MIRA INFORM REPORT

Report Date :

02.01.2014

IDENTIFICATION DETAILS

Name :	ZCL CHEMICALS LIMITED (w.e.f. 06.04.2009)
Formerly Known As :	ZANDU CHEMICALS LIMITED
Registered Office :	A-806-807, 8^th Floor, 215 Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.03.1991
Com. Reg. No.:	11-060748
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U24100MH1991PLC060748
TAN No.: [Tax Deduction & Collection Account No.]	MUMZ01048F
PAN No.: [Permanent Account No.]	AAACZ0293P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Intermediates, Contract Chemical, Active Pharma Ingredients, Chemical Research and Development.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has seen a better increase in its sales volume as well as net profitability during 2013. Financial position appears to be healthy marked by decent networth position. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for normal business dealings 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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating=BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	27.06.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating=A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	27.06.2013

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.

LOCATIONS

Registered Office :	A-806-807, 8^th Floor, 215 Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-61539999
Fax No.:	91-22-61539997/ 98
E-Mail :	enquiries@zclchemicals.com purchase@zclchemicals.com hrm@zclchemicals.com secretary@zclchemicals.com usjeth@rediffmail.com
Website :	http://www.zclchemicals.com
Factory :	Plot No. 3102/B, G.I.D.C., Ankleshwar – 393 002, Gujarat, India
Tel. No.:	91-2646-220097/ 220039/ 324466
Fax No.:	91-2646-250329

DIRECTORS

AS ON 07.09.2013

Name :

Mr. Ajay Krishnakant Parikh

Designation :

Managing Director

Address :

20/301, Gurukrupa, Vithal Nagar, CHS Limited, 11^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

24.06.1957

Date of Appointment :

01.01.2009

DIN No.:

00239715

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	U65990MH1989PTC054694	TEJAL MERCHANTILE PRIVATE LIMITED	Director	15/02/1990	15/02/1990	-	Active	NO
2	U24100MH1991PLC060748	ZCL CHEMICALS LIMITED	Managing director	01/01/2009	13/03/1991	-	Active	NO
3	U24231MH1993PLC073342	VENUS DRUGS AND COSMETICS LIMITED	Director	28/09/2001	28/09/2001	-	Active	NO
4	U24230MH1999PTC117983	LONZA INDIA PRIVATE LIMITED	Additional director	19/11/2008	19/11/2008	30/09/2009	Active	NO
5	U51900MH1992PLC065677	LEOPARD EXPORTS LIMITED	Director	02/03/2009	02/03/2009	12/01/2011	Strike off	NO
6	U21039MH1985PTC035199	VAIPA PHARMACEUTICALS PRIVATE LIMITED	Director	02/03/2009	02/03/2009	12/01/2011	Active	NO
7	U65990MH1989PTC050535	LEOPARD INVESTMENTS PVT LTD	Director	02/03/2009	02/03/2009	12/01/2011	Active	NO
8	U74300MH1990PTC054901	NOVA ADVERTISING PALACE PRIVATE LIMITED	Director	02/03/2009	02/03/2009	12/01/2011	Strike off	NO

Name :

Mr. Dhiren Shevantilal Shah

Designation :

Director appointed in casual vacancy

Address :

Cumbala Hill Post Office, Gamdevi Polish Station, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

29.04.1956

Date of Appointment :

05.09.2011

DIN No.:

