MIRA INFORM REPORT

Report Date :

30.05.2014

IDENTIFICATION DETAILS

Name :	GUALA CLOSURES (INDIA) PRIVATE LIMITED (w.e.f. 01.01.1999)
Formerly Known As :	GUALA INDIA PRIVATE LIMITED
Registered Office :	D-1, Sesa Ghor, Patto, Panjim, Goa – 403 001
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	09.12.1994
Com. Reg. No.:	24-001729
Capital Investment / Paid-up Capital :	Rs.170.000 millions
CIN No.: [Company Identification No.]	U74950GA1994PTC001729
TAN No.: [Tax Deduction & Collection Account No.]	BLRG04447C
PAN No.: [Permanent Account No.]	AAACG4447J
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is primarily engaged in the manufacture of non-refillable plastic closures and nip caps.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

A (59)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 10623000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Fundamentals of the company is decent. Financial position of the company is strong and healthy. Trade relation are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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	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 DECLINED

Management non-cooperative

(Tel. No.: 91-832-2438944)

LOCATIONS

Registered Office :	D-1, Sesa Ghor, Patto, Panjim, Goa – 403 001, India
Tel. No.:	91-832-2438944/ 2438945
Fax No.:	91-832-2438943
E-Mail :	goa@gulalaindia.com mpalha@gualaindia.com corporate@gualaindia.com acartocci@gualaclosures.com
Goa Plant :	Upper Harvalem, Sanquelim, Goa – 403 505, India
Tel. No.:	91-832-2365793/ 94/ 95/ 6733000
Fax No.:	91-832-2365785
Daman Plant :	Plot B-11/F-12, M.G. Udyognagar, O.I.D.C., Dabhel – 396 210, Daman, India
Tel. No.:	91-260-2244273/ 74/ 75/ 76
Fax No.:	91-260-2240925
Gujarat Plant :	NH No.8, P.B. No.1, Village-Kerala, Bavla, Ahmedabad – 382 220, Gujarat, India
Tel. No.:	91-2714-671000
Fax No.:	91-2714-671001

DIRECTORS

AS ON 15.04.2013

Name :

Mr. Antonio Dal Negro

Designation :

Director

Address :

House No.8/122/B, Altinho, Panaji, Goa – 403 001, India

Date of Birth/Age :

24.01.1938

Date of Appointment :

15.04.2013

DIN No.:

00004506

PAN No.:

ACWPA9107A

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	U74950GA1994PTC001729	GUALA CLOSURES (INDIA) PRIVATE LIMITED	Director	15-04-2013	14-12-1994	-	Active	NO
2	U33100GA2008PTC005732	CREATIVE MOULDS (INDIA) PRIVATE LIMITED	Director	01-07-2011	30-04-2008	31-12-2011	Strike off	NO
3	U29244GA2008PTC005804	OMSO ORIENT PRINTING MACHINES PRIVATE LIMITED	Director	01-07-2011	17-06-2008	31-12-2011	Active	NO
4	U74999CH2009PTC031661	HINDUSTAN CLOSURES PRIVATE LIMITED	Director	30-09-2010	08-01-2010	23-03-2011	Active	NO

Name :

Mr. Marco Giovannini

Designation :

Director

Address :

Paleocapa Pietro N.4, 20122, Milano, Italy

Date of Birth/Age :

16.04.1956

Date of Appointment :

17.05.2007

DIN No.:

01177504

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	U74950GA1994PTC001729	GUALA CLOSURES (INDIA) PRIVATE LIMITED	Director	17-05-2007	17-05-2007	-	Active	NO
2	U29244GA2008PTC005804	OMSO ORIENT PRINTING MACHINES PRIVATE LIMITED	Alternate director	22-09-2008	22-09-2008	31-12-2011	Active	NO

Name :

Mr. Paolo Maria Edilio Ferrari

Designation :

Director

Address :

Piazza Massimo D’ Azeglio, N.10, Alessandria, Italy, 15100

Date of Birth/Age :

20.02.1956

Date of Appointment :

14.12.1994

DIN No.:

01474517

Name :

Mr. Aiudi Davide

Designation :

Alternate Director to Marco Giovannini

Address :

Via Gastone Sozzi, 24, Marino RM, Italy 00040

Date of Birth/Age :

30.12.1981

Date of Appointment :

11.06.2011

DIN No.:

