MIRA INFORM REPORT

Report Date :

29.11.2014

IDENTIFICATION DETAILS

Name :	SAKATA INX (INDIA) LIMITED
Formerly Known As :	MONTARI INKS LIMITED
Registered Office :	B-1245-1246, RIICO Industrial Area, Ghatal, Bhiwadi – 301019, Rajasthan
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.05.1994
Com. Reg. No.:	17-008294
Capital Investment / Paid-up Capital :	Rs.583.000 Millions
CIN No.: [Company Identification No.]	U24117RJ1994PLC008294
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JPRS04836G
PAN No.: [Permanent Account No.]	AACCS4797D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of packaging and printing inks and polyurethane resins.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 4050000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s healthy financial risk profile marked by decent liquidity position and fair profitability levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 slowly 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

NOT AVAILABLE

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

Management Non Co-Operative (Tel No.: 91-124-4803300)

LOCATIONS

Registered Office/ Factory 1:	B – 1245-46, RIICO Industrial Area, Bhilwadi – 301019, Rajasthan, India
Tel. No.:	91-1493-222908/ 222909/ 2224899 / 515900/ 222309
Fax No.:	91-1493-223308/ 301019 / 515909
E-Mail :	arabinda.mohanty@sakataindia.com amit.gupta@sakatainia.com sakata-1@vsnl.com sakata@datainfosys.net bhiwadi@sakatindia.com sakata@vsnl.com
Website :	www.sakataindia.com
Area :	20 acre
Location :	Owned
Factory 2:	U-2, Panoli Industrial Estate, District Bharuch Panoli - 394116, Gujarat, India
Tel No.:	91-2646-272970-73
Fax:	91-2646-272115
E-mail:	panoli@sakataindia.com
Corporate Office:	D-17, Infocity II, Sector – 33, Gurgaon – 122001, Haryana, India
Tel No.:	91-124-4803300/ 2372008/ 4803315
Fax:	91-124-2372009/ 4803355
E-mail:	marketing@sakataindia.com
Mumbai Office :	Dani Corporate Park, 158, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India
Tel No.:	91-22-26525170/ 26526772/ 26528013
Fax:	91-22-26542044
Email :	sakata@bom5.vsnl.net.in mumbai@sakataindia.com
Hyderabad Office :	608, Ashoka Bhoopal Chambers, Sardar Patel Road, Secunderabad – 500003, India
Tel No.:	91-40-27846016/ 27846017
Fax:	91-40-27846017
Email :	hyderabad@sakataindia.com

DIRECTORS

As on 22.04.2014

Name :

Mr. Vijay Kumar Seth

Designation :

Managing Director

Address :

E-46, South City -1, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

15.10.1953

Qualification:

BSC, Graduate and Engineer

Experience:

35 Years

Date of Appointment :

01.04.2012

PAN No.:

AAAPS1202Q

Voter ID No:

DL-02-006-198387

DIN No:

00685877

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	U24117RJ1994PLC008294	SAKATA INX (INDIA) LIMITED	Managing director	01/04/2012	02/04/1997	--	Active	NO
2	U91110MH1953NPL009087	ALL INDIA PRINTING INK MANUFACTURERS ASSOCIATION LIMITED	Director	15/09/2012	15/09/2012	30/08/2013	Active	NO

Name :

Mr. Amrit Lal Garg

Designation :

Director

Address :

House No. 417, Sector 28, Faridabad - 121008, Haryana, India

Date of Birth/Age :

25.14.1952

Qualification:

BSC, Chemical Engineer

Date of Appointment :

30.11.2011

DIN No:

00152990

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	U74899DL1992PTC048019	GOLDEN PIGMENTS PRIVATE LIMITED	Director	03/05/1993	03/05/1993	06/02/2014	Active	NO
2	U74899DL1993PTC055513	BHABANI PIGMENTS PRIVATE LIMITED	Director	04/10/1993	04/10/1993	-	Active	NO
3	U24117RJ1994PLC008294	SAKATA INX (INDIA) LIMITED	Director	30/11/2011	30/11/2011	-	Active	NO

Name :

Mr. Kotaro Morita

Designation :

Director

Address :

