MIRA INFORM REPORT

Report Date :

05.02.2014

IDENTIFICATION DETAILS

Name :	KANCHAN OIL INDUSTRIES LIMITED
Registered Office :	Shitladah, Jhargram – 721507, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.02.1974
Com. Reg. No.:	21-029234
Capital Investment / Paid-up Capital :	Rs.24.873 Millions
CIN No.: [Company Identification No.]	U24119WB1974PLC029234
TAN No.: [Tax Deduction & Collection Account No.]	CALK03219G CALK00658A
PAN No.: [Permanent Account No.]	AABCK2533L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Vanaspati, Refined Edible Oil, Animal Feed.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 320000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profit of the company appears to be low during 2013. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings with some caution.

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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = (Suspended)
Date	25.10.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = (Suspended)
Date	25.10.2013

Reason: The suspension of ratings is on account of non-cooperation by company with CRISIL effects to undertake a review of the rating outstanding

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	Shitladah, Jhargram – 721507, West Bengal, India
Tel. No.:	91-3221-255388
Fax No.:	91-3221-256067
E-Mail :	savcal@rediffmail.com koiljg@sancharnet.in
Corporate Office :	Auchland Place, 2^nd Floor, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-22805788
Fax No.:	91-33-22805790

DIRECTORS

As on 30.09.2013

Name :

Mr. Bijay Kumar Agarwal

Designation :

Director

Address :

DA – 12, Salt Lake City, Block D, Kolkata – 700064, West Bengal, India

Date of Birth/Age :

06.01.1964

Qualification :

B.COM

Date of Appointment :

08.12.1994

DIN No.:

00552795

PAN No.:

ACGPA4047H

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	U24119WB1974PLC029234	KANCHAN OIL INDUSTRIES LIMITED	Director	08/12/1994	08/12/1994	-	Active	NO
2	U23101WB1998PTC088447	HIGAIN ORGANIC PRIVATE LIMITED	Director	14/12/1998	14/12/1998	-	Active	NO
3	U67120WB1997PTC086151	BAIJNATH SECURITIES PRIVATE LIMITED	Director	26/02/2003	26/02/2003	-	Active	NO
4	U45201WB2003PTC096560	BANSAL VEDIC VILLAGE PRIVATE LIMITED	Director	11/07/2003	11/07/2003	-	Active	NO
5	U13100WB2010PTC140629	NATURALL RESOURCES INDIA PRIVATE LIMITED	Director	04/01/2010	04/01/2010	-	Active	NO
6	U13100WB2010PLC155239	RIGVEDA RESOURCES LIMITED	Director	01/12/2010	01/12/2010	-	Active	NO

Name :

Mr. Shyam Sunder Nangalia

Designation :

Director

Address :

C/O Hastlings Property, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

16.06.1949

Qualification :

B.COM

Date of Appointment :

14.01.1988

DIN No.:

00553008

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	U24119WB1974PLC029234	KANCHAN OIL INDUSTRIES LIMITED	Director	14/01/1988	14/01/1988	-	Active	NO
2	U70109WB1993PTC058024	CHARISHMA PROPERTIES PRIVATE LIMITED	Director	01/12/1994	01/12/1994	16/04/2012	Active	NO
3	U51909WB1994PTC066321	ALTIUS BUILDERS PRIVATE LIMITED	Director	08/06/1995	08/06/1995	-	Active	NO
4	U70109WB1993PTC060450	SPANDAN PROJECTS PRIVATE LIMITED	Director	08/03/1996	08/03/1996	-	Active	NO
5	U45201WB1996PTC080590	ABODE PROMOTERS PRIVATE LIMITED	Director	10/08/1996	10/08/1996	08/11/2011	Active	NO
6	U45201WB1996PTC080597	RUSSEL DEVELOPERS PRIVATE LIMITED	Director	24/06/1998	24/06/1998	-	Active	NO
7	U45201WB1996PTC080588	CENTRAL PROPERTIES PRIVATE LIMITED	Director	15/12/1998	15/12/1998	-	Active	NO
8	U70101WB1995PTC072172	ROCK PROPERTIES PRIVATE LIMITED	Director	03/01/2000	03/01/2000	-	Active	NO
9	U51109WB1993PTC059487	MARITIME TREXIM PRIVATE LIMITED	Director	03/10/2000	03/10/2000	03/03/2008	Active	NO
10	U45201WB1996PTC080587	CAMAC TOWER PRIVATE LIMITED	Director	03/10/2000	03/10/2000	26/08/2008	Active	NO
11	U51503WB1993PTC057527	LIVFIT TREXIM PRIVATE LIMITED	Director	10/10/2003	10/10/2003	-	Active	NO
12	U45400WB2007PLC114928	BENGAL GLOBAL TECHNOCENTRE LIMITED	Director	02/04/2007	02/04/2007	30/11/2011	Active	NO
13	U45400WB2007PLC115868	BANGLA ASHIRBAD INDUSTRIAL INFRASTRUCTURES LIMITED	Director	17/05/2007	17/05/2007	-	Active	NO
14	U67110WB2007PTC116377	QUADEYE SECURITIES PRIVATE LIMITED	Director	17/09/2007	17/09/2007	29/08/2012	Active	NO
15	U72200DL1997PTC195154	SELECTICA INDIA PRIVATE LIMITED	Additional director	03/04/2009	03/04/2009	19/09/2009	Amalgamated	NO