01149436

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	Company/ LLP Status	Defaulting status
1	U45200MH1991PTC060320	MONEYBEE COMMODITIES PRIVATE LIMITED	Managing director	15/02/1991	15/02/1991	Active	NO
2	U65590MH1991PTC060326	MONEYBEE SECURITIES PRIVATE LIMITED	Managing director	15/02/1991	15/02/1991	Active	NO
3	U67120MH1995PTC086171	AARAYAA ADVISORY SERVICES PRIVATE LIMITED	Director	08/03/1995	08/03/1995	Active	NO
4	U70102MH2007PTC170019	MONEYBEE REALTY PRIVATE LIMITED	Managing director	17/04/2007	17/04/2007	Active	NO
5	L25199KL1993PLC007018	RUBFILA INTERNATIONAL LIMITED	Director	23/09/2009	28/01/2009	Active	NO
6	U24134MH1971PTC015206	COMMANDER WATERTECH PRIVATE LIMITED	Director	29/09/2009	29/09/2009	Active	NO
7	U74999MH2010PTC209834	MONEYBEE ADVISORS PRIVATE LIMITED	Director	04/11/2010	04/11/2010	Active	NO
8	U36939TZ2011PLC016911	TEE VENTURES (INDIA) LIMITED	Director	29/03/2011	29/03/2011	Active	NO
9	U24100MH1991PLC060748	ZCL CHEMICALS LIMITED	Director appointed in casual vacancy	05/09/2011	05/09/2011	Active	NO
10	AAA-7928	MONEYBEE CAPITAL ADVISORS LLP	Designated Partner	08/02/2012	08/02/2012	Active	NO

Name :

Mr. Nihar A. Parikh

Designation :

Whole Time Director

Address :

20/301, Gurukrupa, Vithal Nagar, CHS Limited, 11^th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

13.11.1985

Date of Appointment :

01.09.2010

DIN No.:

02475787

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	Company/ LLP Status	Defaulting status
1	U24100MH1991PLC060748	ZCL CHEMICALS LIMITED	Whole-time director	01/09/2010	01/07/2010	Active	NO

Name :

Mr. Yoshihiro Shimizu

Designation :

Director

Address :

219 Park City, Kitaoji 83 Murasakino, Unrinicho, Kita Ku Kyoto, Japan 6038214

Date of Birth/Age :

24.09.1964

Date of Appointment :

31.05.2012

DIN No.:

05277962

MAJOR SHAREHOLDERS

AS ON 07.09.2013

Names of Shareholders	No. of Shares
Vaidya Jugatram Haresh	1
Parikh Krishnakant Ajay	478997
Parikh Ajay Minoti	1000
Parikh Ajay Nihar	1001
Parikh Ajay Anuja	1001
Sharmila Leasing Private Limited, India	6000
Soraya Investment Trading Private Limited, India	6000
Phi Consultancy Private Limited, India	6000
Tejal Mercantile Private Limited, India	7000000
Nagase and Company Limited, Japan	2500000
Total	10000000

Equity Share Break up (Percentage of Total Equity)

AS ON 07.09.2013

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	25.00
Bodies corporate	70.00
Directors or relatives of Directors	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceutical Intermediates, Contract Chemical, Active Pharma Ingredients, Chemical Research and Development.
Products :	· Active Pharma Ingredients (API’s) · Piperazines Derivatives · Phenothiazine Derivatives · Methyl Phenidate Series · Nitrile Derivatives · Miscellaneous Advanced Derivatives

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Backbay Reclamation Branch, Raheja Chambers, Free Press Journal Road, Nariman Point, Mumbai – 400 021, Maharashtra, India

· Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loan from Banks	34.031	84.178
Loans taken for Vehicles	1.825	2.199
Short Term Borrowings
Other loans and Advances	155.147	151.307
Total	191.003	237.684

Banking Relations :	--
Auditors :
Name :	V. Parekh and Associates Chartered Accountants
Address :	37, Haman Street, 2^nd Floor, Fort, Mumbai – 400 001, Maharashtra, India
PAN No.:	AAAFV0135F
Holding Company :	Tejal Merchantile Private Limited, India [U65990MH1989PTC054694]
Associates :	Nagase India Private Limited, India [U51496MH2006FTC165791]