324, Vinigs Drive, Bloomingdale, United States of America

Date of Birth/Age :

17.10.1955

Qualification:

PHD

Date of Appointment :

29.08.2009

DIN No:

02719110

KEY EXECUTIVES

Name :	Swati Jindal
Designation :	Secretary
Address :	H. No. 566-23, Sulekh Ram Street, Samrala Road, Khanna, Ludhiana – 141401, Punjab, India
Date of Birth/Age :	02.07.1988
Date of Appointment :	01.04.2014
PAN No.:	ALRPJ9464H

MAJOR SHAREHOLDERS

As on 22.04.2014

Names of Shareholders	No. of Shares
Sunil Kumar Chhabra	100
Sushil Gupta	100
Harish Chaunwal	100
Mukesh Tarani	100
Sakata Inx Corporation, Japan	58299300
Vijay Kumar Seth	100
Raakesh Datta	100
Ranbir Singh Panesar	100
Total	58300000

Equity Share Break up (Percentage of Total Equity)

As on 22.04.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of packaging and printing inks and polyurethane resins.

Products :

Product Description	Item Code No. (ITC Code)
32151990	Printing Inks

Brand Names :

--

Agencies Held :

--

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information denied by management

Bankers :

· U.F.C. Bank Limited, Upper Ground Floor, Mercantile House; 15; K.G. Marg, New Delhi, India

· Bank of Tokyo – Mitsubishi, 3; Parliament Street, New Delhi, India

· Standard Chartered Bank, Sansad Marg, New Delhi, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
SHORT TERM BORROWINGS
Foreign currency term loans from others	0.000	21.554
Working capital loans from banks	20.000	0.000
Total	20.000	21.554

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company L.L.P. Chartered Accountants
Address :	Golf View, Corporate Tower B, Sector 42, Sector Road, Gurgaon, Haryana, India
PAN No.:	AALFS0506L
Memberships :	--
Collaborators :	--
Holding Company :	· Sakata Inx Corporation, Japan
Fellow Subsidiary Company :	· CDI Sakata Inx Corp. · Inx International Company · Inx International Company · Maoming Sakata Inx · Pt. Sakata Inx Indonesia · Sakata Inx Malaysia · Sakata Inx Shangai · Sakata Inx Vietnam

CAPITAL STRUCTURE

As on 22.04.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Share	Rs.10/- each	Rs.600.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.610.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58300000	Equity Share	Rs.10/- each	Rs.583.000 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	583.000	583.000	583.000
(b) Reserves & Surplus	834.564	659.490	542.559
(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)	1417.564	1242.490	1125.559
(3) Non-Current Liabilities
(a) long-term borrowings	300.500	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	300.500	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	136.932	203.023	308.947
(b) Trade payables	376.494	286.876	201.447
(c) Other current liabilities	144.591	100.475	64.880
(d) Short-term provisions	42.646	27.350	27.718
Total Current Liabilities (4)	700.663	617.724	602.992
TOTAL	2418.727	1860.214	1728.551
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	695.245	467.647	470.917
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	27.432	40.901
(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)	10.099	11.981	5.418
(d) Long-term Loan and Advances	32.250	27.687	12.961
(e) Other Non-current assets	7.943	0.000	0.000
Total Non-Current Assets	745.537	534.747	530.197
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	536.538	385.232	327.557
(c) Trade receivables	958.844	863.476	722.269
(d) Cash and cash equivalents	82.491	30.924	38.091
(e) Short-term loans and advances	91.857	43.414	100.392
(f) Other current assets	3.460	2.421	10.045
Total Current Assets	1673.190	1325.467	1198.354
TOTAL	2418.727	1860.214	1728.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	3958.897	3453.565	3077.649
		Other Income	23.762	23.907	4.331
		TOTAL (A)	3982.659	3477.472	3081.980
Less	EXPENSES
		Cost of Materials Consumed	3041.736	2670.388	2339.311
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(65.257)	(41.475)	(17.017)
		Employees benefits expense	266.797	230.289	198.306
		Other expenses	408.828	357.725	298.208
		TOTAL (B)	3652.104	3216.927	2818.808
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		330.555	260.545	263.172
Less	FINANCIAL EXPENSES (D)		26.612	26.019	17.317
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		303.943	234.526	245.855
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.680	67.420	66.799
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		240.263	167.106	179.056
Less	TAX (H)		77.590	50.176	55.864
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		162.673	116.930	123.192
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	576.057	452.661	431.297
	TOTAL EARNINGS		576.057	452.661	431.297
	IMPORTS
		Raw material and packing materials	972.954	881.825	827.154
		Spares and components	3.838	5.814	1.580
		Capital goods	74.745	6.821	11.533
	TOTAL IMPORTS		1051.537	894.460	840.267
	Earnings / (Loss) Per Share (Rs.)		2.79	2.01	2.11

