MIRA INFORM REPORT

Report Date :

08.05.2014

IDENTIFICATION DETAILS

Name :	RAAJ MEDISAFE INDIA LIMITED
Registered Office :	106, Sector III, Industrial Area, Pithampur Dhar - 454774, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.09.1985
Com. Reg. No.:	10-003039
Capital Investment / Paid-up Capital :	Rs.50.020 Millions
CIN No.: [Company Identification No.]	L33112MP1985PLC003039
TAN No.: [Tax Deduction & Collection Account No.]	BPLM00672A
PAN No.: [Permanent Account No.]	AABCM1901C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Trader of Surgical Products, Surgical Blades, Taps, Cotton, Disposable Glove.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

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 :	Clear
Comments :	Subject is an established company having a moderate track record. Net worth of the company has been eroded due to continuous accumulated loss incurred from its operations. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow. The company can be considered for business dealings on safe and secured 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 – 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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED BY

Name :	Mr. D. P. Singh
Designation :	Marketing Manager
Contact No.:	91-9752412229
Date :	29.04.2014

LOCATIONS

Registered Office :	106, Sector III, Industrial Area, Pithampur Dhar - 454774, Madhya Pradesh, India
Tel. No. :	91-73-42524071
Mobile No. :	91-9752412229 (Mr. D. P. Singh)
Fax No. :	91- 73-42526645
E-Mail :	vijendrasood@gmail.com
Website :	www.raajmedisafeindia.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Rajesh Kumar Gupta

Designation :

Director

Address :

92, Sneh Nagar, Ujjain – 456010, Madhya Pradesh, India

Date of Birth/Age :

20.07.1960

Date of Appointment :

029.09.2012

DIN No. :

00774786

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	U52520MP1994PTC008617	VYANKTESH SECURITIES PVT LTD	Director	23/03/2001	23/03/2001	20/06/2007	Active	NO
2	U99999MP1993PTC019207	ARPIT PACKAGING PRIVATE LIMITED	Director	29/09/2007	18/06/2007	-	Active	NO
3	U65910GJ1992PLC017790	DWARKESH FINANCE LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO
4	U21020MP2009PTC021507	SHREE PACKERS (UJJAIN) PRIVATE LIMITED	Director	07/01/2009	07/01/2009	-	Active	NO
5	U51109MP2007PTC031640	FAMOUS VANIJYA PRIVATE LIMITED	Director	01/09/2010	01/09/2010	-	Active	NO
6	U25202MP1995PTC009413	SHRI NIWAS BOARD AND PAPER PRIVATE LIMITED	Director	30/09/2011	16/12/2010	01/12/2012	Active	NO
7	L33112MP1985PLC003039	RAAJ MEDISAFE INDIA LIMITED	Director	29/09/2012	08/09/2011	-	Active	NO

Name :

Mr. Beni Gopal Lahoti

Designation :

Director

Address :

69, Veer Durga Das Nagar, Pali – 306401, Rajasthan, India

Date of Birth/Age :

04.07.1957

Date of Appointment :

30.09.2013

DIN No. :

01471115

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	U17117RJ1994PTC008829	SHRIKANT PROCESSORS PVT. LTD.	Director	22/09/1994	22/09/1994	-	Active	NO
2	U51102MP1996PLC011027	SHRIJI POLYMERS (INDIA) LIMITED	Director	11/07/2011	15/06/2011	-	Active	NO
3	L33112MP1985PLC003039	RAAJ MEDISAFE INDIA LIMITED	Director	30/09/2013	13/05/2013	-	Active	NO

Name :

Arpit Bangur

Designation :

Director

Address :

1, Ramakrishna Colony, Srinilayam Ujjain – 456010, Madhya Pradesh, India

Date of Birth/Age :

30.12.1987

Date of Appointment :

30.09.2013

DIN No. :

