad	1
SEPR SA, France and Anand Yashavant Mahajan	1
Saint Gobain Webber SA	383386
Total	3383393

As on 18.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
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 and Exporter of Electro Fused Cast Refractories
Exports :
Products :	Electro Fused Cast Refractories
Countries :	· France · USA · Russia · UK · Egypt
Imports :
Products :	Raw Materials
Countries :	· China · Japan
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Suppliers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

Customers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

No. of Employees :

550 (Approximately)

Bankers :

Bank Name:	Standard Chartered Bank
Branch:	Coimbatore, Tamilnadu, India
Name of the Person (with Designation):	Mr. Vivek Menon (Manager)
Contact Number:	91-9841014297 91-422-2544664
Name of Account Holder:	SEPR REFRACTORIES INDIA LIMITED
Account Number:	Nod Divulged
Account Since (Date/ Year of A/c Opening):	2012
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	CC/ OD : Rs. 500.000 Millions
Account Operation:	Satisfactory
Remarks: Banker gave us positive response about the subject company they are satisfied with their Banking Transaction.

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
SHORT TERM BORROWINGS
Term loans from banks	0.000	167.475
Total	0.000	167.475

Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Address :	Prestige Palladium Bayan, 8th Floor, 129-140, Greams Road, Thousand Lights, Chennai – 600006, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AABFL5878L
Holding Company :	SEPR SA, France
Ultimate Holding Company :	Compagnie de Saint-Gobain SA, France
Fellow Subsidiaries :	· Saint Gobain Ceramics and Plastics Inc, U.S.A · Grindwell Norton Limited CIN No.: L26593MH1950PLC008163 · Saint Gobain TM K.K Japan · Saint-Gobain Glass India Limited · Savoie Refractories, France · SEPR - Service Comptable, France · SGD · Saint Gobain Containers Inc., USA · Saint-Gobain Isover Gmbh, Germany · Hankuk Glass Industrial Inc · SGD Brasil Vidros Limited, Brazil · SGSMI Comatibilite Fournisseur · Saint Gobain Ceramics Pty Limited, Brazil · Saint Gobain Ceramics and Plasticos, Brazil · Saint-Gobain Vetri S.P.A · Saint-Gobain Oberland AG · Izocam Tic.Ve.San.A.S · Verallia Saint-Gobain Vicasa S.A · Beijing SEPR Refractories Co Limited, China · Saint-Gobain Mondego SA, Portugal · Saint Gobain Gyproc India Limited, India · Saint-Gobaim Weber-Broutin · Saint Gobain Ceramics Materials, China · SEPR Italia S.P.A · Valerof · Saint-Gobain Research India Limited · Saint Gobain (CREE Laboratory), France · Compagnie De Saint Gobain S A, France · Saint Gobain Weber AG, Switzerland · SODAMCO Emirates Factory · Saint Gobain Ceramiques Informatique and Organisation, France · SEPR Keramik Gmbh and Company · Saint-Gobain Adfors CZ S.R.O · Saint Gobain India Foundation

CAPITAL STRUCTURE

As on 18.08.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3383393	Equity Shares	Rs.10/- each	Rs.33.834 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	33.834	33.834	33.834
(b) Reserves & Surplus	1593.127	1441.779	1317.648
(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)	1626.961	1475.613	1351.482
(3) Non-Current Liabilities
(a) long-term borrowings	578.340	493.570	0.000
(b) Deferred tax liabilities (Net)	74.004	68.605	59.711
(c) Other long term liabilities	56.390	13.689	13.689
(d) long-term provisions	8.967	9.009	5.557
Total Non-current Liabilities (3)	717.701	584.873	78.957
(4) Current Liabilities
(a) Short term borrowings	439.515	220.998	558.479
(b) Trade payables	339.755	517.078	329.798
(c) Other current liabilities	312.120	615.636	254.331
(d) Short-term provisions	18.974	15.926	28.012
Total Current Liabilities (4)	1110.364	1369.638	1170.620
TOTAL	3455.026	3430.124	2601.059
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1135.461	1200.611	1163.233
(ii) Intangible Assets	11.818	19.827	24.352
(iii) Capital work-in-progress	999.930	528.270	101.921
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.151	0.151	0.101
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	48.044	94.483	14.409
(e) Other Non-current assets	0.005	9.394	23.117
Total Non-Current Assets	2195.409	1852.736	1327.133
(2) Current assets
(a) Current investments	0.000	15.000	0.000
(b) Inventories	599.260	787.818	549.869
(c) Trade receivables	423.674	466.190	504.833
(d) Cash and cash equivalents	6.080	68.797	34.188
(e) Short-term loans and advances	176.241	203.775	174.143
(f) Other current assets	54.362	35.808	10.893
Total Current Assets	1259.617	1577.388	1273.926
TOTAL	3455.026	3430.124	2601.059

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2849.495	2166.444	2451.069
		Other Income	13.829	12.834	4.814
		TOTAL (A)	2863.324	2179.278	2455.883
Less	EXPENSES
		Cost of Materials Consumed	843.302	852.545	1012.230
		Purchase of Stock-in-trade	165.607	120.407	47.731
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	165.845	(204.446)	(123.377)
		Employee Benefits Expenses	211.373	207.684	189.985
		Other Expenses	1019.141	871.933	826.138
		TOTAL (B)	2405.268	1848.123	1952.707
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		458.056	331.155	503.176
Less	FINANCIAL EXPENSES (D)		54.195	21.608	21.672
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		403.861	309.547	481.504
Less	DEPRECIATION/ AMORTISATION (F)		122.398	115.316	100.632
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		281.463	194.231	380.872
Less	TAX (H)		130.115	70.100	121.132
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		151.348	124.131	259.740
	Earnings / (Loss) Per Share (Rs.)		44.73	36.67	76.77

