MIRA INFORM REPORT

Report Date :

27.01.2014

IDENTIFICATION DETAILS

Name :	UNIVERSAL CHEMICALS AND INDUSTRIES PRIVATE LIMITED
Registered Office :	507, Raheja Centre, 214, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.12.1961
Com. Reg. No.:	11-012229
Capital Investment / Paid-up Capital :	Rs. 142.600 Millions
CIN No.: [Company Identification No.]	U99999MH1961PTC012229
TAN No.: [Tax Deduction & Collection Account No.]	MUMU03465A / MUMU03663C
PAN No.: [Permanent Account No.]	AAACU0974C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Potassium Permanganate.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. Company has incurred loss from its operation in the year 2012. Rating also takes into consideration delay in servicing its debt. However, business is active. Payment terms are slow. The company can be considered for business dealing on a safe and secured trade terms and conditions. Note: Latest financials of 2013 is not available with us.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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	CARE
Rating	Term Loan: “D” (Suspended)
Rating Explanation	Lowest credit quality and low prospects of recovery.
Date	13.12.2013

Reason for Suspension: Company has not furnished information required by care.

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. Alok
Designation :	Accounts Executive
Contact No.:	91-22-43534353
Date :	27.01.2014

LOCATIONS

Registered / Corporate Office :	507, Raheja Centre, 214, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22844428/ 43534353
Fax No.:	91-22-22854741
E-Mail :	smvaishnav@ucil.co.in hmistry@ucil.co.in mktg@ucil.co.in
Website :	www.ucil.co.in
Location:	Owned
Factory 1 :	Chemical Zone, C1-C2-C3 MIDC Industrial Area, Ambernath (West), District Thane – 421501, Maharashtra, India
Factory 2 :	B-97, MIDC Industrial Area, Lote Parshuram, District Ratnagiri – 415639, Maharashtra, India
Factory 3 :	Plot No. CH / 5A, Dahej G.I.D.C., Industrial Estate, Dahej, Taluka - Vagra, District Bharuch – 392130, Gujarat, India

DIRECTORS

As on 30.09.2013

Name :	Mr. Kamalesh Kumar Maheshwari
Designation :	Director
Address :	507, Raheja Centre, 214, Nariman Point, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	12.08.1943
Date of Appointment :	29.12.1961
PAN No.:	AEQPM5521C
DIN No.:	00078457
Name :	Mr. Kartikeya Kamalesh Kumar Maheshwari
Designation :	Whole-time Director
Address :	507, Raheja Centre, 214, Nariman Point, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	28.10.1974
Date of Appointment :	01.12.2010
PAN No.:	AADPM5941R
DIN No.:	00078494
Name :	Mr. Shivkumar Mooldas Vaishnav
Designation :	Director
Address :	Flat No.5, Ornate House, Caddel Road, Dadar, Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	10.10.1948
Date of Appointment :	28.06.2003
PAN No.:	ABUPV1328F
DIN No.:	00078503
Name :	Mr. Jaya Nanjunda Srinivasan
Designation :	Director
Address :	Papaji Ramchandra Building, 321/C, Deodhar Road, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.10.1940
Date of Appointment :	21.11.2006
DIN No.:	00095455
Name :	Mr. Arunkumar Jagmohanlal Roongta
Designation :	Director
Address :	401, Samudra Mahal, Dr. A.B. Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	05.12.1945
Date of Appointment :	20.07.1989
DIN No.:	00328224

KEY EXECUTIVES

Name :	Mr. Alok
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Equity Shareholders	No. of Shares
Kamalesh Kumar Maheshwari	3747000
Madhurika K. Maheshwari	930200
Kamalesh Kumar Maheshwari (HUF)	1370850
Jayashree Traders Private Limited, India	734625
Shushma M. Agarwal	594600
Seema A. Gupta	55000
Shantidevi K. Maheshwari	755725
Rohit R. Dhoot	10000
J. N. Srinivasan (HUF)	3360
J. N. Sridharmurthy (HUF)	3360
J. N. Sridharmurthy	4140
J. N. Srinivasan	4140
Priyanka M. Agarwal	4000
Eshita M. Agarwal	4000
Rachna S. Goenka	2000
Kartikeya Maheshwari	1802425
Smita Saraf	55000
Krishnagopal Maheshwari	876500
Krishnagopal Maheshwari (HUF)	65020
Kruti Finance and Holdings Private Limited, India	7500
S.M. Bhatt (HUF) Represented by Nootan Bhatt	555
Total	11030000

Names of Preference Shareholders	No. of Shares
Jayashree Traders Private Limited, India	3230000
Total	3230000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	6.73
Directors or relatives of Directors	93.08
Other top fifty shareholders	0.19
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Potassium Permanganate.

