MIRA INFORM REPORT

Report Date :

06.02.2014

IDENTIFICATION DETAILS

Name :	LOXIM INDUSTRIES LIMITED (w.e.f. 15.04.2008)
Formerly Known As :	LOXIM INDUSTRIES PRIVATE LIMITED (w.e.f. 13.08.2006) LOXIM COLORS PRIVATE LIMITED
Registered Office :	803, Shilp Building, C.G. Road, Navrangpura, Ahmedabad-380009, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.08.2003
Com. Reg. No.:	04-042820
Capital Investment / Paid-up Capital :	Rs.73.580 Millions
CIN No.: [Company Identification No.]	U24114GJ2003PLC042820
TAN No.: [Tax Deduction & Collection Account No.]	AHML00584D
PAN No.: [Permanent Account No.]	AAACL9043M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Dyestuff, Thermoplastic Compounds, Alloys and Optical Brighteners.
No. of Employees :	Information Decline by the management

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 750000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The ratings reflects increasing in external borrowing marked by stretched capital structure and weak debt coverage indicators. Further rating also reflects competitive Pressures face by the company from other established players in the industry. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered 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	ICRA
Rating	BB (Long Term Rating)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligations.
Date	June 2013

Rating Agency Name	ICRA
Rating	A4 (Short Term Rating)
Rating Explanation	Having minimal degree of safety and carry very high credit risk and are susceptible to default.
Date	June 2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED BY

Management non-cooperative (Tel. No.: 91-9377525313)

LOCATIONS

Registered Office/ Head Office and SBU - Dyes :	803, Shilp Building, C.G. Road, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-30800000/ 26404727
Tel. No.:	91-7377525313 ( Mr. Jaimin)
Fax No.:	91-79-26467488/ 30800001
E-Mail :	info@loxim.com (Corporate) dyes@loxim.com (SBU: Dyes) jaimin@loxim.com
Website :	http://www.loxim.com
Unit I :	185/ 2, Opposite Gujarat Refectories, IYAVA, Vasna, Sanand Virmgam Highway, Ahmedabad – 382 110, Gujarat, India
SBU – Polymers/ Unit II :	Plot No. 184, Sanand-Viramgam Highway, IYAVA Village, Sanand, District Ahmedabad – 382 110, Gujarat, India
Tel. No.:	91-2717-308000
Fax No.:	91-2717-308001
E-Mail :	polymers@loxim.com
Unit III :	Plot No.105/ 109-A, ECPL Road, Billage Ekalbara, Padra – 391 440, Vadodara, Gujarat, India

DIRECTORS

As on: 27.08.2013

Name :

Mr. Canon Jayprakash Patel

Designation :

Managing Director

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

06.11.1974

Date of Appointment :

01.04.2012

DIN No.:

00078065

PAN No.:

AAWPP0924A

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	U24231GJ1984PTC006946	DYE-O-PRINT(GUJ) PVT LTD	Director	01/12/1992	01/12/1992	-	Active	NO
2	U24114GJ2003PLC042820	LOXIM INDUSTRIES LIMITED	Managing director	01/04/2012	29/08/2003	-	Active	NO
3	U24100GJ2007PLC051763	UNISON INDUSTRIES LIMITED	Director	18/09/2007	18/09/2007	27/08/2008	Active	NO

Name :

Ms. Falguni Canon Patel

Designation :

Additional Director

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

20.06.1978

Date of Appointment :

29.09.2008

DIN No.:

00078102

PAN No.:

ACOPS3488J

Name :

Mr. Jayprakash Maneklal Patel

Designation :

Chairman cum Chief Executive Officer

Address :

Anik 13, Kairvi Bunglow, Vastrapur, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

09.02.1948

Date of Appointment :

01.04.2012

DIN No.:

00256790

PAN No.:

ABCPP1959N

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	U24231GJ1984PTC006946	DYE-O-PRINT(GUJ) PVT LTD	Director	22/05/1984	22/05/1984	-	Active	NO
2	U74200GJ1996PLC031291	SANAND ECO PROJECT LIMITED	Director	28/09/2001	28/09/2001	22/09/2007	Active	NO
3	U24114GJ2003PLC042820	LOXIM INDUSTRIES LIMITED	Whole-time director	01/04/2012	01/04/2007	-	Active	NO
4	L24110GJ1990PLC013967	RIDDHI SIDDHI GLUCO BIOLS LIMITED	Director	30/11/2012	18/10/2012	-	Active	NO

