MIRA INFORM REPORT

Report Date :

28.11.2014

IDENTIFICATION DETAILS

Name :	SAINSONS PAPER INDUSTRIES LIMITED
Registered Office :	Plot No 5, Village Bakhli, Teh. Pehowa, Kurukshetra – 136128, Haryana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.09.1989
Com. Reg. No.:	05-030667
Capital Investment / Paid-up Capital :	Rs.145.703 Millions
CIN No.: [Company Identification No.]	U21010HR1989PLC030667
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACS2191R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Kraft Paper.
No. of Employees :	313 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1046000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Rating reflects above average financial risk profile marked by decent liquidity positon and sound operational performance of the company. Tarde relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered 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 – 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 22, 2013

Rating Agency Name	CRISIL
Rating	Short term rating A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	October 22, 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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Shashi
Designation :	Admin Department
Contact No.:	91-8043257753
Date :	25.11.2014

LOCATIONS

Registered Office / Factory :	Plot No 5, Village Bakhli, Teh. Pehowa, Kurukshetra – 136128, Haryana, India
Tel. No. :	91-1741-220986
Mobile No. :	91-8043257753 (Mr. Shashi)
Fax No. :	91-1741-221086
E-Mail :	info@sainsons.net
Website :	www.saisons.com
Location :	Owned
Admin Office :	SCO – 383, 2^nd Floor, Sector – 20, Panchkula – 136118, Haryana, India

DIRECTORS

As on 29.08.2014

Name :

Mr. Balkishan Saini

Designation :

Whole-time Director

Address :

House No 191, Gali 3, Ward 13, Amargarh Gamri (Dt 43/20), Kaithal - 136027, Haryana, India

Date of Birth/Age :

01.01.1961

Date of Appointment :

01.05.2011

PAN No.:

AIGPS3456E

DIN No. :

00044697

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	U21012HR1996PTC033238	PRADEEP INTERNATIONAL PRIVATE LIMITED	Director	19/08/96	19/08/96	-	Active	NO
2	U21010HR1989PLC030667	SAINSONS PAPER INDUSTRIES LIMITED	Whole-time director	01/05/11	05/08/99	-	Active	NO

Name :

Mr. Harikrishan Saini

Designation :

Whole-time Director

Address :

House No 191/13, Amargarh Gamri, Kaithal, 136027, Haryana, India

Date of Birth/Age :

01.12.1986

Date of Appointment :

01.05.2011

PAN No.:

BOUPS3436P

DIN No. :

00044952

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	U21010HR1989PLC030667	SAINSONS PAPER INDUSTRIES LIMITED	Whole-time director	01/05/11	01/04/05	-	Active	NO
2	U21011DL1996PTC076820	SHORAB INTERNATIONAL PRIVATE LIMITED	Director	27/01/06	27/01/06	-	Active	NO
3	U52100DL2007PTC167937	OP MARKETING PRIVATE LIMITED	Director	18/01/12	18/01/12	-	Active	NO
4	U28931DL2006PTC153972	K. G. METALLOYS PRIVATE LIMITED	Director	29/09/12	01/03/12	-	Active	NO
5	U85100DL2012PTC239121	SANKALP MEDI-AID SOLUTIONS PRIVATE LIMITED	Director	20/07/12	20/07/12	-	Active	NO
6	U93000HR2013PTC049212	CONTEMPLAY ENERGY PRIVATE LIMITED	Director	20/05/13	20/05/13	-	Active	NO

Name :

Mr. Pradeep Kumar Sain

Designation :

Managing Director

Address :

Village Sainsa, Tehsil Pehowa, Kurukshetra - 136128, Haryana, India

Date of Birth/Age :

17.07.1981

Date of Appointment :

01.05.2011

PAN No.:

AQHPS2258R

DIN No. :