Name :

Mr. Hemchand Agarwal

Designation :

Director

Address :

DA – 12, Salt Lake City, Kolkata – 700064, West Bengal, India

Qualification :

B.COM

Date of Appointment :

05.03.2012

DIN No.:

01159210

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	U15142WB1982PLC035602	EDIBLE PRODUCTS INDIA LIMITED	Director	28/12/1982	28/12/1982	-	Active	NO
2	U24119WB1974PLC029234	KANCHAN OIL INDUSTRIES LIMITED	Director	05/03/2012	05/03/2012	-	Active	NO

KEY EXECUTIVES

Name :	Kalika Prasad Mishra
Designation :	Company Secretary
Address :	359, G T Road, 1^st Floor, Flat No.10, Howrah – 711103, West Bengal, India
Date of Birth/Age :	08.06.1966
Date of Appointment :	20.03.2008
PAN No.:	AKQPM7364K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Reliance Trading Enterprises Limited, India	377750
Sharda Agarwal	75000
Shakuntala Agarwal	25000
Gaylord Sales Private Limited, India	160000
Ranjeet Agarwal	45000
Ramesh Agarwal	12500
Rita Agarwal	18500
Taramoni Nangalia and Omprakash Nangalia	30000
Mamta Commercial Company Limited, India	100000
Lakshmendra Kumar Agarwal	3000
Vikash Agarwal	3000
Kusum Agarwal	3000
Sushila Agarwal	3000
Uma Shanker Agarwal	2750
NangaliyaSunder Nangalia and Susilashyam	20750
Ram Awtar Agarwal	30500
Sitaram Agarwal	12500
Ashok Kumar Agarwal	15000
Bijay Kumar Agarwal	10000
Shyamlata Saraf	20000
Hemchand Agarwal	21900
Edible Products India Private Limited, India	20000
Seaways Commodities Private Limited, India	20000
Giridharilal Agarwal	94000
Gayatri Devi Agarwal	104000
Draupatai Devi Agarwal	29000
Snil Agarwal	1500
Sushiladevi Agarwal	2000
Balaji Kunj Private Limited, India	275000
Shyam Sunnder Nangalia	83750
Shweta Agarwal	50000
Vikas Agarwal	35000
Vishal Agarwal	30000
Swati Agarwal	73600
Ram Niwas Agarwal	55000
Viplove Agarwal	25000
Shyam Sunnder Nangalia	13000
Shyam Sunnder Nangalia	100000
Dax Partners, New York	322975
Raj Agarwal, Jerry City	164275
Total	2487250

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

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	19.59
Bodies corporate	37.50
Directors or relatives of Directors	42.91
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Vanaspati, Refined Edible Oil, Animal Feed.

