MIRA INFORM REPORT

Report Date :

30.05.2014

IDENTIFICATION DETAILS

Name :	CHAMPION COMMERCIAL COMPANY LIMITED

Registered Office :	P15-New C I T Road, Kolkata – 700073, West Bengal

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	17.05.1982

Com. Reg. No.:	21-034891

Capital Investment / Paid-up Capital :	Rs.2.000 Millions

CIN No.: [Company Identification No.]	L51909WB1982PLC034891

TAN No.: [Tax Deduction & Collection Account No.]	CALC00807C

PAN No.: [Permanent Account No.]	AABCC2373G

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. [Listed in Kolkata Stock Exchange Limited]

Line of Business :	Subject is engaged in the business of marketing and distribution of specialty chemicals.

No. of Employees :	Not Divulged

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 600000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relation reported to be fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealing 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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based – Cash Credit=BBB-
Rating Explanation	Have moderate degree of safety and moderate credit risk.
Date	December 2013

Rating Agency Name	ICRA
Rating	Non Fund Based – Bank=A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	December 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED

Management Non Co-operative (91-22-40394132)

LOCATIONS

Registered Office :	P15-New C I T Road, Kolkata – 700073, West Bengal
Tel. No.:	91-22-40394132
Fax No.:	Not Available
E-Mail :	gaurav@singhaniagroup.com mumbai@singhaniagroup.com
Website :

Corporate Office :	305, Embassy Centre, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-40024100
Fax No.:	91-22-22853725

Branch Office :	Located At: · Pune · Vapi · Delhi

Warehouse :	Bhiwandi

DIRECTORS

AS ON 26.06.2013

Name :

Mr. Sushil Kumar Singhania

Designation :

Director

Address :

6^th Floor, Flat No.14, Alpana, 60, Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

13.05.1956

Date of Appointment :

31.01.2014

DIN No.:

00379991

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	U51109WB1947PTC015246	SINGHANIA & SONS PRIVATE LIMITED	Director	11/12/1986	11/12/1986	15/06/2012	Active	NO
2	U24231WB1987PTC041813	GAUNIK TRADERS PRIVATE LIMITED	Director	28/01/1987	28/01/1987	15/06/2012	Active	NO
3	U24119WB1987PTC042168	FAB CHEMICALS PRIVATE LIMITED	Director	08/04/1987	08/04/1987	-	Active	NO
4	U67120MH1984PTC033631	GANAPATI HOLDINGS AND TRADINGS PRIVATE LIMITED	Managing director	03/11/1989	03/11/1989	-	Active	NO
5	L51909WB1982PLC034891	CHAMPION COMMERCIAL CO. LIMITED	Director	31/01/2014	26/11/1990	-	Active	NO
6	U70101WB1995PTC072786	ARNOLD BUILDERS PRIVATE LIMITED	Director	11/07/1995	11/07/1995	-	Active	NO
7	U51109WB1998PTC086644	PTC GLOBAL PRIVATE LIMITED	Director	25/02/1998	25/02/1998	15/06/2012	Active	NO
8	U74899DL1990PTC041333	PASUPATI TEXTURISING PRIVATE LIMITED	Director	11/11/2004	11/11/2004	-	Active	NO
9	U51109WB2005PTC105548	SPRINGFIELD GOODS PRIVATE LIMITED	Director	06/02/2007	06/02/2007	-	Active	NO
10	U40108CT2007PLC020371	Chattisgarh Energy Limited	Director	11/09/2007	11/09/2007	22/09/2008	Active	NO
11	U27102JH2003PLC010226	JHARKHAND METALS & POWER LIMITED	Director	26/09/2008	23/10/2007	-	Active	NO
12	U45201UP2005PTC031159	WELLDONE INFRASTRUCTURE PRIVATE LIMITED	Director	14/04/2011	14/04/2011	-	Active	NO
13	U24233MH2010PTC209146	CHAMPION ADVANCED MATERIALS PRIVATE LIMITED	Director	31/01/2014	27/09/2012	-	Active	NO
14	AAC-0353	CHAMPION REALTY LLP	Designated Partner	28/01/2014	28/01/2014	-	Active	NO

Name :

Mr. Gaurav Singhania

Designation :

Director

Address :

14^th Alpana Cooperative Housing Society Limited, 6^th Floor, 60, Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

20.05.1982

Date of Appointment :

10.07.2012

DIN No.:

01186568

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	U25199MH2006PTC164611	CHAMPION POLYTECH PRIVATE LIMITED	Director	15/09/2006	15/09/2006	Active	NO
2	U51109WB2005PTC105548	SPRINGFIELD GOODS PRIVATE LIMITED	Director	06/02/2007	06/02/2007	Active	NO
3	U67120MH1984PTC033631	GANAPATI HOLDINGS AND TRADINGS PRIVATE LIMITED	Director	27/11/2007	27/11/2007	Active	NO
4	U24233MH2010PTC209146	CHAMPION ADVANCED MATERIALS PRIVATE LIMITED	Director	11/07/2011	11/07/2011	Active	NO
5	L51909WB1982PLC034891	CHAMPION COMMERCIAL CO. LIMITED	Director	29/09/2012	10/07/2012	Active	NO
6	U45201UP2005PTC031159	WELLDONE INFRASTRUCTURE PRIVATE LIMITED	Director	10/08/2012	10/08/2012	Active	NO
7	U74899DL1990PTC041333	PASUPATI TEXTURISING PRIVATE LIMITED	Director	27/12/2013	27/12/2013	Active	NO
8	AAC-0353	CHAMPION REALTY LLP	Designated Partner	28/01/2014	28/01/2014	Active	NO
9	AAC-0940	METRO APARTMENTS LLP	Designated Partner	17/02/2014	17/02/2014	Active	NO

Name :

Mr. Girdhari Lal Khemani

Designation :

Director

Address :

93/4, Karaya Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

13.10.1942

Date of Appointment :

17.05.1982

DIN No.:

00660797

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	U02005WB1957PTC023434	SRI BENGAL TEA CHEST FITTINGS MFG PRIVATE LIMITED	Director	01/06/1978	01/06/1978	Active	NO
2	L51909WB1982PLC034891	CHAMPION COMMERCIAL CO. LIMITED	Director	17/05/1982	17/05/1982	Active	NO
3	U27209WB1984PTC037547	G.R.TRADING COMPANY PRIVATE LIMITED	Director	30/08/1984	30/08/1984	Active	NO
4	U51109WB1947PTC015246	SINGHANIA & SONS PRIVATE LIMITED	Director	23/08/1985	23/08/1985	Active	NO
5	U01132WB1987PLC042667	MEGA TEA LIMITED	Director	11/06/1992	11/06/1992	Active	NO
6	U74899DL1990PTC041333	PASUPATI TEXTURISING PRIVATE LIMITED	Director	03/05/1994	03/05/1994	Active	NO
7	U74899DL1994PTC059416	SHEWNARAIN MAGRAJ FINANCE & INVESTMENTS PRIVATE LIMITED	Director	03/06/1994	03/06/1994	Active	NO
8	U24299WB1988PTC044980	MATACO PHARMACEUTICAL PRIVATE LIMITED	Director	26/06/2007	26/06/2007	Active	NO

MAJOR SHAREHOLDERS

SHAREHOLDERS DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

AS ON 26.06.2013

Category	Percentage
Directors or relatives of Directors	95.50
Other top fifty shareholders	4.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of marketing and distribution of specialty chemicals.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· ICICI Bank limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Car Loan
HDFC Bank Car Loan (Against hypothecation of vehicle and personal guarantee of directors)	0.000	0.256
Axis Bank Limited (Against hypothecation of vehicle and personal guarantee of directors)	2.872	0.000
Kotak Mahindra Prime Limited (Against hypothecation of vehicle and personal guarantee of directors)	0.000	0.847
Term Loan from Bank
Kotak Mahindra Bank Limited (Against hypothecation of property)	51.618	59.532

Short Term Borrowings
Loan repayable on demand
Cash Credit facility from ICICI Bank Limited, Mumbai (Charge by way of hypothecation of stock, book debts, bills, some specified assets of company and personal guarantee of directors)	42.484	28.383
Morgan Stanley India Capital Private Limited (Against pledge held as long term investments and personal guarantee of directors)	9.000	0.214
Buyer’s Credit in Foreign currency from bank (Mumbai, against hypothecation of stock and debtors)	21.750	21.101

Total	127.724	110.333


Banking Relations :	--

Auditors :
Name :	Deepal Agarwal Associates Chartered Accountants
Address :	156A, Lenin Sarani, 1^st Floor, R. N. F-84, Kamalalaya Centre, Kolkata – 700013, West Bengal, India
PAN No.:	ACZPA0424H

