MIRA INFORM REPORT

Report Date :

11.11.2014

IDENTIFICATION DETAILS

Name :	MEDICAPS LIMITED
Registered Office :	Mhow-Neemuch Road, Sector-1, Pithampur - 454 775, Disttrict Dhar, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.08.1983
Com. Reg. No.:	10-002231
Capital Investment / Paid-up Capital :	Rs. 124.699 Millions
CIN No.: [Company Identification No.]	L24232MP1983PLC002231
TAN No.: [Tax Deduction & Collection Account No.]	BPLM01282B
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Capsules
No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1783000
Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There seems drastic dip in the profit of the company during 2014. However, the company is operating on its owned funds. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered normal for business dealings 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Amit Parmar
Designation :	Assistant Account Manger
Contact No.:	91-7292-407445
Date :	10.11.2014

LOCATIONS

Registered Office / Factory :	Mhow-Neemuch Road, Sector-1, Pithampur 454 775, Disttrict Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-407445/407446/253596
Fax No.:	91-7292-407387
E-Mail :	info@medicaps.com purchase@medicaps.com indore@medicaps.com accounts@medicaps.com
Website :	http://www.medicaps.com
Location :	Owned
Corporate Office :	201, Pushpratna Paradise, 9/5, New Palasia, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-4046321
Email. :	indore@medicaps.com
Website :	www.medicaps.com

DIRECTORS

As on: 31.03.2014

Name :	Mr. Ramesh C.Mittal
Designation :	Chairman and Managing Director
PAN No. :	ABZPM1785C
Date of Appointment :	06.08.1983
DIN No.:	00035272
Name :	Mr. Alok K. Garg
Designation :	Whole Time Director
PAN No. :	AAHPG5352J
Date of Appointment :	01.04.1999
DIN No.:	00274321
Name :	Mrs. Kusum Mittal
Designation :	Whole Time Director
PAN No. :	ABZPM1784D
Date of Appointment :	04.05.1991
DIN No.:	00035356
Name :	Mrs. Trapti Vikas  Gupta
Designation :	Director
PAN No. :	AENPM0248M
Date of Appointment :	30.01.2009
DIN No.:	00204741
Name :	Dr. Shashikant Sharma
Designation :	Director
PAN No. :	AGTPS5397P
Date of Appointment :	29.06.1993
DIN No.:	00204610
Name :	Dr. Shamsher Singh
Designation :	Director
PAN No. :	AGAPS8548P
Date of Appointment :	30.04.2009
DIN No.:	00204290
Name :	Dr. Keshav Singh  Verma
Designation :	Director
PAN No. :	ACIPV0319H
Date of Appointment :	30.04.2007
DIN No.:	01490522
Name :	Dr. Vishwanath Balkrishna Malker
Designation :	Director
PAN No. :	ABVPM7903Q
Date of Appointment :	Up to 29.05.2014
DIN No.:	02491684
Name :	Shri Pramod Fatehpuria
Designation :	Independent Director
DIN No.:	00972389

KEY EXECUTIVES

Name :	Mr. Amit Parmar
Designation :	Assistant Account Manger
Name :	Shri Manish Kumar Jain
Designation :	Chief Financial Officer
Name :	D.K. Jain and Company
Designation :	Company Secretaries
Address :	4^th floor, Silver Ark Plaza, Narayan Kothi Square, 20 / A, New Palasia, Indore, Madhya Pradesh

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5938656	47.62
Bodies Corporate	307128	2.46
Sub Total	6245784	50.09
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6245784	50.09
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4800	0.04
Financial Institutions / Banks	29200	0.23
Sub Total	34000	0.27
(2) Non-Institutions
Bodies Corporate	706018	5.66
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3019305	24.21
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2159783	17.32
Any Others (Specify)	305066	2.45
NRIs/OCBs	301640	2.42
Clearing Members	3426	0.03
Sub Total	6190172	49.64
Total Public shareholding (B)	6224172	49.91
Total (A)+(B)	12469956	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)	12469956	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Capsules

Products :

Products Description	Products Description
Hard Gelatin Capsule Shells I.P.	9602 0030

PRODUCTION STATUS (As on 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Hard Gelatin Capsule	Nos in Lacs	42000	398087

GENERAL INFORMATION

No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]
Bankers :	IDBI Bank Limited IndusInd Bank Limited State-Bank of Indore ICICI Bank
Facilities :	--

