MIRA INFORM REPORT

Report Date :

15.02.2014

IDENTIFICATION DETAILS

Name :	SCOTT EDIL PHARMACIA LIMITED
Registered Office :	Plot No.54-55, Industrial Area, Phase-II, Chandigarh – 160002
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.01.2003
Com. Reg. No.:	53-025699
Capital Investment / Paid-up Capital :	Rs.35.927 Millions
CIN No.: [Company Identification No.]	U24232CH2003PLC025699
TAN No.: [Tax Deduction & Collection Account No.]	PTLS15798G
PAN No.: [Permanent Account No.]	AAHCS1643K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of pharmaceutical product.
No. of Employees :	1002 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 2200000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Borrowing of the company has increased. However, trade relations are reported to be fair. Business is active. Payments term are reported to be slow but correct. The company can be considered for business dealing 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 worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BB (Downgraded from BBB-)
Rating Explanation	Moderate risk of default.
Date	11.12.2013

Rating Agency Name	CRISIL
Rating	Short term rating: A4+
Rating Explanation	Minimal degree of safety it carry high credit risk
Date	11.12.2013

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 PARTED BY

Name :	Mr. Akhilesh
Designation :	Finance Department
Contact No.:	91-9878610690
Date :	13.02.2014

LOCATIONS

Registered Office :	Plot No.54-55, Industrial Area, Phase-II, Chandigarh – 160002, India
Tel. No.:	91-172-5085736/5049774
Mobile No.:	91-9878610690 (Mr. Akhilesh)
Fax No.:	Not Available
E-Mail :	rampaulca@yahoo.co.in sakhilesh@scott-edit.com
Website :	www.scott-edit.com
Location :	Owned
Corporate Office:	1057, Industrial Area, Phase 2, Chandigarh, India
Tel. No.:	91-172-5085736/5017150/5062042/5075267
Fax No.:	91-172-5087952/5071336
Factory :	56, EPIP, Phase I, Jharmajhari Baddi, Himachal Pradesh, India
Tel. No.:	91-1795-271069
Fax No.:	91-1795-271068
Area:	25000 Sq ft
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Sanjeev Kumar Aggarwal

Designation :

Managing director

Address :

H No.: 2273, Sector – 21 C, Chandigarh – 160021, Chandigarh (UT), India

Date of Birth/Age :

18.12.1972

Qualification:

Graduate

Date of Appointment :

06.01.2003

DIN No.:

00415506

PAN No.:

ABCPK9428K

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	U24232CH2003PLC025699	SCOTT EDIL PHARMACIA LIMITED	Managing director	06/01/2003	06/01/2003	-	Active	NO
2	U85110CH1999PTC022751	ARVAT HEALTH VENTURES PRIVATE LIMITED	Director	17/12/2007	17/12/2007	-	Active	NO
3	U85193DL2008PTC183255	SWIZINGER HEALTH CARE PRIVATE LIMITED	Director	15/09/2008	15/09/2008	-	Active	NO
4	U24233CH2009PTC031493	INTERPHAR HEALTHCARE PRIVATE LIMITED	Director	27/01/2009	27/01/2009	-	Active	NO
5	U24232CH2009PLC031649	SCOTT-EDIL ADVANCE RESEARCH LABORATORIES AND EDUCATION LIMITED	Director	04/06/2009	04/06/2009	-	Active	NO
6	U72900CH2010PTC032145	SCOTT EDIL INFORTECH PRIVATE LIMITED	Director	09/04/2010	09/04/2010	-	Active	NO
7	U24232CH2011PTC032911	SERLENTIS RESEARCH PRIVATE LIMITED	Director	29/04/2011	29/04/2011	-	Active	NO
8	U24232CH2011PTC032910	ROSCH ELMER PHARMACEUTICALS PRIVATE LIMITED	Director	29/04/2011	29/04/2011	-	Active	NO
9	U24232CH2013PTC034803	MAXPORT INDIA PRIVATE LIMITED	Director	07/11/2013	07/11/2013	-	Active	NO

Name :

Vaishali Aggarwal

Designation :

Director

Address :

H No.: 2273, Sector – 21 C, Chandigarh – 160021, Chandigarh (UT), India

Date of Birth/Age :

15.10.1974

Qualification:

Graduate

Date of Appointment :