CAPITAL STRUCTURE

AS ON 07.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions
4000000	Preference Shares	Rs.10/- each	Rs.40.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 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	100.000	140.000	140.000
(b) Reserves & Surplus	298.106	176.396	92.228
(c) Money received against share warrants	0.000	0.000	0.000
			0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	398.106	316.396	232.228
(3) Non-Current Liabilities
(a) long-term borrowings	35.856	124.066	152.247
(b) Deferred tax liabilities (Net)	12.395	38.001	8.136
(c) Other long term liabilities	1.625	0.756	1.198
(d) long-term provisions	92.012	14.336	4.569
Total Non-current Liabilities (3)	141.888	177.159	166.150
(4) Current Liabilities
(a) Short term borrowings	155.147	151.307	232.548
(b) Trade payables	494.740	423.317	308.285
(c) Other current liabilities	56.760	54.497	11.262
(d) Short-term provisions	13.856	23.515	25.618
Total Current Liabilities (4)	720.503	652.636	577.713
TOTAL	1260.497	1146.191	976.091
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	431.007	388.492	357.687
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	12.394	18.602	28.114
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.440	0.440	0.440
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.584	5.883	13.673
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	450.425	413.417	399.914
(2) Current assets
(a) Current investments	98.558	34.195	0.005
(b) Inventories	370.793	173.065	146.717
(c) Trade receivables	265.450	447.989	383.218
(d) Cash and cash equivalents	3.835	5.746	2.545
(e) Short-term loans and advances	25.960	22.874	28.584
(f) Other current assets	45.476	48.905	15.108
Total Current Assets	810.072	732.774	576.177
TOTAL	1260.497	1146.191	976.091

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1766.954	1305.696	1081.022
		Other Income	9.163	2.895	5.272
		TOTAL (A)	1776.117	1308.591	1086.294
Less	EXPENSES
		Cost of Materials Consumed	1345.711	909.249	803.095
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(149.615)	(57.733)	33.673
		Employee Benefits Expenses	83.469	59.041	46.823
		Other Expenses	197.416	190.654	116.504
		Exceptional Items	87.300	0.000	0.000
		Extraordinary Items	0.000	(20.578)	0.000
		TOTAL (B)	1564.281	1080.633	1000.095
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		211.836	227.958	86.199
Less	FINANCIAL EXPENSES (D)		26.832	46.787	44.181
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		185.004	181.171	42.018
Less	DEPRECIATION/ AMORTISATION (F)		42.524	37.752	34.404
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		142.480	143.419	7.614
Less	TAX (H)		19.673	55.067	2.943
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		122.807	88.352	4.671
	Earnings Per Share (Rs.)		12.28	8.84	0.46

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.91	6.75	0.43
Net Profit Margin (PBT/Sales)	(%)	8.06	10.98	0.70
Return on Total Assets (PBT/Total Assets}	(%)	11.48	12.79	0.82
Return on Investment (ROI) (PBT/Networth)		0.36	0.45	0.03
Debt Equity Ratio (Total Debt /Networth)		0.48	0.87	1.66
Current Ratio (Current Asset/Current Liability)		1.12	1.12	0.10

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE: Registered office of the company has been shifted from 806/ 807, 8^th Floor, 215 Atrium, Chakala, Andheri-Kurla Road, Andheri (East), Mumbai – 400 069, Maharashtra to the present address w.e.f. 07.08.2009.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and Advances from related parties	0.000	37.689
Total	0.000	37.689

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10396944	26/04/2013 *	50,000,000.00	CITI BANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400051, MAHARASHTRA, INDIA	B75615682
2	10390092	26/04/2013 *	150,000,000.00	CITI BANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400051, MAHARASHTRA, INDIA	B75615526
3	10300264	26/04/2013 *	441,100,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBERS, FREE PRESS JOURNAL ROAD, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B76047869
4	10263705	26/04/2013 *	241,100,000.00	STATE BANK OF INDIA	BACKBAY RECLAMATION BRANCH, RAHEJA CHAMBERS, FREE PRESS JOURNAL ROAD, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B76047257

* Date of charge modification

FIXED ASSETS:

· Land (Leasehold)

· Air Conditioning

· Building

· Computers

· Electric Installation

· Furniture, Fixtures and Office Equipments

· Plant and Machinery

· Laboratory Equipments

· Plant and Machinery

· Research Equipments

· Utilities

· Office Building

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.61.93
UK Pound	1	Rs.102.39
Euro	1	Rs.85.12

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.