Related Party :	· Fab Chemicals Private Limited · Singhania and Sons Private Limited · Ganpati Holding and Trading Private Limited · PTC Global Private Limited · Arnold Builders Private Limited

CAPITAL STRUCTURE

AS ON 26.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

200000	Equity Shares	Rs.10/- each	Rs.2.000 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	2.000	2.000	2.000
(b) Reserves & Surplus	171.849	157.522	135.079
(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)	173.849	159.522	137.079

(3) Non-Current Liabilities
(a) long-term borrowings	54.490	60.635	59.788
(b) Deferred tax liabilities (Net)	0.658	0.790	1.541
(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)	55.148	61.425	61.329

(4) Current Liabilities
(a) Short term borrowings	74.102	50.556	67.127
(b) Trade payables	64.906	85.800	77.278
(c) Other current liabilities	2.895	4.317	10.801
(d) Short-term provisions	0.000	0.000	1.476
Total Current Liabilities (4)	141.903	140.673	156.682

TOTAL	370.900	361.620	355.090

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	110.446	106.968	101.805
(ii) Intangible Assets	0.192	0.148	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	55.945	60.658	47.040
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.444	1.352	2.270
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	168.027	169.126	151.115

(2) Current assets
(a) Current investments	0.000	0.000	2.708
(b) Inventories	87.496	51.440	91.497
(c) Trade receivables	103.884	115.018	83.649
(d) Cash and cash equivalents	4.412	6.603	13.141
(e) Short-term loans and advances	6.784	19.226	12.954
(f) Other current assets	0.297	0.207	0.026
Total Current Assets	202.873	192.494	203.975

TOTAL	370.900	361.620	355.090

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	746.258	750.347	679.812
		Other Income	9.534	6.651	15.451
		TOTAL (A)	755.792	756.998	695.263

Less	EXPENSES
		Purchase of Stock-in-trade	699.504	616.024	634.209
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(36.056)	39.936	(40.171)
		Employee Benefits Expenses	21.313	20.284	15.255
		Other Expenses	29.781	27.114	29.679
		TOTAL (B)	714.542	703.358	638.972

Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.250	53.640	56.291

Less	FINANCIAL EXPENSES (D)		16.084	18.368	9.159

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.166	35.272	47.132

Less	DEPRECIATION/ AMORTISATION (F)		3.460	3.080	3.454

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		21.706	32.192	43.678

Less	TAX (H)		7.380	9.748	14.632

	PROFIT/(LOSS) AFTER TAX (G-H) (I)		14.326	22.444	29.046

	C.I.F. VALUE OF TOTAL IMPORTS		472.331	366.006	NA

	Earnings Per Share (Rs.)		72.00	112.00	145.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.90	2.96	4.18

Net Profit Margin (PBT/Sales)	(%)	2.91	4.29	6.43

Return on Total Assets (PBT/Total Assets}	(%)	6.89	10.70	14.18

Return on Investment (ROI) (PBT/Networth)		0.12	0.20	0.32

Debt Equity Ratio (Total Debt /Networth)		0.74	0.70	0.93

Current Ratio (Current Asset/Current Liability)		1.43	1.37	1.30

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	2.000	2.000	2.000
Reserves & Surplus	135.079	157.522	171.849
Net worth	137.079	159.522	173.849

long-term borrowings	59.788	60.635	54.490
Short term borrowings	67.127	50.556	74.102
Total borrowings	126.915	111.191	128.592
Debt/Equity ratio	0.926	0.697	0.740

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	679.812	750.347	746.258
		10.376	(0.545)

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	679.812	750.347	746.258
Profit	29.046	22.444	14.326
	4.27%	2.99%	1.92%

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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
From Body Corporate	0.868	0.868

Total	0.868	0.868

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10450999	23/10/2013 *	208,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B88060777
2	10231736	02/08/2010	65,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A91064642
3	90251068	02/07/1991	110,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	COOKE & KELVEY BUILDING; IST FLOOR;20, OLD COURT HOUSE STREET, KOLKATTA, WEST BENGAL - 700001, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Building

· Furniture and Fixture

· Vehicles

· Office Equipment

· Computer

· Air Conditioner

· Software

· Printing

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.58.84
UK Pound	1	Rs.98.41
Euro	1	Rs.80.03

INFORMATION DETAILS

Information Gathered by :	HNA

Analysis Done by :	RAS

Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--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.