Name :

Mr. Jayesh Pravinchandra Mehta

Designation :

Additional Director

Address :

C/33, Satellite Apartments, Satelite Road, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

18.08.1967

Date of Appointment :

30.09.2011

DIN No.:

02140233

Name :

Mr. Madan Mohan Biswal

Designation :

Whole-time director

Address :

401, Sneh Srushti, Sambhav Press Road, Judges Bung lows Road, Ahmedabad, 380015, Gujarat, India

Date of Birth/Age :

21.09.1963

Date of Appointment :

01.11.2012

DIN No.:

06415835

PAN No.:

ABDPB5306Q

KEY EXECUTIVES

Name :	Mr. Devendra P Shah
Designation :	Secretary
Address :	A/1, Shamwi Apartment, 140, Sardar Patel Colony, Ahmedabad-380014, Gujarat, India
Date of Birth/Age :	20.08.1951
Date of Appointment :	16.05.2011
PAN No.:	ANVPS7137A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 27.08.2013

Names of Shareholders	No. of Shares
Canon Patel	2464730
Falguni Patel	1214070
Jayprakash Patel	2464730
Hina Patel	1214070
Surendra Patel	100
Dinesh Chandra Patel	100
Girish Shah	100
Jayesh Mehta	100
Total	7358000

Equity Share Break up (Percentage of Total Equity)

As on: 27.08.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyestuff, Thermoplastic Compounds, Alloys and Optical Brighteners.

Products :

Products	ITC Code
Aciddyes - Black	32041239
Directdyes - Yellow	32041481
Nylon 6 / Polyamide-6	39089090
Optical Brightner	32042010
Polycarbonate	39079990
Polyesterchips	39079120
Polypropelene	39029000
Reactivedyes - Yellow	32041610

GENERAL INFORMATION

No. of Employees :

Information Decline by the management

Bankers :

Axis Bank Limited, Trishul, 3rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Rupee term loans from banks	6.192	21.973
Foreign currency term loans from banks	0.000	16.325
Other loans and advances	0.082	1.195
SHORT TERM BORROWINGS
Working capital loans from banks	308.894	170.565
Total	315.168	210.058

Banking Relations :	--
Auditors :
Name :	Dharmesh Parikh and Company Chartered Accountants
Address :	303 / 304, "Milestone", Nr. Drive - in - Cinema, Opposite T.V. Toweer, Thaltej, Ahmedabad – 380054, Gujarat, India
PAN No.:	AAGFD1279G
Associates :	Dye-O-Print(Guj) Private Limited CIN No.: U24231GJ1984PTC006946

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,358,000	Equity Shares	Rs.10/- each	Rs.73.580 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	73.580	73.580	73.580
(b) Reserves & Surplus	114.039	80.862	78.074
(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)	187.619	154.442	151.654
(3) Non-Current Liabilities
(a) long-term borrowings	167.047	199.054	216.431
(b) Deferred tax liabilities (Net)	25.028	28.731	20.443
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.324	0.963	0.787
Total Non-current Liabilities (3)	193.399	228.748	237.661
(4) Current Liabilities
(a) Short term borrowings	318.917	170.583	113.486
(b) Trade payables	108.549	86.870	75.479
(c) Other current liabilities	55.733	69.241	63.450
(d) Short-term provisions	0.255	1.349	18.259
Total Current Liabilities (4)	483.454	328.043	270.674
TOTAL	864.472	711.233	659.989
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	269.150	280.370	251.017
(ii) Intangible Assets	0.479	0.460	0.165
(iii) Capital work-in-progress	0.000	0.000	12.100
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.001	0.006	0.006
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	59.321	50.875	42.300
(e) Other Non-current assets	0.000	0.000	0.877
Total Non-Current Assets	328.951	331.711	306.465
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	148.116	133.810	144.133
(c) Trade receivables	316.944	177.483	125.924
(d) Cash and cash equivalents	42.059	38.978	38.694
(e) Short-term loans and advances	12.420	12.294	18.487
(f) Other current assets	15.982	16.957	26.286
Total Current Assets	535.521	379.522	353.524
TOTAL	864.472	711.233	659.989