Banking Relations :	--
Auditors :
Name :	C P Rawka and Company Chartered Accountants
Address :	403, Acrcade Sliver, 56,1, New Palasia, Indore - 452 001, Madhya Pradesh, India
Tel. No.:	91-731-2541132
Fax No.:	91-731-4215397
E-Mail :	cp_rawka@yahoo.com

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
13021047	Equity Shares	Rs.10/- each	Rs. 130.210 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12469956	Equity Shares	Rs.10/- each	Rs. 124.699 Millions

Details of shareholders holding more than 5 percent share in the company

Name of shareholders	No. of shares	% of Holding
R.C. Mittal	3166320	25.40%
Kusum Mittal	2700136	21.65%

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	124.699	124.699	31.175
(b) Reserves & Surplus	499.502	498.075	584.943
(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)	624.201	622.774	616.118
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	2.915	2.048	2.530
(c) Other long term liabilities	0.763	0.763	0.763
(d) long-term provisions	6.636	5.538	4.834
Total Non-current Liabilities (3)	10.314	8.349	8.127
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	11.727	5.337	6.083
(c) Other current liabilities	17.268	15.475	18.827
(d) Short-term provisions	10.000	12.000	21.535
Total Current Liabilities (4)	38.995	32.812	46.445
TOTAL	673.510	663.935	670.690
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	40.013	42.762	40.807
(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	302.732	323.204	364.363
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	54.202	54.203	3.779
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	396.947	420.169	408.949
(2) Current assets
(a) Current investments	114.809	14.316	59.030
(b) Inventories	54.398	41.295	26.752
(c) Trade receivables	80.023	67.455	51.183
(d) Cash and cash equivalents	7.966	7.504	14.768
(e) Short-term loans and advances	19.367	113.196	110.008
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	276.563	243.766	261.741
TOTAL	673.510	663.935	670.690

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	273.698	260.251	258.211
		Other Income	(15.619)	(13.325)	0.847
		TOTAL	258.079	246.926	259.058
Less	EXPENSES
		Cost of Materials Consumed	124.829	112.458	84.368
		Purchases of Stock-in-Trade	0.000	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.534)	(16.239)	(4.289)
		Employees benefits expense	47.257	44.674	41.427
		Other expenses	77.876	81.572	86.053
		TOTAL	242.428	222.465	207.559
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		15.651	24.461	51.499
Less	DEPRECIATION/ AMORTISATION		3.404	6.286	9.597
	PROFIT BEFORE TAX		12.247	18.175	41.902
Less	TAX		10.821	11.518	14.633
	PROFIT AFTER TAX		1.426	6.657	27.269
	BALANCE CARRIED TO THE B/S		461.868	460.442	453.785
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15.509	6.211	NA
	Earnings Per Share (Rs.)		0.11	0.53	2.19

QUARTERLY / SUMMARISED RESULTS

Particulars (Rs. Millions)	Jun 2014
Audited / UnAudited	UnAudited
Net Sales	71.400
Total Expenditure	63.100
PBIDT (Excl OI)	8.300
Other Income	0.000
Operating Profit	8.300
Interest	0.000
Exceptional Items	0.000
PBDT	8.300
Depreciation	0.800
Profit Before Tax	7.500
Tax	1.800
Provisions and contingencies	0.000
Profit After Tax	5.700
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	5.700

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.52	2.56	10.56
Return on Total Assets (PBT/Total Assets}	(%)	3.30	5.33	13.68
Return on Investment (ROI) (PBT/Networth)		0.02	0.03	0.07
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		7.09	7.43	5.64

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	31.175	124.699	124.699
Reserves & Surplus	584.943	498.075	499.502
Net worth	616.118	622.774	624.201
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	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	258.211	260.251	273.698
		0.790	5.167

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	258.211	260.251	273.698
Profit	27.269	6.657	1.426
	10.56%	2.56%	0.52%

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

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90207759	22/01/1996	11,500,000.00	I.D.B.I. BANK LTD.	ALANKAR CHAMBERS, RATLAM KOTHI; A.B. ROAD, INDORE, MADHYA PRADESH - 452001, INDIA	-
2	90207250	24/03/1992	300,000.00	BANK OF BARODA	R.N.T. MARG, INDORE, MADHYA PRADESH, INDIA	-
3	90202622	05/10/1990	1,000,000.00	BANK OF BARODA	R.N.T. MARG, INDORE, MADHYA PRADESH, INDIA	-
4	90204557	24/07/1986	700,000.00	BANK OF BARODA	R.N.T. MARG, INDORE, MADHYA PRADESH, INDIA	-
5	90202201	28/01/1991 *	9,000,000.00	M.P. AUDYOGIK VIKAS NIGAM LTD.	PANCHANAN; 2 - ND FLOOR, MALVIYA NAGAR, BHOPAL, MADHYA PRADESH, INDIA	-

