MIRA INFORM REPORT

Report Date :

01.07.2014

IDENTIFICATION DETAILS

Name :	PENAM LABORATORIES LIMITED
Registered Office :	F – 223, New Rajinder Nagar, New Delhi -  110060
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.08.1989
Com. Reg. No.:	55-037287
Capital Investment / Paid-up Capital :	Rs.51.672 Millions
CIN No.: [Company Identification No.]	U24231DL1989PLC037287
TAN No.: [Tax Deduction & Collection Account No.]	DELP08786B
PAN No.: [Permanent Account No.]	AAACP0362M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Products.
No. of Employees :	200 (Approximately)

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 460000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating reflects moderate financial risk profile due to low profitability. However, trade relations are fair. Business is active. Payment terms are 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 (GENERAL DETAILS)

Name :	Mr. Ajay Gupta
Designation :	Finance Manager
Contact No.:	91-9868469071
Date :	30.06.2013

LOCATIONS

Registered Office :	F – 223, New Rajinder Nagar, New Delhi -  110060, India
Tel. No.:	91-11-32940065 / 25751415
Mobile No.:	91-9868469071 (Mr. Ajay Gupta)
Fax No.:	91-11-28741739
E-Mail :	penam@vsnl.net ajay@penam.in
Website :	www.penam.in
Area :	2000 Sq. Ft.
Location :	Owned
Manufacturing Facility and Research and Development Centre :	Joniawas Rewari, Dharu Hera, District Rewari - 123302, Haryana, India
Tel. No.:	91-1274-267286/267287
Fax No.:	91-1274-267285
E-Mail :	info@penam.in
Area :	4.5 Acres
Location :	Owned

DIRECTORS

As on 25.09.2012

Name :

Mr. Surinder Kumar Ajmani

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

10.10.1939

Date of Appointment :

01.12.2013

DIN No.:

00466908

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	U74899DL1971PTC005665	D KUMAR CONSULTING ENGINEERS PRIVATE LIMITED	Director	24/05/1973	24/05/1973	-	Active	NO
2	U74899DL1981PTC012273	CONTINENTAL MANUFACTURES PRIVATE LIMITED	Director	26/06/1983	26/06/1983	-	Active	NO
3	U24231DL1989PLC037287	PENAM LABORATORIES LIMITED	Managing director	01/12/2012	07/08/1989	-	Active	NO

Name :

Dr. Paras Nath Pandey

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

02.02.1950

Date of Appointment :

07.08.1989

DIN No.:

00150374

Name :

Mr. Arun Kumar Mittal

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

30.06.1954

Date of Appointment :

20.03.1993

DIN No.:

00049425

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	L51397DL1980PLC091361	CHEMCAPS LIMITED	Whole-time director	18/06/1983	18/06/1983	-	Active	NO
2	U24231DL1989PLC037287	PENAM LABORATORIES LIMITED	Director	20/03/1993	20/03/1993	-	Active	NO
3	L74999HR1988 PLC030370	COVENTRY COIL-O-MATIC (HARYANA) LIMITED	Director	30/01/2001	30/01/2001	-	Active	NO
4	U74999DL2006 PTC156177	PRODERNA BIOTECH PRIVATE LIMITED	Director	04/12/2006	04/12/2006	-	Active	NO

Name :

Mr. Ashish Ajmani

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

15.03.1974

Date of Appointment :

01.12.2012

DIN No.:

00130788

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	U74899DL1981 PTC012273	CONTINENTAL MANUFACTURES PRIVATE LIMITED	Director	30/11/2000	30/11/2000	-	Active	NO
2	U24119DL2002 PTC114197	SAMPARK OVERSEAS PRIVATE LIMITED	Director	13/02/2002	13/02/2002	-	Active	NO
3	U24231DL1989PLC037287	PENAM LABORATORIES LIMITED	Whole-time director	01/12/2012	05/10/2009	-	Active	NO

Name :

Mr. Madan Mohan Lal

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

25.07.1942

Date of Appointment :

31.12.2009

DIN No.:

00130514

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	U74899DL1993PTC055804	SAMPARK INTERNATIONAL PRIVATE LIMITED	Managing director	26/10/1993	26/10/1993	-	Active	NO
2	U24119DL2002PTC114197	SAMPARK OVERSEAS PRIVATE LIMITED	Director	13/02/2002	13/02/2002	-	Active	NO
3	U51909GJ2003PTC042323	AARA EXIM PRIVATE LIMITED	Director	01/04/2004	01/04/2004	07/07/2012	Active	NO
4	U24119DL2004PTC124681	SAMPARK FINE CHEM PRIVATE LIMITED.	Director	30/04/2004	30/04/2004	02/03/2007	Active	NO
5	U24231DL1989PLC037287	PENAM LABORATORIES LIMITED	Director	31/12/2009	05/10/2009	-	Active	NO

Name :

Mr. Narinder Mohan Jhanji

Designation :

Director

Address :

F – 223, New Rajinder Nagar, New Delhi -  110060, India

Date of Birth/Age :

16.01.1946

Date of Appointment :

05.10.2009

DIN No.:

02612674

KEY EXECUTIVES

Name :	Mr. Ajay Gupta
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 25.09.2012

SHAREHOLDIND DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 25.09.2012

Category	Percentage
Directors or relatives of Directors	80.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Products.