03571995

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	U74950GA1994PTC001729	GUALA CLOSURES (INDIA) PRIVATE LIMITED	Alternate director	11-06-2011	11-06-2011	-	Active	NO
2	U29244GA2008PTC005804	OMSO ORIENT PRINTING MACHINES PRIVATE LIMITED	Alternate director	01-07-2011	01-07-2011	31-12-2013	Active	NO
3	U33100GA2008PTC005732	CREATIVE MOULDS (INDIA) PRIVATE LIMITED	Director	28-04-2012	01-07-2011	-	Strike off	NO

Name :

Mr. Alessandro Cartocci

Designation :

Managing Director

Address :

Verbania (VB), Via Rosa, Franzi, 39

Date of Birth/Age :

14.10.1947

Date of Appointment :

19.04.2014

DIN No.:

06814834

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	U74950GA1994PTC001729	GUALA CLOSURES (INDIA) PRIVATE LIMITED	Managing director	19-04-2014	14-02-2014	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.04.2013

Names of Shareholders	No. of Shares
Guala Closures International B.V., The Netherlands Note: Consequent upon the merger of Guala Closures Orient BV with Guala Closures International BV, the said Shares are held in the name as above. The said change was taken note by the Board of Directors on 14^th January, 2013.	16150000
Ashok Kapoor jointly with Ravati Kapoor	849990
Severine Dsouza Note: Consequent upon the death of Mr. lgnatius Manuel Dsouza me name of the first joint holder has been deleted in the name as above. The said change was taken note by the Board of Directors on 19^th March, 2013	10
Total	17000000

AS ON 15.04.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	95.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in the manufacture of non-refillable plastic closures and nip caps.

Products :

ITC Code	Product Description
3923-50	Non-Refillable Automatic Plastic Closures, Performs and Nip Caps

GENERAL INFORMATION

No. of Employees :	Information declined by the Management.
Bankers :	· State Bank of India, Commercial Branch, Patto, Panaji, Goa – 403 001, India · HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India · HDFC Bank Limited, Minum Residency, Panaji, Goa – 403 001, India

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Lodha Excelus, 1^st Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalakshmi, Mumbai, Maharashtra, India
Tel. No.:	91-22-39896000
Fax No.:	91-22-39836000
PAN No. :	AAAFB9852F
Parties (where control exists):	· GCL Holding SCA, Luxembourg (ultimate holding company) · GCL Special Closures S.r.l, Italy (holding company of Guala Closures S. p. A. Italy) · Guala Closures S. p. A. Italy (holding company of Guala Closures International B.V. Netherlands) · Guala Closures International B.V. Netherlands (holding company of immediate holding company upto 30 December 2012, with effect from 31 · December 2012 it became the immediate holding company of the Company)
Associates:	OMSO Orient Printing Machines Private Limited, India (CIN No.: U29244GA2008PTC005804)
Fellow Subsidiary Companies:	· Beijing Guala Closures Co. Limited, China · Guala Closures Bulgaria AD, Bulgaria · Guala Closures De Mexico S.A de C.V, Mexico · Pharma Trade S.r.l, Italy · Guala Closures Tools AD, Bulgaria · Guala Patents BV, Netherlands · Creative Moulds (India) Private Limited, India

CAPITAL STRUCTURE

AS ON 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	01.01.2013 to 31.12.2013 (12 Months)	01.01.2012 to 31.12.2012 (12 Months)	01.04.2011 to 31.12.2011 (9 Months)
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	170.000	170.000	170.000
(b) Reserves & Surplus	2485.682	2447.098	2568.608
(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)	2655.682	2617.098	2738.608
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	72.846	82.785	53.882
(c) Other long term liabilities	7.205	8.653	10.973
(d) Long-term provisions	0.000	18.502	10.229
Total Non-current Liabilities (3)	80.051	109.940	75.084
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	277.045	201.342	167.662
(c) Other current liabilities	144.063	101.665	138.904
(d) Short-term provisions	81.987	33.070	166.203
Total Current Liabilities (4)	503.095	336.077	472.769
TOTAL	3238.828	3063.115	3286.461
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1696.841	1699.213	1718.321
(ii) Intangible Assets	0.000	0.078	0.208
(iii) Capital work-in-progress	40.690	2.928	58.899
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.002	0.002	0.002
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	106.049	114.765	43.016
(e) Other Non-current assets	6.006	12.595	32.698
Total Non-Current Assets	1849.588	1829.581	1853.144
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	111.539	75.630	82.720
(c) Trade receivables	760.315	916.885	845.339
(d) Cash and cash equivalents	400.416	190.885	337.071
(e) Short-term loans and advances	76.464	39.999	160.624
(f) Other current assets	40.506	10.135	7.563
Total Current Assets	1389.240	1233.534	1433.317
TOTAL	3238.828	3063.115	3286.461