COMPANY PERFORMANCE & FUTUREOUTLOOK:

In spite of the slack in the market condition during the year, it could earn the gross income of Rs.258.078 Millions as compared to Rs. 246.927 Millions in previous year. Due to sharp increase in the cost of raw material and employee cost, the profitability of the Company has been decreased from Rs.18.175 Millions to Rs.12.245 Millions. The Company’s investment in the Mutual Funds, etc. as well as in Subsidiary Company could not generate adequate profits even the Company has to incur losses on the investments activities due to depressed capital market and Mutual Funds in the country.

OUTLOOK

While they cannot predict a further performance, they believe considerable opportunities will exist for sustained and profitable growth, not only in the developing countries but also in the developed western countries. The Company is in continuous process to launch new variety of empty capsules and variants to meet out the demands in the coming year and also to expand its marketing reach in other country for growth in the export as well as domestic turnover. The company with its continued focus on exports stands to gain a lot from the emerging scenario. However, return from the investment activities may largely affect the profitability of the Company.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2014

Sr. No.	Particulars			Rs in Millions
				Quarter ended
				as on 30.06.2014
				(Unaudited)
1	(a) Net Sales/Income from Operations			70.405
	(b)Other Operating Income			0.959
	Total Income From Operations (Net)			71.364
2	Expenditure
	(a)		Cost of Materials Consumed	36.160
	(b)		Purchases of Stock-in-Trade	0.000
	(c)		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.277)
	(d)		Employees benefits expense	11.554
	(e)		Power Cost	8.798
	(f)		Depreciation and amortization expense	0.809
	(g)		Other expenses	7.860
			TOTAL (B)	63.903
3	Profit from operation before other income, interest and other exceptional items(1-2)			7.461
4	Other Income			0.000
5	profit before interest and exceptional items(3+4)			7.461
6	Interest			0.000
7	Profit after interest but before exceptional items(5-6)			7.461
8	Exceptional Items			0.000
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			7.461
10	Tax Expenses			1.800
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			5.661
12	Extra Ordinary Items			0.000
13	Net Profit(+)/Loss(-) for the period (1112)			5.661
14	Paid-up Equity Share Capital Rs.10/ per share			124.700
15	Reserves excluding revaluation reserves			--
16		Earnings Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.45
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.45
17		Public Shareholding
		Number of Shares		62.24
		Percentage of Shareholding		49.91
18		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		---
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		---
		Percentage of Shares (as a % of the total share capital of the Company)		---
		b) Non-encumbered
		Number of shares		62.46
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00
		Percentage of Shares (as a % of the total share capital of the Company)		50.09
		Particulars		3 months ended 30.06.2014
		INVESTOR COMPLAINTS
		Pending at the beginning of the quarter		NIL
		Received during the quarter		6
		Disposed off during the quarter		6
		Remaining unresolved at the end of the quarter		NIL

Notes:

1. The above unaudited results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on August 13, 2014.

2. The statutory auditors of the Company have carried out a limited review of the standalone financial statement of the Company for the above said quarter and were also approved by the Board. There is no qualification in the limited, Review for the quarter ended June 30, 2014.

3. The Company is dealing only in one segment.

4. Pursuant to applicability of the Companies Act, 2013 from accounting period commencing after 1st April, 2014. the Company has re-calculated depreciation with reference to the estimated economic lives of fixed assets prescribed by Schedule II to the Companies Act, 2013 or actual useful life of assets whichever is lower. Due to above. in case any assets whose life has been completed as on 1st April, 2014, the carrying value, net of residual value thereof has been adjusted from the General Reserve and in other cases additional depreciation due to revised use life lives of the assets has been recognize in the Statement of Profit and Loss.

5. Figures have been rearranged as per requirements.

FIXED ASSETS:

• Free Hold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Computers

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 judgment 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.61.45
UK Pound	1	Rs.97.76
Euro	1	Rs.76.68

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	JAY

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	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.