Products :

Product Description	Item Code No.
Vegetable Oil	1516
Hydrogenerated Vegetable Oil	1515

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Andhra Bank, Karaya Road Branch, 4/2, Karaya Road, Kolkata - 700017, West Bengal, India

· ICICI Bank Limited

· Andhra Bank, Burrabazar Branch, 23/1, Maharshi Devendra Road, Kolkata – 700007, West Bengal, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short-term borrowings
Working capital loans from banks	32.314	13.829
Total	32.314	13.829

Banking Relations :	---
Auditors :
Name :	S A V and Associates Chartered Accountants
Address :	2, Garstin Place, Kolkata-700001, West Bengal, India
PAN No.:	AAUFS6137J
Associates :	Edible Products India Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2487250	Equity Shares	Rs.10/- each	Rs.24.873 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	24.873	24.873	24.873
(b) Reserves & Surplus	56.659	52.354	43.784
(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)	81.532	77.227	68.657
(3) Non-Current Liabilities
(a) long-term borrowings	149.367	137.960	23.161
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	149.367	137.960	23.161
(4) Current Liabilities
(a) Short term borrowings	32.314	13.829	48.466
(b) Trade payables	229.523	92.367	152.767
(c) Other current liabilities	74.413	40.756	40.700
(d) Short-term provisions	6.466	5.196	4.812
Total Current Liabilities (4)	342.716	152.148	246.745
TOTAL	573.615	367.335	338.563
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.400	23.315	25.466
(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	1.723	1.722	1.722
(c) Deferred tax assets (net)	32.356	33.551	34.636
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	53.479	58.588	61.824
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	304.389	105.829	95.305
(c) Trade receivables	114.254	115.679	104.338
(d) Cash and cash equivalents	37.826	0.654	34.058
(e) Short-term loans and advances	63.667	86.585	43.038
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	520.136	308.747	276.739
TOTAL	573.615	367.335	338.563

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1718.014	1503.544	1220.378
		Other Income	0.057	0.058	0.062
		TOTAL (A)	1718.071	1503.602	1220.440
Less	EXPENSES
		Cost of materials consumed	760.135	744.991	581.089
		Purchases of stock-in-trade	830.828	691.576	577.999
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(28.044)	(21.966)	(15.529)
		Employee benefit expense	7.381	6.393	6.399
		Other expenses	98.707	59.305	50.624
		TOTAL (B)	1669.007	1480.299	1200.582
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.064	23.303	19.858
Less	FINANCIAL EXPENSES (D)		37.434	7.848	1.060
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.630	15.455	18.798
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.861	5.417	6.847
	PROFIT BEFORE TAX (E-F) (G)		6.769	10.038	11.950
Less	TAX (H)		2.464	1.468	4.541
	PROFIT AFTER TAX (G-H) (I)		4.305	8.570	7.409
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.866	28.296	20.886
	BALANCE CARRIED TO THE B/S		41.171	36.866	28.296
	Earnings Per Share (Rs.)		1.73	3.45	2.98

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.25	0.57	0.61
Net Profit Margin (PBT/Sales)	(%)	0.39	0.67	0.98
Return on Total Assets (PBT/Total Assets}	(%)	1.25	3.02	3.95
Return on Investment (ROI) (PBT/Networth)		0.08	0.13	0.17
Debt Equity Ratio (Total Debt /Networth)		2.23	1.97	1.04
Current Ratio (Current Asset/Current Liability)		1.52	2.03	1.12

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

WORKING RESULTS

During the year, the Company achieved a gross turnover of Rs.1718.014 Millions against Rs.1503.544 Millions in the previous year. The Company has incurred profit of Rs.4.305 Millions after prior period adjustment and tax as against the profit of Rs.8.570 Millions made in the previous year. The directors hope to better in near future

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Intercorporate borrowings	141.993	130.023
Other loans and advances	7.374	7.937
Total	149.367	137.960

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10231946	12/07/2010	7,333,993.33	ANDHRA BANK	KARAYA ROAD BRANCH, 4/2, KARAYA ROAD, KOLKATA, WEST BENGAL - 700017, INDIA	A91198028
2	90255113	20/12/2013 *	533,000,000.00	ANDHRA BANK	BURRABAZAR BRANCH, 23/1 M.D RAOD, KOLKATA, WEST  BENGAL - 700007, INDIA	B94564572

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Motor Vehicles

· Office Equipment

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.62.68
UK Pound	1	Rs.101.98
Euro	1	Rs.84.78

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.