Expected Sales (2014-2015): Rs. 3000.000 Millions

The above information has been parted by Mr. Mohan Kumar (Deputy Finance Manager).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	5.31	5.73	10.60
Operating Profit Margin (PBIDT/Sales)	(%)	16.07	15.29	20.53
Return on Total Assets (PBT/Total Assets}	(%)	11.47	6.69	15.24
Return on Investment (ROI) (PBT/Networth)		0.17	0.13	0.28
Debt Equity Ratio (Total Debt /Networth)		0.63	0.48	0.41
Current Ratio (Current Asset/Current Liability)		1.13	1.15	1.09

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	33.834	33.834	33.834
Reserves & Surplus	1317.648	1441.779	1593.127
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1351.482	1475.613	1626.961
Long Term borrowings	0.000	493.570	57.340
Short Term borrowings	558.479	220.998	439.515
Total borrowings	558.479	714.568	496.855
Debt/Equity ratio	0.413	0.484	0.305

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	2,451.069	2,166.444	2,849.495
		(11.612)	31.529

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	2,451.069	2,166.444	2,849.495
Profit	259.740	124.131	151.348
	10.60%	5.73%	5.31%

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
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 CHARGE

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90378133	02/06/2006 *	3,300,000.00	PUNJAB NATIONAL BANK	MUMBAI, MAHARASHTRA, INDIA	-

*Date of modification Charges

UNSECURED LOANS

PARTICULARS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Other external commercial borrowings	578.340	493.570
SHORT TERM BORROWINGS
Term loans from banks	439.515	53.523
Total	1017.855	547.093

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

PRESS RELEASE:

GRINDWELL NORTON TO MERGE 3 FIRMS

Coimbatore, April 19:  

Grindwell Norton Limited (GNO) has decided to amalgamate with itself three group companies — Saint-Gobain Sekurit India Ltd (SGSIL), Saint-Gobain Crystals and Detectors India Ltd (SGCD) and SEPR Refractories India Ltd (SEPR) (collectively called transferor companies) — with the appointed date being April 1.

In a stock exchange filing, GNO said that its board of directors also approved the share exchange ratio. Under this, the merger ratio would be one equity share of Rs.5 each of the company for every 17 shares of Rs.10 each of SGSIL.

In respect of the other two group companies, the swap ratio would be 100 shares of Rs.5 each of the company for every 50 shares of Rs 10 each of SGCD and for every 38 equity shares of Rs.10 each of SEPR, respectively.

The proposed merger is subject to the requisite approvals. While GNO shares are listed in NSE and BSE, Saint-Gobain Sekurit India Ltd is listed in the BSE.

GRINDWELL SHAREHOLDERS BRING SAINT GOBAIN MERGER TO A HALT

The merger between Grindwell Norton (GNO) and group company Saint-Gobain Sekurit India (SGSIL) has fallen through after shareholders of GNO voted against the resolution to merge the two companies, reports fe Bureau in Mumbai.

According to a lawyer from a financial sector law firm, the postal decision can be challenged in the high court by the company if the resolution is passed in the court-convened meeting. “However, the chances of the company winning the case would depend on the merits of the case,” he said.

Shares of Saint-Gobain crashed 11.6% to end at R12.81 on Thursday while shares of GNO fell marginally by 1.2% to R271.7. According to the proposed scheme of amalgamation, shareholders of SGSL are to receive one share of GNO for every 17 shares of Saint-Gobain held by them. Notably, Saint-Gobain's offer to delist last year, too, was unsuccessful as the sharedolders pushed up the price of the delisting offer to R90 from the original floor price of R31, compelling the company to back out from the delisting bid.

According to the details submitted to the exchanges, 60.4% of public shareholders and 94% of public institutional shareholders of GNO voted against the resolution. Analysts reckon the high percentage of public shareholder voting indicated that some large groups of public shareholders had collectively voted against the proposal.

On the other hand, 24.09% of SGSIL shareholders voted against the merger proposal.

Interestingly, proxy advisory firm IiAS advised shareholders to vote in favour of the GNO merger with its three group companies, including Saint-Gobain. IiAS was not in favour of GNO buying SGSIL since it had lower profits in FY13 and operated in a different space (manufacturing and trading of automotive glass).

However, IiAS had observed that GNO's total income and net profit would increase by 39% and 16% respectively, its earnings per share would decrease marginally by 10%, and the valuation of GNO would broadly remained unchanged if GNO chose to merge with SGSIL and the other two group companies two group companies SEPR Refractories India (SEPR) and Saint-Gobain Crystals and Detectors India (SGCD). The proxy advisory firm also believed that GNO could achieve operational synergies with SEPR and SGCD, which were part of the same division (High Performance Materials Division) as GNO.

In April, the announcement of Saint-Gobain's plan to merge with group firm Grindwell Norton (GNO) had led to a sell-off in the

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.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.