PROFIT & LOSS ACCOUNT

	PARTICULARS		01.01.2013 to 31.12.2013 (12 Months)	01.01.2012 to 31.12.2012 (12 Months)	01.04.2011 to 31.12.2011 (9 Months)
	SALES
		Revenue from Operations	3910.220	3634.840	2283.588
		Other Income	70.867	60.595	48.235
		TOTAL	3981.087	3695.435	2331.823
Less	EXPENSES
		Office Expenses	3053.281	2712.305	1645.919
		Administrative Expenses
		Advertising Expenses
		TOTAL	3053.281	2712.305	1645.919
	PROFIT / (LOSS) BEFORE TAX		927.806	983.130	685.904
Less	TAX		307.060	348.904	231.994
	PROFIT / (LOSS) AFTER TAX		620.746	634.226	453.910
	EARNINGS IN FOREIGN CURRENCY		17.547	NA	8.445
	Earnings / (Loss) Per Share (Rs.)		36.51	37.31	26.70

KEY RATIOS

PARTICULARS		01.01.2013 to 31.12.2013 (12 Months)	01.01.2012 to 31.12.2012 (12 Months)	01.04.2011 to 31.12.2011 (9 Months)
PAT / Total Income	(%)	15.59	17.16	19.47
Net Profit Margin (PBT/Sales)	(%)	23.73	27.05	30.04
Return on Total Assets (PBT/Total Assets}	(%)	29.01	32.13	21.25
Return on Investment (ROI) (PBT/Networth)		0.35	0.38	0.25
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.76	3.67	3.03

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	170.000	170.000	170.000
Reserves & Surplus	2568.608	2447.098	2485.682
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2738.608	2617.098	2655.682
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	2,283.588	3,634.840	3,910.220
		59.172	7.576

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	2,283.588	3,634.840	3,910.220
Profit	453.910	634.226	620.746
	19.88%	17.45%	15.87%

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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10201816	22/01/2010	200,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	A79103099

BACKGROUND:

The Company was incorporated on 9^th December 1994 as a private limited company. The Company is primarily engaged in the manufacture of non-refillable plastic closures and nip caps. The Company has manufacturing plants at Goa, Ahmedabad and Daman. The registered office of the Company is situated in Panjim, Goa.

OPERATIONAL PERFORMANCE:

The sales level has been maintained during the year on an annualized basis. However, the expenses have increased mainly due to Increase in Plastic Cost and Management Fees. Considering the growing demand for Nipcap, we have increased the Nipcap capacity at Ahmedabad plant. With this increase, the capacity of manufacturing Nipcaps will be higher by 2.5%.

CONTINGENT LIABILITIES:

Particulars	31.12.2013 (Rs. in Millions)	31.12.2012 (Rs. in Millions)
Guarantees
a. Bank guarantees given by the Company	20.318	44.816
Other money for which the Company is contingently liable
a. Service tax and penalty	2.007	2.007
b. Excise Duty (Note A)	2.680	2.680
c. The Company is eligible for sales tax incentive under the Goa Value Added Tax Act, 2005 as per the conditions stipulated in the applicable scheme. The Company may be liable for penalty in case of non-fulfilment of conditions.

Note (A)

The Company received a show cause cum demand notice (SCN) from the Joint Commissioner of Central Excise and Service tax, Panaji - Goa to pay excise duty aggregating to Rs.2.680 millions (Previous Period: Rs.2.680 millions) on sales tax incentive retained by the Company. The Company has filed a reply to the said SCN. This is an industry-wide issue for all units located in Goa Industrial Development Corporation area with precedents of legal cases on the issue, as to why the excise duty should not be levied on the sales tax incentive retained by the Company. In view of the above, the management believes that the probability of case being decided in favour of the Company is very high and hence, no provision for the same is created in the books.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office and Equipment

Intangible Assets

· Computer Software

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 :	HTL
Analysis Done by :	SUM
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		59

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.