06.01.2003

DIN No.:

00415509

PAN No.:

AAQPA4025M

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	U24232CH2003PLC025699	SCOTT EDIL PHARMACIA LIMITED	Director	06/01/2003	06/01/2003	-	Active	NO
2	U24233CH2009PTC031493	INTERPHAR HEALTHCARE PRIVATE LIMITED	Additional director	01/02/2009	01/02/2009	-	Active	NO
3	U24232CH2009PLC031649	SCOTT-EDIL ADVANCE RESEARCH LABORATORIES AND EDUCATION LIMITED	Director	04/06/2009	04/06/2009	-	Active	NO
4	U85193DL2008PTC183255	SWIZINGER HEALTH CARE PRIVATE LIMITED	Director	30/09/2009	30/09/2009	-	Active	NO
5	U72900CH2010PTC032145	SCOTT EDIL INFORTECH PRIVATE LIMITED	Director	09/04/2010	09/04/2010	-	Active	NO
6	U24232CH2011PTC032911	SERLENTIS RESEARCH PRIVATE LIMITED	Director	29/04/2011	29/04/2011	-	Active	NO
7	U24232CH2011PTC032910	ROSCH ELMER PHARMACEUTICALS PRIVATE LIMITED	Director	29/04/2011	29/04/2011	-	Active	NO
8	U24232CH2013PTC034803	MAXPORT INDIA PRIVATE LIMITED	Director	07/11/2013	07/11/2013	-	Active	NO

Name :

Mr. Balram Krishan

Designation :

Whole-time director

Address :

H No.: 2273, Sector – 21 C, Chandigarh – 160021, Chandigarh (UT), India

Date of Birth/Age :

24.04.1949

Qualification:

Graduate

Date of Appointment :

01.04.2008

DIN No.:

00415499

PAN No.:

ABCPK9427G

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	U24232CH2003PLC025699	SCOTT EDIL PHARMACIA LIMITED	Whole-time director	01/04/2008	06/01/2003	-	Active	NO
2	U24233CH2009PTC031493	INTERPHAR HEALTHCARE PRIVATE LIMITED	Director	27/01/2009	27/01/2009	-	Active	NO
3	U24232CH2009PLC031649	SCOTT-EDIL ADVANCE RESEARCH LABORATORIES & EDUCATION LIMITED	Additional director	11/01/2010	11/01/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Akhilesh
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	% age
Sanjeev Aggarwal	1600380	44.55
Balram Krishan Aggarwal	1251750	34.84
Vaishali Aggarwal	644500	17.94
Pushpa Aggarwal	56010	1.56
Rashpal Singh	10	0.00
Pooja Pandita	10	0.00
Anil Aggarwal	40000	1.11
Total	3592660	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of pharmaceutical product.
Exports :
Products :	Finished Goods
Countries :	· Sri Lanka · Ukraine
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash and Credit, (Depend )
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers:

· Aurobindo Limited

Customers :

End users

· Abbott Health care Limited, Mumbai, Maharashtra, India

· Alembic Limited

No. of Employees :

1002 (Approximately)

Bankers :

· State Bank of India, Ram Darbar Branch, Industrial Area, Phase Ii, Chandigarh - 160002, Chandigarh, India

· Bank of India, 35.C Chandigarh, Chandigarh, Chandigarh, India

· State Bank of India, SSI Branch, Phase-Vii, Mohali - 160070, Punjab, India

· Punjab National Bank, Large Corporate Branch, Sector-17b, Chandigarh - 160017, Chandigarh, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from others	17.668	7.668
Other loans and advances	6.708	3.831
Short-term borrowings
Foreign currency term loans from banks	337.468	278.990
Working capital loans from banks	77.563	86.040
Total	439.407	376.529

Banking Relations :	--
Auditors :
Name :	Rampaul and Associates Chartered Accountants
Address :	H.NO. 1495, Sector 40B,
PAN N Income-tax PAN of auditor or auditor's firm :	AAOPD9035C