00044999

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	U21010HR1989PLC030667	SAINSONS PAPER INDUSTRIES LIMITED	Managing director	01/05/11	21/12/01	-	Active	NO
2	U21012HR1996PTC033238	PRADEEP INTERNATIONAL PRIVATE LIMITED	Director	27/01/06	27/01/06	-	Active	NO
3	U34102DL2007PTC160544	SHEETAL AUTO COMPONENTS PRIVATE LIMITED	Director	15/03/07	15/03/07	-	Active	NO
4	U52100DL2007PTC167937	OP MARKETING PRIVATE LIMITED	Director	18/01/12	18/01/12	-	Active	NO
5	U28931DL2006PTC153972	K. G. METALLOYS PRIVATE LIMITED	Director	29/09/12	01/03/12	-	Active	NO

Name :

Mr. Sadhu Ram Saini

Designation :

Whole-time Director

Address :

Village Sainsa, Tehsil Pehowa, Kurukshetra - 136128, Haryana, India

Date of Birth/Age :

01.10.1954

Date of Appointment :

01.05.2011

PAN No.:

AOIPS2892G

DIN No. :

00045040

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	U21011DL1996PTC076820	SHORAB INTERNATIONAL PRIVATE LIMITED	Director	01/03/96	01/03/96	-	Active	NO
2	U21010HR1989PLC030667	SAINSONS PAPER INDUSTRIES LIMITED	Whole-time director	01/05/11	01/10/06	-	Active	NO
3	U34102DL2007PTC160544	SHEETAL AUTO COMPONENTS PRIVATE LIMITED	Director	15/03/07	15/03/07	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ram Lal Prabhakar
Designation :	Secretary
Address :	H. No. 119, Sector 16A, Chandigarh - 160015, Chandigarh, India
Date of Birth/Age :	12.10.1923
Date of Appointment :	08.11.2010
PAN No. :	ABQPP9080P
Name :	Mr. Shashi
Designation :	Admin Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.08.2014

Names of Shareholders	No. of Shares	%age
Sadhu Ram Saini	2115233	14.52
Balkishan Saini	3537433	24.28
Om Kali	1853210	12.72
Harikrishan Saini	1166082	8.00
Pradeep Kumar Sain	2281322	15.66
Vinod Kumar Saini	386563	2.65
Arun Saini	386563	2.65
Dev Raj Saini	386562	2.65
Amit Saini	386562	2.65
O.P. Marketing Private Limited, India	2070801	14.21
Total	14570331	100.00

As on 29.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	14.21
Directors or relatives of Directors	85.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Kraft Paper.

Products :

Item Code No. (ITC Code)	Product Description
48044100	Other Kraft Paper

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Kraft Paper

Countries :

Nepal

Imports :

Not Available

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Wholesalers and Retailers and Manufacturer

No. of Employees :

313 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	SCB at SCO, 103-106, Sector – 17 B, Chandigarh, (U.T.), India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	--

v Punjab National Bank, Industrial Area-II, Chandigarh - 160001, Chandigarh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	138.662	120.745
Other loans and advances	56.985	5.520
SHORT TERM BORROWINGS
Rupee term loans from banks	67.065	56.688
Loans taken for vehicles	4.074	5.565
Other loans and advances	144.785	189.996
Total	411.571	378.514

Auditors :
Name :	D. V. Mittal and Company Chartered Accountants
Address :	101, Time House, 5, Community Centre, Wazirpur Comm.,Complex, Delhi, India
PAN No. :	AAAFD5458K
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14570331	Equity Shares	Rs.10/- each	Rs.145.703 Millions