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	813.800	645.156	719.407
		Other Income	5.027	3.310	3.193
		TOTAL (A)	818.827	648.466	722.600
Less	EXPENSES
		Cost of materials consumed	564.943	438.780	450.339
		Purchases of stock-in-trade	1.070	0.000	26.142
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(4.843)	(9.017)	4.018
		Employee benefit expense	44.156	40.135	29.090
		Other expenses	133.812	120.633	131.528
		TOTAL (B)	739.138	590.531	641.117
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		79.689	57.935	81.483
Less	FINANCIAL EXPENSES (D)		33.758	33.377	16.978
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.931	24.558	64.505
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.777	15.063	13.212
	PROFIT BEFORE TAX (E-F) (G)		30.154	9.495	51.293
Less	TAX (H)		(1.510)	2.595	6.669
	PROFIT AFTER TAX (G-H) (I)		31.664	6.900	44.624
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		84.974	78.074	33.450
	BALANCE CARRIED TO THE B/S		116.638	84.974	78.074
	Earnings Per Share (Rs.)		4.30	0.94	3.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.87	1.06	6.17
Net Profit Margin (PBT/Sales)	(%)	3.71	1.47	7.13
Return on Total Assets (PBT/Total Assets}	(%)	3.49	1.34	7.92
Return on Investment (ROI) (PBT/Networth)		0.16	0.06	0.34
Debt Equity Ratio (Total Debt /Networth)		2.59	2.39	2.18
Current Ratio (Current Asset/Current Liability)		1.11	1.16	1.31

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	Yes
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

UNSECURED LOAN:

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Foreign currency term loans from banks	10.023	0.000
Loans and advances from related parties	150.751	159.562
SHORT TERM BORROWINGS
Intercorporate deposits	10.022	0.000
Other loans and advances	0.000	0.019
Total	170.796	159.581

OPERATION

The total income of the Company is Rs. 818.827 Millions, as compared to last year's income of Rs. 648.466 Millions, which shows increase of more than 26% over last year. Profit before depreciation and interest stood at Rs. 79.689 Millions as against last year of Rs. 57.935 Millions. The Net profit after tax stood at Rs. 31.664 Millions as compared to last year's of Rs. 6.900 Millions. Overall the performance of the Company is good, considering the general market scenario in India as well as other parts of the World.

FUTURE PROSPECTS

There is an overall volatility in global economy, owing to which the Directors feel that being vigilant is the need of the hour. Consolidation in working will ensure a better future standing of the Company. At the same time, exploring new, small but niche markets will be of prime importance this year.

Dyes unit of the Company is going good, both at export front as well as in domestic market, due to change of strategy of different product mix, as started in last year. Since the automobile sector is not doing good, the sales of Polymer division are bound to effect on profitability. However, in current year, more focus will be given to this unit to achieve good turnover. The focus on plastics will continue enabling stability in both turnover and profitability.

CORPORATE INFORMATION

Loxim Industries Private Limited was incorporated in 2003 and convertd intoLoxim Industries Limited in 2007. Presently, the company has two manufacturing units. The dyestuff unit, located at Padra (Gujarat) which is a 100% Export Oriented Unit(EOU). The polymer and optical brightener units are located at Sanand (Gujarat).

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10442999	07/08/2013	10,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B82096066
2	10432133	06/06/2013	685,335.00	AXIS BANK LIMITED	RAC AHMEDABAD, CV/ CE DEPARTMENT, 4TH FLOOR, SHIVALIK ISHAN, NR. C. N. VIDHYALAYA, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA	B77531515
3	10369847	21/12/2012 *	200,000,000.00	STATE BANK OF INDIA	MADHUPURA BRANCH, ADVANI MARKET, O/S DELHI DARWAJA, AHMEDABAD, GUJARAT -380004, INDIA	B67965996
4	10246970	22/10/2010	220,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A97340731
5	10246892	08/09/2010	200,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A97130793
6	10128031	29/04/2013 *	144,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B75468801
7	10152242	07/03/2013 *	144,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B71265201

* Date of charge modification

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Laboratory Equipments
• Furniture
• Office Equipments
• Vehicles
• Communication Equipments
• Computer
• Air Conditioner

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.62.45
UK Pound	1	Rs.102.01
Euro	1	Rs.84.35

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	DPH

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		32

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.