02600716

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	U51102MP1996PLC011027	SHRIJI POLYMERS (INDIA) LIMITED	Director	30/09/2009	01/01/2009	01/07/2011	Active	NO
2	U51909MP2004PTC031641	NAVYUG VYAPAAR PRIVATE LIMITED	Director	09/11/2009	09/11/2009	01/10/2010	Active	NO
3	U24132MP1994PTC008198	PUMA PLASTOPACK PRIVATE LIMITED	Director	30/09/2010	05/12/2009	-	Active	NO
4	U21000MP2010PTC023230	KSHIPRA PAPER AND BOARD PRIVATE LIMITED	Director	17/03/2010	17/03/2010	-	Active	NO
5	U28992RJ1997PTC014180	VENKTESH CONES PRIVATE LIMITED	Director	29/09/2012	10/10/2011	-	Active	NO
6	U25202MP1995PTC009302	RATAN PACKERS PVT LTD	Director	18/10/2011	18/10/2011	-	Active	NO
7	U02101MP1993PLC007910	KWALITY INDUSTRIES (BHOPAL) LIMITED	Director	03/09/2012	28/10/2011	-	Active	NO
8	U21000MP2010PTC024229	SHREE PACKERS (MP) PRIVATE LIMITED	Director	01/03/2012	01/03/2012	-	Active	NO
9	U70101MP2012PTC028030	ARPIT REAL ESTATE DEVELOPERS PRIVATE LIMITED	Director	21/03/2012	21/03/2012	-	Active	NO
10	U21020MP2012PTC028164	SHRIJI CORRUGATORS(MANDIDEEP) PRIVATE LIMITED	Director	10/04/2012	10/04/2012	-	Active	NO
11	U15400MP2012PTC029366	ARIBA FOODS PRIVATE LIMITED	Director	15/10/2012	15/10/2012	-	Active	NO
12	U25202MP2012PTC028529	SHRINIWAS POLYFABRICS AND PACKWELL PRIVATE LIMITED	Director	30/09/2013	07/01/2013	-	Active	NO
13	L33112MP1985PLC003039	RAAJ MEDISAFE INDIA LIMITED	Director	30/09/2013	13/05/2013	-	Active	NO
14	U52520MP1994PTC008617	VYANKTESH SECURITIES PVT LTD	Director	30/09/2013	30/09/2013	-	Active	NO

Name :

Mr. Vijendra Kumar Sood

Designation :

Director

Address :

B-3/20, Mahananda Nagar Ujjain – 456010, Madhya Pradesh, India

Date of Birth/Age :

27.03.1948

Date of Appointment :

01.03.2013

DIN No. :

02612644

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	L33112MP1985PLC003039	RAAJ MEDISAFE INDIA LIMITED	Director	01/03/2013	08/09/2011	-	Active	NO

Name :

Mr. Narendra Bahadur Singh

Designation :

Director

Address :

38-MIG II, Indra Nagar, Mangal Nath Road, Ujjain – 456001, Madhya Pradesh, India

Date of Birth/Age :

12.01.1950

Date of Appointment :

29.09.2012

DIN No. :

03023539

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	U74920MP2010PTC024419	UJJAIN SECURITY AND MAN POWER SERVICES PRIVATE LIMITED	Director	27/09/2010	27/09/2010	-	Active	NO
2	L33112MP1985PLC003039	RAAJ MEDISAFE INDIA LIMITED	Director	29/09/2012	08/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. D. P. Singh
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	2260680	44.85
Sub Total	2260680	44.85
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2260680	44.85
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	37700	0.75
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2278320	45.20
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh0.100 million	380800	7.56
Any Others (Specify)	82500	1.64
NRIs/OCBs	82500	1.64
Sub Total	2779320	55.15
Total Public shareholding (B)	2779320	55.15
Total (A)+(B)	5040000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	5040000	0.00

BUSINESS DETAILS

Line of Business :

Trader of Surgical Products, Surgical Blades, Taps, Cotton, Disposable Glove.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	Nitin Vasant Garud and Compny Chartered Accountants
Address :	101-102, LalwaniTower, Shaheed Park,Freeganj, Ujjain – 456010, Madhya Pradesh, India
PAN No. :	AAHFN1127E