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	4.11	3.39	4.00
Operating Profit Margin (PBIDT/Sales)	(%)	8.35	7.54	8.55
Return on Total Assets (PBT/Total Assets}	(%)	9.98	9.18	10.64
Return on Investment (ROI) (PBT/Networth)		0.17	0.13	0.16
Debt Equity Ratio (Total Debt /Networth)		0.31	0.16	0.27
Current Ratio (Current Asset/Current Liability)		2.39	2.15	1.99

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	583.000	583.000	583.000
Reserves & Surplus	542.559	659.490	834.564
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1125.559	1242.490	1417.564
Long Term borrowings	0.000	0.000	300.500
Short Term borrowings	308.947	203.023	136.932
Total borrowings	308.947	203.023	437.432
Debt/Equity ratio	0.274	0.163	0.309

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	3,077.649	3,453.565	3,958.897
		12.214	14.632

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	3,077.649	3,453.565	3,958.897
Profit	123.192	116.930	162.673
	4.00%	3.39%	4.11%

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	No

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from banks	300.500	0.000
SHORT TERM BORROWINGS
Working capital loans from banks	116.932	181.469
Total	417.432	181.469

CORPORATE INFORMATION

Sakata Inx (India) Limited is a 100% subsidiary of Sakata Inx Corporation, Japan and is engaged in the business of manufacturing and selling of packaging and printing inks and polyurethane resins.

OPERATIONS FOR THE YEAR

During the year, the company has posted an impressive growth of 14% in sales value. The company has produced 20535 tons (Last year 18183 tons) and sold 20253 tons (Last year 17931 tons) of printing inks. During the year, companys margin was under pressure due to increase in prices of key raw materials.

EXPORTS

During the year, company has done export of 579 Mn (Last year 457 Mn) and recorded an increase of 26.70%. Company continues to strengthen its presence in various overseas markets.

OUTLOOK FOR THE CURRENT YEAR

The company is optimistic about the future and it plans to increase its presence geographically both in domestic and overseas markets. Further with the new plant in western India, company expects logistic benefits and synergy to company’s growth plan.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
(i) Income tax Disallowances and addition to taxable income under Income Tax Act in respect:-
Assessment year 2005-06	2.658	2.658
Assessment year 2006-07	4.685	4.685
Assessment year 2007-08	13.607	13.607
Assessment year 2008-09	8.557	8.557
Assessment year 2009-10	8.779	8.779
Assessment year 2010-11	8.586	0.000
(ii) Excise duty Show cause notices/ demands issued by excise authorities on various matters, against which the Company has filed replies or in process of that or against the demands the Company has gone on appeal.	0.783	5.021
(ii) Custom duty Show cause notices/ demands issued by custom authorities, against which the Company has deposited the duty and in process of filing replies of that.	0.158	0.158
(iii) Entry tax Demand of Entry Tax by the authorities in respect of financial year 2007-08 and 2008-09 for chargeability of entry tax on purchase of various items in the state of Rajasthan, against which the appeal is pending with Supreme Court of India.	3.032	9.310

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10015159	25/08/2006	100,000,000.00	The Bank of Nova Scotia	Dr. Gopal Das Bhawan, 28 Barakhamba Road, New Delhi, Delhi - 110001, India	A03483054

*Date of modification Charges

FIXED ASSETS:

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Office Equipment

Computer Equipments

Other Equipments

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.61.97
UK Pound	1	Rs.97.37
Euro	1	Rs.77.16

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	VNT

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	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.