Products :

Product Description	ITC Code
Cloxacilline	29411040
Dicloxacilline	29411090
Flucloxacilline	29411090
Others	29411090

Exports :

Products :

Bulk Drugs

Countries :

· Africa

· Bangladesh

· Srilanka

Imports :

Products :

· Raw Material

· Chemicals

Countries :

China

Terms :

Selling :

L/C, Credit on DA, TT

Purchasing :

L/C, Credit (90 Days), Credit on DA

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Goods
Bulk Drugs and Intermediates	MT	-	750.00 P.A.	391.696
Formulations
Capsules	Nos.	NA	150000000	2500000
Dry Surup	Bottles	NA	1500000	Nil

GENERAL INFORMATION

Suppliers :	DCM Integrated Solutions, Delhi, India
Customers :	Ariso Pharma Private Limited, Mumbai, Maharashtra, India
No. of Employees :	200 (Approximately)
Bankers :	· State Bank of India, Industrial Finance Branch, Vijaya Building, New Delhi – 110001, India · State Bank of Patiala, World Trade Centre, New Delhi – 110001, India · IDBI Bank Limited, IDBI Tower, Cuffe Parade, Mumbai – 400005, Maharashtra, India · Punjab National Bank

Banking Relations :	--
Financial Institutions :	Industrial Finance Corporation of India Limited, Nehru Place, New Delhi – 110019, India
Auditors :
Name :	Subodh Jain and Company Chartered Accountants
Address :	Flat No 107 and 110 Sunder Kiran Plaza, 6/41 Western Extension Area, Ajmal Khan Road, Karol Bagh, New Delhi - 110005 India
PAN No.:	AAOFS1509C
Related Parties :	· Raj Impex · Chemcaps Limited CIN No.: L51397DL1980PLC091361 · Sampark Overseas Private Limited CIN No.: U24119DL2002PTC114197 · Sampark International Private Limited CIN No.: U74899DL1993PTC055804

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
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5167157	Equity Shares	Rs.10/- each	Rs.51.672 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013 (12 Months)	31.03.2012 (12 Months)	31.03.2011 (6 Months)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	51.672	51.672	51.672
(b) Reserves & Surplus	63.622	54.841	51.134
(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)	115.294	106.513	102.806
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	2.405	3.696	4.117
(c) Other long term liabilities	21.300	17.300	17.300
(d) long-term provisions	2.966	2.611	2.341
Total Non-current Liabilities (3)	26.671	23.607	23.758
(4) Current Liabilities
(a) Short term borrowings	14.280	3.200	7.700
(b) Trade payables	268.012	258.737	287.311
(c) Other current liabilities	14.463	9.072	6.855
(d) Short-term provisions	2.634	3.085	5.747
Total Current Liabilities (4)	299.389	274.094	307.613
TOTAL	441.354	404.214	434.177
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	69.077	69.605	68.962
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	69.077	69.605	68.962
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	106.317	85.310	100.020
(c) Trade receivables	201.432	202.928	198.858
(d) Cash and cash equivalents	18.147	5.313	3.118
(e) Short-term loans and advances	11.765	11.393	11.251
(f) Other current assets	34.616	29.665	51.968
Total Current Assets	372.277	334.609	365.215
TOTAL	441.354	404.214	434.177

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013 (12 Months)	31.03.2012 (12 Months)	31.03.2011 (6 Months)
	SALES
		Income		1044.788	839.273	531.289
		Other Income		1.338	0.890	0.083
		TOTAL (A)		1046.126	840.163	531.372
Less	EXPENSES
		Cost of Materials Consumed		889.942	684.124	482.862
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		0.481	16.928	(4.082)
		Employee Benefits Expenses		33.440	30.390	14.163
		Other Expenses		100.262	91.052	57.889
		TOTAL (B)		1024.125	822.494	72.052
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			22.001	17.669	(19.460)
Less	FINANCIAL EXPENSES (D)			6.952	5.477	3.103
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			15.049	12.192	(22.563)
Less	DEPRECIATION/ AMORTISATION (F)			4.359	6.406	3.183
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			10.690	5.786	(25.746)
Less	TAX (H)			1.909	2.079	(5.581)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			8.781	3.707	(20.165)
	EARNINGS IN FOREIGN CURRENCY
			FOB Value of Exports	NA	355.327	180.156
	TOTAL EARNINGS			NA	355.327	180.156
	IMPORTS
			Value on CIF Basis	NA	23.801	45.433
	TOTAL IMPORTS			NA	23.801	45.433
	Earnings Per Share (Rs.)			1.70	0.72	(3.90)

Expected Sales (2013-14): Rs.1500.000 Millions

KEY RATIOS

PARTICULARS		31.03.2013 (12 Months)	31.03.2012 (12 Months)	31.03.2011 (6 Months)
PAT / Total Income	(%)	0.84	0.44	(3.79)
Net Profit Margin (PBT/Sales)	(%)	1.02	0.69	(4.85)
Return on Total Assets (PBT/Total Assets}	(%)	2.42	1.43	(5.93)
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	(0.25)
Debt Equity Ratio (Total Debt /Networth)		0.12	0.03	0.07
Current Ratio (Current Asset/Current Liability)		1.24	1.22	1.19

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	51.672	51.672	51.672
Reserves & Surplus	51.134	54.841	63.622
Net worth	102.806	106.513	115.294
long-term borrowings	0.000	0.000	0.000
Short term borrowings	7.700	3.200	14.280
Total borrowings	7.700	3.200	14.280
Debt/Equity ratio	0.075	0.030	0.124

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	531.289	839.273	1,044.788
		57.969	24.487

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	531.289	839.273	1,044.788
Profit	(20.165)	3.707	8.781
	(3.80%)	0.44%	0.84%

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	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	Yes
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	No
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	No

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10446773	04/09/2013	75,000,000.00	ORIENTAL BANK OF COMMERCE	A-BLOCK, CONNAUGHT PLACE, NEW DELHI, Delhi - 1100 01, INDIA	B83871095

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixture

· Office Equipment’s

· Computer Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.09
UK Pound	1	Rs.102.33
Euro	1	Rs.82.00

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	VNT

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	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	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.