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3592660	Equity Shares	Rs.10/- each	Rs. 35.927 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	35.927	35.927	35.927
(b) Reserves & Surplus	522.908	436.856	377.278
(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)	558.835	472.783	413.205
(3) Non-Current Liabilities
(a) long-term borrowings	24.376	11.499	23.396
(b) Deferred tax liabilities (Net)	13.702	13.153	12.269
(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)	38.078	24.652	35.665
(4) Current Liabilities
(a) Short term borrowings	415.031	365.030	293.702
(b) Trade payables	347.211	238.747	305.070
(c) Other current liabilities	47.404	36.294	9.549
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	809.646	640.071	608.321
TOTAL	1406.559	1137.506	1057.191
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	200.532	192.829	208.865
(ii) Intangible Assets	0.000	0.000	0.038
(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	90.648	90.648	77.648
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.753	3.942	2.816
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	295.933	287.419	289.367
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	607.470	407.345	422.302
(c) Trade receivables	415.025	369.450	286.578
(d) Cash and cash equivalents	13.695	26.157	14.896
(e) Short-term loans and advances	74.436	47.135	44.048
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1110.626	850.087	767.824
TOTAL	1406.559	1137.506	1057.191

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2256.395	1772.487	1440.247
		Other Income	0.697	1.375	0.916
		TOTAL (A)	2257.092	1773.862	1441.163
Less	EXPENSES
		Cost of materials consumed	2083.243	1512.802	1327.690
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(129.695)	9.963	(105.308)
		Employee benefit expense	28.048	27.624	31.286
		Other expenses	63.953	51.056	51.763
		TOTAL (B)	2045.549	1601.445	1305.431
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		211.543	172.417	135.732
Less	FINANCIAL EXPENSES (D)		79.050	65.472	41.110
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		132.493	106.945	94.622
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.875	27.019	27.462
	PROFIT BEFORE TAX (E-F) (G)		107.618	79.926	67.160
Less	TAX (H)		8.599	6.248	4.040
	PROFIT AFTER TAX (G-H) (I)		99.019	73.678	63.120
	Earnings Per Share (Rs.)		27.56	20.51	17.57

Expected Sales (2013-2014) : Rs.3000.000 Millions

The above information has been parted by Mr. Akhilesh (Finance Department)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.39	4.15	4.38
Net Profit Margin (PBT/Sales)	(%)	4.77	4.51	4.66
Return on Total Assets (PBT/Total Assets}	(%)	8.18	7.63	6.86
Return on Investment (ROI) (PBT/Networth)		0.19	0.17	0.16
Debt Equity Ratio (Total Debt /Networth)		0.79	0.80	0.77
Current Ratio (Current Asset/Current Liability)		1.37	1.33	1.26

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	35.927	35.927	35.927
Reserves & Surplus	377.278	436.856	522.908
Net worth	413.205	472.783	558.835
long-term borrowings	23.396	11.499	24.379
Short term borrowings	293.702	365.030	415.031
Total borrowings	317.098	376.529	439.410
Debt/Equity ratio	0.767	0.796	0.786

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	1,440.247	1,772.487	2,256.395
		23.068	27.301

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR)	(INR)	(INR)
Sales	1,440.247	1,772.487	2,256.395
Profit	63.120	73.678	99.019
	4.38%	4.16%	4.39%

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	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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	--
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10476134	11/12/2013	86,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, SECTOR-17B, CHANDIGARH, C HANDIGARH - 160017, INDIA	B95703450
2	10456554	06/09/2013	200,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, SECTOR 17 D, CHANDIGARH, CHANDIGARH - 160017, INDIA	B88148895
3	10347554	09/03/2012	96,000,000.00	STATE BANK OF INDIA	SCB ,SCO 103-106, SECTOR 17B, CHANDIGARH, CHANDIGARH - 160017, INDIA	B36968394
4	10024080	23/09/2006	700,000.00	STATE BANK OF INDIA	SSI BRANCH, PHASE-VII, MOHALI, PUNJAB - 160070, INDIA	A05952684
5	80015471	09/10/2006 *	171,000,000.00	STATE BANK OF INDIA	SSI BRANCH, PHASE-VII, MOHALI, PUNJAB - 160070, INDIA	-
6	80015473	18/07/2012 *	700,000,000.00	STATE BANK OF INDIA	RAM DARBAR BRANCH, INDUSTRIAL AREA, PHASE II, CHA NDIGARH, CHANDIGARH - 160002, INDIA	B57636433

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

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.62.28
UK Pound	1	Rs.103.67
Euro	1	Rs.87.18

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.