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
5040000	Equity Shares	Rs.10/- each	Rs.50.400 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
5040000	Equity Shares	Rs.10/- each	Rs.50.020 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	50.020	50.020	49.995
(b) Reserves & Surplus	(60.168)	(55.976)	(36.916)
(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)	(10.148)	(5.956)	13.079
(3) Non-Current Liabilities
(a) long-term borrowings	26.591	23.904	18.633
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	26.591	23.904	18.633
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.778	0.658	2.371
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	0.169	0.280	1.708
Total Current Liabilities (4)	0.947	0.938	4.079
TOTAL	17.390	18.886	35.791
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.903	16.821	18.881
(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	0.003	0.003	0.003
(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	14.906	16.824	18.884
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.267	0.267	15.038
(c) Trade receivables	0.605	0.605	0.605
(d) Cash and cash equivalents	0.770	0.349	0.434
(e) Short-term loans and advances	0.369	0.368	0.351
(f) Other current assets	0.473	0.473	0.479
Total Current Assets	2.484	2.062	16.907
TOTAL	17.390	18.886	35.791

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	0.000	0.443	0.369
		Other Income	0.000	0.000	0.000
		TOTAL	0.000	0.443	0.369
Less	EXPENSES
		Cost of Materials Consumed	0.000	10.659	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	4.142	0.000
		Employees benefits expense	0.012	0.209	0.385
		Extraordinary Item	1.826	0.000	0.000
		Other expenses	0.318	1.094	2.266
		TOTAL	2.156	16.104	2.651
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(2.156)	(15.661)	(2.282)
Less	FINANCIAL EXPENSES		0.119	1.337	0.010
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(2.275)	(16.998)	(2.292)
Less/ Add	DEPRECIATION/ AMORTISATION		1.917	2.061	2.151
	PROFIT/ (LOSS) BEFORE TAX		(4.192)	(19.059)	(4.443)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(4.192)	(19.059)	(4.443)
	Earnings / (Loss) Per Share (Rs.)		(0.83)	(3.78)	(0.88)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.00	(4302.26)	(1204.07)
Net Profit Margin (PBT/Sales)	(%)	0.00	(4302.26)	(1204.07)
Return on Total Assets (PBT/Total Assets}	(%)	(24.11)	(100.93)	(12.41)
Return on Investment (ROI) (PBT/Networth)		0.41	3.20	(0.34)
Debt Equity Ratio (Total Debt/Networth)		(2.62)	(4.01)	1.42
Current Ratio (Current Asset/Current Liability)		2.62	2.20	4.14

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	49.995	50.020	50.020
Reserves & Surplus	(36.916)	(55.976)	(60.168)
Net worth	13.079	(5.956)	(10.148)
long-term borrowings	18.633	23.904	26.591
Short term borrowings	0.000	0.000	0.000
Total borrowings	18.633	23.904	26.591
Debt/Equity ratio	1.425	(4.013)	(2.620)

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	0.369	0.443	0.000
		20.054	(100.000)

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	0.369	0.443	0.000
Profit	(4.443)	(19.059)	(4.192)
	(1204.07%)	(4302.26%)

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
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

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Intercorporate deposits	26.591	23.904
Total	26.591	23.904

INDEX OF CHARGES

No Charges Exist for Company

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

The financial year 2012-13 marked a resurgence in growth post the financial crisis. Higher investment spending, especially in the emerging markets, is pushing growth in the global economy. As a result, several countries are gradually returning to normal macroeconomic policies. However, the economic health in parts of Europe and the fiscal trends in some other countries is cause for concern and continues to impact the world economy.

The forecast for the Indian economy is positive with growth expected to touch 8.5 per cent in the current fiscal year. Yet, constant inflation in the country is taking its toll and rising global commodity prices is only compounding the problem. The pharmaceutical industry in India retains its position of strength as the pharmacy capital of the world. It supplies an estimated one-third of all global pharmaceutical produce in terms of volume. In the financial year 2011-12, the Indian pharmaceutical industry grew more than 14 per cent, according to ORG IMS, though this growth was mainly driven by the top 50 companies. A growing trend was that more Indian pharmaceutical companies focused on semi-urban and rural markets for incremental growth opportunities. During the year, the industry also witnessed Indian pharma companies selling out to the multinationals.

PERFORMANCE

The company reported an Operating Loss of Rs. 4.192 millions (19.059 millions Previous Year). There has also been renewed focus on quality and customer service to develop long-term relationship with customers. The Company is focusing on Govt. business in line to develop new market in this regard.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and equipment

œ Furniture and fixtures

œ Vehicles

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.60.04
UK Pound	1	Rs.101.96
Euro	1	Rs.83.58

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		11

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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