Products :

Item Code No. (ITC Code)	Product Description
284160.01	Potassium Permanganate

Exports :

Products :

Finished Goods

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010):

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Inorganic Chemicals	MT	NA	15900	2715.15
Organic Chemicals	MT	NA	NA	37.475

· Licensed capacity is not applicable in view of the company's product having been delicenced as per the licencing policy of the Government of India.

· Installed capacity is as certified by the management and accepted by auditors, being a technical matter.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

400 (Approximately)

Bankers :

· Union Bank of India, Home Street Branch, Forbes Building, Home Street, Charanjit Rai Marg, Mumbai – 400001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	685.346	551.226
Other loans and advances	0.286	1.042
SHORT TERM BORROWINGS
Working capital loans from banks	152.716	200.927
Total	838.348	753.195

LONG TERM BORROWINGS

Term Loans and Working Capital Facilities:

a. Term Loans, Cash Credit facilities and Export Packing Credit / Foreign Bills facilities from banks are secured by equitable mortgage and creation of first charge on the Company’s immovable and movable properties situated at its Ambernath, Lote and Dahej units and further guaranteed by two Directors of the Company. Cash credit and Export Packing Credit facilities are further secured by hypothecation of the Company’s inventories and book-debts. All the facilities are further secured by Corporate Guarantee of Jayashree Traders Private Limited including equitable mortgage of its Ownership Office Premises and certain residential properties.

b. Vehicles/Equipments financed under hire purchase installment agreements have been hypothecated to the respective lenders.

Banking Relations :	--
Auditors :
Name :	Bansi S Mehta and Company Chartered Accountants
Address :	11/13 Botawala Building Second Floor , Horniman Circle, Mumbai – 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFB6405G
Related Party :	Jayashree Traders Private Limited CIN No.: U51900MH1946PTC004815

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
11500000	Equity Shares	Rs.10/- each	Rs.115.000 Millions
3300000	Preference Shares	Rs.10/- each	Rs.33.000 Millions
	Total		Rs.148.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11030000	Equity Shares	Rs.10/- each	Rs.110.300 Millions
3230000	Preference Shares	Rs.10/- each	Rs.32.300 Millions
	Total		Rs.142.600 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions
3300000	Preference Shares	Rs.10/- each	Rs.33.000 Millions
	Total		Rs.108.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7030000	Equity Shares	Rs.10/- each	Rs.70.300 Millions
3230000	Preference Shares	Rs.10/- each	Rs.32.300 Millions
10260000
	Total		Rs.102.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	102.600	69.800
(b) Reserves & Surplus	88.024	72.782
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	190.624	142.582
(3) Non-Current Liabilities
(a) long-term borrowings	1100.632	1013.743
(b) Deferred tax liabilities (Net)	16.431	52.469
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	4.254	3.136
Total Non-current Liabilities (3)	1121.317	1069.348
(4) Current Liabilities
(a) Short term borrowings	152.716	200.927
(b) Trade payables	106.572	125.005
(c) Other current liabilities	83.138	37.924
(d) Short-term provisions	2.139	2.377
Total Current Liabilities (4)	344.565	366.233
TOTAL	1656.506	1578.163
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	758.863	836.524
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	473.566	360.528
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.011	0.011
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	27.797	13.436
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1260.237	1210.499
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	185.085	108.749
(c) Trade receivables	121.956	122.472
(d) Cash and cash equivalents	16.742	6.942
(e) Short-term loans and advances	62.907	120.956
(f) Other current assets	9.579	8.545
Total Current Assets	396.269	367.664
TOTAL	1656.506	1578.163

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		65.500
2] Share Application Money		0.000
3] Reserves & Surplus		273.178
4] (Accumulated Losses)		(39.960)
NETWORTH		298.718
LOAN FUNDS
1] Secured Loans		719.467
2] Unsecured Loans		391.707
TOTAL BORROWING		1111.174
DEFERRED TAX LIABILITIES		40.024
TOTAL		1449.916
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		921.122
Capital work-in-progress		281.870
INVESTMENT		0.011
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	138.052
	Sundry Debtors	70.154
	Cash & Bank Balances	14.864
	Other Current Assets	108.187
	Loans & Advances	11.804
Total Current Assets		343.061
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	90.221
	Other Current Liabilities	0.783
	Provisions	5.144
Total Current Liabilities		96.148
Net Current Assets		246.913
MISCELLANEOUS EXPENSES		0.000
TOTAL		1449.916