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	145.703	135.328	88.809
(b) Reserves & Surplus	220.690	161.339	149.182
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	1.584	0.000
Total Shareholders’ Funds (1) + (2)	366.393	298.251	237.991
(3) Non-Current Liabilities
(a) long-term borrowings	266.327	197.531	231.991
(b) Deferred tax liabilities (Net)	44.682	51.605	41.155
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	3.954	2.678	1.667
Total Non-current Liabilities (3)	314.963	251.814	274.813
(4) Current Liabilities
(a) Short term borrowings	215.924	252.249	267.764
(b) Trade payables	56.504	68.306	46.944
(c) Other current liabilities	12.680	6.202	11.449
(d) Short-term provisions	8.533	9.237	11.331
Total Current Liabilities (4)	293.641	335.994	337.488
TOTAL	974.997	886.059	850.292
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	461.185	509.409	434.942
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	135.005	0.000	66.870
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.754	26.621	23.619
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	606.944	536.030	525.431
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	129.939	160.484	160.649
(c) Trade receivables	206.980	157.066	135.561
(d) Cash and cash equivalents	2.843	5.382	10.408
(e) Short-term loans and advances	28.291	27.097	18.243
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	368.053	350.029	324.861
TOTAL	974.997	886.059	850.292

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	1656.652	1162.890	1055.675
		Other Income	3.020	0.973	7.379
		TOTAL	1659.672	1163.863	1063.054
Less	EXPENSES
		Cost of Materials Consumed	1055.449	681.289	595.370
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	5.547	4.521	(0.035)
		Employees benefits expense	50.270	46.175	39.672
		Expenditure on production, transportation and other expenditure pertaining to E&P activities	320.101	205.904	215.334
		Other expenses	35.461	35.314	31.640
		TOTAL	1466.828	973.203	881.981
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		192.844	190.660	181.073
Less	FINANCIAL EXPENSES		40.157	49.578	51.963
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		152.687	141.082	129.110
Less/ Add	DEPRECIATION/ AMORTISATION		79.741	78.867	71.725
	PROFIT/ (LOSS) BEFORE TAX		72.946	62.215	57.385
Less	TAX		23.970	20.455	16.756
	PROFIT/ (LOSS) AFTER TAX		48.976	41.760	40.629
	Earnings / (Loss) Per Share (Rs.)		3.61	3.09	3.43

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.96	3.59	3.85
Operating Profit Margin (PBDIT/ Sales)	(%)	11.64	16.40	17.15
Return on Total Assets (PBT/Total Assets}	(%)	8.68	7.02	7.32
Return on Investment (ROI) (PBT/Networth)		0.20	0.21	0.24
Debt Equity Ratio (Total Debt/Networth)		1.32	1.51	2.10
Current Ratio (Current Asset/Current Liability)		1.25	1.04	0.96

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	88.809	135.328	145.703
Reserves & Surplus	149.182	161.339	220.690
Share Application money pending allotment	0.000	1.584	0.000
Net worth	237.991	298.251	366.393
long-term borrowings	231.991	197.531	266.327
Short term borrowings	267.764	252.249	215.924
Total borrowings	499.755	449.780	482.251
Debt/Equity ratio	2.100	1.508	1.316

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)
Revenue from operations	1055.675	1162.890	1656.652
		10.156	42.460

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1055.675	1162.890	1656.652
Profit	40.629	41.760	48.976
	3.85%	3.59%	2.96%

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
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	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

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from directors	22.940	21.409
Loans and advances from others	45.251	42.868
Other loans and advances	2.489	6.989
Total	70.680	71.266

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10123932	20/03/2014 *	480,200,000.00	State Bank of India	State Bank of India, Sector 17 B, Chandigarh, Chandigarh - 160017, INDIA	C03294477
2	10123094	20/08/2008	197,000,000.00	STATE BANK OF INDIA	LOCAL HEAD OFFICE AT SCO NO.103-106, SECTOR-17-B, CHANDIGARH, Chandigarh - 160018, INDIA	A46155362
3	10123096	20/08/2008	197,000,000.00	STATE BANK OF INDIA	LOCAL HEAD OFFICE AT SCO NO.103-106, SECTOR -17 - B, CHANDIGARH, Chandigarh - 160018, INDIA	A46155677

* Date of charge modification

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ Computer Equipment’s

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 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.61.86
UK Pound	1	Rs.97.69
Euro	1	Rs.77.37

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUM
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.