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	838.397	642.308	358.199
		Other Income	NA	NA	(2.929)
		TOTAL (A)	NA	NA	355.270
Less	EXPENSES
		TOTAL (B)	NA	NA	360.221
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.200	(31.774)	(4.951)
Less	FINANCIAL EXPENSES (D)		67.955	59.319	9.042
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(59.755)	(91.093)	(13.993)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		83.997	84.118	23.869
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(143.752)	(175.211)	(37.862)
Less	TAX (H)		(27.794)	3.187	34.738
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(115.958)	(178.398)	(72.600)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(215.203)	(39.197)	30.241
Less	APPROPRIATIONS
		Transferred from Revaluation Reserve	(1.600)	(2.392)	(2.399)
	BALANCE CARRIED TO THE B/S		(329.561)	(215.203)	(39.960)
	EARNINGS IN FOREIGN CURRENCY
		Exports at F.O.B. Value	124.490	119.679	104.223
	TOTAL EARNINGS		124.490	119.679	104.223
	IMPORTS
		Raw Material	162.290	115.421	8.321
		Capital Goods	0.000	0.000	1.467
		Trading Goods	0.000	2.608	25.854
	TOTAL IMPORTS		162.290	118.029	35.642
	Earnings / (Loss) Per Share (Rs.)		(11.30)	(25.25)	(10.27)

Particulars	31.03.2013
Sales Turnover (Approximately)	920.000

The above information has been parted by Mr. Mr. Alok (Accounts Executive).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	(20.44)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(10.57)
Return on Total Assets (PBT/Total Assets}	(%)	(12.15)	(14.39)	(516.51)
Return on Investment (ROI) (PBT/Networth)		(0.75)	(1.23)	(0.13)
Debt Equity Ratio (Total Debt/Networth)		6.57	8.51	3.72
Current Ratio (Current Asset/Current Liability)		1.15	1.00	3.57

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Current maturities of long-term debt	12.033	1.501	NA

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four 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	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
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	No
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

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Stamp No: WPST/490/2012 Filing Date: 07/01/2012 Reg. No.: WP/231/2012 Reg. Date: 09/01/2012

Petitioner: KONKAN LABOUR UNION - Respondent: UNIVERSAL CHEMICALS AND INDUSTRIES

PRIVATE LIMITED

Petn. Adv : NITIN A. KULKARNI (0) Resp. Adv.: DESAI AND DESAI ASSOCIATES (0)

District: RATNAGIRI

Bench: SINGLE

Status: Admitted (Unready)

Last Date: 12/06/2013 Stage: FOR ORDERS

Last Coram: HON’BLE SHRI JUSTICE K.K. TATED

Act: M.R.T.U. & P.U.L.P. Act

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10355867	08/05/2012	1,011,900,000.00	STATE BANK OF INDIA	IFB, NATRAJ BUILDING, 102, 1ST FLOOR, 194,, SIR M V ROAD WESTERN EXPRESS HIGHWAY, ANDHERI (EAST), MUMBAI - 400021, MAHARASHTRA, INDIA	B39665906
2	10187892	10/10/2011 *	536,200,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SNEHAL CHAMBERS, TELLI GALLY, ANDHERI (EAST), MUMBAI - 400069, MAHARASHTRA, INDIA	B24428625
3	10081749	26/03/2013 *	500,700,000.00	UNION BANK OF INDIA	HOME STREET BRANCH, FORBES BUILDING, HOME STREET, CHARANJIT RAI MARG, MUMBAI - 400001, MAHARASHTRA, INDIA	B75406199

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Fully convertible debentures intercorporate	32.500	32.500
Intercorporate deposits	30.000	90.000
Loans and advances from directors	347.500	210.575
Loans and advances from others	5.000	128.400
Total	415.000	461.475

OPERATIONS

The Directors are pleased to state that the product (Caustic Potash) met with the required quality specifications. The product is being accepted by the market. Being a new entrant in the market, the sales and realisation were lower affecting the margins.

Potassium Permanganate continuous to be universally well accepted over a number of years of operations of the Company and has good acceptance in domestic as well export market. The capacity expansion at Dahej plant for Potassium Permanganate had encountered certain technical difficulties which prevented its commissioning during the year.

Due to shortage of working capital limits for importing raw materials, the capacity utilization was lower, affecting the profitability. Also due to delay in disbursements from its lenders, post sanction of the Corporate Debt Restructuring Scheme, Company was not able to implement its capital expenditure program as per its schedule, which also affected its profitability.

The Directors state that after the disbursement of additional term loans from its lenders, Company has commenced the implementation of the capital expenditure for its Dahej Potassium Permanganate Plant in December 2011 / January 2012 and are hopeful to complete the erection and commissioning of the same during the following year. The improvement in performance of the Company is expected to be reflected in the year 2012-2013.

FIXED 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.62.18
UK Pound	1	Rs.103.38
Euro	1	Rs.85.09

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		14

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.